Document:

exv4w1

Exhibit 4.1

 

MEDTRONIC, INC.

 

Third Supplemental Indenture

Dated as of March 15, 2011

 

(Third Supplemental to the Indenture Dated as of March 12, 2009)

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

 

 

     THIRD SUPPLEMENTAL INDENTURE, dated as of March 15, 2011, between Medtronic, Inc., a
corporation duly organized and existing under the laws of Minnesota (herein called the “Company”),
and Wells Fargo Bank, National Association, as Trustee (herein called “Trustee”);

RECITALS:

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated
as of March 12, 2009 (the “Base Indenture”), providing for the issuance from time to time of the
Company’s debentures, notes or other evidences of indebtedness (herein and therein called the
“Securities”), to be issued in one or more series as provided in the Base Indenture;

     WHEREAS, Section 9.01 of the Base Indenture permits the Company and the Trustee to enter into
an indenture supplemental to the Base Indenture to establish the form and terms of any series of
Securities;

     WHEREAS, Section 2.01 of the Base Indenture permits the form of Securities of any series to be
established in an indenture supplemental to the Base Indenture;

     WHEREAS, Section 3.01 of the Base Indenture permits certain terms of any series of Securities
to be established pursuant to an indenture supplemental to the Base Indenture;

     WHEREAS, pursuant to Sections 2.01 and 3.01 of the Base Indenture, the Company desires to
provide for the establishment of two new series of Securities under the Base Indenture, the form
and substance of such Securities and the terms, provisions and conditions thereof to be set forth
as provided in the Base Indenture and this Third Supplemental Indenture;

     WHEREAS, all things necessary to make this Third Supplemental Indenture a valid agreement of
the Company, in accordance with its terms, have been done;

     NOW, THEREFORE, THIS THIRD SUPPLEMENTAL INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities of each of the two
series established by this Third Supplemental Indenture by the holders thereof (the “Noteholders”),
it is mutually agreed, for the equal and proportionate benefit of all such Noteholders, as follows:

ARTICLE 1

Definitions and Other Provisions of General Application 

     Section 1.01. Relation to Base Indenture. This Third Supplemental Indenture
constitutes a part of the Base Indenture (the provisions of which, as modified by this Third
Supplemental Indenture, shall apply to the Notes (as defined herein)) in respect of the Notes but
shall not modify, amend or otherwise affect the Base Indenture insofar as it relates to any other
series of Securities or modify, amend or otherwise affect in any manner the terms and conditions of
the Securities of any other series.

 

 

     Section 1.02. Definitions. For all purposes of this Third Supplemental Indenture,
the capitalized terms used herein (i) which are defined in this Section 1.02 have the respective
meanings assigned hereto in this Section 1.02 and (ii) which are defined in the Base Indenture (and
which are not defined in this Section 1.02) have the respective meanings assigned thereto in the
Base Indenture. For all purposes of this Third Supplemental Indenture:

     (a) Unless the context otherwise requires, any reference to an Article or Section
refers to an Article or Section, as the case may be, of this Third Supplemental Indenture;

     (b) The words “herein,” “hereof” and “hereunder” and words of similar import refer
to this Third Supplemental Indenture as a whole and not to any particular Article, Section or other
subdivision; and

     (c) The terms defined in this Section 1.02(c) have the meanings assigned to them in
this Section and include the plural as well as the singular:

     “Interest Payment Date” has the meaning set forth in Section 2.01(d).

     “Interest Period” has the meaning set forth in Section 2.01(d).

     “Maturity Date” has the meaning set forth in Section 2.01(c).

     “Notes” has the meaning set forth in Section 2.01(a).

     “2016 Notes” has the meaning set forth in Section 2.01(a)

     “2021 Notes” has the meaning set forth in Section 2.01(a)

ARTICLE 2

General Terms and Conditions of the Notes

     Section 2.01. Terms of Notes. Pursuant to Sections 2.01 and 3.01 of the Base
Indenture, there is hereby established two series of Securities, the terms of which shall be as
follows:

     (a) Designation. The Securities of these series shall be known and designated as
the “2.625% Notes due 2016” (the “2016 Notes”) and “4.125% Notes due 2021” (the “2021 Notes” and
together with the 2016 Notes, the “Notes”) of the Company. The CUSIP number of the 2016 Notes is
585055 AU0 and the CUSIP number of the 2021 Notes is 585055 AV8.

     (b) Form and Denominations. The Notes will be issued only in fully registered form,
and the authorized denominations of the Notes shall be $2,000 principal amount and any integral
multiple of $1,000 in excess thereof. The 2016 Notes will initially be issued in the form of one
or more Global Securities substantially in the form of Annex A attached hereto, with such
modifications thereto as may be approved by the authorized officer executing the same. The 2021
Notes will initially be issued in the form of one or more Global Securities substantially in the
form of Annex B attached hereto,

2

 

with such modifications thereto as may be approved by the authorized officer executing the
same. The Notes will be denominated in U.S. dollars and payments of principal and interest will be
made in U.S. dollars.

     (c) Maturity Date. The principal amount of, and all accrued and unpaid interest on,
the Notes shall be payable in full on March 15, 2016 for the 2016 Notes, and March 15, 2021 for the
2021 Notes, or if such days are not Business Days, the following Business Day (each, the “Maturity
Date’’).

     (d) Interest. Interest payable on any Interest Payment Date (as defined below), the
Maturity Date or, if applicable, the Redemption Date (as defined in the Base Indenture), shall be
the amount accrued from, and including, the immediately preceding Interest Payment Date in respect
of which interest has been paid or duly provided for (or from and including the original issue date
of March 15, 2011, if no interest has been paid or duly provided for with respect to the Notes) to
but excluding such Interest Payment Date, Maturity Date or, if applicable, Redemption Date, as the
case may be (each, an “Interest Period”). The Notes will bear interest at the rate of 2.625% for
the 2016 Notes and 4.125% for the 2021 Notes per year from the original issue date thereof to the
respective Maturity Date. Interest on the Notes shall be payable semi-annually in arrears on March
15 and September 15 of each year, beginning on September 15, 2011 (each such date, an “Interest
Payment Date”). The amount of interest payable for any semi-annual Interest Period will be
computed on the basis of a 360-day year consisting of twelve 30-day months. The amount of interest
payable for any period shorter than a full semi-annual Interest Period for which interest is
computed will be computed on the basis of the actual number of days elapsed per 30-day month. In
the event any Interest Payment Date on or before the Maturity Date falls on a day that is not a
Business Day, the interest payment due on that date will be postponed to the next day that is a
Business Day and no interest shall accrue as a result of such postponement.

     In the event the Maturity Date or a Redemption Date for any Note falls on a day that is not a
Business Day, then the related payments of principal, premium, if any, and interest may be made on
the next succeeding date that is a Business Day (and no additional interest will accumulate on the
amount payable for the period from and after the Maturity Date for such Note). Interest due on the
Maturity Date or a Redemption Date (in each case, whether or not an Interest Payment Date) will be
paid to the Person to whom principal of such Notes is payable.

     (e) To Whom Interest is Payable. Interest shall be payable to the Person in whose
name the Notes are registered at the close of business on the Regular Record Date for such
interest, which shall be the March 1 or September 1 (whether or not a Business Day), as the case
may be, next preceding the Interest Payment Date, or, in the event the Notes cease to be held in
the form of one or more Global Securities, at the close of business on the date 15 days prior to
that Interest Payment Date, whether or not a Business Day.

     (f) Sinking Fund; Noteholder Repurchase Right. The Notes shall not be subject to
any sinking fund or analogous provision or be redeemable at the option of the Noteholders.

3

 

     (g) Registrar, Paying Agent, Authenticating Agent and Place of Payment. The Company
hereby appoints Wells Fargo Bank, National Association as Security Registrar and Paying Agent and
accepts Wells Fargo Bank, National Association as Authentication Agent with respect to the Notes.
The Notes may be surrendered for registration of transfer and for exchange at the office or agency
of the Company maintained for such purpose in the City of New York, New York and at any other
office or agency maintained by the Company for such purpose. The Place of Payment for the Notes
shall be the Paying Agent’s office.

     Payments on the Notes, other than payment of interest due at Maturity, may be made, in the
case of a Noteholder of at least $5,000,000 aggregate principal amount of Notes of any one series,
by wire transfer to a U.S. dollar account maintained by the payee with a bank in New York City, if
such Noteholder elects payment by wire transfer by giving written notice to the Paying Agent to
such effect and designating such account no later than 15 days immediately preceding the relevant
Interest Payment Date (or such other date as the Paying Agent may accept in its discretion).

     (h) Defeasance. Until the Maturity Date, the Notes will be subject to Sections
13.02 and 13.03 of the Base Indenture.

ARTICLE 3

Supplemental Indentures

     Section 3.01. Supplemental Indentures with Consent of Noteholders. As set forth in
Section 9.02 of the Base Indenture, with the consent of the Noteholders of a majority in the
aggregate principal amount of Notes of each series affected by such supplemental indenture at the
time outstanding, the Company and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental to the Base Indenture for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of the Base Indenture or this
Third Supplemental Indenture or of modifying in any manner the rights of the Noteholders.

ARTICLE 4

Miscellaneous

     Section 4.01. Relationship to Existing Base Indenture. This Third Supplemental
Indenture is a supplemental indenture within the meaning of the Base Indenture. The Base
Indenture, as supplemented and amended by this Third Supplemental Indenture, is in all respects
ratified, confirmed and approved and, with respect to the Notes, the Base Indenture, as
supplemented and amended by this Third Supplemental Indenture, shall be read, taken and construed
as one and the same instrument.

     Section 4.02. Modification of the Existing Base Indenture. Except as expressly
modified by this Third Supplemental Indenture, the provisions of the Base Indenture shall govern
the terms and conditions of the Notes.

     Section 4.03. Governing Law. This instrument shall be governed by and construed in
accordance with the laws of the State of New York and of the United States.

4

 

     Section 4.04. Counterparts. This instrument may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

     Section 4.05. Trustee Makes No Representation. The recitals contained herein are
made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the
correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this
Third Supplemental Indenture (except for its execution thereof and its certificates of
authentication of the Notes).

[Signature Page Follows]

5

 

     IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to
be duly executed and attested all as of the day and year first above written.

	 	 	 	 	 
	 	MEDTRONIC, INC.

 	 
	 	By:  	/s/ Gary L. Ellis
 	 
	 	 	Gary L. Ellis 	 
	 	 	Senior Vice President and Chief Financial Officer 	 

	 	 	 	 	 
	Attest:

 	 
	By:  	/s/ Keyna P. Skeffington
 	 
	 	Keyna P. Skeffington 	 
	 	Vice President and Deputy General Counsel 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Linda Harty
 	 
	 	 	Linda Harty 	 
	 	 	Treasurer 	 
	 

	 	 	 	 	 
	Attest:

 	 
	By:  	/s/ Keyna P. Skeffington
 	 
	 	Keyna P. Skeffington 	 
	 	Vice President and Deputy General Counsel 	 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL
     ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Jayne E. Sillman
 	 
	 	 	Name:  	Jayne E. Sillman 	 
	 	 	Title:  	Vice President 	 

6

 

	 	 	 	 	 

ANNEX A

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE
OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

MEDTRONIC, INC.

			
	 	 	 
	No.                    
	 	CUSIP NO.                    
	 
	 	$                    

     Medtronic, Inc., a corporation duly incorporated and subsisting under the laws of the State of
Minnesota (herein called the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of                      Dollars on                      and to pay interest thereon from                      or from the
most recent Interest Payment Date to which interest has been paid or duly provided for, on                      and                      in
each year, commencing                     , at the rate of                     % per annum, until the principal hereof is paid or made
available for payment.

     The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the                      or                      (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture.

A-1

 

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Trustee maintained for that purpose, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and
private debts.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

A-2

 

     In Witness Whereof, the Company has caused this instrument to be duly executed under
its corporate seal.

Dated:

	 	 	 	 	 
	 	Medtronic, Inc.

 	 
	 	By:  	 	 

	 	 	 	 	 
	Attest:

 	 
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 

	 	 	 	 	 
	Attest:

 	 
	 	 

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     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	Wells Fargo Bank, National Association,
    as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 

A-4

 

[Reverse of Note]

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
March 12, 2009 (herein called the “Base Indenture,” which term shall have the meaning assigned to
it in such instrument), as supplemented by a Third Supplemental Indenture, dated as of March 15,
2011 (together with the Base Indenture, the “Indenture”), between the Company and Wells Fargo Bank,
National Association, as Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face
hereof, initially limited in aggregate principal amount to $                     . The Company may at any time issue
additional securities under the Indenture in unlimited amounts having the same terms as the
Securities (except for issue price and issue date and, in some cases, the first Interest Payment
Date); provided that no additional securities of a series may be issued if an Event of Default has
occurred and is continuing with respect to such series of securities.

     The Securities of this series are subject to redemption, as a whole or from time to time in
part, upon not less than 30 nor more than 60 days’ notice mailed to each Holder of Securities to be
redeemed at his address as it appears in the Securities Register, on any date prior to their Stated
Maturity at a Redemption Price equal to the greater of (i) 100% of the principal amount of such
Securities to be redeemed, plus accrued and unpaid interest thereon to the Redemption Date or (ii)
as determined by a Quotation Agent (as defined below), the sum of the present values of the
remaining scheduled payments of principal and interest of such Securities to be redeemed (not
including any portion of such payments of interest accrued and paid as of the Redemption Date)
discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Adjusted Treasury Rate (as defined below), plus                      basis points, plus
accrued and unpaid interest thereon to the Redemption Date; provided that unless the Company
defaults in payment of the Redemption Price, on or after the Redemption Date, interest will cease
to accrue on the Securities or portions thereof called for redemption; provided further that the
principal amount of a Security remaining Outstanding after a redemption in part shall be $2,000 or
an integral multiple of $1,000 in excess thereof.

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date. The semi-annual equivalent yield to maturity
will be computed as of the third business day immediately preceding the Redemption Date.
“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation
Agent as having a maturity comparable to the remaining term of the Securities to be redeemed that
would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the remaining term of
such Securities. “Comparable Treasury Price” means, with respect to any Redemption Date, (1) the
average of the Reference

A-5

 

Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest
Reference Treasury Dealer Quotations, (2) if the Trustee obtains fewer than three Reference
Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations so received or
(3) if only one Reference Treasury Dealer Quotation is received, such quotation. “Quotation Agent”
means the Reference Treasury Dealer appointed by the Company. “Reference Treasury Dealer” means
(i) each of Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and
RBS Securities Inc. and their respective successors; provided, however, that, if the foregoing
shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury
Dealer”), the Company shall substitute therefor another Primary Treasury Dealer; and (ii) any other
Primary Treasury Dealer selected by the Company. “Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case
as a percentage of its principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such
Redemption Date.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Security or certain restrictive covenants and Events of Default with respect to this Security,
in each case upon compliance with certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture, at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of at least 25% in

A-6

 

principal amount of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such Event of Default as
Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from
the Holders of a majority in principal amount of Securities of this series at the time Outstanding
a direction inconsistent with such request, and shall have failed to institute any such proceeding,
for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective due dates expressed
herein.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or the Holder’s attorney duly authorized in
writing, and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form in denominations of $2,000
and any integral multiple of $1,000 in excess thereof. As provided in the Indenture and subject to
certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made to a Holder for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

A-7

 

ANNEX B

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE
OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

MEDTRONIC, INC.

			
	No.                     
	 	CUSIP NO.                     

$                    

     Medtronic, Inc., a corporation duly incorporated and subsisting under the laws of the State of
Minnesota (herein called the “Company,” which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of                      Dollars on                      and to pay interest thereon from                      or from the
most recent Interest Payment Date to which interest has been paid or duly provided for, on                      and                      in
each year, commencing                     , at the rate of                     % per annum, until the principal hereof is paid or made
available for payment.

     The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one
or more Predecessor Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the                      or                      (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture.

B-1

 

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Trustee maintained for that purpose, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and
private debts.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

B-2

 

     In Witness Whereof, the Company has caused this instrument to be duly executed under
its corporate seal.

	 	 	 	 	 

	Dated:
	 	 	 	 
	 
	 	 	 	 
	 	 	Medtronic, Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

B-3

 

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	Wells Fargo Bank, National Association,

     as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signature 	 
	 	 	 	 

B-4

 

	 	 	 	 	 

[Reverse of Note]

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
March 12, 2009 (herein called the “Base Indenture,” which term shall have the meaning assigned to
it in such instrument), as supplemented by a Third Supplemental Indenture, dated as of March 15,
2011 (together with the Base Indenture, the “Indenture”), between the Company and Wells Fargo Bank,
National Association, as Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face
hereof, initially limited in aggregate principal amount to $                     . The Company may at any time issue
additional securities under the Indenture in unlimited amounts having the same terms as the
Securities (except for issue price and issue date and, in some cases, the first Interest Payment
Date); provided that no additional securities of a series may be issued if an Event of Default has
occurred and is continuing with respect to such series of securities.

     The Securities of this series are subject to redemption, as a whole or from time to time in
part, upon not less than 30 nor more than 60 days’ notice mailed to each Holder of Securities to be
redeemed at his address as it appears in the Securities Register, (1) on any date prior to                      (three
months prior to their Stated Maturity) at a Redemption Price equal to the greater of (i) 100% of
the principal amount of such Securities to be redeemed, plus accrued and unpaid interest thereon to
the Redemption Date or (ii) as determined by a Quotation Agent (as defined below), the sum of the
present values of the remaining scheduled payments of principal and interest of such Securities to
be redeemed (not including any portion of such payments of interest accrued and paid as of the
Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below), plus                      basis
points, plus accrued and unpaid interest thereon to the Redemption Date, and (2) on any date on and
after                      at a Redemption Price equal to 100% of the principal amount of such Securities to be
redeemed, plus accrued and unpaid interest thereon to the Redemption Date; provided in each case
that unless the Company defaults in payment of the Redemption Price, on or after the Redemption
Date, interest will cease to accrue on the Securities or portions thereof called for redemption;
provided further that the principal amount of a Security remaining Outstanding after a redemption
in part shall be $2,000 or an integral multiple of $1,000 in excess thereof.

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date. The semi-annual equivalent yield to maturity
will be computed as of the third business day immediately preceding the Redemption Date.
“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation
Agent as having a maturity comparable to the remaining term of the Securities to be redeemed that
would be utilized, at the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of

B-5

 

comparable maturity to the remaining term of such Securities. “Comparable Treasury Price”
means, with respect to any Redemption Date, (1) the average of the Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury
Dealer Quotations, (2) if the Trustee obtains fewer than three Reference Treasury Dealer
Quotations, the average of all Reference Treasury Dealer Quotations so received or (3) if only one
Reference Treasury Dealer Quotation is received, such quotation. “Quotation Agent” means the
Reference Treasury Dealer appointed by the Company. “Reference Treasury Dealer” means (i) each of
Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and RBS
Securities Inc. and their respective successors; provided, however, that, if the foregoing shall
cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury
Dealer”), the Company shall substitute therefor another Primary Treasury Dealer; and (ii) any other
Primary Treasury Dealer selected by the Company. “Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case
as a percentage of its principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such
Redemption Date.

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Security or certain restrictive covenants and Events of Default with respect to this Security,
in each case upon compliance with certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture, at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless

B-6

 

such Holder shall have previously given the Trustee written notice of a continuing Event of
Default with respect to the Securities of this series, the Holders of at least 25% in principal
amount of the Securities of this series at the time Outstanding shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or the Holder’s attorney duly authorized in
writing, and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form in denominations of $2,000
and any integral multiple of $1,000 in excess thereof. As provided in the Indenture and subject to
certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made to a Holder for any such registration of transfer or exchange,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

B-7exv10w27

Exhibit 10.27

Execution Copy

AMENDED AND RESTATED CREDIT AGREEMENT

by and between

UNIVERSAL ELECTRONICS INC.

and

U.S. BANK NATIONAL ASSOCIATION

Dated as of November 1, 2010

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. Defined Terms
	 	 	1	 
	Section 1.2. Accounting Terms and Calculations
	 	 	11	 
	Section 1.3. Computation of Time Periods
	 	 	11	 
	Section 1.4. Other Definitional Terms
	 	 	11	 
	 
	 	 	 	 
	ARTICLE II. TERMS OF THE CREDIT FACILITIES
	 	 	12	 
	 
	 	 	 	 
	Section 2.1. The Commitments
	 	 	12	 
	Section 2.2. Procedure for Revolving Loans
	 	 	12	 
	Section 2.3. The Notes
	 	 	12	 
	Section 2.4. Interest Rates; Conversions and Continuations; Etc.
	 	 	13	 
	Section 2.5. Payment of Interest and Principal of Loans
	 	 	14	 
	Section 2.6. Prepayments
	 	 	15	 
	Section 2.7. Letters of Credit
	 	 	15	 
	Section 2.8. Procedures for Letters of Credit
	 	 	15	 
	Section 2.9. Terms of Letters of Credit
	 	 	15	 
	Section 2.10. Agreement to Repay Letter of Credit Drawings
	 	 	16	 
	Section 2.11. Obligations Absolute
	 	 	16	 
	Section 2.12. Outstanding Letters of Credit Following Event of Default
	 	 	17	 
	Section 2.13. Revolving Loans to Cover Unpaid Drawings
	 	 	17	 
	Section 2.14. Facility Fees and Letter of Credit Fees
	 	 	17	 
	Section 2.15. Computation
	 	 	18	 
	Section 2.16. Payments
	 	 	18	 
	Section 2.17. Revolving Commitment Ending Date
	 	 	18	 
	Section 2.18. Use of Proceeds
	 	 	18	 
	Section 2.19. Taxes
	 	 	18	 
	Section 2.20. Effect of Existing Credit Agreement
	 	 	19	 
	 
	 	 	 	 
	ARTICLE III. CONDITIONS PRECEDENT
	 	 	19	 
	 
	 	 	 	 
	Section 3.1. Conditions of Initial Transaction
	 	 	19	 
	Section 3.2. Conditions Precedent to the Term Loan and all Revolving Loans
and Letters of Credit
	 	 	23	 
	 
	 	 	 	 
	ARTICLE IV. REPRESENTATIONS AND WARRANTIES
	 	 	23	 
	 
	 	 	 	 
	Section 4.1. Organization, Standing, Etc.
	 	 	23	 
	Section 4.2. Authorization and Validity
	 	 	24	 
	Section 4.3. No Conflict; No Default
	 	 	24	 
	Section 4.4. Government Consent
	 	 	24	 
	Section 4.5. Financial Statements and Condition
	 	 	24	 
	Section 4.6. Litigation
	 	 	25	 
	Section 4.7. Environmental, Health and Safety Laws
	 	 	25	 

i

 

	 	 	 	 	 

	Section 4.8. ERISA
	 	 	25	 
	Section 4.9. Federal Reserve Regulations
	 	 	26	 
	Section 4.10. Title to Property; Leases; Liens; Subordination
	 	 	26	 
	Section 4.11. Taxes
	 	 	26	 
	Section 4.12. Trademarks; Patents
	 	 	26	 
	Section 4.13. Burdensome Restrictions
	 	 	26	 
	Section 4.14. Force Majeure
	 	 	27	 
	Section 4.15. Investment Company Act
	 	 	27	 
	Section 4.16. Retirement Benefits
	 	 	27	 
	Section 4.17. Full Disclosure
	 	 	27	 
	Section 4.18. Subsidiaries
	 	 	27	 
	Section 4.19. Labor Matters
	 	 	27	 
	Section 4.20. Solvency
	 	 	27	 
	Section 4.21. Representations and Warranties of Seller
	 	 	28	 
	 
	 	 	 	 
	ARTICLE V. AFFIRMATIVE COVENANTS
	 	 	28	 
	 
	 	 	 	 
	Section 5.1. Financial Statements and Reports
	 	 	28	 
	Section 5.2. Existence
	 	 	30	 
	Section 5.3. Insurance
	 	 	30	 
	Section 5.4. Payment of Taxes and Claims
	 	 	30	 
	Section 5.5. Inspection
	 	 	30	 
	Section 5.6. Maintenance of Properties
	 	 	31	 
	Section 5.7. Books and Records
	 	 	31	 
	Section 5.8. Compliance
	 	 	31	 
	Section 5.9. ERISA
	 	 	31	 
	Section 5.10. Environmental Matters; Reporting
	 	 	31	 
	Section 5.11. Further Assurances
	 	 	32	 
	Section 5.12. Compliance with Terms of Material Contracts
	 	 	32	 
	Section 5.13. Maintenance of Bank Accounts
	 	 	32	 
	Section 5.14. Additional Restricted Subsidiaries
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VI. NEGATIVE COVENANTS
	 	 	32	 
	 
	 	 	 	 
	Section 6.1. Merger
	 	 	33	 
	Section 6.2. Disposition of Assets
	 	 	33	 
	Section 6.3. Plans
	 	 	33	 
	Section 6.4. Change in Nature of Business
	 	 	33	 
	Section 6.5. Negative Pledges; Subsidiary Restrictions
	 	 	33	 
	Section 6.6. Restricted Payments
	 	 	34	 
	Section 6.7. Transactions with Affiliates
	 	 	34	 
	Section 6.8. Accounting Changes; Acquisition Documents
	 	 	34	 
	Section 6.9. Subordinated Debt
	 	 	34	 
	Section 6.10. Investments
	 	 	34	 
	Section 6.11. Indebtedness
	 	 	35	 
	Section 6.12. Liens
	 	 	36	 
	Section 6.13. Contingent Liabilities
	 	 	37	 

ii

 

	 	 	 	 	 

	Section 6.14. Cash Flow Leverage Ratio
	 	 	37	 
	Section 6.15. Fixed Charge Coverage Ratio
	 	 	37	 
	Section 6.16. Quick Ratio
	 	 	37	 
	Section 6.17. Loan Proceeds
	 	 	37	 
	Section 6.18. Sale and Leaseback Transactions
	 	 	37	 
	Section 6.19. Rate Protection and Foreign Currency Hedging Agreements
	 	 	37	 
	 
	 	 	 	 
	ARTICLE VII. EVENTS OF DEFAULT AND REMEDIES
	 	 	37	 
	 
	 	 	 	 
	Section 7.1. Events of Default
	 	 	37	 
	Section 7.2. Remedies
	 	 	39	 
	Section 7.3. Deposit Accounts; Offset
	 	 	39	 
	 
	 	 	 	 
	ARTICLE VIII. MISCELLANEOUS
	 	 	40	 
	 
	 	 	 	 
	Section 8.1. Modifications
	 	 	40	 
	Section 8.2. Expenses
	 	 	40	 
	Section 8.3. Waivers, Etc.
	 	 	40	 
	Section 8.4. Notices
	 	 	40	 
	Section 8.5. Taxes
	 	 	41	 
	Section 8.6. Successors and Assigns; Participations; Purchasing Banks
	 	 	41	 
	Section 8.7. Confidentiality of Information
	 	 	42	 
	Section 8.8. Governing Law and Construction
	 	 	43	 
	Section 8.9. Consent to Jurisdiction
	 	 	43	 
	Section 8.10. Judicial Reference Agreement
	 	 	43	 
	Section 8.11. Survival of Agreement
	 	 	45	 
	Section 8.12. Indemnification
	 	 	45	 
	Section 8.13. Captions
	 	 	46	 
	Section 8.14. Entire Agreement
	 	 	46	 
	Section 8.15. Counterparts
	 	 	46	 
	Section 8.16. Borrower Acknowledgements
	 	 	46	 
	Section 8.17. Interest Rate Limitation
	 	 	46	 

iii

 

AMENDED AND RESTATED CREDIT AGREEMENT

     THIS AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”), dated as of November 1,
2010, is by and between UNIVERSAL ELECTRONICS INC., a corporation organized under the laws of the
State of Delaware (the “Borrower”), and U.S. BANK NATIONAL ASSOCIATION, a national banking
association (the “Bank”).

RECITALS

     A. The Borrower and the Bank are parties to a Credit Agreement dated as of December 23, 2009
(the “Existing Credit Agreement”).

     B. The Borrower has requested that the Bank agree to amend and restate the Existing Credit
Agreement and extend to the Borrower a new term loan facility for the purpose of financing in part
the Acquisition (Enson) (defined below), and the Bank has agreed to do so, subject to the
conditions and limitations set forth herein.

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

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

     Section 1.1. Defined Terms. As used in this Agreement, the following terms have the
following meanings (and such meanings apply to both the singular and plural forms of the term
defined, as the context requires):

     “Acquisition”: Any acquisition of the assets or Equity Interests of another
Person in one or more transactions.

     “Acquisition (Enson)”: The acquisition by the Buyer of all of the capital
stock in the Target pursuant to the Acquisition Documents (Enson).

     “Acquisition Agreement (Enson)”: The Stock Purchase Agreement dated as of
November 1, 2010, by and among the Seller (Enson), the Buyer, and the Borrower.

     “Acquisition Documents (Enson)”: The Acquisition Agreement (Enson) and all
other agreements, instruments, certificates, and other documents executed and delivered
pursuant to or in connection therewith, as the same may be supplemented, amended, or
otherwise modified from time to time to the extent not prohibited by the terms of this
Agreement.

     “Acquisition Target”: The Person from which beneficial ownership of assets or
Equity Interests of another Person is acquired in an Acquisition.

 

 

     “Advance”: Any portion of the outstanding Revolving Loans or the Term Loan as
to which one of the available interest rate options and, if pertinent, a Loan Period, is
applicable. An Advance may be a LIBOR Rate Loan or a Prime Rate Loan.

     “Affiliate”: When used with reference to any Person, (a) each Person that,
directly or indirectly, controls, is controlled by, or is under common control with the
Person referred to, (b) each Person that beneficially owns or holds, directly or indirectly,
5% or more of any class of voting Equity Interests of the Person referred to, (c) each
Person, 5% or more of the voting Equity Interests (or if such Person is not a corporation,
5% or more of the equity interest) of which is beneficially owned or held, directly or
indirectly, by the Person referred to, and (d) each of such Person’s officers, directors,
joint venturers, and partners. The term “control” (including the terms “controlled by” and
“under common control with”) means the possession, directly, of the power to direct or cause
the direction of the management and policies of the Person in question.

     “Applicable Margin”:

	 	(a)	 	For Revolving Loans:

	 	(i)	 	For LIBOR Rate Loans: 1.8%.
	 
	 	(ii)	 	For Prime Rate Loans: 0%.

	 	(b)	 	For the Term Loan:

	 	(i)	 	For LIBOR Rate Loans: 1.5%.
	 
	 	(ii)	 	For Prime Rate Loans: 0%.

     “Bank”: As defined in the opening paragraph hereof.

     “Banking Day”: Any day (other than a Saturday, Sunday, or federal or state
legal holiday in the State of California) on which banks are permitted to be open in the
State of California and New York City, New York.

     “Board”: The Board of Governors of the Federal Reserve System or any successor
thereto.

     “Borrower”: As defined in the opening paragraph hereof.

     “Buyer”: UEI Hong Kong Private Limited, a company organized under the Laws of
Hong Kong.

     “Capital Expenditures”: For any period, the sum of all amounts that would, in
accordance with GAAP, be included as additions to property, plant, and equipment on a
consolidated statement of cash flows for the Borrower during such period, in respect of (a)
the acquisition, construction, improvement, replacement, or betterment of land, buildings,
machinery, equipment, or any other fixed assets or leaseholds, (b) to the extent

2

 

related to and not included in (a) above, materials and contract labor (excluding
expenditures properly chargeable to repairs or maintenance in accordance with GAAP), and (c)
other capital expenditures and other uses recorded as capital expenditures or similar terms
having substantially the same effect.

     “Capitalized Lease”: A lease of (or other agreement conveying the right to
use) real or personal property with respect to which at least a portion of the rent or other
amounts thereon constitutes Capitalized Lease Obligations.

     “Capitalized Lease Obligations”: As to any Person, the obligations of such
Person to pay rent or other amounts under a lease of (or other agreement conveying the right
to use) real or personal property which obligations are required to be classified and
accounted for as a capital lease on a balance sheet of such Person under GAAP (including
Statement of Financial Accounting Standards No. 13 of the Financial Accounting Standards
Board). For purposes of this Agreement, the amount of such obligations shall be the
capitalized amount thereof, determined in accordance with GAAP (including such Statement No.
13).

     “Cash Flow Leverage Ratio”: At any time of determination, the ratio of (a)
interest-bearing Indebtedness to (b) EBITDA.

     “Change of Control”: The occurrence, after the Effective Date, of any of the
following circumstances: (a) any Person or two or more Persons acting in concert acquiring
beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934), directly or indirectly, of Equity
Interests of the Borrower representing 30% or more of the combined voting power of all
Equity Interests of the Borrower entitled to vote in the election of directors; (b) during
any period of up to twelve consecutive months, whether commencing before or after the
Effective Date, individuals who at the beginning of such twelve-month period were directors
of the Borrower ceasing for any reason to constitute a majority of the board of directors of
the Borrower (other than by reason of death, disability, or scheduled retirement); or (c)
any Person or two or more Persons acting in concert acquiring by contract or otherwise, or
entering into a contract or arrangement that upon consummation will result in its or their
acquisition of, control over Equity Interests of the Borrower representing 30% or more of
the combined voting power of all Equity Interests of the Borrower entitled to vote in the
election of directors.

     “Charges”: As defined in Section 8.17.

     “Code”: The Internal Revenue Code of 1986, as amended.

     “Commitments”: The Revolving Commitment and the Term Loan Commitment.

     “Contingent Obligation”: With respect to any Person at the time of any
determination, without duplication, any obligation, contingent or otherwise, of such Person
guaranteeing or having the economic effect of guaranteeing any Indebtedness of any other
Person (the “primary obligor”) in any manner, whether directly or otherwise, (a) to
purchase or pay (or advance or supply funds for the purchase or payment of) such

3

 

Indebtedness or to purchase (or advance or supply funds for the purchase of) any direct
or indirect security therefor, (b) to purchase property, securities, Equity Interests, or
services for the purpose of assuring the owner of such Indebtedness of the payment of such
Indebtedness, (c) to maintain working capital, equity capital, or other financial statement
condition of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or otherwise to protect the owner thereof against loss in respect thereof, or
(d) entered into for the purpose of assuring in any manner the owner of such Indebtedness of
the payment of such Indebtedness or to protect the owner against loss in respect thereof;
provided, that the term “Contingent Obligation” shall not include endorsements for
collection or deposit, in each case in the ordinary course of business.

     “Current Liabilities”: As of any date, the consolidated current liabilities of
the Borrower, determined in accordance with GAAP.

     “Default”: Any event that with the giving of notice (whether such notice is
required under Section 7.1, under some other provision of this Agreement, or otherwise) or
lapse of time, or both, would constitute an Event of Default.

     “EBITDA”: For any period of determination, the consolidated net income of the
Borrower before deductions for income taxes, Interest Expense, depreciation, and
amortization, all as determined in accordance with GAAP.

     “EBITDAR”: For any period of determination, the consolidated net income, plus
interest expense, plus income tax expense, plus depreciation expense, plus amortization
expense, plus rent or lease expense of the Borrower, all as determined for said period in
accordance with GAAP.

     “Effective Date”: Any Banking Day on which all the conditions precedent to the
Bank’s obligation to make the Revolving Loans and the Term Loan, as set forth in Article
III, have been, or, on such Effective Date, will be, satisfied.

     “Equity Interests”: All shares, interests, participations, or other
equivalents, however designated, of or in a corporation or limited liability company,
whether or not voting, including but not limited to common stock, member interests,
warrants, preferred stock, convertible debentures, and all agreements, instruments, and
documents convertible, in whole or in part, into any one or more of the foregoing.

     “ERISA”: The Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate”: Any trade or business (whether or not incorporated) that is
a member of a group of which the Borrower is a member and that is treated as a single
employer under § 414 of the Code.

     “Event of Default”: Any event described in Section 7.1.

     “Federal Funds Rate”: For any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight
Federal funds transactions, with members of the Federal Reserve System arranged by Federal

4

 

funds brokers, as published for such day (or, if such day is not a Banking Day, for the
next preceding Banking Day) by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day that is a Banking Day, the average of the quotations the Bank
receives for such day on such transactions from three Federal funds brokers of recognized
standing that the Bank selects.

     “Fixed Charge Coverage Ratio”: For any period of determination, (a) EBITDAR
minus cash taxes, cash dividends, cash distributions, and Maintenance Capital Expenditures
divided by (b) the sum of all consolidated required principal payments (on short and long
term debt and capital leases), interest, and rental or lease expense, all as determined for
said period in accordance with GAAP.

     “Foreign Currency Hedging Agreement”: Any foreign currency swap, exchange,
cap, collar, floor, forward, future or option agreement, or any other similar hedging
arrangement, between the Borrower or any Restricted Subsidiary, as the case may be, and any
one or more counterparties, including the Bank, provided that such agreements are entered
into by such Person in the ordinary course of its business and not for purposes of
speculation.

     “GAAP”: Generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified
Public Accountants, statements and pronouncements of the Financial Accounting Standards
Board, or such other statements by such other entity as are approved by a significant
segment of the accounting profession that are applicable to the circumstances as of any date
of determination.

     “Holding Account”: A deposit account belonging to the Bank into which the
Borrower may be required to make deposits pursuant to this Agreement, such account to be
under the sole dominion and control of the Bank and not subject to withdrawal by the
Borrower, with any amounts therein to be held for application as specified in Sections 2.6,
2.10, and 2.13 as the case may be.

     “Immediately Available Funds”: Funds with good value on the day and in the
city in which payment is received.

     “Indebtedness”: With respect to any Person at the time of any determination,
without duplication, all obligations, contingent or otherwise, of such Person that in
accordance with GAAP should be classified upon the balance sheet of such Person as
liabilities, but in any event including: (a) all obligations of such Person for borrowed
money (including non-recourse obligations), (b) all obligations of such Person evidenced by
bonds, debentures, notes, or other similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid or accrued, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to property
purchased by such Person, (e) all obligations of such Person issued or assumed as the
deferred purchase price of property or services, but excluding trade payables incurred in
the ordinary course of business that are not more than 90 days past due, (f) all obligations
of others secured by any Lien on property owned or acquired by such Person, whether or

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not the obligations secured thereby have been assumed, (g) all Capitalized Lease
Obligations of such Person, (h) all obligations of such Person in respect of interest rate
swap agreements, cap or collar agreements, interest rate futures or option contracts,
currency swap agreements, currency futures or option agreements, and other similar
contracts, (i) all obligations of such Person, actual or contingent, as an account party in
respect of letters of credit or bankers’ acceptances, (j) all obligations of any partnership
or joint venture as to which such Person is or may become personally liable, (k) all
obligations of such Person under any Equity Interests issued by such Person, and (l) all
Contingent Obligations of such Person.

     “Indemnitee”: As defined in Section 8.12.

     “Interest Differential”: As defined in Section 2.4(d).

     “Interest Expense”: For any period of determination, the aggregate
consolidated amount, without duplication, of interest paid, accrued, or scheduled to be paid
in respect of any Indebtedness of the Borrower, including (a) all but the principal
component of payments in respect of conditional sale contracts, Capitalized Leases, and
other title retention agreements, (b) commissions, discounts, and other fees and charges
with respect to letters of credit and bankers’ acceptance financings, and (c) net costs
under interest rate protection agreements, in each case determined in accordance with GAAP.

     “Investment”: (a) The acquisition, purchase, making, or holding of any Equity
Interests or other security, or any loan, advance, contribution to capital, or extension of
credit (except for trade and customer accounts receivable for inventory sold or services
rendered in the ordinary course of business and payable in accordance with customary trade
terms), (b) any acquisition of real or personal property (other than real and personal
property acquired in the ordinary course of business), and any purchase of or commitment or
option to purchase Equity Interests, securities, or other debt of or any interest in another
Person or any integral part of any business or the assets constituting such business or part
thereof, and (c) the formation of, or entry into, any partnership as a limited or general
partner with any other Person or the entry into any joint venture with any other Person.
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 to such Investment.

     “Letter of Credit”: A letter of credit issued by the Bank pursuant to this
Agreement for the account of the Borrower.

     “Letter of Credit Fee”: As defined in Section 2.14.

     “Letter of Credit Outstandings”: The aggregate maximum amount available to be
drawn under Letters of Credit outstanding on any date of determination.

     “LIBOR Rate Loan”: As defined in Section 2.4(a).

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     “Lien”: With respect to any Person, any security interest, mortgage, pledge,
lien, charge, encumbrance, title retention agreement, or analogous instrument or device
(including the interest of each lessor under any Capitalized Lease) in, of, or on any assets
or properties of such Person, now owned or hereafter acquired, whether arising by agreement
or operation of law.

     “Loan”: A Revolving Loan or the Term Loan.

     “Loan Documents”: This Agreement, the Pledge Agreement, the Security
Agreement, the Revolving Note, and the Term Note.

     “Loan Period”: As defined in Section 2.4(b).

     “Maintenance Capital Expenditures”: For any period of determination, 50% of
the consolidated equipment depreciation expense of the Borrower, determined in accordance
with GAAP.

     “Material Adverse Occurrence”: Any occurrence of whatsoever nature (including,
without limitation, any adverse determination in any litigation, arbitration, or
governmental investigation or proceeding) that could reasonably be expected to materially
and adversely affect (a) the financial condition or operations of the Borrower and its
Subsidiaries taken as a whole, (b) the ability of the Borrower or any Subsidiary to perform
its obligations under any Transaction Document, or any writing executed pursuant thereto,
(c) the validity or enforceability of the material obligations of the Borrower or any
Subsidiary under any Transaction Document, (d) the rights and remedies of the Bank against
the Borrower or any Subsidiary under any Loan Document, or (e) the timely payment of the
principal of and interest on the Loans or other amounts payable by the Borrower hereunder.

     “Maximum Rate”: As defined in Section 8.17.

     “Multiemployer Plan”: A multiemployer plan, as such term is defined in §
4001(a)(3) of ERISA, that is maintained (on the Effective Date, within the five years
preceding the Effective Date, or at any time after the Effective Date) for employees of the
Borrower or any ERISA Affiliate.

     “Note”: The Term Note or the Revolving Note.

     “Obligations”: The Borrower’s obligations in respect of the due and punctual
payment of principal and interest on the Revolving Note, the Term Note, and Unpaid Drawings
when and as due, whether by acceleration or otherwise, all fees, expenses, indemnities,
reimbursements, and other obligations of the Borrower under the Loan Documents, and the Rate
Protection Obligations, in all cases whether now existing or hereafter arising or incurred.

     “Other Taxes”: As defined in Section 2.20(b).

     “Participants”: As defined in Section 8.6(b).

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     “PBGC”: The Pension Benefit Guaranty Corporation, established pursuant to
Subtitle A of Title IV of ERISA, and any successor thereto or to the functions thereof.

     “Permitted Acquisition”: (a) The Acquisition (Enson); (b) any other
Acquisition to which the Bank has provided written consent, or (c) any Acquisition for which
the following conditions are met:

     (a) such Acquisition is not “hostile” and has been approved by the Acquisition
Target by action of the board of directors or other similar governing body of the
Acquisition Target;

     (b) the Acquisition Target is in a line of business the same as or similar to
the electronics industry or is complementary to the line of business engaged in by
the Borrower as of the Effective Date; and

     (c) the Borrower has delivered to the Bank a pro forma Compliance Certificate,
certified by the chief financial officer of the Borrower, demonstrating that both
before and after giving effect to such Acquisition, no Event of Default is
continuing or will result therefrom.

     “Person”: Any natural person, corporation, partnership, limited partnership,
limited liability company, joint venture, firm, association, trust, unincorporated
organization, government, governmental agency or political subdivision, or other entity,
whether acting in an individual, fiduciary, or other capacity.

     “Plan”: Each employee benefit plan (whether in existence on the Effective Date
or thereafter instituted), as such term is defined in § 3 of ERISA, maintained for the
benefit of employees, officers, or directors of the Borrower or of any ERISA Affiliate.

     “Pledge Agreement”: The Pledge Agreement of even date herewith given by the
Buyer in favor of the Bank, as the same may be amended, restated, or otherwise modified from
time to time.

     “Prime Rate”: As defined in Section 2.4(a).

     “Prime Rate Loan”: As defined in Section 2.4(a).

     “Prohibited Transaction”: As defined in § 4975 of the Code and § 406 of ERISA.

     “Quick Ratio”: As of any date of determination, the ratio of (a) the
Borrower’s consolidated accounts receivable plus the Borrower’s consolidated cash on hand
and marketable securities to (b) Current Liabilities (including the Obligations).

     “Rate Protection Agreement”: Any interest rate swap, cap, or option agreement,
or other agreement pursuant to which the Borrower hedges interest rate risk with respect to
a portion of the Obligations, entered into by the Borrower with a Rate Protection Provider.

8

 

     “Rate Protection Obligations”: The liabilities, indebtedness, and obligations
of the Borrower, if any, to Rate Protection Providers under Rate Protection Agreements.

     “Rate Protection Provider”: The Bank, or any Affiliate of the Bank, that is
the counterparty of the Borrower under any Rate Protection Agreement.

     “Regulatory Change”: Any change after the Effective Date in federal, state, or
foreign laws or regulations or the adoption or making after such date of any
interpretations, directives, or requests applying to a class of banks including the Bank
under any federal, state, or foreign laws or regulations (whether or not having the force of
law) by any court or governmental or monetary authority charged with the interpretation or
administration thereof.

     “Reportable Event”: A reportable event as defined in § 4043 of ERISA and the
regulations issued under such section, with respect to a Plan, excluding, however, such
events as to which the PBGC by regulation has waived the requirement of § 4043(a) of ERISA
that it be notified within 30 days of the occurrence of such event, provided that a failure
to meet the minimum funding standard of § 412 of the Code and § 302 of ERISA shall be a
Reportable Event regardless of the issuance of any waiver in accordance with § 412(d) of the
Code.

     “Restricted Payments”: With respect to the Borrower and its Subsidiaries,
collectively, all dividends or other distributions of any nature (whether cash, Equity
Interests other than common stock of the Borrower, assets, or otherwise), and all payments
on any class of Equity Interests (including warrants, options, or rights therefor) issued by
the Borrower, whether or not such Equity Interests are authorized or outstanding on the
Effective Date or at any time thereafter, and any redemption or purchase of, or distribution
in respect of, any of the foregoing, whether directly or indirectly.

     “Restricted Subsidiary”: (a) Universal Electronics BV, (b) the Target, (c) the
Buyer, (d) C.G. Development Limited (Hong Kong), a Hong Kong company, (e) Gemstar Technology
(China) Co. Ltd., a People’s Republic of China company, (f) Gemstar Technology (Yasngzhou)
Co. Ltd., a People’s Republic of China company, and (g) each other Subsidiary designated in
writing by the Borrower pursuant to Section 5.14.

     “Revolving Commitment”: The Bank’s obligation to make Revolving Loans to, and
issue Letters of Credit for, the Borrower in an aggregate principal amount outstanding at
any time not to exceed the Revolving Commitment Amount upon the terms and subject to the
conditions and limitations of this Agreement.

     “Revolving Commitment Amount”: $20,000,000.

     “Revolving Commitment Ending Date”: As defined in Section 2.17.

     “Revolving Loan”: As defined in Section 2.1.

     “Revolving Loan Date”: The date of the making of any Revolving Loan.

9

 

     “Revolving Note”: A promissory note of the Borrower in the form of Exhibit
A1, evidencing the Borrower’s obligation to repay the Revolving Loans, as the same may
be amended, restated, or otherwise modified from time to time.

     “Security Agreement”: The Security Agreement of even date herewith given by
the Borrower in favor of the Bank.

     “Seller (Enson)”: CG International Holdings Limited, an exempted company
incorporated in the Cayman Islands under the Companies Law with limited liability.

     “Standby Letter of Credit Sublimit”: $4,500,000.

     “Subordinated Debt”: Any Indebtedness of the Borrower, now existing or
hereafter created, incurred, or arising, that is subordinated in right of payment to the
payment of the Obligations in a manner and to an extent (a) that the Bank has approved in
writing prior to the creation of such Indebtedness, or (b) as to any Indebtedness of the
Borrower existing on the date of this Agreement, that the Bank has approved as Subordinated
Debt in a writing delivered by the Bank to the Borrower on or prior to the Effective Date.

     “Subsidiary”: Any corporation or other entity of which Equity Interests having
ordinary voting power for the election of a majority of the board of directors or other
Persons performing similar functions are owned by the Borrower either directly or through
one or more Subsidiaries.

     “Tangible Net Worth”: As of any date of determination, the sum of the amounts
set forth on the consolidated balance sheet of the Borrower as the sum of the common stock,
preferred stock, additional paid-in capital, and retained earnings of the Borrower
(excluding treasury stock), less the book value of all intangible assets of the Borrower and
its Subsidiaries, including all such items as goodwill, trademarks, trade names, service
marks, copyrights, patents, licenses, unamortized debt discount and expenses, and the excess
of the purchase price of the assets of any business acquired by the Borrower or any of its
Subsidiaries over the book value of such assets.

     “Target”: Enson Assets Limited, a company incorporated under the laws of the
British Virgin Islands.

     “Term Loan”: As defined in Section 2.1.

     “Term Loan Commitment”: The agreement of the Bank to make the Term Loan to the
Borrower in the amount specified in Section 2.1 upon the terms and subject to the conditions
of this Agreement.

     “Term Loan Maturity Date”: November 1, 2011.

     “Term Note”: A promissory note of the Borrower in the form of Exhibit A2
hereto, evidencing the obligation of the Borrower to repay the Term Loan, as the same may be
amended, restated, or otherwise modified from time to time.

10

 

     “Termination Date”: The earlier of (a) the Revolving Commitment Ending Date or
(b) the date on which the Revolving Commitment is terminated pursuant to Section 7.2.

     “Total Revolving Outstandings”: As of any date of determination, the sum of
(a) the aggregate unpaid principal balance of Revolving Loans outstanding on such date, (b)
the Letter of Credit Outstandings, and (c) the aggregate amount of Unpaid Drawings on such
date.

     “Transaction Documents”: The Loan Documents and the Acquisition Documents
(Enson).

     “U.S. Taxes”: As defined in Section 2.19(e).

     “Universal Electronics BV”: Universal Electronics, B.V., a corporation
organized under the laws of the Netherlands.

     “Unpaid Drawing”: As defined in Section 2.10.

     Section 1.2. Accounting Terms and Calculations. Except as expressly provided
to the contrary herein, all accounting terms used herein shall be interpreted and all
accounting determinations hereunder shall be made in accordance with GAAP. To the extent
any change in GAAP affects any computation or determination required to be made pursuant to
this Agreement, such computation or determination shall be made as if such change in GAAP
had not occurred unless the Borrower and the Bank agree in writing on an adjustment to such
computation or determination to account for such change in GAAP.

     Section 1.3. Computation of Time Periods. In this Agreement, in the
computation of a period of time from a specified date to a later specified date, unless
otherwise stated the word “from” means “from and including” and the words “to” and “until”
mean “to but excluding.”

     Section 1.4. Other Definitional Terms. The words “hereof,” “herein,” and
“hereunder” and words of similar import when used in this Agreement refer to this Agreement
as a whole and not to any particular provision hereof. References to sections, exhibits,
and schedules and like references are to sections, exhibits, schedules, and the like of this
Agreement unless otherwise provided. The words “include,” “includes,” and “including” shall
be deemed to be followed by the phrase “without limitation.” Unless the context otherwise
clearly requires, “or” has the inclusive meaning represented by the phrase “and/or.” All
covenants, terms, definitions, or other provisions from other agreements incorporated by
reference are incorporated into this Agreement as if fully set forth herein, and such
incorporation shall include all necessary definitions and related provisions from such other
agreements but only amendments thereto agreed to by the Bank, and shall survive any
termination of such
other agreements until the obligations of the Borrower under the Loan Documents are
irrevocably paid in full, all Letters of Credit have expired without renewal or been
returned to the Bank, and the Bank’s commitments to advance funds to the Borrower are
terminated.

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ARTICLE II.

TERMS OF THE CREDIT FACILITIES

Part A—Terms of Lending

     Section 2.1. The Commitments. On the terms and subject to the conditions hereof, the
Bank agrees to make the following lending facilities available to the Borrower:

     (a) Revolving Loans. Revolving loans (the “Revolving Loans”) to the Borrower
on a revolving basis at any time and from time to time from the Effective Date to the Termination
Date, during which period the Borrower may borrow, repay, and reborrow in accordance with the
provisions hereof, provided, that no Revolving Loan will be made in any amount that, after giving
effect thereto, would cause the Total Revolving Outstandings to exceed the Revolving Commitment
Amount.

     (b) Term Loan. A term loan (the “Term Loan”) from the Bank to the Borrower on
the Effective Date in the amount of $35,000,000.

     Section 2.2. Procedure for Revolving Loans. Any request by the Borrower for a
Revolving Loan shall be in writing or by telephone and shall be received by the Bank not later than
9:00 A.M. (Pacific time) two Banking Days prior to the requested Revolving Loan Date if the
Revolving Loan (or any portion thereof) is requested as a LIBOR Rate Loan and not later than 12:00
P.M. (Pacific time) on the requested Revolving Loan Date if the Revolving Loan is requested as a
Prime Rate Loan. Each request for a Revolving Loan hereunder shall be irrevocable and shall be
deemed a representation by the Borrower that on the requested Revolving Loan Date and after giving
effect to the requested Revolving Loan the applicable conditions specified in Article III have been
and will be satisfied. Each request for a Revolving Loan shall specify (i) the requested Revolving
Loan Date, (ii) the amount of the Revolving Loan to be made on such date, (iii) whether such
Revolving Loan is to be funded as a Prime Rate Loan or a LIBOR Rate Loan (and, if such Revolving
Loan is to be made with more than one applicable interest rate choice, the amount to which each
interest rate choice is applicable), and (iv) in the case of a LIBOR Rate Loan, the duration of the
initial Loan Period applicable thereto. The Bank may rely on any telephone request by the Borrower
for a Revolving Loan that it believes in good faith to be genuine, and the Borrower hereby waives
the right to dispute the Bank’s record of the terms of such telephone request. Unless the Bank
determines that any applicable condition specified in Article III has not been satisfied, the Bank
will make available to the Borrower at the Bank’s principal office in Newport Beach, California in
Immediately Available Funds not later than 3:00 P.M. (Pacific time) on the requested Revolving Loan
Date the amount of the requested Revolving Loan.

     Section 2.3. The Notes. The Revolving Loans shall be evidenced by a single Revolving Note payable to the order of
the Bank in a principal amount equal to the Revolving Commitment Amount. The Term Loan shall be
evidenced by a Term Note payable to the order of the Bank in the principal amount of the Term Loan.
The Bank shall enter in its ledgers and records the amount of each Advance, any conversion or
continuation thereof, and the payments made thereon; provided, however, that any failure by the
Bank to make any such entry or any error in making such entry shall not limit or otherwise affect
the obligation of the Borrower hereunder and on the Notes, and, in all events, the principal
amounts owing by the Borrower in

12

 

respect of the Revolving Note shall be the aggregate amount of all
Revolving Loans made by the Bank less all payments of principal thereof made by the Borrower and
the principal amount owing by the Borrower in respect of the Term Note shall be the aggregate
amount of the Term Loan less all payments of principal thereof made by the Borrower.

     Section 2.4. Interest Rates; Conversions and Continuations; Etc.

     (a) Interest Rate Options. Interest on each Advance shall accrue at one of the
following per annum rates selected by the Borrower: (i) upon notice to the Bank, the Applicable
Margin plus the prime rate announced by the Bank from time to time (the “Prime Rate”), as
and when such rate changes (a “Prime Rate Loan”); or (ii) upon a minimum of two Banking
Days’ prior notice, the Applicable Margin plus the 1, 3, 6, or 12 month LIBOR rate quoted by the
Bank from Reuters Screen LIBOR01 Page or any successor thereto (which shall be the LIBOR rate in
effect two Banking Days prior to commencement of the advance), adjusted for any reserve requirement
and any subsequent costs arising from a change in government regulation (a “LIBOR Rate
Loan”), provided, however, that no Advance may be converted into or continued as a LIBOR Rate
Loan if after giving effect to such conversion or continuation there would be more than 5 LIBOR
Rate Loans outstanding.

     (b) Conversions and Continuations. In the event the Borrower does not timely select
another interest rate option at least two Banking Days before the end of the Loan Period for a
LIBOR Rate Loan, the Bank may at any time after the end of the Loan Period convert such LIBOR Rate
Loan to a Prime Rate Loan, but until such conversion, the funds advanced under the LIBOR Rate Loan
shall continue to accrue interest at the same rate as the interest rate in effect for such LIBOR
Rate Loan prior to the end of the Loan Period. The term “Loan Period” means the period commencing
on the advance date of the applicable LIBOR Rate Loan and ending on the numerically corresponding
day 1, 3, 6, or 12 months thereafter matching the interest rate term selected by the Borrower;
provided, that (a) if any Loan Period would otherwise end on a day that is not a Banking Day, then
the Loan Period shall end on the next succeeding Banking Day unless the next succeeding Banking Day
falls in another calendar month, in which case the Loan Period shall end on the immediately
preceding Banking Day; or (b) if any Loan Period begins on the last Banking Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar month at the end
of the Loan Period), then the Loan Period shall end on the last Banking Day of the calendar month
at the end of such Loan Period.

     (c) Limitations on LIBOR Rate Loans. No LIBOR Rate Loan may extend beyond the
Termination Date (with respect Revolving Loans) or beyond the Term Loan Maturity Date (with respect
to the Term Loan). In any event, if the Loan Period for a LIBOR Rate Loan extends beyond the
Termination Date (with respect Revolving Loans) or beyond the Term Loan Maturity Date (with respect
to the Term Loan), such LIBOR Rate Loan must be prepaid on the Termination Date (with respect
Revolving Loans) or the Term Loan Maturity Date (with respect to the Term Loan). Notwithstanding
anything to the contrary, the Bank’s internal records of applicable interest rates shall be
determinative absent manifest error. Notwithstanding anything to the contrary, each LIBOR Rate
Loan shall be in a minimum principal amount of $500,000.

     (d) Prepayment of LIBOR Rate Loans. If a LIBOR Rate Loan is prepaid prior to the end
of the applicable Loan Period, whether voluntarily or because prepayment is required due to the
relevant Loan maturing, acceleration of the relevant Loan upon an Event of Default, or otherwise,
the Borrower shall pay all of the Bank’s costs, expenses, and Interest Differential (as determined
by the Bank)

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incurred as a result of such prepayment. The term “Interest Differential” means the
greater of zero and the financial loss incurred by the Bank resulting from prepayment, calculated
as the difference between the amount of interest the Bank would have earned (from like investments
in the Money Markets as of the first day of the LIBOR Rate Loan) had prepayment not occurred and
the interest the Bank will actually earn (from like investments in the Money Markets as of the date
of prepayment) as a result of the redeployment of funds from the prepayment. Because of the
short-term nature of the Loan facilities, the Borrower agrees that the Interest Differential shall
not be discounted to its present value. Any prepayment of a LIBOR Rate Loan shall be in an amount
equal to the remaining entire principal balance of such LIBOR Rate Loan. The term “Money Markets”
refers to one or more wholesale funding markets available to and selected by the Bank, including
negotiable certificates of deposit, commercial paper, Eurodollar deposits, bank notes, federal
funds, interest rate and swaps, or others.

     (e) Interest Upon Event of Default. Upon any Event of Default, each Loan shall, at
the option of the Bank (or, in the case of an Event of Default under Sections 7.1(e), (f), or (g),
automatically upon such Event of Default), bear interest until paid in full at the rate otherwise
applicable thereto plus 5.0% per annum. Further, notwithstanding anything to the contrary in this
Agreement, upon any Event of Default, at the Bank’s option (or, in the case of an Event of Default
under Sections 7.1(e), (f), or (g), automatically upon such Event of Default), no Advance may be
made, converted, or continued as a LIBOR Rate Loan.

     Section 2.5. Payment of Interest and Principal of Loans.

     (a) Revolving Loans. Interest and principal on the Revolving Loans shall be paid as
follows:

     (i) Interest shall be payable (A) on the last day of each month, and (B) on the
Termination Date; provided that interest under Section 2.4(e) shall be payable on
demand.

     (ii) Principal on the Revolving Loans is payable on the Termination Date.

     (iii) The Bank is hereby authorized by the Borrower to charge on any day the
depository accounts of the Borrower maintained with the Bank for any amount of
accrued and unpaid interest or principal which is due and owing, unless such amount
is being disputed in good faith in writing by the Borrower.

     (b) Term Loan. Interest and principal upon the Term Loan shall be paid as follows:

     (i) Interest shall be payable (A) on January 5, April 5, July 5, and October 5
of each year beginning on January 5, 2011, and (B) on the Term Loan Maturity Date;
provided that interest under Section 2.4(e) shall be payable on demand.

     (ii) Principal on the Term Loan is payable in installments of $2,200,000 each,
on January 5, April 5, July 5, and October 5 of each year beginning on January 5,
2011, plus a final payment equal to all unpaid principal on the Term Loan Maturity
Date.

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     Section 2.6. Prepayments.

     (a) Optional Prepayments. The Borrower may prepay Prime Rate Loans, in whole or in
part, at any time, without premium or penalty. Each partial prepayment shall be in a minimum
amount of $500,000 or an integral multiple thereof. The Borrower may prepay LIBOR Rate Loans only
if it pays any indemnities payable with respect thereto pursuant to Section 2.4(d).

     (b) Mandatory Prepayments. If at any time the Borrower receives any payments in
connection with the enforcement of its rights under the Acquisition Documents (Enson), the Borrower
shall immediately pay to the Bank the net proceeds of such payments, together with any indemnities
payable with respect to prepayment of LIBOR Rate Loans pursuant to Section 2.4(d). All such
payments shall be applied to first to the scheduled principal payments on the Term Loan in the
inverse order of their maturities and second to any outstanding Revolving Loans.

     (c) Amounts paid (unless following an acceleration or upon termination of the Revolving
Commitment in whole) or prepaid on Revolving Loans under this section may be reborrowed upon the
terms and subject to the conditions and limitations of this Agreement. Amounts paid or prepaid on
the Term Loan may not be reborrowed.

Part B—Terms of the Letter of Credit Facility

     Section 2.7. Letters of Credit. Upon the terms and subject to the conditions of this
Agreement, the Bank agrees to issue commercial and standby Letters of Credit for the account of the
Borrower from time to time between the Effective Date and the Termination Date in such amounts as
the Borrower requests up to an aggregate amount at any time outstanding not exceeding the Revolving
Commitment Amount; provided that no Letter of Credit will be issued in any amount that, after
giving effect to such issuance, would cause (a) the Total Revolving Outstandings to exceed the
Revolving Commitment Amount or (b) the Letter of Credit Outstandings with respect to standby
Letters of Credit to exceed the Standby Letter of Credit Sublimit.

     Section 2.8. Procedures for Letters of Credit. The Borrower shall make each request
for a Letter of Credit in writing by facsimile transmission, or electronic conveyance received by
the Bank by 12:00 P.M. (Pacific time) on a
Banking Day that is not less than three Banking Days before the requested date of issuance
(which shall also be a Banking Day). Each request for a Letter of Credit shall be deemed a
representation by the Borrower that on the date of issuance of such Letter of Credit and after
giving effect thereto the applicable conditions specified in Article III have been and will be
satisfied. The Bank may require that such request be made on such letter of credit application and
reimbursement agreement form as the Bank from time to time specifies, along with satisfactory
evidence of the authority and incumbency of the officials of the Borrower making such request.

     Section 2.9. Terms of Letters of Credit. Letters of Credit shall be issued in support
of obligations of the Borrower or any Subsidiary, contingent or otherwise, and to finance the
working capital and business needs of the Borrower or any Subsidiary. All Letters of Credit must
expire not later than the Banking Day preceding the Revolving Commitment Ending Date. No standby
Letter of Credit may have a term longer than 12 months.

15

 

     Section 2.10. Agreement to Repay Letter of Credit Drawings. If the Bank has received
documents purporting to draw under a Letter of Credit that the Bank believes conform to the
requirements of such Letter of Credit, or if the Bank has decided that it will comply with the
Borrower’s written or oral request or authorization to pay a drawing on any Letter of Credit that
the Bank does not believe conforms to the requirements of the Letter of Credit, it will notify the
Borrower of that fact. The Borrower shall reimburse the Bank by 10:00 A.M. (Pacific time) on the
day on which such drawing is to be paid in Immediately Available Funds in an amount equal to the
amount of such drawing. Any amount by which the Borrower has failed to reimburse the Bank for the
full amount of such drawing by 10:00 A.M. (Pacific time) on the date on which the Bank in its
notice indicated that it would pay such drawing, until reimbursed by the Borrower from the proceeds
of Revolving Loans pursuant to Section 2.13 or out of funds available in the Holding Account, is an
“Unpaid Drawing.” Unpaid Drawings shall bear interest at a rate equal to the sum of (a) the
Applicable Margin for Prime Rate Loans plus (b) the Prime Rate plus (c) 5.0% per annum. Such
interest shall be payable on demand.

     Section 2.11. Obligations Absolute. The Borrower’s obligation under Section 2.10 to
repay the Bank for any amount drawn on any Letter of Credit and for any Revolving Loans made under
Section 2.13 to cover Unpaid Drawings shall be absolute, unconditional, and irrevocable, shall
continue so long as any Letter of Credit is outstanding notwithstanding any termination of this
Agreement, and shall be paid strictly in accordance with the terms of this Agreement, under all
circumstances whatsoever, including without limitation the following circumstances:

     (a) Any lack of validity or enforceability of any Letter of Credit;

     (b) The existence of any claim, setoff, defense, or other right that the Borrower has or
claims at any time against any beneficiary, transferee, or holder of any Letter of Credit (or any
Person for whom any such beneficiary, transferee, or holder is acting), the Bank, or any other
Person, whether in
connection with a Letter of Credit, this Agreement, the transactions contemplated hereby, or
any unrelated transaction; or

     (c) 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.

Neither the Bank nor its officers, directors, or employees shall be liable or responsible for, and
the obligations of the Borrower to the Bank shall not be impaired by:

     (a) The use made of any Letter of Credit or any acts or omissions of any beneficiary,
transferee, or holder thereof in connection therewith;

     (b) The validity, sufficiency, or genuineness of documents, or of any endorsements thereon,
even if such documents or endorsements in fact prove to be in any or all respects invalid,
insufficient, fraudulent, or forged;

     (c) The Bank’s acceptance of documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary;
or

16

 

     (d) Any other action of the Bank in making or failing to make payment under any Letter of
Credit if in good faith and in conformity with U.S. or foreign laws, regulations, or customs
applicable thereto.

Notwithstanding the foregoing, the Borrower shall have a claim against the Bank, and the Bank shall
be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential, damages suffered by the Borrower that the Borrower proves were caused by the Bank’s
willful misconduct or gross negligence in determining whether documents presented under any Letter
of Credit comply with the terms thereof.

     Section 2.12. Outstanding Letters of Credit Following Event of Default. Upon a
Default or Event of Default, the Borrower shall either (a) replace all outstanding Letters of
Credit with letters of credit issued by another issuer acceptable to the respective beneficiaries
of such Letters of Credit (whereupon such Letters of Credit shall be canceled), or (b) provide the
Bank, as security for all outstanding Letters of Credit, with a cash collateral deposit in an
amount that equals at least 110% of the Letter of Credit Outstandings at all times during the
continuance of such Default or Event of Default. The Borrower hereby grants to the Bank a security
interest in such cash collateral to secure all Obligations. The Bank will apply such cash
collateral to the payment of drafts drawn under such Letters of Credit and customary costs and
expenses charged or incurred by the Bank in connection therewith, and apply the unused portion
thereof after all such Letters of Credit have expired or been fully drawn upon, if any, to repay
other Obligations. After all such Letters of Credit have expired or been fully drawn upon, all
Obligations have been paid in full in cash, and the Bank’s obligations hereunder have terminated,
the balance, if any, of such cash collateral shall be returned to the Borrower. The Borrower shall
execute and deliver to the Bank such further documents and instruments as the Bank requests to
evidence the creation and perfection of the security interest in such cash collateral account.

Part C—General

     Section 2.13. Revolving Loans to Cover Unpaid Drawings. Whenever any Unpaid Drawing
exists and there are not then funds in the Holding Account to cover the same, the Bank is
authorized (and the Borrower does here so authorize the Bank) to, and shall, make a Revolving Loan
(as a Prime Rate Loan) to the Borrower in an amount equal to the amount of the Unpaid Drawing. The
Bank shall apply the proceeds of such Revolving Loan directly to reimburse itself for such Unpaid
Drawing. If at the time the Bank makes a Revolving Loan pursuant to this section, the applicable
conditions precedent specified in Article III have not been satisfied, the Borrower shall pay to
the Bank interest on the funds so advanced at a floating rate per annum equal to the sum of (a) the
Applicable Margin for Prime Rate Loans plus (b) the Prime Rate plus (c) 5.0% per annum.

     Section 2.14. Facility Fees and Letter of Credit Fees. Upon the Effective Date, the
Borrower shall pay to the Bank a one-time facility fee in connection with the Term Loan in the
amount of $25,000. For each Letter of Credit issued, the Borrower shall pay to the Bank a fee (a
“Letter of Credit Fee”) equal to (a) in the case of each standby Letter of Credit, at all
times such Letter of Credit is outstanding, an amount determined by multiplying 1.8% by the
original face amount of each such Letter of Credit determined on a per annum basis, payable on the
date such Letter of Credit is issued, and (b) in the case of commercial Letters of Credit, the
Bank’s

17

 

standard fees as set forth on the Bank’s Commercial Letter of Credit Fee Schedule, as
updated from time to time. In addition to the Letter of Credit Fees, the Borrower shall pay to the
Bank, on demand, all issuance, amendment, drawing, and other fees regularly charged by the Bank to
its letter of credit customers and all reasonable out-of-pocket expenses the Bank incurs in
connection with the issuance, amendment, administration, or payment of any Letter of Credit.

     Section 2.15. Computation. Letter of Credit Fees and interest on Obligations shall be
computed on the basis of actual days elapsed (or, in the case of Letter of Credit Fees that are
paid in advance, actual days to elapse) and a year of 360 days.

     Section 2.16. Payments. Payments and prepayments of principal of, and interest on,
the Notes and all fees, expenses, and other obligations under this Agreement payable to the Bank
shall be made without setoff or counterclaim in Immediately Available Funds not later than 1:00
P.M. (Pacific time) on the dates called for under the Loan Documents to the Bank at its main office
in Newport Beach, California. Funds received after such time shall be deemed to have been received
on the next Banking Day. Whenever any payment to be made under the Loan Documents is stated to be
due on a day that is not a Banking Day, such payment shall be made on the next succeeding Banking
Day, and such extension of time, in the case of a payment of principal, shall be included in the
computation of any interest on such principal payment; provided, however, that if such extension
would cause payment of interest on or principal of a LIBOR Rate Loan to be made in the next
following calendar month, such payment shall be made on the next preceding Banking Day.

     Section 2.17. Revolving Commitment Ending Date. The “Revolving Commitment Ending
Date” is November 1, 2012.

     Section 2.18. Use of Proceeds.

     (a) The Revolving Loans shall be used to (a) provide financing for the Borrower’s general
corporate purposes, (b) support the issuance of commercial and standby Letters of Credit, and (c)
provide temporary bridge financing for certain Permitted Acquisitions, in each case in a manner not
in conflict with any of the Borrower’s covenants in this Agreement.

     (b) The Term Loan shall be used to finance the Acquisition (Enson) and to pay related
transaction costs, fees, and expenses.

     Section 2.19. Taxes.

     (a) Any and all payments by the Borrower under the Loan Documents shall be made free and clear
of and without deduction for any and all present or future taxes, levies, imposts, deductions,
charges, or withholdings, and all liabilities with respect thereto, excluding, in the case
of the Bank, taxes imposed on its overall net income and franchise taxes imposed on it in lieu of
net income taxes (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings,
and liabilities in respect of payments under the Loan Documents being hereinafter referred to as
“Taxes”).

     (b) The Borrower agrees to pay any present or future stamp or documentary taxes or any other
excise or property taxes, charges, or similar levies that arise from any payment made under the

18

 

Loan Documents or from the execution, delivery, or registration of, performing under, or otherwise
with respect to the Loan Documents (hereinafter referred to as “Other Taxes”).

     (c) The Borrower shall indemnify the Bank for the full amount of Taxes or Other Taxes imposed
on or paid by the Bank and any penalties, interest, and expenses with respect thereto. Payments on
this indemnification shall be made within 30 days from the date the Bank makes written demand
therefor.

     (d) Within 30 days after the date of any payment of Taxes, the Borrower shall furnish to the
Bank, at its address referred to on the signature page hereof, a certified copy of a receipt
evidencing payment thereof. In the case of any payment under the Loan Documents by or on behalf of
the Borrower through an account or branch outside the United States or by or on behalf of the
Borrower by a payor that is not a United States person, if the Borrower determines that no Taxes
are payable in respect thereof, the Borrower shall furnish or shall cause such payor to furnish to
the Bank at such address an opinion of counsel reasonably acceptable to the Bank stating that such
payment is exempt from Taxes. For purposes of this subsection (d), the terms “United States” and
“United States person” have the meanings specified in § 7701 of the Code.

     (e) If the Borrower is required by law or regulation to make any deduction, withholding, or
backup withholding of any taxes, levies, imposts, duties, fees, liabilities, or similar charges of
the United States of America, any possession or territory of the United States of America
(including the Commonwealth of Puerto Rico), or any area subject to the jurisdiction of the United
States of America (“U.S. Taxes”) from any payments to the Bank pursuant to any Loan
Document in respect of the Obligations payable to the Bank then or thereafter outstanding, the Borrower shall make such
withholdings or deductions and pay the full amount withheld or deducted to the relevant taxation
authority or other authority in accordance with applicable law.

     Section 2.20. Effect of Existing Credit Agreement. This Agreement amends and replaces
in its entirety the Existing Credit Agreement, provided that the obligations of the Borrower
incurred under the Existing Credit Agreement shall continue under this Agreement and shall not in
any circumstance be terminated, extinguished, or discharged hereby but shall hereafter be governed
by the terms of this Agreement. None of the liens created by the Existing Credit Agreement shall
be terminated, extinguished, or discharged hereby.

ARTICLE III.

CONDITIONS PRECEDENT

     Section 3.1. Conditions of Initial Transaction. The making of the Term Loan and the
initial Revolving Loan and the issuance of the initial Letter of Credit shall be subject to the
prior or simultaneous fulfillment of the following conditions:

     (a) Documents. The Bank shall have received the following:

     (i) The Revolving Note and the Term Note, each executed by a duly authorized
officer (or officers) of the Borrower and dated the Effective Date.

     (ii) The Pledge Agreement, duly executed by a duly authorized officer (or
officers) of the Buyer and dated the Effective Date.

19

 

     (iii) The Security Agreement, duly executed by a duly authorized officer
(or officers) of the Borrower and dated the Effective Date.

     (iv) A statement of sources and uses of funds, duly exected by the Borrower and
in form and substance satisfactory to the Bank.

     (v) A certificate of

	 	(A)	 	a Secretary or Assistant
Secretary of the Borrower dated of as the Effective Date and
certifying as to the following:

	 	(a)	 	A copy of the
Borrower’s corporate resolutions authorizing the
execution, delivery, and performance of the Transaction
Documents to which it is a party;
	 
	 	(b)	 	The incumbency,
names, titles, and signatures of the Borrower’s officers
authorized to execute the Loan Documents and to request
Letters of Credit, Revolving Loans, the Term Loan, and
conversions and continuations of Advances hereunder;
	 
	 	(c)	 	A true and
accurate copy of the Borrower’s Restated Certificate of
Incorporation and all amendments thereto; and
	 
	 	(d)	 	A true and
accurate copy of the Borrower’s Amended and Restated
Bylaws; and

	 	(B)	 	a Secretary, Assistant Secretary,
or equivalent officer of the Buyer dated of as the Effective
Date and certifying as to the following:

	 	(a)	 	A copy of the
Buyer’s resolutions authorizing the execution, delivery,
and performance of the Transaction Documents to which it
is a party;
	 
	 	(b)	 	The incumbency,
names, titles, and signatures of the Buyer’s officers
authorized to execute the Pledge Agreement; and
	 
	 	(c)	 	A true and
accurate copy of the Buyer’s organizational documents
and all amendments thereto.

	 	(C)	 	a Secretary, Assistant Secretary,
or equivalent officer of the Target dated of as the Effective
Date and certifying as to the following:

	 	(a)	 	A copy of the
Buyer’s resolutions authorizing the execution, delivery,
and performance of the

20

 

	 	 	 	Transaction Documents to which it is a party and the
transfer of its shares to the Bank;
	 
	 	(b)	 	The incumbency,
names, titles, and signatures of the Target’s officers
authorized to execute the Pledge Agreement; and
	 
	 	(c)	 	A true and
accurate copy of the Target’s organizational documents
and all amendments thereto.
	 
	 	(d)	 	Resolutions of
the shareholders of the Target approving an amendment to
the Target’s memorandum and articles of association, in
form and sustance satisfactory to the Bank.

     (vi) A copy of the Borrower’s Restated Certificate of Incorporation with all
amendments thereto, certified by the appropriate governmental official of the State
of Delaware as of a date not more than 30 days prior to the Effective Date.

     (vii) A certificate of the Target’s registered agent in the British Virgin
Islands stating that the Target’s shares are not encumbered and otherwise in form
and substance satisfactory to the Bank.

     (viii) Certificates of good standing for the Borrower in the States of Delaware
and California certified by the appropriate governmental officials as of a date not
more than 30 days prior to the Effective Date.

     (ix) A certificate dated as of the Effective Date of an officer of the Borrower
certifying that:

	 	(A)	 	True and accurate copies of the
Acquisition Documents (Enson) have been attached thereto, and
remain in full force and effect, without modification or
amendment;
	 
	 	(B)	 	All conditions to the closing of
the Acquisition (Enson) (other than payment of the
consideration) are satisfied or waived and, upon the funding of
the Term Loans, the Acquisition (Enson) shall be consummated;
and
	 
	 	(C)	 	Upon the closing of the
Acquisition (Enson), the Buyer shall own all of the issued and
outstanding shares of common stock of the Target.

     (x) Evidence that the Seller (Enson) has received the full amount of the
purchase price under the Acquisition Agreement (Enson) in excess of the amount of
the Term Loan.

21

 

     (xi) A certificate dated the Effective Date of the chief executive officer or
chief financial officer of the Borrower certifying as to the matters set forth in
Sections 3.2(a) and (b) below.

     (xii) Copies of (1) audited financial statements of the Target for the fiscal
years ended March 31, 2008, March 31, 2009, and March 31, 2010, prepared in
accordance with Hong Kong financial reporting standards, (2) unaudited financial
statements of the Target for the five months ending August 31, 2010, prepared in
accordance with Hong Kong financial reporting standards, (3) projections and
unaudited consolidated financial statements of the Borrower giving pro forma effect
to the Acquisition (Enson) demonstrating, to the Bank’s reasonable satisfaction, the
solvency of the Borrower and each of its Subsidiaries and compliance with this
Agreement, and (4) tax and accounting reports with respect to the Borrower after
giving effect to the Acquisition (Enson) prepared by an accounting firm reasonably
acceptable to the Bank, .

     (xiii) ACORD 24 and 25 certificates of insurance with respect to each of the
businesses and real properties of the Borrower and its Restricted Subsidiaries in
such amounts and with such carriers as are reasonably acceptable to the Bank

     (xiv) Original stock certificates evidencing 65% of the Equity Interests in the
Target.

     (b) Opinions.

     (i) The Borrower shall have requested Richard A. Firehammer, Jr., its Senior
Vice President, General Counsel and Secretary, to prepare a written opinion,
addressed to the Bank and dated the Effective Date, covering the matters set forth
in Exhibit B, and such opinion shall have been delivered to the Bank.

     (ii) The Borrower shall have requested Jones Day, its Hong Kong local counsel,
to prepare a written opinion, addressed to the Bank and dated the Effective Date, in
form and substances satisfactory to the Bank, and such opinion shall have been
delivered to the Bank.

     (c) Compliance. The Borrower shall have performed and complied with all agreements,
terms, and conditions in this Agreement required to be performed or complied with by the Borrower
prior to or simultaneously with the Effective Date.

     (d) Pledge Agreement. The Pledge Agreement (or financing statements with respect
thereto) shall have been appropriately filed or recorded to the satisfaction of the Bank; any
pledged collateral shall have been duly delivered to the Bank; any title insurance required by the
Bank (with endorsements required by the Bank) shall have been obtained and be satisfactory to the
Bank; and the priority and perfection of the Liens created by the Pledge Agreement shall have been
established to the satisfaction of the Bank and its counsel.

     (e) Form M1. A Form M1 shall have been prepared and filed in Hong Kong.

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     (f) Other Matters. All corporate and legal proceedings relating to the Borrower and
all instruments and agreements in connection with the transactions contemplated by this Agreement
shall be satisfactory in scope, form, and substance to the Bank and its counsel, and the Bank shall
have received all information and copies of all documents, including records of corporate
proceedings, as the Bank or its counsel reasonably has requested in connection therewith, such
documents where appropriate to be certified by proper corporate or governmental authorities.

     (g) Fees and Expenses. The Bank shall have received all other fees and other amounts
due and payable by the Borrower on or prior to the Effective Date, including the facility fee
described in Section 2.14 and the reasonable fees and expenses of counsel to the Bank payable
pursuant to Section 8.2.

Any one or more of the conditions set forth above that the Borrower has not satisfied on or before
the date of disbursement of the Term Loan and the initial Revolving Loan under this Agreement shall
not be deemed permanently waived by the Bank unless the Bank waives the same in a writing that
expressly states that the waiver is permanent, and in all cases in which the waiver is not stated
to be permanent the Bank may at any later time insist upon compliance and satisfaction of any such
condition as a condition to any subsequent Revolving Loan or Letter of Credit hereunder, and the
Borrower’s failure to comply with any such condition within 5 Banking Days’ written notice from the
Bank to the Borrower shall constitute an Event of Default under this Agreement.

     Section 3.2. Conditions Precedent to the Term Loan and all Revolving Loans and Letters of
Credit. The Bank’s obligation to make the Term Loan or any Revolving Loan (including the
initial Revolving Loan) or to issue any Letters of Credit (including the initial Letter of Credit)
shall be subject to fulfillment of the following conditions:

     (a) Representations and Warranties. The representations and warranties in Article IV
shall be true and correct on and as of the Effective Date and on the date of each Revolving Loan
and the date of issuance of each Letter of Credit with the same force and effect as if made on such
dates.

     (b) No Default. No Default or Event of Default shall have occurred on the Effective
Date and on the date of each Revolving Loan and the date of issuance of each Letter of Credit or
will exist after giving effect to each Revolving Loan made or Letter of Credit issued on such
dates.

     (c) Notices and Requests. The Bank shall have received the Borrower’s request for
such Revolving Loan as required under Section 2.2 or its application for such Letter of Credit
specified under Section 2.8.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

     To induce the Bank to enter into this Agreement, to make the Loans, and to issue Letters of
Credit, the Borrower represents and warrants to the Bank:

     Section 4.1. Organization, Standing, Etc. The Borrower is a corporation duly incorporated, validly existing, and in good standing
under the laws of the State of Delaware and has all requisite power and authority to carry on its
business as now conducted, to enter into this

23

 

Agreement, to issue the Notes, and to perform its
obligations under the Transaction Documents. Each Restricted Subsidiary is duly organized, validly
existing, and in good standing under the laws of the jurisdiction of its organization and has all
requisite power and authority to carry on its business as now conducted. Each of the Borrower and
the Restricted Subsidiaries (a) holds all certificates of authority, licenses, and permits
necessary to carry on its business as presently conducted in each jurisdiction in which it is
carrying on such business, except where the failure to hold such certificates, licenses, or permits
could not constitute a Material Adverse Occurrence and (b) is duly qualified and in good standing
as a foreign corporation (or other organization) in each jurisdiction in which the character of the
properties it owns, leases, or operates or the business it conducts makes such qualification
necessary and the failure so to qualify could permanently preclude the Borrower or such Restricted
Subsidiary from enforcing its rights with respect to any assets or expose the Borrower to any
Material Adverse Occurrence.

     Section 4.2. Authorization and Validity. The execution, delivery, and performance by
the Borrower of the Transaction Documents have been duly authorized by all necessary corporate
action by the Borrower. This Agreement constitutes, and the Notes when executed will constitute,
the legal, valid, and binding obligation of the Borrower, enforceable against the Borrower in
accordance with its terms, subject to limitations as to enforceability that might result from
bankruptcy, insolvency, moratorium, and other similar laws affecting creditors’ rights generally
and subject to limitations on the availability of equitable remedies.

     Section 4.3. No Conflict; No Default. The Borrower’s execution, delivery, and
performance of the Transaction Documents will not (a) violate any provision of any law, statute,
rule, or regulation or any order, writ, judgment, injunction, decree, determination, or award of
any court, governmental agency, or arbitrator presently in effect applying to the Borrower, (b)
violate or contravene any provision of the Borrower’s Restated Certificate of Incorporation or
Amended and Restated Bylaws, or (c) result in a breach of or constitute a default under any
indenture, loan or credit agreement, or other agreement, lease, or instrument to which the Borrower
is a party or by which it or any of its properties may be bound or result in the creation of any
Lien thereunder. Neither the Borrower nor any Restricted Subsidiary is in default under or in
violation of any such law, statute, rule, regulation, order, writ, judgment, injunction, decree,
determination, or award or any such indenture, loan or credit agreement, or other agreement, lease,
or instrument in any case in which the consequences of such default or violation could constitute a
Material Adverse Occurrence.

     Section 4.4. Government Consent. No order, consent, approval, license, authorization,
or validation of, filing, recording, or registration with, or exemption by any governmental or
public body or authority is required on the Borrower’s part to authorize, or is required in
connection with, the execution, delivery, and
performance of, or the legality, validity, binding effect, or enforceability of, the
Transaction Documents.

     Section 4.5. Financial Statements and Condition.

     (a) The audited consolidated financial statements of the Target as at its fiscal years ended
March 31, 2008, March 31, 2009, and March 31, 2010, and the unaudited financial statements of the
Target for the five months ending August 31, 2010, copies of each of which have been delivered to
the Bank, were prepared in accordance with Hong Kong financial reporting standards on a consistent
basis

24

 

(except for, as to the interim statements, the absence of footnotes and normal year-end audit
adjustments) and fairly present the consolidated financial condition of the Target as at such dates
and the results of its operations and changes in financial position for the respective periods then
ended. As of the dates of such financial statements, the Target did not have any material
obligation, contingent liability, liability for taxes, or long-term lease obligation that is not
reflected in such financial statements or in the notes thereto. Since March 31, 2010, there has
been no Material Adverse Occurrence with respect to the Target. On and after the Effective Date,
there has been no Material Adverse Occurrence with respect to the Borrower.

     (b) The consolidated financial projections (including an operating budget and a cash flow
budget) of the Borrower delivered pursuant to Section 3.1(a)(xi) were prepared by the Borrower in
good faith utilizing assumptions believed by the Borrower to be reasonable at the time. The
accompanying unaudited consolidated pro forma balance sheet of the Borrower as at the Effective
Date, adjusted to give effect to the consummation of the Acquisition (Enson), the transactions
contemplated by the Transaction Documents, and the financings contemplated hereby as if such
transactions had occurred on such date (excluding the impact of the revaluation of the balance
sheet in accordance with FASB 141 “Business Combinations”), is consistent in all material respects
with such projections.

     Section 4.6. Litigation. Other than as set forth in the Borrower’s financial
statements delivered pursuant to Section 4.5, there are no actions, suits, or proceedings pending
or, to the Borrower’s knowledge, threatened against or affecting the Borrower, any Subsidiary, or
any of their properties before any court or arbitrator or any governmental department, board,
agency, or other instrumentality that, if determined adversely to the Borrower or any Subsidiary,
could constitute a Material Adverse Occurrence, and there are no unsatisfied judgments against the
Borrower or any Subsidiary the satisfaction or payment of which could constitute a Material Adverse
Occurrence.

     Section 4.7. Environmental, Health and Safety Laws. There exists no violation by the
Borrower or any Restricted Subsidiary of any applicable federal, state, or local law, rule or
regulation, or order of any government, governmental department, board, agency, or other
instrumentality relating to environmental, pollution, health, or safety matters that has imposed,
will impose, or threatens to impose a material liability on the Borrower or a Restricted Subsidiary
or that has required or would require a material expenditure by the Borrower or a Restricted
Subsidiary to cure. Neither the Borrower nor any Restricted Subsidiary has received any notice to
the effect that any part of its operations or properties is not in material compliance with any
such law, rule, regulation, or order or notice
that it or its property is the subject of any governmental investigation evaluating whether
any remedial action is needed to respond to any release of any toxic or hazardous waste or
substance into the environment, which non-compliance or remedial action could constitute a Material
Adverse Occurrence. Except as set out on Schedule 4.7, the Borrower has no knowledge that
it, its property, any Restricted Subsidiary, or any Restricted Subsidiary’s property will become
subject to environmental laws or regulations during the term of this Agreement, compliance with
which could require Capital Expenditures that could constitute a Material Adverse Occurrence.

     Section 4.8. ERISA. Each Plan is in substantial compliance with all applicable
requirements of ERISA and the Code and with all material applicable rulings and regulations issued
under the provisions of ERISA and the Code setting forth those requirements. No

25

 

Reportable Event
has occurred and is continuing with respect to any Plan. All of the minimum funding standards
applicable to such Plans have been satisfied and there exists no event or condition that would
reasonably be expected to result in the institution of proceedings to terminate any Plan under §
4042 of ERISA. With respect to each Plan subject to Title IV of ERISA, as of the most recent
valuation date for such Plan, the present value (determined on the basis of reasonable assumptions
employed by the independent actuary for such Plan and previously furnished in writing to the Bank)
of such Plan’s projected benefit obligations did not exceed the fair market value of such Plan’s
assets.

     Section 4.9. Federal Reserve Regulations. Neither the Borrower nor any Subsidiary is
engaged principally or as one of its important activities in the business of extending credit for
the purpose of purchasing or carrying margin stock (as defined in Regulation U of the Board). The
value of all margin stock owned by the Borrower does not constitute more than 25% of the value of
the assets of the Borrower.

     Section 4.10. Title to Property; Leases; Liens; Subordination. Each of the Borrower
and its Restricted Subsidiaries has (a) good and marketable title to its real properties and (b)
good and sufficient title to, or valid, subsisting, and enforceable leasehold interest in, its
other material properties, including all real properties and other properties and assets referred
to as owned by the Borrower or any of its Restricted Subsidiaries in the most recent financial
statement referred to in Section 5.1 (other than property disposed of since the date of such
financial statements in the ordinary course of business). None of such properties is subject to a
Lien, except as allowed under Section 6.12. The Borrower has not subordinated any of its rights
under any obligation owing to it to the rights of any other person.

     Section 4.11. Taxes. Each of the Borrower and the Subsidiaries has filed all federal,
state, and local tax returns required to be filed and has paid or made provision for the payment of
all taxes due and payable pursuant to such returns and pursuant to any assessments made against it
or any of its property and all other taxes, fees, and other charges imposed on it or any of its
property by any governmental authority (other than taxes, fees, or charges the amount or validity
of which is currently being contested in good faith by appropriate proceedings and with respect to
which reserves in accordance with GAAP have been provided on the books of the Borrower). No tax
Liens have been filed and no material claims are being asserted with respect to any such
taxes, fees, or charges. The charges, accruals, and reserves on the books of the Borrower in
respect of taxes and other governmental charges are adequate, and the Borrower knows of no proposed
material tax assessment against it or any Subsidiary or any basis therefor.

     Section 4.12. Trademarks; Patents. Each of the Borrower and the Restricted
Subsidiaries possesses or has the right to use all of the patents, trademarks, trade names, service
marks, and copyrights, and applications therefor, and all technology, know-how, processes, methods,
and designs used in or necessary for the conduct of its business, without known conflict with the
rights of others.

     Section 4.13. Burdensome Restrictions. Neither the Borrower nor any Restricted
Subsidiary is a party to or otherwise bound by any indenture, loan or credit agreement, or lease or
other agreement or instrument or subject to any charter, corporate, or partnership restriction that
could constitute a Material Adverse Occurrence.

26

 

     Section 4.14. Force Majeure. Since the date of the most recent financial statement
referred to in Section 5.1, the business, properties, and other assets of the Borrower and the
Restricted Subsidiaries have not been materially and adversely affected in any way as the result of
any fire or other casualty, strike, lockout, or other labor trouble, embargo, sabotage,
confiscation, condemnation, riot, civil disturbance, activity of armed forces, or act of God.

     Section 4.15. Investment Company Act. Neither the Borrower nor any Subsidiary is an
“investment company” or a company “controlled” by an investment company within the meaning of the
Investment Company Act of 1940, as amended.

     Section 4.16. Retirement Benefits. Except as required under § 4980B of the Code, §
601 of ERISA, or applicable state law, the Borrower is not obligated to provide post-retirement
medical or insurance benefits with respect to employees or former employees.

     Section 4.17. Full Disclosure. Subject to the following sentence, neither the
financial statements referred to in Section 5.1 nor any other certificate, written statement,
exhibit, or report furnished by or on behalf of the Borrower in connection with or pursuant to this
Agreement contains any untrue statement of a material fact or omits any material fact necessary to
make the statements therein not misleading. Certificates or statements furnished by or on behalf
of the Borrower to the Bank consisting of projections or forecasts of future results or events have
been prepared in good faith and based on
good faith estimates and assumptions of the management of the Borrower, and the Borrower has
no reason to believe that such projections or forecasts are not reasonable.

     Section 4.18. Subsidiaries. Schedule 4.18 sets forth as of the date of this
Agreement (after giving effect to the Acquisition (Enson)) a list of all Subsidiaries, the number
and percentage of the shares of each class of Equity Interests owned beneficially or of record by
the Borrower or any Subsidiary therein and the jurisdiction of incorporation of each Subsidiary,
and designates whether such Subsidiary is a Restricted Subsidiary.

     Section 4.19. Labor Matters. There are no pending or threatened strikes, lockouts, or
slowdowns against the Borrower or any Restricted Subsidiary. Neither the Borrower nor any
Restricted Subsidiary has been or is in violation in any material respect of the Fair Labor
Standards Act or any other applicable federal, state, local, or foreign law dealing with such
matters. All payments due from the Borrower or any Restricted Subsidiary on account of wages and
employee health and welfare insurance and other benefits (in each case, except for de minimis
amounts) have been paid or accrued as a liability on the books of the Borrower or such Restricted
Subsidiary. The consummation of the transactions contemplated under the Transaction Documents will
not give rise to any right of termination or right of renegotiation on the part of any union under
any collective bargaining agreement to which the Borrower or any Restricted Subsidiary is bound.

     Section 4.20. Solvency. As of the Effective Date, after the making of any Loan and
giving effect thereto and after giving effect to the Acquisition (Enson), (a) the fair value of the
assets of the Borrower will exceed its debts and liabilities, subordinated, contingent, or
otherwise; (b) the present fair saleable value of the property of the Borrower will be greater than
the amount that will be required to pay the probable liability of its debts and other liabilities,

27

 

subordinated, contingent, or otherwise, as such debts and other liabilities become absolute and
matured; (c) the Borrower will be able to pay its debts and liabilities, subordinated, contingent,
or otherwise, as such debts and liabilities become absolute and matured; and (d) the Borrower will
not have unreasonably small capital with which to conduct the business in which it is engaged as
such business is proposed to be conducted following the Effective Date.

     Section 4.21. Representations and Warranties of Seller. All representations and warranties of the Borrower, and, as of the date hereof, to the
knowledge of the Borrower, the Seller (Enson), in the Acquisition Agreement (Enson) are true and
correct in all material respects.

ARTICLE V.

AFFIRMATIVE COVENANTS

     Until any obligation of the Bank hereunder to make the Loans and to issue Letters of Credit
has expired or terminated, the Notes and all of the other Obligations have been paid in
full, and all outstanding Letters of Credit have expired or the liability of the Bank thereon
has otherwise been discharged, unless the Bank otherwise consents in writing:

     Section 5.1. Financial Statements and Reports. The Borrower will furnish to the Bank:

     (a) As soon as available and in any event within 120 days after the end of each fiscal year of
the Borrower, (i) the consolidated financial statements of the Borrower and the Subsidiaries
consisting of at least statements of income, cash flow, and changes in stockholders’ equity, and a
consolidated balance sheet as at the end of such year, setting forth in each case in comparative
form corresponding figures from the previous annual audit, certified without qualification by
independent certified public accountants of recognized national standing selected by the Borrower
and acceptable to the Bank, together with any management letters, management reports, or other
supplementary comments or reports to the Borrower or its board of directors furnished by such
accountants and (ii) unaudited consolidating financial statements for the Borrower.

     (b) As soon as available and in any event within 60 days after the end of each fiscal quarter,
unaudited consolidated statements of income, cash flow, and changes in stockholders’ equity for the
Borrower and the Subsidiaries for such quarter and for the period from the beginning of such fiscal
year to the end of such quarter, and a consolidated balance sheet of the Borrower as at the end of
such quarter, setting forth in comparative form figures for the corresponding period for the
preceding fiscal year, accompanied by a certificate signed by the chief financial officer of the
Borrower stating that such financial statements present fairly the financial condition of the
Borrower and the Subsidiaries and that the same have been prepared in accordance with GAAP (except
for the absence of footnotes and subject to year-end audit adjustments as to the interim
statements).

     (c) As soon as practicable and in any event within 60 days after the end of each fiscal
quarter, a Compliance Certificate in the form of Exhibit C signed by the chief financial
officer of the Borrower and demonstrating in reasonable detail compliance (or noncompliance, as the
case may be) with Sections 5.14, 6.14, 6.15, and 6.16 as at the end of such quarter and stating
that as at the end of such quarter there existed no Default or Event of Default or, if a Default or
Event of Default existed,

28

 

specifying the nature and period of existence thereof and what action the
Borrower proposes to take with respect thereto.

     (d) As soon as practicable and in any event within 120 days after the beginning of each fiscal
year of the Borrower, statements of forecasted consolidated income for the Borrower and the
Subsidiaries on a quarterly basis in such fiscal year and a forecasted consolidated balance sheet
of the Borrower and the Subsidiaries, together with supporting assumptions, as at the end of each
fiscal quarter, all in reasonable detail and reasonably satisfactory in scope to the Bank.

     (e) As soon as practicable and in any event within 30 days after the beginning of each fiscal
year of the Borrower ACORD 24 and 25 certificates of insurance with respect to each of the
businesses and real properties of the Borrower and its Restricted Subsidiaries in such amounts and
with such carriers as are reasonably acceptable to the Bank.

     (f) Immediately upon any officer of the Borrower becoming aware of any Default or Event of
Default, a notice describing the nature thereof and what action the Borrower proposes to take with
respect thereto.

     (g) Immediately upon any officer of the Borrower becoming aware of the occurrence, with
respect to any Plan, of any Reportable Event or any Prohibited Transaction, a notice specifying the
nature thereof and what action the Borrower proposes to take with respect thereto, and, when
received, copies of any notice from PBGC of intention to terminate or have a trustee appointed for
any Plan.

     (h) Immediately upon any officer of the Borrower becoming aware of any matter that has
resulted or could result in a Material Adverse Occurrence, a notice from the Borrower describing
the nature thereof and what action Borrower proposes to take with respect thereto.

     (i) Immediately upon any officer of the Borrower becoming aware of (i) the commencement of any
action, suit, investigation, proceeding, or arbitration before any court or arbitrator or any
governmental department, board, agency, or other instrumentality affecting the Borrower, any
Subsidiary, or any property of such Person, or to which the Borrower or any Subsidiary is a party
(other than litigation where insurance insures against the damages claimed and the insurer has
assumed defense of the litigation without reservation), in each case in which an adverse
determination or result could individually or in the aggregate constitute a Material Adverse
Occurrence; or (ii) any adverse ruling that occurs in any litigation, arbitration, or governmental
investigation or proceeding previously disclosed by the Borrower or any Subsidiary that, if
determined adversely to the Borrower or a Subsidiary, could constitute a Material Adverse
Occurrence, a notice from the Borrower describing the nature and status thereof and what action the
Borrower proposes to take with respect thereto, to the extent such notice does not violate any
confidentiality agreement, order of the court or breach any attorney-client privileged
communication provided that the Borrower or such Subsidiary has undertaken good faith efforts to
obtain consent to disclosure under such confidentiality agreement or court order and to prepare a
disclosure which would not breach attorney-client privileged communication.

     (j) Promptly upon the mailing or filing thereof, copies of all financial statements, reports,
and proxy statements mailed to the Borrower’s shareholders, and copies of all registration
statements, periodic reports, and other documents filed with the Securities and Exchange Commission
(or any successor thereto) or any national securities exchange.

29

 

     (k) As promptly as practicable (but in any event not later than 30 days) after any default or
breach by the Borrower occurs under the Acquisition Documents (Enson), any senior officer of the
Borrower becomes aware or should have become aware of the occurrence of any default or breach by
any other party to the Acquisition Documents (Enson), or the Borrower provides or receives any
notice of, or of any condition or event that has resulted in, or could reasonably be expected to
result in, an indemnity claim under the Acquisition Documents (Enson) by any party thereto, a
certificate signed by the chief financial officer, treasurer, or controller of the Borrower
specifying in reasonable detail the nature and period of existence thereof and what action the
Borrower has taken, is taking, or proposes to take with respect thereto.

     (l) From time to time, such other information regarding the business, operation, and financial
condition of the Borrower and the Subsidiaries as the Bank reasonably requests.

     Section 5.2. Existence. The Borrower shall maintain, and cause each Restricted
Subsidiary to maintain, its corporate existence in good standing under the laws of its jurisdiction
of organization and its qualification to transact business in each jurisdiction where failure so to
qualify would permanently preclude the Borrower or such Restricted Subsidiary from enforcing its
rights with respect to any material asset or would expose the Borrower or such Restricted
Subsidiary to any material liability; provided, however, that nothing herein shall prohibit the
merger or liquidation of any Subsidiary allowed under Section 6.1.

     Section 5.3. Insurance. The Borrower shall maintain, and cause each Restricted
Subsidiary to maintain, with financially sound and reputable insurance companies such insurance as
is required by law and such other insurance in such amounts and against such hazards as is
reasonably customary in the case of reputable firms engaged in the same or similar business and
similarly situated.

     Section 5.4. Payment of Taxes and Claims. The Borrower shall file, and cause each
Subsidiary to file, all tax returns and reports required by law to be filed by it and shall pay,
and cause each Subsidiary to pay, before they become delinquent all taxes, assessments, and
governmental charges and levies imposed upon it or its property and all claims or demands of any
kind (including but not limited to those of suppliers, mechanics, carriers, warehouses, landlords,
and other like Persons) that, if unpaid, might result in the creation of a Lien upon its property;
provided that the foregoing items need not be paid if they are being contested in good faith by
appropriate proceedings, as long as the Borrower’s or such Subsidiary’s title to its property is
not materially adversely affected, its use of such property in the ordinary course of its business
is not materially interfered with, and adequate reserves with respect thereto have been set aside
on its books in accordance with GAAP.

     Section 5.5. Inspection. The Borrower shall permit any Person designated by the Bank
to visit and inspect any of the properties, books, and financial records of the Borrower and the
Subsidiaries, to examine and to make copies of the books of accounts and other financial records of
the Borrower and the Subsidiaries, and to discuss the affairs, finances, and accounts of the
Borrower and the Subsidiaries with, and to be advised as to the same by, its officers at such
reasonable times and intervals as the Bank designates.

30

 

     Section 5.6. Maintenance of Properties. The Borrower shall maintain, and cause each
Restricted Subsidiary to maintain, its properties used or useful in the conduct of its business in
good condition, repair, and working order, and supplied with all necessary equipment, and make all
necessary repairs, renewals, replacements, betterments, and improvements thereto, all as reasonably
necessary for the business carried on in connection therewith to be properly and advantageously
conducted at all times.

     Section 5.7. Books and Records. The Borrower shall keep, and cause each Subsidiary to
keep, adequate and proper records and books of account in which full and correct entries will be
made of its dealings, business, and affairs.

     Section 5.8. Compliance. The Borrower shall comply, and cause each Restricted
Subsidiary to comply, in all material respects with all laws, rules, regulations, orders, writs,
judgments, injunctions, decrees, or awards to which it may be subject; provided, however, that
failure so to comply shall not be a breach of this covenant if such failure could not constitute a
Material Adverse Occurrence and the Borrower or such Restricted Subsidiary is acting in good faith
and with reasonable dispatch to cure such noncompliance.

     Section 5.9. ERISA. The Borrower shall maintain, and cause each Subsidiary to
maintain, each Plan in compliance with all material applicable requirements of ERISA and of the
Code and with all applicable rulings and regulations issued under the provisions of ERISA and of
the Code and shall not, and shall not permit any of the ERISA Affiliates to, (a) engage in any
transaction in connection with which the Borrower or any of the ERISA Affiliates would be subject
to either a civil penalty assessed pursuant to § 502(i) of ERISA or a tax imposed by § 4975 of the
Code, in either case in an amount exceeding $50,000, (b) fail to make full payment when due of all
amounts that, under the provisions of any Plan, the Borrower or any ERISA Affiliate is required to
pay as contributions thereto, or permit to exist any accumulated funding deficiency (as defined in
§ 302 of ERISA and § 412 of the Code), whether or not waived, with respect to any Plan in an
aggregate amount exceeding $50,000, or (c) fail to make any payments in an aggregate amount
exceeding $50,000 to any Multiemployer Plan that the Borrower or any of the ERISA Affiliates is
required to make under any agreement relating to such Multiemployer Plan or any law pertaining
thereto.

     Section 5.10. Environmental Matters; Reporting. The Borrower shall observe and comply
with, and cause each Restricted Subsidiary to observe and comply with, all laws, rules,
regulations, and orders of any government or government agency relating to health, safety,
pollution, hazardous materials, or other environmental matters to the extent non-compliance could
result in a material liability or otherwise constitute a Material Adverse Occurrence. The Borrower
shall give the Bank prompt written notice of any violation as to any environmental matter by the
Borrower or any Restricted Subsidiary and of the commencement of any judicial or administrative
proceeding relating to health, safety, or environmental matters (a) in which an adverse
determination or result could result in the revocation of or have a material adverse effect on any
operating permits, air emission permits, water discharge permits, hazardous waste permits, or other
permits held by the Borrower or any Restricted Subsidiary that are material to the operations of
the Borrower or such Restricted Subsidiary, or (b) that will or threatens to impose a material
liability on the Borrower
or such Restricted Subsidiary to any Person or that

31

 

will require a material expenditure by the
Borrower or such Restricted Subsidiary to cure any alleged problem or violation.

     Section 5.11. Further Assurances. The Borrower shall promptly correct any defect or
error that is discovered in any Transaction Document or in the execution, acknowledgment, or
recordation thereof. Promptly upon request by the Bank, the Borrower also shall, and shall cause
each Restricted Subsidiary to, do, execute, acknowledge, deliver, record, re-record, file, re-file,
register, and re-register such deeds, conveyances, mortgages, deeds of trust, trust deeds,
assignments, estoppel certificates, financing statements and continuations thereof, notices of
assignment, transfers, certificates, assurances, and other instruments as the Bank reasonably
requires from time to time (a) to carry out more effectively the purposes of the Loan Documents;
and (b) to better assure, convey, grant, assign, transfer, preserve, protect, and confirm unto the
Bank the rights granted now or hereafter intended to be granted to the Bank under any Loan Document
or under any other instrument executed in connection with any Loan Document or that the Borrower
may be or become bound to convey, mortgage, or assign to the Bank to carry out the intention or
facilitate the performance of the provisions of any Loan Document. The Borrower shall furnish to
the Bank evidence satisfactory to the Bank of every such recording, filing, or registration.

     Section 5.12. Compliance with Terms of Material Contracts. The Borrower shall, and
shall cause each Restricted Subsidiary to, make all payments and otherwise perform all obligations
in respect of all material contracts to which the Borrower or any Restricted Subsidiary is a party,
including without limitation the Acquisition Documents (Enson).

     Section 5.13. Maintenance of Bank Accounts. The Borrower shall maintain its primary
United States borrowing, depository, treasury management, and foreign exchange relationships with
the Bank.

     Section 5.14. Additional Restricted Subsidiaries. In the event that upon (a) the
delivery of a Compliance Certificate pursuant to Section 5.1(c) or (b) the completion of any
transaction involving the Borrower or any of its Subsidiaries, including the formation or
acquisition of any Subsidiary, the aggregate amount of the consolidated assets or aggregate EBITDA
of the Borrower and the Restricted Subsidiaries existing as of the date for which such Compliance
Certificate was prepared or upon giving effect to such transaction was, respectively, either less
than (i) 70% of the aggregate amount of the consolidated assets of the Borrower and the Borrower’s
Subsidiaries or (ii) 70% of the aggregate consolidated EBITDA of the Borrower and the Borrower’s
Subsidiaries, then the Borrower shall, within 30 days thereafter, designate one or more additional
Subsidiaries as Restricted Subsidiaries, and each such additional Restricted Subsidiary shall
thereafter be a Restricted Subsidiary for all purposes under this Agreement.

ARTICLE VI.

NEGATIVE COVENANTS

     Until any obligation of the Bank hereunder to make the Loans and to issue Letters of Credit
has expired or terminated, the Notes and all of the other Obligations have been paid in full, and
all outstanding Letters of Credit have expired or the liability of the Bank thereon has otherwise
been discharged, unless the Bank otherwise consents in writing:

32

 

     Section 6.1. Merger. The Borrower shall not merge, consolidate, or enter into any
analogous reorganization or transaction with any Person or liquidate, wind up, or dissolve itself
(or suffer any liquidation or dissolution) nor permit any Restricted Subsidiary to do any of the
foregoing; provided, however, any Subsidiary may be merged with or liquidated into the Borrower or
any wholly-owned Subsidiary (if the Borrower or such wholly-owned Subsidiary is the surviving
corporation) and after giving effect to such transaction, the Borrower complies with Section 5.14.

     Section 6.2. Disposition of Assets. The Borrower shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, sell, assign, lease, convey, transfer, or
otherwise dispose of (whether in one transaction or a series of transactions) any property
(including accounts and notes receivable, with or without recourse) or enter into any agreement to
do any of the foregoing, except:

     (a) dispositions of inventory or used, worn-out, or surplus equipment and other equipment no
longer useful in the business of the Borrower or a Restricted Subsidiary, in each case determined
and disposed of in the ordinary course of business;

     (b) the sale of equipment to the extent that such equipment is exchanged for credit against
the purchase price of similar replacement equipment, or the proceeds of such sale are applied with
reasonable promptness to the purchase price of such replacement equipment; and

     (c) other dispositions of property during the term of this Agreement whose net book value in
the aggregate does not exceed 5% of the Borrower’s total consolidated assets as shown on its
balance sheet for its most recent prior fiscal quarter.

     Section 6.3. Plans. The Borrower shall not permit, and shall not allow any Subsidiary
to permit, any event to occur or condition to exist that would permit any Plan to terminate under
any circumstances that would cause the Lien provided for in § 4068 of ERISA to attach to any assets
of the Borrower or any Subsidiary; and the Borrower shall not permit, as of the most recent
valuation date for any Plan subject to Title IV of ERISA, the present value (determined on the
basis of reasonable assumptions employed by the independent actuary for such Plan and previously
furnished in writing to the Bank) of such Plan’s projected benefit obligations to exceed the fair
market value of such Plan’s assets.

     Section 6.4. Change in Nature of Business. The Borrower shall not, and shall not permit any Restricted Subsidiary to, make any
material change in the nature of the business of the Borrower or such Restricted Subsidiary, as
carried on at the date hereof.

     Section 6.5. Negative Pledges; Subsidiary Restrictions. The Borrower shall not, and
shall not permit any Subsidiary to, enter into any agreement, bond, note, or other instrument with
or for the benefit of any Person other than the Bank that would (a) except in connection with Liens
permitted under Section 6.12, prohibit the Borrower or such Subsidiary from granting, or otherwise
limit the ability of the Borrower or such Subsidiary to grant, to the Bank any Lien on any assets
or properties of the Borrower or such Subsidiary, or (b) require the Borrower or such Subsidiary to
grant a Lien to any other Person if the Borrower or such Subsidiary grants any Lien to the Bank.
The Borrower shall not permit any Subsidiary to place or allow any restriction,

33

 

directly or
indirectly, on the ability of such Subsidiary to (x) pay dividends or any distributions on or with
respect to such Subsidiary’s capital stock or (y) make loans or other cash payments to the
Borrower.

     Section 6.6. Restricted Payments. The Borrower shall not make any Restricted Payment
if a Default or Event of Default has occurred or is continuing or a Default or Event of Default
would exist after giving effect to the making of any such Restricted Payment immediately or by
reference to pro forma compliance with under the most recent Compliance Certificate delivered by
the Borrower pursuant to Section 5.1(c).

     Section 6.7. Transactions with Affiliates. The Borrower shall not, and shall permit
any Restricted Subsidiary to, enter into any transaction with any Affiliate of the Borrower, except
upon fair and reasonable terms no less favorable than the Borrower, or such Restricted Subsidiary,
would obtain in a comparable arm’s-length transaction with a Person not an Affiliate.

     Section 6.8. Accounting Changes; Acquisition Documents. The Borrower shall not, and
shall not permit any Subsidiary to, (a) make any significant change in accounting treatment or
reporting practices, except as required by GAAP, or change its fiscal year or the fiscal year of
any Subsidiary or (b) amend, modify, or change any of the Acquisition Documents (Enson) in any
manner materially adverse in any respect to the rights or interests of the Bank.

     Section 6.9. Subordinated Debt. The Borrower shall not, and shall not permit any
Restricted Subsidiary to, (a) make any scheduled payment of the principal of or interest on any
Subordinated Debt that would be prohibited by the terms of such Subordinated Debt and any related
subordination agreement; (b) directly or indirectly make any prepayment on or purchase, redeem, or
defease any Subordinated Debt or offer to do so (whether such prepayment, purchase or redemption,
or offer with respect thereto is voluntary or mandatory); (c) amend or cancel the subordination
provisions applicable
to any Subordinated Debt; (d) take or omit to take any action if as a result of such action or
omission the subordination of such Subordinated Debt, or any part thereof, to the Obligations might
be terminated, impaired, or adversely affected; or (e) omit to give the Bank prompt notice of any
notice received from any holder of Subordinated Debt, or any trustee therefor, or of any default
under any agreement or instrument relating to any Subordinated Debt by reason whereof such
Subordinated Debt might become or be declared to be due or payable.

     Section 6.10. Investments. The Borrower shall not, and shall not permit any
Restricted Subsidiary to, acquire for value, make, have, or hold any Investments, except:

     (a) Investments existing on the date of this Agreement identified on Schedule 6.10.

     (b) Investments in Subsidiaries after the date of this Agreement, whether through the
formation or acquisition of such Subsidiaries, as long as the Borrower has complied with Section
5.14, no Default or Event of Default then exists or would occur as a result of any such Investment,
and if any such Investment occurs through an Acquisition, such Acquisition is a Permitted
Acquisition.

     (c) Investments in joint ventures, provided that no Default or Event of Default then exists or
would occur as a result of any such Investment.

34

 

     (d) Travel advances to management personnel and employees in the ordinary course of business.

     (e) Investments in readily marketable direct obligations issued or guaranteed by the United
States or any agency thereof and supported by the full faith and credit of the United States.

     (f) Certificates of deposit or bankers’ acceptances issued by any commercial bank organized
under the laws of the United States or any State thereof that has (i) combined capital and surplus
of at least $1,000,000,000, and (ii) a credit rating with respect to its unsecured indebtedness
from a nationally recognized rating service that is reasonably satisfactory to the Bank.

     (g) Commercial paper given the highest rating by a nationally recognized rating service.

     (h) Repurchase agreements relating to securities issued or guaranteed as to principal and
interest by the United States of America with a term of not more than 7 days; provided all
such agreements shall require physical delivery of the securities securing such repurchase
agreement, except those delivered through the Federal Reserve Book Entry System.

     (i) Other readily marketable Investments in debt securities that are reasonably acceptable to
the Bank.

     (j) Any Investment that constitutes a Permitted Acquisition.

     (k) Any Investment arising under a Rate Protection Agreement or Foreign Currency Hedging
Agreement permitted under Section 6.19.

     (l) Other Investments if the aggregate consideration therefor does not exceed $11,500,000,
provided that no Default or Event of Default then exists or would occur as a result of any such
Investment.

     Any Investments under clauses (e), (f), (g), or (h) above must mature within one year of the
acquisition thereof by the Borrower or a Restricted Subsidiary.

     Section 6.11. Indebtedness. The Borrower shall not, and shall not permit any
Restricted Subsidiary to, incur, create, issue, assume, or suffer to exist any Indebtedness,
except:

     (a) The Obligations.

     (b) Current Liabilities, other than for borrowed money, incurred in the ordinary course of
business.

     (c) Indebtedness existing on the date of this Agreement and disclosed on Schedule
6.11, including any extension or refinancing thereof as long as the interest rates and other
financing charges and fees and the principal amount thereof are not increased.

     (d) Indebtedness for the purchase price of equipment used in the ordinary course of the
Borrower’s business, provided, that in no event shall the amount of such purchase-money
indebtedness with respect to any equipment exceed 100% of the fair market value of such equipment.

35

 

     (e) Indebtedness secured by Liens permitted under Section 6.12.

     (f) Indebtedness up to a maximum aggregate amount of $1,000,000 outstanding at any time
incurred in the ordinary course of business and secured by Liens relating to purchase money
financing or Capital Lease Obligations.

     (g) Any Indebtedness arising under a Rate Protection Agreement or Foreign Currency Hedging
Agreement permitted under Section 6.19.

     Section 6.12. Liens. The Borrower shall not, and shall not permit any Subsidiary to,
create, incur, assume, or suffer to exist any Lien, or enter into, or make any commitment to enter
into, any arrangement for the acquisition of any property through conditional sale, lease-purchase,
or other title retention agreements, with respect to any property now owned or hereafter acquired
by the Borrower or a Subsidiary, except:

     (a) Liens at any time created in favor of the Bank.

     (b) Liens existing on the date of this Agreement and disclosed on Schedule 6.12.

     (c) Deposits or pledges to secure payment of workers’ compensation, unemployment insurance,
old age pensions, or other social security obligations, in the ordinary course of business of the
Borrower or a Subsidiary.

     (d) Liens for taxes, fees, assessments, and governmental charges not delinquent or to the
extent that payment therefor is not at the time required to be made in accordance with Section 5.4.

     (e) Liens of carriers, warehousemen, mechanics, and materialmen, and other like Liens arising
in the ordinary course of business, for sums not due or to the extent that payment therefor is not
at the time required to be made in accordance with Section 5.4.

     (f) Liens incurred or deposits or pledges made or given in connection with, or to secure
payment of, indemnity, performance, or other similar bonds.

     (g) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off, or similar rights and remedies as to deposit accounts or other
funds maintained with a creditor depository institution; provided that, as to each deposit account
not maintained with the Bank, (i) such deposit account is not a dedicated cash collateral account
and is not subject to restriction against access by the Borrower or a Subsidiary in excess of those
set forth by regulations promulgated by the Board, and (ii) such deposit account is not intended by
the Borrower or any Subsidiary to provide collateral to the depository institution.

     (h) Encumbrances in the nature of zoning restrictions, easements, and rights or restrictions
of record on the use of real property and landlord’s Liens under leases on the premises rented that
do not materially detract from the value of such property or impair the use thereof in the business
of the Borrower or a Subsidiary.

     (i) The interest of any lessor under any Capitalized Lease entered into after the Effective
Date or purchase money Liens on property acquired after the Effective Date; provided, that (i) the

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Indebtedness secured thereby is permitted by Section 6.11(f) and (ii) such Liens are limited to the
property acquired and do not secure Indebtedness other than the related Capitalized Lease
Obligations or the purchase price of such property.

     Section 6.13. Contingent Liabilities. The Borrower shall not, and shall not permit
any Restricted Subsidiary to, be or become liable on any Contingent Obligations except Contingent
Obligations existing on the date of this Agreement and described on Schedule 6.13 and
Contingent Obligations for the Bank’s benefit.

     Section 6.14. Cash Flow Leverage Ratio. The Borrower shall not permit the Cash Flow
Leverage Ratio, as of the last day of any fiscal quarter for the four consecutive fiscal quarters
ending on that date, to be more than 1.00 to 1.0.

     Section 6.15. Fixed Charge Coverage Ratio. The Borrower shall not permit the Fixed Charge Coverage Ratio, as of the last day of any
fiscal quarter for the four consecutive fiscal quarters ending on that date, to be less than 2.00
to 1.0.

     Section 6.16. Quick Ratio. The Borrower shall not permit the Quick Ratio, as of the
end of each fiscal quarter, to be less than 0.90 to 1.0.

     Section 6.17. Loan Proceeds. The Borrower shall not, and shall not permit any
Subsidiary to, use any part of the proceeds of the Loans directly or indirectly, and whether
immediately, incidentally, or ultimately, (a) to purchase or carry margin stock (as defined in
Regulation U of the Board) or to extend credit to others for the purpose of purchasing or carrying
margin stock or to refund Indebtedness originally incurred for such purpose or (b) for any purpose
that entails a violation of, or that is inconsistent with, the provisions of Regulations U or X of
the Board.

     Section 6.18. Sale and Leaseback Transactions. The Borrower shall not, and shall not
permit any Restricted Subsidiary to, enter into any arrangement, directly or indirectly, whereby it
sells or transfers any property, real or personal, and thereafter leases such property for the same
or a substantially similar purpose or purposes as the property sold or transferred.

     Section 6.19. Rate Protection and Foreign Currency Hedging Agreements. The Borrower
shall not, and shall not permit any Restricted Subsidiary to, enter into any hedging arrangements,
other than any Rate Protection Agreements and Foreign Currency Hedging Agreements.

ARTICLE VII.

EVENTS OF DEFAULT AND REMEDIES

     Section 7.1. Events of Default. The occurrence of any one or more of the following
events shall constitute an Event of Default:

     (a) The Borrower fails to make when due, whether by acceleration or otherwise, any payment of
principal of or interest on the any Note or any other Obligation required to be paid to the Bank
pursuant to this Agreement.

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     (b) Any representation or warranty made by or on behalf of the Borrower or any Subsidiary in
this Agreement, any other Loan Document, or any certificate, statement, report, or document
herewith or hereafter furnished to the Bank pursuant to this Agreement or any other Loan Document
proves to have been false or misleading in any material respect on the date as of which the facts
set forth are stated or certified.

     (c) The Borrower fails to comply with Sections 5.2 or 5.3 or any section of Article VI hereof.

     (d) The Borrower fails to comply with any agreement, covenant, condition, provision, or term
in this Agreement (other than those hereinabove set forth in this Section 7.1), and such failure
continues for 30 calendar days after the earliest of (i) the date the Borrower gives notice of such
failure to the Bank, (ii) the date the Borrower should have given notice of such failure to the
Bank pursuant to Section 5.1, or (iii) the date the Bank gives notice of such failure to the
Borrower.

     (e) The Borrower or any Subsidiary (i) becomes insolvent or generally does not pay its debts
as they mature, (ii) applies for, consents to, or acquiesces in the appointment of a custodian,
trustee, or receiver of the Borrower or such Subsidiary or for a substantial part of the property
thereof, or, in the absence of such application, consent, or acquiescence, a custodian, trustee, or
receiver is appointed for the Borrower or a Subsidiary or for a substantial part of the property
thereof and is not discharged within 45 days, or (iii) makes an assignment for the benefit of
creditors.

     (f) Any bankruptcy, reorganization, debt arrangement, or other proceeding under any bankruptcy
or insolvency law is instituted by or against the Borrower or any Subsidiary, and, if instituted
against the Borrower or any Subsidiary, (i) the Borrower or such Subsidiary has consented thereto
or acquiesced therein, (ii) remains undismissed for 60 days, or (iii) an order for relief therein
has been entered against the Borrower or such Subsidiary.

     (g) Any dissolution or liquidation proceeding not permitted by Section 6.1 is instituted by or
against the Borrower or a Subsidiary, and, if instituted against the Borrower or any Subsidiary, is
consented to or acquiesced in by the Borrower or such Subsidiary or remains for 45 days
undismissed.

     (h) A judgment or judgments for the payment of money in excess of the sum of $500,000 in the
aggregate is rendered against the Borrower or a Restricted Subsidiary and either (i) the judgment
creditor executes on such judgment or (ii) such judgment remains unpaid or undischarged for more
than 60 days from the date of entry thereof or such longer period during which execution of such
judgment is stayed during an appeal from such judgment.

     (i) The maturity of any material Indebtedness of the Borrower (other than Indebtedness under
this Agreement) or a Restricted Subsidiary is accelerated, or the Borrower or a Restricted
Subsidiary fails to pay any such material Indebtedness when due (after the lapse of any applicable
grace period) or, in the case of Indebtedness payable on demand, when demanded (after the lapse of
any applicable grace period), or any event occurs or condition exists and continues for more than
the period of grace, if any, applicable thereto and has the effect of causing such material
Indebtedness to become due prior to its stated maturity, or permitting the holder of any such
Indebtedness or any trustee or other Person acting on behalf of such holder to cause such material
Indebtedness to become due prior to its stated maturity or to realize upon any collateral given as
security therefor. For purposes of this section, Indebtedness of the Borrower or a Restricted
Subsidiary shall be deemed “material” if it exceeds

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$500,000 as to any item of Indebtedness or in
the aggregate for all items of Indebtedness with respect to which any of the events described in
this Section 7.1(i) has occurred.

     (j) Any execution or attachment is issued whereby any substantial part of the property of the
Borrower or any Restricted Subsidiary is taken or attempted to be taken and the same is not vacated
or stayed within 30 days after the issuance thereof.

     (k) This Agreement at any time ceases to be in full force and effect or is judicially declared
null and void, or the Borrower contests the validity or enforceability thereof.

     (l) The Pledge Agreement, at any time, ceases to be in full force and effect or is judicially
declared null and void, the Borrower contests the validity or enforceability thereof, or the Bank
ceases to have a valid and perfected security interest having the priority contemplated thereunder
in all of the collateral described therein.

     (m) Any Change of Control occurs.

     (n) The Borrower is enjoined, restrained, or in any way prevented by court order from
continuing to conduct all or any material part of its business affairs.

     (o) Any Material Adverse Occurrence occurs.

     Section 7.2. Remedies. If (a) any Event of Default described in Sections 7.1 (e), (f)
or (g) occurs with respect to the Borrower, the Revolving Commitment shall automatically terminate,
the Notes and all other Obligations shall automatically become immediately due and payable, and the
Borrower shall without demand pay into the Holding Account an amount equal to the aggregate face
amount of all outstanding Letters of Credit; or (b) any other Event of Default occurs and is
continuing, the Bank may (i) declare the Revolving Commitment terminated, whereupon the Revolving
Commitment shall terminate, (ii) declare the outstanding unpaid principal balance of the Notes the
accrued and unpaid interest thereon, and all other Obligations to be forthwith due and payable,
whereupon the Notes, all accrued and unpaid interest thereon, and all such Obligations shall
immediately become due and payable, in each case without presentment, demand, protest, or other
notice of any kind, all of which are hereby expressly waived, anything in this Agreement or in any
Note to the contrary notwithstanding, and (iii) demand that the Borrower pay into the Holding
Account an amount equal to the aggregate face amount of all outstanding Letters of Credit. Upon
the occurrence of any of the events described in clause (a) or (b) of the preceding sentence the
Bank may exercise all rights and remedies under any of the Loan Documents, and enforce all rights
and remedies under any applicable law.

     Section 7.3. Deposit Accounts; Offset. In addition to the remedies set forth in
Section 7.2, upon any Event of Default and thereafter while the same is continuing, the Borrower
hereby irrevocably authorizes the Bank to set off any Obligations against all Deposits and any and
all claims of the Borrower against the Bank. Such right shall exist whether or not the Bank has
made any demand hereunder or under any other Loan Document, whether or not the Obligations, or any
part thereof, or Deposits are matured or unmatured, and regardless of the existence or adequacy of
any collateral, guaranty, or other security, right, or remedy available to the Bank. The Bank
agrees that, as promptly as is reasonably possible after the exercise of any

39

 

such setoff or
enforcement right, it shall notify the Borrower of its exercise of such setoff or enforcement
right; provided, however, that the failure of the Bank to provide such notice shall not affect the
validity of the exercise of such setoff or enforcement rights. Nothing in this Agreement shall be
deemed a waiver or prohibition of or
restriction on the Bank’s rights of banker’s lien, setoff, and counterclaim available pursuant
to law.

ARTICLE VIII.

MISCELLANEOUS

     Section 8.1. Modifications. Notwithstanding any provisions to the contrary herein,
any term of this Agreement may be amended with the written consent of the Borrower; provided that
no amendment, modification, or waiver of any provision of this Agreement or consent to any
departure by the Borrower therefrom shall in any event be effective unless the same is in writing
and signed by the Bank, and then such amendment, modification, waiver, or consent shall be
effective only in the specific instance and for the purpose for which given.

     Section 8.2. Expenses. Whether or not the transactions contemplated hereby are
consummated, the Borrower agrees to pay or reimburse the Bank upon demand for all reasonable
out-of-pocket expenses paid or incurred by the Bank, including filing and recording costs and fees,
charges and disbursements of outside counsel to the Bank (determined on the basis of such counsel’s
generally applicable rates, which may be higher than the rates such counsel charges the Bank in
certain matters), and/or the allocated costs of in-house counsel incurred from time to time, in
connection with the negotiation, preparation, approval, review, execution, delivery,
administration, amendment, modification, interpretation, collection, and enforcement of this
Agreement and the other Loan Documents and any commitment letters relating thereto paid or incurred
by the Bank in connection with the collection and enforcement of this Agreement and any other Loan
Document. The Borrower’s obligations under this section shall survive any termination of this
Agreement. The Bank acknowledges that it has received a deposit of $10,000 prior to the Effective
Date which will be applied toward such expenses and fees described in Section 2.14 and this Section
8.2, with the Borrower paying such additional amounts as may be required to comply with this
Section and Section 3.1(e).

     Section 8.3. Waivers, Etc. No failure on the part of the Bank or the holder of any
Note to exercise and no delay in exercising any power or right hereunder or under any other Loan
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any power
or right preclude any other or further exercise thereof or the exercise of any other power or
right. The remedies herein and in the other Loan Documents provided are cumulative and not
exclusive of any remedies provided by law.

     Section 8.4. Notices. Except when telephonic notice is expressly authorized by this
Agreement, any notice or other communication to any party in connection with this Agreement shall
be in writing and shall be sent by manual delivery, facsimile transmission, overnight courier, or
United States mail (postage prepaid) addressed to such party at the address specified on the
signature page hereof,
or at such other address as such party specifies to the other party hereto in writing. All
periods of notice shall be measured from the date of delivery if manually delivered, from the date
of sending if sent by facsimile transmission, from the first Banking Day after the date of sending
if sent by overnight courier, or from four days after the date of mailing

40

 

if mailed; provided,
however, that any notice to the Bank under Article II hereof shall be deemed to have been given
only when received by the Bank.

     Section 8.5. Taxes. The Borrower agrees to pay, and save the Bank harmless from all
liability for, any stamp or other taxes that may be payable with respect to the execution or
delivery of this Agreement or the issuance of the Notes, which obligation of the Borrower shall
survive the termination of this Agreement.

     Section 8.6. Successors and Assigns; Participations; Purchasing Banks.

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

     (b) The Bank may, in the ordinary course of its commercial banking business and in accordance
with applicable law, at any time sell to one or more banks or other financial institutions
(“Participants”) participating interests in a minimum amount of $500,000 in any Loan or
other Obligation owing to the Bank, any Note, any Commitment, or any other interest of the Bank
hereunder. In the event of any such sale by the Bank of participating interests to a Participant,
(i) the Bank’s obligations under this Agreement to the other parties to this Agreement shall remain
unchanged, (ii) the Bank shall remain solely responsible for the performance thereof, (iii) the
Bank shall remain the holder of the applicable Note for all purposes under this Agreement, (iv) the
Borrower shall continue to deal solely and directly with the Bank in connection with the Bank’s
rights and obligations under this Agreement, and (v) the agreement pursuant to which such
Participant acquires its participating interest herein shall provide that the Bank shall retain the
sole right and responsibility to enforce the Obligations, including, without limitation, the right
to consent or agree to any amendment, modification, consent, or waiver with respect to this
Agreement or any other Loan Document, provided that such agreement may provide that the Bank will
not consent or agree to any such amendment, modification, consent, or waiver with respect to the
matters set forth in Sections 8.2(a) through (e) without the prior consent of such Participant.
The Borrower agrees that if amounts outstanding under this Agreement, the Notes, or the Loan
Documents are due and unpaid, or have been declared or have become due and payable upon an Event of
Default, each Participant shall be deemed to have, to the extent permitted by applicable law, the
right of setoff in respect of its participating interest in amounts owing under this Agreement and
the Notes and other Loan Documents to the same extent as if the amount of its participating
interest were owing directly to it as a Bank under this Agreement, a Note, or any other Loan
Document. The Borrower also agrees that each Participant shall be entitled to the benefits of
Section 2.4 and Section 2.6 with respect to its participation in the Commitments and Loans;
provided, that no Participant shall be entitled to receive any greater amount pursuant to
such sections than the Bank would have been entitled to receive in respect of the amount of the
participation transferred by the Bank to such Participant had no such transfer occurred.

     (c) The Borrower shall not be liable for any costs incurred by the Bank in effecting any
participation under subparagraph (b) of this subsection and the Bank will reimburse the Borrower
for such costs unless the Borrower has, by separate written agreement, agreed to pay such costs.

41

 

     (d) The Bank may disclose to any assignee or Participant and to any prospective assignee or
Participant any and all financial information in the Bank’s possession concerning the Borrower or
any Subsidiary that has been delivered to the Bank by or on behalf of the Borrower or any
Subsidiary pursuant to this Agreement or that has been delivered to the Bank by or on behalf of the
Borrower or any Subsidiary in connection with the Bank’s credit evaluation of the Borrower or any
Subsidiary prior to entering into this Agreement, provided that prior to disclosing such
information, the Bank shall first obtain the agreement of such prospective assignee or Participant
to comply with the provisions of Section 8.7.

     (e) Notwithstanding any other provision in this Agreement, the Bank may at any time create a
security interest in, or pledge, all or any portion of its rights under and interest in this
Agreement and any note held by it in favor of any federal reserve bank in accordance with
Regulation A of the Board or U.S. Treasury Regulation 31 C.F.R § 203.14, and such Federal Reserve
Bank may enforce such pledge or security interest in any manner permitted under applicable law.

     (f) In connection with this Agreement, the other Transaction Documents, and the transactions
and any litigation relating thereto (including in connection with (i) the negotiation, preparation,
and execution of the Loan Documents, (ii) the perfection of security interests, if any is hereafter
granted, (iii) the completion of any filings or registrations, (iv) the obtaining of any consents,
and (v) any present or future legal representation relating to the administration, amendment,
modification, waiver, or enforcement of, or any restructuring or forbearance arrangement relating
to, any Loan Document), Dorsey & Whitney LLP and any other counsel retained by the Bank in
connection with any of such matters (collectively, the “Bank’s Counsel”) has only
represented and shall only represent the Bank. The Borrower and each assignee or Participant of
the Bank (by accepting an assignment or a participation under Section 8.6 hereof) agrees and
acknowledges that the Bank’s Counsel does not represent it, and no attorney-client relationship
exists between it and the Bank’s Counsel, in connection with any of the matters described in the
preceding sentence.

     Section 8.7. Confidentiality of Information. The Bank shall use reasonable efforts,
but in no event efforts that are less than the efforts the Bank exerts to maintain or protect the
confidentiality of its own confidential information, to assure that information about the Borrower
and its operations, affairs, and financial condition not generally disclosed to the public or to
trade and other creditors that is furnished to the Bank pursuant to the provisions hereof is used
only for the purposes of this Agreement, and any other relationship between the Bank and the
Borrower shall not be divulged to any Person other than the Bank, its Affiliates, and their
respective officers, directors, employees, and agents, except: (a) to their attorneys and
accountants, (b) in connection with the enforcement of the rights of the Bank under the Loan
Documents or otherwise in connection with applicable litigation, (c) in connection with assignments
and participations and the solicitation of prospective assignees and Participants referred to in
the immediately preceding section but only after such prospective assignee or Participant has
executed the agreement referred to in Section 8.6(d), (d) if such information is generally
available to the public other than
as a result of disclosure by the Bank or any Participant, (e) to any direct or indirect
contractual counterparty in any hedging arrangement or such contractual counterparty’s professional
advisor but only after such prospective counterparty or professional advisor has executed an
agreement similar to the agreement described in Section 8.6(d), (f) to any nationally recognized
rating agency that requires information about the Bank’s investment portfolio in connection with
ratings issued with respect to the Bank, and (g) as may otherwise be

42

 

required or requested by any
regulatory authority having jurisdiction over the Bank or by any applicable law, rule, regulation,
or judicial process, the opinion of the Bank’s counsel concerning the making of such disclosure to
be binding on the parties hereto. The Bank shall not incur any liability to the Borrower by reason
of any disclosure permitted by this section.

     Section 8.8. Governing Law and Construction. THE VALIDITY, CONSTRUCTION, AND
ENFORCEABILITY OF THIS AGREEMENT AND THE REVOLVING NOTE SHALL BE GOVERNED BY THE INTERNAL LAWS OF
THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING
EFFECT TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO NATIONAL BANKS. Whenever possible, each
provision of this Agreement and the other Loan Documents and any other statement, instrument, or
transaction contemplated thereby or relating thereto shall be interpreted so as to be effective and
valid under such applicable law, but, if any provision of this Agreement, the other Loan Documents,
or any other statement, instrument, or transaction contemplated thereby or relating thereto is held
to be prohibited or invalid under such applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement, the other Loan Documents, or any other statement,
instrument, or transaction contemplated thereby or relating thereto.

     Section 8.9. Consent to Jurisdiction. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY
BE ENFORCED IN ANY FEDERAL COURT OR CALIFORNIA STATE COURT SITTING IN ORANGE COUNTY, CALIFORNIA OR
LOS ANGELES COUNTY, CALIFORNIA; AND THE PARTIES CONSENT TO THE JURISDICTION AND VENUE OF ANY SUCH
COURT AND WAIVE ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT THE
BORROWER COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY
ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT, THE BANK AT ITS
OPTION MAY HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF
SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT
PREJUDICE.

     Section 8.10. Judicial Reference Agreement.

     (a) Any and all disputes, claims, and controversies arising out of the Loan Documents or the
transactions contemplated thereby (including, but not limited to, actions arising in contract or
tort and
any claims by the Borrower against the Bank related in any way to the Loans) (individually, a
“Dispute”) that are brought before a forum in which pre-dispute waivers of the right to
trial by jury are invalid under applicable law shall be subject to the terms of this Section 8.10.

     (b) Any and all Disputes shall be heard by a referee and resolved by judicial reference
pursuant to California Code of Civil Procedure Sections 638 et seq. The referee shall be a retired
California state court judge or an attorney licensed to practice law in the State of California
with at least 10 years’ experience practicing commercial law. Neither the Borrower nor the Bank
shall seek to appoint a referee that may be disqualified pursuant to California Code of Civil
Procedure Section 641 or 641.2 without the prior written consent of the other party. If the Bank
and the Borrower are unable to

43

 

agree upon a referee within 10 calendar days after one party serves
a written notice of intent for judicial reference upon the other party, then the referee will be
selected by the court in accordance with California Code of Civil Procedure Section 640(b).

     (c) The referee shall render a written statement of decision and shall conduct the proceedings
in accordance with the California Code of Civil Procedure, the Rules of Court, and California
Evidence Code, except as otherwise specifically agreed by the parties and approved by the referee.
The referee’s statement of decision shall set forth findings of fact and conclusions of law. The
decision of the referee shall be entered as a judgment in the court in accordance with the
provisions of California Code of Civil Procedure Sections 644 and 645. The decision of the referee
shall be appealable to the same extent and in the same manner that such decision would be
appealable if rendered by a judge of the superior court.

     (d) Nothing in this Section 8.10 shall be deemed to apply to or limit the right of the Bank
(i) to exercise self-help remedies such as (but not limited to) setoff, (ii) to foreclose
judicially or nonjudicially against any real or personal property collateral, or to exercise
judicial or nonjudicial power of sale rights, (iii) to obtain from a court provisional or ancillary
remedies (including, but not limited to, injunctive relief, a writ of possession, prejudgment
attachment, a protective order, or the appointment of a receiver), or (iv) to pursue rights against
any party in a third-party proceeding in any action brought against the Bank (including actions in
bankruptcy court). The Bank may exercise the rights set forth in the foregoing clauses (i) through
(iv), inclusive, before, during, or after the pendency of any judicial reference proceeding.
Neither the exercise of self-help remedies nor the institution or maintenance of an action for
foreclosure or provisional or ancillary remedies or the opposition to any such provisional remedies
shall constitute a waiver of the right of any party, including, but not limited to, the claimant in
any such action, to require submission to judicial reference of the merits of the Dispute
occasioning resort to such remedies. No provision in the Loan Documents regarding submission to
jurisdiction and/or venue in any court is intended or shall be construed to be in derogation of the
provisions in any Loan Document for judicial reference of any of Dispute.

     (e) If a Dispute includes multiple claims, some of which are found not subject to this Section
8.10, the Parties shall stay the proceedings of such Dispute or the part or parts thereof not
subject to this Section 8.10 until all other Disputes or parts thereof are resolved in accordance
with this Section 8.10. If there are Disputes by or against multiple parties, some of which are
not subject to this Section 8.10, the Borrower and the Bank shall sever the Disputes subject to
this Section 8.10 and resolve them in accordance with this Section 8.10. During the pendency of
any Dispute that is submitted to judicial reference in accordance with this Agreement, each of the
parties to such Dispute shall bear equal shares of the fees charged and costs incurred by the
referee in performing the services described in this Section 8.10. The compensation of the referee
shall not exceed the prevailing rate for like services. The
prevailing party shall be entitled to reasonable court costs and legal fees, including
customary attorney fees, expert witness fees, paralegal fees, the fees of the referee, a
reimbursement of fees and costs paid during the pendency of a dispute in accordance with this
Section 8.10(d), and other reasonable costs and disbursements charged to the party by its counsel,
in such amount as the Referee determines.

     (f) In the event of any challenge to the legality or enforceability of this Section 8.10, the
prevailing party shall be entitled to recover the costs and expenses from the non-prevailing party,
including reasonable attorneys’ fees, incurred by it in connection with such challenge.

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     (g) THIS SECTION 8.10 CONSTITUTES A “REFERENCE AGREEMENT” BETWEEN THE BORROWER AND THE BANK
WITHIN THE MEANING OF AND FOR PURPOSES OF CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638.

     Section 8.11. Survival of Agreement. All representations, warranties, covenants, and
agreements made by the Borrower herein, in the other Transaction Documents, and in the certificates
or other instruments prepared or delivered in connection with or pursuant to this Agreement or any
other Transaction Document shall be deemed to have been relied upon by the Bank and shall survive
the making of the Loans by the Bank and the execution and delivery to the Bank by the Borrower of
the Notes, regardless of any investigation made by or on behalf of the Bank, and shall continue in
full force and effect as long as any Obligation is outstanding and unpaid and so long as the
Revolving Commitment has not been terminated; provided, however, that the obligations of the
Borrower under Sections 8.3, 8.6, and 8.12 shall survive payment in full of the Obligations and the
termination of the Revolving Commitment.

     Section 8.12. Indemnification. The Borrower hereby agrees to defend, protect,
indemnify, and hold harmless the Bank and its Affiliates and the directors, officers, employees,
attorneys, and agents of the Bank and its Affiliates (collectively, the “Indemnitees”) from
and against any and all claims, actions, damages, liabilities, judgments, costs, and expenses
(including all reasonable fees and disbursements of counsel that may be incurred in the
investigation or defense of any matter) imposed upon, incurred by, or asserted against any
Indemnitee, whether direct, indirect, or consequential and whether based on any federal, state,
local, or foreign laws or regulations (including securities laws, environmental laws, commercial
laws, and regulations), under common law or on equitable cause, or on contract or otherwise:

     (a) by reason of, relating to, or in connection with the execution, delivery, performance, or
enforcement of any Transaction Document, any commitments relating thereto, or any transaction
contemplated by any Transaction Document; or

     (b) by reason of, relating to, or in connection with any credit extended or used under the
Loan Documents or any act done or omitted by any Person, or the exercise of any rights or remedies
thereunder;

provided, however, that the Borrower shall not be liable to any Indemnitee for any portion of such
claims, damages, liabilities, and expenses resulting from such Indemnitee’s gross
negligence or willful misconduct. In the event this indemnity is unenforceable as a matter of law
as to a particular matter or consequence referred to herein, it shall be enforceable to the full
extent permitted by law.

     This indemnification applies, without limitation, to any act, omission, event, or circumstance
existing or occurring on or prior to the later of the Termination Date or the date of payment in
full of the Obligations, including specifically Obligations arising under clause (b) of this
section. The indemnification provisions set forth above shall be in addition to any liability the
Borrower otherwise has. Without prejudice to the survival of any other obligation of the Borrower
hereunder, the indemnities and obligations of the Borrower in this section shall survive the
payment in full of the other Obligations.

45

 

     Section 8.13. Captions. The captions or headings herein and any table of contents
hereto are for convenience only and in no way define, limit, or describe the scope or intent of any
provision of this Agreement.

     Section 8.14. Entire Agreement. This Agreement and the other Loan Documents embody
the entire agreement and understanding between the Borrower and the Bank with respect to the
subject matter thereof. This Agreement supersedes all prior agreements and understandings relating
to the subject matter hereof. Nothing in this Agreement or in any other Loan Document, expressed
or implied, is intended to confer upon any Persons other than the parties hereto any rights,
remedies, obligations, or liabilities hereunder or thereunder.

     Section 8.15. Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such counterpart.

     Section 8.16. Borrower Acknowledgements. The Borrower hereby acknowledges that (a) it
has been advised by counsel in the negotiation, execution, and delivery of this Agreement and the
other Loan Documents, (b) the Bank has no fiduciary relationship to the Borrower, the relationship
being solely that of debtor and creditor, (c) no joint venture exists between the Borrower and the
Bank, and (d) the Bank undertakes no responsibility to the Borrower to review or inform the
Borrower of any matter in connection with any phase of the business or operations of the Borrower,
the Borrower shall rely entirely upon its own judgment with respect to its business, and any
review, inspection, or supervision of, or information supplied to, the Borrower by the Bank is for
the protection of the Bank, and neither the Borrower nor any third party is entitled to rely
thereon.

     Section 8.17. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate
applicable to any Loan, together with all fees, charges, and other amounts that are treated as
interest on such Loan under applicable law (collectively, the “Charges”), exceeds the
maximum lawful rate (the “Maximum Rate”) that may be contracted for, charged, taken,
received, or reserved by the Bank in accordance with applicable law, the rate of interest payable
in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate, and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the operation of this
section shall be cumulated, and the interest and Charges payable to the Bank in respect of other
Loans or periods shall be increased (but not above the Maximum Rate therefor) until the Bank has
received such cumulated amount, together with interest thereon at the Federal Funds Effective Rate
to the date of repayment.

[The remainder of this page is intentionally left blank.]

46

 

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

	 	 	 	 	 
	 	UNIVERSAL ELECTRONICS INC.

 	 
	 	By  	
 	 
	 	 	Title 	 	 
	 	 	 	 
	 

Address for Borrower:

6101 Gateway Drive

Cypress, CA 90630

Fax: (714) 820-1151

Attention: Chief Financial Officer

with a required copy to:

6101 Gateway Drive

Cypress, CA 90630

Fax: (714) 820-1151

Attention: General Counsel

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By  	
 	 
	 	 	Title 	 	 
	 	 	 	 
	 

Address for Bank:

4100 Newport Place, Suite 900

Newport Beach, California 92660

Fax: (949) 863-2335

Attention: Steven G. Krenik

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