Document:

exv10w7

 

Exhibit 10.7

CUMMINGS PROPERTIES, LLC

STANDARD FORM

COMMERCIAL LEASE

12020630-RSY-B

     In consideration of the covenants herein contained, Cummings Properties, LLC (“LESSOR”), does
hereby lease to BioTrove, Inc. (a DE corp.), 620 Memorial Drive, Cambridge, MA 02139
(“LESSEE”), the following described premises (“the leased premises”): approximately 19,359
square feet (including 0.3% common area) at 10-J and 10-K Gill Street, Woburn, MA 01801, TO
HAVE AND HOLD the leased premises for a term of five (5) years commencing at noon on
April 1, 2003 and ending at noon on March 30, 2008 unless sooner terminated as
herein provided, LESSOR and LESSEE now covenant and agree that the following terms and conditions
shall govern this lease during the term hereof and for such further time as LESSEE shall hold the
leased premises or any portion thereof.

     1. RENT. LESSEE shall pay to LESSOR base rent at the rate of five hundred sixty two
thousand nine hundred fifty nine (562,959) U.S. dollars per year, drawn on a U.S. bank, payable
in advance in monthly installments of $46,913.25 on the first day in each calendar month.
The first monthly payment, plus an appropriate fraction of a monthly payment for any portion of a
month at the commencement of the lease term, shall be made *.
All payments shall be made to LESSOR or agent at 200 West Cummings Park, Woburn, Massachusetts
01801, or at such other place as LESSOR shall from time to time in writing designate. If the “Cost
of Living” has increased as shown by the Consumer Price Index (Boston, Massachusetts, all items,
all urban consumers), U.S. Bureau of Labor Statistics, the amount of base rent due during each
calendar year of this lease and any extensions thereof shall be annually adjusted in proportion to
any increase in the Index., All such adjustments shall take place with the rent due on January 1 of
each year during the lease term. The base month from which to determine the amount of each increase
in the Index shall be January 2003 which figure shall be compared with the figure for
November 2003 and each November thereafter to determine the percentage increase (if any) in
the base rent to be paid during the following calendar year. In the event the Consumer Price Index
as presently computed is discontinued as a measure of “Cost of Living” changes, any adjustment
shall then be made on the basis of a comparable index then in general use.

*as provided in Paragraph 0 of the Rider to Lease.

     2. SECURITY DEPOSIT. LESSEE shall pay to LESSOR a security deposit in the amount of one hundred
seventy thousand seven hundred (170,700) U.S. dollars upon the execution of this lease by
LESSEE, which shall be held as security for LESSEE’s performance as herein provided and refunded to
LESSEE without interest at the end of this lease, subject to LESSEE’s satisfactory compliance with
the conditions hereof. LESSEE may not apply the security deposit to any payment due under the
lease. In the event of any default or breach of this lease by LESSEE, however,* LESSOR may elect to
apply the security deposit first to any unamortized improvements completed for LESSEE’S occupancy,
then to offset any outstanding invoice or other payment due to LESSOR, and then to outstanding
rent. If all or any portion of the security deposit is applied to cure a default or breach during
the term of the lease, LESSEE shall restore said deposit forthwith. LESSEE’s failure to remit the
full security deposit or any portion thereof or to restore said deposit when due shall constitute a
substantial lease default. Until such time as LESSEE pays the security deposit and first month’s
rent, LESSOR may declare this lease null and void for failure of consideration.

*following written notice and an opportunity to cure as provided below,

     3. USE OF PREMISES. LESSEE shall use the leased premises only for the purpose of executive and
administrative offices, laboratory space, research and development and light manufacturing

     4. ADDITIONAL RENT. LESSEE shall pay to LESSOR as additional rent a proportionate share (based on
square footage leased by LESSEE as compared with the total leaseable square footage of the building
or buildings of which the leased premises are a part (hereinafter called the building)) of any
increase in the real estate taxes levied against the land and building, whether such increase is
caused by an increase in the
tax rate or the assessment on the property, or a change in the method of determining real estate
taxes. LESSEE shall make payment within * days after receipt of any invoice from LESSOR, and any
additional rent shall be prorated should the lease terminate before the end of any tax year. The
base from which to determine the amount of any increase in taxes shall be the rate and the
assessment in effect as of July 1, 2002.

*20

     5. UTILITIES. LESSOR shall provide equipment per LESSOR’s building standard specifications to heat
the leased premises in season and to cool all office areas between May 1 and November 1. LESSEE
shall pay all charges for utilities used on the leased premises, including electricity, gas, oil,
water and sewer, and shall use whichever utility service provider LESSOR shall designate from time
to time. LESSEE shall pay the utility provider or LESSOR, as applicable, for all such utility
charges as determined by separate meters serving the leased premises. LESSEE shall also pay
LESSOR a proportionate share of any other fees and charges relating in any way to utility use at
the building.

     6. COMPLIANCE WITH LAWS. LESSEE acknowledges* that no trade, occupation, activity or work shall be
conducted in the leased premises or use made thereof which may be unlawful, improper, noisy,
or contrary to any applicable statute, regulation, ordinance or bylaw. LESSEE shall keep
all employees working in the leased premises covered by Worker’s Compensation Insurance and shall
obtain any licenses and permits necessary for LESSEE’s use and occupancy. LESSEE shall be
responsible for causing the leased premises and any alterations by LESSEE allowed hereunder to be
in full compliance with any applicable statute, regulation, ordinance or bylaw.

*to the best of its knowledge

     7. FIRE, CASUALTY, EMINENT DOMAIN. Should a substantial portion of the leased premises, or of the
property of which they are a part, be substantially damaged by fire or other casualty, or be taken
by eminent domain, LESSOR may elect to terminate this lease. When such fire, casualty, or taking
renders the leased premises substantially unsuitable for their intended use, a proportionate
abatement of rent shall be made, and LESSEE may elect to terminate this lease if: (a) LESSOR fails
to give written notice within * days of its intention to restore the leased premises; or (b)
LESSOR fails to restore the leased premises to a condition substantially suitable for their
intended use within ** days of said fire, casualty or taking. LESSOR reserves all rights for
damages or injury to the leased premises for any taking by eminent domain, except for damage to
LESSEE’s property or equipment.

*15          **60

     8. FIRE INSURANCE. LESSEE shall not permit any use of the leased premises which will adversely
affect or make voidable any insurance on the property of which the leased premises are a part, or
on the contents of said property, or which shall be contrary to any law, regulation or
recommendation from time to time made by the Insurance Services Office (or successor organization),
state fire prevention agency, local fire department, LESSOR’s insurer, or any similar entity.
LESSEE shall on demand reimburse LESSOR and all other tenants all extra insurance premiums caused
by LESSEE’s use of the leased premises* LESSEE shall not vacate the leased premises or permit same
to be unoccupied other than during LESSEE’s customary non-business days or hours**, or cause or
allow the utilities serving the leased premises to be terminated. **unless LESSEE continues to pay
rent or otherwise comply with its obligations under this lease,

     9. SIGNS. LESSEE,
at LESSEE’S expense, shall erect promptly upon commencement of this lease, and
then maintain signage for the leased premises in accordance with building standards for style,
size, location, etc. now or hereafter made by LESSOR LESSEE shall obtain the prior written consent
of LESSOR before erecting any sign on the leased premises, which consent shall include approval as
to size, wording, design and location LESSOR may at LESSEE’s expense remove and dispose of any sign
not approved, erected, maintained or displayed in conformance with this lease

8. *for a use other than set forth in Section 3 above

 

10. *, including the roof of the building, parking areas and outdoor landscaping and lawns,
and outdoor lighting

     10. MAINTENANCE OF PREMISES. LESSOR will be responsible for all structural maintenance of the
leased premises*and for the normal daytime maintenance of all space heating and cooling equipment,
sprinklers, doors, locks, plumbing, and electrical wiring, but specifically excluding damage caused
by the careless, malicious, willful, or negligent acts of LESSEE or others, and chemical, corrosion,
or water damage from any source*.* LESSEE agrees to maintain at its expense all other aspects of
the leased premises in the same condition as they are at the commencement of the term or as they
may be put in with LESSOR’s written consent during the term of this lease, normal wear and tear
only excepted, and whenever necessary, to replace light bulbs and glass, acknowledging that the
leased premises*** are now in good order and the light bulbs and glass whole. LESSEE shall at all
times properly control and vent all solvents, degreasers, radioactive materials, smoke, odors, and
any other materials that may be harmful, and shall not cause the area surrounding the leased
premises or any other common area as defined below to be in anything other than a neat and clean
condition, depositing all waste in appropriate receptacles. LESSEE shall be solely responsible for
any damage to plumbing equipment, sanitary lines or any other portion of the building which results
from ****the discharge or use of any substance by LESSEE. LESSEE shall not permit the leased
premises to be overloaded, damaged, stripped or defaced, nor suffer any waste, and will not keep
animals within the leased premises. If the leased premises include any wooden mezzanine type space,
the floor capacity of such space is suitable only for office use, light storage or assembly work.
LESSEE will protect any carpet with plastic or Masonite chair pads under any rolling chairs. Unless
heat is provided at LESSOR’s expense, LESSEE shall maintain sufficient heat to prevent freezing of
pipes or other damage. Any***** increase in air conditioning equipment or electrical capacity, or
any installation or maintenance of any “non-building standard” leasehold improvements or
equipment which is necessitated by some specific aspect of LESSEE’s use of the leased premises,
whether installed by LESSOR, LESSEE or a prior occupant, shall be LESSEE’s sole responsibility, at
LESSEE’s expense, and subject to LESSOR’s prior written consent. All maintenance provided by LESSOR
shall be during LESSOR’s normal business hours*.

*except LESSOR’s negligence 

***upon delivery will be 

****inappropriate 

*****After delivery of the leased premises, any

     11. ASSIGNMENT OR SUBLEASING. LESSEE shall not assign this lease or sublet or allow any other
entity or individual to occupy the whole or any part of the leased premises without LESSOR’s prior
written consent in each and every instance. *In no case may LESSEE assign this lease or sublet the
leased premises to any other current or prospective** tenant of LESSOR, or any affiliate of such
current or prospective tenant. As a condition to any assignment or subletting, an additional
security deposit shall be paid to and held by LESSOR. In the event LESSEE notifies LESSOR in
writing of its desire to assign or sublet the leased premises, LESSOR shall have the option to
terminate this lease, at an effective date to be determined by LESSOR, upon written notice to
LESSEE.*** Notwithstanding LESSOR’s consent to any assignment or subleasing, LESSEE and GUARANTOR
shall remain liable to LESSOR for the payment of all rent and for the full performance of all
covenants and conditions of this lease.

*, which consent shall not be unreasonably withheld **(a party with whom LESSOR has dealt in the
previous six months)

     12. ALTERATIONS. LESSEE shall not make structural alterations or additions of any kind to the
leased premises, but may make nonstructural alterations with LESSOR’s prior written consent.* All
such allowed alterations shall be at LESSEE’s expense and shall conform with LESSOR’s construction
specifications. If LESSOR or its agent provides any services or maintenance for LESSEE in
connection with such alterations or otherwise under this lease, including any maintenance or
repairs LESSEE is required but has failed to do, LESSEE will promptly pay any just invoice. LESSEE
shall obtain a lien waiver from any contractor it employs prior to commencement of any work. LESSEE
shall not permit any mechanics’ liens, or similar liens, to remain upon the leased premises in
connection with work of any character performed or claimed to have been performed at the direction
of LESSEE and shall cause any such lien to be released or removed forthwith without cost to LESSOR.
Any alterations or additions shall become part of the leased premises and the property of LESSOR.
Any alterations completed by LESSOR or LESSEE shall be LESSOR’s building standard unless noted
otherwise. LESSOR shall have the right at any time to make additions to the building, change the
arrangement of parking areas, stairs, or walkways, or otherwise alter common areas or
the exterior of the building, provided such changes do not materially interfere with LESSEE’s use
of the leased premises.

*, which consent shall not be unreasonably withheld

     13. LESSOR’S ACCESS. LESSOR and its agents and designees may at any reasonable time*enter to view
the leased premises; to show the leased premises to others; to make repairs and alterations as
LESSOR or its designee should elect to do for the leased premises, the common areas, or any other
portions of the building; and without creating any obligation or liability for LESSOR, to make
repairs which LESSEE is required but has failed to do.

*upon reasonable notice subject to reasonable security requirements

     14. SNOW REMOVAL. The plowing of snow from all roadways and unobstructed parking areas shall be at
the sole expense of LESSOR. The control of snow and ice on all walkways, steps and loading areas
serving the leased premises and all other areas not readily accessible to plows shall be the sole
responsibility of LESSEE. Notwithstanding the foregoing, however, LESSEE shall hold LESSOR and
OWNER harmless from any and all claims by LESSEE’s employees, agents, callers or invitees for
damage or personal injury resulting in any way from snow or ice on any area serving the leased
premises, except for claims arising out of LESSOR’s negligence.

     15. ACCESS AND PARKING. Unless otherwise provided herein, LESSEE shall have the right without
additional charge to use parking facilities provided for the leased premises in common with others
entitled to the use thereof. Said parking areas plus any stairs, corridors, walkways, elevators or
other common areas (herein collectively called the common areas) shall in all cases be considered a
part of the leased premises when they are used by LESSEE or LESSEE’s employees, agents, callers or
invitees. LESSEE will not obstruct in any manner any portion of the building or the walkways or
approaches to the building. No unattended parking* will be permitted between 7:00 PM and 7:00 AM
without LESSOR’s prior written approval, and from November 15 through April 15 annually, such
parking shall be permitted only in those areas designated for assigned overnight parking.
Unregistered or disabled vehicles, or storage trailers of any type, may not be parked at any time.
LESSOR may tow, at LESSEE’s sole risk and expense, any misparked vehicle belonging to LESSEE or
LESSEE’s employees, agents, callers or invitees, at any time. LESSOR does not provide and shall not
be responsible for providing any security services.

*(i.e. parking where the driver of a vehicle is not readily available at the leased premises)

     16. LIABILITY. LESSEE shall be solely responsible as between LESSOR and LESSEE for deaths or
personal injuries to all persons whomsoever occurring in or on the leased premises (including any
common areas that are considered part of the leased premises hereunder) from whatever cause
arising, and damage to property, including damage by fire or other casualty, to whomsoever
belonging, arising out of the use, control, condition or occupation of the leased premises by
LESSEE; and LESSEE agrees to indemnify and save harmless LESSOR and OWNER from any and all
liability, including but not limited to costs, expenses, damages, causes of action, claims,
judgments and attorney’s fees caused by or in any way growing out of any matters aforesaid, except
for death, personal injuries or property damage directly resulting from the sole negligence of
LESSOR.*

* or OWNER

     17. INSURANCE. LESSEE will secure and carry at its own expense a commercial general liability
policy insuring LESSEE, LESSOR and OWNER against any claims based on bodily injury (including death)
or property damage arising out of the condition of the leased premises (including any common areas
that are considered part of the leased premises hereunder) or their use by LESSEE, including damage
by fire or other casualty, such policy to insure LESSEE, LESSOR and OWNER against any claim up to
$1,000,000 in the case of any one accident involving bodily injury (including death), and
$1,000,000 against any claim for damage to property. This insurance shall be primary to and not
contributory with any insurance carried by LESSOR, whose insurance shall be considered excess.
LESSOR and OWNER shall be included in each such policy as additional insureds using ISO Form CG 20
26 11 85 or some other form approved by LESSOR, and each such policy shall be written by or with a
company or companies satisfactory to
LESSOR. Prior to occupancy, LESSEE shall deliver to LESSOR certificates and any applicable riders
or endorsements showing that such insurance is in force, and thereafter will provide renewal
certificates at least 15 days prior to the expiration of any such policies. All such insurance
certificates shall provide that such policies shall not be cancelled without at least 10 days prior
written notice to each insured. In the event LESSEE fails to provide or maintain such insurance at
any time during the term of this lease, LESSOR may elect to contract for such insurance at LESSEE’s
expense.

     18. BROKERAGE. LESSEE warrants and represents to LESSOR that LESSEE has dealt with no broker or
third person with respect to this lease,* and LESSEE agrees to indemnify LESSOR against any
brokerage claims arising by virtue of this lease. LESSOR warrants and represents to LESSEE that
LESSOR has employed no exclusive broker or agent in connection with the letting of the leased
premises.** In the event either party elects to employ a broker or third person on its behalf for
any extension, renewal, or expansion of this lease, any fees or commissions shall be the sole
responsibility of the party engaging such broker or third person.

*except Tamie Thompson of
Spaulding & Slye Colliers whom LESSOR win pay a commission in accordance with LESSOR’s standard fee
schedule

     19. SUBORDINATION. This lease shall be subject and subordinate to any and all mortgages and other
instruments in the nature of a mortgage now or at any time hereafter, and LESSEE shall, when
requested, promptly execute and deliver such *written instruments as shall be necessary to show the
subordination of this lease to said mortgages or other such instruments in the nature of a mortgage.

* reasonable

11. ***, and the security deposit shall be returned to LESSEE in accordance with Section 2 above

 

 

     20. DEFAULT AND ACCELERATION OF RENT. In the event that, (a) any assignment for the benefit of
creditors, trust mortgage, receivership or other insolvency proceeding shall be made or instituted
with respect to LESSEE or LESSEE’s property: (b) LESSEE shall default in the observance or
performance of any of LESSEE’s* covenants, agreements, or obligations hereunder, and such default
shall not be corrected** Within 10*** days after written notice thereof, or (c) LESSEE vacates the
leased premises,**** then LESSOR shall have the right thereafter, while such default continues and
without demand or further notice, to re-enter and take possession of the leased premises, to
declare the term of this lease ended, and to remove LESSEE’s effects, without being guilty of any
manner of trespass or conversion, and without prejudice to any remedies which might be otherwise
used for arrears of rent or other default or breach of the lease. If LESSEE shall default in the
payment of the security deposit, rent, taxes, or substantial invoice from LESSOR or LESSOR’s agent
for goods and/or services or other sum herein specified, and such default shall continue for 10
days after written notice thereof, and, because both parties agree that nonpayment of said sums
when due is a substantial breach of the lease, and, because the payment of rent in monthly
installments is for the sole benefit and convenience of LESSEE, then, in addition to any other
remedies, the entire balance of rent due hereunder shall become immediately due and payable as
liquidated damages. LESSOR, without being under any obligation to do so and without thereby waiving
any default, may remedy same for the account and at the expense of LESSEE. If LESSOR pays or incurs
any obligations for the payment of money in connection therewith, such sums paid or obligations
incurred, plus interest and costs, shall be paid to LESSOR by LESSEE as additional rent. Any sums
received by LESSOR from or on behalf of LESSEE at any time shall be applied first to any
unamortized improvements completed for LESSEE’s occupancy, then to offset any outstanding invoice
or other payment due to LESSOR, and then to outstanding rent. If any rent or other payment is not
received by LESSOR within five***** days after such payment is due, then LESSEE shall pay LESSOR a
late charge equal to one percent of such overdue payment or $35, whichever is greater. LESSEE shall
also pay LESSOR interest at the rate of 18 percent per annum on any payment from LESSEE to LESSOR
which is past due.

**or, in the event such default cannot be cured within said 30-day period, LESSEE shall not have
commenced to cure and be diligently proceeding to cure *material ***30

     21. NOTICE. Any notice from LESSOR to LESSEE relating to the leased premises or to the occupancy
thereof shall be deemed duly served when left at the leased premises, or served by constable, or
sent to the leased premises or to the last address designated by notice in accordance with this
section, by certified or registered mail, return receipt requested, postage prepaid, or by
recognized courier service with a receipt therefor, addressed to LESSEE. Any notice from LESSEE to
LESSOR relating to the leased premises or to the occupancy thereof shall be deemed duly served when
served by constable, or delivered to LESSOR by certified or registered mail, return receipt
requested, postage prepaid, or by recognized courier service with a receipt therefor, addressed to
LESSOR at 200 West Cummings Park, Woburn, MA 01801 or at LESSOR’s last designated address. No oral
notice or representation shall have any force or effect. Time is of the essence in the service of
any notice.

     22. OCCUPANCY. In the event that LESSEE takes possession of the leased premises prior to the start
of the lease term, LESSEE will perform and observe all of its covenants from the date upon which it
takes possession. LESSEE shall not remove LESSEE’s goods or property from the leased premises other
than in the ordinary and usual course of business, without *having first paid LESSOR all rent which
may become due during the entire term of this lease. LESSOR may require LESSEE to relocate to
another similar facility upon prior written notice to LESSEE and on terms comparable to these
herein. In the event that LESSEE continues to occupy or control all or any part of the leased
premises after the termination of this lease without the written permission of LESSOR, LESSEE shall
be liable to LESSOR for any and all loss, damages or expenses incurred by LESSOR, and all other
terms of this lease shall continue to apply, except that use and occupancy payments shall be due in
full monthly installments at a rate which shall be two times the greater of the monthly rent due
under this lease immediately prior to termination or LESSOR’s then current published rent
for the
leased premises, it being understood that such extended occupancy is a tenancy at sufferance,
solely for the benefit and convenience of LESSEE and is of greater rental value. LESSEE’s
control
or occupancy of all or any part of the leased premises beyond noon** on the
last day of any monthly
rental period shall constitute LESSEE’s occupancy for an entire additional month, and
increased
payment as provided in this section shall be due and payable immediately in advance. LESSOR’s
acceptance of any payments from LESSEE during such extended occupancy
shall not alter LESSEE’s
status as a tenant at sufferance.

*continuing to pay rent and otherwise comply with its obligations under this lease

**6:00 PM

     23. FIRE PREVENTION. LESSEE agrees to use every reasonable precaution against fire, and agrees to
provide and maintain approved, labeled fire extinguishers, emergency lighting equipment, and exit
signs, and complete any other modifications within the leased premises as required or recommended
by the Insurance Services Office (or successor organization), OSHA, the local fire department,
LESSOR’s insurer or any similar entity. LESSOR shall maintain the fire alarm system supplied by
LESSOR.

     24. OUTSIDE AREA. Any goods, equipment, or things of any type or description held or stored in any
common area without LESSOR’s prior written consent shall be deemed abandoned and may be removed by
LESSOR at LESSEE’s expense without notice. LESSEE shall maintain a building standard size dumpster
in a location approved by LESSOR, which dumpster shall be provided
and serviced at LESSEE’s expense
by whichever disposal firm LESSOR may designate from time to time. Alternatively,
if a shared
dumpster or compactor is provided by LESSOR, LESSEE shall pay the disposal firm or LESSOR, as
applicable, LESSEE’s proportionate share of any costs associated therewith.

     25. ENVIRONMENT. LESSEE will so conduct and operate the leased premises as not to interfere in any
way with the use and enjoyment of other portions of the same or neighboring buildings by others by
reason of odors, smoke, exhaust, smells, noise, pets, accumulation of garbage or trash, vermin or
other pests, or otherwise, and will at its expense employ a professional pest control service if
determined necessary by LESSOR. LESSEE agrees to maintain efficient and effective devices for
preventing damage to plumbing and heating equipment from solvents, degreasers. cutting oils,
propellants, acids, etc. which may be present at the leased premises. No hazardous materials or
wastes shall be stored, disposed of, or allowed to remain at the leased premises at any time*, and
LESSEE shall be solely responsible for any and all corrosion or other damage in any way associated
with the use, storage and/or disposal of same by LESSEE.

*except in full compliance with any applicable statutes, regulations, bylaws and the like

     26. RESPONSIBILITY. *Neither LESSOR nor OWNER shall be held liable to anyone for loss or damage
caused in any way by the use, leakage, seepage, flooding or escape of water in any form or from any
source, or for the interruption or cessation of any service rendered customarily to the leased
premises or building or agreed to by the terms of this lease, or due to any accident, the making of
repairs, alterations or improvements, labor difficulties, weather conditions, mechanical
breakdowns, trouble or scarcity in obtaining fuel, electricity, service or supplies from the
sources from which they are usually obtained for the building, or due to any change in any utility
or service provider, or any cause beyond LESSOR’s immediate control.

*Subject to Sections 16 and 17 above, neither

     27. SURRENDER. On or before the termination of this lease, LESSEE shall remove all of LESSEE’s
goods and effects from the leased premises. LESSEE shall deliver to LESSOR the leased premises and
all keys and locks thereto, all fixtures and equipment connected therewith,* and all alterations,
additions and improvements made to or upon the leased premises, whether completed by LESSEE, LESSOR
or others, including but not limited to any offices,** partitions, window blinds, floor coverings
(including computer floors), plumbing and plumbing fixtures, air conditioning equipment and
ductwork of any type, exhaust fans or heaters, water coolers, burglar alarms, telephone wiring,
telephone equipment. air or gas distribution piping, compressors, overhead cranes, hoists, trolleys
or conveyors, counters, shelving or signs attached to walls or floors, and all electrical work,
including but not limited to lighting fixtures of any type, wiring, conduit, EMT, transformers,
distribution panels, bus ducts, raceways, outlets and disconnects, and furnishings and equipment*
which have been bolted, welded, nailed, screwed, glued or otherwise attached to any wall, floor,
ceiling, roof, pavement or ground, or which have been directly wired to any portion of the
electrical system or which have been plumbed to the water supply, drainage or venting systems
serving the leased premises. LESSEE shall deliver the leased premises fully sanitized from any
chemicals or other contaminants, broom clean, and
in at least the same condition as they were at the commencement of this lease or any prior lease
between the parties for the leased premises, or as they were modified during said term with
LESSOR’s written consent, reasonable wear and tear only excepted. Any of LESSEE’s
property that
remains in the leased premises upon termination of the lease shall be deemed abandoned and
shall be
disposed of as LESSOR sees fit, with no liability to LESSEE for loss or damage thereto, and at he
sole risk of LESSEE. LESSOR may remove and store any such property at LESSEE’S expense,
retain same
under LESSOR’s control, sell same at public or private sale (without notice) and apply the net
proceeds of such sale to the payment of any sum due hereunder or destroy same*** in no case shall
the leased premises be deemed surrendered to LESSOR until the termination date provided herein or
such other date as may be specified in a written agreement between the parties notwithstanding the
delivery of any keys to LESSOR.

*except LESSEE’s equipment which contains its trade secrets

**permanent

****without continuing to pay rent and otherwise comply with its obligations under this
lease,

 *****10

 

 

     28. GENERAL. (a) The invalidity or unenforceability of any provision of this lease shall not affect
or render invalid or unenforceable any other provision hereof. (b) The obligations of this lease
shall run with the land, and this lease shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns except that LESSOR and OWNER shall be
liable for obligations occurring only while lessor or owner of the leased premises. (c) Any action
or proceeding arising out of the subject matter of this lease shall be brought by LESSEE within one
year after the cause of action has occurred and only in a court within the commonwealth of
Massachusetts. (d) If LESSOR is acting under or as agent for any trust or corporation, the
obligations of LESSOR shall be binding upon the trust or corporation, but not upon any trustee,
officer, director, shareholder, or beneficiary of the trust or corporation individually. (e) If
LESSOR is not the owner (OWNER) of the leased premises. LESSOR represents that OWNER has agreed to
be bound by the terms of this lease unless LESSEE is in default hereof. (f) This lease is made and
delivered in the commonwealth of Massachusetts and shall be interpreted, construed, and enforced in
accordance with the laws thereof. (g) This lease was the result of negotiations between parties of
equal bargaining strength, and when executed by both parties shall constitute the entire agreement
between the parties, superseding all prior oral and written agreements, representations, statements
and negotiations relating in any way to the subject matter herein. This lease may not be extended
or amended except by written agreement signed by both parties or as otherwise provided herein, and
no other subsequent oral or written representation shall have any effect hereon. (h)
Notwithstanding any other statements herein, LESSOR makes no warranty, express or implied,
concerning the suitability of the leased premises for LESSEE’s intended use. (i)* LESSEE agrees
that if LESSOR does not deliver possession of the leased premises as herein provided for any
reason, LESSOR shall not be liable for any damages to LESSEE for such failure, but LESSOR agrees to
use reasonable efforts to deliver possession to LESSEE at the earliest possible date. A
proportionate abatement of rent, excluding the cost of any amortized improvements to the leased
premises, for such time as LESSEE may be deprived of possession of the leased premises, except
where a delay in delivery is caused in any way by LESSEE, shall be LESSEE’s sole remedy. (j)
Neither the submission of this lease form or any amendment hereof, nor the prospective acceptance
of the security deposit and/or rent shall constitute a reservation of or option for the leased
premises, or an offer to lease, it being expressly understood and agreed that neither this lease
nor any amendment shall bind either party in any manner whatsoever unless and until it has been
executed by both parties. (k) LESSEE shall not be entitled to exercise any option or receive
LESSOR’s consent as provided for herein if LESSEE is at that time in** default of any terms or
conditions hereof. (I) Except as otherwise provided herein, neither LESSOR, nor OWNER, nor LESSEE
shall be liable for any special, incidental, indirect or consequential damages, including but not
limited to lost profits or loss of business, arising out of or in any manner connected with
performance or nonperformance under this lease, even if any party has knowledge of the possibility
of such damages. (m) The headings in this lease are for convenience only and shall not be
considered part of the terms hereof. (n) No restriction, condition or other endorsement by LESSEE
on any check, nor LESSOR’s deposit of any full or partial payment, shall bind LESSOR in any way or
limit LESSOR’s rights under this lease. (o) LESSOR, LESSEE, OWNER and GUARANTOR hereby waive any
and all rights to a jury trial in any proceeding in any way arising out of this lease. (p) LESSEE
shall pay LESSOR for*** legal and administrative expenses incurred by LESSOR in connection with any
consent requested by LESSEE or in enforcing any or all obligations of LESSEE under this lease. (q)
LESSEE will conform to all rules and regulations now or hereafter made by LESSOR for parking, for
the care, use, or alteration of the building, its facilities and approaches and for the
administration of this lease, and will not permit any employee or visitor to violate this or any
other covenant or obligation of LESSEE. (r) See attached Rider to Lease for additional provisions.

	*	 	Subject to the Rider to Lease,
	 
	**	 	material
	 
	***	 	reasonable

     [29. This
Paragraph Does Not Apply.]

     30. WAIVERS, ETC. No consent or waiver, express or implied, by LESSOR to or of any breach of any
covenant, condition or duty of LESSEE shall be construed as a consent or waiver to or of any other
breach of the same or any other covenant, condition or duty. If LESSEE is several persons,
several corporations or a partnership, LESSEE’s obligations are joint or partnership and also
several. Unless repugnant to the context, “LESSOR” and “LESSEE” mean the person or persons, natural
or corporate, named above as LESSOR and as LESSEE respectively, and their respective heirs,
executors, administrators, successors and assigns.

     [31. This
Paragraph Does Not Apply.]

     IN WITNESS WHEREOF, LESSOR and LESSEE have hereunto set their hands and common seals, intending to
be legally bound hereby this
21st day
of January,
2003.

	 	 	 	 	 	 	 	 	 	 	 
	LESSOR: CUMMINGS PROPERTIES, LLC	 	LESSEE: BIOTROVE, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Douglas Stephens	 	 	 	By:
	 	/s/ Colin Brenan	 	 
	 

	 	Duly authorized
	 	 	 	 	 	Duly authorized	 	 
	 

	 	 	 	 	 	Print name: Colin Brenan	 	 
	 

	 	 	 	 	 	 	 	            President & C.E.O.	 	 

 

 

12020630-RSY-14

CUMMINGS PROPERTIES, LLC

STANDARD FORM

RIDER TO LEASE

The following additional provisions are incorporated into and made a part of the attached lease:

     A. CONFLICTS. In the event of any conflict between any provision of this Rider to Lease and the
attached lease the provisions of this Rider shall govern.

     [B. THIS
PARAGRAPH DOES NOT APPLY.]

     [C. THIS
PARAGRAPH DOES NOT APPLY.]

     D. REMEDIES. Notwithstanding Section 20 above, in the event the entire balance of rent due under
this lease becomes due and payable as liquidated damages, said amount shall be discounted to its
net present value as of the date of LESSOR’s notice of default, using the published prime rate then
in effect. Furthermore, LESSEE’s covenants under this lease shall be independent of LESSOR’s
covenants, and LESSOR’s failure to perform any of its covenants under this lease, including a
covenant constituting a significant inducement to LESSEE to enter into this lease,* shall not
excuse the payment of rent or any other charges by LESSEE or allow LESSEE to terminate this lease.

	*	 	but excluding a failure to perform that constitutes a constructive eviction,

     E. PARKING. LESSEE shall be entitled to use, in common with others, a proportionate share of the
total number of common area parking spaces provided for the building (based on square footage
leased by LESSEE as compared with the total leasable square footage of the building). The number of
spaces used by LESSEE’s employees, agents and invitees shall not at any time exceed LESSEE’s
proportionate share of the total spaces for the building. For purposes of determining LESSEE’s
compliance with this paragraph at any time, the number of spaces used by LESSEE shall be presumed
to equal the number of persons who are then present at the leased premises.

     F. RECORDING AND SECURITY. Although LESSOR may choose at any time to record activities at the
building with unmonitored remote television cameras, LESSEE acknowledges and agrees that, as
provided in Section 15 above, LESSOR is not thereby or in any other way providing any security
service for LESSEE or its employees, agents, invitees, contractors and representatives, and that
LESSOR has made no representations whatsoever, written or oral, concerning the safety of the leased
premises or the presence, effectiveness or operability of any security devices or security
measures, or the safety or security of LESSEE, its employees, agents, invitees, callers, contractors and representatives, or LESSEE’s
property, against the criminal or wrongful acts of third parties. Additionally, LESSEE accepts full
responsibility for protecting the persons and property of LESSEE and those of its employees,
agents, invitees, callers, contractors and representatives, and (acknowledging that security
devices or measures may fail or be thwarted by criminals, by other third parties or by electrical
or mechanical malfunction), agrees not to rely on any such devices or measures, and to protect
itself, its property, and its employees, agents, invitees, callers, contractors and representatives
as if such devices or measures did not exist.

     [G. THIS
PARAGRAPH DOES NOT APPLY.]

     H. Notwithstanding the commencement date of this lease, the parties acknowledge and agree that 10-K
Gill Street is presently occupied by third parties. Upon full execution of this lease and full
payment of the security deposit, LESSOR will use reasonable efforts to obtain possession of said
premises from the existing tenants in sufficient time so that the modifications to the leased
premises described below may be substantially completed by March 21, 2003. In the event that
LESSOR fails for any reason to obtain, within one week after the date of LESSEE’s execution of this
lease and the mutually agreed upon plan and specifications dated January 14, 2003 attached hereto,
adequate assurances, satisfactory to LESSE in its reasonable discretion, for timely possession of
said premises, LESSOR shall so notify LESSEE in writing, and LESSEE may within five days thereafter
elect to terminate this lease by written notice to LESSOR, in which event the security deposit and
any other amounts paid by LESSEE to LESSOR shall be refunded, this lease shall terminate, and
neither party shall be further obligated hereunder.

 

 

12020630-RSY-14

RIDER TO LEASE

(Continued)

     I. * Notwithstanding monthly rent as provided in Section l above, LESSEE may deduct
$2,086.50 per month from each monthly rental payment due from April l, 2003 through
March 30, 2005 (only), provided LESSEE is not in default of the lease or in arrears of any
rent or invoice payments. Time is of the essence.

     J. LESSOR, at a cost incorporated in the base rent, shall use all best reasonable efforts to
substantially complete modifications to the leased premises according to the attached plan and
specifications dated January 14, 2003 (“LESSOR’s work”) on or before March 21, 2003.
Notwithstanding the commencement date of this lease, upon substantial completion of LESSOR’s work,
LESSEE may take possession of the leased premises and rent shall commence, and the discount
provided in Paragraph I above shall be prorated for any rent due prior to April 1, 2003.

     K. Either party shall have the option to cancel this lease if LESSOR fails for any reason to
commence LESSOR’s work on or before February 3, 2003, by serving the other party with written
notice to that effect on or before February 7, 2003. All monies paid by LESSEE hereunder shall then
be refunded to LESSEE, this lease shall terminate, and neither party shall be further obligated
hereunder. LESSOR agrees that upon its commencement of LESSOR’s work it shall continue such work
with best efforts. Time is of the essence.

     L. LESSOR’s failure to deliver possession on or before March 21, 2003 shall not affect the
validity of this lease or the obligations of LESSEE under this lease, except, however, the payment
of rent shall not commence until LESSOR’s work is substantially complete (except for punch list
items). Moreover, if LESSOR’s work is not substantially complete by March 21, 2003, LESSEE shall
be entitled to a credit of $750 per day from March 22, 2003 through April 4, 2003, and a credit of
$1,500 per day thereafter until April 28, 2003, which credits shall be applied against future rent
and shall terminate when LESSOR’s work is substantially complete. In the alternative, in the event
LESSOR substantially completes LESSOR’s work prior to March 21, 2003, LESSEE shall pay, in addition
to monthly rent, a rent premium of $750 per day until March 21, 2003. Moreover, in the event
LESSOR is unable to deliver possession on or before April 28, 2003, LESSEE shall have the option to
terminate this lease without penalty by giving LESSOR written notice to that effect on or before
May 1, 2003, whereupon neither party shall have any further obligation to the other and all monies
paid by LESSEE hereunder shall be refunded. This abatement of rent, rent credit and termination of
the lease shall be LESSEE’s sole and exclusive remedies for any failure by LESSOR to deliver
possession as provided herein. In the event LESSEE in any way delays LESSOR in such a way that
LESSOR is actually delayed in delivering possession (which shall include without limitation any
additions and/or changes requested by LESSEE to the scope of LESSOR’s work, any delay in LESSEE
providing information to LESSOR for any permits or plans and any interference by LESSEE or LESSEE’s
contractor with LESSOR’s work), there shall be no abatement of rent or rent credit for the period
of delay, and the above dates for substantial completion, delivery, rent premium and credits and
notice of termination shall be extended by the length of such delay. Time is of the essence.

     M. During LESSOR’S work, LESSEE and its consultant shall be entitled to inspect the leased premises
on a weekly basis, provided LESSEE does not interfere in any way with the progress of LESSOR’s
work. Upon substantial completion, LESSEE and its consultant shall be entitled to inspect LESSOR’s
work together with LESSOR, and the parties shall mutually agree upon a punch list of items to be
completed. LESSOR shall then use reasonable efforts to complete the punch list items, to the
reasonable satisfaction of LESSEE, 30 days after the list is compiled.

     N. LESSOR agrees that LESSOR’s work shall be completed in a good and workerlike manner and in
compliance with applicable laws. LESSOR shall warrant LESSOR’s workmanship and any materials LESSOR
supplies for 90 days after substantial completion and shall assign any manufacturers’ warranties
to LESSEE on a non-exclusive basis. “Substantially complete”, as used in this lease, shall mean the
leased premises are substantially in compliance with the attached plans and specifications, LESSOR
has obtained a temporary or permanent certificate of occupancy for LESSOR’s work, and LESSOR’s work
is complete to such a degree that LESSEE may use and occupy substantially the entire leased
premises for its intended use, in the reasonable judgment of both parties.

 

 

12020630-RSY-14

RIDER TO LEASE

(Continued)

     P. At any one time during the term of this lease, provided LESSEE is not then in default of this
lease or in arrears of any rent or invoice payments, LESSEE shall have the option to lease larger
similar space of approximately 30,000 to 38,000 square feet. LESSEE shall give LESSOR written
notice of such requirement for larger space, and shall then execute LESSOR’s then current standard
form lease with changes comparable to those herein or amendment to lease for such larger space in
the same or other buildings of LESSOR at LESSOR’s then current published rates for a term
equivalent to the initial term of this lease within one week after LESSOR’s written notice to
LESSEE that said larger space will be available. If LESSOR does not offer such larger similar space
within six months after receipt of written notice from LESSEE, then LESSEE shall have the option
within 30 days thereafter to terminate the unexpired portion of this lease, without penalty, by
serving LESSOR with 30 days written notice to that effect. Cancellation of the lease shall be
LESSEE’s exclusive remedy for any failure by LESSOR to offer such larger similar space or any
breach by LESSOR of the provisions of this paragraph. Time is of the essence.

     Q. LESSEE shall have the right to assign this lease to an entity in which LESSEE owns at least a 50
percent interest, an entity which owns at least a 50 percent interest in LESSEE, an entity which is
under common control with LESSEE, an entity which is formed as a result of a merger or
consolidation involving LESSEE, or an entity which purchases all or substantially all of LESSEE’s
assets, without further consent from LESSOR, provided LESSEE serves LESSOR with prior written
notice to that effect, together with all required certificates of insurance from the assignee. The
provisions of Section 11 shall govern said assignment in all other respects.

     R. * LESSOR represents and warrants that OWNER is the sole and exclusive owner of the leased
premises, holding good and clear record and marketable title thereto, free from encumbrances,
except for encumbrances that will not adversely affect LESSEE’s use and enjoyment of the leased
premises for the purposes permitted hereunder.

     S. LESSEE’s agreement to subordinate this lease to any and all mortgages and/or other instruments
in the nature of a mortgage, now or at any time in the future, is conditional upon the mortgagee’s
agreement that LESSEE’s possession will not be disturbed so long as LESSEE is not in material
default in the payment of rent or other covenants or obligations hereof.

     T. * LESSEE shall reasonably and quietly have, hold and enjoy the leased premises for the term
hereof without hindrance or molestation from LESSOR, provided LESSEE is not in arrears of any rent
or invoice payment and is in full compliance with all terms, conditions and obligations of this
lease.

     U. * LESSEE shall have access to the leased premises seven days per week, 24 hours per day. LESSEE
acknowledges and agrees that LESSOR has no responsibility for providing any security services for
the leased premises, and LESSEE assumes any and all risks in that regard.

     V. * With reference to Section 25 above, no hazardous materials or hazardous wastes shall be used,
processed, stored, or disposed of in any manner or form within the leased premises or any extension
thereof in violation of any applicable local, state, or federal law, rule or regulation. LESSEE
shall be solely responsible for and shall indemnify and hold LESSOR harmless from any and all
liability, damage or personal injury associated with any use, processing, storage, or disposal of
such materials.

     W. Prior to the termination date of this lease, LESSEE, at LESSEE’s sole expense, shall engage an
independent and certified industrial hygienist (“the CIH”) to prepare a decontamination work plan
for the leased premises in accordance with all CIH professional standards and all applicable laws
to address all conditions arising out of LESSEE’s tenancy. LESSEE shall provide a copy of said plan
to LESSOR. LESSEE shall then complete all measures specified in said plan, including cleaning and
testing all surfaces and other building

     X. Prior to delivery of the leased premises, LESSOR shall provide LESSEE with certification by a
CIH that, based on information available to LESSOR and the CIH concerning the operations of the
current occupants of the leased premises, the leased premises are free from any harmful chemical,
biological or other contamination arising out of the current occupants’ tenancy, in accordance with
all applicable CIH professional standards and all applicable laws. Said certification shall
confirm the clean condition of all ductwork, plumbing fixtures, drains, tanks, mechanical systems,
cabinetry, casework, all other surfaces, and the indoor air quality at the leased premises,
excluding any equipment, furniture, or furnishings that LESSEE may purchase from the current
occupants, and shall specify that there are not restrictions on future use and occupation by others
based on information available to LESSOR concerning the current occupants’ use.

 

12020630-RSY-14

RIDER TO LEASE

(Continued)

components recommended therein. The CIH shall certify that as of the termination date of this
lease, the entire leased premises and any extension thereof used in any way by LESSEE are free from
any harmful chemical, biological or other contamination arising out of LESSEE’s tenancy, in
accordance with all applicable CIH professional standards and all applicable laws. Said
certification shall confirm the clean condition of all ductwork, plumbing fixtures, drains, tanks,
mechanical systems, cabinetry, casework, all other surfaces, and the indoor air quality at the
leased premises, and shall specify that there are no restrictions on future use and occupation by
others, all based on LESSEE’s use. This certification and any required and recommended cleaning
shall be completed prior to the termination of this lease. Time is of the essence.

     Y. LESSEE’s maintenance obligations as provided in Section 10 above specifically include, but are
not limited to, at least usual and customary maintenance and cleaning of all plumbing drains, vents
and grease traps, as well as air vent filters, and all other maintenance necessitated by LESSEE’s
use and operation of the leased premises. In addition, LESSEE acknowledges and agrees that the
plumbing, electrical, heating and cooling systems provided and maintained by LESSOR are intended
and sized only for normal office and industrial use, and any additional maintenance or additional
equipment necessitated by LESSEE’s use and operation of the premises shall be at LESSEE’s sole
expense.

     Z. LESSEE shall notify LESSOR in writing 30 days prior to the expiration of the lease term of
LESSEE’s compliance with its inspection and maintenance obligations as stated above.

     AA. * The preceding two paragraphs regarding LESSEE’s responsibility for maintenance of the
premises are a key consideration of this lease.

     BB. Provided LESSEE is not then in default of this lease or in arrears of any rent or invoice
payment, LESSEE shall have two options to extend this lease, including all terms, conditions,
escalations, etc., each for one additional period of three years (“the first option term” and “the
second option term” respectively or collectively “the option terms”) by serving LESSOR with written
notice of its desire to so extend the lease. The time for serving such written notice shall be not
more than 12 months or less than 6 months prior to the expiration of the then current lease term.
Time is of the essence.

     CC. Notwithstanding the provisions of Section 1, annual base rent during the option terms shall be
recalculated at LESSOR’s published annual rental rate less two dollars per square foot as of the
commencement of the applicable option term for similar space, but shall in no case be less than the
annual base rent, plus all “Cost of Living” adjustments, that would otherwise be in effect as of
the commencement of the applicable option term. The base month from which to determine the amount
of each “Cost of Living” adjustment during the first option term shall then be changed to January
2008, the “comparison” month shall be changed to November 2008, and the first adjustment during the
first option term shall take place with the rent due on January 1, 2009. The base month from which
to determine the amount of each “Cost of Living” adjustment during the second option term shall be
changed to January 2011, the “comparison” month shall be changed to November 2011, and the first
adjustment during the second option term shall take place with the rent due on January 1, 2012.
Section 1 shall continue to apply in all other respects during the option terms.

 

12020630-RSY-14

RIDER TO LEASE

(Continued)

     DD. In the event LESSOR approves a sublease or an assignment of the lease, LESSEE shall pay LESSOR
on the 10th of each month during the period of the sublease or assignment, 50 percent of any amount
by which the payments due to LESSEE under the sublease or assignment exceed the rent payment due
from LESSEE to LESSOR for that month, less any out-of-pocket expenses incurred by LESSEE in
subleasing or assigning. Such amount shall, however, be calculated on a proportionate basis in the
case of a sublease of only a portion of the leased premises. LESSEE shall not be obligated to make
any such monthly payment to LESSOR for any month in which LESSEE does not receive its payment.

     EE. Except in the case of an emergency and subject to Section 13 above, LESSOR’s access to the
leased premises will be at such times as will not unreasonably interfere with the normal business
operations of LESSEE.

     FF. LESSOR consents to LESSEE’s access to the roof of the building for maintenance of non-building
standard HVAC and mechanical equipment serving the leased premises (only). LESSEE further agrees
that no other work shall be carried on or any other equipment installed on the roof without the
prior written consent of LESSOR, which shall not be unreasonably withheld. LESSEE shall be fully
responsible for, and agrees to indemnify and hold LESSOR harmless from, any and all property damage
and personal injury associated in any way with the activities of LESSEE and LESSEE’s agents,
employees and contractors on the roof and/or the location, installation or maintenance of LESSEE’s
equipment on the roof, except for any location or installation by LESSOR, including, but not
limited to, damage to the watertight integrity of the roof and the roof membrane from whatever
cause.

     GG. In lieu of the $170,700 cash security deposit provided for in Section 2 above, LESSEE may
substitute an Irrevocable Letter of Credit negotiable on sight in the amount of $170,700, provided
said Letter of Credit is issued by a commercial bank acceptable to LESSOR with a letter of credit
paying office in the Boston, Massachusetts area; provides for payment to LESSOR immediately and on
sight upon LESSOR’s delivery to the bank of a statement that the drawing represents amounts due to
LESSOR from LESSEE under this lease or is otherwise permitted under this lease; terminates no
earlier than two months after the termination of the lease; and is otherwise in a form acceptable
to counsel for LESSOR. LESSOR shall serve LESSEE with written notice of its intention to draw on
said Letter of Credit for any non-monetary default by LESSEE. In addition, LESSOR shall be entitled
to draw on said Letter of Credit and hold the proceeds as a cash security deposit in the event
LESSOR feels insecure about the continuing solvency of the issuing bank. Either the Letter of
Credit or the cash security deposit for which it is being substituted shall be delivered to LESSOR
upon LESSEE’s execution of this lease. If the cash security deposit is paid, LESSOR shall then
refund it to LESSEE upon delivery to LESSOR of a Letter of Credit that fully complies with this
paragraph. LESSEE shall pay LESSOR for legal and administrative expenses incurred by LESSOR in
connection with this Letter of Credit.

     HH. * LESSOR agrees to erect signage designating four parking spaces in front of the leased
premises for short term visitor parking. LESSOR shall have no responsibility for enforcing said
parking restriction.

     II. * LESSEE may install and maintain at LESSEE’s sole expense an illuminated exterior sign on the
building in a location to be designated by LESSOR and in compliance with LESSOR’s design and
construction standards and any and all ordinances, bylaws, and state and local building codes. In
the event LESSEE fails to maintain said sign in good working order and condition, LESSOR may elect
to have said sign repaired or removed from the building at LESSEE’s sole expense. In addition,
prior to commencement of installation, LESSEE shall obtain all necessary permits and LESSOR’s
written consent as to size, graphics, construction and the like.

     JJ. * In the event this lease is terminated and LESSEE pays LESSOR accelerated rent in accordance
with the provisions of Section 20 herein, LESSOR shall credit LESSEE for any rents actually
received by LESSOR over the balance of the lease term minus all costs incurred by LESSOR in
re-letting the premises. LESSOR shall use reasonable efforts to re-let the leased premises.
LESSOR’s failure to re-let the leased premises despite LESSOR’s reasonable efforts shall not limit
LESSEE’s liability hereunder.

 

12020630-RSY-14

RIDER TO LEASE

(Continued)

     KK. To the extent that compensation is unavailable under LESSEE’s business
interruption or other insurance coverage, LESSEE shall receive a proportionate abatement of rent in
the event that the leased premises are rendered substantially unusable for the purposes set forth
in Section 3 for at least 10 business days as a result of LESSOR’s failure to maintain the
structure and fire alarm, electrical, plumbing, HVAC and/or water systems to the extent they are
LESSOR’s responsibility to maintain hereunder. This paragraph shall not apply, however, in the case
of any interruption caused in any way by LESSEE or its employees or agents.

     LL. In the event LESSOR shall default in the performance of any of its obligations hereunder,
and such default shall continue for 30 days after written notice thereof from LESSEE, or longer if
the default cannot reasonably be cured in 30 days, and LESSOR commences to cure the default within
the 30-day period but then fails to diligently proceed with a cure (or, in the event of an
emergency, such shorter period as may be reasonable under the circumstances), then LESSEE shall
have the right to perform such work or cure such default, and LESSOR shall promptly reimburse
LESSEE for reasonable and necessary costs and expenses paid by LESSEE to any third party to cure
such default.

     MM. LESSOR agrees to carry out its maintenance obligations under this lease in a good and
workerlike manner.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LESSOR: CUMMINGS PROPERTIES, LLC	 	 	 	LESSEE: BIOTROVE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Douglas Stephens	 	 	 	By:	 	/s/ Colin Brenan	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Duly authorized	 	 	 	 	 	Duly authorized
	 	 
	Date:

	 	1/21/03	 	 	 	 	 	Print Name:	Colin Brenan	 	 
	 

	 	 	 	 	 	 	 	 	 	Illegible	 	 

 

 

01030051-RSY-C

CUMMINGS PROPERTIES, LLC

STANDARD FORM

AMENDMENT TO LEASE # 1

     In connection with a lease currently in effect between the parties at 10-J and 10-K Gill
Street Woburn, Massachusetts, executed on January 21, 2003 and terminating March 30, 2008 and in
consideration of the mutual benefits to be derived herefrom, Cummings Properties, LLC, LESSOR, and
BioTrove, Inc., LESSEE, hereby agree, effective January 24, 2003, to amend said lease as follows:

	1.	 	The location of the leased premises is hereby changed from 10-J and 10-K Gill Street to 12 Gill
Street, Suite 4000, Woburn, Massachusetts. As a result of this relocation, the size of the leased
premises is hereby increased to a new total of approximately 22,459 square feet (including 12%
common area), as further shown on the mutually agreed upon plan and specifications dated January
24, 2003 attached hereto.
	 
	2.	 	Paragraph H of the Rider to Lease are hereby deleted and of no further force or effect, and
LESSOR represents and warrants that the leased premises are not currently occupied by any other
party and that no other party has a claim to possession of the leased premises or any portion
thereof.
	 
	3.	 	Paragraph O of the Rider to Lease is hereby deleted and replaced by the following. LESSEE shall
pay LESSOR $313,787.25 in rent upon LESSEE’s execution of this amendment, which payment shall be
applied to the first seven months of the lease term.
	 
	4.	 	Paragraph X of the Rider to Lease is hereby deleted and replaced by the following. LESSOR shall
provide LESSEE with certification in form and substance reasonably satisfactory to LESSEE that any
used laboratory equipment that is incorporated into LESSOR’s work shall be clean of contamination.
	 
	5.	 	The mutually agreed upon plan and specifications attached hereto, dated January 24, 2003, shall
be substituted for the plan and specifications dated January 14, 2003 attached to the lease and
referred to in Paragraph J of the Rider to Lease. All references to “LESSOR’s work” in the Rider to
Lease and this amendment shall refer to the attached plan and specifications dated January 24,
2003.
	 
	6.	 	LESSOR, at no further cost to LESSEE, shall provide up to 32 Trendway workstations for LESSEE’s
use at the leased premises during the term of this lease, which shall be available for installation
at the leased premises by LESSEE on or before the completion of LESSOR’s work. LESSEE shall be
responsible for reimbursing LESSOR its costs and expenses for disassembling said workstations from
their current location, and then LESSEE shall be responsible for the set-up, reinstallation and
wiring of said workstations. LESSOR shall store the workstations at no charge to LESSEE during
LESSOR’s work. LESSEE acknowledges that said workstations are now in good condition and repair, and
LESSEE agrees to return said workstations to LESSOR in the same condition, reasonable wear and tear
(only) excepted, upon vacating the leased premises.
	 
	7.	 	The parties acknowledge and agree that, as of the execution
of this amendment, not all of the
perimeter walls of the leased premises have been built. Accordingly, after completion of the
modifications provided for herein, LESSOR shall carefully measure the entire leased premises, and
if the size including common area does not equal the total number of square feet set forth in
Section 1 of this amendment, LESSOR shall notify LESSEE in writing of the actual revised square
footage, and said actual square footage shall be substituted for the figure in this amendment.
	 
	8.	 	Notwithstanding Section 14 of the lease, the control of snow and ice on all walkways, steps and
loading areas serving the leased premises and all other areas not readily accessible to plows shall
be the sole responsibility of LESSOR. In all other respects, Section 14 shall remain unchanged.
	 
	9.	 	Notwithstanding Section 24 of the lease, a shared dumpster or compactor shall be provided by
LESSOR, and LESSEE shall pay the disposal firm or LESSOR, as applicable, LESSEE’s proportionate
share of any costs associated therewith.
	 
	10.	 	LESSOR hereby represents to LESSEE that the floor load capacity of the leased premises,
including without limitation the deflection and vibration of the floor itself, is sufficient to
accommodate the equipment set forth in the attached Exhibit A, in mutually agreed upon locations.
In the event the floor load capacity is not sufficient, in the reasonable judgment of LESSEE’s
engineer, LESSOR shall remediate the problem in order to reasonably accommodate said equipment at
LESSOR’s expense. In the event LESSEE desires to install additional equipment in the future for
which the floor load capacity is not sufficient then LESSOR at LESSEE’s expense shall reinforce the
floor or LESSOR shall

 

 

	 	 	provide LESSEE with additional space elsewhere to house said equipment, which space shall be added
to the leased premises on comparable terms.
	 
	11.	 	LESSEE shall have unrestricted access to the freight elevator in common with other occupants of
the building during the term of the lease, subject to LESSOR’s reasonable rules and regulations. In
the event any item of LESSEE’s cannot fit in the freight elevator, LESSEE, at LESSEE’s expense,
shall have the right to remove a window and have its item loaded into the leased premises via crane
or other method. LESSEE shall replace the window in a good and workerlike manner.

     This amendment shall not bind either party in any manner until it has been executed by both
parties. All other terms, conditions and covenants of the lease shall continue to apply, and to the
extent any inconsistency exists between this amendment and the lease, including any prior
amendments, the conditions herein shall control and supersede any earlier provisions.

     In Witness Whereof, LESSOR and LESSEE have hereunto set their hands and common seals this
24th
day of January, 2003.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LESSOR: CUMMINGS PROPERTIES, LLC	 	 	 	LESSEE: BIOTROVE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Douglas Stephens	 	 
	 	By:	 	/s/ Tanya Kanigan	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Duly Authorized	 	 	 	 	 	Duly Authorized
	 	 
	11/2002	 	          1/28/03	 	 	 	 	 	Print Name:	 	Tanya Kanigan	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 

 

 

01040062-DRS-I

CUMMINGS PROPERTIES, LLC

STANDARD FORM

LEASE EXTENSION

     In connection with a lease currently in effect between the parties at 12 Gill Street, Suite 4000,
Woburn, Massachusetts, fully executed on January 21, 2003 and terminating March 30, 2008, and in
consideration of the mutual benefits to be derived herefrom, Cummings Properties, LLC, LESSOR, and
BioTrove, Inc., LESSEE, hereby agree, effective April 1, 2004, to amend said lease as follows:

	 	1.	 	The lease is hereby extended for an additional term of one (1) year ending at noon on March 30,
2009.
	 
	 	2.	 	Base rent is hereby changed to six hundred fifty one thousand four hundred nine (651,409)
dollars per year or $54,284.08 per month.
	 
	 	3.	 	The base month from which to determine the amount of each annual increase in the “Cost of
Living” shall be November 2003, which figure shall be compared with the figure for November 2004,
and each November thereafter to determine the percentage increase (if any) in the base rent to be
paid during the following calendar year.
	 
	 	[4.	 	THIS PARAGRAPH DOES NOT APPLY.]
	 
	 	5.	 	The lease, including all terms, conditions, escalations, etc. shall be automatically extended
for additional successive periods of five (5) years each unless LESSOR or LESSEE shall serve
written notice, either party to the other, of either party’s desire not to so extend the lease. The
time for serving such written notice shall be not more than twelve months or less than six months
prior to the expiration of the then current lease period. Time is of the essence.
	 
	 	6.	 	To the extent any inconsistency exists between this Lease Extension and the lease, including any
prior amendments, the conditions contained herein shall control and supersede any earlier
provisions. Neither the submission of this Lease Extension, nor the prospective acceptance of any
increase in the security deposit, shall constitute a reservation of or option for the leased
premises, it being expressly understood and agreed that this Lease Extension shall not bind either
party in any manner whatsoever until it has been executed by both parties.
	 
	 	7.	 	The size of the leased premises is hereby increased by approximately 10,026 square feet
(including 0.3% common area), with the addition of 10-R Gill Street as shown on the mutually agreed
upon plan attached hereto (the “Attached Plan”). With this addition, the leased premises shall
consist of approximately 22,585 square feet (including 12% common area) at 12 Gill Street and
approximately 10,026 square feet (including 0.3% common area) at 10-R Gill Street.
	 
	 	8.	 	LESSEE agrees to take possession of 10-R Gill Street in “as is” condition, except LESSOR, at
LESSOR’s cost, shall construct a demising wall for 10-R Gill Street, construct a loading dock as
shown on the Attached Plan, and provide a 120V/208V, 200 AMP electrical service before or about the
completion date of any alterations to be completed pursuant to the New Plan as defined in Section
12 below.
	 
	 	9.	 	* The parties acknowledge and agree that, as of the execution of this Lease Extension, not all
of the perimeter walls of 10-R Gill Street have been built. Accordingly, upon completion of the
modifications provided for herein, LESSOR shall carefully measure 10-R Gill Street, and if the size
including common area does not equal the number of square feet set forth above, LESSOR shall notify
LESSEE in writing of the actual revised square footage and the corresponding increase or decrease
in rent, based on the same rate per square foot for 10-R Gill Street used in this Lease Extension,
and said actual square footage and adjusted rent shall be substituted for the figures herein.
	 
	 	10.	 	LESSOR, if requested to do so by LESSEE and at LESSEE’s sole expense, shall make alterations
necessitated by LESSEE’s use of 10-R Gill Street according to a plan to be mutually agreed upon by
both parties (the “New Plan”). Any such alterations shall be considered “non-building standard” for
maintenance purposes pursuant to Section 10 of the lease. At LESSEE’s request, up to half of the
charges for all alterations agreed to in advance and completed by LESSOR or LESSOR’s agents may be
incorporated into the lease by separate amendment to be attached hereto, amortized with interest at
nine percent per annum, and then paid for by LESSEE in the same manner as base rent which shall
otherwise be due.

 

 

LEASE EXTENSION

(Continued)

	 	11.	 	If LESSOR should make any alterations and amortize the cost thereof under the preceding
paragraph, then LESSEE shall provide LESSOR with additional security, which may include a letter of
credit, in an amount and form satisfactory to LESSOR and LESSOR’s counsel to ensure payment of all
charges to be amortized.
	 
	 	12.	 	On or before the commencement date of a lease between LESSOR and a third party for all or part
of the vacant space that is contiguous to 10-R Gill Street, LESSOR shall construct, at a charge to
LESSEE of $14,000, the hallway shown as the hatched area on the Attached Plan. Prior to that date,
LESSEE may use the additional egress for emergency purposes (only).
	 
	 	13.	 	Upon substantial completion of said hallway, the size of the leased premises shall be increased
by approximately 385 square feet (including 0.3% common area), and the annual base rent shall be
increased by $2,887.50.
	 
	 	14.	 	LESSOR, at its cost, may at any time, subject to LESSEE’s approval, which approval shall not be
unreasonably withheld or delayed, relocate the additional egress and the hallway to a different
location at 10 Gill Street, and the size of the leased premises and annual base rent shall be
adjusted accordingly.
	 
	 	15.	 	LESSOR, at no further cost to LESSEE, shall make available an additional 35 used Trendway
workstations for LESSEE’s use at the leased premises. LESSEE shall be responsible for the removal
and disassembly of said workstations from their current location and for the reinstallation and
wiring of said workstations at the leased premises. LESSEE acknowledges that said workstations are
now in good condition and repair, and LESSEE agrees to return said workstations to LESSOR in the
same condition, reasonable wear and tear (only) excepted upon vacating the leased premises.
	 
	 	16.	 	Nothing in this Lease Extension is intended to affect the $2,086.50 per month discount in
Paragraph I of the Rider to Lease, provided LESSEE is not in default of the lease or in arrears of
any rent or invoice payments.
	 
	 	17.	 	LESSEE shall pay LESSOR $11,000 to upgrade the existing electrical service in place from 200
AMPs to 600 AMPs on or before the completion date of the New Plan.

All other terms, conditions and covenants of the lease shall continue to apply. In Witness Whereof,
LESSOR and LESSEE have hereunto set their hands and common seals this 3rd day of March, 2004.

	 	 	 	 	 	 	 	 	 	 	 
	LESSOR: CUMMINGS PROPERTIES, LLC	 	 	 	LESSEE: BIOTROVE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Dennis Clarke
 

	 	 
	 	By:
	 	/s/ R. M. STODDARD
 

	 	 
	Duly Authorized
Duly Authorized
	 	 	 	Print Name: R. M. STODDARD	 	 

10/03

 

 

02030109-RSY-B

CUMMINGS PROPERTIES, LLC

STANDARD FORM

CONSENT AND WAIVER

     For valuable consideration, the receipt of which is hereby acknowledged, Cummings Properties. LLC,
LESSOR, hereby consents to the security interest as provided hereinafter for the benefit of Oxford
Finance Corporation LENDER, in connection with a lease executed on January 21, 2003 and terminating
on March 30, 2008, at 12 Gill Street, Suite 4000, Woburn,
Massachusetts between LESSOR and BioTrove,
Inc., LESSEE, subject to the following provisions;

	1.	 	LENDER represents that it has been granted a security interest by LESSEE in and to LESSEE’s
goods, inventory, furniture and/or equipment (EQUIPMENT). LESSEE similarly represents that it has
granted said security interest to LENDER.
	 
	2.	 	LESSOR agrees not to interfere with LENDER’s enforcement of its rights in and to the EQUIPMENT,
including the removal of same if LENDER determines it necessary to do so. LENDER, however, shall
pay LESSOR for any physical damage to the leased premises in any way caused by LENDER’s actions in
this regard. LESSOR acknowledges receipt of $350 towards its expenses in connection with this
consent, and LESSEE shall, upon LESSEE’s execution of this Consent and Waiver, pay any additional
charges that may be due.
	 
	3.	 	LENDER also agrees to indemnify and hold LESSOR harmless from any and all liability, damages and
claims in any way associated with LENDER’s actions and
LENDER’s enforcement of its rights in
connection with its security interest.
	 
	4.	 	LENDER further agrees to provide LESSOR with a copy of any UCC financing statement and/or UCC
termination statement relating to the EQUIPMENT upon the filling of same.
	 
	5.	 	LESSOR’s consent as stated in this agreement shall not serve to alter or modify any aspect of
the lease. Specifically, all leasehold improvements or alterations, including but not limited to
those items referred to in Section 27 of the lease, shall remain a part of the leased premises and
may not be removed at any time.
	 
	6.	 	If LENDER exercises its right under its security interest, LENDER agrees to assume LESSEE’s
obligations under the lease including payment to LESSOR of the then current rental rate for use and
occupancy of the leased premises, from the date on which LENDER takes possession to the date on
which the leased premises are completely vacated and surrendered to LESSOR in proper condition as
provided in the lease.
	 
	7.	 	This agreement shall inure to the benefit of LESSOR, LESSEE and LENDER, respectively, their
successors and assigns, and shall be binding upon LESSOR, LESSEE and LENDER, respectively, and
their successors and assigns.
	 
	8.	 	In the event that LESSOR holds a security interest in the EQUIPMENT, LESSOR and LENDER agree
that their respective security interests shall have the same priority status.
	 
	[9.	 	THIS PARAGRAPH DOES NOT APPLY.]
	 
	[10.	 	THIS PARAGRAPH DOES NOT APPLY.]

     In Witness Whereof LESSOR, LESSEE and LENDER have hereunto set their hands and common seals this
28TH
 day of March, 2003.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LESSOR: CUMMINGS PROPERTIES, LLC	 	 	 	LESSEE: BIOTROVE,
INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Douglas Stephens	 	 	 	By:	 	/s/ Robert Stoddard	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	               Duly Authorized	 	 	 	 	 	 	 	Duly Authorized	 	 
	 	 	4/7/03	 	 	 	Print Name:	 	ROBERT STODDARD	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	LENDER: OXFORD FINANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/
Michael J. Altenburger, CFO	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Duly Authorized	 	 
	 	 	 	 	 	 	Print Name:	 	Michael J. Altenburger	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

 

 

03040
210-JTH-1

CUMMINGS PROPERTIES, LLC

STANDARD FORM

AMENDMENT
TO LEASE # 2

     In
connection with a lease currently in effect between the parties at 12 Gill Street, Suite
4000 and 10-R Gill Street, Woburn, Massachusetts, fully executed on January 21, 2003 and terminating
March 30, 2009, and in consideration of the mutual benefits to be derived herefrom, Cummings
Properties, LLC, LESSOR, and BioTrove, Inc., LESSEE, hereby agree, effective June 1, 2004, to amend
said lease as follows:

	1.	 	Base rent is hereby changed to six hundred fifty nine thousand two hundred seventy three (659,273) dollars per year or $54,939.41 per month.
	 
	2.	 	The base month from which to determine the amount of each annual increase in the “Cost of
Living” shall be November 2003, which figure shall be compared with the figure for November 2004,
and each November thereafter to determine the percentage increase (if any) in the base rent to be
paid during the following calendar year.

	 
	[3.	 	THIS PARAGRAPH DOES NOT APPLY.]

	 
	4.	 	The size of the leased premises at 10-R Gill Street (“10-R”) is hereby increased by
approximately 322 square feet (including .3% common area), from approximately 10,026 square feet
(including .3% common area), to a new total of approximately 10,348 square feet (including .3%
common area) with the addition of the cross-hatched area and a pro-rata share of the common
electric room and shared vestibule shown on the mutually agreed upon plan attached hereto (the “New
Plan” referred to in Section 10 of the Lease Extension dated March 3, 2004 (“the March
Extension”)). The leased premises shall now consist of approximately 22,585 square feet (including
12% common area) at 12 Gill Street, Suite 4000 and approximately 10,348 square feet (including 0.3%
common area) at 10-R. Section 13 of the March Extension shall continue to apply.
	 
	5.	 	LESSOR, at LESSOR’s cost, shall modify 10-R (only) according to the New Plan before or about 60
days following full execution of this amendment.
	 
	6.	 	If for any reason other than delay requested or caused by LESSEE (which shall include without
limitation any additions and/or changes requested by LESSEE to the
scope of LESSOR’s work, any
delay in LESSEE providing information to LESSOR for any permits or plans, and/or any interference
by LESSEE or LESSEE’s contractor with LESSOR’s work), LESSOR does not substantially complete,
except for punch list items, the modifications shown on the New Plan as provided in Section 5
above, then LESSEE shall be entitled to a rent abatement of $201.25 per month, to be apportioned
for any partial month, from June 1, 2004 until LESSOR substantially completes its work, but in no
case beyond August 31, 2004. This abatement of rent shall be
LESSEE’s sole remedy for any delay by
LESSOR in completing its work.
	 
	7.	 	Notwithstanding Section 10 of the March Extension, the parties acknowledge and agree that
charges totaling $26,340, comprised of the $14,000 and $11,000 charges referred to in Sections 12
and 17 of the March extension and a $1,340 charge for installation of two exterior windows, as
shown on the New Plan, have been amortized without interest and incorporated into the rent provided
for in Section 1 above.
	 
	8.	 	The parties acknowledge and agree that, as of the execution of this amendment, not all of the
perimeter walls of 10-R as increased herein have been built. Accordingly, upon completion of the
modifications provided for herein, LESSOR shall carefully measure 10-R, and if the size including
common area does not equal the number of square feet set forth above, LESSOR shall notify LESSEE in
writing of the actual revised square footage and the corresponding increase or decrease in rent,
based on the same rate per square foot used for 10-R in this amendment, and said actual square
footage and adjusted rent shall be substituted for the figures herein.
	 
	9.	 	LESSOR, if requested to do so by LESSEE, and at LESSEE’s sole expense, shall install one handicap
ramp, in accordance with LESSOR’s building standard specifications, to serve 10-R and the adjoining
premises. LESSOR agrees there shall be no rent increase resulting
from LESSEE’s non-exclusive use
of the outside area for said ramp.

 

 

AMENDMENT TO LEASE #2

(Continued)

	10.	 	Paragraph CC of the Rider to Lease is hereby deleted and the following shall now apply.
Notwithstanding the provisions of Sections 1 and 2 above, annual base rent during the option terms
shall be recalculated at LESSOR’s published annual rental rate less two dollars per square foot as
of the commencement of the applicable option term for similar space, but shall in no case be less
than the annual base rent, plus all “Cost of Living” adjustments, that would otherwise be in effect
as of the commencement of the applicable option term. The base month from which to determine the
amount of each “Cost of Living” adjustment during the first option term shall then be changed to
January 2009, the “comparison” month shall be changed to November 2009, and the first adjustment
during the first option term shall take place with the rent due on January 1, 2010. The base month
from which to determine the amount of each “Cost of Living” adjustment during the second option
term shall be changed to January 2012, the “comparison” month shall be changed to November 2012,
and the first adjustment during the second option term shall take place with the rent due on
January 1, 2013. Section 1 of the lease shall continue to apply in all other respects during the
option terms.
	 
	11.	 	Section 5 of the March Extension is hereby deleted and of no further force or effect.
	 
	12.	 	The provisions of Paragraphs W and Z of the Rider to Lease shall not only apply prior to the
termination of the lease, but also prior to LESSEE’s relocation from and/or relinquishment of all
or any portion of the leased premises. Time is of the essence.
	 
	13.	 	Section 8 of Amendment to Lease #1 is hereby deleted and the following shall now apply.
Notwithstanding Section 14 of the lease, the control of snow and ice on all walkways, steps,
loading areas and all other areas not readily accessible to plows serving 12 Gill Street (only)
shall be the sole responsibility of LESSOR. In all other respects, said Section 14 shall remain
unchanged.
	 
	14.	 	Section 9 of Amendment to Lease #1 is hereby deleted and the following shall now apply.
Notwithstanding Section 24 of the lease, a shared dumpster or compactor shall be provided by LESSOR
at 12 Gill Street (only), and LESSEE shall pay the disposal firm or LESSOR, as applicable, LESSEE’s
proportionate share of any costs associated therewith. In all other respects, said Section 24 shall
remain unchanged.
	 
	15.	 	Prior to the lease termination or any future relocation to another facility of LESSOR (only),
LESSEE may remove telephone equipment supplied and installed by LESSEE, provided LESSEE has
satisfactorily complied with all other conditions of this lease. LESSEE must repair any damage
resulting from such removal, restore the leased premises to their condition prior to the
installation of said equipment and remove or label, in accordance with all applicable building and
electrical codes, all wiring and cabling used by LESSEE. LESSEE must complete all such removal,
repair, restoration and other work prior to the termination or relocation date. Time is of the
essence.

     This amendment shall not bind either party in any manner until it has been executed by both
parties. All other terms, conditions and covenants of the lease shall continue to apply, and to the
extent any inconsistency exists between this amendment and the lease, including any prior
amendments, the conditions herein shall control and supersede any earlier provisions.

     In Witness Whereof, LESSOR and LESSEE have hereunto set their hands and common seals
this 18th day of June, 2004.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LESSOR: CUMMINGS PROPERTIES, LLC	 	 	 	LESSEE: BIOTROVE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ [ILLEGIBLE]	 	 	 	By:	 	/s/ Alan T. Barber	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Duly Authorized
	 	 	 	 	 	 	 	Duly Authorized	 	 
	 	 	 	 	 	 	Print Name:	 	Alan T. Barber, CFO	 	 

 

 

     

 

06040385-ESA-A

CUMMINGS PROPERTIES, LLC

STANDARD FORM

AMENDMENT TO LEASE # 3

     In connection with a lease currently in effect between the parties at 12 Gill Street, Suite 4000 and
10-R Gill Street, Woburn, Massachusetts, fully executed on January 21, 2003, and terminating March
30, 2009, and in consideration of the mutual benefits to be derived herefrom, Cummings Properties,
LLC, LESSOR, and BioTrove, Inc., LESSEE, hereby agree, effective July 1, 2004, to amend said lease
as follows:

	1.	 	Base rent is hereby changed to six hundred sixty thousand nine hundred fourteen (660,914)
dollars per year or $55,076.16 per month.
	 
	2.	 	LESSOR, at LESSOR’s expense, shall install one sloped walkway entrance, in accordance with the
attached Additional Work Authorization dated June 10, 2004 and the mutually agreed upon plan
attached hereto, to serve 10-R Gill Street and the adjoining premises. Upon completion of these
modifications, LESSEE agrees that LESSOR’ will have fulfilled its obligations under Section 9 of
Amendment to Lease #2.

     This amendment shall not bind either party in any manner until it has been executed by both
parties. All other terms, conditions and covenants of the lease shall continue to apply, and to the
extent any inconsistency exists between this amendment and the lease, including any prior
amendments, the conditions herein shall control and supersede any earlier provisions.

     In Witness Whereof, LESSOR and LESSEE have hereunto set their hands and common seals this 6th day
of July 2004.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LESSOR: CUMMINGS PROPERTIES, LLC	 	 	 	LESSEE: BIOTROVE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ [ILLEGIBLE]	 	 	 	By:	 	/s/ Alan T. Barber	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Duly Authorized
	 	 	 	 	 	 	 	Duly Authorized	 	 
	 	 	 	 	 	 	Print Name:	 	Alan T. Barber, CFO	 	 

 

 

04050236-PLC-A

CUMMINGS
PROPERTIES, LLC
 STANDARD FORM

AMENDMENT TO LEASE # 4

     In connection with a lease
currently in effect between the parties at 12 Gill Street, Suite 4000,
and 10-R Gill Street, Woburn, Massachusetts, fully executed on January 21, 2003 and terminating
March 30, 2009, and in consideration of the mutual benefits to be derived herefrom, Cummings
Properties, LLC, LESSOR, and Biotrove, Inc., LESSEE, hereby agree, effective upon full execution, to
amend said lease as follows:

	1.	 	* LESSOR shall designate from time to time a specific area at or near the leased premises for
use by LESSEE for the overnight parking of up to a maximum of one car, van, or small pickup truck.
LESSEE shall be solely responsible for any snow removal for this area. LESSOR may tow, at LESSEE’s
sole risk and expense, any vehicles not parked in designated overnight areas or any vehicles parked
overnight in excess of the permitted number. Notwithstanding this limit, LESSEE may park additional
vehicles beyond the permitted number in the designated overnight parking area upon prior written
approval of LESSOR, which approval shall be granted or denied at LESSOR’s sole discretion, and upon
such other or further terms and conditions as LESSOR may determine. If LESSEE fails to comply with
the requirements of this paragraph or repeatedly exceeds the maximum vehicles permitted, LESSOR may
terminate this overnight parking provision with five days’ written notice.

     This amendment shall not bind either party in any manner until it has been executed by both
parties. All other terms, conditions and covenants of the lease shall continue to apply, and to the
extent any inconsistency exists between this amendment and the lease, including any prior
amendments, the conditions herein shall control and supersede any earlier provisions.

     In
Witness Whereof, LESSOR and LESSEE have hereunto set their hands and
common seals this 14th day of
April 2005.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LESSOR: CUMMINGS PROPERTIES, LLC	 	 	 	LESSEE: BIOTROVE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ [ILLEGIBLE]	 	 	 	By:	 	/s/
Robert H. Ellis	 	 
	 

	 	Duly Authorized
	 	 	 	 	 	 	 	Duly Authorized	 	 
	 	 	4/20/05	 	 	 	Print Name:	 	Robert
H. Ellis	 	 
	 	 	 	 	 	 	Title:	 	CEO
& President	 	 

 

 

ADDITIONAL WORK AUTHORIZATION

CUMMINGS PROPERTIES, LLC

200 WEST CUMMINGS PARK, WOBURN, MA 01801

781-935-8000 — fax 781-935-1990

	 	 	 	 	 	 	 	 	 
	CUSTOMER NAME
	 	 	 	 	DATE	 	[ILLEGIBLE]	 
	     BioTrove
	 	 	 	 	06-10-04	 	 	 
	STREET
	 	 	CITY	 	STATE	 	 	 
	     12 Gill Street, Suite 4000
	 	 	Woburn	 	MA	 	 	 
	ATTENTION
	 	 	PHONE	 	FAX	 	 	 
	     Alan Barber
	 	 	781-721-3600	 	784-721-3601	 	 	 

Provide
labor and materials to execute the following scope of work at 10-R
Gill Street:

	 	 	See attached [ILLEGIBLE] plan dated 06-10-04
	 
	1.	 	Construct sloped walkway with landscaping includes:

	 	•	 	Revised installation of storefront door system to allow door
to open on to walkway.
	 	 	 	(Included in
Lease Agreement)
	 
	 	•	 	Cutting of asphalt to allow for landscaping drainage.
	 	 	 	(Included in Lease Agreement)
	 
	 	•	 	Removal of additional asphalt to accommodate revised planting beds and walkway.
	 
	 	•	 	Layout of fill and soil to raise surface of walkway and planting beds.
	 
	 	•	 	Framing of sloped walkway (approx. 60 LF of run four feet wide) and form removal after concrete
pour.
	 
	 	•	 	Installation of approx. 10 LF of additional cast-in-place concrete curbing.
	 
	 	•	 	Installation of rebar or welded wire mesh, pouring of approx. 5 yards of concrete, screening of
concrete surface, control joints and broom finish of walkway surface.
	 
	 	•	 	Installation of additional 42”high metal guardrail at top of walkway and additional handrail at
egress stairs from loading dock (due to layout of walkway).
	 
	 	•	 	Extension of exterior roof drain leader from current location to french drain at adjacent suite.
	 
	 	•	 	Installation of approx. 10 to 13 additional shrubs and other perennial plantings in mulched
landscaping beds.
	 
	 	•	 	Installation of 4”dia. steel bollard filled with concrete at bottom of loading dock egress
stairs.
	 
	 	•	 	Striping of walkway and two standard parking spaces
	 
	 	•	 	Designation of HP parking across parking lot including signage for HP parking.

Note: Upon Customer’s full payment of Electrical upgrade AWA dated 5/18/04, Cost:___[ILLEGIBLE]

	 		 	[ILLEGIBLE]
	 
	 	•	 	No representation is made as to the suitability of above work for Customer’s use or occupancy.
	 
	 	•	 	Customer to remove furniture and equipment from the work area.
	 
	 	•	 	Customer acknowledges that the above work or revisions from previously approved plans
may cause a
delay beyond any [ILLEGIBLE] scheduled completion date.
	 
	 	•	 	This quote is valid for 30 days from the date of issue. If space is unoccupied on date of issue,
prices may increase [ILLEGIBLE]. Above work is to be accomplished during normal working hours or
during prearranged overtime at additional [ILLEGIBLE] price includes sales tax.
	 
	 	•	 	Payment is due upon the Customer’s execution of this authorization.
	 
	 	•	 	Customer acknowledges that the work described herein shall be considered non-building standard
under the terms [illegible] lease [illegible] shall be maintained by Customer following
installation, unless otherwise noted.

	 	 	 	 	 	 	 	 	 
	Accepted by:

	 	/s/ Alan T. Barber
	 	 	 	Date:	 	6/22/04
	 

	 	Duly Authorized	 	 	 	 	 	 
	 

	 	PRINTED NAME: Alan T. Barber
	 	 	 	TITLE:	 	 
	 

	 	 	 	 	 	 	 	 

[ILLEGIBLE]exv10w8

 

Exhibit 10.8

CREDIT AND SECURITY AGREEMENT

     THIS CREDIT AND SECURITY AGREEMENT (as the same may be amended, supplemented, restated or
otherwise modified from time to time, the “Agreement”) is dated as of October 26, 2006 by and among
BIOTROVE, INC., a Delaware corporation, and any additional Borrower that may hereafter be added to
this Agreement (each, individually as a Borrower and collectively as Borrowers), MERRILL LYNCH
CAPITAL, a division of Merrill Lynch Business Financial Services Inc., individually as a Lender,
and as Agent, and the financial institutions or other entities from time to time parties hereto,
each as a Lender.

RECITALS

Borrowers have requested that Agent and Lenders make available to Borrowers term, revolving and/or
letter of credit financing facilities as described herein. Agent and Lenders are willing to extend
such credit to Borrowers under the terms and conditions herein set forth.

AGREEMENT

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, Borrowers, Lenders and Agent agree as follows:

ARTICLE 1 — DEFINITIONS

     Section 1.1 Certain Defined Terms.

     The following terms have the following meanings:

     “Account Debtor” means “account debtor”, as defined in Article 9 of the UCC, and any other
obligor in respect of an Account.

     “Accounts” means collectively (a) any right to payment of a monetary obligation, whether or
not earned by performance, (b) without duplication, any “account” (as defined in the UCC), any
accounts receivable (whether in the form of payments for services rendered or goods sold, rents,
license fees or otherwise), any “health-care-insurance receivables” (as defined in the UCC), any
“payment intangibles” (as defined in the UCC) and all other rights to payment and/or reimbursement
of every kind and description, whether or not earned by performance, (c) all accounts, “general
intangibles” (as defined in the UCC), Intellectual Property, rights, remedies, Guarantees,
“supporting obligations” (as defined in the UCC), “letter-of-credit rights” (as defined in the UCC)
and security interests in respect of the foregoing, all rights of enforcement and collection, all
books and records evidencing or related to the foregoing, and all rights under the Financing
Documents in respect of the foregoing, (d) all information and data compiled or derived by any
Borrower or to which any Borrower is entitled in respect of or related to the foregoing, and
(e) all proceeds of any of the foregoing.

     “Agent” means Merrill Lynch, in its capacity as Agent for the Lenders hereunder, as such
capacity is established in, and subject to the provisions of, Article 10, and the successors of
Merrill Lynch in such capacity.

     “Affiliate” means with respect to any Person (a) any Person that directly or indirectly
controls such Person, (b) any Person which is controlled by or is under common control with such
controlling Person, and (c) each of such Person’s (other than, with respect to any Lender, any
Lender’s) officers or directors (or Persons functioning in substantially similar roles) and the
spouses, parents, descendants and siblings of such officers, directors or other Persons. As used
in this definition, the term “control” of a Person means the possession, directly or indirectly, of
the power to vote ten percent (10%) or more of any class of voting securities of such Person or to
direct or cause the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

     “Affiliated Financing Document” means any credit, loan, letter of credit or related documents
which are, by their terms and by the terms of this Agreement, cross-defaulted and/or
cross-collateralized with the Financing

 

 

Documents, and for which a Credit Party hereunder is liable or contingently liable for payment
or as security for which a Credit Party hereunder has pledged, assigned or subjected any assets.

     “Allowed Distribution” has the meaning set forth in Section 5.3.

     “Anti-Terrorism Laws” means any Laws relating to terrorism or money laundering, including
Executive Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the Laws comprising
or implementing the Bank Secrecy Act, and the Laws administered by OFAC.

     “Approved Fund” means any (a) investment company, fund, trust, securitization vehicle or
conduit that is (or will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its business, or
(b) any Person (other than a natural person) which temporarily warehouses loans for any Lender or
any entity described in the preceding clause (a) and that, with respect to each of the preceding
clauses (a) and (b), is administered or managed by (i) a Lender, (ii) an Affiliate of a Lender, or
(iii) a Person (other than a natural person) or an Affiliate of a Person (other than a natural
person) that administers or manages a Lender.

     “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as the same
may be amended, modified or supplemented from time to time, and any successor statute thereto.

     “Base Rate” means a rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
equal to (a) the rate of interest which is identified and normally published by Bloomberg
Professional Service Page BBAM 1 as the offered rate for loans in United States dollars for the
period of one (1) month under the caption British Bankers Association LIBOR Rates as of 11:00 a.m.
(London time) as adjusted on a daily basis and effective on the second full Business Day after each
such day (unless such date is not a Business Day, in which event the next succeeding Business Day
will be used); divided by (b) the sum of one minus the daily average during the preceding month of
the aggregate maximum reserve requirement (expressed as a decimal) then imposed under Regulation D
of the Board of Governors of the Federal Reserve System (or any successor thereto) for
“Eurocurrency Liabilities” (as defined therein). If Bloomberg Professional Service (or another
nationally-recognized rate reporting source acceptable to Agent) no longer reports the LIBOR or
Agent determines in good faith that the rate so reported no longer accurately reflects the rate
available to Agent in the London Interbank Market or if such index no longer exists or if Page BBAM
1 no longer exists or accurately reflects the rate available to Agent in the London Interbank
Market, Agent may select a comparable replacement index or replacement page, as the case may be.

     “Base Rate Margin” means (a) 5.00% per annum, with respect to the Revolving Loans and other
Obligations (other than the Term Loan), and (b) 2.50% per annum with respect to the Term Loan
during any period in which Agent is holding a cash collateral reserve of at least the lesser of (a)
$2,500,000 and (b) the outstanding principal balance of the Term Loan, and 5.00% per annum with
respect to the Term Loan during any period in which Agent is not holding a cash collateral reserve
of at least the lesser of (a) $2,500,000 and (b) the outstanding principal balance of the Term
Loan.

     “Blocked Person” means any Person: (a) listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224, (b) a Person owned or controlled by, or acting for or on
behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224, (c) a Person with which any Lender is prohibited from dealing or
otherwise engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits,
threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224,
or (e) a Person that is named a “specially designated national” or “blocked person” on the most
current list published by OFAC or other similar list.

     “Borrowers” mean, collectively, BioTrove, Inc. and any additional borrower that may hereafter
be added by written amendment to this Agreement. The parties hereto acknowledge that the only
Borrower as of the date hereof is BioTrove, Inc.

     “Borrower’s Account” means, with respect to any Borrower, the account specified on the
signature pages hereof below such Borrower’s name into which Loans for the benefit of such Borrower
shall, absent other
instructions, be made, or such other account as Borrower may specify by written notice to
Agent.

2

 

     “Borrowing Base” means:

          (a) the product of (i) eighty-five percent (85.0%) multiplied by (ii) the aggregate net amount
at such time of the Eligible Accounts; plus

          (b) the lesser of (i) sixty-five percent (65.0%) multiplied by the Orderly Liquidation Value
of the Eligible Inventory or (ii) thirty-five percent (35.0%) multiplied by the value of the
Eligible Inventory, valued at the lower of FIFO cost or market cost, and after factoring in all
rebates, discounts and other incentives or rewards associated with the purchase of the applicable
Inventory); plus

          (c) the lesser of (i) forty percent (40.0%) multiplied by the Orderly Liquidation Value of the
Eligible FF&E or (ii) twenty-five percent (25.0%) multiplied by the depreciated book value of
Eligible FF&E; minus

          (d) the amount of any reserves and/or adjustments provided for in this Agreement.

     “Borrowing Base Certificate” means a certificate, duly executed by a Responsible Officer of
Borrower, appropriately completed and substantially in the form of Exhibit C hereto.

     “Business Day” means any day except a Saturday, Sunday or other day on which either the New
York Stock Exchange is closed, or on which commercial banks in Chicago and New York City are
authorized by law to close.

     “Cash Collateral Reserve” has the meaning given it in Section 2.10.

     “Cash Collateral Reserve Release Conditions” has the meaning given it in Section 2.10.

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980.

     “Change in Control” means any of the following: (a) any change in the legal or beneficial
ownership of the capital stock, partnership interests or membership interests, or in the capital
structure of the applicable Person; (b) any pledge, assignment or hypothecation of or Lien or
encumbrance on any of the legal or beneficial equity interests in the applicable Person; (c) any
change in the legal or beneficial ownership or control of the outstanding voting equity interests
of the applicable Person necessary at all times to elect a majority of the board of directors (or
similar governing body) of each such Person and to direct the management policies and decisions of
such Person; (d) the applicable Person shall cease to, directly or indirectly, own and control one
hundred percent (100%) of each class of the outstanding equity interests of each Subsidiary of such
Person; or (e) any “Change of Control”, “Change in Control”, or terms of similar import under any
Subordinated Debt Document.

     “Closing Date” means the date of this Agreement.

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

     “Collateral” means all property described as “Collateral” on Schedule 8.1 hereto,
which term excludes all Excluded Property.

     “Commitment Annex” means Annex A to this Agreement.

     “Commitment Expiry Date” means three (3) years from the earlier to occur of (a) October 26,
2006, or (b) the last funding of any portion of the Term Loan.

     “Compliance Certificate” means a certificate, duly executed by a Responsible Officer of
Borrower, appropriately completed and substantially in the form of Exhibit B hereto.

3

 

     “Concentration Accounts” means the Accounts listed on Exhibit F attached hereto.

     “Consolidated Subsidiary” means at any date any Subsidiary or other Person the accounts of
which would be consolidated with those of a Borrower (or any other Person, as the context may
require hereunder) in its consolidated financial statements if such statements were prepared as of
such date.

     “Contingent Obligation” means, with respect to any Person, any direct or indirect liability of
such Person: (a) with respect to any debt, lease, dividend or other obligation of another Person
(a “Third Party Obligation”) if the purpose or intent of such Person incurring such liability, or
the effect thereof, is to provide assurance to the obligee of such Third Party Obligation that such
Third Party Obligation will be paid or discharged, or that any agreement relating thereto will be
complied with, or that any holder of such Third Party Obligation will be protected, in whole or in
part, against loss with respect thereto; (b) with respect to any undrawn portion of any letter of
credit issued for the account of such Person or as to which such Person is otherwise liable for the
reimbursement of any drawing; (c) under any swap contract or other derivative obligation; (d) to
make take-or-pay or similar payments if required regardless of nonperformance by any other party or
parties to an agreement; or (e) for any obligations of another Person pursuant to any Guarantee or
pursuant to any agreement to purchase, repurchase or otherwise acquire any obligation or any
property constituting security therefor, to provide funds for the payment or discharge of such
obligation or to preserve the solvency, financial condition or level of income of another Person.
The amount of any Contingent Obligation shall be equal to the amount of the obligation so
Guaranteed or otherwise supported or, if not a fixed and determinable amount, the maximum amount so
Guaranteed or otherwise supported.

     “Credit Exposure” means any period of time during which the Revolving Loan Commitment or Term
Loan Commitment is outstanding or any Loan, Reimbursement Obligation or other Obligation remains
unpaid or any Letter of Credit or Support Agreement remains outstanding; provided, however, that no
Credit Exposure shall be deemed to exist solely due to the existence of contingent indemnification
liability (other than liability in respect of the Affiliated Financing Documents), absent the
assertion of a claim with respect thereto.

     “Credit Party” means any Guarantor under a Guarantee of the Obligations or any part thereof,
any Borrower and any Subsidiary of any Borrower, whether now existing or hereafter acquired or
formed; and “Credit Parties” means all such Persons, collectively.

     “Debt” of a Person means at any date, without duplication, (a) all obligations of such Person
for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or
other similar instruments, (c) all obligations of such Person to pay the deferred purchase price of
property or services, except trade accounts payable arising and paid on a timely basis and in the
Ordinary Course of Business, (d) all capital leases of such Person, (e) all non-contingent
obligations of such Person to reimburse any bank or other Person in respect of amounts paid under a
letter of credit, banker’s acceptance or similar instrument, (f) all equity securities of such
Person subject to repurchase or redemption otherwise than (i) at the sole option of such Person,
(ii) with the written consent of the Required Lenders or (iii) concurrently with the payment in
full of the Obligations and the termination of this Agreement, (g) all obligations secured by a
Lien on any asset of such Person, whether or not such obligation is otherwise an obligation of such
Person, (h) “earnouts”, purchase price adjustments, profit sharing arrangements, deferred purchase
money amounts and similar payment obligations or continuing obligations of any nature of such
Person arising out of purchase and sale contracts; (i) all Debt of others Guaranteed by such
Person; (j) off-balance sheet liabilities and/or pension plan liabilities; (k) obligations arising
under non-compete agreements; (l) obligations arising under bonus, deferred compensation, incentive
compensation or similar arrangements, other than those arising in the Ordinary Course of Business;
and (m) Contingent Obligations. Without duplication of any of the foregoing, Debt of Borrowers
shall include any and all Loans and Letter of Credit Liabilities.

     “Default” means any condition or event which with the giving of notice or lapse of time or
both would, unless cured or waived, become an Event of Default.

     “Deposit Account” means a “deposit account” (as defined in Article 9 of the UCC), an
investment account, or other account in which funds are held or invested for credit to or for the
benefit of any Borrower.

     “Deposit Account Control Agreement” means an agreement, in form and substance satisfactory to
Agent, among Agent, a Borrower and each bank in which such Borrower maintains a Deposit Account,
which agreement

4

 

provides that (a) such bank shall comply with instructions originated by Agent directing
disposition of the funds in such Deposit Account without further consent by the applicable
Borrower, and (b) such bank shall agree that it shall have no Lien on, or right of setoff or
recoupment against, such Deposit Account or the contents thereof, other than in respect of
commercially reasonable fees and other items, in each such case expressly consented to by Agent,
and containing such other terms and conditions as Agent may require, including as to any such
agreement pertaining to any Lockbox Account, providing that such bank shall wire, or otherwise
transfer, in immediately available funds, on a daily basis to the Payment Account all funds
received or deposited into such Lockbox or Lockbox Account.

     “EBITDA” has the meaning provided in the Compliance Certificate.

     “Eligible Accounts” means, subject to the criteria below, an account receivable of a Borrower,
which was generated in the Ordinary Course of Business, which was generated originally in the name
of the Borrower and not acquired via assignment or otherwise, and which Agent, in its good faith
credit judgment and discretion, deems to be an Eligible Account. The net amount of Eligible
Accounts at any time shall be the face amount of such Eligible Accounts as originally billed minus
all cash collections and other proceeds of such Account received from or on behalf of the Account
Debtor thereunder as of such date and any and all returns, rebates, discounts (which may, at
Agent’s option, be calculated on shortest terms), credits, allowances or excise taxes of any nature
at any time issued, owing, claimed by Account Debtors, granted, outstanding or payable in
connection with such Accounts at such time. Without limiting the generality of the foregoing, no
Account shall be an Eligible Account if:

     (a) the Account remains unpaid more than ninety (90) days past the claim or invoice date (but
in no event more than one hundred twenty (120) days after the applicable goods or services have
been rendered or delivered);

     (b) the Account is subject to any defense, set-off, recoupment, counterclaim, deduction,
discount, credit, chargeback, freight claim, allowance, or adjustment of any kind (but only to the
extent of such defense, set-off, recoupment, counterclaim, deduction, discount, credit, chargeback,
freight claim, allowance, or adjustment), or the applicable Borrower is not able to bring suit or
otherwise enforce its remedies against the Account Debtor through judicial process (other than
volume discounts in the Ordinary Course of Business);

     (c) if the Account arises from the sale of goods, any part of any goods the sale of which has
given rise to the Account has been returned, rejected, lost, or damaged (but only to the extent
that such goods have been so returned, rejected, lost or damaged);

     (d) if the Account arises from the sale of goods, the sale was not an absolute, bona fide
sale, or the sale was made on consignment or on approval or on a sale-or-return or bill-and-hold or
progress billing basis, or the sale was made subject to any other repurchase or return agreement,
or the goods have not been shipped to the Account Debtor or its designee or the sale was not made
in compliance with applicable Laws;

     (e) if the Account arises from the performance of services, the services have not actually
been performed or the services were undertaken in violation of any law or the Account represents a
progress billing for which services have not been fully and completely rendered;

     (f) the Account is subject to a Lien other than a Permitted Lien, or Agent does not have a
Lien on such Account;

     (g) the Account is evidenced by Chattel Paper or an Instrument of any kind, or has been
reduced to judgment, unless such Chattel Paper or Instrument has been delivered to Agent;

     (h) the Account Debtor is an Affiliate or Subsidiary of a Credit Party, or if the Account
Debtor holds any Debt of a Credit Party (but only to the extent of such Debt);

     (i) more than fifty percent (50%) of the aggregate balance of all Accounts owing from the
Account Debtor obligated on the Account are outstanding more than ninety (90) days past their
invoice date;

5

 

     (j) without limiting the provisions of clause (j) above, fifty percent (50%) or more of the
aggregate unpaid Accounts from the Account Debtor obligated on the Account are not deemed Eligible
Accounts under this Agreement for any reason;

     (k) the total unpaid Accounts of the Account Debtor obligated on the Account exceed twenty
percent (20%) of the net amount of all Eligible Accounts owing from all Account Debtors, except for
the Concentration Accounts for which such percentage shall be the applicable concentration
percentage set forth on Exhibit F attached hereto (but only the amount of the Accounts of
such Account Debtor exceeding the applicable concentration percentage limitation shall be
considered ineligible);

     (l) any covenant, representation or warranty contained in the Financing Documents with respect
to such Account has been breached in any respect;

     (m) the Account is unbilled or has not been invoiced to the Account Debtor in accordance with
the procedures and requirements of the applicable Account Debtor;

     (n) the Account is an obligation of an Account Debtor that is the Federal (or local)
government or a political subdivision thereof, unless Agent has agreed to the contrary in writing
and Agent has received from the Account Debtor the acknowledgement of Agent’s notice of assignment
of such obligation pursuant to this Agreement;

     (o) the Account is an obligation of an Account Debtor that has suspended business, made a
general assignment for the benefit of creditors, is unable to pay its debts as they become due or
as to which a petition has been filed (voluntary or involuntary) under any law relating to
bankruptcy, insolvency, reorganization or relief of debtors, or the Account is an Account as to
which any facts, events or occurrences exist which could reasonably be expected to impair the
validity, enforceability or collectibility of such Account or reduce the amount payable or delay
payment thereunder;

     (p) the Account Debtor has its principal place of business or executive office outside the
United States or the Account is payable in a currency other than United States dollars unless such
Accounts are otherwise Eligible Accounts that either are (a) covered by credit insurance
satisfactory to Agent, less any deductible; (b) supported by letter(s) of credit acceptable to
Agent and provided that the right to the proceeds of such letters of credit has been assigned to
Agent pursuant to documentation acceptable to Agent; or (c) otherwise approved by Agent in writing;

     (q) the Account Debtor is an individual;

     (r) the Borrower owning such Account has not signed and delivered to Agent notices, in the
form requested by Agent, directing the Account Debtors to make payment to the applicable Lockbox
Account; or

     (s) the Account or Account Debtor fails to meet such other specifications and requirements
that may from time to time be established by Agent in its good faith credit judgment and
discretion.

     “Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund,
and (d) any other Person (other than a natural person) approved by (i)  Agent, and (ii) unless an
Event of Default has occurred and is continuing, Borrower (such approval of Borrower not to be
unreasonably withheld or delayed, and shall be deemed provided unless expressly withheld by
Borrower within three (3) Business Days of request therefor); provided, however, that
notwithstanding the foregoing, (x) ”Eligible Assignee” shall not include any Borrower or any of a
Borrower’s Affiliates or Subsidiaries, and (y) no proposed assignee intending to assume all or any
portion of the Revolving Loan Commitment shall be an Eligible Assignee unless such proposed
assignee either already holds a portion of the Revolving Loan Commitment, or has been approved as
an Eligible Assignee by Agent.

     “Eligible FF&E” means FF&E owned by Borrowers and used by Borrowers in the Ordinary Course of
Business that Agent, in its good faith credit judgment and discretion, deems to be Eligible FF&E.
Without limiting the generality of the foregoing, no FF&E shall be Eligible FF&E if:

6

 

     (a) such FF&E is not owned by Borrowers free and clear of all Liens and rights of any other
Person;

     (b) such FF&E is covered by a negotiable document of title, unless such document has been
delivered to Agent with all necessary endorsements, free and clear of all Liens except those in
favor of Agent;

     (c) such FF&E is obsolete, shopworn or damaged, is of substandard quality or is not of good
quality, free from any defects;

     (d) such FF&E is not subject to a first priority Lien in favor of Agent;

     (e) such FF&E consists of goods that can be transported or sold only with licenses that are
not readily available or of any substances defined or designated as hazardous or toxic waste,
hazardous or toxic material, hazardous or toxic substance, or similar term, by any environmental
law or any Governmental Authority applicable to Borrowers or their business, operations or assets;

     (f) such FF&E is not covered by casualty insurance reasonably acceptable to Agent;

     (g) any covenant, representation or warranty contained in the Financing Documents with respect
to such FF&E has been breached;

     (h) such FF&E is located on premises with respect to which Agent has not received a landlord,
warehouseman, bailee and mortgagee letter acceptable in form and substance to Agent;

     (i) such FF&E does not meet all standards imposed by any Governmental Authority with respect
to its use or ownership (as the case may be);

     (j) such FF&E is held for rental or lease by or on behalf of Borrowers;

     (k) such FF&E is subject to any licensing, patent, royalty, trademark, trade name or copyright
agreement with any third parties (but in the case of any FF&E subject to a licensing, patent,
royalty, trademark, trade name or copyright agreement, such FF&E shall be excluded from the
definition of “Eligible FF&E” only to the extent of the payment or other obligations owed under
such licensing, patent, royalty, trademark, trade name or copyright agreement); or

     (l) such FF&E fails to meet such other specifications and requirements which may from time to
time be established by Agent in its good faith credit judgment. Agent and Borrowers agree that
FF&E shall be subject to periodic appraisal by Agent and that valuation of FF&E shall be subject to
adjustment pursuant to the results of such appraisal. Notwithstanding the foregoing, the valuation
of FF&E shall be subject to any legal limitations on sale and transfer of such FF&E.

     “Eligible Inventory” means Inventory owned by Borrowers and acquired and dispensed by
Borrowers in the Ordinary Course of Business that Agent, in its good faith credit judgment and
discretion, deems to be Eligible Inventory. Without limiting the generality of the foregoing, no
Inventory shall be Eligible Inventory if:

     (a) such Inventory is not owned by Borrowers free and clear of all Liens and rights of any
other Person (including the rights of a purchaser that has made progress payments and the rights of
a surety that has issued a bond to assure Borrowers’ performance with respect to that Inventory);

     (b) such Inventory is placed on consignment or is in transit;

     (c) such Inventory is covered by a negotiable document of title, unless such document has been
delivered to Agent with all necessary endorsements, free and clear of all Liens except those in
favor of Agent;

     (d) such Inventory is excess, obsolete, unsalable, shopworn, seconds, damaged, unfit for sale,
unfit for further processing, is of substandard quality or is not of good and merchantable quality,
free from any defects;

7

 

     (e) such Inventory consists of display items or packing or shipping materials, manufacturing
supplies or Work-In-Process;

     (f) such Inventory is not subject to a first priority Lien in favor of Agent;

     (i) such Inventory consists of goods that can be transported or sold only with licenses that
are not readily available or of any substances defined or designated as hazardous or toxic waste,
hazardous or toxic material, hazardous or toxic substance, or similar term, by any environmental
law or any Governmental Authority applicable to Borrowers or their business, operations or assets;

     (k) such Inventory is not covered by casualty insurance reasonably acceptable to Agent;

     (l) any covenant, representation or warranty contained in the Financing Documents with respect
to such Inventory has been breached;

     (m) such Inventory is located on premises where the aggregate amount of all Inventory (valued
at cost) of Borrowers located thereon is less than $10,000;

     (o) such Inventory is located on premises with respect to which Agent has not received a
landlord, warehouseman, bailee or mortgagee letter acceptable in form and substance to Agent;

     (p) such Inventory consists of (A) discontinued items, (B) slow-moving items (other than
Primers) or excess items held in inventory, or (C) used items held for resale;

     (q) such Inventory does not consist of raw materials or finished goods;

     (r) such Inventory does not meet all standards imposed by any Governmental Authority,
including with respect to its production, acquisition or importation (as the case may be);

     (s) such Inventory has an expiration date within the next three (3) months;

     (t) such Inventory consists of products for which Borrowers have a greater than three (3)
month supply on hand;

     (u) such Inventory is held for rental or lease by or on behalf of Borrowers;

     (v) such Inventory is subject to any licensing, patent, royalty, trademark, trade name or
copyright agreement with any third parties (but in the case of any Inventory subject to a
licensing, patent, royalty, trademark, trade name or copyright agreement, such Inventory shall be
excluded from the definition of “Eligible Inventory” only to the extent of the payment or other
obligations owed under such licensing, patent, royalty, trademark, trade name or copyright
agreement); or

     (w) such Inventory fails to meet such other specifications and requirements that may from time
to time be established by Agent in its good faith credit judgment. Agent and Borrowers agree that
Inventory shall be subject to periodic appraisal by Agent and that valuation of Inventory shall be
subject to adjustment pursuant to the results of such appraisal. Notwithstanding the foregoing,
the valuation of Inventory shall be subject to any legal limitations on sale and transfer of such
Inventory.

     “Environmental Laws” means any and all Laws relating to the environment or the effect of the
environment on human health or to emissions, discharges or releases of pollutants, contaminants,
Hazardous Materials or wastes into the environment, including ambient air, surface water, ground
water or land, or otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of pollutants, contaminants, Hazardous Materials or wastes
or the clean-up or other remediation thereof.

8

 

     “ERISA” means the Employee Retirement Income Security Act of 1974, as the same may be amended,
modified or supplemented from time to time, and any successor statute thereto, and any and all
rules or regulations promulgated from time to time thereunder.

     “Event of Default” has the meaning set forth in Section 9.1.

     “Excluded Property” has the meaning set forth in Schedule 8.1.

     “Extraordinary Receipts” means any cash received by or paid to or for the account of any
Credit Party other than in the Ordinary Course of Business, including, without limitation, amounts
received in respect of foreign, United States, State or local tax refunds to the extent not
included in the calculation of EBITDA, pension plan reversions, purchase price and other monetary
adjustments made pursuant to any acquisition document and/or indemnification payments made pursuant
to any acquisition document (other than such indemnification payments to the extent that the
amounts so received are applied by a Credit Party for the purpose of replacing, repairing or
restoring any assets or properties of a Credit Party, or satisfying the condition giving rise to
the claim for indemnification or otherwise covering any out-of-pocket expenses incurred by any
Credit Party in obtaining such payments), but excluding any proceeds described in clause (i) and/or
clause (iii) of Section 2.1(a)(ii)(B), proceeds of life insurance policies, proceeds of equity
investments in Borrowers and proceeds of Subordinated Debt.

     “Financing Documents” means this Agreement, any Notes, the Required Warrants, any
subordination or intercreditor agreement pursuant to which any Debt and/or any Liens securing such
Debt is subordinated to all or any portion of the Obligations and all other documents, instruments
and agreements contemplated herein or thereby and heretofore executed, executed concurrently
herewith or executed at any time and from time to time hereafter, as any or all of the same may be
amended, supplemented, restated or otherwise modified from time to time.

     “FF&E” means all present and future “equipment” as defined in the UCC in effect on the date
hereof and upon which an indefeasible first priority security interest may be perfected under the
UCC by the filing of a financing statement and which filed security interest cannot be primed by
some other means of perfection under the UCC, and specifically excluding any vehicles and any goods
or other personal property upon which a lien or security interest may be acquired or perfected
under laws other than the UCC.

     “Fixed Charge Coverage Ratio” has the meaning provided in the Compliance Certificate.

     “GAAP” means generally accepted accounting principles set forth from time to time in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and authority within the
United States accounting profession), which are applicable to the circumstances as of the date of
determination.

     “Governmental Account Debtor” means any Account Debtor that is a Governmental Authority unless
the Account of such Account Debtor is an Eligible Account pursuant to clause (n) of the definition
of “Eligible Accounts”.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, and any agency, department or Person exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government and any corporation
or other Person owned or controlled (through stock or capital ownership or otherwise) by any of the
foregoing, whether domestic or foreign.

     “Guarantee” by any Person means any obligation, contingent or otherwise, of such Person
directly or indirectly guaranteeing any Debt or other 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 other 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), or (b) entered into for the purpose of
assuring in any other manner the obligee of such Debt or other obligation of the payment thereof or
to protect such obligee against loss in respect thereof (in whole or in part), provided, however,
that the term Guarantee shall not include

9

 

endorsements for collection or deposit in the Ordinary Course of Business. The term
“Guarantee” used as a verb has a corresponding meaning.

     “Guarantor” means any Credit Party that has executed or delivered, or shall in the future
execute or deliver, any Guarantee of any portion of the Obligations.

     “Hazardous Materials” means (a) any “hazardous substance” as defined in CERCLA, (b) any
“hazardous waste” as defined by the Resource Conservation and Recovery Act, (c) asbestos,
(d) polychlorinated biphenyls, (e) petroleum, its derivatives, by-products and other hydrocarbons,
(f) mold, and (g) any other pollutant, toxic, radioactive, caustic or otherwise hazardous substance
regulated under Environmental Laws.

     “Intellectual Property” means, with respect to any Person, all Patents, Trademarks, trade
names, trade styles, trade dress, service marks, logos and other business identifiers, Copyrights,
technology, know-how and processes, computer hardware and software and all applications and
licenses therefor, used in or necessary for the conduct of business by such Person.

     “Inventory” has the meaning given in the UCC.

     “Investment” means any investment in any Person, whether by means of acquiring (whether for
cash, property, services, securities or otherwise) or holding securities, capital contributions,
loans, time deposits, advances, Guarantees or otherwise. The amount of any Investment shall be the
original cost of such Investment plus the cost of all additions thereto, without any adjustments
for increases or decreases in value, or write-ups, write-downs or write-offs with respect thereto.

     “IP Proceeds” has the meaning set forth in Schedule 8.1.

     “Laws” means any and all federal, state, local and foreign statutes, laws, judicial decisions,
regulations, guidances, guidelines, ordinances, rules, judgments, orders, decrees, codes, plans,
injunctions, permits, concessions, grants, franchises, governmental agreements and governmental
restrictions, whether now or hereafter in effect, which are applicable to any Credit Party in any
particular circumstance. “Laws” includes, without limitation, Environmental Laws.

     “LC Issuer” means one or more banks, trust companies or other Persons, in each case mutually
agreeable to Agent and Borrower as an LC Issuer for purposes of issuing one or more Letters of
Credit hereunder. Without limitation of Agent’s discretion to identify any Person as an LC Issuer,
no Person shall be designated as an LC Issuer unless such Person maintains reporting systems
acceptable to Agent with respect to letter of credit exposure and agrees to provide regular
reporting to Agent satisfactory to it with respect to such exposure.

     “Lender” means each of (a) Merrill Lynch, (b) each other Person party hereto in its capacity
as a lender, (c) each other Person that becomes a party hereto as Lender pursuant to Section 11.6,
and (d) the respective successors of all of the foregoing, and “Lenders” means all of the
foregoing.

     “Lender Letter of Credit” means a Letter of Credit issued by an LC Issuer that is also, at the
time of issuance of such Letter of Credit, a Lender.

     “Letter of Credit” means a standby letter of credit issued for the account of any Borrower by
an LC Issuer which expires by its terms within one year after the date of issuance and in any event
at least thirty (30) days prior to the Commitment Expiry Date. Notwithstanding the foregoing, a
Letter of Credit may provide for automatic extensions of its expiry date for one or more successive
one (1) year periods provided that the LC Issuer that issued such Letter of Credit has the right to
terminate such Letter of Credit on each such annual expiration date and no renewal term may extend
the term of the Letter of Credit to a date that is later than the thirtieth (30th) day prior to the
Commitment Expiry Date.

     “Letter of Credit Liabilities” means, at any time of calculation, the sum of (a) without
duplication, the amount then available for drawing under all outstanding Lender Letters of Credit
and all Supported Letters of

10

 

Credit, in each case without regard to whether any conditions to drawing thereunder can then
be met, plus (b) without duplication, the aggregate unpaid amount of all reimbursement obligations
in respect of previous drawings made under all such Lender Letters of Credit and Supported Letters
of Credit.

     “License” means, with respect to any asset, any license or sublicense, right to use or
comparable arrangement in favor of one or more parties who will implement, develop, apply or
otherwise use such asset, whether non exclusive, semi-exclusive, co-exclusive or exclusive and
whether limited or unlimited as to geographic area, duration, field or otherwise.

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind, or any other type of preferential arrangement that has the practical
effect of creating a security interest, in respect of such asset. For the purposes of this
Agreement and the other Financing Documents, any Borrower or any Subsidiary shall be deemed to own
subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or
lessor under any conditional sale agreement, capital lease or other title retention agreement
relating to such asset.

     “Litigation” means any action, suit or proceeding before any court, mediator, arbitrator or
Governmental Authority.

     “Loan Account” has the meaning set forth in Section 2.5(b).

     “Loans” means the Term Loan, the Revolving Loans, or any combination of the foregoing, as the
context may require. All references herein to the “making” of a Loan or words of similar import
shall mean, with respect to the Term Loan, the making of any advance in respect of a Term Loan.

     “Lockbox” has the meaning set forth in Section 2.9.

     “Lockbox Account” means an account or accounts maintained at the Lockbox Bank into which
collections of Accounts are paid.

     “Lockbox Bank” has the meaning set forth in Section 2.9.

     “Material Adverse Effect” means, with respect to any event, act, condition or occurrence of
whatever nature (including any adverse determination in any litigation, arbitration, or
governmental investigation or proceeding), whether singly or in conjunction with any other event or
events, act or acts, condition or conditions, occurrence or occurrences, whether or not related
(a) a material adverse change in, or a material adverse effect upon, any of (i) the financial
condition, operations, business or, properties of Borrower or of Borrower and the other Credit
Parties taken as a whole, (ii) the rights and remedies of Agent or Lenders under any Financing
Document, or the ability of any Credit Party to perform any of its obligations under any Financing
Document to which it is a party, (iii) the legality, validity or enforceability of any Financing
Document, or (iv) the existence, perfection or priority of any security interest granted in any
Financing Document.

     “Material Contracts” has the meaning set forth in Section 3.15.

     “Merrill Lynch” means Merrill Lynch Capital, a division of Merrill Lynch Business Financial
Services Inc., and its successors.

     “Non-Funding Lender” means a Lender that has delivered a notice to the Agent stating that such
Lender shall cease making Revolving Loans and/or advances in respect of the Term Loan due to the
non-satisfaction of one or more conditions set forth in Article 7, and specifying any such
non-satisfied conditions; provided, however, that any Lender delivering any such notice shall be a
Non-Funding Lender solely over the period commencing on the Business Day following receipt by Agent
of such notice, and terminating on such date that such Lender has either revoked the effectiveness
of such notice or acknowledged to Agent the satisfaction of the condition specified in such notice.

11

 

     “Notes” means the Term Note, the Revolving Loan Notes, or any combination of the foregoing, as
the context may require.

     “Notice of Borrowing” means a notice of a Responsible Officer of Borrower, appropriately
completed and substantially in the form of Exhibit D hereto.

     “Notice of LC Credit Event” means a notice from a Responsible Officer of Borrower to Agent
with respect to any issuance, increase or extension of a Letter of Credit specifying: (a) the date
of issuance or increase of a Letter of Credit; (b) the identity of the LC Issuer with respect to
such Letter of Credit, (c) the expiry date of such Letter of Credit; (d) the proposed terms of such
Letter of Credit, including the face amount; and (e) the transactions that are to be supported or
financed with such Letter of Credit or increase thereof.

     “Obligations” means all obligations, liabilities and indebtedness (monetary (including
post-petition interest, whether or not allowed) or otherwise) of each Credit Party under this
Agreement or any other Financing Document, in each case howsoever created, arising or evidenced,
whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become
due. In addition to, but without duplication of, the foregoing, the Obligations shall include,
without limitation, all obligations, liabilities and indebtedness arising from or in connection
with (a) all Support Agreements, and (b) all Lender Letters of Credit.

     “OFAC” means the U.S. Department of Treasury Office of Foreign Assets Control.

     “OFAC Lists” means, collectively, the Specially Designated Nationals and Blocked Persons List
maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001)
and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the
rules and regulations of OFAC or pursuant to any other applicable Executive Orders.

     “Operative Documents” means the Financing Documents, the Subordinated Debt Documents and any
documents effecting any purchase or sale or other transaction that is closing contemporaneously
with the closing of the financing under this Agreement.

     “Ordinary Course of Business” means, in respect of any transaction involving any Credit Party,
the ordinary course of such Credit Party’s business, as conducted by such Credit Party
substantially in accordance with past practices.

     “Orderly Liquidation Value” means the net amount (after all costs of sale), expressed in terms
of money, which Agent, in its good faith discretion, estimates can be realized from a sale, as of a
specific date, given a reasonable period to find a purchaser(s), with the seller being compelled to
sell on an as-is/where-is basis.

     “Organizational Documents” means, with respect to any Person other than a natural person, the
documents by which such Person was organized (such as a certificate of incorporation, certificate
of limited partnership or articles of organization, and including, without limitation, any
certificates of designation for preferred stock or other forms of preferred equity) and which
relate to the internal governance of such Person (such as by-laws, a partnership agreement or an
operating, limited liability or members agreement).

     “Payment Account” means the account specified on the signature pages hereof into which all
payments by or on behalf of each Borrower to Agent under the Financing Documents shall be made, or
such other account as Agent shall from time to time specify by notice to Borrower.

     “Payment Notification” means a written notification substantially in the form of
Exhibit E hereto.

     “PBGC” means the Pension Benefit Guaranty Corporation and any Person succeeding to any or all
of its functions under ERISA.

     “Pension Plan” means any ERISA Plan that is subject to Section 412 of the Code or Title IV of
ERISA.

12

 

     “Permits” means all governmental licenses, authorizations, provider numbers, supplier numbers,
registrations, permits, certificates, franchises, qualifications, accreditations, consents and
approvals required under all applicable Laws and required in order to carry on its business as now
conducted, including, without limitation, Healthcare Permits.

     “Permitted Affiliate” means with respect to any Person (a) any Person that directly or
indirectly controls such Person, and (b) any Person that is controlled by or is under common
control with such controlling Person. As used in this definition, the term “control” of a Person
means the possession, directly or indirectly, of the power to vote fifty-one percent (51%) or more
of any class of voting securities of such Person or to direct or cause the direction of the
management or policies of a Person, whether through the ownership of voting securities, by contract
or otherwise.

     “Permitted Contest” means, with respect to any tax obligation or other obligation allegedly or
potentially owing from any Borrower to any governmental tax authority or other third party, a
contest maintained in good faith by appropriate proceedings promptly instituted and diligently
conducted and with respect to which such reserve or other appropriate provision, if any, as shall
be required in conformity with GAAP shall have been made on the books and records and financial
statements of the applicable Borrower(s); provided, however, that (a) compliance with the
obligation that is the subject of such contest is effectively stayed during such challenge;
(b) Borrowers’ title to, and its right to use, the Collateral is not adversely affected thereby and
Agent’s Lien and priority on the Collateral are not adversely affected, altered or impaired
thereby; (c) Borrowers have given prior written notice to Agent of Borrowers’ intent to so contest
the obligation; (d) in the case of real estate taxes or assessments or mechanic’s, workmen’s,
materialmen’s or other like Liens with respect to any real estate which is part of the Collateral,
Borrowers have obtained an endorsement, in form and substance satisfactory to Agent, to the loan
policy of title insurance issued to Agent insuring over any Lien created by such obligation, or
Borrowers have deposited with Agent a bond or other security satisfactory to Agent, in its
reasonable discretion, against loss or injury by reason of such contest or the non-payment of such
obligation or charge (and if such security is cash, Agent may, but shall not be obligated to,
deposit the same in an interest-bearing account and interest accrued thereon, if any, shall be
deemed to constitute a part of such security for purposes of this Agreement, but Agent (i) makes no
representation or warranty as to the rate or amount of interest, if any, which may accrue thereon
and shall have no liability in connection therewith and (ii) shall not be deemed to be a trustee or
fiduciary with respect to its receipt of any such security and any such security may be commingled
with other monies of Agent); (e) the Collateral or any part thereof or any interest therein shall
not be in any danger of being sold, forfeited or lost by reason of such contest by Borrowers;
(f) Borrowers have given Agent notice of the commencement of such contest and upon request by
Agent, from time to time, notice of the status of such contest by Borrowers and/or confirmation of
the continuing satisfaction of this definition; and (g) upon a final determination of such contest,
Borrowers shall promptly comply with the requirements thereof.

     “Permitted Indebtedness” means: (a) Borrower’s Debt to Agent and each Lender under this
Agreement and the other Financing Documents; (b) Subordinated Debt; (c) unsecured Debt to trade
creditors incurred in the Ordinary Course of Business; (d) Debt incurred as a result of endorsing
negotiable instruments received in the Ordinary Course of Business; (e) purchase money Debt not to
exceed $100,000 at any time (whether in the form of a loan or a lease) used solely to acquire
equipment used in the Ordinary Course of Business and secured only by such equipment; (f) Debt
existing on the date of this Agreement and described on Schedule 5.1; (g) Debt not
exceeding $1,000,000 in the aggregate in favor of the Massachusetts Development Corporation at any
time (whether in the form of a loan or a lease) used solely to acquire equipment used in the
Ordinary Course of Business and secured only by such equipment; (h) other unsecured Debt not
exceeding $100,000 in the aggregate; and (i) extensions, refinancings, modifications, amendments
and restatements of any items of Permitted Indebtedness (a) through (h) above, provided that the
principal amount thereof is not increased or the terms thereof are not modified to impose more
burdensome terms upon Borrower or its Subsidiary, as the case may be.

     “Permitted Investments” means:

     (a) Investments shown on Schedule 5.7 and existing on the Closing Date;

     (b) (i) cash equivalents, and (ii) any similar short term Investments permitted by Borrowers’
investment policy, as amended from time to time, provided that such investment policy (and any such
amendment thereto) has been approved by Agent;

     (c) Investments consisting of the endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of Borrowers;

13

 

     (d) Investments consisting of (i) travel advances and employee relocation loans and other
employee loans and advances in the Ordinary Course of Business, and (ii) loans to employees,
officers or directors relating to the purchase of equity securities of Borrowers or their
Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrowers’ Board
of Directors (or other governing body);

     (e) Investments (including debt obligations) received in connection with the bankruptcy or
reorganization of customers or suppliers and in settlement of delinquent obligations of, and other
disputes with, customers or suppliers arising in the Ordinary Course of Business;

     (f) Investments consisting of notes receivable of, or prepaid royalties and other credit
extensions, to customers and suppliers who are not Affiliates, in the Ordinary Course of Business;
provided that this paragraph (f) shall not apply to Investments of Borrowers in any Subsidiary.

     (g) Investments consisting of deposit accounts in which Agent has a security interest;

     (h) Investments consisting of the acquisition of all or substantially all of the assets or
capital stock of another Person provided that, after giving effect to such acquisition, no Event of
Default has occurred and is continuing or would exist after giving effect to such acquisition, and
such acquisition would not result in a decrease of more than twenty percent (20%) of Tangible Net
Worth of the Borrowers; and

     (i) Other Investments in an amount not exceeding $50,000 in the aggregate at any time.

     “Permitted Liens” means: (a) deposits or pledges of cash to secure obligations under
workmen’s compensation, social security or similar laws, or under unemployment insurance (but
excluding Liens arising under ERISA); (b) deposits or pledges of cash to secure bids, tenders,
contracts (other than contracts for the payment of money or the deferred purchase price of property
or services), leases, statutory obligations, surety and appeal bonds and other obligations of like
nature arising in the Ordinary Course of Business; (c) carrier’s, warehousemen’s, mechanic’s,
workmen’s, materialmen’s or other like Liens on Collateral, other than Accounts, arising in the
Ordinary Course of Business with respect to obligations which are not due, or which are being
contested pursuant to a Permitted Contest; (d) Liens on Collateral, other than Accounts, for taxes
or other governmental charges not at the time delinquent or thereafter payable without penalty or
the subject of a Permitted Contest; (e) attachments, appeal bonds, judgments and other similar
Liens on Collateral other than Accounts, for sums not exceeding $25,000 in the aggregate arising in
connection with court proceedings; provided, however, that the execution or other enforcement of
such Liens is effectively stayed and the claims secured thereby are the subject of a Permitted
Contest; (f) Liens in favor of Agent under the Financing Documents; (g) Liens on Collateral other
than Accounts existing on the date hereof and set forth on Schedule 5.2; (h) Liens in favor
of other financial institutions arising in connection with Borrowers’ deposit and/or securities
accounts held at such institutions, provided that Agent has a perfected security interest in the
amounts held in such deposit and/or securities accounts; (i) any Lien on equipment securing Debt
permitted under subpart (h) or (i) of the definition of Permitted Indebtedness; and (j) Licenses
(other than Licenses which are the substantial equivalent of a sale of all or substantially all of
the Borrowers’ intellectual property).

     “Permitted Transfers” means the collective reference to one or more transfers, via a sale and
not by pledge or hypothecation, which, in the aggregate during the term of this Agreement, result
in a transfer of legal or beneficial ownership or control of up to 49% of the direct or indirect
ownership or voting interests in the Borrowers or any Guarantor to a Person (a) purchasing such
ownership interest in a public offering registered with the Securities and Exchange Commission or
(b) other than a Blocked Person, that is (i) a venture capital investor, so long as Borrowers have
given Agent at least fifteen (15) days prior written notice of the identity of the assignees,
together with such information as Agent shall deem necessary to confirm that such assignee is not a
Blocked Person or (ii) at the time of such transfer, already a holder of direct or indirect
ownership or voting interests in the Borrowers. Notwithstanding the limitations set forth in the
foregoing sentence (a) any holder of direct or indirect ownership or voting interests in the
Borrowers which is a partnership may transfer such holder’s rights to such holder’s constituent
partners, retired partners (including spouses, ancestors, lineal descendants and siblings of such
partners or spouses who acquire such interests by gift, will or intestate succession) or their
respective Affiliates, (b) any holder of direct or indirect ownership or voting interests in the
Borrowers which is a limited liability company may transfer such holder’s right to such holder’s
members, (c) any holder of direct or indirect ownership or voting interests in the Borrowers which
is a natural person may transfer such holder’s rights to any immediate family member or to any
trust created for the benefit or such holder or his or her immediate family members, and (d) any
holder of direct or indirect ownership or voting interests in the Borrowers may transfer such
holder’s rights to a Permitted Affiliate of such holder (provided that no transfer of any given
interest pursuant to this subpart may be made more often than once per twelve (12) month period),
subject in each case to such transferee’s agreeing in

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writing to be bound by the rights and restrictions of this Agreement; and any such transfer
described in the foregoing clauses (a) through (d) shall be deemed a “Permitted Transfer” and shall
not count toward the 49% limitation described above.

     “Person” means any natural person, corporation, limited liability company, professional
association, limited partnership, general partnership, joint stock company, joint venture,
association, company, trust, bank, trust company, land trust, business trust or other organization,
whether or not a legal entity, and any Governmental Authority.

     “Positive Cash Flow” means, for the trailing six-month period most recently ended (the
“Defined Period”) (i) the amount of cash flow from operating activities (as determined in
accordance with GAAP, and excluding the effect of any Extraordinary Receipts or dispositions of
assets) for the Defined Period minus (ii) the sum of (x) unfinanced capital expenditures for the
Defined Period and (y) scheduled payments of principal for the Defined Period with respect to all
Debt (including the portion of scheduled payments under capital leases allocable to principal but
excluding mandatory prepayments required by Section 2.1(a)(ii)(B) and excluding scheduled
repayments of Revolving Loans and other Debt subject to reborrowing to the extent not accompanied
by a concurrent and permanent reduction of the Revolving Loan Commitment (or equivalent loan
commitment)) is greater than $0.

     “Primary Collateral” means all Collateral other than IP Proceeds.

     “Primary Collateral Proceeds” means all proceeds (as defined in the Uniform Commercial Code)
of the Primary Collateral.

     “Primers” means a polymeric chain containing ten nucleotides (a type of chemical compound
occurring in nucleic acids such as RNA and DNA) or fewer.

     “Pro Rata Share” means (a) with respect to a Lender’s obligation to make advances in respect
of a Term Loan and such Lender’s right to receive payments of principal and interest with respect
to the Term Loans, the Term Loan Commitment Percentage of such Lender, (b) with respect to a
Lender’s obligation to make Revolving Loans, such Lender’s right to receive payments of principal
and interest with respect thereto, such Lender’s right to receive the unused line fee described in
Section 2.2(b), and such Lender’s obligation to share in Letter of Credit Liabilities and to
receive the related Letter of Credit fee described in Section 2.4(b), the Revolving Loan Commitment
Percentage of such Lender, and (c) for all other purposes with respect to any Lender, the
percentage obtained by dividing (i) the sum of the Revolving Loan Commitment Amount and Term Loan
Commitment Amount of such Lender (or, in the event the Revolving Loan Commitment or Term Loan
Commitment shall have been terminated, such Lender’s then existing Revolving Loan Outstandings and
then outstanding principal amount of the Term Loan, as applicable), by (ii) the sum of the
Revolving Loan Commitment and Term Loan Commitment Amount (or, in the event the Revolving Loan
Commitment or Term Loan Commitment shall have been terminated, the then existing Revolving Loan
Outstandings and then outstanding principal amount of the Term Loan, as applicable) of all Lenders.

     “Reimbursement Obligations” means, at any date, the obligations of each Borrower then
outstanding to reimburse (a) Agent for payments made by Agent under a Support Agreement, and/or
(b) any LC Issuer, for payments made by such LC Issuer under a Lender Letter of Credit.

     “Required Lenders” means at any time Lenders holding (a) sixty-six and two thirds percent (66
2/3%) or more of the sum of the Revolving Loan Commitment and the Term Loan Commitment (taken as a
whole), or (b) if the Revolving Loan Commitment or Term Loan Commitment has been terminated,
sixty-six and two thirds percent (66 2/3%) or more of the sum of (x) the then aggregate outstanding
principal balance of the Loans plus (y) the then aggregate amount of Letter of Credit Liabilities.

     “Required Warrants” means that warrant to purchase shares of the Borrower’s Series B-1
Preferred Stock as set forth in that certain Warrant to Purchase Stock by and between the Borrower
and Agent, dated as of the date hereof. The Required Warrants shall otherwise be in form and
substance acceptable to Agent and Lenders. As a

15

 

holder of the Required Warrants, Agent shall become a party to the Borrower’s Amended and
Restated Registration Rights Agreement as amended and restated and in effect from time to time.

     “Responsible Officer” means either of the Chief Executive Officer or Chief Financial Officer
of the applicable Borrower.

     “Restricted Distribution” means as to any Person (a) any dividend or other distribution
(whether in cash, securities or other property) on any equity interest in such Person (except those
payable solely in its equity interests of the same class), (b) any payment (except those payable
solely in its equity interests) on account of (i) the purchase, redemption, retirement, defeasance,
surrender, cancellation, termination or acquisition of any equity interests in such Person or any
claim respecting the purchase or sale of any equity interest in such Person or (ii) any option,
warrant or other right to acquire any equity interests in such Person, (c) any management fees,
salaries or other fees or compensation (other than fees, salaries and compensation in the form of
shares of Borrower’s capital stock) to any Person holding an equity interest in a Borrower (other
than payments of compensation of employees in the Ordinary Course of Business and substantially
consistent with past practices), an Affiliate of Borrower or an Affiliate of any Subsidiary of
Borrower, (d) any lease or rental payments to an Affiliate or Subsidiary of Borrower, or (e) cash
repayments of, or cash debt service on, loans or other indebtedness held by an Investor, an
Affiliate of Borrower or an Affiliate of any Subsidiary of Borrower.

     “Revolving Lender” means each Lender having a Revolving Loan Commitment Amount in excess of
zero (or, in the event the Revolving Loan Commitment shall have been terminated at any time, each
Lender at such time having Revolving Loan Outstandings in excess of zero).

     “Revolving Loan Availability” means, at any time, the Revolving Loan Limit less the Revolving
Loan Outstandings.

     “Revolving Loan Borrowing” means a borrowing of a Revolving Loan.

     “Revolving Loan Commitment” means the sum of each Lender’s Revolving Loan Commitment Amount.

     “Revolving Loan Commitment Amount” means, as to any Lender, the dollar amount set forth
opposite such Lender’s name on the Commitment Annex under the column “Revolving Loan Commitment
Amount” (if such Lender’s name is not so set forth thereon, then the dollar amount on the
Commitment Annex for the Revolving Loan Commitment Amount for such Lender shall be deemed to be
zero), as such amount may be adjusted from time to time by any “Amounts Assigned” (with respect to
such Lender’s portion of Revolving Loans outstanding and its commitment to make Revolving Loans)
pursuant to the terms of any and all effective assignment agreements to which such Lender is a
party.

     “Revolving Loan Commitment Percentage” means, as to any Lender, (a) on the Closing Date, the
percentage set forth opposite such Lender’s name on the Commitment Annex under the column
“Revolving Loan Commitment Percentage” (if such Lender’s name is not so set forth thereon, then, on
the Closing Date, such percentage for such Lender shall be deemed to be zero), and (b) on any date
following the Closing Date, the percentage equal to the Revolving Loan Commitment Amount of such
Lender on such date divided by the Revolving Loan Commitment on such date.

     “Revolving Loan Limit” means, at any time, the lesser of (a) the Revolving Loan Commitment and
(b) the Borrowing Base.

     “Revolving Loan Note” means the promissory note executed by Borrower and evidencing the
obligation to repay the Revolving Loans.

     “Revolving Loan Outstandings” means at any time of calculation the sum of the then existing
aggregate outstanding principal amount of Revolving Loans and the then existing Letter of Credit
Liabilities.

     “Revolving Loans” has the meaning set forth in Section 2.1(b).

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     “Security Document” means this Agreement and any other agreement, document or instrument
executed concurrently herewith or at any time hereafter pursuant to which one or more Credit
Parties or any other Person either (a) Guarantees payment or performance of all or any portion of
the Obligations, and/or (b) provides, as security for all or any portion of the Obligations, a Lien
on any of its assets in favor of Administrative Agent for its own benefit and the benefit of the
Lenders, as any or all of the same may be amended, supplemented, restated or otherwise modified
from time to time.

     “Solvent” means, with respect to any Person, that such Person (a) owns and will own assets the
fair saleable value of which are (i) greater than the total amount of its liabilities (including
Contingent Obligations), and (ii) greater than the amount that will be required to pay the probable
liabilities of its then existing debts as they become absolute and matured considering all
financing alternatives and potential asset sales reasonably available to it; (b) has capital that
is not unreasonably small in relation to its business as presently conducted or after giving effect
to any contemplated transaction; and (c) does not intend to incur and does not believe that it will
incur debts beyond its ability to pay such debts as they become due.

     “Subordinated Debt” means any Debt of Borrowers incurred pursuant to the terms of the
Subordinated Debt Documents, and with the prior written consent of the Required Lenders, all of
which documents must be in form and substance acceptable to Agent in its sole discretion.

     “Subordinated Debt Documents” means any documents evidencing and/or securing Debt governed by
a Subordination Agreement.

     “Subordination Agreement” means any agreement between Agent and another creditor of Borrowers,
as the same may be amended, supplemented, restated or otherwise modified from time to time in
accordance with the terms thereof, pursuant to which the Debt owing from any Borrower(s) and/or the
Liens securing such Debt granted by any Borrower(s) to such creditor are subordinated in any way to
the Obligations and the Liens created under the Security Documents, the terms and provisions of
which such Subordination Agreements have been agreed to by and are acceptable to Agent in the
exercise of its sole discretion.

     “Subsidiary” means, with respect to any Person, (a) any corporation of which an aggregate of
more than 50% of the outstanding capital stock having ordinary voting power to elect a majority of
the board of directors of such corporation (irrespective of whether, at the time, capital stock of
any other class or classes of such corporation shall have or might have voting power by reason of
the happening of any contingency) is at the time, directly or indirectly, owned legally or
beneficially by such Person or one or more Subsidiaries of such Person, or with respect to which
any such Person has the right to vote or designate the vote of more than 50% of such capital stock
whether by proxy, agreement, operation of law or otherwise, and (b) any partnership or limited
liability company in which such Person and/or one or more Subsidiaries of such Person shall have an
interest (whether in the form of voting or participation in profits or capital contribution) of
more than 50% or of which any such Person is a general partner or may exercise the powers of a
general partner. Unless the context otherwise requires, each reference to a Subsidiary shall be a
reference to a Subsidiary of a Borrower.

     “Support Agreement” has the meaning set forth in Section 2.4(a).

     “Supported Letter of Credit” means a Letter of Credit issued by an LC Issuer in reliance on
one or more Support Agreements.

     “Tangible Net Worth” means, on any date, the consolidated total assets of Borrowers and their
Subsidiaries minus, (i) any amounts attributable to (a) goodwill, (b) intangible items such as
unamortized debt discount and expense, patents, trade and service marks and names, copyrights and
research and development expenses except prepaid expenses, and (c) reserves not already deducted
from assets, and (ii) Total Liabilities.

     “Taxes” has the meaning set forth in Section 2.7.

     “Term Loan” has the meaning set forth in Section 2.1(a).

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     “Term Loan Commitment” means the sum of each Lender’s Term Loan Commitment Amount.

     “Term Loan Commitment Amount” means, as to any Lender, the dollar amount set forth opposite
such Lender’s name on the Commitment Annex under the column “Term Loan Commitment Amount” (if such
Lender’s name is not so set forth thereon, then the dollar amount on the Commitment Annex for the
Term Loan Commitment Amount for such Lender shall be deemed to be zero), as such amount may be
adjusted from time to time by any “Amounts Assigned” (with respect to such Lender’s portion of Term
Loans outstanding and its commitment to make advances in respect of the Term Loan) pursuant to the
terms of any and all effective assignment agreements to which such Lender is a party.

     “Term Loan Commitment Percentage” means, as to any Lender, (a) on the Closing Date, the
percentage set forth opposite such Lender’s name on the Commitment Annex under the column “Term
Loan Commitment Percentage” (if such Lender’s name is not so set forth thereon, then, on the
Closing Date, such percentage for such Lender shall be deemed to be zero), and (b) on any date
following the Closing Date, the percentage equal to the principal amount of the Term Loan held by
such Lender on such date divided by the aggregate principal amount of the Term Loan on such date.

     “Term Note” means the promissory note executed by Borrower and evidencing the obligation to
repay the Term Loan.

     “Termination Date” means the earlier to occur of (a) the Commitment Expiry Date, or (b) any
date on which Agent accelerates the maturity of the Loans pursuant to Section 9.2.

     “Total Liabilities” means, on any day, obligations that should, under GAAP, be classified as
liabilities on Borrowers’ consolidated balance sheet, including all Debt, and current portion
Subordinated Debt allowed to be paid, but excluding all other Subordinated Debt.

     “UCC” means the Uniform Commercial Code of the State of Illinois or of any other state the
laws of which are required to be applied in connection with the perfection of security interests in
any Collateral.

     “United States” means the United States of America.

     “Work-In-Process” means Inventory that is not a product that is finished and approved by a
Borrower in accordance with applicable Laws and such Borrower’s normal business practices for
release and delivery to customers.

     Section 1.2 Accounting Terms and Determinations. Unless otherwise specified herein, all
accounting terms used herein shall be interpreted, all accounting determinations hereunder
(including, without limitation, determinations made pursuant to the exhibits hereto) shall be made,
and all financial statements required to be delivered hereunder shall be prepared on a consolidated
basis in accordance with GAAP applied on a basis consistent with the most recent audited
consolidated financial statements of each Borrower and its Consolidated Subsidiaries delivered to
Agent and each of the Lenders on or prior to the Closing Date. If at any time any change in GAAP
would affect the computation of any financial ratio or financial requirement set forth in any
Financing Document, and either Borrowers or the Required Lenders shall so request, the Agent, the
Lenders and Borrowers shall negotiate in good faith to amend such ratio or requirement to preserve
the original intent thereof in light of such change in GAAP (subject to the approval of the
Required Lenders); provided, however, that until so amended, (a) such ratio or requirement shall
continue to be computed in accordance with GAAP prior to such change therein and (b) Borrowers
shall provide to the Agent and the Lenders financial statements and other documents required under
this Agreement which include a reconciliation between calculations of such ratio or requirement
made before and after giving effect to such change in GAAP. All amounts used for purposes of
financial calculations required to be made herein shall be without duplication.

     Section 1.3 Other Definitional Provisions. References in this Agreement to “Articles”,
“Sections”, “Annexes”, “Exhibits” or “Schedules” shall be to Articles, Sections, Annexes,
Exhibits or Schedules of or to this Agreement unless otherwise specifically provided. Any term
defined herein may be used in the singular or plural.

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“Include”, “includes” and “including” shall be deemed to be followed by “without limitation”.
Except as otherwise specified or limited herein, references to any Person include the successors
and assigns of such Person. References “from” or “through” any date mean, unless otherwise
specified, “from and including” or “through and including”, respectively. References to any
statute or act shall include all related current regulations and all amendments and any successor
statutes, acts and regulations. References to any statute or act, without additional reference,
shall be deemed to refer to federal statutes and acts of the United States. References to any
agreement, instrument or document shall include all schedules, exhibits, annexes and other
attachments thereto. References to capitalized terms that are not defined herein, but are defined
in the UCC, shall have the meanings given them in the UCC.

     Section 1.4 Funding and Settlement Currency. Unless otherwise specified herein, the
settlement of all payments and fundings hereunder between or among the parties hereto shall be made
in lawful money of the United States and in immediately available funds.

     Section 1.5 Riders. All Riders attached hereto are hereby incorporated herein by this
reference and made a part hereof.

ARTICLE 2 — LOANS AND LETTERS OF CREDIT

     Section 2.1 Loans.

     (a) Term Loans.

          (i) Term Loan Amounts. On the terms and subject to the conditions set forth herein, the
Lenders hereby agree to make to Borrowers a term loan in an original principal amount equal to
$2,500,000 (“Term Loan”). Each Lender’s obligation to fund the Term Loan shall be limited to such
Lender’s Term Loan Commitment Percentage, and no Lender shall have any obligation to fund any
portion of any Term Loan required to be funded by any other Lender, but not so funded. No Borrower
shall have any right to reborrow any portion of the Term Loan that is repaid or prepaid from time
to time. The Term Loan may be funded in multiple advances, but no advances under the Term Loan
shall be made after April 26, 2007. Agent shall have no obligation to make more than one (1)
advance in respect of the Term Loan per calendar month and Agent shall have no obligation to make
any advance of the Term Loan that is less than $250,000. Borrowers shall deliver to Agent a Notice
of Borrowing with respect to each proposed Term Loan advance, such Notice of Borrowing to be
delivered no later than noon (Chicago time) two (2) Business Days prior to such proposed borrowing.

          (ii) Mandatory Prepayments; Optional Prepayments.

               (A) There shall become due and payable, and Borrowers shall repay the Term Loan through,
scheduled payments on each date set forth on Schedule 2.1 attached hereto; if there is no
Schedule 2.1 attached, then the principal of the Term Loan shall be payable upon demand of Agent.
Notwithstanding the payment schedules set forth above, the outstanding principal amount of the Term
Loan shall become immediately due and payable in full on the Termination Date.

               (B) There shall become due and payable and Borrowers shall prepay the Term Loan in the
following amounts and at the following times: (i) on the date on which any Credit Party (or Agent
as loss payee or assignee) receives any casualty proceeds of assets upon which Agent maintained a
Lien, an amount equal to one hundred percent (100%) of such proceeds (subject to the provisions
below in this Section 2.1(a)(ii)(B)), or such lesser portion as Agent shall elect to apply to the
Obligations; (ii) an amount equal to any interest that is deemed to be in excess of the Maximum
Lawful Rate and is required to be applied to the reduction of the principal balance of the Loans by
any Lender as provided for in Section 2.6; (iii) upon receipt by any Credit Party of the proceeds
of any asset disposition, an amount equal to one hundred percent (100%) of the net cash proceeds of
such asset disposition not made in the Ordinary Course of Business; and (iv) upon receipt by any
Credit Party of any Extraordinary Receipts, an amount equal to one hundred percent (100%) of such
Extraordinary Receipts. Notwithstanding the foregoing, (a) so long as no Event of Default has
occurred and is continuing, Borrower shall

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have the option of applying the proceeds of any casualty policy up to $100,000, in the aggregate,
toward the replacement or repair of destroyed or damaged property; provided that any such replaced
or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and
(ii) shall be deemed Collateral in which Agent, on behalf of the Lenders, and Lenders have been
granted a first priority security interest, (b) if the replacement or repair has not been completed
within ninety (90) days of the date of the casualty then the proceeds of such casualty policy shall
be paid over to Agent on account of the Obligations, and (c) after the occurrence and during the
continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the
option of Agent, be payable to Agent on account of the Obligations.

               (C) Borrowers may from time to time, with at least two (2) Business Days prior delivery to
Agent of an appropriately completed Payment Notification, prepay all but not less than all the Term
Loan; provided, however, that any such partial prepayment shall be in an amount equal to $100,000
or a higher integral multiple of $25,000.

          (iii) All Prepayments. Except as this Agreement may specifically provide otherwise, all
prepayments of the Term Loan shall be applied by Agent to the Obligations in such order and manner
as Agent may elect. No prepayment, whether mandatory or optional, shall alter Schedule 2.1 except
as otherwise provided for herein or therein.

     (b) Revolving Loans.

          (i) Revolving Loans and Borrowings. On the terms and subject to the conditions set forth
herein, each Lender severally agrees to make Loans to Borrowers from time to time as set forth
herein (each a “Revolving Loan”, and collectively, “Revolving Loans”) equal to such Lender’s
Revolving Loan Commitment Percentage of Revolving Loans requested by Borrower hereunder, provided,
however, that after giving effect thereto, the Revolving Loan Outstandings shall not exceed the
Revolving Loan Limit. Borrowers shall deliver to Agent a Notice of Borrowing with respect to each
proposed Revolving Loan Borrowing, such Notice of Borrowing to be delivered no later than noon
(Chicago time) two (2) Business Days prior to such proposed borrowing. Each Borrower and each
Revolving Lender hereby authorizes Agent to make Revolving Loans on behalf of Revolving Lenders, at
any time in its sole discretion, (A) as provided in Section 2.4(c), with respect to obligations
arising under Support Agreements and/or Lender Letters of Credit, and (B) to pay principal owing in
respect of the Loans and interest, fees, expenses and other charges of any Credit Party from time
to time arising under this Agreement or any other Financing Document. The Borrowing Base shall be
determined by Agent based on the most recent Borrowing Base Certificate delivered to Agent in
accordance with this Agreement and such other information as may be available to Agent. Without
limiting any other rights and remedies of Agent hereunder or under the other Financing Documents,
the Revolving Loans shall be subject to Agent’s continuing right to withhold from the Borrowing
Base reserves, and to increase and decrease such reserves from time to time, if and to the extent
that in Agent’s good faith credit judgment and discretion, such reserves are necessary.

          (ii) Mandatory Revolving Loan Repayments and Prepayments.

               (A) The Revolving Loan Commitment shall terminate on the Termination Date. On such
Termination Date, there shall become due, and Borrowers shall pay, the entire outstanding principal
amount of each Revolving Loan, together with accrued and unpaid interest thereon to, but excluding,
the Termination Date.

               (B) If at any time the Revolving Loan Outstandings exceed the Revolving Loan Limit, then, on
the next succeeding Business Day, Borrowers shall repay the Revolving Loans or cash collateralize
Letter of Credit Liabilities in the manner specified in Section 2.4(e) or cancel outstanding
Letters of Credit, or any combination of the foregoing, in an aggregate amount equal to such
excess.

               (C) Principal payable on account of Revolving Loans shall be payable by Borrowers to Agent (A)
immediately upon the receipt by any Borrower or Agent of any payments on or proceeds from any of
the Accounts, to the extent of such payments or proceeds, as further described in Section 2.9
below, and (B) in full on the Termination Date.

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          (iii) Optional Prepayments. Borrowers may from time to time prepay the Revolving Loans in
whole or in part; provided, however, that any such partial prepayment shall be in an amount equal
to $100,000 or a higher integral multiple of $25,000.

          (iv) Restriction on Termination. Borrowers shall have no right to terminate the Revolving
Loan Commitment, or to otherwise terminate this Agreement, while any portion of the indebtedness
under the Affiliated Financing Documents shall remain outstanding. Notwithstanding any prepayment
of the Revolving Loan Outstandings or any other termination of Lenders’ Credit Exposure under this
Agreement, Agents and Lenders shall have no obligation to release any of the Collateral securing
this Agreement while any portion of the indebtedness under the Affiliated Financing Documents shall
remain outstanding.

     Section 2.2 Interest, Interest Calculations and Certain Fees.

     (a) Interest. From and following the Closing Date, the Loans and the other Obligations shall
bear interest at the sum of the Base Rate plus the applicable Base Rate Margin. For purposes of
calculating interest, all funds transferred from the Payment Account for application to any
Revolving Loans or Term Loan shall be subject to a three (3) Business Day clearance period.

     (b) Unused Line Fee. From and following the Closing Date, Borrowers shall pay Agent, for the
benefit of all Lenders committed to make Revolving Loans, in accordance with their respective Pro
Rata Shares, a fee in an amount equal to (i) (A) the Revolving Loan Commitment minus (B) the
average daily balance of the sum of the Revolving Loan Outstandings during the preceding month,
multiplied by (ii) five hundred four one-thousandths of one percent (0.504%) per annum. Such fee
is to be paid monthly in arrears on the first day of each month.

     (c) Reserved.

     (d) Commitment Fee. Contemporaneous with Borrowers’ execution of this Agreement, Borrowers
shall pay Agent, for the benefit of all Lenders committed to make Revolving Loans on the Closing
Date, in accordance with their respective Pro Rata Shares, a fee in an amount equal to (i) the
Revolving Loan Commitment, multiplied by (ii) one percent (1.00%). Contemporaneous with Borrowers
execution of this Agreement, Borrowers shall pay Agent, for its own account and not for the benefit
of any other Lenders, a fee in an amount equal to the Term Loan Commitment multiplied by one
percent (1.00%). Notwithstanding the foregoing, provided that no Event of Default shall have
occurred, Borrowers shall be permitted to defer payment of (A) one-third (1/3) of the fees
described in this subsection for a period of one year from the date of this Agreement, and (B)
one-third (1/3) of the fees described in this subsection for a period of two years from the date of
this Agreement.

     (e) Deferred Revolving Loan Commitment Fee. If Agent’s funding obligations in respect of the
Revolving Loan Commitment under this Agreement terminate for any reason (whether by voluntary
termination by Borrowers, by reason of the occurrence of an Event of Default or otherwise) prior to
the Commitment Expiry Date, Borrowers shall pay to Agent, for the benefit of all Lenders committed
to make Revolving Loans, a fee (the “Deferred Commitment Fee”) as compensation for the costs of
such Lenders being prepared to make funds available to Borrowers under this Agreement, equal to an
amount determined by multiplying the Revolving Loan Commitment by the following applicable
percentage amount: five percent (5.0%) for the first year following the Closing Date, three
percent (3.0%) for the second year following the Closing Date, and one percent (1.0%) for the third
year following the Closing Date. Notwithstanding the foregoing, the Deferred Commitment Fee
payable upon any such termination occurring in the first year following the Closing Date shall be
reduced to threee percent (3.0%) upon delivery to Lender of Borrowers’ certificate to the effect
that the grant to Agent, on behalf of the Lenders, of a security interest in the IP Proceeds is
impairing Borrowers’ ability to effect an equity financing. No amount will be payable pursuant to
this paragraph if Borrowers voluntarily prepay the Obligations in full after the third anniversary
of the Closing Date.

     (f) Reserved.

     (g) Audit Fees. Borrowers shall pay to Agent, for its own account and not for the benefit of
any other

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Lenders, all fees and expenses in connection with audits of Borrowers’ books and records,
audits, valuations or appraisals of the Collateral, audits of Borrowers’ compliance with applicable
Laws and such other matters as Agent shall deem appropriate, which shall be due and payable on the
first Business Day of the month following the date of issuance by Agent of a written request for
payment thereof to Borrowers.

     (h) Wire Fees. Borrowers shall pay to Agent, for its own account and not for the account of
any other Lenders, on written demand, any and all fees, costs or expenses which Agent pays to a
bank or other similar institution (including, without limitation, any fees paid by Agent to any
other Lender) arising out of or in connection with (i) the forwarding to Borrowers or any other
Person on behalf of Borrowers, by Agent, of proceeds of the Loans made by any Lender to Borrowers
pursuant to this Agreement, and (ii) the depositing for collection, by Agent, of any check or item
of payment received or delivered to Agent on account of Obligations.

     (i) Late Charges. If payments of principal (other than a final installment of principal upon
the Termination Date), interest due on the Obligations, or any other amounts due hereunder or under
the other Financing Documents are not timely made and remain overdue for a period of five (5) days,
Borrowers, without notice or demand by Agent, promptly shall pay to Agent, for its own account and
not for the benefit of any other Lenders, as additional compensation to Agent in administering the
Obligations, an amount equal to five percent (5%) of each delinquent payment.

     (j) Computation of Interest and Related Fees; Payment of Interest. All interest and fees
under each Financing Document shall be calculated on the basis of a 360-day year for the actual
number of days elapsed. The date of funding of Loan shall be included in the calculation of
interest. The date of payment of a Loan shall be excluded from the calculation of interest. If a
Loan is repaid on the same day that it is made, one (1) day’s interest shall be charged. Interest
on all Loans is payable in arrears on the first day of each month and on the maturity of such
Loans, whether by acceleration or otherwise.

     (k) Automated Clearing House Payments. If Agent so elects, monthly payments of interest and
amortization shall be paid to Agent by Automated Clearing House debit of immediately available
funds from the financial institution account designated by Borrowers in the Automated Clearing
House debit authorization executed by Borrowers in connection with this Agreement, and shall be
effective upon receipt. Borrowers shall execute any and all forms and documentation necessary from
time to time to effectuate such automatic debiting. In no event shall any such payments be
refunded to Borrowers.

     Section 2.3 Notes. The portion of the Loans made by each Lender shall be evidenced, if so
requested by such Lender, by a promissory note executed by Borrowers on a joint and several basis
in an original principal amount equal to such Lender’s Pro Rata Share of the applicable Loan
Commitment.

     Section 2.4 Letters of Credit and Letter of Credit Fees.

     (a) Letter of Credit. On the terms and subject to the conditions set forth herein, the
Revolving Loan Commitment may be used by Borrowers, in addition to the making of Revolving Loans
hereunder, for the issuance, prior to the Termination Date, by (i) Agent, of letters of credit,
Guarantees or other agreements or arrangements (each, a “Support Agreement”) to induce an LC Issuer
to issue or increase the amount of, or extend the expiry date of, one or more Letters of Credit and
(ii) a Lender, identified by Agent, as an LC Issuer, of one or more Lender Letters of Credit, so
long as, in each case:

          (i) Agent shall have received a Notice of LC Credit Event at least five (5) Business Days
before the relevant date of issuance, increase or extension; and

          (ii) after giving effect to such issuance, increase or extension, (A) the aggregate Letter of
Credit Liabilities under all Letters of Credit do not exceed $25,000, and (B) the Revolving Loan
Outstandings do not exceed the Revolving Loan Limit.

Nothing in this Agreement shall be construed to obligate any Lender to issue, increase the amount
of or extend the expiry date of any letter of credit, which act or acts, if any, shall be subject
to agreements to be entered into from

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time to time between Borrowers and such Lender. Each Lender that is an LC Issuer hereby agrees to
give Agent prompt written notice of each issuance of a Lender Letter of Credit by such Lender and
each payment made by such Lender in respect of Lender Letters of Credit issued by such Lender.

     (b) Letter of Credit Fee. Borrowers shall pay to Agent, for the benefit of the Revolving
Lenders in accordance with their respective Pro Rata Shares, a letter of credit fee with respect to
the Letter of Credit Liabilities for each Letter of Credit, computed for each day from the date of
issuance of such Letter of Credit to the date that is the last day a drawing is available under
such Letter of Credit, at a rate per annum equal to the Base Rate Margin then applicable to
Revolving Loans. Such fee shall be payable in arrears on the last day of each calendar month prior
to the Termination Date and on such date. In addition, Borrowers agree to pay promptly to the LC
Issuer any customary and reasonable fronting or other fees that it may charge in connection with
any Letter of Credit.

     (c) Reimbursement Obligations of Borrowers. If either (i) Agent shall make a payment to an LC
Issuer pursuant to a Support Agreement, or (ii) any Lender shall honor any draw request under, and
make payment in respect of, a Lender Letter of Credit, (A) the applicable Borrower shall reimburse
Agent or such Lender, as applicable, for the amount of such payment by the end of the day on which
Agent or such Lender shall make such payment and (B) Borrowers shall be deemed to have immediately
requested that Revolving Lenders make a Revolving Loan, in a principal amount equal to the amount
of such payment (but solely to the extent such Borrower shall have failed to directly reimburse
Agent or, with respect to Lender Letters of Credit, the applicable LC Issuer, for the amount of
such payment). Agent shall promptly notify Revolving Lenders of any such deemed request and each
Revolving Lender (other than any such Revolving Lender that was a Non-Funding Lender at the time
the applicable Supported Letter of Credit or Lender Letter of Credit was issued) hereby agrees to
make available to Agent not later than noon (Chicago time) on the Business Day following such
notification from Agent such Revolving Lender’s Pro Rata Share of such Revolving Loan. Each
Revolving Lender (other than any applicable Non-Funding Lender specified above) hereby absolutely
and unconditionally agrees to fund such Revolving Lender’s Pro Rata Share of the Loan described in
the immediately preceding sentence, unaffected by any circumstance whatsoever, including, without
limitation, (x) the occurrence and continuance of a Default or Event of Default, (y) the fact that,
whether before or after giving effect to the making of any such Revolving Loan, the Revolving Loan
Outstandings exceed or will exceed the Revolving Loan Limit, and/or (z) the non-satisfaction of any
conditions set forth in Section 7.2. Agent hereby agrees to apply the gross proceeds of each
Revolving Loan deemed made pursuant to this Section 2.4(c) in satisfaction of Borrowers’
reimbursement obligations arising pursuant to this Section 2.4(c). Borrowers shall pay interest,
on demand, on all amounts so paid by Agent pursuant to any Support Agreement or to any applicable
Lender in honoring a draw request under any Lender Letter of Credit for each day from the date of
such payment until Borrowers reimburse Agent or the applicable Lender therefore (whether pursuant
to clause (A) or (B) of the first sentence of this subsection (c)) at a rate per annum equal to the
sum of two percent (2%) plus the interest rate applicable to Revolving Loans for such day.

     (d) Reimbursement and Other Payments by Borrowers. The obligations of each Borrower to
reimburse Agent and/or the applicable LC Issuer pursuant to Section 2.4(c) shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this
Agreement, under all circumstances whatsoever, including the following:

          (i) any lack of validity or enforceability of, or any amendment or waiver of or any consent to
departure from, any Letter of Credit or any related document;

          (ii) the existence of any claim, set-off, defense or other right which any Borrower may have
at any time against the beneficiary of any Letter of Credit, the LC Issuer (including any claim for
improper payment), Agent, any Lender or any other Person, whether in connection with any Financing
Document or any unrelated transaction, provided, however, that nothing herein shall prevent the
assertion of any such claim by separate suit or compulsory counterclaim;

          (iii) any statement or any other document presented under any Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect whatsoever;

          (iv) any affiliation between the LC Issuer and Agent; or

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          (v) to the extent permitted under applicable law, any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing.

     (e) Deposit Obligations of Borrowers. In the event any Letters of Credit are outstanding at
the time that Borrowers prepay or are required to repay the Obligations or the Revolving Loan
Commitment is terminated, Borrowers shall (i) deposit with Agent for the benefit of all Revolving
Lenders cash in an amount equal to one hundred and five percent (105%) of the aggregate outstanding
Letter of Credit Liabilities to be available to Agent, for its benefit and the benefit of issuers
of Letters of Credit, to reimburse payments of drafts drawn under such Letters of Credit and pay
any fees and expenses related thereto, and (ii) prepay the fee payable under Section 2.4(b) with
respect to such Letters of Credit for the full remaining terms of such Letters of Credit assuming
that the full amount of such Letters of Credit as of the date of such repayment or termination
remain outstanding until the end of such remaining terms. Upon termination of any such Letter of
Credit and provided no Event of Default has occurred and is continuing, the unearned portion of
such prepaid fee attributable to such Letter of Credit shall be refunded to Borrowers, together
with the deposit described in the preceding clause (i) to the extent not previously applied by
Agent in the manner described herein.

     Section 2.5 General Provisions Regarding Payment; Loan Account.

     (a) All payments to be made by each Borrower under any Financing Document, including payments
of principal and interest made hereunder and pursuant to any other Financing Document, and all
fees, expenses, indemnities and reimbursements, shall be made without set-off, recoupment or
counterclaim, in lawful money of the United States and in immediately available funds. If any
payment hereunder becomes due and payable on a day other than a Business Day, such payment shall be
extended to the next succeeding Business Day and, with respect to payments of principal, interest
thereon shall be payable at the then applicable rate during such extension (it being understood and
agreed that, solely for purposes of calculating financial covenants and computations contained
herein and determining compliance therewith, if payment is made, in full, on any such extended due
date, such payment shall be deemed to have been paid on the original due date without giving effect
to any extension thereto). Any payments received in the Payment Account before noon (Chicago time)
on any date shall be deemed received by Agent on such date, and any payments received in the
Payment Account after noon (Chicago time) on any date shall be deemed received by Agent on the next
succeeding Business Day.

     (b) Agent shall maintain a loan account (the “Loan Account”) on its books to record Loans and
other extensions of credit made by the Lenders hereunder or under any other Financing Document, and
all payments thereon made by each Borrower. All entries in the Loan Account shall be made in
accordance with Agent’s customary accounting practices as in effect from time to time. The balance
in the Loan Account, as recorded in Agent’s books and records at any time shall be conclusive and
binding evidence of the amounts due and owing to Agent by each Borrower absent clear and convincing
evidence to the contrary; provided, however, that any failure to so record or any error in so
recording shall not limit or otherwise affect any Borrower’s duty to pay all amounts owing
hereunder or under any other Financing Document. Agent shall endeavor to provide Borrowers with a
monthly statement regarding the Loan Account (but neither Agent nor any Lender shall have any
liability if Agent shall fail to provide any such statement). Unless any Borrower notifies Agent
of any objection to any such statement (specifically describing the basis for such objection)
within thirty (30) days after the date of receipt thereof, it shall be deemed final, binding and
conclusive upon Borrowers in all respects as to all matters reflected therein.

     Section 2.6 Maximum Interest. In no event shall the interest charged with respect to the
Notes (if any) or any other obligations of any Borrower under any Financing Document exceed the
maximum amount permitted under the laws of the State of Illinois or of any other applicable
jurisdiction. Notwithstanding anything to the contrary herein or elsewhere, if at any time the
rate of interest payable hereunder or under any Note or other Financing Document (the “Stated
Rate”) would exceed the highest rate of interest permitted under any applicable law to be charged
(the “Maximum Lawful Rate”), then for so long as the Maximum Lawful Rate would be so exceeded, the
rate of interest payable shall be equal to the Maximum Lawful Rate; provided, however, that if at
any time thereafter the Stated Rate is less than the Maximum Lawful Rate, each Borrower shall, to
the extent permitted by law, continue to pay interest at the Maximum Lawful Rate until such time as
the total interest received is equal to the total interest which would have been received had the
Stated Rate been (but for the operation of this provision) the interest rate payable. Thereafter,
the interest rate payable shall be the Stated Rate unless and until the Stated

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Rate again would exceed the Maximum Lawful Rate, in which event this provision shall again apply.
In no event shall the total interest received by any Lender exceed the amount which it could
lawfully have received had the interest been calculated for the full term hereof at the Maximum
Lawful Rate. If, notwithstanding the prior sentence, any Lender has received interest hereunder in
excess of the Maximum Lawful Rate, such excess amount shall be applied to the reduction of the
principal balance of the Loans or to other amounts (other than interest) payable hereunder, and if
no such principal or other amounts are then outstanding, such excess or part thereof remaining
shall be paid to Borrowers. In computing interest payable with reference to the Maximum Lawful
Rate applicable to any Lender, such interest shall be calculated at a daily rate equal to the
Maximum Lawful Rate divided by the number of days in the year in which such calculation is made.

     Section 2.7 Capital Adequacy. If any Lender shall determine in its commercially reasonable
judgment that the adoption or taking effect of, or any change in, any applicable Law regarding
capital adequacy, in each instance, after the Closing Date, or any change after the Closing Date in
the interpretation, administration or application thereof by any Governmental Authority, central
bank or comparable agency charged with the interpretation, administration or application thereof,
or the compliance by any Lender or any Person controlling such Lender with any request, guideline
or directive regarding capital adequacy (whether or not having the force of law) of any such
Governmental Authority, central bank or comparable agency adopted or otherwise taking effect after
the Closing Date, has or would have the effect of reducing the rate of return on such Lender’s or
such controlling Person’s capital as a consequence of such Lender’s obligations hereunder or under
any Support Agreement or Lender Letter of Credit to a level below that which such Lender or such
controlling Person could have achieved but for such adoption, taking effect, change,
interpretation, administration, application or compliance (taking into consideration such Lender’s
or such controlling Person’s policies with respect to capital adequacy) then from time to time,
upon written demand by such Lender (which demand shall be accompanied by a statement setting forth
the basis for such demand and a calculation of the amount thereof in reasonable detail, a copy of
which shall be furnished to Agent), Borrowers shall promptly pay to such Lender such additional
amount as will compensate such Lender or such controlling Person for such reduction, so long as
such amounts have accrued on or after the day which is two hundred seventy (270) days prior to the
date on which such Lender first made demand therefor.

     Section 2.8 Joint and Several Liability. Borrowers are defined collectively to include all
Persons constituting the Borrowers; provided, however, that any references herein to “any
Borrower”, “each Borrower” or similar references, shall be construed as a reference to each
individual Person named as one of the Borrowers herein. Each Person so named shall be jointly and
severally liable for all of the obligations of Borrowers under this Agreement. Each Borrower,
individually, expressly understands, agrees and acknowledges, that the credit facilities
contemplated herein would not be made available on the terms herein in the absence of the
collective credit of all of the Persons constituting the Borrowers, the joint and several liability
of all such Persons, and the cross-collateralization of the collateral of all such Persons.
Accordingly, each Borrower, individually acknowledges that the benefit to each of the Persons
comprising the Borrower as a whole constitutes reasonably equivalent value, regardless of the
amount of the credit facilities contemplated herein actually borrowed by, advanced to, or the
amount of collateral provided by, any individual Borrower. In addition, each entity comprising
Borrowers hereby acknowledges and agrees that all of the representations, warranties, covenants,
obligations, conditions, agreements and other terms contained in this Agreement shall be applicable
to and shall be binding upon and measured and enforceable individually against each Person
comprising Borrowers as well as all such Persons when taken together. By way of illustration, but
without limiting the generality of the foregoing, the terms of Section 9.1 of this Agreement are to
be applied to each individual Person comprising the Borrowers (as well as to all such Persons taken
as a whole), such that the occurrence of any of the events described in Section 9.1 of this
Agreement as to any Person comprising the Borrowers shall constitute an Event of Default even if
such event has not occurred as to any other Persons comprising the Borrowers or as to all such
Persons taken as a whole.

     Section 2.9 Collections and Lockbox Account.

     (a) Borrowers shall maintain a lockbox (the “Lockbox”) with a United States depository
institution designated from time to time by Agent (the “Lockbox Bank”), subject to the provisions
of this Agreement, and shall execute with the Lockbox Bank a Deposit Account Control Agreement and
such other agreements related to such Lockbox as Agent may require. Borrowers shall ensure that
all collections of Accounts (other than Accounts for which the Account Debtor is a Governmental
Account Debtor) are paid directly from Account Debtors into the Lockbox for deposit into the
Lockbox Account and/or directly into the Lockbox Account; provided, however, unless

25

 

Agent shall otherwise direct by written notice to Borrowers, Borrowers shall be permitted to cause
Account Debtors who are individuals to pay Accounts directly to Borrowers, which Borrowers shall
then administer and apply in the manner required below.

     (b) All funds deposited into a Lockbox Account shall be transferred into the Payment Account
by the close of each Business Day.

     (c) Notwithstanding anything in any lockbox agreement or Deposit Account Control Agreement to
the contrary, Borrowers agree that they shall be liable for any fees and charges in effect from
time to time and charged by the Lockbox Bank in connection with the Lockbox and the Lockbox
Account, and that Agent shall have no liability therefor. Borrowers hereby indemnify and agree to
hold Agent harmless from any and all liabilities, claims, losses and demands whatsoever, including
reasonable attorneys’ fees and expenses, arising from or relating to actions of Agent or the
Lockbox Bank pursuant to this Section or any lockbox agreement or Deposit Account Control Agreement
other than such liabilities, claims, losses and demands arising from Agent’s gross negligence or
willful misconduct.

     (d) Agent shall apply, on a daily basis, all funds transferred into the Payment Account
pursuant to this Section to reduce the outstanding Revolving Loans in such order of application as
Agent shall elect. Agent shall have no obligation to apply any funds transferred into the Payment
Account pursuant to this Section to reduce the outstanding Term Loan, but Agent shall have the
option to apply such funds to any Term Loan to the extent of any payments (whether of principal,
interest or otherwise) due and payable in respect thereof. If as the result of collections of
Accounts pursuant to the terms and conditions of this Section a credit balance exists with respect
to the Payment Account, such credit balance shall not accrue interest in favor of Borrowers, but
shall be available to Borrowers upon request of Borrowers at any time or times for so long as no
Default exists.

     (e) To the extent that any collections of Accounts or proceeds of other Collateral are not
sent directly to the Lockbox but are received by any Borrower, such collections shall be held in
trust for the benefit of Agent pursuant to an express trust created hereby and immediately
remitted, in the form received, to applicable Lockbox and Lockbox Account. No such funds received
by any Borrower shall be commingled with other funds of the Borrowers.

     (f) Borrowers acknowledge and agree that compliance with the terms of this Section is
essential, and that Agent and Lenders will suffer immediate and irreparable injury and have no
adequate remedy at law, if any Borrower, through acts or omissions, causes or permits Account
Debtors to send payments other than to the Lockbox, or if any Borrower fails to immediately deposit
collections of Accounts or proceeds of other Collateral in the Lockbox Account as herein required.
Accordingly, in addition to all other rights and remedies of Agent and Lenders hereunder, Agent
shall have the right to seek specific performance of the Borrowers’ obligations under this Section,
and any other equitable relief as Agent may deem necessary or appropriate, and Borrowers waive any
requirement for the posting of a bond in connection with such equitable relief.

     (g) Borrowers shall not, and Borrowers shall not suffer or permit any Credit Party to,
(i) withdraw any amounts from any Lockbox Account, (ii) change the procedures or sweep instructions
under the agreements governing any Lockbox Accounts, or (iii) send to or deposit in any Lockbox
Account any funds other than payments made with respect to and proceeds of Accounts or other
Collateral. Borrowers shall, and shall cause each Credit Party to, cooperate with Agent in the
identification and reconciliation on a daily basis of all amounts received in or required to be
deposited into the Lockbox Accounts. If more than five percent (5%) of the collections of Accounts
received by Borrowers during any given fifteen (15) day period is not identified or reconciled to
the reasonable satisfaction of Agent within ten (10) Business Days of receipt, Agent shall not be
obligated to make further advances under this Agreement until such amount is identified or is
reconciled to the reasonable satisfaction of Agent, as the case may be. In addition, if any such
amount cannot be identified or reconciled to the satisfaction of Agent, Agent may utilize its own
staff or, if it deems necessary, engage an outside auditor, in either case at Borrowers’ expense
(which in the case of Agent’s own staff shall be in accordance with Agent’s then prevailing
customary charges (plus expenses)), to make such examination and report as may be necessary to
identify and reconcile such amount.

     (h) If any Borrower breaches its obligation to direct payments of the proceeds of the
Collateral to the Lockbox Account, Agent, as the irrevocably made, constituted and appointed true
and lawful attorney for

26

 

Borrowers, may, by the signature or other act of any of Agent’s officers (without requiring
any of them to do so), direct any Account Debtor to pay proceeds of the Collateral to Borrowers by
directing payment to the Lockbox Account.

     Section 2.10 Reserves.

     (a) Borrowers agree to establish and maintain all of the reserves and escrows required in this
Section 2.10. All sums so reserved or escrowed may be commingled with the general funds of Agent
and no such sums shall be deemed to be held in trust for the benefit of Borrowers. No interest
shall be payable on any funds reserved or escrowed hereunder; provided, however, that sums reserved
pursuant to subsections 2.10(b) below shall accrue interest at rates determined by Agent to be
equivalent to those offered by commercial banks for corporate bank accounts (and all such interest
shall be held as part of the reserve). All sums so reserved or escrowed shall be part of the
Collateral and shall stand as additional security for all of the Obligations. If Agent at any time
determines that the amount on deposit in any reserve or escrow is insufficient for its intended
purposes, Borrowers shall, within ten (10) days following notice from Agent, deposit such
additional sums as may be required by Agent. In the event of any default by Borrowers under the
terms of this Agreement or any other Financing Document, Agent may, at its discretion, apply
amounts on hand in the reserves or escrows to cure such default. Upon demand of Agent, Borrowers
shall replenish the applicable reserve or escrow to restore any sums so applied by Agent. Upon the
occurrence of an Event of Default and/or the maturity of any portion of the Obligations, the moneys
then remaining on deposit with Agent shall, at Agent’s option, be applied against the Obligations
in such order and manner as Agent may elect or as may otherwise be required under this Agreement.

     (b) Prior to the initial advance of the Term Loan, Borrowers shall pay to Agent the sum of
$2,500,000 to be held by Agent in a cash collateral reserve (“Cash Collateral Reserve”). So long
as there exists no Default hereunder, or any fact, event or circumstance that, with the passage of
time or the giving of notice, or both, could result in a Default hereunder, Borrower shall be
entitled to request release of the Cash Collateral Reserve, or the applicable portion thereof, in
accordance with the following schedule: (i) following indefeasible repayment of any portion of the
Term Loan, Borrowers shall be entitled to request release of a portion of the Cash Collateral
Reserve in an amount equal to such repayment, provided, however, that in no event shall any such
release reduce the Cash Collateral Reserve below the then outstanding principal balance of the Term
Loan; and (ii) following satisfaction of the Cash Collateral Reserve Release Conditions, Borrowers
shall be entitled to request release of the remaining Cash Collateral Reserve. All requests for
release of any portion of the Cash Collateral Reserve shall be in writing and must be made at least
ten (10) Business Days prior to the requested date of release.

     (c) The term “Cash Collateral Reserve Release Conditions” means satisfaction of the conditions
to release of the Cash Collateral Reserve as set forth in Section 2.10(b), together with
satisfaction of the following conditions, as confirmed by Agent in writing based on written
evidence prepared by Borrowers and satisfactory in all respects to Agent: Agent shall have
received evidence from Borrowers that Borrowers have maintained a Positive Cash Flow for two
consecutive fiscal quarters, all as determined by Agent in its reasonable credit judgment based on
quarterly financial statements certified by an officer of Borrowers acceptable to Agent.

ARTICLE 3 — REPRESENTATIONS AND WARRANTIES

     To induce Agent and Lenders to enter into this Agreement and to make the Loans and other
credit accommodations contemplated hereby, each Borrower hereby represents and warrants to Agent
and each Lender that:

     Section 3.1 Existence and Power. Each Credit Party is an entity as specified on
Schedule 3.1, is duly organized, validly existing and in good standing under the laws of
the jurisdiction specified on Schedule 3.1, has the same legal name as it appears in such
Credit Party’s Organizational Documents and an organizational identification number (if any), in
each case as specified on Schedule 3.1, and has all powers and all Permits necessary in the
operation of its business as presently conducted or as proposed to be conducted, except where the
failure to have such Permits could not reasonably be expected to have a Material Adverse Effect.
Each Credit Party is qualified to do business as a foreign entity in each jurisdiction in which it
is required to be so qualified, which jurisdictions as of the Closing Date are specified on
Schedule 3.1, except where the failure to be so qualified could not reasonably be expected
to have a Material Adverse Effect. Except as set forth on Schedule 3.1, no Credit Party

27

 

(a) has had, over the five (5) year period preceding the Closing Date, any name other than its
current name, or (b) was incorporated or organized under the laws of any jurisdiction other than
its current jurisdiction of incorporation or organization.

     Section 3.2 Organization and Governmental Authorization; No Contravention. The execution,
delivery and performance by each Credit Party of the Operative Documents to which it is a party are
within its powers, have been duly authorized by all necessary action pursuant to its Organizational
Documents, require no further action by or in respect of, or filing with, any Governmental
Authority and do not violate, conflict with or cause a breach or a default under (a) any Law
applicable to any Credit Party or any of the Organizational Documents of any Credit Party, or
(b) any agreement or instrument binding upon it, except for such violations, conflicts, breaches or
defaults as could not, with respect to this clause (b), reasonably be expected to have a Material
Adverse Effect.

     Section 3.3 Binding Effect. Each of the Operative Documents to which any Credit Party is a
party constitutes a valid and binding agreement or instrument of such Credit Party, enforceable
against such Credit Party in accordance with its respective terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency or other similar laws relating to the enforcement
of creditors’ rights generally and by general equitable principles.

     Section 3.4 Capitalization. The authorized equity securities of each of the Credit Parties as
of the Closing Date is as set forth on Schedule 3.4. All issued and outstanding equity
securities of each of the Credit Parties are duly authorized and validly issued, fully paid,
nonassessable, free and clear of all Liens other than those in favor of Agent for the benefit of
Agent and Lenders, and such equity securities were issued in compliance with all applicable Laws.
The identity of the holders of the equity securities of each of the Credit Parties and the
percentage of their fully-diluted ownership of the equity securities of each of the Credit Parties
as of the Closing Date is set forth on Schedule 3.4. No shares of the capital stock or
other equity securities of any Credit Party, other than those described above, are issued and
outstanding as of the Closing Date. Except as set forth on Schedule 3.4, as of the Closing
Date there are no preemptive or other outstanding rights, options, warrants, conversion rights or
similar agreements or understandings for the purchase or acquisition from any Credit Party of any
equity securities of any such entity.

     Section 3.5 Financial Information. All consolidated financial statements for Borrower and any
of its Subsidiaries delivered to Agent fairly present in all material respects Borrower’s
consolidated financial condition and Borrower’s consolidated results of operations. There has not
been any material deterioration in Borrower’s consolidated financial condition since the date of
the most recent financial statements submitted to Agent.

     Section 3.6 Litigation. Except as set forth on Schedule 3.6 as of the Closing Date,
and except as hereafter disclosed to Agent in writing, (a) there is no Litigation pending against,
or to such Borrower’s knowledge threatened against or affecting, any Credit Party or, to such
Borrower’s knowledge, any party to any Operative Document other than a Credit Party and (b) there
is no Litigation pending in which an adverse decision could reasonably be expected to have a
Material Adverse Effect or which in any manner draws into question the validity of any of the
Operative Documents.

     Section 3.7 Ownership of Property. Each Borrower and each of its Subsidiaries is the lawful
owner of, has good and marketable title to and is in lawful possession of, or has valid leasehold
interests in, all properties and other assets (real or personal, tangible, intangible or mixed)
purported or reported to be owned or leased (as the case may be) by such Person.

     Section 3.8 No Default. No Event of Default, or to such Borrower’s knowledge, Default, has
occurred and is continuing. As of the Closing Date, no Credit Party is in breach or default under
or with respect to any contract, agreement, lease or other instrument to which it is a party or by
which its property is bound or affected, which breach or default could reasonably be expected to
have a Material Adverse Effect.

     Section 3.9 Labor Matters. As of the Closing Date, there are no strikes or other labor
disputes pending or, to such Borrower’s knowledge, threatened against any Credit Party. Hours
worked and payments made to the employees of the Credit Parties have not been in violation of the
Fair Labor Standards Act or any other

28

 

applicable Law dealing with such matters. All payments due from the Credit Parties, or for which
any claim may be made against any of them, on account of wages and employee and retiree health and
welfare insurance and other benefits have been paid or accrued as a liability on their books, as
the case may be. The consummation of the transactions contemplated by the Financing Documents and
the other Operative Documents will not give rise to a right of termination or right of
renegotiation on the part of any union under any collective bargaining agreement to which it is a
party or by which it is bound.

     Section 3.10 Regulated Entities. No Credit Party is an “investment company” or a company
“controlled” by an “investment company” or a “subsidiary” of an “investment company,” all within
the meaning of the Investment Company Act of 1940. No Credit Party is a “holding company”, or a
“subsidiary company” of a “holding company”, or an “affiliate” of a “holding company” or of a
“subsidiary company” of a “holding company”, within the meaning of the Public Utility Holding
Company Act of 1935.

     Section 3.11 Margin Regulations. None of the proceeds from the Loans have been or will be
used, directly or indirectly, for the purpose of purchasing or carrying any “Margin Stock” (as
defined in Regulation U of the Federal Reserve Board), for the purpose of reducing or retiring any
indebtedness which was originally incurred to purchase or carry any “Margin Stock” or for any other
purpose which might cause any of the Loans to be considered a “purpose credit” within the meaning
of Regulation T, U or X of the Federal Reserve Board.

     Section 3.12 Compliance With Laws; Anti-Terrorism Laws.

          (a) Each Credit Party is in compliance with the requirements of all applicable Laws, except
for such Laws the noncompliance with which could not reasonably be expected to have a Material
Adverse Effect.

          (b) None of the Credit Parties, their Affiliates or any of their respective agents acting or
benefiting in any capacity in connection with the transactions contemplated by this Agreement is
(i) in violation of any Anti-Terrorism Law, (ii) engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in any Anti-Terrorism Law, or (iii) is a Blocked Person.
No Credit Party nor, to the knowledge of any Credit Party, any of its Affiliates or agents acting
or benefiting in any capacity in connection with the transactions contemplated by this Agreement,
(x) conducts any business or engages in making or receiving any contribution of funds, goods or
services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any
transaction relating to, any property or interest in property blocked pursuant to Executive Order
No. 13224, any similar executive order or other Anti-Terrorism Law.

     Section 3.13 Taxes. All Federal, state and local tax returns, reports and statements required
to be filed by or on behalf of each Credit Party have been filed with the appropriate Governmental
Authorities in all jurisdictions in which such returns, reports and statements are required to be
filed and, except to the extent subject to a Permitted Contest, all Taxes (including real property
Taxes) and other charges shown to be due and payable in respect thereof have been timely paid prior
to the date on which any fine, penalty, interest, late charge or loss may be added thereto for
nonpayment thereof. Except to the extent subject to a Permitted Contest, all state and local sales
and use Taxes required to be paid by each Credit Party have been paid. All Federal and state
returns have been filed by each Credit Party for all periods for which returns were due with
respect to employee income tax withholding, social security and unemployment taxes, and, except to
the extent subject to a Permitted Contest, the amounts shown thereon to be due and payable have
been paid in full or adequate provisions therefor have been made.

     Section 3.14 Pensions. Borrower has paid all amounts necessary to fund all present pension,
profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not
withdrawn from participation in, and has not permitted partial or complete termination of, or
permitted the occurrence of any other event with respect to, any such plan which could reasonably
be expected to have a Material Adverse Effect, including any liability to the Pension Benefit
Guaranty Corporation or its successors or any other governmental agency.

     Section 3.15 Material Contracts. Except for the Operative Documents and the other agreements
set forth on Schedule 3.15 (collectively with the Operative Documents, the “Material
Contracts”), as of the Closing

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Date there are no (a) employment agreements covering the management of any Credit Party,
(b) collective bargaining agreements or other similar labor agreements covering any employees of
any Credit Party, (c) agreements for managerial, consulting or similar services to which any Credit
Party is a party or by which it is bound, (d) agreements regarding any Credit Party, its assets or
operations or any investment therein to which any of its equityholders is a party or by which it is
bound, (e) real estate leases, Intellectual Property licenses or other lease or license agreements
to which any Credit Party is a party, either as lessor or lessee, or as licensor or licensee (other
than licenses arising from the purchase of “off the shelf” products), or (f) customer,
distribution, marketing or supply agreements to which any Credit Party is a party, in each case
with respect to the preceding clauses (a), (c), (d), (e) and (f) requiring payment of more than
$50,000 in any year, (g) partnership agreements to which any Credit Party is a general partner or
joint venture agreements to which any Credit Party is a party, (h) third party billing arrangements
to which any Credit Party is a party, or (i) any other agreements or instruments to which any
Credit Party is a party; in each case, as to clauses (a) through (i) above, if the breach,
nonperformance or cancellation of which, or the failure of which to renew, could reasonably be
expected to have a Material Adverse Effect. The consummation of the transactions contemplated by
the Financing Documents and the other Operative Documents will not give rise to a right of
termination in favor of any party to any Material Contract (other than any Credit Party), except
for such Material Contracts the termination of which could not reasonably be expected to have a
Material Adverse Effect.

     Section 3.16 Compliance with Environmental Requirements; No Hazardous Materials.

     Except in each case as set forth on Schedule 3.16:

     (a) no notice, notification, demand, request for information, citation, summons, complaint or
order has been issued, no complaint has been filed, no penalty has been assessed and no
investigation or review is pending, or to such Borrower’s knowledge, threatened by any Governmental
Authority or other Person with respect to any (i) alleged violation by any Credit Party of any
Environmental Law, (ii) alleged failure by any Credit Party to have any Permits required in
connection with the conduct of its business or to comply with the terms and conditions thereof,
(iii) any generation, treatment, storage, recycling, transportation or disposal of any Hazardous
Materials, or (iv) release of Hazardous Materials; and

     (b) no property now owned or leased by any Credit Party and, to the knowledge of such
Borrower, no such property previously owned or leased by any Credit Party, to which any Credit
Party has, directly or indirectly, transported or arranged for the transportation of any Hazardous
Materials, is listed or, to such Borrower’s knowledge, proposed for listing, on the National
Priorities List promulgated pursuant to CERCLA, or CERCLIS (as defined in CERCLA) or any similar
state list or is the subject of Federal, state or local enforcement actions or, to the knowledge of
such Borrower, other investigations which may lead to claims against any Credit Party for clean-up
costs, remedial work, damage to natural resources or personal injury claims, including, without
limitation, claims under CERCLA;

For purposes of this Section 3.16, each Credit Party shall be deemed to include any business or
business entity (including a corporation) that is, in whole or in part, a predecessor of such
Credit Party.

     Section 3.17 Intellectual Property. Each Credit Party owns, is licensed to use or otherwise
has the right to use, all Intellectual Property that is material to the condition (financial or
other), business or operations of such Credit Party. All such Intellectual Property existing as of
the Closing Date and registered with any United States or foreign Governmental Authority is set
forth on Schedule 3.17. All Intellectual Property of each Credit Party is fully protected
and/or duly and properly registered, filed or issued in the appropriate office and jurisdictions
for such registrations, filings or issuances, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect. Borrowers are not a party, nor are bound
by, any material license or other agreement with respect to which any Borrower is the licensee that
prohibits or otherwise restricts such Borrower from granting a security interest in such Borrower’s
interest in such license or agreement or other property. To such Borrower’s knowledge, each Credit
Party conducts its business without infringement or claim of infringement of any Intellectual
Property rights of others and there is no infringement or claim of infringement by others of any
Intellectual Property rights of any Credit Party, which infringement or claim of infringement could
reasonably be expected to have a Material Adverse Effect.

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     Section 3.18 Solvency. Each Borrower and each additional Credit Party is Solvent.

     Section 3.19 Full Disclosure. None of the written information (financial or otherwise)
furnished by or on behalf of any Credit Party to Agent or any Lender in connection with the
consummation of the transactions contemplated by the Operative Documents, contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements
contained herein or therein not misleading in light of the circumstances under which such
statements were made. All financial projections delivered to Agent and the Lenders by Borrowers
(or their agents) have been prepared on the basis of the assumptions stated therein. Such
projections represent each Borrower’s best estimate of such Borrower’s future financial
performance. Each Borrower believed such assumptions to be fair and reasonable in light of current
business conditions and other circumstances as of the date such projections were prepared;
provided, however, that projections are not facts and Borrowers can give no assurance that such
projections will be attained.

     Section 3.20 Subsidiaries. Borrowers do not own any stock, partnership interests, limited
liability company interests or other equity securities except for Permitted Investments.

     Section 3.21 Representations and Warranties Incorporated from Operative Documents. As of the
Closing Date, each of the representations and warranties made in the Operative Documents by each of
the parties thereto is true and correct in all material respects, and such representations and
warranties are hereby incorporated herein by reference with the same effect as though set forth in
their entirety herein, as qualified therein, except to the extent that such representation or
warranty relates to a specific date, in which case such representation and warranty shall be true
as of such earlier date.

     Section 3.22 Exceptions to Representations and Warranties Regarding Collateral.
Notwithstanding anything to the contrary contained in any of the Operative Documents, no Credit
Party makes or shall be deemed to make any representation or warranty, as of the date hereof or at
any time hereafter, as to (a) the validity or perfection of any security interest in, or lien on,
IP Proceeds granted to the Agent or the Lenders, except to the extent the same can be and has been
effected solely by filing one or more financing statements against the IP Proceeds in the locations
specified in the Uniform Commercial Code of the applicable jurisdiction(s); or (b) the
enforceability of any rights and remedies with respect to the IP Proceeds, to the extent the same
shall require that any Credit Party take any further action (or refrain from taking, any action) on
or as of the date hereof or at any time hereafter to assure the validity and perfection of such
security interest and lien.

ARTICLE 4 — AFFIRMATIVE COVENANTS

     Each Borrower agrees that, so long as any Credit Exposure exists:

     Section 4.1 Financial Statements and Other Reports. Each Borrower will deliver to Agent: (1)
as soon as available, but no later than thirty (30) days after the last day of each month, a
company prepared consolidated balance sheet and income statement covering Borrower’s consolidated
operations during the period certified by a Responsible Officer and in a form acceptable to Agent;
(2) as soon as available, but no later than one hundred fifty (150) days after the last day of
Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently
applied, together with an unqualified opinion on the financial statements from an independent
certified public accounting firm acceptable to Agent in its reasonable discretion (for
clarification, KPMG is acceptable to Agent); (3) within five (5) days of delivery, copies of all
statements, reports and notices made available to Borrower’s security holders or to any holders of
Subordinated Debt; (4) a prompt report of any legal actions pending or threatened against Borrower
or any of its Subsidiaries that could result in damages or costs to Borrower or any of its
Subsidiaries of One Hundred Thousand Dollars ($100,000) or more; (5) prompt written notice of an
event that materially and adversely affects the value of any Intellectual Property; and (6)
budgets, sales projections, operating plans and other financial information reasonably requested by
Agent from time to time. Notwithstanding the above, Borrower’s 2005 annual financial statements
shall be due October 26, 2006. Each Borrower will, within thirty (30) days after the last day of
each month, deliver to Agent with the monthly financial statements, a duly completed Compliance
Certificate signed by a Responsible Officer setting forth calculations showing compliance with the
financial covenants set forth in this Agreement. Each Borrower will, within ten (10) days after
the last day of each month, deliver to Agent a duly completed Borrowing Base Certificate signed by
a Responsible Officer, with aged listings of accounts receivable and accounts payable (by invoice
date).

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     Section 4.2 Payment and Performance of Obligations. Each Borrower (a) will pay and discharge,
and cause each Subsidiary to pay and discharge, at or before maturity, all of their respective
obligations and liabilities, including tax liabilities, except for such obligations and/or
liabilities (i) that may be the subject of a Permitted Contest, and (ii) the nonpayment or
nondischarge of which could not reasonably be expected to have a Material Adverse Effect, (b) will
maintain, and cause each Subsidiary to maintain, in accordance with GAAP, appropriate reserves for
the accrual of all of their respective obligations and liabilities, and (c) will not breach or
permit any Subsidiary to breach, or permit to exist any default under, the terms of any lease,
commitment, contract, instrument or obligation to which it is a party, or by which its properties
or assets are bound, except for such breaches or defaults which could not reasonably be expected to
have a Material Adverse Effect.

     Section 4.3 Maintenance of Existence. Each Borrower will preserve, renew and keep in full
force and effect, and will cause each Subsidiary to preserve, renew and keep in full force and
effect, their respective existence and their respective rights, privileges and franchises necessary
or desirable in the normal conduct of business.

     Section 4.4 Maintenance of Property; Insurance.

     (a) Each Borrower will keep, and will cause each Subsidiary to keep, all property necessary in
its business in good working order and condition, ordinary wear and tear excepted. If all or any
part of the Collateral becomes damaged or destroyed, each Borrower will, and will cause each
Subsidiary to, promptly and completely repair and/or restore the affected Collateral in a good and
workmanlike manner, regardless of whether Agent agrees to disburse insurance proceeds or other sums
to pay costs of the work of repair or reconstruction.

     (b) Upon completion of any Permitted Contest, Borrowers shall, and will cause each Subsidiary
to, immediately pay the amount due, if any, and deliver to Agent proof of the completion of the
contest and payment of the amount due, if any, following which Agent shall return the security, if
any, deposited with Agent pursuant to the definition of Permitted Contest.

     (c) Each Borrower will maintain, and will cause each Subsidiary to maintain, (i) all insurance
described on Schedule 4.4, upon the terms and with the coverages and rights in favor of
Agent and Lenders as described in Schedule 4.4, and (ii) such other insurance coverage in
such amounts and with respect to such risks as Agent may reasonably from time to time request. In
the event any Borrower fails to provide Agent with evidence of the insurance coverage required by
this Agreement, Agent may purchase insurance at Borrowers’ expense to protect Agent’s interests in
the Collateral.

     Section 4.5 Compliance with Laws. Each Borrower will comply, and cause each Subsidiary to
comply, with the requirements of all applicable Laws, except to the extent that failure to so
comply could not reasonably be expected to (a) have a Material Adverse Effect, or (b) result in any
Lien upon either (i) a material portion of the assets of any such Person in favor of any
Governmental Authority, or (ii) any Accounts or Inventory.

     Section 4.6 Inspection of Property, Books and Records. Each Borrower will keep, and will
cause each Subsidiary to keep, proper books of record and account in accordance with GAAP in which
full, true and correct entries shall be made of all dealings and transactions in relation to its
business and activities; and will permit, and will cause each Subsidiary to permit, representatives
of Agent and of any Lender (but at such Lender’s expense unless such visit or inspection is made
concurrently with Agent) to visit and inspect any of their respective properties, to examine and
make abstracts or copies from any of their respective books and records, to conduct a collateral
audit and analysis of their respective operations and the Collateral, to verify the amount and age
of the Accounts, the identity and credit of the respective Account Debtors, to review the billing
practices of Borrower and to discuss their respective affairs, finances and accounts with their
respective officers, employees and independent public accountants as often as may reasonably be
desired. Agent may conduct the foregoing visits, audits, inspections, examinations, and
verifications (i) at the sole cost of the Borrowers at any time during the continuance of an Event
of Default and up to four times per calendar year in the absence of an Event of Default; and (ii)
at the sole cost of the Lenders at any other time. In the absence of an Event of Default, Agent or
any Lender exercising any rights pursuant to this Section 4.6 shall give the applicable Borrower or
any applicable Subsidiary commercially reasonable prior notice of such exercise. No notice shall
be required during the existence and continuance of any Event of Default.

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     Section 4.7 Use of Proceeds. Borrowers will use the proceeds of the Term Loan solely for
payment of amounts due in respect of an acquisition of equity interests or assets contemplated by
the Operative Documents, transaction fees incurred in connection with the Operative Documents and
the refinancing on the Closing Date of Debt. The proceeds of Revolving Loans shall be used by
Borrowers solely for the purposes set forth in the preceding sentence and for working capital needs
of Borrowers and their Subsidiaries. No portion of the proceeds of the Loans will be used for
family, personal, agricultural or household use.

     Section 4.8 Hazardous Materials; Remediation.

     (a) If any release or disposal of Hazardous Materials shall occur or shall have occurred on
any real property or any other assets of any Borrower or any other Credit Party, such Borrower will
cause, or direct the applicable Credit Party to cause, the prompt containment and removal of such
Hazardous Materials and the remediation of such real property or other assets as is necessary to
comply with all Environmental Laws and to preserve the value of such real property or other assets.
Without limiting the generality of the foregoing, each Borrower shall, and shall cause each other
Credit Party to, comply with each Environmental Law requiring the performance at any real property
by any Borrower or any other Credit Party of activities in response to the release or threatened
release of a Hazardous Material.

     (b) Borrowers will provide Agent within thirty (30) days after written demand therefor with a
bond, letter of credit or similar financial assurance evidencing to the reasonable satisfaction of
Agent that sufficient funds are available to pay the cost of removing, treating and disposing of
any Hazardous Materials or Hazardous Materials contamination and discharging any assessment which
may be established on any property as a result thereof, such demand to be made, if at all, upon
Agent’s reasonable business determination that the failure to remove, treat or dispose of any
Hazardous Materials or Hazardous Materials contamination, or the failure to discharge any such
assessment could reasonably be expected to have a Material Adverse Effect.

     Section 4.9 Further Assurances.

     (a) Each Borrower will, and will cause each Subsidiary to, at its own cost and expense, cause
to be promptly and duly taken, executed, acknowledged and delivered all such further acts,
documents and assurances as may from time to time be necessary or as Agent or the Required Lenders
may from time to time reasonably request in order to carry out the intent and purposes of the
Financing Documents and the transactions contemplated thereby, including all such actions to
(i) establish, create, preserve, protect and perfect a first priority Lien (subject only to
Permitted Liens) in favor of Agent for the benefit of the Lenders on the Collateral (including
Collateral acquired after the date hereof), whether now owned or hereafter acquired by a Credit
Party, and (ii) cause all Subsidiaries of Borrowers to be jointly and severally obligated with the
other Borrowers under all covenants and obligations under this Agreement, including the obligation
to repay the Obligations.

     (b) Upon receipt of an affidavit of an officer of Agent or a Lender as to the loss, theft,
destruction or mutilation of any Note or any other Financing Document which is not of public
record, and, in the case of any such mutilation, upon surrender and cancellation of such Note or
other applicable Financing Document, Borrowers will issue, in lieu thereof, a replacement Note or
other applicable Financing Document, dated the date of such lost, stolen, destroyed or mutilated
Note or other Financing Document in the same principal amount thereof and otherwise of like tenor.

     (c) Upon the formation or acquisition of a new Subsidiary, Borrowers shall (i) pledge, have
pledged or cause or have caused to be pledged to the Agent pursuant to a pledge agreement in form
and substance satisfactory to the Agent, all of the outstanding shares of equity interests or other
equity interests of such new Subsidiary owned directly or indirectly by any Borrower, along with
undated stock or equivalent powers for such certificates, executed in blank; (ii) cause the new
Subsidiary to take such other actions (including entering into or joining any Security Documents)
as are necessary or advisable in the reasonable opinion of the Agent in order to grant the Agent,
acting on behalf of the Lenders, a first priority Lien on all real and personal property and
leasehold estates of such Subsidiary in existence as of such date (excluding Excluded Property) and
in all after acquired Collateral (subject to Permitted Liens), which first priority Liens are
required to be granted pursuant to this Agreement; and (iii) cause the new Subsidiary to deliver
certified copies of such Subsidiary’s certificate or articles of incorporation, together with good
standing certificates, by-laws (or other operating agreement or governing

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documents), resolutions of the Board of Directors or other governing body, approving and authorize
the execution and delivery of the Security Documents, incumbency certificates and to execute and/or
deliver such other documents and legal opinions or to take such other actions as may be reasonably
requested by the Agent, in each case, in form and substance reasonably satisfactory to the Agent.

     (d) Upon the request of Agent, Borrowers shall obtain a landlord’s agreement or mortgagee
agreement, as applicable, from the lessor of each leased property or mortgagee of owned property
with respect to any business location where any portion of the Collateral included in or proposed
to be included in the Borrowing Base, or the records relating to such Collateral and/or software
and equipment relating to such records or Collateral, is stored or located, which agreement or
letter shall be reasonably satisfactory in form and substance to Agent. Borrowers shall timely and
fully pay and perform its obligations under all leases and other agreements with respect to each
leased location where any Collateral, or any records related thereto, is or may be located.

     (e) Notwithstanding anything to the contrary contained in any of the Operative Documents, no
Credit Party shall at any time be required to take, or refrain from taking, any action on or as of
the date hereof or at any time hereafter to assure (i) the validity or perfection of any security
interest in, or lien on, IP Proceeds granted to the Agent or the Lenders, except to the extent the
same can be and has been effected solely by filing one or more financing statements against the IP
Proceeds in the locations specified in the Uniform Commercial Code of the applicable
jurisdiction(s); or (ii) the enforceability of any rights and remedies with respect to IP Proceeds,
to the extent the same shall require that any Credit Party take any further action (or refrain from
taking any action) to assure the validity and perfection of such security interest and lien.

     Section 4.10 Notices of Litigation and Default. Borrowers will give prompt written notice to
Agent of any litigation or governmental proceedings pending or threatened (in writing) against
Borrowers or any Subsidiary or other Credit Party which could reasonably be expected to have a
Material Adverse Effect with respect to Borrowers, any Subsidiary or any other Credit Party.
Without limiting or contradicting any other more specific provision of this Agreement, promptly
(and in any event within three (3) Business Days) upon any Borrower becoming aware of the existence
of any Default or Event of Default, Borrowers shall give written notice to Agent of such
occurrence, which such notice shall include a reasonably detailed description of such Default or
Event of Default.

     Section 4.11 Updates of Representations. Borrowers shall deliver to Agent within ten (10)
days of the written request of Agent an Officer’s Certificate updating all of the representations
and warranties contained in this Agreement and the other Financing Documents and certifying that
all of the representations and warranties contained in this Agreement and the other Financing
Documents, as updated pursuant to such Officer’s Certificate, are true, accurate and complete as of
the date of such Officer’s Certificate.

     Section 4.12 Power of Attorney. Each of the officers of Agent is hereby irrevocably made,
constituted and appointed the true and lawful attorney for Borrowers (without requiring any of them
to act as such) with full power of substitution to do the following so long as Agent has provided
not less than three (3) Business Days’ prior written notice to Borrower to perform the same and
Borrower has failed to take such action: (a) endorse the name of Borrowers upon any and all
checks, drafts, money orders, and other instruments for the payment of money that are payable to
Borrowers and constitute collections on Borrowers’ Accounts; (b) execute in the name of Borrowers
any financing statements, schedules, assignments, instruments, documents, and statements that
Borrowers are obligated to give Agent under this Agreement; (c) after the occurrence and during the
continuance of a Default, take any action Borrowers are required to take under this Agreement;
(d) do such other and further acts and deeds in the name of Borrowers that Agent may deem necessary
or desirable to enforce any Account or other Collateral or perfect Agent’s security interest or
Lien in any Collateral; and (e) after the occurrence and during the continuance of an Event of
Default, do such other and further acts and deeds in the name of Borrowers that Agent may deem
necessary or desirable to enforce its rights with regard to any Account or other Collateral. This
power of attorney shall be irrevocable and coupled with an interest.

     Section 4.13 Borrowing Base Collateral Administration.

     (a) All data and other information relating to Accounts or other intangible Collateral shall
at all times be kept by Borrowers at their respective principal offices and shall not be moved from
such locations without

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(i) providing prior written notice to Agent, and (ii) obtaining the prior written consent of Agent,
which consent shall not be unreasonably withheld.

     (b) Whether or not an Event of Default has occurred, any of Agent’s officers, employees or
agents shall have the right, at any time or times hereafter, in the name of Agent or any designee
of Agent or Borrowers, to verify the validity, amount or any other matter relating to any Accounts
by mail, telephone, telegraph or otherwise, including, without limitation, verification of
Borrowers’ compliance with applicable Laws. Borrowers shall cooperate fully with Agent in an
effort to facilitate and promptly conclude such verification process. Such verification may
include contacts between Agent and applicable federal, state and local regulatory authorities
having jurisdiction over the Borrowers’ affairs, all of which contacts Borrowers hereby irrevocably
authorize.

     (c) To expedite collection, Borrowers shall endeavor in the first instance to make collection
of Accounts for Agent. Agent shall have the right at any time to notify Account Debtors that Agent
has been granted a Lien upon all Accounts, that Accounts have been assigned to Agent and, following
the occurrence of a Default, that payment of such Accounts shall be made directly by such Account
Debtors to Agent (and once such notice has been given to an Account Debtor, Borrowers shall not
give any contrary instructions to such Account Debtor without Agent’s prior written consent).
Borrowers shall provide prompt written notice to each Person who either is currently an Account
Debtor or becomes an Account Debtor at any time following the date of this Agreement that directs
each Account Debtor to make payments into the Lockbox, and hereby authorizes Agent, upon Borrowers’
failure to send such notices within ten (10) days after the date of this Agreement (or ten (10)
days after the Person becomes an Account Debtor), to send any and all similar notices to such
Person.

     (d) Borrowers will conduct a physical count of the Inventory at least twice per year and at
such other times as Agent reasonably requests, and Borrowers shall provide to Agent a written
accounting of such physical count in form and substance satisfactory to Agent. Borrowers will use
commercially reasonable efforts to at all times keep its Inventory in good and marketable
condition. In addition to the foregoing, from time to time, Agent may require Borrowers (at
Borrowers’ sole expense at any time during the continuance of an Event of Default and once per
calendar year in the absence of an Event of Default, and at the Lenders’ expense at all other
times) to obtain and deliver to Agent appraisal reports in form and substance and from appraisers
reasonably satisfactory to Agent stating the then current fair market values of all or any portion
of Inventory owned by each Borrower or any Subsidiaries.

     (e) Borrowers will use commercially reasonable efforts to at all times keep its FF&E in good
repair and physical condition. In addition to the foregoing, from time to time, Agent may require
Borrowers (at Borrowers’ sole expense at any time during the continuance of an Event of Default and
once per calendar year in the absence of an Event of Default, and at the Lenders’ expense at all
other times) to obtain and deliver to Agent appraisal reports in form and substance and from
appraisers reasonably satisfactory to Agent stating the then current fair market values of all or
any portion of FF&E owned by each Borrower or any Subsidiaries.

ARTICLE 5 — NEGATIVE COVENANTS

     Each Borrower agrees that, so long as any Credit Exposure exists:

     Section 5.1 Debt. No Borrower will, or will permit any Subsidiary to, directly or
indirectly, create, incur, assume, guarantee or otherwise become or remain directly or indirectly
liable with respect to, any Debt, except for Permitted Indebtedness.

     Section 5.2 Liens. No Borrower will, or will permit any Subsidiary to, directly or
indirectly, create, assume or suffer to exist any Lien on any asset now owned or hereafter acquired
by it, except for Permitted Liens. Without limiting the generality of the foregoing, no Borrower
will, or will permit any Subsidiary to, directly or indirectly, create, assume or suffer to exist
any Lien on any of its or their copyright rights, copyright applications, copyright registrations
and like protections in each work of authorship and derivative work, whether published or
unpublished, any patents, patent applications and like protections, including improvements,
divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same,
trademarks, service marks and, to the extent permitted under applicable law, any applications
therefor, whether registered or not, and the goodwill of the business of Borrowers and their
Subsidiaries connected with and symbolized thereby, know-how, operating manuals, trade

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secret rights, rights to unpatented inventions, and any claims for damage by way of any past,
present, or future infringement of any of the foregoing.

     Section 5.3 Restricted Distributions. No Borrower will, or will permit any Subsidiary to,
directly or indirectly, declare, order, pay, make or set apart any sum for any Restricted
Distribution; provided, however, that the following Restricted Distributions may be paid (each, an
“Allowed Distribution”): (a) at any time, dividends may be paid by any Borrower that is a
Subsidiary of another Borrower to such parent Borrower (and/or to any intermediate Subsidiary of
such Borrower); (b) any Borrowers may pay dividends in common stock; and (c) Borrower may
repurchase the stock or other equity securities of former employees, directors or consultants
pursuant to employment or stock repurchase agreements so long as an Event of Default does not exist
at the time of such repurchase and would not exist after giving effect to such repurchase, provided
that all such repurchases made in any fiscal year does not exceed $50,000 in the aggregate.

     Section 5.4 Restrictive Agreements. No Borrower will, or will permit any Subsidiary to,
directly or indirectly (a) enter into or assume any agreement (other than the Financing Documents,
any Subordinated Debt Documents, and any documents evidencing any equity financing of a parent
Borrower) prohibiting the creation or assumption of any Lien upon its properties or assets, whether
now owned or hereafter acquired, or (b) create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or restriction of any kind (except as provided by the
Financing Documents and any Subordinated Debt Documents, if any) on the ability of any Subsidiary
to: (i) pay or make Restricted Distributions to any Borrower or any Subsidiary; (ii) pay any Debt
owed to any Borrower or any Subsidiary; (iii) make loans or advances to any Borrower or any
Subsidiary; or (iv) transfer any of its property or assets to any Borrower or any Subsidiary.

     Section 5.5 Payments and Modifications of Subordinated Debt. No Borrower will, or will permit
any Subsidiary to, directly or indirectly, declare, pay, make or set aside any amount for payment
in respect of Subordinated Debt unless permitted pursuant to the applicable Subordination Agreement

     Section 5.6 Consolidations, Mergers and Sales of Assets; Change in Control. No Borrower will,
or will permit any Subsidiary to, directly or indirectly (a) consolidate or merge with or into any
other Person, or (b) consummate any asset dispositions other than (i) dispositions of personal
property assets (other than Accounts and FF&E) for cash and fair value that the applicable Borrower
determines in good faith is no longer used or useful in the business of such Borrower and its
Subsidiaries, (ii) dispositions of Excluded Property, provided that the net cash proceeds thereof
are applied to prepay the Obligations as required under Section 2.1(a)(iii), and (iii) the granting
of Licenses (other than Licenses which are the substantial equivalent of a sale of all or
substantially all of the Borrowers’ intellectual property). No Borrower will suffer or permit to
occur any Change in Control with respect to itself, any Subsidiary or any Guarantor, other than
Permitted Transfers. A Borrower may merge into another Borrower provided that Borrower provides
Agent with not less than thirty (30) days prior written notice.

     Section 5.7 Purchase of Assets, Investments. No Borrower will, or will permit any Subsidiary
to, directly or indirectly (a) acquire or enter into any agreement to acquire any assets other than
in the Ordinary Course of Business; (b) create, acquire or enter into any agreement to create or
acquire any Subsidiary; (c) engage or enter into any agreement to engage in any joint venture or
partnership with any other Person; or (d) acquire or own or enter into any agreement to acquire or
own any Investment in any Person other than Permitted Investments.

     Section 5.8 Transactions with Affiliates. Except as otherwise disclosed on
Schedule 5.8, and except for transactions that are disclosed to Agent in advance of being
entered into and which contain terms that are no less favorable to the applicable Borrower or any
Subsidiary, as the case may be, than those which might be obtained from a third party not an
Affiliate of any Credit Party, no Borrower will, or will permit any Subsidiary to, directly or
indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of any Borrower.

     Section 5.9 Modification of Organizational Documents. No Borrower will, or will permit any
Subsidiary to, directly or indirectly, amend or otherwise modify any Organizational Documents of
such Person, except for such amendments or other modifications (a) that do not adversely affect
Agent or Lenders and that could not reasonably be expected to have a Material Adverse Effect or (b)
that are required (i) under this Agreement or (ii) by applicable Law, and in each case fully
disclosed to Agent.

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     Section 5.10 Modification of Certain Agreements. No Borrower will, or will permit any
Subsidiary to, directly or indirectly, amend or otherwise modify any Operative Document, which
amendment or modification in any case: (a) is contrary to the terms of this Agreement or any other
Financing Document; (b) could reasonably be expected to be adverse to the rights, interests or
privileges of the Agent or the Lenders or their ability to enforce the same; (c) results in the
imposition or expansion in any material respect of any restriction or burden on any Borrower or any
Subsidiary; or (d) reduces in any material respect any rights or benefits of any Borrower or any
Subsidiaries (it being understood and agreed that any such determination shall be in the discretion
of the Agent). Each Borrower shall, prior to entering into any amendment or other modification of
any of the foregoing documents, deliver to Agent reasonably in advance of the execution thereof,
any final or execution form copy of amendments or other modifications to such documents, and, if
approval of Required Lenders is required by the terms of this Section 5.10 prior to the taking of
any such action, such Borrower agrees not to take, nor permit any of its Subsidiaries to take, any
such action with respect to any such documents without obtaining such approval from Required
Lenders.

     Section 5.11 Conduct of Business. No Borrower will, or will permit any Subsidiary to,
directly or indirectly, engage in any line of business other than those businesses engaged in on
the Closing Date and described on Schedule 5.11 and businesses reasonably related thereto.

     Section 5.12 Lease Payments. No Borrower will, or will permit any Subsidiary to, directly or
indirectly, incur or assume (whether pursuant to a Guarantee or otherwise) any liability for rental
payments except in the Ordinary Course of Business.

     Section 5.13 Limitation on Sale and Leaseback Transactions. No Borrower will, or will permit
any Subsidiary to, directly or indirectly, enter into any arrangement with any Person whereby, in a
substantially contemporaneous transaction, any Borrower or any Subsidiaries sells or transfers all
or substantially all of its right, title and interest in an asset and, in connection therewith,
acquires or leases back the right to use such asset.

     Section 5.14 Bank Accounts. No Borrower will, or will permit any Subsidiary to, directly or
indirectly, establish any new bank account without prior written notice to Agent and unless Agent,
such Borrower or such Subsidiary and the bank at which the account is to be opened enter into a
control agreement regarding such bank account pursuant to which such bank acknowledges the security
interest of Agent in such bank account, agrees to comply with instructions originated by Agent
directing disposition of the funds in the bank account without further consent from any Borrower,
and agrees to subordinate and limit any security interest the bank may have in the bank account on
terms satisfactory to Agent. Notwithstanding the above, no control agreement shall be required
with respect to Borrowers’ payroll account; provided, however, that Borrowers hereby agree not to
maintain more than one month’s payroll in Borrowers’ payroll account unless the applicable Borrower
and the bank at which the account is maintained have entered into a control agreement regarding
such bank account on terms satisfactory to Agent.

     Section 5.15 Compliance with Anti-Terrorism Laws. Agent hereby notifies Borrowers that
pursuant to the requirements of Anti-Terrorism Laws, and Agent’s policies and practices, Agent is
required to obtain, verify and record certain information and documentation that identifies
Borrowers and its principals, which information includes the name and address of each Borrower and
its principals and such other information that will allow Agent to identify such party in
accordance with Anti-Terrorism Laws. No Borrower will, or will permit any Subsidiary to, directly
or indirectly, knowingly enter into any Operative Documents or Material Contracts with any Person
listed on the OFAC Lists. Each Borrower shall immediately notify Agent if such Borrower has
knowledge that any Borrower or any additional Credit Party is listed on the OFAC Lists or (a) is
convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is arraigned and held over
on charges involving money laundering or predicate crimes to money laundering. No Borrower will,
or will permit any Subsidiary to, directly or indirectly, (i) conduct any business or engage in any
transaction or dealing with any Blocked Person, including, without limitation, the making or
receiving of any contribution of funds, goods or services to or for the benefit of any Blocked
Person, (ii) deal in, or otherwise engage in any transaction relating to, any property or interests
in property blocked pursuant to Executive Order No. 13224, any similar executive order or other
Anti-Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in Executive Order No. 13224 or other Anti-Terrorism Law.

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ARTICLE 6 — FINANCIAL COVENANTS

     Borrowers agree that, so long as any Credit Exposure exists, but in no event until the release
of the Cash Collateral Reserve as described in Section 2.10(b) hereof:

     Section 6.1 Fixed Charge Coverage Ratio. Borrowers will not permit the Fixed Charge Coverage
Ratio on the last day of each calendar month to be less than 1.00 to 1.00.

     Section 6.2 Reserved.

     Section 6.3 Evidence of Compliance. Borrowers shall furnish to Agent, together with the
financial reporting required of Borrower in Section 4.1 hereof, evidence (in form and content
satisfactory to Lender) of Borrowers’ compliance with the covenants in this Article and evidence
that no Event of Default specified in this Article has occurred. Such evidence shall include,
without limitation, (a) a statement and report, on a form approved by Agent, detailing Borrowers’
calculations, and (b) if requested by Agent, back-up documentation (including, without limitation,
invoices, receipts and other evidence of costs incurred during such quarter as Agent shall
reasonably require) evidencing the propriety of the calculations.

ARTICLE 7 — CONDITIONS

     Section 7.1 Conditions to Closing. The obligation of each Lender to make the initial Loans,
of Agent to issue any Support Agreements on the Closing Date and of any LC Issuer to issue any
Lender Letter of Credit on the Closing Date shall be subject to the receipt by Agent of each
agreement, document and instrument set forth on the closing checklist prepared by Agent or its
counsel, each in form and substance satisfactory to Agent, and to the satisfaction of the following
conditions precedent, each to the satisfaction of Agent and Lenders in their sole discretion:

     (a) evidence of the consummation of the transactions (other than the funding of the Loans and
the closing of any acquisition for which the proceeds of the Loans are purchase money) contemplated
by the Operative Documents, including, without limitation, the funding of any and all investments
contemplated by the Subordinated Debt Documents;

     (b) the payment of all fees, expenses and other amounts due and payable under each Financing
Document;

     (c) the absence, since May 31, 2006, of any material adverse change in any aspect of the
business, operations, properties, prospects or financial condition of the Credit Parties, taken as
a whole, or any event or condition which could reasonably be expected to result in such a material
adverse change;

     (d) the receipt of the initial Borrowing Base Certificate, prepared as of the Closing Date;

     (e) the receipt by Agent and Lenders of the Required Warrants; and

     (g) receipt by Agent of such other documents, instruments and/or agreements as Agent may
reasonably request.

     Section 7.2 Conditions to Each Loan, Support Agreement and Lender Letter of Credit.

     The obligation of the Lenders to make a Loan (other than Revolving Loans made pursuant to
Section 2.4(c)) or an advance in respect of any Loan, of Agent to issue any Support Agreement or of
any LC Issuer to issue any Lender Letter of Credit (including, in each case, on the Closing Date)
is subject to the satisfaction of the following additional conditions:

     (a) in the case of a Revolving Loan Borrowing, receipt by Agent of a Notice of Borrowing (or

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telephonic notice if permitted by this Agreement) and updated Borrowing Base Certificate, in the
case of any Support Agreement or Lender Letter of Credit, receipt by Agent of a Notice of LC Credit
Event in accordance with Section 2.4(a), and in the case of a Term Loan advance, receipt by Agent
of a Notice of Borrowing;

     (b) the fact that, immediately after such borrowing and after application of the proceeds
thereof or after such issuance, the Revolving Loan Outstandings will not exceed the Revolving Loan
Limit;

     (c) the fact that, immediately before and after such borrowing or issuance, no Default or
Event of Default shall have occurred and be continuing;

     (d) the fact that the representations and warranties of each Credit Party contained in the
Financing Documents shall be true, correct and complete in all material respects on and as of the
date of such borrowing or issuance, except to the extent that any such representation or warranty
relates to a specific date in which case such representation or warranty shall be true and correct
as of such earlier date; and

     (e) the fact that no Material Adverse Effect has occurred since the date of this Agreement.

     Each giving of a Notice of LC Credit Event hereunder, each giving of a Notice of Borrowing
hereunder and each acceptance by any Borrower of the proceeds of any Loan made hereunder shall be
deemed to be (y) a representation and warranty by each Borrower on the date of such notice or
acceptance as to the facts specified in this Section, and (z) a restatement by each Borrower that
each and every one of the representations made by it in any of the Financing Documents is true and
correct in all material respects (except to the extent that such representations and warranties
expressly relate solely to an earlier date).

     Section 7.3 Searches. Before the Closing Date, and thereafter (as and when determined by
Agent in its discretion), Agent shall have the right to perform, all at Borrowers’ expense, the
searches described in clauses (a), (b), (c) and (d) below against Borrowers and any other Credit
Party, the results of which are to be consistent with Borrowers’ representations and warranties
under this Agreement and the satisfactory results of which shall be a condition precedent to all
advances of Loan proceeds, all issuances of Lender Letters of Credit and all undertakings in
respect of Support Agreements: (a) UCC searches with the Secretary of State and local filing
offices of each jurisdiction where the applicable Person maintains its executive offices, a place
of business, or assets and the jurisdiction in which the applicable Person is organized; (b)
Judgment, pending litigation, federal tax lien, personal property tax lien, and corporate and
partnership tax lien searches, in each jurisdiction searched under clause (a) above; (c) Real
property title and lien searches in each jurisdiction in which any real property Collateral is
located; and (d) Searches of applicable corporate, limited liability company, partnership and
related records to confirm the continued existence, organization and good standing of the
applicable Person and the exact legal name under which such Person is organized.

     Section 7.4 Post Closing Requirements. Borrowers shall complete each of the post closing
obligations and/or provide to Agent each of the documents, instruments, agreements and information
listed on Schedule 7.4 attached hereto on or before the date set forth for each such item
thereon, each of which shall be completed or provided in form and substance satisfactory to Agent.

ARTICLE 8 — SECURITY AGREEMENT

     Section 8.1 Generally. As security for the payment and performance of the Obligations, and
without limiting any other grant of a Lien and security interest in any Security Document,
Borrowers hereby assign and grant to Agent a continuing first priority Lien on and security
interest in, upon, and to the Collateral, as described on Schedule 8.1, subject to Permitted Liens.

     Section 8.2 Covenants Relating to Collateral.

     (a) Borrowers shall not take any of the following actions or make any of the following changes
unless Borrowers have given at least thirty (30) days prior written notice to Agent of Borrowers’
intention to take any such action (which such written notice shall include an updated version of
any Schedule impacted by such change) and

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have executed any and all documents, instruments and agreements and taken any other actions with
Agent may request after receiving such written notice in order to protect and preserve the Liens,
rights and remedies of Agent with respect to the Collateral: (i) change the legal name or
organizational identification number of any Borrower, (ii) change the jurisdiction of incorporation
or formation of any Borrower or allow any Borrower to designate any jurisdiction as an additional
jurisdiction of incorporation for such Borrower, or (iii) move any Collateral to or place any
Collateral on any location that is not then listed on the Schedules and/or establish any business
location at any location that is not then listed on the Schedules.

     (b) Borrowers shall not adjust, settle or compromise the amount or payment of any Account, or
release wholly or partly any Account Debtor, or allow any credit or discount thereon (other than
credits and discounts in the Ordinary Course of Business and in amounts which are not material with
respect to the Account) without the prior written consent of Agent. Without limiting the
generality of this Agreement or any other provisions of any of the Financing Documents relating to
the rights of Agent after the occurrence and during the continuance of an Event of Default, Agent
shall have the right at any time after the occurrence and during the continuance of an Event of
Default to: (i) exercise the rights of Borrowers with respect to the obligation of any Account
Debtor to make payment or otherwise render performance to Borrowers and with respect to any
property that secures the obligations of any Account Debtor or any other Person obligated on the
Collateral, and (ii) adjust, settle or compromise the amount or payment of such Accounts.

     (c) Without limiting the generality of Sections 8.2(b):

          (i) Borrowers shall deliver to Agent all tangible Chattel Paper and all Instruments owned by
any Borrower and constituting part of the Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance satisfactory to Agent. Borrowers
shall provide Agent with “control” (as defined in Article 9 of the UCC) of all electronic Chattel
Paper owned by any Borrower and constituting part of the Collateral by having Agent identified as
the assignee of the records pertaining to the single authoritative copy thereof and otherwise
complying with the applicable elements of control set forth in the UCC. Borrowers also shall
deliver to Agent all security agreements securing any such Chattel Paper and securing any such
Instruments. Borrowers will mark conspicuously all such Chattel Paper and all such Instruments
with a legend, in form and substance satisfactory to Agent, indicating that such Chattel Paper and
such Instruments are subject to the security interests and Liens in favor of Agent created pursuant
to this Agreement and the Security Documents.

          (ii) Borrowers shall deliver to Agent all letters of credit on which any Borrower is the
beneficiary and which give rise to letter of credit rights owned by such Borrower which constitute
part of the Collateral in each case duly endorsed and accompanied by duly executed instruments of
transfer or assignment, all in form and substance satisfactory to Agent. Borrowers shall take any
and all actions as may be necessary or desirable, or that Agent may request, from time to time, to
cause Agent to obtain exclusive “control” (as defined in Article 9 of the UCC) of any such letter
of credit rights in a manner acceptable to Agent.

          (iii) Borrowers shall promptly advise Agent upon any Borrower becoming aware that it has any
interests in any commercial tort claim that constitutes part of the Collateral, which such notice
shall include descriptions of the events and circumstances giving rise to such commercial tort
claim and the dates such events and circumstances occurred, the potential defendants with respect
such commercial tort claim and any court proceedings that have been instituted with respect to such
commercial tort claims, and Borrowers shall, with respect to any such commercial tort claim,
execute and deliver to Agent such documents as Agent shall request to perfect, preserve or protect
the Liens, rights and remedies of Agent with respect to any such commercial tort claim.

          (iv) No Accounts or Inventory or other Collateral shall at any time be in the possession or
control of any warehouse, consignee, bailee or any of Borrowers’ agents or processors without prior
written notice to Agent and the receipt by Agent, if Agent has so requested, of warehouse receipts,
consignment agreements or bailee lien waivers (as applicable) satisfactory to Agent prior to the
commencement of such possession or control. Borrower has notified Agent that Inventory is
currently located at the locations set forth on Schedule 8.2. Borrowers shall, upon the
request of Agent, notify any such warehouse, consignee, bailee, agent or processor of the security
interests and Liens in favor of Agent created pursuant to this Agreement and the Security
Documents, instruct such Person to hold all such Collateral for Agent’s account subject to Agent’s
instructions and shall obtain an acknowledgement from such Person that such Person holds the
Collateral for Lender’s benefit.

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          (v) Borrowers shall cause all equipment and other tangible Personal Property other than
Inventory to be maintained and preserved in the same condition, repair and in working order as when
new, ordinary wear and tear excepted, and shall promptly make or cause to be made all repairs,
replacements and other improvements in connection therewith that are necessary or desirable to such
end. Upon request of Agent, Borrowers shall promptly deliver to Agent any and all certificates of
title, applications for title or similar evidence of ownership of all such tangible Personal
Property and shall cause Agent to be named as lienholder on any such certificate of title or other
evidence of ownership. Borrowers shall not permit any such tangible Personal Property to become
fixtures to real estate.

          (vi) Each Borrower hereby authorizes Agent to file without the signature of such Borrower one
or more UCC financing statements relating to all or any part of the Collateral, which financing
statements may list Agent as the “secured party” and such Borrower as the “debtor” and which
describe and indicate the collateral covered thereby as all or any part of the Collateral under the
Financing Documents (including an indication of the collateral covered by any such financing
statement as “all assets” of such Borrower now owned or hereafter acquired), in such jurisdictions
as Agent from time to time determines are appropriate, and to file without the signature of such
Borrower any continuations of or amendments to any such financing statements, in any such case in
order for Agent to perfect, preserve or protect the Liens, rights and remedies of Agent with
respect to the Collateral.

          (vii) Borrowers shall promptly notify Agent in writing upon creation or acquisition by any
Borrower of any Collateral which constitutes a claim against any Governmental Authority, including,
without limitation, the federal government of the United States or any instrumentality or agency
thereof, the assignment of which claim is restricted by any applicable Law, including, without
limitation, the federal Assignment of Claims Act and any other comparable Law. Upon the request of
Agent, Borrowers shall take such steps as may be necessary or desirable, or that Agent may request,
to comply with any such applicable Law.

          (viii) Borrowers shall furnish to Agent from time to time any statements and schedules further
identifying or describing the Collateral and any other information, reports or evidence concerning
the Collateral as Lender may reasonably request from time to time.

     Section 8.3 UCC Remedies.

     (a) Upon the occurrence of and during the continuance of an Event of Default under this
Agreement or the other Financing Documents, Agent, in addition to all other rights, options, and
remedies granted to Agent under this Agreement or at law or in equity, may exercise, either
directly or through one or more assignees or designees, all rights and remedies granted to it under
all Financing Documents and under the UCC in effect in the applicable jurisdiction(s) and under any
other applicable law; including, without limitation:

          (i) The right to take possession of, send notices regarding, and collect directly the
Collateral, with or without judicial process;

          (ii) The right to (by its own means or with judicial assistance) enter any of Borrowers’
premises and take possession of the Collateral, or render it unusable, or to render it usable or
saleable, or dispose of the Collateral on such premises in compliance with subsection (iii) below
and to take possession of Borrowers’ original books and records, to obtain access to Borrowers’
data processing equipment, computer hardware and software relating to the Collateral and to use all
of the foregoing and the information contained therein in any manner Agent deems appropriate,
without any liability for rent, storage, utilities, or other sums, and Borrowers shall not resist
or interfere with such action (if Borrowers’ books and records are prepared or maintained by an
accounting service, contractor or other third party agent, Borrowers hereby irrevocably authorize
such service, contractor or other agent, upon notice by Agent to such Person that an Event of
Default has occurred and is continuing, to deliver to Agent or its designees such books and
records, and to follow Agent’s instructions with respect to further services to be rendered);

          (iii) The right to require Borrowers at Borrowers’ expense to assemble all or any part of the
Collateral and make it available to Agent at any place designated by Lender;

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          (iv) The right to notify postal authorities to change the address for delivery of Borrowers’
mail to an address designated by Agent and to receive, open and dispose of all mail addressed to
any Borrower.

          (v) The right to enforce Borrowers’ rights against Account Debtors and other obligors,
including, without limitation, the right to collect Accounts directly in Agent’s own name (as agent
for Lenders) and to charge the collection costs and expenses, including attorneys’ fees, to
Borrowers.

     (b) Each Borrower agrees that a notice received by it at least ten (10) days before the time
of any intended public sale, or the time after which any private sale or other disposition of the
Collateral is to be made, shall be deemed to be reasonable notice of such sale or other
disposition. If permitted by applicable law, any perishable Collateral which threatens to speedily
decline in value or which is sold on a recognized market may be sold immediately by Agent without
prior notice to Borrowers. At any sale or disposition of Collateral, Agent may (to the extent
permitted by applicable law) purchase all or any part of the Collateral, free from any right of
redemption by Borrowers, which right is hereby waived and released. Each Borrower covenants and
agrees not to interfere with or impose any obstacle to Agent’s exercise of its rights and remedies
with respect to the Collateral. Agent shall have no obligation to clean up or otherwise prepare
the Collateral for sale. Agent may comply with any applicable state or federal law requirements in
connection with a disposition of the Collateral and compliance will not be considered to adversely
affect the commercial reasonableness of any sale of the Collateral. Agent may sell the Collateral
without giving any warranties as to the Collateral. Agent may specifically disclaim any warranties
of title or the like. This procedure will not be considered to adversely affect the commercial
reasonableness of any sale of the Collateral. If Agent sells any of the Collateral upon credit,
Borrowers will be credited only with payments actually made by the purchaser, received by Agent and
applied to the indebtedness of the purchaser. In the event the purchaser fails to pay for the
Collateral, Agent may resell the Collateral and Borrowers shall be credited with the proceeds of
the sale. Borrowers shall remain liable for any deficiency if the proceeds of any sale or
disposition of the Collateral are insufficient to pay all Obligations.

     (c) Without restricting the generality of the foregoing and for the purposes aforesaid, each
Borrower hereby appoints and constitutes Agent its lawful attorney-in-fact with full power of
substitution in the Collateral to use unadvanced funds remaining under this Agreement or which may
be reserved, escrowed or set aside for any purposes hereunder at any time, or to advance funds in
excess of the face amount of the Notes, to pay, settle or compromise all existing bills and claims,
which may be liens or security interests, or to avoid such bills and claims becoming liens against
the Collateral; to execute all applications and certificates in the name of such Borrower and to
prosecute and defend all actions or proceedings in connection with the Collateral; and to do any
and every act which such Borrower might do in its own behalf; it being understood and agreed that
this power of attorney shall be a power coupled with an interest and cannot be revoked.

     (d) Agent and each Lender is hereby granted a non-exclusive, royalty-free license or other
right to use, without charge, Borrowers’ labels, patents, copyrights, mask works, rights of use of
any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any
similar property as it pertains to the Collateral, in completing production of, advertising for
sale, and selling any Collateral and, in connection with Agent’s exercise of its rights under this
Article, Borrowers’ rights under all licenses and all franchise agreements inure to Agent’s and
each Lender’s benefit; provided, however, that Agent will not exercise any rights granted pursuant
to this Section 8.3(d) until the occurrence of an Event of Default.

ARTICLE 9 — EVENTS OF DEFAULT

     Section 9.1 Events of Default.

     For purposes of the Financing Documents, the occurrence of any of the following conditions
and/or events, whether voluntary or involuntary, by operation of law or otherwise, shall constitute
an “Event of Default”:

     (a) any Borrower shall fail to pay when due any principal, interest, premium or fee under any
Financing Document or any other amount payable under any Financing Document, or there shall occur
any default in the performance of or compliance with any of the following sections of this
Agreement: Article 5; Article 6;
Section 4.4; Section 2.9; and Section 2.10;

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     (b) any Credit Party defaults in the performance of or compliance with any term contained in
this Agreement or in any other Financing Document (other than occurrences described in other
provisions of this Section 9.1 for which a different grace or cure period is specified or for which
no grace or cure period is specified and thereby constitute immediate Events of Default) and such
default is not remedied or waived within thirty (30) days;

     (c) any representation, warranty, certification or statement made by any Credit Party or any
other Person in any Financing Document or in any certificate, financial statement or other document
delivered pursuant to any Financing Document is incorrect in any respect (or in any material
respect if such representation, warranty, certification or statement is not by its terms already
qualified as to materiality) when made (or deemed made);

     (d) any Credit Party shall commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency
or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of it or any substantial part of its property, or
shall consent to any such relief or to the appointment of or taking possession by any such official
in an involuntary case or other proceeding commenced against it, or shall make a general assignment
for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall
take any corporate action to authorize any of the foregoing;

     (e) an involuntary case or other proceeding shall be commenced against any Credit Party
seeking liquidation, reorganization or other relief with respect to it or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment
of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial
part of its property, and such involuntary case or other proceeding shall remain undismissed and
unstayed for a period of sixty (60) days; or an order for relief shall be entered against any
Credit Party under the federal bankruptcy laws as now or hereafter in effect;

     (f) one or more judgments or orders for the payment of money (not paid or fully covered by
insurance maintained in accordance with the requirements of this Agreement and as to which the
relevant insurance company has acknowledged coverage) aggregating in excess of $100,000 shall be
rendered against any or all Credit Parties and either (i) enforcement proceedings shall have been
commenced by any creditor upon any such judgments or orders, or (ii) there shall be any period of
twenty (20) consecutive days during which a stay of enforcement of any such judgments or orders, by
reason of a pending appeal, bond or otherwise, shall not be in effect;

     (g) any Lien created by any of the Security Documents shall at any time fail to constitute a
valid and perfected Lien on all of the Collateral purported to be secured thereby, subject to no
prior or equal Lien except Permitted Liens, or any Credit Party shall so assert;

     (h) the institution by any Governmental Authority of criminal proceedings against any Credit
Party;

     (i) an event of default occurs under any Financing Document Guarantee;

     (j) any Borrower makes any payment on account of any Debt that has been subordinated to any of
the Obligations, other than payments specifically permitted by the terms of such subordination;

     (k) the occurrence of any fact, event or circumstance that could reasonably be expected to
result in a Material Adverse Effect, if such default shall have continued unremedied for a period
of ten (10) days after receipt by Borrowers of written notice from Agent;

     (l) based on information available to the Borrowers it is reasonably likely that Borrowers
will fail to comply with one or more financial covenants in Article 6 during the next succeeding
financial reporting period; or

     (m) a default occurs in any agreement to which Borrower or any Guarantor is a party with a
third party or parties resulting in a right by such third party or parties, whether or not
exercised, to accelerate the maturity of

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any indebtedness in an amount in excess of Fifty Thousand Dollars ($50,000) or that could have
a material adverse effect on Borrower’s or any Guarantor’s business.

     All cure periods provided for in this Section shall run concurrently with any cure period
provided for in any applicable Financing Documents under which the default occurred.

     Section 9.2 Acceleration and Suspension or Termination of Revolving Loan Commitment and Term
Loan Commitment. Upon the occurrence and during the continuance of an Event of Default, Agent may,
and shall if requested by Required Lenders, (a) by notice to Borrowers suspend or terminate the
Revolving Loan Commitment and Term Loan Commitment and the obligations of Agent and the Lenders
with respect thereto, in whole or in part (and, if in part, such reduction shall be pro rata among
the Lenders having a Revolving Loan Commitment Percentage or Term Loan Commitment Percentage),
and/or (b) by notice to Borrowers declare the Obligations to be, and the Obligations shall
thereupon become, immediately due and payable without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by each Borrower and Borrowers will pay the same;
provided, however, that in the case of any of the Events of Default specified in Section 9.1(f) or
9.1(g) above, without any notice to any Borrower or any other act by Agent or the Lenders, the
Revolving Loan Commitment and Term Loan Commitment and the obligations of Agent and the Lenders
with respect thereto shall thereupon terminate and all of the Obligations shall become immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by each Borrower and Borrowers will pay the same.

     Section 9.3 Cash Collateral. If (a) any Event of Default specified in Section 9.1(f) or
9.1(g) shall occur, (b) the Obligations shall have otherwise been accelerated pursuant to
Section 9.2, or (c) the Revolving Loan Commitment and the obligations of Agent and the Lenders with
respect thereto shall have been terminated pursuant to Section 9.2, then without any request or the
taking of any other action by Agent or the Lenders, Borrowers shall immediately comply with the
provisions of Section 2.4(e) with respect to the deposit of cash collateral to secure the existing
Letter of Credit Liability and future payment of related fees.

     Section 9.4 Default Rate of Interest. At the election of Agent or Required Lenders, after the
occurrence of an Event of Default and for so long as it continues, (a) the Loans and other
Obligations shall bear interest at rates that are two percent (2.0%) per annum in excess of the
rates otherwise payable under this Agreement, and (b) the fee described in Section 2.4(b) shall
increase by a rate that is two percent (2.0%) in excess of the rate otherwise payable under such
Section.

     Section 9.5 Setoff Rights. During the continuance of any Event of Default, each Lender is
hereby authorized by each Borrower at any time or from time to time, with reasonably prompt
subsequent notice to such Borrower (any prior or contemporaneous notice being hereby expressly
waived) to set off and to appropriate and to apply any and all (a) balances held by such Lender or
any of such Lender’s Affiliates at any of its offices for the account of such Borrower or any of
its Subsidiaries (regardless of whether such balances are then due to such Borrower or its
Subsidiaries), and (b) other property at any time held or owing by such Lender to or for the credit
or for the account of such Borrower or any of its Subsidiaries, against and on account of any of
the Obligations; except that no Lender shall exercise any such right without the prior written
consent of Agent. Any Lender exercising a right to set off shall purchase for cash (and the other
Lenders shall sell) interests in each of such other Lender’s Pro Rata Share of the Obligations as
would be necessary to cause all Lenders to share the amount so set off with each other Lender in
accordance with their respective Pro Rata Share of the Obligations. Each Borrower agrees, to the
fullest extent permitted by law, that any Lender and any of such Lender’s Affiliates may exercise
its right to set off with respect to the Obligations as provided in this Section 9.5.

     Section 9.6 Application of Proceeds.

     (a) Notwithstanding anything to the contrary contained in this Agreement, upon the occurrence
and during the continuance of an Event of Default, (a) each Borrower irrevocably waives the right
to direct the application of any and all payments at any time or times thereafter received by Agent
from or on behalf of such Borrower or any Guarantor of all or any part of the Obligations, and, as
between Borrowers on the one hand and Agent and Lenders on the other, Agent shall have the
continuing and exclusive right to apply and to reapply any and all payments received against the
Obligations in such manner as Agent may deem advisable notwithstanding any

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previous application by Agent, and (b) the proceeds of any sale of, or other realization upon,
all or any part of the Collateral shall be applied: first, to all fees, costs,
indemnities, liabilities, obligations and expenses incurred by or owing to Agent with respect to
this Agreement, the other Financing Documents or the Collateral; second, to all fees,
costs, indemnities, liabilities, obligations and expenses incurred by or owing to any Lender with
respect to this Agreement, the other Financing Documents or the Collateral; third, to
accrued and unpaid interest on the Obligations (including any interest which, but for the
provisions of the Bankruptcy Code, would have accrued on such amounts); fourth, to the
principal amount of the Obligations outstanding; and fifth to any other indebtedness or
obligations of Borrowers owing to Agent or any Lender under the Financing Documents. Any balance
remaining shall be delivered to Borrowers or to whoever may be lawfully entitled to receive such
balance (including any holder of the indebtedness evidenced by the Affiliated Financing Documents)
or as a court of competent jurisdiction may direct. In carrying out the foregoing, (x) amounts
received shall be applied in the numerical order provided until exhausted prior to the application
to the next succeeding category, and (y) each of the Persons entitled to receive a payment in any
particular category shall receive an amount equal to its pro rata share of amounts available to be
applied pursuant thereto for such category.

     (b) Notwithstanding anything to the contrary contained in this Agreement, in the event of any
distribution, division or application, in whole or in part, voluntary or involuntary, by operation
of law or otherwise, of the assets of any Credit Party or the proceeds thereof, to or for the
benefit of any of the creditors of any Credit Party arising by reason of a dissolution, winding-up
or liquidation of one or more of the Credit Parties, partial or complete, whether or not involving
bankruptcy, receivership, insolvency or other statutory or common law proceedings, assignments for
the benefit of creditors involving a Credit Party or any marshalling of the assets or liabilities
of a Credit Party, all cash proceeds thereof (such cash proceeds being hereinafter referred to as
“Distress Event Cash Proceeds”) shall be applied upon receipt as follows: (i) first, before any
resort to or application of IP Proceeds (if any), the portion of such Distress Event Cash Proceeds
which is Primary Collateral Proceeds if any shall be applied to repay the Obligations (in the order
provided above in Section 9.6(a)) until the Primary Collateral has been fully liquidated or, if
earlier, the Obligations have been paid in full, (ii) second, the portion of such Distress Event
Cash Proceeds which is IP Proceeds (if any) shall be applied to repay the Obligations until the
Obligations shall have been paid in full, and (iii) third, any remaining proceeds shall be paid
over to Borrowers. For the avoidance of doubt, the allocation of Distress Event Cash Proceeds set
forth in the Section 9.6(b) shall be made each time Distress Event Cash Proceeds arise.

     Section 9.7 Waivers.

     (a) Except as otherwise provided for in this Agreement and to the fullest extent permitted by
applicable law, each Borrower waives: (i) presentment, demand and protest, and notice of
presentment, dishonor, intent to accelerate, acceleration, protest, default, nonpayment, maturity,
release, compromise, settlement, extension or renewal of any or all Financing Documents, the Notes
or any other notes, commercial paper, accounts, contracts, documents, Instruments, Chattel Paper
and Guarantees at any time held by Lenders on which any Borrower may in any way be liable, and
hereby ratifies and confirms whatever Lenders may do in this regard; (ii) all rights to notice and
a hearing prior to Agent’s or any Lender’s taking possession or control of, or to Agent’s or any
Lender’s replevy, attachment or levy upon, any Collateral or any bond or security which might be
required by any court prior to allowing Agent or any Lender to exercise any of its remedies; and
(iii) the benefit of all valuation, appraisal and exemption Laws. Each Borrower acknowledges that
it has been advised by counsel of its choices and decisions with respect to this Agreement, the
other Financing Documents and the transactions evidenced hereby and thereby.

     (b) Each Borrower for itself and its successors and assigns, (i) agrees that its liability
shall not be in any manner affected by any indulgence, extension of time, renewal, waiver, or
modification granted or consented to by Lender; (ii) consents to any indulgences and all extensions
of time, renewals, waivers, or modifications that may be granted by Agent or any Lender with
respect to the payment or other provisions of the Financing Documents, and to any substitution,
exchange or release of the Collateral, or any part thereof, with or without substitution, and
agrees to the addition or release of any Borrower, endorsers, guarantors, or sureties, or whether
primarily or secondarily liable, without notice to any other Borrower and without affecting its
liability hereunder; (iii) agrees that its liability shall be unconditional and without regard to
the liability of any other Borrower, Agent or any Lender for any tax on the indebtedness; and
(iv) to the fullest extent permitted by law, expressly waives the benefit of any statute or rule of
law or equity now provided, or which may hereafter be provided, which would produce a result
contrary to or in conflict with the foregoing.

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     (c) To the extent that Agent or any Lender may have acquiesced in any noncompliance with any
requirements or conditions precedent to the closing of the Loans or to any subsequent disbursement
of Loan proceeds, such acquiescence shall not be deemed to constitute a waiver by Agent or any
Lender of such requirements with respect to any future disbursements of Loan proceeds and Agent may
at any time after such acquiescence require Borrowers to comply with all such requirements. Any
forbearance by Agent or Lender in exercising any right or remedy under any of the Financing
Documents, or otherwise afforded by applicable law, including any failure to accelerate the
maturity date of the Loans, shall not be a waiver of or preclude the exercise of any right or
remedy nor shall it serve as a novation of the Notes or as a reinstatement of the Loans or a waiver
of such right of acceleration or the right to insist upon strict compliance of the terms of the
Financing Documents. Agent’s or any Lender’s acceptance of payment of any sum secured by any of
the Financing Documents after the due date of such payment shall not be a waiver of Agent’s and
such Lender’s right to either require prompt payment when due of all other sums so secured or to
declare a default for failure to make prompt payment. The procurement of insurance or the payment
of taxes or other liens or charges by Agent as the result of an Event of Default shall not be a
waiver of Agent’s right to accelerate the maturity of the Loans, nor shall Agent’s receipt of any
condemnation awards, insurance proceeds, or damages under this Agreement operate to cure or waive
any Credit Party’s default in payment of sums secured by any of the Financing Documents.

     (d) Without limiting the generality of anything contained in this Agreement or the other
Financing Documents, each Borrower agrees that if an Event of Default is continuing (i) Agent and
Lenders are not subject to any “one action” or “election of remedies” law or rule, and (ii) all
Liens and other rights, remedies or privileges provided to Agent or Lenders shall remain in full
force and effect until Agent or Lenders have exhausted all remedies against the Collateral and any
other properties owned by Borrowers and the Financing Documents and other security instruments or
agreements securing the Loans have been foreclosed, sold and/or otherwise realized upon in
satisfaction of Borrowers’ obligations under the Financing Documents.

     (e) Nothing contained herein or in any other Financing Document shall be construed as
requiring Agent or any Lender to resort to any part of the Collateral for the satisfaction of any
of Borrowers’ obligations under the Financing Documents in preference or priority to any other
Collateral, and Agent may seek satisfaction out of all of the Collateral or any part thereof, in
its absolute discretion in respect of Borrowers’ obligations under the Financing Documents. In
addition, Agent shall have the right from time to time to partially foreclose upon any Collateral
in any manner and for any amounts secured by the Financing Documents then due and payable as
determined by Agent in its sole discretion, including, without limitation, the following
circumstances: (i) in the event any Borrower defaults beyond any applicable grace period in the
payment of one or more scheduled payments of principal and/or interest, Agent may foreclose upon
all or any part of the Collateral to recover such delinquent payments, or (ii) in the event Agent
elects to accelerate less than the entire outstanding principal balance of the Loans, Agent may
foreclose all or any part of the Collateral to recover so much of the principal balance of the
Loans as Lender may accelerate and such other sums secured by one or more of the Financing
Documents as Agent may elect. Notwithstanding one or more partial foreclosures, any unforeclosed
Collateral shall remain subject to the Financing Documents to secure payment of sums secured by the
Financing Documents and not previously recovered.

     (f) To the fullest extent permitted by law, each Borrower, for itself and its successors and
assigns, waives in the event of foreclosure of any or all of the Collateral any equitable right
otherwise available to any Credit Party which would require the separate sale of the any of the
Collateral or require Agent or Lenders to exhaust their remedies against any part of the Collateral
before proceeding against any other part of the Collateral; and further in the event of such
foreclosure each Borrower does hereby expressly consent to and authorize, at the option of Lender,
the foreclosure and sale either separately or together of each part of the Collateral.

     Section 9.8 Injunctive Relief. The parties acknowledge and agree that, in the event of a
breach or threatened breach of any Credit Party’s obligations under any Financing Documents, Agent
and Lenders may have no adequate remedy in money damages and, accordingly, shall be entitled to an
injunction (including without limitation, a temporary restraining order, preliminary injunction,
writ of attachment, or order compelling an audit) against such breach or threatened breach,
including, without limitation, maintaining the cash management and collection procedure described
herein. However, no specification in this Agreement of a specific legal or equitable remedy shall
be construed as a waiver or prohibition against any other legal or equitable remedies in the event
of a breach or threatened breach of any provision of this Agreement. Each Credit Party waives, to
the fullest extent

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permitted by law, the requirement of the posting of any bond in connection with such injunctive
relief. By joining in the Financing Documents as a Credit Party, each Credit Party specifically
joins in this Section as if this Section were a part of each Financing Documents executed by the
Credit Party.

     Section 9.9 Marshalling. Agent and Lenders shall have no obligation to marshal any assets in
favor of any Credit Party, or against or in payment of any of the other Obligations or any other
obligation owed to Agent or Lenders by any Credit Party.

ARTICLE 10 — AGENT

     Section 10.1 Appointment and Authorization. Each Lender hereby irrevocably appoints and
authorizes Agent to enter into each of the Financing Documents to which it is a party (other than
this Agreement) on its behalf and to take such actions as Agent on its behalf and to exercise such
powers under the Financing Documents as are delegated to Agent by the terms thereof, together with
all such powers as are reasonably incidental thereto. Subject to the terms of the other Financing
Documents, Agent is authorized and empowered to amend, modify, or waive any provisions of this
Agreement or the other Financing Documents on behalf of Lenders. The provisions of this Article 10
are solely for the benefit of Agent and Lenders and neither any Borrower nor any other Credit Party
shall have any rights as a third party beneficiary of any of the provisions hereof. In performing
its functions and duties under this Agreement, Agent shall act solely as agent of Lenders and does
not assume and shall not be deemed to have assumed any obligation toward or relationship of agency
or trust with or for any Borrower or any other Credit Party. Agent may perform any of its duties
hereunder, or under the Financing Documents, by or through its agents or employees.

     Section 10.2 Right to Perform, Preserve and Protect. If any Credit Party fails to perform any
obligation hereunder or under any other Financing Document, Agent itself may, but shall not be
obligated to, cause such obligation to be performed at Borrowers’ expense. Agent is further
authorized by Borrowers and the Lenders to make expenditures from time to time which Agent, in its
reasonable business judgment, deems necessary or desirable to (a) preserve or protect the business
conducted by Borrowers, the Collateral, or any portion thereof and/or (b) enhance the likelihood
of, or maximize the amount of, repayment of the Loans and other Obligations. Each Borrower hereby
agrees to reimburse Agent on demand for any and all costs, liabilities and obligations incurred by
Agent pursuant to this Section 10.2, together with interest thereon at the applicable default rate
hereunder.

ARTICLE 11 — MISCELLANEOUS

     Section 11.1 Survival. All agreements, representations and warranties made herein and in
every other Financing Document shall survive the execution and delivery of this Agreement and the
other Financing Documents and the other Operative Documents. The provisions of Sections 2.7 and
Articles 10 and 11 shall survive the payment of the Obligations (both with respect to any Lender
and all Lenders collectively) and any termination of this Agreement.

     Section 11.2 No Waivers. No failure or delay by Agent or any Lender in exercising any right,
power or privilege under any Financing Document shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein and therein provided shall
be cumulative and not exclusive of any rights or remedies provided by law. Any reference in any
Financing Document to the “continuing” nature of any Event of Default shall not be construed as
establishing or otherwise indicating that any Borrower or any other Credit Party has the
independent right to cure any such Event of Default, but is rather presented merely for convenience
should such Event of Default be waived in accordance with the terms of the applicable Financing
Documents.

     Section 11.3 Notices.

     (a) All notices, requests and other communications to any party hereunder shall be in writing
(including prepaid overnight courier, facsimile transmission or similar writing) and shall be given
to such party at its address, facsimile number or e-mail address set forth on the signature pages
hereof (or, in the case of any such

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Lender who becomes a Lender after the date hereof, in an assignment agreement or in a notice
delivered to Borrowers and Agent by the assignee Lender forthwith upon such assignment) or at such
other address, facsimile number or e-mail address as such party may hereafter specify for the
purpose by notice to Agent and Borrowers; provided, however, that notices, requests or other
communications shall be permitted by electronic means only in accordance with the provisions of
Section 11.3(b) and (c). Each such notice, request or other communication shall be effective
(i) if given by facsimile, when such notice is transmitted to the facsimile number specified by
this Section and the sender receives a confirmation of transmission from the sending facsimile
machine, or (ii) if given by mail, prepaid overnight courier or any other means, when received or
when receipt is refused at the applicable address specified by this Section 11.3(a).

     (b) Notices and other communications to the parties hereto may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved from time to time by Agent, provided, however, that the foregoing shall not
apply to notices sent directly to any Lender if such Lender has notified the Agent that it is
incapable of receiving notices by electronic communication. The Agent or Borrowers may, in their
discretion, agree to accept notices and other communications to them hereunder by electronic
communications pursuant to procedures approved by it, provided, however, that approval of such
procedures may be limited to particular notices or communications.

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

     Section 11.4 Severability. In case any provision of or obligation under this Agreement or any
other Financing Document shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be affected or impaired
thereby.

     Section 11.5 Amendments and Waivers. No provision of this Agreement or any other Financing
Document may be amended, waived or otherwise modified unless such amendment, waiver or other
modification is in writing and is signed or otherwise approved by Borrowers, the Agent and the
Lenders.

     Section 11.6 Assignments; Participations.

     (a) Assignments by Lenders.

          (i) Each Lender may at any time assign to one or more Eligible Assignees or grant
participations in all or any portion of such Lender’s Loans and/or interest in the Revolving Loan
Commitment and/or Term Loan Commitment, together with all related obligations of such Lender
hereunder. Each Lender may at any time pledge or assign a security interest in all or any portion
of its rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided, however, that no such pledge
or assignment shall release such Lender from any of its obligations hereunder or substitute any
such pledgee or assignee for such Lender as a party hereto. If any assignee of all or any portion
of such Lender’s Loans or interest in the Revolving Loan Commitment or Term Loan Commitment is
organized under the laws of a jurisdiction other than the United States or any state thereof, it
shall, prior to the first date on which interest or fees are payable hereunder for its account,
deliver to Borrower certification as to exemption from deduction or withholding of any United
States federal income taxes.

          (ii) Agent, acting solely for this purpose as an agent of Borrowers, shall maintain at its
offices located in Chicago, Illinois a copy of each assignment agreement delivered to it and a
register for the recordation of the names and addresses of each Lender, and the commitments of, and
principal amount of the Loans owing to, such Lender pursuant to the terms hereof. The entries in
such register shall be conclusive, and Borrowers,

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Agent and Lenders may treat each Person whose name is recorded therein pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.
Such register shall be available for inspection by any Borrower and any Lender, at any reasonable
time upon reasonable prior notice to Agent.

     (b) Credit Party Assignments. No Credit Party may assign, delegate or otherwise transfer any
of its rights or other obligations hereunder or under any other Financing Document without the
prior written consent of Agent and each Lender.

     Section 11.7 Headings. Headings and captions used in the Financing Documents (including the
Exhibits, Schedules and Annexes hereto and thereto) are included for convenience of reference only
and shall not be given any substantive effect.

     Section 11.8 Confidentiality. Agent and each Lender shall hold all non-public information
regarding the Credit Parties and their respective businesses identified as such by Borrowers and
obtained by Agent or any Lender pursuant to the requirements hereof in accordance with such
Person’s customary procedures for handling information of such nature, except that disclosure of
such information may be made (a) to their respective agents, employees, Subsidiaries, Affiliates,
attorneys, auditors, professional consultants, rating agencies, insurance industry associations and
portfolio management services, (b) to prospective transferees or purchasers of any interest in the
Loans, and to prospective contractual counterparties (or the professional advisors thereto) in swap
contracts or other derivative obligations permitted hereby, provided, however, that any such
Persons shall have agreed to be bound by the provisions of this Section 11.8, (c) as required by
Law, subpoena, judicial order or similar order and in connection with any litigation, (d) as may be
required in connection with the examination, audit or similar investigation of such Person, and
(e) to a Person that is a trustee, investment advisor, collateral manager, servicer, noteholder or
secured party in a Securitization (as hereinafter defined) in connection with the administration,
servicing and reporting on the assets serving as collateral for such Securitization. For the
purposes of this Section, “Securitization” shall mean a public or private offering by a Lender or
any of its Affiliates or their respective successors and assigns, of securities which represent an
interest in, or which are collateralized, in whole or in party, by the Loans. Confidential
information shall include only such information identified as such at the time provided to Agent
and shall not include information that either: (i) is in the public domain, or becomes part of the
public domain after disclosure to such Person through no fault of such Person, or (ii) is disclosed
to such Person by a Person other than a Credit Party, provided, however, Agent does not have actual
knowledge that such Person is prohibited from disclosing such information. The obligations of
Agent and Lenders under this Section 11.8 shall supersede and replace the obligations of Agent and
Lenders under any confidentiality agreement in respect of this financing executed and delivered by
Agent or any Lender prior to the date hereof.

     Section 11.9 Waiver of Consequential and Other Damages. To the fullest extent permitted by
applicable law, no Borrower shall assert, and each Borrower hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of this
Agreement, any other Financing Document or any agreement or instrument contemplated hereby or
thereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use
of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Financing Documents or the transactions contemplated hereby or thereby.

     Section 11.10 GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS AGREEMENT, EACH NOTE AND EACH
OTHER FINANCING DOCUMENT, AND ALL MATTERS RELATING HERETO OR THERETO OR ARISING THEREFROM (WHETHER
SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES. EACH BORROWER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT
LOCATED WITHIN CHICAGO, STATE OF ILLINOIS AND IRREVOCABLY AGREES THAT, SUBJECT TO AGENT’S ELECTION,
ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER FINANCING
DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS. EACH BORROWER EXPRESSLY SUBMITS AND CONSENTS TO THE

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JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH
BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF
PROCESS MAY BE MADE UPON SUCH BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED,
ADDRESSED TO SUCH BORROWER AT THE ADDRESS SET FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE
COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

     Section 11.11 WAIVER OF JURY TRIAL. EACH BORROWER, AGENT AND THE LENDERS HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THE FINANCING DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY AND AGREES THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH BORROWER,
AGENT AND EACH LENDER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A
BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THE
OTHER FINANCING DOCUMENTS, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED
FUTURE DEALINGS. EACH BORROWER, AGENT AND EACH LENDER WARRANTS AND REPRESENTS THAT IT HAS HAD THE
OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS.

     Section 11.12 Publication; Advertisement.

     (a) Publication. No Credit Party will directly or indirectly publish, disclose or otherwise
use in any public disclosure, advertising material, promotional material, press release or
interview, any reference to the name, logo or any trademark of Merrill Lynch or any of its
Affiliates or any reference to this Agreement or the financing evidenced hereby, in any case except
(i) as required by Law, subpoena or judicial or similar order, in which case the applicable Credit
Party shall give Agent prior written notice of such publication or other disclosure, or (ii) with
Merrill Lynch’s prior written consent, which consent will not be withheld with respect to the
sharing of copies of the loan documents to prospective providers of Permitted Debt.

     (b) Advertisement. Each Lender and each Credit Party hereby authorizes Merrill Lynch to
publish the name of such Lender and Credit Party, the existence of the financing arrangements
referenced under this Agreement, the primary purpose and/or structure of those arrangements, the
amount of credit extended under each facility, the title and role of each party to this Agreement,
and the total amount of the financing evidenced hereby in any “tombstone”, comparable advertisement
or press release which Merrill Lynch elects to submit for publication. In addition, each Lender
and each Credit Party agrees that Merrill Lynch may provide lending industry trade organizations
with information necessary and customary for inclusion in league table measurements after the
Closing Date. With respect to any of the foregoing, Merrill Lynch shall provide Borrowers with an
opportunity to review and confer with Merrill Lynch regarding the contents of any such tombstone,
advertisement or information, as applicable, prior to its submission for publication and, following
such review period, Merrill Lynch may, from time to time, publish such information in any media
form desired by Merrill Lynch, until such time that Borrowers shall have requested Merrill Lynch
cease any such further publication.

     Section 11.13 Counterparts; Integration. This Agreement and the other Financing Documents may
be signed in any number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. Signatures by facsimile
shall bind the parties hereto. This Agreement and the other Financing Documents constitute the
entire agreement and understanding among the parties hereto and supersede any and all prior
agreements and understandings, oral or written, relating to the subject matter hereof.

     Section 11.14 No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

     Section 11.15 Time. Time is of the essence in each Borrower’s and each other Credit Party’s
performance under this Agreement and all other Financing Documents.

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     Section 11.16 Lender Approvals. Unless expressly provided herein to the contrary, any
approval, consent, waiver or satisfaction of Agent or Lenders with respect to any matter that is
the subject of this Agreement, the other Financing Documents may be granted or withheld by Agent
and Lenders in their sole and absolute discretion and credit judgment.

     Section 11.17 Expenses; Taxes; Indemnity

     (a) Borrowers agree to pay all reasonable legal, audit and appraisal fees and all other
reasonable out-of-pocket charges and expenses incurred by Agent in connection with the negotiation,
preparation, legal review and execution of each of the Financing Documents, including but not
limited to UCC and judgment lien searches and UCC filings and fees for post-closing UCC and
judgment lien searches. In addition, Borrowers shall pay all such fees and expenses associated with
any amendments, modifications and terminations to the Financing Documents following closing. If
Agent uses in-house counsel for any of these purposes, Borrowers further agree that the Obligations
include reasonable charges for such work commensurate with the fees that would otherwise be charged
by outside legal counsel selected by Agent for the work performed.

     (b) Borrowers agree to pay all reasonable out-of-pocket charges and expenses incurred by Agent
or any Lender (including the fees and expenses of counsel, advisors and consultants) in connection
with the administration, enforcement, protection or preservation of any right or claim of Agent or
any Lender, the termination of this Agreement, the termination of any Liens of Agent or any Lender
on the Collateral, or the collection of any amounts due under the Financing Documents. If Agent or
any Lender uses in-house counsel for any of these purposes (i.e., for any task in connection with
the enforcement, protection or preservation of any right or claim of Agent and Lenders and the
collection of any amounts due under the Financing Documents), Borrowers further agree that the
Obligations include reasonable charges for such work commensurate with the fees that would
otherwise be charged by outside legal counsel selected by Agent or any Lender for the work
performed.

     (c) Borrowers shall pay all taxes (other than taxes based upon or measured by Agent’s or a
Lender’s income or revenues or any personal property tax), if any, in connection with the issuance
of the execution of this Agreement, the issuance of the Notes and the recording of any Financing
Documents. The obligations of Borrower under this clause (c) shall survive the payment of
Borrowers’ indebtedness under this Agreement and the termination of this Agreement.

     (d) Borrowers hereby indemnify and agree to defend (with counsel acceptable to Agent) and hold
harmless Agent and Lenders, their partners, officers, agents and employees (collectively in the
singular, “Indemnitee”) from and against any liability, loss, cost, expense (including reasonable
attorneys’ fees and expenses for both in-house and outside counsel), claim, damage, suit, action or
proceeding ever suffered or incurred by any Indemnitee or in which an Indemnitee may ever be or
become involved (whether as a party, witness or otherwise) (collectively, “Claims”) (a) arising
from any Credit Party’s failure to observe, perform or discharge any of its covenants, obligations,
agreements or duties under the Financing Documents, (b) arising from the breach of any of the
representations or warranties contained in any Financing Document, (c) by reason of this Agreement,
the other Financing Documents or the transactions contemplated hereby or thereby, or (d) relating
to claims of any Person with respect to the Collateral, except for Claims and/or losses directly
caused by Indemnitee’s gross negligence or willful misconduct. Notwithstanding any contrary
provision in this Agreement, the obligation of Borrower under this Section 11.17 shall survive the
payment in full of the Obligations and the termination of this Agreement. NO INDEMNITEE PERSON
SHALL BE RESPONSIBLE OR LIABLE TO THE BORROWERS OR TO ANY OTHER PARTY TO ANY FINANCING DOCUMENT,
ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY OR ANY OTHER PERSON ASSERTING CLAIMS
DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH
MAY BE ALLEGED AS A RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER THIS
AGREEMENT OR ANY OTHER FINANCING DOCUMENT OR AS A RESULT OF ANY OTHER TRANSACTION CONTEMPLATED
HEREUNDER OR THEREUNDER.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

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

	 	 	 	 	 
	 	BORROWER:

BIOTROVE, INC.

 	 
	 	By:  	/s/ Paul Pescatore
 	 
	 	 	Name:  	Paul Pescatore 	 
	 	 	Title:  	VP Finance 	 
	 

	 	 	 
	 

	 	Address:

12 Gill Street Woburn, MA 01801

Woburn, MA 01801

Attn: Paul Pescatore

Facsimile: (781) 721-3601

E-Mail: ppescatore@biotrove.com

	 	 	 
	 

	 	Borrower’s Account Designation:

Bank Name: Bank of America

ABA No.:                                                            

Account No.:                                                            

Account Name: BioTrove, Inc.

Reference:                                                            

 

 

	 	 	 	 	 
	 	AGENT:

MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services Inc., as Agent and a Lender

 	 
	 	By:  	/s/ Will Gould
 	 
	 	 	Name:  	Will Gould 	 
	 	 	Title:  	Director 	 
	 

	 	 	 
	 

	 	Address:

222 N. LaSalle Street, 16th Floor

Chicago, Illinois 60601

Attn: Account Manager for MLC-HCF BioTrove, Inc. transaction

Facsimile: 1-866-251-2944

E-Mail: MLC_HCF_ABL2@ml.com

	 	 	 
	 

	 	With copies to:
	 
	 	 
	 

	 	Merrill Lynch Capital
	 

	 	222 N. LaSalle Street, 16th Floor
	 

	 	Chicago, Illinois 60601
	 

	 	Attn: Group Senior Transaction Attorney, Healthcare Finance
	 

	 	Facsimile Number: (312) 499-3245
	 
	 	 
	 

	 	Merrill Lynch Capital
	 

	 	7700 Wisconsin Ave., Suite 400
	 

	 	Bethesda, Maryland 20814
	 

	 	Attn: Group Senior Transaction Attorney, Healthcare Finance
	 

	 	Facsimile Number: (866) 341-9053
	 
	 	 
	 
	 	 
	 

	 	Payment Account Designation:

LaSalle Bank

200 West Monroe

Chicago, IL 60606

ABA #: 071000505

Account Name: MLBFS Healthcare Finance

Account #: 5800395088

Attention: BioTrove

 

 

	 	 	 	 	 
	 	LENDERS:

MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services Inc., as Lender

 	 
	 	By:  	/s/ Will Gould
 	 
	 	 	Name:  	Will Gould 	 
	 	 	Title:  	Director 	 
	 

	 	 	 
	 

	 	Address:

222 N. LaSalle Street, 16th Floor

Chicago, Illinois 60601

Attn: Account Manager for MLC-HCF BioTrove, Inc. transaction

Facsimile: 1-866-251-2944

E-Mail: MLC_HCF_ABL2@ml.com

	 	 	 
	 

	 	With copies to:
	 
	 	 
	 

	 	Merrill Lynch Capital
	 

	 	222 N. LaSalle Street, 16th Floor
	 

	 	Chicago, Illinois 60601
	 

	 	Attn: Group Senior Transaction Attorney, Healthcare Finance
	 

	 	Facsimile Number: (312) 499-3245
	 
	 	 
	 

	 	Merrill Lynch Capital
	 

	 	7700 Wisconsin Ave., Suite 400
	 

	 	Bethesda, Maryland 20814
	 

	 	Attn: Group Senior Transaction Attorney, Healthcare Finance
	 

	 	Facsimile Number: (866) 341-9053

 

 

ANNEXES, EXHIBITS, RIDERS AND SCHEDULES

	 	 	 
	ANNEXES
	 	 
	 
	 	 
	Annex A

	 	Commitment Annex
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit A

	 	Reserved
	Exhibit B

	 	Compliance Certificate
	Exhibit C

	 	Borrowing Base Certificate
	Exhibit D

	 	Notice of Borrowing
	Exhibit E

	 	Payment Notification
	Exhibit F

	 	Concentration Percentage Limitations
	 
	 	 
	SCHEDULES
	 	 
	 
	 	 
	Schedule 2.1

	 	Amortization Schedule
	Schedule 3.1

	 	Existence, Organizational ID Numbers, Foreign Qualification, Prior Names
	Schedule 3.4

	 	Capitalization
	Schedule 3.6

	 	Litigation
	Schedule 3.15

	 	Material Contracts
	Schedule 3.16

	 	Environmental Compliance
	Schedule 3.17

	 	Intellectual Property
	Schedule 4.4

	 	Insurance
	Schedule 5.1

	 	Debt
	Schedule 5.2

	 	Liens
	Schedule 5.8

	 	Affiliate Transactions
	Schedule 5.11

	 	Business Description
	Schedule 7.4

	 	Post-Closing Obligations
	Schedule 8.1

	 	Collateral
	 
	 	 
	Schedule 8.2

	 	Location of Collateral

Annexes, Exhibits, Riders and Schedules to Credit and Security Agreement

Page 1

 

 

			
	
	 	Annex A to Credit and Security Agreement (Commitment Annex)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Loan	 	Revolving Loan	 	Term Loan	 	Term Loan
	 	 	Commitment	 	Commitment	 	Commitment	 	Commitment
	Lender	 	Amount	 	Percentage	 	Amount	 	Percentage
	Merrill Lynch
Capital
	 	$	2,500,000	 	 	 	100	%	 	 	2,500,000	 	 	 	100	%

Annex A to Credit and Security Agreement

Page 1

 

 

                     Exhibit B to Credit and Security Agreement (Compliance Certificate)

COMPLIANCE CERTIFICATE

Date:                                         ,                    

     This
certificate is given by                     , a Responsible Officer of                     
(“Borrower”), pursuant to that certain Credit and Security Agreement dated as of October 26, 2006
among
                    
and                      (collectively, “Borrower”), the Lenders from time to time party
thereto and Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc., as
Agent for Lenders (as such agreement may have been amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”). Capitalized terms used herein without
definition shall have the meanings set forth in the Credit Agreement.

     The undersigned Responsible Officer hereby certifies to Agent and Lenders that:

          (a) the financial statements delivered with this certificate in accordance with Section 4.1 of
the Credit Agreement fairly present in all material respects the results of operations and
financial condition of Borrower and its Subsidiaries as of the dates and the accounting period
covered by such financial statements;

          (b) I have reviewed the terms of the Credit Agreement and have made, or caused to be made
under my supervision, a review in reasonable detail of the transactions and conditions of Borrower
and its Subsidiaries during the accounting period covered by such financial statements;

          (c) such review has not disclosed the existence during or at the end of such accounting
period, and I have no knowledge of the existence as of the date hereof, of any condition or event
that constitutes a Default or an Event of Default, except as set forth in Schedule 1
hereto, which includes a description of the nature and period of existence of such Default or an
Event of Default and what action Borrower has taken, is undertaking and proposes to take with
respect thereto;

          (d) Borrower is in compliance with the covenants contained in Article 6 of the Credit
Agreement, as demonstrated by the calculation of such covenants below, except as set forth below;

          (e) except as noted on Schedule 2 attached hereto, the Credit Agreement contains a
complete and accurate list of all business locations of Borrower and Guarantor and all names under
which Borrower or Guarantor currently conduct business; Schedule 2 specifically notes any
changes in the names under which Borrower or Guarantor conduct business;

          (f) except as noted on Schedule 3 attached hereto, the undersigned has no knowledge of
any federal or state tax liens having been filed against the Borrower, Guarantor or any Collateral;

          (g) except as noted on Schedule 3 attached hereto, the undersigned has no knowledge of
any failure of the Borrower or Guarantor to make required payments of withholding or other tax
obligations of the Borrower or Guarantor during the accounting period to which the attached
statements pertain or any subsequent period;

          (h) if the Credit Agreement contemplates advances in respect of a borrowing base, the
undersigned has no knowledge that any borrowing base delivered to Agent has failed, in any material
respect, to accurately state the amount of the borrowing base as calculated in accordance with the
Credit Agreement;

          (i) if the Credit Agreement contemplates payments into a lockbox or
restricted account, or directly to Agent, Borrower (as required under this
Agreement or in the Financing Documents) has directed all of its account
debtors to make payments into such account or to Agent;

Exhibit B to Credit and Security Agreement

Page 1

 

 

          (j) if the Credit Agreement contemplates a lien on the deposit accounts of the Borrower in
favor of Agent, Schedule 4 attached hereto contains a complete and accurate statement of
all deposit or investment accounts maintained by Borrower or Guarantor;

          (k) if the Credit Agreement contemplates a lien on real property in favor of Agent, then
except as described on Schedule 5 attached hereto:

               (i) there are no current, pending or threatened proceedings relating to a condemnation or
other public taking of such real property;

               (ii) such real property has suffered no casualty or other damage or loss of the type typically
covered by hazard insurance;

               (iii) all insurance required to be maintained by Borrower or Guarantor under the Credit
Agreement is in force and premiums therefor have been paid as and when due and Borrower and
Guarantor have made no claims thereunder;

               (iv) all real estate taxes or other assessments pertaining to such real property have been
paid as and when due and Borrower maintains adequate reserves or escrows to pay all such taxes and
assessments as they come due; and

               (v) the undersigned has no knowledge of any current, pending or threatened changes to the
zoning classification or permitted uses of such real property;

          (l) except as described in the Credit Agreement or in Schedule 6 attached hereto, the
undersigned has no knowledge of any current, pending or threatened:

               (i) litigation against the Borrower or Guarantor;

               (ii) inquiries, investigations or proceedings concerning the business affairs, practices,
licensing or reimbursement entitlements of Borrower or Guarantor; or

               (iii) default by Borrower or Guarantor under any material contract to which either of them is
a party, including, without limitation, any leases;

          (m) in determining compliance with the provisions identified in (d) above, the following
calculations have been made: [See attached worksheets];

          (n) such calculations and the certifications contained therein are true, correct and complete;
and

          (o) Borrower is in compliance with the requirements under its lease agreements for each leased
premises, including, without limitation, the payment of rent on or before the due date thereof.

          The foregoing certifications and computations are made as of                                         ,          
          (end
of month) and delivered this
                    day of                                         , 20
                    .

Sincerely,

	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	Name	 	 	 	 
	 	 	 	 	   
	 

	 	Title
	 	 	 	of Borrower Representative
	 

	 	 	 	 	 	 

Exhibit B to Credit and Security Agreement

Page 2

 

 

List of Schedules:

Schedule 1 — Non-Compliance with Covenants

Schedule 2 — Business Locations and Names of Borrower and Guarantor

Schedule 3 — Unpaid Tax or Withholding Obligations

Schedule 4 — List of all Deposit and Investment Accounts of Borrower and Guarantor

Schedule 5 — Pending Litigation, Inquiries or Investigations; Defaults under Material Contracts

Worksheet(s) for Financial or Other Covenant Calculations

Exhibit B to Credit and Security Agreement

Page 3

 

 

Schedules to Compliance Certificate

Schedule 1 — Non-Compliance with Covenants

Schedule 2 — Business Locations and Names of Borrower and Guarantor

Schedule 3 — Unpaid Tax or Withholding Obligations

Schedule 4 — List of all Deposit and Investment Accounts of Borrower and Guarantor

Schedule 5 — Pending Litigation, Inquiries or Investigations; Defaults under Material Contracts

Schedules to Compliance Certificate

Page 1

 

 

Fixed Charge Coverage Ratio Worksheet (Attachment to Compliance Certificate)

Fixed Charge Coverage Ratio for the trailing six-month
period most recently ended (the “Defined Period”) is
defined as follows:

Fixed Charges:

	 	 	 	 	 
	Interest expense ($______), net of interest income
($______), interest paid in kind ($______) and
amortization of capitalized fees and expenses incurred to
consummate the transactions contemplated by the Operative
Documents and included in interest expense ($______),
included in the determination of net income of Borrowers
and their Consolidated Subsidiaries for the Defined Period
(“Total Interest Expense”)

	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus: Any provision for (or less any benefit from) income
or franchise taxes included in the determination of net
income for the Defined Period *
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Scheduled payments of principal for the
Defined Period with respect to all Debt
(including the portion of scheduled payments
under capital leases allocable to principal
but excluding mandatory prepayments required
by Section 2.1(c) and excluding scheduled
repayments of Revolving Loans and other Debt
subject to reborrowing to the extent not
accompanied by a concurrent and permanent
reduction of the Revolving Loan Commitment (or
equivalent loan commitment))
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Fixed Charges
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Operating Cash Flow:
	 	 	 	 
	 
	 	 	 	 
	EBITDA for the Defined Period (calculated in the manner
required by the EBITDA Worksheet attached to the
Compliance Certificate)

	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Less: Unfinanced capital expenditures for the Defined
Period
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	To the extent not already reflected in the
calculation of EBITDA, other capitalized
costs, defined as the gross amount paid in
cash and capitalized during the Defined
Period, as long term assets, other than
amounts capitalized during the Defined Period
as capital expenditures for property, plant
and equipment or similar fixed asset accounts
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Operating Cash Flow

	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Fixed Charge Coverage Ratio (Ratio of Operating Cash Flow
to Fixed Charges) for the Defined Period
	 	1.0 to 1.0	 
	 
	 	 	 	 
	Minimum Fixed Charge Coverage for the Defined Period
	 	 	 	 
	 
	 	 	 	 
	 
	 	___ to 1.0
	In Compliance
	 	Yes/No

Fixed Charge Coverage Ratio Worksheet (Attachment to Compliance Certificate)

Page 1

 

 

EBITDA Worksheet (Attachment to Compliance Certificate)

	 	 	 	 	 
	EBITDA for the trailing six-month period most
recently ended (the “Defined Period”) is
defined as follows:
	 	 	 	 
	 
	 	 	 	 
	Net income (or loss) for the Defined Period of
Borrowers and their Consolidated Subsidiaries,
but excluding: (a) the income (or loss) of any
Person (other than Subsidiaries of Borrowers)
in which Borrowers or any of their Subsidiaries
has an ownership interest unless received by
Borrower or their Subsidiary in a cash
distribution; and (b) the income (or loss) of
any Person accrued prior to the date it became
a Subsidiary of Borrowers or is merged into or
consolidated with Borrowers
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	Plus: Any provision for (or less any benefit
from) income and franchise taxes deducted in
the determination of net income for the Defined
Period
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Interest expense, net of interest
income, deducted in the
determination of net income for the
Defined Period
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Amortization and depreciation
deducted in the determination of
net income for the Defined Period
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	Other non-cash expenses (or less
other non-cash gains or income)
deducted in the determination of
net income for the Defined Period
and for which no cash outlay (or
cash receipt) is foreseeable prior
to the Commitment Expiry Date
	 	 	 	 
	 
	 	 	 
	 
	 	 	 	 
	EBITDA for the Defined Period

	 	$	 	 
	 
	 	 	 

EBITDA Worksheet (Attachment to Compliance Certificate)

Page 1

 

 

                    Exhibit C to Credit and Security Agreement (Borrowing Base Certificate)

					
	 
	 
	 	MERRILL Lynch Capital

Accounts Receivable Borrowing Base Report
	 	

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 
	 	Merrill Lynch Capital 
	 
	BBR Date 

	 	August 22, 2006 
	 	Report #: 
	 	  

	 	Aging Date 
	 	August 31, 2006 
	Name:

	 	Bio Trove, Inc
	 	Customer #
	 	042006
	 	Facility #
	 	24036

	 	 	 	 	 	 	 	 	 	 	 
	A/R Category	 	A/R	 	 	TOTALS	 
	1.
	 	Billed Accounts Balance per aging dated 08/31/06	 	$	390,872.80	 	 	$	390,872.80	 
	2.
	 	(Less): Ineligibles (from next page)	 	$	(72,560.00	)	 	$	(72,560.00	)
	3.
	 	Eligible Accounts	 	$	318,312.80	 	 	$	318,312.80	 
	4.
	 	Liquidity Factor	 	 	98.7	%	 	 	98.70	%
	5a.
	 	Total Eligible Accounts before credit balances	 	$	314,174.73	 	 	$	314,174.73	 
	5b.
	 	Less: Reserve against eligible accounts	 	$	(47,849.11	)	 	$	(47,849.11	)
	 
	 	 	 	 	 	 	 	 
	6.
	 	Total Eligible Accounts	 	$	266,325.62	 	 	$	266,325.62	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	Computation of Availability	 	 	 	 	 	 	 	 
	7.
	 	Total Eligible Accounts:	 	 	 	 	 	$	266,325.62	 
	8a.
	 	(Less): Cash Posted Since Last Aging	 	 	 	 	 	$	—	 
	8b.
	 	Add:  Revenue Posted Since Last Aging	 	 	 	 	 	$	—	 
	8c.
	 	Plus/(Minus): Adjustments	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 
	9.
	 	Net Eligible Accounts	 	 	 	 	 	$	266,325.62	 
	10.
	 	Advance Rate	 	 	 	 	 	 	85.00	%
	 
	 	 	 	 	 	 	 	 	 
	11.
	 	Net Availability	 	 	 	 	 	$	226,376.78	 
	12.
	 	Add:  Inventory Availability ( see attached)	 	 	 	 	 	$	317,097.26	 
	13.
	 	Add:  Equipment Availability ( see attached)	 	 	 	 	 	$	477,419.58	 
	 
	 	 	 	 	 	 	 	 	 
	15.
	 	Net Availability	 	 	 	 	 	$	1,020,893.62	 
	 
	 	 	 	 	 	 	 	 	 

Exhibit C to Credit and Security Agreement (Borrowing Base Certificate)

Page 1

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Computation of Loan	 	 	 	 	 	 	 	 
	15.
	 	Facility Limit	 	 	 	 	 	$	2,500,000.00	 
	16.
	 	Available to Borrow (not to exceed limit)	 	 	 	 	 	$	1,020,893.62	 
	 
	 	 	 	 	 	 	 	 	 	 
	17.
	 	Loan Balance on Prior Borrowing Base Certificate	 	 	 	 	 	$	—	 
	18.
	 	(Less): Cash Collections since last Borrowing Base Certificate	 	 	 	 	 	$	—	 
	19.
	 	Increase/(Decrease): Adjustments	 	 	 	 	 	$	—	 
	20.
	 	Loan Advances	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 
	21.
	 	Ending Loan Balance	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 
	 
	22.
	 	Letter of Credit Outstandings	 	 	 	 	 	$	—	 
	23.
	 	Overall Reserve	 	 	 	 	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	24.
	 	Remaining Availability	 	 	 	 	 	$	1,020,893.62	 
	 
	 	 	 	 	 	 	 	 	 

Pursuant to, and in accordance with, the terms and provisions of the Loan Documents (“Documents”), between MERRILL LYNCH CAPITAL, A DIVISION OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES, INC. (“Secured Party”) and Bio Trove, Inc
(“Borrower”), Borrower is executing and delivering to Secured Party this Borrowing Base Report accompanied by supporting data (collectively referred to as “Report”). Borrower warrants and represents to Secured Party that this Report
is true, correct, and based on information contained in Borrower’s own financial accounting records.

Borrower, by the execution of this Report:

(a) Hereby ratifies, confirms, and affirms all of the terms, and further certifies that the Borrower is in compliance with the Loan Documents as of August 22, 2006:
(b) Hereby certifies that the Borrower has paid all State and Federal payroll witholding taxes immediately due and payable through August 22, 2006.
This document does not supercede any provisions of the Loan and Security Agreement. Capitalized Terms used herein and not otherwise defined shall have the meaning ascribed to them in the Loan and Security Agreement between Secured
Party and Borrower dated August 31, 2006.

	 	 	 	 	 
	 

	 	                                             
	 	(Responsible Officer’s)
	 
	 	 	 	 
	 

	 	                                             
	 	(Print Name)
	 

	 	                                             
	 	(Title)

Exhibit C to Credit and Security Agreement (Borrowing Base Certificate)

Page 2

 

 

	 	 	 	 	 
	Billed A/R
	 	 	 	 
	Current
	 	 	69,682	 
	1-30
	 	 	238,068	 
	31-60
	 	 	19,863	 
	61-90
	 	 	(9,300	)
	Over 90 Days
	 	 	72,560	 
	 
	 	 	 	 
	 
	 	 	 	 
	Subtotal
	 	 	390,873	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total A/R
	 	 	390,873	 
	 
	 	 	 	 
	Less: Ineligible A/R
	 	 	 	 
	Over 90 DOI
	 	 	(72,560	)
	Crossage > 50%
	 	 	—	 
	Contra
	 	 	—	 
	Foreign Accounts
	 	 	 	 
	Other
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total Ineligible A/R
	 	 	(72,560	)
	 
	 	 	 	 
	 
	 	 	 	 
	Total Eligible A/R
	 	 	318,313	 
	 
	 	 	 	 
	Liquidity Factor
	 	 	98.7	%
	 
	 	 	 	 
	 
	 	 	 	 
	Net Eligible A/R
	 	 	314,175	 
	 
	Reserves Against Net Eligible A/R
	 	 	 	 
	Credit Balances > 90 DOI
	 	 	—	 
	Other Reserve — Deferred Revenue against Elig A/R
	 	 	(47,849	)
	 
	 	 	 	 
	 
	 	 	 	 
	Net Eligible A/R after Reserve
	 	 	266,326	 
	 
	 	 	 	 
	Advance Rate
	 	 	85.0	%
	 
	 	 	 	 
	Availability
	 	 	226,377	 
	 
	 	 	 	 

Exhibit C to Credit and Security Agreement (Borrowing Base Certificate)

Page 3

 

 

	 	 	 	 	 
	Inventory Class
	 	 	 	 
	1300 · Inventory (Chemistry)
	 	 	476,455	 
	1310 · Inventory — Rapid Fire Hardware
	 	 	—	 
	1320 · Inventory — Raw Material Plates
	 	 	18,757	 
	1330 · Inventory — Raw Material Instr
	 	 	309,516	 
	1340 · Inv. — Finished Goods Plates
	 	 	7,201	 
	1350 · Inv- Finished Goods Instruments
	 	 	109,630	 
	1370 · Inventory — Primer
	 	 	2,002	 
	1390 · Inventory at Outside Locations
	 	 	155,598	 
	 
	 	 	 	 
	Subtotal
	 	 	1,079,158	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total Inventory
	 	 	1,079,158	 
	 
	 	 	 	 
	Less: Ineligible Inventory
	 	 	 	 
	Chemistry 
	 	 	 	 
	RM – Plates (44.6%)
	 	 	(8,365	)
	FG – Plates
	 	 	(7,201	)
	Primer Inventory (Custom Ordered for cust)
	 	 	(2,002	)
	Inventory at Outside Locations
	 	 	(155,598	)
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total Ineligible Inventory
	 	 	(173,166	)
	 
	 	 	 	 
	 
	 	 	 	 
	Total Eligible Eligible Inventory
	 	 	905,992	 
	 
	 	 	 	 
	Advance Rate
	 	 	35.0	%
	 
	 	 	 	 
	 
	 	 	 	 
	Inventory Availability
	 	 	317,097	 
	 
	 	 	 	 
	Reserves Against Inventory Availaiblity
	 	 	 	 
	Rent Reserve (2 mos) @ 58,558.40
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Net Inventory Availaiblity
	 	 	317,097	 
	 
	 	 	 	 

Exhibit C to Credit and Security Agreement (Borrowing Base Certificate)

Page 4

 

 

	 	 	 	 	 
	Fixed Assets
	 	 	 	 
	1500 • Leasehold Improvements
	 	 	66,804	 
	1505 • Leasehold lmprovements-1 0 Gill
	 	 	1,508,910	 
	1510 • Lab Furniture
	 	 	42,308	 
	1520 • Software
	 	 	83,478	 
	1530 • Office Equipment
	 	 	327,484	 
	1540 • Lab Equip.
	 	 	1,792,684	 
	1545 • Mfg. Equipment - 10 Gill Street
	 	 	704,785	 
	1560 • Mfg Equipment - 12 Gill St.
	 	 	649,964	 
	1570 • ADME Instrument
	 	 	45,282	 
	1595 • Held for Disposal
	 	 	50,000	 
	1600 • Accum Amort of Leasholds
	 	 	(39,161	)
	1605 • Accum. Depn.- Leasehold 10 Gill
	 	 	(436,991	)
	1610 • Accum depr- lab furniture
	 	 	(21,999	)
	1620 • Accum. Depr’n — Software R & D
	 	 	(54,757	)
	1630 • Accum. Depreciation — Office eq
	 	 	(179,195	)
	1640 • Accum. Depreciation — lab
	 	 	(921,035	)
	1650 • Accum Depn Mfg. Equip
	 	 	(100,065	)
	1660 • Accum. Depn -Mfg Equip 12 Gill
	 	 	(216,655	)
	 
	 	 	 	 
	Total Fixed Assets
	 	 	3,301,840	 
	 
	 	 	 	 
	 
	 	 	 	 
	Less: Ineligible Fixed Assets
	 	 	 	 
	1500 • Leasehold Improvements
	 	 	(66,804	)
	1505 • Leasehold lmprovements-1 0 Gill
	 	 	(1,508,910	)
	1510 • Lab Furniture
	 	 	(42,308	)
	1520 • Software
	 	 	(83,478	)
	1530 • Office Equipment
	 	 	(327,484	)
	1570 • ADME Instrument
	 	 	(45,282	)
	1595 • Held for Disposal
	 	 	(50,000	)
	1600 • Accum Amort of Leasholds
	 	 	39,161	 
	1605 • Accum. Depn.- Leasehold 10 Gill
	 	 	436,991	 
	1610 • Accum depr- lab furniture
	 	 	21,999	 
	1620
• Accum. Depr’n - Software R & D
	 	 	54,757	 
	1630
• Accum. Depreciation - Office eq
	 	 	179,195	 
	 
	 	 	 	 
	Total Ineligible Fixed Assets
	 	 	(1,392,162	)
	 
	 	 	 	 
	 
	 	 	 	 
	Total Eligible Fixed Assets
	 	 	1,909,678	 
	 
	 	 	 	 
	Liquidity Factor
	 	 	100.0	%

Exhibit C to Credit and Security Agreement (Borrowing Base Certificate)

Page 5

 

 

	 	 	 	 	 
	Net Eligible Fixed Assets
	 	 	1,909,678	 
	 
	 	 	 	 
	Reserves Against Net Eligible A/R
	 	 	 	 
	Other Reserve
	 	 	—	 
	Other Reserve
	 	 	—	 
	 
	 	 	 	 
	Net Eligible A/R after Reserve
	 	 	1,909,678	 
	 
	 	 	 	 
	Advance Rate
	 	 	25.0	%
	 
	 	 	 	 
	Availability
	 	 	477,420	 
	 
	 	 	 	 

Exhibit C to Credit and Security Agreement (Borrowing Base Certificate)

Page 6

 

			
	
	Exhibit D to Credit and Security Agreement (Notice of Borrowing)

[BORROWER REPRESENTATIVE]

Date:                     ,                    

          This certificate is given by                     , a Responsible Officer of                     
(“Borrower Representative”), pursuant to Section 2.2(a)(ii) of that certain Credit and Security
Agreement dated as of                     ,                     among                      and                     (“Borrowers”), the
Lenders from time to time party thereto and Merrill Lynch Capital, a division of Merrill Lynch
Business Financial Services Inc., as Agent for Lenders (as such agreement may have been amended,
restated, supplemented or otherwise modified from time to time the “Credit Agreement”).
Capitalized terms used herein without definition shall have the meanings set forth in the Credit
Agreement.

          The undersigned Responsible Officer hereby gives notice to Agent of Borrower Representative’s
request to on [ date ] borrow $[                    ] of Revolving Loans.

          The undersigned officer hereby certifies that, both before and after giving effect to the
request above (a) each of the conditions precedent set forth in Section 7.2 have been satisfied,
(b) all of the representations and warranties contained in the Credit Agreement and the other
Financing Documents are true, correct and complete as of the date hereof, except to the extent such
representation or warranty relates to a specific date, in which case such representation or
warranty is true, correct and complete as of such earlier date, and (c) no Default or Event of
Default has occurred and is continuing on the date hereof.

          IN WITNESS WHEREOF, the undersigned officer has executed and delivered this certificate this
                    day of                     ,                    

	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Authorized Signatory for Borrower Representative	 	 

Exhibit D to Credit and Security Agreement (Notice of Borrowing)

Page 1

 

			
	
	Exhibit E to Credit and Security Agreement (Payment Notification)

[BORROWER REPRESENTATIVE]

Date:                     ,                    

          Reference is hereby made to the Credit and Security Agreement dated October 26, 2006 among the
undersigned, Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc.,
as Agent and the financial institutions party thereto. Capitalized terms used here have the
meanings ascribed thereto in the Credit and Security Agreement.

          Please be advised that funds in the amount of $                    will be wire transferred to Agent
on October                    , 2006. Such funds shall constitute [an optional] [a mandatory] prepayment of the
Term Loans, with such prepayments to be applied in the manner specified in Section 2.1(e)(i).
[Such mandatory prepayment is being made pursuant to Section                      of the Credit and
Security Agreement.]

          Fax to MLC Operations 312-499-3336 no later than noon Chicago time.

          Note:Funds must be received no later than noon Chicago time for same day application

          Wire Instructions:

	 	 	 	 	 
	 

	 	Bank Name:
	 	LaSalle Bank National Association
	 

	 	 	 	135 S. LaSalle Street
	 

	 	 	 	Chicago, IL 60603
	 

	 	ABA#
	 	0710-0050-5
	 

	 	Account Name:	 	 
	 

	 	 	 	 
	 

	 	Account #:	 	 
	 

	 	 	 	 
	 

	 	Reference:
	 	(Client Name)
	 

	 	Address:
	 	Merrill Lynch Capital
	 

	 	 	 	222 N. LaSalle Street, 16th Floor
	 

	 	 	 	Chicago, IL 60601

          IN WITNESS WHEREOF, the undersigned officer has executed and delivered this certificate this
                    day of                     ,                     .

	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Authorized Signatory for Borrower Representative	 	 

Exhibit E to Credit and Security Agreement (Payment Notification)

Page 1

 

			
	
	Exhibit F to Credit and Security Agreement (Concentration Percentage Limitation)

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Applicable Concentration
	 	 
	 

	 	Account Debtor
	 	 	 	Percentage Limitation
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Pfizer, Inc.
	 	 	 	 	50	%	 	 

Exhibit F to Credit and Security Agreement (Payment Notification)

Page 1

 

 

FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Agreement”) is entered into this
26th day of April, 2007, by and between BIOTROVE, INC., a Delaware corporation (“Borrower”), and
MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services Inc., individually
as a Lender, and as Agent (“Agent”).

Recitals

     A. Agent and Borrower have entered into that certain Credit and Security Agreement dated as of
October 26, 2006 (as the same may from time to time be amended, modified, supplemented or restated,
the “Credit Agreement”). Agent has extended credit to Borrower for the purposes permitted in the
Credit Agreement.

     B. Borrower has requested that Agent amend the Credit Agreement to (i) modify the repayment
schedule and the Base Rate Margin for the Term Loan and (ii) adjust the requirements for the Cash
Collateral Reserve.

     C. Agent has agreed to so amend certain provisions of the Credit Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the
representations and warranties set forth below.

Agreement

     Now, Therefore, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to
be legally bound, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used but not defined in this Agreement, including its
preamble and recitals, shall have the meanings given to them in the Credit Agreement.

     2. Amendments to Credit and Security Agreement.

          2.1 Section 1.1 (Certain Defined Terms). The definition of “Base Rate Margin” in Section 1.1
of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with the
following:

     “Base Rate Margin” means (a) 5.00% per annum, with respect to the Revolving Loans and
other Obligations (other than the Term Loan), and (b) 3.50% per annum with respect to the
Term Loan.

          2.2 Section 2.10(b). Section 2.10(b) of the Credit Agreement is hereby amended by deleting
the first sentence in its entirety and replacing it with the following:

     Prior to the initial advance of the Term Loan, Borrowers shall pay to Agent the sum of
One Million Five Hundred Thousand Dollars ($1,500,000) to be held by Agent in a cash
collateral reserve (“Cash Collateral Reserve”).

1

 

          2.3 Schedule 2.1 (Amortization Schedule). Schedule 2.1 is hereby amended by deleting it in
its entirety and replacing it with the following:

     Commencing on June 1, 2007, and continuing on the first day of each calendar month
thereafter through May 1, 2009, Borrowers shall pay to Agent, as a principal payment under
the Term Loan, an amount equal to the “Amortization Payment” (defined below) as an
amortization payment in respect of each advance under the Term Loan. The term “Amortization
Payment” means the principal component of a straight line amortization schedule assuming
twenty-four (24) equal monthly principal payments.

     3. Purchase of $1,000,000 of Equipment by Borrowers. In consideration for the amendment to
Section 2.10(b) of the Credit Agreement in accordance with the terms above, Borrowers hereby agree
that within nine (9) months after the date hereof Borrowers shall deliver to Agent evidence
(satisfactory to Agent in its sole discretion) that Borrowers have, after the date hereof,
purchased equipment with an aggregate purchase price of not less than One Million Dollars
($1,000,000). The failure by Borrowers to provide such evidence to Agent in accordance with the
foregoing sentence shall constitute an Event of Default under the Agreement.

     4. Representations and Warranties. To induce Agent to enter into this Agreement, Borrower
hereby represents and warrants to Agent as follows:

          4.1 Immediately after giving effect to this Agreement (a) the representations and warranties
contained in the Financing Documents are true, accurate and complete in all material respects as of
the date hereof (except to the extent such representations and warranties relate to an earlier
date, in which case they are true and correct as of such date), and (b) no Event of Default has
occurred and is continuing;

          4.2 Borrower has the power and due authority to execute and deliver this Agreement and to
perform its obligations under the Credit Agreement;

          4.3 The execution and delivery by Borrower of this Agreement and the performance by Borrower
of its obligations under the Credit Agreement have been duly authorized by all necessary action on
the part of Borrower;

          4.4 The organizational documents of Borrower delivered to Agent on the Closing Date remain
true, accurate and complete and have not been amended, supplemented or restated and are and
continue to be in full force and effect;

          4.5 The execution and delivery by Borrower of this Agreement and the performance by Borrower
of its obligations under the Credit Agreement do not and will not contravene (a) any law or
regulation binding on or affecting Borrower, (b) any material contractual restriction with a Person
binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public
body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents
of Borrower;

 

 

          4.6 The execution and delivery by Borrower of this Agreement and the performance by Borrower
of its obligations under the Credit Agreement do not require any order, consent, approval, license,
authorization or validation of, or filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof, binding on either Borrower,
except as already has been obtained or made;

          4.7 This Agreement has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights; and

     5. Limitation of Amendments.

          5.1 The amendments set forth in Section 2, above are effective for the purposes set forth
herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any
amendment, waiver or modification of any other term or condition of any Financing Document, or
(b) otherwise prejudice any right or remedy which Agent may now have or may have in the future
under or in connection with any Financing Document.

          5.2 This Agreement shall be construed in connection with and as part of the Financing
Documents and all terms, conditions, representations, warranties, covenants and agreements set
forth in the Financing Documents, except as herein amended, are hereby ratified and confirmed and
shall remain in full force and effect.

     6. Counterparts. This Agreement may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument.

     7. Effectiveness. This Agreement shall be deemed effective upon (a) the due execution and
delivery to Agent of this Agreement by each party hereto, and (b) Borrower’s payment of Agent’s
legal fees and expenses in connection with the negotiation and preparation of this Agreement.

     8. Governing Law. This Agreement and the rights and obligations of the parties hereto shall
be governed by and construed in accordance with the laws of the State of Illinois.

     9. Integration. This Agreement and the Financing Documents represent the entire agreement
about this subject matter and supersede prior negotiations or agreements. All prior agreements,
understandings, and negotiations between the parties about the subject matter of this Agreement,
and the Financing Documents merge into this Agreement and the Financing Documents.

[Signature page follows.]

 

 

     In Witness Whereof, the parties hereto have caused this Agreement to be duly executed
and delivered as of the date first written above.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	BIOTROVE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul Pescatore	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Paul Pescatore	 	 
	 

	 	 	 	Title: Vice President of Finance	 	 
	 
	 	 	 	 	 	 
	 	 	AGENT:	 	 
	 
	 	 	 	 	 	 
	 	 	MERRILL LYNCH CAPITAL, a division of	 	 
	 	 	Merrill Lynch Business Financial Services Inc.,	 	 
	 	 	as Agent and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Garrett W. Fletcher	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Garrett W. Fletcher	 	 
	 

	 	 	 	Title: Vice President	 	 

 

 

    SECOND
    AMENDMENT TO CREDIT AND SECURITY AGREEMENT

 

    THIS SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT
    (this “Agreement”) is made as of
    March 17, 2008 and effective as of May 30, 2007, by
    and between BIOTROVE, INC., a Delaware corporation
    (“Borrower”), and MERRILL LYNCH BUSINESS
    FINANCIAL SERVICES INC. (formerly known as Merrill Lynch
    Capital, a division of Merrill Lynch Business Financial Services
    Inc.), individually as a Lender, and as Agent.

 

    Recitals

 

    A.  Agent, Lender and Borrower have entered
    into that certain Credit and Security Agreement dated as of
    October 26, 2006, as amended by that certain First
    Amendment to Credit and Security Agreement dated as of
    April 26, 2007 (as the same may from time to time be
    amended, modified, supplemented or restated, the “Credit
    Agreement”). Agent and Lender have extended credit to
    Borrower for the purposes permitted in the Credit Agreement.

 

    B.  Section 4.1 of the Credit Agreement
    requires Borrower to deliver annual financial statements, and an
    unqualified opinion with regard to such financial statements, to
    Agent no later than one hundred fifty days after the last day of
    Borrower’s fiscal year.

 

    C.  Borrower has requested that Agent and
    Lender amend the Credit Agreement to extend the due date of
    Borrower’s 2006 annual financial statements and the
    unqualified opinion with regard to such financial statements.

 

    D.  Agent and Lender have agreed to so amend
    the Credit Agreement, but only to the extent, in accordance with
    the terms, subject to the conditions and in reliance upon the
    representations and warranties set forth below.

 

    Agreement

 

    NOW, THEREFORE, in consideration of the foregoing recitals and
    other good and valuable consideration, the receipt and adequacy
    of which is hereby acknowledged, and intending to be legally
    bound, the parties hereto agree as follows:

 

    1.  Definitions. Capitalized terms used
    but not defined in this Agreement, including its preamble and
    recitals, shall have the meanings given to them in the Credit
    Agreement.

 

    2.  Amendments to Credit Agreement.

 

    2.1  Section 4.1 (Financial Statements and Other
    Reports). Section 4.1 of the Credit Agreement is hereby
    amended by adding the following at the end of such Section:

 

    “Notwithstanding the above, Borrower’s 2006 audited
    consolidated financial statements prepared under GAAP,
    consistently applied, and the unqualified opinion with regard to
    such financial statements from KPMG, shall be due March 31,
    2008. Notwithstanding anything to the contrary in this Agreement
    or any other Financing Document, Borrower’s failure to
    comply with the immediately preceding sentence shall constitute
    an Event of Default under the Credit Agreement without the
    requirement to deliver any notice or the passage of any time or
    both.”

 

    3.  Representations and Warranties. To
    induce Agent to enter into this Agreement, Borrower hereby
    represents and warrants to Agent as follows:

 

    3.1  Immediately after giving effect to this
    Agreement (a) the representations and warranties contained in
    the Financing Documents are true, accurate and complete in all
    material respects as of the date hereof (except to the extent
    such representations and warranties relate to an earlier date,
    in which case they are true and correct as of such date), and
    (b) no Default or Event of Default has occurred and is
    continuing;

 

    3.2  Borrower has the power and due authority
    to execute and deliver this Agreement and to perform its
    obligations under the Credit Agreement, as amended hereby;

 

    3.3  The execution and delivery by Borrower of
    this Agreement and performance by Borrower of its obligations
    under the Credit Agreement, as amended hereby, have been duly
    authorized by all necessary action on the part of Borrower;

 

    3.4  The organizational documents of Borrower
    delivered to Agent on the Closing Date remain true, accurate and
    complete and have not been amended, supplemented or restated and
    are and continue to be in full force and effect;

 

    3.5  The execution and delivery by Borrower of
    this Agreement and the performance by Borrower of its
    obligations under the Credit Agreement, as amended hereby, do
    not and will not contravene (a) any law or regulation binding on
    or affecting Borrower, (b) any material contractual restriction
    with a Person binding on Borrower, (c) any order, judgment or
    decree of any court or other governmental or public body or
    authority, or subdivision thereof, binding on Borrower, or (d)
    the organizational documents of Borrower;

 

    3.6  The execution and delivery by Borrower of
    this Agreement and the performance by Borrower of its
    obligations under the Credit Agreement, as amended hereby, do
    not require any order, consent, approval, license, authorization
    or validation of, or filing, recording or registration with, or
    exemption by any governmental or public body or authority, or
    subdivision thereof, binding on Borrower, except as already has
    been obtained or made;

 

    3.7  This Agreement has been duly executed and
    delivered by Borrower and is the binding obligation of Borrower,
    enforceable against Borrower in accordance with its terms,
    except as such enforceability may be limited by bankruptcy,
    insolvency, reorganization, liquidation, moratorium or other
    similar laws of general application and equitable principles
    relating to or affecting creditors’ rights.

 

    4.    Limitation of Amendments.

 

    4.1  The amendment set forth in Section 2
    above is effective for the purposes set forth herein and shall
    be limited precisely as written and shall not be deemed to (a)
    be a consent to any amendment, waiver or modification of any
    other term or condition of any Financing Document, or (b)_
    otherwise prejudice any right or remedy which Agent or any
    Lender may now have or may have in the future under or in
    connection with any Financing Document.

 

    4.2  This Agreement shall be construed in
    connection with and as part of the Financing Documents and all
    terms, conditions, representations, warranties, covenants and
    agreements set forth in the Financing Documents, except as
    herein amended, are hereby ratified and confirmed and shall
    remain in full force and effect.

 

    5. Counterparts. This Agreement may be executed in
    any number of counterparts and all of such counterparts taken
    together shall be deemed to constitute one and the same
    instrument. Delivery of an executed counterpart of this
    Agreement by facsimile or other electronic method of
    transmission shall be equally as effective as delivery of an
    original executed counterpart of this Agreement. Any party
    delivering an executed counterpart of this Agreement by
    facsimile or other electronic method of transmission also shall
    deliver an original executed counterpart of this Agreement but
    the failure to deliver an original executed counterpart shall
    not affect the validity, enforceability or binding effect of
    this Agreement.

 

    6. Effectiveness. This Agreement shall be deemed
    effective upon the due execution and delivery to Agent of this
    Agreement by each party hereto.

 

    7. Attorneys’ Fees and Expenses. Borrower
    hereby agrees to pay all of Agent’s and Lender’s legal
    fees and expenses in connection with the negotiation and
    preparation of this Agreement.

 

    8. Governing Law. This Agreement and the rights
    and obligations of the parties hereto shall be governed by and
    construed in accordance with the laws of the State of Illinois.

 

    9. Integration.  This Agreement and the Financing
    Documents represent the entire agreement about this subject
    matter and supersede prior negotiations or agreements. All prior
    agreements, understandings, and negotiations between the parties
    about the subject matter of this Agreement, and the Financing
    Documents merge into this Agreement and the Financing Documents.

 

    [Signature page follows immediately.]

 

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

 

    BORROWER:

 

    BIOTROVE, INC.

 

			
	 	    By: 
	
    /s/  Paul
    Pescatore

    Name: Paul Pescatore

    Title: Senior VP Quality and Operations

 

    AGENT AND LENDER:

 

    MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC. (formerly known
    as Merrill Lynch Capital, a division of Merrill Lynch Business
    Financial Services, Inc.)

 

			
	 	    By: 
	
    /s/  Jason
    Dufar

    Name: Jason Dufar

    Title: Duly Authorized Signatory

 

WAIVER AND THIRD AMENDMENT

TO CREDIT AND SECURITY AGREEMENT

     THIS WAIVER AND THIRD AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Agreement”) is made as
of March 31, 2008 by and between BIOTROVE, INC., a Delaware corporation (“Borrower”), and GE
BUSINESS FINANCIAL SERVICES INC. (formerly known as Merrill Lynch Business Financial Services
Inc.), individually as a Lender, and as Agent.

Recitals

     A. Agent, Lender and Borrower have entered into that certain Credit and Security Agreement,
dated as of October 26, 2006, as amended by that certain First Amendment to Credit and Security
Agreement dated as of April 26, 2007, and as amended by that certain Second Amendment to Credit and
Security Agreement, dated as of March 17, 2008 (as the same may from time to time be amended,
modified, supplemented or restated, the “Credit Agreement”). Agent and Lender have extended credit
to Borrower for the purposes permitted in the Credit Agreement.

     B. In connection with the sale of securities pursuant to that certain Note and Warrant
Subscription Agreement between Borrower and the Investors identified therein, dated as of January
22, 2007, as amended on February 12, 2007, May 4, 2007 and May 16, 2007 (the “January Note
Agreement”), Borrower and Agent entered into a Consent Agreement, dated as of January 22, 2007, a
First Amendment to Consent Agreement, dated as of May 4, 2007, and a Consent Agreement, dated as of
November 19, 2007 (the “November 2007 Consent”).

     C. In connection with the sale of securities pursuant to that certain Note Subscription
Agreement between Borrower and the Investors identified therein, dated as of December 10, 2007, as
amended on January 23, 2008, February 14, 2008, and March 17, 2008 (the “December Note Agreement”),
Borrower and Agent entered into a Consent Agreement, dated as of
December 10, 2007 (the “December 2007 Consent”), and a First
Amendment to Consent Agreement and Waiver and Amendment to First Amendment to Credit and Security
Agreement, dated as of February 1, 2008. In connection with the
December Note Agreement, the full principal amount ($6,250,000) owed
by Borrower under the Subordinated Notes referenced in the November
2007 Consent was transferred to the convertible promissory notes
issued in accordance with the December Note Agreement
(the “Balance Transfer”) and the Subordinated Notes
referenced in the November 2007 consent were cancelled (the “Note
Cancellation”).

     D. Borrower is also a party to that certain Exclusive Patent License Agreement between
Borrower and Massachusetts Institute of Technology (“MIT”) dated as of May 11, 2001, as amended on
November 17, 2004, December 21, 2004, February 8, 2005 and March 10, 2008 (the “MIT License
Agreement”).

     E. As of March 10, 2008 Borrower had breached Section 3.1(h) of the MIT License Agreement (the
“License Agreement Default”) and was not expected to meet the requirements of Sections 2.2 and
3.1(h) of the MIT License Agreement. In order to address those issues Borrower entered into a
Letter Amendment with MIT dated March 10, 2008 to waive the License Agreement Default and amend
Sections 2.2 and 3.1(h) of the MIT License Agreement. A copy of such Letter Agreement is attached
hereto as Exhibit A.

     F. Borrower’s default under the MIT License Agreement caused a cross-default under the
December Note Agreement and the January Note Agreement (the “Note Agreement Defaults”). In order
to address the Note Agreement Defaults, Borrower entered into a Waiver with the Lead Investor and
the Majority Noteholders, each as defined in both the December Note Agreement and the January Note
Agreement. A copy of such Waiver is attached hereto as Exhibit B.

     G. An Event
of Default has occurred under Sections 4.1(5), 9.1(k) and 9.1(m) of the
Credit Agreement as a result of the License Agreement Default and the Note

 

 

Agreement
Defaults and under Section 4.1(3) as a result of Borrower's
failure to deliver copies of all statements, reports and notices made
available to Borrower's security holders or to any
holders of Subordinated Debt prior to the date hereof (collectively,
the “Prior Defaults”). To the extent that the
Balance Transfer or the Note Cancellation violated Section 3 of
the December 2007 Consent, and Event of Default also exists under
section 9.1(b) of the Credit Agreement as a result of such
violation (the “Consent Agreement Default”). Additionally, Borrower is currently in default under (A) Section 4.1(1)
of the Credit Agreement for failing to (i) deliver to Agent a company prepared monthly consolidated
balance sheet and income statement within thirty (30) days after the last day of each month
commencing with the month ending October 31, 2006 through February 29, 2008 as set forth in Section
4.1 of the Credit Agreement (the “Financial Statement Default”), and (ii) deliver to Agent,
together with the financial reporting required of Borrower in Section 4.1, evidence (in form and
content satisfactory to Lender) of Borrower’s compliance with the financial covenants in Article 6
of the Credit Agreement and evidence that no Event of Default specified in such Article 6 has
occurred (the “Evidence of Compliance Default”), and (B) Section 6.3 for failing to maintain the
Fixed Charge Coverage Ratio covenant set forth in Section 6.1 of the Credit Agreement for the
months ending October 31, 2006 through February 29, 2008 (the “Fixed Charge Coverage Ratio
Default”; together with the Prior Defaults, the Consent
Agreement Default, the Financial Statement Default and the Evidence of
Compliance Default, the “Existing Defaults”).

     H. Borrower has requested that Lender and Agent waive the Existing Defaults.

     I. Lender and Agent have agreed to so waive the Existing Defaults, but only to the extent, in
accordance with the terms, subject to the conditions and in reliance upon the representations and
warranties set forth in this Agreement.

     J. Borrower has further requested that Lender and Agent amend the Credit Agreement to (i)
extend the due date of company prepared monthly consolidated balance sheet and income statement,
(ii) replace the Fixed Charge Coverage Ratio covenant with a minimum liquidity covenant, and (iii)
make certain other revisions to the Credit Agreement as more fully set forth herein. Lender and
Agent have agreed to so amend certain provisions of the Credit Agreement, but only to the extent,
in accordance with the terms, subject to the conditions and in reliance upon the representations
and warranties set forth below.

Agreement

     NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to
be legally bound, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used but not defined in this Agreement, including its
preamble and recitals, shall have the meanings given to them in the Credit Agreement.

     2. Waiver of Existing Defaults. Lender and Agent hereby waive the Existing Defaults.
Lender’s and Agent’s agreement to waive the Existing Defaults shall in no way obligate Lender or
Agent to make any other modifications to the Credit Agreement or to waive Borrower’s compliance
with any other terms of the Financing Documents, and shall not limit or impair Lender’s or Agent’s
right to demand strict performance of all other terms and covenants as of any date.

     3. Amendments to Credit Agreement.

          3.1 Section 1.1 (Certain Defined Terms).

          (a) The definition of “Fixed Charge Coverage Ratio” in Section 1.1 of the Credit Agreement is
hereby deleted in its entirety.

          (b) The following defined term in Section 1.1 of the Credit Agreement is amended and restated
in its entirety as follows:

-2-

 

     “Revolving Loan Limit” means, at any time, the lesser of (a) the Revolving Loan
Commitment minus the amount of any reserves and/or adjustments provided for in this
Agreement, and (b) the Borrowing Base.

          (c) The following terms and their respective definitions are hereby added to Section 1.1:

     “Cash Burn Amount” means, with respect to Borrower and its consolidated Subsidiaries,
as of any date of determination:

(a) the sum of, without duplication, (A) net income (loss) for the immediately
preceding six month period on a trailing basis, plus (B) depreciation and
amortization for the immediately preceding six month period on a trailing basis,

minus

(b) non-financed capital expenditures, for the immediately preceding six month
period on a trailing basis,

minus 

(c) all payments made on account of interest bearing liabilities during the
immediately preceding six month period on a trailing basis.

     For purposes of the definition of Cash Burn Amount, net income (loss) shall not include
costs associated with any attempt by Borrower to complete its Initial Public Offering,
whether or not such attempt is successful.

     “Cash Equivalents” means (v) any readily-marketable securities (i) issued by, or
directly, unconditionally and fully guaranteed or insured by the United States federal
government or (ii) issued by any agency of the United States federal government the
obligations of which are fully backed by the full faith and credit of the United States
federal government, (w) any readily-marketable direct obligations issued by any other agency
of the United States federal government, any state of the United States or any political
subdivision of any such state or any public instrumentality thereof, in each case having a
rating of at least “A-1” from Standard & Poor’s Ratings Group or at least “P-1” from Moody’s
Investors Service, Inc., (x) any commercial paper rated at least “A-1” by Standard & Poor’s
Ratings Group or “P-1” by Moody’s Investors Service, Inc. and issued by any entity organized
under the laws of any state of the United States, (y) any U.S. dollar-denominated time
deposit, insured certificate of deposit, overnight bank deposit or bankers’ acceptance
issued or accepted by (i) Agent or (ii) any commercial bank that is (A) organized under the
laws of the United States, any state thereof or the District of Columbia, (B) “adequately
capitalized” (as defined in the regulations of its primary federal banking regulators) and
(C) has Tier 1 capital (as defined in such regulations) in excess of $250,000,000 or (z) shares of any United States money market fund that (i) has substantially all of its assets
invested continuously in the types of investments referred to in clause (v), (w), (x) or (y)
above with maturities as set forth in the proviso below, (ii) has net assets in excess of
$500,000,000 and (iii) has obtained from either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc. the highest rating obtainable for money market funds in the United
States; provided, however, that the maturities of all obligations specified
in any of clauses (v), (w), (x) and (y) above shall not exceed 365 days. For the avoidance
of doubt, Cash Equivalents does not include and each Borrower and Subsidiaries are
prohibited from purchasing, purchasing participations in,

-3-

 

entering into any type of swap or other equivalent derivative transaction, or otherwise holding
or engaging in any ownership interest in any type of debt instrument, including, without
limitation, any corporate or municipal bonds with a long-term nominal maturity for which the
interest rate is reset through a dutch auction and more commonly referred to as an auction
rate security.

     “Initial Public Offering” means a firm commitment underwritten public offering by
Borrower pursuant to an effective registration statement under the Securities Act of 1933,
as amended, covering the offer and sale of common stock for the account of Borrower to the
public and registered on a public securities exchange or an automated quotation system.

     “Liquidity” means, as of any date of determination, the sum of Revolving Loan
Availability plus unrestricted balance sheet cash and Cash Equivalents as of such date which
are (a) owned by Borrower, (b) maintained in Deposit Accounts or Securities Accounts subject
to a Deposit Account Control Agreement or Securities Account Control Agreement, (c) not
subject to any Lien other than a Lien in favor of Agent, (d) not pledged to or held by Agent
to secure a specified Obligation, and (e) not pledged to or held by Agent as an escrow or
reserve required under this Agreement.

     “Securities Account” means a “securities account” (as defined in Article 9 of the UCC),
an investment account, or other account in which Investment Property or Securities are held
or invested for credit to or for the benefit of any Borrower.

     “Securities Account Control Agreement” means an agreement, in form and substance
satisfactory to Agent, among Agent, any applicable Borrower and each securities intermediary
in which such Borrower maintains a Securities Account pursuant to which Agent shall obtain
“control” (as defined in Article 9 of the UCC) over such Securities Account.

          3.2 Section 2.1(b) (Revolving Loans). Section 2.1(b) of the Credit Agreement is hereby
amended by adding the following sentence immediately after the second sentence of such Section:

Borrowers shall also deliver to Agent a duly completed Minimum Liquidity Worksheet in the
form of Schedule 1 to the Compliance Certificate, setting forth calculations showing
compliance (both prior to the proposed borrowing and after giving effect to the proposed
borrowing) with the financial covenant set forth in Section 6.1 of this Agreement, together
with any supporting documentation requested by Agent, such Minimum Liquidity Worksheet and
supporting documentation to be delivered no later than noon (Chicago time) five days prior
to such proposed borrowing.

          3.3 Section 4.1 (Financial Statements and Other Reports).

          (a) Section 4.1(1) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing it with the following:

(1)(a) at all times prior to the Initial Public Offering, as soon as available, but no later
than forty-five (45) days after the last day of each month, a company prepared consolidated
balance sheet and income statement covering Borrower’s consolidated operations during the
period certified by a Responsible Officer and in a form acceptable to Agent, and (b) at all
times after the Initial Public Offering, as soon as available, but no later than
forty-five (45) days after the last day of each fiscal quarter of Borrower, a
company prepared consolidated balance sheet and income

-4-

 

statement covering Borrower’s consolidated operations during such period certified by a
Responsible Officer and in a form acceptable to Agent;

     (b) The penultimate sentence of Section 4.1 is hereby amended by deleting it in its
entirety and replacing it with the following:

     Notwithstanding the above, Borrower’s (i) 2006 and 2007 audited consolidated financial
statements prepared under GAAP, consistently applied, and the unqualified opinion with
regard to such financial statements from KPMG, and (ii) company prepared unaudited
consolidated balance sheet and income statement covering Borrower’s consolidated operations
during the months of January 2008 and February 2008 shall be due April 7, 2008.

          3.4 Section 6.1 (Fixed Charge Coverage Ratio). Section 6.1 of the Credit Agreement is hereby
amended by deleting it in its entirety and replacing it with the following:

     Section 6.1 Minimum Liquidity. Borrower shall maintain Liquidity at all times of not
less than the greater of (a) $5,000,000 or (b) the Cash Burn Amount as of the last day of
the month in which Borrower was last required to deliver financial statements pursuant to
Section 4.1(1) of this Agreement.

          3.5 Section 7.2 (Conditions of Each Loan, Support Agreement and Letter of Credit). Section
7.2(c) of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it
with the following:

     (c) the fact that, immediately before and after such borrowing or issuance, (i)
Borrower’s Liquidity shall not be less than the amount required under Section 6.1 above and
(ii) no other Default or Event of Default shall have occurred and be continuing;

          3.6 Section 11.3 (Notice). The addresses of Agent and Lender for all notices, requests and
other communications is hereby changed to the following:

GE Business Financial Services Inc.

c/o GE Healthcare Financial Services, Inc., LSF

83 Wooster Heights Road, Fifth Floor

Danbury, Connecticut 06810

Attention: Senior Vice President of Risk

Phone: (203) 205-5200

Facsimile: (203) 205-2192

With a copy to:

GE Business Financial Services Inc.

c/o GE Healthcare Financial Services, Inc.

Two Bethesda Metro Center, Suite 600

Bethesda, Maryland 20814

-5-

 

Attention: General Counsel

Phone: (301) 961-1640

Facsimile: (301) 664-9866

          3.6 Exhibit B (Compliance Certificate). The Fixed Charge Coverage Ratio Worksheet and EBITDA
Worksheet attached to Exhibit B of the Credit Agreement are amended by deleting them in
their entirety and replacing them with the Minimum Liquidity Worksheet attached hereto as
Schedule 1.

     4. Limitation of Waiver and Amendments.

          4.1 The waiver and amendments set forth in Sections 2 and 3 above, respectively, are effective
for the purposes set forth herein and shall be limited precisely as written and shall not be deemed
to (a) be a consent to any amendment, waiver or modification of any other term or condition of any
Financing Document, or (b) otherwise prejudice any right or remedy which Lender or Agent may now
have or may have in the future under or in connection with any Financing Document.

          4.2 This Agreement shall be construed in connection with and as part of the Financing
Documents and all terms, conditions, representations, warranties, covenants and agreements set
forth in the Financing Documents, are hereby ratified and confirmed and shall remain in full force
and effect.

     5. Representations and Warranties. To induce Lender and Agent to enter into this Agreement,
Borrower hereby represents and warrants to Lender and Agent as follows:

          5.1 Immediately after giving effect to this Agreement (a) the representations and warranties
contained in the Financing Documents are true, accurate and complete in all material respects as of
the date hereof (except to the extent such representations and warranties relate to an earlier
date, in which case they are true and correct as of such date), and (b) no Default or Event of
Default has occurred and is continuing;

          5.2 Borrower has the power and due authority to execute and deliver this Agreement and to
perform its obligations under the Credit Agreement, as amended hereby;

          5.3 The execution and delivery by Borrower of this Agreement and the performance by Borrower
of its obligations under the Credit Agreement, as amended hereby, have been duly authorized by all
necessary action on the part of Borrower;

          5.4 The organizational documents of Borrower most recently delivered to Agent remain
true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

          5.5 The execution and delivery by Borrower of this Agreement and the performance by Borrower
of its obligations under the Credit Agreement, as amended hereby, do not and will not contravene
(a) any law or regulation binding on or affecting Borrower, (b) any material contractual
restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d)
the organizational documents of Borrower;

          5.6 The execution and delivery by Borrower of this Agreement and the performance by Borrower
of its obligations under the Credit Agreement, as amended hereby, do not require any order,
consent, approval, license, authorization or validation of, or filing, recording or registration
with, or exemption by any governmental or public body or authority, or subdivision thereof, binding
on Borrower, except as already has been obtained or made;

-6-

 

          5.7 This Agreement has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights.

     6. Counterparts. This Agreement may be executed in any number of counterparts and all of
such counterparts taken together shall be deemed to constitute one and the same instrument.
Delivery of an executed counterpart of this Agreement by facsimile or other electronic method of
transmission shall be equally as effective as delivery of an original executed counterpart of this
Agreement. Any party delivering an executed counterpart of this Agreement by facsimile or other
electronic method of transmission also shall deliver an original executed counterpart of this
Agreement but the failure to deliver an original executed counterpart shall not affect the
validity, enforceability or binding effect of this Agreement.

     7. Borrower
hereby agrees to pay to Lender a non-refundable amendment fee in the
amount of Twelve Thousand Five Hundred Dollars ($12,500) in
connection with the waivers and amendments set forth herein, of which
Ten Thousand Dollars ($10,000) shall be paid by wire transfer on
March 31, 2008 and Two Thousand Five Hundred Dollars
($2,500) shall be paid by wire transfer on April 1, 2008.

     8. Effectiveness. This Agreement shall be deemed effective upon (a) the due execution and
delivery to Agent of this Agreement by each party hereto,
(b) Borrower’s payment of Ten Thousand Dollars
($10,000) of the Amendment Fee and (c) Borrower’s payment of Agent’s and
Lender’s outstanding legal fees and expenses incurred in connection with the Financing Documents
and the transactions described hereunder.

     9. Governing Law. This Agreement and the rights and obligations of the parties hereto shall
be governed by and construed in accordance with the laws of the State of Illinois.

     10. Integration. This Agreement and the Financing Documents represent the entire agreement
about this subject matter and supersede prior negotiations or agreements. All prior agreements,
understandings, and negotiations between the parties about the subject matter of this Agreement,
and the Financing Documents merge into this Agreement and the Financing Documents.

[Signature page follows immediately.]

-7-

 

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

	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 
	 	 	BIOTROVE, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Albert A. Luderer
	 

	 	 	 	 
	 

	 	 	 	Name: Albert A. Luderer
	 

	 	 	 	Title: CEO
	 
	 	 	 	 
	 	 	AGENT AND LENDER:
	 
	 	 	 	 
	 	 	GE BUSINESS FINANCIAL SERVICES INC.
	 	 	(formerly known
as Merrill Lynch Business Financial Services Inc.)
	 
	 	 	 	 
	 

	 	By:	 	/s/ Jason Dufour
	 

	 	 	 	 
	 

	 	 	 	Name: Jason Dufour
	 

	 	 	 	Title: Its Duly Authorized Signatory

SIGNATURE PAGE TO WAIVER AND THIRD AMENDMENT TO CREDIT AND SECURITY AGREEMENT

 

 

EXHIBIT A

Letter Agreement

See Exhibit 10.1 to the Registrant’s Registration Statement filed on Form S-1.

 

 

EXHIBIT B

Waivers

WAIVER 

     WHEREAS, the undersigned party (an “Investor”) purchased securities of BioTrove, Inc., a
Delaware corporation (the “Company”), pursuant to one or more agreements (collectively, the
“Agreements”), including, but not limited to, the following: (1) that certain Note and Warrant
Subscription Agreement between the Company and the Investors identified therein, dated as of
January 22, 2007, as amended on February 12, 2007, May 4, 2007 and May 16, 2007 (the “January Note
Agreement”); and (2) that certain Note Subscription Agreement between the Company and the Investors
identified therein, dated as of December 10, 2007, as amended on January 23, 2008, February 14,
2008 and March 17, 2008 (the “December Note Agreement”);

     WHEREAS, the Agreements contain certain representations, warranties, covenants and conditions
(collectively, “Provisions”) that the Company breached as a result of the following: (1) the
Company’s breach of Section 3.1(h) of that certain Exclusive Patent License Agreement (the “MIT
License”) between the Company and the Massachusetts Institute of Technology (“MIT”), dated as of
May 11, 2001, as amended on November 17, 2004, December 21, 2004, February 8, 2005 and March 10,
2008 (the “MIT Breach”); (2) the Company’s consequent (a) Event of Default under that certain
Credit and Security Agreement between the Company and Merrill Lynch Capital (“Merrill Lynch”),
dated as of October 26, 2006, as amended on April 26, 2007, February 1, 2008, and March 17, 2008
(the “Merrill Credit Agreement”); (b) breach of representations and warranties under that certain
Consent Agreement between the Company and Merrill Lynch, dated as of January 22, 2007; (c) breach
of representations and warranties under that certain First Amendment to Consent Agreement between
the Company and Merrill Lynch, dated as of May 4, 2007; (d) breach of representations and
warranties under that certain Consent Agreement between the Company and Merrill Lynch dated as of
November 19, 2007; (e) breach of representations and warranties under that certain Consent
Agreement between the Company and Merrill Lynch, dated as of December 10, 2007; (f) breach of
representations and warranties under that certain First Amendment to Consent Agreement and Waiver
and Amendment to First Amendment to Credit and Security Agreement between the Company and Merrill
Lynch, dated as of February 1, 2008; and (g) breach of representations and warranties under that
certain Second Amendment to Consent Agreement, dated as of March 17, 2008; and the Company’s
failure to comply with certain covenants and obligations under the Merrill Credit Agreement, as
amended (collectively, the “Merrill Breaches”); and (3) the Company’s breach of any cross-default
provision, covenant to notify, representation, warranty, or other covenant contained in any other
agreement to which the Company is or was a party resulting from the MIT Breach or the Merrill
Breaches (collectively, the “Other Breaches”);

 

 

     WHEREAS, as a result of that certain letter amendment to the MIT License between the Company
and MIT, dated as of March 10, 2008 and effective on March 13, 2008, the Company is no longer in
breach of the MIT License;

     WHEREAS, GE Business Financial Services Inc. (formerly known as Merrill Lynch Business
Financial Services Inc.) has agreed to enter into a Waiver and Third Amendment to Credit and
Security Agreement, subject to the waiver of any and all past breaches of, or failures to satisfy
or comply with, Provisions of the Agreements; and

     WHEREAS, the Company wishes to proceed with additional financings.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees
as follows:

1. Any and all past breaches of, or failures to satisfy or comply with, Provisions of the
Agreements caused by the MIT Breach, the Merrill Breaches or the Other Breaches through the date
hereof are hereby waived.

2. This Waiver may be executed in any number of counterparts, each of which shall constitute an
original, but all of which, when taken together, shall constitute one and the same instrument, and
shall become effective as to all parties to the Agreements when counterparts have been executed and
delivered to the Company by the requisite percentage of Investors required for waivers under the
terms of each Agreement.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

-2-

 

IN WITNESS WHEREOF, the undersigned has executed this Waiver as of March ___, 2008.

	 	 	 
	 

	 	For an Individual:
	 
	 	 
	 

	 	 
	 

	 	Print Name and Address Below:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	For an Entity:
	 
	 	 
	 

	 	 
	 

	 	Duly authorized
	 
	 	 
	Print Entity Name and
Address and Your
	 	 
	Title and Address Below:
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

-3-

 

	 	 	 	 	 
	 	 	Company:
	 	 	BIOTROVE, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

-4-

 

Minimum Liquidity Worksheet (Attachment to Compliance Certificate)

	 	 	 	 	 
	A. Revolving Loan Availability
	 	$	          	 
	 
	 	 	 
	 
	 	 	 	 
	B. Cash and Cash Equivalents which are (a) owned by Borrower, (b) maintained
in Deposit Accounts or Securities Accounts subject to a Deposit Account
Control Agreement or Securities Account Control Agreement, (c) not subject to
any Lien other than a Lien in favor of Agent, (d) not pledged to or held by
Agent to secure a specified Obligation, and (e) not pledged to or held by
Agent as an escrow or reserve required under this Agreement:
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	C. Net income (loss) (for the 6-month period most recently ended)
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	D. Depreciation and amortization (for the 6-month period most recently ended):
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	E. Non-financed capital expenditures (for the 6-month period most recently
ended):
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	F. Payments made on account of interest bearing liabilities during the
6-month period most recently ended:
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	G. Liquidity: (Line A plus Line B):
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	H. Cash Burn Amount (Line E plus Line F, minus Line C, minus Line D):
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	I. Minimum Liquidity (the greater of (a) $5,000,000 or (b) the amount in Line
	 	 	 	 
	H):
	 	$	 	 
	 
	 	 	 
	 
	 	 	 	 
	In Compliance:
	 	Yes No
	Is Line G equal to or greater than Line I?
	 	 	 	 

-5-

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