Document:

exv10w1

 

Exhibit
10.1

Execution Copy

CREDIT AGREEMENT

Dated as of April 24, 2008

by and among

IDLEAIRE TECHNOLOGIES CORPORATION,

as Borrower,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

as Lenders,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent and Collateral Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS; CERTAIN TERMS
	 	 	1	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Terms Generally
	 	 	16	 
	Section 1.03 Accounting and Other Terms
	 	 	17	 
	Section 1.04 Time References
	 	 	17	 
	 
	 	 	 	 
	ARTICLE II THE LOANS
	 	 	17	 
	Section 2.01 Commitments
	 	 	17	 
	Section 2.02 Making the Loans
	 	 	17	 
	Section 2.03 Repayment of Loans; Evidence of Debt
	 	 	18	 
	Section 2.04 Interest
	 	 	19	 
	Section 2.05 Mandatory Reductions of Commitments; Prepayment of Loans
	 	 	20	 
	Section 2.06 Fees
	 	 	21	 
	Section 2.07 Taxes
	 	 	21	 
	 
	 	 	 	 
	ARTICLE III [RESERVED.]
	 	 	23	 
	 
	 	 	 	 
	ARTICLE IV FEES, PAYMENTS AND OTHER COMPENSATION
	 	 	24	 
	Section 4.01 Audit and Collateral Monitoring Expenses
	 	 	24	 
	Section 4.02 Payments and Computations
	 	 	24	 
	Section 4.03 Sharing of Payments, Etc.
	 	 	24	 
	Section 4.04 Apportionment of Payments
	 	 	25	 
	Section 4.05 Increased Costs, Reduced Return and Funding Losses
	 	 	25	 
	 
	 	 	 	 
	ARTICLE V CONDITIONS TO LOANS
	 	 	27	 
	Section 5.01 Conditions Precedent to Effectiveness and Initial Loans
	 	 	27	 
	Section 5.02 Conditions Precedent to All Loans
	 	 	30	 
	 
	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES
	 	 	31	 
	Section 6.01 Representations and Warranties
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VII COVENANTS OF THE BORROWER
	 	 	38	 
	Section 7.01 Affirmative Covenants
	 	 	38	 
	Section 7.02 Negative Covenants
	 	 	43	 
	 
	 	 	 	 
	ARTICLE VIII MANAGEMENT, COLLECTION AND STATUS OF ACCOUNTS RECEIVABLE AND OTHER COLLATERAL
	 	 	47	 
	Section 8.01 Collection of Accounts Receivable; Management of Collateral
	 	 	47	 
	 
	 	 	 	 
	ARTICLE IX EVENTS OF DEFAULT
	 	 	48	 
	Section 9.01 Events of Default
	 	 	48	 

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	 	 	Page
	ARTICLE X AGENTS
	 	 	52	 
	Section 10.01 Appointment
	 	 	52	 
	Section 10.02 Nature of Duties
	 	 	53	 
	Section 10.03 Rights, Exculpation, Etc.
	 	 	54	 
	Section 10.04 Reliance
	 	 	55	 
	Section 10.05 Indemnification
	 	 	56	 
	Section 10.06 Agents Individually
	 	 	56	 
	Section 10.07 Successor Agent
	 	 	56	 
	Section 10.08 Collateral Matters
	 	 	57	 
	Section 10.09 Agency for Perfection
	 	 	58	 
	Section 10.10 Actions With Respect To Collateral
	 	 	58	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	58	 
	Section 11.01 Notices, Etc.
	 	 	58	 
	Section 11.02 Amendments, Etc.
	 	 	59	 
	Section 11.03 No Waiver; Remedies, Etc.
	 	 	60	 
	Section 11.04 Expenses; Taxes; Attorneys’ Fees
	 	 	60	 
	Section 11.05 Right of Set-off
	 	 	61	 
	Section 11.06 Severability
	 	 	61	 
	Section 11.07 Assignments and Participations
	 	 	61	 
	Section 11.08 Counterparts
	 	 	64	 
	Section 11.09 GOVERNING LAW
	 	 	64	 
	Section 11.10 CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE
	 	 	65	 
	Section 11.11 WAIVER OF JURY TRIAL, ETC.
	 	 	65	 
	Section 11.12 No Party Deemed Drafter
	 	 	66	 
	Section 11.13 Reinstatement; Certain Payments
	 	 	66	 
	Section 11.14 Indemnification
	 	 	66	 
	Section 11.15 Records
	 	 	67	 
	Section 11.16 Binding Effect
	 	 	67	 
	Section 11.17 Interest
	 	 	68	 
	Section 11.18 Confidentiality
	 	 	68	 
	Section 11.19 Integration
	 	 	69	 
	Section 11.20 Termination
	 	 	69	 
	Section 11.21 Limitation on Suits by Agents and Lenders
	 	 	69	 
	Section 11.22 Public Announcements
	 	 	70	 

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SCHEDULES AND EXHIBITS

	 	 	 
	Schedule 1.01(A)

	 	Commitments
	Schedule 1.01(B)

	 	Administrative Agent’s Account
	Schedule 1.01(C)

	 	Approved Disbursements
	Schedule 6.01(f)

	 	Litigation; Commercial Tort Claims
	Schedule 6.01(g)

	 	Material Adverse Effect
	Schedule 6.01(h)

	 	Compliance with Law, Etc.
	Schedule 6.01(i)

	 	ERISA
	Schedule 6.01(l)

	 	Adverse Agreements
	Schedule 6.01(m)

	 	Employment Agreements
	Schedule 6.01(o)

	 	Real Property
	Schedule 6.01(q)

	 	Environmental Matters
	Schedule 6.01(t)

	 	Bank Accounts
	Schedule 6.01(u)

	 	Intellectual Property
	Schedule 6.01(v)

	 	Material Contracts
	Schedule 6.01(y)

	 	Name; Jurisdiction of Organization; Organizational ID
Number; Chief Place of Business; Chief Executive Office;
FEIN
	Schedule 7.02(a)

	 	Existing Liens
	Schedule 7.02(b)

	 	Existing Indebtedness
	Schedule 7.02(e)

	 	Existing Investments
	Schedule 7.02(i)

	 	Transactions with Affiliates
	 
	 	 
	Exhibit A-1

	 	Form of Notice of Borrowing
	Exhibit A-2

	 	Form of Borrowing Certificate
	Exhibit B

	 	Form of Security Agreement
	Exhibit C

	 	Form of Assignment and Acceptance
	Exhibit D

	 	Fee Letter

- iii -

 

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT, dated as of April 24, 2008, is made by and among IDLEAIRE TECHNOLOGIES
CORPORATION, a Delaware corporation (the “Borrower”), the lenders from time to time party
hereto (each, a “Lender”, and, collectively, the “Lenders”), WELLS FARGO BANK,
NATIONAL ASSOCIATION (“Wells Fargo”), as collateral agent for the Lenders (in such
capacity, the “Collateral Agent”), and Wells Fargo, as administrative agent for the Lenders
(in such capacity, the “Administrative Agent” and, together with the Collateral Agent, each
an “Agent”, and, collectively, the “Agents”).

RECITALS

     WHEREAS, the Borrower has asked the Lenders to make loans and advances to the Borrower
consisting of a revolving credit facility in an aggregate principal amount not to exceed
$25,000,000 at any time outstanding, and subject to the terms and conditions set forth herein, the
Lenders are severally, and not jointly, willing to extend such credit to the Borrower;

     NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained
herein, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS; CERTAIN TERMS

     Section 1.01 Definitions. As used in this Agreement, the following terms shall have the respective meanings indicated
below, such meanings to be applicable equally to both the singular and plural forms of such terms:

          “Account Debtor” means each debtor, customer or obligor in any way obligated on or in
connection with any Account Receivable.

          “Account Receivable” means, with respect to any Person, any and all rights of such
Person to payment for goods sold and/or services rendered, including accounts, general intangibles
and any and all such rights evidenced by chattel paper, instruments or documents, whether due or to
become due and whether or not earned by performance, and whether now or hereafter acquired or
arising in the future, and any proceeds arising therefrom or relating thereto.

          “Administrative Agent” has the meaning specified therefor in the preamble hereto.

          “Ad Hoc Committee” means the Ad Hoc Committee of the holders of the Notes solely as
holders of the Notes.

          “Administrative Agent’s Account” means an account at Wells Fargo set forth on
Schedule 1.01(B) hereto or another account at Wells Fargo or any other bank designated by
the Administrative Agent from time to time as the account into which the Borrower shall make all
payments to the Administrative Agent for the benefit of the Agents and the Lenders under this
Agreement and the other Loan Documents.

 

 

          “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” of a Person means the power,
directly or indirectly, either to (i) vote 10% or more of the Capital Stock having ordinary voting
power for the election of directors of such Person or (ii) direct or cause the direction of the
management and policies of such Person whether by contract or otherwise. Notwithstanding anything
herein to the contrary, in no event shall any Agent or any Lender be considered an “Affiliate” of
the Borrower.

          “Agent” has the meaning specified therefor in the preamble hereto.

          “Agents’ Fee” has the meaning specified therefor in Section 2.06(b).

          “Agent-Related Persons” means the Administrative Agent, any sub-agent and any
successor agents thereto (in accordance with the terms of this Agreement), and the Collateral Agent
and any successor agents thereto (in accordance with the terms of this Agreement), together with
their respective Affiliates, and the officers, directors, employees, counsel, agents, and
attorneys-in-fact of such Persons and their Affiliates.

          “Agreement” means this Credit Agreement, including all amendments, modifications and
supplements and any exhibits or schedules to any of the foregoing, and shall refer to the Agreement
as the same may be in effect at the time such reference becomes operative.

          “Approved Disbursements” means the list of approved expenditures and disbursements of
the Borrower and the Guarantors dated April 24, 2008, a copy of which is attached as Schedule
1.01(C) hereto.

          “Assignment and Acceptance” means an assignment and acceptance entered into by an
assigning Lender and an assignee, and accepted by the Collateral Agent, in accordance with Section
11.07 hereof and substantially in the form of Exhibit C hereto or such other form
acceptable to the Collateral Agent.

          “Authorized Officer” means, with respect to any Person, the chief executive officer,
chief financial officer, president or CRO of such Person.

          “Available Funds” means, as of any date of determination, the sum of (a) available
funds on deposit at such time in deposit accounts of the Borrower maintained at SunTrust Bank
(other than account number 1000022927304) and (b) available funds in excess of $1,000 on deposit at
such time in each deposit account of the Borrower or any Guarantor other than any deposit account
maintained at SunTrust Bank. Notwithstanding the foregoing, for purposes of the initial Funding
Date only, the amount of Available Funds shall be deemed to be $1,200,000.

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

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          “Board of Directors” means, with respect to any Person, the board of directors (or
comparable managers) of such Person or any committee thereof duly authorized to act on behalf of
the board.

          “Borrower” has the meaning specified therefor in the preamble hereto.

          “Borrowing Certificate” means a certificate signed by an Authorized Officer of the
Borrower substantially in the form of Exhibit A-2 and delivered together with each Notice
of Borrowing.

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

          “Capital Expenditures” means, with respect to any Person for any period, the sum of
(i) the aggregate of all expenditures by such Person and its Subsidiaries during such period that
in accordance with GAAP are or should be included in “property, plant and equipment” or in a
similar fixed asset account on its balance sheet, whether such expenditures are paid in cash or
financed and including all Capitalized Lease Obligations paid or payable during such period, and
(ii) to the extent not covered by clause (i) above, the aggregate of all expenditures by such
Person and its Subsidiaries during such period to acquire by purchase or otherwise the business or
fixed assets of, or the Capital Stock of, any other Person.

          “Capital Stock” means (i) with respect to any Person that is a corporation, any and
all shares, interests, participations or other equivalents (however designated and whether or not
voting) of corporate stock, and (ii) with respect to any Person that is not a corporation, any and
all partnership, membership or other equity interests of such Person.

          “Capitalized Lease” means, with respect to any Person, any lease of real or personal
property by such Person as lessee which is (i) required under GAAP to be capitalized on the balance
sheet of such Person or (ii) a transaction of a type commonly known as a “synthetic lease” (i.e. a
lease transaction that is treated as an operating lease for accounting purposes but with respect to
which payments of rent are intended to be treated as payments of principal and interest on a loan
for Federal income tax purposes).

          “Capitalized Lease Obligations” means, with respect to any Person, obligations of such
Person and its Subsidiaries under Capitalized Leases, and, for purposes hereof, the amount of any
such obligation shall be the capitalized amount thereof determined in accordance with GAAP.

          “Casualty or Condemnation Event” means, with respect to any property of any Person or
any of its Subsidiaries, any loss of, damage to or condemnation or other taking of, such property
for which such Person or any of its Subsidiaries is entitled to receive, or receives, insurance
proceeds, condemnation awards or other similar proceeds or awards.

          “Change in Law” has the meaning specified therefor in Section 4.05(a).

- 3 -

 

          “Change of Control” has the meaning ascribed thereto in the Indenture.

          “Chapter 11 Case” means a case under Chapter 11 of Title 11 of the United States Code.

          “Collateral” means all assets and property in which a Lien is granted or is purported
to be granted pursuant to the Security Agreements and the Mortgages.

          “Collateral Agent” has the meaning specified therefor in the preamble hereto.

          “Commitment” means, with respect to any Lender, the obligation of such Lender to make
the Loans pursuant to the terms and conditions of this Agreement, and the amount thereof shall be
the amount set forth opposite such Lender’s name on Schedule 1.01(A) or in the Assignment
and Acceptance pursuant to which such Person becomes a Lender hereunder, as such amount may be
modified from time to time pursuant to the terms of this Agreement.

          “Commitments” means the aggregate amount of the Commitments of all the Lenders, which
aggregate amount shall equal $25,000,000 on the Effective Date.

          “Commitment Termination Fee” has the meaning specified therefor in Section 2.06(a).

          “Consolidated” means the consolidation in accordance with GAAP of the accounts or
other items as to which such term applies.

          “Contingent Obligation” means, with respect to any Person, any obligation of such
Person guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other
obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, including, without limitation, (i) the direct or indirect guaranty,
endorsement (other than for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the obligation of a primary
obligor, (ii) the obligation to make take-or-pay or similar payments, if required, regardless of
nonperformance by any other party or parties to an agreement, (iii) any obligation of such Person,
whether or not contingent, (A) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (B) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (C) to
purchase property, assets, securities or services primarily for the purpose of assuring the owner
of any such primary obligation of the ability of the primary obligor to make payment of such
primary obligation or (D) otherwise to assure or hold harmless the holder of such primary
obligation against loss in respect thereof; provided, however, that the term
“Contingent Obligation” shall not include any product warranties extended in the ordinary course of
business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the
stated or determinable amount of the primary obligation with respect to which such
Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for
which such Person may be liable pursuant to the terms of the instrument evidencing such

- 4 -

 

Contingent
Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability with
respect thereto (assuming such Person is required to perform thereunder), as determined by such
Person in good faith.

          “CRO” has the meaning specified therefor in Section 5.01(h).

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

          “DIP Conversion” means, in connection with the commencement of a Chapter 11 Case for
each of the Borrower and any Guarantor, either (i) upon the written consent of the Lenders (which
consent may be withheld in the sole discretion of the Lenders) and on terms and conditions
acceptable to the Lenders in their sole discretion, the conversion of the Facility to a
debtor-in-possession credit facility, or (ii) the Lenders whose Pro Rata Shares aggregate at least
75%, in their sole discretion and on terms and conditions acceptable to them in their sole
discretion, enter into a debtor-in-possession credit facility with the Borrower and any such
Guarantor.

          “Disposition” means any transaction, or series of related transactions, pursuant to
which any Person or any of its Subsidiaries sells, assigns, transfers or otherwise disposes of any
property or assets (whether now owned or hereafter acquired) to any other Person, in each case,
whether or not the consideration therefor consists of cash, securities or other assets owned by the
acquiring Person, excluding any sales of Inventory in the ordinary course of business on
ordinary business terms.

          “Dollar,” “Dollars” and the symbol “$” each means lawful money of the
United States of America.

          “Effective Date” means the first date on which all of the conditions precedent set
forth in Sections 5.01 and 5.02 have been satisfied (or waived by the Required Lenders in their
sole discretion).

          “Employee Plan” means an employee benefit plan (other than a Multiemployer Plan)
covered by Title IV of ERISA and maintained (or that was maintained at any time during the six (6)
calendar years preceding the date of any borrowing hereunder) for employees of the Borrower or any
of its ERISA Affiliates.

          “Environmental Actions” means any complaint, summons, citation, notice, directive,
order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or
other communication from any Person or Governmental Authority involving violations of Environmental
Laws or Releases of Hazardous Materials (i) from any assets, properties or businesses owned or
operated by the Borrower or any predecessor in interest; (ii) from adjoining properties or
businesses; or (iii) onto any facilities which received Hazardous Materials generated by the
Borrower or any predecessor in interest.

- 5 -

 

          “Environmental Laws” means the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. § 9601, et seq.), the Hazardous Materials Transportation
Act (49 U.S.C. § 1801, et seq.), the Resource Conservation and Recovery Act
(42 U.S.C. § 6901, et seq.), the Federal Clean Water Act (33 U.S.C. § 1251
et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic
Substances Control Act (15 U.S.C. § 2601 et seq.) and the Occupational Safety and
Health Act (29 U.S.C. § 651 et seq.), as such laws may be amended or otherwise
modified from time to time, and any other present or future federal, state, local or foreign
statute, ordinance, rule, regulation, order, judgment, decree, permit, license or other binding
determination of any Governmental Authority imposing liability or establishing standards of conduct
for protection of the environment or other government restrictions relating to the protection of
the environment or the Release, deposit or migration of any Hazardous Materials into the
environment.

          “Environmental Liabilities and Costs” means all liabilities, monetary obligations,
Remedial Actions, losses, damages, punitive damages, consequential damages, treble damages, costs
and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and
consultants and costs of investigations and feasibility studies), fines, penalties, sanctions and
interest incurred as a result of any claim or demand by any Governmental Authority or any third
party, and which relate to any environmental condition or a Release of Hazardous Materials from or
onto (i) any property presently or formerly owned by the Borrower or (ii) any facility which
received Hazardous Materials generated by the Borrower.

          “Environmental Lien” means any Lien in favor of any Governmental Authority for
Environmental Liabilities and Costs.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute of similar import, and regulations thereunder, in each case, as in effect from
time to time. References to sections of ERISA shall be construed also to refer to any successor
sections.

          “ERISA Affiliate” means, with respect to any Person, any trade or business (whether or
not incorporated) which is a member of a group of which such Person is a member and which would be
deemed to be a “controlled group” within the meaning of Sections 414(b), (c), (m) and (o) of the
Internal Revenue Code.

          “Event of Default” means any of the events set forth in Section 9.01.

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

          “Extraordinary Receipts” means any cash received by or paid to or for the account of
any Person not in the ordinary course of business (other than any amounts so received that
constitute Net Cash Proceeds), including, without limitation, tax refunds, proceeds of judgments
and litigation settlements, pension plan reversions, proceeds of insurance (including, without
limitation, any key man life insurance, but excluding proceeds of business interruption insurance
to the extent such proceeds constitute compensation for lost earnings), condemnation awards (and
payments in lieu thereof), indemnity payments, any purchase price adjustment received in

- 6 -

 

connection with any purchase agreement, and any refunds or returns of advances or deposits
given to or held by customers or suppliers of any such Person.

          “Facility” means the credit facility provided under this Agreement.

          “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal to, for each day during such period, the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of the quotations for
such day on such transactions received by the Administrative Agent from three Federal funds brokers
of recognized standing selected by it.

          “Final Maturity Date” means the date that is the earliest to occur of (i) the
Scheduled Maturity Date, (ii) the date the Total Commitment is terminated, either voluntarily or
involuntarily, whether at stated maturity or upon an Event of Default, (iii) the first date that
the Borrower or any Guarantor determines to proceed with the sale or liquidation of the Borrower or
any Guarantor (or any material portion of their respective assets), as the case may be, other than
pursuant to a transaction agreed to by the Lenders in their sole discretion, or (iv) the
commencement by the Borrower or any Guarantor of a Chapter 11 Case.

          “Financial Statements” means the balance sheet of the Borrower for the Fiscal Year
ended December 31, 2007 and the related statement of operations and cash flows and the statement of
shareholders’ equity for the Fiscal Year then ended.

          “Fiscal Month” means each fiscal month of the Borrower.

          “Fiscal Year” means the fiscal year of the Borrower ending on December 31 of each
year.

          “Funding Date” means the date of the funding of a Loan.

          “GAAP” means generally accepted accounting principles in effect from time to time in
the United States, applied on a consistent basis.

          “Governmental Authority” means any nation or government, any Federal, state, city,
town, municipality, county, local or other political subdivision thereof or thereto and any
department, commission, board, bureau, instrumentality, agency or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

          “Guarantor” means each of the Subsidiaries of the Borrower that shall become a
Guarantor as provided in Section 7.01(n).

- 7 -

 

          “Guaranties” means, collectively, the Guaranties made by each Guarantor in favor of
the Collateral Agent for the benefit of the Agents and the Lenders guaranteeing the Obligations, in
the form and substance satisfactory to the Collateral Agent and the Lenders.

          “Hazardous Material” means (a) any element, compound or chemical that is defined,
listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous
substance, extremely hazardous substance or chemical, hazardous waste, special waste, or solid
waste under Environmental Laws; (b) petroleum and its refined products; (c) polychlorinated
biphenyls; (d) any substance exhibiting a hazardous waste characteristic, including, without
limitation, corrosivity, ignitability, toxicity or reactivity as well as any radioactive or
explosive materials; and (e) any raw materials, building components (including, without limitation,
asbestos-containing materials) and manufactured products containing Hazardous Materials.

          “Hedging Agreement” means any interest rate, foreign currency, commodity or equity
swap, collar, cap, floor or forward rate agreement, or other agreement or arrangement designed to
protect against fluctuations in interest rates or currency, commodity or equity values (including,
without limitation, any option with respect to any of the foregoing and any combination of the
foregoing agreements or arrangements), and any confirmation executed in connection with any such
agreement or arrangement.

          “Highest Lawful Rate” means, with respect to any Lender, the maximum non-usurious
interest rate, if any, that at any time or from time to time may be contracted for, taken,
reserved, charged or received on the Obligations under laws applicable to such Lender which are
currently in effect or, to the extent allowed by law, under such applicable laws which may
hereafter be in effect and which allow a higher maximum non-usurious interest rate than applicable
laws now allow.

          “Indebtedness” means, with respect to any Person, without duplication, (i) all
indebtedness of such Person for borrowed money; (ii) all obligations of such Person for the
deferred purchase price of property or services (other than trade payables or other accounts
payable incurred in the ordinary course of such Person’s business); (iii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments or upon which interest
payments are customarily made; (iv) all obligations and liabilities of such Person created or
arising under any conditional sales or other title retention agreement with respect to property
used and/or acquired by such Person, even though the rights and remedies of the lessor, seller
and/or lender thereunder may be limited to repossession or sale of such property; (v) all
Capitalized Lease Obligations of such Person; (vi) all obligations and liabilities, contingent or
otherwise, of such Person, in respect of letters of credit, acceptances and similar facilities;
(vii) all obligations and liabilities, calculated on a basis satisfactory to the Required Lenders
and in accordance with accepted practice, of such Person under Hedging Agreements; (viii) all
Contingent Obligations of such Person; (ix) liabilities incurred under Title IV of ERISA with
respect to any plan (other than a Multiemployer Plan) covered by Title IV of ERISA and maintained
for employees of such Person or any of its ERISA Affiliates; (x) withdrawal liability incurred
under ERISA by such Person or any of its ERISA Affiliates with respect to any

- 8 -

 

Multiemployer Plan; and (xi) all obligations referred to in clauses (i) through (x) of this
definition of another Person secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) a Lien upon property owned by such
Person, even though such Person has not assumed or become liable for the payment of such
Indebtedness. The Indebtedness of any Person shall include the Indebtedness of any partnership of
or joint venture in which such Person is a general partner or a joint venturer.

          “Indemnified Matters” has the meaning specified therefor in Section 11.14(a).

          “Indemnified Party” has the meaning specified therefor in Section 11.14(a).

          “Indenture” means that certain Indenture, dated as of December 30, 2005, by and among
the Borrower, the Indenture Trustee and the Indenture Collateral Agent (as such Indenture may be
amended, modified or supplemented from time to time).

          “Indenture Collateral” means “Collateral”, as such term is defined in the Indenture.

          “Indenture Collateral Agent” means Wells Fargo, in its capacity as the collateral
agent under the Indenture and the Collateral Agreements (as defined in the Indenture), together
with its successors in such capacity.

          “Indenture Documents” means the Indenture and the Collateral Agreements (as defined in
the Indenture).

          “Indenture Event of Default” means an Event of Default (as defined in the Indenture).

          “Indenture Trustee” means Wells Fargo Bank, National Association, in its capacity as a
trustee under the Indenture.

          “Intercreditor Agreement” has the meaning ascribed thereto in the Indenture.

          “Interest Payment Date” has the meaning specified therefor in Section 2.04(a).

          “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended (or any
successor statute thereto) and the regulations thereunder.

          “Inventory” means, with respect to any Person, all goods and merchandise of such
Person, including, without limitation, all raw materials, work-in-process, packaging, supplies,
materials and finished goods of every nature used or usable in connection with the shipping,
storing, advertising or sale of such goods and merchandise, whether now owned or hereafter
acquired, and all such other property the sale or other disposition of which would give rise to an
Account Receivable or cash.

- 9 -

 

          “Lease” means any lease of real property to which the Borrower is a party as lessor or
lessee.

          “Lender” has the meaning specified therefor in the preamble hereto.

          “Lender-Related Persons” means, with respect to any Lender, such Lender, together with
such Lender’s Affiliates, and the officers, directors, employees, counsel, agents, and
attorneys-in-fact of such Lender and such Lender’s Affiliates.

          “Lien” means any mortgage, deed of trust, pledge, lien (statutory or otherwise),
security interest, charge or other encumbrance or security, including, without limitation, any
conditional sale or title retention arrangement, any Capitalized Lease and any assignment, deposit
arrangement or financing lease intended as, or having the effect of, security.

          “Loan” means a loan made by a Lender to the Borrower pursuant to Section 2.01 hereof.

          “Loan Document” means this Agreement, any Guaranty, any Security Agreement, any
Mortgage, the Intercreditor Agreement and any other agreement, instrument, and other document
executed and delivered pursuant hereto or thereto or otherwise evidencing or securing any Loan or
any other Obligation, including all amendments, modifications and supplements and any exhibits or
schedules thereto.

          “Material Adverse Effect” means a material adverse effect on any of (i) the business,
assets, properties, condition (financial or otherwise), operations, performance or results of
operations of the Borrower and the Guarantors (including their respective subsidiaries and their
respective businesses), taken as a whole, (ii) the ability (other than the financial ability) of
the Borrower or any Guarantor to perform any of their respective obligations under any Loan
Document, (iii) the legality, validity or enforceability of this Agreement or any other Loan
Document, (iv) the rights and remedies of any Agent or any Lender under any Loan Document or (v)
the validity, perfection or priority of the Liens in favor of the Collateral Agent for the benefit
of the Lenders on any material portion of the Collateral; provided, however, that
the resignation or removal of any of the Borrower’s existing (as of the Effective Date) senior
officers (other than Lynn Youngs and the CRO referred to in Section 5.01(h)) shall not, in and of
itself, be deemed to constitute a Material Adverse Effect.

          “Material Contract” means, with respect to any Person, (i) each contract or agreement
to which such Person or any of its Subsidiaries is a party involving aggregate consideration
payable to or by such Person or such Subsidiary of $250,000 or more during any calendar year (other
than purchase orders in the ordinary course of business of such Person or such Subsidiary) and (ii)
all other contracts or agreements the breach or termination of which could reasonably be expected
to have a Material Adverse Effect.

          “Maximum Revolving Credit Amount” means, at any time, an amount equal to the lesser of
(a) the Total Commitment at such time and (b)(i) the sum of (A) the aggregate amount of
expenditures and disbursements shown in the Approved Disbursements and (B) any

- 10 -

 

other expenditures and disbursements requested by the Borrower to be funded with the proceeds
of Loans but only to the extent that such other expenditures and disbursements have been approved
in writing by the Required Lenders, which approval may be granted or withheld in their sole
discretion, minus (ii) the aggregate amount of Available Funds at the time of each Notice of
Borrowing.

          “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

          “Mortgages” means (a) if requested by the Required Lenders, each of the mortgages
made by the Borrower in favor of the Collateral Agent for the benefit of the Agents and the Lenders
and recorded against real property owned or leased by the Borrower and delivered to the Collateral
Agent and (b) any other mortgage on real property owned or leased by the Borrower entered into
pursuant to Section 7.01(j), in each case in form and substance reasonably satisfactory to the
Required Lenders.

          “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA to which the Borrower or any of its ERISA Affiliates has contributed to, or has been
obligated to contribute, at any time during the preceding six (6) years.

          “Net Cash Proceeds” means, (i) with respect to any Disposition by any Person or any of
its Subsidiaries, the amount of cash received (directly or indirectly) from time to time (whether
as initial consideration or through the payment of deferred consideration) by or on behalf of such
Person or such Subsidiary, in connection therewith after deducting therefrom only (A) the principal
amount of any Indebtedness secured by any Lien permitted by Section 7.02(a) on any asset (other
than Indebtedness assumed by the purchaser of such asset) which is required to be, and is, repaid
in connection with such Disposition (other than Indebtedness under this Agreement), (B) reasonable
expenses related thereto incurred by such Person or such Subsidiary in connection therewith, (C)
transfer taxes paid to any taxing authorities by such Person or such Subsidiary in connection
therewith, and (D) net income taxes to be paid in connection with such Disposition (after taking
into account any tax credits or deductions and any tax sharing arrangements) and (ii) with respect
to any Casualty or Condemnation Event, the aggregate cash proceeds of insurance, condemnation
awards and other compensation received (directly or indirectly) from time to time by or on behalf
of such Person or such Subsidiary, in connection therewith after deducting therefrom only (A) the
principal amount of any Indebtedness secured by any Lien permitted by Section 7.02(a) on any asset
subject to such Casualty or Condemnation Event which is required to be, and is, repaid in
connection with such Casualty or Condemnation Event (other than Indebtedness under this Agreement),
(B) reasonable expenses related thereto incurred by such Person or such Subsidiary in connection
therewith, (C) transfer taxes, if any, paid to any taxing authorities by such Person or such
Subsidiary as a result of such Casualty or Condemnation Event, and (D) net income taxes, if any, to
be paid in connection with such Casualty or Condemnation Event (after taking into account any tax
credits or deductions and any tax sharing arrangements).

          “New Lending Office” has the meaning specified therefor in Section 2.07(d).

          “Non-U.S. Lender” has the meaning specified therefor in Section 2.07(d).

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          “Notes” means the 13% Senior Secured Discount Notes due 2012 of the Borrower.

          “Notice of Borrowing” has the meaning specified therefor in Section 2.02(a).

          “Obligations” means all present and future indebtedness, obligations, and liabilities
of the Borrower and the Guarantors to the Agents, the Lenders and any Indemnified Party arising
under or payable pursuant to the Loan Documents (whether or not the right of payment in respect of
such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed,
undisputed, legal, equitable, secured, unsecured, and whether or not such claim is discharged,
stayed or otherwise affected by any proceeding referred to in Section 9.01). Without limiting the
generality of the foregoing, the Obligations include (a) the obligation to pay principal, interest,
charges, expenses, fees, attorneys’ fees and disbursements, indemnities and other amounts payable
by the Borrower or any Guarantor under the Loan Documents, and (b) the obligation of the Borrower
or any Guarantor to reimburse any amount in respect of any of the foregoing that any Agent or any
Lender (in its sole discretion) may elect to pay or advance on behalf of the Borrower. For the
avoidance of doubt, “Obligations” shall include, without limitation, the Commitment Termination Fee
that would be due and payable upon the termination of the Total Commitment pursuant to Section
2.06(a).

          “Other Taxes” has the meaning specified therefor in Section 2.07(b).

          “Participant Register” has the meaning specified therefor in Section 11.07(g).

          “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.

          “Permitted Indebtedness” means:

          (a) any Indebtedness owing to any Agent and any Lender under this Agreement and the other Loan
Documents;

          (b) any Indebtedness existing on the Effective Date, as described on Schedule 7.02(b);
and

          (c) any Indebtedness that by its terms is expressly subordinated in right of payment to the
prior payment in full of the Loans and the Notes on terms and conditions and evidenced by
documentation satisfactory to the Lenders in their sole discretion.

          “Permitted Investments” means (i) marketable direct obligations issued or
unconditionally guaranteed by the United States Government or issued by any agency thereof and
backed by the full faith and credit of the United States, in each case, maturing within six months
from the date of acquisition thereof; (ii) commercial paper, maturing not more than 270 days after
the date of issue rated P-1 by Moody’s or A-1 by Standard & Poor’s; (iii) certificates of deposit
maturing not more than 270 days after the date of issue, issued by commercial banking institutions
and money market or demand deposit accounts maintained at commercial banking

- 12 -

 

institutions, each of which is a member of the Federal Reserve System and has a combined
capital and surplus and undivided profits of not less than $500,000,000 or is a bank at which the
Borrower currently has any deposit account; (iv) repurchase agreements having maturities of not
more than 90 days from the date of acquisition which are entered into with major money center banks
included in the commercial banking institutions described in clause (iii) above and which are
secured by readily marketable direct obligations of the United States Government or any agency
thereof; (v) money market accounts maintained with mutual funds having assets in excess of
$2,500,000,000; and (vi) tax exempt securities rated A or higher by Moody’s or A+ or higher by
Standard & Poor’s.

          “Permitted Liens” means:

          (a) Liens securing the Obligations;

          (b) Liens for taxes, assessments and governmental charges the payment of which is not required
under Section 7.01(b);

          (c) Liens imposed by law, such as carriers’, warehousemen’s, mechanics’, bankers’,
materialmen’s and other similar Liens arising in the ordinary course of business and securing
obligations (other than Indebtedness for borrowed money) that are not overdue by more than thirty
(30) days or are being contested in good faith and by appropriate proceedings promptly initiated
and diligently conducted, and a reserve or other appropriate provision, if any, as shall be
required by GAAP shall have been made therefor;

          (d) Liens existing on the Effective Date, as and to the extent described on Schedule
7.02(a), but not the extension of coverage thereof to other property or the extension of
maturity, refinancing or other modification of the terms thereof or the increase of the
Indebtedness or other liabilities secured thereby;

          (e) deposits and pledges of cash securing (i) obligations incurred in respect of workers’
compensation, unemployment insurance or other forms of governmental insurance or benefits, (ii) the
performance of bids, tenders, leases, contracts (other than for the payment of money) and statutory
obligations or (iii) obligations on surety or appeal bonds, but only to the extent such deposits or
pledges are made or otherwise arise in the ordinary course of business and secure obligations not
past due; and

          (f) easements, zoning restrictions and similar encumbrances on real property and minor
irregularities in the title thereto that do not materially impair the value of such property or its
use by the Borrower in the normal conduct of the Borrower’s business.

          “Person” means an individual, corporation, limited liability company, partnership,
association, joint-stock company, trust, unincorporated organization, joint venture or other
enterprise or entity or Governmental Authority.

          “PIK Notice” has the meaning specified therefor in Section 2.04.

- 13 -

 

          “Plan” means any Employee Plan or Multiemployer Plan.

          “Post-Default Rate” means a rate of interest per annum equal to the rate of interest
otherwise in effect from time to time pursuant to the terms of this Agreement plus 2.00%.

          “Pro Rata Share” means, with respect to any Lender, (a) prior to the Total Commitment
being terminated or reduced to zero, the percentage obtained by dividing such Lender’s Commitment
by the Total Commitment, and (b) from and after the time the Total Commitment has been terminated
or reduced to zero, the percentage obtained by dividing the aggregate unpaid principal amount of
such Lender’s Loans by the aggregate unpaid principal amount of all Loans.

          “Professional Fees” has the meaning specified therefor in Section 11.04.

          “Reference Bank” means Wells Fargo, its successors or any other commercial bank
designated by the Administrative Agent to the Borrower from time to time.

          “Reference Rate” means the rate of interest publicly announced by the Reference Bank
from time to time as its reference rate, base rate or prime rate. The reference rate, base rate or
prime rate is determined from time to time by the Reference Bank as a means of pricing some loans
to its borrowers and neither is tied to any external rate of interest or index nor necessarily
reflects the lowest rate of interest actually charged by the Reference Bank to any particular class
or category of customers. Each change in the Reference Rate shall be effective from and including
the date such change is publicly announced as being effective.

          “Register” has the meaning specified therefor in Section 11.07(d).

          “Registered Loans” has the meaning specified therefor in Section 11.07(d).

          “Regulation T”, “Regulation U” and “Regulation X” mean, respectively,
Regulations T, U and X of the Board or any successor regulation, as the same may be amended or
supplemented from time to time.

          “Related Fund” means, with respect to any Person, an Affiliate of such Person, or a
fund or account managed by such Person or an Affiliate of such Person.

          “Release” means any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, seeping, migrating, dumping or disposing of any
Hazardous Material (including the abandonment or discarding of barrels, containers and other closed
receptacles containing any Hazardous Material) into the indoor or outdoor environment, including,
without limitation, the movement of Hazardous Materials through or in the ambient air, soil,
surface or ground water, or property.

          “Remedial Action” means all actions taken to (i) clean up, remove, remediate, contain,
treat, monitor, assess, evaluate or in any other way address Hazardous Materials in the indoor or
outdoor environment; (ii) prevent or minimize a Release or threatened Release of

- 14 -

 

Hazardous Materials so they do not migrate or endanger or threaten to endanger public health
or welfare or the indoor or outdoor environment; (iii) perform pre-remedial studies and
investigations and post-remedial operation and maintenance activities; or (iv) perform any other
actions authorized by 42 U.S.C. § 9601.

          “Reportable Event” means an event described in Section 4043(c) of ERISA (other than
any event not subject to the provision for 30-day notice to the PBGC under the regulations
promulgated under such Section).

          “Required Lenders” means Lenders whose Pro Rata Shares aggregate at least 50.1%.

          “Revolving Credit Obligations” means, at any time, the aggregate outstanding principal
amount of the Loans at such time.

          “Scheduled Maturity Date” means May 2, 2008.

          “SEC” means the Securities and Exchange Commission or any other similar or successor
agency of the Federal government administering the Securities Act.

          “Securities Act” means the Securities Act of 1933, as amended, or any similar Federal
statute, and the rules and regulations of the SEC thereunder, all as the same shall be in effect
from time to time.

          “Security Agreements” means, collectively, (a) the Security Agreement of even date
herewith made by the Borrower in favor of the Collateral Agent for the benefit of the Agents and
the Lenders, substantially in the form of Exhibit B, including all amendments,
modifications and supplements and any exhibits or schedules thereto, and (b) the Security
Agreements made by each Guarantor, if any, in favor of the Collateral Agent for the benefit of the
Agents and the Lenders, substantially in the form of Exhibit B, including all amendments,
modifications and supplements and any exhibits or schedules thereto, in each case securing the
Obligations and delivered to the Collateral Agent.

          “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc. and any successor thereto.

          “Subsidiary” means, with respect to any Person at any date, any corporation, limited
or general partnership, limited liability company, trust, association or other entity (i) the
accounts of which would be Consolidated with those of such Person in such Person’s Consolidated
financial statements if such financial statements were prepared in accordance with GAAP or (ii) of
which more than 50% of (A) the outstanding Capital Stock having (in the absence of contingencies)
ordinary voting power to elect a majority of the Board of Directors of such corporation, (B) the
interest in the capital or profits of such partnership or limited liability company or (C) the
beneficial interest in such trust or estate is, at the time of determination, owned or controlled
directly or indirectly through one or more intermediaries, by such Person.

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          “SunTrust Amended Control Agreement” means the Amended and Restated Deposit Account
Control Agreement, dated as of April 24, 2008, by and among the Borrower, the Collateral Agent, the
Indenture Collateral Agent and SunTrust Bank.

          “SunTrust CD” means the Certificate of Deposit issued by SunTrust Bank, number
17540508615-100000001, dated April 8, 2008, in the amount of $190,000.

          “Taxes” has the meaning specified therefor in Section 2.07(a).

          “Termination” means the payment in full in cash of all noncontingent monetary
Obligations (including the Commitment Termination Fee to the extent payable pursuant to Section
2.06(a) hereof) and the termination of the Total Commitment.

          “Termination Event” means (i) a Reportable Event with respect to any Employee Plan,
(ii) any event that causes the Borrower or any of its ERISA Affiliates to incur liability under
Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section
4971 or 4975 of the Internal Revenue Code, (iii) the filing of a notice of intent to terminate an
Employee Plan or the treatment of an Employee Plan amendment as a termination under Section 4041 of
ERISA, (iv) the institution of proceedings by the PBGC to terminate an Employee Plan, or (v) the
occurrence of any other event or condition which might constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any Employee Plan.

          “Total Commitment” means, at any time, the sum of the amounts of the Lenders’
Commitments at such time; as of the Effective Date, the sum of the amounts of the Lenders’
Commitments is $25,000,000, subject to reduction thereafter pursuant to the provisions of Section
2.05 of this Agreement.

          “Uniform Commercial Code” has the meaning specified therefor in Section 1.03.

          “WARN” has the meaning specified therefor in Section 6.01(x).

          “Wells Fargo” has the meaning specified therefor in the preamble hereto.

     Section 1.02 Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to
have the same meaning and effect as the word “shall”. Unless the context requires otherwise, (a)
any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its
entirety and not

- 16 -

 

to any particular provision hereof, (d) 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 and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any right or interest in or to assets
and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or
intangible.

     Section 1.03 Accounting and Other Terms. Unless otherwise expressly provided herein, each accounting term used herein shall have the
meaning given it under GAAP applied on a basis consistent with those used in preparing the
Financial Statements. All terms used in this Agreement which are defined in Article 8 or Article 9
of the Uniform Commercial Code as in effect in the State of New York (the “Uniform Commercial
Code”) and which are not otherwise defined herein shall have the same meanings herein as set
forth therein.

     Section 1.04 Time References. Unless otherwise indicated herein, all references to time of day refer to Eastern Standard Time
or Eastern daylight savings time, as in effect in New York City on such day. For purposes of the
computation of a period of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each means “to but excluding”;
provided, however, that with respect to a computation of fees or interest payable
to any Agent or any Lender, such period shall in any event consist of at least one full day.

ARTICLE II

THE LOANS

     Section 2.01 Commitments. Subject to the terms and conditions and relying upon the representations and warranties herein
set forth, each Lender severally agrees to make Loans to the Borrower at any time and from time to
time from the Effective Date to the Final Maturity Date, or until the earlier reduction of its
Commitment to zero or the termination of the Total Commitment in accordance with the terms hereof,
in an aggregate principal amount at any time outstanding not to exceed the amount of such Lender’s
Pro Rata Share of the Maximum Revolving Credit Amount at such time. The Commitment of each Lender
to make Loans shall automatically and permanently be reduced to zero on the Final Maturity Date.
Within the foregoing limits and subject to the terms, provisions and limitations set forth herein
the Borrower may borrow, repay and reborrow, on or after the Effective Date and prior to the Final
Maturity Date

     Section 2.02 Making the Loans. (a) The Borrower shall have given the Administrative Agent prior telephonic notice
(immediately confirmed in writing, in substantially the form of Exhibit A-1 hereto (a
“Notice of Borrowing”)) not later than 11:00 a.m. (prevailing Eastern Time) at least (A)
one (1) Business Day prior to the Funding Date of the proposed initial Loan, and (B) three (3)
Business Day(s) prior to the Funding Date of any subsequent proposed Loan. Such Notice of
Borrowing shall be irrevocable, shall be accompanied by a Borrowing Certificate and shall specify
(x) the principal amount of the proposed Loan and (y) the proposed Funding

- 17 -

 

Date, which must be a
Business Day. The Administrative Agent and the Lenders may act without liability upon the basis of
written, telecopied or telephonic notice believed by the Administrative Agent in good faith to be
from the Borrower (or from any Authorized Officer thereof designated in writing purportedly from
the Borrower to the Administrative Agent). The Administrative Agent and each Lender shall be
entitled to rely conclusively on any Authorized Officer’s authority to request a Loan on behalf of
the Borrower until the Administrative Agent receives written notice to the contrary. The
Administrative Agent and the Lenders shall have no duty to verify the authenticity of the signature
appearing on any written Notice of Borrowing. On each day that any Revolving Credit Obligations
are outstanding, the Borrower shall be deemed to represent and warrant to the Agents and the
Lenders that the Maximum Revolving Credit Amount calculated as of such day equals or exceeds the
Revolving Credit Obligations outstanding on such day.

     (b) The Notice of Borrowing shall be irrevocable and the Borrower shall be bound to make a
borrowing in accordance therewith. The aggregate principal amount of all Loans made as part of
a single borrowing hereunder shall be in a minimum amount of $500,000. The making of each Loan
shall be subject in all respects to Section 2.01.

     (c) (i) Except as otherwise provided in this subsection 2.02(c), all Loans under this
Agreement shall be made by the Lenders simultaneously and proportionately to their respective
Pro Rata Shares; it being understood that no Lender shall be responsible for any default by any
other Lender in that other Lender’s obligations to make a Loan requested hereunder, and each
Lender shall be obligated to make the Loans required to be made by it by the terms of this
Agreement regardless of the failure by any other Lender to make Loans required to be made by it.

               (ii) Each Lender shall make available to the Administrative Agent not later than 12:00 p.m.
(New York City time) on the applicable Funding Date, in Dollars in funds immediately available to
the Administrative Agent in the Administrative Agent’s Account, the Loans to be made by such Lender
on such Funding Date.

               (iii) All Loans made available to the Administrative Agent in accordance with Section
2.02(c)(ii) shall be disbursed by the Administrative Agent on the applicable Funding Date (in the
case of any Loans made available to the Administrative Agent after the applicable Funding Date, on
the date so made available to the Administrative Agent if received by the Administrative Agent not
later than 12:00 p.m. (New York City time) on such date, and on the next following Business Day if
received by the Administrative Agent after 12:00 p.m. (New York City time) on such date) in Dollars
in funds immediately available to the
Borrower in such manner as may have been specified in the Notice of Borrowing and as shall be
acceptable to the Administrative Agent.

     Section 2.03 Repayment of Loans; Evidence of Debt. (a) The outstanding principal of all Loans shall be due and payable on the Final Maturity Date.

     (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the Indebtedness of the Borrower to such Lender resulting

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from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from
time to time hereunder.

               (c) The Administrative Agent shall record (i) the amount of each Loan made hereunder, (ii)
the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

               (d) The records maintained pursuant to paragraph (b) or (c) of this Section 2.03 shall be
prima facie evidence of the existence and amounts of the obligations recorded
therein absent manifest error; provided that the failure of any Lender or the
Administrative Agent to maintain such records or any error therein shall not in any manner
affect the obligation of the Borrower to repay the Loans in accordance with the terms of this
Agreement.

               (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In
such event, the Borrower shall execute and deliver to such Lender a promissory note payable to
the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) in a form furnished by counsel to the Lenders and reasonably acceptable to the
Borrower.

          Section 2.04 Interest. (a) Loans. Subject to paragraph (b) of this Section 2.04, each Loan shall bear
interest on the principal amount thereof from time to time outstanding, from the date of such Loan
until such principal amount is repaid in full, at a rate per annum equal to 12%. Interest on each
Loan payable hereunder shall be due and payable, in arrears, on the first day of each calendar
month (each, an “Interest Payment Date”), commencing on the first day of the month
following the month in which such Loan is made and at maturity (whether upon stated maturity, by
acceleration or otherwise). The accrued and unpaid interest on the outstanding principal amount
of the Loans hereunder that is due and payable on each such Interest Payment Date shall be payable
in cash unless the Borrower shall have elected, in a notice given to the Administrative Agent not
less than two (2) Business Days prior to the applicable Interest Payment Date (a “PIK
Notice”), that such interest shall instead be “paid-in-kind” by being capitalized and added to
the outstanding principal balance of the Loans hereunder on the subject Interest Payment Date (such
that the same amount will no longer constitute accrued and unpaid interest but instead will be
part of the principal of the Loans hereunder for all purposes), in which event such interest shall
be so payable. Such election shall remain in effect for each subsequent Interest Payment Date
unless and until it is superseded by a notice to the contrary from the Borrower to the
Administrative Agent given not less than two (2) Business Days prior to the first Interest Payment
Date in which such superseding election is to take effect. Notwithstanding anything to the
contrary contained herein, on the Effective Date the Borrower shall be deemed to have given to the
Administrative Agent a PIK Notice in respect of the initial Interest Payment Date hereunder.
Notwithstanding the foregoing, the Borrower shall not have the option to “pay-in-kind” the accrued
and unpaid interest due and payable on any Interest Payment Date if and to the extent that the
effect thereof would be to cause the aggregate outstanding principal amount of

- 19 -

 

the Loans hereunder
to exceed either the limit set forth in Section 4.06(b) of the Indenture or the “Senior Lender Debt
Cap”, as defined in the Indenture and in the Intercreditor Agreement.

     (b) Default Interest. To the extent permitted by law, upon the occurrence of an
Event of Default, the principal of, and all accrued and unpaid interest on, all Loans shall bear
interest from the date such Event of Default occurred until the date such Event of Default is
cured or waived in writing in accordance herewith, at a rate per annum equal at all times to the
Post-Default Rate. Interest at the Post-Default Rate shall be payable on demand;
provided, however, that any such accrued interest that is due and payable on the
applicable due date therefor shall at the option of the Borrower, either be payable in cash or
“paid-in-kind” by being capitalized and added to the outstanding principal balance of the Loans
hereunder (such that the same amount will no longer constitute accrued and unpaid interest but
instead will be part of the principal of the Loans hereunder for all purposes).

     Section 2.05 Mandatory Reductions of Commitments; Prepayment of Loans.

     (a) Mandatory Reductions of Commitments. (i) The Commitments shall be permanently
reduced among the Lenders in accordance with their respective Pro Rata Shares by the amount of
any Net Cash Proceeds received by the Borrower or any Guarantor after the Effective Date from
any Disposition of property or assets of the Borrower or any Guarantor in regards to which such
proceeds are required to be paid to the Administrative Agent pursuant to Section 7.02(c).

               (ii) The Commitments shall be permanently reduced among the Lenders in accordance with their
respective Pro Rata Shares by the amount of any Net Cash Proceeds received by the Borrower or any
Guarantor after the Effective Date from or on account of a Casualty or Condemnation Event.

               (iii) The Commitments shall be permanently reduced among the Lenders in accordance with their
respective Pro Rata Shares by the amount of any Extraordinary Receipts received by the Borrower or
any Guarantor after the Effective Date.

     (b) Optional Prepayments and Commitment Termination. (i) Upon not less than one
(1) Business Day’s prior written notice to the Administrative Agent and subject to
the terms and conditions set forth herein, the Borrower may prepay at any time, without
premium or penalty and without reducing the Total Commitment, the principal of the outstanding
Loans, in whole or in part. Each such prepayment shall be in a minimum amount of $500,000.

               (ii) Upon the giving of not less than three (3) Business Days’ prior written notice by the
Borrower to the Administrative Agent, the Total Commitment shall terminate on the date specified in
such notice.

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     (c) Mandatory Prepayments.

               (i) In the event that the Revolving Credit Obligations shall at any time exceed the Maximum
Revolving Credit Amount, the Borrower shall immediately prepay the Loans in an amount equal to such
excess.

               (ii) The Borrower shall prepay the Loans in the amount of (A) any Net Cash Proceeds received
by the Borrower or any Guarantor and (B) any Extraordinary Receipts received by the Borrower or any
Guarantor (including, without limitation, any Extraordinary Receipts received by the Borrower or
any Guarantor from Eaton Corporation or its Affiliates), in each case, within one (1) Business Day
following receipt thereof by or on behalf of such Person, provided, however, that
the amount of any such prepayment shall not exceed 100% of the outstanding principal amount of the
Loans.

               (iii) Nothing in this Section 2.05(c) shall be construed to constitute the Lenders’ consent to
any transaction which is not expressly permitted by Article VII.

     (d) Application of Payments. Each prepayment of Loans pursuant to Section 2.05(b)
or 2.05(c) shall be applied to the outstanding principal amount of the Loans of each Lender
ratably based on such Lender’s Pro Rata Share.

     Section 2.06 Fees.

     (a) Commitment Termination Fee. In the event that the Total Commitment is
terminated, either voluntarily or involuntarily (including by virtue of an acceleration as a
result of an insolvency event or otherwise), whether at stated maturity, upon an Event of
Default or otherwise, on the date of such termination the Borrower shall pay to the
Administrative Agent, for the benefit of the Lenders, a commitment termination fee in an amount
(such amount not to exceed $2,000,000) equal to the greater of (i) 10.0% of the aggregate
principal amount of all Loans outstanding immediately prior to such termination and (ii)
$1,000,000 (the “Commitment Termination Fee”), provided, however, that
no Commitment Termination Fee shall be payable in the event that a DIP Conversion occurs.

     (b) Agents’ Fee. On the Effective Date, the Borrower shall pay to the Agents, for
their own account, a non-refundable agency fee (the “Agents’ Fee”) as set forth in the
Fee
Letter, dated as of the date hereof, between the Agents and the Borrower and annexed hereto
as Exhibit D.

     Section 2.07 Taxes. (a) Any and all payments by the Borrower hereunder shall be made free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding taxes imposed on net income or
net capital or franchise taxes of any Agent or any Lender by the jurisdiction in which such Person
is organized or has its principal lending office or, in the case of any Lender, by the jurisdiction
in which its applicable lending office is located (all such nonexcluded taxes, levies, imposts,
deductions, charges withholdings and liabilities, collectively or individually, “Taxes”).
If the Borrower shall be required to deduct any Taxes from or in

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respect of any sum payable
hereunder to any Agent or any Lender, (i) the sum payable shall be increased by the amount (an
“additional amount”) necessary so that after making all required deductions (including
deductions applicable to any additional amount payable under this Section 2.07) such Agent or such
Lender shall receive an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions, and (iii) the Borrower shall pay the full
amount deducted to the relevant Governmental Authority in accordance with applicable law.

     (b) In addition, the Borrower agrees to pay to the relevant Governmental Authority in
accordance with applicable law any present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies that arise from any payment made hereunder
or from the execution, delivery or registration of, or otherwise with respect to, this Agreement
(“Other Taxes”). The Borrower shall deliver to each Agent and each Lender official
receipts, if any, in respect of any Taxes or Other Taxes payable hereunder promptly after
payment of such Taxes or Other Taxes or other evidence of payment reasonably acceptable to such
Agent and such Lender.

     (c) The Borrower hereby agrees to indemnify and hold each Agent and each Lender harmless
from and against Taxes and Other Taxes (including, without limitation, Taxes and Other Taxes
imposed on any additional amounts payable under this Section 2.07) paid by such Person, whether
or not such Taxes or Other Taxes were correctly or legally asserted. Such indemnification shall
be paid within ten (10) days from the date on which any such Person makes written demand
therefor specifying in reasonable detail the nature and amount of such Taxes or Other Taxes.

     (d) Each Lender that is organized under the laws of a jurisdiction outside the United
States (a “Non-U.S. Lender”) agrees that it shall, no later than the Effective Date (or,
in the case of a Lender which becomes a party hereto pursuant to Section 11.07 hereof after the
Effective Date, promptly after the date on which such Lender becomes a party hereto) deliver to
the Agents and the Borrower two properly completed and duly executed copies of any of U.S.
Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY or any subsequent versions thereof or
successors thereto, in each case claiming complete exemption
from, or reduced rate of, U.S. Federal withholding tax on payments of interest hereunder.
In addition, in the case of a Non-U.S. Lender claiming exemption from U.S. Federal withholding
tax under Section 871(h) or 881(c) of the Code, such Non-U.S. Lender hereby represents to the
Agents and the Borrower that such Non-U.S. Lender is not a bank for purposes of Section 881(c)
of the Internal Revenue Code, is not a 10-percent shareholder (within the meaning of Section
871(h)(3)(B) of the Internal Revenue Code) of the Borrower and is not a controlled foreign
corporation related to the Borrower (within the meaning of Section 864(d)(4) of the Code), and
such Non-U.S. Lender agrees that it shall promptly notify the Agents and the Borrower in the
event any such representation is no longer accurate. Such forms shall be delivered by each
Non-U.S. Lender on or before the date it becomes a party to this Agreement and on or before the
date, if any, such Non-U.S. Lender changes its applicable lending office by designating a
different lending office (a “New Lending Office”). In addition, each Non-U.S. Lender
shall deliver such forms within twenty

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(20) days after receipt of a written request therefor
from any Agent. Notwithstanding any other provision of this Section 2.07, a Non-U.S. Lender
shall not be required to deliver any form pursuant to this Section 2.07(d) that such Non-U.S.
Lender is not legally able to deliver.

     (e) The Borrower shall not be required to indemnify any Non-U.S. Lender, or pay any
additional amounts to any Non-U.S. Lender, in respect of United States Federal withholding tax
pursuant to this Agreement to the extent that (i) the obligation to withhold amounts with
respect to United States Federal withholding tax existed on the date such Non-U.S. Lender became
a party to this Agreement or, with respect to payments to a New Lending Office, the date such
Non-U.S. Lender designated such New Lending Office with respect to a Loan; provided,
however, that this clause (i) shall not apply to the extent the indemnity payment or
additional amounts any transferee or assignee of any Lender, or any Lender through a New Lending
Office, would be entitled to receive (without regard to this clause (i)) do not exceed the
indemnity payment or additional amounts that the Person making the assignment or transfer to
such transferee or assignee, or Lender making the designation of such New Lending Office, would
have been entitled to receive in the absence of such assignment, transfer or designation, or
(ii) the obligation to pay such additional amounts would not have arisen but for a failure by
such Non-U.S. Lender to comply with the provisions of clause (d) above.

     (f) Any Lender claiming any indemnity payment or additional payment amounts payable
pursuant to this Section 2.07 shall use reasonable efforts (consistent with legal and regulatory
restrictions) to file any certificate or document reasonably requested in writing by the
Borrower or to change the jurisdiction of its applicable lending office if the making of such a
filing or change would avoid the need for or reduce the amount of any such indemnity payment or
additional amount which may thereafter accrue, would not require such Lender to disclose any
information such Lender deems confidential and would not, in the sole determination of such
Lender be otherwise disadvantageous to such Lender.

     (g) The obligations of the Borrower under this Section 2.07 shall survive the termination
of this Agreement and the payment of the Loans and all other amounts payable hereunder.

ARTICLE III

[RESERVED.]

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ARTICLE IV

FEES, PAYMENTS AND OTHER COMPENSATION

     Section 4.01 Audit and Collateral Monitoring Expenses. The Borrower acknowledges that pursuant to Section 7.01(e), representatives of the Agents or
Lenders may visit any of the Borrower’s premises or any location where any of its assets may be
kept and/or conduct audits, inspections, appraisals, valuations and/or field examinations of the
Borrower or the Collateral at any time and from time to time upon reasonable advance written notice
and in a manner so as not to disrupt unduly the business of the Borrower. The Borrower agrees to
pay (i) each examiner’s reasonable out-of-pocket costs and reasonable expenses incurred in
connection with all such visits, audits, inspections, appraisals, valuations and field examinations
and (ii) the actual cost of all visits, audits, inspections, appraisals, valuations and field
examinations conducted by a third party on behalf of the Agents or Lenders.

     Section 4.02 Payments and Computations. The Borrower will make each payment under this Agreement not later than 12:00 p.m. (New York
City time) on the day when due, in lawful money of the United States of America and in immediately
available funds, to the Administrative Agent’s Account. All payments received by the
Administrative Agent after 12:00 p.m. (New York City time) on any Business Day shall be deemed to
have been made on the next succeeding Business Day. All payments shall be made by the Borrower
without set-off, counterclaim, deduction or other defense to the Agents and the Lenders. After
receipt, the Administrative Agent will promptly thereafter, and in any event not later than 4:15
p.m. (Minneapolis time) on such day, cause to be distributed like funds relating to the payment of
principal ratably to the Lenders in accordance with their Pro Rata Shares and like funds relating
to the payment of any other amount payable to any Lender to such Lender, in each case to be applied
in accordance with the terms of this Agreement. Whenever any payment to be made under any such
Loan Document shall be stated to be due on a day other than a Business Day, such payment shall be
made on the next succeeding Business Day and such extension of time shall in such case be included
in the computation of interest or fees, as the case may be. All computations of interest and fees
shall be made by the Administrative Agent on the basis of a year of 360 days for the actual number
of days (including the first day but excluding the last day) occurring in the period for which such
interest or fees are payable. Each determination by the Administrative Agent of an interest rate
or fees hereunder shall be conclusive and binding for all purposes in the absence of manifest
error.

     Section 4.03 Sharing of Payments, Etc.
If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise
of any right of set-off, or otherwise) on account of any Obligation in excess of its ratable share
of payments obtained by all the Lenders in respect of the same Obligation, such Lender shall
forthwith purchase from the other Lenders such participations in such similar obligations held by
them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with
each of them; provided, however, that if all or any portion of such excess payment
is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be
rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery together with an amount

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equal to such Lender’s ratable share (according to the
proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Lender of any interest or other amount paid by the purchasing Lender
in respect of the total amount so recovered). The Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 4.03 may, to the fullest extent
permitted by law, exercise all of its rights (including the Lender’s right of set-off) with respect
to such participation as fully as if such Lender were the direct creditor of the Borrower in the
amount of such participation.

     Section 4.04 Apportionment of Payments.

     (a) Allocations. All payments of principal and interest in respect of outstanding
Loans, all payments of fees (other than the fees set forth in Section 2.06(b) hereof and the
audit and collateral monitoring expenses provided for in Section 4.01) and all other payments in
respect of any other Obligations, shall be allocated by the Administrative Agent among the
Agents and such of the Lenders as are entitled thereto, in proportion to their respective Pro
Rata Shares or otherwise as provided herein or, in respect of payments not made on account of
Loans, as designated by the Person making payment when the payment is made.

     (b) After Event of Default. After the occurrence and during the continuance of an
Event of Default, the Administrative Agent may, and upon the direction of the Required Lenders
shall, apply all payments in respect of any Obligations and all proceeds of the Collateral,
subject to the provisions of this Agreement, (i) first, ratably to pay the Obligations
in respect of any fees, expense reimbursements, indemnities and other amounts then due to the
Agents until paid in full; (ii) second, ratably to pay the Obligations in respect of any
fees, expense reimbursements and indemnities then due to the Lenders until paid in full; (iii)
third, ratably to pay interest due in respect of the Loans until paid in full; (iv)
fourth, ratably to pay principal of the Loans until paid in full; and (v) fifth,
ratably to pay all other Obligations then due and payable.

     (c) Conflicts. In the event of a direct conflict between the priority provisions
of this Section 4.04 and other provisions contained in any other Loan Document, it is the
intention of the parties hereto that both such priority provisions in such documents shall be
read together and construed, to the fullest extent possible, to be in concert with each
other. In the event of any actual, irreconcilable conflict that cannot be resolved as
aforesaid, the terms and provisions of this Section 4.04 shall control and govern.

     Section 4.05 Increased Costs, Reduced Return and Funding Losses. (a) If any Lender or any Agent shall have reasonably determined that the adoption or
implementation of, or any change in, any law, rule, treaty or regulation, or any policy, guideline
or directive of, or any change in, the interpretation or administration thereof by, any court,
central bank or other administrative or Governmental Authority, or compliance by any Lender or any
Agent or any Person controlling any such Lender or any such Agent with any directive of, or
guideline from, any central bank or other Governmental Authority (in each case, whether or not
having the force of law) subsequent to the Effective Date (each a “Change in Law”), shall
(i) subject such Lender

- 25 -

 

or such Agent, or any Person controlling such Lender or such Agent to any
tax, duty or other charge with respect to this Agreement or any Loan made by such Lender or such
Agent, or change the basis of taxation of payments to such Lender or such Agent or any Person
controlling such Lender or such Agent of any amounts payable hereunder (except for taxes on the
overall net income of such Lender or such Agent or any Person controlling such Lender or such
Agent), (ii) impose, modify or deem applicable any reserve, special deposit or similar requirement
against any Loan or against assets of or held by, or deposits with or for the account of, or credit
extended by, such Lender or such Agent or any Person controlling such Lender or such Agent or (iii)
impose on such Lender or such Agent or any Person controlling such Lender or such Agent any other
condition regarding this Agreement or any Loan, and the result of any event referred to in clauses
(i), (ii) or (iii) above shall be to increase the cost to such Lender or such Agent of making any
Loan, or agreeing to make any Loan, or to reduce any amount received or receivable by such Lender
or such Agent hereunder, then, upon demand by such Lender or such Agent, the Borrower shall pay to
such Lender or such Agent such additional amounts as will compensate such Lender or such Agent for
such increased costs or reductions in amount.

     (b) If any Lender or any Agent shall have reasonably determined that any Change in Law
either (i) affects or would affect the amount of capital required or expected to be maintained
by such Lender or such Agent or any Person controlling such Lender or such Agent, and such
Lender or such Agent determines that the amount of such capital is increased as a direct or
indirect consequence of any Loans made or maintained, such Lender’s or such Agent’s or such
other controlling Person’s other obligations hereunder, or (ii) has or would have the effect of
reducing the rate of return on such Lender’s or such Agent’s such other controlling Person’s
capital to a level below that such Lender or such Agent or such controlling Person could have
achieved but for such circumstances as a consequence of any Loans made or maintained or any
agreement to make Loans or such Lender’s or such Agent’s or such other controlling Person’s
other obligations hereunder (in each case, taking into consideration, such Lender’s or such
Agent’s or such other controlling Person’s policies with respect to capital adequacy), then,
upon demand by such Lender or such Agent, the Borrower shall pay to such Lender or such Agent
from time to time such additional amounts as will compensate such Lender or such Agent for such
cost of maintaining such increased capital or
such reduction in the rate of return on such Lender’s or such Agent’s or such other
controlling Person’s capital.

     (c) The Borrower shall reimburse, hold harmless or otherwise compensate each Agent and
Lender for any loss, cost or expense incurred by any Agent or Lender as a result of the failure
to borrow or prepay any Loan on the date specified therefor in any Notice of Borrowing or notice
of prepayment or otherwise when such prepayment is scheduled to be due.

     (d) All amounts payable under this Section 4.05 shall bear interest from the date that is
ten (10) days after the date of demand by any Lender or any Agent until payment in full to such
Lender or such Agent at the Reference Rate. A certificate of such Lender or such Agent claiming
compensation under this Section 4.05, specifying the event herein above described and the nature
of such event shall be submitted by such Lender or such Agent to

- 26 -

 

the Borrower, setting forth the additional amount due and an explanation of the calculation
thereof, and such Lender’s or such Agent’s reasons for invoking the provisions of this Section
4.05, and shall be final and conclusive absent manifest error.

ARTICLE V

CONDITIONS TO LOANS

          Section 5.01 Conditions Precedent to Effectiveness and Initial Loans. The effectiveness of this
Agreement and the obligation of each Lender to make its initial Loan requested to be made by it
shall be subject to the satisfaction of all of the following conditions precedent:

               (a) Payment of Fees, Etc. The Borrower shall have paid all fees, costs, expenses
and taxes payable pursuant to Section 2.06 and Section 11.04 (including, without limitation,
Professional Fees) required to be paid to any Agent, the Ad Hoc Committee and the Lenders on or
before the Effective Date.

               (b) Delivery of Documents. The Administrative Agent shall have received on or
before the Effective Date the following, each in form and substance satisfactory to the
Administrative Agent, the Lenders and their respective counsel, in each case in their sole
discretion, and, unless indicated otherwise, dated the Effective Date:

                    (i) this Agreement, duly executed by the Borrower;

                    (ii) (A) the Intercreditor Agreement, duly executed by each of the parties thereto, and (B)
the Guaranties and Security Agreements, duly executed by each Guarantor, and the Mortgages, if any,
duly executed by the Borrower or applicable Guarantor, together with such policies of title
insurance, surveys and other instruments as the Lenders shall reasonably request;

                    (iii) certified copies of request for copies of information on Form UCC-11 listing all
effective financing statements that name the Borrower or any Guarantor as debtor and that are filed
in the respective jurisdictions in which the Borrower or any Guarantor are organized, together with
copies of such financing statements, none of which, except as permitted herein or otherwise agreed
in writing by the Required Lenders, shall cover any of the Collateral;

                    (iv) a copy of the resolutions of the Board of Directors of the Borrower, certified as of the
Effective Date by an Authorized Officer thereof, authorizing (A) the borrowings hereunder and the
transactions contemplated by the Loan Documents to which the Borrower is a party and (B) the
execution, delivery and performance by the Borrower of each Loan Document to which the Borrower is
a party and the execution and delivery of the other documents to be delivered by the Borrower in
connection herewith and therewith;

- 27 -

 

                    (v) a copy of the resolutions of the Board of Directors of each Guarantor, certified as of the
Effective Date by an Authorized Officer thereof, authorizing (A) the transactions contemplated by
the Loan Documents to which such Guarantor is a party and (B) the execution, delivery and
performance by such Guarantor of each Loan Document to which such Guarantor is a party and the
execution and delivery of the other documents to be delivered by such Guarantor in connection
herewith and therewith;

                    (vi) a certificate of an Authorized Officer of the Borrower and each Guarantor, certifying the
names and true signatures of the representatives of the Borrower and each Guarantor, respectively,
authorized to sign each Loan Document to which the Borrower or any such Guarantor is a party, as
applicable, and the other documents to be executed and delivered by the Borrower or any such
Guarantor in connection herewith and therewith, together with evidence of the incumbency of such
Authorized Officers;

                    (vii) a certificate of the appropriate official(s) of the State of incorporation or
organization and each State of foreign qualification of the Borrower and each Guarantor certifying
as to the subsistence in good standing of the Borrower and each such Guarantor, respectively, in
such States, dated as of a date within ten (10) days of the Effective Date;

                    (viii) a true and complete copy of the certificate of incorporation or limited partnership, as
applicable, and any other publicly filed organizational document of the Borrower and each
Guarantor, certified as of a recent date not more than ten (10) days prior to the Effective Date by
an appropriate official of the State of incorporation or organization of the Borrower or any such
Guarantor, as applicable;

                    (ix) a copy of the charter, by-laws or limited partnership agreement, as applicable, and any
other organizational document of the Borrower and each Guarantor (other than such documents
delivered pursuant to Section 5.01(b)(viii)), together with all amendments thereto, certified as of
the Effective Date by an Authorized Officer of the Borrower or any such Guarantor, respectively;

                    (x) a certificate of an Authorized Officer of the Borrower, certifying as of the Effective
Date as to the matters set forth in subsections (a) and (b) of Section 5.02;

                    (xi) a legal opinion of Holland & Knight LLP, counsel to the Borrower, satisfactory in scope,
form and substance to the Lenders and the Agents in their sole discretion;

                    (xii) the “Officers’ Certificate” referred to in clause (1) of the definition of “Credit
Agreement Debt” contained in the Indenture;

                    (xiii) a copy of the Approved Disbursements;

                    (xiv) evidence of the insurance coverage required by Section 7.01(g) with such endorsements as
to the named insureds or loss payees thereunder as the Required Lenders may request and providing
that such policy may be terminated or canceled (by the

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insurer or the insured thereunder) only upon thirty (30) days’ prior written notice to the
Collateral Agent and each such named insured or loss payee, together with evidence of the payment
of all premiums due in respect thereof for such period as the Required Lenders may request;

                    (xv) a list of all Material Contracts of the Borrower and the Guarantors, as in effect on the
Effective Date, certified as true, correct and complete by an Authorized Officer of the Borrower;

                    (xvi) (A) such UCC-1 financing statements as are necessary or desirable in order to evidence
and perfect the Liens in favor of the Administrative Agent or the Collateral Agent in the
Collateral, each satisfactory in form and substance to the Required Lenders and (B) the SunTrust
Amended Control Agreement, duly executed by each of the parties thereto; and

                    (xvii) such other agreements, instruments, approvals, opinions and other documents, each in
form and substance, satisfactory to the Agents and the Required Lenders in their sole discretion,
as the Agents or the Required Lenders may reasonably request.

               (c) Perfection and Priority of Liens. The Lenders shall be satisfied that the
Collateral Agent has been granted, and holds, for the benefit of the Agents and the Lenders, a
Lien on, and security interest in, all of the Collateral, perfected as contemplated in Section
5.01(b)(xvi) above and first priority, subject only to Permitted Liens.

               (d) Consents, Approvals, Etc. The Borrower and each Guarantor shall have obtained
all consents and approvals of any Governmental Authority or other Person as may be necessary to
allow (A) the Borrower to execute, deliver and perform its obligations hereunder and (B) the
Borrower and each Guarantor to execute, deliver and perform their respective obligations under
the other Loan Documents to which any of them is or shall be a party and each other agreement or
instrument to be executed and delivered by the Borrower or any Guarantor pursuant thereto or in
connection therewith, all such consents and approvals to remain in full force and effect on the
Effective Date.

               (e) Litigation. Except as set forth in Schedule 6.01(f), (i) there shall
be no pending or, to the knowledge of the Borrower or any Guarantor, threatened action, suit or
proceeding affecting the Borrower or any Guarantor before any court or other Governmental
Authority or any arbitrator that (A) could reasonably be expected to have a Material Adverse
Effect or (B) purports to enjoin, prohibit, restrain, or otherwise affect this Agreement or any
other Loan Document or any transaction contemplated hereby or thereby.

               (f) Approved Disbursements. The Borrower, the Lenders and the Administrative Agent
shall have agreed upon the Approved Disbursements.

               (g) Due Diligence. The Lenders shall have completed their due diligence
investigation with respect to the Borrower and the Guarantors and the results of such
investigation shall be satisfactory to the Lenders in their sole discretion.

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               (h) Chief Restructuring Officer; Crisis Management Firm. The Borrower shall have
retained a crisis management firm and appointed a Chief Restructuring Officer (a “CRO”),
in each case acceptable to the Lenders in their sole discretion, and, in each case, the terms
and conditions of such crisis management firm’s retention and such CRO’s appointment shall be
acceptable to the Lenders in their sole discretion.

               (i) Engagement Letter. The Borrower shall have executed and delivered to the
Lenders’ counsel an engagement letter in form and substance satisfactory to the Lenders’ counsel
in its sole discretion.

               (j) Notices. The Administrative Agent shall have received a Notice of Borrowing
pursuant to Section 2.02 hereof.

     Section 5.02 Conditions Precedent to All Loans. The obligation of each Lender to make any Loan
requested to be made by it on any Funding Date, including its initial Loan, is subject to the
satisfaction of each of the following conditions precedent as of each such date:

               (a) Representations and Warranties. As of such date (except where such representation
and warranty expressly relates to a specific date, in which case, as of such specified date), both
before and after giving effect to the Loans to be made on such date, all of the representations and
warranties of the Borrower and the Guarantors contained in Section 6.01 and in the other Loan
Documents shall be true, correct and complete in all respects.

               (b) No Defaults. As of such date, no Event of Default or Default shall have occurred
and be continuing or would result from the making of the requested Loan.

               (c) No Material Adverse Effect. No Material Adverse Effect shall have occurred.

               (d) Legality. The making of such Loans shall not contravene any law, rule or
regulation applicable to any Agent or any Lender. No law, regulation, order, judgment or decree of
any Governmental Authority shall exist, and the Administrative Agent shall not have received any
notice that any action, suit, investigation, litigation or proceeding is pending or threatened in
any court or before any arbitrator or Governmental Authority, that (i) purports to enjoin,
prohibit, restrain or otherwise affect (A) the ability of the Borrower or any Guarantor to perform
their respective obligations hereunder and under each Loan Document, (B) the making of such Loans
or (C) the consummation of the transactions contemplated hereby or contemplated under the other
Loan Documents or (ii) would reasonably be expected to result in a Material Adverse Effect.

               (e) Notice of Borrowing. The Borrower shall have complied with the requirements of
Sections 2.01 and 2.02 with respect to the Loans requested to be made on such Funding Date.

               (f) Use of Proceeds. Other than in the case of Loans the proceeds of which shall be
used solely to fund expenditures constituting Approved Disbursements, the Required

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Lenders shall have approved in writing the use of proceeds of the Loans requested to be made on
such Funding Date, which approval may be granted or withheld in their sole discretion.

Each submission by the Borrower of a Notice of Borrowing and each acceptance by the Borrower of the
proceeds of each Loan made hereunder, shall constitute a representation and warranty by the
Borrower as of the Funding Date in respect of such Loan that all conditions set forth in paragraphs
(a), (b) and (c) of this Section 5.02 have been satisfied.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

     Section 6.01 Representations and Warranties. The Borrower hereby represents and warrants to the Agents
and the Lenders as follows:

               (a) Organization, Good Standing, Etc. The Borrower (i) is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware, (ii)
has all requisite power and authority to conduct its business as now conducted and as presently
contemplated and to make the borrowings hereunder, and to execute and deliver each Loan Document
to which it is a party, and to consummate the transactions contemplated thereby, and (iii) is
duly qualified to do business and is in good standing in each jurisdiction where the failure to
be so qualified reasonably could be expected to result in a Material Adverse Effect. Each
Guarantor (i) is a corporation, limited liability company or limited partnership, as applicable,
duly organized, validly existing and in good standing under the laws of its jurisdiction of
formation, (ii) has all requisite power and authority to conduct its business as now conducted
and as presently contemplated and to guarantee and secure the borrowings hereunder, and to
execute and deliver each Loan Document to which it is a party, and to consummate the
transactions contemplated thereby, and (iii) is duly qualified to do business and is in good
standing in each jurisdiction where the failure to be so qualified reasonably could be expected
to result in a Material Adverse Effect.

               (b) Authorization, Etc. The execution, delivery and performance by the Borrower
and each Guarantor of each Loan Document to which they are or will become parties (i) have been
duly authorized by all necessary corporate or limited partnership action, as applicable, (ii) do
not and will not contravene its charter or by-laws or other document of formation, or any
applicable law or any contractual restriction binding on or otherwise affecting it or any of its
properties (including any contractual restriction under any of the Indenture Documents) or any
order or decree of any court or Governmental Authority, (iii) do not and will not result in or
require the creation of any Lien (other than in favor of the Collateral Agent pursuant to any
Loan Document) upon or with respect to any of its properties, and (iv) do not and will not
result in any default, noncompliance, suspension, revocation, impairment, forfeiture or
nonrenewal of any permit, license, authorization or approval applicable to its operations or any
of its properties. Without limiting the foregoing,

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this Agreement qualifies as the “Credit Agreement” as defined in the Indenture and the
Obligations are and will be entitled to the lien priority and other benefits afforded thereto
under the Intercreditor Agreement.

               (c) Governmental Approvals. No authorization or approval or other action by, and
no notice to or filing with, any Governmental Authority is required in connection with the due
execution, delivery and performance by the Borrower or any Guarantor of any Loan Document to
which they are or will become parties.

               (d) Execution and Binding Effect. This Agreement and each of the other Loan
Documents to which the Borrower or the Guarantors are or will become parties, when delivered
hereunder, is or will be, duly and validly executed and delivered by the Borrower and each
Guarantor, respectively, and constitutes legal, valid and binding obligations of the Borrower
and each Guarantor, enforceable in accordance with the terms hereof or thereof, except as
enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization,
moratorium, or similar laws relating to or limiting creditors’ rights generally.

               (e) Subsidiaries. As of the Effective Date, the Borrower has no Subsidiaries.

               (f) Litigation; Commercial Tort Claims. Except as set forth in Schedule
6.01(f), (i) there is no pending or, to the knowledge of the Borrower, after due inquiry,
threatened action, suit or proceeding affecting the Borrower or any Guarantor, before any court
or other Governmental Authority or any arbitrator that (A) could reasonably be expected to have
a Material Adverse Effect, (B) purports to enjoin, prohibit, restrain or otherwise affect any
Material Contract of the Borrower or any Guarantor or (C) purports to enjoin, prohibit, restrain
or otherwise affect this Agreement or any other Loan Document or any transaction contemplated
hereby or thereby and (ii) as of the Effective Date, neither the Borrower nor any Guarantor
holds any commercial tort claims other than commercial tort claims the aggregate amount of which
is not in excess of $50,000.

               (g) Financial Condition; Approved Disbursements.

                    (i) The Financial Statements fairly present in all material respects the financial condition
of the Borrower as at the date thereof and the results of operations of the Borrower for the fiscal
period ended on such date, all in accordance with GAAP, and, except as set forth in Schedule
6.01(g), since December 31, 2007 no event or development has occurred that has had or could
reasonably be expected to have a Material Adverse Effect.

                    (ii) The Approved Disbursements has been prepared in good faith by the Borrower, and is based
on assumptions believed by the Borrower to be reasonable at the time made.

               (h) Compliance with Law, Etc. Neither the Borrower nor any Guarantor is in violation
of its respective organizational documents. As of the Effective Date, except as set forth on
Schedule 6.01(h), neither the Borrower nor any Guarantor is in violation of any material
law, rule, regulation, judgment or order of any Governmental Authority applicable to it or any of
its

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property or assets, or any material term of any agreement or instrument (including, without
limitation, any Material Contract) binding on or otherwise affecting the Borrower or any Guarantor
or any of their respective properties. No Default or Event of Default has occurred and is
continuing. No Indenture Event of Default has occurred and is continuing, and the Borrower has
received no notice of any failure or alleged failure by it to comply with the terms of any of the
Indenture Documents.

               (i) ERISA. (A) Except as set forth on Schedule 6.01(i), (i) each Employee
Plan is in substantial compliance with ERISA and the Internal Revenue Code, (ii) no Termination
Event has occurred or is reasonably expected to occur with respect to any Employee Plan, (iii) the
most recent annual report (Form 5500 Series) with respect to each Employee Plan, including any
required Schedule B (Actuarial Information) thereto, copies of which have been filed with the
Internal Revenue Service and delivered to the Agents, is complete and correct and fairly presents
the funding status of such Employee Plan, and since the date of such report there has been no
material adverse change in such funding status, (iv) copies of each agreement entered into with the
PBGC, the U.S. Department of Labor or the Internal Revenue Service with respect to any Employee
Plan have been delivered to the Agents, (v) no Employee Plan had an accumulated or waived funding
deficiency or permitted decrease which would create a deficiency in its funding standard account or
has applied for an extension of any amortization period within the meaning of Section 412 of the
Internal Revenue Code at any time during the previous 60 months, and (vi) no Lien imposed under the
Internal Revenue Code or ERISA exists or is likely to arise on account of any Employee Plan within
the meaning of Section 412 of the Internal Revenue Code. Except as set forth on Schedule
6.01(i), neither the Borrower, any Guarantors nor any of their respective ERISA Affiliates has
incurred any withdrawal liability under ERISA with respect to any Multiemployer Plan, or is aware,
after due inquiry, of any facts indicating that it or any of its ERISA Affiliates may in the future
incur any such withdrawal liability. (B) Neither the Borrower, any Guarantor nor any of their
respective ERISA Affiliates nor any fiduciary of any Employee Plan has (i) engaged in a nonexempt
prohibited transaction described in Sections 406 of ERISA or 4975 of the Internal Revenue Code,
(ii) failed to pay any required installment or other payment required under Section 412 of the
Internal Revenue Code on or before the due date for such required installment or payment, (iii)
engaged in a transaction within the meaning of Section 4069 of ERISA or (iv) incurred any liability
to the PBGC which remains outstanding other than the payment of premiums, and there are no premium
payments which have become due which are unpaid. (C) There are no pending or, to the best
knowledge of the Borrower, threatened claims, actions, proceedings or lawsuits (other than claims
for benefits in the normal course) asserted or instituted against (i) any Employee Plan or its
assets, (ii) any fiduciary with respect to any Employee Plan, or (iii) the Borrower, any Guarantor
or any of their respective ERISA Affiliates with respect to any Employee Plan. (D) Except as
required by Section 4980B of the Internal Revenue Code, neither the Borrower, any Guarantor nor any
of their respective ERISA Affiliates maintains an employee welfare benefit plan (as defined in
Section 3(1) of ERISA) that provides health or welfare benefits (through the purchase of insurance
or otherwise) for any retired or former employee of the Borrower, any Guarantor or any of their
respective ERISA Affiliates or coverage after a participant’s termination of employment.

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               (j) Taxes, Etc. All Federal, state and local tax returns and other reports
required by applicable law to be filed by the Borrower and each Guarantor, have been filed, or
extensions have been obtained, and all taxes, assessments and other governmental charges imposed
upon the Borrower or any Guarantor, or any property of the Borrower or any Guarantor, and which
have become due and payable on or prior to the date hereof have been paid, except to the extent
contested in good faith by proper proceedings that stay the imposition of any penalty, fine or
Lien resulting from the non-payment thereof and with respect to which adequate reserves have
been set aside for the payment thereof on the Financial Statements in accordance with GAAP.

               (k) Regulations T, U and X. The Borrower is not, nor will be, engaged in the
business of extending credit for the purpose of purchasing or carrying margin stock (within the
meaning of Regulation T, U or X), and no proceeds of any Loan will be used to purchase or carry
any margin stock or to extend credit to others for the purpose of purchasing or carrying any
margin stock.

               (l) Adverse Agreements, Etc. Except as set forth on Schedule 6.01(l),
neither the Borrower nor any Guarantor, is a party to any agreement or instrument, or subject to
any charter or other corporate restriction or any judgment, order, regulation, ruling or other
requirement of a court or other Governmental Authority, the performance of which in compliance
therewith by the Borrower or such Guarantor has had, or in the future could reasonably be
expected to have, a Material Adverse Effect.

               (m) Employment Agreements. Schedule 6.01(m) sets forth, as of the
Effective Date, a complete and correct list of all employment agreements and all other
agreements between the Borrower and any member of senior management of the Borrower.

               (n) Permits, Etc. The Borrower and each Guarantor has, and is in compliance in all
material respects with, all permits, licenses, authorizations, approvals, entitlements and
accreditations required for the Borrower and each such Guarantor lawfully to own, lease, manage
or operate, or to acquire, each business currently owned, leased, managed or operated, or to be
acquired, by the Borrower and each such Guarantor, except where the failure to have any such
permit, license, authorization, approval, entitlement or accreditation or failure to so comply
could not reasonably be expected to result in a Material Adverse Effect. To the knowledge of
the Borrower, after due inquiry, no condition exists or event has occurred which, in itself or
with the giving of notice or lapse of time or both, would result in the suspension, revocation,
impairment, forfeiture or non-renewal of any such permit, license, authorization, approval,
entitlement or accreditation which could reasonably be expected to result in a Material Adverse
Effect, and neither the Borrower nor any Guarantor has received any notice asserting that any
thereof is not in full force and effect.

               (o) Properties. (i) The Borrower and each Guarantor has good and marketable title
to, valid leasehold interests in, or valid licenses to use, all property and assets material to
its business, free and clear of all Liens, except Permitted Liens. All such properties and
assets, to the extent material to the business and operations of the Borrower or

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any Guarantor, are in good working order and condition, ordinary wear and tear and
obsolescence excepted.

                    (ii) As of the Effective Date, the Borrower does not own any real property and has valid
leasehold interests in the Lease described on Schedule 6.01(o).

               (p) Full Disclosure. None of the reports, financial statements (other than
projected financial information), certificates or other written information furnished by or on
behalf of the Borrower or any Guarantor to any Agent or Lender in connection with the
negotiation of this Agreement or delivered hereunder (as modified or supplemented by other
information so furnished) contained or contains any material misstatement of fact or omits to
state any material fact necessary to make the statements therein, when taken as a whole with all
other furnished written information, not misleading in light of the circumstances under which
such information was provided; provided that, with respect to projected financial
information furnished by or on behalf of the Borrower or any Guarantor to any Agent or Lender on
or after the Effective Date, the Borrower represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time prepared.

               (q) Environmental Matters. Except as set forth on Schedule 6.01(q), (i)
the operations of the Borrower and each Guarantor are in compliance with all Environmental Laws
except where failure to so comply could not reasonably be expected to result in a Material
Adverse Effect; (ii) there has been no Release at any of the properties owned or operated by the
Borrower or any Guarantor, or, to the knowledge of the Borrower, after due inquiry, any
predecessor in interest thereof, or at any disposal or treatment facility which received
Hazardous Materials generated by the Borrower or any Guarantor or, to the knowledge of the
Borrower, after due inquiry, any predecessor in interest thereof which could reasonably be
expected to have a Material Adverse Effect; (iii) no Environmental Action has been asserted
against the Borrower, any Guarantor or, to the knowledge of the Borrower, after due inquiry, any
predecessor in interest thereof nor does the Borrower have knowledge, after due inquiry, or
notice of any threatened or pending Environmental Action against the Borrower, any Guarantor or
any predecessor in interest thereof which could reasonably be expected to have a Material
Adverse Effect; (iv) no Environmental Actions have been asserted against any facilities that may
have received Hazardous Materials generated by the Borrower, any Guarantor or, to the knowledge
of the Borrower, after due inquiry, any predecessor in interest thereof which could reasonably
be expected to have a Material Adverse Effect; (v) no property now or formerly owned or operated
by the Borrower or any Guarantor has been used as a treatment or disposal site for any Hazardous
Material during the period of such ownership or operation; (vi) neither the Borrower nor any
Guarantor, has failed to report to the proper Governmental Authority any Release which is
required to be so reported by any Environmental Laws that could reasonably be expected to have a
Material Adverse Effect; (vii) the Borrower and each Guarantor holds all licenses, permits and
approvals required under any Environmental Laws in connection with the operation of the business
carried on by it, except for such licenses, permits and approvals as to which the Borrower’s or
any such Subsidiary’s or Guarantor’s failure to maintain or comply with could

- 35 -

 

not have a Material Adverse Effect; and (viii) neither the Borrower nor any Guarantor has
received any notification pursuant to any Environmental Laws that (A) any work, repairs,
construction or Capital Expenditures are required to be made as a condition of continued
compliance with any Environmental Laws, or any license, permit or approval issued pursuant
thereto or (B) any license, permit or approval referred to above is about to be reviewed, made
subject to limitations or conditions, revoked, withdrawn or terminated, in each case, except as
could not have a Material Adverse Effect.

               (r) Insurance. The Borrower and each Guarantor keeps its property adequately
insured and maintains (i) insurance to such extent and against such risks, including fire, as is
customary with companies in the same or similar businesses, (ii) workmen’s compensation
insurance in the amount required by applicable law, (iii) public liability insurance, which
shall include product liability insurance, in an amount customary with companies in the same or
similar business against claims for personal injury or death on properties owned, occupied or
controlled by it, and (iv) such other insurance as may be required by law.

               (s) [Reserved.]

               (t) Location of Bank Accounts. Schedule 6.01(t) sets forth a complete and
accurate list as of the Effective Date of all deposit, checking and other bank accounts, all
securities and other accounts maintained with any broker dealer and all other similar accounts
maintained by the Borrower and each Guarantor, together with a description thereof
(i.e., the bank or broker dealer at which such deposit or other account is maintained
and the account number and the purpose thereof).

               (u) Intellectual Property. Except as set forth on Schedule 6.01(u), the
Borrower and the Guarantors own or license or otherwise have the right to use all licenses,
permits, patents, patent applications, trademarks, trademark applications, service marks,
tradenames, copyrights, copyright applications, franchises, authorizations, non-governmental
licenses and permits and other intellectual property rights that are necessary for the operation
of the business of the Borrower and the Guarantors, without infringement upon or conflict with
the rights of any other Person with respect thereto, except for such infringements and conflicts
that, individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect. Set forth on Schedule 6.01(u) is a complete and accurate list as of the
Effective Date of all registered patents, patent applications, registered trademarks, trademark
applications, and registered copyrights, and copyright applications. No slogan or other
advertising device, product, process, method, substance, part or other material now employed, or
now contemplated to be employed, by the Borrower or any Guarantor, infringes upon or conflicts
with any rights owned by any other Person, and no claim or litigation regarding any of the
foregoing is pending or threatened, except for such infringements and conflicts which could not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

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               (v) Material Contracts. Set forth on Schedule 6.01(v) is a complete and
accurate list as of the Effective Date of all Material Contracts of the Borrower and each
Guarantor, showing the parties and subject matter thereof and amendments and modifications
thereto.

               (w) Investment Company Act. The Borrower is not an “investment company” or an
“affiliated person” or “promoter” of, or “principal underwriter” of or for, an “investment
company”, as such terms are defined in the Investment Company Act of 1940, as amended.

               (x) Employee and Labor Matters. There is (i) no unfair labor practice complaint
pending or, to the knowledge of the Borrower, after due inquiry, threatened against the Borrower
or any Guarantor before any Governmental Authority and no grievance or arbitration proceeding
pending or threatened against the Borrower or any Guarantor which arises out of or under any
collective bargaining agreement, (ii) no strike, labor dispute, slowdown, stoppage or similar
action or grievance pending or threatened against the Borrower or any Guarantor or (iii) to the
knowledge of the Borrower, after due inquiry, no union representation question existing with
respect to the employees of the Borrower or any Guarantor and no union organizing activity
taking place with respect to any of the employees of the Borrower or any Guarantor. Neither the
Borrower nor any of its ERISA Affiliates has incurred any liability or obligation under the
Worker Adjustment and Retraining Notification Act (“WARN”) or similar state law, that
remains unpaid or unsatisfied. The hours worked and payments made to employees of the Borrower
and the Guarantors have not been in violation of the Fair Labor Standards Act or any other
applicable legal requirements, except to the extent such violations could not, individually or
in the aggregate, reasonably be expected to result in a Material Adverse Effect. All material
payments due from the Borrower or the Guarantors on account of wages and employee health and
welfare insurance and other benefits have been paid or accrued as a liability on the books of
the Borrower and the Guarantors, respectively, except where the failure to do so could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

               (y) Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of
Business; Chief Executive Office; FEIN. Schedule 6.01(y) sets forth a complete and
accurate list as of the Effective Date of (i) the exact legal name of the Borrower, (ii) the
jurisdiction of organization of the Borrower, (iii) the organizational identification number of
the Borrower, (or indicates that such Person has no organizational identification number), (iv)
each place of business of the Borrower, (v) the chief executive office of the Borrower, and (vi)
the federal employer identification number of the Borrower.

               (z) Indenture Collateral; Shared Collateral. There is no item of Indenture
Collateral (other than Disbursement Account Collateral (as defined in the Indenture) and the
SunTrust CD) that does not also constitute Collateral, and all Collateral constitutes Shared
Collateral (as defined in the Indenture and the Intercreditor Agreement).

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ARTICLE VII

COVENANTS OF THE BORROWER

     Section 7.01 Affirmative Covenants. Until Termination, the Borrower will, and will cause each of its
Subsidiaries to, unless the Required Lenders shall otherwise consent in writing:

               (a) Reporting Requirements. Furnish to each of the Lenders and the Administrative
Agent:

                    (i) the same information that is required pursuant to Section 4.02 of the Indenture as in
effect on the date hereof, in the manner and at the times set forth therein, provided that if any
such information is filed electronically with the SEC through the SEC’s Electronic Data Gathering,
Analysis and Restricted System (or any successor system), the Borrower shall notify the
Administrative Agent and the Lenders in writing that such filing is to be made electronically with
the SEC within the time periods that would be applicable to the Borrower if it were subject to
Section 13(a) or 15(d) of the Exchange Act;

                    (ii) immediately upon the Borrower obtaining knowledge of any condition or event which
constitutes an Event of Default or Default or, with the giving of notice and/or the passage of
time, would constitute an Indenture Event of Default, a certificate of an Authorized Officer of the
Borrower specifying (A) the nature and period of existence of any such condition or event and (B)
the action the Borrower has taken and proposes to take with respect thereto;

                    (iii) as soon as possible, and in any event within two (2) Business Days, after the occurrence
of any event or development that could reasonably be expected to have a Material Adverse Effect, a
certificate of an Authorized Officer of the Borrower setting forth the details of such event or
development and the action which the Borrower has taken and proposes to take with respect thereto;

                    (iv) (A) as soon as possible, and in any event within ten (10) days, after the Borrower, any
Guarantor or any ERISA Affiliate thereof knows or has reason to know that (1) any Reportable Event
with respect to any Employee Plan has occurred, (2) any other Termination Event with respect to any
Employee Plan has occurred, or (3) an accumulated funding deficiency has been incurred or an
application has been made to the Secretary of the Treasury for a waiver or modification of the
minimum funding standard (including installment payments) or an extension of any amortization
period under Section 412 of the Internal Revenue Code with respect to an Employee Plan, a statement
of an Authorized Officer of the Borrower setting forth the details of such occurrence and the
action, if any, which the Borrower, any Guarantor or such ERISA Affiliate proposes to take with
respect thereto, (B) promptly and in any event within three (3) days after receipt thereof by the
Borrower, any Guarantor or any ERISA Affiliate thereof from the PBGC, copies of each notice
received by the Borrower, any Guarantor or any ERISA Affiliate thereof of the PBGC’s intention to
terminate any Plan or to have a trustee

- 38 -

 

appointed to administer any Plan, (C) promptly and in any event within ten (10) days after the
filing thereof with the Internal Revenue Service if requested by any Agent or Lender, copies of
each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to
each Employee Plan and Multiemployer Plan, (D) promptly and in any event within ten (10) days after
the Borrower, any Guarantor or any ERISA Affiliate thereof knows or has reason to know that a
required installment within the meaning of Section 412 of the Internal Revenue Code has not been
made when due with respect to an Employee Plan, (E) promptly and in any event within three (3) days
after receipt thereof by the Borrower, any Guarantor or any ERISA Affiliate thereof from a sponsor
of a Multiemployer Plan or from the PBGC, a copy of each notice received by the Borrower, any
Guarantor or any ERISA Affiliate thereof concerning the imposition or amount of withdrawal
liability under Section 4202 of ERISA or indicating that such Multiemployer Plan may enter
reorganization status under Section 4241 of ERISA, and (F) promptly and in any event within ten
(10) days after the Borrower, any Guarantor or any ERISA Affiliate thereof sends notice of a plant
closing or mass layoff (as defined in WARN) to employees, copies of each such notice sent by the
Borrower, any Guarantor or such ERISA Affiliate thereof;

                    (v) promptly after the commencement or threatened commencement thereof but in any event not
later than two (2) Business Days after service of process with respect thereto on, or the obtaining
of knowledge thereof by, the Borrower or any Guarantor, notice of each pending or threatened
action, suit or proceeding before any court or other Governmental Authority or other regulatory
body or any arbitrator, or any material adverse development therein, which could reasonably be
expected to have a Material Adverse Effect;

                    (vi) as soon as possible and in any event within three (3) Business Days after receipt or
delivery thereof, copies of any material notices that the Borrower or any Guarantor delivers or
receives in connection with any Material Contract of the Borrower or any Guarantor, which notice or
the subject matter thereof is or could reasonably be expected to be adverse to the Borrower or any
Guarantor;

                    (vii) simultaneously with the delivery thereof by the Borrower, and promptly following receipt
thereof by the Borrower, a copy of each notice, certificate, report, financial statement or other
document or instrument given or received by the Borrower under the Indenture;

                    (viii) promptly upon receipt thereof, copies of all financial reports (including, without
limitation, management letters), if any, submitted to the Borrower by its auditors upon completion
of any annual or interim audit of the books thereof; and

                    (ix) promptly upon request, such other information concerning the condition or operations,
financial or otherwise, of the Borrower or any Guarantor as any Agent or Lender may from time to
time may reasonably request.

     The Borrower shall deliver all financial statements, reports and notices required to be
delivered pursuant to this Section 7.01(a) directly to each of the Lenders and the Administrative
Agent.

- 39 -

 

               (b) Compliance with Laws, Etc. Comply in all material respects with all applicable
laws, rules, regulations, orders (including, without limitation, all Environmental Laws),
judgments and awards (including any settlement of any claim that, if breached, could give rise
to any of the foregoing), such compliance to include, without limitation, (i) paying before the
same become delinquent all taxes, assessments and governmental charges or levies imposed upon it
or upon its income or profits or upon any of its properties, and (ii) paying all lawful claims
which if unpaid might become a Lien or charge upon any of its properties, except to the extent
in the case of clause (i) or (ii) above, contested in good faith by proper proceedings which
stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof and with
respect to which adequate reserves have been set aside for the payment thereof.

               (c) Preservation of Existence, Etc. (i) Maintain and preserve its existence,
rights and privileges, and (ii) become or remain duly qualified and in good standing in each
jurisdiction in which the character of the properties owned or leased by it or in which the
transaction of its business makes such qualification necessary, except, in the case of clause
(i) (other than with respect to preservation of existence) and (ii) above, where the failure to
become or remain so qualified could not reasonably be expected to have a Material Adverse
Effect.

               (d) Keeping of Records and Books of Account. Keep adequate records and books of
account, with complete, true and correct entries made of all dealings and transactions in
respect of the Borrower’s and the Guarantors’ respective businesses and activities, in each case
in accordance with GAAP.

               (e) Inspection Rights. Permit the agents and representatives of any Agent or of
any Lender at any time and from time to time during normal business hours and upon reasonable
prior written notice to visit and inspect any of the properties of the Borrower and the
Guarantors, to examine and make abstracts or copies from any of the books and records of the
Borrower and the Guarantors, to conduct a collateral audit and analysis of the Inventory and
Accounts Receivable of the Borrower and the Guarantors, to tour the Borrower’s and the
Guarantors’ business premises and other properties, to verify materials, leases, notes, deposit
accounts and its other assets, to conduct audits, physical counts, valuations, appraisals,
environmental assessments or examinations and to discuss their respective affairs, finances,
properties, business operations and Accounts Receivable with their respective senior management
and, upon reasonable prior notice to afford the Borrower the opportunity to participate in such
discussions, their respective independent public accountants, in each case as often as may be
desired. The Borrower and its Subsidiaries shall be obligated to pay the reasonable cost of
such audits, counts, valuations, appraisals, assessments, inspections or other examinations.

               (f) Maintenance of Properties, Etc. Maintain and preserve all of its properties
which are necessary or useful in the proper conduct of its business in good working order and
condition, ordinary wear and tear and obsolescence excepted, and comply at all times with the
provisions of all leases to which it is a party as lessee or under which it occupies property,

- 40 -

 

so as to prevent any loss or forfeiture thereof or thereunder that reasonably could be
expected to have a Material Adverse Effect.

               (g) Maintenance of Insurance. Maintain insurance with responsible and reputable
insurance companies or associations (including, without limitation, comprehensive general
liability, hazard, rent and business interruption insurance) with respect to its properties
(including all real properties leased or owned by it) and business, in such amounts and covering
such risks as is required by any Governmental Authority having jurisdiction with respect thereto
or as is carried generally in accordance with sound business practice by companies of similar
size and in similar businesses similarly situated and in any event in amount, adequacy and scope
reasonably satisfactory to the Required Lenders. All policies covering the Collateral are to be
made payable to the Collateral Agent for the benefit of the Lenders and the Agents, as its
interests may appear, in case of loss, under a standard non contributory “lender” or “secured
party” clause and are to contain such other provisions as the Required Lenders may require to
fully protect the Agents’ and the Lenders’ interest in the Collateral and to protect any
payments to be made under such policies. All certificates of insurance are to be delivered to
the Collateral Agent with the loss payable and additional insured endorsement in favor of the
Collateral Agent and such other Persons as the Required Lenders may designate from time to time,
and shall provide for not less than thirty (30) days’ (ten (10) days with respect to any
proposed cancellation for non-payment of premium) prior written notice to the Collateral Agent
of the exercise of any right of cancellation. If the Borrower or any Guarantor fails to
maintain such insurance, the Collateral Agent, at the direction of the Required Lenders, may
arrange for such insurance, but at the Borrower’s expense and without any responsibility on the
Collateral Agent’s part for obtaining the insurance, the solvency of the insurance companies,
the adequacy of the coverage, or the collection of claims. Upon the occurrence and during the
continuance of an Event of Default, the Collateral Agent shall have the sole right, in the name
of the Lenders, the Borrower and/or the Guarantors, to file claims under any insurance policies,
to receive, receipt and give acquittance for any payments that may be payable thereunder, and to
execute any and all endorsements, receipts, releases, assignments, reassignments or other
documents that may be necessary to effect the collection, compromise or settlement of any claims
under any such insurance policies.

               (h) Obtaining of Permits, Etc. (i) Obtain, maintain and preserve all permits,
licenses, authorizations, approvals, entitlements and accreditations which are necessary in the
proper conduct of its business and (ii) become or remain duly qualified and in good standing in
each jurisdiction in which the character of the properties owned or leased by it or in which the
transaction of its business makes such qualification necessary, except, in the case of clause
(i) and clause (ii) above, where the failure to become or remain so qualified could not
reasonably be expected to have a Material Adverse Effect.

               (i) Environmental. (i) Keep any property either owned or operated by it free of
any Environmental Liens; (ii) comply in all material respects with Environmental Laws and
provide to the Collateral Agent any documentation of such compliance which the Collateral Agent
may reasonably request; (iii) to the extent the Borrower has knowledge

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thereof, promptly and in any event within two (2) Business Days of becoming aware thereof,
provide the Agents written notice of any Release of a Hazardous Material in excess of any
reportable quantity from or onto property at any time owned or operated by it and take any
Remedial Actions required to abate said Release; (iv) provide the Agents with written notice
within ten (10) days of the receipt of any of the following: (A) notice that an Environmental
Lien has been filed against any property of the Borrower or any Guarantor; (B) commencement of
any Environmental Action or notice that an Environmental Action will be filed against the
Borrower or any Guarantor; and (C) notice of a violation, citation, request for information or
other administrative order which could reasonably be expected to have a Material Adverse Effect
and (v) defend, indemnify and hold harmless the Agents and the Lenders and their transferees,
and their respective employees, agents, officers and directors, from and against any claims,
demands, penalties, fines, liabilities, settlements, damages, costs or expenses (including,
without limitation, attorney and consultant fees, investigation and laboratory fees, court costs
and litigation expenses) arising out of (A) the generation, presence, disposal, Release or
threatened Release of any Hazardous Materials on, under, in, originating or emanating from any
property at any time owned or operated by the Borrower or any Guarantor for which the Borrower
or any Guarantor is alleged to be responsible, (B) any personal injury (including wrongful
death) or property damage (real or personal) arising out of or related to the presence or
Release of such Hazardous Materials, (C) any request for information, investigation, lawsuit
brought or threatened, settlement reached or order by a Governmental Authority relating to the
presence or Release of such Hazardous Materials, (D) any violation of any Environmental Law
and/or (E) any Environmental Action filed against any Agent or any Lender.

               (j) Further Assurances. Take such action and execute, acknowledge and deliver, at
its sole cost and expense, such agreements, instruments or other documents (including, without
limitation, any Mortgages and one or more account control agreements among the Borrower, the
Guarantors, the Agents and the applicable banks or securities intermediaries in form and
substance acceptable to the Agents and the Required Lenders in their sole discretion, and such
other depository account agreements and other similar agreements and other documents, each in
form and substance satisfactory to the Agents and the Required Lenders in their sole
discretion), in each case as the Agents or the Required Lenders may require from time to time in
order (i) to carry out more effectively the purposes of this Agreement and the other Loan
Documents, (ii) to subject to valid and perfected first priority Liens any of the Collateral or
any other property of the Borrower or any Guarantor, (iii) to establish and maintain the
validity and effectiveness of any of the Loan Documents and the validity, perfection and
priority of the Liens intended to be created thereby, and (iv) to better assure, convey, grant,
assign, transfer and confirm unto each Agent and each Lender the rights now or hereafter
intended to be granted to it under this Agreement or any other Loan Document. In furtherance of
the foregoing, to the maximum extent permitted by applicable law, the Borrower (x) authorizes,
during the continuance of an Event of Default, each Agent to execute any such agreements,
instruments or other documents in the name of the Borrower and/or any Guarantor and to file such
agreements, instruments or other documents in any appropriate filing office, (y) authorizes,
during the continuance of an Event of Default, each Agent to file any financing statement
required hereunder or under any other

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Loan Document, and any continuation statement or amendment with respect thereto, in any
appropriate filing office without the signature of the Borrower or any Guarantor, and (z)
ratifies the filing of any financing statement, and any continuation statement or amendment with
respect thereto, filed prior to the date hereof.

               (k) Fiscal Year. Cause the Fiscal Year of the Borrower and its Subsidiaries to end
on December 31 unless the Required Lenders consent to a change in such Fiscal Year.

               (l) Use of Proceeds. Use the proceeds of the Loans to fund the expenditures and
disbursements contemplated in clause (b)(i) of the definition of “Maximum Revolving Credit
Amount.”

               (m) Compliance With Terms of Leaseholds. Make all payments and otherwise perform
all obligations in respect of all material leases of real property necessary or useful for the
efficient conduct of its business, to the extent necessary to keep such leases in full force and
effect and not allow such leases to lapse or be terminated or any rights to renew such leases to
be forfeited or cancelled, notify the Agents of any default by any party with respect to such
leases and cooperate with the Agents in all respects to cure any such default.

               (n) New Subsidiaries. From and after the Effective Date, in connection with the
acquisition of the Capital Stock of a Person that becomes a Subsidiary of the Borrower or the
formation of a new Subsidiary of the Borrower, the Borrower shall cause such Person to guaranty
the payment and performance of the Obligations when due and to grant to the Collateral Agent for
the benefit of the Lenders as security therefor a security interest in and to and Lien on all of
the property, assets or interests in property or assets of such Person and, in furtherance
thereof, shall cause such Person to enter into a security agreement substantially similar to the
Security Agreements, a guaranty substantially similar to the Guaranties and such additional
security documents or instruments, together with such certificates, resolutions, opinions and
the like, as may be requested by the Agents in their sole discretion.

               (o) Crisis Management Firm; Chief Restructuring Officer. Upon the request of the
CRO, terminate the engagement of Getzler Henrich & Associates LLC as the Borrower’s financial
advisor.

     Section 7.02 Negative Covenants. Until Termination, the Borrower shall not, and shall cause each of its
Subsidiaries not to, unless the Required Lenders shall otherwise consent in writing:

               (a) Liens, Etc. Create, incur, assume or suffer to exist any Lien upon or with
respect to any of its properties, whether now owned or hereafter acquired; file or suffer to
exist under the Uniform Commercial Code or any similar law or statute of any jurisdiction, a
financing statement (or the equivalent thereof) that names it as debtor; sign or suffer to exist
any security agreement authorizing any secured party thereunder to file such financing statement
(or the equivalent thereof); sell any of its property or assets subject to an understanding or
agreement, contingent or otherwise, to repurchase such property or assets (including sales of
accounts receivable) with recourse to it or assign or otherwise transfer any

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account or other right to receive income; other than, as to each of the foregoing,
Permitted Liens.

               (b) Indebtedness. Create, incur, assume, guarantee or suffer to exist, or
otherwise become or remain liable with respect to any Indebtedness other than Permitted
Indebtedness.

               (c) Fundamental Changes; Dispositions; Acquisitions. Wind-up, liquidate or
dissolve, or merge, consolidate or amalgamate with any Person, or convey, sell, lease or
sublease, transfer or otherwise dispose of, whether in one transaction or a series of related
transactions, all or any part of its business, property or assets, whether now owned or
hereafter acquired (or agree to do any of the foregoing), or purchase or otherwise acquire,
whether in one transaction or a series of related transactions, all or substantially all of the
assets of any Person (or any division thereof) (or agree to do any of the foregoing);
provided, however, that the Borrower and each of the Guarantors may (A) sell
Inventory in the ordinary course of business, (B) dispose of obsolete or worn-out equipment in
the ordinary course of business, (C) in the case of the Guarantors, transfer property or assets
to the Borrower, (D) use or transfer money or Cash Equivalents in a manner not prohibited by the
terms of this Agreement and (E) sell or otherwise dispose of other property or assets for cash
in an aggregate amount not less than the fair market value of such property or assets,
provided that (x) the Net Cash Proceeds of such Dispositions in the case of clause (E)
above for the Borrower and the Guarantors made on or after the Effective Date do not exceed
$250,000 in the aggregate and (y) the Net Cash Proceeds of such Dispositions in excess of
$50,000 are paid to the Administrative Agent for the benefit of the Lenders pursuant to the
terms of Section 2.05(c).

               (d) Change in Nature of Business. Make, or permit any of its Subsidiaries to make,
any change in the nature of its business.

               (e) Loans, Advances, Investments, Etc. Make or commit or agree to make any loan,
advance guarantee of obligations, other extension of credit or capital contributions to, or hold
or invest in or commit or agree to hold or invest in, or purchase or otherwise acquire or commit
or agree to purchase or otherwise acquire any shares of the Capital Stock, bonds, notes,
debentures or other securities of, or make or commit or agree to make any other investment in,
any other Person, or purchase or own any futures contract or otherwise become liable for the
purchase or sale of currency or other commodities at a future date in the nature of a futures
contract, except for: (i) any such investments existing on the date hereof, as set forth on
Schedule 7.02(e) hereto, but not any increase in the amount thereof as set forth in such
Schedule or any other modification of the terms thereof and (ii) Permitted Investments.

               (f) Capital Expenditures. Make, or commit or agree to make, any Capital
Expenditure (including by purchase made or Capitalized Lease entered into after the Effective
Date), other than Capital Expenditures, if any, specified in the Approved Disbursements.

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               (g) Restricted Payments. (i) Declare or pay any dividend or other distribution,
direct or indirect, on account of any of its Capital Stock now or hereafter outstanding, (ii)
make any repurchase, redemption, retirement, defeasance, sinking fund or similar payment,
purchase or other acquisition for value, direct or indirect, of any of its Capital Stock now or
hereafter outstanding, (iii) make any payment to retire, or to obtain the surrender of, any
outstanding warrants, options or other rights for the purchase or acquisition of shares of any
class of its Capital Stock now or hereafter outstanding, (iv) return any Capital Stock to any of
its shareholders or other equity holders, or make any other distribution of property, assets,
shares of Capital Stock, warrants, rights, options, obligations or securities thereto as such or
(v) pay any management fees or any other fees or expenses pursuant to any management, consulting
or other services agreement to any of the shareholders or other equityholders of the Borrower or
other Affiliates.

               (h) Federal Reserve Regulations. Permit any Loan or the proceeds of any Loan under
this Agreement to be used for any purpose that would cause such Loan to be a margin loan under
the provisions of Regulation T, U or X of the Board.

               (i) Transactions with Affiliates. Except as set forth on Schedule 7.02(i), enter
into, renew, extend or be a party to any transaction or series of related transactions
(including, without limitation, the purchase, sale, lease, transfer or exchange of property or
assets of any kind or the rendering of services of any kind) with any Affiliate, except in the
ordinary course of business in a manner and to an extent consistent with past practice and
necessary or desirable for the prudent operation of its business, for fair consideration and on
terms no less favorable to it than would be obtainable in a comparable arm’s-length transaction
with a Person that is not an Affiliate thereof.

               (j) Limitations on Dividends and Other Payment Restrictions Affecting Subsidiaries.
Create or otherwise cause, incur, assume, suffer or permit to exist or become effective any
consensual encumbrance or restriction of any kind on the ability of its Subsidiaries (i) to pay
dividends or to make any other distribution on any shares of Capital Stock of such Subsidiaries,
(ii) to transfer any of its property or assets to the Borrower or (iii) to grant security
interests in or otherwise encumber any of its property or assets; provided,
however, that nothing in this Section 7.02(j) shall prohibit any provisions of:

                         (A) this Agreement and the other Loan Documents;

                         (B) the Indenture Documents; or

                         (C) any applicable law, rule or regulation (including, without limitation, applicable currency
control laws and applicable state corporate statutes restricting the payment of dividends in
certain circumstances).

               (k) Limitation on Issuance of Capital Stock. Issue or sell or enter into any
agreement or arrangement for the issuance and sale of any shares of its Capital Stock, any
securities convertible into or exchangeable for its Capital Stock or any warrants.

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               (l) Modifications of Indebtedness, Organizational Documents and Certain Other
Agreements; Etc. (i) Amend, modify or otherwise change (or permit the amendment,
modification or other change in any manner of) any of the provisions of any of its other
Indebtedness or of any instrument or agreement (including, without limitation, any purchase
agreement, indenture, loan agreement or security agreement) relating to any such Indebtedness if
such amendment, modification or change would shorten the final maturity or average life to
maturity of, or require any payment to be made earlier than the date originally scheduled on,
such Indebtedness, would increase the interest rate applicable to such Indebtedness, would
change the subordination provision, if any, of such Indebtedness, would result in any of the
Loan Documents or the Obligations being in contravention thereof or resulting in a breach or
event of default thereunder, or would otherwise be adverse to the Lenders in any respect or to
the Borrower or any Guarantor in any material respect, (ii) except for the Obligations, make any
voluntary or optional payment, prepayment, redemption, defeasance, sinking fund payment or other
acquisition for value of any of its Indebtedness (including, without limitation, by way of
depositing money or securities with the trustee therefor before the date required for the
purpose of paying any portion of such Indebtedness when due), or refund, refinance, replace or
exchange any other Indebtedness for any such Indebtedness (except to the extent such
Indebtedness is otherwise expressly permitted by the definition of “Permitted Indebtedness”),
(iii) amend, modify or otherwise change its name, jurisdiction of organization, organizational
identification number or FEIN or (iv) amend, modify or otherwise change its certificate of
incorporation or bylaws (or other similar organizational documents), including, without
limitation, by the filing or modification of any certificate of designation, or any agreement or
arrangement entered into by it, with respect to any of its Capital Stock (including any
shareholders’ agreement), or enter into any new agreement with respect to any of its Capital
Stock, except any such amendments, modifications or changes or any such new agreements or
arrangements pursuant to this clause (iv) that either individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

               (m) Investment Company Act of 1940. Engage in any business, enter into any
transaction, use any securities or take any other action that would cause it to become subject
to the registration requirements of the Investment Company Act of 1940, as amended, by virtue of
being an “investment company” or a company “controlled” by an “investment company” not entitled
to an exemption within the meaning of such Act.

               (n) ERISA. (i) Engage, or permit any ERISA Affiliate to engage, in any
transaction described in Section 4069 of ERISA; (ii) engage, or permit any ERISA Affiliate to
engage, in any prohibited transaction described in Section 406 of ERISA or 4975 of the Internal
Revenue Code for which a statutory or class exemption is not available or a private exemption
has not previously been obtained from the U.S. Department of Labor; (iii) adopt or permit any
ERISA Affiliate to adopt any employee welfare benefit plan within the meaning of Section 3(1) of
ERISA which provides benefits to employees after termination of employment other than as
required by Section 601 of ERISA or applicable law; (iv) fail to make any contribution or
payment to any Multiemployer Plan which it or any ERISA Affiliate may be required to make under
any agreement relating to such Multiemployer Plan,

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or any law pertaining thereto; or (v) fail, or permit any ERISA Affiliate to fail, to pay
any required installment or any other payment required under Section 412 of the Internal Revenue
Code on or before the due date for such installment or other payment.

               (o) Environmental. Permit the use, handling, generation, storage, treatment,
Release or disposal of Hazardous Materials at any property owned or leased by it except in
compliance with Environmental Laws and so long as such use, handling, generation, storage,
treatment, Release or disposal of Hazardous Materials does not result in a Material Adverse
Effect.

               (p) Cash Management. Fail to cause all Available Funds to be promptly, and in any
event within one (1) Business Day, deposited and held in a deposit account that is subject to
the SunTrust Amended Control Agreement.

ARTICLE VIII

MANAGEMENT, COLLECTION AND STATUS OF

ACCOUNTS RECEIVABLE AND OTHER COLLATERAL

     Section 8.01 Collection of Accounts Receivable; Management of Collateral. After the occurrence and
during the continuance of an Event of Default, the Collateral Agent may send a notice of assignment
and/or notice of the Lenders’ security interest to any and all Account Debtors or third parties
holding or otherwise concerned with any of the Collateral, and thereafter the Collateral Agent
shall have the sole right to collect the Accounts Receivable and/or take possession of the
Collateral and the books and records relating thereto. Neither the Borrower nor any Guarantor
shall, without prior written consent of the Collateral Agent, grant any extension of time of
payment of any Account Receivable, compromise or settle any Account Receivable for less than the
full amount thereof, release, in whole or in part, any Person or property liable for the payment
thereof, or allow any credit or discount whatsoever thereon, except in the ordinary course of its
business.

               (a) The Borrower hereby appoints each Agent or its designee on behalf of such Agent as the
Borrower’s and each Guarantor’s attorney-in-fact with power exercisable during the continuance
of an Event of Default to endorse the Borrower’s and each Guarantor’s name upon any notes,
acceptances, checks, drafts, money orders or other evidences of payment relating to the Accounts
Receivable, to sign the Borrower’s and each Guarantor’s name on any invoice or bill of lading
relating to any of the Accounts Receivable, drafts against Account Debtors with respect to
Accounts Receivable, assignments and verifications of Accounts Receivable and notices to Account
Debtors with respect to Accounts Receivable, to send verification of Accounts Receivable, and to
notify the Postal Service authorities to change the address for delivery of mail addressed to
the Borrower or any Guarantor to such address as such Agent may designate and 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

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omission or commission (other than acts of omission or commission constituting gross
negligence or willful misconduct as determined by a final judgment of a court of competent
jurisdiction), or for any error of judgment or mistake of fact or law; this power being coupled
with an interest is irrevocable until Termination.

               (b) Nothing herein contained shall be construed to constitute any Agent as agent of the
Borrower or any Guarantor for any purpose whatsoever, and the Agents shall not be responsible or
liable for any shortage, discrepancy, damage, loss or destruction of any part of the Collateral
wherever the same may be located and regardless of the cause thereof (other than from acts of
omission or commission constituting gross negligence or willful misconduct as determined by a
final judgment of a court of competent jurisdiction). The Agents shall not, under any
circumstance or in any event whatsoever, have any liability for any error or omission or delay
of any kind occurring in the settlement, collection or payment of any of the Accounts Receivable
or any instrument received in payment thereof or for any damage resulting therefrom (other than
acts of omission or commission constituting gross negligence or willful misconduct as determined
by a final judgment of a court of competent jurisdiction). The Agents, by anything herein or in
any assignment or otherwise, do not assume any of the obligations under any contract or
agreement assigned to any Agent and shall not be responsible in any way for the performance by
the Borrower or any Guarantor of any of the terms and conditions thereof.

               (c) If any Account Receivable includes a charge for any tax payable to any Governmental
Authority, each Agent is hereby authorized (but in no event obligated) in its discretion to pay
the amount thereof to the proper taxing authority for the account of the Borrower or the
applicable Guarantor and to charge the Borrower and/or such Guarantor therefor.

               (d) Notwithstanding any other terms set forth in the Loan Documents, the rights and
remedies of the Agents and the Lenders herein provided, and the obligations of the Borrower and
the Guarantors set forth herein, are cumulative of, may be exercised singly or concurrently
with, and are not exclusive of, any other rights, remedies or obligations set forth in any other
Loan Document or as provided by law.

ARTICLE IX

EVENTS OF DEFAULT

     Section 9.01 Events of Default. If any of the following events shall occur and be continuing:

               (a) the Borrower or any Guarantor shall fail to pay any principal on any Loan when due,
whether by scheduled maturity, required prepayment, acceleration, demand or otherwise;

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               (b) the Borrower or any Guarantor shall fail to pay any interest, fee, indemnity or other
amount payable under this Agreement or any other Loan Document when due (except as set forth in
subsection (a) of this Section 9.01), whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise;

               (c) any representation or warranty made or deemed made by or on behalf of the Borrower or
any Guarantor or by any officer of the Borrower or any Guarantor under or in connection with any
Loan Document or under or in connection with any report, certificate, or other document
delivered to any Agent or any Lender pursuant to any Loan Document shall have been incorrect or
misleading in any material respect when made or deemed made;

               (d) the Borrower or any Guarantor shall fail to perform or comply with any covenant or
agreement contained in ARTICLE VII (except Sections 7.01(b) and (f)), ARTICLE VIII, Section
11.22 or any Security Agreement to which it is a party, or any Guarantor shall fail to perform
or comply with any covenant or agreement contained any Guaranty or any Security Agreement to
which it is a party;

               (e) the Borrower or any Guarantor shall fail to perform or comply with any other term,
covenant or agreement contained in any Loan Document to be performed or observed by it and,
except as set forth in subsections (a) through (d) of this Section 9.01, such failure, if
reasonably capable of being remedied, shall remain unremedied for ten (10) days after the
earlier of the date the Borrower or any Guarantor becomes aware of such failure and the date
written notice of such failure shall have been given by any Agent to the Borrower;

               (f) (i) except with respect to the matters with respect to Material Contracts set forth on
Schedules 6.01(g) and (h) that have occurred prior to the Effective Date, the
Borrower or any Guarantor shall fail to perform or comply with any material term, covenant or
agreement contained in any Material Contract to be performed or observed by it, and the Borrower
shall not have remedied such failure to perform or comply within any applicable cure period, or
(ii) any Material Contract of the Borrower or any Guarantor shall terminate, and, in the case of
each of clause (i) and (ii), such event could reasonably be expected to have a Material Adverse
Effect;

               (g) one or more judgments, orders or awards (or any settlement of any claim that, if
breached, could reasonably be expected to result in a judgment, order or award) for the payment
of money exceeding $50,000 in the aggregate in excess of any applicable insurance coverage (but
only to the extent the insurer has acknowledged in writing its liability therefor) shall be
rendered against the Borrower or any Guarantor and remain unsatisfied and either (i) enforcement
proceedings shall have been commenced by any creditor upon any such judgment, order, award or
settlement, or (ii) there shall be a period of ten (10) consecutive days after entry thereof
during which a stay of enforcement of any such judgment, order, award or settlement, by reason
of a pending appeal or otherwise, shall not be in effect; provided, however,
that any such judgment, order, award or settlement shall not give rise to an Event of Default
under this subsection (g) if and for so long as (A) the amount of such judgment, order, award or
settlement is covered by a valid and binding policy of

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insurance between the Borrower or any such Guarantor, as applicable, and the insurer is
covering full payment thereof and (B) such insurer has been notified, and has not disputed the
claim made for payment, of the amount of such judgment, order, award or settlement;

               (h) the Borrower or any Guarantor shall fail to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise) with respect to any
Indebtedness (other than the Obligations) if the aggregate amount of such Indebtedness is in
excess of $50,000 in the aggregate and such failure shall continue after the applicable grace
period, if any, specified in the agreement or instrument relating to such Indebtedness; or any
other breach, default or event of default shall occur, or any other condition shall exist under
any instrument, agreement or indenture pertaining to any such Indebtedness, if the result
thereof (giving effect to any requirement for the giving of notice or lapse of time or both) is
to cause an acceleration, mandatory redemption or other required repurchase of such Indebtedness
or to permit the holder or holders of such Indebtedness (or any representative thereof) to
accelerate the maturity of any such Indebtedness or require a redemption or other repurchase of
such Indebtedness;

               (i) the determination of the Borrower or any Guarantor, whether by vote of the Borrower’s
or any such Guarantor’s Board of Directors or otherwise, to suspend the operation of the
Borrower’s or any such Guarantor’s business in the ordinary course, liquidate all or
substantially all of the Borrower’s or any such Guarantor’s assets, or employ an agent or other
third party to conduct any sales of all or substantially all of the Borrower’s or any such
Guarantor’s assets;

               (j) (i) there shall be commenced by or against the Borrower or any Guarantor any case,
proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or
foreign, relating to bankruptcy, insolvency, supervision, conservatorship, liquidation,
reorganization or relief of debtors, seeking to have an order for relief entered with respect to
it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
rehabilitation, conservation, supervision, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, obligations or
liabilities, or (B) seeking appointment of a receiver, trustee, custodian, rehabilitator,
conservator, supervisor, liquidator or other similar official for it or for all or any
substantial part of its assets, in each case which (1) results in the entry of an order for
relief or any such adjudication or appointment or (2) if filed against such Person, remains
undismissed, undischarged or unstayed for a period of sixty (60) days; or (ii) the Borrower or
any Guarantor shall take any action in furtherance of, or indicating its consent to, approval
of, or acquiescence in, any of the acts set forth in clause (ii) above other than the filing by
the Borrower of a Chapter 11 Case;

               (k) any bank at which any deposit account, blocked account, or lockbox account of the
Borrower or any Guarantor is maintained shall fail to comply with any of the material terms of
any deposit account control agreement, blocked account, lockbox account or similar agreement to
which such bank is a party or any securities intermediary, commodity intermediary or other
financial institution at any time in custody, control or possession of any

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investment property of the Borrower or any Guarantor shall fail to comply with any of the
material terms of any investment property control agreement to which such Person is a party and,
if capable of being remedied, such failure is not remedied to the reasonable satisfaction of the
Administrative Agent within two (2) Business Days;

               (l) the Borrower or any Guarantor is enjoined, restrained or in any way prevented by the
order of any court or any Governmental Authority from conducting all or any material part of its
business for more than fifteen (15) days;

               (m) any material damage to, or loss, theft or destruction of, any Collateral, whether or
not insured, or any strike, lockout, labor dispute, embargo, condemnation, act of God or public
enemy, or other casualty that causes, for more than fifteen (15) consecutive days, the cessation
or substantial curtailment of revenue producing activities at any facility of the Borrower or
any Guarantor, if any such event or circumstance could reasonably be expected to have a Material
Adverse Effect;

               (n) The retention or appointment of either of the crisis management firm or the CRO
retained or appointed as provided in Section 7.01(o) shall have terminated or otherwise ceased
and shall not have been replaced within ten (10) Business Days by a new crisis management firm
and/or CRO acceptable to, and on terms and conditions, satisfactory to the Lenders in their sole
discretion;

               (o) the Borrower, any Guarantor or any of their respective ERISA Affiliates shall have made
a complete or partial withdrawal from a Multiemployer Plan, and, as a result of such complete or
partial withdrawal, the Borrower, any Guarantor or any of their respective ERISA Affiliates
incurs a withdrawal liability in an annual amount exceeding $50,000; or a Multiemployer Plan
enters reorganization status under Section 4241 of ERISA, and, as a result thereof the
Borrower’s, any Guarantor’s or any of their respective ERISA Affiliates’ annual contribution
requirements with respect to such Multiemployer Plan increases in an annual amount exceeding
$50,000;

               (p) any Termination Event with respect to any Employee Plan shall have occurred, and,
thirty (30) days after notice thereof shall have been given to the Borrower by any Agent, (i)
such Termination Event (if correctable) shall not have been corrected, and (ii) the then current
value of such Employee Plan’s vested benefits exceeds the then current value of assets allocable
to such benefits in such Employee Plan by more than $250,000 (or, in the case of a Termination
Event involving liability under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201,
4204 or 4212 of ERISA or Section 4971 or 4975 of the Internal Revenue Code, the liability is in
excess of such amount);

               (q) the Borrower or any Guarantor shall be liable for any Environmental Liabilities and
Costs the payment of which could reasonably be expected to have a Material Adverse Effect;

               (r) the Borrower shall have failed to commence a Chapter 11 Case on or before the later of
April 30, 2008 and the sixth day following the day on which counsel for

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the Lenders shall have furnished to counsel for the Borrower initial drafts of a credit
agreement providing for a debtor-in-possession credit facility and a term sheet in respect of a
proposed sale of substantially all of the assets of the Borrower during the pendency of such
Chapter 11 Case;

          (s) a Change of Control shall have occurred;

          (t) a Material Adverse Effect shall have occurred; or

          (u) an Indenture Event of Default shall have occurred;

     then, and in any such event, the Collateral Agent may, and shall at the request of the
Required Lenders, by written notice to the Borrower, (i) declare all or any portion of the Loans
then outstanding to be due and payable, whereupon all or such portion of the aggregate principal
of all Loans, all accrued and unpaid interest thereon, all fees and all other amounts payable
under this Agreement and the other Loan Documents shall become due and payable immediately, without
presentment, demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower and (ii) exercise any and all of its other rights and remedies under
applicable law (including, but not limited to, the Uniform Commercial Code), hereunder and under
the other Loan Documents.

ARTICLE X

AGENTS

     Section 10.01 Appointment. Each Lender (and each subsequent maker of any Loan by its making thereof) hereby irrevocably
appoints and authorizes the Administrative Agent and the Collateral Agent to perform its
obligations and exercise the powers of each such Agent as set forth in this Agreement including:
(i) to receive on behalf of each Lender any payment of principal of or interest on the Loans
outstanding hereunder and all other amounts accrued hereunder for the account of the Lenders and
paid to such Agent, and, subject to Sections 2.02 and 4.02 of this Agreement, to distribute
promptly to each Lender its Pro Rata Share of all payments so received; (ii) to maintain, in
accordance with its customary business practices, ledgers and records reflecting the status of the
Obligations, the Loans, and related matters and to maintain, in accordance with its customary
business practices, ledgers and records reflecting the status of the Collateral and related
matters; (iii) to execute or file any and all financing or similar statements or notices,
amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other
written agreements with respect to this Agreement or any other Loan Document; (iv) to make the
Loans on behalf of the applicable Lenders as provided in this Agreement or any other Loan Document;
(v) to perform, exercise, and enforce any and all other rights and remedies of the Lenders with
respect to the Borrower, the Obligations, or otherwise related to any of same to the extent
reasonably incidental to the exercise by such Agent of the rights and remedies specifically
authorized to be exercised by such Agent by the terms of this Agreement or any other Loan Document;
(vi) to incur and pay such fees necessary or appropriate

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for the performance and fulfillment of its
functions and powers pursuant to this Agreement or any other Loan Document; and (vii) subject to
Section 10.03 of this Agreement, to take such action as such Agent deems appropriate on its behalf
to administer the Loans and the Loan Documents and to exercise such other powers delegated to such
Agent by the terms hereof or the other Loan Documents (including, without limitation, the power to
give or to refuse to give notices, waivers, consents, approvals and instructions and the power to
make or to refuse to make determinations and calculations) together with such powers as are
reasonably incidental thereto to carry out the purposes hereof and thereof. As to any matters not
expressly provided for by this Agreement and the other Loan Documents (including, without
limitation, enforcement or collection of the Loans), the Agents 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 of the Required Lenders shall be binding upon all Lenders
and all makers of Loans; provided, however, that the
Agents shall not be required to take any action which, in the reasonable opinion of any Agent,
exposes or could reasonably be expected to expose such Agent to liability or which is contrary to
this Agreement or any other Loan Document or applicable law. Except as otherwise provided in this
Article X, each of the Administrative Agent and the Collateral Agent may execute any of its duties
under this Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. Each of the Administrative Agent and the Collateral Agent shall not be responsible
for the negligence or misconduct of any agent or attorney-in-fact that it selects as long as such
selection was made in compliance with this section and without gross negligence or willful
misconduct of the Administrative Agent or the Collateral Agent as determined by a final order of a
court of competent jurisdiction no longer subject to appeal. The Lenders hereby authorize and
direct the Collateral Agent to enter into the Amended and Restated Intercreditor Agreement in the
form to be furnished to the Collateral Agent by Akin Gump Strauss Hauer & Feld LLP on or about
April 25, 2008.

     Section 10.02 Nature of Duties. The Agents shall have no duties or responsibilities except those expressly set forth in this
Agreement or in the other Loan Documents. The duties of the Agents shall be mechanical and
administrative in nature. The Agents shall not have by reason of this Agreement or any other Loan
Document a fiduciary relationship in respect of any Lender. Nothing in this Agreement or any other
Loan Document, express or implied, is intended to or shall be construed to impose upon the Agents
any obligations in respect of this Agreement or any other Loan Document except as expressly set
forth herein or therein. Each Lender shall make its own independent investigation of the financial
condition and affairs of the Borrower and the Guarantors in connection with the making and the
continuance of the Loans hereunder and shall make its own appraisal of the creditworthiness of the
Borrower and the Guarantors and the value of the Collateral, and the Agents 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 their possession before the initial
Loan hereunder or at any time or times thereafter. If any Agent seeks the consent or approval of
the Required Lenders to the taking or refraining from taking any action hereunder, such Agent shall
send notice thereof to each Lender. Each Agent shall promptly notify each Lender any time that the
Required Lenders have instructed such Agent to act or refrain from acting pursuant hereto.

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     Section 10.03 Rights, Exculpation, Etc. (a) The Agents and their directors, officers, agents or employees shall not be liable for any
action taken or omitted to be taken by them under or in connection with this Agreement or the other
Loan Documents, except for their own gross negligence or willful misconduct (which shall not
include any action taken or omitted to be taken strictly in accordance with any express direction,
instruction or certificate of the Required Lenders, for which the Agents shall have no liability)
as determined by a final judgment of a court of competent jurisdiction no longer subject to appeal.
Without limiting the generality of the foregoing, the Agents (i) may treat the payee of any Loan
as the owner thereof until the Agents receive written notice of the assignment or transfer thereof,
pursuant to Section 11.07 hereof, signed by such payee and in form satisfactory to the
Administrative Agent; (ii) may consult with legal counsel (including, without limitation,
counsel to any Agent or counsel to the Borrower or any Guarantor), independent public accountants,
and other experts selected by any of them and shall not be liable for any action taken or omitted
to be taken in good faith by any of them in accordance with the advice of such counsel or experts;
(iii) make no warranty or representation to any Lender and shall not be responsible to any Lender
for any statements, certificates, warranties or representations made in or in connection with this
Agreement or the other Loan Documents; (iv) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants or conditions of this Agreement or
the other Loan Documents on the part of any Person, the existence or possible existence of any
Default or Event of Default, or to inspect the Collateral or other property (including, without
limitation, the books and records) of any Person; (v) shall not be responsible to any Lender for
the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or the other Loan Documents or any other instrument or document furnished pursuant hereto
or thereto; and (vi) shall not be deemed to have made any representation or warranty regarding the
existence, sufficiency, value or collectibility of the Collateral, the condition of the Collateral,
the existence, priority or perfection of the Collateral Agent’s Lien thereon, or any certificate
prepared by the Borrower or any Guarantor in connection therewith, nor shall the Agents be
responsible or liable to the Lenders for any failure to monitor or maintain any portion of the
Collateral. The provisions of this Section 10.03 are subject to, and shall not limit in any
respect, the provisions of Section 11.07. The Agents shall not be liable for any apportionment or
distribution of payments made in good faith pursuant to Section 4.04, and if any such apportionment
or distribution is subsequently determined to have been made in error the sole recourse of any
Lender to whom payment was due but not made, shall be to recover from other Lenders any payment in
excess of the amount which they are determined to be entitled. The Agents may at any time request
written instructions from the Lenders with respect to any actions or approvals which by the terms
of this Agreement or of any of the other Loan Documents the Agents are permitted or required to
take or to grant, and if such instructions are promptly requested, the Agents shall be absolutely
entitled to refrain from taking any action or to withhold any approval under any of the Loan
Documents until they shall have received such instructions from the Required Lenders. Without
limiting the foregoing, no Lender shall have any right of action whatsoever against any Agent as a
result of such Agent acting or refraining from acting under this Agreement or any of the other Loan
Documents in accordance with the instructions of the Required Lenders

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          (b) The Agents may consult with independent counsel, independent public accountants and other
experts selected by them, and any opinion or advice of such counsel, any such accountant, and any
such other expert shall be full and complete authorization and protection in respect of any action
taken or suffered by it hereunder in accordance therewith. The Agents shall have the right at any
time to seek instructions concerning the administration of the Collateral from any court of
competent jurisdiction

          (c) Notwithstanding anything set forth herein to the contrary, the Agents shall have a duty of
ordinary care with respect to any Collateral delivered to the Agents or their designated
representatives that is in the Agents’ or their designated representatives’ possession and control.
The Agents shall not be responsible for insuring the Collateral or for the payment of taxes,
charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the
Collateral, the Agents shall, subject to Section 10.10, preserve the part of the Collateral in
their possession.

          (d) The Agents shall be obligated to perform such duties and only such duties as are
specifically set forth in this Agreement or in any Loan Document, and no implied covenants or
obligations shall be read into this Agreement or any Loan Document against the Agents. The Agents
shall not be under any obligation to take any action which is discretionary under the provisions
hereof. The Agents shall be under no obligation to exercise any of the rights or powers vested in
them by this Agreement at the request or direction of the Required Lenders pursuant to this
Agreement, unless (i) the Agents shall have been provided adequate security and indemnity as
determined by the Agents in their sole discretion (including without limitation from the Lenders
and/or the Borrower or the Guarantors) against any and all costs, expenses and liabilities which
might be incurred by them in compliance with such request or direction, including reasonable
advances as may be requested by the Agents and (ii) the Agents shall receive such written
instructions as the Agents deem appropriate.

          (e) Whenever in the administration of this Agreement, or pursuant to any of the Loan
Documents, the Agents shall deem it necessary or desirable that a matter be proved or established
with respect to the Borrower or the Guarantors in connection with the taking, suffering or omitting
of any action hereunder by the Agents, such matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively provided or established by a
certificate of the chief executive officer and chief restructuring officer of the Borrower
delivered to the Agents and such certificate shall be full warranty to the Agents for any action
taken, suffered or omitted in reliance thereon.

     Section 10.04 Reliance. The Agents may rely, and shall be fully protected in acting, upon any resolution, statement,
certificate, instrument, opinion, report, notice, request, consent, order, bond or other paper or
document which they believe in good faith to be genuine and to have been signed or presented by the
proper party or parties or, in the case of facsimiles, to have been sent by the proper party or
parties. In the absence of its gross negligence or willful misconduct as determined by a final
judgment of a court of competent jurisdiction no longer subject to appeal, each Agent may
conclusively rely, as to the truth of the statements and the

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correctness of the opinions expressed
therein, upon any certificates or opinions furnished to it and conforming to the requirements of
this Agreement or any Loan Document.

     Section 10.05 Indemnification. To the extent that any Agent is not promptly reimbursed and indemnified by the Borrower, the
Lenders will reimburse and indemnify such Agent from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, advances or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted
against such Agent in any way relating to or arising out of this Agreement or any of the other Loan
Documents or any action taken or omitted by such Agent under this Agreement or any of the other
Loan Documents, in proportion to each Lender’s Pro Rata Share, including, without limitation,
advances and disbursements made pursuant to Section 10.08; provided, however, that
no Lender shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses, advances or disbursements for which there
has been a final judgment of a court of competent jurisdiction no longer subject to
appeal that such liability resulted from such Agent’s gross negligence or willful misconduct. The
obligations of the Lenders under this Section 10.05 shall survive the payment in full of the Loans
and the termination of this Agreement.

     Section 10.06 Agents Individually. Each Agent and its Affiliates may accept deposits from, lend money to, and generally engage in
any kind of banking, trust, financial or other business with the Borrower as if it were not acting
as an Agent pursuant hereto without any duty to account to the other Lenders.

     Section 10.07 Successor Agent. (a) Each Agent may resign from the performance of all its functions and duties hereunder and
under the other Loan Documents at any time by giving at least thirty (30) Business Days’ prior
written notice to the Borrower and each Lender. Such resignation shall take effect upon the
acceptance by a successor Agent of appointment pursuant to clauses (b) and (c) below or as
otherwise provided below.

     (b) Upon any such notice of resignation, the Required Lenders shall appoint a successor
Agent. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under this Agreement and the other Loan Documents. After any Agent’s
resignation hereunder as an Agent, the provisions of this ARTICLE X shall inure to its benefit
as to any actions taken or omitted to be taken by it while it was an Agent under this Agreement
and the other Loan Documents.

     (c) If no such successor Agent shall have been so appointed by the Required Lenders within
30 days after the retiring Agent gives notice of its resignation, then the retiring Agent may on
behalf of the Lenders, appoint a successor Agent as provided in this Section 10.07(c), provided
that if the Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents

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(except that in the case of any
collateral security held by the Agent on behalf of the Lenders under any of the Loan Documents,
the retiring Agent shall continue to hold such collateral security until such time as a
successor Agent is appointed) and (2) all payments, communications and determinations provided
to be made by, to or through the Agent shall instead be made by or to each Lender directly,
until such time as the Required Lenders appoint a successor Agent as provided for above in this
paragraph. Expense reimbursements and indemnities payable by the Borrower to a successor Agent
shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor.

     Section 10.08 Collateral Matters.

          (a) The Lenders hereby irrevocably authorize the Collateral Agent, at its option and in its
discretion, to release any Lien granted to or held by the Collateral Agent on any Collateral
upon Termination; or constituting property being sold or disposed of in compliance with the
terms of this Agreement and the other Loan Documents; or if approved, authorized or ratified in
writing by the Lenders.

          (b) Without in any manner limiting the Collateral Agent’s authority to act without any
specific or further authorization or consent by the Lenders (as set forth in Section 10.08(a)),
each Lender agrees to confirm in writing, upon request by the Collateral Agent, the authority to
release Collateral conferred upon the Collateral Agent under Section 10.08(a). Upon receipt by
the Collateral Agent of confirmation from the Lenders of its authority to release any particular
item or types of Collateral, and upon prior written request by the Borrower, the Collateral
Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as
may be necessary to evidence the release of the Liens granted to the Collateral Agent for the
benefit of the Lenders upon such Collateral; provided, however, that (i) the
Collateral Agent shall not be required to execute any such document on terms that, in the
Collateral Agent’s opinion, would expose the Collateral Agent to liability or create any
obligations or entail any consequence other than the release of such Liens without recourse or
warranty, and (ii) such release shall not in any manner discharge, affect or impair the
Obligations or any Lien upon all interests in the Collateral retained by the Borrower or any
Guarantor.

          (c) The Collateral Agent shall have no obligation whatsoever to any Lender to assure that
the Collateral exists or is owned by the Borrower or any Guarantor or is cared for, protected or
insured or has been encumbered or that the Lien granted to the Collateral Agent pursuant to this
Agreement or any other Loan Document has been properly or sufficiently or lawfully created,
perfected, protected or enforced or is entitled to any particular priority, or to exercise at
all or in any particular manner or under any duty of care, disclosure or fidelity, or to
continue exercising, any of the rights, authorities and powers granted or available to the
Collateral Agent in this Section 10.08 or in any other Loan Document, it being understood and
agreed that in respect of the Collateral, or any act, omission or event related thereto, the
Collateral Agent may act in any manner it may deem appropriate, in its sole discretion, given
that the Collateral Agent shall have no duty or liability whatsoever to any Lender, except as
otherwise provided herein.

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     Section 10.09 Agency for Perfection. Each Agent and each Lender hereby appoints each other Agent and each other Lender as agent and
bailee for the purpose of perfecting the security interests in and liens upon the Collateral in
assets that, in accordance with Article 9 of the Uniform Commercial Code, can be perfected only by
possession or control (or where the security interest of a secured party with possession or control
has priority over the security interest of another secured party) and each Agent and each Lender
hereby acknowledges that it holds possession of or otherwise controls any such Collateral
for the benefit of the Agents and the Lenders, collectively, as secured party. Should the
Administrative Agent or any Lender obtain possession or control of any such Collateral, the
Administrative Agent or such Lender shall notify the Collateral Agent thereof, and, promptly upon
the Collateral Agent’s request therefor shall deliver such Collateral to the Collateral Agent or in
accordance with the Collateral Agent’s instructions. In addition, the Collateral Agent shall also
have the power and authority hereunder to appoint such other sub-agents as may be necessary or
required under applicable state law or otherwise to perform its duties and enforce its rights with
respect to the Collateral and under the Loan Documents. By its execution and delivery of this
Agreement, the Borrower hereby consents to the foregoing.

     Section 10.10 Actions With Respect To Collateral. The Agents shall not have any responsibility for (i) ascertaining or taking action with respect
to calls, conversions, exchanges, maturities, tenders or other matters relating to any Collateral,
whether or not the Agents have or are deemed to have knowledge of such matters, (ii) taking any
necessary steps to preserve the rights against any parties with respect to any Collateral or (iii)
taking any action other than as directed in writing by the Required Lenders, subject to the
provisions of this Agreement.

ARTICLE XI

MISCELLANEOUS

     Section 11.01 Notices, Etc.
All notices and other communications provided for hereunder shall be in writing and shall be
mailed, telecopied or delivered, if to the Borrower, at the following address:

IdleAire Technologies Corporation

410 N. Cedar Bluff Road

Suite 200

Knoxville, TN 37923

Attention: James H. Price, General Counsel

Facsimile: 865-437-2640

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With a copy to:

Holland & Knight LLP

10 St. James Avenue

Boston, MA 02116

Facsimile: 617-523-6850

Attention: John J. Monaghan, Esq.

if to the Administrative Agent or the Collateral Agent, at the following address:

Wells Fargo Bank, National Association

625 Marquette

N9311-110

Minneapolis, MN 55479

Attention: Nick D. Tally

Facsimile: (612) 667-9825

With a copy to:

Ropes & Gray LLP

1211 Avenue of the Americas

New York, NY 10036-8704

Attention: Mark R. Somerstein, Esq.

Facsimile: (212) 596-9090

 - and -

Akin Gump Strauss Hauer & Feld LLP

590 Madison Avenue

New York, NY 10022

Attention: Michael S. Stamer, Esq.

Facsimile: (212) 872-1002

if to any Lender, at the address and numbers set forth below the signature of such
Lender on the signature page hereof or on the Assignment and Acceptance Agreement of
such Lender.

     Any party may change its address for purposes of this Agreement by giving notice of such
change to the other parties pursuant to this Section 11.01. All such notices and other
communications shall be effective, (i) if mailed certified, return receipt requested, when received
or three (3) days after deposited in the mails, whichever occurs first, (ii) if telecopied, when
transmitted and confirmation received, or (iii) if delivered, upon delivery, except that notices to
any Agent pursuant to ARTICLE II shall not be effective until received by such Agent.

     Section 11.02 Amendments, Etc. No amendment or waiver
of any provision of this Agreement, and no consent to any departure by
the Borrower therefrom, shall in any event be effective unless the same shall be in writing and
signed by the Required Lenders or by the Administrative Agent with the consent of the Required
Lenders, and then such waiver or consent

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shall be effective only in the specific instance and for
the specific purpose for which given, provided, however, that no amendment, waiver
or consent shall (A) (i) reduce the principal of, or interest on, the Loans payable to any Lender,
reduce the amount of any fee payable for the account of any Lender, or postpone or extend any date
fixed for any payment of principal of, or interest or fees on, the Loans payable to any Lender
(except that an amendment, waiver or consent
may extend the date specified in the definition of
“Scheduled Maturity Date” or otherwise amend the definition of “Scheduled Maturity Date”
with, in each case, the consent of the Required Lenders), (ii) change the percentage of the Total
Commitment or the aggregate unpaid principal amount of the Loans that is required for the Lenders
or any of them to take any action hereunder, (iv) amend the definition of “Required Lenders,” “Pro
Rata Share,” or “Maximum Revolving Credit Amount,” (v) release all or a substantial portion of the
Collateral (except as otherwise provided in this Agreement and the other Loan Documents),
subordinate any Lien granted in favor of the Collateral Agent for the benefit of the Lenders, or
release the Borrower or any Guarantor from any of the Obligations, or (vi) amend, modify or waive
Section 4.04 or this Section 11.02 of this Agreement, in each case, without the written consent of
all Lenders or (B) amend the definition of “Approved Disbursements” or amend or make any other
change or modification to the Approved Disbursements, in each case without the written consent of
Lenders whose Pro Rata Shares aggregate at least 75%. Notwithstanding the foregoing, no amendment,
waiver or consent shall, unless in writing and signed by an Agent, affect the rights or duties of
such Agent under this Agreement or the other Loan Documents.

     Section 11.03 No Waiver; Remedies, Etc. No failure on the part of any Agent or any Lender to exercise, and no delay in exercising, any
right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any
single or partial exercise of any right under any Loan Document preclude any other or further
exercise thereof or the exercise of any other right. The rights and remedies of the Agents and the
Lenders provided herein and in the other Loan Documents are cumulative and are in addition to, and
not exclusive of, any rights or remedies provided by law. The rights of the Agents and the Lenders
under any Loan Document against any party thereto are not conditional or contingent on any attempt
by the Agents and the Lenders to exercise any of their rights under any other Loan Document against
such party or against any other Person.

     Section 11.04 Expenses; Taxes; Attorneys’ Fees. The Borrower will pay, within three (3) Business Days following demand therefor, all (i) out of
pocket costs and expenses of the Agents and the Lenders (including, without limitation, all
reasonable fees, expenses and disbursements of outside counsel and consultants (the
“Professional Fees”)) in connection with the negotiation, preparation, execution and
delivery of the Loan Documents, the funding of all Loans, the administration of the Loan Documents
and the Facility and any proposed amendment or waiver of any provision of the Loan Documents
(whether or not executed and delivered), (ii) out of pocket costs and expenses of the Agents and
the Lenders acting in any capacity (including, without limitation, Professional Fees) in connection
with the preservation, enforcement or protection of any of their rights and remedies under the Loan
Documents or otherwise and (iii) out of pocket costs and expenses of the Ad Hoc Committee
(including, without limitation, Professional Fees) in connection with the negotiations with respect
to the restructuring of the Borrower and the Guarantors and the negotiation, preparation, execution
and delivery of the

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documentation relating thereto. Without limitation of the foregoing or any
other provision of any Loan Document: (x) the Borrower agrees to pay all stamp, document,
transfer, recording or filing taxes or fees and similar impositions now or hereafter determined by
any Agent or any Lender to be payable in connection with this Agreement or any other Loan Document,
and the Borrower agrees to save each Agent and each Lender harmless from and against any and all
present or future claims, liabilities or losses with
respect to or resulting from any omission to pay or delay in paying any such taxes, fees or
impositions and (y) if the Borrower fails to perform any covenant or agreement contained herein or
in any other Loan Document, any Agent may itself perform or cause performance of such covenant or
agreement, and the expenses of such Agent incurred in connection therewith shall be reimbursed on
demand by the Borrower.

     Section 11.05 Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, any Agent or any Lender
may, and is hereby authorized to, at any time and from time to time, without notice to the Borrower
(any such notice being expressly waived by the Borrower) and to the fullest extent permitted by
law, set off and apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other Indebtedness at any time owing by such Agent or such Lender to or
for the credit or the account of the Borrower against any and all obligations of the Borrower
either now or hereafter existing under any Loan Document, irrespective of whether or not such Agent
or the Borrower shall have made any demand hereunder or thereunder and although such obligations
may be contingent or unmatured. Each Agent and each Lender agrees to notify the Borrower promptly
after any such set-off and application made by such Agent or such Lender provided that the failure
to give such notice shall not affect the validity of such set-off and application. The rights of
the Agents and the Lenders under this Section 11.05 are in addition to the other rights and
remedies (including other rights of set-off) which the Agents and the Lenders may have under this
Agreement or any other Loan Documents, under applicable law or otherwise.

     Section 11.06 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective, to the extent permitted by law, to the extent of such
prohibition or unenforceability without invalidating the remaining portions hereof or affecting the
validity or enforceability of such provision in any other jurisdiction.

     Section 11.07 Assignments and Participations.

     (a) This Agreement and the other Loan Documents shall be binding upon and inure to the
benefit of the Borrower and each Agent and each Lender and their respective successors and
assigns; provided, however, that the Borrower may not assign or transfer any of
its rights hereunder or under the Loan Documents without the prior written consent of each Agent
and Lender and any such assignment without the Lenders’ prior written consent shall be null and
void.

     (b) Each Lender, with the written consent of the Administrative Agent (which consent shall
not be unreasonably withheld or delayed), may assign to one or more other Lenders or other
entities all or a portion of its rights and obligations under this Agreement

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(including, without
limitation, all or a portion of the Loans made by it hereunder); provided,
however, that no written consent of the Administrative Agent shall be required (1) in
connection with any assignment by a Lender to an Affiliate of such Lender or a Related Fund
or (2) if such assignment is in connection with any merger, consolidation, sale, transfer,
or other disposition of all or any substantial portion of the business or loan portfolio of such
Lender. Each such assignment shall be in an amount which is at least $500,000 or a multiple of
$500,000 in excess thereof (except such minimum amount shall not apply to an assignment by a
Lender (x) of all, but not less than all, of its rights and obligations under this Agreement
(including, without limitation, all the Loans made by it hereunder), (y) to an Affiliate of such
Lender or a Related Fund of such Lender or (z) to a group of new Lenders, each of whom is an
Affiliate or Related Fund of each other to the extent the aggregate amount to be assigned to all
such new Lenders is at least $500,000 or a multiple of $500,000 in excess thereof, and such
minimum amounts may be waived by the Collateral Agent in its sole discretion for any other
assignments). The parties to each such assignment shall execute and deliver to the
Administrative Agent, for its acceptance, an Assignment and Acceptance, together with any
promissory note subject to such assignment and such parties shall deliver to the Administrative
Agent, unless waived by the Administrative Agent in its sole discretion, a processing and
recordation fee of $3,500 (except the payment of such fee shall not be required if the assignee
is an Affiliate or Related Fund of a Lender). Upon such execution, delivery and acceptance,
from and after the effective date specified in each Assignment and Acceptance, which effective
date shall be at least three (3) Business Days after the delivery thereof to the Administrative
Agent (or such shorter period as shall be agreed to by the Administrative Agent and the parties
to such assignment), (i) the assignee thereunder shall become a “Lender” hereunder and, in
addition to the rights and obligations hereunder held by it immediately prior to such effective
date, shall have the rights and obligations hereunder that have been assigned to it pursuant to
such Assignment and Acceptance and (ii) the assigning Lender thereunder shall, to the extent
that rights and obligations hereunder have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights and be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto).

     (c) By executing and delivering an Assignment and Acceptance, the assigning Lender and the
assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, the assigning Lender
makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this Agreement or any
other Loan Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto;
(ii) the assigning Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or any Guarantor or the performance or
observance by the Borrower or any Guarantor of any of its obligations under this Agreement or
any other Loan Document furnished pursuant hereto; (iii) such assignee confirms that it has
received a copy of this Agreement and the other Loan Documents, together with such other
documents and information it has deemed appropriate

- 62 -

 

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

     (d) The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of
the Borrower, shall maintain, or cause to be maintained, a copy of each Assignment and
Acceptance delivered to and accepted by it and a register (the “Register”) for the
recordation of the names and addresses of the Lenders and the principal amount of the Loans (the
“Registered Loans”) owing to each Lender from time to time. The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the
Agents and the Lenders shall treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement. The Register shall be available for
inspection by the Borrower and any Lender at any reasonable time and from time to time upon
reasonable prior notice.

     (e) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee, together with any promissory notes, if any promissory notes or replacement promissory
notes are requested by the assignee in connection with such assignment, the Administrative Agent
shall, if the Administrative Agent consents to such assignment and if such Assignment and
Acceptance has been completed (i) accept such Assignment and Acceptance and (ii) record the
information contained therein in the Register.

     (f) A Registered Loan (and the registered note, if any, evidencing the same) may be
assigned or sold in whole or in part only by registration of such assignment or sale on the
Register (and each registered note shall expressly so provide). Any assignment or sale of all
or part of such Registered Loan (and the registered note, if any, evidencing the same) may be
effected only by registration of such assignment or sale on the Register, together with the
surrender of the registered note, if any, evidencing the same duly endorsed by (or accompanied
by a written instrument of assignment or sale duly executed by) the holder of such registered
note, whereupon, at the request of the designated assignee(s) or transferee(s), one or more new
registered notes in the same aggregate principal amount shall be issued to the designated
assignee(s) or transferee(s). Prior to the registration of the assignment or sale of any
Registered Loan (and the registered note, if any, evidencing the same), the Agents shall treat
the Person in whose name such Registered Loan (and the registered note, if any, evidencing the
same) is registered as the owner thereof for the purpose of receiving all payments thereon and
for all other purposes, notwithstanding notice to the contrary.

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     (g) In the event that any Lender sells participations in a Registered Loan, such Lender
shall maintain a register, acting solely for this purpose as a non-fiduciary agent of the
Borrower, on which it enters the name of all participants in the Registered Loans held by it
(the “Participant Register”). A Registered Loan (and the registered note, if any,
evidencing the same) may be participated in whole or in part only by registration of such
participation on the Participant Register (and each registered note shall expressly so provide).
Any
participation of such Registered Loan (and the registered note, if any, evidencing the
same) may be effected only by the registration of such participation on the Participant
Register.

     (h) Any foreign Person who purchases or is assigned or participates in any portion of such
Registered Loan shall comply with Section 2.07(d).

     (i) Each Lender may sell participations to one or more banks or other entities in or to all
or a portion of its rights and obligations under this Agreement and the other Loan Documents
(including, without limitation, all or a portion of the Loans made by it); provided,
that (i) such Lender’s obligations under this Agreement and the other Loan Documents shall
remain unchanged; (ii) such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations, and the Borrower, the Agents and the other Lenders
shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement and the other Loan Documents; and (iii) a
participant shall not be entitled to require such Lender to take or omit to take any action
hereunder except (A) action directly effecting an extension of the maturity dates or decrease in
the principal amount of the Loans, (B) action directly effecting an extension of the due dates
or a decrease in the rate of interest payable on the Loans or the fees payable under this
Agreement, or (C) actions directly effecting a release of all or a substantial portion of the
Collateral or a release of the Borrower or any Guarantor from any of the Obligations (except as
set forth in Section 10.08 of this Agreement or any other Loan Document). The Borrower agrees
that each participant shall be entitled to the benefits of Section 2.07 and Section 4.05 of this
Agreement with respect to its participation in any portion of the Loans as if it was a Lender.

     Section 11.08 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which shall be deemed to be an original, but all of which taken
together shall constitute one and the same agreement. Delivery of an executed counterpart of this
Agreement by telecopier shall be equally as effective as delivery of an original executed
counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by
telecopier also shall deliver an original executed counterpart of this Agreement but the failure to
deliver an original executed counterpart shall not affect the validity, enforceability, and binding
effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis.

     Section 11.09 GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN
ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT) SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE

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OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED IN THE STATE OF NEW YORK.

     Section 11.10 CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN, THE COURTS OF
THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND THE APPELLATE COURTS OF ANY
OF THEM, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER HEREBY IRREVOCABLY ACCEPTS
IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFOREMENTIONED
COURTS. THE BORROWER HEREBY CONSENTS TO THE SERVICE OF PROCESS OUT OF THE AFOREMENTIONED COURTS
AND IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED
MAIL, POSTAGE PREPAID, TO THE BORROWER AT ITS ADDRESS FOR NOTICES AS SET FORTH IN SECTION 11.01.
NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE AGENTS AND THE LENDERS TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE BORROWER
IN ANY OTHER JURISDICTION. THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN THE COURTS REFERRED TO ABOVE AND ANY CLAIM THAT
ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE BORROWER HAS
OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS
(WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR
OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE BORROWER HEREBY IRREVOCABLY WAIVES SUCH
IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

     Section 11.11 WAIVER OF JURY TRIAL, ETC. THE BORROWER, EACH AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT
DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION THEREWITH, OR ARISING FROM ANY
FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION,
PROCEEDINGS OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. THE BORROWER
CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF ANY AGENT OR ANY LENDER
HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY AGENT OR ANY LENDER

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WOULD NOT, IN THE EVENT OF ANY
ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. THE BORROWER HEREBY
ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE AGENTS AND THE LENDERS ENTERING
INTO THIS AGREEMENT.

     Section 11.12 No Party Deemed Drafter. Each of the parties hereto agrees that no party hereto shall be deemed to be the drafter of this
Agreement.

     Section 11.13 Reinstatement; Certain Payments. If any claim is ever made upon any Agent or any Lender for repayment or recovery of any amount
or amounts received by such Agent or such Lender in payment or on account of any of the
Obligations, such Agent or such Lender shall give prompt notice of such claim to each other Agent
and Lender and the Borrower, and if such Agent or such Lender repays all or part of such amount by
reason of (i) any judgment, decree or order of any court or administrative body having jurisdiction
over such Agent or such Lender or any of its property, or (ii) any good faith settlement or
compromise of any such claim effected by such Agent or such Lender with any such claimant, then and
in such event the Borrower agrees that (A) any such judgment, decree, order, settlement or
compromise shall be binding upon it notwithstanding the cancellation of any Indebtedness hereunder
or under the other Loan Documents or the termination of this Agreement or the other Loan Documents,
and (B) it shall be and remain liable to such Agent or such Lender hereunder for the amount so
repaid or recovered to the same extent as if such amount had never originally been received by such
Agent or such Lender.

     Section 11.14 Indemnification.

     (a) General Indemnity. In addition to the Borrower’s other Obligations under this
Agreement, the Borrower agrees to defend, protect, indemnify and hold harmless, each Lender, the
Administrative Agent, the Collateral Agent, and each of their affiliates and each of the
respective officers, directors, members, partners, employees, agents, advisors, attorneys and
representatives of each, in its capacity as such, including without limitation all
Lender-Related Persons and Agent-Related Persons (each, an “Indemnified Party”), from
and against any and all claims, damages, losses, liabilities, and expenses (including, without
limitation, reasonable fees and disbursements of counsel), joint or several, that may be
incurred by or asserted or awarded against any Indemnified Party (including, without limitation,
in connection with or relating to any investigation, litigation or proceeding or the preparation
of any defense in connection therewith), in each case arising out of or by reason of the
Facility, this Agreement or the other Loan Documents or any of the transactions contemplated
hereby or thereby, or any actual or proposed use of the proceeds of the Facility (collectively,
the “Indemnified Matters”), except to the extent such claim, damage, loss, liability or
expense is found in a final judgment by a court of competent jurisdiction to have resulted from
such Indemnified Party’s gross negligence, willful misconduct or bad faith. In the case of an
investigation, litigation or other proceeding to which the indemnity in this paragraph applies,
such indemnity shall be effective whether or not such investigation, litigation or proceeding is
brought by the Borrower or any Guarantor, any of their respective directors, security holders or
creditors, an Indemnified Party or any other person, or an

- 66 -

 

Indemnified Party is otherwise a
party thereto and whether or not the transactions contemplated hereby or by the other Loan
Documents are consummated. The Borrower further agrees, on its own behalf and on behalf of each
Guarantor, that no Indemnified Party shall have any liability (whether direct or indirect, in
contract, tort, or otherwise) to the
Borrower or any Guarantor for or by reason of the transactions contemplated hereby or by
the other Loan Documents, except for direct damages (as opposed to special, indirect,
consequential or punitive damages (including, without limitation, any loss of profits, business
or anticipated savings)) determined in a final judgment by a court of competent jurisdiction to
have resulted from such Indemnified Party’s gross negligence, willful misconduct or bad faith.
To the extent that the undertaking to indemnify, pay and hold harmless set forth in this Section
11.14(a) may be unenforceable because it is violative of any law or public policy, the Borrower
shall contribute the maximum portion which it is permitted to pay and satisfy under applicable
law, to the payment and satisfaction of all Indemnified Matters incurred by any Indemnified
Party. This Indemnity shall survive the repayment of the Obligations, the termination of the
Total Commitment and the discharge of the Liens granted under the Loan Documents.

     (b) Environmental Indemnity. Without limiting Section 11.14(a) hereof, the
Borrower agrees to defend, indemnify, and hold harmless the Indemnitees against any and all
Environmental Liabilities and Costs and all other claims, demands, penalties, fines, liability
(including strict liability), losses, damages, costs and expenses (including without limitation,
reasonable legal fees and expenses, consultant fees and laboratory fees), arising out of (i) any
Releases or threatened Releases (x) at any property presently or formerly owned or operated by
the Borrower, or any predecessor in interest, or (y) of any Hazardous Materials generated and
disposed of by the Borrower, or any predecessor in interest; (ii) any violations by the
Borrower, any Guarantor, or any predecessor in interest of any such Person of Environmental
Laws; (iii) any Environmental Action relating to the Borrower, or any predecessor in interest;
(iv) any personal injury (including wrongful death) or property damage (real or personal)
arising out of exposure to Hazardous Materials used, handled, generated, transported or disposed
by the Borrower, or any predecessor in interest; and (v) any breach of any warranty or
representation regarding environmental matters made by the Borrower in Section 6.01(q) or the
breach of any covenant made by the Borrower in Section 7.01(i). Notwithstanding the foregoing,
the Borrower shall not have any obligation to any Indemnitee under this subsection (b) regarding
any potential environmental matter covered hereunder which is caused by the gross negligence,
willful misconduct or bad faith of such Indemnitee, as determined by a final judgment of a court
of competent jurisdiction.

     Section 11.15 Records. The unpaid principal of and interest on the Loans, the interest rate or rates applicable to such
unpaid principal and interest, the duration of such applicability, and the accrued and unpaid fees
payable pursuant to Section 2.06 hereof, shall at all times be ascertained from the records of the
Agents, which shall be conclusive and binding absent manifest error.

     Section 11.16 Binding Effect. This Agreement shall become effective when it shall have been executed by the Borrower, each
Agent and each Lender and when the conditions precedent

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set forth in Section 5.01 hereof have been
satisfied or waived in writing by the Lenders, and thereafter shall be binding upon and inure to
the benefit of the Borrower, each Agent and each Lender, and their respective successors and
assigns, except that the Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of each Lender, and any assignment by any Lender
shall be governed by Section 11.07 hereof.

     Section 11.17 Interest. It is the intention of the parties hereto that each Agent and each Lender shall conform strictly
to usury laws applicable to it. Accordingly, if the transactions contemplated hereby or by any
other Loan Document would be usurious as to any Agent or any Lender under laws applicable to it
(including the laws of the United States of America and the State of New York or any other
jurisdiction whose laws may be mandatorily applicable to such Agent or such Lender notwithstanding
the other provisions of this Agreement), then, in that event, notwithstanding anything to the
contrary in this Agreement or any other Loan Document or any agreement entered into in connection
with or as security for the Obligations, it is agreed that the aggregate of all consideration which
constitutes interest under law applicable to any Agent or any Lender that is contracted for, taken,
reserved, charged or received by such Agent or such Lender under this Agreement or any other Loan
Document or agreements or otherwise in connection with the Obligations shall under no circumstances
exceed the maximum amount allowed by such applicable law, any excess shall be canceled
automatically and if theretofore paid shall be credited by such Agent or such Lender on the
principal amount of the Obligations (or, to the extent that the principal amount of the Obligations
shall have been or would thereby be paid in full, refunded by such Agent or such Lender, as
applicable, to the Borrower). If at any time and from time to time (x) the amount of interest
payable to any Agent or any Lender on any date shall be computed at the Highest Lawful Rate
applicable to such Agent or such Lender pursuant to this Section 11.17 and (y) in respect of any
subsequent interest computation period the amount of interest otherwise payable to such Agent or
such Lender would be less than the amount of interest payable to such Agent or such Lender computed
at the Highest Lawful Rate applicable to such Agent or such Lender, then the amount of interest
payable to such Agent or such Lender in respect of such subsequent interest computation period
shall continue to be computed at the Highest Lawful Rate applicable to such Agent or such Lender
until the total amount of interest payable to such Agent or such Lender shall equal the total
amount of interest which would have been payable to such Agent or such Lender if the total amount
of interest had been computed without giving effect to this Section 11.17.

     For purposes of this Section 11.17, the term “applicable law” shall mean that law in effect
from time to time and applicable to the loan transaction between the Borrower, on the one hand, and
the Agents and the Lenders, on the other, that lawfully permits the charging and collection of the
highest permissible, lawful non-usurious rate of interest on such loan transaction and this
Agreement, including laws of the State of New York and, to the extent controlling, laws of the
United States of America.

     Section 11.18 Confidentiality. Each Agent and each Lender agrees (on behalf of itself and each of its affiliates, directors,
officers, employees and representatives) to use reasonable precautions to keep confidential, in
accordance with its customary procedures for handling confidential information of this nature and
in accordance with safe and sound practices
of

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comparable lenders, any non-public information
supplied to it by the Borrower pursuant to this Agreement or the other Loan
Documents which is identified in writing by the Borrower as being confidential at the time the same
is delivered to such Person (and which at the time is not, and does not thereafter become, publicly
available or available to such Person from another source not known to be subject to a
confidentiality obligation to such Person not to disclose such information), provided that
nothing herein shall limit the disclosure of any such information (i) to the extent required by
statute, rule, regulation or judicial process, (ii) to outside counsel for any Agent or any Lender,
(iii) to examiners, auditors or accountants, (iv) in connection with any litigation to which any
Agent or any Lender is a party or (v) to any assignee or participant (or prospective assignee or
participant) so long as such assignee or participant (or prospective assignee or participant) first
agrees, in writing, to be bound by confidentiality provisions similar in substance to this
Section 11.18. Notwithstanding the foregoing, each Agent and each Lender may disclose to any and
all Persons, without limitation of any kind, the tax treatment and tax structure of the financing
contemplated by this Agreement, and all materials of any kind (including opinions or other tax
analyses) that are provided to any Agent or any Lender relating to such tax treatment and tax
structure. Each Agent and each Lender agrees that, upon receipt of a request or identification of
the requirement for disclosure pursuant to clause (iv) hereof, it will make reasonable efforts to
keep the Borrower informed of such request or identification; provided that the Borrower
acknowledges that each Agent and each Lender may make disclosure as required or requested by any
Governmental Authority or representative thereof and that each Agent and each Lender may be subject
to review by regulatory agencies and may be required to provide to, or otherwise make available for
review by, the representatives of such parties or agencies any such non-public information.

     Section 11.19 Integration. This Agreement, together with the other Loan Documents, reflects the entire understanding of the
parties with respect to the transactions contemplated hereby and shall not be contradicted or
qualified by any other agreement, oral or written, before the date hereof.

     Section 11.20 Termination. On the date of Termination, (a) this Agreement and all
other Loan Documents (and all Liens granted thereunder) shall terminate, except Sections 2.07,
4.05, 10.05, 11.04, 11.05, 11.09, 11.10, 11.11, 11.13, 11.14 and any other provisions thereof which
expressly survive termination, and (b) the Agents will, at the Borrower’s sole expense, execute and
deliver any termination statement, lien releases, re-assignment of trademarks, discharges of
security interests, and other similar discharge or release documents as are reasonably necessary to
release any Lien or either Agent and all notices of security interests and liens previously filed
by either Agent with respect to the Collateral.

     Section 11.21 Limitation on Suits by Agents and Lenders. Each Agent and each Lender
in any capacity agrees that it will not bring any legal action or proceeding against any of the
Borrower’s directors or officers (other than the CRO referred to in Section 5.01(h)) seeking
damages or other legal redress arising solely from (a) the appointment by the Borrower of such CRO
or (b) the acts or omissions of such CRO while serving as such.

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     Section 11.22 Public Announcements.  The Borrower agrees that it will not make
any public filing, announcement or other disclosure of the Facility or this Agreement or the other
Loan Documents without giving the Lenders at least three (3) Business Days’ prior notice thereof,
which notice shall include a copy of the proposed filing, announcement or other
disclosure; provided, however, that the Borrower shall not be obligated to
provide three (3) Business Days’ prior notice of any such disclosure contained in court filings
made by the Borrower so long as, other than with respect to any such filings made in a Chapter 11
Case, the Borrower shall have given such notice to the Lenders as soon as practicable before or, if
prior notice is impracticable, after such filing.  In addition, the Borrower will not name or
otherwise disclose the identity of any Lender or any Affiliate of any Lender in any such filing,
announcement or disclosure, unless contained in a court filing made by the Borrower in a Chapter 11
Case or otherwise required under applicable law or rules promulgated by the SEC, without the prior
written consent of such Lender, which consent is in the sole discretion of such Lender.

[Signature pages follow.]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

IDLEAIRE TECHNOLOGIES CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COLLATERAL AGENT AND ADMINISTRATIVE AGENT:

WELLS FARGO BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

71

 

	 	 	 	 	 

	 	 	 	 	 
	 	 	LENDERS:
	 
	 	 	 	 
	 	 	AIRLIE OPPORTUNITY MASTER FUND, LTD.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Steve Ezzes
	 

	 	 	 	Title: Managing Director
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	Airlie Group
	 	 	115 East Putnam Ave.
	 	 	Greenwich, CT 06830
	 	 	Attention: Steve Ezzes
	 	 	Facsimile: (203) 661-0479
	 	 	Email: Steve@airliegroup.com

72

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	SLT Custom Support
	 	 	JPMorgan Chase Bank, N.A.
	 	 	MCC 3/OPS2
	 	 	500 Stanton Christiana Road
	 	 	Newark, DE 19713
	 	 	Attention: Michael J. Samalonis
	 	 	Facsimile: (302) 634-4110
	 	 	Email: SLT_Custom_Support@jpmchase.com

73

 

	 	 	 	 	 
	 	 	KENMONT SPECIAL OPPORTUNITIES MASTER FUND, L.P.
	 
	 	 	 	 
	 	 	By: KENMONT INVESTMENTS MANAGEMENT, L.P., its Investment Manager
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	Kenmont Investments Management, L.P.
	 	 	711 Louisiana St., Suite 1750
	 	 	Houston, Texas 77002
	 	 	Attention: Stacey Ostrom
	 	 	Facsimile: (713) 223-0930
	 	 	Email: sostrom@kenmontinvestments.com
	 
	 	 	 	 
	 	 	MIESQUE FUND LIMITED
	 
	 	 	 	 
	 

	 	By: KENMONT INVESTMENTS MANAGEMENT, L.P., its Investment Manager
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	Kenmont Investments Management, L.P.
	 	 	711 Louisiana St., Suite 1750
	 	 	Houston, Texas 77002
	 	 	Attention: Stacey Ostrom
	 	 	Facsimile: (713) 223-0930
	 	 	Email: sostrom@kenmontinvestments.com

74

 

	 	 	 	 	 
	 	 	SV SPECIAL SITUATIONS MASTER FUND LTD.
	 
	 	 	 	 
	 

	 	By:
	 	STAGG CAPITAL GROUP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Scott A. Stagg
	 

	 	 	 	Title: Managing Member
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	SV Special Situations Fund 
	 	 	Stagg Capital Group LLC
	 	 	3 Greenwich Office Park
	 	 	Greenwich, CT 06831
	 	 	Attention: Mark Focht
	 	 	Facsimile: (203) 660-6210
	 	 	Email: mark@svfunds.com
	 
	 	 	 	 
	 	 	PIERCE DIVERSIFIED
TRADING STRATEGY FUND LLC

	 
	 	 	 	 
	 

	 	By:
	 	PIERCE DIVERSIFIED STRATEGY HOLDINGS FUND, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	Name: Scott A. Stagg
Title: Trading Advisor
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	SV Special Situations Fund 
	 	 	Stagg Capital Group LLC
	 	 	3 Greenwich Office Park
	 	 	Greenwich, CT 06831
	 	 	Attention: Mark Focht
	 	 	Facsimile: (203) 660-6210
	 	 	Email: mark@svfunds.com

75

 

	 	 	 	 	 
	 	 	
WHITEBOX HEDGED HIGH YIELD PARTNERS, LP

	 
	 	 	 	 
	 

	 	By:
	 	WHITEBOX HEDGED HIGH YIELD ADVISORS, LLC
	 
	 	 	 	 
	 

	 	By:
	 	WHITEBOX ADVISORS, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	Whitebox Advisors
	 	 	3033 Excelsior Blvd., Suite 300
	 	 	Minneapolis, MN 55416
	 	 	Attention: Barb Reller
	 	 	Facsimile: (612) 253-6151
	 	 	Email: BReller@whiteboxadvisors.com

76

 

	 	 	 	 	 
	 	 	WILFRID AUBREY GROWTH FUND, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	WILFRID AUBREY ASSOCIATES LLC, a Delaware limited liability company, its

general partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Nicholas W. Walsh CFA
	 

	 	 	 	Title: Principal
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	Wilfrid Aubrey LLC
	 	 	100 William Street, Suite 1850
	 	 	New York, NY 10038
	 	 	Attention: Deirdre Simon
	 	 	Facsimile: (212) 675-3626
	 	 	Email: simond@wilfridaubrey.com

	 	 	 	 	 
	 	 	WILFRID AUBREY INTERNATIONAL LIMITED
	 
	 	 	 	 
	 

	 	By:	 	WILFRID AUBREY LLC, a Delaware
limited liability company, its Investment Manager
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Nicholas W. Walsh CFA
	 

	 	 	 	Title: Principal
	 
	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 
	 	 	Wilfrid Aubrey LLC
	 	 	100 William Street, Suite 1850
	 	 	New York, NY 10038
	 	 	Attention: Deirdre Simon
	 	 	Facsimile: (212) 675-3626
	 	 	Email: simond@wilfridaubrey.com

77exv10w2

 

Exhibit
10.2

EXECUTION COPY

SECURITY AGREEMENT

     SECURITY AGREEMENT, dated as of April 24, 2008 (as amended, restated, supplemented or
otherwise modified from time to time, this “Agreement”), made by IdleAire Technologies
Corporation, a Delaware corporation (“Grantor”), in favor of Wells Fargo Bank, National
Association (“Wells Fargo”), in its capacity as collateral agent for the Lenders (as such
term is defined below) party to the Credit Agreement referred to below (in such capacity, together
with any successors and assigns, if any, the “Collateral Agent”).

W I T N E S S E T H:

     WHEREAS, pursuant to that certain Credit Agreement dated as of the date hereof by and among
Grantor as borrower (“Borrower”), the lenders from time to time party thereto (each a
“Lender” and collectively, the “Lenders”), the Collateral Agent, and Wells Fargo,
as administrative agent for the Lenders (in such capacity, together with any successors and
assigns, if any, the “Administrative Agent” and together with the Collateral Agent, each an
“Agent” and collectively, the “Agents”) (including all annexes, exhibits and
schedules thereto, as from time to time amended, restated, supplemented or otherwise modified, the
“Credit Agreement”), the Lenders have agreed, subject to the terms and conditions set forth
in the Credit Agreement, to make Loans to Grantor as Borrower pursuant to the Credit Agreement;

     WHEREAS, it is a condition precedent to the Lenders making the Loans to Grantor as Borrower
pursuant to the Credit Agreement that Grantor shall have executed and delivered to the Collateral
Agent a security agreement providing for the grant to the Collateral Agent for the benefit of the
Agents and the Lenders of a security interest in all personal property of Grantor; and

     WHEREAS, Grantor has determined that the execution, delivery and performance of this Agreement
directly benefit, and are within the corporate purposes and in the best interests of, Grantor;

     NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to
induce the Lenders to make and maintain the Loans to Grantor as Borrower pursuant to the Credit
Agreement, Grantor hereby agrees with the Collateral Agent, for the benefit of the Agents and the
Lenders, as follows:

          SECTION 1. Construction; Definitions.

     (a) Reference is hereby made to the Credit Agreement for a statement of the terms thereof.
All terms used in this Agreement and the recitals hereto which are defined in the Credit Agreement
or in Article 9 of the Uniform Commercial Code as in effect from time to time in the State of New
York (the “Code”) and that are not otherwise defined herein shall have the same meanings
herein as set forth therein; provided that terms used herein which are defined in

 

 

the Code as in effect in the State of New York on the date hereof shall continue to have the
same meaning notwithstanding any replacement or amendment of such statute except as the Required
Lenders may otherwise determine.

          (b) This Agreement is subject to the Credit Agreement. In the event of a direct conflict
between any of the terms of the Credit Agreement, on the one hand, and the terms of this Agreement,
on the other hand, the Credit Agreement shall control; provided, however, that the
inclusion herein of additional agreements, representations, covenants, duties and obligations on
the part of Grantor and additional rights and remedies in favor of the Collateral Agent, the
Administrative Agent or any Lender shall not be deemed a conflict with the Credit Agreement.

          (c) The following terms shall have the respective meanings provided for in the Code: “Account
Debtor,” “Cash Proceeds,” “Commercial tort claim,” “Commodity Account,” “Commodity Contracts,”
“Electronic Chattel Paper,” “Noncash Proceeds,” “Payment Intangibles,” “Promissory Notes,”
“Record,” “Security Account,” and “Software.”

          (d) As used in this Agreement, the following terms shall have the respective meanings
indicated below, such meanings to be applicable equally to both the singular and plural forms of
such terms:

          “Accounts” means all “accounts,” as such term is defined in the Code, now owned or
hereafter acquired by Grantor.

          “Books” means all books and records (including all of its records indicating,
summarizing, or evidencing (a) the assets composing the Collateral, (b) its liabilities, (c) its
business operations or financial condition, and (d) all of its Goods or General Intangibles related
to such information) now owned or hereafter acquired by Grantor.

          “Chattel Paper” means any “chattel paper,” as such term is defined in the Code,
including electronic chattel paper, now owned or hereafter acquired by Grantor.

          “Contractual Obligations” means, as applied to Grantor, any provision of any security
issued by it or of any agreement or other instrument to which it is a party or by which it or any
of the properties owned or leased by it is bound or otherwise subject.

          “Copyright License” means rights under any written agreement now owned or hereafter
acquired by Grantor granting any right to use any Copyright.

          “Copyrights” means all of the following now owned or hereafter acquired by Grantor:
(a) all copyrights (whether registered or unregistered), all registrations and recordings thereof,
and all applications in connection therewith, including all registrations, recordings and
applications in the United States Copyright Office or in any similar office or agency of the United
States, any state or territory thereof, or any other country or any political subdivision thereof,
and (b) all reissues, extensions or renewals thereof.

          “Deposit Accounts” means all “deposit accounts,” as such term is defined in the Code,
now or hereafter held in the name of Grantor.

-2-

 

          “Documents” means all “documents,” as such term is defined in the Code, now owned or
hereafter acquired by Grantor, wherever located.

          “Equipment” means all “equipment,” as such term is defined in the Code, now owned or
hereafter acquired by Grantor, wherever located, and, in any event, including all Grantor’s
machinery and equipment, including processing equipment, conveyors, machine tools, data processing
and computer equipment, including embedded software and peripheral equipment and all engineering,
processing and manufacturing equipment, office machinery, furniture, materials handling equipment,
tools, attachments, accessories, automotive equipment, trailers, trucks, forklifts, molds, dies,
stamps, motor vehicles, rolling stock and other equipment of every kind and nature, trade fixtures
and fixtures not forming a part of real property, together with all additions and accessions
thereto, replacements therefor, all parts therefor, all substitutes for any of the foregoing, fuel
therefor, and all manuals, drawings, instructions, warranties and rights with respect thereto, and
all products and proceeds thereof and condemnation awards and insurance proceeds with respect
thereto.

          “Equity Interests” of any Person means (a) any and all shares or other equity
interests (including common stock, preferred stock, limited liability company interests and
partnership interests) in such Person and (b) all rights to purchase, warrants or options (whether
or not currently exercisable), participations or other equivalents of or interests in (however
designated) such shares or other interests in such Person.

          “Fair Market Value” means, with respect to any asset, the price (after taking into
account any liabilities relating to such assets) that would be negotiated in an arm ‘s-length
transaction for cash between a willing seller and a willing and able buyer, neither of which is
under any compulsion to complete the transaction, as such price is determined in good faith by the
Board of Directors of Grantor, as evidenced by a resolution of such Board of Directors.

          “Fixtures” means all “fixtures,” as such term is defined in the Code, now owned or
hereafter acquired by Grantor.

          “General Intangibles” means all “general intangibles,” as such term is defined in the
Code, now owned or hereafter acquired by Grantor, including (a) all Intellectual Property Rights,
(b) all interest rate or currency protection or hedging arrangements, (c) all tax refunds, (d) all
licenses, permits, concessions and authorizations, (e) all insurance policies and (f) all
Contractual Obligations.

          “Goods” means all “goods,” as defined in the Code, now owned or hereafter acquired by
Grantor, wherever located, including embedded software to the extent included in “goods” as defined
in the Code.

          “Governmental Authority” means any nation, any state or other political subdivision
thereof and any entity exercising executive, legislative, judicial, regulatory or administrative
functions of government, including any tribunal or arbitrator(s) of competent jurisdiction.

-3-

 

          “Instruments” means all “instruments,” as such term is defined in the Code, now owned
or hereafter acquired by Grantor, wherever located, and, in any event, including all certificates
of deposit, and all promissory notes and other evidences of indebtedness, other than instruments
that constitute, or are a part of a group of writings that constitute, Chattel Paper.

          “Intellectual Property” means the Copyrights, Trademarks and Patents.

          “Intellectual Property Right” means (a) any Patent, Patent License, Copyright,
Copyright License, Trademark, Trademark License, trade secret or other intellectual property right,
(b) all registrations and applications to register any such Patent, Copyright, Trademark or other
intellectual property right with any Governmental Authority and all renewals and extensions thereof
and (c) the goodwill of the business associated with or relating to any such Trademark or other
intellectual property right.

          “Inventory” means all “inventory,” as such term is defined in the Code, now owned or
hereafter acquired by Grantor, wherever located, and in any event including inventory, merchandise,
goods and other personal property that are held by or on behalf of Grantor for sale or lease or are
furnished or are to be furnished under a contract of service, or that constitute raw materials,
work in process, finished goods, returned goods, or materials or supplies of any kind, nature or
description used or consumed or to be used or consumed in Grantor’s business or in the processing,
production, packaging, promotion, delivery or shipping of the same, including all supplies and
embedded software.

          “Investment Property” means all “investment property,” as such term is defined in the
Code, now owned or hereafter acquired by Grantor.

          “Letter-of-Credit Rights” means “letter-of-credit rights,” as such term is defined in
the Code, now owned or hereafter acquired by Grantor, including rights to payment or performance
under a letter of credit, whether or not Grantor, as beneficiary, has demanded or is entitled to
demand payment or performance.

          “Lien” means, with respect to any asset, any mortgage, deed of trust, lien (statutory
or other), pledge, lease, easement, restriction, covenant, charge, security interest or other
encumbrance of any kind or nature in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law, including any conditional sale or other title retention
agreement, and any lease in the nature thereof, any option or other agreement to sell, and any
filing of, or agreement to give, any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction (other than cautionary filings in respect of operating
leases) and any agreement to give or refrain from giving any of the foregoing.

          “Licenses” means the Copyright Licenses, the Trademark Licenses and the Patent
Licenses.

          “Patent License” means rights under any written agreement now owned or hereafter
acquired by Grantor granting any right with respect to any invention on which a Patent is in
existence.

-4-

 

          “Patents” means all of the following in which Grantor now holds or hereafter acquires
any interest: (a) all letters patent of the United States or of any other country, all
registrations and recordings thereof, and all applications for letters patent of the United States
or of any other country, including registrations, recordings and applications in the United States
Patent and Trademark Office or in any similar office or agency of the United States, any State, or
any other country, and (b) all reissues, continuations, continuations-in-part or extensions
thereof.

          “Person” means any individual, corporation, partnership, limited liability company,
joint venture, incorporated or unincorporated association, joint-stock company, trust,
unincorporated organization or government or other agency or political subdivision thereof or other
entity of any kind.

          “Pledged Equity Interests” means the number of shares (or equivalent) of each class of
Equity Interests in which Grantor has an ownership interest, as set forth on Schedule VI
hereto.

          “Proceeds” means “proceeds,” as such term is defined in the Code, including:

          (a) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to Grantor
from time to time with respect to any of the Collateral;

          (b) any and all payments (in any form whatsoever) made or due and payable to Grantor from time
to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of
all or any part of the Collateral by any Governmental Authority (or any Person acting under color
of governmental authority);

          (c) any claim of Grantor against third parties (i) for past, present or future infringement of
any Patent or Patent License, or (ii) for past, present or future infringement or dilution of any
Copyright, Copyright License, Trademark or Trademark License, or for injury to the goodwill
associated with any Trademark or Trademark License;

          (d) any recoveries by Grantor against third parties with respect to any litigation or dispute
concerning any of the Collateral including claims arising out of the loss or nonconformity of,
interference with the use of, defects in, or infringement of rights in, or damage to, Collateral;

          (e) all amounts collected on, or distributed on account of, other Collateral, including
dividends, interest, distributions and Instruments with respect to Investment Property and Pledged
Equity Interests; and

          (f) any and all other amounts, rights to payment or other property acquired upon the sale,
lease, license, exchange or other disposition of Collateral and all rights arising out of
Collateral.

-5-

 

          “Trademark Licenses” means rights under any written agreement now owned or hereafter
acquired by Grantor granting any right to use any Trademark.

          “Trademarks” means all of the following now owned or hereafter existing or adopted or
acquired by Grantor: (a) all trademarks, trade styles which constitute branding, service marks,
logos, other source or business identifiers, designs and general intangibles of like nature used in
branding Grantor’s products or services (whether registered or unregistered), all registrations and
recordings thereof, and all applications in connection therewith, including registrations,
recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state or territory thereof, or any other
country or any political subdivision thereof, (b) all reissues, extensions or renewals thereof and
(c) all goodwill associated with or symbolized by any of the foregoing.

          “Supporting Obligations” means all “supporting obligations,” as such term is defined
in the Code.

          SECTION 2. Grant of Security Interest. As collateral security for all of the
Obligations (as defined in Section 3 hereof), Grantor hereby pledges and assigns to the Collateral
Agent, and grants to the Collateral Agent, for the benefit of the Agents and the Lenders, a
continuing security interest in, all right, title, claim, estate and interest of Grantor in and to
all property and interests in property, whether now owned and existing or hereafter acquired or
arising, wherever located, including the following (such property and interests in property being,
collectively, the “Collateral ”):

          (a) all Accounts;

          (b) all Chattel Paper;

          (c) all Documents;

          (d) all General Intangibles;

               (e) all Goods (including Inventory, Equipment, and Fixtures); provided, that it is
expressly agreed that the security interest in any of the Fixtures that are located within the
State of California, is a security interest granted under and governed by the Code and not a Lien
under real estate law;

          (f) all Instruments;

          (g) all Investment Property;

          (h) all Deposit Accounts;

          (i) all money, cash or cash equivalents;

          (j) all Supporting Obligations and Letter-of-Credit Rights;

-6-

 

          (k) all Books;

          (l) the commercial tort claims described on Schedule V hereto; and

               (m) to the extent not otherwise included, all Proceeds, tort claims, insurance claims and
other rights to payments not otherwise included in the foregoing and products of the foregoing and
all accessories to, substitutions and replacements for, and rents and profits of, each of the
foregoing.

     Anything herein to the contrary notwithstanding, the Collateral shall not include any of the
following (the “Excluded Assets”):

     (1) any lease, license, contract, property right or agreement to which Grantor is a party or
any of its rights or interests thereunder if and only for so long as the grant of a Lien under any
security agreement or any mortgage will constitute or result in a breach, termination or default
under any such lease, license, contract, property right or agreement (other than to the extent that
any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of
the Uniform Commercial Code of any relevant jurisdiction or any other applicable law or principles
of equity); provided, that such lease, license, contract, property right or agreement will
be an Excluded Asset (as hereinafter defined) only to the extent and for so long as the
consequences specified above will result and will cease to be an Excluded Asset and will become
subject to the Lien granted under the security documents, immediately and automatically, at such
time as such consequences will no longer result;

     (2) real property owned by Grantor that has a Fair Market Value not exceeding $2.0 million in
the aggregate, or any real property leased by Grantor;

     (3) any other assets in which a Lien cannot be perfected either (i) by the filing of a
financing statement under the Uniform Commercial Code of the relevant jurisdiction or (ii) by the
recordation of notice filings or other instruments with the United States Patent and Trademark
Office or the United States Copyright Office, so long as the aggregate Fair Market Value of all
such assets does not at any one time exceed $1.0 million;

     (4) the SunTrust CD; and

     (5) Disbursement Account Collateral (as defined in the Intercreditor Agreement);

     provided , that the Collateral shall include (A) the Proceeds of the above to the
extent such Proceeds are otherwise included in the Collateral and (B) all items excluded pursuant
to clause (1) or (2) from and after the date on which the requisite consent is obtained.
Furthermore, Grantor shall use its best efforts of to obtain and maintain in full force and effect
all consents contemplated pursuant to clause (1) and (2).

          SECTION 3. Security for Obligations. The security interest created hereby in the
Collateral constitutes continuing collateral security for all of the following indebtedness,
liabilities and/or obligations, whether now existing or hereafter incurred (the
“Obligations”):

-7-

 

          (a) the prompt payment by Grantor, as and when due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise), of all amounts from time to time owing by
it in respect of the Credit Agreement and the other Loan Documents, and all commissions, charges,
indemnifications, expense reimbursements, and all other amounts due or to become due under any Loan
Document; and

          (b) the due performance and observance by Grantor of all of its other obligations from time to
time existing in respect of the Loan Documents.

          SECTION 4. Representations and Warranties. Grantor represents and warrants as
follows:

          (a) Schedule I hereto sets forth (i) the exact legal name of Grantor and (ii) the
organizational identification number of Grantor or states that no such organizational
identification number exists.

          (b) Grantor’s chief place of business and chief executive office, the place where Grantor
keeps its Records concerning Accounts and all originals of all Chattel Paper are located at the
addresses specified therefor in Schedule III hereto (as amended, supplemented or otherwise
modified from time to time in accordance with the terms hereof). As of the Effective Date, none of
the Accounts is evidenced by Promissory Notes or other Instruments. Set forth in Schedule
IV hereto is a complete and accurate list, as of the Effective Date, of each Deposit Account,
Securities Account and Commodities Account of Grantor, together with the name and address of each
institution at which each such Account is maintained, the account number for each such Account and
a description of the purpose of each such Account.

          (c) Schedule II hereto sets forth a true and complete list of all registered Patents,
registered Trademarks and registered Copyrights as of the Effective Date. All such Intellectual
Property is subsisting and in full force and effect, has not been adjudged invalid or
unenforceable, is valid and enforceable and has not been abandoned in whole or in part. Except as
set forth in Schedule II hereto, no such Intellectual Property is the subject of any
licensing or franchising agreement.

          (d) Grantor is and will be at all times the sole and exclusive owner of, or otherwise have and
will have adequate rights in, the Collateral free and clear of any Lien except for the Permitted
Liens. No effective financing statement or other instrument similar in effect covering all or any
part of the Collateral is on file in any recording or filing office except (A) such as may have
been filed in favor of the Collateral Agent relating to this Agreement and (B) such as may have
been filed to perfect or protect any Permitted Lien.

          (e) No authorization or approval or other action by, and no notice to or filing with, any
Governmental Authority or other regulatory body is required for the grant by Grantor of the
security interest purported to be created hereby in the Collateral.

          (f) This Agreement creates in favor of the Collateral Agent for the benefit of the Agents and
the Lenders a valid security interest in the Collateral to the extent capable of being created
under Article 9 of the Uniform Commercial Code, as security for the Obligations; the Collateral
Agent’s having possession of all Instruments, Documents, Chattel Paper and cash

-8-

 

constituting Collateral, the recording of the appropriate Assignment for Security, as
applicable, executed pursuant hereto in the United States Patent and Trademark Office and the
United States Copyright Office, as applicable, and the filing of the financing statements and, with
respect to the Intellectual Property hereafter existing and not covered by an applicable Assignment
for Security, the recording in the United States Patent and Trademark Office or the United States
Copyright Office, as applicable, of appropriate instruments of assignment, result in the perfection
of such security interests; such security interests are, or in the case of Collateral in which
Grantor obtains rights after the date hereof, will be, perfected, first priority security
interests, subject only to the Permitted Liens and the recording or filing of such instruments of
assignment described above.

          (g) As of the date hereof, Grantor does not own any Subsidiaries.

          SECTION 5. Covenants as to the Collateral. Until Termination, unless the Required
Lenders shall otherwise consent in writing:

          (a) Further Assurances. Grantor will at its expense, at any time and from time to
time, promptly execute and deliver all further instruments and documents and take all further
action that may be necessary or desirable or that the Collateral Agent or Required Lenders may
request in order to (i) perfect and protect the security interest purported to be created hereby;
(ii) enable the Collateral Agent to exercise and enforce its rights and remedies hereunder in
respect of the Collateral; or (iii) otherwise effect the purposes of this Agreement, including,
without limitation: (A) marking conspicuously all Chattel Paper, and each License and, at the
request of the Collateral Agent, each of its Records pertaining to the Collateral with a legend, in
form and substance satisfactory to the Collateral Agent, indicating that such Chattel Paper,
License or Collateral is subject to the security interest created hereby, (B) if any Account shall
be evidenced by Promissory Notes or other Instruments or Chattel Paper, delivering and pledging to
the Collateral Agent hereunder such Promissory Notes, Instruments or Chattel Paper, duly endorsed
and accompanied by executed instruments of transfer or assignment, all in form and substance
satisfactory to the Collateral Agent, (C) executing and filing (to the extent, if any, that
Grantor’s signature is required thereon) or authenticating the filing of, such financing or
continuation statements, or amendments thereto, as may be necessary or desirable or that the
Collateral Agent may request in order to perfect and preserve the security interest purported to be
created hereby, (D) furnishing to the Collateral Agent from time to time statements and schedules
further identifying and describing the Collateral and such other reports in connection with the
Collateral as the Collateral Agent may reasonably request, all in reasonable detail, (E) if any
Collateral shall be in the possession of a third party, notifying such Person of the Collateral
Agent’s security interest created hereby and obtaining a written acknowledgment from such Person
that such Person holds possession of the Collateral for the benefit of the Collateral Agent, which
such written acknowledgment shall be in form and substance satisfactory to the Collateral Agent,
(F) if at any time after the date hereof, Grantor acquires or holds any Commercial tort claim in
excess of $10,000, promptly notifying the Collateral Agent in a writing signed by Grantor setting
forth a brief description of such Commercial tort claim and granting to the Collateral Agent a
security interest therein and in the proceeds thereof, which writing shall incorporate the
provisions hereof and shall be in form and substance satisfactory to the Collateral Agent,
(G) taking all actions required by law in any relevant Uniform Commercial Code jurisdiction.

-9-

 

          (b) Provisions Concerning the Accounts and the Licenses.

               (i) Grantor shall not, without the prior written consent of the Required Lenders, change (A)
Grantor’s name, identity or organizational structure or (B) its jurisdiction of incorporation or
organization as set forth in Section 4(a) hereto. Grantor shall (x) promptly notify the Collateral
Agent upon obtaining an organizational identification number, if on the date hereof Grantor did not
have such identification number, and (y) keep adequate records concerning the Accounts and Chattel
Paper and permit representatives of the Collateral Agent and any Lender to inspect and make
abstracts from such Records and Chattel Paper.

               (ii) Grantor will, except as otherwise provided in this subsection (b), continue to collect,
at its own expense, all amounts due or to become due under the Accounts. In connection with such
collections, Grantor may take such action as Grantor may deem necessary or advisable to enforce
collection or performance of the Accounts; provided, however, that the Collateral
Agent shall have the right at any time, upon the occurrence and during the continuance of an Event
of Default, to notify the Account Debtors or obligors under any Accounts of the assignment of such
Accounts to the Collateral Agent and to direct such Account Debtors or obligors to make payment of
all amounts due or to become due to Grantor thereunder directly to the Collateral Agent or its
designated agent and, upon such notification and at the expense of Grantor and to the extent
permitted by law, to enforce collection of any such Accounts and to adjust, settle or compromise
the amount or payment thereof, in the same manner and to the same extent as Grantor might have
done. After receipt by Grantor of a notice from the Collateral Agent that the Collateral Agent has
notified, intends to notify, or has enforced or intends to enforce Grantor’s rights against the
Account Debtors or obligors under any Accounts as referred to in the proviso to the immediately
preceding sentence, (A) all amounts and proceeds (including Instruments) received by Grantor in
respect of the Accounts shall be received in trust for the benefit of the Collateral Agent
hereunder, shall be segregated from other funds of Grantor and shall be forthwith paid over to the
Collateral Agent or its designated agent in the same form as so received (with any necessary
endorsement) to be held as cash collateral and applied as specified in Section 7(b) hereof, and (B)
Grantor will not adjust, settle or compromise the amount or payment of any Account or release
wholly or partly any Account Debtor or obligor thereof or allow any credit or discount thereon,
except in the ordinary course of business. In addition, upon the occurrence and during the
continuance of an Event of Default, the Collateral Agent may (in its sole and absolute discretion)
direct any or all of the banks and financial institutions with which Grantor either maintains a
Deposit Account or a lockbox or deposits the proceeds of any Accounts to send immediately to the
Collateral Agent or its designated agent by wire transfer (to such account as the Collateral Agent
shall specify, or in such other manner as the Collateral Agent shall direct) all or a portion of
such securities, cash, investments and other items held by such institution. Any such securities,
cash, investments and other items so received by the Collateral Agent or its designated agent shall
(in the sole and absolute discretion of the Collateral Agent) be held as additional Collateral for
the Obligations or distributed in accordance with Section 7 hereof.

          (c) Intellectual Property.

               (i) Notwithstanding anything herein to the contrary, upon the occurrence and during the
continuance of an Event of Default, Grantor may not abandon or

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otherwise permit any Intellectual Property to become invalid without the prior written consent
of the Collateral Agent, and if any Intellectual Property is infringed, misappropriated, diluted or
otherwise violated in any material respect by a third party, Grantor will take such action as the
Required Lenders or the Collateral Agent shall deem appropriate under the circumstances to protect
such Intellectual Property.

               (ii) In no event shall Grantor, either itself or through any agent, employee, licensee or
designee, file an application for the registration of any Trademark or Copyright or the issuance of
any Patent with the United States Patent and Trademark Office or the United States Copyright
Office, as applicable, or in any similar office or agency of the United States or any country or
any political subdivision thereof unless it gives the Collateral Agent prior written notice
thereof. Upon request of the Collateral Agent, Grantor shall execute, authenticate and deliver any
and all assignments, agreements, instruments, documents and papers as the Collateral Agent may
reasonably request to evidence the Collateral Agent’s security interest hereunder in such
Intellectual Property and the General Intangibles of Grantor relating thereto or represented
thereby, and Grantor hereby appoints the Collateral Agent its attorney-in-fact to execute and/or
authenticate and file all such writings for the foregoing purposes, all acts of such attorney being
hereby ratified and confirmed, and such power (being coupled with an interest) shall be irrevocable
until date on which all of the Obligations have been indefeasibly paid in full in cash after the
termination of the Loan Documents.

          (d) Deposit, Commodities and Securities Accounts. Without the prior written consent
of the Required Lenders, Grantor shall not make or maintain any Deposit Account, Commodity Account
or Securities Account except for the accounts set forth in Schedule IV hereto.

          (e) Control. Grantor hereby agrees to take any or all action that may be necessary or
that the Collateral Agent may reasonably request in order for the Collateral Agent to obtain
control in accordance with Sections 9-104, 9-105, 9-106, and 9-107 of the Code with respect to the
following Collateral: (i) Deposit Accounts, (ii) Electronic Chattel Paper, (iii) Investment
Property and (iv) Letter-of-Credit Rights. Grantor hereby acknowledges and agrees that any agent
or designee of the Collateral Agent shall be deemed to be a “secured party” with respect to the
collateral under the control of such agent or designee for all purposes. Notwithstanding anything
to the contrary contained in this Agreement or any other Loan Document, unless otherwise instructed
by the Collateral Agent or the Required Lenders, Grantor shall not be required to obtain a control
agreement for any Deposit Account which does not have a balance at any time greater than $50,000.

          SECTION 6. Additional Provisions Concerning the Collateral.

          (a) Grantor hereby (i) authorizes the Collateral Agent at any time and from time to time to
file, one or more financing or continuation statements and amendments thereto that describe the
Collateral as “all assets” or words of similar effect and that contain any other information
required by Part 5 of Article 9 of the Code for the sufficiency or filing office acceptance of any
financing statement, continuation statement or amendment, including, without limitation, whether
Grantor is an organization, the type of organization and any organization number issued to Grantor
and (ii) ratifies such authorization to the extent that the Collateral

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Agent has filed any such financing statements, continuation statements, or amendments thereto,
prior to the date hereof. A photocopy or other reproduction of this Agreement or any financing
statement covering the Collateral or any part thereof shall be sufficient as a financing statement
where permitted by law.

          (b) Grantor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact and
proxy, with full authority in the place and stead of Grantor and in the name of Grantor or
otherwise, from time to time in the Collateral Agent’s discretion or at the direction of the
Required Lenders during the existence of an Event of Default, to take any action and to execute any
instrument which the Collateral Agent or the Required Lenders may deem necessary or advisable to
accomplish the purposes of this Agreement (subject to the rights of Grantor under Section 5
hereof), including, without limitation, (i) to obtain and adjust insurance required to be paid to
the Collateral Agent pursuant to Section 7.01(g) of the Credit Agreement, (ii) to ask, demand,
collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and
to become due under or in respect of any Collateral, (iii) to receive, endorse, and collect any
drafts or other instruments, documents and chattel paper in connection with clause (i) or (ii)
above, (iv) to file any claims or take any action or institute any proceedings which the Collateral
Agent or the Required Lenders may deem necessary or desirable for the collection of any Collateral
or otherwise to enforce the rights of the Agents and the Lenders with respect to any Collateral,
and (v) to execute assignments, licenses and other documents to enforce the rights of the Agents
and the Lenders with respect to any Collateral. This power is coupled with an interest and is
irrevocable until Termination.

          (c) If Grantor fails to perform any agreement contained herein, the Collateral Agent may
itself perform, or cause performance of, such agreement or obligation, in the name of Grantor or
the Collateral Agent, and the expenses of the Collateral Agent incurred in connection therewith
shall be payable by Grantor pursuant to Section 8 hereof and shall be secured by the Collateral.

          (d) The powers conferred on the Collateral Agent hereunder are solely to protect its interest
in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for
the safe custody of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to the
taking of any necessary steps to preserve rights against prior parties or any other rights
pertaining to any Collateral.

          (e) Anything herein to the contrary notwithstanding (i)  Grantor shall remain liable under the
Licenses and otherwise with respect to any of the Collateral to the extent set forth therein to
perform all of its obligations thereunder to the same extent as if this Agreement had not been
executed, (ii) the exercise by the Collateral Agent of any of its rights hereunder shall not
release Grantor from any of its obligations under the Licenses or otherwise in respect of the
Collateral, and (iii) the Collateral Agent shall not have any obligation or liability by reason of
this Agreement under the Licenses or with respect to any of the other Collateral, nor shall the
Collateral Agent be obligated to perform any of the obligations or duties of Grantor thereunder or
to take any action to collect or enforce any claim for payment assigned hereunder.

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          SECTION 7. Remedies Upon Default. If any Event of Default shall have occurred and be
continuing:

          (a) The Collateral Agent may exercise in respect of the Collateral, in addition to any other
rights and remedies provided for herein or otherwise available to it, all of the rights and
remedies of a secured party upon default under the Code (whether or not the Code applies to the
affected Collateral), and also may (i) take absolute control of the Collateral, including, without
limitation, transfer into the Collateral Agent’s name or into the name of its nominee or nominees
(to the extent the Collateral Agent has not theretofore done so) and thereafter receive, for the
benefit of the Collateral Agent and the Lenders, all payments made thereon, give all consents,
waivers and ratifications in respect thereof and otherwise act with respect thereto as though it
were the outright owner thereof, (ii) require Grantor to, and Grantor hereby agrees that it will at
its expense and upon request of the Collateral Agent forthwith, assemble all or part of the
Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a
place or places to be designated by the Collateral Agent that is reasonably convenient to both
parties, and the Collateral Agent may enter into and occupy any premises owned or leased by Grantor
where the Collateral or any part thereof is located or assembled for a reasonable period in order
to effectuate the Collateral Agent’s rights and remedies hereunder or under law, without obligation
to Grantor in respect of such occupation, and (iii) without notice except as specified below and
without any obligation to prepare or process the Collateral for sale, (A) sell the Collateral or
any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s
offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and
upon such other terms as the Collateral Agent may deem commercially reasonable and/or (B) lease,
license or dispose of the Collateral or any part thereof upon such terms as the Collateral Agent
may deem commercially reasonable. Grantor agrees that, to the extent notice of sale or any other
disposition of the Collateral shall be required by law, at least ten (10) days’ notice to Grantor
of the time and place of any public sale or the time after which any private sale or other
disposition of the Collateral is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale or other disposition of Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn any public or
private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned. Grantor
hereby waives any claims against the Agents and the Lenders arising by reason of the fact that the
price at which the Collateral may have been sold at a private sale was less than the price which
might have been obtained at a public sale or was less than the aggregate amount of the Obligations,
even if the Collateral Agent accepts the first offer received and does not offer the Collateral to
more than one offeree, and waives all rights that Grantor may have to require that all or any part
of the Collateral be marshaled upon any sale (public or private) thereof. Grantor hereby
acknowledges that (I) any such sale of the Collateral by the Collateral Agent shall be made without
warranty, (II) the Collateral Agent may specifically disclaim any warranties of title, possession,
quiet enjoyment or the like, and (III) such actions set forth in clauses (I) and (II) above shall
not adversely affect the commercial reasonableness of any such sale of the Collateral. In addition
to the foregoing, (x) upon written notice to Grantor from the Collateral Agent, Grantor shall cease
any use of the Intellectual Property or any trademark, patent or copyright similar thereto for any
purpose described in such notice; (y) the Collateral Agent may, at any time and from time to time,
upon ten (10) days’ prior notice to Grantor, license, whether general, special or otherwise, and
whether on an exclusive or non-exclusive

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basis, any of the Intellectual Property, throughout the universe for such term or terms, on
such conditions, and in such manner, as the Collateral Agent shall in its sole discretion
determine; and (z) the Collateral Agent may, at any time, pursuant to the authority granted in
Section 6 hereof (such authority being effective upon the occurrence and during the continuance of
an Event of Default), execute and deliver on behalf of Grantor, one or more instruments of
assignment of the Intellectual Property (or any application or registration thereof), in form
suitable for filing, recording or registration in any country.

          (b) Any cash held by the Collateral Agent (or its agents or desingee) as Collateral and all
Cash Proceeds received by the Collateral Agent in respect of any sale of or collection from, or
other realization upon, all or any part of the Collateral may, in the discretion of the Required
Lenders, be held by the Collateral Agent as collateral for, and/or then or at any time thereafter
applied (after payment of any amounts payable to the Collateral Agent pursuant to Section 8 hereof)
in whole or in part by the Collateral Agent against, all or any part of the Obligations in such
order as the Required Lenders shall elect. Any surplus of such cash or Cash Proceeds held by the
Collateral Agent and remaining after the date on which all of the Obligations have been
indefeasibly paid in full in cash after the termination of the Loan Documents shall be paid over to
whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction
shall direct.

          (c) In the event that the proceeds of any such sale, collection or realization are
insufficient to pay all amounts to which the Agents and the Lenders are legally entitled, Grantor
shall be liable for the deficiency, together with interest thereon at the highest rate specified in
any Loan Document for interest on overdue principal thereof or such other rate as shall be fixed by
applicable law, together with the costs of collection and the reasonable fees, costs, expenses and
other client charges of any attorneys employed by the Collateral Agent to collect such deficiency.

          (d) Grantor hereby acknowledges that if the Collateral Agent complies with any applicable
state, provincial or federal law requirements in connection with a disposition of the Collateral,
such compliance will not adversely affect the commercial reasonableness of any sale or other
disposition of the Collateral.

          (e) The Collateral Agent shall not be required to marshal any present or future collateral
security (including, but not limited to, this Agreement and the Collateral) for, or other
assurances of payment of, the Obligations or any of them or to resort to such collateral security
or other assurances of payment in any particular order, and all of the Collateral Agent’s rights
hereunder and in respect of such collateral security and other assurances of payment shall be
cumulative and in addition to all other rights, however existing or arising. To the extent that
Grantor lawfully may, Grantor hereby agrees that it will not invoke any law relating to the
marshalling of collateral which might cause delay in or impede the enforcement of the Collateral
Agent’s rights under this Agreement or under any other instrument creating or evidencing any of the
Obligations or under which any of the Obligations is outstanding or by which any of the Obligations
is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may,
Grantor hereby irrevocably waives the benefits of all such laws.

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          SECTION 8. Indemnity and Expenses.

          (a) Grantor agrees to defend, protect, indemnify and hold harmless each Indemnified Party from
and against any and all claims, damages, losses, liabilities, obligations, penalties, fees,
reasonable costs and expenses (including, without limitation, reasonable legal fees, costs,
expenses and disbursements incurred by such Indemnified Parties) to the extent that they arise out
of or otherwise result from this Agreement (including, without limitation, enforcement of this
Agreement), except claims, losses or liabilities resulting solely and directly from such
Indemnified Party’s gross negligence, willful misconduct or bad faith, as determined by a final
judgment of a court of competent jurisdiction.

          (b) Grantor agrees to pay to the Collateral Agent upon demand the amount of any and all costs
and expenses, including the reasonable fees, costs, expenses and disbursements of counsel for the
Collateral Agent and of any experts and agents (including, without limitation, any collateral
trustee which may act as agent of the Collateral Agent), which the Collateral Agent may incur in
connection with (i) the preparation, negotiation, execution, delivery, recordation, administration,
amendment, waiver or other modification or termination of this Agreement, (ii) the custody,
preservation, use or operation of, or the sale of, collection from, or other realization upon, any
Collateral, (iii) the exercise or enforcement of any of the rights of the Collateral Agent
hereunder, or (iv) the failure by Grantor to perform or observe any of the provisions hereof.

          SECTION 9. Notices, Etc.  All notices and other communications provided for hereunder
shall be in writing and shall be mailed, telecopied or delivered, if to Grantor, to Grantor at its
address specified in the Credit Agreement and, if to the Collateral Agent, to it at its address
specified in the Credit Agreement; or, as to any such Person, at such other address as shall be
designated by such Person in a written notice to such other Person complying as to delivery with
the terms of this Section 9. All such notices and other communications shall be effective (a) if
sent by certified mail, return receipt requested, when received or three (3) days after deposited
in the mails, whichever occurs first; (b) if telecopied, when transmitted and confirmation
received; or (c) if delivered, upon delivery.

          SECTION 10. Security Interest Absolute. All rights of the Agents and the Lenders,
all Liens and all obligations of Grantor hereunder shall be absolute and unconditional irrespective
of (a) any lack of validity or enforceability of the Credit Agreement or any other Loan Document,
(b) any change in the time, manner or place of payment of, or in any other term in respect of, all
or any of the Obligations, or any other amendment or waiver of or consent to any departure from the
Credit Agreement or any other Loan Document, (c) any exchange or release of, or non-perfection of
any Lien on any Collateral, or any release or amendment or waiver of or consent to departure from
any guaranty, for all or any of the Obligations, or (d) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, Grantor in respect of the Obligations. All
authorizations and agencies contained herein with respect to any of the Collateral are irrevocable
and powers coupled with an interest.

          SECTION 11. Miscellaneous.

          (a) No amendment of any provision of this Agreement (including any Schedule attached hereto)
shall be effective unless it is in writing and signed by Grantor and the Collateral Agent, and no
waiver of any provision of this Agreement, and no consent to any departure by

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Grantor therefrom, shall be effective unless it is in writing and signed by the Collateral
Agent, and then such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.

          (b) No failure on the part of the Agents or the Lenders to exercise, and no delay in
exercising, any right hereunder or under any other Loan Document shall operate as a waiver thereof;
nor shall any single or partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The rights and remedies of the Agents and the Lenders
provided herein and in the other Loan Documents are cumulative and are in addition to, and not
exclusive of, any rights or remedies provided by law. The rights of the Agents and the Lenders
under any Loan Document against any party thereto are not conditional or contingent on any attempt
by such Person to exercise any of its rights under any other Loan Document against such party or
against any other Person, including but not limited to, Grantor.

          (c) Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without, to the extent permitted by law, invalidating the remaining portions
hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

          (d) This Agreement shall create a continuing security interest in the Collateral and shall (i)
remain in full force and effect until Termination, and (ii) be binding on Grantor and all other
Persons who become bound as debtor to this Agreement in accordance with Section 9-203(d) of the
Code and shall inure, together with all rights and remedies of the Agents and the Lenders
hereunder, to the benefit of the Agents and the Lenders and their respective permitted successors,
transferees and assigns. Without limiting the generality of clause (ii) of the immediately
preceding sentence, without notice to Grantor, the Agents and the Lenders may assign or otherwise
transfer their rights and obligations under this Agreement and any other Loan Document in
accordance with, and subject to the terms and conditions of, the Credit Agreement, to any other
Person and such other Person shall thereupon become vested with all of the benefits in respect
thereof granted to the Agents and the Lenders herein or otherwise. Upon any such assignment or
transfer, all references in this Agreement to any such Agent or any such Lender shall mean the
assignee of such Agent or such Lender. None of the rights or obligations of Grantor hereunder may
be assigned or otherwise transferred without the prior written consent of the Agents and the
Lenders, and any such assignment or transfer without the Agents’ and the Lenders’ prior written
consent shall be null and void.

          (e) THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICTS OF LAW PRINCIPLES THAT WOULD DESIGNATE
THE LAW OF ANOTHER JURISDICTION, EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO
THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE EFFECT OF PERFECTION OR
NON-PERFECTION OF THE SECURITY INTEREST CREATED HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY
PARTICULAR COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

-16-

 

          (f) ANY LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY DOCUMENT
RELATED THERETO MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF
MANHATTAN, THE COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND
THE APPELLATE COURTS OF ANY OF THEM, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, GRANTOR
HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE
LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT
MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION, SUIT OR PROCEEDING IN SUCH RESPECTIVE
JURISDICTIONS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY THE AFORESAID COURTS.

          (g) GRANTOR (AND BY ITS ACCEPTANCE OF THE BENEFITS OF THIS AGREEMENT, THE COLLATERAL AGENT)
WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR OTHER ACTION OF THE PARTIES HERETO.

          (h) Grantor hereby irrevocably consents to the service of process of the aforesaid courts in
any such action, suit or proceeding by the mailing of copies thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to Grantor at its address
provided in Section 11.01 of the Credit Agreement, such service to become effective ten (10) days
after such mailing.

          (i) Nothing contained herein shall affect the right of the Collateral Agent to serve process
in any other manner permitted by law or commence legal proceedings or otherwise proceed against
Grantor or any property of Grantor in any other jurisdiction.

          (j) Grantor irrevocably and unconditionally waives any right it may have to claim or recover
in any legal action, suit or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

          (k) Section headings herein are included for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

          (l) This Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an original, but all of which
taken together constitute one and the same Agreement. Delivery of an executed

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counterpart of this Agreement by facsimile or electronic mail shall be equally effective as
delivery of an original executed counterpart.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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          IN WITNESS WHEREOF, Grantor has caused this Agreement to be executed and delivered by its
officer thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 
	 	 	GRANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	IDLEAIRE TECHNOLOGIES CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Exh. A-4

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