Document:

exv10w1

Exhibit 10.1

SEVERANCE AGREEMENT

     THIS SEVERANCE AGREEMENT (the “Agreement”) is made and entered into as of August 31, 2008 by
and among FRANKLIN BANK CORP., a Delaware corporation (the “Company”), FRANKLIN BANK, S.S.B., a
Texas savings bank and wholly-owned subsidiary of the Company (the “Bank”) and DANIEL E. COOPER
(“Executive”). The Company, the Bank and Executive are each a “Party” and collectively, the
“Parties.”

Recitals

     Whereas, Executive is an employee of the Bank and serves as Executive Vice President
and Managing Director – Mortgage Banking, of the Bank;

     Whereas, Executive and the Company desire to enter into this Agreement to confirm
certain compensatory arrangements upon Executive’s separation from the Company;

     Whereas, this Agreement also provides for a release of claims; and

     Whereas, Executive has been advised to consult with an attorney prior to executing
this Agreement.

Agreement

     Now Therefore, in consideration of the promises and mutual agreements set forth in
this Agreement, the receipt and sufficiency of which is hereby acknowledged by all parties, the
Parties agree as follows:

     1. Resignation. Executive hereby resigns from all positions with the Company and the Bank
effective as of August 31, 2008 (the “Effective Date”).

     2. Indemnification and Insurance.

          (a) Article 8 of the Amended and Restated Certificate of Incorporation (the “Certificate”) of
the Company provides that each of the Company’s officers and directors (and former officers and
directors) who is or was made a party (or is threatened to be made a party) to or is involved in
any action, suit or proceeding, whether civil, criminal, administrative or investigative (a
"proceeding”) by reason of the fact that he is or was a director or officer of the Company (or any
subsidiary of the Company) shall be indemnified to the fullest extent authorized by the General
Corporation Law of the State of Delaware (“Delaware Law”) against all expense, liability and loss
(including without limitation attorneys’ fees, judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in
connection therewith, provided that such person meets the standard of conduct applicable to such
proceeding under Delaware Law. Article 8 of the Certificate further provides that the right to
indemnification contained therein shall be a contract right and provides for certain other rights,
benefits and obligations of the Company and Executive, including the right of the Executive to be
paid by the Company the expenses incurred in defending any such proceeding, in advance of its final
disposition, such advances to be paid by the Corporation within 20 days after receipt by the
Company of a statement or statement from

 

 

the person requesting such advance or advances from time to time, provided that the person
delivers to the Company an undertaking to repay all amounts so advanced if it shall ultimately be
determined that such officer of director is not entitled to be indemnified under such provision or
otherwise. The Company hereby confirms to Executive that the provisions of Article 8 of the
Certificate constitute a contract right of the Executive and shall remain applicable to Executive
following the Effective Date in accordance with their terms.

          (b) Article 7 of the Articles of Incorporation, as amended (the “Articles”), of the Bank
provide that the Bank shall indemnify any person who was or is a party or is threatened to be made
a party to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative, arbitrative or investigative, any appeal in such action, suit or
proceeding, or any inquiry or investigation which could lead to such an action, suit or proceeding,
by reason of the fact that such person is or was a director, officer, employee or agent of the
Bank, or is or was serving at the request of the Bank as a director, officer, employee, agent or
similar functionary of another foreign or domestic corporation, partnership, joint venture or other
enterprise, against expenses (including court costs and attorneys’ fees), judgments, penalties,
fines, excise taxes and amounts paid in connection with such action, suit or proceeding to the full
extent authorized by law. Article 7 of the Articles further provides that reasonable expenses
incurred by a director, officer, employee or agent of the Bank in defending an action, suit or
other proceeding shall be authorized by the Board of Directors of the Bank upon receipt of a
written affirmation by or on behalf of such person of his good faith belief that he has met the
standards of conduct necessary for indemnification pursuant to applicable law, and a written
undertaking to repay such amount if it shall ultimately be determined that the person has not met
such standards or that such indemnification is prohibited by law. Article 7 of the Articles
further provides that the duty of the Bank to indemnify and advance expenses to a director,
officer, employee or agent shall be a contract right. The Bank hereby confirms to Executive that
the provisions of Article 8 of the Certificate constitute a contract right of the Executive and
shall remain applicable to Executive following the Effective Date in accordance with their terms.

     3. Cash Compensation.

          (a) Executive shall be entitled to receive as severance seven months salary continuation
commencing September 1, 2008 and ending March 31, 2009 (the “Severance Period”), payable at his
base salary as of the Effective Date in equal monthly installments payable on the fifteenth of each
month.

          (b) On the Effective Date, Executive shall receive a payment from the Company for accrued and
unused vacation through the Effective Date.

          (c) Executive shall be reimbursed by the Company for reasonable attorney fees and expenses
incurred in connection with Executive’s retirement from the Company, not to exceed $10,000.

          (d) Upon the Effective Date, Executive’s right to participate in the 2007 Franklin Bank
Incentive Plan, and any other cash bonus or incentive plan of the Company, shall terminate and no
amounts shall be payable thereunder.

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     4. Non Cash Compensation.

          (a) The Parties agree that (i) the options to purchase common stock of the Company, par value
$0.01 per share (the “Common Stock”), listed under the heading “Stock Option Agreements” in
Schedule A attached hereto (collectively, the “Stock Option Agreements”) are the only
options to purchase capital stock of the Company held by Executive, and (ii) the options evidenced
by the Stock Option Agreements are presently exercisable to the extent, and for the time period,
described on Schedule A. To the extent the Stock Option Agreements are not presently
exercisable, no additional shares shall hereafter vest or be purchasable thereunder. With respect
to the right to purchase shares pursuant to the Stock Option Agreements that have fully vested, but
have not been exercised, each of the Company and Executive acknowledges and agrees that the options
with respect to such vested shares expire and cease to be exercisable three months after the
Effective Date .

          (b) The Parties agree that (i) the shares of Common Stock that have been issued to and held in
the name of Executive pursuant to the Restricted Stock Agreements between the Company and Executive
listed under the heading “Restricted Stock Agreements” in Schedule A hereto (collectively,
the “RSAs”) are the only shares of restricted stock awarded to and held by the Executive under
stock restriction agreements, and (ii) in accordance with the terms of each RSA, the shares of
Common Stock awarded under the RSAs are forfeited as of the date hereof and shall be cancelled,
with Executive having no further rights therein.

          (c) The Parties agree that the performance units listed under the heading “Performance Unit
Grant Agreements” on Schedule A hereto (collectively, the “PUGAs”) are the only performance
units that have been issued to Executive by the Company. By the terms of PUGAs, Executive shall be
entitled at the conclusion of the current performance cycle to a pro-rated award payout calculated
as of the Effective Date, provided that the conditions to such payout are satisfied in accordance
with the terms of the PUGAs.

          (d) The Parties agree that the Company shall reimburse Executive for the premiums paid by
Executive and all amounts paid by Executive related to deductibles, co-payment limits or applicable
out-of-pocket maximums for health care coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended (“COBRA”) until the first to occur of (i) the commencement
of Executive’s employment with another person or firm or (ii) the expiration of the 18 month
coverage period permitted by COBRA.

     5. Release of Claims.

          (a) In consideration of the payments and benefits described in Paragraph 3 and
Paragraph 4 of this Agreement, and other good and valuable consideration within this
Agreement, Executive, on behalf of himself, his heirs, executors, successors and assigns,
irrevocably and unconditionally releases, waives, and forever discharges the Company and the Bank,
their respective officers, directors, shareholders and employees, the law firms of Bracewell &
Giuliani LLP and Baker Botts LLP and their respective partners, associates and employees, the
accounting firms Deloitte & Touche and Ernst & Young, and their respective partners, associates and
employees, and each of their respective heirs, executors, administrators, legal representatives,
successors and assigns (the “Franklin Parties”) from any and all claims,

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demands, actions, causes of action, costs, fees, attorneys’ fees, and all liability
whatsoever, whether known or unknown, fixed or contingent, which Executive has, had, or may have
against any of the Franklin Parties including, without limitation, any claims under the letter
agreement between Executive and the Bank dated December 23, 2003, any claims under the Employment
Agreement between Executive and the Company dated December 23, 2003 and any acts or omissions that
resulted in Executive’s separation from employment with the Company, based on facts occurring from
the beginning of time and up to and including the Effective Date, including, without limitation,
any claims under any local, municipal, state or federal law including, without limitation, claims
under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the
Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Texas
Commission on Human Rights Act, claims of harassment, discrimination or wrongful termination, and
any other statutory, tort, or common law claims. Executive represents and warrants to the Company
and the Bank that Executive is the sole owner of, and he has not sold, assigned or transferred
(with or without consideration) to any person any of the claims, demands, actions, causes of
action, costs, fees, attorney’s fees or liabilities being released hereby.

          (b) In consideration of the release Executive has provided in this Agreement, and other good
and valuable consideration within this Agreement, each of the Company and the Bank, on behalf of
itself, its successors and assigns, irrevocably and unconditionally releases, waives, and forever
discharges Executive and each of Executive’s heirs, executors, administrators, legal
representatives, successors and assigns (the “Cooper Parties”) from any and all claims, demands,
actions, causes of action, costs, fees, attorneys’ fees, and all liability whatsoever, whether
known or unknown, fixed or contingent, which the Company or the Bank has, had, or may have against
any of the Cooper Parties, based on facts occurring from the beginning of time and up to and
including the Effective Date. Each of the Company and the Bank represents and warrants to
Executive that each is the sole owner of, and has not sold, assigned or transferred (with or
without consideration) to any person any of the claims, demands, actions, causes of action, costs,
fees, attorney’s fees or liabilities being released hereby.

     6. No Admission of Liability/Confidentiality of Release. Executive understands and agrees
that this Agreement shall not in any way be construed as an admission by the Company or the Bank of
any unlawful or wrongful acts whatsoever against Executive or any other person, and each of the
Company and the Bank specifically disclaim any liability to or wrongful acts against Executive or
any other person. Similarly, each of the Company and the Bank acknowledges and agrees that this
Agreement shall not in any way be construed as an admission by Executive of any unlawful or
wrongful act by Executive and Executive specifically disclaims any liability to or wrongful acts
against the Company, the Bank or any other person. Executive agrees to keep this Agreement and any
of its terms completely confidential; however, Executive may disclose the terms of this Agreement
to his attorney, accountant, spouse, or as otherwise required by law. Accordingly, nothing in this
Paragraph 6 is intended to preclude Executive, the Company or the Bank from disclosing
information in response to a subpoena issued by a court of law or a government agency having
jurisdiction or power to compel the disclosure or as otherwise may be required by law. Further,
Executive acknowledges and agrees that nothing in this Agreement prevents the Company or the Bank
from disclosing the terms of this Agreement and filing a copy of this Agreement (i) in response to
a subpoena issued by a court of law or a government agency having jurisdiction or power to compel
the disclosure,

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(ii) in response to a request by a governmental law enforcement agency or federal or state
agency giving jurisdiction over the acts or activities of the Company or the Bank or any of their
subsidiaries, or (iii) as the Company or the Bank believes is reasonably required by applicable
federal or state law, including without limitation, the provisions, rules or regulations of the
Securities Exchange Act of 1934, as amended.

     7. Non-Disparagement.

          (a) Executive agrees not to, directly or indirectly, disclose, communicate, or publish any
intentionally disparaging, negative, harmful, or disapproving information, written communications,
oral communications, electronic or magnetic communications, writings, oral or written statements,
comments, opinions, facts, or remarks, of any kind or nature whatsoever (collectively, “Disparaging
Information”), concerning or related to the Company or the Bank or any of their respective
officers, directors or employees. Executive understands and acknowledges that this
non-disparagement clause prevents him from disclosing, communicating, or publishing, directly or
indirectly, any Disparaging Information concerning or related to the Company or the Bank including,
without limitation, information regarding the Company or the Bank businesses, customers or clients,
proprietary or technical information, documents, operations, inventions, trade secrets, product
ideas, technical information, know-how, processes, plans (including, without limitation, marketing
plans and strategies), specifications, designs, methods of operation, techniques, technology,
formulas, software, improvements, internal or external audits, internal controls, or any financial,
marketing or accounting information of any nature whatsoever. Further, Executive acknowledges that
in executing this Agreement, he has knowingly, voluntarily, and intelligently waived any free
speech, free association, free press or First Amendment to the United States Constitution
(including, without limitation, any counterpart or similar provision or right under the Texas
Constitution or any other state constitution which may be deemed to apply) rights to disclose,
communicate, or publish Disparaging Information concerning or related to the Company or the Bank.
Notwithstanding Paragraph 14(i), in the event that Executive breaches or threatens to
breach this Paragraph 7(a), the Company or the Bank, as applicable, will not be limited to
a damages remedy, but may seek all other equitable and legal relief including, without limitation,
a temporary restraining order, temporary injunctive relief, a permanent injunction, and its
attorneys’ fees and costs, against Executive and any other persons, individuals, corporations,
businesses, groups, partnerships or other entities acting by, through, under, or in concert with
Executive. Nothing in this Agreement shall, however, be deemed to prevent Executive from
testifying fully and truthfully in response to a subpoena from any court or from responding to
investigative inquiry from any governmental agency.

          (b) Each of the Company and the Bank agrees not to, directly or indirectly, disclose,
communicate, or publish any intentionally Disparaging Information, concerning or related to
Executive. Each of the Company and the Bank understands and acknowledges that this
non-disparagement clause prevents it from disclosing, communicating, or publishing, directly or
indirectly, any Disparaging Information concerning or related to Executive including, without
limitation, information regarding Executive’s character, behavior, work history, finances, or
relationship with the Company or the Bank. Further, each of the Company and the Bank acknowledges
that in executing this Agreement, it has knowingly, voluntarily, and intelligently waived any free
speech, free association, free press or First Amendment to the

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United States Constitution (including, without limitation, any counterpart or similar
provision or right under the Texas Constitution or any other state constitution which may be deemed
to apply) rights to disclose, communicate, or publish Disparaging Information concerning or related
to Executive. Notwithstanding Paragraph 14(i), if the Company or the Bank breaches or
threatens to breach this Paragraph 7(b), Executive will not be limited to a damages remedy,
but may seek all other equitable and legal relief including, without limitation, a temporary
restraining order, temporary injunctive relief, a permanent injunction, and its attorneys’ fees and
costs, against the Company and the Bank and any other persons, individuals, corporations,
businesses, groups, partnerships or other entities acting by, through, under, or in concert with
them. Nothing in this Agreement shall, however, be deemed to prevent the Company or the Bank or
any of their respective directors, officers or employees from testifying fully and truthfully in
response to a subpoena from any court or from responding to investigative inquiry from any
governmental agency.

          (c) Each of the Company, the Bank and Executive understands, acknowledges and agrees nothing
in this Agreement, including without limitation the non-disparagement provisions of this
Paragraph 7 or the confidentiality provisions of Paragraph 9 hereof, shall prevent
any of the Parties or any other person from providing truthful information to, or otherwise
truthfully participating, in investigations or other legal proceedings brought by third parties or
conducted by any governmental regulatory or law enforcement agency, including without limitation
the Securities and Exchange Commission, Federal Deposit Insurance Corporation, Office of Thrift
Supervision or Texas Department of Savings and Mortgage Lending,  but each Party gives up all
rights to recover or receive damages, money, or other personal benefits from any other Party as a
result of any such investigation, or proceeding.

     8. Cooperation. Each Party agrees to cooperate with the other Parties in connection with the
defense or prosecution of any claims, causes of action, investigations, regulatory examinations,
hearings, proceedings, arbitrations or other tribunals now in existence or which may be brought in
the future against or on behalf of any Party that relate to events or occurrences that transpired
while Executive was employed with the Company and Bank (“Subject Matter”). The Parties’
cooperation in connection with this Paragraph 8 shall include, without limitation, making
themselves reasonably available to meet with counsel to prepare for discovery or trial, to act as a
witness on behalf of the other Party at convenient times, and to provide true and accurate
testimony regarding any such matters. If any Party is subpoenaed or contacted to cooperate in any
manner by a non-governmental party concerning any matter related to the Subject Matter, the Party
being so subpoenaed or contacted shall immediately notify the other Parties, through the notice
procedures identified in this Agreement, before responding or cooperating. Without limiting the
generality of the foregoing, Executive agrees to provide assistance as reasonably requested by the
Bank in connection with the regulatory examination of the Bank being conducted on the Effective
Date.

     9. Confidentiality. Executive agrees to keep all Confidential Information (as defined below)
in strict confidence, not disclosing any Confidential Information to any third person except (i) as
consented to in writing by the Chief Executive Officer of the Company, or (ii) as required by law
or judicial or regulatory process; provided, however, that Executive shall not be obligated to keep
in confidence any information which has become generally available to the public without any breach
by Executive of this Paragraph 9. If requested by the Company,

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Executive will obtain from any third party to whom he discloses any Confidential Information
the written agreement (in form and substance satisfactory to the Company in its sole discretion) of
such third party to keep such information confidential. The term “Confidential Information” is
defined as all of the Company’s technical and business information that is of a confidential, trade
secret or proprietary character; lists and identities of borrowers and other customers; identities
of prospective borrowers and other customers; loan and other contract terms; bidding information
and strategies; loan and deposit pricing and related strategies; photographs; internal policies,
procedures, communications and reports; computer software; computer software methods and
documentation; graphic designs; hardware; the Company’s methods of operation; the procedures, forms
and techniques used in servicing accounts; and other information or documents that the Company
requires to be maintained in confidence for the Company’s continued business. Confidential
Information does not include any information that is readily available to the public or, upon
reasonable investigation, is readily ascertainable in the public domain.

     10. Agreement to Return Company Property/Documents. Executive will not retain, take with him,
copy, alter, destroy, or delete any Company or Bank files, documents, electronically stored
information, or other materials whether or not embodying or recording any Confidential Information,
including copies, without obtaining in advance the written consent of the Chief Executive Officer
of the Company. On or before the Effective Date, Executive will return to the Company all
Confidential Information, documents, files, electronically stored information, records and tapes
(written or electronically stored) regarding the Company or the Bank that are in his possession or
control, and after the Effective Date Executive will not retain, use or disclose Confidential
Information in any way or in any format, whether written in any form or stored by electronic means,
including any and all copies of these materials. On or before the Effective Date, Executive will
return to the Company all the Company property, including, without limitation, company automobiles,
keys, equipment, computer(s) and computer equipment, devices, cellular phones, other telephonic
equipment, Company credit cards, data, lists, information, correspondence, notes, memos, reports,
or other writings prepared by the Company or by Executive on behalf of the Company.

     11. Nonsolicitation. Executive agrees that prior to the expiration of the Severance Period he
will not, without the prior written approval of the Company and the Bank, whether on Executive’s
own behalf or on behalf of any other person, either directly or indirectly (a) solicit, induce,
persuade or entice, or endeavor to solicit, induce, persuade or entice, any employee of the Company
or the Bank (including any employee of the Company or the Bank in a co-employment relationship with
Administaff) to leave the employment of, or cease performing services for, the Company or the Bank,
or (b) hire or solicit, induce, persuade or entice, or endeavor to solicit, induce, persuade or
entice, any employer by whom Executive may be employed during the Severance period to hire any
employee of the Company or the Bank (including any employee of the Company or the Bank in a
co-employment relationship with Administaff). Notwithstanding Paragraph 14(i), in the
event that Executive breaches or threatens to breach this Paragraph 11, the Company or the
Bank, as applicable, will not be limited to a damages remedy, but may seek all other equitable and
legal relief, without limitation, a temporary restraining order, temporary injunctive relief, a
permanent injunction, and its attorneys’ fees and costs, against executive and any other persons,
individuals, corporations, businesses, groups, partnerships and other entities acting by, through,
under, or in concert with Executive.

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     12. 21-day Consideration Period. By signing this Agreement, Executive acknowledges,
represents and agrees, in compliance with the Older Workers Benefit Protection Act, that (a) he has
carefully read and fully understands all of the provisions of this Agreement, and (b) he has had up
to and including a full twenty-one (21) calendar days within which to consider this Agreement
before executing it (or by executing this Agreement has knowingly and voluntarily elected to reduce
this time period).

     13. Revocation. Executive acknowledges that he has seven calendar days after signing this
Agreement to rescind, revoke or cancel this Agreement. Executive understands that this Agreement
will not become effective or enforceable until the revocation period has expired. To revoke this
Agreement, Executive must return it to John R. Brantley, Bracewell & Giuliani, LLP, 711 Louisiana,
Suite 2300, Houston, Texas 77002, in a manner so that he receives it within seven calendar days of
the date Executive signs this Agreement. Executive also acknowledges that if he revokes, rescinds,
or cancels this Agreement within the seven day period, he will not be entitled to receive the
payments and other benefits described in Paragraph 3 and Paragraph 4 of this
Agreement.

     14. Miscellaneous Provisions and Enforcement.

          (a) Notices. Any notice or other communication required, permitted or desired to be given
under this Agreement shall be deemed delivered when personally delivered; the business day, if
delivered by overnight courier; the same day, if transmitted by facsimile on a business day before
12:00 p.m., Houston time; the next business day, if otherwise transmitted by facsimile; and the
third business day after mailing, if mailed by prepaid certified mail, return receipt requested, as
addressed or transmitted as follows (as applicable):

If to Executive:

Daniel E. Cooper

4039 Swarthmore

Houston, Texas 77005

With a copy (which shall not constitute notice) to:

Andrews & Kurth LLP

600 Travis

Suite 4200

Houston, TX 77002

Attention: Greg Waller

Tel: 713-220-4790

Fax: 713-238-7434

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If to the Company:

Franklin Bank Corp.

9800 Richmond Avenue

Suite 680

Houston, TX 77042

Attention: Mr. Lewis S. Ranieri, Chairman

Tel: 516-745-6644

Fax: 516-745-6787

With a copy (which shall not constitute notice) to:

Bracewell & Giuliani, LLP

711 Louisiana

Suite 2900

Houston, TX 77002

Attention: John R. Brantley

Tel: (713) 221-1301

Fax: (713) 221-2112

If to the Bank:

Franklin Bank, S.S.B.

9800 Richmond Avenue

Suite 680

Houston, TX 77042

Attention: Mr. Andy Black, Chief Executive Officer

Tel: (512) 206-1446

Fax: (713) 952-2830

With a copy (which shall not constitute notice) to:

Bracewell & Giuliani, LLP

711 Louisiana

Suite 2900

Houston, TX 77002

Attention: John R. Brantley

Tel: (713) 221-1301

Fax: (713) 221-2112

          (b) Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS (RULES) OR CHOICE OF LAWS
(RULES) THEREOF. THE EXCLUSIVE VENUE FOR ALL SUITS AND PROCEEDINGS ARISING FROM OR RELATED TO THIS
AGREEMENT SHALL BE IN A COURT OF COMPETENT JURISDICTION IN HOUSTON, TEXAS.

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          (c) Limitations on Assignment. Except as provided in this Agreement, neither Party may assign
this Agreement or any of the rights or obligations set forth in this Agreement without the explicit
written consent of the other Party. Any attempted assignment by a Party in violation of this
Paragraph 14(c) shall be void. Except as provided in this Agreement, nothing in this
Agreement entitles any person, other than the parties to the Agreement, to any claim, cause of
action, remedy, or right of any kind, including, without limitation, the right of continued
employment.

          (d) Waiver. A Party’s waiver of any breach or violation of any Agreement provisions shall not
operate as, or be construed to be, a waiver of any later breach of the same or other Agreement
provision.

          (e) Severability. If any provision or provisions of this Agreement are held to be invalid,
illegal, or unenforceable for any reason whatsoever, (a) the validity, legality, and
unenforceability of the remaining provisions of this Agreement (including, without limitation, all
portions of any Agreement paragraphs containing any provision held to be invalid, illegal, or
unenforceable, that are not themselves invalid, illegal, or unenforceable), will not in any way be
affected or impaired thereby, and (b) the provision or provisions held to be invalid, illegal, or
unenforceable will be limited or modified in its or their application to the minimum extent
necessary to avoid the invalidity, illegality, or unenforceability, and, as so limited or modified,
the provision or provisions and the balance of this Agreement will be enforceable in accordance
with their terms.

          (f) Headings. The Agreement headings are for reference purposes only and will not affect in
any way the meaning or interpretation of this Agreement.

          (g) Counterparts. This Agreement and amendments to it will be in writing and may be executed
in multiple counterparts and by facsimile. Each counterpart will be deemed an original, but all
counterparts together will constitute one and the same instrument.

          (h) Entire Agreement, Amendment, Binding Effect. This Agreement constitutes the entire
agreement between the Parties concerning the subject matter in this Agreement, unless otherwise
described herein. No oral statements or prior written material not specifically incorporated in
this Agreement shall be of any force and effect, and no changes in or additions to this Agreement
shall be recognized, unless incorporated in this Agreement by written amendment, such amendment to
become effective on the date stipulated therein. Executive acknowledges and represents that in
executing this Agreement he did not rely, and has not relied, on any communications, promises,
statements, inducements, or representation(s), oral or written, by the Company or any the Company,
except as expressly contained in this Agreement. Any amendment to this Agreement must be signed by
all parties to this Agreement. This Agreement will be binding on and inure to the benefit of the
Parties hereto and their respective successors, heirs, legal representatives, and permitted
assigns, if any.

          (i) Arbitration. If any dispute arises out of or is related to this Agreement or Executive’s
employment or separation from employment with the Bank for any reason, and the parties to this
Agreement cannot resolve the dispute, the dispute shall be submitted to final and binding
arbitration. The arbitration shall be conducted in accordance with the American

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Arbitration Association’s (“AAA”) National Rules for the Resolution of Employment Disputes
(“Rules”). If the Parties cannot agree to an arbitrator, an arbitrator will be selected through
the AAA’s standard procedures and Rules. The arbitrator shall decide the proper allocation of
costs among the Parties. The Parties agree that the arbitration shall be held in Houston, Texas.
Arbitration of the Parties’ disputes is mandatory, and in lieu of all civil causes of action or
lawsuits any Party may have against another Party arising out of the Agreement or Executive’s
employment or separation from employment with the Bank, with the exception that the Company and the
Bank may seek a temporary restraining order and temporary injunctive relief in a court to enforce
the terms of this Agreement including Paragraphs 7(a) and Paragraph 11. Executive
acknowledges that by agreeing to this provision, he knowingly and voluntarily waives any right he
may have to a jury trial based on any claims he has, had, or may have against the Company,
including any right to a jury trial under any local, municipal, state or federal law including,
without limitation, claims under Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers
Benefit Protection Act, the Texas Commission on Human Rights Act, claims of harassment,
discrimination or wrongful termination, and any other statutory, tort, or common law claims.

          (j) Conflict. In the event of any conflict between the terms of this Agreement and Article 8
of the Certificate, the Certificate shall control. In the event of any conflict between the terms
of this Agreement and Article 7 of the Articles, the Articles shall control.

          (k) Regulatory Approval. The obligations of the Company and the Bank, and the rights of
Executive, hereunder are subject to 12 U.S.C. § 1828(k) and the rules and regulations thereunder.

[Signature page follows]

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     As evidenced by their signatures below, that Parties hereto certify that they have read this
Agreement and agree to its terms.

	 	 	 	 	 
	 	FRANKLIN BANK CORP.

 	 
	 	By:  	 	/s/ Alan E. Master
 	 
	 	Name:  	Alan E. Master 	 
	 	Title:  	President & Chief Executive Officer 	 
	 
	 	FRANKLIN BANK, S.S.B.

 	 
	 	By:  	 	/s/ Andy Black
 	 
	 	Name:  	Andy Black 	 
	 	Title:  	Chief Executive Officer 	 
	 
	 	EXECUTIVE:

 	 
	 	/s/ Daniel E. Cooper
 	 
	 	Daniel E. Cooper 	 
	 	 	 
	 

Signature Page to Retirement Agreement

 

 

SCHEDULE A

Stock Option Agreements

	 	1.	 	Incentive Stock Option Agreement dated April 10, 2002, by and between Franklin
Bank Corp. and Daniel E. Cooper representing the right to purchase 35,483 shares of
Common Stock. This option is 100% vested as of the Effective Date. The right to
purchase shares under this option expires three months after the Effective Date.
	 
	 	2.	 	Incentive Stock Option Agreement dated April 30, 2003 by and between Franklin
Bank Corp. and Daniel E. Cooper representing the right to purchase 17,500 shares of
Common Stock. This option is 100% vested as of the Effective Date. The right to
purchase shares under this option expires three months after the Effective Date.
	 
	 	3.	 	Incentive Stock Option Agreement dated April 30, 2004 by and between Franklin
Bank Corp. and Daniel E. Cooper representing the right to purchase 15,000 shares of
Common Stock. This option is 100% vested as of the Effective Date. The right to
purchase shares under this option expires three months after the Effective Date.
	 
	 	4.	 	Incentive Stock Option Agreement dated May 9, 2005 by and between Franklin Bank
Corp. and Daniel E. Cooper representing the right to purchase 12,000 shares of Common
Stock. The option is 60% vested as of the Effective Date. The right to purchase the
7,200 shares vested under this option expires three months after the Effective Date.
	 
	 	5.	 	Stock Option Agreement dated as of December 14, 2005 by and between Franklin
Bank Corp. and Daniel E. Cooper, representing the right to purchase 6,000 shares of
Common Stock. The option is 60% vested as of the Effective Date. The right to
purchase the 3,600 shares vested under this option expires three months after the
Effective Date.

Restricted Stock Agreements

	 	1.	 	Restricted Stock Agreement dated August 21, 2006 by and between Franklin Bank
Corp. and Daniel E. Cooper with respect to 2,662 shares of Common Stock.
	 
	 	2.	 	Restricted Stock Agreement dated May 31, 2007 by and between Franklin Bank
Corp. and Daniel E. Cooper with respect to 3,500 shares of Common Stock.

Performance Unit Grant Agreements

     Performance Unit Grant Agreement dated August 21, 2006 by and between Franklin Bank Corp. and
Daniel E. Cooper.

Schedule Aexv10w1

EXHIBIT 10.1

FORBEARANCE AGREEMENT

AND THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FORBEARANCE AGREEMENT AND THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated
as of September 4, 2008 (this “Agreement”), is entered into by and among LCC INTERNATIONAL,
INC., a Delaware corporation (the “Borrower”), the Guarantors identified on the signature
pages hereto (the “Guarantors” and, collectively with the Borrower, the “Loan
Parties”), the Lenders identified on the signature pages hereto (the “Lenders”) and
BANK OF AMERICA, N.A., as administrative agent (the “Administrative Agent”). Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit
Agreement (as defined below) as amended hereby.

RECITALS

     A. The Loan Parties, the Lenders and the Administrative Agent have entered into that certain
Amended and Restated Credit Agreement dated as of May 29, 2007 (as amended by that certain First
Amendment to Amended and Restated Credit Agreement and Waiver dated as of November 30, 2007 and
that certain Second Amendment to Amended and Restated Credit Agreement and Waiver dated as of June
25, 2008 and as further amended and otherwise modified from time to time, the “Credit
Agreement”).

     B. Certain Events of Default have occurred as a result of the Borrower’s failure to comply
with (i) Section 2.03(b)(i) of the Credit Agreement with respect to the prepayment of Revolving
Loans due on July 22, 2008 in the amount of approximately $1,400,000 in respect of the overadvance
that existed on such date and in the amount of approximately $3,600,000 in respect of the
overadvance that existed as of the date hereof after giving effect to all payments made by the
Borrower on the date hereof (the “Overadvance Defaults”), (ii) Section 2.06(c) of the
Credit Agreement with respect to the interest payments due and payable on June 30, 2008 and July
31, 2008 (collectively, the “Payment Defaults”), (iii) Section 8.11 of the Credit Agreement
with respect to certain fiscal quarters ending prior to the date hereof and Section 8.16 of the
Credit Agreement with respect to the fiscal quarter ending June 30, 2008 (the “Existing
Covenant Defaults”), (iv) Section 7.01(b) of the Credit Agreement with respect to the financial
statements for the month ended July 31, 2008 (the “Reporting Default”), (v) Section 7.02(a)
of the Credit Agreement with respect to the Borrower’s 10Q for the fiscal quarter ended June 30,
2008 (the “10Q Default”), (vi) Section 7.05 of the Credit Agreement with respect to the
Borrower’s good standing under the Laws of the states of Delaware and Virginia (the “Good
Standing Defaults”) and (vii) Section 7.04 of the Credit Agreement with respect to the
Borrower’s failure to pay certain vendors prior to the date hereof (the “Vendor Defaults”).

     C. The Loan Parties have informed the Lender and the Administrative Agent that certain
additional Events of Default are expected to occur as a result of the Borrower’s anticipated
failure to comply with the financial covenants set forth in Section 8.11 and 8.16 of the Credit
Agreement with the respect to the applicable periods ending from and after the date hereof through
the Maturity Date (the “Anticipated Covenant Defaults” and, together with the Existing
Covenant Defaults, the “Covenant Defaults”).

     D. The Loan Parties have requested that the Administrative Agent and the Lenders (i) forbear
from exercising their rights and remedies arising under the Loan Documents in connection with the
Covenant Defaults, the Overadvance Defaults, the Reporting Default, the 10Q Default, the Vendor
Defaults and the Good Standing Defaults, (ii) permit the Loan Parties to cure the Payment Defaults,
(iii) make additional extensions of credit to the Loan Parties in the form of a new term loan
tranche under the Credit Agreement and (iv) make certain modifications to the Credit Agreement.

 

 

     E. The Administrative Agent and the Lenders have agreed to do so, but only pursuant to the
terms set forth herein.

AGREEMENT

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

     1. Estoppel, Acknowledgement and Reaffirmation. The Loan Parties hereby acknowledge
and agree that, as of September 3, 2008, (a) the Payment Defaults, the Overadvance Defaults, the
Reporting Default, the 10Q Default, the Good Standing Defaults, the Vendor Defaults and the
Covenant Defaults currently exist and have not been waived by the Administrative Agent and the
Lenders and (b) the aggregate outstanding principal amount of (i) the Revolving Loans is not less
than $21,951,000 and (ii) the Term Loan is not less than $2,300,000, each of which amounts
constitute a valid and subsisting obligation of the Loan Parties to the Lenders that is not subject
to any credits, offsets, defenses, claims, counterclaims or adjustments of any kind. The Loan
Parties hereby acknowledge their obligations under the respective Loan Documents to which they are
party, reaffirm that each of the liens and security interests created and granted in or pursuant to
the Collateral Documents is valid and subsisting and agree that this Agreement shall in no manner
impair or otherwise adversely effect such obligations, liens or security interests, except as
explicitly set forth herein.

     2. Cure of Payment Defaults. On the date hereof, the Loan Parties shall pay to the
Administrative Agent (for the ratable benefit of the Lenders) $283,716.38 (the “Past Due
Amount”) consisting of the amount due under Section 2.06(c) of the Credit Agreement in respect
of the interest and late fee payments due and payable on or about July 1, 2008 and August 1, 2008.
The Administrative Agent and the Lenders hereby acknowledge and agree that, upon receipt of the
Past Due Amount in cash on the date hereof, the Payment Defaults shall be deemed cured and any
Defaults or Events of Default arising in connection therewith shall be deemed waived.

     3. September Amortization Payment. On the date hereof, the Loan Parties shall pay to
the Administrative Agent (for the ratable benefit of the Lenders) $650,000 (the “September
Payment”) to be applied to the Term Loan.

     4. August Interest Payment. On the date hereof, the Loan Parties shall pay to the
Administrative Agent (for the ratable benefit of the Lenders) $130,152.75 (the “August Interest
Payment”) in respect of the interest payment due under Section 2.06(c) of the Credit Agreement
on or about August 30, 2008.

     5. Forbearance. Subject to the terms and conditions set forth herein, the
Administrative Agent and the Lenders hereby agree that, during the Forbearance Period (as defined
below), the Administrative Agent and the Lenders shall forbear from exercising any and all rights
or remedies available to them under the Loan Documents or under applicable law as a result of the
Covenant Defaults, the Reporting Default, the 10Q Default, the Good Standing Defaults, the Vendor
Defaults and the Overadvance Defaults, but only to the extent that such rights or remedies arise
exclusively as a result of the existence or continuation of the Covenant Defaults, the Reporting
Default, the 10Q Default, the Good Standing Defaults, the Vendor Defaults and the Overadvance
Defaults; provided, however, that the Administrative Agent and the Lenders shall be free to
exercise any or all of their rights and remedies arising on account of the Covenant Defaults, the
Reporting Default, the 10Q Default, the Good Standing Defaults, the Vendor Defaults and the
Overadvance Defaults at any time upon or after the occurrence of a Forbearance Termination Event
(as defined below).

2

 

     6. Forbearance Termination Events. Nothing set forth herein or contemplated hereby is
intended to constitute an agreement by the Administrative Agent or the Lenders to forbear from
exercising any of the rights or remedies available to them under the Loan Documents or under
applicable law (all of which rights and remedies are hereby expressly reserved by the
Administrative Agent and the Lenders) upon or after the occurrence of a Forbearance Termination
Event. As used herein, a “Forbearance Termination Event” shall mean the occurrence of any
of the following: (a) any breach of this Agreement (including without limitation, the financial
covenants set forth in Section 7 below) by any Loan Party, (b) any Event of Default under
the Credit Agreement or any other Loan Document other than the Covenant Defaults, the Reporting
Default, the 10Q Default, the Good Standing Defaults, the Vendor Defaults and the Overadvance
Defaults or (c) November 25, 2009. The period from the date hereof to (but excluding) the date
that a Forbearance Termination Event occurs shall be referred to as the “Forbearance
Period”.

     7. Forbearance Period Financial Covenants.

     (a) From and after the date hereof, the Loan Parties shall not permit Consolidated
EBITDA to be less than:

	 	(i)	 	for the fiscal quarter ending September 30, 2008, $400,000;
	 
	 	(ii)	 	for the four-month period ending October 31, 2008, $1,000,000;
	 
	 	(iii)	 	for the five-month period ending November 30, 2008, $1,600,000;
	 
	 	(iv)	 	for the six-month period ending December 31, 2008, $2,400,000;
	 
	 	(v)	 	for the nine-month period ending March 31, 2009, $1,750,000;
	 
	 	(vi)	 	for the twelve-month period ending June 30, 2009, $2,400,000; and
	 
	 	(vii)	 	for the twelve-month period ending September 30, 2009, $3,400,000.

Within 10 Business Days of the end of each month, the Loan Parties shall deliver to the
Administrative Agent a certificate setting forth the calculation of Consolidated EBITDA, in
the same manner as the calculation of Consolidated EBITDA is set forth on a Compliance
Certificate, for the applicable period ended as of the last day of the preceding month.

     (b) From and after the date hereof, the Loan Parties shall not permit Consolidated
Capital Expenditures, in the aggregate, during any period of the Borrower set forth below to
exceed the amount set forth below:

	 	(i)	 	for the four-month period ending December 31, 2008, $1,725,000;
	 
	 	(ii)	 	for the fiscal quarter ending March 31, 2009, $500,000;
	 
	 	(iii)	 	for the fiscal quarter ending June 30, 2009, $500,000;
	 
	 	(iv)	 	for the fiscal quarter ending September 30, 2009, $400,000; and
	 
	 	(v)	 	for the period thereafter through the Maturity Date, $400,000.

3

 

     8. Borrowing Base/Overadvance. From and after the date hereof, the Loan Parties shall
not permit the aggregate principal amount of all Revolving Loans outstanding at any time to exceed
the lesser of (A) the Borrowing Base then in effect plus $3,600,000 (less the aggregate amount of
any payments hereafter made pursuant to Section 2.05(a) of the Credit Agreement) and (B) the
Aggregate Revolving Commitments then in effect (such excess amount, an “Overadvance”). If,
at any time, an Overadvance exists, the Loan Parties shall immediately prepay the Revolving Loans
in an amount equal to the Overadvance. Any failure by the Loan Parties to timely make such
prepayment shall constitute an immediate Forbearance Termination Event hereunder and Event of
Default under the Credit Agreement.

     9. Shareholder Guarantor Cure of Events of Default. In the event that a Forbearance
Termination Event or an Event of Default occurs as a result of (a) the Loan Parties’ failure to
comply with the financial covenants set forth in Section 7 hereof, (b) the Loan Parties’
failure to make a Scheduled Principal Payment as and when due in accordance with Section 2.05(a) of
the Credit Agreement or (c) the Loan Parties’ failure to comply with Section 8 hereof, such
Forbearance Termination Event or Event of Default, as applicable, shall be deemed cured by the
Shareholder Guarantors’ depositing additional cash collateral with the Administrative Agent
pursuant to the terms of the Shareholder Guaranty and the Cash Collateral Agreement with a
corresponding increase in the amount guaranteed pursuant to the Shareholder Guaranty in an amount
equal to (A) in the case of a Forbearance Termination Event described in clause (a) above,
the amount of the shortfall of the Loan Parties with respect to the applicable financial covenant,
(B) in the case of an Event of Default described in clause (b) above, the amount necessary
to make the Scheduled Principal Payment required and (C) in the case of a Forbearance Termination
Event described in clause (c) hereof, the amount by which the aggregate principal amount of
Revolving Loans outstanding at such time exceeds the amount permitted under Section 8
hereof. In connection with any such deposit of additional cash collateral, the Borrower shall
cause the Shareholder Guarantors to execute any documents reasonably requested by the
Administrative Agent in connection therewith.

     10. Forbearance Fee. In consideration of the Lenders’ willingness to enter into this
Agreement, the Loan Parties shall be obligated to pay to the Administrative Agent (for the ratable
benefit of the Lenders) a forbearance fee of $275,000 (which amount includes, for the avoidance of
doubt, fees in the amount of $75,000 accrued prior to the date hereof, the “Forbearance
Fee”) which fee shall be fully earned and non-refundable as of the date hereof;
provided that the Forbearance Fee shall be due and payable upon the occurrence of a
Forbearance Termination Event.

     11. Extension Fees. The Loan Parties shall be obligated to pay to the Administrative
Agent (for the ratable benefit of the Lenders) (i) a first extension fee in the amount of 0.2% of
the aggregate amount of Obligations outstanding under the Loan Documents as of January 1, 2009,
which fee shall be fully earned and non-refundable as of such date, (ii) a second extension fee in
the amount of 0.2% of the aggregate amount of Obligations outstanding under the Loan Documents as
of April 1, 2009, which fee shall be fully earned and non-refundable as of such date, (iii) a third
extension fee in the amount of 0.2% of the aggregate amount of Obligations outstanding under the
Loan Documents as of July 1, 2009, which fee shall be fully earned and non-refundable as of such
date and (iv) a fourth extension fee in the amount of 0.2% of the aggregate amount of Obligations
outstanding under the Loan Documents as of October 1, 2009, which fee shall be fully earned and
non-refundable as of such date; provided that the foregoing extension fees shall be due and
payable upon the occurrence of a Forbearance Termination Event (to the extent earned prior to or
concurrent with the occurrence of such Forbearance Termination Event).

     12. Guaranty Agreement. The Loan Parties shall cause Milfam Guarantor, LLC and BR
Investco, LLC (the “Shareholder Guarantors”) to execute and deliver to the Administrative
Agent (a) a limited guaranty agreement, in the form attached hereto as Exhibit A (the
“Shareholder Guaranty

4

 

Agreement”) and (b) a lender/guarantor agreement, in the form
attached hereto as Exhibit B (the “Lender/Guarantor Agreement”).

     13. Cash Collateral. As collateral security for the obligations of the Shareholder
Guarantors under the Shareholder Guaranty Agreement, the Loan Parties shall cause the Shareholder
Guarantors (i) to deposit cash in an amount equal to $9,000,000 (the “Deposit”) into an
account maintained with the Administrative Agent (in which the Loan Parties shall have no interest)
and (ii) to execute and deliver a Cash Collateral Agreement, in the form attached hereto as
Exhibit C (the “Cash Collateral Agreement”), to the Administrative Agent.

     14. Amendments to Credit Agreement.

     (a) The following definitions in Section 1.01 of the Credit Agreement are hereby
amended and restated in their entirety to read as follows:

     “Aggregate Commitments” means the Aggregate Revolving Commitments, the
Aggregate Term Loan Commitments and the Aggregate Term B Loan Commitments.

     “Collateral Documents” means, collectively, (a) the Security Agreement
and other security documents as may be executed and delivered by the Loan Parties
pursuant to the terms of Section 7.14 and (b) the Cash Collateral Agreement.

     “Commitment” means, as to each Lender, the Revolving Commitment, the
Term Loan Commitment or the Term B Loan Commitment, as applicable, of such Lender.

     “Default Rate” means an interest rate equal to (i) the Base Rate
plus (ii) the Applicable Rate, if any, applicable to Base Rate Loans
plus (iii) 2% per annum; provided, however, that (i) with
respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal
to the interest rate (including any Applicable Rate) otherwise applicable to such
Loan plus 2% per annum and (ii) with respect to a Special Rate Loan, the Default
Rate shall be an interest rate equal to the Special Rate plus 2% per annum, in each
case to the fullest extent permitted by applicable Laws; provided that the
Default Rate shall be payable on a Special Rate Loan only so long as an Event of
Default has occurred and is continuing as a result of the Loan Parties’ failure to
timely make any payment with respect to such Special Rate Loan.

     “Loan” means an extension of credit by a Lender to the Borrower under
Article II in the form of a Revolving Loan, a Term Loan or a Term B Loan.

     “Loan Documents” means this Agreement, each Note, each Joinder
Agreement, the Collateral Documents and the Intercreditor Agreement.

     “Note” means the Revolving Notes, the Term Loan Notes and the Term B
Loan Notes, individually or collectively, as appropriate.

     (b) The following definitions are hereby added to Section 1.01 of the Credit Agreement
in the appropriate alphabetical order:

     “Aggregate Term B Loan Commitments” means the Term B Loan Commitments
of all the Lenders. The initial amount of the Aggregate Term B Loan Commitments in
effect as of September 4, 2008 is NINE MILLION DOLLARS ($9,000,000).

5

 

     “Cash Collateral Agreement” means that certain Cash Collateral
Agreement dated as of September 4, 2008 given by the Shareholder Guarantors to the
Administrative Agent.

     “Domestic Loan Parties” means the Loan Parties other than the Foreign
Guarantors and Foreign Subsidiaries.

     “Foreign Guarantor” means a Guarantor that is a Foreign Subsidiary.

     “Lender/Guarantor Agreement” means that certain Lender/Guarantor
Agreement, dated as of September 4, 2008, by and among the Shareholder Guarantors
and the Lenders.

     “Obligors” means, collectively, the Borrower, the Guarantors and the
Shareholder Guarantors.

     “Shareholder Guarantors” means Milfam Guarantor, LLC and BR Investco,
LLC.

     “Shareholder Guaranty Agreement” means that certain Shareholder
Guaranty Agreement dated as of September 4, 2008 given by the Shareholder Guarantors
to the Administrative Agent.

     “Special Rate” means for any day a fluctuating rate per annum equal to
the Federal Funds Rate plus 9%.

     “Special Rate Loan” means a Loan that bears interest at the Special
Rate.

     “Term B Cash Pay Interest” has the meaning specified in Section
2.06(c).

     “Term B Loan” has the meaning specified in Section 2.01(c).

     “Term B Loan Commitment” means, as to each Lender, its obligation to
make Term B Loans to the Borrower pursuant to Section 2.01, in an aggregate
principal amount at any one time outstanding not to exceed the amount set forth
opposite such Lender’s name on Schedule 2.01 or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable, as
such amount may be adjusted from time to time in accordance with this Agreement.

     “Term B Loan Note” has the meaning specified in Section 2.09.

     “Term B PIK Interest” has the meaning specified in Section
2.06(c).

     “Third Amendment” means that certain Forbearance Agreement and Third
Amendment to Amended and Restated Credit Agreement, dated as of September 4, 2008,
by and among the Administrative Agent, the Lenders and the Loan Parties.

     (c) The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is
hereby amended by replacing the pricing grid contained therein with the following pricing
grid:

6

 

	 	 	 	 	 	 	 	 	 
	Pricing 

Tier
	 	Consolidated

Leverage Ratio
	 	Commitment

Fee
	 	Eurodollar Rate

Based Loans
	 	Base Rate

Loans
	 
	 	 
	 	 
	 	 
	 	 
	1
	 	≤ 2.5 to 1.0
	 	0.250%
	 	4.00%
	 	2.50%
	2
	 	> 2.5 to 1.0
	 	0.250%
	 	4.50%
	 	3.00%

     (d) Each reference to “Loan Party” or “Loan Parties” in the following provisions of the
Credit Agreement is amended to read “Domestic Loan Party” or “Domestic Loan Parties”, as
applicable:

-definitions of Disposition, Eligible Domestic Accounts Receivable, Eligible
Unbilled Receivables, Excluded Property, Permitted Acquisitions (other than clause
(d) thereof) and Security Agreement

-Section 7.15

-Section 7.17

-Section 8.08(a)

     (e) The following sentence is added to the end of the definition of “Excluded Taxes” in
Section 1.01 of the Credit Agreement:

Notwithstanding anything to the contrary contained in this definition, “Excluded
Taxes” shall not include any withholding tax imposed at any time on payments made by
or on behalf of a Foreign Subsidiary to any Lender hereunder or under any other Loan
Document, provided that such Lender shall have complied with the last
paragraph of Section 3.01(e); and provided further that, if
the Borrower or the Foreign Subsidiary informs the Lender with reasonable advance
notice that the Lender may be entitled to an exemption or reduction from withholding
tax imposed by the jurisdiction in which the Foreign Subsidiary is organized and if
the Lender determines in its reasonable discretion that it is entitled to claim such
exemption or reduction (with Borrower agreeing to pay any reasonable costs and
expenses incurred by the Lender in connection with making such determination and
such claim), Lender shall have claimed such exemption or reduction.

     (f) A new Section 2.01(c) is hereby added to the Credit Agreement to read as follows:

     (c) Term B Loan. Subject to the terms and conditions set forth herein,
each Lender severally agrees to make its portion of a term loan (the “Term B
Loan”) to the Borrower in Dollars on the effective date of the Third Amendment
in an amount not to exceed such Lender’s Term B Loan Commitment. Amounts repaid on
the Term B Loan may not be reborrowed. The Term B Loan shall be a Special Rate
Loan.

     (g) Section 2.02(a) of the Credit Agreement is hereby amended by adding the following
sentence to the end thereof:

Notwithstanding anything to the contrary herein, a Term B Loan may not be converted
to a Eurodollar Rate Loan or a Base Rate Loan, but instead shall at all times be a
Special Rate Loan.

     (h) Section 2.03(a) of the Credit Agreement is hereby amended by deleting the first
sentence thereof and replacing it with the following sentence:

7

 

The Borrower may, upon notice from the Borrower to the Administrative Agent, at any
time or from time to time voluntarily prepay Loans in whole or in part without
premium or penalty; provided that (A) such notice must be received by the
Administrative Agent not later than 11:00 a.m. (1) three Business Days prior to any
date of prepayment of Eurodollar Rate Loans and (2) on the date of prepayment of
Base Rate Loans or Eurodollar Daily Floating Rate Loans; (B) any such prepayment
shall be in a principal amount of $250,000 or a whole multiple of $100,000 in excess
thereof (or, if less, the entire principal amount thereof then outstanding) (except
in connection with any automatic sweep provisions contemplated under Section
7.17) and (C) the Borrower may not prepay the Term B Loan until such time as all
other Obligations have been repaid in full and the Commitments have been terminated.

     (i) Section 2.03(b)(i)(B) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

     (B) the Borrowing Base then in effect plus $3,600,000 (less the aggregate
amount of any payments made pursuant to Section 2.05(a) after September 5,
2008)

     (j) Section 2.03(b)(v)(B) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

     (B) with respect to all amounts prepaid pursuant to Sections
2.03(b)(ii), (iii) and (iv):

     (1) first, to the Term Loan (to the remaining principal amortization
payments of the Term Loan in reverse order thereof (other than with respect
to any prepayment made with Net Cash Proceeds of the Nokia Disposition,
which shall be applied (I) first, to the Term Loan in the direct order of
maturity in accordance with the amortization schedule set forth in
Section 2.05 and (II) thereafter, to the payment of any accrued and
unpaid interest on the Loans (but subject to Section 9.04 in the
case of payment of interest on the Term B Loan)));

     (2) second, (after the Term Loan has been paid in full) to the
Revolving Loans (with a corresponding permanent reduction in the Aggregate
Revolving Commitments); and

     (3) third, to the remaining Obligations in the order set forth in
Section 9.03 (but subject to Section 9.04).

     (k) Section 2.05(a) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

     (a) The Borrower shall repay the principal balance of the Loans (applied first
to the Term Loan until the Term Loan has been repaid in full, and thereafter, to the
Revolving Loans with a corresponding reduction to the Aggregate Revolving
Commitments) by making a payment on each date set forth below in the respective
amount set forth in the table below (each such payment, a “Scheduled Principal
Payment”):

8

 

	 	 	 	 	 
	Date	 	Payment Amount
	December 31, 2008
	 	$	1,000,000	 
	March 31, 2009
	 	$	1,000,000	 
	June 30, 2009
	 	$	1,000,000	 
	September 30, 2009
	 	$	1,000,000	 
	Maturity Date
	 	Remaining balance (if any)

     (l) Section 2.06(a) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

     (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate
Loan shall bear interest on the outstanding principal amount thereof for each
Interest Period at a rate per annum equal to the sum of the Eurodollar Rate for such
Interest Period plus the Applicable Rate, (ii) each Eurodollar Daily
Floating Rate Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Eurodollar Daily
Floating Rate plus the Applicable Rate, (iii) each Base Rate Loan shall bear
interest on the outstanding principal amount thereof from the applicable borrowing
date at a rate per annum equal to the Base Rate plus the Applicable Rate and
(iv) each Special Rate Loan shall bear interest on the outstanding principal amount
thereof from the applicable borrowing date at a rate per annum equal to the Special
Rate.

     (m) Section 2.06(c) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

     (c) Interest on each Revolving Loan and the Term Loan shall be due and payable
in cash in arrears on each Interest Payment Date applicable thereto and at such
other times as may be specified herein. Interest on the Term B Loan shall be
payable as follows: the Borrower shall make a cash interest payment to the
Administrative Agent in an amount equal to the Federal Funds Rate multiplied by the
outstanding principal balance of the Term B Loan on each Interest Payment Date (the
“Term B Cash Pay Interest”), and the Borrower shall pay all interest
(including for the avoidance of doubt, any interest at the Default Rate) accrued in
respect of the Term B Loan, other than the Term B Cash Pay Interest (the “Term B
PIK Interest”) upon the earlier to occur of (i) the Maturity Date, (ii) the
payment of the Term B Loan in its entirety or (iii) upon acceleration of the Term B
Loan after the occurrence of an Event of Default. Interest hereunder shall be due
and payable in accordance with the terms hereof before and after judgment, and
before and after the commencement of any proceeding under any Debtor Relief Law.

     (n) Section 2.09 of the Credit Agreement is hereby amended by deleting the
second-to-last sentence thereof and replacing it with the following sentence:

Each such promissory note shall (i) in the case of Revolving Loans, be in the form
of Exhibit 2.09(a) (a “Revolving Note”), (ii) in the case of the
Term Loan, be in the form of Exhibit 2.09(b) (a “Term Loan Note”)
and (iii) in the case of the Term B Loan, be in the form of Exhibit 2.09(c)
a (“Term B Loan Note”).

     (o) A new clause (b) is added to Section 7.12 of the Credit Agreement to read as
follows:

     (b) With respect to any Foreign Subsidiary, if a Guarantee of the Obligations
by such Foreign Subsidiary could not reasonably be expected to cause any material

9

 

adverse tax consequences to the Borrower or violate any agreement or obligation to
which such Foreign Subsidiary is a party as of September 4, 2008 (the Borrower and
such Foreign Subsidiary hereby agreeing to use commercially reasonable efforts to
obtain a waiver of any such agreement or obligation in order to permit the Guarantee
of the Obligations by such Foreign Subsidiary), cause such Foreign Subsidiary to (i)
become a Guarantor by executing and delivering to the Administrative Agent a Joinder
Agreement or such other documents as the Administrative Agent shall deem appropriate
for such purpose, and (ii) upon the request of the Administrative Agent in its sole
discretion, deliver to the Administrative Agent such Organization Documents,
resolutions and favorable opinions of counsel, all in form, content and scope
reasonably satisfactory to the Administrative Agent.

     (p) In clause (a)(ii) of Section 7.14 of the Credit Agreement, the parenthetical “(or
such greater percentage that, due to a change in an applicable Law after the date hereof,
(1) could not reasonably be expected to cause the undistributed earnings of such Foreign
Subsidiary as determined for United States federal income tax purposes to be treated as a
deemed dividend to such Foreign Subsidiary’s United States parent and (2) could not
reasonably be expected to cause any material adverse tax consequences)” is amended to read
“(or such greater percentage that could not reasonably be expected to cause any material
adverse tax consequences to the Borrower)”.

     (q) Clause (d) of Section 8.02 of the Credit Agreement is amended to read as follows:

(d) (i) Investments in any Person that is a Domestic Loan Party prior to or
upon giving effect to such Investment, provided that if such Investment is a
loan or advance from a Foreign Subsidiary, such loan or advance shall be
subordinated to the Obligations in a manner and to an extent reasonably
acceptable to the Administrative Agent;

     (ii) Investments by any Foreign Guarantor in any Person that is a
Foreign Guarantor prior to or upon giving effect to such Investment;

     (r) Clause (b) of Section 8.04 of the Credit Agreement is amended to read as follows:

     (b) any Subsidiary may merge or consolidate with any other Subsidiary provided
that (i) if a Domestic Loan Party is a party to such transaction, the continuing or
surviving Person is a Domestic Loan Party and (ii) of a Domestic Loan Party is not
party to such transaction and a Foreign Guarantor is party to such transaction, the
continuing or surviving Person is a Foreign Guarantor,

     (s) Clause (a)(v) of Section 8.09 of the Credit Agreement is amended to read as
follows:

     (v) in the case of any Person that is not a Foreign Subsidiary, pledge its
property pursuant to the Loan Documents or any renewals, refinancings, exchanges,
refundings or extension thereof (and, in the case of a Foreign Subsidiary, after the
effective date of the Third Amendment, enter into any Contractual Obligation which
encumbers or restricts its ability to pledge its property pursuant to the Loan
Documents or any renewals, refinancings, exchanges, refundings or extension thereof
or

10

 

     (t) The phrase “or any Shareholder Guarantor” is added after each reference to “or any
Subsidiary” in Section 9.01(f) of the Credit Agreement, and the phrase “if (and so long as),
in any such case involving any Shareholder Guarantor, the Collateral under and as defined in
the Cash Collateral Agreement is subject to any stay or other restriction on the
Administrative Agent’s rights and remedies thereunder” is added at the end of such section.

     (u) A new Section 9.04 is hereby added to the Credit Agreement to read as follows:

9.04 Application to Term B Loan

     Notwithstanding anything to the contrary contained herein, including without
limitation Section 9.03, no amounts received by the Administrative Agent or
any Lender on account of the Obligations shall be applied by the Administrative
Agent to Obligations constituting unpaid principal or Term B PIK Interest of the
Term B Loan until such time as all other Obligations have been paid in full and all
Commitments terminated. Any amounts thereafter received on account of the
Obligations shall be applied by the Administrative Agent (i) first, to unpaid Term B
Cash Pay Interest, (ii) second, to the payment of that portion of the Obligations
constituting unpaid principal of the Term B Loan and (iii) thereafter, to the
payment of that portion of the Obligations constituting Term B PIK Interest, in each
case, ratably among the Lenders in proportion to the respective amounts of the Term
B Loan held by them.

     (v) Section 11.06(b)(iii)(A) of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

     (A) the consent of the Borrower (such consent not to be unreasonably withheld
or delayed) shall be required unless (1) an Event of Default has occurred and is
continuing at the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender, an Approved Fund or a Shareholder Guarantor; and

     (w) Section 11.06(b)(v) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

     (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates (except any Shareholder Guarantor,
including any such assignment to such Shareholder Guarantor made pursuant to Section
5 of the Lender/Guarantor Agreement) or Subsidiaries.

     (x) Schedule 2.01 to the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

Schedule 2.01

Commitments and Applicable Percentages

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	 	Term Loan	 	 	Term B Loan	 	 	 	 
	Lender	 	Commitment	 	 	Commitment	 	 	Commitment	 	 	Pro Rata Shares	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank of America, N.A.
	 	$	21,951,000	 	 	$	2,300,000	 	 	$	9,000,000	 	 	 	100.000000000	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	$	21,951,000	 	 	$	2,300,000	 	 	$	9,000,000	 	 	 	100.000000000	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 

11

 

     (y) A new Exhibit 2.09(c) is hereby added to the Credit Agreement in the form of
Exhibit D attached hereto.

     15. Financial Consultant. Counsel to the Administrative Agent has retained FTI
Consulting, Inc. as its financial consultant (the “Financial Consultant”) to advise counsel
to the Administrative Agent with regard to the operations and financial performance of the Loan
Parties. The Loan Parties shall (a) continue to cooperate fully with the Financial Consultant,
which cooperation shall include, but shall not be limited to, allowing the Financial Consultant (i)
full access to observe the Loan Parties’ respective operations, (ii) the opportunity to inspect the
Loan Parties’ respective financial records and projections and (iii) the opportunity to meet with,
upon reasonable notice, the Loan Parties’ officers, the Investment Banker and, to the extent
retained, any restructuring consultant or similar advisor and (b) upon demand, reimburse counsel to
the Administrative Agent for the reasonable fees and expenses of the Financial Consultant.

     16. Investment Banker. On or before September 15, 2008, the Loan Parties shall select
a qualified investment banker reasonably acceptable to the Administrative Agent and the Lenders
(the “Investment Banker”). On or before September 22, 2008, the Loan Parties shall have
retained the Investment Banker to evaluate the feasibility of, and, as requested by the Borrower,
facilitate, a sale or sales of certain assets, lines of business or Equity Interests in
Subsidiaries of the Loan Parties and any and all alternatives for raising capital to enable the
Loan Parties to repay all Obligations under the Loan Documents. The Loan Parties hereby agree that
they shall require the Investment Banker, pursuant to the terms of such retention, to deliver the
Investment Banker’s initial report regarding the feasibility of a sale or sales of certain assets,
lines of business or Equity Interests in Subsidiaries of the Loan Parties and any and all
alternatives for raising capital to enable the Loan Parties to repay all Obligations under the Loan
Documents to the Administrative Agent, the Lenders and the Financial Consultant on or before
October 31, 2008. The Loan Parties shall pay all costs and fees associated with the retention of
the Investment Banker as and when due. The Loan Parties hereby agree to cooperate fully with the
Investment Banker and to allow the Investment Banker to have access to such information regarding
the Loan Parties’ operations and financial performance as is reasonably requested by the Investment
Banker or the Administrative Agent. Upon the request of the Administrative Agent, the Loan Parties
shall make the Investment Banker available to the Administrative Agent, the Lenders and the
Financial Consultant to provide such information as is reasonably requested by the Administrative
Agent, the Lenders and the Financial Consultant.

     17. Joinder of Guarantors. On or before October 31, 2008 and in any event, within 10
Business Days after the Administrative Agent or its counsel shall have delivered the applicable
documentation to the Loan Parties, the Loan Parties shall cause each of their respective
Subsidiaries identified on Schedule A hereto (the “Foreign Loan Parties”) to (a)
become a Guarantor by executing and delivering to the Administrative Agent a Joinder Agreement (or
other documentation acceptable to the Administrative Agent) and such other documents as the
Administrative Agent shall reasonably request, (b) grant a security interest (or the applicable
foreign equivalent) on its personal property as collateral for its obligations as a Guarantor and
deliver any related instruments, documents or filings as are reasonably requested by the
Administrative Agent in connection with such security interest and (c) deliver to the
Administrative Agent such Organization Documents, resolutions and favorable opinions of counsel as
the Administrative Agent shall reasonably request, all in form content and scope reasonably
satisfactory to the Administrative Agent; provided that, in the case of LCC Wireless
Communications Espana, SA (“LCC Spain”) and LCC Networth Services, BV (“LCC
Netherlands”) such Guarantee of the Obligations or granting of such security interest by LCC
Spain or LCC Netherlands shall not be required to the extent that, and for so long as, such
Guarantee of the Obligations or granting of such security interest, as applicable, could not
reasonably be expected to violate any agreement or obligation to which LCC Spain

12

 

or LCC Netherlands is a party as of September 4, 2008 (the Borrower and LCC Spain or LCC
Netherlands, as applicable, hereby agreeing to use commercially reasonable efforts to obtain a
waiver of any such agreement or obligation in order to permit the Guarantee of the Obligations and
grant of security interest by LCC Spain or LCC Netherlands, as applicable).

     18. Pledged Equity.

     (a) On or prior to the date hereof, the Loan Parties shall cause 100% of the Equity
Interests of all Foreign Subsidiaries directly owned by the Borrower or any Domestic
Subsidiary on the date hereof to be pledged to the Administrative Agent, for the ratable
benefit of the Lenders, to secure the Obligations pursuant to documentation in form and
substance satisfactory to the Administrative Agent. On or before September 10, 2008, the
Loan Parties shall (i) deliver to the Administrative Agent all certificates evidencing such
Equity Interests, together with duly executed in blank, undated stock powers attached
thereto (unless deemed unnecessary by the Administrative Agent in its reasonable discretion)
and (ii) deliver to the Administrative Agent such Organization Documents, resolutions and
favorable opinions of counsel as the Administrative Agent shall reasonably request, all in
form content and scope reasonably satisfactory to the Administrative Agent.

     (b) On or before October 31, 2008 and in any event, within 10 Business Days after the
Administrative Agent or its counsel shall have delivered the applicable documentation to the
Loan Parties, the Loan Parties shall (i) cause 100% of the Equity Interests of all Foreign
Subsidiaries directly owned by any Foreign Loan Party on the date hereof to be pledged to
the Administrative Agent, for the ratable benefit of the Lenders, to secure the Obligations
pursuant to documentation in form and substance satisfactory to the Administrative Agent,
(ii) deliver to the Administrative Agent all certificates evidencing such Equity Interests,
together with duly executed in blank, undated stock powers attached thereto (unless deemed
unnecessary by the Administrative Agent in its reasonable discretion) and (iii) deliver to
the Administrative Agent such Organization Documents, resolutions and favorable opinions of
counsel as the Administrative Agent shall reasonably request, all in form content and scope
reasonably satisfactory to the Administrative Agent; provided that the
Administrative Agent shall not require the Loan Parties to take actions necessary to perfect
the pledge described herein in the jurisdictions of any Foreign Subsidiary that is not a
jurisdiction of any Foreign Loan Party; provided further that such pledge of
Equity Interests of such Foreign Subsidiary shall not be required to the extent that, and
for so long as, such pledge of Equity Interests of such Foreign Subsidiary could not
reasonably be expected to violate any agreement or obligation to which such Foreign
Subsidiary, LCC Netherlands or LCC Spain is a party as of September 4, 2008 (the Borrower
and such Foreign Subsidiary, LLC Netherlands or LCC Spain, as applicable, hereby agreeing to
use commercially reasonable efforts to obtain a waiver of any such agreement or obligation
in order to permit such pledge of Equity Interests of such Foreign Subsidiary).

     19. July 2008 Financial Statements. On or before September 20, 2008, the Loan Parties
shall deliver to the Administrative Agent the financial statements and other deliverables described
in Section 7.01(b) of the Credit Agreement for the month ended July 31, 2008.

     20. Good Standing. On or before September 30, 2008, the Borrower shall renew its good
standing under the Laws of the states of Delaware and Virginia and shall deliver evidence of such
good standing to the Administrative Agent.

13

 

     21. Effectiveness; Conditions Precedent. This Agreement (and any obligation of the
Lenders to make the Term B Loan available to the Loan Parties) shall be effective as of the date
hereof upon satisfaction of the following conditions in form and substance satisfactory to the
Administrative Agent:

     (a) The Administrative Agent shall have received counterparts of this Agreement duly
executed by each of the Loan Parties, the Administrative Agent and each of the Lenders.

     (b) The Administrative Agent shall have received the Term B Loan Note, duly executed by
the Borrower.

     (c) The Administrative Agent shall have received the Past Due Amount, the September
Payment and the August Interest Payment.

     (d) The Administrative Agent shall have received (i) the Deposit, (ii) counterparts of
the Shareholder Guaranty Agreement and the Cash Collateral Agreement duly executed by the
Shareholder Guarantors and the Administrative Agent and (iii) such Organization Documents,
resolutions and favorable opinions of counsel related to the Shareholder Guarantors, the
Shareholder Guaranty Agreement and the Cash Collateral Agreement as the Administrative Agent
shall reasonably request, all in form content and scope reasonably satisfactory to the
Administrative Agent.

     (e) The Administrative Agent shall have received a retainer in the amount of $150,000
(the “Retainer”), which Retainer, for the avoidance of doubt, represents an estimate
rather than a cap, in respect of expenses expected to be incurred by the Administrative
Agent in connection with the joinder of guarantors and pledge of equity described in
Section 17 and Section 18 hereof.

     (f) The Administrative Agent shall have received executed copies of the resolutions
duly adopted by the board of directors or other governing body of each Loan Party, as
applicable, authorizing the transactions contemplated hereby and the execution, delivery and
performance of this Agreement.

     (g) The Administrative Agent’s counsel shall have been reimbursed by the Loan Parties
for all fees and expenses incurred by the Administrative Agent’s counsel in connection with
the engagement of FTI Consulting, Inc. as its financial consultant.

     (h) The Administrative Agent shall have been reimbursed by the Loan Parties for all
fees and expenses (including, without limitation, reasonable attorneys fees) owed by the
Loan Parties to the Administrative Agent and billed as of the date hereof.

     22. Representations of the Loan Parties. Each of the Loan Parties represents and
warrants to the Administrative Agent and the Lenders as follows:

     (a) It has taken all necessary action to authorize the execution, delivery and
performance of this Agreement and any other documents delivered by it in connection
herewith.

     (b) This Agreement and each other document delivered by it in connection herewith has
been duly executed and delivered by such Person and constitutes such Person’s legal, valid
and binding obligation, enforceable in accordance with its terms, except as such
enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and
(ii) general principles of

14

 

equity (regardless of whether such enforceability is considered in a proceeding at law or in
equity).

     (c) No consent, approval, authorization or order of, or filing, registration or
qualification with, any court or governmental authority or third party is required in
connection with the execution, delivery or performance by such Person of this Agreement.

     (d) The execution and delivery of this Agreement or any other document delivered by it
in connection herewith does not (i) violate, contravene or conflict with any provision of
its Organization Documents or (ii) materially violate, contravene or conflict with any Laws
applicable to it or any of its Subsidiaries.

     (e) After giving effect to this Agreement and except as set forth in Schedule B
hereto, (i) the representations and warranties of the Obligors set forth in the Loan
Documents are true, accurate and complete in all material respects on and as of the date
hereof to the same extent as though made on and as of such date except to the extent such
representations and warranties specifically relate to an earlier date and (ii) no event has
occurred and is continuing which constitutes a Default or an Event of Default (other than
the Covenant Defaults, the Reporting Default, the 10Q Default, the Good Standing Defaults,
the Vendor Defaults and the Overadvance Defaults).

     23. Release. In consideration of the Administrative Agent’s and the Lenders’
willingness to enter into this Agreement, the Loan Parties hereby release the Administrative Agent,
the Lenders and each of their respective officers, employees, representatives, agents, counsel and
directors from any and all actions, causes of action, claims, demands, damages and liabilities of
whatever kind or nature, in law or in equity, now known or unknown, suspected or unsuspected to the
extent that any of the foregoing arises from any action or failure to act solely in connection with
the Loan Documents on or prior to the date hereof.

     24. Reaffirmation of Guaranty. Each Guarantor (a) acknowledges and consents to all of
the terms and conditions of this Agreement, (b) affirms all of its obligations under the Loan
Documents and (c) agrees that this Agreement and all documents executed in connection herewith do
not operate to reduce or discharge such Guarantor’s obligations under the Loan Documents.

     25. Expenses. Upon demand therefor, the Loan Parties shall pay all reasonable
out-of-pocket expenses incurred by the Administrative Agent and the Lenders (including without
limitation the reasonable fees and out-of-pocket expenses of counsel) in connection with or related
to the negotiation, drafting, and execution of this Agreement and the transactions contemplated
hereby (including the joinder of guarantors and pledge of equity contemplated in Section 17
and Section 18 hereof).

     26. Reference to and Effect on Credit Agreement. Except as specifically modified
herein, the Loan Documents shall remain in full force and effect. The execution, delivery and
effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of the
Administrative Agent and the Lenders under any of the Loan Documents, or constitute a waiver or
amendment of any provision of any of the Loan Documents, except as expressly set forth herein. The
breach of any provision or representation under this Agreement shall constitute an immediate Event
of Default under the Credit Agreement, and this Agreement shall constitute a Loan Document.

15

 

     27. Further Assurances. The Administrative Agent, the Lenders and the Loan Parties
each agree to execute and deliver, or to cause to be executed and delivered, all such instruments
as may reasonably be requested to effectuate the intent and purposes, and to carry out the terms,
of this Agreement.

     28. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

     29. Miscellaneous.

     (a) This Agreement shall be binding on and shall inure to the benefit of the Loan
Parties, the Administrative Agent, the Lenders and their respective successors and permitted
assigns. The terms and provisions of this Agreement are for the purpose of defining the
relative rights and obligations of the Loan Parties, the Administrative Agent and the
Lenders with respect to the transactions contemplated hereby and there shall be no third
party beneficiaries of any of the terms and provisions of this Agreement.

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

     (c) Wherever possible, each provision of this Agreement shall be interpreted in such a
manner as to be effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     (d) Except as otherwise provided in this Agreement, if any provision contained in this
Agreement is in conflict with, or inconsistent with, any provision in the Loan Documents,
the provision contained in this Agreement shall govern and control.

     (e) This Agreement may be executed in any number of separate counterparts, each of
which shall collectively and separately constitute one agreement. Delivery of an executed
counterpart of this Agreement by telecopy shall be effective as an original.

     30. Entirety. This Agreement and the other Loan Documents embody the entire agreement
between the parties and supersede all prior agreements and understandings, if any, relating to the
subject matter hereof. This Agreement and the other Loan Documents represent the final agreement
between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties.

[remainder of page intentionally left blank]

16

 

     IN WITNESS WHEREOF, the parties hereto have caused this Forbearance Agreement and Third
Amendment to Amended and Restated Credit Agreement to be duly executed as of the date first above
written.

	 	 	 	 	 
	LOAN PARTIES: 	LCC INTERNATIONAL, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Louis Salamone, Jr.
 	 
	 	 	Name:  	Louis Salamone, Jr. 	 
	 	 	Title:  	Executive Vice President and
Chief Financial Officer 	 
	 
	 	LCC WIRELESS SERVICES, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Louis Salamone, Jr.
 	 
	 	 	Name:  	Louis Salamone, Jr. 	 
	 	 	Title:  	Authorized Officer 	 
	 
	 	LCC DESIGN SERVICES, L.L.C.,

a Delaware limited liability company

 	 
	 	By:  	/s/ Louis Salamone, Jr.
 	 
	 	 	Name:  	Louis Salamone, Jr. 	 
	 	 	Title:  	Authorized Officer 	 
	 
	 	LCC WIRELESS DESIGN SERVICES, L.L.C.,

a Delaware limited liability company

 	 
	 	By:  	/s/ Louis Salamone, Jr.
 	 
	 	 	Name:  	Louis Salamone, Jr. 	 
	 	 	Title:  	Authorized Officer 	 

Forbearance Agreement and Third Amendment to Amended and Restated Credit Agreement

 

	 	 	 	 	 

	 	 	 	 	 
	ADMINISTRATIVE AGENT: 	BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ John P. McDuffie
 	 
	 	 	Name:  	John P. McDuffie 	 
	 	 	Title:  	Senior Vice President 	 
	 
	LENDER: 	BANK OF AMERICA, N.A.,

as Lender

 	 
	 	By:  	/s/ John P. McDuffie
 	 
	 	 	Name:  	John P. McDuffie 	 
	 	 	Title:  	Senior Vice President 	 

Forbearance Agreement and Third Amendment to Amended and Restated Credit Agreement 

 

	 	 	 	 	 

EXHIBIT A

Shareholder Guaranty Agreement

(attached)

 

SHAREHOLDER GUARANTY AGREEMENT

     This SHAREHOLDER GUARANTY AGREEMENT (this “Agreement”) dated as of September 4, 2008
is given by MILFAM GUARANTOR, LLC, a Delaware limited liability company (“Miller”), and BR
INVESTCO, LLC, a Delaware limited liability company (“Riley” and, together with Miller, the
“Shareholder Guarantors”), in favor of BANK OF AMERICA, N.A., as Administrative Agent (in
such capacity, the “Administrative Agent”) for the benefit of the Lenders (as defined in
the Credit Agreement referred to below).

RECITALS

     A. A credit facility has been established in favor of LCC International, Inc., a Delaware
corporation (the “Borrower”), pursuant to the terms of that certain Amended and Restated
Credit Agreement, dated as of May 29, 2007 (as amended and otherwise modified from time to time,
the “Credit Agreement”), among the Borrower, the Guarantors, the Lenders and the
Administrative Agent.

     B. Certain Events of Default have occurred and are continuing under the Credit Agreement (the
“Existing Events of Default”).

     C. The Borrower has requested that the Administrative Agent and the Lenders (i) forbear from
exercising their rights and remedies under the Credit Agreement arising as a result of the
occurrence of the Existing Events of Default, (ii) make certain modifications to the terms of the
Credit Agreement and (iii) make additional extensions of credit under the Credit Agreement.

     D. The Administrative Agent and the Lenders have agreed to do so, but only pursuant to the
terms and conditions set forth in that certain Forbearance Agreement and Third Amendment to Credit
Agreement, dated as of the date hereof (as amended and otherwise modified from time to time, the
“Forbearance Agreement”), by and among the Borrower, the Guarantors, the Lenders and the
Administrative Agent.

     E. The Shareholder Guarantors, as affiliates of owners of certain Equity Interests of the
Borrower, have determined that they shall derive direct economic benefit from the agreements of the
Administrative Agent and the Lenders set forth in the Forbearance Agreement and that this Agreement
is necessary or convenient to the conduct, promotion or attainment of its business.

     F. As a condition to the effectiveness of the Forbearance Agreement, the Administrative Agent
and the Lenders have required the Shareholder Guarantors to execute this Agreement in favor of the
Administrative Agent, for the benefit of the Lenders.

AGREEMENT

     NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Shareholder Guarantors hereby
agree as follows:

     1. Definitions. Capitalized terms used herein and not defined herein shall have the
meanings assigned to such terms in the Credit Agreement.

     2. The Guaranty. Each of the Shareholder Guarantors hereby jointly and severally
guarantees to each Lender, each other holder of Obligations and the Administrative Agent as
hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations
in full when due

 

 

(whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) strictly in accordance with the terms thereof. The Shareholder
Guarantors hereby further agree that if any of the Obligations are not paid in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise), the Shareholder Guarantors will, jointly and severally, promptly
pay the same, without demand or notice whatsoever, and that in the case of any extension of time of
payment or renewal of any of the Obligations, the same will be promptly paid in full when due
(whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension or renewal.

     Notwithstanding any provision to the contrary contained herein or in any other of the Loan
Documents, Swap Contracts or Treasury Management Agreements, the obligations of all of the
Shareholder Guarantors under this Agreement and the other Loan Documents shall be limited to an
aggregate amount equal to the lesser of (i) the amount then in the Cash Collateral Account (as
defined in that certain Cash Collateral Agreement, dated as of the date hereof (the “Cash
Collateral Agreement”), by and among the Administrative Agent and the Shareholder Guarantors)
in accordance with the terms of the Cash Collateral Agreement (or, if the obligations hereunder are
reinstated pursuant to the provisions of Section 5 and the amounts in the Cash Collateral
Account have previously been released in accordance with the terms of the Cash Collateral
Agreement, the amount so released) plus all reasonable costs and expenses, including attorney’s
fees, incurred by the Lender in enforcing this Agreement) or (ii) the largest amount that would not
render such obligations subject to avoidance under the Debtor Relief Laws or any comparable
provisions of any applicable state law.

     3. Obligations Unconditional. The obligations of the Shareholder Guarantors under
Section 2 are joint and several, absolute and unconditional, irrespective of the value,
genuineness, validity, regularity or enforceability of any of the Loan Documents or other documents
relating to the Obligations, or any substitution, release, impairment or exchange of any other
guarantee of or security for any of the Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever (other than the indefeasible
payment in full of all Obligations) which might otherwise constitute a legal or equitable discharge
or defense of a surety or guarantor, it being the intent of this Section 3 that the
obligations of the Shareholder Guarantors hereunder shall be absolute and unconditional under any
and all circumstances. Without limiting the generality of the foregoing, it is agreed that, to the
fullest extent permitted by law, the occurrence of any one or more of the following shall not alter
or impair the liability of any Shareholder Guarantor hereunder, which shall remain absolute and
unconditional as described above:

     (a) at any time or from time to time, without notice to any Shareholder Guarantor, the
time for any performance of or compliance with any of the Obligations shall be extended, or
such performance or compliance shall be waived;

     (b) any of the acts mentioned in any of the provisions of any of the Loan Documents or
any other document relating to the Obligations shall be done or omitted;

     (c) the maturity of any of the Obligations shall be accelerated, or any of the
Obligations shall be modified, increased, extended, supplemented or amended in any respect,
or any right under any of the Loan Documents or any other document relating to the
Obligations shall be waived or any other guarantee of any of the Obligations or any security
therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt
with;

     (d) any manner of application of collateral or proceeds thereof to all or any of the
Obligations or any manner of sale or other disposition of any collateral;

2

 

     (e) any change, restructuring or termination of the corporate or limited liability
structure or existence of any Loan Party or any its Subsidiaries;

     (f) any Lien granted to, or in favor of, the Administrative Agent or any other holder
of the Obligations as security for any of the Obligations shall fail to attach or be
perfected or shall be released;

     (g) any of the Obligations or Loan Documents shall be determined to be void or voidable
(including, without limitation, for the benefit of any creditor of any Shareholder
Guarantor) or shall be subordinated to the claims of any Person (including, without
limitation, any creditor of any Shareholder Guarantor); or

     (h) any other circumstance (including without limitation any statute of limitations) or
any existence of or reliance on any representation by any Lender that might otherwise
constitute a defense available to, or a discharge of, any Loan Party (other than the
indefeasible payment in full of all Obligations).

     With respect to its obligations hereunder, each Shareholder Guarantor hereby expressly waives
diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement
that the Administrative Agent or any other holder of the Obligations exhaust any right, power or
remedy or proceed against any Person under any of the Loan Documents or any other document relating
to the Obligations, or against any other Person under any other guarantee of, or security for, any
of the Obligations.

     4. Subrogation/Voting. Each Shareholder Guarantor shall be subrogated to all rights
of the Administrative Agent and the Lenders (whether arising under the Loan Documents, by operation
of law or otherwise) against the Borrower in respect of any amounts paid by such Shareholder
Guarantor pursuant to the provisions of this Agreement; provided, however, (i) that
such Shareholder Guarantor shall have no claim or right, whether in the context of a proceeding
under any Debtor Relief Law or otherwise, of subrogation, indemnity, reimbursement or contribution
against the Borrower, any Guarantor or any other Shareholder Guarantor for amounts paid under this
Agreement until such time as all Obligations have been paid in full and the Commitments have
expired or terminated, (ii) that, in furtherance of the foregoing, any and all such claims or
rights are expressly waived until the payment in full of all Obligations and termination of the
Commitments and (iii) that the foregoing agreement is intended to be enforceable by the
Administrative Agent and the Lenders against the Shareholder Guarantors in any bankruptcy
proceeding of a Loan Party pursuant to Section 510(a) of the Bankruptcy Code of the United States.
Each Shareholder Guarantor hereby agrees that the Administrative Agent and the Lenders shall have
all rights with respect to the administration, compliance, waiver, amendment and enforcement of the
terms of the Loan Documents and the collection of any amounts under the Loan Documents as if the
guaranty set forth in this Agreement did not exist, and the Administrative Agent and the Lenders
shall incur no liability to the Shareholder Guarantors with respect to any action any of them may
take or refrain from taking which the Administrative Agent and the Lenders, in their sole
discretion, deem to be necessary or desirable. Without limiting the generality of the foregoing,
the Administrative Agent and the Lenders shall have absolute and complete control over all aspects
of the Obligations and the Loan Documents, and the Administrative Agent and the Lenders shall be
entitled to use their sole discretion with respect to exercising or refraining from exercising any
right, taking or refraining from taking any action, or making or refraining from making any
decision any of them may be entitled to exercise, take or make under the Loan Documents, including
in connection with any proceeding under any Debtor Relief Law.

3

 

     5. Reinstatement. The obligations of the Shareholder Guarantors under this Agreement
shall be automatically reinstated if and to the extent that for any reason any payment by or on
behalf of any Person in respect of the Obligations is rescinded or must be otherwise restored by
any holder of any of the Obligations, whether as a result of any Debtor Relief Law or otherwise,
and each Shareholder Guarantor agrees that it will indemnify the Administrative Agent and each
other holder of the Obligations on demand for all reasonable costs and expenses (including, without
limitation, the fees, charges and disbursements of counsel) incurred by the Administrative Agent or
such holder of the Obligations in connection with such reinstatement of the obligations of the
Shareholder Guarantors under this Agreement.

     6. Certain Additional Waivers. Each Shareholder Guarantor agrees that such
Shareholder Guarantor shall have no right of recourse to security for the Obligations, except
through the exercise of rights of subrogation pursuant to Section 4 and through the
exercise of rights of contribution pursuant to Section 8. Each Shareholder Guarantor
hereby unconditionally and irrevocably waives any duty on the part of the Administrative Agent or
any Lender to disclose to such Shareholder Guarantor any matter, fact or thing relating to the
business, condition, operations, performance, properties or prospects of any Loan Party or any of
its Subsidiaries now or hereafter known by the Administrative Agent or any Lender.

     7. Remedies. The Shareholder Guarantors agree that, to the fullest extent permitted
by law, as between the Shareholder Guarantors, on the one hand, and the Administrative Agent and
the other holders of the Obligations, on the other hand, the Obligations may be declared to be
forthwith due and payable as provided in Section 9.02 of the Credit Agreement (and shall be
deemed to have become automatically due and payable in the circumstances provided in said
Section 9.02 of the Credit Agreement) for purposes of Section 2 notwithstanding any
stay, injunction or other prohibition preventing such declaration (or preventing the Obligations
from becoming automatically due and payable) as against any other Person and that, in the event of
such declaration (or the Obligations being deemed to have become automatically due and payable),
the Obligations (whether or not due and payable by any other Person) shall forthwith become due and
payable by the Shareholder Guarantors for purposes of Section 2. The Shareholder
Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with
the terms of the Cash Collateral Agreement, and that the holders of the Obligations may exercise
their remedies thereunder in accordance with the terms thereof.

     8. Rights of Contribution. The Shareholder Guarantors agree among themselves that, in
connection with payments made hereunder, each Shareholder Guarantor may have contribution rights
against the other Shareholder Guarantors and Guarantors pursuant to other agreements or as
permitted under applicable law. Such contribution rights shall be subordinate and subject in right
of payment to the obligations of such Shareholder Guarantors and Guarantors under the Loan
Documents and no Shareholder Guarantor shall exercise such rights of contribution until all
Obligations have been paid in full and the Commitments have terminated.

     9. Guarantee of Payment; Continuing Guarantee. The guarantee in this Agreement is a
guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all
Obligations whenever arising.

     10. Representations and Warranties. Each of the Shareholder Guarantors hereby
represents and warrants that on the date hereof and as of the date of each Credit Extension under
the Credit Agreement:

4

 

     (a) Such Shareholder Guarantor has the right, power and authority to execute, deliver
and perform this Agreement and has taken all necessary action to authorize the execution,
delivery and performance of this Agreement.

     (b) This Agreement constitutes the legal, valid and binding obligation of such
Shareholder Guarantor enforceable against it in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally and by the
availability of equitable remedies.

     (c) The execution, delivery and performance of this Agreement will not violate any
provision of any applicable law or contractual obligation of such Shareholder Guarantor, the
violation of which would have or could reasonably be expected to have a material adverse
effect on the financial condition of such Guarantor or the ability of such Guarantor to
perform its obligation under this Agreement.

     (d) Immediately prior to and after giving effect to the transactions contemplated
herein, each Shareholder Guarantor is Solvent.

     11. Further Assurances. The Administrative Agent, the Lenders and the Shareholder
Guarantors each agree to execute and deliver, or to cause to be executed and delivered, all such
instruments as may reasonably be requested to effectuate the intent and purposes, and to carry out
the terms, of this Agreement.

     12. Release. In consideration of the Administrative Agent’s and the Lenders’
willingness to enter into the Forbearance Agreement, the Shareholder Guarantors hereby release the
Administrative Agent, the Lenders and each of their respective officers, employees,
representatives, agents, counsel and directors from any and all actions, causes of action, claims,
demands, damages and liabilities of whatever kind or nature, in law or in equity, now known or
unknown, suspected or unsuspected to the extent that any of the foregoing arises from any action or
failure to act solely in connection with the Loan Documents on or prior to the date hereof.

     13. Put Right. The Shareholder Guarantors hereby agree that the Lenders shall have
the right at any time to “put” an amount of the Obligations under the Term B Loan up to the amount
of funds in the Cash Collateral Account to the Shareholder Guarantors upon five (5) Business Day’s
prior written notice. Any such “put” shall be evidenced by “par” assignment documents consistent
with an assignment in accordance with Section 11.06 of the Credit Agreement, and the purchase price
for such assigned interest shall be payable from the funds held in the Cash Collateral Account at
such time. From and after the effectiveness of such “put”, each Shareholder Guarantor shall be
deemed to be a Lender (with all rights and obligations of a Lender) with respect to the amount of
Obligations assigned.

     14. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

     15. Submission to Jurisdiction; Venue; WAIVER OF JURY TRIAL.

     (a) EACH SHAREHOLDER GUARANTOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND
ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK
SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT
OF NEW YORK, AND ANY APPELLATE COURT FROM

5

 

ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF
THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES
HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY SHAREHOLDER
GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (b) EACH SHAREHOLDER GUARANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (A) OF THIS SECTION. EACH OF
THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN
ANY SUCH COURT.

     (c) EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     16. Miscellaneous.

     (a) This Agreement shall be binding on and shall inure to the benefit of the
Shareholder Guarantors, the Administrative Agent, the Lenders and their respective
successors and permitted assigns; provided that the Shareholder Guarantors may not
assign any of their rights and obligations hereunder without the prior written consent of
the Administrative Agent (and any other attempted assignment or transfer by any Shareholder
Guarantor shall be null and void). The terms and provisions of this Agreement are for the
purpose of defining the relative rights and obligations of the Shareholder Guarantors, the
Administrative Agent and the Lenders with respect to the transactions contemplated hereby
and there shall be no third party beneficiaries of any of the terms and provisions of this
Agreement.

6

 

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

     (c) Wherever possible, each provision of this Agreement shall be interpreted in such a
manner as to be effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     (d) Except as otherwise provided in this Agreement, if any provision contained in this
Agreement is in conflict with, or inconsistent with, any provision in the Loan Documents,
the provision contained in this Agreement shall govern and control.

     (e) This Agreement may be executed in any number of separate counterparts, each of
which shall collectively and separately constitute one agreement. Delivery of an executed
counterpart of this Agreement by telecopy or other electronic imaging means shall be
effective as an original.

     17. Entirety. This Agreement and the other Loan Documents embody the entire agreement
between the parties and supersede all prior agreements and understandings, if any, relating to the
subject matter hereof. This Agreement and the other Loan Documents represent the final agreement
between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties, and this Agreement shall constitute a Loan Document.

[SIGNATURE PAGES FOLLOW]

7

 

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

	 	 	 	 	 
	SHAREHOLDER GUARANTORS: 	MILFAM GUARANTOR, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BR INVESTCO, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	ADMINISTRATIVE AGENT: 	BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Shareholder Guaranty Agreement

 

 

EXHIBIT B

Lender/Guarantor Agreement

(attached)

 

 

LENDER/GUARANTOR AGREEMENT

     This LENDER/GUARANTOR AGREEMENT (this “Agreement”) is entered into as of September 4,
2008 among MILFAM GUARANTOR, LLC, a Delaware limited liability company (“Miller”), BR
INVESTCO, LLC, a Delaware limited liability company (“Riley” and, together with Miller, the
“Shareholder Guarantors”), and BANK OF AMERICA, N.A. (including it successors and assigns,
the “Lenders”).

RECITALS

     A. Affiliates of the Shareholder Guarantors are the owners of certain equity interests of LCC
International, Inc., a Delaware corporation (“LCC”).

     B. The Lenders have made certain extensions of credit available to LCC and certain of its
subsidiaries pursuant to the terms of that certain Amended and Restated Credit Agreement, dated as
of May 29, 2007 (as amended and otherwise modified from time to time, the “Credit
Agreement”), including without limitation additional extensions of credit on the date hereof in
the form of a new term loan tranche under the Credit Agreement (the “Term B Loan”).

     C. As a condition to the Lenders’ agreement to make the Term B Loan to LCC, the Lenders have
required the Shareholder Guarantors to grant (i) a limited guaranty in favor of the Administrative
Agent, for the benefit of the Lenders, pursuant to the terms of that certain Shareholder Guaranty
Agreement, dated as of the date hereof (as amended and otherwise modified from time to time, the
“Shareholder Guaranty”) and (ii) a security interest to the Administrative Agent, for the
benefit of the Lenders, in certain funds on deposit with the Administrative Agent (the
“Deposit”) pursuant to the terms of that certain Cash Collateral Agreement, dated as of the
date hereof (as amended and otherwise modified from time to time, the “Cash Collateral
Agreement”).

     D. The Lenders and the Shareholder Guarantors desire to enter into this Agreement to set forth
their relative rights and obligations with respect to the Shareholder Guaranty, the Cash Collateral
Agreement and the Deposit.

AGREEMENT

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

     1. Defined Terms. Capitalized terms used herein and not defined herein shall have the
meanings assigned to such terms, or incorporated by reference, in the Shareholder Guaranty.

     2. Amendments to Credit Agreement. The Lenders hereby agree that, notwithstanding
Section 4 of the Shareholder Guaranty, the Lenders shall not (i) forgive or release the Loan
Parties’ obligations with respect to repayment of the Term B Loan or the Term B PIK Interest, or
reduce the principal amount of the Term B Loan or the Term B PIK Interest, or reduce the interest
rate on the Term B Loan, or extend the maturity date of the Term B Loan or the Term B PIK Interest
beyond April 30, 2010 or (ii) otherwise amend, modify or waive any provision of the Credit
Agreement in a manner that disproportionately affects the Term B Loan (it being understood and
agreed that any action that applies equally to all Loans under the Credit Agreement shall not be
deemed to disproportionately affect the Term B Loan solely because the amount of the Obligations
outstanding in respect of the Term B Loan and the Term B PIK Interest at such time exceeds the amount of the other Obligations outstanding
under the Loan Documents).

 

 

     3. Turnover of Term B PIK Interest. The Lenders hereby agree that, upon the payment
in full of all Obligations under the Loan Documents and termination of all Commitments thereunder,
any and all amounts received by the Lenders in respect of Term B PIK Interest (whether prior
thereto or thereafter) shall be held in trust and delivered to the Shareholder Guarantors pursuant
to wire instructions to be provided by the Shareholder Guarantors.

     4. Assignment to Shareholder Guarantors. The Lenders shall assign the Term B Loan and
the Term B PIK Interest to the Shareholder Guarantors at such time as all Obligations (other than
the Term B Loan and the Term B PIK Interest) have been paid in full. The consideration for such
assignment shall be equal to the outstanding principal amount of the Term B Loan plus any amount of
unpaid Term B Cash Pay Interest outstanding, and payment of such consideration shall be made by
application of the amount held in the Cash Collateral Account to such consideration. Such
assignment shall be made at the expense of the Shareholder Guarantors and without representation or
warranty of any kind by any of the Lenders as to the Term B Loan and the Term B PIK Interest or
otherwise and without recourse to any of the Lenders, except that each Lender shall represent that
(i) such Lender is the legal and beneficial owner of the portion of the Obligations purported to be
assigned by such Lender, (ii) such Lender holds such Obligations free and clear of any lien,
encumbrance or other adverse claim and (iii) such Lender has full power and authority, and has
taken all action necessary, to execute and deliver such assignment and to consummate the
transactions contemplated hereby.

     5. Right of First Offer. Prior to assigning all or any part of the Obligations under
the Credit Agreement to any party other than (i) an Affiliate of any Lender or (ii) a federal or
state banking institution, the Lenders (or the Administrative Agent at the direction of the
Lenders) will provide the Shareholder Guarantors with notice of the proposed price, and the
Shareholder Guarantors shall have the right to elect to purchase the Obligations (or the part
thereof proposed to be sold) by providing written notice to the Lenders within five (5) Business
Days of receipt of notice by the Shareholder Guarantors of the proposed assignment. If the
Shareholder Guarantors timely elect to purchase the Obligations (or the part thereof proposed to be
sold), such election shall be irrevocable and such purchase must be closed within five (5) Business
Days thereafter. If the Shareholder Guarantors do not timely elect to purchase the Obligations (or
the part thereof proposed to be sold), then the Lenders may assign the Obligations (or the part
thereof proposed to be sold) to any other Eligible Assignee at a price not less than 90% of the
price proposed to the Shareholder Guarantors at any time during the 90-day period following the
delivery of such proposal to the Shareholder Guarantors. Pending consummation of any such
assignment (whether to the Shareholder Guarantors or to a third party), the Lenders shall not be
prohibited in any respect (other than as set forth in Section 2 above) from taking action
in respect of the Obligations, including without limitation exercising rights or remedies upon the
occurrence of an Event of Default. No Lender shall assign the Obligations or any part thereof to
any Affiliate of any Lender or any federal or state banking institution unless such Affiliate or
banking institution agrees to be bound by the terms of this Agreement pursuant to an agreement in
form and substance reasonably satisfactory to the Subsidiary Guarantors.

     6. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

     7. Submission to Jurisdiction; Venue; WAIVER OF JURY TRIAL. The terms of Section 15
of the Shareholder Guaranty with respect to submission to jurisdiction, venue and waiver of jury
trial are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such
terms.

     8. Miscellaneous.

2

 

     (a) This Agreement shall be binding on and shall inure to the benefit of the
Shareholder Guarantors, the Administrative Agent, the Lenders and their respective
successors and permitted assigns; provided that the Shareholder Guarantors may not
assign any of their rights and obligations hereunder without the prior written consent of
the Administrative Agent (and any other attempted assignment or transfer by any Shareholder
Guarantor shall be null and void). The terms and provisions of this Agreement are for the
purpose of defining the relative rights and obligations of the Shareholder Guarantors, the
Administrative Agent and the Lenders with respect to the transactions contemplated hereby
and there shall be no third party beneficiaries of any of the terms and provisions of this
Agreement.

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

     (c) Wherever possible, each provision of this Agreement shall be interpreted in such a
manner as to be effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     (d) Except as otherwise provided in this Agreement, if any provision contained in this
Agreement is in conflict with, or inconsistent with, any provision in the Loan Documents,
the provision contained in this Agreement shall govern and control.

     (e) This Agreement may be executed in any number of separate counterparts, each of
which shall collectively and separately constitute one agreement. Delivery of an executed
counterpart of this Agreement by telecopy or other electronic imaging means shall be
effective as an original.

     9. Entirety. This Agreement and the other Loan Documents embody the entire agreement
between the parties and supersede all prior agreements and understandings, if any, relating to the
subject matter hereof. This Agreement and the other Loan Documents represent the final agreement
between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties, and this Agreement shall constitute a Loan Document.

[SIGNATURE PAGES FOLLOW]

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Lender/Guarantor Agreement to be duly
executed as of the day and year first above written.

	 	 	 	 	 
	SHAREHOLDER GUARANTORS: 	MILFAM GUARANTOR, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BR INVESTCO, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	LENDERS: 	BANK OF AMERICA, N.A.,

as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Lender/Guarantor Agreement

 

 

EXHIBIT C

Cash Collateral Agreement

(attached)

 

 

CASH COLLATERAL AGREEMENT

     This CASH COLLATERAL AGREEMENT (this “Agreement”) is entered into as of September 4,
2008 among MILFAM GUARANTOR, LLC, a Delaware limited liability company (“Miller”), BR
INVESTCO, LLC, a Delaware limited liability company (“Riley” and, together with Miller, the
“Shareholder Guarantors”), and BANK OF AMERICA, N.A., as Administrative Agent (in such
capacity, the “Administrative Agent”) for the benefit of the Lenders (as defined below).

RECITALS

     A. The Shareholder Guarantors and the Administrative Agent have entered into that certain
Shareholder Guaranty Agreement, dated as of the date hereof (as amended and otherwise modified from
time to time, the “Shareholder Guaranty”).

     B. The Shareholder Guarantors have agreed to grant a security interest to the Administrative
Agent in certain funds on deposit with the Administrative Agent to secure the Shareholder
Guarantors’ obligations under the Shareholder Guaranty.

AGREEMENT

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

     1. Defined Terms.

     (a) The following terms which are defined in the Uniform Commercial Code in effect from
time to time in the State of New York except as such terms may be used in connection with
the perfection of the Collateral and then the applicable jurisdiction with respect to such
affected Collateral shall apply (the “UCC”): As-Extracted Collateral, Consumer
Goods, Deposit Account, Farm Products, Financial Asset, General Intangible, Instrument,
Investment Property, Manufactured Home, Proceeds, Securities Entitlement, Securities
Account, Securities Intermediary, Security and Tangible Chattel Paper.

     (b) Capitalized terms used herein and not otherwise defined shall have the meanings
ascribed thereto or incorporated by reference in the Shareholder Guaranty.

     2. Cash Collateral Account. The Shareholder Guarantors and the Administrative Agent
hereby agree that, on the date hereof, cash in the amount of $9,000,000 shall be deposited into the
following account (together with any successor and replacement accounts, regardless of the numbers
of such accounts or the offices at which such accounts are maintained, the “Cash Collateral
Account”):

	 	 	 	 	 
	Bank:

	 	Bank of America, N.A.

	Account Number:

	 	1499825594
	Account Name:

	 	BR Investco, LLC for the benefit of Bank of America

The Shareholder Guarantors hereby pledge, assign, transfer and grant to the Administrative Agent a
first priority lien on, and security interest in, all of the Shareholder Guarantors’ right, title
and interest in and to the following (collectively, the “Collateral”): (a) the Cash
Collateral Account and (b) all Investment Property, Security Entitlements, Financial Assets,
Securities, Deposit Accounts, Instruments, General Intangibles, money, certificates of deposit,
time deposit accounts and all other investments or property of any sort now or hereafter held,
maintained or administered in, or credited to, the Cash Collateral Account;

 

 

and (c) all Proceeds of any and all of the foregoing, including, without limitation, dividends and
distributions thereon whether cash or noncash. The Collateral shall include any additional amounts
deposited in the Cash Collateral Account for the purposes of curing any Event of Default or
Forbearance Termination Event, as contemplated by Section 9 of that certain Forbearance Agreement,
dated as of the date hereof, by and among the Administrative Agent, LCC International, Inc., the
Guarantors identified therein and the Lenders identified therein (the “Additional
Deposits”). Such security interest is given by the Shareholder Guarantors as collateral
security for any payments, indebtedness and other obligations of the Shareholder Guarantors under
the Shareholder Guaranty.

The Shareholder Guarantors agree that all rights, assets and property at any time held in or
credited to any Securities Account constituting Collateral shall be treated as Financial Assets.

     3. Representations and Warranties. Each of the Shareholder Guarantors hereby
represents and warrants that on the date hereof and as of the date of each Credit Extension under
the Credit Agreement:

     (a) Such Shareholder Guarantor has the right, power and authority to execute, deliver
and perform this Agreement and has taken all necessary action to authorize the execution,
delivery and performance of this Agreement.

     (b) This Agreement constitutes the legal, valid and binding obligation of such
Shareholder Guarantor enforceable against it in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally and by the
availability of equitable remedies.

     (c) This Agreement creates a valid security interest in favor of the Administrative
Agent in the Collateral and, when perfected by properly filing financing statements under
the UCC, shall constitute a valid and perfected, first priority security interest in the
Collateral, to the extent such security interest can be perfected by filing financing
statements under the UCC. With respect to any Collateral consisting of a Deposit Account,
Securities Entitlement or held in a Securities Account, upon execution and delivery by the
applicable Shareholder Guarantor, the applicable Securities Intermediary or bank, and the
Administrative Agent of an agreement granting control to the Administrative Agent over such
Collateral, the Administrative Agent shall have a valid and perfected, first priority
security interest in such Collateral.

     (d) The execution, delivery and performance of this Agreement will not violate any
provision of any applicable law or contractual obligation of such Shareholder Guarantor, the
violation of which would have or could reasonably be expected to have a material adverse
effect on the financial condition of such Guarantor or the ability of such Guarantor to
perform its obligations under this Agreement or the Shareholder Guaranty.

     (e) There are no restrictions in any document related to the Collateral which would
limit or restrict (i) the grant of a security interest pursuant to this Agreement, (ii) the
perfection of such security interest or (iii) the exercise of remedies in respect of such
perfected security interest as contemplated by this Agreement. Except for (i) the filing or
recording of UCC financing statements, (ii) obtaining control to perfect the security
interests created by this Agreement, (iii) such actions as may be required by laws affecting
the offering and sale of securities and (iv) consents, authorizations, filings or other
actions which have been obtained or made, no consent or authorization of, filing with, or
other act by or in respect of, any arbitrator or governmental authority and no consent of
any other person or entity, is required for (A) the grant by such Shareholder Guarantor of
the security interest

2

 

in the Collateral granted hereby or for the execution, delivery or performance of this
Agreement by such Shareholder Guarantor or (B) the perfection of such security interest (to
the extent such security interest can be perfected by filing under the UCC or the granting
of control) or (C) the exercise by the Administrative Agent of the rights and remedies
provided for in this Agreement.

     (f) The Shareholder Guarantors are the legal and beneficial owners of the Cash
Collateral Account and the Collateral in existence on the date hereof, free and clear of any
adverse claims (other than those created by this Agreement and normal and customary rights
of setoff upon deposits of cash in favor of the Administrative Agent).

     (g) None of the Collateral is the Proceeds of As-Extracted Collateral, Consumer Goods,
Farm Products, Manufactured Homes or standing timber.

     4. Covenants. Each of the Shareholder Guarantors hereby agrees that, until the
Obligations shall have been paid in full and the Commitments shall have been terminated, it:

     (a) shall not transfer or assign any of the Collateral or any of its rights therein
(other than as provided in this Agreement); and

     (b) shall not create or permit to exist any lien or adverse claim on the Collateral
(other than those created by this Agreement and normal and customary rights of setoff upon
deposits of cash in favor of the Administrative Agent).

     5. Events of Default. Any of the following shall constitute an “Event of
Default” hereunder:

     (a) a failure by the Shareholder Guarantors to make any payment to the Administrative
Agent as and when due under the Shareholder Guaranty;

     (b) any representation or warranty made or deemed made by any Shareholder Guarantor
herein or in the Shareholder Guaranty shall fail to be true and correct when made or deemed
made;

     (c) a breach by the Shareholder Guarantors of their obligations to accept the
assignment of Obligations under the Term B Loan pursuant to Section 13 of the Shareholder
Guaranty;

     (d) a breach in any material respect by a Shareholder Guarantor of any other covenant
or obligation hereunder which is not remedied within five (5) Business Days after receipt of
written notice thereof; and

     (e) any Shareholder Guarantor institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors;
or applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or any material
part of its property; or any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer is appointed without the application or consent of such
Shareholder Guarantor and the appointment continues undischarged or unstayed for sixty
calendar days; or any proceeding under any Debtor Relief Law relating to any such
Shareholder Guarantor or to all or any material part of its property is instituted without
the consent of such Shareholder Guarantor and continues undismissed or unstayed for sixty
calendar days, or an order for relief is entered in any such proceeding.

3

 

     6. Remedies.

     (a) At any time after the occurrence, and during the continuance, of an Event of
Default hereunder or an Event of Default under and as defined in the Credit Agreement, in
addition to the rights and remedies available under the Loan Documents and the Shareholder
Guaranty, the Administrative Agent shall have (i) the right to withdraw, or set off against
the outstanding obligations under the Shareholder Guaranty, all amounts in the Cash
Collateral Account, to the extent necessary to reimburse the Administrative Agent and cure
such Event of Default, and (ii) all the rights and remedies contained in this Agreement or
permitted by law, including any rights and remedies available under the UCC.

     (b) If the Administrative Agent at any time hereafter employs counsel to prepare or
consider amendments, waivers or consents, or to intervene, file a petition, answer, motion
or other pleading in any suit or proceeding, related to this Agreement, or relating to any
Collateral, or to protect, take possession of, or liquidate any Collateral or to attempt to
enforce any security interest or lien in any Collateral, or to enforce or exercise any
rights hereunder, then in any of such events, all of the reasonable out-of-pocket attorneys’
fees arising from such services, and any expenses, costs and charges relating thereto, shall
become a part of the obligations secured by the Collateral and payable on demand.

     (c) The Administrative Agent’s failure at any time or times hereafter to require strict
performance by the Shareholder Guarantor of any of the provisions, warranties, terms and
conditions contained in this Agreement shall not waive, affect or diminish any right of the
Administrative Agent at any time or times hereafter to demand strict performance therewith
and with respect to any other provisions, warranties, terms and conditions contained in this
Agreement.

     7. Control by the Administrative Agent. Prior to a release pursuant to Section
8 hereof, the Shareholder Guarantors shall not have access at any time to the funds or other
cash collateral maintained in the Cash Collateral Account (and therefore shall have no ability to
make withdrawals, direct transfers, direct trades, close or take any other action with respect to
the Cash Collateral Account) and the Administrative Agent shall have sole and exclusive dominion,
control and authority over the Cash Collateral Account and the funds and other amounts therein.
The rights and interests granted hereunder, and the fact that the Administrative Agent is acting as
a depository bank for the Cash Collateral Account, are specifically intended to convey “control” to
the Administrative Agent over the Collateral within the meaning of the UCC to the extent such
Collateral, or any portion thereof, is now or hereafter deemed a Deposit Account. The rights and
interests granted hereunder, and the fact that the Administrative Agent is acting as a securities
intermediary for the Cash Collateral Account, are specifically intended to convey “control” to the
Administrative Agent over the Collateral within the meaning of the UCC to the extent such
Collateral, or any portion thereof, is now or hereafter deemed a Securities Account.

     8. Termination and Release. Upon the repayment in full of all Obligations and
termination of all Commitments, the security interests granted under this Agreement shall
terminate. Notwithstanding the foregoing, the Administrative Agent hereby agrees that any amounts
in the Cash Collateral Account in excess of the sum of $9,000,000 plus any Additional
Deposits added to the Collateral pursuant to Section 2 hereof plus the greater of
$50,000 and the amount of Cash Pay Interest accrued in respect of the Term B Loan at such time
(whether or not then payable) (such excess, the “Excess Cash”) shall, provided that no
Event of Default then exists, promptly at the end of each fiscal quarter of the Borrower, be
released from the Cash Collateral Account and delivered to the Shareholder Guarantors pursuant to
wire instructions to be provided by the Shareholder Guarantors.

4

 

     9. Investment Parameters for Cash Collateral. All amounts held in the Cash Collateral
Account shall be held in an interest bearing account or in such other investments designated by the
Shareholder Guarantors and approved by the Administrative Agent in its sole discretion. Any
interest, dividends or proceeds earned on such amounts will be retained in the Cash Collateral
Account as additional security pledged to the Administrative Agent pursuant to Section 2 or
applied to the obligations under the Loan Documents in accordance with Section 6 or
released to the Shareholder Guarantors in accordance with Section 8.

     10. Authorization to File Financing Statements. The Shareholder Guarantors hereby
authorize the Administrative Agent to prepare and file such financing statements (including
continuation statements) or amendments thereof or supplements thereto or other instruments as the
Administrative Agent may from time to time deem reasonably necessary or appropriate in order to
perfect and maintain the security interests granted hereunder in accordance with the UCC.

     11. Further Assurances. The Administrative Agent, the Lenders and the Shareholder
Guarantors each agree to execute and deliver, or to cause to be executed and delivered, all such
instruments as may reasonably be requested to effectuate the intent and purposes, and to carry out
the terms, of this Agreement.

     12. Release. In consideration of the Administrative Agent’s and the Lenders’
willingness to make certain extensions of credit to the Borrower (it being understood that the
Shareholder Guarantors are affiliates of the owners of certain Equity Interests of the Borrower and
therefore shall derive direct economic benefit from such extensions of credit) under the Loan
Documents, the Shareholder Guarantors hereby release the Administrative Agent, the Lenders and each
of their respective officers, employees, representatives, agents, counsel and directors from any
and all actions, causes of action, claims, demands, damages and liabilities of whatever kind or
nature, in law or in equity, now known or unknown, suspected or unsuspected to the extent that any
of the foregoing arises from any action or failure to act solely in connection with the Loan
Documents on or prior to the date hereof.

     13. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

     14. Submission to Jurisdiction; Venue; WAIVER OF JURY TRIAL. The terms of Section
15 of the Shareholder Guaranty with respect to submission to jurisdiction, venue and waiver of
jury trial are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to
such terms.

     15. Miscellaneous.

     (a) This Agreement shall be binding on and shall inure to the benefit of the
Shareholder Guarantors, the Administrative Agent, the Lenders and their respective
successors and permitted assigns; provided that the Shareholder Guarantors may not
assign any of their rights and obligations hereunder without the prior written consent of
the Administrative Agent (and any other attempted assignment or transfer by any Shareholder
Guarantor shall be null and void). The terms and provisions of this Agreement are for the
purpose of defining the relative rights and obligations of the Shareholder Guarantors, the
Administrative Agent and the Lenders with respect to the transactions contemplated hereby
and there shall be no third party beneficiaries of any of the terms and provisions of this
Agreement.

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

5

 

     (c) Wherever possible, each provision of this Agreement shall be interpreted in such a
manner as to be effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     (d) Except as otherwise provided in this Agreement, if any provision contained in this
Agreement is in conflict with, or inconsistent with, any provision in the Loan Documents,
the provision contained in this Agreement shall govern and control.

     (e) This Agreement may be executed in any number of separate counterparts, each of
which shall collectively and separately constitute one agreement. Delivery of an executed
counterpart of this Agreement by telecopy or other electronic imaging means shall be
effective as an original.

     16. Entirety. This Agreement and the other Loan Documents embody the entire agreement
between the parties and supersede all prior agreements and understandings, if any, relating to the
subject matter hereof. This Agreement and the other Loan Documents represent the final agreement
between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties, and this Agreement shall constitute a Loan Document.

[SIGNATURE PAGES FOLLOW]

6

 

     IN WITNESS WHEREOF, the parties hereto have caused this Cash Collateral Agreement to be duly
executed as of the day and year first above written.

	 	 	 	 	 
	SHAREHOLDER GUARANTORS: 	MILFAM GUARANTOR, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BR INVESTCO, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	ADMINISTRATIVE AGENT: 	BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Cash Collateral Agreement

 

 

EXHIBIT D

Term Loan B Note

(attached)

 

 

Exhibit 2.09(c)

FORM OF TERM B LOAN NOTE

September 4, 2008

     FOR VALUE RECEIVED, LCC INTERNATIONAL, INC., a Delaware corporation (the “Borrower”),
hereby promises to pay to BANK OF AMERICA, N.A. or registered assigns (the “Lender”), in
accordance with the provisions of the Credit Agreement (as hereinafter defined), the principal
amount of each Term B Loan from time to time made by the Lender to the Borrower under that certain
Amended and Restated Credit Agreement (as amended, modified, supplemented, increased and extended
from time to time, the “Credit Agreement”) dated as of May 29, 2007 among the Borrower, the
Guarantors identified therein, the Lender, the other lenders identified therein and Bank of
America, N.A., as Administrative Agent. Capitalized terms used herein but not otherwise defined
herein shall have the meanings provided in the Credit Agreement.

     The Borrower promises to pay interest on the unpaid principal amount of each Term B Loan from
the date of such Term B Loan until such principal amount is paid in full, at such interest rates
and at such times as provided in the Credit Agreement. All payments of principal and interest
shall be made to the Administrative Agent for the account of the Lender in Dollars in immediately
available funds at the Administrative Agent’s Office. If any amount is not paid in full when due
hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date
thereof until the date of actual payment (and before as well as after judgment) computed at the per
annum rate set forth in the Credit Agreement.

     This Term B Loan Note is one of the Term B Loan Notes referred to in the Credit Agreement, is
entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and
conditions provided therein. Upon the occurrence and continuation of one or more of the Events of
Default specified in the Credit Agreement, all amounts then remaining unpaid on this Term B Loan
Note shall become, or may be declared to be, immediately due and payable all as provided in the
Credit Agreement. The Lender may also attach schedules to this Term B Loan Note and endorse
thereon the date, amount and maturity of its Term B Loans and payments with respect thereto.

     The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of this Term B Loan
Note.

     THIS TERM B LOAN NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF, the Borrower has caused this Term B Loan Note to be duly executed by its
duly authorized officer as of the day and year first above written.

	 	 	 	 	 
	 	LCC INTERNATIONAL, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

SCHEDULE A

Foreign Loan Parties

LCC Wireless Communications Espana, SA

LCC Italia SRL

LCC Networth Services, BV

Wireless Facilities International, LTD

LCC Deployment Services UK, Ltd.

LCC UK, LTD

 

 

SCHEDULE B

Exceptions to Representations and Warranties

Section 6.01 with respect to the Borrower’s failure to maintain its good standing under the Laws of
the states of Delaware and Virginia.

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