Document:

Stock Cancellation Agreement

Exhibit 10.7

STOCK CANCELLATION AGREEMENT

 

THIS STOCK CANCELLATION AGREEMENT (this “Agreement”) is made and entered into effective as of April 25, 2008, by and between Ariel Way, Inc., a Florida corporation (the “Company”), and Arne Dunhem (the “Stockholder”).

WITNESSETH:

 

WHEREAS, the Stockholder is the record and beneficial owner of a total of 37,357,964 shares of common stock, $.001 par value per share (the “Common Stock”);

 

WHEREAS, the Board of Directors of the Company has approved a proposed Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Lime Truck Acquisition Corporation, a corporation to be newly-formed by the Company in the State of Delaware for purposes of the Merger (as hereinafter defined) and wholly-owned subsidiary of the Company (“Lime Truck”), Lime Media, LLC, a Texas limited liability company, all of the members of Lime Media, and NewCo., LLC, a Texas limited liability company, pursuant to which Lime Media will be merged (the “Merger”) with and into Lime Truck, and Lime Truck will be the surviving corporation of the Merger; and

WHEREAS, pursuant to the terms of the Merger Agreement, the Company will be required to issue approximately 27,000,000 shares of Common Stock as part of the merger consideration; and

WHEREAS, the authorized capital stock of the Company consists of 595,000,000 shares of Common Stock all of which shares are issued and outstanding as of the date hereof; and 5,000,000 shares of blank check preferred stock, of which the Company has designated 160 of such shares as Series A Preferred Shares, of which 126.75 Series A Preferred Shares are issued and outstanding as of the date hereof; and

 

WHEREAS, in order to enable the Company to have sufficient shares of Common Stock to issue in connection with the Merger, the Stockholder desires to have cancelled and the Company desires to cancel an aggregate of 27,000,000 shares of Common Stock (the “Shares”) owned by the Stockholder as of the date hereof to issue as part of the consideration pursuant to the Merger; and

WHEREAS, following the approval of the stockholders of the Corporation, the Corporation is proposing to amend its Articles of Incorporation to increase the number of its authorized shares of Common Stock to 2,000,000,000 shares, of which 1,995,000,000 will be shares of Common Stock and 5,000,000 shares will be shares of blank check preferred stock; that an Information Statement on Schedule 14C has been filed by the Company with the Securities and Exchange Commission (the “SEC”) and subsequently mailed to the Company’s stockholders in accordance with the General Corporation Law of the State of Florida and the SEC’s Proxy Rules regarding authorizing and approving Articles of Amendment (the “Articles of Amendment”) to the Company’s Articles of Incorporation to effect such increase in the authorized shares of the Company, and that the Articles of Amendment will be effective upon filing with the Secretary of State for the State of Florida; and 

WHEREAS, the Stockholder has agreed to cancel the Shares in consideration of the Company issuing an equivalent number of shares immediately following the acceptance for filing of the Amendment by the Secretary of State for the State of Florida.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual agreements set forth herein, and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1. 

Cancellation of Shares.  Upon the terms and subject to the conditions set forth in this Agreement, upon execution hereof, the Stockholder shall deliver to the Company certificates representing the Shares, duly executed for cancellation, or accompanied by stock powers duly executed in blank (with a medallion guarantee or such other evidence of signature as the Company’s transfer agent may require) whereupon the officers of the Company shall cancel such shares by delivering the Shares to the Company’s stock transfer agent for cancellation.

 

2.

Issuance of Shares.  Following acceptance for filing by the Secretary of State for the State of Florida of the Amendment, the Company shall immediately, but in any event within five (5) business days, deliver to the Stockholder stock certificate(s) representing an aggregate of 27,000,000 shares of Common Stock, bearing an appropriate restricted legend under the Securities Act of 1933, as amended.

 

3.

Representations of Stockholder.  The Stockholder represents and warrants to the Company, as of the date hereof, that:

 

a.

Stockholder has the legal capacity to execute, deliver and perform his obligations under this Agreement.  This Agreement has been duly executed and delivered by Stockholder and is a valid and legally binding agreement of Stockholder enforceable against him in accordance with its terms.

 

b.

Stockholder is the sole holder of record of the Shares, and is the beneficial owner of the Shares, free and clear of all Liens, and there exists no restriction on the transfer of the Shares to the Company.  Upon execution hereof, Stockholder shall deliver to the Company at good and marketable title to the Shares free and clear of all Liens.

 

c.

No action has been taken by Stockholder that would give rise to a claim against the Company for a brokerage commission, finder’s fee or other like payment with respect to the transactions contemplated by this Agreement.

 

4.

Governing Law.

This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Virginia without regard to conflict-of-laws rules.

 

5.

Undertakings. 

Each of Stockholder and the Company hereby agrees to take whatever additional action and execute whatever additional documents may be reasonably necessary or advisable in order to carry out or effect one or more of the provisions of this Agreement.

 

6.

Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

2

 

7.

Entire Agreement.  This Agreement and the instruments to be delivered by the parties pursuant hereto represent the entire understanding and agreement between the parties and supersede all prior oral and written and all contemporaneous oral negotiations, commitments and understandings.

 

[THE REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY.]

3

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first indicated above.

		
	ARIEL WAY, INC.

	

By:

	

/s/ Leif Carlsson

	

Its:

	

Director

		
	ARNE DUNHEM

	

Signed:

	

/s/ Arne Dunhem

4grantlife_s8-ex1001.htm

     

    EXHIBIT
10.1

     

    COMPENSATION
AGREEMENT

    

    This Compensation Agreement is dated as
of April 24, 2008 among Grant Life Sciences, Inc. a Nevada corporation (the
“Company”), and Gregory Sichenzia (“Consultant”).

    

    WHEREAS,
the Company has requested the Consultant to provide the Company with legal
services in connection with their business, and the Consultant has agreed to
provide the Company with such legal services; and

    

    WHEREAS, the Company wishes to
compensate the Consultant with shares of its common stock for such services
rendered;

    

    NOW THEREFORE, in consideration of the
mutual covenants hereinafter stated, it is agreed as follows:

    

    1.           
The Company will issue 7,500,000 shares of the Company’s common stock, par value
$.001 per share, to the Consultant immediately following the filing of a
registration statement on Form S-8 with the Securities and Exchange Commission
registering such shares, as set forth in Section 2 below. The shares to be
issued shall represent consideration for legal services performed by the
Consultant on behalf of the Company.

    

    2.           
The above compensation shall be registered using a Form S-8.  The
Company shall file such Form S-8 with the Securities and Exchange Commission
within five business days of the execution of this agreement.

    

    IN
WITNESS WHEREOF, this Compensation Agreement has been executed by the Parties as
of the date first above written.

     

     

    
      	 	GREGORY
      SICHENZIA 
	 	 
	 	 
	 	/s/
      Gregory
      Sichenzia                                          
      
	 	
              Gregory
      Sichenzia 

            
	 	 
	 	 
	 	GRANT LIFE SCIENCES,
      INC. 
	 	 
	 	 
	 	By:  /s/
      Hun-Chi
      Lin                                               
      
	 	
              Hun-Chi
      Lin 

            
	 	
              PresidentFiled by Bowne Pure Compliance

 

Exhibit 10.1

REVOLVING CREDIT

AND

SECURITY AGREEMENT

PNC BANK, NATIONAL ASSOCIATION

(AS LENDER AND AS AGENT)

WITH

APAC CUSTOMER SERVICES, INC.

(BORROWER)

MAY 5, 2008

PNC Capital Markets LLC,

Sole Lead Arranger and Book Runner

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	1.1. Accounting Terms
	 	 	1	 
	1.2. General Terms
	 	 	1	 
	1.3. Uniform Commercial Code Terms
	 	 	27	 
	1.4. Certain Matters of Construction
	 	 	28	 
	 
	 	 	 	 
	ARTICLE II ADVANCES, PAYMENTS
	 	 	29	 
	2.1. Advances
	 	 	29	 
	2.2. Procedure for Advances Borrowing
	 	 	30	 
	2.3. Disbursement of Advance Proceeds
	 	 	32	 
	2.4. Repayment of Advances
	 	 	32	 
	2.5. Repayment of Excess Advances
	 	 	33	 
	2.6. Statement of Account
	 	 	33	 
	2.7. Letters of Credit
	 	 	33	 
	2.8. Issuance of Letters of Credit
	 	 	33	 
	2.9. Requirements For Issuance of Letters of Credit
	 	 	34	 
	2.10. Disbursements, Reimbursement
	 	 	34	 
	2.11. Repayment of Participation Advances
	 	 	35	 
	2.12. Documentation
	 	 	36	 
	2.13. Determination to Honor Drawing Request
	 	 	36	 
	2.14. Nature of Participation and Reimbursement Obligations
	 	 	36	 
	2.15. Indemnity
	 	 	38	 
	2.16. Liability for Acts and Omissions
	 	 	38	 
	2.17. Additional Payments
	 	 	40	 
	2.18. Manner of Borrowing and Payment
	 	 	40	 
	2.19. Mandatory Prepayments
	 	 	41	 
	2.20 Application of Payments Prior to an Event of Default
	 	 	42	 
	2.21. Reduction of Maximum Revolving Advance Amount
	 	 	42	 
	2.22. Use of Proceeds
	 	 	42	 
	2.23. Defaulting Lender
	 	 	42	 
	2.24. Removal of Lenders
	 	 	43	 
	 
	 	 	 	 
	ARTICLE III INTEREST AND FEES
	 	 	44	 
	3.1. Interest
	 	 	44	 
	3.2. Letter of Credit Fees
	 	 	45	 
	3.3. Facility Fee
	 	 	46	 
	3.4. Fee Letter
	 	 	46	 
	3.5. Computation of Interest and Fees
	 	 	46	 
	3.6. Maximum Charges
	 	 	46	 
	3.7. Increased Costs
	 	 	46	 
	3.8. Basis For Determining Interest Rate Inadequate or Unfair
	 	 	47	 
	3.9. Capital Adequacy
	 	 	48	 
	3.10. Gross Up for Taxes
	 	 	49	 
	3.11. Withholding Tax Exemption
	 	 	49	 
	3.12. Survival of Obligations
	 	 	50	 

 

i

 

	 	 	 	 	 
	ARTICLE IV COLLATERAL: GENERAL TERMS
	 	 	50	 
	4.1. Security Interest in the Collateral
	 	 	50	 
	4.2. Perfection of Security Interest
	 	 	50	 
	4.3. Disposition of Collateral
	 	 	51	 
	4.4. Preservation of Collateral
	 	 	51	 
	4.5. Ownership of Collateral
	 	 	52	 
	4.6. Defense of Agent’s and Lenders’ Interests
	 	 	52	 
	4.7. Books and Records
	 	 	53	 
	4.8. Financial Disclosure
	 	 	53	 
	4.9. Compliance with Laws
	 	 	53	 
	4.10. Inspection of Premises; Appraisals
	 	 	53	 
	4.11. Insurance
	 	 	54	 
	4.12. Failure to Pay Insurance
	 	 	54	 
	4.13. Payment of Taxes
	 	 	55	 
	4.14. Payment of Leasehold Obligations
	 	 	55	 
	4.15. Receivables
	 	 	55	 
	4.16. Reserved
	 	 	58	 
	4.17. Reserved
	 	 	58	 
	4.18. Exculpation of Liability
	 	 	58	 
	4.19. Environmental Matters
	 	 	58	 
	4.20. Financing Statements
	 	 	59	 
	4.21 Voting Rights in Respect of Subsidiary Stock
	 	 	60	 
	4.22 Dividend and Distribution Rights in Respect of Subsidiary Shares
	 	 	60	 
	4.23. Reduction of Credit Enhancement Letter of Credit
	 	 	60	 
	4.24. Release of Credit Enhancement Letter of Credit  
	 	 	61	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	61	 
	5.1. Authority
	 	 	61	 
	5.2. Formation and Qualification
	 	 	62	 
	5.3. Survival of Representations and Warranties
	 	 	62	 
	5.4. Tax Returns
	 	 	62	 
	5.5. Financial Statements
	 	 	63	 
	5.6. Entity Name and Locations
	 	 	63	 
	5.7. O.S.H.A. and Environmental Compliance
	 	 	64	 
	5.8. Solvency; No Litigation, Violation, Indebtedness or Default
	 	 	64	 
	5.9. Patents, Trademarks, Copyrights and Licenses
	 	 	65	 
	5.10. Licenses and Permits
	 	 	66	 
	5.11. Default of Indebtedness
	 	 	66	 
	5.12. No Default
	 	 	66	 
	5.13. No Burdensome Restrictions
	 	 	66	 
	5.14. No Labor Disputes
	 	 	66	 
	5.15. Margin Regulations
	 	 	67	 
	5.16. Investment Company Act
	 	 	67	 
	5.17. Disclosure
	 	 	67	 
	5.18. Delivery of Subordinated Documentation
	 	 	67	 
	5.19. Swaps
	 	 	67	 
	5.20. Conflicting Agreements
	 	 	68	 
	5.21. Application of Certain Laws and Regulations
	 	 	68	 
	5.22. Business and Property of Borrower
	 	 	68	 
	5.23. Section 20 Subsidiaries
	 	 	68	 

 

ii

 

	 	 	 	 	 
	5.24. Anti-Terrorism Laws
	 	 	68	 
	5.25. Trading with the Enemy
	 	 	69	 
	5.26. Commercial Tort Claims
	 	 	69	 
	5.27. Partnership and Limited Liability Company Interests
	 	 	69	 
	5.28. Material Contracts
	 	 	69	 
	 
	 	 	 	 
	ARTICLE VI AFFIRMATIVE COVENANTS
	 	 	70	 
	6.1. Payment of Fees
	 	 	70	 
	6.2. Conduct of Business and Maintenance of Existence and Assets
	 	 	70	 
	6.3. Violations
	 	 	70	 
	6.4. Government Receivables
	 	 	70	 
	6.5. Fixed Charge Coverage Ratio
	 	 	71	 
	6.6. Execution of Supplemental Instruments
	 	 	71	 
	6.7. Payment of Indebtedness
	 	 	71	 
	6.8. Standards of Financial Statements
	 	 	71	 
	6.9. Leasehold Agreements
	 	 	71	 
	6.10. Interest Rate Hedge
	 	 	71	 
	6.11. Dissolution of Subsidiaries
	 	 	72	 
	 
	 	 	 	 
	ARTICLE VII NEGATIVE COVENANTS
	 	 	72	 
	7.1 Merger, Consolidation, Acquisition and Sale of Assets
	 	 	72	 
	7.2. Creation of Liens
	 	 	72	 
	7.3. Guarantees
	 	 	72	 
	7.4 Investments
	 	 	73	 
	7.5. Loans
	 	 	73	 
	7.6. Capital Expenditures
	 	 	73	 
	7.7. Dividends
	 	 	73	 
	7.8. Indebtedness
	 	 	74	 
	7.9. Nature of Business
	 	 	74	 
	7.10. Transactions with Affiliates
	 	 	74	 
	7.11. Leases
	 	 	75	 
	7.12. Subsidiaries
	 	 	75	 
	7.13. Fiscal Year and Accounting Changes
	 	 	75	 
	7.14. Pledge of Credit
	 	 	75	 
	7.15. Amendment of Organizational Documents
	 	 	75	 
	7.16. Compliance with ERISA
	 	 	75	 
	7.17. Prepayment of Indebtedness
	 	 	76	 
	7.18. Anti-Terrorism Laws
	 	 	76	 
	7.19. Membership/Partnership Interests
	 	 	76	 
	7.20. Trading with the Enemy Act
	 	 	77	 
	7.21. Subordinated Obligations
	 	 	77	 
	7.22. Other Agreements
	 	 	77	 
	7.23 Additional Negative Pledges
	 	 	77	 
	7.24. Additional Bank Accounts
	 	 	77	 
	 
	 	 	 	 
	ARTICLE VIII CONDITIONS PRECEDENT
	 	 	78	 
	8.1. Conditions to Initial Advances
	 	 	78	 

 

iii

 

	 	 	 	 	 
	8.2. Conditions to Each Advance
	 	 	83	 
	 
	 	 	 	 
	ARTICLE IX INFORMATION AS TO BORROWER
	 	 	83	 
	9.1. Disclosure of Material Matters
	 	 	83	 
	9.2 Schedules
	 	 	84	 
	9.3. Environmental Reports
	 	 	84	 
	9.4. Litigation
	 	 	84	 
	9.5. Material Occurrences
	 	 	84	 
	9.6. Government Receivables
	 	 	85	 
	9.7. Annual Financial Statements
	 	 	85	 
	9.8. Quarterly Financial Statements
	 	 	85	 
	9.9. Other Reports
	 	 	85	 
	9.10. Additional Information
	 	 	85	 
	9.11. Projected Operating Budget
	 	 	86	 
	9.12. Variances From Operating Budget
	 	 	86	 
	9.13. Notice of Suits, Adverse Events
	 	 	86	 
	9.14. ERISA Notices and Requests
	 	 	87	 
	9.15. Additional Documents
	 	 	87	 
	 
	 	 	 	 
	ARTICLE X EVENTS OF DEFAULT
	 	 	87	 
	10.1. Nonpayment
	 	 	87	 
	10.2. Breach of Representation
	 	 	88	 
	10.3. Financial Information
	 	 	88	 
	10.4. Judicial Actions
	 	 	88	 
	10.5. Noncompliance
	 	 	88	 
	10.6. Judgments
	 	 	89	 
	10.7. Bankruptcy
	 	 	89	 
	10.8. Inability to Pay
	 	 	89	 
	10.9. Affiliate Bankruptcy
	 	 	89	 
	10.10. Material Adverse Effect
	 	 	89	 
	10.11. Lien Priority
	 	 	89	 
	10.12. Subordinated Documentation Default
	 	 	90	 
	10.13. Cross Default
	 	 	90	 
	10.14. Breech of Guaranty
	 	 	90	 
	10.15. Change of Control
	 	 	90	 
	10.16. Invalidity
	 	 	90	 
	10.17. Licenses
	 	 	90	 
	10.18. Seizures
	 	 	91	 
	10.19. Pension Plans
	 	 	91	 
	10.20. Credit Enhancement Letter of Credit
	 	 	91	 
	 
	 	 	 	 
	ARTICLE XI LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT
	 	 	91	 
	11.1. Rights and Remedies
	 	 	91	 
	11.2. Agent’s Discretion
	 	 	93	 
	11.3. Setoff
	 	 	93	 
	11.4. Rights and Remedies not Exclusive
	 	 	93	 
	11.5. Allocation of Payments After Event of Default
	 	 	94	 

 

iv

 

	 	 	 	 	 
	ARTICLE XII WAIVERS AND JUDICIAL PROCEEDINGS
	 	 	95	 
	12.1. Waiver of Notice
	 	 	95	 
	12.2. Delay
	 	 	95	 
	12.3. Jury Waiver
	 	 	95	 
	 
	 	 	 	 
	ARTICLE XIII EFFECTIVE DATE AND TERMINATION
	 	 	96	 
	13.1. Term
	 	 	96	 
	13.2. Termination
	 	 	96	 
	 
	 	 	 	 
	ARTICLE XIV REGARDING AGENT
	 	 	97	 
	14.1. Appointment
	 	 	97	 
	14.2. Nature of Duties
	 	 	97	 
	14.3. Lack of Reliance on Agent and Resignation
	 	 	98	 
	14.4. Certain Rights of Agent
	 	 	98	 
	14.5. Reliance
	 	 	99	 
	14.6. Notice of Default
	 	 	99	 
	14.7. Indemnification
	 	 	99	 
	14.8. Agent in its Individual Capacity
	 	 	99	 
	14.9. Delivery of Documents
	 	 	100	 
	14.10. Borrower’s Undertaking to Agent
	 	 	100	 
	14.11. No Reliance on Agent’s Customer Identification Program
	 	 	100	 
	14.12. Other Agreements
	 	 	100	 
	 
	 	 	 	 
	ARTICLE XV MISCELLANEOUS
	 	 	101	 
	15.1. Governing Law
	 	 	101	 
	15.2. Entire Understanding
	 	 	101	 
	15.3. Successors and Assigns; Participations; New Lenders
	 	 	103	 
	15.4. Application of Payments
	 	 	106	 
	15.5. Indemnity
	 	 	106	 
	15.6 Notice
	 	 	107	 
	15.7. Survival
	 	 	109	 
	15.8. Severability
	 	 	109	 
	15.9. Expenses
	 	 	109	 
	15.10. Injunctive Relief
	 	 	109	 
	15.11. Damages
	 	 	109	 
	15.12. Captions
	 	 	110	 
	15.13. Counterparts; Facsimile Signatures
	 	 	110	 
	15.14. Construction
	 	 	110	 
	15.15. Confidentiality; Sharing Information
	 	 	110	 
	15.16. Publicity
	 	 	111	 
	15.17. Certifications From Banks and Participants; USA PATRIOT Act
	 	 	111	 
	15.18. Credit Enhancement Letter of Credit Draw Condition
	 	 	111	 

 

v

 

List of Exhibits and Schedules

	 	 	 
	Exhibits
	 	 
	 
	 	 
	Exhibit 1.2

	 	Borrowing Base Certificate
	Exhibit 1.2(a)

	 	Compliance Certificate
	Exhibit 2.1(a)

	 	Revolving Credit Note
	Exhibit 5.5(a)

	 	Pro Forma Balance Sheet
	Exhibit 5.5(b)

	 	Financial Projections
	Exhibit 8.1(k)

	 	Financial Condition Certificate
	Exhibit 15.3

	 	Commitment Transfer Supplement
	 
	 	 
	Schedules
	 	 
	 
	 	 
	Schedule 1.2

	 	Permitted Encumbrances
	Schedule 4.5

	 	Equipment and Inventory Locations; Place of Business;
Chief Executive Office; Locations of Real Property
	Schedule 4.15(h)

	 	Deposit and Investment Accounts
	Schedule 5.2(a)

	 	States of Formation, Qualification and Good Standing
	Schedule 5.2(b)

	 	Subsidiaries; Ownership
	Schedule 5.4

	 	Federal Tax Identification Number
	Schedule 5.8(b)

	 	Litigation
	Schedule 5.8(d)

	 	Plans
	Schedule 5.9

	 	Intellectual Property; Challenges to Use

	Schedule 5.28

	 	Material Contracts
	Schedule 7.8

	 	Indebtedness

 

vi

 

REVOLVING CREDIT

AND

SECURITY AGREEMENT

Revolving Credit and Security Agreement dated as of May 5, 2008 among APAC CUSTOMER SERVICES,
INC., a corporation under the laws of the State of Illinois (“Borrower”), the financial
institutions which are now or which hereafter become a party hereto (collectively, the
“Lenders” and individually a “Lender”) and PNC BANK, NATIONAL ASSOCIATION
(“PNC”), as agent for Lenders (PNC, in such capacity, the “Agent”).

IN CONSIDERATION of the mutual covenants and undertakings herein contained, Borrower, Lenders
and Agent hereby agree as follows:

ARTICLE I

DEFINITIONS

1.1. Accounting Terms.

All accounting terms not specifically or completely defined herein shall be construed in
conformity with, and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity
with GAAP, applied on a consistent basis, as in effect from time to time, except as
otherwise specifically prescribed herein. If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in this Agreement or any Other
Document, and Borrower or the Required Lenders shall so request, Agent, Lenders and Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of the Required Lenders); provided
that, until so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) Borrower shall provide to Agent and the
Lenders financial statements and other documents required under this Agreement or any Other
Document or as reasonably requested hereunder setting forth a reconciliation between calculations
of such ratio or requirement made before and after giving effect to such change in GAAP.

1.2. General Terms.

For purposes of this Agreement the following terms shall have the following meanings:

“Accountants” shall have the meaning set forth in Section 9.7 hereof.

“Advance Rate” shall mean:

(i) 85% of Billed Eligible Receivables, plus

 

1

 

(ii) the lesser of (A) 85% of Unbilled Eligible Receivables or (B) $20,000,000 in the
aggregate at any one time.

“Advances” shall mean Advances made pursuant to Section 2.1 hereof.

“Affiliate” shall mean any Person which, directly or indirectly through one or more
intermediate controls, is controlled by, or is under common control with such Person. For purposes
of this definition, (A) control of a Person shall mean the power, direct or indirect, to vote 10%
or more of the Equity Interests having ordinary voting power for the election of directors of such
Person or other Persons performing similar functions for any such Person, and (B) Person (who is an
individual), with respect to the Borrower, shall mean directors and executive officers of Borrower.

“Agent” shall have the meaning set forth in the preamble to this Agreement and shall
include its successors and assigns.

“Agreement” shall mean this Revolving Credit and Security Agreement, as the same may
be amended, restated, supplemented or otherwise modified from time to time.

“Alternate Base Rate” shall mean, for any day, a rate per annum equal to the higher of
(i) the Base Rate in effect on such day and (ii) the Federal Funds Open Rate in effect on such day
plus 1/2 of 1%.

“Anti-Terrorism Laws” shall mean any Applicable Laws relating to terrorism or money
laundering, including Executive Order No. 13224, the USA PATRIOT Act, the Applicable Laws comprising
or implementing the Bank Secrecy Act, and the Applicable Laws administered by the United States
Treasury Department’s Office of Foreign Asset Control (as any of the foregoing Applicable Laws may
from time to time be amended, renewed, extended, or replaced).

“Applicable Law” shall mean all laws, rules and regulations applicable to the Person,
conduct, transaction, covenant, Other Document or contract in question, including all applicable
common law and equitable principles; all provisions of all applicable state, federal and foreign
constitutions, statutes, rules, regulations and orders of any Governmental Body, and all orders,
judgments and decrees of all courts and arbitrators.

“Applicable Margin” for:

(a) Advances that are in excess of the Advance Rate (other than Advances in connection with
Out-of-Formula Loans the Applicable Margin for which shall be determined in accordance with clause
(b) of this definition) that are Eurodollar Rate Loans shall mean 1.50% and that are Domestic Rate
Loans shall mean 0%; and

 

2

 

(b) (i) Advances that are Eurodollar Rate Loans, and (ii) Advances that are Domestic Rate
Loans, shall mean the appropriate applicable percentages corresponding to the Fixed
Charge Coverage Ratio in effect as of the most recent Calculation Date (as defined below) as
shown in the table set forth below:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Applicable	 
	 	 	 	 	Applicable Margin	 	 	Margin for	 
	 	 	Fixed Charge Coverage	 	for Eurodollar Rate	 	 	Domestic Rate	 
	Level	 	Ratio	 	Loans	 	 	Loans	 
	1	 	<1.50 to 1.0
	 	 	2.50	%	 	 	0.50	%
	2	 	31.50 to 1.0 but
<1.75 to 1.0
	 	 	2.25	%	 	 	0.25	%
	3	 	31.75 to 1.0
	 	 	2.00	%	 	 	0	%

With respect to the Applicable Margin determined in accordance with clause (b) of this definition,
the Applicable Margin shall be determined and adjusted quarterly on the date (each a
“Calculation Date”) which is the first day of the first calendar month after the date on
which Borrower provides the quarterly officer’s certificate for each fiscal quarter in accordance
with the provisions of Section 9.8; provided, however, that (i) the initial
Applicable Margin shall be based on Level 1 (as shown above) and shall remain at Level 1 until the
first Calculation Date subsequent to Agent’s receipt and review of Borrower’s audited fiscal
year-end financial statements for the fiscal year ended on or about December 31, 2008, and,
thereafter, the Level shall be determined by the Fixed Charge Coverage Ratio for the immediately
preceding fiscal quarter, and (ii) if Borrower fails to provide the officer’s certificate to Agent
for any fiscal quarter as required by and within the time limits set forth in Section 9.8, the
Applicable Margin from the applicable date of such failure shall be based on Level 1 until the date
the appropriate officer’s certificate is provided, whereupon the Level shall be determined by the
Fixed Charge Coverage Ratio for the immediately preceding fiscal quarter. Except as set forth
above, each Applicable Margin shall be effective from one Calculation Date until the next
Calculation Date.

“Appraisal” shall mean an appraisal performed by an appraiser satisfactory to Agent,
in form and substance reasonably satisfactory to Agent.

“Atalaya” shall mean, collectively, (i) Atalaya Funding II, LP and (ii) Atalaya
Administrative LLC.

“Atalaya Warrant” shall mean that certain Warrant dated January 31, 2007, issued by
Borrower in favor of Atalaya, as amended, restated, supplemented or otherwise modified from time to
time.

“Authority” shall have the meaning set forth in Section 4.19(b).

“Availability Reserve” shall mean an availability reserve of $1,000,000.

 

3

 

“Base Rate” shall mean the base commercial lending rate of PNC as publicly announced
to be in effect from time to time, such rate to be adjusted automatically, without notice, on the
effective date of any change in such rate. This rate of interest is determined from time to
time by PNC as a means of pricing some loans to its customers and is neither tied to any external
rate of interest or index nor does it necessarily reflect the lowest rate of interest actually
charged by PNC to any particular class or category of customers of PNC.

“Benefitted Lender” shall have the meaning set forth in Section 2.18(d).

“Blocked Accounts” shall have the meaning set forth in Section 4.15(h).

“Blocked Account Bank” shall have the meaning set forth in Section 4.15(h).

“Blocked Person” shall have the meaning set forth in Section 5.24(b) hereof.

“Billed Eligible Receivables” shall mean Eligible Receivables that have been billed or
invoiced by Borrower.

“Borrower” shall have the meaning set forth in the preamble to this Agreement and
shall extend to all permitted successors and assigns of such Person.

“Borrower’s Account” shall have the meaning set forth in Section 2.6.

“Borrowing Base Certificate” shall mean a certificate in substantially the form of
Exhibit 1.2 duly executed by a Duly Authorized Officer and delivered to Agent, appropriately
completed, by which such officer shall certify to Agent the Formula Amount and calculation thereof
as of the date of such certificate.

“Business Day” shall mean any day other than Saturday or Sunday or a legal holiday on
which commercial banks are authorized or required by law to be closed for business in East
Brunswick, New Jersey and, if the applicable Business Day relates to any Eurodollar Rate Loans,
such day must also be a day on which dealings are carried on in the London interbank market.

“Capital Expenditures” shall mean expenditures made or liabilities incurred for the
acquisition of any fixed assets or improvements, replacements, substitutions or additions thereto
which have a useful life of more than one year, including the total principal portion of
Capitalized Lease Obligations, which, in accordance with GAAP, would be classified as capital
expenditures minus to the extent otherwise constituting Capital Expenditures during such period in
accordance with the definition hereof, the aggregate amount of incentive payments or reimbursement
payments received by Borrower or any of its Subsidiaries in connection with real estate
transactions from any landlords of Borrower or any of its Subsidiaries, including, but not limited
to, improvements made to such real estate for the benefit of Borrower or any of its Subsidiaries
and not resulting in net out-of-pocket expenditures by Borrower or any of its Subsidiaries.

“Capital Stock” shall mean (i) in the case of a corporation, capital stock, (ii) in
the case of an association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of capital stock, (iii) in the case of a
partnership, partnership
interests (whether general or limited), (iv) in the case of a limited liability company,
membership interests and (v) any other equity interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of assets of, the
issuing Person.

 

4

 

“Capitalized Lease Obligation” shall mean any Indebtedness of Borrower represented by
obligations under a lease that is required to be capitalized for financial reporting purposes in
accordance with GAAP.

“Cash Equivalents” means, as at any date, (a) securities issued or directly and fully
guaranteed or insured by the United States or any agency or instrumentality thereof (provided that
the full faith and credit of the United States is pledged in support thereof) having maturities of
not more than twelve months from the date of acquisition, (b) U.S. Dollar denominated time deposits
and certificates of deposit of (i) any Lender, (ii) any domestic commercial bank of recognized
standing having capital and surplus in excess of $500,000,000 or (iii) any bank whose short-term
commercial paper rating from Standard & Poor’s Ratings Services (together with any successor
thereto, “S&P) is at least A-1 or the equivalent thereof or from Moody’s Investors Service,
Inc.(together with any successor thereto, “Moody’s”) is at least P-1 or the equivalent thereof (any
such bank being an “Approved Bank”), in each case with maturities of not more than 270 days from
the date of acquisition, (c) commercial paper and variable or fixed rate notes issued by any
Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or
guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or
P-1 (or the equivalent thereof) or better by Moody’s and maturing within six months of the date of
acquisition, (d) repurchase agreements entered into by any Person with a bank or trust company
(including any of the Lenders) or recognized securities dealer having capital and surplus in excess
of $500,000,000 for direct obligations issued by or fully guaranteed by the United States in which
such Person shall have a perfected first priority security interest (subject to no other Liens) and
having, on the date of purchase thereof, a fair market value of at least 100% of the amount of the
repurchase obligations and (e) Investments, classified in accordance with GAAP as current assets,
in money market investment programs registered under the Investment Company Act of 1940 which are
administered by reputable financial institutions having capital of at least $500,000,000 and the
portfolios of which are limited to Investments of the character described in the foregoing
subdivisions (a) through (d).

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

“Cash Taxes” shall mean, for any period, the federal, state and local taxes of a
Person based on income and business activity payable in the actual cash during such period.

“CERCLA” shall mean the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, 42 U.S.C. §§9601 et seq.

 

5

 

“Change of Control” shall mean (a) the occurrence of any event (whether in one or more
transactions) which results in a Person who is not an Original Owner acquiring control of Borrower
or (b) any merger or consolidation of or with Borrower or sale of all or substantially all of the
property or assets of Borrower which results in a Person who is not an Original Owner acquiring
control of Borrower. For purposes of this definition, “control of Borrower” shall mean the power,
direct or indirect (x) to vote 50% or more of the Equity Interests having ordinary voting power for
the election of directors (or the individuals performing similar functions) of Borrower or (y) to
direct or cause the direction of the management and policies of Borrower by contract or otherwise.

“Charges” shall mean all taxes, charges, fees, imposts, levies or other assessments,
including all net income, gross income, gross receipts, sales, use, ad valorem, value added,
transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment,
social security, unemployment, excise, severance, stamp, occupation and property taxes, custom
duties, fees, assessments, liens, claims and charges of any kind whatsoever, together with any
interest and any penalties, additions to tax or additional amounts, imposed by any taxing or other
authority, domestic or foreign (including the Pension Benefit Guaranty Corporation or any
environmental agency or superfund), upon the Collateral, Borrower or any of its Affiliates.

“Closing Date” shall mean May 5, 2008 or such other date as may be agreed to by the
parties hereto.

“Code” shall mean the Internal Revenue Code of 1986, as the same may be amended or
supplemented from time to time, and any successor statute of similar import, and the rules and
regulations thereunder, as from time to time in effect.

“Collateral” shall mean and include:

(a) all Receivables;

(b) all Equipment;

(c) all General Intangibles;

(d) all Inventory;

(e) all Investment Property;

(f) all Subsidiary Stock;

 

6

 

(g) all of Borrower’s right, title and interest in and to, whether now owned or
hereafter acquired and wherever located, (i) its respective goods and other property
including, but not limited to, all merchandise returned or rejected by Customers, relating
to or securing any of the Receivables; (ii) all of Borrower’s rights as a consignor, a
consignee, an unpaid vendor, mechanic, artisan, or other lienor, including stoppage in
transit, setoff, detinue, replevin, reclamation and repurchase; (iii) all additional amounts
due to Borrower from any Customer relating to the Receivables; (iv) other property,
including warranty claims, relating to any goods securing the Obligations; (v) all of
Borrower’s assignable contract rights, rights of payment which have been earned under a
contract right, instruments (including promissory notes), documents, chattel paper
(including electronic chattel paper), warehouse receipts, deposit accounts, letters of
credit and money; (vi) each commercial tort claim in existence as of the date hereof and in
which a security interest is hereafter granted to Agent by Borrower pursuant to the
provision of Section 4.1 or otherwise; (viii) all letter of credit rights (whether or not
the respective letter of credit is evidenced by a writing); (ix) all supporting obligations;
and (x) any other goods, personal property or real property now owned or hereafter acquired
in which Borrower has expressly granted a security interest or may in the future grant a
security interest to Agent hereunder, or in any amendment or supplement hereto or thereto,
or under any other agreement between Agent and Borrower;

(h) all of Borrower’s ledger sheets, ledger cards, files, correspondence, records,
books of account, business papers, computers, computer software (owned by Borrower or in
which it has an interest), computer programs, tapes, disks and documents relating to (a),
(b), (c), (d), (e), (f) or (g) of this Paragraph; and

(i) all of Borrower’s cash and cash equivalents; and

(j) all proceeds and products of (a), (b), (c), (d), (e), (f), (g), (h) and (i) in
whatever form, including, but not limited to: cash, deposit accounts (whether or not
comprised solely of proceeds), certificates of deposit, insurance proceeds (including
hazard, flood and credit insurance), negotiable instruments and other instruments for the
payment of money, chattel paper, security agreements, documents, eminent domain proceeds,
condemnation proceeds and tort claim proceeds.

“Commitment Percentage” shall mean for any Lender party to this Agreement on the
Closing Date, the percentage set forth below such Lender’s name on the signature page hereof as
same may be adjusted upon any assignment by a Lender pursuant to Section 15.3 (c) or (d) hereof,
and for any Lender that becomes a party to this Agreement pursuant to a Commitment Transfer
Supplement or Modified Commitment Transfer Supplement, the percentage set forth on Schedule 1 to
such Commitment Transfer Supplement or Modified Commitment Transfer Supplement, as applicable.

“Commitment Transfer Supplement” shall mean a document in the form of Exhibit 15.3
hereto, properly completed and otherwise in form and substance satisfactory to Agent by which the
Purchasing Lender purchases and assumes a portion of the obligation of Lenders to make Advances
under this Agreement.

 

7

 

“Compliance Certificate” shall mean a compliance certificate substantially in the form
attached hereto as Exhibit 1.2 (a) to be signed by a Duly Authorized Officer, which shall state
that, based on an examination sufficient to permit such officer to make an informed statement, (i)
no Default or Event of Default exists, or if such is not the case, specifying such Default or Event
of Default, its nature, when it occurred, whether it is continuing and the steps being taken by
Borrower with respect to such default and, such certificate shall have appended thereto
calculations which set forth Borrower’s compliance with the requirements or restrictions imposed by
Sections 6.5, 7.6 and 7.11; and (ii) that to the best of such officer’s knowledge, Borrower is in
compliance in all material respects with all federal, state and local Environmental Laws, or if
such is not the case, specifying all areas of non-compliance and the proposed action Borrower will
implement in order to achieve full compliance. The Compliance Certificate will only be required to
contain the information in clause (ii) if Borrower acquires a fee interest in any Real Property.

“Consents” shall mean all filings and all licenses, permits, consents, approvals,
authorizations, qualifications and orders of Governmental Bodies and other third parties, domestic
or foreign, necessary to carry on Borrower’s business or necessary (including to avoid a conflict
or breach under any agreement, instrument, other document, license, permit or other authorization)
for the execution, delivery or performance of this Agreement, the Other Documents, the Subordinated
Documentation, including any Consents required under all applicable federal, state or other
Applicable Law.

“Controlled Group” shall mean, at any time, the Borrower and all members of a
controlled group of corporations and all trades or businesses (whether or not incorporated) under
common control and all other entities which, together with Borrower, are treated as a single
employer under Section 414 of the Code.

“Credit Enhancement Amount” shall mean the lesser of (i) the Required Credit
Enhancement Amount and (ii) the face amount of any Credit Enhancement Letter of Credit or any cash
or Cash Equivalents held by the Agent as collateral securing the Obligations in substitution
therefore.

“Credit Enhancement Letter of Credit” shall mean a Letter of Credit provided by TCS
for the benefit of Agent in form and substance reasonably acceptable to Agent, including any
replacements or substitutions to such Letter of Credit, in form and substance reasonably acceptable
to Agent.

“Credit Enhancement Letter of Credit Draw Condition” shall mean the earlier of (i)
ninety (90) days following an Event of Default and the acceleration of the Obligations under
Section 11.1 or (ii) thirty (30) days prior to expiration of the Credit Enhancement Letter of
Credit unless (a) evidence that such Credit Enhancement Letter of Credit will be extended is
provided to Agent; (b) a draft of a substitute Letter of Credit with a stated amount equal to or
greater than the Required Enhancement Amount at such time, and otherwise reasonably satisfactory to
Agent is provided to Agent; or (c) Borrower provides sufficient cash or Cash Equivalents as
collateral to Agent in substitution therefore in an amount equal to or greater than the Required
Credit Enhancement Amount at such time.

“Customer” shall mean and include the account debtor with respect to any Receivable
and/or the prospective purchaser of goods, services or both with respect to any contract or
contract right, and/or any party who enters into or proposes to enter into any contract or other
arrangement with Borrower, pursuant to which Borrower is to deliver any personal property or
perform any services.

 

8

 

“Default” shall mean an event, circumstance or condition which, with the giving of
notice or passage of time or both, would constitute an Event of Default.

“Default Rate” shall have the meaning set forth in Section 3.1 hereof.

“Defaulting Lender” shall have the meaning set forth in Section 2.23(a) hereof.

“Depository Accounts” shall have the meaning set forth in Section 4.15(h) hereof.

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

“Domestic Rate Loan” shall mean any Advance that bears interest based upon the
Alternate Base Rate.

“Domestic Subsidiaries” shall mean, with respect to any Person, any Subsidiary of such
Person which is incorporated or organized under the laws of any state of the United States or the
District of Columbia.

“Drawing Date” shall have the meaning set forth in Section 2.10(b) hereof.

“Duly Authorized Officer” shall mean a treasurer, vice president, chief financial
officer, chief executive officer or other officer designated from time to time by Borrower’s Board
of Directors and reasonably acceptable to Agent.

“EBITDA” shall mean for any period, for Borrower, the sum of (i) Net Income for such
period, plus (ii) all Interest Expense for such period, plus (iii) all charges against income of
Borrower for such period for federal, state and local taxes expenses, plus (iv) depreciation
expenses for such period, plus (v) amortization expenses for such period, plus (vi) any
extraordinary, unusual or non-recurring non-cash expenses or losses (including losses on sales of
assets outside of the Ordinary Course of Business) during such period, plus (vii) any restructuring
and other charges, as separately identified and reported on Borrower’s audited financial
statements, incurred during the period beginning with the second quarter of the Borrower’s 2008
fiscal year and ending with the fourth quarter of the Borrower’s 2008 fiscal year, not to exceed
$2,000,000 in aggregate over this period, plus (viii) costs associated with the expensing of stock
options, minus (ix) any extraordinary, unusual or non-recurring non-cash income or gains (including
gains on the sale of assets outside of the Ordinary Course of Business) during such period, in each
case, only to the extent included in the statement of net income for such period. Notwithstanding
the foregoing, EBITDA for the first fiscal quarter of the Borrower’s 2008 fiscal year shall be
deemed to be $3,434,000.

 

9

 

“Eligible Receivables” shall mean and include with respect to Borrower, each
Receivable of Borrower arising in the Ordinary Course of Business and which Agent, in its Permitted
Discretion, shall deem to be an Eligible Receivable, based on such considerations as Agent may
from time to time deem appropriate. A Receivable shall not be deemed eligible unless such
Receivable is subject to Agent’s first priority perfected security interest and no other Lien
(other than Permitted Encumbrances) and, other than with respect to Unbilled Eligible Receivables,
is evidenced by an invoice or other documentary evidence reasonably satisfactory to Agent. In
addition, no Receivable shall be an Eligible Receivable if:

(a) it arises out of a sale made by Borrower to an Affiliate of Borrower or to a Person
controlled by an Affiliate of Borrower;

(b) with respect to Billed Eligible Receivables, it is due or unpaid more than (i)
ninety (90) days after the original invoice date or (ii) sixty (60) days after the original
due date;

(c) with respect to Unbilled Eligible Receivables, it is more than sixty (60) days old;

(d) fifty percent (50%) or more of the Receivables from such Customer are not deemed
Eligible Receivables hereunder;

(e) any covenant, representation or warranty contained in this Agreement with respect
to such Receivable has been breached;

(f) the Customer shall (i) apply for, suffer, or consent to the appointment of, or the
taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or
a substantial part of its property or call a meeting of its creditors, (ii) admit in writing
its inability, or be generally unable, to pay its debts as they become due or cease
operations of its present business, (iii) make a general assignment for the benefit of
creditors, (iv) commence a voluntary case under any state or federal bankruptcy laws (as now
or hereafter in effect), (v) be adjudicated a bankrupt or insolvent, (vi) file a petition
seeking to take advantage of any other law providing for the relief of debtors, (vii)
acquiesce to, or fail to have dismissed, any petition which is filed against it in any
involuntary case under such bankruptcy laws, or (viii) take any action for the purpose of
effecting any of the foregoing;

(g) the sale is to a Customer outside the continental United States of America, unless
the sale is on letter of credit, guaranty or other acceptance terms, in each case acceptable
to Agent in its sole credit judgment exercised in good faith;

(h) the sale to the Customer is on a bill-and-hold, guaranteed sale, sale-and-return,
sale on approval, consignment or any other repurchase or return basis or is evidenced by
chattel paper;

(i) Agent believes, in its Permitted Discretion, that collection of such Receivable is
insecure or that such Receivable may not be paid by reason of the Customer’s financial
inability to pay;

 

10

 

(j) the Customer is the United States of America, any state or any department, agency
or instrumentality of any of them, unless Borrower assigns its right to payment of such
Receivable to Agent pursuant to the Assignment of Claims Act of 1940, as amended
(31 U.S.C. Sub-Section 3727 et seq. and 41 U.S.C. Sub-Section 15 et seq.) or has otherwise
complied with other applicable statutes or ordinances;

(k) the goods giving rise to such Receivable have not been delivered to and accepted by
the Customer or the services giving rise to such Receivable have not been performed by
Borrower and accepted by the Customer or the Receivable otherwise does not represent a final
sale;

(l) the Receivables of the Customer exceed a concentration limit determined by Agent,
in its Permitted Discretion, to the extent such Receivable exceeds such limit; provided,
however, any concentration limit established by Agent shall not be less than 20% and Agent
shall provide Borrower with prior notice of the establishment of any such concentration
limit;

(m) the Receivable is subject to any asserted or threatened offset, deduction, defense,
dispute, or counterclaim (but only as to that portion of the Receivable subject to such
asserted or threatened offset, deduction, defense, dispute or counterclaim), the Customer is
also a creditor or supplier of Borrower (but only as to that portion of the Receivable that
does not exceed the amount owed by Borrower to such creditor or supplier) or the Receivable
is contingent in any respect or for any reason;

(n) Borrower has made any agreement with any Customer for any deduction therefrom,
except for discounts or allowances made in the Ordinary Course of Business, all of which
discounts or allowances are reflected in the calculation of the face value of each
respective invoice related thereto;

(o) any return, rejection or repossession of the merchandise has occurred or the
rendition of services has been disputed; or

(p) such Receivable is not payable to Borrower.

“Environmental Complaint” shall have the meaning set forth in Section 4.19(b) hereof.

“Environmental Laws” shall mean all federal, state and local environmental, land use,
zoning, health, chemical use, safety and sanitation laws, statutes, ordinances and codes relating
to the protection of the environment and/or governing the use, storage, treatment, generation,
transportation, processing, handling, production or disposal of Hazardous Substances and the rules,
regulations, policies, guidelines, interpretations, decisions, orders and directives of federal,
state and local governmental agencies and authorities with respect thereto.

 

11

 

“Equipment” shall mean and include all of Borrower’s goods (other than Inventory)
whether now owned or hereafter acquired and wherever located including all equipment,
machinery, apparatus, motor vehicles, fittings, furniture, furnishings, fixtures, parts,
accessories and all replacements and substitutions therefor or accessions thereto.

“Equity Interests” of any Person shall mean any and all shares, rights to purchase,
options, warrants, general, limited or limited liability partnership interests, member interests,
participation or other equivalents of or interest in (regardless of how designated) equity of such
Person, whether voting or nonvoting, including common stock, preferred stock, convertible
securities or any other “equity security” (as such term is defined in Rule 3a11-1 of the General
Rules and Regulations promulgated by the SEC under the Exchange Act).

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

“Eurodollar Rate” shall mean for any Eurodollar Rate Loan for the then current
Interest Period relating thereto the interest rate per annum determined by Agent by dividing (the
resulting quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the
rate which appears on the Bloomberg Page BBAM1 (or on such other substitute Bloomberg page that
displays rates at which U.S. dollar deposits are offered by leading banks in the London interbank
deposit market), or the rate which is quoted by another source selected by the Agent which has been
approved by the British Bankers’ Association as an authorized information vendor for the purpose of
displaying rates at which U.S. dollar deposits are offered by leading banks in the London interbank
deposit market (an “Alternate Source”), at approximately 11:00 a.m., London time, two (2) Business
Days prior to the commencement of such Interest Period as the London interbank offered rate for
U.S. Dollars for an amount comparable to such Eurodollar Rate Loan and having a borrowing date and
a maturity comparable to such Interest Period (or if there shall at any time, for any reason, no
longer exist a Bloomberg Page BBAM1 (or any substitute page) or any Alternate Source, a comparable
replacement rate determined by Agent at such time (which determination shall be conclusive absent
manifest error)), by (ii) a number equal to 1.00 minus the Reserve Percentage. The Eurodollar Rate
may also be expressed by the following formula:

	 	 	 	 	 
	 

	 	Average of London interbank offered rates quoted by	 	 
	 

	 	Bloomberg as shown on	 	 
	Eurodollar Rate =

	 	Bloomberg page	 	 
	 

	 	BBAM1
 

	 	 
	 

	 	1.00 – Reserve Percentage	 	 

The Eurodollar Rate shall be adjusted with respect to any Eurodollar Rate Loan that is outstanding
on the effective date of any change in the Reserve Percentage as of such effective date. The Agent
shall give prompt notice to the Borrower of the Eurodollar Rate as determined or adjusted in
accordance herewith, which determination shall be conclusive absent manifest error.

“Eurodollar Rate Loan” shall mean an Advance at any time that bears interest based on
the Eurodollar Rate.

 

12

 

“Event of Default” shall have the meaning set forth in Article X hereof.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“Executive Order No. 13224” shall mean the Executive Order No. 13224 on Terrorist
Financing, effective September 24, 2001, as the same has been, or shall hereafter be, renewed,
extended, amended or replaced.

“Existing Lenders” shall mean, collectively, Atalaya and LaSalle Bank National
Association.

“Federal Funds Effective Rate” for any day shall mean the rate per annum (based on a
year of 360 days and actual days elapsed and rounded upward to the nearest 1/100 of 1%) announced
by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted
average of the rates on overnight federal funds transactions arranged by federal funds brokers on
the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor)
in substantially the same manner as such Federal Reserve Bank computes and announces the weighted
average it refers to as the “Federal Funds Effective Rate” as of the date of this Agreement;
provided, if such Federal Reserve Bank (or its successor) does not announce such rate on any day,
the “Federal Funds Effective Rate” for such day shall be the Federal Funds Effective Rate for the
last day on which such rate was announced.

“Federal Funds Open Rate” shall mean the rate per annum determined by Agent in
accordance with its usual procedures (which determination shall be conclusive absent manifest
error) to be the “open” rate for federal funds transactions as of the opening of business for
federal funds transactions among members of the Federal Reserve System arranged by federal funds
brokers on such day, as quoted by Garvin Guybutler Corporation, any successor entity thereto, or
any other broker selected by Agent, as set forth on the applicable Telerate display page; provided,
however; that if such day is not a Business Day, the Federal Funds Open Rate for such day shall be
the “open” rate on the immediately preceding Business Day, or if no such rate shall be quoted by a
Federal funds broker at such time, such other rate as determined by Agent in accordance with its
usual procedures.

“Fee Letter” shall mean the fee letter dated April 23, 2008 between Borrower and PNC.

“Fixed Charge Coverage Ratio” shall mean and include, with respect to the applicable
fiscal period, the ratio of (a) EBITDA for such fiscal period minus Capital Expenditures of
Borrower made during such fiscal period which are not funded by borrowed money (other than proceeds
of Advances) minus Cash Taxes paid by Borrower during such fiscal period minus any cash dividends
or distributions made by Borrower during such fiscal period to (b) the sum of all Funded Debt
Payments made during such fiscal period.

“Foreign Subsidiary” of any Person, shall mean any Subsidiary of such Person that is
not organized or incorporated in the United States or any State or territory thereof.

 

13

 

“Formula Amount” shall mean, as of any date of determination, an amount equal to (a)
the sum of the (i) Advance Rate plus (ii) the Credit Enhancement Amount minus (b) the sum of the
(i) aggregate Maximum Undrawn Amount of all Letters of Credit Outstanding, (ii) the Restructuring
Reserve, (iii) the Availability Reserve and (iv) any additional reserves established by Agent in
its Permitted Discretion.

“Funded Debt Payments” shall mean and include for any fiscal period all cash actually
expended by Borrower to make (a) interest payments on any Advances hereunder, plus (b) capitalized
lease payments, plus (c) payments with respect to any Indebtedness for borrowed money.

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

“General Intangibles” shall mean and include all of Borrower’s general intangibles,
whether now owned or hereafter acquired, including all payment intangibles, all choses in action,
causes of action, corporate or other business records, inventions, designs, patents, patent
applications, equipment formulations, manufacturing procedures, quality control procedures,
trademarks, trademark applications, service marks, trade secrets, goodwill, copyrights, design
rights, software, computer information, source codes, codes, records and updates, registrations,
licenses, franchises, customer lists, tax refunds, tax refund claims, computer programs, all claims
under guaranties, security interests or other security held by or granted to Borrower to secure
payment of any of the Receivables by a Customer (other than to the extent covered by Receivables)
all rights of indemnification and all other intangible property of every kind and nature (other
than Receivables).

“Governmental Acts” shall have the meaning set forth in Section 2.15.

“Governmental Body” shall mean any nation or government, any state or other political
subdivision thereof or any entity, authority, agency, division or department exercising the
legislative, judicial, regulatory or administrative functions of or pertaining to a government.

“Guarantor” shall mean APAC Customer Services of Iowa, L.L.C. and any other Person who
may hereafter guarantee payment or performance of the whole or any part of the Obligations and
“Guarantors” means collectively all such Persons.

“Guarantor Security Agreement” shall mean any Security Agreement executed by any
Guarantor in favor of Agent securing the Guaranty of such Guarantor.

“Guaranty” shall mean any guaranty of the obligations of Borrower executed by a
Guarantor in favor of Agent for its benefit and for the ratable benefit of Lenders.

“Hazardous Discharge” shall have the meaning set forth in Section 4.19(b) hereof.

 

14

 

“Hazardous Substance” shall mean, without limitation, any flammable explosives, radon,
radioactive materials, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls,
petroleum and petroleum products, methane, hazardous materials, Hazardous Wastes, hazardous or
Toxic Substances or related materials as defined in CERCLA, the Hazardous Materials Transportation
Act, as amended (49 U.S.C. Sections 1801, et seq.), RCRA, Articles 15 and 27 of the New York State
Environmental Conservation Law or any other applicable Environmental Law and in the regulations
adopted pursuant thereto.

“Hazardous Wastes” shall mean all waste materials subject to regulation under CERCLA,
RCRA or applicable state law, and any other applicable Federal and state laws now in force or
hereafter enacted relating to hazardous waste disposal.

“Hedge Liabilities” shall have the meaning provided in the definition of
“Lender-Provided Interest Rate Hedge”.

“Indebtedness” of a Person at a particular date shall mean all obligations of such
Person which in accordance with GAAP would be classified upon a balance sheet as liabilities
(except capital stock and surplus earned or otherwise) and in any event, without limitation by
reason of enumeration, shall include all indebtedness, debt and other similar monetary obligations
of such Person whether direct or guaranteed, and all premiums, if any, due at the required
prepayment dates of such indebtedness, and all indebtedness secured by a Lien on assets owned by
such Person, whether or not such indebtedness actually shall have been created, assumed or incurred
by such Person. Any indebtedness of such Person resulting from the acquisition by such Person of
any assets subject to any Lien shall be deemed, for the purposes hereof, to be the equivalent of
the creation, assumption and incurring of the indebtedness secured thereby, whether or not actually
so created, assumed or incurred.

“Ineligible Security” shall mean any security which may not be underwritten or dealt
in by member banks of the Federal Reserve System under Section 16 of the Banking Act of 1933
(12 U.S.C. Section 24, Seventh), as amended.

“Intellectual Property” shall mean property constituting under any Applicable Law a
patent, patent application, copyright, trademark, service mark, trade name, mask work, trade secret
or license or other right to use any of the foregoing.

“Intellectual Property Claim” shall mean the assertion by any Person of a claim
(whether asserted in writing, by action, suit or proceeding or otherwise) that Borrower’s
ownership, use, marketing, sale or distribution of any Inventory, Equipment, Intellectual Property
or other property or asset is violative of any ownership of or right to use any Intellectual
Property of such Person.

“Interest Expense” shall mean for any period interest expense, net of cash interest
income, of Borrower for such period, as determined in accordance with GAAP.

“Interest Period” shall mean the period provided for any Eurodollar Rate Loan pursuant
to Section 2.2(b).

 

15

 

“Interest Rate” shall mean an interest rate per annum equal to (a) the sum of the
Alternate Base Rate plus the Applicable Margin with respect to Domestic Rate Loans and (b) the sum
of the Eurodollar Rate plus the Applicable Margin with respect to Eurodollar Rate Loans.

“Interest Rate Hedge” shall mean an interest rate exchange, collar, cap, swap,
adjustable strike cap, adjustable strike corridor or similar agreements entered into by the
Borrower or its Subsidiaries in order to provide protection to, or minimize the impact upon, the
Borrower, any Guarantor and/or their respective Subsidiaries of increasing floating rates of
interest applicable to Indebtedness.

“Inventory” shall mean and include all of Borrower’s now owned or hereafter acquired
goods, merchandise and other personal property, wherever located, to be furnished under any
consignment arrangement, contract of service or held for sale or lease, all raw materials, work in
process, finished goods and materials and supplies of any kind, nature or description which are or
might be used or consumed in Borrower’s business or used in selling or furnishing such goods,
merchandise and other personal property, and all documents of title or other documents representing
them.

“Investment Property” shall mean and include all of Borrower’s now owned or hereafter
acquired securities (whether certificated or uncertificated), securities entitlements, securities
accounts, commodities contracts and commodities accounts.

“ISP98 Rules” shall have the meaning set forth in Section 2.8(b) hereof.

“Issuer” shall mean PNC in its capacity as issuer of Letters of Credit hereunder, or
any successor issuer of Letters of Credit hereunder.

“Lender” and “Lenders” shall have the meaning ascribed to such term in the
preamble to this Agreement and shall include each Person which becomes a transferee, successor or
assign of any Lender.

“Lender Default” shall have the meaning set forth in Section 2.23(a).

“Lender-Provided Interest Rate Hedge” shall mean an Interest Rate Hedge which is
provided by any Person (or affiliate of such Person) that was a Lender at the time it entered into
such Interest Rate Hedge, whether or not such Person has ceased to be a Lender under this Agreement
and with respect to which Agent confirms meets the following requirements: such Interest Rate Hedge
(i) is documented in a standard International Swap Dealer Association Agreement, (ii) provides for
the method of calculating the reimbursable amount of the provider’s credit exposure in a reasonable
and customary manner, and (iii) is entered into for hedging (rather than speculative) purposes.
The liabilities of Borrower to the provider of any Lender-Provided Interest Rate Hedge (the
“Hedge Liabilities”) shall be “Obligations” hereunder, guaranteed obligations under the
Guaranty and secured obligations under the Guarantor Security Agreement and otherwise treated as
Obligations for purposes of each of the Other Documents. The Liens securing the Hedge Liabilities
shall be pari passu with the Liens securing all other Obligations under this Agreement and the
Other Documents.

 

16

 

“Letter of Credit Application” shall have the meaning set forth in Section 2.8(a).

“Letter of Credit Borrowing” shall have the meaning set forth in Section 2.10(d).

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

“Letter of Credit Fees” shall have the meaning set forth in Section 3.2.

“Letter of Credit Sublimit” shall mean $5,000,000 (specifically excluding the Credit
Enhancement Letter of Credit).

“Letters of Credit” shall mean any standby letter of credit issued hereunder. For the
avoidance of doubt, the term “Letters of Credit” does not include the Credit Enhancement Letter of
Credit.

“License Agreement” shall mean any agreement between Borrower and a Licensor pursuant
to which Borrower is authorized to use any Intellectual Property in connection with the
manufacturing, marketing, sale or other distribution of any Inventory of Borrower or otherwise in
connection with Borrower’s business operations.

“Licensor” shall mean any Person from whom Borrower obtains the right to use (whether
on an exclusive or non-exclusive basis) any Intellectual Property in connection with Borrower’s
manufacture, marketing, sale or other distribution of any Inventory or otherwise in connection with
Borrower’s business operations.

“Licensor/Agent Agreement” shall mean an agreement between Agent and a Licensor, in
form and content satisfactory to Agent, by which Agent is given the unqualified right, vis-a-vis
such Licensor, to enforce Agent’s Liens with respect to and to dispose of Borrower’s Inventory with
the benefit of any Intellectual Property applicable thereto, irrespective of Borrower’s default
under any License Agreement with such Licensor.

“Lien” shall mean any mortgage, deed of trust, pledge, hypothecation, assignment,
security interest, lien (whether statutory or otherwise), Charge, claim or encumbrance, or
preference, priority or other security agreement or preferential arrangement held or asserted in
respect of any asset of any kind or nature whatsoever including any conditional sale or other title
retention agreement, any lease having substantially the same economic effect as any of the
foregoing, and the filing of, or agreement to give, any financing statement under the Uniform
Commercial Code or comparable law of any jurisdiction.

 

17

 

“Lien Waiver Agreement” shall mean an agreement which is executed in favor of Agent by
a Person who owns or occupies premises at which any Collateral may be located from time to time and
by which such Person shall waive any Lien that such Person may ever have with respect to any of the
Collateral and shall authorize Agent from time to time to enter upon the premises to inspect or
remove the Collateral from such premises or to use such premises to store or dispose of such
Collateral.

“Material Adverse Effect” shall mean a material adverse effect on (a) the condition
(financial or otherwise), results of operations, assets, business or properties of Borrower or any
Guarantor, (b) Borrower’s ability to pay when due or perform the Obligations in accordance with the
terms thereof, (c) the value of the Collateral, or Agent’s Liens on the Collateral or the priority
of any such Lien or (d) the validity or enforceability of this Agreement.

“Material Contract” shall mean any contract, agreement, permit or license, written or
oral, of a Borrower the failure to comply with which could reasonably be expected to have a
Material Adverse Effect.

“Maximum Revolving Advance Amount” shall mean $40,000,000.

“Maximum Undrawn Amount” shall mean with respect to any outstanding Letter of Credit,
the amount of such Letter of Credit that is or may become available to be drawn, including all
automatic increases provided for in such Letter of Credit, whether or not any such automatic
increase has become effective.

“Modified Commitment Transfer Supplement” shall have the meaning set forth in Section
15.3(d).

“Multiemployer Plan” shall mean a “multiemployer plan” as defined in Sections 3(37)
and 4001(a)(3) of ERISA.

“Multiple Employer Plan” shall mean a Plan which has two or more contributing sponsors
(including the Borrower or any member of the Controlled Group) at least two of whom are not under
common control, as such a plan is described in Section  4064 of ERISA.

“Net Income” shall mean for any period, the net income (or loss) of Borrower,
determined in accordance with GAAP; provided, that there shall be excluded (a) the income
(or deficit) of any Person accrued prior to the date it becomes a Subsidiary of Borrower or is
merged into or consolidated with the Borrower, (b) the net income (or deficit) of any Person (other
than a Subsidiary of Borrower) in which the Borrower has an ownership interest, except to the
extent that any such income is actually received by Borrower in the form of dividends or similar
distributions and (c) the undistributed earnings of any Subsidiary to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary is at the time
prohibited by the terms of any agreement to which such Person is a party or by which it or any of
its property is bound, any of such Person’s organizational documents or other legal proceedings
binding upon such Person or any of its property or to which such Person or any of its property is
subject.

 

18

 

“Non-Defaulting Lender” shall have the meaning set forth in Section 2.23(b).

“Note” shall mean the Revolving Credit Note.

“Obligations” shall mean and include the Advances, any other loans and advances or
extensions of credit made or to be made by any Lender to Borrower, or to others for Borrower’s
account, in each case pursuant to the terms and provisions of this Agreement, together with
interest thereon (including interest which accrues after the commencement of any bankruptcy or
similar case, whether or not such post-petition interest is allowed in such case) and, including,
without limitation, any reimbursement obligation or indemnity of Borrower on account of Letters of
Credit and all other obligations in respect of Letters of Credit and all indebtedness, fees,
liabilities and obligations that may at any time be owing by Borrower to any Lender (or an
Affiliate of a Lender) or Agent, in each case pursuant to this Agreement or any Other Document,
whether now in existence or incurred by Borrower from time to time hereafter, whether unsecured or
secured by pledge of, Lien upon or security interest in any of Borrower’s assets or property or the
assets or property of any other Person, whether arising out of overdrafts or deposit or other
accounts or electronic funds transfers (whether through automated clearing houses or otherwise) or
out of Agent or any Lender’s non-receipt of or inability to collect funds or otherwise not being
made whole in connection with depository transfer check or other similar arrangements, whether such
indebtedness is absolute or contingent, joint or several, matured or unmatured, direct or indirect
and whether Borrower is liable to such Lender (or an Affiliate of a Lender) for such indebtedness
as principal, surety, endorser, guarantor or otherwise. Obligations shall also include any other
indebtedness owing to any Lender (or an Affiliate of a Lender) by Borrower under this Agreement and
the Other Documents, all liabilities and obligations arising under Lender-Provided Interest Rate
Hedges owing from Borrower to any Lender, or any Affiliate of a Lender (or any Person that was a
Lender or an affiliate of a Lender at the time such Lender-Provided Interest Rate Hedge was entered
into), permitted hereunder, and all liabilities and obligations now or hereafter arising from or in
connection with any Cash Management Products.

“Ordinary Course of Business” shall mean the ordinary course of Borrower’s business as
conducted on the Closing Date.

“Original Owners” shall mean Theodore G. Schwartz.

“Other Documents” shall mean the Note, the Fee Letter, any Guaranty, any Guarantor
Security Agreement, any Lender-Provided Interest Rate Hedge, any Letter of Credit Document and any
and all other agreements, instruments and documents, including guaranties, pledges, powers of
attorney, consents, interest or currency swap agreements or other similar agreements and all other
writings heretofore, now or hereafter executed by Borrower or any Guarantor and/or delivered to
Agent or any Lender in respect of the transactions contemplated by this Agreement other than the
Subordinated Documentation.

“Out-of-Formula Loans” shall have the meaning set forth in Section 15.2(b).

 

19

 

“Parent” of any Person shall mean a corporation or other entity owning, directly or
indirectly at least 50% of the shares of stock or other ownership interests having ordinary voting
power to elect a majority of the directors of the Person, or other Persons performing similar
functions for any such Person.

“Participant” shall mean each Person who shall be granted the right by any Lender to
participate in any of the Advances and who shall have entered into a participation agreement in
form and substance satisfactory to such Lender.

“Participation Advance” shall have the meaning set forth in Section 2.10(d).

“Participation Commitment” shall mean each Lender’s obligation to buy a participation
of the Letters of Credit issued hereunder as provided in Section 2.10(c).

“Payment Office” shall mean initially Two Tower Center Boulevard, East Brunswick, New
Jersey 08816; thereafter, such other office of Agent, if any, which it may designate by notice to
Borrower and to each Lender to be the Payment Office.

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

“Pension Benefit Plan” shall mean at any time any employee pension benefit plan
(including a Multiple Employer Plan, but not a Multiemployer Plan) which is covered by Title IV of
ERISA or is subject to the minimum funding standards under Section 412 of the Code and either (i)
is maintained by any member of the Controlled Group for employees of any member of the Controlled
Group; or (ii) has at any time within the preceding five years been maintained by any entity which
was at such time a member of the Controlled Group for employees of any entity which was at such
time a member of the Controlled Group.

“Permitted Currency Hedge Agreements” shall mean currency hedge agreements entered
into by Borrower in the Ordinary Course of Business.

“Permitted Discretion” shall mean a determination made in the exercise of reasonable
(from the perspective of a secured asset-based lender) business judgment.

“Permitted Encumbrances” shall mean:

(a) Liens in favor of Agent for the benefit of Agent and Lenders;

(b) Liens for Charges not delinquent or being Properly Contested, but only if the Lien
shall have no effect on the priority of the Liens in favor of Agent or the value of the
assets in which Agent has such a Lien and a stay of enforcement of any such Lien shall be in
effect;

(c) Liens disclosed in the financial statements referred to in Section 5.5, the
existence of which Agent has consented to in writing;

 

20

 

(d) deposits or pledges to secure obligations under worker’s compensation, social
security or similar laws, or under unemployment insurance;

(e) 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;

(f) Liens arising by virtue of the rendition, entry or issuance against Borrower, or
any property of Borrower, of any judgment, writ, order, or decree for so long as each such
Lien (i) is in existence for less than thirty (30) consecutive days after it first arises or
is being Properly Contested and (ii) is at all times junior in priority to any Liens in
favor of Agent;

(g) mechanics’, workers’, materialmen’s, carriers’, repairmens’ or other like Liens
arising in the Ordinary Course of Business with respect to obligations which are not due or
which are being contested in good faith by Borrower;

(h) Liens securing Permitted Purchase Money Indebtedness, provided that (i) such Liens
shall be created substantially simultaneously with the acquisition of the asset acquired
with such Indebtedness, (ii) such Liens do not at any time encumber any property other than
the property financed by such Indebtedness, (iii) the amount of Indebtedness secured thereby
is not increased and (iv) the principal amount of Indebtedness secured by any such Lien
shall at no time exceed 100% of the original purchase price of such property;

(i) easements, rights-of-way, restrictions and other similar encumbrances or Liens
incurred in the Ordinary Course of Business which, in the aggregate, are not substantial in
amount and which do not in any case materially detract from the value of the property
subject thereto or materially interfere with the ordinary conduct of the business on the
property subject to such encumbrances;

(j) Liens securing the Subordinated Documentation;

(k) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

(l) Liens of sellers of good arising under Article 2 of the Uniform Commercial Code;

(m) Liens on cash equivalents relating to banker’s liens, rights of set-off or similar
rights as to deposit securities accounts and liens of a collection bank arising under
Section 4-210 of the Uniform Commercial Code on items in the course of collection;

(n) any interest or title of a lessor or a sublessor under any operating lease or any
capitalized lease; and

(o) Liens disclosed on Schedule 1.2.

 

21

 

“Permitted Purchase Money Indebtedness” shall mean Purchase Money Indebtedness of
Borrower which is incurred after the date of this Agreement and which is secured by no Lien or only
by a Purchase Money Lien; provided that (a) the aggregate principal amount of such Purchase Money
Indebtedness outstanding at any time shall not exceed $250,000 (including any such Indebtedness on
Schedule 7.8), (b) such Indebtedness when incurred shall not exceed the purchase price of the
asset(s) financed, and (c) no such Indebtedness shall be refinanced for a principal amount in
excess of the principal balance outstanding thereon at the time of such refinancing.

“Person” shall mean any individual, sole proprietorship, partnership, corporation,
business trust, joint stock company, trust, unincorporated organization, association, limited
liability company, limited liability partnership, institution, public benefit corporation, joint
venture, entity or Governmental Body (whether federal, state, county, city, municipal or otherwise,
including any instrumentality, division, agency, body or department thereof).

“Philippines Accounts” shall mean the four accounts identified as the “Foreign Bank
Accounts” on Schedule 4.15(h) or any successor accounts.

“Plan” shall mean any employee benefit plan within the meaning of Section 3(3) of
ERISA (including a Pension Benefit Plan), maintained for employees of Borrower or any member of the
Controlled Group or any such Plan to which Borrower or any member of the Controlled Group is
required to contribute on behalf of any of its employees.

“PNC” shall have the meaning set forth in the preamble to this Agreement and shall
extend to all of its successors and assigns.

“Pro Forma Balance Sheet” shall have the meaning set forth in Section 5.5(a) hereof.

“Pro Forma Financial Statements” shall have the meaning set forth in Section 5.5(b)
hereof.

“Projections” shall have the meaning set forth in Section 5.5(b) hereof.

“Properly Contested” shall mean, in the case of any Indebtedness of any Person
(including any taxes) that is not paid as and when due or payable by reason of such Person’s bona
fide dispute concerning its liability to pay same or concerning the amount thereof, (i) such
Indebtedness is being properly contested in good faith by appropriate proceedings promptly
instituted and diligently conducted; (ii) such Person has established appropriate reserves as shall
be required in conformity with GAAP; (iii) the non-payment of such Indebtedness will not have a
Material Adverse Effect and will not result in the forfeiture of any assets of such Person; (iv) no
Lien is imposed upon any of such Person’s assets with respect to such Indebtedness unless such Lien
is at all times junior and subordinate in priority to the Liens in favor of the Agent (except only
with respect to property taxes that have priority as a matter of applicable state law)
and enforcement of such Lien is stayed during the period prior to the final resolution or
disposition of such dispute; (v) if such Indebtedness results from, or is determined by the entry,
rendition or issuance against a Person or any of its assets of a judgment, writ, order or decree,
enforcement of such judgment, writ, order or decree is stayed pending a timely appeal or other
judicial review; and (vi) if such contest is abandoned, settled or determined adversely (in whole
or in part) to such Person, such Person forthwith pays such Indebtedness and all penalties,
interest and other amounts due in connection therewith.

 

22

 

“Properly Contested for Taxes” shall mean (i) such taxes are being properly contested
in good faith by appropriate proceedings promptly instituted and diligently conducted; and (ii)
appropriate reserves as shall be required in conformity with GAAP have been established.

“Purchase Money Indebtedness” shall mean and include (i) Indebtedness (other than the
Obligations) of Borrower for the payment of all or any part of the purchase price of any Equipment,
(ii) any Indebtedness (other than the Obligations) of Borrower incurred at the time of or within
thirty (30) days prior to or one hundred twenty (120) days after the acquisition of any Equipment
for the purpose of financing all or any part of the purchase price thereof (whether by means of a
loan agreement, capitalized lease or otherwise), and (iii) any renewals, extensions or refinancings
(but not any increases in the principal amounts) thereof outstanding at the time.

“Purchase Money Lien” shall mean a Lien upon Equipment which secures Purchase Money
Indebtedness, but only if such Lien shall at all times be confined solely to the fixed assets
acquired through the incurrence of the Purchase Money Indebtedness secured by such Lien and shall
not encumber any other property of Borrower, and such Lien constitutes a purchase money security
interest under the Uniform Commercial Code.

“Purchasing CLO” shall have the meaning set forth in Section 15.3(d) hereof.

“Purchasing Lender” shall have the meaning set forth in Section 15.3(c) hereof.

“Questionnaire” shall mean the Documentation Information Questionnaire and the
responses thereto provided by Borrower and delivered to Agent.

“RCRA” shall mean the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et
seq., as same may be amended from time to time.

“Real Property” shall mean all real property owned and leased by Borrower and
identified on Schedule 4.5 hereto.

“Receivables” shall mean and include, as to Borrower, all of Borrower’s accounts,
contract rights, instruments (including those evidencing indebtedness owed to Borrower by its
Affiliates), documents, chattel paper (including electronic chattel paper), general intangibles
relating to accounts, drafts and acceptances, credit card receivables and all other forms of
obligations owing to Borrower arising out of or in connection with the sale or lease of Inventory
or the rendition of services, all supporting obligations, guarantees and other security therefor,
whether secured or unsecured, now existing or hereafter created, and whether or not
specifically sold or assigned to Agent hereunder.

 

23

 

“Reimbursement Agreement” shall mean that certain Reimbursement and Security Agreement
of even date herewith by and between Borrower and TCS, as the same may be amended, restated,
supplement or otherwise modified from time to time.

“Reimbursement Obligation” shall have the meaning set forth in Section 2.10(b) hereof.

“Release” shall have the meaning set forth in Section 5.7(c)(i) hereof.

“Register” shall have the meaning set forth in Section 15.3(e).

“Reportable Event” shall mean a reportable event described in Section 4043(b) of ERISA
or the regulations promulgated thereunder.

“Required Credit Enhancement Amount” shall mean $9,000,000, as such amount may be
reduced pursuant to the terms of Section 4.23 or 4.24 hereof.

“Required Lenders” shall mean Lenders holding sixty-six and two-thirds percent
(66-2/3%) of the Commitment Percentage; provided, however, if there are fewer than
three (3) Lenders (including any Defaulting Lender), Required Lenders shall mean all Lenders (other
than any Defaulting Lender).

“Reserve Percentage” shall mean as of any day the maximum percentage in effect on such
day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for
determining the reserve requirements (including supplemental, marginal and emergency reserve
requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency
Liabilities”).

“Restructuring Reserve” shall mean a $1,500,000 restructuring reserve on the Closing
Date that will be reduced quarterly to an amount equal to the lesser of (i) $1,500,000 and (ii) the
accrued but unpaid scheduled restructuring payments by Borrower.

“Revolving Credit Note” shall mean the promissory notes referred to in Section 2.1(a)
hereof.

“SEC” shall mean the Securities and Exchange Commission or any successor thereto.

“Section 20 Subsidiary” shall mean the Subsidiary of the bank holding company
controlling PNC, which Subsidiary has been granted authority by the Federal Reserve Board to
underwrite and deal in certain Ineligible Securities.

“Securities Act” shall mean the Securities Act of 1933, as amended.

 

24

 

“Settlement Date” shall mean the Closing Date and thereafter Wednesday or Thursday of
each week or more frequently if Agent deems appropriate unless such day is not a Business Day in
which case it shall be the next succeeding Business Day.

“Subordinated Documentation” shall mean the Reimbursement Agreement and any and all
other agreements, instruments and documents, and all other writings heretofore, now or hereafter,
now or hereafter executed by Borrower or any Guarantor in respect of the transaction contemplated
by the Reimbursement Agreement.

“Subordinated Obligations” shall mean the “Reimbursement Obligations” as such term is
defined in the Reimbursement Agreement.

“Subordination Agreement” shall mean the Intercreditor and Subordination Agreement of
even date herewith among Agent, Borrower and TCS.

“Subsidiary” of any Person shall mean a corporation or other entity of whose Equity
Interests having ordinary voting power (other than Equity Interests having such power only by
reason of the happening of a contingency) to elect a majority of the directors of such corporation,
or other Persons performing similar functions for such entity, are owned, directly or indirectly,
by such Person.

“Subsidiary Stock” shall mean:

(a) one hundred percent 100% of the issued and outstanding Equity Interests of any Domestic
Subsidiary of Borrower and 65% of each class of the issued and outstanding Equity Interests
entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Voting
Equity”) and 100% of each class of the issued and outstanding Equity Interests not entitled to
vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Non-Voting Equity”) of
each Foreign Subsidiary (but only to the extent that the pledge of such Non-Voting Equity would not
cause the Obligations to be treated as “United States property” of such Foreign Subsidiary within
the meaning of Treas. Reg. Section 1.956-2), in each case together with the certificates (or other
agreements or instruments), if any, representing such Equity Interests, and all options and other
rights, contractual or otherwise, with respect thereto (collectively, the “Pledge Capital
Stock”), including, but not limited to, the following:

(y) subject to the percentage restrictions described above, all shares,
securities, membership interests or other equity interests representing a dividend
on any of the Pledged Capital Stock, or representing a distribution or return of
capital upon or in respect of the Pledged Capital Stock, or resulting from a stock
split, revision, reclassification or other exchange therefor, and any subscriptions,
warrants, rights or options issued to the holder of, or otherwise in respect of, the
Pledged Capital Stock; and

(z) without affecting the obligations of Borrower under any provision
prohibiting such action hereunder, in the event of any consolidation or merger
involving the issuer of any Pledged Capital Stock and in which such issuer is not
the surviving entity, all shares of each class of the Equity Interests of the
successor entity formed by or resulting from such consolidation or merger;

 

25

 

(b) Subject to the percentage restrictions described above, any and all other Capital Stock
owned by Borrower in any Domestic Subsidiary or any Foreign Subsidiary; and

(c) All proceeds and products of the foregoing, however and whenever acquired and in whatever
form.

“Term” shall have the meaning set forth in Section 13.1 hereof.

“Termination Event” shall mean (i) a Reportable Event with respect to any Plan or
Multiemployer Plan; (ii) the withdrawal of Borrower or any member of the Controlled Group from a
Plan or Multiemployer Plan during a plan year in which such entity was a “substantial employer” as
defined in Section 4001(a)(2) of ERISA; (iii) the providing of notice of intent to terminate a Plan
in a distress termination described in Section 4041(c) of ERISA; (iv) the institution by the PBGC
of proceedings to terminate a Plan or Multiemployer Plan; (v) any event or condition (a) which
might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Plan or Multiemployer Plan, or (b) that may result in termination of a
Multiemployer Plan pursuant to Section 4041A of ERISA; or (vi) the partial or complete withdrawal
within the meaning of Sections 4203 and 4205 of ERISA, of Borrower or any member of the Controlled
Group from a Multiemployer Plan.

“Toxic Substance” shall mean and include any material present on the Real Property
which has been shown to have significant adverse effect on human health or which is subject to
regulation under the Toxic Substances Control Act (TSCA), 15 U.S.C. §§ 2601 et seq., applicable
state law, or any other applicable Federal or state laws now in force or hereafter enacted relating
to toxic substances. “Toxic Substance” includes but is not limited to asbestos, polychlorinated
biphenyls (PCBs) and lead-based paints.

“Trading with the Enemy Act” shall mean the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any enabling
legislation or executive order relating thereto.

“Transaction Costs” shall mean the fees, costs and expenses payable by Borrower in
connection with the transactions contemplated by this Agreement, the Other Documents, the
Subordinated Documents and all amendments, restatements, supplements or other modifications to each
of the foregoing (including without limitation, any and all (i) prepayment premiums and other fees
payable to the Existing Lenders and (ii) closing fees, amendment fees and other fees payable in
connection with any of the foregoing).

“Transactions” shall have the meaning set forth in Section 5.5 hereof.

“Transferee” shall have the meaning set forth in Section 15.3(d) hereof.

“TCS” shall mean TCS Global Holdings, L.P., a Nevada limited partnership.

 

26

 

“UCP” shall have the meaning set forth in Section 2.8(b) hereof.

“Unbilled Eligible Receivables” shall mean an Eligible Receivable not yet evidenced by
an invoice but projected to be invoiced within sixty (60) days after the last date of the service
giving rise to such Eligible Receivable based upon documentation reasonably satisfactory to Agent
in its Permitted Discretion.

“Undrawn Availability” at a particular date shall mean an amount equal to (a) the
lesser of (i) the Formula Amount or (ii) the Maximum Revolving Advance Amount, minus (b) the sum of
(i) the outstanding amount of Advances plus (ii) all amounts due and owing to Borrower’s trade
creditors which are outstanding more than sixty (60) days after their due date (excluding the rent
due the Philippines landlord) plus (iii) fees and expenses for which Borrower is liable but which
have not been paid or charged to Borrower’s Account.

“Uniform Commercial Code” shall have the meaning set forth in Section 1.3 hereof.

“USA PATRIOT Act” shall mean the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as
the same has been, or shall hereafter be, renewed, extended, amended or replaced.

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

“Website Posting” shall mean any site on the World Wide Web.

“Week” shall mean the time period commencing with the opening of business on a
Wednesday and ending on the end of business the following Tuesday.

1.3. Uniform Commercial Code Terms.

All terms used herein and defined in the Uniform Commercial Code as adopted in the State of
New York from time to time (the “Uniform Commercial Code”) shall have the meaning given
therein unless otherwise defined herein. Without limiting the foregoing, the terms “accounts”,
“chattel paper”, “instruments”, “general intangibles”, “payment intangibles”, “supporting
obligations”, “securities”, “investment property”, “documents”, “deposit accounts”, “software”,
“letter of credit rights”, “inventory”, “equipment” and “fixtures”, as and when used in the
description of Collateral shall have the meanings given to such terms in Articles 8 or 9 of the
Uniform Commercial Code. To the extent the definition of any category or type of collateral is
expanded by any amendment, modification or revision to the Uniform Commercial Code, such expanded
definition will apply automatically as of the date of such amendment, modification or revision.

 

27

 

1.4. Certain Matters of Construction.

The terms “herein”, “hereof” and “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular section, paragraph or subdivision. All references
herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement. Any pronoun used shall be deemed to
cover all genders. Wherever appropriate in the context, terms used herein in the singular also
include the plural and vice versa. All references to statutes and related regulations shall
include any amendments of same and any successor statutes and regulations. Unless otherwise
provided, all references to any instruments or agreements to which Agent is a party, including
references to any of the Other Documents, shall include any and all modifications or amendments
thereto and any and all extensions or renewals thereof. All references herein to the time of day
shall mean the time in New York, New York. Unless otherwise provided, all financial calculations
shall be performed with Inventory valued on a first-in, first-out basis. Whenever the words
“including” or “include” shall be used, such words shall be understood to mean “including, without
limitation” or “include, without limitation”. A Default or Event of Default shall be deemed to
exist at all times during the period commencing on the date that such Default or Event of Default
occurs to the date on which such Default or Event of Default is waived in writing pursuant to this
Agreement or, in the case of a Default, is cured within any period of cure expressly provided for
in this Agreement; and an Event of Default shall “continue” or be “continuing” until such Event of
Default has been waived in writing by the Required Lenders. Any Lien referred to in this Agreement
or any of the Other Documents as having been created in favor of Agent, any agreement entered into
by Agent pursuant to this Agreement or any of the Other Documents, any payment made by or to or
funds received by Agent pursuant to or as contemplated by this Agreement or any of the Other
Documents, or any act taken or omitted to be taken by Agent, shall, unless otherwise expressly
provided, be created, entered into, made or received, or taken or omitted, for the benefit or
account of Agent and Lenders. Wherever the phrase “to the best of Borrower’s knowledge” or words
of similar import relating to the knowledge or the awareness of Borrower are used in this Agreement
or Other Documents, such phrase shall mean and refer to (i) the actual knowledge of a senior
officer of Borrower or (ii) the knowledge that a senior officer would have obtained if he had
engaged in good faith and diligent performance of his/her duties. All covenants hereunder shall be
given independent effect so that if a particular action or condition is not permitted by any of
such covenants, the fact that it would be permitted by an exception to, or otherwise within the
limitations of, another covenant shall not avoid the occurrence of a Default if such action is
taken or condition exists. In addition, all representations and warranties hereunder shall be
given independent effect so that if a particular representation or warranty proves to be incorrect
or is breached, the fact that another representation or warranty concerning the same or similar
subject matter is correct or is not breached will not affect the incorrectness of a breach of a
representation or warranty hereunder.

 

28

 

ARTICLE II

ADVANCES, PAYMENTS

2.1. Advances.

(a) Amount of Advances

Subject to the terms and conditions set forth in this Agreement including Section 2.1(b), each
Lender, severally and not jointly, will make Advances to Borrower in aggregate amounts not to
exceed the lesser of (x) the Maximum Revolving Advance Amount less the aggregate Maximum Undrawn
Amount of all outstanding Letters of Credit or (y) an amount equal to the sum of:

(i) the Advanced Rate, plus

(ii) the Credit Enhancement Amount, minus

(iii) the aggregate Maximum Undrawn Amount of all outstanding Letters of Credit, minus

(iv) the Restructuring Reserve, minus

(v) the Availability Reserve, minus

(vi) such other reserves as Agent may deem proper and necessary from time to time in
its Permitted Discretion and with prior notice to Borrower.

The amount of Advances set forth above for each Lender shall not exceed such Lender’s Commitment
Percentage.

The Advances shall be evidenced by one or more secured promissory notes (collectively, the
“Revolving Credit Note”) substantially in the form attached hereto as Exhibit 2.1(a).

(b) Discretionary Rights.

The Advance Rate may be increased or decreased by Agent at any time and from time to time in
its Permitted Discretion with ninety (90) days prior notice to Borrower. Borrower consents to any
such increases or decreases and acknowledges that decreasing the Advance Rate or increasing or
imposing reserves may limit or restrict Advances requested by Borrower. The rights of Agent under
this subsection are subject to the provisions of Section 15.2(b).

 

29

 

2.2. Procedure for Advances Borrowing.

(a) Borrower may notify Agent prior to 12:30 p.m. (New York time) on a Business Day of
Borrower’s request to incur, on that day, an Advance hereunder (such notification may be
made in writing, by telephone, by facsimile or other electronic transmission). Should any
amount required to be paid as interest hereunder, or as fees or other charges under this Agreement
or any other agreement with Agent or Lenders, or with respect to any other Obligation, become due,
same shall be deemed a request for a Revolving Advance as of the date such payment is due, in the
amount required to pay in full such interest, fee, charge or Obligation under this Agreement and
such request shall be irrevocable.

(b) Notwithstanding the provisions of subsection (a) above, in the event Borrower desires to
obtain a Eurodollar Rate Loan, Borrower shall give Agent written notice by no later than 12:30 p.m.
on the day which is three (3) Business Days prior to the date such Eurodollar Rate Loan is to be
borrowed, specifying (i) the date of the proposed borrowing (which shall be a Business Day), (ii)
the type of borrowing and the amount on the date of such Advance to be borrowed, which amount shall
be in an aggregate principal amount that is not less than $1,000,000 and at an integral multiples
of $100,000, in excess thereof, and (iii) the duration of the first Interest Period therefor.
Interest Periods for Eurodollar Rate Loans shall be for one, two, three or six months; provided, if
an Interest Period would end on a day that is not a Business Day, it shall end on the next
succeeding Business Day unless such day falls in the next succeeding calendar month in which case
the Interest Period shall end on the next preceding Business Day. No Eurodollar Rate Loan shall be
made available to Borrower during the continuance of a Default or an Event of Default. After
giving effect to each requested Eurodollar Rate Loan, including those which are converted from a
Domestic Rate Loan under Section 2.2(d), there shall not be outstanding more than six (6)
Eurodollar Rate Loans, in the aggregate.

(c) Each Interest Period of a Eurodollar Rate Loan shall commence on the date such Eurodollar
Rate Loan is made and shall end on such date as Borrower may elect as set forth in
subsection (b)(iii) above provided that the exact length of each Interest Period shall be
determined in accordance with the practice of the interbank market for offshore Dollar deposits and
no Interest Period shall end after the last day of the Term.

Borrower shall elect the initial Interest Period applicable to a Eurodollar Rate Loan by its
notice of borrowing given to Agent pursuant to Section 2.2(b) or by its notice of conversion given
to Agent pursuant to Section 2.2(d), as the case may be. Borrower shall elect the duration of each
succeeding Interest Period by giving irrevocable written notice to Agent of such duration not later
than 12:30 p.m. (New York time) on the day which is three (3) Business Days prior to the last day
of the then current Interest Period applicable to such Eurodollar Rate Loan. If Agent does not
receive timely notice of the Interest Period elected by Borrower, Borrower shall be deemed to have
elected to convert to a Domestic Rate Loan subject to Section 2.2(d) hereinbelow.

(d) On the last Business Day of the then current Interest Period applicable to any outstanding
Eurodollar Rate Loan, or on any Business Day with respect to Domestic Rate Loans, Borrower may
convert any such loan into a loan of another type in the same aggregate principal amount provided
that any conversion of a Eurodollar Rate Loan shall be made only on the last Business Day of the
then current Interest Period applicable to such Eurodollar Rate Loan and any conversion to a
Eurodollar Rate Loan may be done if no Event of Default has occurred and is
continuing.

 

30

 

 If Borrower desires to convert a loan, Borrower shall give Agent written notice
by no later than 12:30 p.m. (New York time) (i) on the day which is three (3) Business Days’ prior
to the date on which such conversion is to occur with respect to a conversion from a Domestic Rate
Loan to a Eurodollar Rate Loan, or (ii) on the day which is one (1) Business Day prior to the date
on which such conversion is to occur with respect to a conversion from a Eurodollar Rate Loan to a
Domestic Rate Loan, specifying, in each case, the date of such conversion, the loans to be
converted and if the conversion is from a Domestic Rate Loan to any other type of loan, the
duration of the first Interest Period therefor.

(e) At its option and upon written notice given prior to 12:30 p.m. (New York time) at least
three (3) Business Days’ prior to the date of such prepayment, Borrower may prepay the Eurodollar
Rate Loans in whole at any time or in part from time to time with accrued interest on the principal
being prepaid to the date of such repayment. Borrower shall specify the date of prepayment of
Advances which are Eurodollar Rate Loans and the amount of such prepayment. In the event that any
prepayment of a Eurodollar Rate Loan is required or permitted on a date other than the last
Business Day of the then current Interest Period with respect thereto, Borrower shall indemnify
Agent and Lenders therefor in accordance with Section 2.2(f) hereof.

(f) Borrower shall indemnify Agent and Lenders and hold Agent and Lenders harmless from and
against any and all losses or expenses that Agent and Lenders may sustain or incur as a consequence
of any prepayment, conversion of or any default by Borrower in the payment of the principal of or
interest on any Eurodollar Rate Loan or failure by Borrower to complete a borrowing of, a
prepayment of or conversion of or to a Eurodollar Rate Loan after notice thereof has been given,
including, but not limited to, any interest payable by Agent or Lenders to lenders of funds
obtained by it in order to make or maintain its Eurodollar Rate Loans hereunder. A certificate
(with reasonable detail supporting such information contained therein) as to any additional amounts
payable pursuant to the foregoing sentence submitted by Agent or any Lender to Borrower shall be
conclusive absent manifest error.

(g) Notwithstanding any other provision hereof, if any Applicable Law, treaty, regulation or
directive, or any change therein or in the interpretation or application thereof, shall make it
unlawful for any Lender (for purposes of this subsection (g), the term “Lender” shall include any
Lender and the office or branch where any Lender or any corporation or bank controlling such Lender
makes or maintains any Eurodollar Rate Loans) to make or maintain its Eurodollar Rate Loans, the
obligation of Lenders to make Eurodollar Rate Loans hereunder shall forthwith be cancelled and
Borrower shall, if any affected Eurodollar Rate Loans are then outstanding, promptly upon request
from Agent, either pay all such affected Eurodollar Rate Loans or convert such affected Eurodollar
Rate Loans into loans of another type. If any such payment or conversion of any Eurodollar Rate
Loan is made on a day that is not the last day of the Interest Period applicable to such Eurodollar
Rate Loan, Borrower shall pay Agent, upon Agent’s request, such amount or amounts as may be
necessary to compensate Lenders for any loss or expense sustained or incurred by Lenders in respect
of such Eurodollar Rate Loan as a result of such payment or conversion, including (but not limited
to) any interest or other amounts payable by Lenders to lenders of funds obtained by Lenders in
order to make or maintain such Eurodollar Rate Loan. A certificate as to any additional amounts
payable pursuant to the foregoing sentence submitted by Lenders to Borrower shall be conclusive
absent manifest error.

 

31

 

(h) The Borrower’s obligations and indemnifications under this Section 2.2 shall survive the
termination of this Agreement.

2.3. Disbursement of Advance Proceeds.

All Advances shall be disbursed from whichever office or other place Agent may designate from
time to time and, together with any and all other Obligations of Borrower to Agent or Lenders,
shall be charged to Borrower’s Account on Agent’s books. During the Term, Borrower may use the
Advances by borrowing, prepaying and reborrowing, all in accordance with the terms and conditions
hereof. The proceeds of each Revolving Advance requested by Borrower or deemed to have been
requested by Borrower under Section 2.2(a) hereof shall, with respect to requested Advances to the
extent Lenders make such Advances, be made available to Borrower on the day so requested by way of
credit to Borrower’s operating account at PNC, or such other bank as Borrower may designate
following notification to Agent, in immediately available federal funds or other immediately
available funds or, with respect to Advances deemed to have been requested by Borrower, be
disbursed to Agent to be applied to the outstanding Obligations giving rise to such deemed request.

2.4. Repayment of Advances.

(a) The Advances shall be due and payable in full on the last day of the Term subject to
earlier prepayment as herein provided.

(b) Borrower recognizes that the amounts evidenced by checks, notes, drafts or any other items
of payment relating to and/or proceeds of Collateral may not be collectible by Agent on the date
received. Subject to Section 2.4(c), all items of payment shall be deemed applied by Agent against
outstanding Obligations on the Business Day Agent receives such payment. With respect to payments
received by Agent in any form (other than payments via wire or electronic depository check or other
immediately available funds) the applicable Interest Rate shall be charged until such payment
constitutes good funds in Agent’s account. Agent is not, however, required to credit Borrower’s
Account for the amount of any item of payment which is unsatisfactory to Agent and Agent may charge
Borrower’s Account for the amount of any item of payment which is returned to Agent unpaid.

(c) All payments of principal, interest and other amounts payable hereunder, or under any of
the Other Documents shall be made to Agent at the Payment Office not later than 1:00 P.M. (New
York time) on the due date therefor in lawful money of the United States of America in federal
funds or other funds immediately available to Agent. Agent shall have the right to effectuate
payment on any and all Obligations due and owing hereunder by charging Borrower’s Account or by
making Advances as provided in Section 2.2 hereof.

(d) Borrower shall pay the Obligations when due, without any deduction for any setoff or
counterclaim.

 

32

 

2.5. Repayment of Excess Advances.

The aggregate balance of Advances outstanding at any time in excess of the maximum amount of
Advances permitted hereunder shall be immediately due and payable without the necessity of any
demand, at the Payment Office, whether or not a Default or Event of Default has occurred.

2.6. Statement of Account.

Agent shall maintain, in accordance with its customary procedures, a loan account
(“Borrower’s Account”) in the name of Borrower in which shall be recorded the date and
amount of each Advance made by Agent and the date and amount of each payment in respect thereof;
provided, however, the failure by Agent to record the date and amount of any Advance shall not
adversely affect Agent or any Lender. Each month, Agent shall send to Borrower a statement showing
the accounting for the Advances made, payments made or credited in respect thereof, and other
transactions between Agent and/or the Lenders and Borrower, during such month. The monthly
statements shall be deemed correct and binding upon Borrower in the absence of manifest error and
shall constitute an account stated between Lenders and Borrower unless Agent receives a written
statement of Borrower’s specific exceptions thereto within thirty (30) days after such statement is
received by Borrower. The records of Agent with respect to the Borrower’s Account shall be
conclusive evidence absent manifest error of the amounts of Advances and other charges thereto and
of payments applicable thereto.

2.7. Letters of Credit.

Subject to the terms and conditions hereof, Agent shall issue or cause the issuance of Letters
of Credit for the account of Borrower; provided, however, that Agent will not be required to issue
or cause to be issued any Letters of Credit to the extent that the issuance thereof would then
cause the sum of (i) the outstanding Advances plus (ii) the Maximum Undrawn Amount of all
outstanding Letters of Credit to exceed the lesser of (x) the Maximum Revolving Advance Amount or
(y) the Formula Amount. The Maximum Undrawn Amount of all outstanding Letters of Credit shall not
exceed in the aggregate at any time the Letter of Credit Sublimit. All disbursements or payments
related to Letters of Credit shall be deemed to be Domestic Rate Loans consisting of Advances and
shall bear interest at the Interest Rate for Domestic Rate Loans.

2.8. Issuance of Letters of Credit.

(a) Borrower may request Agent to issue or cause the issuance of a Letter of Credit by
delivering to Agent, at the Payment Office, prior to 2:00 p.m. (New York time), at least three (3)
Business Days’ prior to the proposed date of issuance, Agent’s form of Letter of Credit Application
(the “Letter of Credit Application”) completed to the reasonable satisfaction of Agent;
and, such other certificates, documents and other papers and information as Agent may reasonably
request. Borrower also has the right to give instructions and make agreements with respect to any
application, any applicable letter of credit and security agreement, any applicable letter of
credit reimbursement agreement and/or any other applicable agreement, any letter of
credit and the disposition of documents, disposition of any unutilized funds, and to agree
with Agent upon any amendment, extension or renewal of any Letter of Credit.

 

33

 

(b) Each Letter of Credit shall, among other things, (i) provide for the payment of sight
drafts, other written demands for payment, or acceptances of usance drafts when presented for honor
thereunder in accordance with the terms thereof and when accompanied by the documents described
therein and (ii) have an expiry date not later than twelve (12) months after such Letter of
Credit’s date of issuance and in no event later than the last day of the Term; provided, however, a
Letter of Credit may provide for automatic extensions of its expiration date for one (1) or more
year periods, so long as the issuer thereof has the right to terminate the Letter of Credit at the
end of each one (1) year period and no extension period extends past the Term. Each standby Letter
of Credit shall be subject either to the Uniform Customs and Practice for Documentary Credits as
most recently published by the International Chamber of Commerce at the time a Letter of Credit is
issued (“UCP”) or the International Standby Practices (ISP98-International Chamber of Commerce
Publication Number 590) (“ISP98 Rules”), as determined by Agent, and each trade Letter of Credit
shall be subject to UCP.

(c) Agent shall notify Lenders of the request by Borrower for a Letter of Credit hereunder.

2.9. Requirements For Issuance of Letters of Credit.

Borrower shall authorize and direct any Issuer to name Borrower as the “Applicant” or “Account
Party” of each Letter of Credit. If Agent is not the Issuer of any Letter of Credit, Borrower
shall authorize and direct the Issuer to deliver to Agent all instruments, documents, and other
writings and property received by the Issuer pursuant to the Letter of Credit and to accept and
rely upon Agent’s instructions and agreements with respect to all matters arising in connection
with the Letter of Credit.

2.10. Disbursements, Reimbursement.

(a) Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to,
and hereby irrevocably and unconditionally agrees to, purchase from Agent a participation in such
Letter of Credit and each drawing thereunder in an amount equal to such Lender’s Commitment
Percentage of the maximum face amount of such Letter of Credit and the amount of such drawing,
respectively.

(b) In the event of any request for a drawing under a Letter of Credit by the beneficiary or
transferee thereof, Agent will promptly notify Borrower. Provided that it shall have received such
notice, Borrower shall reimburse (such obligation to reimburse Agent shall sometimes be referred to
as a “Reimbursement Obligation”) Agent prior to 2:00 p.m., New York time, on the following
Business Day that an amount is paid by Agent under any Letter of Credit (each such date, a
“Drawing Date”) in an amount equal to the amount so paid by Agent. In the event Borrower
fails to reimburse Agent for the full amount of any drawing under any Letter of Credit by 2:00
p.m., New York time, on the Drawing Date, Agent will promptly notify each Lender thereof, and
Borrower shall be deemed to have requested that a Domestic Rate Loan be
made by the Lenders to be disbursed on the Drawing Date under such Letter of Credit, subject
to Section 8.2 hereof. Any notice given by Agent pursuant to this Section 2.10(b) may be oral if
immediately confirmed in writing; provided that the lack of such an immediate confirmation shall
not affect the conclusiveness or binding effect of such notice.

 

34

 

(c) Each Lender shall upon any notice pursuant to Section 2.10(b) make available to Agent an
amount in immediately available funds equal to its Commitment Percentage of the amount of the
drawing, whereupon the participating Lenders shall (subject to Section 2.10(d)) each be deemed to
have made a Domestic Rate Loan to Borrower in that amount. If any Lender so notified fails to make
available to Agent the amount of such Lender’s Commitment Percentage of such amount by no later
than 2:00 p.m., New York time on the Drawing Date, then interest shall accrue on such Lender’s
obligation to make such payment, from the Drawing Date to the date on which such Lender makes such
payment (i) at a rate per annum equal to the Federal Funds Rate during the first three days
following the Drawing Date and (ii) at a rate per annum equal to the rate applicable to Domestic
Rate Loans on and after the fourth day following the Drawing Date. Agent will promptly give notice
of the occurrence of the Drawing Date, but failure of Agent to give any such notice on the Drawing
Date or in sufficient time to enable any Lender to effect such payment on such date shall not
relieve such Lender from its obligation under this Section 2.10(c), provided that such Lender shall
not be obligated to pay interest as provided in Section 2.10(c) (i) and (ii) until and commencing
from the date of receipt of notice from Agent of a drawing.

(d) With respect to any unreimbursed drawing that is not converted into a Domestic Rate Loan
to Borrower in whole or in part as contemplated by Section 2.10(b), because of Borrower’s failure
to satisfy the conditions set forth in Section 8.2 (other than any notice requirements) or for any
other reason, Borrower shall be deemed to have incurred from Agent a borrowing (each a “Letter
of Credit Borrowing”) in the amount of such drawing. Such Letter of Credit Borrowing shall be
due and payable on demand (together with interest) and shall bear interest at the rate per annum
applicable to a Domestic Rate Loan. Each Lender’s payment to Agent pursuant to Section 2.10(c)
shall be deemed to be a payment in respect of its participation in such Letter of Credit Borrowing
and shall constitute a “Participation Advance” from such Lender in satisfaction of its
Participation Commitment under this Section 2.10.

Each Lender’s Participation Commitment shall continue until the last to occur of any of the
following events: (x) Agent ceases to be obligated to issue or cause to be issued Letters of
Credit hereunder; (y) no Letter of Credit issued or created hereunder remains outstanding and
uncancelled and (z) all Persons (other than the Borrower) have been fully reimbursed for all
payments made under or relating to Letters of Credit.

2.11. Repayment of Participation Advances.

(a) Upon (and only upon) receipt by Agent for its account of immediately available funds from
Borrower (i) in reimbursement of any payment made by the Agent under the Letter of Credit with
respect to which any Lender has made a Participation Advance to Agent, or (ii) in payment of
interest on such a payment made by Agent under such a Letter of Credit, Agent will pay to each
Lender, in the same funds as those received by Agent, the amount of such Lender’s
Commitment Percentage of such funds, except Agent shall retain the amount of the Commitment
Percentage of such funds of any Lender that did not make a Participation Advance in respect of such
payment by Agent.

 

35

 

(b) If Agent is required at any time to return to Borrower, or to a trustee, receiver,
liquidator, custodian, or any official in any insolvency proceeding, any portion of the payments
made by Borrower to Agent pursuant to Section 2.11(a) in reimbursement of a payment made under the
Letter of Credit or interest or fee thereon, each Lender shall, on demand of Agent, forthwith
return to Agent the amount of its Commitment Percentage of any amounts so returned by Agent plus
interest at the Federal Funds Effective Rate.

2.12. Documentation.

Borrower agrees to be bound by the terms of the Letter of Credit Application and by Agent’s
interpretations of any Letter of Credit issued for Borrower’s account and by Agent’s written
regulations and customary practices relating to letters of credit, though Agent’s interpretations
may be different from Borrower’s own. In the event of a conflict between the Letter of Credit
Application and this Agreement, this Agreement shall govern. It is understood and agreed that,
except in the case of gross negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final non-appealable judgment), Agent shall not be liable for any error,
negligence and/or mistakes, whether of omission or commission, in following Borrower’s instructions
or those contained in the Letters of Credit or any modifications, amendments or supplements
thereto.

2.13. Determination to Honor Drawing Request.

In determining whether to honor any request for drawing under any Letter of Credit by the
beneficiary thereof, Agent shall be responsible only to determine that the documents and
certificates required to be delivered under such Letter of Credit have been delivered and that they
comply on their face with the requirements of such Letter of Credit and that any other drawing
condition appearing on the face of such Letter of Credit has been satisfied in the manner so set
forth.

2.14. Nature of Participation and Reimbursement Obligations.

Each Lender’s obligation in accordance with this Agreement to make the Advances or
Participation Advances or fund a Letter of Credit Borrowing as a result of a drawing under a Letter
of Credit, and the obligations of Borrower to reimburse Agent upon a draw under a Letter of Credit,
shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Section 2.14 under all circumstances, including the following circumstances:

(i) any set-off, counterclaim, recoupment, defense or other right which such Lender may
have against Agent, Borrower or any other Person for any reason whatsoever;

 

36

 

(ii) the failure of Borrower or any other Person to comply, in connection with a Letter
of Credit Borrowing, with the conditions set forth in this Agreement for the making of an
Advance, it being acknowledged that such conditions are not required for the making of a
Letter of Credit Borrowing or the obligation of the Lenders to make Participation Advances
under Section 2.10;

(iii) any lack of validity or enforceability of any Letter of Credit;

(iv) any claim of breach of warranty that might be made by Borrower or any Lender
against the beneficiary of a Letter of Credit, or the existence of any claim, set-off,
recoupment, counterclaim, crossclaim, defense or other right which Borrower or any Lender
may have at any time against a beneficiary, any successor beneficiary or any transferee of
any Letter of Credit or the proceeds thereof (or any Persons for whom any such transferee
may be acting), Agent or any Lender or any other Person, whether in connection with this
Agreement, the transactions contemplated herein or any unrelated transaction (including any
underlying transaction between Borrower or any Subsidiaries of Borrower and the beneficiary
for which any Letter of Credit was procured);

(v) the lack of power or authority of any signer of (or any defect in or forgery of any
signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy,
enforceability or genuineness of any draft, demand, instrument, certificate or other
document presented under or in connection with any Letter of Credit, or any fraud or alleged
fraud in connection with any Letter of Credit, or the transport of any property or
provisions of services relating to a Letter of Credit, in each case even if Agent or any of
Agent’s Affiliates has been notified thereof;

(vi) payment by Agent under any Letter of Credit against presentation of a demand,
draft or certificate or other document which does not comply with the terms of such Letter
of Credit;

(vii) the solvency of, or any acts or omissions by, any beneficiary of any Letter of
Credit, or any other Person having a role in any transaction or obligation relating to a
Letter of Credit, or the existence, nature, quality, quantity, condition, value or other
characteristic of any property or services relating to a Letter of Credit;

(viii) any failure by the Agent or any of Agent’s Affiliates to issue any Letter of
Credit in the form requested by Borrower, unless the Agent has received written notice from
Borrower of such failure within three (3) Business Days after the Agent shall have furnished
Borrower a copy of such Letter of Credit and such error is material and no drawing has been
made thereon prior to receipt of such notice;

(ix) any Material Adverse Effect on Borrower or any Guarantor;

(x) any breach of this Agreement or any Other Document by any party thereto;

 

37

 

(xi) the occurrence or continuance of an insolvency proceeding with respect to Borrower
or any Guarantor;

(xii) the fact that a Default or Event of Default shall have occurred and be
continuing;

(xiii) the fact that the Term shall have expired or this Agreement or the Obligations
hereunder shall have been terminated; and

(xiv) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing.

2.15. Indemnity.

In addition to amounts payable as provided in Section 15.5, the Borrower hereby agrees to
protect, indemnify, pay and save harmless Agent and any of Agent’s Affiliates that have issued a
Letter of Credit from and against any and all claims, demands, liabilities, damages, taxes,
penalties, interest, judgments, losses, costs, charges and expenses (including reasonable fees,
expenses and disbursements of counsel and allocated costs of internal counsel) which the Agent or
any of Agent’s Affiliates may incur or be subject to as a consequence, direct or indirect, of the
issuance of any Letter of Credit, other than as a result of (A) the gross negligence or willful
misconduct of the Agent as determined by a final and non-appealable judgment of a court of
competent jurisdiction or (b) the wrongful dishonor by the Agent or any of Agent’s Affiliates of a
proper demand for payment made under any Letter of Credit, except if such dishonor resulted from
any act or omission, whether rightful or wrongful, of any present or future de jure or de facto
Governmental Body (all such acts or omissions herein called “Governmental Acts”). The
foregoing obligations and the indemnifications hereunder shall survive the termination of this
Agreement.

2.16. Liability for Acts and Omissions.

As between Borrower and Agent and Lenders, Borrower assumes all risks of the acts and
omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters
of Credit. In furtherance and not in limitation of the respective foregoing, Agent shall not be
responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for an issuance of any such
Letter of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged (even if Agent shall have been notified thereof);
(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii)
the failure of the beneficiary of any such Letter of Credit, or any other party to which such
Letter of Credit may be transferred, to comply fully with any conditions required in order to draw
upon such Letter of Credit or any other claim of Borrower against any beneficiary of such Letter of
Credit, or any such transferee, or any dispute between or among Borrower and any beneficiary of any
Letter of Credit or any such transferee;

 

38

 

(iv) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;
(v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under any such Letter of Credit or of
the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of
the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from
causes beyond the control of Agent, including any governmental acts, and none of the above shall
affect or impair, or prevent the vesting of, any of Agent’s rights or powers hereunder. Nothing in
the preceding sentence shall relieve Agent from liability for Agent’s gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment)
in connection with actions or omissions described in such clauses (i) through (viii) of such
sentence. In no event shall Agent or Agent’s Affiliates be liable to the Borrower for any
indirect, consequential, incidental, punitive, exemplary or special damages or expenses (including
without limitation attorneys’ fees), or for any damages resulting from any change in the value of
any property relating to a Letter of Credit.

Without limiting the generality of the foregoing, Agent and each of its Affiliates (i) may
rely on any oral or other communication believed in good faith by Agent or such Affiliate to have
been authorized or given by or on behalf of the applicant for a Letter of Credit, (ii) may honor
any presentation if the documents presented appear on their face substantially to comply with the
terms and conditions of the relevant Letter of Credit; (iii) may honor a previously dishonored
presentation under a Letter of Credit, whether such dishonor was pursuant to a court order, to
settle or compromise any claim of wrongful dishonor, or otherwise, and shall be entitled to
reimbursement to the same extent as if such presentation had initially been honored, together with
any interest paid by Agent or its Affiliates; (iv) may honor any drawing that is payable upon
presentation of a statement advising negotiation or payment, upon receipt of such statement (even
if such statement indicates that a draft or other document is being delivered separately), and
shall not be liable for any failure of any such draft or other document to arrive, or to conform in
any way with the relevant Letter of Credit; (v) may pay any paying or negotiating bank claiming
that it rightfully honored under the laws or practices of the place where such bank is located; and
(vi) may settle or adjust any claim or demand made on Agent or its Affiliate in any way related to
any order issued at the applicant’s request to an air carrier, a letter of guarantee or of
indemnity issued to a carrier or any similar document (each an “Order”) and honor any
drawing in connection with any Letter of Credit that is the subject of such Order, notwithstanding
that any drafts or other documents presented in connection with such Letter of Credit fail to
conform in any way with such Letter of Credit.

In furtherance and extension and not in limitation of the specific provisions set forth above,
any action taken or omitted by Agent under or in connection with the Letters of Credit issued by it
or any documents and certificates delivered thereunder, if taken or omitted in good faith and
without gross negligence (as determined by a court of competent jurisdiction in a final
non-appealable judgment), shall not put Agent under any resulting liability to Borrower or any
Lender.

 

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2.17. Additional Payments.

Any sums expended by Agent or any Lender due to Borrower’s failure to perform or comply with
its obligations under this Agreement or any Other Document including Borrower’s obligations under
Sections 4.2, 4.4, 4.12, 4.13, 4.14 and 6.1 hereof, may be charged to Borrower’s Account as an
Advance and added to the Obligations.

2.18. Manner of Borrowing and Payment.

(a) Each borrowing of Advances shall be advanced according to the applicable Commitment
Percentages of Lenders.

(b) Each payment (including each prepayment) by Borrower on account of the principal of and
interest on the Advances, shall be applied to the Advances pro rata according to the applicable
Commitment Percentages of Lenders. Except as expressly provided herein, all payments (including
prepayments) to be made by Borrower on account of principal, interest and fees shall be made
without set off or counterclaim and shall be made to Agent on behalf of the Lenders to the Payment
Office, in each case on or prior to 1:00 P.M., New York time, in Dollars and in immediately
available funds.

(c) (i) Notwithstanding anything to the contrary contained in Sections 2.18(a) and (b) hereof,
commencing with the first Business Day following the Closing Date, each borrowing of Advances shall
be advanced by Agent and each payment by Borrower on account of Advances shall be applied first to
those Advances advanced by Agent. On or before 1:00 P.M., New York time, on each Settlement Date
commencing with the first Settlement Date following the Closing Date, Agent and Lenders shall make
certain payments as follows: (I) if the aggregate amount of new Advances made by Agent during the
preceding Week (if any) exceeds the aggregate amount of repayments applied to outstanding Advances
during such preceding Week, then each Lender shall provide Agent with funds in an amount equal to
its applicable Commitment Percentage of the difference between (w) such Advances and (x) such
repayments and (II) if the aggregate amount of repayments applied to outstanding Advances during
such Week exceeds the aggregate amount of new Advances made during such Week, then Agent shall
provide each Lender with funds in an amount equal to its applicable Commitment Percentage of the
difference between (y) such repayments and (z) such Advances.

(ii) Each Lender shall be entitled to earn interest at the applicable Interest Rate on
outstanding Advances which it has funded.

(iii) Promptly following each Settlement Date, Agent shall submit to each Lender a
certificate with respect to payments received and Advances made during the Week immediately
preceding such Settlement Date. Such certificate of Agent shall be conclusive in the
absence of manifest error.

 

40

 

(d) If any Lender or Participant (a “Benefited Lender”) shall at any time receive any
payment of all or part of its Advances, or interest thereon, or receive any Collateral in respect
thereof (whether voluntarily or involuntarily or by set-off) in a greater proportion than any such
payment to and Collateral received by any other Lender, if any, in respect of such other
Lender’s Advances, or interest thereon, and such greater proportionate payment or receipt of
Collateral is not expressly permitted hereunder, such Benefited Lender shall purchase for cash from
the other Lenders a participation in such portion of each such other Lender’s Advances, or shall
provide such other Lender with the benefits of any such Collateral, or the proceeds thereof, as
shall be necessary to cause such Benefited Lender to share the excess payment or benefits of such
Collateral or proceeds ratably with each of the other Lenders; provided, however, that if all or
any portion of such excess payment or benefits is thereafter recovered from such Benefited Lender,
such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of
such recovery, but without interest. Each Lender so purchasing a portion of another Lender’s
Advances may exercise all rights of payment (including rights of set-off) with respect to such
portion as fully as if such Lender were the direct holder of such portion.

(e) Unless Agent shall have been notified by telephone, confirmed in writing, by any Lender
that such Lender will not make the amount which would constitute its applicable Commitment
Percentage of the Advances available to Agent, Agent may (but shall not be obligated to) assume
that such Lender shall make such amount available to Agent on the next Settlement Date and, in
reliance upon such assumption, make available to Borrower a corresponding amount. Agent will
promptly notify Borrower of its receipt of any such notice from a Lender. If such amount is made
available to Agent on a date after such next Settlement Date, such Lender shall pay to Agent on
demand an amount equal to the product of (i) the daily average Federal Funds Rate (computed on the
basis of a year of 360 days) during such period as quoted by Agent, times (ii) such amount, times
(iii) the number of days from and including such Settlement Date to the date on which such amount
becomes immediately available to Agent. A certificate of Agent submitted to any Lender with
respect to any amounts owing under this paragraph (e) shall be conclusive, in the absence of
manifest error. If such amount is not in fact made available to Agent by such Lender within
three (3) Business Days after such Settlement Date, Agent shall be entitled to recover such an
amount, with interest thereon at the rate per annum then applicable to such Advances hereunder, on
demand from Borrower; provided, however, that Agent’s right to such recovery shall not prejudice or
otherwise adversely affect Borrower’s rights (if any) against such Lender.

2.19. Mandatory Prepayments.

(a) Subject to Section 4.3 hereof, when Borrower sells or otherwise disposes of any Collateral
other than Inventory in the Ordinary Course of Business, Borrower shall repay the Advances in an
amount equal to the net proceeds of such sale (i.e., gross proceeds less the reasonable costs of
such sales or other dispositions), such repayments to be made promptly but in no event more than
one (1) Business Day following receipt of such net proceeds, and until the date of payment, such
proceeds shall be held in trust for Agent; provided, that so long as (i) no Event of Default has
occurred and is continuing, (ii) Borrower shall have given Agent prior written notice of Borrower’s
intention to apply such monies to the costs of replacement of the properties or assets that are the
subject of such sale or disposition or the cost of purchase or construction of other assets useful
in the business of Borrower or its Subsidiaries, (iii) the monies are held in a deposit account in
which Agent has a perfected first-priority security interest, and (iv) Borrower or its
Subsidiaries, as applicable, complete such replacement, purchase, or
construction within one hundred twenty (120) days after the initial receipt of such monies,
Borrower and its Subsidiaries shall have the option to apply such monies to the costs of
replacement of the assets that are the subject of such sale or disposition unless and to the extent
that such applicable period shall have expired without such replacement, purchase or construction
being made or completed. The foregoing shall not be deemed to be implied consent to any such sale
otherwise prohibited by the terms and conditions hereof. Such repayments shall be applied to the
Advances in such order as Agent may determine, subject to Borrower’s ability to reborrow Advances
in accordance with the terms hereof.

 

41

 

2.20 Application of Payments Prior to an Event of Default.

Agent agrees that any repayment of the Advances prior to an Event of Default shall be applied
first to Advances that are in excess of the Advance Rate.

2.21. Reduction of Maximum Revolving Advance Amount.

Borrower may from time to time permanently reduce the aggregate Maximum Revolving Advance
Amount in part (in minimum aggregate amounts of $1,000,000 (or, if less, the full remaining amount
of the Maximum Revolving Advance Amount)) upon five (5) Business Days’ prior written notice from
Borrower to the Agent; provided, however, no such reduction shall be made which would reduce the
Maximum Revolving Advance Amount to an amount less than the aggregate principal amount of
Obligations outstanding under this Agreement or under the Other Documents. The Lenders Commitment
Percentage of Advances shall automatically terminate on the last day of the Term. The Maximum
Revolving Advance Amounts of each Lender shall automatically terminate on the last day of the Term.
The Agent shall promptly notify each of the Lenders of receipt by the Agent of any notice from
Borrower pursuant to this Section 2.21.

2.22. Use of Proceeds.

(a) Borrower shall apply the proceeds of Advances to (i) repay existing indebtedness of the
Borrower, (ii) pay fees and expenses relating to this transaction, (iii) provide for its working
capital needs and reimburse drawings under Letters of Credit, (iv) finance Capital Expenditures,
and (v) for other general corporate purposes of Borrower.

(b) Without limiting the generality of Section 2.22(a) above, neither the Borrower, the
Guarantor nor any other Person which may in the future become party to this Agreement or the Other
Documents as Borrower, intends to use nor shall they use any portion of the proceeds of the
Advances, directly or indirectly, for any purpose in violation of the Trading with the Enemy Act.

2.23. Defaulting Lender.

(a) Notwithstanding anything to the contrary contained herein, in the event any Lender (x) has
refused (which refusal constitutes a breach by such Lender of its obligations under this Agreement)
to make available its portion of any Advance or (y) notifies either Agent or Borrower that it does
not intend to make available its portion of any Advance (if the actual
refusal would constitute a breach by such Lender of its obligations under this Agreement)
(each, a “Lender Default”), all rights and obligations hereunder of such Lender (a
“Defaulting Lender”) as to which a Lender Default is in effect and of the other parties
hereto shall be modified to the extent of the express provisions of this Section 2.23 while such
Lender Default remains in effect.

 

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(b) Advances shall be incurred pro rata from Lenders (the “Non-Defaulting Lenders”)
which are not Defaulting Lenders based on their respective Commitment Percentages, and no
Commitment Percentage of any Lender or any pro rata share of any Advances required to be advanced
by any Lender shall be increased as a result of such Lender Default. Amounts received in respect
of principal of any type of Advances shall be applied to reduce the applicable Advances of each
Lender pro rata based on the aggregate of the outstanding Advances of that type of all Lenders at
the time of such application; provided, that, such amount shall not be applied to any Advances of a
Defaulting Lender at any time when, and to the extent that, the aggregate amount of Advances of any
Non-Defaulting Lender exceeds such Non-Defaulting Lender’s Commitment Percentage of all Advances
then outstanding.

(c) A Defaulting Lender shall not be entitled to give instructions to Agent or to approve,
disapprove, consent to or vote on any matters relating to this Agreement and the Other Documents.
All amendments, waivers and other modifications of this Agreement and the Other Documents may be
made without regard to a Defaulting Lender and, for purposes of the definition of “Required
Lenders”, a Defaulting Lender shall be deemed not to be a Lender and not to have Advances
outstanding. Notwithstanding the foregoing, any Defaulting Lenders shall be entitled to vote on
any matter increasing such Defaulting Lender’s Commitment Percentage or maximum dollar commitment.

(d) Other than as expressly set forth in this Section 2.23, the rights and obligations of a
Defaulting Lender (including the obligation to indemnify Agent) and the other parties hereto shall
remain unchanged. Nothing in this Section 2.23 shall be deemed to release any Defaulting Lender
from its obligations under this Agreement and the Other Documents, shall alter such obligations,
shall operate as a waiver of any default by such Defaulting Lender hereunder, or shall prejudice
any rights which Borrower, Agent or any Lender may have against any Defaulting Lender as a result
of any default by such Defaulting Lender hereunder.

(e) In the event a Defaulting Lender retroactively cures to the satisfaction of Agent the
breach which caused a Lender to become a Defaulting Lender, such Defaulting Lender shall no longer
be a Defaulting Lender and shall be treated as a Lender under this Agreement.

2.24. Removal of Lenders.

Borrower shall be permitted to replace with a replacement financial institution (i) any Lender
that requests reimbursement for amounts owing or payments of additional amounts pursuant to
Section 3.7 or 3.10; (ii) any Defaulting Lender; or (iii) any Lender (other than PNC) that fails to
consent to any proposed amendment, modification, termination, waiver or consent with respect to any
provision hereof or of any Other Document that requires the unanimous approval of all of the
Lenders, the approval of all of the Lenders affected thereby or the approval of a class of Lenders,
in each case in accordance with the terms of Section 15.2, so long as the
consent of the Required Lenders shall have been obtained with respect to such amendment,
modification, termination, waiver or consent;

 

43

 

provided that (A) such replacement does not
conflict with any applicable law, treaty, rule or regulation or determination of an arbitrator or a
court or other Governmental Body, (B) except with respect to clause (iii) above, no Event of
Default shall have occurred and be continuing at the time of such replacement, (C) the replacement
financial institution shall purchase, at par, all Advances and other amounts owing to such replaced
Lender on or prior to the date of replacement, (D) with respect to clause (iii) above, the
replacement financial institution shall approve the proposed amendment, modification, termination,
waiver or consent, (E)  Borrower shall be liable to such replaced Lender under Section 2.2 and 2.4
if any Eurodollar Rate Loan owing to such replaced Lender shall be purchased other than on the last
day of the Interest Period relating thereto, (F) the replaced Lender shall be obligated to make
such replacement in accordance with the provisions of Section 15.3(c) (provided that Borrower shall
be obligated to pay the registration and processing fee referred to therein), (G) until such time
as such replacement shall be consummated, Borrower shall pay to the replaced Lender all additional
amounts (if any) required pursuant to Sections 3.7 or 3.10, as the case may be, (H) in the case of
clause (iii) above, Borrower provides at least three (3) Business Days’ prior notice to such
replaced Lender, and (I) any such replacement shall not be deemed to be a waiver of any rights that
Borrower, Agent or any other Lender shall have against the replaced Lender. In the event any
replaced Lender fails to execute the agreements required under Section 15.3 in connection with an
assignment pursuant to this Section 2.24, Borrower may, upon two (2) Business Days’ prior notice to
such replaced Lender, execute such agreements on behalf of such replaced Lender. A Lender shall
not be required to be replaced if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling Borrower to require such replacement cease to apply.

ARTICLE III

INTEREST AND FEES

3.1. Interest.

Interest on Advances shall be payable in arrears on the first day of each month with respect
to Domestic Rate Loans and, with respect to Eurodollar Rate Loans, at the end of each Interest
Period or, for Eurodollar Rate Loans with an Interest Period in excess of three months, at the
earlier of (a) each three months from the commencement of such Eurodollar Rate Loan or (b) the end
of the Interest Period. Interest charges shall be computed on the actual principal amount of
Advances outstanding during the month at a rate per annum equal to with respect to Advances, the
applicable Interest Rate. Whenever, subsequent to the date of this Agreement, the Alternate Base
Rate is increased or decreased, the Interest Rate for Domestic Rate Loans shall be similarly
changed without notice or demand of any kind by an amount equal to the amount of such change in the
Alternate Base Rate during the time such change or changes remain in effect. The Eurodollar Rate
shall be adjusted with respect to Eurodollar Rate Loans without notice or demand of any kind on the
effective date of any change in the Reserve Percentage as of such effective date. Upon and after
the occurrence of an Event of Default, and during the continuation thereof, at the option of Agent
or at the direction of Required Lenders, the Obligations shall bear
interest at the applicable Interest Rate plus two (2%) percent per annum from the date
demanded (the “Default Rate”).

 

44

 

3.2. Letter of Credit Fees.

(a) Borrower shall pay (x) to Agent, for the ratable benefit of Lenders, fees for each Letter
of Credit for the period from and excluding the date of issuance of same to and including the date
of expiration or termination, equal to the average daily face amount of each outstanding Letter of
Credit multiplied by two percent (2.00 %) per annum, such fees to be calculated on the basis of a
360-day year for the actual number of days elapsed and to be payable quarterly in arrears on the
first day of each fiscal quarter and on the last day of the Term, and (y) to the Issuer, a fronting
fee of one quarter of one percent (0.25%) per annum, together with any and all administrative,
issuance, amendment, payment and negotiation charges with respect to Letters of Credit and all fees
and expenses as agreed upon by the Issuer and the Borrower in connection with any Letter of Credit,
including in connection with the opening, amendment or renewal of any such Letter of Credit and any
acceptances created thereunder and shall reimburse Agent for any and all fees and expenses, if any,
paid by Agent to the Issuer (all of the foregoing fees, the “Letter of Credit Fees”). All
such charges shall be deemed earned in full on the date when the same are due and payable hereunder
and shall not be subject to rebate or pro-ration upon the termination of this Agreement for any
reason. Any such charge in effect at the time of a particular transaction shall be the charge for
that transaction, notwithstanding any subsequent change in the Issuer’s prevailing charges for that
type of transaction. All Letter of Credit Fees payable hereunder shall be deemed earned in full on
the date when the same are due and payable hereunder and shall not be subject to rebate or
pro-ration upon the termination of this Agreement for any reason. Any Letters of Credit which the
Agent agrees to allow to remain outstanding after the termination of this Agreement will be cash
collateralized in an amount equal to one hundred and five percent (105%) of the amount thereof in
the manner described above.

After an Event of Default, and on demand of Agent, Borrower will cause cash to be deposited
and maintained in an account with Agent, as cash collateral, in an amount equal to one hundred and
five percent (105%) of the Maximum Undrawn Amount of all outstanding Letters of Credit, and
Borrower hereby irrevocably authorizes Agent, in its discretion, on Borrower’s behalf and in
Borrower’s name, to open such an account and to make and maintain deposits therein, or in an
account opened by Borrower, in the amounts required to be made by Borrower, out of the proceeds of
Receivables or other Collateral or out of any other funds of Borrower coming into any Lender’s
possession at any time. Agent will invest such cash collateral (less applicable reserves) in such
short-term money-market items as to which Agent and Borrower mutually agree and the net return on
such investments shall be credited to such account and constitute additional cash collateral.
Borrower may not withdraw amounts credited to any such account except upon the occurrence of all of
the following: (x) payment and performance in full of all Obligations, (y) the expiration of all
Letters of Credit and (z) the termination of this Agreement.

 

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3.3. Facility Fee.

Borrower shall pay to Agent a fee for the ratable benefit of Lenders in an amount equal to
one-quarter of one percent (0.25%) per annum multiplied by the amount by which the Maximum
Revolving Advance Amount exceeds the average daily unpaid balance of the Advances plus the
aggregate amount of any outstanding Letters of Credit that are available to be drawn during each
calendar quarter. Such fee shall be payable to Agent in arrears on the first day of each calendar
quarter with respect to the previous calendar quarter.

3.4. Fee Letter.

Borrower shall pay the amounts required to be paid in the Fee Letter in the manner and at the
times required by the Fee Letter.

3.5. Computation of Interest and Fees.

Interest and fees hereunder shall be computed on the basis of a year of 360 days and for the
actual number of days elapsed. If any payment to be made hereunder becomes due and payable on a
day other than a Business Day, the due date thereof shall be extended to the next succeeding
Business Day and interest thereon shall be payable at the Interest Rate for Domestic Rate Loans
during such extension.

3.6. Maximum Charges.

In no event whatsoever shall interest and other charges charged hereunder exceed the highest
rate permissible under law. In the event interest and other charges as computed hereunder would
otherwise exceed the highest rate permitted under law, such excess amount shall be first applied to
any unpaid principal balance owed by Borrower, and if the then remaining excess amount is greater
than the previously unpaid principal balance, Lenders shall promptly refund such excess amount to
Borrower and the provisions hereof shall be deemed amended to provide for such permissible rate.

3.7. Increased Costs.

(a) In the event that any Applicable Law, treaty or governmental regulation, or any change
therein or in the interpretation or application thereof, or compliance by any Lender (for purposes
of this Section 3.7, the term “Lender” shall include Agent or any Lender and any corporation or
bank controlling Agent or any Lender) and the office or branch where Agent or any Lender (as so
defined) makes or maintains any Eurodollar Rate Loans with any request or directive (whether or not
having the force of law) from any central bank or other financial, monetary or other authority,
shall:

(i) subject Agent or any Lender to any tax of any kind whatsoever with respect to this
Agreement or any Other Document or change the basis of taxation of payments to Agent or any
Lender of principal, fees, interest or any other amount payable hereunder or under any Other
Documents (except for changes in the rate of tax on the
overall net income of Agent or any Lender by the jurisdiction in which it maintains its
principal office);

 

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(ii) impose, modify or hold applicable any reserve, special deposit, assessment or
similar requirement against assets held by, or deposits in or for the account of, advances
or loans by, or other credit extended by, any office of Agent or any Lender, including
pursuant to Regulation D of the Board of Governors of the Federal Reserve System; or

(iii) impose on Agent or any Lender or the London interbank Eurodollar market any other
condition with respect to this Agreement or any Other Document;

and the result of any of the foregoing is to increase the cost to Agent or any Lender of making,
renewing or maintaining its Advances hereunder by an amount that Agent or such Lender deems to be
material or to reduce the amount of any payment (whether of principal, interest or otherwise) in
respect of any of the Advances by an amount that Agent or such Lender deems to be material, then,
in any case Borrower shall promptly pay Agent or such Lender, upon its demand, such additional
amount as will compensate Agent or such Lender for such additional cost or such reduction, as the
case may be, provided that the foregoing shall not apply to increased costs which are reflected in
the Eurodollar Rate, as the case may be. Agent or such Lender shall certify the amount of such
additional cost or reduced amount to Borrower, and such certification shall be conclusive absent
manifest error.

(b) A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender and delivered to the Borrowers shall be conclusive absent manifest error.

(c) Failure or delay on the part of any Lender to demand compensation pursuant to the
foregoing provisions of this Section 3.7 shall not constitute a waiver of such Lender’s right to
demand such compensation.

3.8. Basis For Determining Interest Rate Inadequate or Unfair.

In the event that Agent or any Lender shall have determined that:

(a) reasonable means do not exist for ascertaining the Eurodollar Rate applicable
pursuant to Section 2.2 hereof for any Interest Period; or

(b) Dollar deposits in the relevant amount and for the relevant maturity are not
available in the London interbank Eurodollar market, with respect to an outstanding
Eurodollar Rate Loan, a proposed Eurodollar Rate Loan, or a proposed conversion of a
Domestic Rate Loan into a Eurodollar Rate Loan,

then Agent shall give Borrower prompt written, telephonic or telegraphic notice of such
determination. If such notice is given, (i) any such requested Eurodollar Rate Loan shall be made
as a Domestic Rate Loan, unless Borrower shall notify Agent no later than 12:30 p.m. (New York City time) two (2) Business Days prior to the date of such proposed borrowing, that its
request for such borrowing shall be cancelled or made as an unaffected type of Eurodollar Rate
Loan,

 

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(ii) any Domestic Rate Loan or Eurodollar Rate Loan which was to have been converted to an
affected type of Eurodollar Rate Loan shall be continued as or converted into a Domestic Rate Loan,
or, if Borrower shall notify Agent, no later than 12:30 p.m. (New York City time) two (2) Business
Days prior to the proposed conversion, shall be maintained as an unaffected type of Eurodollar Rate
Loan, and (iii) any outstanding affected Eurodollar Rate Loans shall be converted into a Domestic
Rate Loan, or, if Borrower shall notify Agent, no later than 12:30 p.m. (New York City time)
two (2) Business Days prior to the last Business Day of the then current Interest Period applicable
to such affected Eurodollar Rate Loan, shall be converted into an unaffected type of Eurodollar
Rate Loan, on the last Business Day of the then current Interest Period for such affected
Eurodollar Rate Loans. Until such notice has been withdrawn, Lenders shall have no obligation to
make an affected type of Eurodollar Rate Loan or maintain outstanding affected Eurodollar Rate
Loans and Borrower shall not have the right to convert a Domestic Rate Loan or an unaffected type
of Eurodollar Rate Loan into an affected type of Eurodollar Rate Loan.

3.9. Capital Adequacy.

(a) In the event that Agent or any Lender shall have determined that any Applicable Law, rule,
regulation or guideline regarding capital adequacy, or any change therein, or any change in the
interpretation or administration thereof by any Governmental Body, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by Agent or any
Lender (for purposes of this Section 3.9, the term “Lender” shall include Agent or any Lender and
any corporation or bank controlling Agent or any Lender) and the office or branch where Agent or
any Lender (as so defined) makes or maintains any Eurodollar Rate Loans with any request or
directive regarding capital adequacy (whether or not having the force of law) of any such
authority, central bank or comparable agency, has or would have the effect of reducing the rate of
return on Agent or any Lender’s capital as a consequence of its obligations hereunder to a level
below that which Agent or such Lender could have achieved but for such adoption, change or
compliance (taking into consideration Agent’s and each Lender’s policies with respect to capital
adequacy) by an amount deemed by Agent or any Lender to be material, then, from time to time,
Borrower shall pay upon demand to Agent or such Lender such additional amount or amounts as will
compensate Agent or such Lender for such reduction. In determining such amount or amounts, Agent
or such Lender may use any reasonable averaging or attribution methods. The protection of this
Section 3.9 shall be available to Agent and each Lender regardless of any possible contention of
invalidity or inapplicability with respect to the Applicable Law, regulation or condition.

(b) A certificate of Agent or such Lender setting forth such amount or amounts as shall be
necessary to compensate Agent or such Lender with respect to Section 3.9(a) hereof when delivered
to Borrower shall be conclusive absent manifest error.

(c) Failure or delay on the part of any Lender to demand compensation pursuant to the
foregoing provisions of this Section 3.9 shall not constitute a waiver of such Lender’s right to
demand such compensation.

 

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3.10. Gross Up for Taxes.

If Borrower shall be required by Applicable Law to withhold or deduct any taxes from or in
respect of any sum payable under this Agreement or any of the Other Documents to Agent, or any
Lender, assignee of any Lender, or Participant (each, individually, a “Payee” and
collectively, the “Payees”), (a) the sum payable to such Payee or Payees, as the case may
be, shall be increased as may be necessary so that, after making all required withholding or
deductions, the applicable Payee or Payees receives an amount equal to the sum it would have
received had no such withholding or deductions been made (the “Gross-Up Payment”), (b)
Borrower shall make such withholding or deductions, and (c) Borrower shall pay the full amount
withheld or deducted to the relevant taxation authority or other authority in accordance with
Applicable Law. Notwithstanding the foregoing, Borrower shall not be obligated to make any portion
of the Gross-Up Payment that is attributable to any withholding or deductions that would not have
been paid or claimed had the applicable Payee or Payees properly claimed a complete exemption with
respect thereto pursuant to Section 3.11 hereof.

3.11. Withholding Tax Exemption.

(a) Each Payee that is not incorporated under the Laws of the United States of America or a
state thereof (and, upon the written request of Agent, each other Payee) agrees that it will
deliver to Borrower and Agent two (2) duly completed appropriate valid Withholding Certificates (as
defined under §1.1441-1(c)(16) of the Income Tax Regulations (“Regulations”)) certifying
its status (i.e., U.S. or foreign person) and, if appropriate, making a claim of reduced, or
exemption from, U.S. withholding tax on the basis of an income tax treaty or an exemption provided
by the Code. The term “Withholding Certificate” means a Form W-9; a Form W-8BEN; a Form W-8ECI; a
Form W-8IMY and the related statements and certifications as required under §1.1441-1(e)(2) and/or
(3) of the Regulations; a statement described in §1.871-14(c)(2)(v) of the Regulations; or any
other certificates under the Code or Regulations that certify or establish the status of a payee or
beneficial owner as a U.S. or foreign person.

(b) Each Payee required to deliver to Borrower and Agent a valid Withholding Certificate
pursuant to Section 3.11(a) hereof shall deliver such valid Withholding Certificate as follows:
(A) each Payee which is a party hereto on the Closing Date shall deliver such valid Withholding
Certificate at least five (5) Business Days prior to the first date on which any interest or fees
are payable by Borrower hereunder for the account of such Payee; (B) each Payee shall deliver such
valid Withholding Certificate at least five (5) Business Days before the effective date of such
assignment or participation (unless Agent in its sole discretion shall permit such Payee to deliver
such Withholding Certificate less than five (5) Business Days before such date in which case it
shall be due on the date specified by Agent). Each Payee which so delivers a valid Withholding
Certificate further undertakes to deliver to Borrower and Agent two (2) additional copies of such
Withholding Certificate (or a successor form) on or before the date that such Withholding
Certificate expires or becomes obsolete or after the occurrence of any event requiring a change in
the most recent Withholding Certificate so delivered by it, and such amendments thereto or
extensions or renewals thereof as may be reasonably requested by Borrower or Agent.

 

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(c) Notwithstanding the submission of a Withholding Certificate claiming a reduced rate of or
exemption from U.S. withholding tax required under Section 3.11(b) hereof, Agent shall be entitled
to withhold United States federal income taxes at the full 30% withholding rate if in its
reasonable judgment it is required to do so under the due diligence requirements imposed upon a
withholding agent under §1.1441-7(b) of the Regulations. Further, Agent is indemnified under
§1.1461-1(e) of the Regulations against any claims and demands of any Payee for the amount of any
tax it deducts and withholds in accordance with regulations under §1441 of the Code.

3.12 Survival of Obligations.

The Borrower’s obligations and the indemnifications under this Article III shall survive the
termination of this Agreement.

ARTICLE IV

COLLATERAL: GENERAL TERMS

4.1. Security Interest in the Collateral.

To secure the prompt payment and performance to Agent and each Lender of the Obligations,
Borrower hereby pledges and grants to Agent for its benefit and for the ratable benefit of each
Lender a continuing security interest in and to and Lien on all of its Collateral, whether now
owned or existing or hereafter acquired or arising and wheresoever located. Borrower shall mark
its books and records as may be necessary or appropriate to evidence, protect and perfect Agent’s
security interest and shall cause its financial statements to reflect such security interest.
Borrower shall promptly provide Agent with written notice of all commercial tort claims promptly
upon obtaining knowledge thereof, such notice to contain the case title together with the
applicable court and a brief description of the claim(s). Upon delivery of each such notice,
Borrower shall be deemed to hereby grant to Agent a security interest and lien in and to such
commercial tort claims and all proceeds thereof.

4.2. Perfection of Security Interest.

Borrower shall take all action that may be necessary or desirable, or that Agent may
reasonably request, so as at all times to maintain the validity, perfection, enforceability and
priority of Agent’s security interest in and Lien on the Collateral or to enable Agent to protect,
exercise or enforce its rights hereunder and in the Collateral, including, but not limited to, (i)
immediately discharging all Liens other than Permitted Encumbrances, (ii) within sixty (60) days of
the Closing Date, obtaining Lien Waiver Agreements, (iii) delivering to Agent, endorsed or
accompanied by such instruments of assignment as Agent may specify, and stamping or marking, in
such manner as Agent may specify, any and all chattel paper, instruments, letters of credits and
advices thereof and documents evidencing or forming a part of the Collateral, (iv) entering into
warehousing, lockbox and other custodial arrangements satisfactory to Agent, and

 

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(v) executing and delivering financing statements, control agreements, instruments of pledge,
mortgages, notices and assignments, in each case in form and substance satisfactory to Agent,
relating to the creation, validity, perfection, maintenance or continuation of Agent’s security
interest and Lien under the Uniform Commercial Code or other Applicable Law. Agent is hereby
authorized to file financing statements in accordance with the Uniform Commercial Code as adopted
in the State of New York from time to time. By its signature hereto, Borrower hereby authorizes
Agent to file against Borrower, one or more financing continuation or amendment statements pursuant
to the Uniform Commercial Code in form and substance satisfactory to Agent (which statements may
have a description of collateral which is broader than that set forth herein and which may describe
the Collateral as “all assets” or “all personal property”). All charges, expenses and fees Agent
may incur in doing any of the foregoing, and any local taxes relating thereto, shall be charged to
Borrower’s Account as a Revolving Advance of a Domestic Rate Loan and added to the Obligations, or,
at Agent’s option, shall be paid to Agent for its benefit and for the ratable benefit of Lenders
immediately upon demand.

4.3. Disposition of Collateral.

Borrower will safeguard and protect all Collateral for Agent’s general account and make no
disposition thereof whether by sale, lease or otherwise except (a) the sale of Inventory in the
Ordinary Course of Business and (b) the disposition or transfer of Equipment in the Ordinary Course
of Business and only to the extent that (i) the proceeds of any such disposition are used to
acquire replacement Equipment which is subject to Agent’s first priority security interest or (ii)
the proceeds of which are remitted to Agent to be applied pursuant to Section 2.19.

4.4. Preservation of Collateral.

Following the occurrence of an Event of Default, and provided Agent elects to exercise its
remedies under this Agreement, in addition to the rights and remedies set forth in Section 11.1
hereof, Agent: (a) may at any time take such steps as Agent deems necessary to protect Agent’s
interest in and to preserve the Collateral; (b) may lease warehouse facilities to which Agent may
move all or part of the Collateral; (c) may use Borrower’s owned or leased lifts, hoists, trucks
and other facilities or equipment for handling or removing the Collateral; and (d) shall have, and
is hereby granted, a right of ingress and egress to the places where the Collateral is located, and
may proceed over and through any of Borrower’s owned or leased property. Borrower shall cooperate
fully with all of Agent’s efforts to preserve the Collateral and will take such actions to preserve
the Collateral as Agent may direct. All of Agent’s expenses of preserving the Collateral,
including any expenses relating to the bonding of a custodian, shall be charged to Borrower’s
Account as a Revolving Advance and added to the Obligations.

 

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4.5. Ownership of Collateral.

(a) With respect to the Collateral, at the time the Collateral becomes subject to Agent’s
security interest: (i) Borrower shall be the sole owner of and fully authorized and able to sell,
transfer, pledge and/or grant a first priority security interest in each and every item of the its
respective Collateral to Agent; and, except for Permitted Encumbrances the Collateral shall be free
and clear of all Liens and encumbrances whatsoever; (ii) each document and agreement
executed by Borrower or delivered to Agent or any Lender in connection with this Agreement
shall be true and correct in all material respects; (iii) all signatures and endorsements of
Borrower that appear on such documents and agreements shall be genuine and Borrower shall have full
capacity to execute same; and (iv) Borrower’s Equipment and Inventory shall be located as set forth
on Schedule 4.5 and shall not be removed from such location(s) without the prior written consent of
Agent except with respect to the sale of Inventory in the Ordinary Course of Business and Equipment
to the extent permitted in Section 4.3 hereof and (B) that Borrower may move Collateral from one
location set forth on Schedule 4.5 to another location set forth on Schedule 4.5.

(b) (i) There is no location at which Borrower has any Inventory (except for Inventory in
transit) or other Collateral other than those locations listed on Schedule 4.5; (ii) Schedule 4.5
hereto sets forth a correct and complete list as of the Closing Date of (A) each place of business
of Borrower and (B) the chief executive office of Borrower; and (iii) Schedule 4.5 hereto sets
forth a correct and complete list as of the Closing Date of the location, by state and street
address, of all Real Property owned or leased by Borrower, identifying which properties are owned
and which are leased, together with the names and addresses of any landlords.

4.6. Defense of Agent’s and Lenders’ Interests.

Until (a) payment and performance in full of all of the Obligations and (b) termination of
this Agreement, Agent’s interests in the Collateral shall continue in full force and effect.
During such period Borrower shall not, without Agent’s prior written consent, pledge, sell (except
Inventory in the Ordinary Course of Business and Equipment to the extent permitted in Section 4.3
hereof), assign, transfer, create or suffer to exist a Lien upon or encumber or allow or suffer to
be encumbered in any way except for Permitted Encumbrances, any part of the Collateral. Borrower
shall defend Agent’s interests in the Collateral against any and all Persons whatsoever. At any
time following demand by Agent for payment of all Obligations, Agent shall have the right to take
possession of the indicia of the Collateral and the Collateral in whatever physical form contained,
including: labels, stationery, documents, instruments and advertising materials. If Agent
exercises this right to take possession of the Collateral, Borrower shall, upon demand, assemble it
in the best manner possible and make it available to Agent at a place reasonably convenient to
Agent. In addition, with respect to all Collateral, Agent and Lenders shall be entitled to all of
the rights and remedies set forth herein and further provided by the Uniform Commercial Code or
other Applicable Law. Borrower shall, and Agent may, at its option, instruct all suppliers,
carriers, forwarders, warehousers or others receiving or holding cash, checks, Inventory, documents
or instruments in which Agent holds a security interest to deliver same to Agent and/or subject to
Agent’s order and if they shall come into Borrower’s possession, they, and each of them, shall be
held by Borrower in trust as Agent’s trustee, and Borrower will immediately deliver them to Agent
in their original form together with any necessary endorsement.

 

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4.7. Books and Records.

Borrower shall (a) keep proper books of record and account in which full, true and correct
entries will be made of all dealings or transactions of or in relation to its business and
affairs which books and records shall be kept at Borrower’s principal place of business; (b)
set up on its books accruals with respect to all taxes, assessments, charges, levies and claims;
and (c) on a reasonably current basis set up on its books, from its earnings, allowances against
doubtful Receivables, advances and investments and all other proper accruals (including by reason
of enumeration, accruals for premiums, if any, due on required payments and accruals for
depreciation, obsolescence, or amortization of properties), which should be set aside from such
earnings in connection with its business. All determinations pursuant to this subsection shall be
made in accordance with, or as required by, GAAP consistently applied in the opinion of such
independent public accountant as shall then be regularly engaged by Borrower.

4.8. Financial Disclosure.

Borrower hereby irrevocably authorizes and directs all accountants and auditors employed by
Borrower at any time during the Term to interact with Agent and to deliver to Agent copies of any
of Borrower’s financial statements, trial balances or other accounting records of any sort in the
accountant’s or auditor’s possession that may be reasonably requested by Agent, and to disclose to
Agent any information such accountants may have concerning Borrower’s financial status and business
operations.

4.9. Compliance with Laws.

Borrower shall comply in all material respects with all Applicable Laws with respect to the
Collateral or any part thereof or to the operation of Borrower’s business the non-compliance with
which could reasonably be expected to have a Material Adverse Effect. The assets of Borrower at
all times shall be maintained in accordance with the requirements of all insurance carriers which
provide insurance with respect to the assets of Borrower so that such insurance shall remain in
full force and effect.

4.10. Inspection of Premises; Appraisals.

At all reasonable times and with reasonable prior written notice provided no Default or Event
of Default then exists, Agent and each Lender shall have full access to and the right to audit,
check, inspect and make abstracts and copies from Borrower’s books, records, audits, correspondence
and all other papers relating to the Collateral and the operation of Borrower’s business. Agent,
any Lender and their agents may enter upon any of Borrower’s premises at any time during business
hours and at any other reasonable time, and from time to time, for the purpose of inspecting the
Collateral and any and all records pertaining thereto and the operation of Borrower’s business and
discussing the affairs, finances and business of Borrower with any officers and directors of
Borrower or with the Accountants. At the sole cost of Borrower, Agent will conduct no more than
four field examinations per year in the absence of a Default, but reserves the right, in its
reasonable credit judgment exercised in good faith, to conduct additional field examinations and
Appraisals (whether real estate Appraisals, Appraisals of Inventory or Appraisals of Equipment) at
Borrower’s expense upon reasonable notice to Borrower.

 

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4.11. Insurance.

The assets and properties of Borrower at all times shall be maintained in accordance with the
requirements of all insurance carriers which provide insurance with respect to the assets and
properties of Borrower so that such insurance shall remain in full force and effect. Borrower
shall bear the full risk of any loss of any nature whatsoever with respect to the Collateral. At
Borrower’s own cost and expense in amounts and with carriers acceptable to Agent, Borrower shall
(a) keep all its insurable properties and properties in which Borrower has an interest insured
against the hazards of fire, flood, sprinkler leakage, those hazards covered by extended coverage
insurance and such other hazards, and for such amounts, as is customary in the case of companies
engaged in businesses similar to Borrower’s including business interruption insurance; (b) maintain
a bond in such amounts as is customary in the case of companies engaged in businesses similar to
Borrower insuring against larceny, embezzlement or other criminal misappropriation of insured’s
officers and employees who may either singly or jointly with others at any time have access to the
assets or funds of Borrower either directly or through authority to draw upon such funds or to
direct generally the disposition of such assets; (c) maintain all such worker’s compensation or
similar insurance as may be required under the laws of any state or jurisdiction in which Borrower
is engaged in business; (d) furnish Agent with (i) copies of all policies and evidence of the
maintenance of such policies by the renewal thereof at least thirty (30) days before any expiration
date, and (ii) appropriate loss payable endorsements in form and substance satisfactory to Agent,
naming Agent as a loss payee as its interests may appear with respect to all insurance coverage
referred to in clause (a) above, and providing (A) that all proceeds thereunder shall be payable to
Agent, (B) no such insurance shall be affected by any act or neglect of the insured or owner of the
property described in such policy, and (C) that such policy and loss payable clauses may not be
cancelled, amended or terminated unless at least thirty (30) days’ prior written notice is given to
Agent. In the event of any loss thereunder, the carriers named therein hereby are directed by
Agent and Borrower to make payment for such loss to Agent and not to Borrower and Agent jointly.
If any insurance losses are paid by check, draft or other instrument payable to Borrower and Agent
jointly, Agent may endorse Borrower’s name thereon and do such other things as Agent may deem
advisable to reduce the same to cash. If any payment for such loss is made to Borrower and not
Agent, Borrower shall turn over such payment to Agent. Agent is hereby authorized to adjust and
compromise claims under insurance coverage referred to in clauses (a) and (b) above. All loss
recoveries received by Agent upon any such insurance may be applied to the Obligations, in such
order as Agent in its sole discretion shall determine. Any surplus shall be paid by Agent to
Borrower or applied as may be otherwise required by law. Any deficiency thereon shall be paid by
Borrower to Agent, on demand.

4.12. Failure to Pay Insurance.

If Borrower fails to obtain insurance as hereinabove provided, or to keep the same in force,
Agent, if Agent so elects, may obtain such insurance and pay the premium therefor on behalf of
Borrower, and charge Borrower’s Account therefor as an Advance of a Domestic Rate Loan and such
expenses so paid shall be part of the Obligations. Agent shall promptly provide Borrower written
notice after obtaining any such insurance or making any such payment.

 

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4.13. Payment of Taxes.

Except as otherwise being Properly Contested for Taxes, Borrower will pay, when due, all
taxes, assessments and other Charges lawfully levied or assessed upon Borrower or any of the
Collateral including real and personal property taxes, assessments and charges and all franchise,
income, employment, social security benefits, withholding, and sales taxes. If any tax by any
Governmental Body is or may be imposed on or as a result of any transaction between Borrower and
Agent or any Lender which Agent or any Lender may be required to withhold or pay or if any taxes,
assessments, or other Charges remain unpaid after the date fixed for their payment, or if any claim
shall be made which, in Agent’s or any Lender’s opinion, may possibly create a valid Lien on the
Collateral, Agent may without notice to Borrower, if such tax, assessment, Charge or claim is not
being Properly Contested for Taxes, pay the taxes, assessments or other Charges and Borrower hereby
indemnifies and holds Agent and each Lender harmless in respect thereof. Agent shall promptly
provide Borrower with written notice after making such payment. The amount of any payment by Agent
under this Section 4.13 shall be charged to Borrower’s Account as a Revolving Advance and added to
the Obligations and, until Borrower shall furnish Agent with an indemnity therefor (or supply Agent
with evidence satisfactory to Agent that due provision for the payment thereof has been made),
Agent may hold without interest any balance standing to Borrower’s credit and Agent shall retain
its security interest in and Lien on any and all Collateral held by Agent.

4.14. Payment of Leasehold Obligations.

Except as otherwise being Properly Contested, Borrower shall at all times pay, when and as
due, its rental obligations under all leases under which it is a tenant, and shall otherwise
comply, in all material respects, with all other terms of such leases and keep them in full force
and effect and, at Agent’s request will provide evidence of having done so.

4.15. Receivables.

(a) Nature of Receivables.

Each of the Receivables shall be a bona fide and valid account representing a bona fide
indebtedness incurred by the Customer therein named, for a fixed sum as set forth in the invoice
relating thereto (provided immaterial or unintentional invoice errors shall not be deemed to be a
breach hereof) with respect to billed Receivables and for work performed for unbilled Receivables.

(b) Solvency of Customers.

Each Customer, to Borrower’s actual knowledge, as of the date each Receivable is created, is
and will be solvent and able to pay all Receivables on which the Customer is obligated in full when
due or with respect to such Customers of Borrower who are not solvent Borrower has set up on its
books and in its financial records bad debt reserves adequate to cover such Receivables.

 

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(c) Location of Borrower.

Borrower’s chief executive office is located at the address set forth on Schedule 4.5. Until
written notice is given to Agent by Borrower of any other office at which Borrower keeps its
records pertaining to Receivables, all such records shall be kept at such executive office.

(d) Collection of Receivables.

Until Borrower’s authority to do so is terminated by Agent (which notice Agent may give at any
time following the occurrence of an Event of Default and provided Agent elects to exercise its
remedies under this Agreement), Borrower will, at Borrower’s sole cost and expense, but on Agent’s
behalf and for Agent’s account, collect as Agent’s property and in trust for Agent all amounts
received on Receivables, and shall not commingle such collections with Borrower’s funds or use the
same except to pay Obligations. Borrower shall deposit in the Blocked Account or, upon request by
Agent, deliver to Agent, in original form and on the date of receipt thereof, all checks, drafts,
notes, money orders, acceptances, cash and other evidences of Indebtedness.

(e) Notification of Assignment of Receivables.

At any time following the occurrence of an Event of Default and provided Agent elects to
exercise its remedies under this Agreement, Agent shall have the right to send notice of the
assignment of, and Agent’s security interest in and Lien on, the Receivables to any and all
Customers or any third party holding or otherwise concerned with any of the Collateral.
Thereafter, Agent shall have the sole right to collect the Receivables, take possession of the
Collateral, or both. Agent’s actual collection expenses, including, but not limited to, stationery
and postage, telephone and telegraph, secretarial and clerical expenses and the salaries of any
collection personnel used for collection, may be charged to Borrower’s Account and added to the
Obligations.

(f) Power of Agent to Act on Borrower’s Behalf.

Agent shall have the right to receive, endorse, assign and/or deliver in the name of Agent or
Borrower any and all checks, drafts and other instruments for the payment of money relating to the
Receivables, and Borrower hereby waives notice of presentment, protest and non-payment of any
instrument so endorsed. If an Event of Default has occurred and provided Agent elects to exercise
its remedies under this Agreement, Borrower hereby constitutes Agent or Agent’s designee as
Borrower’s attorney with power (i) to endorse Borrower’s name upon any notes, acceptances, checks,
drafts, money orders or other evidences of payment or Collateral; (ii) to sign Borrower’s name on
any invoice or bill of lading relating to any of the Receivables, drafts against Customers,
assignments and verifications of Receivables; (iii) to send verifications of Receivables to any
Customer; (iv) to sign Borrower’s name on all documents or instruments deemed necessary or
appropriate by Agent to preserve, protect, or perfect Agent’s interest in the Collateral and to
file same; (v) to demand payment of the Receivables; (vi) to enforce payment of the Receivables by
legal proceedings or otherwise; (vii) to exercise all of Borrower’s rights and remedies with
respect to the collection of the Receivables and any other Collateral; (viii) to settle, adjust,
compromise, extend or renew the Receivables; (ix) to settle, adjust or compromise any legal proceedings brought to collect Receivables;

 

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(x) to prepare, file and sign Borrower’s name on a proof of claim in bankruptcy or similar document against any Customer; (xi) to prepare,
file and sign Borrower’s name on any notice of Lien, assignment or satisfaction of Lien or similar
document in connection with the Receivables; and (xii) to do all other acts and things necessary to
carry out this Agreement. All acts of said attorney or designee are hereby ratified and approved,
and said attorney or designee shall not be liable for any acts of omission or commission nor for
any error of judgment or mistake of fact or of law, unless done maliciously or with gross (not
mere) negligence (as determined by a court of competent jurisdiction in a final non-appealable
judgment); this power being coupled with an interest is irrevocable while any of the Obligations
remain unpaid. Agent shall have the right at any time following the occurrence of an Event of
Default or Default, to change the address for delivery of mail addressed to Borrower to such
address as Agent may designate and to receive, open and dispose of all mail addressed to Borrower.

(g) No Liability.

Neither Agent nor any Lender shall, other than for Agent’s or such Lender’s gross negligence
or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable
judgment), have any liability for any error or omission or delay of any kind occurring in the
settlement, collection or payment of any of the Receivables or any instrument received in payment
thereof, or for any damage resulting therefrom. Following the occurrence of an Event of Default
and provided Agent elects to exercise its remedies under this Agreement, Agent may, without notice
or consent from Borrower, sue upon or otherwise collect, extend the time of payment of, compromise
or settle for cash, credit or upon any terms any of the Receivables or any other securities,
instruments or insurance applicable thereto and/or release any obligor thereof. Agent is
authorized and empowered to accept following the occurrence of an Event of Default or Default the
return of the goods represented by any of the Receivables, without notice to or consent by
Borrower, all without discharging or in any way affecting Borrower’s liability hereunder.

(h) Establishment of a Cash Management System.

All proceeds of Collateral shall be deposited by Borrower into either (i) a lockbox account,
dominion account or such other “blocked account” (“Blocked Accounts”) established at a bank
or banks (each such bank, a “Blocked Account Bank”) pursuant to an arrangement with such
Blocked Account Bank as may be selected by Borrower and be acceptable to Agent or (ii) depository
accounts (“Depository Accounts”) established at the Agent for the deposit of such proceeds.
Borrower, Agent and each Blocked Account Bank shall enter into a deposit account control agreement
in form and substance reasonably satisfactory to Agent directing such Blocked Account Bank to
transfer such funds so deposited to Agent, either to an account maintained by Agent at said Blocked
Account Bank or by wire transfer to appropriate account(s) of Agent. All funds deposited in such
Blocked Accounts shall immediately become the property of Agent and Borrower shall obtain the
agreement by such Blocked Account Bank to waive any offset rights against the funds so deposited.
Neither Agent nor any Lender assumes any responsibility for such blocked account arrangement,
including any claim of accord and satisfaction or release with
respect to deposits accepted by any Blocked Account Bank thereunder. All deposit accounts and
investment accounts of Borrower and its Subsidiaries are set forth on Schedule 4.15(h).

 

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(i) Adjustments.

Borrower will not, without Agent’s consent, compromise or adjust any material amount of the
Receivables (or extend the time for payment thereof) or accept any material returns of merchandise
or grant any additional discounts, allowances or credits thereon except for those compromises,
adjustments, returns, discounts, credits and allowances as have been heretofore customary in the
business of Borrower.

4.16. Reserved.

4.17. Reserved.

4.18. Exculpation of Liability.

Nothing herein contained shall be construed to constitute Agent or any Lender as Borrower’s
agent for any purpose whatsoever, nor shall Agent or any Lender be responsible or liable for any
shortage, discrepancy, damage, loss or destruction of any part of the Collateral wherever the same
may be located and regardless of the cause thereof. Neither Agent nor any Lender, whether by
anything herein or in any assignment or otherwise, assume any of Borrower’s obligations under any
contract or agreement assigned to Agent or such Lender, and neither Agent nor any Lender shall be
responsible in any way for the performance by Borrower of any of the terms and conditions thereof.

4.19. Environmental Matters.

(a) Borrower shall ensure that the Real Property owned or leased by Borrower remains in
compliance with all Environmental Laws in all material respects and they shall not place or permit
to be placed any Hazardous Substances on any Real Property except as permitted by Applicable Law or
appropriate governmental authorities and except as otherwise would not reasonably be expected to
have a Material Adverse Effect.

(b) In the event Borrower obtains, gives or receives notice of any Release or threat of
Release of a reportable quantity of any Hazardous Substances at the Real Property (any such event
being hereinafter referred to as a “Hazardous Discharge”) or receives any notice of
violation, request for information or notification that it is potentially responsible for
investigation or cleanup of environmental conditions at the Real Property, demand letter or
complaint, order, citation, or other written notice with regard to any Hazardous Discharge or
violation of Environmental Laws affecting the Real Property or Borrower’s interest therein (any of
the foregoing is referred to herein as an “Environmental Complaint”) from any Person,
including any state agency responsible in whole or in part for environmental matters in the state
in which the Real Property is located or the United States Environmental Protection Agency (any
such person or entity hereinafter the “Authority”), then Borrower shall, within five (5)
Business Days, give written notice of same to Agent detailing facts and circumstances of which
Borrower is aware
giving rise to the Hazardous Discharge or Environmental Complaint. Such information is to be
provided to allow Agent to protect its security interest in and Lien on the Collateral and is not
intended to create nor shall it create any obligation upon Agent or any Lender with respect
thereto.

 

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(c) Borrower shall promptly forward to Agent copies of any request for information,
notification of potential liability, demand letter relating to potential responsibility with
respect to the investigation or cleanup of Hazardous Substances at any other site owned, operated
or used by Borrower to dispose of Hazardous Substances and shall continue to forward copies of
correspondence between Borrower and the Authority regarding such claims to Agent until the claim is
settled. Borrower shall promptly forward to Agent copies of all documents and reports concerning a
Hazardous Discharge at the Real Property that Borrower is required to file under any Environmental
Laws. Such information is to be provided solely to allow Agent to protect Agent’s security
interest in and Lien on the Real Property and the Collateral.

(d) Borrower shall defend and indemnify Agent and Lenders and hold Agent, Lenders and their
respective employees, agents, directors and officers harmless from and against all loss, liability,
damage and expense, claims, costs, fines and penalties, including attorney’s fees, suffered or
incurred by Agent or Lenders under or on account of any Environmental Laws, including the assertion
of any Lien thereunder, with respect to any Hazardous Discharge, the presence of any Hazardous
Substances affecting the Real Property, whether or not the same originates or emerges from the Real
Property or any contiguous real estate, including any loss of value of the Real Property as a
result of the foregoing except to the extent such loss, liability, damage and expense is
attributable to any Hazardous Discharge resulting from actions on the part of Agent or any Lender.
Borrower’s obligations under this Section 4.19 shall arise upon the discovery of the presence of
any Hazardous Substances at the Real Property, whether or not any federal, state, or local
environmental agency has taken or threatened any action in connection with the presence of any
Hazardous Substances. Borrower’s obligation and the indemnifications hereunder shall survive the
termination of this Agreement.

(e) For purposes of Section 4.19 and 5.7, all references to Real Property shall be deemed to
include all of Borrower’s right, title and interest in and to its owned and leased premises.

4.20. Financing Statements.

Except as respects the financing statements filed by Agent and the financing statements
described on Schedule 1.2, no financing statement covering any of the Collateral or any proceeds
thereof is on file in any public office.

 

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4.21. Voting Rights in Respect of Subsidiary Stock.

(a) So long as no Event of Default shall have occurred and be continuing, to the extent
permitted by law, Borrower may exercise any and all voting and other consensual rights
pertaining to the Subsidiary Stock of Borrower or any part thereof for any purpose not
inconsistent with the terms of this Agreement; and

(b) Upon the occurrence and during the continuance of an Event of Default and following
written notice by Agent, all rights of Borrower to exercise the voting and other consensual rights
which it would otherwise be entitled to exercise pursuant to paragraph (a) of this Section shall
cease and all such rights shall thereupon become vested in Agent which shall then have the sole
right to exercise such voting and other consensual rights.

4.22. Dividend and Distribution Rights in Respect of Subsidiary Shares.

(a) So long as no Event of Default shall have occurred and be continuing, Borrower may receive
and retain any and all dividends (other than stock or ownership interest dividends and other
dividends constituting Subsidiary Stock which are addressed herein), distributions or interest paid
in respect of the Subsidiary Stock to the extent they are allowed under this Agreement.

(b) Upon the occurrence and during the continuation of an Event of Default:

(A) all rights of Borrower to receive the dividends, distributions and interest
payments which it would otherwise be authorized to receive and retain pursuant to
paragraph (a) of this Section shall cease and all such rights shall thereupon be vested in
Agent which shall then have the sole right to receive and hold as Subsidiary Stock such
dividends, distributions and interest payments; and

(B) all dividends, distributions and interest payments which are received by Borrower
contrary to the provisions of clause (A) of this paragraph (b) shall be received in trust
for the benefit of Agent, shall be segregated from other property or funds of Borrower, and
shall be forthwith paid over to Agent as Subsidiary Stock in the exact form received, to be
held by Agent as Subsidiary Stock and as further collateral security for the Obligations.

4.23. Reduction of Credit Enhancement Letter of Credit.

At any time from and after the Agent’s receipt of Borrower’s audited year-end financial
statement for the fiscal year ended on or about December 31, 2008 and the Accountant’s opinion
required by Section 9.7, the Required Credit Enhancement Amount shall be reduced by $3,000,000 (but
in no event to less than zero) at the end of each fiscal quarter for which each of the following
conditions are satisfied: (i) the trailing four quarter EBITDA ending as of such quarter is not
less than $12,000,000; (ii) the Fixed Charge Coverage Ratio for such fiscal quarter calculated in
accordance with Section 6.5 is at least 1.15 to 1.0; (iii) the average Undrawn Availability for the
thirty (30) consecutive days prior to the end of such quarter, after giving effect to the reduction
of the Required Credit Enhancement Amount would have been at least $7,500,000; and (iv) no Default
or Event of Default then exists. If, after giving effect to such reduction, the Required Credit
Enhancement Amount is equal to zero, the Agent shall release the Credit Enhancement Letter of
Credit (or any cash or Cash Equivalents being held as collateral in
substitution therefor). The Agent shall release any cash or Cash Equivalents being held in
substitution for a Credit Enhancment Letter of Credit by the Agent in excess of the Required Credit
Enhancement Amount.

 

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4.24. Release of Credit Enhancement Letter of Credit.

At any time from and after the Agent’s receipt of Borrower’s audited year-end financial
statement for the fiscal year ended on or about December 31, 2008 and the Accountant’s opinion
required by Section 9.7, the Agent shall release the Credit Enhancement Letter of Credit (or any
cash or Cash Equivalents being held as collateral in substitution therefor) and the Required Credit
Enhancement Amount shall be reduced to zero at the end of any month for which each of the following
conditions are satisfied: (i) the trailing twelve month EBITDA ending as of such fiscal month is
not less than $14,750,000; (ii) the Fixed Charge Coverage Ratio for such fiscal month calculated in
accordance with Section 6.5 is at least 1.25 to 1.0; (iii) average Undrawn Availability for the
prior consecutive thirty (30) day period after giving effect to the reduction of the Required
Credit Enhancement Amount to zero would have been at least $7,500,000; and (iv) no Default or Event
of Default then exists.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants as follows:

5.1. Authority.

Borrower has full power, authority and legal right to enter into this Agreement and the Other
Documents and to perform all its respective Obligations hereunder and thereunder. This Agreement,
the Subordination Agreement and the Other Documents have been duly executed and delivered by
Borrower, and this Agreement, the Subordination Agreement and the Other Documents constitute the
legal, valid and binding obligation of Borrower enforceable in accordance with their terms, except
as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or
similar laws affecting creditors’ rights generally. The execution, delivery and performance of
this Agreement and of the Other Documents (a) are within Borrower’s corporate powers, have been
duly authorized by all necessary corporate action, are not in contravention of law or the terms of
Borrower’s by-laws, certificate of incorporation or other applicable documents relating to
Borrower’s formation or to the conduct of Borrower’s business or of any material agreement or
undertaking to which Borrower is a party or by which Borrower is bound, including the Subordinated
Documentation, (b) will not conflict with or violate any law or regulation, or any judgment, order
or decree of any Governmental Body except where such conflict or violation would not reasonably be
expected to have a Material Adverse Effect, (c) will not require the Consent of any Governmental
Body or any other Person and (d) will not conflict with, nor result in any breach in any of the
provisions of or constitute a default under or result in the creation of any Lien except Permitted
Encumbrances upon any asset of Borrower under the provisions of any agreement, charter document,
instrument, by-law or other instrument to which Borrower is a party or by which it or its
property is a party or by which it may be bound, including under the provisions of the Subordinated
Documentation.

 

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5.2. Formation and Qualification.

(a) Borrower is duly incorporated and in good standing under the laws of the State of Illinois
and is qualified to do business and is in good standing in the states indicated on Schedule 5.2(a)
which constitute all states in which qualification and good standing are necessary for Borrower to
conduct its business and own its property and where the failure to so qualify could reasonably be
expected to have a Material Adverse Effect. Borrower has delivered to Agent true and complete
copies of its certificate of incorporation and by-laws and will promptly notify Agent of any
material amendment or material changes thereto.

(b) As of the Closing Date, the only Subsidiaries of Borrower are listed on
Schedule 5.2(b). As of the Closing Date, the Persons identified on Schedule 5.2(b)
are the record and beneficial owners of all of the shares of Capital Stock of each of the Persons
listed on Schedule 5.2(b) as being owned by thereby, there are no proxies, irrevocable or
otherwise, with respect to such shares, and no equity securities of any of such Persons are or may
become required to be issued by reason of any options, warrants, scrip, rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities or rights convertible
into or exchangeable for, shares of any Capital Stock of any such Person, and there are no
contracts, commitments, understandings or arrangements by which any such Person is or may become
bound to issue additional shares of its Capital Stock or securities convertible into or
exchangeable for such shares. All of the shares owned by Borrower are owned free and clear of any
Liens other than Permitted Encumbrances.

5.3. Survival of Representations and Warranties.

All representations and warranties of Borrower contained in this Agreement and the Other
Documents shall be true at the time of Borrower’s execution of this Agreement and the Other
Documents, and shall survive the execution, delivery and acceptance thereof by the parties thereto
and the closing of the transactions described therein or related thereto.

5.4. Tax Returns.

Borrower’s federal tax identification number is set forth on Schedule 5.4. Borrower has filed
all federal, state and local tax returns and other reports it is required by law to file and has
paid all taxes, assessments, fees and other governmental charges that are due and payable subject
to (a) any of the foregoing being Properly Contested for Taxes and (b) any extensions permitted by
Applicable Law. The provision for taxes on the books of Borrower is adequate for all years not
closed by applicable statutes, and for its current fiscal year, and Borrower has no knowledge of
any deficiency or additional assessment in connection therewith not provided for on its books.

 

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5.5. Financial Statements.

(a) The pro forma balance sheet of Borrower annexed hereto as Exhibit 5.5(a) (the “Pro
Forma Balance Sheet”) furnished to Agent on the Closing Date reflects the consummation of the
transactions contemplated by the Subordinated Documentation and under this Agreement (collectively,
the “Transactions”) and is accurate, complete and correct and fairly reflects in all
material respects the financial condition of Borrower as of the Closing Date after giving effect to
the Transactions, and has been prepared in accordance with GAAP, consistently applied. The Pro
Forma Balance Sheet has been certified as accurate, complete and correct in all material respects
by a Duly Authorized Officer. All financial statements referred to in this subsection 5.5(a),
including the related schedules and notes thereto, have been prepared, in accordance with GAAP,
except as may be disclosed in such financial statements.

(b) The cash flow projections of Borrower and its projected balance sheets (and income
statements), copies of which are annexed hereto as Exhibit 5.5(b) (the “Projections”) were
prepared a Duly Authorized Officer, are based on underlying assumptions which provide a reasonable
basis for the projections contained therein and reflect Borrower’s judgment based on present
circumstances of the most likely set of conditions and course of action for the projected period.
The cash flow Projections together with the Pro Forma Balance Sheet, are referred to as the
“Pro Forma Financial Statements”.

(c) The consolidated and consolidating balance sheets of Borrower, its Subsidiaries and such
other Persons described therein (including the accounts of all Subsidiaries for the respective
periods during which a subsidiary relationship existed) as of December 30, 2007, and the related
statements of income, changes in stockholder’s equity, and changes in cash flow for the period
ended on such date, all accompanied by reports thereon containing opinions without qualification by
independent certified public accountants, copies of which have been delivered to Agent, have been
prepared in accordance with GAAP, consistently applied (except for changes in application in which
such accountants concur) and present fairly the financial position of Borrower and its Subsidiaries
at such date and the results of their operations for such period. Since December 30, 2007 there
has been no change in the condition, financial or otherwise, of Borrower or its Subsidiaries as
shown on the consolidated balance sheet as of such date and no change in the aggregate value of
machinery, equipment and Real Property owned by Borrower and its Subsidiaries, except changes in
the Ordinary Course of Business, none of which individually or in the aggregate has been materially
adverse.

5.6. Entity Name and Locations.

Borrower has not been known by any other corporate name in the past five years and does not
sell Inventory under any other name, nor has Borrower been the surviving corporation of a merger or
consolidation or acquired all or substantially all of the assets of any Person during the preceding
five (5) years.

 

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5.7. O.S.H.A. and Environmental Compliance.

(a) Borrower has duly complied with, and its facilities, business, assets, property,
leaseholds, Real Property and Equipment are in compliance in all material respects with, the
provisions of the Federal Occupational Safety and Health Act, the Environmental Protection Act,
RCRA and all other Environmental Laws; there are no outstanding citations, notices or orders of
non-compliance issued to Borrower or relating to its business, assets, property, leaseholds or
Equipment under any such laws, rules or regulations.

(b) To Borrower’s knowledge, Borrower has been issued all required federal, state and local
licenses, certificates or permits relating to all applicable Environmental Laws.

(c) There are no visible signs of releases, spills, discharges, leaks or disposal
(collectively referred to as “Releases”) of Hazardous Substances at, upon, under or within
any Real Property or any premises leased by Borrower; (ii) there are no underground storage tanks
or polychlorinated biphenyls on the Real Property or any premises leased by Borrower; (iii) neither
the Real Property nor any premises leased by Borrower has not ever been used as a treatment,
storage or disposal facility of Hazardous Waste; and (iv) no Hazardous Substances are present on
the Real Property or any premises leased by Borrower, excepting such quantities as are handled in
accordance with all applicable manufacturer’s instructions and governmental regulations and in
proper storage containers and as are necessary for the operation of the commercial business of
Borrower or of its tenants.

5.8. Solvency; No Litigation, Violation, Indebtedness or Default.

(a) Borrower is solvent, able to pay its debts as they mature, has capital sufficient to carry
on its business and all businesses in which it is about to engage, and (i) as of the Closing Date,
the fair present saleable value of its assets, calculated on a going concern basis, is in excess of
the amount of its liabilities and (ii) subsequent to the Closing Date, the fair saleable value of
its assets (calculated on a going concern basis) will be in excess of the amount of its
liabilities.

(b) Except as disclosed in Schedule 5.8(b), Borrower has no (i) pending or, to the knowledge
of Borrower, threatened litigation, arbitration, actions or proceedings which are reasonably
expected to have a Material Adverse Effect, and (ii) liabilities or indebtedness for borrowed money
other than the Obligations.

(c) Borrower is not in violation of any applicable statute, law, rule, regulation or ordinance
in any respect which could reasonably be expected to have a Material Adverse Effect, nor is
Borrower in violation of any order of any court, Governmental Body or arbitration board or
tribunal.

 

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(d) Neither Borrower nor any member of the Controlled Group maintains or contributes to any
Plan other than those listed on Schedule 5.8(d) hereto. (i) No Plan has incurred any “accumulated
funding deficiency,” as defined in Section 302(a)(2) of ERISA and Section 412(a) of the Code,
whether or not waived, and Borrower and each member of the Controlled Group has met all applicable
minimum funding requirements under Section 302 of
ERISA in respect of each Plan; (ii) each Plan which is intended to be a qualified plan under
Section 401(a) of the Code as currently in effect has been determined by the Internal Revenue
Service to be qualified under Section 401(a) of the Code and the trust related thereto is exempt
from federal income tax under Section 501(a) of the Code; (iii) neither Borrower nor any member of
the Controlled Group has incurred any liability to the PBGC other than for the payment of premiums,
and there are no premium payments which have become due which are unpaid; (iv) no Plan has been
terminated by the plan administrator thereof nor by the PBGC, and there is no occurrence which
would cause the PBGC to institute proceedings under Title IV of ERISA to terminate any Plan; (v) at
this time, the current value of the assets of each Plan exceeds the present value of the accrued
benefits and other liabilities of such Plan and neither Borrower nor any member of the Controlled
Group knows of any facts or circumstances which would materially change the value of such assets
and accrued benefits and other liabilities; (vi) neither Borrower nor any member of the Controlled
Group has breached any of the responsibilities, obligations or duties imposed on it by ERISA with
respect to any Plan; (vii) neither Borrower nor any member of a Controlled Group has incurred any
liability for any excise tax arising under Section 4972 or 4980B of the Code, and no fact exists
which could give rise to any such liability; (viii) neither Borrower nor any member of the
Controlled Group nor any fiduciary of, nor any trustee to, any Plan, has engaged in a “prohibited
transaction” described in Section 406 of the ERISA or Section 4975 of the Code nor taken any action
which would constitute or result in a Termination Event with respect to any such Plan which is
subject to ERISA; (ix) Borrower and each member of the Controlled Group has made all contributions
due and payable with respect to each Plan; (x) there exists no event described in Section 4043(b)
of ERISA, for which the thirty (30) day notice period has not been waived; (xi) neither Borrower
nor any member of the Controlled Group has any fiduciary responsibility for investments with
respect to any plan existing for the benefit of persons other than employees or former employees of
Borrower and any member of the Controlled Group; (xii) neither Borrower nor any member of the
Controlled Group maintains or contributes to any Plan which provides health, accident or life
insurance benefits to former employees, their spouses or dependents, other than in accordance with
Section 4980B of the Code; (xiii) neither Borrower nor any member of the Controlled Group has
withdrawn, completely or partially, from any Multiemployer Plan so as to incur liability under the
Multiemployer Pension Plan Amendments Act of 1980 and there exists no fact which would reasonably
be expected to result in any such liability; and (xiv) no Plan fiduciary (as defined in Section
3(21) of ERISA) has any liability for breach of fiduciary duty or for any failure in connection
with the administration or investment of the assets of a Plan.

5.9. Patents, Trademarks, Copyrights and Licenses.

All patents, patent applications, trademarks, trademark applications, service marks, service
mark applications, copyrights, copyright applications, design rights, tradenames, assumed names,
trade secrets and licenses owned or utilized by Borrower are set forth on Schedule 5.9, are valid
and have been duly registered or filed with all appropriate Governmental Bodies and constitute all
of the intellectual property rights which are necessary for the operation of its business; there is
no objection to or pending challenge to the validity of any such patent, trademark, copyright,
design rights, tradename, trade secret or license and Borrower is not aware of any grounds for any
challenge. Each patent, patent application, patent license, trademark, trademark application,
trademark license, service mark, service mark application, service mark
license, design rights, copyright, copyright application and copyright license owned or held
by Borrower and all trade secrets used by Borrower consist of original material or property
developed by Borrower or was lawfully acquired by Borrower from the proper and lawful owner
thereof. Each of such items has been maintained so as to preserve the value thereof from the date
of creation or acquisition thereof. Borrower is not in possession of any source and object codes
related to any piece of software or the beneficiary of any source code escrow agreement.

 

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5.10. Licenses and Permits.

Borrower (a) is in material compliance with and (b) has procured and is now in possession of,
all material licenses or permits required by any applicable federal, state or local law, rule or
regulation for the operation of its business in each jurisdiction wherein it is now conducting or
proposes to conduct business and where the failure to procure such licenses or permits would
reasonably be expected to have a Material Adverse Effect.

5.11. Default of Indebtedness.

Borrower is not in default in the payment of the principal of or interest on any Indebtedness
or under any instrument or agreement under or subject to which any Indebtedness has been issued and
no event has occurred under the provisions of any such instrument or agreement which with or
without the lapse of time or the giving of notice, or both, constitutes or would constitute an
event of default thereunder, except where such default would not reasonably be expected to have a
Material Adverse Effect.

5.12. No Default.

Borrower is not in default in the payment or performance under any Material Contracts except
where such default would not reasonably be expected to have a Material Adverse Effect.

5.13. No Burdensome Restrictions.

Borrower is not party to any contract or agreement the performance of which would reasonably
be expected to have a Material Adverse Effect. Borrower has heretofore delivered to Agent true and
complete copies of all Material Contracts to which it is a party or to which it or any of its
properties is subject. Borrower has not agreed or consented to cause or permit in the future (upon
the happening of a contingency or otherwise) any of its property, whether now owned or hereafter
acquired, to be subject to a Lien which is not a Permitted Encumbrance.

5.14. No Labor Disputes.

Borrower is not involved in any labor dispute; there are no strikes or walkouts or union
organization of Borrower’s employees, to Borrower’s knowledge, threatened or in existence and no
labor contract is scheduled to expire during the Term.

 

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5.15. Margin Regulations.

Borrower is not engaged, nor will it engage, principally or as one of its important
activities, in the business of extending credit for the purpose of “purchasing” or “carrying” any
“margin stock” within the respective meanings of each of the quoted terms under Regulation U of the
Board of Governors of the Federal Reserve System as now and from time to time hereafter in effect.
No part of the proceeds of any Advance will be used for “purchasing” or “carrying” “margin stock”
as defined in Regulation U of such Board of Governors.

5.16. Investment Company Act.

Borrower is not an “investment company” registered or required to be registered under the
Investment Company Act of 1940, as amended, nor is it controlled by such a company.

5.17. Disclosure.

No representation or warranty made by Borrower in this Agreement, the Subordinated
Documentation or in any financial statement, report or certificate furnished in connection with
this Agreement or any of the Other Documents contains any untrue statement of a material fact or
omits to state any material fact necessary to make the statements herein or therein not misleading
except where such untrue statement or material omission would not reasonably be expected to have a
Material Adverse Effect. There is no fact known to Borrower or which reasonably should be known to
Borrower which Borrower has not disclosed to Agent in writing with respect to the transactions
contemplated by the Subordinated Documentation or this Agreement which could reasonably be expected
to have a Material Adverse Effect.

5.18. Delivery of Subordinated Documentation.

Agent has received complete copies of the Subordinated Documentation (including all exhibits,
schedules and disclosure letters referred to therein or delivered pursuant thereto, if any) and all
amendments thereto, waivers relating thereto and other side letters or agreements affecting the
terms thereof. None of such documents and agreements has been amended or supplemented, nor have
any of the provisions thereof been waived, except pursuant to a written agreement or instrument
which has heretofore been delivered to Agent.

5.19. Swaps.

Other than Permitted Currency Hedge Agreements and Lender Provided Hedges, Borrower is not a
party to, nor will it be a party to, any swap agreement whereby Borrower has agreed or will agree
to swap interest rates or currencies unless same provides that damages upon termination following
an event of default thereunder are payable on an unlimited “two-way basis” without regard to fault
on the part of either party.

 

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5.20. Conflicting Agreements.

No provision of any mortgage, indenture, contract, agreement, judgment, decree or order
binding on Borrower or affecting the Collateral conflicts with, or requires any Consent which has
not already been obtained to, or would in any way prevent the execution, delivery or performance
of, the terms of this Agreement or the Other Documents.

5.21. Application of Certain Laws and Regulations.

Neither Borrower or any of its Subsidiaries is a “holding company” or a “subsidiary company”
of a “holding company” or an “affiliate” of a “holding company” or of a “subsidiary company” of a
“holding company” within the meaning of the Public Utility Holding Company Act of 1935, as amended.

5.22. Business and Property of Borrower.

Upon and after the Closing Date, Borrower does not propose to engage in any business other
than that engaged by it immediately prior to and on the Closing Date.

5.23. Section 20 Subsidiaries.

Borrower does not intend to use and shall not use any portion of the proceeds of the Advances,
directly or indirectly, to purchase during the underwriting period, or for 30 days thereafter,
Ineligible Securities being underwritten by a Section 20 Subsidiary.

5.24. Anti-Terrorism Laws.

(a) General. Neither Borrower nor, to Borrower’s knowledge, any Affiliate of Borrower
is in violation of any Anti-Terrorism Law or engages in or conspires to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in any Anti-Terrorism Law.

(b) Executive Order No. 13224. Neither Borrower nor, to Borrower’s knowledge, any
Affiliate of Borrower or their respective agents acting or benefiting in any capacity in connection
with the Advances or other transactions hereunder, is any of the following (each a “Blocked
Person”):

(i) a Person that is listed in the annex to, or is otherwise subject to the provisions
of, the Executive Order No. 13224;

(ii) a Person owned or controlled by, or acting for or on behalf of, any Person that is
listed in the annex to, or is otherwise subject to the provisions of, the Executive Order
No. 13224;

(iii) a Person or entity with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law;

 

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(iv) a Person or entity that commits, threatens or conspires to commit or supports
“terrorism” as defined in the Executive Order No. 13224;

(v) a Person or entity that is named as a “specially designated national” on the most
current list published by the U.S. Treasury Department Office of Foreign Asset Control at
its official website or any replacement website or other replacement official publication of
such list, or

(vi) a Person or entity who is affiliated or associated with a Person or entity listed
above.

Neither Borrower or to the knowledge of Borrower, any of its agents acting in any capacity in
connection with the Advances or other transactions hereunder (i) conducts any business or engages
in making or receiving any contribution of funds, goods or services to or for the benefit of any
Blocked Person, or (ii) deals in, or otherwise engages in any transaction relating to, any property
or interests in property blocked pursuant to the Executive Order No. 13224.

5.25. Trading with the Enemy.

Borrower has not engaged, nor does it intend to engage, in any business or activity prohibited
by the Trading with the Enemy Act.

5.26. Commercial Tort Claims.

Borrower does not have any known commercial tort claims as of the Closing Date.

5.27. Partnership and Limited Liability Company Interests.

Except as previously disclosed in writing to Agent, none of the Subsidiary Stock consisting of
partnership or limited liability company interests (i) is dealt in or traded on a securities
exchange or in a securities market, (ii) by its terms expressly provides that it is a security
governed by Article 8 of the Uniform Commercial Code, (iii) is an investment company security,
(iv) is held in a securities account or (v) constitutes a “security” or a “financial asset” as such
terms are defined in Article 8 of the Uniform Commercial Code.

5.28. Material Contracts.

Set forth on Schedule 5.28, as updated from time to time, is a complete and accurate
list of all Material Contracts of Borrower and its Subsidiaries. All of the Material Contracts are
in full force and effect, and no material defaults currently exist thereunder.

 

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ARTICLE VI

AFFIRMATIVE COVENANTS

Borrower shall, until payment in full of the Obligations and termination of this Agreement:

6.1. Payment of Fees.

Pay to Agent on demand all usual and customary fees and expenses which Agent incurs in
connection with (a) the forwarding of Advance proceeds and (b) the establishment and maintenance of
any Blocked Accounts or Depository Accounts as provided for in Section 4.15(h). Agent may, without
making demand, charge Borrower’s Account for all such fees and expenses and will notify Borrower in
any reasonable manner of any such charges.

6.2. Conduct of Business and Maintenance of Existence and Assets.

(a) Conduct continuously and operate actively its business according to good business
practices and maintain all of its properties useful or necessary in its business in good working
order and condition (reasonable wear and tear excepted and except as may be disposed of in
accordance with the terms of this Agreement), including all licenses, patents, copyrights, design
rights, tradenames, trade secrets and trademarks and take all actions reasonably necessary to
enforce and protect the validity of any intellectual property right or other right included in the
Collateral; (b) keep in full force and effect its existence and comply in all material respects
with the laws and regulations governing the conduct of its business where the failure to do so
could reasonably be expected to have a Material Adverse Effect; and (c) make all such reports and
pay all such franchise and other taxes and license fees and do all such other acts and things as
may be lawfully required to maintain its rights, licenses, leases, powers and franchises under the
laws of the United States or any political subdivision thereof where the failure to do so could
reasonably be expected to have a Material Adverse Effect.

6.3. Violations.

Promptly after becoming aware thereof, notify Agent in writing of any violation of any law,
statute, regulation or ordinance of any Governmental Body, or of any agency thereof, applicable to
Borrower which could reasonably be expected to have a Material Adverse Effect.

6.4. Government Receivables.

Take all steps reasonably necessary to protect Agent’s interest in the Collateral under the
Federal Assignment of Claims Act, the Uniform Commercial Code and all other applicable state or
local statutes or ordinances and deliver to Agent appropriately endorsed, any instrument or chattel
paper connected with any Receivable arising out of contracts between Borrower and the United
States, any state or any department, agency or instrumentality of any of them.

 

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6.5. Fixed Charge Coverage Ratio.

Cause to be maintained a Fixed Charge Coverage Ratio of not less than 1.1 to 1.0 for (i) the
one fiscal quarter period ending on or about June 30, 2008; (ii) the two fiscal quarter period
ending on or about September 30, 2008; (iii) the three fiscal quarter period ending on or about
December 31, 2008 and (iv) each four fiscal quarter period ending on or about March 31, 2009 and
thereafter.

6.6. Execution of Supplemental Instruments.

Execute and deliver to Agent from time to time, upon demand, such supplemental agreements,
statements, assignments and transfers, or instructions or documents relating to the Collateral, and
such other instruments as Agent may reasonably request, in order that the full intent of this
Agreement may be carried into effect.

6.7. Payment of Indebtedness.

Pay, discharge or otherwise satisfy when due (subject, where applicable, to specified grace
periods and, in the case of the trade payables, to normal payment practices) all its obligations
and liabilities of whatever nature, except when the failure to do so could not reasonably be
expected to have a Material Adverse Effect or when the amount or validity thereof is currently
being Properly Contested.

6.8. Standards of Financial Statements.

Cause all financial statements referred to in Sections 9.7, 9.8, 9.9, 9.10, 9.11 and 9.12 as
to which GAAP is applicable to be complete and correct in all material respects (subject, in the
case of interim financial statements, to normal year-end audit adjustments) and to be prepared in
reasonable detail and in accordance with GAAP applied consistently throughout the periods reflected
therein (except as concurred in by such reporting accountants or officer, as the case may be, and
disclosed therein).

6.9. Leasehold Agreements.

Within sixty (60) days of the Closing Date, Borrower shall deliver to Agent landlord,
mortgagee or warehousemen agreements satisfactory to Agent with respect to all premises leased by
Borrower at which Inventory and books and records are located.

6.10. Interest Rate Hedge.

Within ninety (90) days of the Closing Date, Borrower shall enter into an Interest Rate Hedge
for at least $5,000,000. Documentation for the Interest Rate Hedge must conform to ISDA standards
and must be acceptable to Agent with respect to any intercreditor issues.

 

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6.11. Dissolution of Subsidiaries.

Within sixty (60) days of the Closing Date, Borrower will provide evidence to Agent that all
Domestic Subsidiaries of Borrower other than APAC Customer Services of Iowa, L.L.C. have been
dissolved.

ARTICLE VII

NEGATIVE COVENANTS

Borrower shall not, until satisfaction in full of the Obligations and termination of this
Agreement:

7.1 Merger, Consolidation, Acquisition and Sale of Assets.

(a) Enter into any merger, consolidation or other reorganization with or into any other Person
or acquire all or a substantial portion of the assets or Equity Interests of any Person or permit
any other Person to consolidate with or merge with it; provided, however, that
 Borrower and its Subsidiaries may merge or consolidate with and into each other so long as
(A) Borrower is the survivor, (B) if such merger or consolidation involves a Subsidiary of Borrower
that is a Borrower and a Subsidiary of Borrower which is not a Borrower, the Subsidiary that is a
Borrower is the survivor; and (C) Borrower shall have provided to Agent prior written notice of
such merger, consolidation or reorganization.

(b) Sell, lease, transfer or otherwise dispose of any of its properties or assets, except (i)
dispositions of Inventory and Equipment to the extent expressly permitted by Section 4.3 and (ii)
any other sales or dispositions expressly permitted by this Agreement.

7.2. Creation of Liens.

Create or suffer to exist any Lien or transfer upon or against any of its property or assets
now owned or hereafter acquired, except Permitted Encumbrances.

7.3. Guarantees.

Become liable upon the obligations or liabilities of any Person by assumption, endorsement or
guaranty thereof or otherwise (other than to Lenders) except (a) guarantees made in the Ordinary
Course of Business up to an aggregate amount of $250,000 and (b) the endorsement of checks in the
Ordinary Course of Business.

 

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7.4 Investments.

Purchase or acquire obligations or Equity Interests (except as permitted in Section 7.1) of,
or any other interest in, any Person, or make other investments except (a) obligations issued or
guaranteed by the United States of America or any agency thereof, (b) commercial paper with
maturities of not more than one hundred eighty (180) days and a published rating of not less
than A-1 or P-1 (or the equivalent rating), (c) certificates of time deposit and bankers’
acceptances having maturities of not more than one hundred eighty (180) days and repurchase
agreements backed by United States government securities of a commercial bank if (i) such bank has
a combined capital and surplus of at least $500,000,000, or (ii) its debt obligations, or those of
a holding company of which it is a Subsidiary, are rated not less than A (or the equivalent rating)
by a nationally recognized investment rating agency, (d) U.S. money market funds that invest solely
in obligations issued or guaranteed by the United States of America or an agency thereof,
(e) investments in respect of Interest Rate Hedges, (f) extensions of trade credit in the Ordinary
Course of Business, (g) loan and advances to officers and employees made in compliance with
Section 7.5, (h) advances, loans or extensions of credit between Borrowers made in compliance with
Section 7.5, (i) Permitted Currency Hedge Agreements and (i) Lender-Provided Interest Rate Hedges.

7.5. Loans.

Make advances, loans or extensions of credit to any Person, including any Parent, Subsidiary
or Affiliate except with respect to (a) the extension of commercial trade credit in connection with
the sale of Inventory in the Ordinary Course of Business and (b) loans to its employees in the
Ordinary Course of Business not to exceed the aggregate amount of $750,000 at any time outstanding.

7.6. Capital Expenditures.

Contract for, purchase or make any expenditure or commitments for Capital Expenditures in any
fiscal year in an aggregate amount in excess of (a) $6,800,000 for the fiscal year ending on or
about December 31, 2008 and (b) for each fiscal year thereafter an amount not to exceed sixty-five
percent (65%) of Borrower’s EBITDA for the prior fiscal year.

7.7. Dividends.

(a) Declare, pay or make any dividend or distribution on any shares of the common stock or
preferred stock of Borrower (other than dividends or distributions payable in its stock, or
split-ups or reclassifications of its stock) or apply any of its funds, property or assets to the
purchase, redemption or other retirement of any common or preferred stock, or of any options to
purchase or acquire any such shares of common or preferred stock of Borrower except that so long as
(a) a notice of termination with regard to this Agreement shall not be outstanding, (b) no Event of
Default or Default shall have occurred, and (c) the purpose for such purchase, redemption or
dividend shall be as set forth in writing to Agent at least ten (10) days prior to such purchase,
redemption or dividend and such purchase, redemption or dividend shall in fact be used for such
purpose, Borrower shall be permitted to make such purchase or redemption or pay dividends in
accordance with the provisions of Borrower’s Certificate of Incorporation as in effect on the
Closing Date.

 

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7.8. Indebtedness.

Create, incur, assume or suffer to exist any Indebtedness (exclusive of trade debt) [except in
respect of:

(a) Indebtedness to Lenders under this Agreement and the Other Documents;

(b) Indebtedness incurred for Capital Expenditures permitted under Section 7.6 hereof;

(c) Permitted Purchase Money Indebtedness;

(d) Indebtedness due under the Subordinated Documentation;

(e) Indebtedness described on Schedule 7.8 and any refinancings of such Indebtedness,
provided that the aggregate principal amount of such Indebtedness is not increased, the
scheduled maturity dates of such Indebtedness are not shortened and such refinancing is on
terms and conditions no more restrictive than the terms and conditions of the Indebtedness
being refinanced;

(f) Indebtedness under any Interest Rate Hedge; and

(g) Indebtedness under any Permitted Currency Hedge Agreement.

7.9. Nature of Business.

Substantially change the nature of the business in which it is presently engaged, nor except
as specifically permitted hereby purchase or invest, directly or indirectly, in any assets or
property other than in the Ordinary Course of Business for assets or property which are useful in,
necessary for and are to be used in its business as presently conducted.

7.10. Transactions with Affiliates.

Directly or indirectly, purchase, acquire or lease any property from, or sell, transfer or
lease any property to, make any payment to, or enter into any transaction or arrangement with, or
otherwise deal with, any Affiliate, except (a) payments in the Ordinary Course of Business to the
Borrower’s board of directors or provided to all directors on a consistent basis, (b) transactions
(i) contemplated by the Subordinated Documents or (ii) disclosed to the Agent, which are in the
Ordinary Course of Business, on an arm’s-length basis on terms and conditions no less favorable
than terms and conditions which would have been obtainable from a Person other than an Affiliate
and (c) other de-minimis transactions.

 

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7.11. Leases.

Enter as lessee into any lease arrangement for real or personal property (unless capitalized
and permitted under Section 7.6 hereof) if after giving effect thereto, aggregate
annual rental payments for all leased property would exceed (i) $ 12,500,000 for fiscal year
2008; (ii) $15,000,000 for fiscal year 2009; and (iii) $17,500,000 for fiscal year 2010 and for any
fiscal year thereafter.

7.12. Subsidiaries.

(a) Form any Subsidiary unless (i) such Subsidiary is a Domestic Subsidiary or a Foreign
Subsidiary whose inclusion in this transaction would not result in material adverse tax
consequences to Borrower, (ii) such Subsidiary becomes a Guarantor and pledges its assets and
Subsidiary Stock to Agent as Collateral and (iii) Agent shall have received all documents,
including, without limitation, legal opinions and appraisals it may reasonably require in
connection therewith.

(b) Enter into any partnership, joint venture or similar arrangement.

7.13. Fiscal Year and Accounting Changes.

Change its fiscal year or make any significant change (i) in accounting treatment and
reporting practices except as required by GAAP or (ii) in tax reporting treatment except as
required by law.

7.14. Pledge of Credit.

Now or hereafter pledge Agent’s or any Lender’s credit on any purchases or for any purpose
whatsoever or use any portion of any Advance in or for any business other than Borrower’s business
as conducted on the date of this Agreement.

7.15. Amendment of Organizational Documents.

Amend, modify or waive any material term or material provision of its Articles of
Incorporation or By-Laws or other organizational documents or adopt any resolution which would have
the effect of diminishing the rights of Agent or the Lenders under this Agreement or any Other
Documents.

7.16. Compliance with ERISA.

(i) (x) Maintain, or permit any member of the Controlled Group to maintain, or (y) become
obligated to contribute, or permit any member of the Controlled Group to become obligated to
contribute, to any Plan, other than those Plans disclosed on Schedule 5.8(d), (ii) engage, or
permit any member of the Controlled Group to engage, in any non-exempt “prohibited transaction”, as
that term is defined in section 406 of ERISA and Section 4975 of the Code, (iii) incur, or permit
any member of the Controlled Group to incur, any “accumulated funding deficiency”, as that term is
defined in Section 302 of ERISA or Section 412 of the Code, (iv) terminate, or permit any member of
the Controlled Group to terminate, any Plan where such event could result in any liability of
Borrower or any member of the Controlled Group or the imposition of a lien on the property of
Borrower or any member of the Controlled Group pursuant to Section 4068 of ERISA,

 

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(v) assume, or permit any member of the Controlled Group to
assume, any obligation to contribute to any Multiemployer Plan not disclosed on Schedule 5.8(d),
(vi) incur, or permit any member of the Controlled Group to incur, any withdrawal liability to any
Multiemployer Plan; (vii) fail promptly to notify Agent of the occurrence of any Termination Event,
(viii) fail to comply, or permit a member of the Controlled Group to fail to comply, with the
requirements of ERISA or the Code or other Applicable Laws in respect of any Plan, (ix) fail to
meet, or permit any member of the Controlled Group to fail to meet, all minimum funding
requirements under ERISA or the Code or postpone or delay or allow any member of the Controlled
Group to postpone or delay any funding requirement with respect of any Plan.

7.17. Prepayment of Indebtedness.

At any time, prepay, repurchase, redeem, retire or otherwise acquire, or make any payment on
account of any principal of, interest on or premium payable in connection with the prepayment or
redemption of any Indebtedness for borrowed money (other than Indebtedness owed to the Lender under
this Agreement or the Other Documents).

7.18. Anti-Terrorism Laws.

Borrower shall not, until satisfaction in full of the Obligations and termination of this
Agreement, nor shall it permit any Affiliate or agent to:

(a) Conduct any business or engage in any transaction or dealing with any Blocked
Person, including the making or receiving of any contribution of funds, goods or services to
or for the benefit of any Blocked Person.

(b) Deal in, or otherwise engage in any transaction relating to, any property or
interests in property blocked pursuant to the Executive Order No. 13224.

(c) Engage in or conspire to engage in any transaction that evades or avoids, or has
the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set
forth in the Executive Order No. 13224, the USA PATRIOT Act or any other Anti-Terrorism Law.
Borrower shall deliver to Lenders any certification or other evidence requested from time
to time by any Lender in its sole discretion, confirming Borrower’s compliance with this
Section.

7.19. Membership/Partnership Interests.

Elect to treat or permit any of its Subsidiaries to (x) treat its limited liability company
membership interests or partnership interests, as the case may be, as securities as contemplated by
the definition of “security” in Section 8-102(15) and by Section 8-103 of Article 8 of Uniform
Commercial Code or (y) certificate its limited liability company membership interests or
partnership interests, as the case may be.

 

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7.20. Trading with the Enemy Act.

Engage in any business or activity in violation of the Trading with the Enemy Act.

7.21. Subordinated Obligations.

At any time, directly or indirectly, pay, prepay, repurchase, redeem, retire or otherwise
acquire, or make any payment on account of any principal of, interest on or premium payable in
connection with the repayment or redemption of the Subordinated Obligations, except as expressly
permitted in the Subordination Agreement.

7.22. Other Agreements.

Enter into any material amendment, waiver or modification of (a) the Subordinated
Documentation or any related agreements, other than as permitted by the Subordination Agreement, or
(b) any Material Contract which would materially adversely affect the Collateral or would
reasonably be expected to have a Material Adverse Effect.

7.23 Additional Negative Pledges.

Create or otherwise cause or suffer to exist or become effective, directly or indirectly, (i)
any prohibition or restriction (including any agreement to provide equal and ratable security to
any other Person in the event a Lien is granted to or for the benefit of the Agent and the Lenders)
on the creation or existence of any Lien upon the assets of Borrower or any Guarantor, including,
without limitation, a Lien on Borrower’s interest in any Real Property, other than Permitted
Encumbrances or (ii) any contractual obligation which may restrict or inhibit the Agent’s rights or
ability to sell or otherwise dispose of the Collateral or any part thereof after the occurrence of
an Event of Default.

7.24. Additional Bank Accounts.

Open, maintain or otherwise have any checking, savings or other accounts at any bank or other
financial institution, or any other account where money is or may be deposited or maintained with
any Person, other than (a) the accounts set forth on Schedule 4.15(h), each of which shall be
subject to a blocked account arrangement with the depository institution, except to the extent
otherwise determined by Agent (b) deposit accounts established after the Closing Date that are
subject to a blocked account arrangement with the depository institution in form and substance
satisfactory to Agent, (c) other deposit accounts established after the Closing Date solely as
payroll and other zero balance accounts (d) the Philippines Accounts and (e) other deposit accounts
established after the Closing Date, so long as at any time the balance in any such account does not
exceed $10,000 and the aggregate balance in all such accounts does not exceed $50,000.

 

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ARTICLE VIII

CONDITIONS PRECEDENT

8.1. Conditions to Initial Advances.

The agreement of Lenders to make the initial Advances requested to be made on the Closing Date
is subject to the satisfaction, or waiver by Agent, immediately prior to or concurrently with the
making of such Advances, of the following conditions precedent:

(a) Loan Documents.

Agent shall have received the Agreement, the Notes and each of the Other Documents duly
executed and delivered by an authorized officer of Borrower;

(b) Filings, Registrations and Recordings.

Each document (including any Uniform Commercial Code financing statement) required by this
Agreement or any Other Document or reasonably requested by the Agent to be filed, registered or
recorded in order to create, in favor of Agent, a perfected security interest in or lien upon the
Collateral shall have been properly filed, registered or recorded in each jurisdiction in which the
filing, registration or recordation thereof is so required or requested, and Agent shall have
received an acknowledgment copy, or other evidence satisfactory to it, of each such filing,
registration or recordation and satisfactory evidence of the payment of any necessary fee, tax or
expense relating thereto;

(c) Corporate Proceedings of Borrower.

Agent shall have received a copy of the resolutions in form and substance reasonably
satisfactory to Agent, of the Board of Directors authorizing (i) the execution, delivery and
performance of this Agreement and each of the Other Documents and (ii) the granting by Borrower of
the security interests in and liens upon the Collateral in each case certified by the Secretary or
an Assistant Secretary of Borrower as of the Closing Date; and, such certificate shall state that
the resolutions thereby certified have not been amended, modified, revoked or rescinded as of the
date of such certificate;

(d) Incumbency Certificates of Borrower.

Agent shall have received a certificate of the Secretary or an Assistant Secretary of
Borrower, dated the Closing Date, as to the incumbency and signature of the officers of Borrower
executing this Agreement, the Other Documents, any certificate or other documents to be delivered
by it pursuant hereto, together with evidence of the incumbency of such Secretary or Assistant
Secretary;

 

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(e) Corporate or Company Proceedings of each Guarantor.

Agent shall have received a copy of the resolutions in form and substance reasonably
satisfactory to Agent, of the Board of Directors, Management Committee or Managing Member of each
Guarantor, as applicable, authorizing the execution, delivery and performance of the Guaranty and
each Other Document to which it is a party certified by the Secretary or an Assistant Secretary of
each Guarantor as of the Closing Date; and, such certificate shall state that the resolutions
thereby certified have not been amended, modified, revoked or rescinded as of the date of such
certificate;

(f) Incumbency Certificates of each Guarantor.

Agent shall have received a certificate of the Secretary or an Assistant Secretary of each
Guarantor, dated the Closing Date, as to the incumbency and signature of the officers of each
Guarantor executing this Agreement, any certificate or other documents to be delivered by it
pursuant hereto, together with evidence of the incumbency of such Secretary or Assistant Secretary;

(g) Certificates.

Agent shall have received a copy of the Articles or Certificate of Incorporation of Borrower
and each Guarantor, and all amendments thereto, certified by the Secretary of State or other
appropriate official of its jurisdiction of incorporation together with copies of the By-Laws of
Borrower and each Guarantor and all agreements of Borrower’s and each Guarantor’s shareholders
certified as accurate and complete by the Secretary of Borrower and such Guarantor;

(h) Good Standing Certificates.

Agent shall have received good standing certificates for Borrower and each Guarantor dated not
more than thirty (30) days prior to the Closing Date, issued by the Secretary of State or other
appropriate official of Borrower’s and each Guarantor’s jurisdiction of organization and each
jurisdiction where the conduct of Borrower’s and each Guarantor’s business activities or the
ownership of its properties necessitates qualification;

(i) Legal Opinion.

Agent shall have received the executed legal opinion of counsel to Borrower and Guarantor in
form and substance satisfactory to Agent which shall cover such matters incident to the
transactions contemplated by this Agreement, the Note, the Other Documents, the Guaranty, the
Subordination Agreement, and related agreements as Agent may reasonably require and Borrower hereby
authorizes and directs such counsel to deliver such opinions to Agent and Lenders;

 

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(j) No Litigation.

(i) No litigation, investigation or proceeding before or by any arbitrator or Governmental
Body shall be continuing or threatened against Borrower or against the officers or directors of
Borrower (A) in connection with this Agreement, the Other Documents, the Subordinated Loan
Documents or any of the transactions contemplated thereby and which, in the reasonable opinion of
Agent, is deemed material or (B) which could, in the reasonable opinion of Agent, have a Material
Adverse Effect; and (ii) no injunction, writ, restraining order or other order of any nature
materially adverse to Borrower or the conduct of its business or inconsistent with the due
consummation of the Transactions shall have been issued by any Governmental Body;

(k) Financial Condition Certificates.

Agent shall have received an executed Financial Condition Certificate in the form of
Exhibit 8.1(k);

(l) Collateral Examination.

Agent shall have completed Collateral examinations and received appraisals, the results of
which shall be satisfactory in form and substance to Lenders, of the Receivables, Inventory,
General Intangibles and Equipment of Borrower and all books and records in connection therewith;

(m) Fee.

Agent shall have received all fees payable to Agent and Lenders on or prior to the Closing
Date hereunder, including pursuant to Article III hereof and under the Fee Letter;

(n) Pro Forma Financial Statements.

Agent shall have received a copy of the Pro Forma Financial Statements which shall be
satisfactory in all respects to Lenders;

(o) Subordinated Loan Documents.

Agent shall have received final executed copies of the Subordinated Documentation, and all
related agreements, documents and instruments, together with all exhibits, schedules and amendments
thereto, as in effect on the Closing Date all of which shall be satisfactory in form and substance
to Agent and the transactions contemplated by such documentation shall be consummated prior to or
simultaneously with the making of the initial Advance;

(p) Subordination Agreements.

Agent shall have entered into a Subordination Agreement with Borrower and TCS which shall set
forth the basis upon which the TCS may receive, and Borrower may make, payments
under the Subordinated Obligations, which basis shall be satisfactory in form and substance to
Agent in its sole discretion;

 

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(q) Insurance.

Agent shall have received in form and substance satisfactory to Agent, certified copies of
Borrower’s casualty insurance policies, together with loss payable endorsements reasonably
acceptable to Agent naming Agent as loss payee, and certified copies of Borrower’s liability
insurance policies, together with endorsements naming Agent as a co-insured;

(r) Disbursement Agreement; Payment Instructions.

Agent shall have received written instructions from Borrower directing the application of
proceeds of the initial Advances made pursuant to this Agreement;

(s) Blocked Accounts.

Agent shall have received duly executed agreements establishing the Blocked Accounts or
Depository Accounts with financial institutions acceptable to Agent for the collection or servicing
of the Receivables and proceeds of the Collateral;

(t) Consents.

Agent shall have received any and all Consents necessary to permit the effectuation of the
transactions contemplated by this Agreement and the Other Documents; and, Agent shall have received
such Consents and waivers of such third parties as might assert claims with respect to the
Collateral, as Agent and its counsel shall deem necessary;

(u) No Adverse Material Change.

(i) Since December 30, 2007, there shall not have occurred any event, condition or state of
facts which could reasonably be expected to have a Material Adverse Effect and (ii) no
representations made or information supplied to Agent or Lenders shall have been proven to be
inaccurate or misleading in any material respect;

(v) Guarantees and Other Documents.

Agent shall have received (i) the executed Guaranty, (ii) the executed Guarantor Security
Agreement, and (iii) the executed Other Documents, all in form and substance satisfactory to Agent;

(w) Contract Review.

Agent shall have reviewed copies of all Material Contracts of Borrower requested by Agent
including leases, union contracts, labor contracts, vendor supply contracts, license
agreements, purchase and sale agreements and distributorship agreements and such contracts and
agreements shall be satisfactory in all respects to Agent;

 

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(x) Closing Certificate.

Agent shall have received a closing certificate signed by a Duly Authorized Officer dated as
of the date hereof stating, without limitation, that (i) all representations and warranties set
forth in this Agreement and the Other Documents are true and correct in all material respects on
and as of such date (except to the extent that such representations and warranties relate to an
earlier date), (ii) Borrower is on such date in compliance with all the terms and provisions set
forth in this Agreement and the Other Documents and (iii) on such date no Default or Event of
Default has occurred or is continuing;

(y) Borrowing Base.

Agent shall have received evidence from Borrower that the aggregate amount of Eligible
Receivables is sufficient in value and amount to support Advances in the amount requested by
Borrower on the Closing Date;

(z) Credit Enhancement Letter of Credit.

Agent shall have received the Credit Enhancement Letter of Credit in a form satisfactory to
Agent;

(aa) Undrawn Availability.

After giving effect to the initial Advances hereunder, Borrower shall have Undrawn
Availability of at least $7,500,000; and

(bb) Compliance with Laws.

Agent shall be reasonably satisfied that Borrower is in compliance with all pertinent federal,
state, local or territorial regulations, including those with respect to the Federal Occupational
Safety and Health Act, the Environmental Protection Act, ERISA and the Trading with the Enemy Act.

(cc) Other.

All corporate and other proceedings, and all documents, instruments and other legal matters in
connection with the Transactions shall be satisfactory in form and substance to Agent and its
counsel.

 

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8.2. Conditions to Each Advance.

The agreement of Lenders to make any Advance requested to be made on any date (including the
initial Advance), is subject to the satisfaction of the following conditions precedent as of the
date such Advance is made:

(a) Representations and Warranties.

Each of the representations and warranties made by Borrower in or pursuant to this Agreement,
the Other Documents and any related agreements to which it is a party, and each of the
representations and warranties contained in any certificate, document or financial or other
statement furnished at any time under or in connection with this Agreement, the Other Documents or
any related agreement shall be true and correct in all material respects on and as of such date as
if made on and as of such date; and

(b) No Default.

No Event of Default or Default shall have occurred and be continuing on such date, or would
exist after giving effect to the Advances requested to be made, on such date; provided, however
that Agent, in its sole discretion, may continue to make Advances notwithstanding the existence of
an Event of Default or Default and that any Advances so made shall not be deemed a waiver of any
such Event of Default or Default.

ARTICLE IX

INFORMATION AS TO BORROWER

Borrower shall, until satisfaction in full of the Obligations and the termination of this
Agreement:

9.1. Disclosure of Material Matters.

Promptly upon learning thereof, report to Agent all matters materially affecting the value,
enforceability or collectability of any portion of the Collateral, including Borrower’s reclamation
or repossession of, or the return to Borrower of, a material amount of goods or claims or disputes
asserted by any Customer or other obligor.

 

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9.2 Schedules.

Deliver to Agent on or before the fifteenth (15th) day of each month as and for the prior
month (a) accounts receivable ageings inclusive of reconciliations to the general ledger, (b)
accounts payable schedules inclusive of reconciliations to the general ledger, (c) a Borrowing Base
Certificate in form and substance satisfactory to Agent (which shall be calculated as of the last
day of the prior month and which shall not be binding upon Agent or restrictive of Agent’s rights
under this Agreement). In addition, Borrower will deliver to Agent (i) a weekly
Borrowing Base Certificate in form and substance satisfactory to Agent and (ii) at such
intervals as Agent may require: (A) confirmatory assignment schedules, (B) copies of Customer’s
invoices, (C) evidence of shipment or delivery, and (D) such further schedules, documents and/or
information regarding the Collateral as Agent may require including trial balances and test
verifications. Agent shall have the right to confirm and verify all Receivables by any manner and
through any medium it considers advisable and do whatever it may deem reasonably necessary to
protect its interests hereunder. The items to be provided under this Section are to be in form
satisfactory to Agent and executed by Borrower and delivered to Agent from time to time solely for
Agent’s convenience in maintaining records of the Collateral, and Borrower’s failure to deliver any
of such items to Agent shall not affect, terminate, modify or otherwise limit Agent’s Lien with
respect to the Collateral.

9.3. Environmental Reports.

In the event that Borrower obtains a fee interest in any Real Property only, furnish Agent,
concurrently with the delivery of the financial statements referred to in Sections 9.7 and 9.8, a
Compliance Certificate signed by the Chief Financial Officer or Controller of Borrower stating, to
the best of his knowledge, that Borrower is in compliance in all material respects with all
federal, state and local Environmental Laws. To the extent Borrower is not in material compliance
with the foregoing laws, the Compliance Certificate shall set forth with specificity all areas of
non-compliance and the proposed action Borrower will implement in order to achieve full compliance.

9.4. Litigation.

Promptly notify Agent in writing upon becoming aware of any claim, litigation, suit or
administrative proceeding affecting Borrower or any Guarantor, whether or not the claim is covered
by insurance, and of any litigations, suit or administrative proceeding, which in any such case
affects the Collateral or which could reasonably be expected to have a Material Adverse Effect.

9.5. Material Occurrences.

Promptly notify Agent in writing upon becoming aware of the occurrence of (a) any Event of
Default or Default; (b) any event of default under the Subordinated Documentation; (c) any event
which with the giving of notice or lapse of time or both, would constitute an event of default
under the Subordinated Documentation; (d) any event, development or circumstance whereby any
financial statements or other reports furnished to Agent fail in any material respect to present
fairly, in accordance with GAAP consistently applied, the financial condition or operating results
of Borrower as of the date of such statements; (e) any accumulated retirement plan funding
deficiency which, if such deficiency continued for two plan years and was not corrected as provided
in Section 4971 of the Code, could subject Borrower to a tax imposed by Section 4971 of the Code;
(f) each and every default by Borrower which might result in the acceleration of the maturity of
any Indebtedness, including the names and addresses of the holders of such Indebtedness with
respect to which there is a default existing or with respect to which the maturity has been or
could be accelerated, and the amount of such Indebtedness; and
(g) any other development in the business or affairs of Borrower or any Guarantor which could
reasonably be expected to have a Material Adverse Effect; in each case describing the nature
thereof and the action Borrower proposes to take with respect thereto.

 

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9.6. Government Receivables.

Notify Agent immediately if any of its Receivables arise out of contracts between Borrower and
the United States, any state, or any department, agency or instrumentality of any of them.

9.7. Annual Financial Statements.

Furnish Agent within one hundred twenty (120) days after the end of each fiscal year of
Borrower, consolidated and consolidating financial statements of Borrower including, but not
limited to, statements of income and stockholders’ equity and cash flow from the beginning of the
current fiscal year to the end of such fiscal year and the balance sheet as at the end of such
fiscal year, all prepared in accordance with GAAP applied on a basis consistent with prior
practices, and in reasonable detail and accompanied by a report and opinion (which report and
opinion shall be prepared in accordance with generally accepted auditing standards and shall not be
subject to any “going concern” or like assumption, qualification or exception as to scope of the
audit) of an independent certified public accounting firm selected by Borrower and satisfactory to
Agent (the “Accountants”).

9.8. Quarterly Financial Statements.

Furnish Agent within forty-five (45) days after the end of each fiscal quarter, an unaudited
balance sheet of Borrower and unaudited statements of income and stockholders’ equity and cash flow
of Borrower reflecting results of operations from the beginning of the fiscal year to the end of
such quarter and for such quarter, prepared on a basis consistent with prior practices and complete
and correct in all material respects, subject to normal and recurring year end adjustments that
individually and in the aggregate would not reasonably be expected to have a Material Adverse
Effect. The reports shall be accompanied by a Compliance Certificate.

9.9. Other Reports.

Furnish Agent as soon as available, but in any event within ten (10) days after the issuance
thereof, (i) with copies of such financial statements, reports and returns as Borrower shall send
to its stockholders and (ii) copies of all notices, reports, financial statements and other
materials sent pursuant to the Subordinated Documentation.

9.10. Additional Information.

Furnish Agent with such additional information as Agent shall reasonably request in order to
enable Agent to determine whether the terms, covenants, provisions and conditions of this Agreement
and the Notes have been complied with by Borrower including, without the necessity of any request
by Agent, (a) at least thirty (30) days prior thereto, notice of Borrower’s
opening of any new office or place of business or Borrower’s closing of any existing office or
place of business, and (b) promptly upon Borrower’s learning thereof, notice of any labor dispute
to which Borrower may become a party, any strikes or walkouts relating to any of its plants or
other facilities, and the expiration of any labor contract to which Borrower is a party or by which
Borrower is bound.

 

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9.11. Projected Operating Budget.

Furnish Agent, no later than thirty (30) days prior to the beginning of Borrower’s fiscal
years commencing with fiscal year 2009, a month by month projected operating budget and cash flow
of Borrower for such fiscal year (including an income statement for each month and a balance sheet
as at the end of the last month in each fiscal quarter), such projections to be accompanied by a
certificate signed by a Duly Authorized Officer to the effect that such projections have been
prepared on the basis of sound financial planning practice consistent with past budgets and
financial statements and that such officer has no reason to question the reasonableness of any
material assumptions on which such projections were prepared.

9.12. Variances From Operating Budget.

Furnish Agent, concurrently with the delivery of the financial statements referred to in
Section 9.7 and each quarterly report, a written report summarizing all material variances from
budgets submitted by Borrower pursuant to Section 9.11 and a discussion and analysis by management
with respect to such variances.

9.13. Notice of Suits, Adverse Events.

Furnish Agent with prompt written notice upon becoming aware of (i) any lapse or other
termination of any Consent issued to Borrower by any Governmental Body or any other Person that
would reasonably be expected to have a Material Adverse Effect, (ii) any refusal by any
Governmental Body or any other Person to renew or extend any such Consent that would reasonably be
expected to have a Material Adverse Effect; and (iii) copies of any periodic or special reports
filed by Borrower or any Guaranty with any Governmental Body or Person, if such reports indicate
any material change in the business, operations, affairs or condition of Borrower or any Guaranty,
or if copies thereof are requested by Lender, and (iv) copies of any material notices and other
communications from any Governmental Body or Person which specifically relate to Borrower or any
Guaranty.

 

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9.14. ERISA Notices and Requests.

Furnish Agent with prompt written notice upon becoming aware that (i) Borrower or any member
of the Controlled Group knows or has reason to know that a Termination Event has occurred, together
with a written statement describing such Termination Event and the action, if any, which Borrower
or any member of the Controlled Group has taken, is taking, or proposes to take with respect
thereto and, when known, any action taken or threatened by the Internal Revenue Service, Department
of Labor or PBGC with respect thereto, (ii) Borrower or any member of the Controlled Group knows or
has reason to know that a prohibited transaction (as
defined in Sections 406 of ERISA and 4975 of the Code) has occurred together with a written
statement describing such transaction and the action which Borrower or any member of the Controlled
Group has taken, is taking or proposes to take with respect thereto, (iii) a funding waiver request
has been filed with respect to any Plan together with all communications received by Borrower or
any member of the Controlled Group with respect to such request, (iv) any increase in the benefits
of any existing Plan or the establishment of any new Plan or the commencement of contributions to
any Plan to which Borrower or any member of the Controlled Group was not previously contributing
shall occur, (v) Borrower or any member of the Controlled Group shall receive from the PBGC a
notice of intention to terminate a Plan or to have a trustee appointed to administer a Plan,
together with copies of each such notice, (vi) Borrower or any member of the Controlled Group shall
receive any favorable or unfavorable determination letter from the Internal Revenue Service
regarding the qualification of a Plan under Section 401(a) of the Code, together with copies of
each such letter; (vii) Borrower or any member of the Controlled Group shall receive a notice
regarding the imposition of withdrawal liability, together with copies of each such notice; (viii)
Borrower or any member of the Controlled Group shall fail to make a required installment or any
other required payment under Section 412 of the Code on or before the due date for such installment
or payment; (ix) Borrower or any member of the Controlled Group knows that (a) a Multiemployer Plan
has been terminated, (b) the administrator or plan sponsor of a Multiemployer Plan intends to
terminate a Multiemployer Plan, or (c) the PBGC has instituted or will institute proceedings under
Section 4042 of ERISA to terminate a Multiemployer Plan.

9.15. Additional Documents.

Execute and deliver to Agent, upon request, such documents and agreements as Agent may, from
time to time, reasonably request to carry out the purposes, terms or conditions of this Agreement.

ARTICLE X

EVENTS OF DEFAULT

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

10.1. Nonpayment.

Failure by Borrower to pay any principal or interest on the Obligations when due, whether at
maturity or by reason of acceleration pursuant to the terms of this Agreement or by notice of
intention to prepay, or by required prepayment or failure to pay when due any other liabilities or
make any other payment, fee or charge provided for herein when due or in any Other Document;

 

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10.2. Breach of Representation.

Any representation or warranty made or deemed made by Borrower or any Guarantor in this
Agreement, any Other Document or any related agreement or in any certificate, document or financial
or other statement furnished at any time in connection herewith or therewith shall prove to have
been misleading in any material respect on the date when made or deemed to have been made;

10.3. Reserved.

10.4. Judicial Actions.

Issuance of a notice of Lien, levy, assessment, injunction or attachment against a material
portion of Borrower’s Receivables or against a material portion of Borrower’s other property which
is not stayed or lifted within sixty (60) days;

10.5. Noncompliance.

Except as otherwise provided for in Section 10.1 or Section 10.3:

(a) failure or neglect of Borrower or Guarantor to perform, keep or observe any term,
provision, condition, or covenant, contained in Sections 6.2(b), 6.5, 7.1, 7.2, 7.3, 7.8,
7.10, 7.17, 7.21, 7.22 or 7.23, or

(b) failure or neglect of Borrower or Guarantor to perform, keep or observe any term,
provision, condition, or covenant, contained in Sections 4.10 or 6.6 or in Article 7 or 9
hereof other than those specified in Section 10.5(a), provided, however, with respect to any
such matter which is capable of cure, is not cured within five (5) days from the earlier to
occur of (A) receipt by Borrower or Guarantor of written notice thereof from Agent or any
Lender and (B) the date upon which Borrower or Guarantor or any of their officers obtains
knowledge thereof, or

(c) failure or neglect of Borrower to perform, keep or observe any term, provision,
condition or covenant contained herein or any Other Document that, if such term, provision,
condition or covenant is capable of cure, is not cured within thirty (30) days from the
earlier to occur of (A) receipt by Borrower of written notice thereof from Agent or any
Lender and (B) the date upon which Borrower obtains knowledge thereof, or within such
reasonably longer period as may be required to cure same (so long as cure is commenced
within the thirty-day period and thereafter is prosecuted to completion with reasonable
diligence);

 

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10.6. Judgments.

Any judgment or judgments are rendered against Borrower or any Guarantor for an aggregate
amount in excess of $500,000 and (i) enforcement proceedings shall have been
commenced by a creditor upon such judgment, (ii) there shall be any period of sixty (60)
consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal
or otherwise, shall not be in effect, or (iii) any such judgment results in the creation of a Lien
upon any of the Collateral (other than a Permitted Encumbrance);

10.7. Bankruptcy.

Borrower or any Guarantor or any Subsidiary of Borrower shall (i) apply for, consent to or
suffer the appointment of, or the taking of possession by, a receiver, custodian, trustee,
liquidator or similar fiduciary of itself or of all or a substantial part of its property, (ii)
make a general assignment for the benefit of creditors, (iii) commence a voluntary case under any
state or federal bankruptcy laws (as now or hereafter in effect), (iv) be adjudicated a bankrupt or
insolvent, (v) file a petition seeking to take advantage of any other law providing for the relief
of debtors, (vi) acquiesce to, or fail to have dismissed, within sixty (60) days, any petition
filed against it in any involuntary case under such bankruptcy laws, or (vii) take any action for
the purpose of effecting any of the foregoing;

10.8. Inability to Pay.

Borrower or any Guarantor or any Subsidiary of Borrower shall admit in writing its inability,
or be generally unable, to pay its debts as they become due or cease operations of its present
business;

10.9. Affiliate Bankruptcy.

Any Subsidiary of Borrower or any Guarantor, shall (i) apply for, consent to or suffer the
appointment of, or the taking of possession by, a receiver, custodian, trustee, liquidator or
similar fiduciary of itself or of all or a substantial part of its property, (ii) admit in writing
its inability, or be generally unable, to pay its debts as they become due or cease operations of
its present business, (iii) make a general assignment for the benefit of creditors, (iv) commence a
voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect), (v) be
adjudicated a bankrupt or insolvent, (vi) file a petition seeking to take advantage of any other
law providing for the relief of debtors, (vii) acquiesce to, or fail to have dismissed, within
sixty (60) days, any petition filed against it in any involuntary case under such bankruptcy laws,
or (viii) take any action for the purpose of effecting any of the foregoing;

10.10. Material Adverse Effect.

Any Material Adverse Effect has occurred or is continuing;

10.11. Lien Priority.

Any Lien created hereunder or under any Other Document or provided for hereby or thereby or
under any related agreement for any reason ceases to be or is not a valid and perfected Lien having
a first priority interest or Borrower or any other Person acting on its behalf shall so claim;

 

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10.12. Subordinated Documentation Default.

An event of default has occurred under the Subordinated Documentation or the Subordination
Agreement, which default shall not have been cured or waived within any applicable grace period and
for which TCS is permitted to take action under the Subordination Agreement;

10.13. Cross Default.

A default of the obligations of Borrower under any other agreement to which it is a party
shall occur which could reasonably be expected to have a Material Adverse Effect which default is
not cured within any applicable grace period;

10.14. Breach of Guaranty.

Termination or breach of any Guaranty or Guaranty Security Agreement or similar agreement
executed and delivered to Agent in connection with the Obligations of Borrower, or if any Guarantor
attempts to terminate, challenges the validity of, or its liability under, any such Guaranty or
Guaranty Security Agreement or similar agreement;

10.15. Change of Control.

Any Change of Control shall occur;

10.16. Invalidity.

Any material provision of this Agreement or any Other Document shall, for any reason, cease to
be valid and binding on Borrower or any Guarantor, or Borrower or any Guarantor or any Person
acting on their behalf shall so claim;

10.17. Licenses.

(i) Any Governmental Body shall (A) revoke, terminate, suspend or adversely modify any
license, permit, patent trademark or tradename of Borrower or any Guarantor the continuation of
which is material to the continuation of Borrower’s or such Guarantor’s business, or (B) commence
proceedings to suspend, revoke, terminate or adversely modify any such license, permit, trademark,
tradename or patent and such proceedings shall not be dismissed or discharged within sixty (60)
days, or (C) schedule or conduct a hearing on the renewal of any license, permit, trademark,
tradename or patent necessary for the continuation of Borrower’s or any Guarantor’s business and
the staff of such Governmental Body issues a report recommending the termination, revocation,
suspension or material, adverse modification of such license, permit, trademark, tradename or
patent; (ii) any agreement which is necessary or material to the operation of Borrower’s or any
Guarantor’s business shall be revoked or terminated and not replaced by a substitute acceptable to
Agent within thirty (30) days after the date of such revocation or termination, and, in each case
with respect to the foregoing clause (i)
and (ii) such revocation, termination, suspension or modification has (or with respect to
clause (ii)(B) and (i)(C) would reasonably be expected to have a Material Adverse Effect);

 

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10.18. Seizures.

Any material portion of the Collateral shall be seized or taken by a Governmental Body, or
Borrower or any Guarantor or the title and rights of Borrower, any Guarantor or any Original Owner
which is the owner of any material portion of the Collateral shall have become the subject matter
of claim, litigation, suit or other proceeding which might, in the opinion of Agent, upon final
determination, result in impairment or loss of the security provided by this Agreement or the Other
Documents;

10.19. Pension Plans.

An event or condition specified in Sections 7.16 or 9.15 hereof shall occur or exist with
respect to any Plan and, as a result of such event or condition, together with all other such
events or conditions, Borrower or any member of the Controlled Group shall incur, or in the opinion
of Agent be reasonably likely to incur, a liability to a Plan or the PBGC (or both) which, in the
reasonable judgment of Agent, would have a Material Adverse Effect; or

10.20. Credit Enhancement Amount.

The Credit Enhancement Amount shall at any time be less than the Required Credit Enhancement
Amount at such time.

ARTICLE XI

LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT

11.1. Rights and Remedies.

(a) Upon the occurrence of (i) an Event of Default pursuant to Section 10.7 all Obligations
shall be immediately due and payable and this Agreement and the obligation of Lenders to make
Advances shall be deemed terminated; and, (ii) any of the other Events of Default and at any time
thereafter (such default not having previously been cured), at the option of Required Lenders all
Obligations shall be immediately due and payable and Lenders shall have the right to terminate this
Agreement and to terminate the obligation of Lenders to make Advances and (iii) a filing of a
petition against Borrower in any involuntary case under any state or federal bankruptcy laws, all
Obligations shall be immediately due and payable and the obligation of Lenders to make Advances
hereunder shall be terminated other than as may be required by an appropriate order of the
bankruptcy court having jurisdiction over Borrower. Upon the occurrence of any Event of Default,
Agent shall have the right to exercise any and all rights and remedies provided for herein, under
the Other Documents, under the Uniform Commercial Code and at law or equity generally, including
the right to foreclose the security interests granted herein and to realize upon any Collateral by
any available judicial procedure
and/or to take possession of and sell any or all of the Collateral with or without judicial
process.

 

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Agent may enter any of Borrower’s premises or other premises without legal process and
without incurring liability to Borrower therefor, and Agent may thereupon, or at any time
thereafter, in its discretion without notice or demand, take the Collateral and remove the same to
such place as Agent may deem advisable and Agent may require Borrower to make the Collateral
available to Agent at a convenient place. With or without having the Collateral at the time or
place of sale, Agent may sell the Collateral, or any part thereof, at public or private sale, at
any time or place, in one or more sales, at such price or prices, and upon such terms, either for
cash, credit or future delivery, as Agent may elect. Except as to that part of the Collateral
which is perishable or threatens to decline speedily in value or is of a type customarily sold on a
recognized market, Agent shall give Borrower reasonable notification of such sale or sales, it
being agreed that in all events written notice mailed to Borrower at least ten (10) days prior to
such sale or sales is reasonable notification. At any public sale Agent or any Lender may bid for
and become the purchaser, and Agent, any Lender or any other purchaser at any such sale thereafter
shall hold the Collateral sold absolutely free from any claim or right of whatsoever kind,
including any equity of redemption and all such claims, rights and equities are hereby expressly
waived and released by Borrower. In connection with the exercise of the foregoing remedies,
including the sale of Inventory, Agent is granted a perpetual nonrevocable, royalty free,
nonexclusive license and Agent is granted permission to use all of Borrower’s (a) trademarks, trade
styles, trade names, patents, patent applications, copyrights, service marks, licenses, franchises
and other proprietary rights which are used or useful in connection with Inventory for the purpose
of marketing, advertising for sale and selling or otherwise disposing of such Inventory and (b)
Equipment for the purpose of completing the manufacture of unfinished goods. The cash proceeds
realized from the sale of any Collateral shall be applied to the Obligations in the order set forth
in Section 11.5 hereof. Noncash proceeds will only be applied to the Obligations as they are
converted into cash. If any deficiency shall arise, Borrower shall remain liable to Agent and
Lenders therefor.

(b) To the extent that Applicable Law imposes duties on the Agent to exercise remedies in a
commercially reasonable manner, Borrower acknowledges and agrees that it is not commercially
unreasonable for the Agent (i) to fail to incur expenses reasonably deemed significant by the Agent
to prepare Collateral for disposition or otherwise to complete raw material or work in process into
finished goods or other finished products for disposition, (ii) to fail to obtain third party
consents for access to Collateral to be disposed of, or to obtain or, if not required by other law,
to fail to obtain governmental or third party consents for the collection or disposition of
Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against
Customers or other Persons obligated on Collateral or to remove Liens on or any adverse claims
against Collateral, (iv) to exercise collection remedies against Customers and other Persons
obligated on Collateral directly or through the use of collection agencies and other collection
specialists, (v) to advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other
Persons, whether or not in the same business as the Borrower, for expressions of interest in
acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the Collateral is of a specialized
nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of
assets of the types included in the Collateral or that have the reasonable capacity of doing so, or
that
match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail
markets,

 

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(x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi)
to purchase insurance or credit enhancements to insure the Agent against risks of loss, collection
or disposition of Collateral or to provide to the Agent a guaranteed return from the collection or
disposition of Collateral, or (xii) to the extent deemed appropriate by the Agent, to obtain the
services of other brokers, investment bankers, consultants and other professionals to assist the
Agent in the collection or disposition of any of the Collateral. Borrower acknowledges that the
purpose of this Section 11.1(b) is to provide non-exhaustive indications of what actions or
omissions by the Agent would not be commercially unreasonable in the Agent’s exercise of remedies
against the Collateral and that other actions or omissions by the Agent shall not be deemed
commercially unreasonable solely on account of not being indicated in this Section 11.1(b).
Without limitation upon the foregoing, nothing contained in this Section 11.1(b) shall be construed
to grant any rights to Borrower or to impose any duties on Agent that would not have been granted
or imposed by this Agreement or by Applicable Law in the absence of this Section 11.1(b).

11.2. Agent’s Discretion.

Subject to the rights of the Lenders under this Agreement and the Other Documents, Agent shall
have the right in its sole discretion to determine which rights, Liens, security interests or
remedies Agent may at any time pursue, relinquish, subordinate, or modify or to take any other
action with respect thereto and such determination will not in any way modify or affect any of
Agent’s or Lenders’ rights hereunder.

11.3. Setoff.

Subject to Section 14.12, in addition to any other rights which Agent or any Lender may have
under Applicable Law, upon the occurrence and continuance of an Event of Default hereunder, Agent
and such Lender shall have a right, immediately and without notice of any kind, to apply Borrower’s
property held by Agent and such Lender to reduce the Obligations. Agent agrees that if an Event of
Default is cured Agent will not initiate additional set-off rights in connection with such Event of
Default.

11.4. Rights and Remedies not Exclusive.

The enumeration of the foregoing rights and remedies is not intended to be exhaustive and the
exercise of any rights or remedy shall not preclude the exercise of any other right or remedies
provided for herein or otherwise provided by law, all of which shall be cumulative and not
alternative.

 

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11.5. Allocation of Payments After Event of Default.

Notwithstanding any other provisions of this Agreement to the contrary, after the occurrence
and during the continuance of an Event of Default, all amounts collected or received by the Agent
on account of the Obligations or any other amounts outstanding under any of the
Other Documents or in respect of the Collateral may, at Agent’s discretion, be paid over or
delivered as follows:

FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including reasonable
attorneys’ fees) of the Agent in connection with enforcing its rights and the rights of the Lenders
under this Agreement and the Other Documents and any protective advances made by the Agent with
respect to the Collateral under or pursuant to the terms of this Agreement;

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

THIRD, to the payment of all reasonable out-of-pocket costs and expenses (including reasonable
attorneys’ fees) of each of the Lenders in connection with enforcing its rights under this
Agreement and the Other Documents or otherwise with respect to the Obligations owing to such
Lender;

FOURTH, to the payment of all of the Obligations consisting of accrued fees and interest;

FIFTH, to the payment of the outstanding principal amount of the Obligations (including the
payment or cash collateralization of any outstanding Letters of Credit), to breakage, termination
or other payments, and any interest accrued thereon, due under any Lender-Provided Interest Rate
Hedge, to the extent such Lender-Provided Interest Rate Hedge is permitted by Section 7.8, and to
amounts due under any Cash Management Products;

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

SEVENTH, all obligations under the Subordinated Documentation; and

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

In carrying out the foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (ii) each of the
Lenders shall receive (so long as it is not a Defaulting Lender) an amount equal to its pro rata
share (based on the proportion that the then outstanding Advances held by such Lender bears to the
aggregate then outstanding Advances) of amounts available to be applied pursuant to clauses
“FOURTH”, “FIFTH” and “SIXTH” above; and (iii) to the extent that any amounts available for
distribution pursuant to clause “FIFTH” above are attributable to the issued but undrawn amount of
outstanding Letters of Credit, such amounts shall be held by the Agent in a cash collateral account
and applied (A) first, to reimburse the Issuer from time to time for any drawings under such
Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other
obligations of the types described in clauses “FIFTH” and “SIXTH” above in the manner provided in
this Section 11.5.

 

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ARTICLE XII

WAIVERS AND JUDICIAL PROCEEDINGS

12.1. Waiver of Notice.

Agent shall use its commercially reasonable efforts to provide Borrower with notice of
non-payment of any of the Receivables, demand, presentment, protest and notice thereof with respect
to any and all instruments, notice of acceptance hereof, notice of loans or advances made, credit
extended, Collateral received or delivered, or any other action taken in reliance hereon, and all
other demands and notices of any description, except such as are expressly provided for herein.

12.2. Delay.

No delay or omission on Agent’s or any Lender’s part in exercising any right, remedy or option
shall operate as a waiver of such or any other right, remedy or option or of any Default or Event
of Default. No Out-of-Formula Loan or protective advance made during the existence of a Default or
an Event of Default shall operate as a waiver of any such Default or Event of Default.

12.3. Jury Waiver.

EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED
WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH, 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 AND EACH PARTY HEREBY
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE WAIVER
OF THEIR RIGHT TO TRIAL BY JURY.

 

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ARTICLE XIII

EFFECTIVE DATE AND TERMINATION.

13.1. Term.

This Agreement, which shall inure to the benefit of and shall be binding upon the respective
successors and permitted assigns of Borrower, Agent and each Lender, shall become effective on the
date hereof and shall continue in full force and effect until May
 _____, 2011 (the “Term”)
unless sooner terminated as herein provided. Borrower may terminate this Agreement at any time
upon forty-five (45) days’ prior written notice (the “Required Notice Day”) upon payment in full of
the Obligations. In the event Borrower notifies Agent of its intent to terminate this Agreement on
a day after the Required Notice Day (the “Actual Notice Day”) then Borrower shall be charged a fee
equal to the then prevailing Interest Rate for Eurodollar Loans times the average outstanding
Advances for each day that the Actual Notice Day is less than the Required Notice Day (by way of
example if Borrower provides only thirty (30) days prior written notice then Borrower will be
charged a fee equal to the then Interest Rate for Eurodollar Loans for the average outstanding
Advances for fifteen (15) days). Notwithstanding the foregoing, Agent will not require any prior
written notice if Borrower is terminating this Agreement as a result of Agent decreasing the
Advance Rates as set forth in Section 2.1(b).

13.2. Termination.

The termination of the Agreement shall not affect Borrower’s, Agent’s or any Lender’s rights,
or any of the Obligations having their inception prior to the effective date of such termination,
and the provisions hereof shall continue to be fully operative until all transactions entered into,
rights or interests created or Obligations (other than contingent indemnity claims not yet asserted
or threatened) have been fully and indefeasibly paid, disposed of, concluded or liquidated. The
security interests, Liens and rights granted to Agent and Lenders hereunder and the financing
statements filed hereunder shall continue in full force and effect, notwithstanding the termination
of this Agreement or the fact that Borrower’s Account may from time to time be temporarily in a
zero or credit position, until all of the Obligations (other than contingent indemnity claims not
yet asserted or threatened) have been indefeasibly paid and performed in full after the termination
of this Agreement or Borrower has furnished Agent and Lenders with an indemnification satisfactory
to Agent and Lenders with respect thereto. Accordingly, Borrower waives any rights which it may
have under the Uniform Commercial Code to demand the filing of termination statements with respect
to the Collateral, and Agent shall not be required to send such termination statements to Borrower,
or to file them with any filing office, unless and until this Agreement shall have been terminated
in accordance with its terms and all Obligations (other than contingent indemnity claims not yet
asserted or threatened) have been indefeasibly paid in full in immediately available funds. All
representations, warranties, covenants, waivers and agreements contained herein shall survive
termination hereof until all Obligations (other than contingent indemnity claims not yet asserted
or threatened) are indefeasibly paid and performed in full.

 

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ARTICLE XIV

REGARDING AGENT

14.1. Appointment.

Each Lender hereby designates PNC to act as Agent for such Lender under this Agreement and the
Other Documents. Each Lender hereby irrevocably authorizes Agent to take such action on its behalf
under the provisions of this Agreement and the Other Documents and to exercise such powers and to
perform such duties hereunder and thereunder as are specifically delegated to or required of Agent
by the terms hereof and thereof and such other powers as are reasonably incidental thereto and
Agent shall hold all Collateral, payments of principal and interest, fees (except the fees set
forth in the Fee Letter), charges and collections (without giving effect to any collection days)
received pursuant to this Agreement, for the ratable benefit of Lenders. Agent may perform any of
its duties hereunder by or through its agents or employees. As to any matters not expressly
provided for by this Agreement (including collection of the Note) 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; provided, however, that Agent shall not
be required to take any action which exposes Agent to liability or which is contrary to this
Agreement or the Other Documents or Applicable Law unless Agent is furnished with an
indemnification reasonably satisfactory to Agent with respect thereto. In furtherance and not in
limitation of the foregoing each of the Lenders hereby acknowledges that it has received a copy of
the Subordination Agreement and hereby authorizes Agent to enter into the Subordination Agreement
on its behalf.

14.2. Nature of Duties.

Agent shall have no duties or responsibilities except those expressly set forth in this
Agreement and the Other Documents. Neither Agent nor any of its officers, directors, employees or
agents shall be (i) liable for any action taken or omitted by them as such hereunder or in
connection herewith, unless caused by their gross (not mere) negligence or willful misconduct (as
determined by a court of competent jurisdiction in a final non-appealable judgment), or (ii)
responsible in any manner for any recitals, statements, representations or warranties made by
Borrower or any officer thereof contained in this Agreement, or in any of the Other Documents or in
any certificate, report, statement or other document referred to or provided for in, or received by
Agent under or in connection with, this Agreement or any of the Other Documents or for the value,
validity, effectiveness, genuineness, due execution, enforceability or sufficiency of this
Agreement, or any of the Other Documents or for any failure of Borrower to perform its obligations
hereunder. Agent shall not be under any obligation to any Lender to ascertain or to inquire as to
the observance or performance of any of the agreements contained in, or conditions of, this
Agreement or any of the Other Documents, or to inspect the properties, books or records of
Borrower. The duties of Agent as respects the Advances to Borrower shall be mechanical and
administrative in nature; Agent shall not have by reason of this Agreement a fiduciary relationship
in respect of any Lender; and nothing in this Agreement,
expressed or implied, is intended to or shall be so construed as to impose upon Agent any
obligations in respect of this Agreement except as expressly set forth herein.

 

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14.3. Lack of Reliance on Agent and Resignation.

Independently and without reliance upon Agent or any other Lender, each Lender has made and
shall continue to make (i) its own independent investigation of the financial condition and affairs
of Borrower and each Guarantor in connection with the making and the continuance of the Advances
hereunder and the taking or not taking of any action in connection herewith, and (ii) its own
appraisal of the creditworthiness of Borrower and each Guarantor. Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Lender with any credit or
other information with respect thereto, whether coming into its possession before making of the
Advances or at any time or times thereafter except as shall be provided by Borrower pursuant to the
terms hereof. Agent shall not be responsible to any Lender for any recitals, statements,
information, representations or warranties herein or in any agreement, document, certificate or a
statement delivered in connection with or for the execution, effectiveness, genuineness, validity,
enforceability, collectability or sufficiency of this Agreement or any Other Document, or of the
financial condition of Borrower or any Guarantor, or be required to make any inquiry concerning
either the performance or observance of any of the terms, provisions or conditions of this
Agreement, the Note, the Other Documents or the financial condition of Borrower, or the existence
of any Event of Default or any Default.

Agent may resign on sixty (60) days’ written notice to each of Lenders and Borrower and upon
such resignation, the Required Lenders will promptly designate a successor Agent reasonably
satisfactory to Borrower.

Any such successor Agent shall succeed to the rights, powers and duties of Agent, and the term
“Agent” shall mean such successor agent effective upon its appointment, and the former Agent’s
rights, powers and duties as Agent shall be terminated, without any other or further act or deed on
the part of such former Agent. After any Agent’s resignation as Agent, the provisions of this
Article XIV shall inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under this Agreement.

14.4. Certain Rights of Agent.

If Agent shall request instructions from Lenders with respect to any act or action (including
failure to act) in connection with this Agreement or any Other Document, Agent shall be entitled to
refrain from such act or taking such action unless and until Agent shall have received instructions
from the Required Lenders; and Agent shall not incur liability to any Person by reason of so
refraining. Without limiting the foregoing, Lenders shall not have any right of action whatsoever
against Agent as a result of its acting or refraining from acting hereunder in accordance with the
instructions of the Required Lenders.

 

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14.5. Reliance.

Agent shall be entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, statement, certificate, telex, teletype or telecopier message,
cablegram, order or other document or telephone message believed by it to be genuine and correct
and to have been signed, sent or made by the proper person or entity, and, with respect to all
legal matters pertaining to this Agreement and the Other Documents and its duties hereunder, upon
advice of counsel selected by it. Agent may employ agents and attorneys-in-fact and shall not be
liable for the default or misconduct of any such agents or attorneys-in-fact selected by Agent with
reasonable care.

14.6. Notice of Default.

Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or
Event of Default hereunder or under the Other Documents, unless Agent has received notice from a
Lender or Borrower referring to this Agreement or the Other Documents, describing such Default or
Event of Default and stating that such notice is a “notice of default”. In the event that Agent
receives such a notice, Agent shall give notice thereof to Lenders. Agent shall take such action
with respect to such Default or Event of Default as shall be reasonably directed by the Required
Lenders; provided, that, unless and until Agent shall have received such directions, Agent may (but
shall not be obligated to) take such action, or refrain from taking such action, with respect to
such Default or Event of Default as it shall deem advisable in the best interests of Lenders.

14.7. Indemnification.

To the extent Agent is not reimbursed and indemnified by Borrower, each Lender will reimburse
and indemnify Agent in proportion to its respective portion of the Advances (or, if no Advances are
outstanding, according to its Commitment Percentage), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted
against Agent in performing its duties hereunder, or in any way relating to or arising out of this
Agreement or any Other Document; provided that, Lenders shall not be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from Agent’s gross (not mere) negligence or willful misconduct (as
determined by a court of competent jurisdiction in a final non-appealable judgment).

14.8. Agent in its Individual Capacity.

With respect to the obligation of Agent to lend under this Agreement, the Advances made by it
shall have the same rights and powers hereunder as any other Lender and as if it were not
performing the duties as Agent specified herein; and the term “Lender” or any similar term shall,
unless the context clearly otherwise indicates, include Agent in its individual capacity as a
Lender. Agent may engage in business with Borrower as if it were not performing the duties
specified herein, and may accept fees and other consideration from Borrower for services in
connection with this Agreement or otherwise without having to account for the same to Lenders.

 

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14.9. Delivery of Documents.

To the extent Agent receives financial statements required under Sections 9.7, 9.8, 9.11 and
9.12 or Borrowing Base Certificates from Borrower pursuant to the terms of this Agreement which
Borrower is not obligated to deliver to each Lender, Agent will promptly furnish such documents and
information to Lenders.

14.10. Borrower’s Undertaking to Agent.

Without prejudice to its obligations to Lenders under the other provisions of this Agreement,
Borrower hereby undertakes with Agent to pay to Agent from time to time on demand all amounts from
time to time due and payable by it for the account of Agent or Lenders or any of them pursuant to
this Agreement to the extent not already paid. Any payment made pursuant to any such demand shall
pro tanto satisfy the relevant Borrower’s obligations to make payments for the account of Lenders
or the relevant one or more of them pursuant to this Agreement.

14.11. No Reliance on Agent’s Customer Identification Program.

Each Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates,
participants or assignees, may rely on the Agent to carry out such Lender’s, Affiliate’s,
participant’s or assignee’s customer identification program, or other obligations required or
imposed under or pursuant to the USA PATRIOT Act or the regulations thereunder, including the
regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP
Regulations”), or any other Anti-Terrorism Law, including any programs involving any of the
following items relating to or in connection with Borrower, its Affiliates or its agents, this
Agreement, the Other Documents or the transactions hereunder or contemplated hereby: (1) any
identity verification procedures, (2) any record-keeping, (3) comparisons with government lists,
(4) customer notices or (5) other procedures required under the CIP Regulations or such other laws.

14.12. Other Agreements.

Each of the Lenders agrees that it shall not, without the express consent of Agent, and that
it shall, to the extent it is lawfully entitled to do so, upon the request of Agent, set off
against the Obligations, any amounts owing by such Lender to Borrower or any deposit accounts of
Borrower now or hereafter maintained with such Lender. Anything in this Agreement to the contrary
notwithstanding, each of the Lenders further agrees that it shall not, unless specifically
requested to do so by Agent, take any action to protect or enforce its rights arising out of this
Agreement or the Other Documents, it being the intent of Lenders that any such action to protect or
enforce rights under this Agreement and the Other Documents shall be taken in concert and at the
direction or with the consent of Agent or Required Lenders.

 

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ARTICLE XV

MISCELLANEOUS

15.1. Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of
New York applied to contracts to be performed wholly within the State of New York. Any judicial
proceeding brought by or against Borrower with respect to any of the Obligations, this Agreement,
the Other Documents or any related agreement may be brought in any court of competent jurisdiction
in the State of New York. United States of America, and, by execution and delivery of this
Agreement, Borrower accepts for itself and in connection with its properties, generally and
unconditionally, the non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to
be bound by any judgment rendered thereby in connection with this Agreement. 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 in Section 15.6 and service so made shall be deemed completed five (5) days after
the same shall have been so deposited in the mails of the United States of America. Nothing herein
shall affect the right to serve process in any manner permitted by law or shall limit the right of
Agent or any Lender to bring proceedings against Borrower in the courts of any other jurisdiction.
Borrower waives any objection to jurisdiction and venue of any action instituted hereunder and
shall not assert any defense based on lack of jurisdiction or venue or based upon forum non
conveniens. Borrower waives the right to remove any judicial proceeding brought against Borrower
in any state court to any federal court. Any judicial proceeding by Borrower against Agent or any
Lender involving, directly or indirectly, any matter or claim in any way arising out of, related to
or connected with this Agreement or any related agreement, shall be brought only in a federal or
state court located in the County of New York, State of New York.

15.2. Entire Understanding.

(a) This Agreement and the Other Documents executed concurrently herewith contain the entire
understanding between Borrower, Agent and each Lender and supersedes all prior agreements and
understandings, if any, relating to the subject matter hereof. Any promises, representations,
warranties or guarantees not herein contained and hereinafter made shall have no force and effect
unless in writing, signed by Borrower’s, Agent’s and each Lender’s respective officers. Neither
this Agreement nor any portion or provisions hereof may be changed, modified, amended, waived,
supplemented, discharged, cancelled or terminated orally or by any course of dealing, or in any
manner other than by an agreement in writing, signed by the party to be charged. Borrower
acknowledges that it has been advised by counsel in connection with the execution of this Agreement
and Other Documents and is not relying upon oral representations or statements inconsistent with
the terms and provisions of this Agreement.

 

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(b) The Required Lenders, Agent and Borrower may, subject to the provisions of this
Section 15.2 (b), from time to time enter into written supplemental agreements to this Agreement
or the Other Documents executed by Borrower, for the purpose of adding or deleting any
provisions or otherwise changing, varying or waiving in any manner the rights of Lenders, Agent or
Borrower thereunder or the conditions, provisions or terms thereof of waiving any Event of Default
thereunder, but only to the extent specified in such written agreements; provided, however, that no
such supplemental agreement shall, without the consent of all Lenders:

(i) increase the Commitment Percentage or the maximum dollar commitment of any Lender.

(ii) extend the maturity of any Note or the due date for any amount payable hereunder
(excluding any mandatory prepayment), or decrease the rate of interest or reduce any fee
payable by Borrower to Lenders pursuant to this Agreement.

(iii) alter the definition of the term Required Lenders or alter, amend or modify this
Section 15.2(b).

(iv) release any Collateral during any calendar year (other than in accordance with the
provisions of this Agreement) having an aggregate value in excess of $1,000,000.

(v) change the rights and duties of Agent.

(vi) permit any Revolving Advance to be made if after giving effect thereto the total
of Advances outstanding hereunder would exceed the Formula Amount for more than thirty (30)
consecutive Business Days or exceed one hundred and five percent (105%) of the Formula
Amount.

(vii) increase the Advance Rates above the Advance Rates in effect on the Closing Date.

(viii) release any Guarantor.

Any such supplemental agreement shall apply equally to each Lender and shall be binding upon
Borrower, Lenders and Agent and all future holders of the Obligations. In the case of any waiver,
Borrower, Agent and Lenders shall be restored to their former positions and rights, and any Event
of Default waived shall be deemed to be cured and not continuing, but no waiver of a specific Event
of Default shall extend to any subsequent Event of Default (whether or not the subsequent Event of
Default is the same as the Event of Default which was waived), or impair any right consequent
thereon.

In the event that Agent requests the consent of a Lender pursuant to this Section 15.2 and
such consent is denied, then PNC may, at its option, require such Lender to assign its interest in
the Advances to PNC or to another Lender or to any other Person designated by the Agent (the
“Designated Lender”), for a price equal to the then outstanding principal amount thereof
plus accrued and unpaid interest and fees due such Lender, which interest and fees shall be paid
when collected from Borrower. In the event PNC elects to require any Lender to assign its interest
to
PNC or to the Designated Lender, PNC will so notify such Lender in writing within
forty five (45) days following such Lender’s denial, and such Lender will assign its interest to
PNC or the Designated Lender no later than five (5) days following receipt of such notice pursuant
to a Commitment Transfer Supplement executed by such Lender, PNC or the Designated Lender, as
appropriate, and Agent.

 

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Notwithstanding (a) the existence of a Default or an Event of Default, (b) that any of the
other applicable conditions precedent set forth in Section 8.2 hereof have not been satisfied or
(c) any other provision of this Agreement, Agent may at its discretion and without the consent of
the Required Lenders, voluntarily permit the outstanding Advances at any time to exceed the Formula
Amount required hereof at such time by up to ten percent (10%) of the Formula Amount for up to
thirty (30) consecutive Business Days (the “Out-of-Formula Loans”). If Agent is willing in
its sole and absolute discretion to make such Out-of-Formula Loans, such Out-of-Formula Loans shall
be payable on demand and shall bear interest at the Default Rate for Advances consisting of
Domestic Rate Loans; provided that, if Lenders do make Out-of-Formula Loans, neither Agent nor
Lenders shall be deemed thereby to have changed the limits of Section 2.1(a). For purposes of this
paragraph, the discretion granted to Agent hereunder shall not preclude involuntary overadvances
that may result from time to time due to the fact that the Formula Amount was unintentionally
exceeded for any reason, including, but not limited to, Collateral previously deemed to be either
“Eligible Receivables” or “Eligible Inventory”, as applicable, becomes ineligible, collections of
Receivables applied to reduce outstanding Advances are thereafter returned for insufficient funds
or overadvances are made to protect or preserve the Collateral. In the event Agent involuntarily
permits the outstanding Advances to exceed the Formula Amount by more than ten percent (10%), Agent
shall use its efforts to have Borrower decrease such excess in as expeditious a manner as is
practicable under the circumstances and not inconsistent with the reason for such excess. Advances
made after Agent has determined the existence of involuntary overadvances shall be deemed to be
involuntary overadvances and shall be decreased in accordance with the preceding sentence.

In addition to (and not in substitution of) the discretionary Advances permitted above in this
Section 15.2, the Agent is hereby authorized by Borrower and the Lenders, from time to time in the
Agent’s sole discretion, (A) after the occurrence and during the continuation of a Default or an
Event of Default, or (B) at any time that any of the other applicable conditions precedent set
forth in Section 8.2 hereof have not been satisfied, to make Advances to Borrower on behalf of the
Lenders which the Agent, in its reasonable business judgment, deems necessary or desirable (a) to
preserve or protect the Collateral, or any portion thereof, (b) to enhance the likelihood of, or
maximize the amount of, repayment of the Advances and other Obligations, or (c) to pay any other
amount chargeable to Borrower pursuant to the terms of this Agreement; provided, that at any time
after giving effect to any such Advances the outstanding Advances do not exceed one hundred and ten
percent (110%) of the Formula Amount.

15.3. Successors and Assigns; Participations; New Lenders.

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

 

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(b) Borrower acknowledges that in the regular course of commercial banking business one or
more Lenders may at any time and from time to time sell participating interests in the Advances
(without the consent of Agent, Borrower or any other Lender) to other financial institutions (each
such transferee or purchaser of a participating interest, a “Participant”; provided, that any such
sale of participating interests must be for a constant and non-varying interest in all Advances.
Each Participant may exercise all rights of payment (including rights of set-off) with respect to
the portion of such Advances held by it or other Obligations payable hereunder as fully as if such
Participant were the direct holder thereof provided that Borrower shall not be required to pay to
any Participant more than the amount which it would have been required to pay to Lender which
granted an interest in its Advances or other Obligations payable hereunder to such Participant had
such Lender retained such interest in the Advances hereunder or other Obligations payable hereunder
and in no event shall Borrower be required to pay any such amount arising from the same
circumstances and with respect to the same Advances or other Obligations payable hereunder to both
such Lender and such Participant. Borrower hereby grants to any Participant a continuing security
interest in any deposits, moneys or other property actually or constructively held by such
Participant as security for the Participant’s interest in the Advances. No Lenders shall transfer,
grant, assign or sell any participation under which the participant shall have rights to approve
any amendment or waiver of this Agreement except to the extent such amendment or waiver would
(A) extend the final maturity date or the date for the payments of any installment of fees or
principal or interest of any Advances or Letter of Credit reimbursement obligations in which such
participant is participating, (B) reduce the amount of any installment of principal of the Advances
or Letter of Credit reimbursement obligations in which such participant is participating,
(C) except as otherwise expressly provided in this Agreement, reduce the interest rate applicable
to the Advances or Letter of Credit reimbursement obligations in which such participant is
participating, or (D) except as otherwise expressly provided in this Agreement, reduce any fees
payable hereunder. Agent shall provide Borrower with written notice of each new Participant and
the amount of such Participant’s participating interest in the Advances.

(c) Any Lender with the consent of Agent (and, so long as no Event of Default has occurred and
is continuing, the Borrower, such consent not to be unreasonably withheld) which shall not be
unreasonably withheld or delayed must sell, assign or transfer all or any part of its rights and
obligations under or relating to Advances under this Agreement and the Other Documents to one or
more additional banks or financial institutions and one or more additional banks or financial
institutions may commit to make Advances hereunder (each a “Purchasing Lender”), in minimum
amounts of not less than $5,000,000, pursuant to a Commitment Transfer Supplement, executed by a
Purchasing Lender, the transferor Lender, and Agent and delivered to Agent for recording; provided,
that any such assignment of a portion must be for a constant and non-varying portion of such
Lender’s rights under this Agreement, the Other Documents, the Advances and Commitment Percentage.
Upon such execution, delivery, acceptance and recording, from and after the transfer effective date
determined pursuant to such Commitment Transfer Supplement, (i) Purchasing Lender thereunder shall
be a party hereto and, to the extent provided in such Commitment Transfer Supplement, have the
rights and obligations of a Lender
thereunder with a Commitment Percentage as set forth therein, and (ii) the transferor Lender
thereunder shall, to the extent provided in such Commitment Transfer Supplement, be released from
its obligations under this Agreement, the Commitment Transfer Supplement creating a novation for
that purpose. Such Commitment Transfer Supplement shall be deemed to amend this Agreement to the
extent, and only to the extent, necessary to reflect the addition of such Purchasing Lender and the
resulting adjustment of the Commitment Percentages arising from the purchase by such Purchasing
Lender of all or a portion of the rights and obligations of such transferor Lender under this
Agreement and the Other Documents. Borrower hereby consents to the addition of such Purchasing
Lender and the resulting adjustment of the Commitment Percentages arising from the purchase by such
Purchasing Lender of all or a portion of the rights and obligations of such transferor Lender under
this Agreement and the Other Documents. Borrower shall execute and deliver such further documents
and do such further acts and things in order to effectuate the foregoing.

 

104

 

(d) Any Lender, with the consent of Agent which shall not be unreasonably withheld or delayed,
may directly or indirectly sell, assign or transfer all or any portion of its rights and
obligations under or relating to Advances under this Agreement and the Other Documents to an
entity, whether a corporation, partnership, trust, limited liability company or other entity that
(i) is engaged in making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course of its business and (ii) is administered, serviced or
managed by the assigning Lender or an Affiliate of such Lender (a “Purchasing CLO” and
together with each Participant and Purchasing Lender, each a “Transferee” and collectively
the “Transferees”), pursuant to a Commitment Transfer Supplement modified as appropriate to
reflect the interest being assigned (“Modified Commitment Transfer Supplement”), executed
by any intermediate purchaser, the Purchasing CLO, the transferor Lender, and Agent as appropriate
and delivered to Agent for recording. Upon such execution and delivery, from and after the
transfer effective date determined pursuant to such Modified Commitment Transfer Supplement, (i)
Purchasing CLO thereunder shall be a party hereto and, to the extent provided in such Modified
Commitment Transfer Supplement, have the rights and obligations of a Lender thereunder and (ii) the
transferor Lender thereunder shall, to the extent provided in such Modified Commitment Transfer
Supplement, be released from its obligations under this Agreement, the Modified Commitment Transfer
Supplement creating a novation for that purpose. Such Modified Commitment Transfer Supplement
shall be deemed to amend this Agreement to the extent, and only to the extent, necessary to reflect
the addition of such Purchasing CLO. Borrower hereby consents to the addition of such Purchasing
CLO. Borrower shall execute and deliver such further documents and do such further acts and things
in order to effectuate the foregoing

(e) Agent shall maintain at its address a copy of each Commitment Transfer Supplement and
Modified Commitment Transfer Supplement delivered to it and a register (the “Register”) for
the recordation of the names and addresses of each Lender and the outstanding principal, accrued
and unpaid interest and other fees due hereunder. The entries in the Register shall be conclusive,
in the absence of manifest error, and Borrower, Agent and Lenders may treat each Person whose name
is recorded in the Register as the owner of the Advance recorded therein for the 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. Agent shall receive a fee in the amount of $3,500 payable by the applicable
Purchasing Lender and/or Purchasing CLO upon the effective date of each transfer or assignment
(other than to an immediate purchaser) to such Purchasing Lender and/or Purchasing CLO.

 

105

 

(f) Borrower authorizes each Lender to disclose to any Transferee and any prospective
Transferee any and all financial information in such Lender’s possession concerning Borrower which
has been delivered to such Lender by or on behalf of Borrower pursuant to this Agreement or in
connection with such Lender’s credit evaluation of Borrower.

15.4. Application of Payments.

Agent shall have the continuing and exclusive right to apply or reverse and re-apply any
payment and any and all proceeds of Collateral to any portion of the Obligations. To the extent
that Borrower makes a payment or Agent or any Lender receives any payment or proceeds of the
Collateral for Borrower’s benefit, which are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver,
custodian or any other party under any bankruptcy law, common law or equitable cause, then, to such
extent, the Obligations or part thereof intended to be satisfied shall be revived and continue as
if such payment or proceeds had not been received by Agent or such Lender.

15.5. Indemnity.

Borrower shall indemnify Agent, each Lender and each of their respective officers, directors,
Affiliates, attorneys, employees and agents from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any
kind or nature whatsoever (including fees and disbursements of counsel) which may be imposed on,
incurred by, or asserted against Agent or any Lender in any claim, litigation, proceeding or
investigation instituted or conducted by any Governmental Body or instrumentality or any other
Person with respect to any aspect of, or any transaction contemplated by, or referred to in, or any
matter related to, this Agreement or the Other Documents, whether or not Agent or any Lender is a
party thereto, except to the extent that any of the foregoing arises out of the willful misconduct
or gross negligence of the party being indemnified (as determined by a court of competent
jurisdiction in a final and non-appealable judgment). Without limiting the generality of the
foregoing, this indemnity shall extend to any liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever
(including fees and disbursements of counsel) asserted against or incurred by any of the
indemnitees described above in this Section 15.5 by any Person under any Environmental Laws or
similar laws by reason of Borrower’s or any other Person’s failure to comply with laws applicable
to solid or hazardous waste materials, including Hazardous Substances and Hazardous Waste, or other
Toxic Substances. Additionally, if any taxes (excluding taxes imposed upon or measured solely by
the net income of Agent and Lenders, but including any intangibles taxes, stamp tax, recording tax
or franchise tax) shall be payable by Agent, Lenders or Borrower on account of the execution or
delivery of this Agreement, or the execution, delivery, issuance or recording of any of the Other
Documents, or the creation or repayment of any of the Obligations hereunder, by reason of any
Applicable Law now or hereafter in effect, Borrower will pay (or will promptly reimburse Agent and
Lenders for
payment of) all such taxes, including interest and penalties thereon, and will indemnify and
hold the indemnitees described above in this Section 15.5 harmless from and against all liability
in connection therewith.

 

106

 

15.6 Notice.

Any notice or request hereunder may be given to Borrower or to Agent or any Lender at their
respective addresses set forth below or at such other address as may hereafter be specified in a
notice designated as a notice of change of address under this Section. Any notice, request,
demand, direction or other communication (for purposes of this Section 15.6 only, a
“Notice”) to be given to or made upon any party hereto under any provision of this Loan
Agreement shall be given or made by telephone or in writing (which includes by means of electronic
transmission (i.e., “e-mail”) or facsimile transmission in accordance with this Section 15.6. Any
such Notice must be delivered to the applicable parties hereto at the addresses and numbers set
forth under their respective names on Section 15.6 hereof or in accordance with any subsequent
unrevoked Notice from any such party that is given in accordance with this Section 15.6. Any
Notice shall be effective:

(a) In the case of hand-delivery, when delivered;

(b) If given by mail, four days after such Notice is deposited with the United States
Postal Service, with first-class postage prepaid, return receipt requested;

(c) In the case of a telephonic Notice, when a party is contacted by telephone, if
delivery of such telephonic Notice is confirmed no later than the next Business Day by hand
delivery, a facsimile or electronic transmission, a Website Posting (for Agent and Lenders
only) or an overnight courier delivery of a confirmatory Notice (received at or before noon
on such next Business Day);

(d) In the case of a facsimile transmission, when sent to the applicable party’s
facsimile machine’s telephone number, if the party sending such Notice receives confirmation
of the delivery thereof from its own facsimile machine;

(e) In the case of electronic transmission, when actually received;

(f) If given by any other means (including by overnight courier), when actually
received.

 

107

 

Any Lender giving a Notice to Borrower shall concurrently send a copy thereof
to the Agent, and the Agent shall promptly notify the other Lenders of its receipt
of such Notice.

	 	 	 	 	 	 	 
	 

	 	(A)
	 	If to Agent or PNC at:
	 	PNC Bank, National Association
	 

	 	 	 	 	 	One Piedmont Town Center
	 

	 	 	 	 	 	4720 Piedmont Row Drive
	 

	 	 	 	 	 	Suite 300
	 

	 	 	 	 	 	Charlotte, North Carolina 28210
	 

	 	 	 	 	 	Attention: Scott K. Goldstein
	 

	 	 	 	 	 	Telephone: 704-554-8511
	 

	 	 	 	 	 	Facsimile: 704-643-7918
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 	PNC Bank, National Association
	 

	 	 	 	 	 	PNC Agency Services
	 

	 	 	 	 	 	P7-PFSC-04-P
	 

	 	 	 	 	 	PNC Firstside Center
	 

	 	 	 	 	 	500 First Avenue, 4th Floor
	 

	 	 	 	 	 	Pittsburgh, Pennsylvania 15219
	 

	 	 	 	 	 	Attention: Trina Barkely
	 

	 	 	 	 	 	Telephone: (412) 768-0423
	 

	 	 	 	 	 	Facsimile: (412) 705-2006
	 
	 	 	 	 	 	 
	 

	 	 	 	with an additional copy to:
	 	Moore & Van Allen
	 

	 	 	 	 	 	100 N. Tryon Street, Floor 47
	 

	 	 	 	 	 	Charlotte, North Carolina 28202-4003
	 

	 	 	 	 	 	Attention: Lea Stromire Johnson
	 

	 	 	 	 	 	Telephone: 704-331-1068
	 

	 	 	 	 	 	Facsimile: 704-378-2068
	 
	 	 	 	 	 	 
	 	 	(B)	 	If to a Lender other than Agent, as specified on the signature
pages hereof
	 
	 	 	 	 	 	 
	 

	 	(C)
	 	If to Borrower:
	 	APAC Customer Services, Inc.
	 

	 	 	 	 	 	Six Parkway North
	 

	 	 	 	 	 	Deerfield, Illinois 60015
	 

	 	 	 	 	 	Attention: Pamela R. Schneider,
	 

	 	 	 	 	 	General Counsel

	 

	 	 	 	 	 	Telephone: (847) 236-5452
	 

	 	 	 	 	 	Telecopier: (847) 236-5451
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 	Duane Morris LLP
	 

	 	 	 	 	 	190 South LaSalle Street
	 

	 	 	 	 	 	Suite 3700
	 

	 	 	 	 	 	Chicago, Illinois 60603
	 

	 	 	 	 	 	Attention: Michael A. Witt
	 

	 	 	 	 	 	Telephone: (312) 499-6716
	 

	 	 	 	 	 	Telecopier: (312) 499-6701

 

108

 

15.7. Survival.

The obligations of Borrower under Sections 2.2(f), 3.7, 3.8, 3.9, 4.19(h), and 15.5 and the
obligations of Lenders under Section 14.7, shall survive termination of this Agreement and the
Other Documents and payment in full of the Obligations.

15.8. Severability.

If any part of this Agreement is contrary to, prohibited by, or deemed invalid under
Applicable Laws or regulations, such provision shall be inapplicable and deemed omitted to the
extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated
thereby and shall be given effect so far as possible.

15.9. Expenses.

All costs and expenses including reasonable attorneys’ fees (including the allocated costs of
in house counsel) and disbursements incurred by Agent on its behalf or on behalf of Lenders (a) in
all efforts made to enforce payment of any Obligation or effect collection of any Collateral, or
(b) in connection with the entering into, modification, amendment, administration and enforcement
of this Agreement, the Subordination Agreement, the Other Documents or any consents or waivers
hereunder and all related agreements, documents and instruments, or (c) in instituting,
maintaining, preserving, enforcing and foreclosing on Agent’s security interest in or Lien on any
of the Collateral, or maintaining, preserving or enforcing any of Agent’s or any Lender’s rights
hereunder, under the Subordination Agreement, the Other Documents and under all related agreements,
whether through judicial proceedings or otherwise, or (d) in defending or prosecuting any actions
or proceedings or any TCS arising out of or relating to Agent’s or any Lender’s transactions with
Borrower, any Guarantor or any TCS, or (e) in connection with any advice given to Agent with
respect to its rights and obligations under this Agreement, the Subordination Agreement, the Other
Documents and all related agreements, may be charged to Borrower’s Account and shall be part of the
Obligations.

15.10. Injunctive Relief.

Borrower recognizes that, in the event Borrower fails to perform, observe or discharge any of
its obligations or liabilities under this Agreement, or threatens to fail to perform, observe or
discharge such obligations or liabilities, any remedy at law may prove to be inadequate relief to
Lenders; therefore, Agent, if Agent so requests, shall be entitled to temporary and permanent
injunctive relief in any such case without the necessity of proving that actual damages are not an
adequate remedy.

15.11. Damages.

Neither Agent nor any Lender, nor any agent or attorney for any of them, shall be liable to
Borrower or any Guarantor (or any Affiliate of any such Person) for indirect, punitive, exemplary
or consequential damages arising from any breach of contract, tort or other wrong
relating to the establishment, administration or collection of the Obligations or as a result
of any transaction contemplated under this Agreement or any other Document.

 

109

 

15.12. Captions.

The captions at various places in this Agreement are intended for convenience only and do not
constitute and shall not be interpreted as part of this Agreement.

15.13. Counterparts; Facsimile Signatures.

This Agreement may be executed in any number of and by different parties hereto on separate
counterparts, all of which, when so executed, shall be deemed an original, but all such
counterparts shall constitute one and the same agreement. Any signature delivered by a party by
facsimile transmission shall be deemed to be an original signature hereto.

15.14. Construction.

The parties acknowledge that each party and its counsel have reviewed this Agreement and that
the normal rule of construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or any amendments,
schedules or exhibits thereto.

15.15. Confidentiality; Sharing Information.

(a) Agent, each Lender and each Transferee shall hold all non-public information obtained by
Agent, such Lender or such Transferee pursuant to the requirements of this Agreement in accordance
with Agent’s, such Lender’s and such Transferee’s customary procedures for handling confidential
information of this nature; provided, however, Agent, each Lender and each Transferee may disclose
such confidential information (a) to its examiners, Affiliates, outside auditors, counsel and other
professional advisors, (b) to Agent, any Lender or to any prospective Transferees, and (c) as
required or requested by any Governmental Body or representative thereof or pursuant to legal
process; provided, further that (i) unless specifically prohibited by Applicable Law or court
order, Agent, each Lender and each Transferee shall use its reasonable best efforts prior to
disclosure thereof, to notify Borrower of the applicable request for disclosure of such non-public
information (A) by a Governmental Body or representative thereof (other than any such request in
connection with an examination of the financial condition of a Lender or a Transferee by such
Governmental Body) or (B) pursuant to legal process and (ii) in no event shall Agent, any Lender or
any Transferee be obligated to return any materials furnished by Borrower other than those
documents and instruments in possession of Agent or any Lender in order to perfect its Lien on the
Collateral once the Obligations have been paid in full and this Agreement has been terminated.

(b) Borrower acknowledges that from time to time financial advisory, investment banking and
other services may be offered or provided to Borrower or one or more of its Affiliates (in
connection with this Agreement or otherwise) by any Lender or by one or more Subsidiaries or
Affiliates of such Lender and Borrower hereby authorizes each Lender to share
any information delivered to such Lender by Borrower and its Subsidiaries pursuant to this
Agreement, or in connection with the decision of such Lender to enter into this Agreement, to any
such Subsidiary or Affiliate of such Lender, it being understood that any such Subsidiary or
Affiliate of any Lender receiving such information shall be bound by the provisions of this
Section 15.15 as if it were a Lender hereunder. Such authorization shall survive the repayment of
the other Obligations and the termination of this Agreement.

 

110

 

15.16. Publicity.

Borrower and each Lender hereby authorizes Agent to make appropriate announcements of the
financial arrangement entered into among Borrower, Agent and Lenders, including announcements which
are commonly known as tombstones, in such publications and to such selected parties as Agent shall
in its sole and absolute discretion deem appropriate.

15.17. Certifications From Banks and Participants; USA PATRIOT Act.

Each Lender or assignee or participant of a Lender that is not incorporated under the Laws of
the United States of America or a state thereof (and is not excepted from the certification
requirement contained in Section 313 of the USA PATRIOT Act and the applicable regulations because
it is both (i) an affiliate of a depository institution or foreign bank that maintains a physical
presence in the United States or foreign country, and (ii) subject to supervision by a banking
authority regulating such affiliated depository institution or foreign bank) shall deliver to the
Agent the certification, or, if applicable, recertification, certifying that such Lender is not a
“shell” and certifying to other matters as required by Section 313 of the USA PATRIOT Act and the
applicable regulations: (1) within 10 days after the Closing Date, and (2) as such other times as
are required under the USA PATRIOT Act.

15.18. Credit Enhancement Letter of Credit Draw Condition.

Agent acknowledges that it will not draw on the Credit Enhancement Letter of Credit until the
Credit Enhancement Letter of Credit Draw Condition has occurred, and shall in no event draw
(through one or more draws, collectively) more than the Credit Enhancement Amount at such time;
provided that if the Agent draws on the Credit Enhancement Letter of Credit at any time other than
during the continuance of an Event of Default, it is understood and agreed that the Agent will hold
the proceeds of such draw as collateral securing the Obligations and in substitution for a Credit
Enhancement Letter of Credit, and will remit such proceeds to TCS upon the delivery by TCS of a
replacement Credit Enhancement Letter of Credit at any time prior to the occurrence of an Event of
Default. Agent further acknowledges that it will use commercially reasonable efforts to collect
outstanding Receivables after an Event of Default has occurred and Agent elects to exercise its
remedies under this Agreement.

 

111

 

Each of the parties has signed this Agreement as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	APAC CUSTOMER SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

	 	/s/ Michael P. Marrow
 

	 	 
	 

	 	Name:
	 	Michael P. Marrow
	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION,

as Lender and as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Goldstein	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Scott Goldstein	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	One Piedmont Town Center	 	 
	 	 	4720 Piedmont Row Drive	 	 
	 	 	Suite 302	 	 
	 	 	Charlotte, North Carolina 28210	 	 
	 
	 	 	 	 	 	 
	 	 	Commitment Percentage: 100%	 	 

 

112

 

	 	 	 	 	 	 	 	 	 
	STATE
OF Illinois

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	ss.
	 	 
	COUNTY
OF Lake

	 	 	)	 	 	 	 	 

On
this 5th
day of May, 2008, before me personally came
Michael P. Marrow, to me known, who, being by me duly sworn, did depose and say that
s/he is the President and Chief Executive Officer of APAC CUSTOMER SERVICES, INC., the corporation described in and
which executed the foregoing instrument and that s/he signed her/his name thereto by order of board
of directors of said corporation.

	 	 	 	 	 
	 
	 

	 	/s/ Patrica S. Harlan 

Notary Public
	 	 

	 	 	 	 	 	 	 	 	 
	STATE
OF North Carolina

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	ss.
	 	 
	COUNTY
OF Mecklenburg

	 	 	)	 	 	 	 	 

On
this 5th
day of May, 2008, before me personally came
Scott Goldstein, to me known, who, being by me duly sworn, did depose and say that
s/he is the Vice President of PNC BANK, NATIONAL ASSOCIATION, and that s/he was authorized to
sign her/his name thereto.

	 	 	 	 	 
	 
	 

	 	/s/ Stephanie O’Madigan 

Notary Public
	 	 

 

113

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