Document:

EX-10.1

EXHIBIT 10.1

Amended and Restated

Loan and Security Agreement

between

Martek Biosciences Corporation,

A Delaware Corporation,

as “Borrower”

and

Manufacturers And Traders Trust Company,

as “Administrative Agent” and as “Sole Book Runner”

and

Bank Of America, N.A.,

as “Syndication Agent”

and

SunTrust Bank,

as “Documentation Agent”

and

Manufacturers And Traders Trust Company

AND VARIOUS OTHER FINANCIAL INSTITUTIONS

NOW OR HEREAFTER PARTY HERETO

"As Lenders”

Dated: September 30, 2005

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TABLE OF CONTENTS	 	 	 	 	 	 	 	 
	Page	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 1 - DEFINITIONS1
Section 1.1.
	 	Account Debtor1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.2.	 	Account, Chattel Paper, Document, General Intangibles, Goods, Instrument,
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Letter-Of-Credit Right, Payment Intangible, Promissory Notes, And Software
	 	 	 	 	 	 	 	 	 	 	1	 	 	 	 	 
	Section 1.3.
	 	Adjusted Base Rate.
	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.4.
	 	Adjusted LIBOR Rate.
	 	 	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.5.
	 	Affiliate.  2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.6.
	 	Applicable Percentage.
	 	 	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.7.
	 	Assignee.  3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.8.
	 	Base Rate.  3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.9.
	 	Base Rate Borrowing.
	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.10.
	 	Basis Point.  3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.11.
	 	Borrowing Date.3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.12.
	 	Business Day.  3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.13.
	 	Calculation Date.
	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.14.
	 	Capital Adequacy Requirement.
	 	 	 	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.15.
	 	Capital Expenditures.
	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.16.
	 	Capital Lease Obligations.
	 	 	 	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.17.
	 	Casualty Event.  3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.18.
	 	Change Of Control.
	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.19.
	 	Closing.  4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.20.
	 	Code.  4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.21.
	 	Collateral. 4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.22.
	 	Commitment Amount.
	 	 	4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.23.
	 	Commitment Fee.
	 	 	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.24.
	 	Commitment Percentage.
	 	 	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.25.
	 	Credit Documents.
	 	 	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.26.
	 	Default.  5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.27.
	 	Disposition.  5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.28.
	 	Domestic Subsidiary.
	 	 	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.29.
	 	EBIT.  5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.30.
	 	EBITDA.  5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.31.
	 	Eligible Assignee.
	 	 	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.32.
	 	Employee Benefit Plan.
	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.33.
	 	Environmental Laws.
	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.34.
	 	ERISA.  6
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.35.
	 	ERISA Affiliate.
	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.36.
	 	ERISA Liabilities.
	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.37.
	 	Event Of Default.
	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.38.
	 	Facilities.  6
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.39.
	 	Federal Funds Rate.
	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.40.
	 	Fiscal Quarter.  7
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.41.
	 	Fiscal Year.  7
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.42.
	 	Funded Debt Payments.
	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.43.
	 	Funded Indebtedness.
	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.44.
	 	 	G.A.A.P.  7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.45.
	 	Governmental Authority.
	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.46.
	 	Guaranteed Pension Plan.
	 	 	 	 	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.47.
	 	Guarantors.  7
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.48.
	 	Guaranty Agreements.
	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.49.
	 	Guaranty Indebtedness.
	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.50.
	 	Indebtedness.  8
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.51.
	 	Insolvency Proceedings.
	 	 	8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.52.
	 	Intellectual Property.
	 	 	8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.53.
	 	Interest Coverage Ratio.
	 	 	8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.54.
	 	Interest Expense.
	 	 	9	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.55.
	 	Interest Period.  9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.56.
	 	Interest Rate Hedge.
	 	 	9	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.57.
	 	Inventory.  9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.58.
	 	Laws.  9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.59.
	 	L/C Obligations.	 	 	9	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.60.
	 	Lender Assignment.
	 	 	9	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.61.
	 	Lenders.  9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.62.
	 	Letter Agreement.
	 	 	9	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.63.
	 	Letters Of Credit.
	 	 	9	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.64.
	 	Leverage Ratio.  10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.65.
	 	LIBOR Borrowing.
	 	 	10	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.66.
	 	LIBOR Rate.  10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.67.
	 	Liens.  10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.68.
	 	Loans.  10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.69.
	 	 	M&T.  10	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.70.
	 	Material Adverse Event.
	 	 	10	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.71.
	 	Maturity Date.  10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.72.
	 	Maximum Aggregate Loan Amount. 10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.73.
	 	Minimum Borrowing Amount.
	 	 	 	 	 	 	11	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.74.
	 	Multiemployer Plan.
	 	 	11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.75.
	 	Net Available Proceeds.
	 	 	11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.76.
	 	Net Income.  11
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.77.
	 	Notes.  11
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.78.
	 	Obligations.  11
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.79.
	 	Other Taxes12
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.80.
	 	Permitted Investments.
	 	 	12	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.81.
	 	Permitted Liens.
	 	 	12	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.82.
	 	Person.  12
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.83.
	 	Prepayment Disposition.
	 	 	12	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.84.
	 	Prime Rate.  13
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.85.
	 	Receivables.  13
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.86.
	 	Records. 13
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.87.
	 	Regulated Substance.
	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.88.
	 	Regulatory Change
	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.89.
	 	Release.  13
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.90.
	 	Required Lenders.
	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.91.
	 	Reserve Requirement.
	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.92.
	 	Restricted Payment.
	 	 	14	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.93.
	 	Secured Parties. 14
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.94.
	 	Secured Party Expenses.
	 	 	14	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.95.
	 	Solvent.  14
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.96.
	 	Subsidiary.  14
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.97.
	 	Taxes15
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.98.
	 	Termination Event.
	 	 	15	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 1.99.
	 	Transferee.  15
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 2 - TERMS OF THE LOANS AND LETTERS OF CREDIT15
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.1.
	 	Commitment To Extend Loans
	 	 	 	 	 	 	15	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.1.1.Revolving Loan Promissory Notes
	 	 	 	 	 	 	 	 	 	 	15	 	 	 	 	 	 	 	 	 
	Section 2.1.2.Procedure For Loan Borrowings
	 	 	 	 	 	 	 	 	 	 	16	 	 	 	 	 	 	 	 	 
	Section 2.1.3.Conditions Precedent To Effectiveness Of This Agreement.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	16	 	 	 	 	 
	Section 2.1.4.Conditions Precedent To Each Advance.16
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.1.5.Repayment Of Loans17
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.1.6.Permitted Purposes Of Loans17
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.1.7.Commitment Fees
	 	 	 	 	 	 	17	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.1.8.Permanent Reduction Of Maximum Aggregate Loan Amount
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	17	 	 	 	 	 
	Section 2.1.9.Increase In Maximum Aggregate Loan Amount18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.2.
	 	Interest Terms Applicable To The Loans18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.2.1.Adjusted Base Rate
	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.2.2.Adjusted LIBOR Rate Option
	 	 	 	 	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 
	Section 2.2.3.Calculation Of Interest19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.2.4.Default Interest
	 	 	 	 	 	 	19	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.2.5.Maximum Rate Of Interest19
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.2.6.Late Payment Charges.20
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.3.
	 	Voluntary Prepayments
	 	 	20	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.4.
	 	Mandatory Prepayments.
	 	 	20	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.5.
	 	Letters Of Credit.
	 	 	20	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.5.1Procedures For Issuance Of Letters Of Credit21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.5.2.Commissions And Charges21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.5.3.Agreement Of Lenders To Purchase Proportionate Share Of Letters
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Of Credit
	 	 	21	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.5.4.Reimbursement Obligations Of The Borrower21
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.5.5.Borrower’s Reimbursement Obligations Are Absolute22
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.6.
	 	Pro Rata Treatment And Payments
	 	 	 	 	 	 	22	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.6.1.Distribution Of Payments To Lenders
	 	 	 	 	 	 	 	 	 	 	22	 	 	 	 	 	 	 	 	 
	Section 2.6.2.Funding Of Loans
	 	 	 	 	 	 	22	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.6.3.Ratable Sharing
	 	 	 	 	 	 	22	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.7.
	 	Application Of Payments
	 	 	22	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.8.
	 	Increased Costs And Reduced Return23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.8.1.Yield Protection.
	 	 	 	 	 	 	23	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.8.2.Changes In Capital Adequacy Requirements.23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.8.3.Compensation To Lenders.23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.9.
	 	Taxes23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.9.1.No Deductions For Taxes.23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.9.2.Adjustments For Taxes; Obligation To Pay Taxes.23
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.9.3.Indemnification.
	 	 	 	 	 	 	24	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.9.4.Receipts.
	 	 	 	 	 	 	24	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.9.5.Foreign Lenders.
	 	 	 	 	 	 	24	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.9.6.Delivery Of Forms And Certificates.
	 	 	 	 	 	 	 	 	 	 	24	 	 	 	 	 	 	 	 	 
	Section 2.9.7.Survival After Repayment24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.10.
	 	Payments To Administrative Agent24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.11.
	 	Up-Front Fee24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.12.
	 	Payments.  25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.13.
	 	Advancements.  25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 3 - SECURITY FOR THE OBLIGATIONS25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.1.
	 	Grant Of Security Interests.
	 	 	 	 	 	 	25	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.2.
	 	Proceeds And Products.
	 	 	25	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.3.
	 	Priority Of Security Interests.
	 	 	 	 	 	 	25	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.4.
	 	Future Advances.
	 	 	25	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.5.
	 	Lock Box.  26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.6.	 	Collection Of Receivables By Administrative Agent. 26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.7.
	 	Maintenance Of Principal Accounts.26
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.8.
	 	Guaranty Agreements.
	 	 	26	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.9.
	 	Stock Pledge Agreement.
	 	 	 	 	 	 	27	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.10.
	 	Further Assurances.
	 	 	27	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 4 - REPRESENTATIONS AND WARRANTIES27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.1.
	 	Accuracy Of Information.
	 	 	 	 	 	 	27	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.2.
	 	No Litigation.  27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.3.
	 	Liens.  27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.4.
	 	Authority; Approvals And Consents.27
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.4.1.Authority.
	 	 	 	 	 	 	27	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.4.2.Approvals.
	 	 	 	 	 	 	 	 	 	 	27	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.4.3.Consents.
	 	 	 	 	 	 	28	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.5.
	 	Binding Effect Of Documents, Etc.  28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.6.
	 	No Events Of Default.
	 	 	28	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.7.
	 	Guaranty Agreements.
	 	 	28	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.8.
	 	Taxes.  28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.9.
	 	Compliance With Laws.
	 	 	28	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.10.
	 	Chief Places Of Business, Etc.
	 	 	 	 	 	 	28	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.11.
	 	Location Of Inventory.
	 	 	28	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.12.
	 	Subsidiaries. 28
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.13.
	 	No Labor Agreements.
	 	 	28	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.14.
	 	Approvals. 29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.15.
	 	Financial Statements.
	 	 	29	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.16.
	 	Solvency.  29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.17.
	 	Fair Labor Standards Act.
	 	 	 	 	 	 	29	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.18.
	 	Employee Benefit Plans.
	 	 	29	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.18.1.Compliance.
	 	 	 	 	 	 	 	 	 	 	29	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.18.2.Absence Of Termination Event.
	 	 	 	 	 	 	 	 	 	 	29	 	 	 	 	 	 	 	 	 
	Section 4.18.3.Actuarial Value.
	 	 	 	 	 	 	29	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.18.4.No Withdrawal Liability.29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.19.
	 	Environmental Conditions.
	 	 	 	 	 	 	29	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.19.1.Existence Of Permits. 29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.19.2.Compliance With Permits. 29
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.19.3.No Litigation.
	 	 	 	 	 	 	30	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.19.4.No Releases.
	 	 	 	 	 	 	30	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.19.5.Transportation.
	 	 	 	 	 	 	30	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.19.6.No Violation Notices. 30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.19.7.No Notice Of Violations. 30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.20.
	 	Investment Company Act.
	 	 	 	 	 	 	30	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.21.
	 	Public Utility Holding Company Act.30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 5 - AFFIRMATIVE COVENANTS
	 	 	 	 	 	 	30	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.1.
	 	Payment And Performance.
	 	 	 	 	 	 	30	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.2.
	 	Insurance.  30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.3.
	 	Books And Records.
	 	 	31	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.4.
	 	Collection Of Accounts; Sale Of Inventory.
	 	 	 	 	 	 	 	 	 	 	31	 	 	 	 	 	 	 	 	 
	Section 5.5.
	 	Notice Of Litigation And Proceedings.  31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.6.
	 	Payment Of Liabilities To Third Persons.  31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.7.
	 	Notice Of Change Of Business Location. 31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.8.
	 	Payment Of Taxes.
	 	 	31	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.9.
	 	Inspections Of Records.
	 	 	32	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.10.
	 	Documentation Of Collateral.
	 	 	 	 	 	 	32	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.
	 	Reporting Requirements.
	 	 	32	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.1.Inventory Reports.
	 	 	 	 	 	 	32	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.2.Receivables And Accounts Payable Reports. 32
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.3.Quarterly Financial Statements.
	 	 	 	 	 	 	 	 	 	 	32	 	 	 	 	 	 	 	 	 
	Section 5.11.4.Annual Financial Statements.
	 	 	 	 	 	 	 	 	 	 	32	 	 	 	 	 	 	 	 	 
	Section 5.11.5.SEC And Other Filings.33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.6.Management Letters. 33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.7.Quarterly Officer’s Certificates.
	 	 	 	 	 	 	 	 	 	 	33	 	 	 	 	 	 	 	 	 
	Section 5.11.8.Reports To Other Creditors. 33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.9.Defaults.
	 	 	 	 	 	 	33	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.10.Management Changes. 33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.11.11.General Information.33
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.12.	 	Employee Benefit Plans And Guaranteed Pension Plans. 34
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.13.
	 	Compliance With Laws.
	 	 	34	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 6 - NEGATIVE COVENANTS
	 	 	35	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.1.
	 	No Change Of Name, Merger, Etc.  35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.2.
	 	Dispositions.  35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.3.
	 	No Encumbrance Of Assets.
	 	 	 	 	 	 	35	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.4.
	 	No Indebtedness.
	 	 	35	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.5.
	 	Restricted Payments.
	 	 	35	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.6.
	 	Transactions With Affiliates.
	 	 	 	 	 	 	35	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.7.
	 	Loans, Investments And Sale-Leasebacks.  35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.8.
	 	No Assignment.
	 	 	35	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.9.
	 	No Alteration Of Line Of Business.  35
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.10.
	 	Unpermitted Uses Of Loan Proceeds.  36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.11.
	 	Changes In Fiscal Year.
	 	 	36	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.12.
	 	Subsidiaries.  36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.13.
	 	Leverage Ratio.  36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.14.
	 	Interest  Coverage Ratio.
	 	 	 	 	 	 	36	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 7 - EVENTS OF DEFAULT
	 	 	36	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.1.
	 	Failure To Pay. 36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.2.
	 	Violation Of Covenants.
	 	 	36	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.3.
	 	Representation Or Warranty.
	 	 	 	 	 	 	36	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.4.
	 	Default Under Credit Documents.  36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.5.
	 	Cross-Default.  36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.6.
	 	Judgments. 36
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.7.
	 	Levy By Judgment Or Lien Creditor.  37
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.8.
	 	Failure To Pay Liabilities.
	 	 	 	 	 	 	37	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.9.
	 	Involuntary Insolvency Proceedings. 37
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.10.
	 	Voluntary Insolvency Proceedings. 37
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.11.	 	Insolvency Proceedings Pertaining To Subsidiaries. 37
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.12.
	 	Material Adverse Event.
	 	 	37	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.13.
	 	Default By Guarantors.
	 	 	37	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.14.
	 	Attempt To Terminate Guaranties.  37
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.15.
	 	ERISA.  37
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.16.
	 	Indictment Of Borrower Or Guarantors. 37
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.17.
	 	Injunction.  37
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.18.
	 	Change Of Control.
	 	 	38	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 8 - RIGHTS AND REMEDIES ON THE OCCURRENCE OF AN EVENT OF DEFAULT
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	38	 
	Section 8.1.
	 	Secured Parties' Specific Rights And Remedies.
	 	 	 	 	 	 	 	 	 	 	38	 	 	 	 	 	 	 	 	 
	Section 8.2.
	 	Automatic Acceleration.
	 	 	38	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 8.3.
	 	Sale Of Collateral.
	 	 	38	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 8.4.
	 	Letters Of Credit.
	 	 	38	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 8.5.
	 	Remedies Cumulative.
	 	 	39	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 9 - THE ADMINISTRATIVE AGENT
	 	 	 	 	 	 	39	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.1.
	 	Appointment39
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.2.	 	Administrative Agent May Hold Collateral For Lenders And Others39
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.3.
	 	Delegation Of Duties
	 	 	39	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.4.
	 	Liability39
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.5.
	 	Reliance By The Administrative Agent40
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.6.
	 	Notice Of Default
	 	 	40	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.7.	 	Non-Reliance On The Administrative Agent And Other Lenders40
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.8.
	 	Indemnification41
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.9.	 	No Independent Actions By Lenders With Respect To Collateral Or Remedies
	 	 	 	 	 	 	 	 	 	 	41	 	 	 	 	 
	Section 9.10.	 	The Administrative Agent In Its Individual Capacity41
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.11.	 	Removal Or Resignation Of The Administrative Agent; Successor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Administrative Agent.
	 	 	41	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.12.
	 	Benefits Of Article 9
	 	 	42	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.13.
	 	Syndication And Documentation Agent42
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE 10 - GENERAL CONDITIONS AND TERMS42
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.1.
	 	Successors And Assigns; Participations42
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.1.1.Benefit Of Agreement42
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.1.2.Assignment Of Loans By Lenders
	 	 	 	 	 	 	 	 	 	 	42	 	 	 	 	 	 	 	 	 
	Section 10.1.3.Rights And Duties Upon Assignment
	 	 	 	 	 	 	 	 	 	 	42	 	 	 	 	 	 	 	 	 
	Section 10.1.4.Register42
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.1.5.Issuance Of New Notes43
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.1.6.Participations
	 	 	 	 	 	 	43	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.1.7.Disclosure Of Information; Confidentiality43
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.1.8.Certain Pledges Or Assignments
	 	 	 	 	 	 	 	 	 	 	44	 	 	 	 	 	 	 	 	 
	Section 10.2.
	 	Sharing Of Collections
	 	 	44	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.3.
	 	Reversal Of Payments; Revival Of Obligations
	 	 	 	 	 	 	 	 	 	 	44	 	 	 	 	 	 	 	 	 
	Section 10.4.
	 	Amendments, Waivers And Consents44
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.5.
	 	Set Off45
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.6.
	 	Secured Party Expenses
	 	 	45	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.7.
	 	Obligations Are Unconditional.
	 	 	 	 	 	 	45	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.8.
	 	Indemnity.  45
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.9.
	 	Incorporation.  45
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.10.
	 	Waivers.  45
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.11.
	 	Continuing Obligation Of Borrower.  46
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.12.
	 	Choice Of Law.  46
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.13.	 	Submission To Jurisdiction; Venue; Actions Against Secured Parties.
	 	 	 	 	 	 	 	 	 	 	46	 	 	 	 	 
	Section 10.13.1.Jurisdiction.
	 	 	 	 	 	 	46	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.13.2.Venue. 46
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.13.3.Waiver Of Objections To Venue.
	 	 	 	 	 	 	 	 	 	 	46	 	 	 	 	 	 	 	 	 
	Section 10.14.
	 	Notices.  46
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.15.
	 	Miscellaneous Provisions.
	 	 	 	 	 	 	47	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.16.
	 	USA Patriot Act Notice.
	 	 	48	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.17.
	 	Waiver Of Trial By Jury.
	 	 	48	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Exhibits

	 	

	 

	 	

	Exhibit 2.1.1

Exhibit 3.8(a)

Exhibit 3.8(b)

Exhibit 3.8(c)

Exhibit 3.9

Exhibit 10.1.2.(c)

	 	Form of Revolving Loan Promissory Note

Form of Guaranty Agreement

Form of Security Agreement from Guarantors

Form of Financing Statement from Guarantors

Form of Stock Pledge Agreement

Form of Lender Assignment And Acceptance
	 
	 	 
	Schedules

	 	

	 

	 	

	Schedule 1.81

Schedule 4.2

Schedule 4.10

Schedule 4.11

Schedule 4.12

Schedule 4.15

Schedule 4.18.4

Schedule 4.19

Schedule 6.4

	 	Permitted Liens

Litigation

Chief Place Of Business

Location Of Inventory

Subsidiaries

Liabilities And Obligations Not Disclosed In Financial Statements

ERISA Withdrawal Liabilities

Environmental Conditions

Permitted Indebtedness

1

AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (“AGREEMENT”) is dated as of
September 30, 2005, by and between MARTEK BIOSCIENCES CORPORATION, a Delaware corporation
(“BORROWER”); each of the “LENDERS” (as defined below); MANUFACTURERS AND TRADERS TRUST COMPANY, as
Administrative Agent for the LENDERS (in such capacity, together with its successors in such
capacity, the “ADMINISTRATIVE AGENT”), and as Sole Book Runner; BANK OF AMERICA, N.A., as
Syndication Agent (in such capacity, together with its successors in such capacity, the
“SYNDICATION AGENT”); and SUNTRUST BANK, as Documentation Agent (in such capacity, together with
its successors in such capacity, the “DOCUMENTATION AGENT”).

RECITALS

The BORROWER has requested that the LENDERS agree to amend and modify the terms of a Loan And
Security Agreement dated January 26, 2004, as previously amended by a First Modification Agreement
dated April 30, 2004 (“LOAN AGREEMENT”). The BORROWER and the LENDERS have entered into a Second
Modification Agreement (“MODIFICATION AGREEMENT”) of even date herewith pursuant to which they have
agreed to amend, modify and restate the LOAN AGREEMENT in its entirety. In addition, lending
institutions that are not parties to the LOAN AGREEMENT have entered into this AGREEMENT as
additional LENDERS. No novation is intended to the LOAN AGREEMENT.

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

As used in this AGREEMENT, the terms set forth in this Article 1 have the meanings set forth
below, unless the specific context of this AGREEMENT clearly requires a different meaning. Terms
defined in this Article 1 or elsewhere in this AGREEMENT are in all capital letters throughout this
AGREEMENT. The singular use of any defined term includes the plural and the plural use includes
the singular.

Section 1.1. Account Debtor. The term “ACCOUNT DEBTOR” means collectively
each PERSON: (a) to or for whom the BORROWER has provided or has agreed to provide any
goods or services; or (b) which owes the BORROWER any sum of money as a result of assets
sold, leased or licensed or services provided by the BORROWER; or (c) which is the maker
or endorser on any INSTRUMENT payable to the BORROWER or otherwise owes the BORROWER any sum of
money on account of any loan or other payment obligation. With respect to each RECEIVABLE which is
payable by any governmental authority, “ACCOUNT DEBTOR” includes, without limitation, the agency,
instrumentality or official which has the duty of remitting or causing the remittance of the
amounts owing on such ACCOUNT or other RECEIVABLE.

Section 1.2. Account, Chattel Paper, Document, General Intangibles, Goods,
Instrument, Letter-Of-Credit Right, Payment Intangible, Promissory Notes, And Software. The
terms “ACCOUNT,” “CHATTEL PAPER,” “DOCUMENT,” “GENERAL INTANGIBLES,” “GOODS,” “INSTRUMENT,”
“LETTER-OF-CREDIT RIGHT,” “PAYMENT INTANGIBLE,” “PROMISSORY NOTES,” and “SOFTWARE” shall have the
same respective meanings as are given to those terms in the Uniform Commercial Code, as
adopted and in effect in the State of Maryland.

Section 1.3. Adjusted Base Rate. The term “ADJUSTED BASE RATE” means for
any BASE RATE BORROWING that rate of interest equal to the BASE RATE plus the APPLICABLE
PERCENTAGE.

Section 1.4. Adjusted LIBOR Rate. The term “ADJUSTED LIBOR RATE”
means, for any LIBOR BORROWING for any selected INTEREST PERIOD, that rate per annum, rounded
upwards, if necessary, to the nearest one hundredth of one percent (.01%), determined by the
ADMINISTRATIVE AGENT to be equal to the sum of: (a) the quotient obtained by dividing
(i) the LIBOR RATE for such LIBOR BORROWING for such INTEREST PERIOD by (ii) 1.00 minus the
RESERVE REQUIREMENT for such LIBOR BORROWING for such INTEREST PERIOD; plus (b)
the APPLICABLE PERCENTAGE.

Section 1.5. Affiliate. The term “AFFILIATE” means collectively any PERSON:
(a) that directly or indirectly, through one or more intermediaries, controls or is
controlled by, or is under common control with the BORROWER, including, without limitation, the
officers, managers and directors of the BORROWER; (b) that directly or beneficially owns
or holds ten percent (10%) or more of any equity interests in the BORROWER; or (c) ten
percent (10%) or more of whose equity interests are owned directly or controlled by the BORROWER.
As used herein, the term “control” (including, with correlative meanings, the terms “controlled by”
and “under common control with”) shall mean possession, directly or indirectly, of the power to
direct the management or policies of a PERSON, whether through ownership of equity interests, by
contract or otherwise.

Section 1.6. Applicable Percentage. The term “APPLICABLE PERCENTAGE” means
with respect to the LOANS, the COMMITMENT FEES, and the LETTERS OF CREDIT the following percentages
corresponding to the LEVERAGE RATIO in effect as of the most recent CALCULATION DATE:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TIER

LEVEL

	 	LEVERAGE RATIO
	 	APPLICABLE

PERCENTAGE

FOR BASE RATE

BORROWINGS
	 	

APPLICABLE

PERCENTAGE FOR

LIBOR BORROWINGS
	 	

APPLICABLE

PERCENTAGE FOR

LETTERS OF CREDIT
	 	

APPLICABLE

PERCENTAGE FOR

COMMITMENT FEES

	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1

	 	< 1.000
	 	 	0.000	%	 	 	1.000	%	 	 	1.000	%	 	 	0.125	%
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2

	 	1.000 but

<

1.500
	 	

0.000%
	 	

1.125%
	 	

1.125%
	 	

0.125%

	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3

	 	1.500 but

<

2.000
	 	

0.000%
	 	

1.250%
	 	

1.250%
	 	

0.175%

	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4

	 	2.000 but

£

2.500
	 	

0.000%
	 	

1.500%
	 	

1.500%
	 	

0.250%

	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5

	 	> 2.500
	 	 	0.250	%	 	 	1.750	%	 	 	1.750	%	 	 	0.250	%
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

As of the date of this AGREEMENT, APPLICABLE PERCENTAGES shall be based on Tier Level 3.
Commencing for the FISCAL QUARTER ending on July 31, 2005 and continuing thereafter, the APPLICABLE
PERCENTAGES shall be determined and adjusted on each CALCULATION DATE to correspond with the then
current LEVERAGE RATIO as determined in accordance with the quarterly officer’s certificate to be
provided by the BORROWER in accordance with Section 5.11.7 of this AGREEMENT. If the BORROWER
fails to provide such quarterly officer’s certificate for any FISCAL QUARTER as required by and
within the time limitations set forth in Section 5.11.7, the APPLICABLE PERCENTAGES from the
applicable date of such failure shall be based on Tier Level 5 until five (5) BUSINESS DAYS after
an appropriate officer’s certificate is provided, whereupon the appropriate Tier Level and
corresponding APPLICABLE PERCENTAGES shall be determined by the LEVERAGE RATIO evidenced by such
certificate. Except as set forth above, each APPLICABLE PERCENTAGE shall be effective from a
CALCULATION DATE until the next CALCULATION DATE.

Section 1.7. Assignee. The term “ASSIGNEE” means an ELIGIBLE ASSIGNEE who
has acquired an assignment of a LENDER’S interests in a LOAN in accordance with the provisions of
Section 10.1 of this AGREEMENT.

Section 1.8. Base Rate. The term “BASE RATE” means, for any day, the
rate per annum equal to the higher of: (a) the FEDERAL FUNDS RATE for such day
plus fifty (50) BASIS POINTS; or (b) the PRIME RATE for such day. Any change in
the BASE RATE due to a change in the PRIME RATE or the FEDERAL FUNDS RATE shall be effective on the
effective date of such change in the PRIME RATE or the FEDERAL FUNDS RATE.

Section 1.9. Base Rate Borrowing. The term “BASE RATE BORROWING” means each
amount of the unpaid principal balance of a LOAN which in accordance with the terms of the
AGREEMENT accrues interest at the BASE RATE.

Section 1.10. Basis Point. The term “BASIS POINT” means one one-hundredth
(.01) of one percent.

Section 1.11. Borrowing Date. The term “BORROWING DATE” means any BUSINESS
DAY specified in a notice issued by the BORROWER in accordance with Section 2.1.2 of this AGREEMENT
as a date on which the BORROWER has requested that the LENDERS advance the proceeds of the LOANS to
or for the account of the BORROWER.

Section 1.12. Business Day. The term “BUSINESS DAY” means any day other
than a Saturday, Sunday, or other day on which commercial banking institutions in the States of
Maryland and New York are required to be closed.

Section 1.13. Calculation Date. The term “CALCULATION DATE” means each of
the dates upon which the APPLICABLE PERCENTAGES are to be determined and adjusted, which adjustment
shall be made at the end of each FISCAL QUARTER on the date occurring five (5) BUSINESS DAYS after
the date on which the ADMINISTRATIVE AGENT receives the quarterly officer’s certificate in
accordance with the provisions of Section 5.11.7 of this AGREEMENT, or otherwise as required by the
terms of this AGREEMENT.

Section Capital Adequacy Requirement. The term “CAPITAL ADEQUACY REQUIREMENT” means
any LAW imposing any capital adequacy requirement or any other similar requirement (including but
not limited to the capital adequacy regulations contained in Parts 3, 208 and 225 of Title 12 of
the Code of Federal Regulations, as amended), any change in such LAWS or in the
interpretation or application thereof, and any request or directive regarding capital adequacy
(whether or not having the force of law) from any central bank or government authority.

Section 1.15. Capital Expenditures. The term “CAPITAL EXPENDITURES” means,
for any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities
and including expenditures for CAPITAL LEASE OBLIGATIONS) by the BORROWER during such period that
are required by G.A.A.P. to be included in or reflected by the property, plant, equipment or
similar capital asset accounts on the consolidated balance sheet of the BORROWER and its
SUBSIDIARIES.

Section 1.16. Capital Lease Obligations. The term “CAPITAL LEASE
OBLIGATIONS” means collectively the obligations of any referenced PERSON to pay rent or other
amounts under any lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such PERSON under G.A.A.P., and the amount of such
obligations shall be the capitalized amount thereof determined in accordance with G.A.A.P.

Section 1.17. Casualty Event. The term “CASUALTY EVENT” means any loss of
or damage to, or any condemnation or other taking of, any of the COLLATERAL for which the BORROWER
or its SUBSIDIARIES receive insurance proceeds, or proceeds of a condemnation award or other
compensation.

Section 1.18. Change Of Control. The term “CHANGE OF CONTROL” means
an event or series of events by which: (a) any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “ACT”), but excluding
any employee benefit plan of such person or its SUBSIDIARIES, and any person or entity acting in
its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Act, except that a person or
group shall be deemed to have “beneficial ownership” of all capital stock that such person or group
has the right to acquire (such right, an “OPTION RIGHT”), whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of twenty-five percent
(25%) more of the voting stock of the BORROWER on a fully diluted basis (and taking into account
all such securities that such person or group has the right to acquire pursuant to any option
right) that any such person or group beneficially owns as of the date of CLOSING; (b)
during any period of twenty-four (24) consecutive months, a majority of the members of the board of
directors or other equivalent governing body of the BORROWER ceases to be composed of individuals
(i) who were members of that board or equivalent governing body on the first day of such period,
(ii) whose election or nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of such election or nomination
at least a majority of that board or the nominating committee thereof or equivalent governing body,
or (iii) whose election or nomination to that board or other equivalent governing body was approved
by individuals referred to in clauses (i) and (ii) above constituting at the time of such election
or nomination at least a majority of that board or equivalent governing body (excluding, in the
case of both clause (ii) and clause (iii), any individual whose initial nomination for, or
assumption of office as, a member of that board or equivalent body occurs as a result of an actual
or threatened solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of one or more
directors by or on behalf of the board of directors); or (c) during any period of twelve
(12) consecutive months any two of the three (3) individuals holding the positions of Chief
Executive Officer, Chief Operating Officer, and Chief Financial Officer cease holding such
positions with the BORROWER, and the BORROWER does not replace within one hundred eighty (180) days
either of the preceding individuals that cease holding such positions with the BORROWER with an
individual reasonably acceptable to the REQUIRED LENDERS.

Section 1.19. Closing. The term “CLOSING” means the execution and delivery
of this AGREEMENT, the NOTES, and various other CREDIT DOCUMENTS. The date of CLOSING is the date
written above as the date of this AGREEMENT.

Section 1.20. Code. The term “CODE” means the Internal Revenue Code of
1986, as amended, and all Treasury regulations, revenue rulings, revenue procedures or
announcements issued thereunder.

Section 1.21. Collateral. The term “COLLATERAL” means all of the following
types of assets and personal property of the BORROWER, wherever located, whether now owned or
hereafter acquired by the BORROWER, together with all substitutions therefor, and all replacements
and renewals thereof, and all accessions, additions, and packaging relating thereto: (a)
ACCOUNTS; (b) INVENTORY, including returned, rejected, or repossessed INVENTORY and
rights of reclamation and stoppage in transit with respect to INVENTORY; (c) RECEIVABLES;
(d) all SOFTWARE evidencing or used in the tracking, monitoring, maintenance or
collection of any of the foregoing; (e) all GENERAL INTANGIBLES necessary for the
collection, monitoring or maintenance of RECEIVABLES, or for the sale of the INVENTORY;
(f) all capital stock or other equity or ownership interests of the BORROWER in the
SUBSIDIARIES of the BORROWER; (g) all RECORDS relating to or pertaining to any of the
above listed COLLATERAL; and (h) all proceeds of the foregoing. The definition of
COLLATERAL shall not include any INTELLECTUAL PROPERTY except to the limited extent that the use or
licensing of any INTELLECTUAL PROPERTY is necessary for the liquidation, sale or collection of any
of the COLLATERAL during any continuing EVENT OF DEFAULT. The definition of COLLATERAL shall
include royalties, payments, and payment rights which arise from or with respect to the licensing,
sale or other alienation of INTELLECTUAL PROPERTY.

Section 1.22. Commitment Amount. The term “COMMITMENT AMOUNT” means as to
any LENDER, the maximum aggregate principal amount which such LENDER has agreed to advance and
have at any time outstanding as proceeds of the LOANS, which amount is set forth opposite such
LENDER’S name on the signature pages hereof under the caption “Commitment Amount,” or as set forth
on the most recently executed LENDER ASSIGNMENT executed after the date of CLOSING by such LENDER
whether as assignor or assignee of such LENDER ASSIGNMENT with respect to any LENDER which acquires
an assignment of the LOANS or any portion thereof after the date of CLOSING, as such COMMITMENT
AMOUNT may change in order to reflect any subsequent assignments thereafter of the LOANS or any
portion thereof in accordance with the provisions of Section 10.1 of this AGREEMENT or any
increases in the COMMITMENT AMOUNT of any LENDER pursuant to Section 2.1.9 hereof.

Section 1.23. Commitment Fee. The term “COMMITMENT FEE” has the meaning
given that term in Section 2.1.7 of this AGREEMENT.

Section 1.24. Commitment Percentage. The term “COMMITMENT PERCENTAGE”
means, as to any LENDER, the percentage which is set forth opposite such LENDER’S name on the
signature pages of this AGREEMENT as the “Commitment Percentage”, or as set forth in the most
recently executed LENDER ASSIGNMENT executed after the date of CLOSING by such LENDER whether as
assignor or assignee of such LENDER ASSIGNMENT with respect to any LENDER which acquires an
assignment of the LOANS or any portion thereof after the date of CLOSING, as such percentage may
change in order to reflect any subsequent assignments thereafter of the LOANS or any portion
thereof in accordance with the provisions of Section 10.1 of this AGREEMENT or any increases in the
MAXIMUM AGGREGATE LOAN AMOUNT pursuant to Section 2.1.9. hereof.

Section 1.25. Credit Documents. The term “CREDIT DOCUMENTS” means all
agreements, instruments and documents, including without limitation each document listed as a
“Credit Document” on a Closing Index of even date herewith, together with all other loan agreements
(including without limitation this AGREEMENT), notes (including without limitation the NOTES),
guarantees, subordination agreements, intercreditor agreements, the LETTER AGREEMENT, pledges,
affidavits, powers of attorney, consents, assignments, landlord and mortgage waivers, collateral
assignments, reimbursement agreements, contracts, notices, leases, financing statements, mortgages,
deeds of trust, assignments of rents or contract proceeds, intellectual property security
agreements, pledges, letter of credit applications, reimbursement agreements, INTEREST RATE HEDGES,
and all other written matter, whether heretofore, now or hereafter executed by or on behalf of the
BORROWER or any of the GUARANTORS, in connection with any of the OBLIGATIONS.

Section 1.26. Default. The term “DEFAULT” means any event, occurrence or
omission which, with the giving of notice, the passage of time, or both, would constitute an EVENT
OF DEFAULT.

Section 1.27. Disposition. The term “DISPOSITION” means any sale,
assignment, transfer or other disposition of any property (whether now owned or hereafter acquired)
by the BORROWER or any of its SUBSIDIARIES.

Section 1.28. Domestic Subsidiary. The term “DOMESTIC SUBSIDIARY” means any
SUBSIDIARY of the BORROWER that is organized under the laws of any state or territory of the United
States of America or under the laws of the District of Columbia.

Section 1.29. EBIT. The term “EBIT” means, for any period of computation,
the sum, for the BORROWER and its SUBSIDIARIES (determined on a consolidated basis without
duplication), of the following: (a) NET INCOME for such period; plus
(b) the aggregate INTEREST EXPENSE for such period; plus (c) the
aggregate amount of all income taxes for such period; plus (d) any non-cash
expenses associated with stock compensation and/or stock awards, to the extent such non-cash
expenses have been previously deducted in arriving at EBIT. EBIT shall be measured for the
purposes of this AGREEMENT for the four (4) FISCAL QUARTERS immediately preceding the date of
determination.

Section 1.30. EBITDA. The term “EBITDA” means, for any period of
computation, the sum, for the BORROWER and its SUBSIDIARIES (determined on a consolidated basis
without duplication), of the following: (a) NET INCOME for such period; plus
(b) the aggregate amount of depreciation and amortization and other non-cash charges or
non-cash expenses (to the extent deducted in determining NET INCOME for such period); plus
(c) aggregate INTEREST EXPENSE for such period; plus (d) the aggregate
amount of all income taxes for such period; plus (e) any non-cash expenses
associated with stock compensation and/or stock awards, to the extent such non-cash expenses have
been previously deducted in arriving at EBITDA. EBITDA shall be measured for the purposes of this
AGREEMENT for the four (4) FISCAL QUARTERS immediately preceding the date of determination.

Section 1.31. Eligible Assignee. The term “ELIGIBLE ASSIGNEE” means,
with respect to any assignment of the rights, interest and obligations of any LENDER in accordance
with the provisions of Section 10.1 of this AGREEMENT: (a) a commercial bank organized
under the LAWS of the United States or any state thereof which is a member bank of the Federal
Reserve System; or (b) a finance company, insurance company or other financial
institution which in the ordinary course of business extends credit of the type extended hereunder
by the LENDERS to the BORROWER and that has total assets in excess of One Billion Dollars
($1,000,000,000.00); or (c) a PERSON which is already a LENDER hereunder (whether as an
original party to this AGREEMENT or as the assignee of another LENDER); or (d) the
successor (whether by transfer of assets, merger or otherwise) to all or substantially all of the
commercial lending business of the assigning LENDER; or (e) any other PERSON that has
been approved in writing as an ELIGIBLE ASSIGNEE by the BORROWER and all of the SECURED PARTIES.

Section Employee Benefit Plan. The term “EMPLOYEE BENEFIT PLAN” means an “employee
benefit plan” as defined in Section 3(3) of ERISA.

Section 1.33. Environmental Laws. The term “ENVIRONMENTAL LAWS” means
individually or collectively any applicable local, state or federal LAW, statute, rule, regulation,
order, ordinance, common law, permit or license term or condition, or state superlien or
environmental clean-up or disclosure statutes pertaining to the environment or to environmental
contamination, regulation, management, control, treatment, storage, disposal, containment, removal,
clean-up, reporting, or disclosure, including, but not limited to, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as now or hereafter amended (including, but not
limited to, the Superfund Amendments and Reauthorization Act); the Resource Conservation and
Recovery Act, as now or hereafter amended (including, but not limited to, the Hazardous and Solid
Waste Amendments of 1984); the Toxic Substances Control Act, as now or hereafter amended; the Clean
Water Act, as now or hereafter amended; the Safe Drinking Water Act, as now or hereafter amended;
or the Clean Air Act, as now or hereafter amended.

Section 1.34. ERISA. The term “ERISA” means the Employee Retirement Income
Security Act of 1974 and regulations issued thereunder, as amended from time to time and any
successor statute.

Section 1.35. ERISA Affiliate. The term “ERISA AFFILIATE” means, in
relation to any PERSON, any trade or business (whether or not incorporated) which is a member of a
group of which that PERSON is a member and which is under common control within the meaning of the
regulations promulgated under Section 414 of the CODE.

Section 1.36. ERISA Liabilities. The term “ERISA LIABILITIES” means the
aggregate of all unfunded vested benefits under any employee pension benefit plan, within the
meaning of Section 3(2) of ERISA, of the BORROWER or any ERISA AFFILIATE of the BORROWER under any
plan covered by ERISA that is not a MULTIEMPLOYER PLAN and all potential withdrawal liabilities of
the BORROWER or any ERISA AFFILIATE under all MULTIEMPLOYER PLANS.

Section 1.37. Event Of Default. The term “EVENT OF DEFAULT” means any of
the events set forth in Article 7 of this AGREEMENT, provided that any requirement for the giving
of notice, the lapse of time, or both, or any other expressly stated condition, has been satisfied.

Section 1.38. Facilities. The term “FACILITIES” means all real property and
the improvements thereon used or occupied or leased by the BORROWER or otherwise used at any time
by the BORROWER in the operation of its business or for the manufacture, storage, or location of
any of the COLLATERAL.

Section 1.39. Federal Funds Rate. The term “FEDERAL FUNDS RATE” means, for
any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) determined
(which determination shall be conclusive and binding, absent manifest error) by the ADMINISTRATIVE
AGENT to be equal to the weighted average of the rates on overnight Federal funds transactions with
member banks of the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the BUSINESS DAY next succeeding such day;
provided that: (a) if such day is not a BUSINESS DAY, the FEDERAL FUNDS RATE for
such day shall be such rate on such transactions on the next preceding BUSINESS DAY as so published
on the next succeeding BUSINESS DAY; and (b) if no such rate is so published on such next
succeeding BUSINESS DAY, the FEDERAL FUNDS RATE for such day shall be the average rate charged to
the ADMINISTRATIVE AGENT (in its individual capacity) on such day on such transactions as
determined by the ADMINISTRATIVE AGENT (which determination shall be conclusive and binding, absent
manifest error).

Section 1.40. Fiscal Quarter. The term “FISCAL QUARTER” means each period
of three (3) consecutive months commencing on the first days of each consecutive November,
February, May and August.

Section 1.41. Fiscal Year. The term “FISCAL YEAR” means the fiscal
year of the BORROWER which is the twelve (12) month accounting period commencing November 1 and
ending October 31 of each calendar year, or such other accounting period selected by the BORROWER
after notice to the ADMINISTRATIVE AGENT as required by Section 6.11 of this AGREEMENT.

Section 1.42. Funded Debt Payments. The term “FUNDED DEBT PAYMENTS” means,
as of the end of each FISCAL QUARTER, the sum of all scheduled payments of principal on FUNDED
INDEBTEDNESS of the BORROWER and its SUBSIDIARIES (determined on a consolidated basis without
duplication in accordance with G.A.A.P.) for the applicable FISCAL QUARTER ending on such date
(including the principal component of payments due on CAPITAL LEASES during the applicable period
ending on such date); it being understood that FUNDED DEBT PAYMENTS shall not include voluntary
prepayments of the LOANS or mandatory prepayments of the LOANS required by the terms of this
AGREEMENT.

Section 1.43. Funded Indebtedness. The term “FUNDED INDEBTEDNESS” means,
with respect to any PERSON, without duplication: (a) all INDEBTEDNESS of such PERSON
other than INDEBTEDNESS of the types referred to in clauses (e), (f), (g), (i), (k), (l) and (m) of
the definition of “INDEBTEDNESS” set forth in this AGREEMENT; (b) all INDEBTEDNESS of
another PERSON of the type referred to in clause (a) above secured by (or for which the holder of
such FUNDED INDEBTEDNESS has an existing right, contingent or otherwise, to be secured by) any LIEN
on, or payable out of the proceeds of production from, property owned or acquired by such PERSON,
whether or not the obligations secured thereby have been assumed; (c) all guaranties of
such PERSON with respect to INDEBTEDNESS of the type referred to in clause (a) above of another
PERSON; and (d) INDEBTEDNESS of the type referred to in clause (a) above of any
partnership or unincorporated joint venture in which such PERSON is legally obligated or has a
reasonable expectation of being liable with respect thereto.

Section 1.44. G.A.A.P. The term “G.A.A.P.” means, with respect to any date
of determination, generally accepted accounting principles as used by the Financial Accounting
Standards Board and/or the American Institute of Certified Public Accountants consistently applied
and maintained throughout the periods indicated.

Section 1.45. Governmental Authority. The term “GOVERNMENTAL AUTHORITY”
means any nation or government, any union of nations or governments (including without limitation
the European Union), any state, region, province, or other political subdivision of any nation,
government or union of nations or governments, and any municipality, court or other entity
exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

Section 1.46. Guaranteed Pension Plan. The term “GUARANTEED PENSION PLAN”
means any pension plan maintained by the BORROWER or an ERISA AFFILIATE of the BORROWER, or to
which the BORROWER or an ERISA AFFILIATE contributes, some or all of the benefits under which are
guaranteed by the United States Pension Benefit Guaranty Corporation.

Section 1.47. Guarantors. The term “GUARANTORS” means collectively all
DOMESTIC SUBSIDIARIES of the BORROWER which have executed and delivered a GUARANTY AGREEMENT as
required by Section 3.8 of this AGREEMENT.

Section 1.48. Guaranty Agreements. The term “GUARANTY AGREEMENTS” means the
Guaranty Agreements executed from time to time by the GUARANTORS for the benefit of the SECURED
PARTIES.

Section 1.49. Guaranty Indebtedness. The term “GUARANTY INDEBTEDNESS” means
any obligation, contingent or otherwise, of any referenced PERSON directly or indirectly
guaranteeing any debt or obligation of any other PERSON and, without limiting the generality of the
foregoing, any obligation, direct or indirect, contingent or otherwise, of such PERSON:
(a) to purchase or pay (or advance or supply funds for the purchase or payment of) such
debt or obligation (whether arising by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain
financial statement conditions or otherwise, other than agreements to purchase goods at an arm’s
length price in the ordinary course of business); or (b) entered into for the purpose of
assuring in any other manner the holder of such debt or obligation of the payment thereof or to
protect such holder against loss in respect thereof (in whole or in part). The term GUARANTY
INDEBTEDNESS shall not include endorsements for collection or deposit in the ordinary course of
business.

Section 1.50. Indebtedness. The term “INDEBTEDNESS” means, with
respect to any referenced PERSON, without duplication: (a) all obligations of such
PERSON for borrowed money; (b) all obligations of such PERSON evidenced by bonds,
debentures, notes or similar instruments, or upon which interest payments are customarily made;
(c) all obligations of such PERSON under conditional sale or other title retention
agreements relating to property purchased by such PERSON (other than customary reservations or
retentions of title under agreements with suppliers entered into in the ordinary course of
business); (d) all obligations of such PERSON issued or assumed as the deferred purchase
price of property or services purchased by such PERSON (other than trade debt incurred in the
ordinary course of business and due within six months of the incurrence thereof) which would appear
as liabilities on a balance sheet of such PERSON; (e) all obligations of such PERSON
under take-or-pay or similar arrangements or under commodities agreements; (f) all
indebtedness of others secured by (or for which the holder of such indebtedness has an existing
right, contingent or otherwise, to be secured by) any LIEN on, or payable out of the proceeds of
production from, property owned or acquired by such PERSON, whether or not the obligations secured
thereby have been assumed; (g) all GUARANTY INDEBTEDNESS of such PERSON; (h)
the principal portion of all obligations of such PERSON under capital leases; (i) all
obligations of such PERSON under INTEREST RATE HEDGES; (j) the maximum amount of all
standby letters of credit issued or bankers’ acceptances facilities created for the account of such
PERSON and, without duplication, all drafts drawn thereunder (to the extent unreimbursed);
(k) all preferred capital stock issued by such PERSON and required by the terms thereof
to be redeemed, or for which mandatory sinking fund payments are due by a fixed date; (l)
with respect to the BORROWER, the principal portion of all obligations of such PERSON under
off-balance sheet financing arrangements in the nature of “synthetic leases,” asset securitizations
and other similar financings; (m) the indebtedness of any partnership or unincorporated
joint venture in which such PERSON is a general partner or a joint venturer and with respect to
which such PERSON under applicable LAW has the liability for the repayment thereof.

Section 1.51. Insolvency Proceedings. The term “INSOLVENCY PROCEEDINGS”
means, with respect to any referenced PERSON, any case or proceeding commenced by or against such
PERSON, under any provision of the United States Bankruptcy Code, as amended, or under any
other federal or state bankruptcy or insolvency law, or any assignments for the benefit of
creditors, formal or informal moratoriums, receiverships, compositions or extensions with some or
all creditors with respect to any indebtedness of such PERSON.

Section 1.52. Intellectual Property. The term “INTELLECTUAL PROPERTY” means
all of the BORROWER’S right, title and interest, whether now owned or existing or hereafter
acquired or arising, in all of the following property: (a) all domestic and foreign
copyrights, copyright registrations and copyright applications, whether or not registered or filed
with any governmental authority; (b) all domestic and foreign trademarks, trademark
registrations, trademark applications, trade names, service marks, certification marks, logos and
other source business identifiers, whether or not registered or filed with any governmental
authority; (c) all United States and foreign patents, and pending and abandoned United
States and foreign patent applications, including, without limitation, the inventions and
improvements described or claimed therein, together with (i) all renewals, reissues, divisions,
continuations, certificates of reexamination, extensions and continuations-in-part of all of the
foregoing, (ii) all present and future rights of the BORROWER under all present and future license
agreements relating to all of the foregoing, whether the BORROWER is licensee or licensor
thereunder, and (iii) all of the BORROWER’S present and future claims, causes of action and rights
to sue for past, present or future infringements of all of the foregoing; (d) all rights
corresponding thereto throughout the world; and (e) all goodwill of the BORROWER in
connection with the use of, and symbolized by, any of the foregoing.

Section 1.53. Interest Coverage Ratio. The term “INTEREST COVERAGE RATIO”
means the ratio as of the end of each FISCAL QUARTER for the period of computation of: (a) the EBIT
of the BORROWER and its SUBSIDIARIES during such period; to (b) the INTEREST EXPENSE of the
BORROWER and its SUBSIDIARIES for such period. The INTEREST COVERAGE RATIO shall be measured for
the four (4) FISCAL QUARTERS immediately preceding the date of determination.

Section 1.54. Interest Expense. The term “INTEREST EXPENSE” means,
for any period of computation, for the BORROWER and its SUBSIDIARIES (determined on a consolidated
basis without duplication in accordance with G.A.A.P.) the sum of the following: (a)
interest expense on FUNDED INDEBTEDNESS of the BORROWER for such period (whether paid or accrued)
and including the interest component of any payments in respect of CAPITAL LEASE OBLIGATIONS, as
determined in accordance with G.A.A.P.; and (b) the net amount payable under any INTEREST
RATE HEDGES during such period.

Section 1.55. Interest Period. The term “INTEREST PERIOD” means with
respect to any LIBOR BORROWING, each period commencing on the date upon which a LIBOR BORROWING has
been selected to commence in accordance with the provisions of Section 2.2.2.b of this AGREEMENT,
or the date upon which a BASE RATE BORROWING is converted to a LIBOR BORROWING, and ending one,
(1), two (2), three (3) or six (6) months thereafter; provided that: (a) any INTEREST
PERIOD which would otherwise end on a day which is not a BUSINESS DAY shall be extended to the next
succeeding BUSINESS DAY unless such BUSINESS DAY falls in another calendar month, in which case
such INTEREST PERIOD shall end on the immediately preceding BUSINESS DAY; (b) any
INTEREST PERIOD which begins on the last BUSINESS DAY of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of such INTEREST PERIOD)
shall end on the last BUSINESS DAY of a calendar month; and (c) the BORROWER shall not
select any INTEREST PERIOD which would end after any applicable MATURITY DATE.

Section 1.56. Interest Rate Hedge. The term “INTEREST RATE HEDGE” means,
with respect to any referenced PERSON, an interest rate swap, hedge, cap or collar agreement or
similar arrangement between such PERSON and one or more financial institutions providing for the
transfer or mitigation of interest risks either generally or under specific contingencies.

Section 1.57. Inventory. The term “INVENTORY” has the same meaning as
provided to such term in the Uniform Commercial Code — Secured Transactions, Title 9,
Commercial Law Article, Annotated Code of Maryland, as amended, together with all
of the BORROWER’S GOODS, merchandise, materials, raw materials, goods in process, finished goods,
work in progress, bindings or component materials, packaging and shipping materials and other
tangible or intangible personal property, now owned or hereafter acquired and held for sale or
lease or furnished or to be furnished under contracts of service or which contribute to the
finished products or the sale, promotion, storage and shipment thereof, whether located at
facilities owned or leased by the BORROWER, in the course of transport to or from ACCOUNT DEBTORS,
used for demonstration, placed on consignment, or held at storage locations.

Section 1.58. Laws. The term “LAWS” means all ordinances, statutes, rules,
regulations, orders, injunctions, writs or decrees of any government or political subdivision or
agency thereof, or any court or similar entity established by any thereof.

Section 1.59. L/C Obligations. The term “L/C OBLIGATIONS” means
collectively at any time of determination an amount equal to the sum of: (a) the aggregate undrawn
and unexpired amount of the then outstanding LETTERS OF CREDIT; and (b) the aggregate amount in
U.S. dollars of drawings under LETTERS OF CREDIT which have not then been reimbursed.

Section 1.60. Lender Assignment. The term “LENDER ASSIGNMENT” shall have
the same meaning as set forth in Section 10.1.2 of this AGREEMENT.

Section 1.61. Lenders. The term “LENDERS” means collectively each of the
signatories hereto designated as a “LENDER”, and each ASSIGNEE.

Section 1.62. Letter Agreement. The term “LETTER AGREEMENT” means the
Letter Agreement dated June 21, 2005 by and between the BORROWER and the ADMINISTRATIVE AGENT, and
the attachments thereto.

Section 1.63. Letters Of Credit. The term “LETTERS OF CREDIT” means
collectively any letters of credit issued by the ADMINISTRATIVE AGENT for the account or benefit of
the BORROWER in accordance with the terms of this AGREEMENT.

Section 1.64. Leverage Ratio. The term “LEVERAGE RATIO” means as of
the last day of each FISCAL QUARTER of the BORROWER: (a) for purposes of measuring
compliance with Section 6.13, the ratio of (i) FUNDED INDEBTEDNESS of the BORROWER and its
SUBSIDIARIES on a consolidated basis (as existing on the last day of such FISCAL QUARTER) net of
the amount of PERMITTED INVESTMENTS of the BORROWER and its SUBSIDIARIES, to (ii) EBITDA; and
(b) for purposes of determining the APPLICABLE PERCENTAGE in accordance with Section 1.6,
the ratio of (i) FUNDED INDEBTEDNESS of the BORROWER and its SUBSIDIARIES on a consolidated basis
(as existing on the last day of such FISCAL QUARTER), to (ii) EBITDA.

Section 1.65. LIBOR Borrowing. The term “LIBOR BORROWING” means each amount
of the unpaid principal balance of a LOAN which is designated by the BORROWER in accordance with
the terms of this AGREEMENT to accrue interest at the ADJUSTED LIBOR RATE for a separately
designated INTEREST PERIOD.

Section 1.66. LIBOR Rate. The term “LIBOR RATE” means, with respect to any
LIBOR BORROWING for any INTEREST PERIOD therefor, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on Dow Jones Markets Page 3750 (or any successor
page) as the London interbank offered rate for deposits in dollars at approximately 11:00 a.m.
(London time) two (2) BUSINESS DAYS prior to the first day of such INTEREST PERIOD for a term
comparable to such INTEREST PERIOD. If for any reason such rate is not available, the term “LIBOR
RATE” shall mean, for any LIBOR BORROWING for any INTEREST PERIOD therefor, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page
as the London interbank offered rate for deposits in dollars at approximately 11:00 a.m. (London
time) two (2) BUSINESS DAYS prior to the first day of such INTEREST PERIOD for a term comparable to
such INTEREST PERIOD; provided, however, if more than one rate is specified on
Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of all such rates
(rounded upwards, if necessary, to the nearest 1/100 of 1%).

Section 1.67. Liens. The term “LIENS” means with respect to any asset owned
by a referenced PERSON: (a) any lien, claim, charge, pledge, security interest, deed of
trust, mortgage, or other encumbrance in, on or of such asset; (b) the interest of a
vendor or a lessor under any conditional sale agreement capital lease or title retention agreement
(or any financing lease having substantially the same economic effect as any of the foregoing)
relating to such asset; and (c) in the case of securities owned by any such PERSON, any
purchase option, call or similar right of a third party with respect to such securities.

Section 1.68. Loans. The term “LOANS” means collectively the revolving
credit loans extended to the BORROWER as described in Section 2.1 of this AGREEMENT.

Section 1.69. M&T. The term “M&T” means Manufacturers And Traders Trust
Company.

Section 1.70. Material Adverse Event. The term “MATERIAL ADVERSE EVENT”
means the occurrence of any event, condition, or omission which could be reasonably expected to
have a material adverse effect upon: (a) the financial condition, results of operations,
properties, assets, liabilities (including, without limitation, tax liabilities, liabilities under
ENVIRONMENTAL LAWS, and ERISA LIABILITIES), businesses, operations, capitalization, equity,
licenses, or franchises of the BORROWER and its SUBSIDIARIES taken as a whole; (b) the
ability of the BORROWER or of any of the GUARANTORS to perform any of the OBLIGATIONS when and as
required by the terms of the CREDIT DOCUMENTS; (c) the rights and remedies of the SECURED
PARTIES as provided by the CREDIT DOCUMENTS; or (d) the value, condition, use, or
availability of any material portion of the COLLATERAL or upon the enforceability, continued
perfection, or priority of any of the LIENS and security interests securing the OBLIGATIONS.

Section 1.71. Maturity Date. The term “MATURITY DATE” means September 1,
2010.

Section 1.72. Maximum Aggregate Loan Amount. The term “MAXIMUM AGGREGATE
LOAN AMOUNT” means One Hundred Thirty-Five Million Dollars ($135,000,000.00), as such amount may be
decreased in accordance with the provisions of Section 2.1.8 of this AGREEMENT or increased in
accordance with the provisions of Section 2.1.9 of this AGREEMENT.

Section 1.73. Minimum Borrowing Amount. The term “MINIMUM BORROWING AMOUNT”
means: (a) for BASE RATE BORROWINGS, Two Hundred Fifty Thousand Dollars ($250,000.00);
and (b) for LIBOR BORROWINGS, Five Million Dollars ($5,000,000.00).

Section 1.74. Multiemployer Plan. The term “MULTIEMPLOYER PLAN”
means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA which is maintained for
employees of the BORROWER, or any ERISA AFFILIATE of the BORROWER.

Section 1.75. Net Available Proceeds. The term “NET AVAILABLE PROCEEDS”
means: (a) in the case of any PREPAYMENT DISPOSITION, the aggregate amount of all cash
payments, and the fair market value of any non-cash consideration, received by the BORROWER or its
SUBSIDIARIES directly or indirectly in connection with such PREPAYMENT DISPOSITION,
provided that (i) NET AVAILABLE PROCEEDS shall be net of (x) the amount of any legal,
title, accounting, investment banking and recording tax expenses, commissions and other fees and
expenses payable by the BORROWER or its SUBSIDIARIES in connection with such PREPAYMENT
DISPOSITION, (y) any foreign or U.S. federal, state and local income or other taxes estimated to
be payable by the BORROWER or its SUBSIDIARIES as a result of such PREPAYMENT DISPOSITION, and (z)
reserves established in accordance with G.A.A.P. for obligations related to such PREPAYMENT
DISPOSITION, and (ii) NET AVAILABLE PROCEEDS shall be net of any repayments (including reasonable
expenses in connection therewith) by the BORROWER or any of its SUBSIDIARIES of INDEBTEDNESS to the
extent that (x) such INDEBTEDNESS is secured by a LIEN on the property that is the subject of such
PREPAYMENT DISPOSITION, and (y) the transferee of (or holder of a LIEN on) such property requires
that such INDEBTEDNESS be repaid as a condition to the DISPOSITION of such property; (b)
in the case of any CASUALTY EVENT, the aggregate amount of proceeds of insurance, condemnation
awards and other compensation received by the BORROWER or its SUBSIDIARIES in respect of such
CASUALTY EVENT net of (i) reasonable expenses incurred by the BORROWER or its SUBSIDIARIES in
connection therewith, (ii) contractually required repayments of INDEBTEDNESS to the extent secured
by a LIEN on such property, and (iii) any income and transfer taxes payable by the BORROWER or any
of its SUBSIDIARIES in respect of such CASUALTY EVENT; and (c) in the case of the
issuance of debt obligations by the BORROWER or any of its SUBSIDIARIES, the aggregate amount of
the proceeds of such debt issuance received by the BORROWER or its SUBSIDIARIES therefrom less any
reasonable and necessary expenses incurred by the BORROWER or its SUBSIDIARIES in connection
therewith.

Section 1.76. Net Income. The term “NET INCOME” means, for any period of
computation, the net income (or net deficit) of the BORROWER and its SUBSIDIARIES (determined on a
consolidated basis without duplication) for such period, after deduction of all expenses, taxes and
other proper charges, all as determined in accordance with G.A.A.P.

Section 1.77. Notes. The term “NOTES” means collectively the Revolving Loan
Promissory Notes of even date herewith issued by the BORROWER, as the maker thereof, to each of the
LENDERS in accordance with the provisions of Section 2.1.1 of this AGREEMENT, and any Revolving
Loan Promissory Notes subsequently issued in accordance with the provisions of Section 10.1.5 of
this AGREEMENT, and all amendments and modifications thereto.

Section 1.78. Obligations. The term “OBLIGATIONS” means collectively the
obligations of the BORROWER to pay to the SECURED PARTIES or to perform for the benefit of the
SECURED PARTIES: (a) sums due any of the SECURED PARTIES arising out of or in connection
with the LOANS, the LETTERS OF CREDIT, the L/C OBLIGATIONS, or otherwise pursuant to the terms of
the CREDIT DOCUMENTS, including without limitation all principal, accrued interest, fees and
charges; (b) indemnification duties and obligations owed by the BORROWER to the SECURED
PARTIES in accordance with the terms of the CREDIT DOCUMENTS, including without limitation the L/C
OBLIGATIONS; (c) SECURED PARTY EXPENSES; (d) overdrafts of the BORROWER upon
its accounts with the ADMINISTRATIVE AGENT or any of the LENDERS; (e) all other
indebtedness, liabilities, duties, and covenants of the BORROWER to the SECURED PARTIES arising out
of or related to the LOANS or the CREDIT DOCUMENTS, whether direct or indirect, joint or several,
absolute or contingent, contemplated or not presently contemplated, now existing or hereafter
arising; (f) any indebtedness owed to any LENDER or its affiliates with respect to
INTEREST RATE HEDGES issued to mitigate or hedge interest rate risks relating to the LOANS; and
(g) any indebtedness or liability which may exist or arise as a result of any payment
made by or for the benefit of the SECURED PARTIES being avoided or set aside for any reason
including, without limitation, any payment being avoided as a preference under Sections 547 and 550
of the United States Bankruptcy Code, as amended, or under any state law governing
insolvency or creditors’ rights.

Section 1.79. Other Taxes. The term “OTHER TAXES” means any stamp,
court or documentary taxes or any other excise or property taxes, charges, or similar levies which
arise from any payment made at any time upon any of the OBLIGATIONS or from the execution,
delivery, performance, enforcement, filing or registration of, or otherwise with respect to, this
AGREEMENT or any other CREDIT DOCUMENT.

Section Permitted Investments. The term “PERMITTED INVESTMENTS” means: (a)
currency of the United States of America; (b) direct obligations of, or obligations the
principal of and interest on which are unconditionally guaranteed by, the United States of America
(or by any agency thereof to the extent such obligations are backed by the full faith and credit of
the United States of America), in each case maturing within one year from the date of acquisition
thereof; (c) investments in commercial paper maturing within one year from the date of
acquisition thereof and having, at such date of acquisition, with a rating of at least “A-1” and
“P-1” from Standard & Poor’s and Moody’s, respectively; (d) investments in certificates
of deposit, banker’s acceptances and time deposits maturing within one year from the date of
acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts
issued or offered by, any domestic office of any commercial bank organized under the laws of the
United States of America or any State thereof which has a combined capital and surplus and
undivided profits of not less than $250,000,000; (e) repurchase agreements with a term of
not more than 30 days for securities described in clause (b) of this definition and entered into
with a financial institution satisfying the criteria described in clause (d) of this definition;
readily marketable obligations issued by any State of the United States of America or any political
subdivision thereof or any authorized agency thereof having a rating of at least “A-1,” “P-1,” or
“AAA” (as applicable), from either Standard & Poor’s or Moody’s; and (g) money market
mutual funds having assets in excess of $250,000,000, substantially all of the assets of which are
comprised of assets specified in clauses (a) through (f) above.

Section 1.81. Permitted Liens. The term “PERMITTED LIENS” means:
(a) LIENS for taxes, assessments, or similar charges incurred in the ordinary course of
business that are not yet due and payable or which are being contested in compliance with the
procedures set forth in Section 5.8 hereof; (b) LIENS in favor of the SECURED PARTIES;
(c) any existing LIENS specifically described on Schedule 1.81 hereof; (d) any
LIEN on specifically allocated money or securities to secure payments under workmen’s compensation,
unemployment insurance, social security and other similar LAWS, or to secure the performance of
bids, tenders or contracts (other than for the repayment of borrowed money) or to secure statutory
obligations or appeal bonds, or to secure indemnity, performance or other similar bonds in the
ordinary course of business; (e) purchase money security interests in equipment (and
security interests in equipment securing the refinancing of INDEBTEDNESS previously secured by a
purchase money security interest therein) not to exceed, together with all purchase money security
interests of the SUBSIDIARIES of the BORROWER, in aggregate amount outstanding at any one time the
sum of Two Million Dollars ($2,000,000.00), provided that such purchase money security interests do
not attach to any assets other than the specific item(s) of equipment acquired with the proceeds of
the loan secured by such purchase money security interests and the proceeds thereof; (f)
interests of lessors under capital leases; (g) LIENS of carriers, warehousemen,
mechanics, materialmen and landlords arising in the ordinary course of business for sums not
overdue or sums being diligently contested in good faith by appropriate procedures and for which
adequate reserves have been set aside; (h) easements, rights-of-way, restrictions,
encroachments and other similar charges or encumbrances, and minor title deficiencies relating to
real property owned or occupied by the BORROWER or its SUBSIDIARIES, in each case not securing
INDEBTEDNESS and not materially interfering with the conduct of the business of the BORROWER or any
of its SUBSIDIARIES; and (i) subsequently arising LIENS which are expressly approved in
advance of the creation of any such LIENS by the REQUIRED LENDERS in writing.

Section 1.82. Person. The term “PERSON” means any individual, corporation,
partnership, limited liability company, association, joint-stock company, trust, estate,
unincorporated organization, joint venture, court, government or political subdivision or agency
thereof, or other legal entity.

Section 1.83. Prepayment Disposition. The term “PREPAYMENT DISPOSITION”
means any DISPOSITION by the BORROWER or any of the BORROWER’S SUBSIDIARIES other than
DISPOSITIONS: (a) of INVENTORY or other assets of the BORROWER or its SUBSIDIARIES or the
licensing of INTELLECTUAL PROPERTY by the BORROWER or its SUBSIDIARIES, in each case in the
ordinary course of business; (b) of obsolete or worn-out property, tools or equipment, or
property, tools or equipment no longer used or useful in the business of the BORROWER or any of its
SUBSIDIARIES; or (c) to a SUBSIDIARY of the BORROWER or to the BORROWER.

Section 1.84. Prime Rate. The term “PRIME RATE” means the rate of
interest announced from time to time by the ADMINISTRATIVE AGENT, in its sole discretion, as its
prime lending rate of interest, it being understood that such announced rate bears no inference,
implication, representation, or warranty that such announced rate is charged to any particular
customer or customers of the ADMINISTRATIVE AGENT. The ADMINISTRATIVE AGENT’S prime lending rate
of interest is but one of several interest rate bases used by the ADMINISTRATIVE AGENT. Changes in
the applicable interest rate shall be made as of, and immediately upon, the occurrence of changes
in the ADMINISTRATIVE AGENT’S prime rate.

Section 1.85. Receivables. The term “RECEIVABLES” means: (a) all
ACCOUNTS; (b) all INSTRUMENTS, DOCUMENTS, GENERAL INTANGIBLES, CHATTEL PAPER, PAYMENT
INTANGIBLES, PROMISSORY NOTES, drafts, acceptances, and choses in action, of the BORROWER, now
existing or hereafter created or acquired, and all proceeds and products thereof, and all rights
thereto, in each case arising from or relating to the sale, lease or license of or the providing of
INVENTORY, GOODS, or other assets or services by the BORROWER to ACCOUNT DEBTORS; (c) all
SOFTWARE relating to any of the foregoing; (d) all rights to royalties or payments of any
kind arising out of the licensing or sale of any INTELLECTUAL PROPERTY; and (e) all other
rights, contingent or non-contingent, of any kind of the BORROWER to receive payment, benefit, or
credit from any PERSON, other than casualty insurance proceeds or condemnation proceeds from the
loss or taking of assets of the BORROWER which are not COLLATERAL.

Section 1.86. Records. The term “RECORDS” means correspondence, memoranda,
tapes, discs, papers, books and other documents, or transcribed information of any type, whether
expressed in ordinary, computer or machine language.

Section 1.87. Regulated Substance. The term “REGULATED SUBSTANCE” means any
substance which, pursuant to any ENVIRONMENTAL LAW, is identified as a hazardous substance (or
other term having similar import) or is otherwise subject to special requirements under
ENVIRONMENTAL LAWS in connection with the use, storage, transportation, disposition or other
handling thereof.

Section Regulatory Change. The term “REGULATORY CHANGE” means any change after the
date of CLOSING in the LAWS of the United States, any state thereof, or any other GOVERNMENTAL
AUTHORITY, or the adoption or making after such date, of any interpretations, changes in
convention, directives or requests applying to a class of depository institutions, including any
LENDER, of or under any LAWS of the United States, any state thereof, or any other GOVERNMENTAL
AUTHORITY (whether or not any such interpretation, directive or request has the force of LAW).

Section 1.89. Release. The term “RELEASE” means a “release” as defined in
Section 101(22) of the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as now or hereafter amended.

Section 1.90. Required Lenders. The term “REQUIRED LENDERS” means, at any
time of determination, any combination of LENDERS holding at least sixty-six and two-thirds percent
(66-2/3%) of: (a) the aggregate outstanding principal balances of the LOANS; and
(b) unused COMMITMENT AMOUNTS.

Section 1.91. Reserve Requirement. The term “RESERVE REQUIREMENT” means for
any day during the referenced period the maximum rate at which reserves (including without
limitation any marginal, special, supplemental or emergency reserves) are required to be maintained
during such period under Regulation D of the Board of Governors of the Federal Reserve System, from
time to time in effect (or any successor or other regulation or legal requirement relating to
reserve requirements applicable to member banks of the Federal Reserve System) by member banks of
the Federal Reserve System against “Eurocurrency Liabilities” as currently defined in Regulation D
(or against any other category of liabilities which includes deposits by reference to which the
interest rate on LIBOR BORROWINGS or loans is determined or any category of extensions of credit or
other assets which include loans by a non-United States office of a bank to United States
residents), whether or not a LENDER has any “Eurocurrency Liabilities” subject to such reserve
requirements during the referenced period. LIBOR BORROWINGS shall be deemed to constitute
“Eurocurrency Liabilities,” and as such shall be deemed subject to reserve requirements without
benefits or credits for proration, exceptions or offsets that may be available from time to time to
a LENDER. The ADJUSTED LIBOR RATE shall be adjusted automatically on and as of the effective date
of any change in the RESERVE REQUIREMENT.

Section 1.92. Restricted Payment. The term “RESTRICTED PAYMENT”
means collectively: (a) any dividend or other payment or distribution, direct or
indirect, on account of any equity interest in the BORROWER now or hereafter outstanding, except a
dividend or distribution payable solely in the same class or type of equity interest to the holders
of that class or type; (b) any redemption, conversion, exchange, retirement, sinking fund
or similar payment, purchase or other acquisition for value, direct or indirect, by the BORROWER of
any equity interest in the BORROWER now or hereafter outstanding (other than repurchases of shares
held by employees or directors pursuant to the terms of any restricted share plan of the BORROWER,
which in aggregate amount in any FISCAL YEAR do not exceed One Million Dollars ($1,000,000.00));
(c) any payment made by the BORROWER to retire, or to obtain the surrender of, any
outstanding warrants, options or other rights to acquire equity interests in the BORROWER now or
hereafter outstanding; or (d) any payment by the BORROWER of any management, consulting
or similar fees which are not payments in amounts comparable to sums paid in the marketplace by
entities comparable to the payor for similar services to unrelated employees or providers of
management, consulting, or other services actually performed.

Section 1.93. Secured Parties. The term “SECURED PARTIES” means collectively
the ADMINISTRATIVE AGENT and the LENDERS.

Section 1.94. Secured Party Expenses. The term “SECURED PARTY EXPENSES”
means the out-of-pocket expenses or costs incurred by the ADMINISTRATIVE AGENT arising out of,
pertaining to, or in any way connected with this AGREEMENT, any of the other CREDIT DOCUMENTS or
the OBLIGATIONS. The term “SECURED PARTY EXPENSES” shall include, without limitation:
(a) the costs required to be paid by the BORROWER by the terms of the CREDIT DOCUMENTS;
(b) taxes and insurance premiums advanced or otherwise paid by the SECURED PARTIES in
connection with the COLLATERAL or on behalf of the BORROWER; (c) filing and recording
costs, title insurance premiums, environmental and consulting fees, audit fees, search fees and
other expenses paid or incurred by the ADMINISTRATIVE AGENT; (d) costs and expenses
incurred by the ADMINISTRATIVE AGENT in the collection of the ACCOUNTS (with or without the
institution of legal action), or to enforce any provision of this AGREEMENT, or in gaining
possession of, maintaining, handling, evaluating, preserving, storing, shipping, selling, preparing
for sale and/or advertising to sell the COLLATERAL or any other property of the BORROWER whether or
not a sale is consummated; (e) costs and expenses of litigation incurred by any SECURED
PARTY or any participant of a SECURED PARTY in any of the OBLIGATIONS, in enforcing or defending
this AGREEMENT or any portion hereof or in collecting any of the OBLIGATIONS; (f)
reasonable attorneys’ fees and expenses incurred by the ADMINISTRATIVE AGENT in obtaining advice or
the services of its attorneys with respect to the structuring, drafting, negotiating, reviewing,
amending, terminating, enforcing or defending of this AGREEMENT, or any portion hereof or any
agreement or matter related hereto, whether or not litigation is instituted; and (g)
travel expenses of the ADMINISTRATIVE AGENT or its agents related to any of the foregoing.

Section 1.95. Solvent. The term “SOLVENT” means, as to any referenced
PERSON, that as of the date of determination both: (a) (i) the then fair saleable value
of the property of such PERSON is greater than the total amount of liabilities (including
contingent liabilities) of such PERSON and is not less than the amount that will be required to pay
the probable liabilities on such PERSON’S then existing debts as they become absolute and matured
considering all financing alternatives and potential asset sales reasonably available to such
PERSON; (ii) such PERSON’S capital is not unreasonably small in relation to its business or any
contemplated or undertaken transaction; and (iii) such PERSON does not intend to incur, or believe
(nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts
as they become due; and (b) such PERSON is “solvent” within the meaning given that term
and similar terms under applicable LAWS relating to fraudulent transfers and conveyances. For
purposes of this definition, the amount of any contingent liability at any time shall be computed
as the amount that, in light of all the facts and circumstances existing at such time, represents
the amount that can reasonably be expected to become an actual or matured liability.

Section 1.96. Subsidiary. The term “SUBSIDIARY” means, with respect
to any PERSON (the “PARENT”) at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with those of the PARENT in
the PARENT’S consolidated financial statements if such financial statements were prepared in
accordance with G.A.A.P. as of such date, as well as any other corporation, limited liability
company, partnership, association or other entity (a) of which securities or other
ownership interests representing more than fifty percent (50%) of the equity or more than fifty
percent (50%) of the ordinary voting power or, in the case of a partnership, more than fifty
percent (50%) of the general partnership interests are, as of such date, owned, controlled or held,
or (b) that is, as of such date, otherwise controlled, by the PARENT or one or more
subsidiaries of the PARENT or by the PARENT and one or more subsidiaries of the PARENT. Unless
otherwise specified, “SUBSIDIARY” means a SUBSIDIARY of the BORROWER.

Section 1.97. Taxes. The term “TAXES” means any and all taxes, levies,
assessments, imposts, duties, deductions, fees, withholdings or similar charges, and all
liabilities with respect thereto, imposed upon any SECURED PARTY, excluding, in the case of each
SECURED PARTY (and/or its participants), taxes imposed on or measured by its net income (or taxes
imposed in lieu of taxes on net income) by the jurisdiction (or any political subdivision thereof)
under the laws of which it is organized or maintains a lending office.

Section 1.98. Termination Event. The term “TERMINATION EVENT” means:
(a) a “Reportable Event” described in Section 4043 of ERISA and the regulations issued
thereunder, but not including any such event for which the 30-day notice requirement has been
waived by applicable regulation; (b) the withdrawal of the BORROWER or an ERISA AFFILIATE
of the BORROWER from a GUARANTEED PENSION PLAN during a plan year in which it was a “substantial
employer” as defined in Section 4001(a)(2) of ERISA; (c) the filing of a notice of intent
to terminate a GUARANTEED PENSION PLAN or the treatment of a GUARANTEED PENSION PLAN amendment as a
termination under Section 4041 of ERISA; (d) the institution of proceedings to terminate
a GUARANTEED PENSION PLAN by the Pension Benefit Guaranty Corporation; (e) the withdrawal
or partial withdrawal of the BORROWER or an ERISA AFFILIATE of the BORROWER from a MULTIEMPLOYER
PLAN; or (f) any other event or condition which might reasonably be expected to
constitute grounds under ERISA for the termination of, or the appointment of a trustee to
administer, any GUARANTEED PENSION PLAN.

Section Transferee. The term “TRANSFEREE” means either an ASSIGNEE or a PARTICIPANT.

ARTICLE 2

TERMS OF THE LOANS AND LETTERS OF CREDIT

Section 2.1. Commitment To Extend Loans. Subject to the terms and
conditions of this AGREEMENT and the other CREDIT DOCUMENTS, each of the LENDERS severally agrees
to extend a loan or loans to the BORROWER as an obligor (each a “LOAN” and collectively, the
“LOANS”) from time to time until the MATURITY DATE, in aggregate principal amounts outstanding at
any one time which do not exceed the amount of such LENDER’S COMMITMENT AMOUNT; provided,
however, that the aggregate principal unpaid balances of all outstanding and unpaid LOANS
(after giving effect to any amount requested) plus the aggregate amount of L/C OBLIGATIONS
shall not exceed the MAXIMUM AGGREGATE LOAN AMOUNT (as increased or decreased from time to time in
accordance with the terms of this AGREEMENT). The BORROWER shall not request any advances of
proceeds of the LOANS which would cause the aggregate unpaid principal balances of the LOANS to
exceed either of the above-stated limitations. In the event that the aggregate unpaid principal
balances of the LOANS exceed the limitations provided for herein, the BORROWER shall immediately
make such payments to the ADMINISTRATIVE AGENT as will be sufficient to reduce the aggregate unpaid
principal balances of the LOANS to an aggregate amount which will not be in excess of such
limitations. Each LOAN extended by a LENDER shall be in a principal amount equal to the LENDER’S
COMMITMENT PERCENTAGE of the aggregate principal balance of the LOANS requested on such occasion.
Subject to the terms and conditions of this AGREEMENT and the other CREDIT DOCUMENTS, the BORROWER
may borrow, prepay, and reborrow the LOANS in whole or in part until the MATURITY DATE.

Section 2.1.1. Revolving Loan Promissory Notes. The obligations of the
BORROWER to repay the LOANS to each of the LENDERS shall be evidenced by the NOTES in the form of
the specimen Revolving Loan Promissory Note attached as Exhibit 2.1.1 hereto. The BORROWER shall
deliver a NOTE on the date of CLOSING to each of the LENDERS, with the face amount of each NOTE to
be in the amount of the COMMITMENT AMOUNT of the respective LENDER.

Section 2.1.2. Procedure For Loan Borrowings. The BORROWER may borrow
proceeds of the LOANS until (but not including) the MATURITY DATE, provided, that the
BORROWER delivers to the ADMINISTRATIVE AGENT an irrevocable notice (which notice must be received
by the ADMINISTRATIVE AGENT prior to 10:00 a.m. Buffalo, New York time: (a) two (2)
BUSINESS DAYS prior to the requested BORROWING DATE, if all or any part of the requested advances
of proceeds of the LOANS are to be initially LIBOR BORROWINGS; or (b) on the requested
BORROWING DATE, if all of the requested advances of the proceeds of the LOANS are to be initially
BASE RATE BORROWINGS, specifying: (i) the amount to be borrowed, (ii) the requested
BORROWING DATE, (iii) whether the borrowing is to be a LIBOR BORROWING, a BASE RATE
BORROWING, or a combination thereof, and (iv) if the borrowing is to be entirely or
partly a LIBOR BORROWING, the information required to be specified in the election described in
Section 2.2.2(b) of this AGREEMENT. The above-described notice may be delivered to the
ADMINISTRATIVE AGENT via facsimile with telephone confirmation. The ADMINISTRATIVE AGENT shall
promptly notify each LENDER of the ADMINISTRATIVE AGENT’S receipt of each notice. Each LENDER will
make the amount of its pro rata share (calculated in accordance with its respective COMMITMENT
PERCENTAGE) of each requested borrowing available to the ADMINISTRATIVE AGENT for the account of
the BORROWER at the offices of the ADMINISTRATIVE AGENT specified in this AGREEMENT prior to 12:00
Noon Buffalo, New York time on the BORROWING DATE requested by the BORROWER in U.S. Dollars and in
funds immediately available to the ADMINISTRATIVE AGENT; provided, however, that
each LENDER is provided with written notification thereof prior to 11:00 a.m. Buffalo, New York
time on such date. Such borrowing will be made available to the BORROWER on or prior to 1:00 p.m.
Buffalo, New York time by the ADMINISTRATIVE AGENT crediting the BORROWER’S account with the
ADMINISTRATIVE AGENT with the aggregate of the amounts of proceeds of the LOANS made available to
the ADMINISTRATIVE AGENT by the LENDERS and in like funds as received by the ADMINISTRATIVE AGENT.
Each borrowing under the LOANS shall be in a principal amount of not less than the MINIMUM
BORROWING AMOUNT.

Section 2.1.3. Conditions Precedent To Effectiveness Of This Agreement. The
agreements of the LENDERS to the terms of this AGREEMENT are conditioned upon the ADMINISTRATIVE
AGENT having received each of the following documents, each of which shall be reasonably
satisfactory to the ADMINISTRATIVE AGENT:

a. Executed Counterparts. From each party to the LOAN AGREEMENT a
counterpart of the MODIFICATION AGREEMENT signed on behalf of such party, and from each indicated
party to this AGREEMENT a counterpart of this AGREEMENT signed on behalf of such party.

b. Opinion of Counsel. The opinion, dated the date of CLOSING (addressed to
the ADMINISTRATIVE AGENT and to the LENDERS) of Hogan & Hartson L.L.P., counsel for the BORROWER,
in form and substance reasonably acceptable to the ADMINISTRATIVE AGENT.

c. Organizational Documents. Such documents and certificates as the
ADMINISTRATIVE AGENT or its counsel may reasonably request relating to the organization, existence
and good standing of the BORROWER, the authorization of the LOANS, and any other legal matters
relating to the BORROWER or this AGREEMENT by the BORROWER.

d. Insurance. Certificates of insurance evidencing the existence of all
insurance required to be maintained by the BORROWER in accordance with the CREDIT DOCUMENTS.

e. Closing Certificate. A closing certificate, dated as of the date of
CLOSING and signed by the chief financial officer of the BORROWER, in form and substance reasonably
acceptable to the ADMINISTRATIVE AGENT.

f. Other Documents. Such other documents as the ADMINISTRATIVE AGENT may
reasonably request.

Section 2.1.4. Conditions Precedent To Each Advance. The right of the
BORROWER to receive each advance of proceeds of the LOANS, including the initial advance, shall be
subject to each of the following conditions precedent:

No Defaults Or Events Of Default. No event shall have occurred on or prior to such
date and be continuing on such date which constitutes a DEFAULT or EVENT OF DEFAULT.

b. Continuing Accuracy Of Representations And Warranties. Each
representation and warranty of the BORROWER set forth in this AGREEMENT shall be materially true
and correct, except to the extent that the BORROWER has previously advised the ADMINISTRATIVE AGENT
in writing of the occurrence or existence of any condition or event which makes any representation
or warranty no longer materially accurate or correct. The BORROWER acknowledges that each request
by the BORROWER for an advance of proceeds of the LOANS constitutes a reaffirmation by the BORROWER
of the continuing accuracy of such representations and warranties, except to the extent to the
contrary disclosed to the ADMINISTRATIVE AGENT by written notice from the BORROWER.

c. Receipt Of Reports. The ADMINISTRATIVE AGENT shall be in receipt of all
reports, financial statements, financial information and financial disclosures required by the
CREDIT DOCUMENTS, except to the extent that the ADMINISTRATIVE AGENT has waived in writing the
receipt thereof.

d. No Illegalities. It shall not be unlawful for the LENDERS to perform any
of the agreements or obligations imposed upon the LENDERS by any of the CREDIT DOCUMENTS or for the
BORROWER or any of the GUARANTORS to perform any of their respective agreements or obligations as
provided by the CREDIT DOCUMENTS.

e. No Material Adverse Event. No MATERIAL ADVERSE EVENT shall have occurred
and then be continuing.

Section 2.1.5. Repayment Of Loans. The BORROWER unconditionally promises to
pay to the ADMINISTRATIVE AGENT for the accounts of the LENDERS, the then unpaid principal amount
of each LOAN on or before the MATURITY DATE (or on any earlier date on which the LOANS become due
and payable as required by the stated provisions of this AGREEMENT). The BORROWER unconditionally
promises to pay to the ADMINISTRATIVE AGENT for the accounts of the LENDERS all interest which has
accrued upon the unpaid principal amounts of the LOANS from time to time outstanding from the date
of CLOSING until the date of payment in full of the LOANS at the rates per annum, and on the dates
set forth in Section 2.2 of this AGREEMENT. All sums due to the LENDERS in connection with the
LOANS shall be paid in full on or before the MATURITY DATE.

Section 2.1.6. Permitted Purposes Of Loans. The proceeds of the LOANS shall
be used by the BORROWER solely for the general corporate purposes of the BORROWER.

Section 2.1.7. Commitment Fees. For each FISCAL QUARTER during the term of
the LOANS, the BORROWER agrees to pay to the ADMINISTRATIVE AGENT for the ratable accounts of the
LENDERS an unused commitment fee (“COMMITMENT FEE”) calculated by subtracting the average daily
disbursed aggregate principal balances of the LOANS and the average aggregate face amount of issued
and outstanding LETTERS OF CREDIT during such FISCAL QUARTER (calculated on the basis of the actual
number of days elapsed in a year of 360 days) from the MAXIMUM AGGREGATE LOAN AMOUNT (as such
MAXIMUM AGGREGATE LOAN AMOUNT may be increased or reduced from time to time in accordance with the
provisions of this AGREEMENT), and multiplying any positive difference thereof by the APPLICABLE
PERCENTAGE then in effect for COMMITMENT FEES. The COMMITMENT FEES shall be payable in arrears on
the first BUSINESS DAY of each succeeding FISCAL QUARTER with the next of such COMMITMENT FEES to
be paid on November 1, 2005 for the period of time beginning on August 1, 2005 and ending on
October 31, 2005.

Section 2.1.8. Permanent Reduction Of Maximum Aggregate Loan Amount. The
BORROWER shall have the right at any time and from time to time, upon not less than five (5)
BUSINESS DAYS prior written notice to the ADMINISTRATIVE AGENT, to permanently reduce, in whole at
any time or in part from time to time, without premium or penalty, the MAXIMUM AGGREGATE LOAN
AMOUNT, provided that: (a) each reduction shall be in an amount of not less than Five
Million Dollars ($5,000,000.00) or, if greater, an integral multiple of One Million Dollars
($1,000,000.00); and (b) no reduction shall be permitted if, after giving effect
thereto, and to any repayments of the LOANS made on the effective date thereof, the aggregate
principal balances of the LOANS then unpaid and outstanding would exceed the MAXIMUM AGGREGATE LOAN
AMOUNT then in effect.

Section 2.1.9. Increase In Maximum Aggregate Loan Amount. In the
absence of the occurrence and continuation of a MATERIAL ADVERSE EVENT or any other continuing
DEFAULTS or EVENTS OF DEFAULT, and upon not less than thirty (30) BUSINESS DAYS prior written
notice to the ADMINISTRATIVE AGENT, the BORROWER shall have the right until September 1, 2007 to
elect to increase the MAXIMUM AGGREGATE LOAN AMOUNT to an amount up to but not in excess of One
Hundred Eighty-Five Million Dollars ($185,000,000); provided, however, that no
LENDER shall be obligated to increase either its COMMITMENT AMOUNT or COMMITMENT PERCENTAGE unless
any such LENDER elects in writing in its sole and absolute discretion to provide any such
increases. In the event that one or more LENDERS shall elect to increase its (or their)
COMMITMENT AMOUNT(S) to fund a requested increase in the MAXIMUM AGGREGATE LOAN AMOUNT: (a)
appropriate adjustments to the COMMITMENT AMOUNT(S) of such LENDER(S) and to the COMMITMENT
PERCENTAGES of all LENDERS shall be made; (b) the outstanding amount of the LOANS funded by each
LENDER shall be adjusted in accordance with the revised COMMITMENT PERCENTAGES (and appropriate
payments shall be made among the LENDERS to reflect such COMMITMENT PERCENTAGES); (c) the amount
set forth in the definition of MAXIMUM AGGREGATE LOAN AMOUNT shall be increased to reflect the
aggregate amount of increases in COMMITMENT AMOUNTS; and (d) the BORROWER shall execute and deliver
such new NOTES and/or amendments to existing NOTES as such LENDERS and the ADMINISTRATIVE AGENT may
reasonably require. In the event that the existing LENDERS do not elect to fully fund a requested
increase in the MAXIMUM AGGREGATE LOAN AMOUNT within thirty (30) days after the BORROWER’S request
therefor, then (x) the BORROWER shall have the right, with the prior written consent of the
ADMINISTRATIVE AGENT (which consent shall not unreasonably be withheld, conditioned or delayed), to
select another financial institution or institutions to join in the execution hereof as LENDER(S)
hereunder, and (y) those actions described in clauses (a) through (d) above shall be undertaken to
reflect the COMMITMENT AMOUNT(S) of such new LENDER(S), the adjusted COMMITMENT PERCENTAGES of all
LENDERS, and the repayment obligations of the BORROWER.

Section 2.2. Interest Terms Applicable To The Loans. Interest shall accrue
upon the unpaid principal balances of the LOANS until the LOANS have been repaid in full at the
rate or rates described below in this Section 2.2.

Section 2.2.1. Adjusted Base Rate. Except as otherwise provided by the terms
of this AGREEMENT, the LOANS shall bear interest on the unpaid principal balances at the
fluctuating ADJUSTED BASE RATE. Absent a timely election by the BORROWER in accordance with
Section 2.2.2.b of this AGREEMENT, the unpaid balances of the LOANS, including any balances of any
LIBOR BORROWINGS for which the applicable INTEREST PERIOD has expired, shall be automatically
deemed to bear interest at the ADJUSTED BASE RATE. Changes in the interest rate shall be made when
and as changes in the BASE RATE occur. For each BASE RATE BORROWING, all accrued and unpaid
interest shall be payable monthly in arrears on the first BUSINESS DAY of each succeeding calendar
month. Each election by the BORROWER of a BASE RATE BORROWING shall be in the MINIMUM BORROWING
AMOUNT applicable to BASE RATE BORROWINGS, or any multiple thereof.

Section 2.2.2. Adjusted LIBOR Rate Option. Subject to the terms of this
Section, interest may accrue at the election of the BORROWER for INTEREST PERIODS selected by the
BORROWER, at the ADJUSTED LIBOR RATE on portions of the unpaid principal balances of the LOANS. Any
LIBOR BORROWING or election for a LIBOR BORROWING pursuant to the provisions of this Section shall
be subject to the following terms and conditions:

a. Payments. For each of the LIBOR BORROWINGS, accrued interest shall be
paid to the ADMINISTRATIVE AGENT for the accounts of the LENDERS in arrears on the first BUSINESS
DAY of each month during each INTEREST PERIOD and on the last day of each applicable INTEREST
PERIOD.

b. Notice Of Election. By 10:00 a.m. Buffalo, New York time on that
BUSINESS DAY which occurs two (2) BUSINESS DAYS prior to the BUSINESS DAY on which the BORROWER
desires that an INTEREST PERIOD commence, the BORROWER shall deliver a written election to the
ADMINISTRATIVE AGENT specifying: (1) the commencement date of and length of the relevant INTEREST
PERIOD, and (2) the dollar amount of that portion of the total aggregate principal amount of the
LOANS identified by the BORROWER, which are to bear interest at the ADJUSTED LIBOR RATE, which
amount shall not be less than the MINIMUM BORROWING AMOUNT applicable to LIBOR BORROWINGS and with
any increments to the MINIMUM BORROWING AMOUNT to be in minimum multiples of Two Hundred Fifty
Thousand Dollars ($250,000.00).

c. Effect Of Election. Interest shall accrue from and including the
first day of each INTEREST PERIOD selected by the BORROWER to (but not including) the last day of
such INTEREST PERIOD at the ADJUSTED LIBOR RATE determined as applicable to such INTEREST PERIOD
upon the amount of the unpaid principal balances of the LOANS identified by the BORROWER in the
BORROWER’S written election. The BORROWER acknowledges that interest shall continue to accrue upon
the unpaid balances of the LOANS currently bearing interest at the ADJUSTED LIBOR RATE at the rates
required by the terms of the LOAN AGREEMENT until any applicable existing INTEREST PERIODS have
expired.

d. Interest Periods. There shall be no more than eight (8) INTEREST PERIODS
outstanding at any one time. No INTEREST PERIOD may expire after the MATURITY DATE.

e. Availability. If the REQUIRED LENDERS determine at any time that a
REGULATORY CHANGE or a change in market conditions has made it impractical for the LENDERS to offer
pricing based on the ADJUSTED LIBOR RATE, the ADMINISTRATIVE AGENT may give notice of such
determination to the BORROWER, and all advances which are then accruing interest at an ADJUSTED
LIBOR RATE shall, on the last day(s) of the then applicable current INTEREST PERIOD(S)
automatically and without further notice, begin to accrue interest at the ADJUSTED BASE RATE.
Until such time as the REQUIRED LENDERS determine that a REGULATORY CHANGE or a change in market
conditions has again made it practical for the LENDERS to offer pricing at the ADJUSTED LIBOR RATE,
the LENDERS will not be obligated to further offer pricing based upon the ADJUSTED LIBOR RATE, and
any notice from the BORROWER requesting such a rate option will be ineffective.

f. Breakage Costs. The BORROWER agrees to compensate the LENDERS from time
to time, upon demand from any LENDER through the ADMINISTRATIVE AGENT, for all losses, expenses,
lost earnings, costs and liabilities (including, without limitation, all interest paid to lenders
of funds borrowed by the LENDERS to carry LIBOR BORROWINGS) which any of the LENDERS sustains if:
any repayment or prepayment of any LIBOR BORROWINGS (including, without limitation, any payment
resulting from the acceleration of the LOANS in accordance with the terms of this AGREEMENT or as a
result of any mandatory prepayments required by the terms of this AGREEMENT) or any conversion of a
LIBOR BORROWING for any reason occurs on a date which is not the last day of the applicable
INTEREST PERIOD; or any failure by the BORROWER to borrow a LIBOR BORROWING or convert a BASE RATE
BORROWING to a LIBOR BORROWING on the date for such borrowing or conversion specified in the
relevant notice of election given by the BORROWER to the LENDERS in accordance with the terms of
this AGREEMENT.

g. Termination Of Right To Elect LIBOR Borrowings. Notwithstanding anything
to the contrary set forth in this AGREEMENT, and without limiting any other rights and remedies of
the LENDERS, the REQUIRED LENDERS during any continuing DEFAULT or EVENT OF DEFAULT may suspend the
right of the BORROWER to convert any BASE RATE BORROWING into a LIBOR BORROWING or to permit any
LIBOR BORROWING to be renewed as a LIBOR BORROWING, in which case all LOANS shall be converted (on
the last days of the respective INTEREST PERIODS therefor) or continued, as the case may be, as
BASE RATE BORROWINGS.

Section 2.2.3. Calculation Of Interest. Interest shall be calculated upon
LIBOR BORROWINGS on the basis of a 360 day per year factor applied to the actual days on which
there exists an unpaid balance of the LIBOR BORROWINGS. Interest shall be calculated upon BASE
RATE BORROWINGS on the basis of a 365 or 366 days per year factor applied to the actual days on
which there exists an unpaid balance of the BASE RATE BORROWINGS.

Section 2.2.4. Default Interest. The interest rates payable upon the LOANS
may be increased during any continuing EVENT OF DEFAULT upon the authorization of the REQUIRED
LENDERS to that rate equal to the ADJUSTED BASE RATE plus two hundred (200) BASIS POINTS
until the EVENT OF DEFAULT has been cured to the satisfaction of the REQUIRED LENDERS or waived by
the ADMINISTRATIVE AGENT upon the authorization of the REQUIRED LENDERS.

Section 2.2.5. Maximum Rate Of Interest. Any provision contained in
the CREDIT DOCUMENTS to the contrary notwithstanding, the holders of the NOTES shall not be
entitled to receive or collect, nor shall the BORROWER be obligated to pay, interest, fees, or
charges thereunder in excess of the maximum rate of interest permitted by any applicable LAW, and
if any provision of this AGREEMENT, the NOTES or any of the other CREDIT DOCUMENTS is construed or
held by any court of law or GOVERNMENTAL BODY having jurisdiction to permit or require the
charging, collection or payment of any amount of interest in excess of that permitted by such LAWS,
the provisions of this Section shall control and shall override any contrary or inconsistent
provision. The intention of the parties is to at all times conform strictly with all applicable
usury requirements and other LAWS limiting the maximum rates of interest which may be lawfully
charged upon the LOANS. The interest to be paid pursuant to the NOTES shall be held subject to
reduction to the amount allowed under said usury or other laws as now or hereafter construed by the
courts having jurisdiction, and any sums of money paid in excess of the interest rate allowed by
applicable law shall be applied in reduction of the principal amount owing pursuant to the NOTES.
The BORROWER acknowledges and irrevocably stipulates for all purposes that it has been contemplated
at all times by the parties that the LAWS of the State of Maryland will govern the maximum rate of
interest that it is permissible for the LENDERS to charge the BORROWER.

Section 2.2.6. Late Payment Charges. Any payment of principal, interest or
fees due upon any of the LOANS which is received by the ADMINISTRATIVE AGENT more than fifteen (15)
calendar days after its due date shall incur a late payment charge equal to five percent (5%) of
the amount of the payment due. All late payment charges shall be payable upon the demand of the
ADMINISTRATIVE AGENT. The existence of the right by the LENDERS to receive a late payment charge
shall not be deemed to constitute a grace period or provide any right to the BORROWER to make a
payment other than on such payment’s scheduled due date.

Section 2.3. Voluntary Prepayments. Any principal balances of the LOANS
accruing interest at the ADJUSTED LIBOR RATE may be prepaid in whole or in part at any time without
penalty or premium, provided that the LENDERS are compensated for any breakage costs incurred by
the LENDERS as a result of any such repayment in accordance with the provisions of Section 2.2.2.f
of this AGREEMENT. Any principal balance of the LOANS bearing interest at the BASE RATE may be
prepaid in whole or in part at any time without penalty or premium.

Section 2.4. Mandatory Prepayments. The BORROWER shall have the obligation
to apply to the unpaid principal balances of the LOANS and all accrued interest and fees all of the
NET AVAILABLE PROCEEDS received by the BORROWER from any PREPAYMENT DISPOSITIONS, CASUALTY EVENTS,
or issuances of INDEBTEDNESS for borrowed money other than proceeds from purchase money
INDEBTEDNESS which is otherwise permitted by the terms of this AGREEMENT. The MAXIMUM AGGREGATE
LOAN AMOUNT and the COMMITMENT AMOUNTS shall be permanently reduced by the amount of each payment
of the NET AVAILABLE PROCEEDS that is applied to the unpaid principal balances of the LOANS.
Notwithstanding the foregoing, (A) an amount equal to such NET AVAILABLE PROCEEDS shall not be
required to be so applied to any of the OBLIGATIONS and to the reduction of the MAXIMUM AGGREGATE
LOAN AMOUNT and the COMMITMENT AMOUNTS so long as no DEFAULT or EVENT OF DEFAULT is then continuing
and such NET AVAILABLE PROCEEDS (i) do not exceed Five Million Dollars ($5,000,000.00) when
aggregated with all other NET AVAILABLE PROCEEDS not applied to the OBLIGATIONS and the permanent
reduction of the MAXIMUM AGGREGATE LOAN AMOUNT and the COMMITMENT AMOUNTS, and (ii) are used to
purchase replacement assets, in each case within 180 days following the date of receipt of such NET
AVAILABLE PROCEEDS, and (B) if all or any portion of such NET AVAILABLE PROCEEDS not required to be
so applied as provided above in this Section 2.4 are not so reinvested to purchase replacement
assets within such 180-day period (or such earlier date, if any, if the BORROWER determines not to
reinvest the NET AVAILABLE PROCEEDS as set forth above), an amount equal to such remaining portion
shall be applied on the last day of such period (or such earlier date, as the case may be) as
provided above in this Section 2.4 without regard to this proviso.

Section 2.5. Letters Of Credit. Subject to the terms and conditions
of this AGREEMENT, the ADMINISTRATIVE AGENT, in reliance upon the agreements of the LENDERS set
forth in Section 2.5.3 of this AGREEMENT, agrees to issue LETTERS OF CREDIT for the account of the
BORROWER on any BUSINESS DAY from the CLOSING DATE through but not including the MATURITY DATE in
such form as may be approved from time to time by the ADMINISTRATIVE AGENT provided: (a)
no DEFAULT or EVENT OF DEFAULT has occurred and is then continuing; (b) the aggregate
amount of L/C OBLIGATIONS (after giving effect to any requested issuance) shall not exceed Five
Million Dollars ($5,000,000.00); (c) the sum of the L/C OBLIGATIONS (after giving effect
to the requested issuance) plus the aggregate unpaid principal balances of the LOANS shall
not exceed the MAXIMUM AGGREGATE LOAN AMOUNT (as decreased from time to time in accordance with the
terms of this AGREEMENT); (d) no LETTER OF CREDIT shall have a term greater than one (1)
year nor an expiration date later than the MATURITY DATE; and (e) the issuance of any
requested LETTER OF CREDIT shall not conflict with or cause the ADMINISTRATIVE AGENT or any LENDER
to exceed any limits imposed by any LAWS applicable to the ADMINISTRATIVE AGENT or the LENDER.

Section 2.5.1 Procedures For Issuance Of Letters Of Credit. The BORROWER may from time
to time request that the ADMINISTRATIVE AGENT issue a LETTER OF CREDIT by delivering to the
ADMINISTRATIVE AGENT a completed letter of credit application in the standard form then being used
by the ADMINISTRATIVE AGENT. To the extent that any provisions of the ADMINISTRATIVE AGENT’S
standard form letter of credit application conflict with the provisions of this AGREEMENT, the
provisions of this AGREEMENT shall control. Upon receipt of the BORROWER’S application, the
ADMINISTRATIVE AGENT shall process such application and issue the LETTER OF CREDIT requested
thereby provided, however, that the ADMINISTRATIVE AGENT shall not be required to issue any LETTER
OF CREDIT earlier than three (3) BUSINESS DAYS after the receipt by the ADMINISTRATIVE AGENT of the
application and of all certificates, documents, and other papers and information required by the
ADMINISTRATIVE AGENT which relates thereto. The ADMINISTRATIVE AGENT shall promptly furnish a copy
of each LETTER OF CREDIT to the BORROWER and to each of the LENDERS.

Section 2.5.1. Commissions And Charges. The BORROWER shall pay to the
ADMINISTRATIVE AGENT for the account of the LENDERS a per annum fee with respect to each LETTER OF
CREDIT in an amount equal to that sum obtained by multiplying the face amount of each LETTER OF
CREDIT by the APPLICABLE PERCENTAGE for LETTERS OF CREDIT in effect on the date of the issuance of
the LETTER OF CREDIT, which fee shall be payable on the date of issuance of each LETTER OF CREDIT.
The BORROWER shall further pay or reimburse the ADMINISTRATIVE AGENT for such normal and customary
costs and expenses as are incurred or charged by the ADMINISTRATIVE AGENT in issuing, effecting
payment under, amending, extending, renewing, or otherwise administering any LETTER OF CREDIT.

Section 2.5.2. Agreement Of Lenders To Purchase Proportionate Share Of Letters
Of Credit. In order to induce the ADMINISTRATIVE AGENT to issue LETTERS OF CREDIT for the
account of the BORROWER in accordance with the terms of this AGREEMENT, each LENDER unconditionally
and irrevocably agrees to accept and purchase and hereby accepts and purchases from the
ADMINISTRATIVE AGENT, on the terms and conditions hereinafter stated, for such LENDER’S own account
and risk an undivided interest equal to such LENDER’S COMMITMENT PERCENTAGE in the ADMINISTRATIVE
AGENT’S obligations and rights under each LETTER OF CREDIT issued hereunder and the amount of each
draft paid by the ADMINISTRATIVE AGENT thereunder. Each LENDER unconditionally and irrevocably
agrees with the ADMINISTRATIVE AGENT that, if a draft is paid under any LETTER OF CREDIT for which
the ADMINISTRATIVE AGENT is not immediately reimbursed in full by the BORROWER in accordance with
the terms of this AGREEMENT, such LENDER shall pay to the ADMINISTRATIVE AGENT upon demand by the
ADMINISTRATIVE AGENT of an amount equal to such LENDER’S COMMITMENT PERCENTAGE of the amount of
such draft, or any part thereof, which is not so reimbursed.

Section 2.5.3. Reimbursement Obligations Of The Borrower. The
BORROWER unconditionally and irrevocably agrees to reimburse the ADMINISTRATIVE AGENT on each date
on which the ADMINISTRATIVE AGENT notifies the BORROWER of the date and amount of a draft paid
under any LETTER OF CREDIT for the amount of such draft so paid and any taxes, charges, or other
costs or expenses incurred by the ADMINISTRATIVE AGENT in connection with such payment. If any
draft under a LETTER OF CREDIT is payable in a currency other than U.S. dollars, the BORROWER shall
reimburse the ADMINISTRATIVE AGENT for such draft by paying to the ADMINISTRATIVE AGENT the
equivalent in U.S. dollars of the amount required to purchase the currency from the ADMINISTRATIVE
AGENT at the ADMINISTRATIVE AGENT’S current selling rate of exchange in Buffalo, New York for cable
transfers to the place of payment in the currency and amount in which such draft was drawn (or if
there is no current selling rate of exchange generally offered by the ADMINISTRATIVE AGENT for
effecting such cable transfers, the amount of U.S. dollars required to be paid shall be based on
such rate as the ADMINISTRATIVE AGENT shall determine in good faith for such purpose). Interest
shall be payable on any and all amounts remaining unpaid by the BORROWER under this Section from
the date such amounts become payable (whether at stated maturity, by acceleration, or otherwise)
until payment in full at the BASE RATE. Each drawing under any LETTER OF CREDIT shall be deemed to
automatically constitute a request by the BORROWER to the ADMINISTRATIVE AGENT for a BASE RATE
BORROWING under the LOANS in the amount of such drawing to be made on the date on which the
ADMINISTRATIVE AGENT notifies the BORROWER of the drawing, and the proceeds of such BASE RATE
BORROWING shall be applied automatically by the LENDER to satisfy the BORROWER’S reimbursement
obligations set forth in this Section.

Section 2.5.4. Borrower’s Reimbursement Obligations Are Absolute. The
BORROWER’S reimbursement obligations hereunder shall be absolute and unconditional under any and
all circumstances and irrespective of any set-off, counterclaim or defense to payment which the
BORROWER may have or has had against the ADMINISTRATIVE AGENT, the LENDERS, or any beneficiary of a
LETTER OF CREDIT. The BORROWER agrees that neither the ADMINISTRATIVE AGENT nor any of the LENDERS
shall be responsible for, nor shall the BORROWER’S duties and obligations hereunder under the LOAN
DOCUMENTS be affected by, among other things, the form, validity, sufficiency, accuracy,
genuineness or legal effect of documents or of any endorsements thereon, even though such documents
shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the
BORROWER and any beneficiary of any LETTER OF CREDIT or any other party to which such LETTER OF
CREDIT may be transferred or any claims whatsoever of the BORROWER against any beneficiary of such
LETTER OF CREDIT or any such transferee. Neither the ADMINISTRATIVE AGENT nor the LENDERS shall be
liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any
message or advice, however transmitted, in connection with any LETTER OF CREDIT. The BORROWER
agrees that any action taken or omitted by the ADMINISTRATIVE AGENT or the LENDERS under or in
connection with any LETTER OF CREDIT or the related drafts or documents shall be binding on the
BORROWER and shall not result in any liability of the ADMINISTRATIVE AGENT or the LENDERS to the
BORROWER, absent the gross negligence or wilful misconduct of the ADMINISTRATIVE AGENT or the
LENDERS.

Section 2.6. Pro Rata Treatment And Payments.

Section 2.6.1. Distribution Of Payments To Lenders. Except as otherwise
expressly provided to the contrary by the terms of this AGREEMENT, all payments (including
prepayments) to be made by the BORROWER hereunder, whether on account of principal, interest, fees
or otherwise shall be made without set-off or counterclaim and shall be made prior to 12:00 Noon
Buffalo, New York time on the due date thereof to the ADMINISTRATIVE AGENT for the accounts of the
LENDERS at the ADMINISTRATIVE AGENT’S offices in Buffalo, New York, in immediately available U.S.
Dollars. The ADMINISTRATIVE AGENT shall distribute such payments to the LENDERS entitled to
receive the same promptly upon receipt in like funds as received.

Section 2.6.2. Funding Of Loans. The LENDERS agree that the ADMINISTRATIVE
AGENT may assume that each LENDER will fund its pro rata portion of each borrowing requested by the
BORROWER in accordance with the terms of this AGREEMENT and that the ADMINISTRATIVE AGENT may, in
reliance upon such assumption, make available to the BORROWER a corresponding amount. If such
amount is not funded and made available to the ADMINISTRATIVE AGENT by the time required hereunder,
any LENDER not making such timely funding shall pay to the ADMINISTRATIVE AGENT on demand such
amount with interest thereon at a rate equal to the interest rate applicable to such borrowing. If
such LENDER’S portion of such borrowing is not made available to the ADMINISTRATIVE AGENT within
three (3) BUSINESS DAYS of the date required for funding, the ADMINISTRATIVE AGENT shall be
entitled to recover from any such LENDER the unfunded amount together with interest thereon
calculated at the fluctuating interest rate equal to the ADJUSTED BASE RATE plus two
hundred (200) BASIS POINTS. A certificate of the ADMINISTRATIVE AGENT submitted to any LENDER with
respect to any amounts owing under this Section shall be conclusive in the absence of manifest
error.

Section 2.6.3. Ratable Sharing. Each borrowing by the BORROWER and each
payment of principal or interest (including prepayments) made by the BORROWER upon the unpaid
balances of the LOANS shall be shared ratably by the LENDERS in accordance with their respective
COMMITMENT PERCENTAGES. Any reduction in the MAXIMUM AGGREGATE LOAN AMOUNT shall be made ratably
among the LENDERS in accordance with their respective COMMITMENT PERCENTAGES.

Section 2.7. Application Of Payments. Except as expressly required to the
contrary by the terms of this AGREEMENT, all payments received upon the LOANS may be applied first
to SECURED PARTY EXPENSES, next to late payment charges, then to accrued interest and the unpaid
principal balances of the LOANS, or in such other order as elected by the REQUIRED LENDERS.

Section 2.8. Increased Costs And Reduced Return.

Section 2.8.1. Yield Protection. If the adoption or change of any LAW,
rule, or any change in the interpretation or administration thereof by any GOVERNMENTAL AUTHORITY,
central bank, or comparable agency charged with the interpretation or administration thereof, or
compliance by any LENDER with any request or directive (whether or not having the force of law) of
any such GOVERNMENTAL AUTHORITY, central bank, or comparable agency or any REGULATORY CHANGE after
the date of CLOSING: (a) subjects such LENDER to any tax, duty, or other charge with
respect to any LOAN or NOTE, or changes the basis of taxation of any amounts payable to such LENDER
under this AGREEMENT or any NOTE in respect of any LOAN or otherwise with respect to any
OBLIGATIONS (other than taxes imposed on the overall net income of such LENDER by the jurisdiction
in which such LENDER has its principal office); (b) imposes, modifies, or deems
applicable any reserve, special deposit, assessment, compulsory loan, or similar requirement
(other than the RESERVE REQUIREMENT utilized in the determination of the ADJUSTED LIBOR RATE)
relating to any extensions of credit or other assets of, or any deposits with or other liabilities
or commitments of, such LENDER, including the applicable LOANS extended by such LENDER hereunder or
any other OBLIGATIONS owing to such LENDER; or (c) imposes on such LENDER or the
applicable interbank market any other condition affecting this AGREEMENT or any NOTE or any
OBLIGATION or any of such extensions of credit or liabilities or commitments or the costs of
deposits maintained by any LENDER in obtaining funds to carry any of the LOANS or OBLIGATIONS; and
the result of any of the foregoing is to increase the cost to such LENDER of the making, converting
into, continuing, or maintaining or participating in any LOAN or to reduce any yield or sum
received or receivable by such LENDER under this AGREEMENT or any NOTE with respect to any LOAN or
other OBLIGATION, then the BORROWER shall pay to such LENDER on demand such amount or amounts as
will compensate such LENDER for such increased cost or reduction.

Section 2.8.2. Changes In Capital Adequacy Requirements. If any LENDER
determines that the adoption or change of any CAPITAL ADEQUACY REQUIREMENT or change in the
interpretation or administration thereof by any GOVERNMENTAL AUTHORITY, central bank, or comparable
agency charged with the interpretation or administration thereof, or any request or directive
regarding capital adequacy (whether or not having the force of law) of any such GOVERNMENTAL
AUTHORITY, central bank, or comparable agency after the date hereof has or would have the effect of
reducing the rate of return on the capital of such LENDER or any corporation controlling such
LENDER as a consequence of such LENDER’S obligations hereunder to a level below that which such
LENDER or such corporation could have achieved but for such adoption, change, request, or directive
(taking into consideration its policies with respect to capital adequacy), then from time to time
upon demand the BORROWER shall pay to such LENDER such additional amount or amounts as will
compensate such LENDER for such reduction.

Section 2.8.3. Compensation To Lenders. Any LENDER claiming compensation
under this Section shall furnish to the BORROWER and to the ADMINISTRATIVE AGENT a statement
setting forth in reasonable detail the reason and the additional amount or amounts to be paid to
such LENDER hereunder and the calculation thereof which shall be conclusive in the absence of
manifest error. In determining such amount, such LENDER may use any reasonable averaging and
attribution methods.

Section 2.9. Taxes.

Section 2.9.1. No Deductions For Taxes. All payments by the BORROWER to the
SECURED PARTIES in accordance with this AGREEMENT, any of the NOTES, or any other CREDIT DOCUMENT
shall be made without deduction or withholding for any TAXES. In addition, the BORROWER shall pay
all OTHER TAXES.

Section 2.9.2. Adjustments For Taxes; Obligation To Pay Taxes. If the
BORROWER is required by LAW to deduct or withhold any TAXES or OTHER TAXES from or in respect of
any sum payable to any secured party, then: (a) the sum payable shall be increased as
necessary so that, after making all required deductions and withholdings (including deductions and
withholdings applicable to additional sums payable under this Section), such LENDER or the
ADMINISTRATIVE AGENT, as the case may be, receives and retains an amount equal to the sum it would
have received and retained had not such deductions or withholdings been made; (b) the
BORROWER shall make such deductions and withholdings; and (c) the BORROWER shall pay the
full amount deducted or withheld to the relevant taxing authority or other authority in accordance
with applicable LAWS.

Section 2.9.3. Indemnification. The BORROWER agrees to indemnify and
hold harmless each of the SECURED PARTIES for the full amount of TAXES and OTHER TAXES in the
amount necessary to preserve the after-tax yield that each LENDER would have received if such TAXES
or OTHER TAXES, as the case may be, had not been imposed, and any liability (including penalties,
interest, additions to tax and expenses) arising therefrom or with respect thereto, whether or not
such TAXES or OTHER TAXES, as the case may be, were correctly or legally asserted. Payment under
this indemnification shall be made by the BORROWER within thirty (30) days after the date the
applicable SECURED PARTY makes written demand therefor.

Section 2.9.4. Receipts. Within thirty (30) days after the date of any
payment by the BORROWER of TAXES or OTHER TAXES, the BORROWER shall furnish to each applicable
SECURED PARTY the original or a certified copy of a receipt evidencing payment thereof, or other
evidence of payment satisfactory to such SECURED PARTY.

Section 2.9.5. Foreign Lenders. Each LENDER organized under the laws of a
jurisdiction outside the United States shall from time to time if requested in writing by the
BORROWER, provide the BORROWER and the ADMINISTRATIVE AGENT with: (a) Internal Revenue
Service Form 1001 or 4224, as appropriate (or if such LENDER is not a “bank” or other PERSON
described in Section 881(c)(3) of the CODE and cannot deliver either Internal Revenue Service Form
1001 or 4224 pursuant to clause (a) above, a Certificate of Non-Bank Status), or any successor form
prescribed by the Internal Revenue Service, certifying that such LENDER is entitled to benefits
under an income tax treaty to which the United States is a party which establishes such LENDER is
not subject to withholding tax on payments of interest or certifying that the income receivable
pursuant to this AGREEMENT is effectively connected with the conduct of a trade or business in the
United States; Internal Revenue Service Form W-8 or W-9, as appropriate, or any successor form
prescribed by the Internal Revenue Service; and (c) any other form or certificate
required by any taxing authority (including any certificate required by Sections 871(h) and 881(c)
of the CODE), certifying that such LENDER is entitled to an exemption from a tax on payments made
upon any of the OBLIGATIONS.

Section 2.9.6. Delivery Of Forms And Certificates. Each LENDER required to
deliver any forms, certificates or other evidence with respect to United States federal income tax
withholding matters pursuant to this Section hereby agrees, from time to time after the initial
delivery by such LENDER of such forms, certificates or other evidence, that whenever a lapse in
time or change in circumstances renders such forms, certificates or other evidence obsolete or
inaccurate in any material respect, such LENDER shall promptly deliver to the ADMINISTRATIVE AGENT
and to the BORROWER two (2) new original copies of Internal Revenue Service Form 1001 or 4224, as
appropriate, a Certificate of Non-Bank Status, or Internal Revenue Service Form W-8 or W-9, as
appropriate, as the case may be, properly completed and duly executed by such LENDER, together with
any other certificate or statement of exemption required in order to confirm or establish that such
LENDER is not subject to deduction or withholding of United States federal income tax with respect
to payments to such LENDER under the CREDIT DOCUMENTS, or such LENDER shall notify the
ADMINISTRATIVE AGENT and the BORROWER of its inability to deliver any such forms, certificates or
other evidence.

Section 2.9.7. Survival After Repayment. The payment and indemnification
obligations of the BORROWER under this entire Section 2.9 shall survive the termination of this
AGREEMENT and the repayment of the OBLIGATIONS.

Section 2.10. Payments To Administrative Agent. The BORROWER shall pay to
the ADMINISTRATIVE AGENT for the ADMINISTRATIVE AGENT’S own account the fees and expenses required
by the LETTER AGREEMENT.

Section 2.11. Up-Front Fee. The BORROWER shall pay to the ADMINISTRATIVE
AGENT for the pro rata accounts of the LENDERS on or before CLOSING a
non-refundable and unconditional up-front fee of Two Hundred Two Thousand Five Hundred Dollars
($202,500.00), which shall be the absolute property of the LENDERS upon payment. The up-front fee
shall not be considered to be a payment of any of the SECURED PARTY EXPENSES incurred in connection
with the LOANS and shall be paid independent of the amount of proceeds of the LOANS ultimately
advanced to the BORROWER.

Section 2.12. Payments. All payments received by the SECURED PARTIES
which are to be applied to reduce the OBLIGATIONS shall be provisional and shall not be considered
final unless and until such payment is not subject to avoidance under any provision of the
United States Bankruptcy Code, as amended, including Sections 547 and 550, or any state law
governing insolvency or creditors’ rights. If any payment is avoided or set aside under any
provision of the United States Bankruptcy Code, including Sections 547 and 550, or any
state law governing insolvency or creditors’ rights, the payment shall be considered not to have
been made for all purposes of this AGREEMENT and the SECURED PARTIES shall adjust their respective
records to reflect the fact that the avoided payment was not made and has not been credited against
the OBLIGATIONS.

Section 2.13. Advancements. If the BORROWER fails to perform any of its
agreements or covenants contained in this AGREEMENT or if the BORROWER fails to protect or preserve
the COLLATERAL or the status and priority of the security interests of the SECURED PARTIES in the
COLLATERAL, and such failure shall remain uncured for three (3) BUSINESS DAYS after the
ADMINISTRATIVE AGENT shall have notified the BORROWER thereof, the ADMINISTRATIVE AGENT for the
account of the LENDERS may make advances to perform the same on behalf of the BORROWER to protect
or preserve the COLLATERAL or the status and priority of the security interests of the SECURED
PARTIES in the COLLATERAL, and all sums so advanced shall immediately upon advance become secured
by the security interests granted in this AGREEMENT, and shall become part of the principal amount
owed to the LENDERS with interest to be assessed at the ADJUSTED BASE RATE plus two hundred (200)
BASIS POINTS. The BORROWER shall repay on demand all sums so advanced on the BORROWER’S behalf,
plus all expenses or costs incurred by the ADMINISTRATIVE AGENT, on account of the LENDERS,
including reasonable legal fees, with interest thereon. The provisions of this Section shall not
be construed to prevent the institution of the rights and remedies of the ADMINISTRATIVE AGENT upon
the occurrence of an EVENT OF DEFAULT. The authorization contained in this Section is not intended
to impose any duty or obligation on the ADMINISTRATIVE AGENT to perform any action or make any
advancement on behalf of the BORROWER and is intended to be for the sole benefit and protection of
the LENDERS.

ARTICLE 3

SECURITY FOR THE OBLIGATIONS

The payment, performance and satisfaction of the OBLIGATIONS shall be secured by the following
assurances of payment and security.

Section 3.1. Grant Of Security Interests. In order to secure the repayment
and performance of all OBLIGATIONS, both currently existing and arising in the future, the BORROWER
grants to the ADMINISTRATIVE AGENT for the benefit of the SECURED PARTIES, and assigns as
collateral to the ADMINISTRATIVE AGENT for the benefit of the SECURED PARTIES, an immediate and
continuing security interest in and to the COLLATERAL. The BORROWER further pledges, hypothecates
and grants to the SECURED PARTIES a continuing security interest in and to, all amounts that may be
owing at any time and from time to time by any of the SECURED PARTIES to the BORROWER in any
capacity, including but not limited to any balance or share belonging to the BORROWER of any
deposit or other account with any of the SECURED PARTIES, which security interest shall be
independent of and in addition to any right of set-off to which the SECURED PARTIES may be
entitled.

Section 3.2. Proceeds And Products. The security interests provided for
herein shall apply to the proceeds, including but not limited to insurance proceeds, and the
products of the COLLATERAL.

Section 3.3. Priority Of Security Interests. Each of the LIENS granted by
the BORROWER to the SECURED PARTIES pursuant to any of the CREDIT DOCUMENTS shall be perfected
first priority LIENS, except for PERMITTED LIENS which by operation of law or the written consent
of the ADMINISTRATIVE AGENT constitute prior encumbrances.

Section 3.4. Future Advances. The LIENS granted by the BORROWER to
the SECURED PARTIES pursuant to the CREDIT DOCUMENTS shall secure all current and all future
advances made by the SECURED PARTIES to the BORROWER, or for the account or benefit of the
BORROWER. The SECURED PARTIES may advance or readvance upon repayment by the BORROWER all or any
portion of the sums loaned to the BORROWER and any such advance or readvance shall be fully secured
by the LIENS created by the CREDIT DOCUMENTS.

Section 3.5. Lock Box. Upon the written request of the ADMINISTRATIVE
AGENT, the BORROWER shall instruct all of its ACCOUNT DEBTORS during any continuing EVENT OF
DEFAULT to make all payments on the BORROWER’S RECEIVABLES to a post office box to which the
ADMINISTRATIVE AGENT alone shall have sole access. All proceeds made to such post office box shall
periodically be withdrawn by the ADMINISTRATIVE AGENT and applied toward payment of all or any part
of the OBLIGATIONS, whether or not then due, in such order of application as the ADMINISTRATIVE
AGENT may determine. The ADMINISTRATIVE AGENT shall have no obligation to provide any provisional
or other credit for any deposited funds which are not collected funds free of any rights of return.

Section 3.6. Collection Of Receivables By Administrative Agent. The
ADMINISTRATIVE AGENT shall have the right during any continuing EVENT OF DEFAULT to send notices of
assignment or notices of the SECURED PARTIES’ security interests to the ACCOUNT DEBTORS or any
third party holding or otherwise concerned with any of the COLLATERAL, and thereafter the
ADMINISTRATIVE AGENT shall have the sole right to collect the RECEIVABLES and to take possession of
the COLLATERAL and RECORDS relating thereto for the benefit of the SECURED PARTIES. All of the
SECURED PARTIES’ collection expenses shall be charged to the BORROWER’S accounts and added to the
OBLIGATIONS. During any continuing EVENT OF DEFAULT, the ADMINISTRATIVE AGENT shall have the right
to receive, indorse, assign and deliver in the ADMINISTRATIVE AGENT’S name or the BORROWER’S name
all checks, drafts and other instruments for the payment of money relating to the RECEIVABLES, and
the BORROWER hereby waives notice of presentment, protest and non-payment of any instrument so
endorsed. The BORROWER hereby constitutes the ADMINISTRATIVE AGENT or the ADMINISTRATIVE AGENT’S
designee as its attorney-in-fact with power during any continuing EVENT OF DEFAULT with respect to
the RECEIVABLES: (a) to indorse its name upon all notes, acceptances, checks, drafts,
money orders or other evidences of payment of COLLATERAL that may come into the ADMINISTRATIVE
AGENT’S possession; to sign its name on any invoices relating to any of the RECEIVABLES, drafts
against ACCOUNT DEBTORS, assignments and verifications of RECEIVABLES and notices to ACCOUNT
DEBTORS; (c) to send verifications of RECEIVABLES to any ACCOUNT DEBTOR; (d) to
notify the Post Office to change the address for delivery of mail addressed to it to such address
as the ADMINISTRATIVE AGENT may designate; (e) to receive and open all mail addressed to
it and to remove therefrom all cash, checks, drafts and other payments of money; and (f)
to do all other acts and things necessary, proper, or convenient to carry out the terms and
conditions and purposes and intent of this AGREEMENT. All acts of such attorney or designee are
hereby ratified and approved, and such attorney or designee shall not be liable for any acts of
omission or commission, nor for any error of judgment or mistake of fact or law in accordance with
this AGREEMENT, with the exception of acts arising from wilful misconduct or gross negligence. The
power of attorney hereby granted, being coupled with an interest, is irrevocable while any of the
OBLIGATIONS remain unpaid. During any continuing EVENT OF DEFAULT, the ADMINISTRATIVE AGENT,
without notice to or consent from the BORROWER, may sue upon or otherwise collect, extend the time
of payment of or compromise or settle for cash, credit or otherwise upon any terms, any of the
RECEIVABLES or any securities, instruments or insurances applicable thereto or release the obligor
thereon. The ADMINISTRATIVE AGENT is authorized and empowered to accept the return of the goods
represented by any of the RECEIVABLES, without notice to or consent by the BORROWER, all without
discharging or in any way affecting the liability of the BORROWER under the CREDIT DOCUMENTS. The
ADMINISTRATIVE AGENT does not, by anything herein or in any assignment or otherwise, assume any of
the obligations of the BORROWER under any contract or agreement assigned to the LENDER, and the
ADMINISTRATIVE AGENT shall not be responsible in any way for the performance by the BORROWER of any
of the terms and conditions thereof.

Section 3.7. Maintenance Of Principal Accounts. As further security for the
OBLIGATIONS, the BORROWER agrees to maintain its principal operating accounts with M&T so long as
M&T is the ADMINISTRATIVE AGENT.

Section 3.8. Guaranty Agreements. Each DOMESTIC SUBSIDIARY shall execute
and deliver a GUARANTY AGREEMENT in form and substance as Exhibit 3.8(a) attached hereto, and shall
execute and deliver a Security Agreement in form and substance as Exhibit 3.8(b) attached hereto,
pursuant to which such DOMESTIC SUBSIDIARY shall: (a) secure its obligations arising from its
GUARANTY AGREEMENT; and (b) authorize the filing by the ADMINISTRATIVE AGENT of financing
statements in form and substance as Exhibit 3.8(c) attached hereto.

Section 3.9. Stock Pledge Agreement. The BORROWER shall execute and deliver
to the ADMINISTRATIVE AGENT for the benefit of the SECURED PARTIES Stock Pledge Agreements in form
and substance as Exhibit 3.9 attached hereto, pursuant to which the BORROWER shall further secure
the repayment and performance of the OBLIGATIONS by pledging: (a) all of the capital stock and
ownership interests of the BORROWER in each DOMESTIC SUBSIDIARY; and (b) the maximum amount of
capital stock and ownership interests of the BORROWER in each of its SUBSIDIARIES which are not
DOMESTIC SUBSIDIARIES that may be pledged without causing the accumulated earnings and profits of
such non-DOMESTIC SUBSIDIARIES to be included in the income of the BORROWER for United States
income tax purposes.

Section 3.10. Further Assurances. The BORROWER agrees promptly to execute
and deliver all further instruments and documents and take all further action that may be necessary
or desirable or that the ADMINISTRATIVE AGENT may reasonably request from time to time in order:
(a) to perfect and protect the security interests to be created hereby; (b) to
enable the ADMINISTRATIVE AGENT to exercise and enforce the rights and remedies of the SECURED
PARTIES hereunder in respect of the COLLATERAL; or (c) otherwise to effect the purposes
of this AGREEMENT.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

To induce the SECURED PARTIES to enter into this AGREEMENT, the BORROWER makes the
representations and warranties set forth in this Article 4. The BORROWER acknowledges the
justifiable right of the SECURED PARTIES to rely upon these representations and warranties. The
BORROWER agrees to promptly notify the ADMINISTRATIVE AGENT of the occurrence after the date of
CLOSING of any condition or event which would make any of the following representations and
warranties no longer materially accurate.

Section 4.1. Accuracy Of Information. All information submitted by or on
behalf of the BORROWER or any of the GUARANTORS in connection with any of the OBLIGATIONS was true,
accurate and complete in all material respects as of the date made and contains no knowingly false,
incomplete or misleading statements.

Section 4.2. No Litigation. Except as set forth on Schedule 4.2 attached
hereto, there are no actions, suits, citations, violations, directions, notices or proceedings
before any court or governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, affecting the BORROWER, or the assets or properties thereof, which, if
determined adversely to the BORROWER: (a) could require the BORROWER to pay over more
than One Million Dollars ($1,000,000.00) or deliver assets the value of which exceeds that sum
(whether or not the claim is considered to be covered by insurance); or (b) could
reasonably be expected to be or cause a MATERIAL ADVERSE EVENT.

Section 4.3. Liens. The LIENS granted by the BORROWER and its SUBSIDIARIES
to the SECURED PARTIES in accordance with the terms of the CREDIT DOCUMENTS will have the
priorities required by the CREDIT DOCUMENTS. No LIENS exist on any of the assets of the BORROWER
or its SUBSIDIARIES except for PERMITTED LIENS against the COLLATERAL and any LIENS against the
assets of the SUBSIDIARIES which are expressly authorized by the terms of the CREDIT DOCUMENTS.

Section 4.4. Authority; Approvals And Consents.

Section 4.4.1. Authority. The BORROWER has the legal authority to enter
into each of the CREDIT DOCUMENTS and to perform, observe and comply with all of its agreements and
obligations thereunder, including, without limitation the borrowings contemplated hereby.

Section Approvals. The execution and delivery by the BORROWER of each of the
CREDIT DOCUMENTS, the performance by the BORROWER of all of its agreements and obligations under
the CREDIT DOCUMENTS, and the borrowings contemplated by this AGREEMENT, have been duly authorized
by all necessary action and will not: (a) contravene any provision of its organizational
documents; (b) conflict with, or result in a breach of the terms, conditions or
provisions of, or constitute a default under, or result in the creation of any LIEN upon any of its
property under any agreement, trust deed, indenture, mortgage or other instrument to which it is a
party or by which it or any of its property is bound or affected (except for LIENS created for the
benefit of the SECURED PARTY); (c) violate or contravene any provision of any LAWS
(including, without limitation, Regulations T, U or X of the Board of Governors of the Federal
Reserve System) or any order, ruling or interpretation thereunder or any decree, order of judgment
of any court or GOVERNMENTAL AUTHORITY (all as from time to time in effect and applicable to the
BORROWER); or (d) require any waivers, consents or approvals by any of its creditors
which have not been obtained.

Section 4.4.3. Consents. Other than the filings and recordings required to
perfect the LIENS granted in accordance with the CREDIT DOCUMENTS, no approval, consent, order,
authorization or license by, or giving notice to, or taking any other action with respect to, any
governmental or regulatory authority or agency is required for the execution and delivery by the
BORROWER of the CREDIT DOCUMENTS or for the performance by the BORROWER of any of the agreements
and obligations thereunder.

Section 4.5. Binding Effect Of Documents, Etc. Each of the CREDIT DOCUMENTS
which the BORROWER has executed and delivered as contemplated and required to be executed and
delivered as of the date of CLOSING by this AGREEMENT, has been duly executed and delivered by the
BORROWER and is the legal, valid and binding obligation of the BORROWER and is enforceable against
the BORROWER in accordance with all stated terms.

Section 4.6. No Events Of Default. There is not currently existing any
action, event, or condition which presently constitutes a DEFAULT or an EVENT OF DEFAULT.

Section 4.7. Guaranty Agreements. The GUARANTY AGREEMENTS and the
accompanying Security Agreements are the valid and binding obligations of the GUARANTORS and are
fully enforceable against the GUARANTORS in accordance with all outstanding terms.

Section 4.8. Taxes. The BORROWER and its SUBSIDIARIES have each:
(a) filed all federal, state and local tax returns and other reports which it is required
by applicable LAWS to file prior to the date hereof and which are material to the conduct of its
business; (b) paid or caused to be paid all taxes, assessments and other governmental
charges that are due and payable prior to the date hereof unless being contested in accordance with
the procedures of Section 5.8 hereof; and (c) made adequate provisions for the payment of
such taxes, assessments or other charges accruing but not yet payable. The BORROWER has no
knowledge of any deficiency or additional assessment in connection with any taxes, assessments or
charges not provided for on the books of account of the BORROWER and its SUBSIDIARIES or reflected
in the financial statements of the BORROWER and its SUBSIDIARIES.

Section 4.9. Compliance With Laws. The BORROWER has complied in all
material respects with all applicable LAWS, including, but not limited to, all LAWS with respect
to: (a) all restrictions, specifications, or other requirements pertaining to products
that it sells or to the services it performs; (b) the conduct of its business; and
(c) the use, maintenance, and operation of the real and personal properties owned or
leased by it in the conduct of its business, except where noncompliance could not reasonably be
expected to be or result in a MATERIAL ADVERSE EVENT.

Section 4.10. Chief Places Of Business, Etc. The chief executive office,
chief place of business, and the places where the BORROWER keeps its RECORDS concerning the
COLLATERAL are set forth on Schedule 4.10 attached hereto.

Section 4.11. Location Of Inventory. The INVENTORY is located solely at the
BORROWER’S locations set forth on Schedule 4.11 attached hereto. None of the INVENTORY is stored
with or in the possession of any bailee, warehouseman, or other similar PERSON, except as
specifically disclosed on Schedule 4.11 attached hereto.

Section Subsidiaries. All of the SUBSIDIARIES of the BORROWER are identified on
Schedule 4.12 attached hereto.

Section 4.13. No Labor Agreements. The BORROWER is not subject to any
collective bargaining agreement or any agreement, contract, decree or order requiring it to
recognize, deal with or employ any PERSONS organized as a collective bargaining unit or other form
of organized labor.

Section 4.14. Approvals. The BORROWER possesses all franchises,
approvals, licenses, contracts, merchandising agreements, merchandising contracts and governmental
approvals, registrations and exemptions necessary for it lawfully to conduct its business and
operation as presently conducted and as anticipated to be conducted after the date of CLOSING,
except where any such failure could not reasonably be expected to be or result in a MATERIAL
ADVERSE EVENT.

Section 4.15. Financial Statements. The financial statements of the BORROWER
and its SUBSIDIARIES which have been delivered to the ADMINISTRATIVE AGENT prior to the date of
this AGREEMENT, fairly present the financial condition of the BORROWER and its SUBSIDIARIES as of
the respective dates thereof and the results and operations of the BORROWER and its SUBSIDIARIES
for the fiscal periods ended on such respective dates, all in accordance with G.A.A.P. The
BORROWER has no direct or contingent liability or obligation known to the BORROWER that would be
required to be disclosed in the BORROWER’S financial statements under G.A.A.P. that are not
disclosed on the financial statements delivered to the ADMINISTRATIVE AGENT or disclosed on
Schedule 4.15 hereto. There has been no material adverse change in the financial condition of the
BORROWER and its SUBSIDIARIES since July 31, 2005.

Section 4.16. Solvency. The BORROWER will be SOLVENT both before and after
CLOSING, after giving effect to the OBLIGATIONS and all of the BORROWER’S liabilities.

Section 4.17. Fair Labor Standards Act. The BORROWER has complied in all
material respects with the Fair Labor Standards Act of 1938, as amended, except to the
extent that any noncompliance would not represent a MATERIAL ADVERSE EVENT.

Section 4.18. Employee Benefit Plans.

Section 4.18.1. Compliance. The BORROWER and its ERISA AFFILIATES are in
compliance in all material respects with all applicable provisions of ERISA and the regulations
thereunder and of the CODE with respect to all EMPLOYEE BENEFIT PLANS, except to the extent that
any noncompliance would not represent a MATERIAL ADVERSE EVENT.

Section 4.18.2. Absence Of Termination Event. No TERMINATION EVENT has
occurred or is reasonably expected to occur with respect to any GUARANTEED PENSION PLAN.

Section 4.18.3. Actuarial Value. The actuarial present value (as defined in
Section 4001 of ERISA) of all benefit commitments (as defined in Section 4001 of ERISA) under each
GUARANTEED PENSION PLAN does not exceed the assets of that plan.

Section 4.18.4. No Withdrawal Liability. Except as set forth on Schedule
4.18.4 attached hereto, neither the BORROWER nor any of its ERISA AFFILIATES has incurred or
reasonably expects to incur any withdrawal liability under ERISA in connection with any
MULTIEMPLOYER PLANS.

Section 4.19. Environmental Conditions. Except as disclosed in Schedule
4.19 attached hereto:

Section 4.19.1. Existence Of Permits. The BORROWER maintains all material
legally required governmental permits, licenses, variances, clearances and all other necessary
approvals required under the ENVIRONMENTAL LAWS for use of the FACILITIES and the operation and
conduct of its business as currently conducted (including, but not limited to, the handling,
transporting, treating, storage, disposal, discharge, or RELEASE of REGULATED SUBSTANCES, if any,
into, on or from the environment (including, but not limited to, any air, water, or soil)) from all
applicable federal, state, and local governmental authorities including, but not limited to, any
and all appropriate federal or state environmental protection agencies and other county or city
departments (collectively, the “EPA PERMITS”).

Section 4.19.2. Compliance With Permits. Each issued EPA PERMIT is in full
force and effect, has not expired or been suspended, denied or revoked, and is not under challenge
by any PERSON. The BORROWER is in compliance in all material aspects with each issued EPA PERMIT.

Section 4.19.3. No Litigation. Neither the BORROWER nor any of the
FACILITIES is the subject of any private or governmental litigation, or to the knowledge of the
BORROWER, threatened litigation, LIEN or material judicial or administrative notice, order or
action under ENVIRONMENTAL LAWS involving the BORROWER or any of the FACILITIES relating to
REGULATED SUBSTANCES or material liabilities under ENVIRONMENTAL LAWS.

Section 4.19.4. No Releases. To the best knowledge of the BORROWER, there
has been no RELEASE into, on or from any of the FACILITIES and no REGULATED SUBSTANCES are located
on or have been treated, stored, processed, disposed of, handled or transported to or from, any of
the FACILITIES in material violation of any ENVIRONMENTAL LAWS. To the best knowledge of the
BORROWER, no REGULATED SUBSTANCES have been treated, stored, disposed, RELEASED, located,
discharged, possessed, managed, processed, or otherwise handled in the operation or conduct of the
BORROWER’S business in material violation of any ENVIRONMENTAL LAWS. The BORROWER is in compliance
in all material respects with all ENVIRONMENTAL LAWS affecting the FACILITIES and the BORROWER’S
business.

Section 4.19.5. Transportation. The BORROWER does not transport, in any
manner, any REGULATED SUBSTANCES except in the ordinary course of the BORROWER’S business in
material compliance with all ENVIRONMENTAL LAWS.

Section 4.19.6. No Violation Notices. The BORROWER has not received any
notices that any REGULATED SUBSTANCES transported from any FACILITY have been disposed of in
material violation of any ENVIRONMENTAL LAWS.

Section 4.19.7. No Notice Of Violations. The BORROWER has not received
written notice of any circumstances which would be likely to result in any material obligation
under any ENVIRONMENTAL LAW to investigate or remediate any REGULATED SUBSTANCES in, on or under
any of the FACILITIES.

For purposes of this Section 4.19, a matter is “material” if the BORROWER’S liability in connection
with a breach of the relevant representation would reasonably be expected to exceed One Hundred
Thousand Dollars ($100,000).

Section 4.20. Investment Company Act. The BORROWER is not subject to
regulation as an “investment company” under the Investment Company Act of 1940, as amended.

Section 4.21. Public Utility Holding Company Act. The BORROWER is not a
“holding company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a
“holding company” or of a “subsidiary company” of a “holding company” within the meaning of the
Public Utility Holding Company Act of 1935, as amended.

ARTICLE 5

AFFIRMATIVE COVENANTS

The BORROWER agrees during the term of this AGREEMENT and while any OBLIGATIONS are
outstanding and unpaid to do and perform each of the acts and promises set forth in this Article 5:

Section 5.1. Payment And Performance. All OBLIGATIONS shall be paid and
performed in full when and as due.

Section 5.2. Insurance. The BORROWER agrees to obtain and maintain
such business interruption, casualty, liability, products liability and other insurance coverages
as are reasonable, customary and prudent for businesses engaged in activities similar to the
business activities of the BORROWER. Without limitation to the foregoing, the BORROWER agrees to
maintain for all of its assets and properties, whether real, personal, or mixed and including but
not limited to the COLLATERAL, fire and extended coverage casualty insurance in amounts
satisfactory to the ADMINISTRATIVE AGENT in the exercise of its reasonable discretion and
sufficient to prevent any co-insurance liability (which amount shall be the full insurable value of
the assets and properties insured unless the ADMINISTRATIVE AGENT in writing agrees to a lesser
amount), naming the ADMINISTRATIVE AGENT as sole loss payee with respect to the COLLATERAL, with
insurance companies and upon policy forms containing standard mortgagee clauses which are
acceptable to and approved by the ADMINISTRATIVE AGENT. The BORROWER shall submit to the
ADMINISTRATIVE AGENT reasonable evidence of such casualty insurance policies and of the payment of
the premiums due on the same. The casualty insurance policies shall be endorsed so as to make them
noncancellable unless thirty (30) days prior written notice of cancellation is provided to the
ADMINISTRATIVE AGENT.

Section 5.3. Books And Records. The BORROWER shall notify the
ADMINISTRATIVE AGENT in writing if the BORROWER modifies or changes its method of accounting in any
material respect or enters into, modifies, or terminates any agreement presently existing, or at
any time hereafter entered into with any third party accounting firm for the preparation and/or
storage of the BORROWER’S accounting records.

Section 5.4. Collection Of Accounts; Sale Of Inventory. The BORROWER shall
only collect its RECEIVABLES and sell its INVENTORY in the ordinary course of the BORROWER’S
business.

Section 5.5. Notice Of Litigation And Proceedings. The BORROWER shall give
prompt notice to the ADMINISTRATIVE AGENT of any action, suit, citation, violation, direction,
notice or proceeding before any court or governmental department, commission, board, bureau, agency
or instrumentality, domestic or foreign, affecting the BORROWER, or the assets or properties
thereof, which, if determined adversely to the BORROWER: (a) could require the BORROWER
to pay over more than One Million Dollars ($1,000,000.00) or deliver assets the value of which
exceeds that sum (whether or not the claim is considered to be covered by insurance); or
(b) could reasonably be expected to be or cause a MATERIAL ADVERSE EVENT.

Section 5.6. Payment Of Liabilities To Third Persons. The BORROWER shall
pay when and as due, or within applicable grace periods, all liabilities due to third persons which
either individually or in the aggregate unpaid amount exceed Two Million Dollars ($2,000,000.00),
except when the amount thereof is being contested in good faith by appropriate proceedings and with
adequate reserves therefor being set aside.

Section 5.7. Notice Of Change Of Business Location. The BORROWER shall
notify the ADMINISTRATIVE AGENT thirty (30) days in advance of: (a) any change in the
location of its existing offices or place of business; (b) the establishment of any new,
or the discontinuation of any existing, place of business; and (c) any change in or
addition to the locations at which the COLLATERAL is kept. Prior to moving any COLLATERAL to any
location not owned by the BORROWER (other than deliveries to ACCOUNT DEBTORS of sold or leased
items), the BORROWER shall obtain and deliver to the ADMINISTRATIVE AGENT an agreement, in form and
substance acceptable to the ADMINISTRATIVE AGENT, pursuant to which the owner of such location
shall: (i) subordinate any rights which it may have, or thereafter may obtain, in any of the
COLLATERAL to the rights and security interests of the SECURED PARTIES in the COLLATERAL; (ii)
acknowledge the security interests of the SECURED PARTIES in the COLLATERAL; and (iii) allow the
ADMINISTRATIVE AGENT access to the COLLATERAL in order to remove the COLLATERAL from such location.
In the event any COLLATERAL is stored with a warehousemen or other bailee, and the COLLATERAL is
evidenced by a negotiable document of title, the BORROWER shall immediately deliver the document of
title to the ADMINISTRATIVE AGENT.

Section 5.8. Payment Of Taxes. The BORROWER shall pay or cause to be paid
when and as due all taxes, assessments and charges or levies imposed upon it or on any of its
property or which it is required to withhold and pay over to the taxing authority or which it must
pay on its income, except where contested in good faith, by appropriate proceedings and at its own
cost and expense; provided, however, that the BORROWER shall not be deemed to be contesting in good
faith by appropriate proceedings unless: (a) such proceedings operate to prevent the
taxing authority from attempting to collect the taxes, assessments or charges; (b) the
COLLATERAL is not subject to sale, forfeiture or loss during such proceedings; (c) the
BORROWER’S contest does not subject the SECURED PARTIES to any claim by the taxing authority or
any other person; (d) the BORROWER establishes appropriate reserves in accordance with
G.A.A.P. for the payment of all taxes, assessments, charges, levies, legal fees, court costs and
other expenses for which the BORROWER would be liable if unsuccessful in the contest; (e)
the BORROWER prosecutes the contest continuously to its final conclusion; and (f) at the
conclusion of the proceedings, the BORROWER promptly pays all amounts determined to be payable,
including but not limited to all taxes, assessments, charges, levies, legal fees and court costs.

Section 5.9. Inspections Of Records. The BORROWER shall permit
representatives of the ADMINISTRATIVE AGENT access to the BORROWER’S places of business, at
intervals and at such times as determined by the ADMINISTRATIVE AGENT, to inspect the COLLATERAL
and to review and make extracts from or photocopies of the books and records of the BORROWER;
provided, however, that in the absence of any continuing DEFAULT or EVENT OF
DEFAULT, such inspections and reviews shall be conditioned upon reasonable advance notice to the
BORROWER and at times reasonably convenient to the BORROWER. The BORROWER agrees to reimburse the
ADMINISTRATIVE AGENT for the reasonable audit fees and other expenses incurred by the
ADMINISTRATIVE AGENT in connection with such inspections; provided, however, that unless a DEFAULT
or an EVENT OF DEFAULT shall have occurred and be continuing, the BORROWER shall have no obligation
to pay for more than one audit or inspection in any single twelve-month period.

Section 5.10. Documentation Of Collateral. The BORROWER agrees that upon
the request of the ADMINISTRATIVE AGENT, the BORROWER will provide the ADMINISTRATIVE AGENT with:
(a) written statements or schedules identifying and describing the COLLATERAL, and all
additions, substitutions, and replacements thereof, in such detail as the ADMINISTRATIVE AGENT may
reasonably require; (b) copies of ACCOUNT DEBTORS’ invoices or billing statements;
(c) evidence of shipment or delivery of GOODS or merchandise to or performance of
services for ACCOUNT DEBTORS; and (d) such other schedules and information as the
ADMINISTRATIVE AGENT reasonably may require. The items to be provided under this Section shall be
in form satisfactory to the ADMINISTRATIVE AGENT in its reasonable discretion and are to be
executed and delivered to the ADMINISTRATIVE AGENT from time to time solely for the ADMINISTRATIVE
AGENT’S convenience in maintaining RECORDS of the COLLATERAL.

Section 5.11. Reporting Requirements. The BORROWER shall submit the
following items to the ADMINISTRATIVE AGENT:

Section 5.11.1. Inventory Reports. On or before the date of CLOSING and
thereafter as periodically requested by the ADMINISTRATIVE AGENT, reports of INVENTORY on such
reporting forms as are required by the ADMINISTRATIVE AGENT from time to time, certified to be
accurate and correct by the chief financial officer of the BORROWER, which reports shall be
compiled in a manner acceptable to the ADMINISTRATIVE AGENT in its reasonable discretion.

Section 5.11.2. Receivables And Accounts Payable Reports. On or before the
date of CLOSING and thereafter as periodically requested by the ADMINISTRATIVE AGENT :
(a) a report and aging of the BORROWER’S ACCOUNTS; and (b) an accounts payable
report and aging, both in form reasonably acceptable to the ADMINISTRATIVE AGENT and containing
such information as the ADMINISTRATIVE AGENT may specify from time to time. Such reports shall be
accompanied by such reports, copies of sales journals, remittance reports, and other documentation
as the ADMINISTRATIVE AGENT may reasonably request from time to time.

Section 5.11.3. Quarterly Financial Statements. As soon as available and in
any event within forty-five (45) calendar days after the end of each of the first three FISCAL
QUARTERS of each FISCAL YEAR, the BORROWER shall submit to the ADMINISTRATIVE AGENT a consolidated
balance sheet of the BORROWER and its SUBSIDIARIES as of the end of such quarter, a consolidated
statement of income and retained earnings of the BORROWER and its SUBSIDIARIES for the period
commencing at the end of the previous FISCAL YEAR and ending with the end of such FISCAL QUARTER,
and a consolidated statement of cash flow of the BORROWER and its SUBSIDIARIES for the portion of
the FISCAL YEAR ended with the last day of such quarter, all in reasonable detail and stating in
comparative form the respective consolidated figures for the corresponding date and period in the
previous FISCAL YEAR and all prepared in accordance with G.A.A.P. and certified by the chief
financial officer of the BORROWER (subject to year-end adjustments).

Section 5.11.4. Annual Financial Statements. As soon as available
and in any event within ninety (90) calendar days after the end of each FISCAL YEAR of the
BORROWER, the BORROWER shall submit to the ADMINISTRATIVE AGENT a consolidated balance sheet of
the BORROWER and its SUBSIDIARIES as of the end of such FISCAL YEAR and a consolidated statement
of income and retained earnings of the BORROWER and its SUBSIDIARIES for such FISCAL YEAR, and a
consolidated statement of cash flow of the BORROWER and its SUBSIDIARIES for such FISCAL YEAR, all
in reasonable detail and stating in comparative form the respective consolidated figures for the
corresponding date and period in the prior FISCAL YEAR and all prepared in accordance with G.A.A.P.
and accompanied by an audited opinion thereon acceptable to the ADMINISTRATIVE AGENT by independent
accountants selected by the BORROWER and acceptable to the ADMINISTRATIVE AGENT.

Section 5.11.5. SEC And Other Filings. Within five (5) days after the
sending, filing, or receipt thereof, and to the extent not readily available to the public through
the internet, copies of: (a) all financial statements, reports, notices and proxy
statements that the BORROWER sends to its shareholders; and (b) all regular, periodic and
special reports, registration statements and prospectuses that the BORROWER renders to or files
with the Securities And Exchange Commission or any national securities exchange, including without
limitation each of the Forms 10-K and 10-Q filed by the BORROWER with the Securities And Exchange
Commission.

Section 5.11.6. Management Letters. Promptly upon receipt thereof, the
BORROWER shall submit to the ADMINISTRATIVE AGENT copies of any management letter or similar report
submitted to the BORROWER or any SUBSIDIARY by independent certified public accountants in
connection with the examination of the financial statements of the BORROWER or any SUBSIDIARY made
by such accountants.

Section 5.11.7. Quarterly Officer’s Certificates. Within forty-five (45)
calendar days after the end of each FISCAL QUARTER, the BORROWER shall submit to the ADMINISTRATIVE
AGENT certificates of the chief financial officer of the BORROWER certifying that: (a)
there exists no DEFAULT or EVENT OF DEFAULT, or if a DEFAULT or an EVENT OF DEFAULT exists,
specifying the nature thereof, the period of existence thereof and what action the BORROWER
proposes to take with respect thereto; (b) no material adverse change in the condition,
financial or otherwise, business, property or results of operations of the BORROWER has occurred
since the previous certificate was sent to the ADMINISTRATIVE AGENT by the BORROWER or, if any such
change has occurred, specifying the nature thereof and what action the BORROWER has taken or
proposes to take with respect thereto; (c) all insurance premiums then due have been
paid; (d) all taxes then due have been paid or, for those taxes which have not been paid,
a statement of the taxes not paid and a description of the BORROWER’S rationale therefor;
(e) no material litigation, investigation or proceedings, or injunction, writ or
restraining order not previously disclosed in writing to the ADMINISTRATIVE AGENT is pending or
threatened or, if any such litigation, investigation, proceeding, injunction, writ or order is
pending, describing the nature thereof; (f) stating whether or not the GUARANTORS and the
BORROWER are in compliance with the covenants in this AGREEMENT, including a calculation of the
financial covenants in the schedule attached to such officers’ certificates in form satisfactory to
the ADMINISTRATIVE AGENT; and (g) the BORROWER and its SUBSIDIARIES are in compliance
with the LEVERAGE RATIO and the INTEREST COVERAGE RATIO covenants set forth in Sections 6.13 and
6.14 for the most recently ended FISCAL QUARTER (with attached calculations demonstrating such
compliance). Each of such quarterly certificates shall state whether the BORROWER has made any
acquisitions, the terms of such acquisitions, and whether or not the BORROWER is in compliance with
Section 6.7 of this AGREEMENT.

Section 5.11.8. Reports To Other Creditors. Promptly after the furnishing
thereof, the BORROWER shall submit to the ADMINISTRATIVE AGENT copies of any statement or report
furnished to any other PERSON pursuant to the terms of any indenture, loan, or credit or similar
agreement and not otherwise required to be furnished to the ADMINISTRATIVE AGENT pursuant to any
other provisions of this AGREEMENT.

Section 5.11.9. Defaults. The BORROWER shall notify the ADMINISTRATIVE
AGENT immediately of the occurrence of any DEFAULT or EVENT OF DEFAULT, setting forth in such
notice the details thereof, and the action which the BORROWER is taking or proposes to take with
respect thereto.

Section 5.11.10. Management Changes. The BORROWER shall notify the
ADMINISTRATIVE AGENT promptly of any changes in the personnel holding the positions of Chief
Executive Officer, Chief Financial Officer, or Chief Operating Officer of the BORROWER.

Section 5.11.11. General Information. In addition to the items set forth in
subparagraphs 5.11.1 through 5.11.10 above, the BORROWER agrees to submit to the ADMINISTRATIVE
AGENT such other information respecting the condition or operations, financial or otherwise, of the
BORROWER and its SUBSIDIARIES as the ADMINISTRATIVE AGENT may reasonably request from time to time.

Section 5.12. Employee Benefit Plans And Guaranteed Pension Plans.
The BORROWER will, and will cause each of its ERISA AFFILIATES to: (a) comply with all
material requirements imposed by ERISA and the CODE, applicable from time to time to any of its
GUARANTEED PENSION PLANS or EMPLOYEE BENEFIT PLANS; (b) make full payment when due of all
amounts which, under the provisions of EMPLOYEE BENEFIT PLANS or under applicable LAW, are required
to be paid as contributions thereto; (c) not permit to exist any material accumulated
funding deficiency, whether or not waived; (d) file on a timely basis all reports,
notices and other filings required by any governmental agency with respect to any of its EMPLOYEE
BENEFITS PLANS; (e) make any payments to MULTIEMPLOYER PLANS required to be made under
any agreement relating to such MULTIEMPLOYER PLANS, or under any LAW pertaining thereto;
(f) not amend or otherwise alter any GUARANTEED PENSION PLAN if the effect would be to
cause the actuarial present value of all benefit commitments under any GUARANTEED PENSION PLAN to
be less than the current value of the assets of such GUARANTEED PENSION PLAN allocable to such
benefit commitments; (g) furnish to all participants, beneficiaries and employees under
any of the EMPLOYEE BENEFIT PLANS, within the periods prescribed by LAW, all reports, notices and
other information to which they are entitled under applicable LAW; and (h) take no action
which would cause any of the EMPLOYEE BENEFIT PLANS to fail to meet any qualification requirement
imposed by the CODE, except to the extent that any such failure to act or comply would not be or
result in a MATERIAL ADVERSE EVENT. As used in this Section, the term “accumulated funding
deficiency” has the meaning specified in Section 302 of ERISA and Section 412 of the CODE, and the
terms “actuarial present value,” “benefit commitments” and “current value” have the meaning
specified in Section 4001 of ERISA.

Section 5.13. Compliance With Laws. Except to the extent described in
Schedule 4.19 attached hereto, the BORROWER shall comply in all material respects with all
applicable LAWS, the non-compliance with which would or could reasonably be expected to cause a
MATERIAL ADVERSE EVENT, including, but not limited to, all LAWS with respect to: (a) all
restrictions, specifications, or other requirements pertaining to products that it sells or to the
services it performs; (b) the conduct of its business; (c) the use,
maintenance, and operation of the real and personal properties owned or leased by it in the conduct
of its business; and (d) the obtaining and maintenance of all necessary licenses,
franchises, permits and governmental approvals, registrations and exemptions necessary to engage in
its business. Without limiting the generality of the preceding sentence, the BORROWER shall:
(i) comply in all material respects with, and ensure such compliance by all tenants and
subtenants, if any, with, all applicable ENVIRONMENTAL LAWS and obtain and comply in all material
respects with and maintain, and ensure that all tenants and subtenants obtain and comply with and
maintain, any and all licenses, approvals, notifications, registrations or permits required by
applicable ENVIRONMENTAL LAWS; (ii) conduct and complete all investigations, studies,
sampling and testing, and all remedial, removal and other actions required under ENVIRONMENTAL
LAWS, and promptly comply with all lawful orders and directives of any governmental authority
regarding ENVIRONMENTAL LAWS; and (iii) defend, indemnify and hold harmless the SECURED
PARTIES and their employees, agents, officers and directors, from and against any claims, demands,
penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature
known or unknown, contingent or otherwise, arising out of, or in any way relating to the violation
of, noncompliance with or liability under any ENVIRONMENTAL LAWS applicable to the operations of
the BORROWER, or any lawful orders, requirements or demands of governmental authorities related
thereto, including, without limitation, reasonable attorney’s and consultant’s fees, investigation
and laboratory fees, response costs, court costs and litigation expenses, except to the extent that
any of the foregoing directly result from the gross negligence or willful misconduct of any SECURED
PARTY or the employees, agents, officers and directors of any SECURED PARTY. The BORROWER agrees
to promptly notify the ADMINISTRATIVE AGENT of any RELEASE of a REGULATED SUBSTANCE on, to or from
any FACILITY in material violation of any ENVIRONMENTAL LAWS or of any notice received by the
BORROWER that the BORROWER or any FACILITY is not in material compliance with any ENVIRONMENTAL
LAWS. For purposes of the two immediately preceding sentences, a matter is “material” if the
BORROWER’S liability in connection with a breach of the relevant covenant would reasonably be
expected to exceed One Hundred Thousand Dollars ($100,000).

ARTICLE 6

NEGATIVE COVENANTS

The BORROWER covenants while any OBLIGATIONS are outstanding and unpaid not to do or to permit
to be done or to occur any of the acts or occurrences set forth in this Article 6 without the prior
written authorization of the ADMINISTRATIVE AGENT.

Section 6.1. No Change Of Name, Merger, Etc. The BORROWER shall not change
its name or enter into any merger, consolidation, or reorganization, other than the following
mergers, provided that the BORROWER is the sole surviving entity thereof: (a) mergers
between the BORROWER and its SUBSIDIARIES; and (b) mergers in connection with
acquisitions by the BORROWER which are otherwise permitted by Section 6.7 of this AGREEMENT.

Section 6.2. Dispositions. Neither the BORROWER nor its SUBSIDIARIES may
make any DISPOSITIONS other than: (a) DISPOSITIONS which do not constitute PREPAYMENT
DISPOSITIONS; or (b) PREPAYMENT DISPOSITIONS with respect to which the NET AVAILABLE
PROCEEDS arising therefrom are applied as required by the terms of Section 2.4 of this AGREEMENT.

Section 6.3. No Encumbrance Of Assets. Neither the BORROWER nor its
SUBSIDIARIES shall mortgage, pledge, grant or permit to exist any LIENS upon any of its assets of
any kind, now owned or hereafter acquired, except for PERMITTED LIENS. The BORROWER agrees that it
will not grant to any PERSON other than the SECURED PARTIES any negative pledges applicable to any
of the assets of the BORROWER.

Section 6.4. No Indebtedness. Except as disclosed in Schedule 6.4 attached
hereto, the BORROWER shall not incur, create, assume, or permit to exist any INDEBTEDNESS except:
(a) the OBLIGATIONS; (b) INDEBTEDNESS secured by PERMITTED LIENS; (c)
INDEBTEDNESS owed to SUBSIDIARIES; INDEBTEDNESS owed to Genencor International, Inc. in the
principal amount of Ten Million Dollars ($10,000,000.00); and (e) additional unsecured
INDEBTEDNESS not to exceed Ten Million Dollars ($10,000,000.00) in aggregate amount at any time.

Section 6.5. Restricted Payments. The BORROWER shall not make any
RESTRICTED PAYMENTS.

Section 6.6. Transactions With Affiliates. The BORROWER shall not make any
contract for the purchase of any items from any AFFILIATE or the performance of any services
(including employment services) by any AFFILIATE, unless such contract is on terms which fairly
represent generally available terms to be obtained in transactions of a similar nature with
independent third PERSONS.

Section 6.7. Loans, Investments And Sale-Leasebacks. The BORROWER and its
SUBSIDIARIES shall not make any advance, loan, investment, or acquisition of the assets or equity
interests of any other entity or enter into any sale-leaseback transactions other than:
(a) PERMITTED INVESTMENTS; (b) employee loans and advances not to exceed Two
Hundred Fifty Thousand Dollars ($250,000.00) in aggregate amount outstanding at any time;
(c) capital contributions and loans made by the BORROWER to its SUBSIDIARIES or made by
the BORROWER’S SUBSIDIARIES to the BORROWER; (d) acquisitions of the stock or assets of
another entity to the extent that: (i) such entity is engaged only in business ventures consistent
with the BORROWER’S line of business, (ii) the aggregate value of all consideration (including
cash and stock of the BORROWER) paid in any FISCAL YEAR for such acquisitions does not exceed
Twenty Million Dollars ($20,000,000.00), and (iii) no DEFAULT or EVENT OF DEFAULT either exists at
the time of the subject acquisition or would be caused by the making of the acquisition; or
(e) INTEREST RATE HEDGES and currency hedges for non-speculative, ordinary course of
business purposes.

Section 6.8. No Assignment. The BORROWER shall not assign or attempt to
assign its rights under this AGREEMENT.

Section 6.9. No Alteration Of Line Of Business. The BORROWER shall not
amend or change materially its line of business, nor shall it engage in business ventures other
than business ventures which are consistent with its line of business.

Section 6.10. Unpermitted Uses Of Loan Proceeds. The BORROWER shall
not use any part of the proceeds of the LOANS hereunder for any purpose which constitutes a
violation of, or is inconsistent with, regulations of the Board of Governors of the Federal Reserve
System, including without limitation, the purchase or carrying of (or refinancing of indebtedness
originally incurred to purchase or carry) margin securities.

Section 6.11. Changes In Fiscal Year. The BORROWER shall not change its
FISCAL YEAR without providing the ADMINISTRATIVE AGENT with ninety (90) days advance written notice
thereof.

Section 6.12. Subsidiaries. The BORROWER shall not form or acquire any
SUBSIDIARIES unless: (a) the BORROWER complies with the requirements of Sections 3.8 and
3.9 of this AGREEMENT; and (b) the acquisition or the formation of the SUBSIDIARY does
not violate any of the restrictions of Section 6.7 of this AGREEMENT.

Section 6.13. Leverage Ratio. The LEVERAGE RATIO shall not exceed: 2.75 to
1.0 from the date of CLOSING through July 30, 2006; and (b) 2.50 to 1.0 from July 31,
2006 and thereafter.

Section 6.14. Interest Coverage Ratio. The INTEREST COVERAGE RATIO of
BORROWER and its SUBSIDIARIES shall be not less than 3.0 to 1.0, measured as of the last day of
each FISCAL QUARTER.

ARTICLE 7

EVENTS OF DEFAULT

The occurrence of any of the following events shall constitute an EVENT OF DEFAULT.

Section 7.1. Failure To Pay. The failure or refusal of the BORROWER to pay:
(a) all or any amount or installment of principal due upon the LOANS (whether such
payment is scheduled or is a mandatory prepayment or is due as a result of the acceleration of the
LOANS or is otherwise required by the CREDIT DOCUMENTS); (b) any payment of interest due
upon the LOANS within three (3) BUSINESS DAYS after the date due; or (c) any other
monetary OBLIGATION within three (3) BUSINESS DAYS after demand therefor by the ADMINISTRATIVE
AGENT.

Section 7.2. Violation Of Covenants. The failure or refusal of the BORROWER
to timely perform, observe, and comply with: (a) any covenant, agreement, or condition
contained in Article 6 of this AGREEMENT; (b) the failure of the BORROWER to provide any
of the reports or items required by Section 5.11 of this AGREEMENT within ten (10) BUSINESS DAYS
after notice thereof by the ADMINISTRATIVE AGENT to the BORROWER; and any other covenant,
agreement, or condition contained in this AGREEMENT (other than the failure to pay the OBLIGATIONS
as described above in Section 7.1), and such failure or refusal continues for a period of thirty
(30) consecutive BUSINESS DAYS after notice thereof by the ADMINISTRATIVE AGENT to the BORROWER.

Section 7.3. Representation Or Warranty. The failure of any representation
or warranty made by the BORROWER or by any of the GUARANTORS to be true in any material respect, as
of the date made.

Section 7.4. Default Under Credit Documents. A breach of or default by the
BORROWER under the terms, covenants, and conditions set forth in any other CREDIT DOCUMENT after
the expiration of any applicable rights of cure.

Section 7.5. Cross-Default. A breach of or default under the terms,
covenants, or conditions of any agreement, loan, guaranty, or other credit transactions of the
BORROWER or any of the GUARANTORS with Genencor International, Inc., or with any other holder of
INDEBTEDNESS, involving either individually or in the aggregate an unpaid balance in excess of Two
Million Dollars ($2,000,000.00), after the expiration of any applicable rights of cure.

Section 7.6. Judgments. The BORROWER or any of the GUARANTORS shall
suffer final judgments for the payment of money aggregating in excess of Two Million Dollars
($2,000,000.00) and shall not discharge the same within a period of thirty (30) days unless,
pending further proceedings, execution has not been commenced or if commenced has been effectively
stayed.

Section 7.7. Levy By Judgment Or Lien Creditor. A judgment or lien creditor
of the BORROWER shall obtain possession of any of the COLLATERAL by any means, including but not
limited to levy, distraint, replevin or self-help, and the BORROWER shall not remedy same within
thirty (30) days thereof; or a writ of garnishment is served on the LENDER relating to any of the
accounts of the BORROWER maintained with the ADMINISTRATIVE AGENT or any other SECURED PARTY.

Section 7.8. Failure To Pay Liabilities. The BORROWER shall fail to pay any
of its debts, in an aggregate amount in excess of Two Million Dollars ($2,000,000.00), due to any
third PERSON and such failure shall continue beyond any applicable grace period, unless the
BORROWER holds a good faith defense to payment and has set aside reasonable reserves for the
payment thereof.

Section 7.9. Involuntary Insolvency Proceedings. The institution of
involuntary INSOLVENCY PROCEEDINGS against the BORROWER and the failure of any such INSOLVENCY
PROCEEDINGS to be dismissed before the earliest to occur of: (a) the date which is sixty
(60) days after the institution of such INSOLVENCY PROCEEDINGS; (b) the entry of any
order for relief in the INSOLVENCY PROCEEDING or any order adjudicating the BORROWER insolvent; or
(c) the impairment (as to validity, priority or otherwise) of any security interest or
LIEN of the SECURED PARTIES in any of the COLLATERAL.

Section 7.10. Voluntary Insolvency Proceedings. The commencement by the
BORROWER of INSOLVENCY PROCEEDINGS.

Section 7.11. Insolvency Proceedings Pertaining To Subsidiaries. The
occurrence of any of the events listed in Sections 7.9 and 7.10 above to any SUBSIDIARY of the
BORROWER.

Section 7.12. Material Adverse Event. The occurrence of a MATERIAL ADVERSE
EVENT.

Section 7.13. Default By Guarantors. The failure by any of the GUARANTORS
to satisfy any obligation imposed upon the GUARANTORS in the GUARANTY AGREEMENTS or their
respective Security Agreements, after the expiration of any cure rights.

Section 7.14. Attempt To Terminate Guaranties. The receipt by the LENDER of
notice from a GUARANTOR that such GUARANTOR is attempting to terminate or limit any portion of its
obligations under a GUARANTY AGREEMENT.

Section 7.15. ERISA. If any TERMINATION EVENT shall occur and as of the
date thereof or any subsequent date, the sum of the various liabilities of the BORROWER and its
ERISA AFFILIATES (such liabilities to include, without limitation, any liability to the Pension
Benefit Guaranty Corporation (or any successor thereto) or to any other party under Sections 4062,
4063, or 4064 of ERISA or any other provision of LAW and to be calculated after giving effect to
the tax consequences thereof) resulting from or otherwise associated with such event exceeds Two
Million Dollars ($2,000,000.00); or the BORROWER or any of its ERISA AFFILIATES as an employer
under any MULTIEMPLOYER PLAN shall have made a complete or partial withdrawal from such
MULTIEMPLOYER PLANS and the plan sponsors of such MULTIEMPLOYER PLANS shall have notified such
withdrawing employer that such employer has incurred a withdrawal liability requiring a payment in
an amount exceeding Two Million Dollars ($2,000,000.00).

Section 7.16. Indictment Of Borrower Or Guarantors. The indictment of the
BORROWER or of any of the GUARANTORS for a felony under any federal, state or other LAW.

Section 7.17. Injunction. The issuance of any injunction against the
BORROWER which enjoins or restrains the BORROWER from continuing to conduct any material part of
its business affairs.

Section 7.18. Change Of Control. The occurrence of a CHANGE OF
CONTROL.

ARTICLE 8

RIGHTS AND REMEDIES ON THE OCCURRENCE

OF AN EVENT OF DEFAULT

Upon the occurrence of an EVENT OF DEFAULT, the ADMINISTRATIVE AGENT shall, at the request of,
or may with the consent of, the REQUIRED LENDERS, take any or all of the following actions:

Section 8.1. Secured Parties’ Specific Rights And Remedies. In addition to
all other rights and remedies provided by LAWS and the CREDIT DOCUMENTS, upon the occurrence of any
EVENT OF DEFAULT, the ADMINISTRATIVE AGENT may with the consent of the REQUIRED LENDERS and shall
at the request of the REQUIRED LENDERS: (a) accelerate and call immediately due and
payable all or any part of the OBLIGATIONS; (b) seek specific performance or injunctive
relief to enforce performance of the undertakings, duties, and agreements provided in the CREDIT
DOCUMENTS, whether or not a remedy at law exists or is adequate; and exercise any rights of a
secured creditor under the Uniform Commercial Code, as adopted and amended in Maryland or
as otherwise applicable, including the right to take possession of the COLLATERAL without the use
of judicial process or hearing of any kind and the right to require the BORROWER to assemble the
COLLATERAL at such place as the ADMINISTRATIVE AGENT may specify.

Section 8.2. Automatic Acceleration. Upon the occurrence of an EVENT OF
DEFAULT as described in Sections 7.9 or 7.10 of this AGREEMENT, the OBLIGATIONS shall be
automatically accelerated and due and payable without any notice, demand or action of any type on
the part of the SECURED PARTIES.

Section 8.3. Sale Of Collateral. In addition to any other remedy provided
herein, upon the occurrence of an EVENT OF DEFAULT, the ADMINISTRATIVE AGENT, in a commercially
reasonable fashion, may sell at public or private sale or otherwise realize upon, in Baltimore,
Maryland, or elsewhere, the whole or, from time to time, any part of all COLLATERAL which is
personal property, or any interest which the BORROWER may have therein. Pending any such action,
the ADMINISTRATIVE AGENT may collect and liquidate the COLLATERAL. After deducting from the
proceeds of sale or other disposition of such COLLATERAL all expenses, including all expenses for
legal services, the ADMINISTRATIVE AGENT shall apply such proceeds toward the satisfaction of the
OBLIGATIONS. Any remainder of the proceeds after satisfaction in full of the OBLIGATIONS shall be
distributed as required by applicable LAW. Notice of any sale or other disposition (other than
sales or other dispositions of COLLATERAL which is perishable or threatens to decline speedily in
value or of a type customarily sold on a recognized market) shall be given to the BORROWER not less
than ten (10) calendar days before the time of any intended public sale or of the time after which
any intended private sale or other disposition of the COLLATERAL is to be made, which the BORROWER
hereby agrees would be commercially reasonable notice of such sale or other disposition. The
BORROWER agrees to assemble, or to cause to be assembled, at the BORROWER’S expense, the COLLATERAL
at such place or places as the ADMINISTRATIVE AGENT designates. At any such sale or other
disposition, the ADMINISTRATIVE AGENT may, to the extent permissible under applicable law, purchase
the whole or any part of the COLLATERAL, free from any right of redemption on the part of the
BORROWER, which right is hereby waived and released to the extent lawfully permitted. Without
limiting the generality of any of the rights and remedies conferred upon the ADMINISTRATIVE AGENT
under this Section, the ADMINISTRATIVE AGENT may, to the full extent permitted by applicable law:
(a) enter upon the premises of the BORROWER, exclude therefrom the BORROWER or any PERSON
connected therewith, and take immediate possession of the COLLATERAL, either personally or by means
of a receiver appointed by a court of competent jurisdiction, using all necessary force to do so;
(b) at the ADMINISTRATIVE AGENT’S option, use, operate, manage, and control the
COLLATERAL in any lawful manner; (c) collect and receive all income, revenue, earnings,
issues, and profits therefrom; and (d) maintain, alter or remove the COLLATERAL.

Section 8.4. Letters Of Credit. Upon the request of the
ADMINISTRATIVE AGENT, during any continuing EVENT OF DEFAULT, the BORROWER shall immediately
deposit in a cash collateral account to be maintained by the ADMINISTRATIVE AGENT for the benefit
of the LENDERS, over which the ADMINISTRATIVE AGENT has exclusive dominion, an amount equal to the
aggregate then undrawn and unexpired amount of all LETTERS OF CREDIT. Amounts held in such cash
collateral account shall be applied by the ADMINISTRATIVE AGENT to the payment of drafts drawn
under LETTERS OF CREDIT, and the unused portion thereof after all LETTERS OF CREDIT shall have
expired or been fully drawn upon shall be applied to repay any remaining unpaid OBLIGATIONS. After
all LETTERS OF CREDIT have expired or have been fully drawn upon and all other OBLIGATIONS have
been paid in full, the balance, if any, in such cash collateral account shall be returned to the
BORROWER. In the event the BORROWER fails to deposit into the cash collateral account an amount
equal to the then undrawn and unexpired amount of all LETTERS OF CREDIT, the ADMINISTRATIVE AGENT
shall be authorized to deposit into such cash collateral account proceeds from the liquidation of
the COLLATERAL until the balance in such account equals the aggregate then undrawn and unexpired
amount of all LETTERS OF CREDIT.

Section 8.5. Remedies Cumulative. The rights and remedies provided in this
AGREEMENT and in the other CREDIT DOCUMENTS or otherwise under applicable LAWS shall be cumulative
and the exercise of any particular right or remedy shall not preclude the exercise of any other
rights or remedies in addition to, or as an alternative of, such right or remedy.

ARTICLE 9

THE ADMINISTRATIVE AGENT

Section 9.1. Appointment. Each of the LENDERS hereby irrevocably designates
and appoints M&T as agent of such LENDER under this AGREEMENT and the other CREDIT DOCUMENTS and
each such LENDER authorizes M&T as agent for such LENDER, to take such action on its behalf under
the provisions of this AGREEMENT and the other CREDIT DOCUMENTS and to exercise such powers and
perform such duties as are expressly delegated to the ADMINISTRATIVE AGENT by the terms of this
AGREEMENT and such other CREDIT DOCUMENTS, together with such other powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary elsewhere in this AGREEMENT or
such other CREDIT DOCUMENTS, the ADMINISTRATIVE AGENT shall not have any duties or
responsibilities, except those expressly set forth herein and therein, or any fiduciary
relationship with any LENDER, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this AGREEMENT or the other CREDIT DOCUMENTS or
otherwise exist against the ADMINISTRATIVE AGENT. Without limiting the generality of the foregoing
sentence, the use of the term “agent” in this AGREEMENT is not intended to connote any fiduciary or
other implied (or express) obligations arising under agency doctrine or any applicable laws.
Instead, such terms is used merely as a matter of market custom and is intended to create or
reflect only an administrative relationship between independent contracting parties.

Section 9.2. Administrative Agent May Hold Collateral For Lenders And
Others. The LENDERS and the BORROWER acknowledge that any financing statements, guaranties,
stock pledge agreements, mortgages, deeds of trust, security documents or other document evidencing
or documenting any LIENS relating to or securing the LOANS, the other OBLIGATIONS, or the
COLLATERAL, including all of such documents filed in the public records in order to evidence or
perfect the LIENS and security interests granted in the CREDIT DOCUMENTS, may name only the
ADMINISTRATIVE AGENT, as agent for the LENDERS, as the secured party, mortgagee, beneficiary, or as
lienholder. The LENDERS and the BORROWER authorize the ADMINISTRATIVE AGENT to hold any or all of
the above-described security interests and LIENS in and to the COLLATERAL as the agent for the
LENDERS.

Section 9.3. Delegation Of Duties. The ADMINISTRATIVE AGENT may execute any
of its duties under this AGREEMENT and the other CREDIT DOCUMENTS by or through agents or
attorneys-in-fact and shall be entitled to rely upon the advice of counsel concerning all matters
pertaining to such duties. The ADMINISTRATIVE AGENT shall not have any liability to the LENDERS
for the negligence or misconduct of any agents or attorneys-in-fact selected by the ADMINISTRATIVE
AGENT.

Section 9.4. Liability. Neither the ADMINISTRATIVE AGENT nor any of
the officers, directors, employees, agents, attorneys-in-fact, subsidiaries or affiliates of the
ADMINISTRATIVE AGENT shall be: (a) liable to the LENDERS for any action lawfully taken
or omitted to be taken by the ADMINISTRATIVE AGENT or such PERSON under or in connection with this
AGREEMENT or the other CREDIT DOCUMENTS (except for actions occasioned solely by the ADMINISTRATIVE
AGENT’S or such PERSON’S own gross negligence or willful misconduct); or (b) responsible
in any manner to any of the LENDERS for any recitals, statements, representations or warranties
made by the BORROWER or the GUARANTORS or by any representative or officer thereof contained in
this AGREEMENT or the other CREDIT DOCUMENTS or in any certificate, report, statement or other
document referred to or provided for in, or received by the ADMINISTRATIVE AGENT under or in
connection with, this AGREEMENT or the other CREDIT DOCUMENTS or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this AGREEMENT or the other CREDIT
DOCUMENTS or for any failure of the BORROWER to pay or perform the OBLIGATIONS. The ADMINISTRATIVE
AGENT shall not be under any obligation to any LENDER to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this AGREEMENT,
or to inspect the properties, books or records of the BORROWER, the GUARANTORS, or of any other
PERSON.

Section 9.5. Reliance By The Administrative Agent. The ADMINISTRATIVE AGENT
shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution,
notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper PERSON or PERSONS and upon advice and
statements of legal counsel (including, without limitation, counsel to the BORROWER), independent
accountants and other experts selected by the ADMINISTRATIVE AGENT. The ADMINISTRATIVE AGENT may
deem and treat the payee of any NOTE as the owner thereof for all purposes unless such NOTE shall
have been transferred in accordance with the applicable provisions of this AGREEMENT. The
ADMINISTRATIVE AGENT shall be fully justified in refusing to take any action requested or suggested
by a LENDER in connection with this AGREEMENT or any of the other CREDIT DOCUMENTS or which
otherwise relates to the BORROWER or the COLLATERAL, unless the ADMINISTRATIVE AGENT shall first
receive such advice or concurrence of the REQUIRED LENDERS, and the ADMINISTRATIVE AGENT is
indemnified to the ADMINISTRATIVE AGENT’S satisfaction by all of the LENDERS against any and all
liability and expense which may be incurred by the ADMINISTRATIVE AGENT by reason of taking or
continuing to take any such action. The ADMINISTRATIVE AGENT shall in all cases be fully protected
in acting, or in refraining from acting, pursuant to this AGREEMENT and the NOTES in accordance
with a request of the REQUIRED LENDERS and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the LENDERS and all future holders of the NOTES.

Section 9.6. Notice Of Default. The ADMINISTRATIVE AGENT shall not be deemed
to have knowledge or notice of the occurrence of any EVENT OF DEFAULT unless the ADMINISTRATIVE
AGENT has received notice from a LENDER or the BORROWER referring to this AGREEMENT, describing
such EVENT OF DEFAULT and stating that such notice is intended to direct the ADMINISTRATIVE AGENT’S
attention to such EVENT OF DEFAULT in accordance with the provisions of this Section. In the event
that the ADMINISTRATIVE AGENT receives such a notice, the ADMINISTRATIVE AGENT shall promptly give
notice thereof to each of the LENDERS within one (1) BUSINESS DAY of receipt of the ADMINISTRATIVE
AGENT. The ADMINISTRATIVE AGENT shall take such action with respect to an EVENT OF DEFAULT as may
be directed by the REQUIRED LENDERS; provided that unless and until the ADMINISTRATIVE AGENT shall
have received such directions, the ADMINISTRATIVE AGENT may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such EVENT OF DEFAULT as the
ADMINISTRATIVE AGENT, in the sole and absolute discretion of the ADMINISTRATIVE AGENT, deems
advisable.

Section 9.7. Non-Reliance On The Administrative Agent And Other
Lenders. Each LENDER expressly acknowledges that neither the ADMINISTRATIVE AGENT nor any of
the officers, directors, employees, agents, attorneys-in-fact, subsidiaries or affiliates of the
ADMINISTRATIVE AGENT have made any representations or warranties to it and that no act by the
ADMINISTRATIVE AGENT hereinafter taken, including any review of the affairs of the BORROWER shall
be deemed to constitute any representation or warranty by the ADMINISTRATIVE AGENT to any LENDER.
Each LENDER represents to the ADMINISTRATIVE AGENT that it has, independently and without reliance
upon the ADMINISTRATIVE AGENT or any other LENDER, and based on such documents and information as
it has deemed appropriate, made its own appraisal of and investigation into the businesses,
operations, properties, financial and other conditions and creditworthiness of the BORROWER and
made its own decision to extend the LOANS to the BORROWER and to enter into this AGREEMENT. Each
LENDER also represents that it will, independently and without reliance upon the ADMINISTRATIVE
AGENT or any other LENDER, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit analysis, appraisals and decisions in taking or not
taking action under this AGREEMENT and the other CREDIT DOCUMENTS, and to make such investigations
as it deems necessary to inform itself as to the businesses, operations, properties, financial and
other conditions and creditworthiness of the BORROWER. Except for notices, reports and other
documents expressly required to be furnished to the LENDERS by the ADMINISTRATIVE AGENT hereunder
or by the other CREDIT DOCUMENTS, the ADMINISTRATIVE AGENT shall not have any duty or
responsibility to provide any LENDER with any credit or other information concerning the
businesses, operations, properties, financial and other conditions or creditworthiness of the
BORROWER which may come into the possession of the ADMINISTRATIVE AGENT or any of its officers,
directors, employees, agents, attorneys-in-fact, subsidiaries or affiliates.

Section 9.8. Indemnification. Each LENDER agrees to indemnify the
ADMINISTRATIVE AGENT in the ADMINISTRATIVE AGENT’S capacity as the appointed agent of the LENDERS
(to the extent not reimbursed by the BORROWER and without limiting the obligations of the BORROWER
to do so), ratably according to its COMMITMENT PERCENTAGE, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time (including, without limitation, at any
time following the payment of the NOTES) be imposed on, incurred by or asserted against the
ADMINISTRATIVE AGENT in any way relating to or arising out of this AGREEMENT or the other CREDIT
DOCUMENTS, or any documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by the ADMINISTRATIVE AGENT under or
in connection with any of the foregoing; provided that no LENDER shall be liable for the payment of
any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting solely from the ADMINISTRATIVE AGENT’S gross
negligence or willful misconduct. The agreements in this Section shall survive the repayment and
performance of the OBLIGATIONS and the termination of this AGREEMENT.

Section 9.9. No Independent Actions By Lenders With Respect To Collateral Or
Remedies. Each LENDER hereby authorizes the ADMINISTRATIVE AGENT to take such actions in the
name of the ADMINISTRATIVE AGENT or in the name of the LENDERS as may be required to enforce the
terms and conditions of any of the CREDIT DOCUMENTS, including but not limited to the exercise of
any remedies or enforcement rights. Each LENDER agrees that no LENDER shall have any right
individually to seek to realize upon any security granted by any of the CREDIT DOCUMENTS or to
individually exercise any of the remedies or rights of enforcement provided by the CREDIT DOCUMENTS
or as otherwise available under applicable LAWS, it being agreed that such rights and remedies
shall be exercised only by the ADMINISTRATIVE AGENT for the benefit of the LENDERS in accordance
with the terms of the CREDIT DOCUMENTS.

Section 9.10. The Administrative Agent In Its Individual Capacity. The
ADMINISTRATIVE AGENT and the ADMINISTRATIVE AGENT’S parent and subsidiaries and affiliates may make
loans to, accept deposits from and generally engage in any kind of business with the BORROWER as
though the ADMINISTRATIVE AGENT were not an ADMINISTRATIVE AGENT hereunder. With respect to any
LOAN made or renewed by the ADMINISTRATIVE AGENT and any NOTE issued to the ADMINISTRATIVE AGENT,
the ADMINISTRATIVE AGENT shall have the same rights and powers provided by this AGREEMENT and the
other CREDIT DOCUMENTS as any other LENDER and may exercise the same as though it were not the
ADMINISTRATIVE AGENT, and the terms “LENDER” and “LENDERS” shall include the ADMINISTRATIVE AGENT
in its individual lending capacity. The LENDERS, in their individual capacities, may from time to
time issue INTEREST RATE HEDGES for the accounts of the BORROWER and its SUBSIDIARIES with respect
to the OBLIGATIONS.

Section 9.11. Removal Or Resignation Of The Administrative Agent;
Successor Administrative Agent. The ADMINISTRATIVE AGENT may be removed for cause by the
REQUIRED LENDERS. Subject to the appointment and acceptance of a successor as provided below, the
ADMINISTRATIVE AGENT may resign at any time by giving notice thereof to the LENDERS and the
BORROWER. Upon any such removal or resignation, the REQUIRED LENDERS, with the prior written
approval of the BORROWER (which approval shall not unreasonably be withheld or delayed, and shall
not be required if a DEFAULT or an EVENT OF DEFAULT shall have occurred and be continuing), shall
appoint a successor ADMINISTRATIVE AGENT, which successor shall have minimum capital and surplus of
at least Five Hundred Million Dollars ($500,000,000.00). If a successor ADMINISTRATIVE AGENT has
not been so appointed or has not accepted such appointment within thirty (30) days after the
ADMINISTRATIVE AGENT’S giving of notice of resignation, then the ADMINISTRATIVE AGENT may, on
behalf of the LENDERS, appoint a successor, which successor shall have minimum capital and surplus
of at least Five Hundred Million Dollars ($500,000,000.00). Upon the acceptance of any appointment
as ADMINISTRATIVE AGENT hereunder by a successor ADMINISTRATIVE AGENT, such ADMINISTRATIVE AGENT
shall thereupon succeed to and become vested with all rights, powers, privileges and duties of the
retiring or removed ADMINISTRATIVE AGENT, and the retiring or removed ADMINISTRATIVE AGENT shall be
discharged from its duties and obligations hereunder. After the resignation and removal of any
ADMINISTRATIVE AGENT, the provisions of this Article 9 shall continue in effect with respect to
actions taken or omitted to be taken by such ADMINISTRATIVE AGENT while the retired or removed
ADMINISTRATIVE AGENT was acting in the capacity of ADMINISTRATIVE AGENT.

Section 9.12. Benefits Of Article 9. None of the provisions of this Article
9 shall inure to the benefit of the BORROWER or any other PERSON other than the ADMINISTRATIVE
AGENT and the LENDERS; consequently, neither the BORROWER nor any other PERSON shall be entitled to
rely upon, or to raise as a defense, in any manner whatsoever, the failure of the ADMINISTRATIVE
AGENT or any LENDER to comply with such provisions.

Section 9.13. Syndication And Documentation Agent. No LENDER identified in
this AGREEMENT as a “SYNDICATION AGENT” or as a “DOCUMENTATION AGENT” shall have any rights,
powers, obligations or duties under the CREDIT DOCUMENTS other than those applicable to all
LENDERS.

ARTICLE 10

GENERAL CONDITIONS AND TERMS

Section 10.1. Successors And Assigns; Participations.

Section 10.1.1. Benefit Of Agreement. This AGREEMENT shall be binding upon
and inure to the benefit of the BORROWER, the SECURED PARTIES, all future holders of the NOTES, and
their respective successors and assigns.

Section 10.1.2. Assignment Of Loans By Lenders. Each LENDER may, with the
written consent of the BORROWER and the ADMINISTRATIVE AGENT, such consent not to be unreasonably
withheld or unduly delayed (and shall not be required during any continuing EVENT OF DEFAULT),
assign to one or more ELIGIBLE ASSIGNEES all or any portion of such LENDER’S interests, rights and
obligations set forth in this AGREEMENT or the other CREDIT DOCUMENTS (including, without
limitation, all or a portion of the LOANS at the time owing to such LENDER and the NOTE held by
such LENDER) provided that: (a) an administrative fee in the amount of Three
Thousand Five Hundred Dollars ($3,500.00) is paid to the ADMINISTRATIVE AGENT in connection with
the assignment; (b) if less than all of the assigning LENDER’S COMMITMENT AMOUNT is to be
assigned, the amount of the COMMITMENT AMOUNT so assigned shall be for an aggregate principal
amount of not less than Five Million Dollars ($5,000,000.00); (c) the parties to each
such assignment shall execute and deliver to the ADMINISTRATIVE AGENT (with copies to be sent
contemporaneously to each LENDER), for its acceptance, an Assignment And Acceptance (“LENDER
ASSIGNMENT”) in the form of Exhibit 10.1.2.(c) attached hereto; and (d) such LENDER
ASSIGNMENT does not require the filing of a registration statement with the Securities And Exchange
Commission or require the LOANS or the NOTE to be qualified in conformance with the requirements
imposed by any blue sky laws or other LAWS of any state. Upon such execution, delivery, acceptance
and recording, from and after the effective date specified in each LENDER ASSIGNMENT, which
effective date are at least five (5) BUSINESS DAYS after the execution thereof, (i) the ASSIGNEE
thereunder shall be a party hereto and, to the extent provided in such LENDER ASSIGNMENT, have the
rights, duties, and obligations of a LENDER hereunder, and (ii) the assigning LENDER thereunder
shall, to the extent provided in such assignment, be released from its duties and obligations under
this AGREEMENT.

Section 10.1.3. Rights And Duties Upon Assignment. By executing and
delivering a LENDER ASSIGNMENT, the assigning LENDER thereunder and the ASSIGNEE thereunder confirm
to and agree with each other and the other parties to this AGREEMENT as set forth in such LENDER
ASSIGNMENT.

Section 10.1.4. Register. The ADMINISTRATIVE AGENT shall maintain a
copy of each LENDER ASSIGNMENT delivered to it and a register for the recordation of the names and
addresses of the LENDERS and the amount of the LOANS with respect to each LENDER from time to time
(the “REGISTER”). The entries in the REGISTER shall be conclusive, in the absence of manifest
error, and the BORROWER, the ADMINISTRATIVE AGENT and the LENDERS may treat each PERSON whose name
is recorded in the REGISTER as a LENDER hereunder for all purposes of this AGREEMENT. The REGISTER
shall be available for inspection by the BORROWER or LENDERS at any reasonable time and from time
to time upon reasonable prior notice.

Section 10.1.5. Issuance Of New Notes. Upon the ADMINISTRATIVE AGENT’S
receipt of an LENDER ASSIGNMENT executed by an assigning LENDER and an ELIGIBLE ASSIGNEE together
with any NOTE subject to such LENDER ASSIGNMENT and the written consent to such LENDER ASSIGNMENT,
the ADMINISTRATIVE AGENT shall, if such LENDER ASSIGNMENT has been completed and is substantially
in the form of Exhibit 10.1.2.(c): (a) accept such LENDER ASSIGNMENT; (b)
record the information contained therein in the REGISTER; (c) give prompt notice thereof
to the LENDERS and the BORROWER; and (d) promptly deliver a copy of such LENDER
ASSIGNMENT to each of the LENDERS and the BORROWER. Within three (3) BUSINESS DAYS after receipt
of notice, the BORROWER shall execute and deliver to the ADMINISTRATIVE AGENT, in exchange for the
surrendered NOTE, a new NOTE to the order of such ELIGIBLE ASSIGNEE in amounts equal to the
COMMITMENT PERCENTAGE assumed by it pursuant to such LENDER ASSIGNMENT and a new NOTE to the order
of the assigning LENDER in an amount equal to the COMMITMENT PERCENTAGE retained by the assigning
LENDER. Such new NOTE shall be in an aggregate principal amount equal to the aggregate principal
amount of each surrendered NOTE, shall be dated the effective date of such LENDER ASSIGNMENT and
shall otherwise be in substantially the form of the assigned NOTE delivered to the assigning
LENDER. Each surrendered NOTE shall be canceled and returned to the BORROWER. The BORROWER
expressly acknowledges that the cancellation of any NOTE and the replacement of any NOTE in
accordance with this provision shall not constitute or be deemed to be a refinancing or a novation
of any of the OBLIGATIONS.

Section 10.1.6. Participations. Each LENDER may sell participations to one
or more banks or other entities in all or a portion of its rights and obligations relating to the
LOANS and as provided for in this AGREEMENT and the other CREDIT DOCUMENTS (including, without
limitation, all or a portion of its extensions of credit and the NOTES held by it) and each such
PARTICIPANT shall be entitled to the indemnification, yield protection and protection from
increased costs provided to the LENDERS under this AGREEMENT, provided that: each such
participation shall be in an amount not less than Five Million Dollars ($5,000,000.00);
(b) such LENDER’S obligations under this AGREEMENT (including, without limitation, its
COMMITMENT PERCENTAGE) shall remain unchanged; (c) such LENDER shall remain responsible
to the other parties hereto for the performance by such LENDER of its duties and obligations under
this AGREEMENT; (d) such LENDER shall remain the holder of the NOTE held by such LENDER
for all purposes of this AGREEMENT; (e) the BORROWER, the ADMINISTRATIVE AGENT, 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; (f) such LENDER shall not permit
any PARTICIPANT to have any contractual right or veto directly or indirectly to approve any
waivers, amendments or other modifications to this AGREEMENT or any other CREDIT DOCUMENT other
than waivers, amendments or modifications which would reduce the principal of or the interest rate
on any LOAN in which such PARTICIPANT is acquiring a participation interest, extend the term or
increase the amount of the applicable COMMITMENT PERCENTAGE of the LENDER selling the subject
participation interest, reduce the amount of any fees to which the LENDER selling the subject
participation is entitled, extend any scheduled payment date for principal upon any LOAN in which
the subject PARTICIPANT is acquiring a participation interest or, except as expressly contemplated
hereby or thereby, release substantially all of the COLLATERAL securing the LOAN in which the
subject PARTICIPANT is acquiring a participation interest; (g) any such disposition shall
not necessitate the filing of a registration statement with the Securities and Exchange Commission,
or require the qualification of the LOANS or the NOTES under the blue sky law of any state; and
(h) the PARTICIPANT shall not be entitled to any indemnification, yield protection or
protection from increased costs which are in excess of the rights of the LENDER from which it
purchased its participation interest.

Section 10.1.7. Disclosure Of Information; Confidentiality. The
SECURED PARTIES shall hold all non-public information with respect to the BORROWER confidential.
The BORROWER agrees that any LENDER may, in connection with any assignment, proposed assignment,
participation or proposed participation pursuant to this Section, disclose to the ASSIGNEE,
PARTICIPANT, proposed ASSIGNEE or proposed PARTICIPANT, any information relating to the BORROWER
furnished to such LENDER by or on behalf of the BORROWER; provided, that prior to any such
disclosure, each such ASSIGNEE, proposed ASSIGNEE, PARTICIPANT or proposed PARTICIPANT shall agree
with the BORROWER or such LENDER to preserve the confidentiality of any confidential information
relating to the BORROWER received from such LENDER. Nothing herein shall prevent any SECURED PARTY
from disclosing such information: (a) to any other SECURED PARTY; (b) upon the
order of any court or administrative agency; (c) upon the request or demand of any
regulatory agency or authority having jurisdiction over such SECURED PARTY; (d) which has
been publicly disclosed; (e) to the extent reasonably required in connection with any
litigation to which such SECURED PARTY may be a party; (f) to its counsel and auditors;
and (g) to the extent reasonably required in connection with the exercise of any remedy
hereunder.

Section 10.1.8. Certain Pledges Or Assignments. Nothing herein shall
prohibit any LENDER from pledging or assigning any NOTE to any Federal Reserve Bank in accordance
with applicable LAW.

Section 10.2. Sharing Of Collections. The LENDERS hereby agree among
themselves that, except as provided to the contrary in this AGREEMENT, if any LENDER shall receive
by voluntary payment, realization upon security, set-off or from any other source any amount on
account of the LOANS, interest thereon, or any other OBLIGATION contemplated by this AGREEMENT or
the other CREDIT DOCUMENTS to be made by the BORROWER ratably to all LENDERS in greater proportion
than any such amount received by any other LENDER, then the LENDER receiving such proportionately
greater payment shall notify the ADMINISTRATIVE AGENT of such receipt, and equitable adjustment
will be made in the manner stated in this Section so that, in effect, all such excess amounts will
be shared ratably among all of the LENDERS. The LENDER receiving such excess amount shall purchase
(which it shall be deemed to have done simultaneously upon its receipt of a disproportionate
payment) a participation in the applicable OBLIGATIONS owed to such other LENDERS in such amount as
shall result in a ratable sharing by all LENDERS of such excess amount. If all or any portion of
such excess amount is thereafter recovered from the LENDER making such purchase, such purchase
shall be rescinded and the purchase price restored to the extent of such recovery, together with
interest or other amounts, if any, required by LAW to be paid by the LENDER making such purchase.

Section 10.3. Reversal Of Payments; Revival Of Obligations. To the extent
that the BORROWER makes a payment or payments to the LENDERS or the ADMINISTRATIVE AGENT for the
ratable benefit of the LENDERS, or the ADMINISTRATIVE AGENT or LENDERS receive any payment or
proceeds of the COLLATERAL or from any set-off or any other source, which payments or proceeds or
any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set
aside, avoided, and/or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such
payment or proceeds repaid, the OBLIGATIONS or part thereof intended to be satisfied shall be
revived and continued in full force and effect as if such payment or proceeds had not been received
by the LENDERS or the ADMINISTRATIVE AGENT.

Section 10.4. Amendments, Waivers And Consents. Except as expressly
set forth below in this Section, any term, covenant, agreement or condition of this AGREEMENT or of
any of the other CREDIT DOCUMENTS may be amended or waived by the REQUIRED LENDERS on behalf of the
LENDERS, and any consent may be given by the REQUIRED LENDERS on behalf of the LENDERS; provided,
however, that no amendment, waiver or consent shall, without the prior written consent of all of
the LENDERS: (a) increase the principal amount or extend the time for payment of any of
the LOANS; (b) change any COMMITMENT PERCENTAGE or COMMITMENT AMOUNT of any LENDER
(except as specifically permitted to reflect an increase in the MAXIMUM AGGREGATE LOAN AMOUNT
pursuant to the provisions of Section 2.1.9 hereof, or an assignment pursuant to the assignment
provisions of Section 10.1.2 of this AGREEMENT); (c) extend the originally scheduled time
or times of payment of the principal of any of the LOANS or the time or times of payment of
interest on any of the LOANS; (d) increase or reduce the rate of interest or fees payable
on any of the LOANS or as otherwise required by the CREDIT DOCUMENTS; (e) permit any
subordination of the principal or interest of any of the LOANS; release substantially all of the
COLLATERAL or the GUARANTORS; (g) amend the provisions of this Section 10.4 or of Section
6.3 or the definitions of ADMINISTRATIVE AGENT, APPLICABLE PERCENTAGE, BORROWER, LENDERS,
COMMITMENT AMOUNT, COMMITMENT PERCENTAGE, or REQUIRED LENDERS, or modify in any other manner the
number or percentage of LENDERS required to make any determinations, waive any rights, or modify
any provisions of this AGREEMENT; (h) reduce or forgive any commitment fees payable in
accordance with Section 2.1.7 of this AGREEMENT; (i) waive any EVENT OF DEFAULT arising
pursuant to a violation of either Section 6.3 or Section 7.1 of this AGREEMENT; (or) (j)
waive the condition precedent to advances of proceeds of the LOANS set forth in Section 2.1.4 of
this AGREEMENT with respect to any then continuing EVENTS OF DEFAULT. Except as expressly provided
to the contrary in this AGREEMENT and with the exception of amendments to any provision of Article
9 of this AGREEMENT, this AGREEMENT may not be amended without the prior written consent of the
BORROWER. The ADMINISTRATIVE AGENT and all of the LENDERS may amend or modify any provision of
Article 9 of this AGREEMENT (excluding (i) those provisions relating to the consent rights of the
BORROWER, and (ii) those provisions relating to the qualifications of a successor ADMINISTRATIVE
AGENT) without the need for any consent or approval from the BORROWER, it being acknowledged that
the BORROWER is not a third-party beneficiary of any of the provisions of Article 9 (without
implying that the BORROWER has any other third-party beneficiary rights).

Section 10.5. Set Off. The BORROWER agrees that, to the fullest extent
permitted by law, if any OBLIGATION shall be due and payable (by acceleration or otherwise), each
SECURED PARTY or PARTICIPANT (and any branch, subsidiary or affiliate thereof) shall have the
right, without notice to the BORROWER, to set off against and to appropriate and apply to such
OBLIGATION any indebtedness, liability or obligation of any nature owing to the BORROWER by such
SECURED PARTY, PARTICIPANT (or branch, subsidiary or affiliate thereof), including but not limited
to all deposits (whether time or demand, general or special, provisionally credited or finally
credited, whether or not evidenced by a certificate of deposit) now or hereafter maintained by the
BORROWER with such SECURED PARTY, PARTICIPANT (or branch, subsidiary or affiliate thereof). Such
right shall be absolute and unconditional in all circumstances and, without limitation, shall exist
whether or not any notice or demand has been given to the BORROWER or any other PERSON, whether
such indebtedness, obligation or liability owed to the BORROWER is contingent, absolute, matured or
unmatured (it being agreed that any such indebtedness, obligation or liability shall be deemed to
be then due and payable at the time of such set-off), and regardless of the existence or adequacy
of any collateral, guaranty or any other security, right or remedy available. The rights provided
by this Section are in addition to all other rights of set-off and banker’s LIEN and all other
rights and remedies which the SECURED PARTIES, any PARTICIPANT, or any branch, subsidiary or
affiliate thereof, may otherwise have under this AGREEMENT, any other CREDIT DOCUMENT, at law or
in equity, or otherwise, and nothing in this AGREEMENT or any other CREDIT DOCUMENT shall be deemed
a waiver or prohibition of or restriction on the rights of set-off or bankers’ LIEN of any such
PERSON.

Section 10.6. Secured Party Expenses. All reasonable SECURED PARTY EXPENSES
shall be paid by the BORROWER upon the demand of the ADMINISTRATIVE AGENT, whether incurred prior
to or after the date of CLOSING.

Section 10.7. Obligations Are Unconditional. The payment and performance of
the OBLIGATIONS shall be the absolute and unconditional duty and obligation of the BORROWER, and
shall be independent of any defense or any rights of set-off, recoupment or counterclaim which the
BORROWER might otherwise have against any of the SECURED PARTIES. The BORROWER shall pay the
payments of the principal and interest to be made upon the OBLIGATIONS, free of any deductions and
without abatement, diminution or set-off other than those herein expressly provided. Until the
OBLIGATIONS have been fully paid and performed, the BORROWER shall not: (a) suspend or
discontinue any payments required by the CREDIT DOCUMENTS; and (b) fail to perform and
observe all of the BORROWER’S covenants and agreements set forth in the CREDIT DOCUMENTS.

Section 10.8. Indemnity. The BORROWER agrees to defend, indemnify and hold
harmless each of the SECURED PARTIES and the entities affiliated with the SECURED PARTIES and all
of the SECURED PARTIES’ and their respective affiliated entities’ employees, agents, officers and
directors, from and against any losses, penalties, fines, liabilities, settlements, damages, costs
and expenses, suffered in connection with any claim, investigation, litigation or other proceeding
(whether or not the SECURED PARTY or an affiliated entity is a party thereto) and the prosecution
and defense thereof, arising out of or in any way connected with any CREDIT DOCUMENT, including
without limitation reasonable attorneys’ and consultant’s fees, except to the extent that any of
the foregoing directly result from the gross negligence or willful misconduct of the party seeking
indemnification therefor. Notwithstanding any termination of this AGREEMENT or payment and
performance of the OBLIGATIONS, the indemnities provided for herein shall continue in full force
and effect and shall protect all of the above-described PERSONS against events arising after such
termination, payment or performance as well as before.

Section 10.9. Incorporation. The terms and conditions of the CREDIT
DOCUMENTS are incorporated by reference and made a part hereof, as if fully set forth herein.

Section 10.10. Waivers. The ADMINISTRATIVE AGENT at any time or from
time to time may waive all or any rights under this AGREEMENT or any other CREDIT DOCUMENT upon the
consent of the REQUIRED LENDERS or all LENDERS as required by the terms of this AGREEMENT, but any
waiver or indulgence at any time or from time to time shall not constitute a future waiver of
performance or exact performance by the BORROWER.

Section 10.11. Continuing Obligation Of Borrower. The terms, conditions,
and covenants set forth herein and in the CREDIT DOCUMENTS shall survive CLOSING and shall
constitute a continuing obligation of the BORROWER during the course of the transactions
contemplated herein. The LIENS and other security provided by this AGREEMENT shall remain in
effect so long as any OBLIGATION, whether direct or contingent, is outstanding, unpaid, or
unsatisfied or is being challenged or contested. At such time as the OBLIGATIONS have been paid,
performed and satisfied in full and no INTEREST RATE HEDGE or LETTER OF CREDIT remains in effect
and provided that no challenge or contest to such payment and performance or attempt to avoid or
set aside any payment upon the OBLIGATIONS is pending, the ADMINISTRATIVE AGENT shall provide, at
the BORROWER’S expense, documentation sufficient to release all LIENS of the ADMINISTRATIVE AGENT
in the COLLATERAL; and provided, that without limitation, the foregoing provisions of this Section
shall be subject to Section 2.12 hereof.

Section 10.12. Choice Of Law. The laws of the State of Maryland (excluding,
however, conflict of law principles) shall govern and be applied to determine all issues relating
to this AGREEMENT and the rights and obligations of the parties hereto, including the validity,
construction, interpretation, and enforceability of this AGREEMENT and its various provisions and
the consequences and legal effect of all transactions and events which resulted in the execution of
this AGREEMENT or which occurred or were to occur as a direct or indirect result of this AGREEMENT
having been executed.

Section 10.13. Submission To Jurisdiction; Venue; Actions Against Secured
Parties. For purposes of any action, in law or in equity, which is based directly or
indirectly on this AGREEMENT, any other CREDIT DOCUMENT or any matter related to this AGREEMENT or
any other CREDIT DOCUMENT, including any action for recognition or enforcement of any of the
SECURED PARTIES’ rights under the CREDIT DOCUMENTS or any judgment obtained by the SECURED PARTIES
in respect thereof, the BORROWER hereby:

Section 10.13.1. Jurisdiction. Irrevocably submits to the non-exclusive
general jurisdiction of the courts of the State of Maryland and, if a basis for federal
jurisdiction exists at any time, the courts of the United States of America for the District of
Maryland.

Section 10.13.2. Venue. Agrees that venue shall be proper in the Circuit
Court for Baltimore City, Maryland, the Circuit Court for any county in the state of Maryland, as
selected by the SECURED PARTIES, and, if a basis for federal jurisdiction exists, the courts of the
United States of America for the District of Maryland.

Section 10.13.3. Waiver Of Objections To Venue. Waives any right to object
to the maintenance of any suit in any of the courts specified in Section 10.13.2 above on the basis
of improper venue or convenience of forum. The BORROWER further agrees that it shall not institute
any suit or other action against any of the SECURED PARTIES, in law or in equity, which is based
directly or indirectly on this AGREEMENT, any other CREDIT DOCUMENT or any matter related to this
AGREEMENT or any other CREDIT DOCUMENT, in any court other than a court specified in Section
10.13.2 above; provided, that in any instance in which there is then pending a suit instituted by
the LENDER against the BORROWER in a court other than a court specified in Section 10.13.2 above,
the BORROWER may file in such suit any counterclaim which it has against any of the SECURED PARTIES
but only if such counterclaim is a compulsory counterclaim and would be barred if not filed as a
counterclaim in such suit. The BORROWER agrees that any suit brought by it against any of the
SECURED PARTIES not in accordance with this paragraph should be forthwith dismissed or transferred
to a court specified in Section 10.13.2 above.

Section 10.14. Notices. Any notice required or permitted by or in
connection with this AGREEMENT shall be in writing (except to the extent that telephonic notice is
expressly authorized by the terms of this AGREEMENT) and shall be made by facsimile (confirmed on
the date the facsimile is sent by one of the other methods of giving notice provided for in this
Section) or by hand delivery, by Federal Express, or other similar overnight delivery service, or
by certified mail, unrestricted delivery, return receipt requested, postage prepaid, addressed to
the ADMINISTRATIVE AGENT, the LENDERS or the BORROWER at the appropriate addresses set forth below
or to such other address as may be hereafter specified by written notice by the ADMINISTRATIVE
AGENT, the LENDERS or the BORROWER. Notice shall be considered given as of the date of the
facsimile or the hand delivery, one (1) calendar day after delivery to Federal Express or similar
overnight delivery service, or three (3) calendar days after the date of mailing, independent of
the date of actual delivery or whether delivery is ever in fact made, as the case may be, provided
the giver of notice can establish the fact that notice was given as provided herein. If notice is
tendered pursuant to the provisions of this Section and is refused by the intended recipient
thereof, the notice, nevertheless, shall be considered to have been given and shall be effective as
of the date herein provided.

If to any or all of the LENDERS:

To the addresses set forth on the signature pages of

this AGREEMENT or in any LENDER ASSIGNMENT

If to the ADMINISTRATIVE AGENT (with a copy to each of the LENDERS):

Manufacturers And Traders Trust Company

25 S. Charles Street, 12th Floor

Baltimore, Maryland 21201

Attn: Hugh E. Giorgio, Vice President

Facsimile: (410) 244-4447

-and-

Manufacturers And Traders Trust Company

6395 Dobbin Road, Suite 106

Columbia, Maryland 21045

Attn: Robert F. Topper, Vice President

Facsimile: (410) 964-6810

If to the BORROWER:

Martek Biosciences Corporation

6480 Dobbin Road

Columbia, Maryland 21045

Attn: George P. Barker, Esquire

Facsimile: (410) 740-2985

With A Courtesy Copy To:

HOGAN & HARTSON L.L.P.

111 South Calvert Street, Suite 1600

Baltimore, Maryland 21202

Attn.: Kevin G. Gralley, Esquire

Facsimile: (410) 539-6981

The failure of the SECURED PARTIES to send the above courtesy copy shall not impair the
effectiveness of any notice given to the BORROWER in the manner provided herein.

Section 10.15. Miscellaneous Provisions. The parties agree that:
(a) this AGREEMENT shall be effective as of the date first above written, independent of
the date of execution or delivery hereof; (b) this AGREEMENT shall be binding upon the
parties and their successors and assigns, contains the final and entire agreement and understanding
of the parties, and may neither be amended or altered except by a writing signed by the parties;
(c) time is strictly of the essence of this AGREEMENT; (d) as used herein, the
singular includes the plural and the plural includes the singular, the use of any gender applies to
all genders; (e) the captions contained herein are for purposes of convenience only and
are not a part of this AGREEMENT; (f) a carbon, photographic, photocopy or other
reproduction of a security agreement or financing statement shall be sufficient as a financing
statement; (g) this AGREEMENT may be delivered by facsimile, and a facsimile of any
party’s signature to this AGREEMENT shall be deemed an original signature for all purposes; and
(h) this AGREEMENT may be executed in several counterparts, each of which shall be an
original, but all of which, when taken together, shall constitute one and the same document.

Section 10.16. USA Patriot Act Notice. Each LENDER that is subject to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “PATRIOT ACT’), and the ADMINISTRATIVE AGENT (for itself and not on behalf of any
LENDER), hereby notify the BORROWER that pursuant to the requirements of the PATRIOT ACT, it is
required to obtain, verify and record information that identifies the BORROWER, which information
includes the name and address of the BORROWER and other information that will allow such LENDER or
the ADMINISTRATIVE AGENT, as applicable, to identify the BORROWER in accordance with the PATRIOT
ACT.

Section 10.17. Waiver Of Trial By Jury. Each party to this AGREEMENT agrees
that any suit, action, or proceeding, whether claim or counterclaim, brought or instituted by
either party hereto or any successor or assign of any party on or with respect to this AGREEMENT or
any other CREDIT DOCUMENT or which in any way relates, directly or indirectly, to the OBLIGATIONS
or any event, transaction, or occurrence arising out of or in any way connected with any of the
OBLIGATIONS, or the dealings of the parties with respect thereto, shall be tried only by a court
and not by a jury. EACH PARTY HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH
SUIT, ACTION, OR PROCEEDING.

[SIGNATURES BEGIN ON THE FOLLOWING PAGE]

2

IN WITNESS WHEREOF, each of the SECURED PARTIES and the BORROWER have duly executed
this AGREEMENT under seal as of the date first above written. This AGREEMENT may be executed in
counterparts and delivered via facsimile and shall be enforceable against each signatory hereto
regardless of whether all indicated signatories ultimately execute this AGREEMENT.

	 	 	 	 	 
	WITNESS/ATTEST:	 	MARTEK BIOSCIENCES CORPORATION,	 	 
	
 
	 	A Delaware Corporation
	 	

	 
	 	 	 	 
	
 
	 	By:
	 	(SEAL)
	
 
	 	 
	 	

Peter L. Buzy,

Chief Financial Officer

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

3

COUNTERPART SIGNATURE PAGE TO LOAN AND SECURITY AGREEMENT:

WITNESS/ATTEST: MANUFACTURERS AND TRADERS TRUST COMPANY,

In Its Capacity As Administrative Agent

	 	 	 	 	 	 	 	 	 
	 
	 	By:
	 	(SEAL)

	 
	 	Name:  ______________________
	 	 	 	 
	 
	 	Title:    ______________________
	 	 	 	 
	WITNESS/ATTEST:
	 	BANK OF AMERICA, N.A.,	 	 	 	 
	 
	 	In Its Capacity As Syndication Agent	 	 	 	 
	 
	 	By:
	 	(SEAL)

	 
	 	Name:  ______________________
	 	 	 	 
	 
	 	Title:    ______________________
	 	 	 	 
	WITNESS/ATTEST:
	 	SUNTRUST BANK,	 	 	 	 
	 
	 	In Its Capacity As Documentation Agent	 	 	 	 
	 
	 	By:
	 	(SEAL)

Name:      

Title:      

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

4

COUNTERPART SIGNATURE PAGE OF “LENDERS” TO LOAN AND SECURITY AGREEMENT:

WITNESS/ATTEST: LENDERS:

MANUFACTURERS AND TRADERS TRUST COMPANY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	      By:

	 	 	 	 	 	(SEAL)

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	         Name:  ______________________
	 	 	 	 
	         Title:    ______________________
	 	 	 	 
	Commitment Percentage:
	 	 	33	%	 	 	 	 	 	 	 	 	 	 	 	 
	Commitment Amount:
	 	$	43,500,000	 	 	 	 	 	 	 	 	 	 	 	 	 

Notice Address:

25 S. Charles Street, 12th Floor

Baltimore, Maryland 21201

Attn: Hugh E. Giorgio, Vice President

Facsimile: (410) 244-4447

[SIGNATURES CONTINUED ON THE FOLLOWING PAGE]

5

COUNTERPART SIGNATURE PAGE OF “LENDERS” TO LOAN AND SECURITY AGREEMENT:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	 	 	BANK OF AMERICA, N.A.	 	 	 	 	 	 	 	 
	      By:

	 	 	 	 	 	(SEAL)

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	         Name:  ______________________
	 	 	 	 
	         Title:    ______________________
	 	 	 	 
	Commitment Percentage:
	 	 	17	%	 	 	 	 	 	 	 	 	 	 	 	 
	Commitment Amount:
	 	$	23,500,000	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Notice Address:

	 	

	 
	 	 
	1101 Wootton Parkway, 4th Floor

	 
	 	 
	Rockville, MD 20852

Attn.:

Fax:

	 	

Michael J. Radcliffe, Senior Vice President

(301) 517-3120

6

COUNTERPART SIGNATURE PAGE OF “LENDERS” TO LOAN AND SECURITY AGREEMENT:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	 	 	SUNTRUST BANK	 	 	 	 	 	 	 	 
	      By:

	 	 	 	 	 	(SEAL)

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	         Name:  ______________________
	 	 	 	 
	         Title:    ______________________
	 	 	 	 
	Commitment Percentage:
	 	 	15	%	 	 	 	 	 	 	 	 	 	 	 	 
	Commitment Amount:
	 	$	20,000,000	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Notice Address:

	 	

	 
	 	 
	120 E. Baltimore Street, 25th Floor

	 
	 	 
	Baltimore, MD 21202

Attn.:

Fax:

	 	

Mac Tisdale, Assistant Vice President

(410) 986-1670

7

COUNTERPART SIGNATURE PAGE OF “LENDERS” TO LOAN AND SECURITY AGREEMENT:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	 	 	JP MORGAN CHASE BANK, N.A.	 	 	 	 
	      By:

	 	 	 	 	 	(SEAL)

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	         Name:  ______________________
	 	 	 	 
	         Title:    ______________________
	 	 	 	 
	Commitment Percentage:
	 	 	11	%	 	 	 	 	 	 	 	 	 	 	 	 
	Commitment Amount:
	 	$	15,000,000	 	 	 	 	 	 	 	 	 	 	 	 	 

Notice Address:

     

     

     

	 	 	 	 	 
	Attn.:
	 	 	—	 
	Fax:
	 	 	—	 

8

*COUNTERPART SIGNATURE PAGE OF “LENDERS” TO LOAN AND SECURITY AGREEMENT:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	 	 	COMERICA BANK	 	 	 	 	 	 	 	 
	      By:

	 	 	 	 	 	(SEAL)

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	         Name:  ______________________
	 	 	 	 
	         Title:    ______________________
	 	 	 	 
	Commitment Percentage:
	 	 	9	%	 	 	 	 	 	 	 	 	 	 	 	 
	Commitment Amount:
	 	$	12,000,000	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Notice Address:

	 	

	 
	 	 
	Comerica Tower at Detroit Center

	 
	 	 
	500 Woodward Avenue

Detroit, MI 48226

Attn.:

Fax:

	 	

Kathleen M. Kasperek, Vice President, Middle Market Banking, Metropolitan Loans — D

(313) 222-3389

9

COUNTERPART SIGNATURE PAGE OF “LENDERS” TO LOAN AND SECURITY AGREEMENT:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	 	 	 	 	 	 	FIFTH THIRD BANK	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	By:
	 	 	 	 	 	(SEAL)

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Name:  ______________________
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Title:    ______________________
	 	 	 	 
	Commitment Percentage:
	 	 	 	 	 	 	8	%	 	 	 	 	 	 	 	 	 	 	 	 
	Commitment Amount:
	 	 	 	 	 	$	11,000,000	 	 	 	 	 	 	 	 	 	 	 	 	 
	Notice Address:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mailcode: 109046
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	38 Fountain Square Plaza
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cincinnati, OH 45202
Attn.:
	 	David Melin
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fax:
	 	 	(513) 534-5947	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

10

COUNTERPART SIGNATURE PAGE OF “LENDERS” TO LOAN AND SECURITY AGREEMENT:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	 	 	CHEVY CHASE BANK	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	By:
	 	 	 	 	 	(SEAL)

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Name:  ______________________
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Title:    ______________________
	 	 	 	 
	Commitment Percentage:7%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Commitment Amount:$10,000,000
	 	 	 	 	 	 	 	 	 	 	 	 
	Notice Address:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	135 E. Baltimore Street
Baltimore, MD 21202
Attn.:
	 	William J. Olsen, Group Vice President
	 	 	 	 	 	 	 	 	 	 	 	 
	Fax:
	 	 	(410) 685-1990	 	 	 	 	 	 	 	 	 	 	 	 	 

11EX-10.1a

Baltimore, Maryland $     

     , 200     

PROMISSORY NOTE

FOR VALUE RECEIVED, the undersigned MARTEK BIOSCIENCES CORPORATION, a Delaware corporation
(“BORROWER”), promises to pay to the order of      
(“LENDER”), c/o MANUFACTURERS AND TRADERS TRUST COMPANY (“ADMINISTRATIVE AGENT”), at the offices of
the ADMINISTRATIVE AGENT located at 25 S. Charles Street, 12th Floor, Baltimore,
Maryland 21201, or at such other places as the holder of this Promissory Note may from time to time
designate, the principal sum of      Dollars ($     ), or the
unpaid portion thereof as has been advanced to the BORROWER for the account of the LENDER as a
“LOAN,” as such term is defined and described in the Amended And Restated Loan And Security
Agreement dated September 30, 2005 (“AGREEMENT”) between the BORROWER, the ADMINISTRATIVE AGENT,
and the lenders named therein, together with interest on the unpaid principal balance from time to
time outstanding at the rate or rates specified in the AGREEMENT until paid in full and any and all
other sums which may be owing to the holder of this Promissory Note by the BORROWER pursuant to
this Promissory Note, on or before the “MATURITY DATE,” as such term is defined in the AGREEMENT,
or such earlier date as required by the AGREEMENT. This Promissory Note is a “NOTE,” as such term
is defined in the AGREEMENT. The following terms shall apply to this Promissory Note.

1. Interest Rates, Calculation Of Interest, Obligations And Terms Of Repayment;
And Rights Of Prepayment. The BORROWER agrees to pay principal and all interest which accrues
on the unpaid balance of this Promissory Note from the date of this Promissory Note until such time
as the obligations evidenced hereunder have been paid in full, at the times and in accordance with
the covenants, procedures and requirements set forth in the AGREEMENT. Interest shall accrue, be
payable, and shall be calculated as provided for in the AGREEMENT. The BORROWER further promises
to pay all default interest, late payment charges, fees, and other expenses, costs and payment
obligations as are required by the AGREEMENT to be made by the BORROWER to or for the account of
the LENDER. The principal balance of this Promissory Note, together with all other unpaid
interest, fees, expenses and other sums due to the holder, shall be paid in full on or before the
MATURITY DATE. The BORROWER’S right to prepay any or all sums due pursuant to this Promissory Note
shall be governed by the terms and conditions of the AGREEMENT.

2. Confession Of Judgment. Upon the occurrence of an “EVENT OF DEFAULT,” as
such term is defined in the AGREEMENT, in addition to all other rights and remedies otherwise
provided by the provisions of the AGREEMENT or otherwise by applicable laws, the BORROWER
authorizes any attorney admitted to practice before any court of record in the United States to
appear on behalf of it in any court in one or more proceedings, or before any clerk thereof or
prothonotary or other court official, and to confess judgment against it in favor of the holder of
this Promissory Note in the full amounts due to the holder pursuant to this Promissory Note
(including principal, accrued interest, fees, late charges and any and all charges, fees and costs)
plus attorneys= fees in the amount of fifteen percent (15%) of the unpaid balance hereunder,
and court costs, all without prior notice or opportunity of it for any prior hearing. The BORROWER
agrees that venue and jurisdiction shall be proper in the Circuit Court of any County of the State
of Maryland or of Baltimore City, Maryland, or in the United States District Court for the District
of Maryland. The BORROWER waives the benefit of any and every statute, ordinance, or rule of court
which may be lawfully waived conferring upon it any right or privilege of exemption, homestead
rights, stay of execution, or supplementary proceedings, or other relief from the enforcement or
immediate enforcement of a judgment or related proceedings on a judgment. The authority and power
to appear for and enter judgment against the BORROWER shall not be exhausted by one or more
exercises thereof, or by any imperfect exercise thereof, and shall not be extinguished by any
judgment entered pursuant thereto; such authority and power may be exercised on one or more
occasions from time to time, in the same or different jurisdictions, as often as the ADMINISTRATIVE
AGENT, acting on behalf of the holder, or the holder shall deem necessary, convenient, or proper.
In the event that the holder receives, as a result of execution on a judgment confessed hereunder,
attorneys= fees which exceed the actual legal fees incurred by the holder in connection with
the unpaid balance due to the holder pursuant to this Promissory Note, then, upon full and final
payment of all other sums due and owing to the holder pursuant to this Promissory Note and payment
of the actual attorneys’ fees incurred by the holder, the holder shall remit such excess amount of
attorneys’ fees to the BORROWER.

3. Interest Rate After Judgment. If judgment is entered against the
BORROWER on this Promissory Note, the amount of the judgment entered (which may include principal,
interest, fees, and costs) shall bear interest at the higher of the maximum interest rate imposed
upon judgments by applicable law or the default interest rate set forth in the AGREEMENT, to be
determined on the date of the entry of the judgment.

4. Expenses Of Collection And Attorneys’ Fees. Should this Promissory Note
be referred to an attorney for collection, whether or not judgment is confessed or suit is filed,
the BORROWER shall pay all of the holder’s reasonable costs, fees and expenses, including
reasonable attorneys’ fees, resulting from such referral.

5. Waiver Of Defenses. In the event any one or more holders of this
Promissory Note transfer this Promissory Note for value, the BORROWER agrees that, except as
otherwise provided herein, all subsequent holders of this Promissory Note who take for value and
without actual knowledge of a claim or defense of the BORROWER against a prior holder shall not be
subject to any claims or defenses which the BORROWER may have against a prior holder, all of which
are waived as to the subsequent holder, and that all such subsequent holders shall have all rights
of a holder in due course with respect to the BORROWER even though the subsequent holder may not
qualify, under applicable law, absent this section, as a holder in due course. The BORROWER shall
retain all rights and claims which the BORROWER may have against prior holders despite any such
transfers and the waiver of defenses provided in this section as to subsequent holders.
Notwithstanding the foregoing, nothing herein shall represent the waiver by the BORROWER of any
defense based upon any payment hereof made to any former holder hereof prior to the BORROWER having
been notified of the transfer of this Promissory Note to any subsequent holder.

6. Waiver Of Protest. The BORROWER, and all parties to this Promissory
Note, whether maker, indorser, or guarantor, waive presentment, notice of dishonor and protest.

7. Extensions Of Maturity. All parties to this Promissory Note, whether
maker, indorser, or guarantor, agree that the maturity of this Promissory Note, or any payment due
hereunder, may be extended at any time or from time to time without releasing, discharging, or
affecting the liability of such party.

8. Manner And Method Of Payment. All payments called for in this Promissory
Note shall be made in lawful money of the United States of America. If made by check, draft, or
other payment instrument, such check, draft, or other payment instrument shall represent
immediately available funds. In the holder=s discretion, any payment made by a check, draft,
or other payment instrument shall not be considered to have been made until such time as the funds
represented thereby have been collected by the holder. Should any payment date fall on a
non-banking day, the BORROWER shall make the payment on the next succeeding banking day.

9. Notices. Any notice or demand required or permitted by or in connection
with this Promissory Note shall be given in the manner specified in the AGREEMENT for the giving of
notices under the AGREEMENT. Notwithstanding anything to the contrary, all notices and demands for
payment from the holder actually received in writing by the BORROWER shall be considered to be
effective upon the receipt thereof by the BORROWER regardless of the procedure or method utilized
to accomplish delivery thereof to the BORROWER.

10. Assignability. This Promissory Note may only be assigned by the LENDER
or by any holder to the extent permitted by the stated terms of the AGREEMENT.

11. Binding Nature. This Promissory Note shall inure to the benefit of and
be enforceable by the LENDER and the LENDER’S successors and assigns, and shall be binding and
enforceable against the BORROWER and the BORROWER’S successors and assigns; provided, however, that
this Promissory Note may only be assigned by the LENDER in accordance with the provisions of the
AGREEMENT.

12. Invalidity Of Any Part. If any provision or part of any provision of
this Promissory Note shall for any reason be held invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions of this
Promissory Note and this Promissory Note shall be construed as if such invalid, illegal or
unenforceable provision or part thereof had never been contained herein, but only to the extent of
its invalidity, illegality, or unenforceability.

13. Choice Of Law. The laws of the State of Maryland (excluding, however,
conflict of law principles) shall govern and be applied to determine all issues relating to this
Promissory Note and the rights and obligations of the parties hereto, including the validity,
construction, interpretation, and enforceability of this Promissory Note and its various provisions
and the consequences and legal effect of all transactions and events which resulted in the issuance
of this Promissory Note or which occurred or were to occur as a direct or indirect result of this
Promissory Note having been executed.

14. Consent To Jurisdiction; Agreement As To Venue. The BORROWER
irrevocably consents to the non-exclusive jurisdiction of the courts of the State of Maryland and
of the United States District Court for the District of Maryland, if a basis for federal
jurisdiction exists. The BORROWER agrees that venue shall be proper in any circuit court of the
State of Maryland selected by the LENDER or in the United States District Court for the District of
Maryland if a basis for federal jurisdiction exists and waives any right to object to the
maintenance of a suit in any of the state or federal courts of the State of Maryland on the basis
of improper venue or of inconvenience of forum.

15. Unconditional Obligations. The BORROWER’S obligations pursuant to this
Promissory Note shall be the absolute and unconditional duty and obligation of the BORROWER and
shall be independent of any rights of set-off, recoupment or counterclaim which the BORROWER might
otherwise have against the holder of this Promissory Note, and the BORROWER shall pay absolutely
the payments of principal, interest, fees and expenses required hereunder, free of any deductions
and without abatement, diminution or set-off.

16. Seal And Effective Date. This Promissory Note is an instrument executed
under seal and is to be considered effective and enforceable as of the date set forth on the first
page hereof, independent of the date of actual execution and delivery.

17. Tense; Gender; Defined Terms; Section Headings. As used herein, the
singular includes the plural and the plural includes the singular. A reference to any gender also
applies to any other gender. Defined terms are entirely capitalized throughout, and defined terms
not specifically defined herein shall have the same meaning as provided by the terms of the
AGREEMENT. The section headings are for convenience only and are not part of this Promissory Note.

18. Actions Against Holder. Any action brought by the BORROWER against the
holder of this Promissory Note which is based, directly or indirectly, on this Promissory Note or
any matter in or related to this Promissory Note, including but not limited to the making of the
loan evidenced hereby or the administration or collection thereof, shall be brought only in the
courts of the State of Maryland. The BORROWER agrees that any forum other than the State of
Maryland is an inconvenient forum and that a suit brought by the BORROWER against the holder of
this Promissory Note in a court of any state other than the State of Maryland should be forthwith
dismissed or transferred to a court located in the State of Maryland by that Court.

19. Waiver Of Jury Trial. The BORROWER (by execution of this Promissory
Note) and the holder of this Promissory Note (by acceptance of this Promissory Note) agree that any
suit, action, or proceeding, whether claim or counterclaim, brought or instituted by or against the
BORROWER or the holder of this Promissory Note, or any successor or assign of the BORROWER or the
holder of this Promissory Note, on or with respect to this Promissory Note or any of the other
“CREDIT DOCUMENTS,” as such term is defined in the AGREEMENT, or which in any way relates, directly
or indirectly, to the obligations of the BORROWER to the holder of this Promissory Note under this
Promissory Note or any of the other CREDIT DOCUMENTS, or the dealings of the parties with respect
thereto, shall be tried only by a court and not by a jury. THE BORROWER AND THE HOLDER OF THIS
PROMISSORY NOTE HEREBY EXPRESSLY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION, OR
PROCEEDING.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the BORROWER has duly executed this Promissory Note under seal as of the
date first above written.

	 	 	 	 	 	 	 
	WITNESS/ATTEST:

	 	THE BORROWER:
	 	

	 	

	 
	 	 	 	 	 	 
	 	 	MARTEK BIOSCIENCES CORPORATION,
	 	 
	 
	 	 	 	 	 	 
	`

	 	A Delaware Corporation
	 	

	 	

	 
	 	 	 	 	 	 
	
 
	 	By:
	 	 	 	(SEAL)
	 

	 	 	 	 
	 	

	
 
	 	 	 	Name:
	 	

	
 
	 	 	 	 
	 	

	
 
	 	 	 	Title:
	 	

	
 
	 	 	 	 
	 	 
	 
	 	 	 	 	 	 

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