Document:

Exhibit 10.1

Exhibit 10.1

SECOND

AMENDED AND RESTATED

CREDIT AGREEMENT

- Among -

ASTRONICS CORPORATION

as Borrower

- And -

The Lenders Party Hereto

and

HSBC BANK USA, NATIONAL ASSOCIATION

as Agent, Swingline Lender, and Issuing Bank

and

HSBC BANK USA, NATIONAL ASSOCIATION

BANK OF AMERICA MERRILL LYNCH

as Lead Arrangers

and

MANUFACTURERS AND TRADERS TRUST COMPANY

as Documentation Agent

DATED: As of August 31, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I. DEFINITIONS
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Accounting Terms
	 	 	24	 
	1.3 Times of Day
	 	 	25	 
	1.4 Letters of Credit Amounts
	 	 	25	 
	 
	 	 	 	 
	ARTICLE II. THE CREDITS
	 	 	25	 
	2.1 The Revolving Credit and Term Loans
	 	 	25	 
	2.2 The Notes
	 	 	26	 
	2.3 Swingline Loans
	 	 	27	 
	2.4 Letters of Credit
	 	 	28	 
	2.5 Funding of Borrowings
	 	 	36	 
	2.6 Interest
	 	 	37	 
	2.7 Prepayments and Payments
	 	 	39	 
	2.8 Use of Proceeds
	 	 	40	 
	2.9 Alternate Rate of Interest
	 	 	40	 
	2.10 Increased Costs
	 	 	41	 
	2.11 Taxes
	 	 	42	 
	2.12 Commitment Fee
	 	 	42	 
	2.13 Revolving Credit Commitment Termination and Reduction
	 	 	42	 
	2.14 Payments
	 	 	43	 
	2.15 Defaulting Lenders
	 	 	44	 
	2.16 Upfront Fee
	 	 	45	 
	2.17 Agent Fees
	 	 	45	 
	2.18 Charge to Account
	 	 	45	 
	2.19 Substitution of Lender
	 	 	46	 
	2.20 Lender Statements; Survival of Indemnity
	 	 	46	 
	2.21 Expansion Option
	 	 	47	 
	 
	 	 	 	 
	ARTICLE III. CONDITIONS TO THE CREDIT
	 	 	48	 
	3.1 No Default
	 	 	48	 
	3.2 Representations and Warranties
	 	 	49	 
	3.3 Proceedings
	 	 	49	 
	3.4 Closing Conditions
	 	 	49	 
	3.5 Conditions to Subsequent Borrowing and Issuance
	 	 	51	 
	3.6 Subsequent Extensions of Credit
	 	 	52	 
	 
	 	 	 	 
	ARTICLE IV. REPRESENTATIONS AND WARRANTIES
	 	 	52	 
	4.1 Good Standing and Authority
	 	 	52	 
	4.2 Valid and Binding Obligation
	 	 	52	 
	4.3 Good Title
	 	 	52	 
	4.4 No Pending Litigation
	 	 	53	 
	4.5 No Consent or Filing
	 	 	53	 
	4.6 No Violations
	 	 	53	 
	4.7 Financial Statements
	 	 	53	 

 

- i -

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	4.8 Tax Returns
	 	 	54	 
	4.9 Federal Regulations
	 	 	54	 
	4.10 Compliance with ERISA
	 	 	54	 
	4.11 Subsidiaries; Affiliates
	 	 	55	 
	4.12 Compliance
	 	 	55	 
	4.13 Fiscal Year
	 	 	55	 
	4.14 Default
	 	 	55	 
	4.15 Indebtedness for Borrowed Money
	 	 	55	 
	4.16 Securities
	 	 	55	 
	4.17 Environmental Matters
	 	 	56	 
	4.18 Burdensome Contracts; Labor Relations
	 	 	56	 
	4.19 Liens
	 	 	57	 
	4.20 Intellectual Property
	 	 	57	 
	4.21 Anti-Terrorism Laws/ Foreign Assets Control Regulations
	 	 	57	 
	4.22 Accuracy of Information, etc
	 	 	58	 
	4.23 Solvency
	 	 	59	 
	 
	 	 	 	 
	ARTICLE V. AFFIRMATIVE COVENANTS
	 	 	59	 
	5.1 Payments
	 	 	59	 
	5.2 Financial Reporting Requirements
	 	 	59	 
	5.3 Notices
	 	 	60	 
	5.4 Taxes
	 	 	60	 
	5.5 Insurance
	 	 	60	 
	5.6 Litigation
	 	 	61	 
	5.7 Judgments
	 	 	61	 
	5.8 Corporate Standing
	 	 	61	 
	5.9 Books and Records
	 	 	61	 
	5.10 Compliance with Law
	 	 	61	 
	5.11 Pension Reports
	 	 	61	 
	5.12 Inspections
	 	 	62	 
	5.13 Environmental Compliance
	 	 	62	 
	5.14 Certain Subsidiaries to Become Guarantors
	 	 	62	 
	5.15 Additional Security; Further Assurances
	 	 	63	 
	5.16 Accounting; Reserves; Tax Returns
	 	 	63	 
	5.17 Liens and Encumbrances
	 	 	63	 
	5.18 Defaults and Material Adverse Effects
	 	 	64	 
	5.19 Good Repair
	 	 	64	 
	5.20 Further Actions
	 	 	64	 
	 
	 	 	 	 
	ARTICLE VI. NEGATIVE COVENANTS
	 	 	64	 
	6.1 Indebtedness
	 	 	64	 
	6.2 Encumbrances
	 	 	65	 
	6.3 Investments and Guaranty Obligation
	 	 	66	 
	6.4 Equity Interest Repurchases
	 	 	66	 
	6.5 Limitation on Certain Restrictive Agreements
	 	 	67	 
	6.6 Material Indebtedness Agreements
	 	 	67	 
	6.7 Consolidation, Merger, Acquisitions, Asset Sales, etc
	 	 	68	 
	6.8 Transactions with Affiliates
	 	 	69	 

 

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	 	 	Page	 
	 
	 	 	 	 
	6.9 Disposal of Hazardous Substances
	 	 	70	 
	6.10 Fiscal Year, Fiscal Quarters
	 	 	70	 
	6.11 Anti-Terrorism Laws
	 	 	70	 
	6.12 Changes in Business
	 	 	70	 
	6.13 Minimum Fixed Charge Coverage Ratio
	 	 	70	 
	6.14 Maximum Capital Expenditures
	 	 	70	 
	6.15 Maximum Leverage Ratio
	 	 	70	 
	 
	 	 	 	 
	ARTICLE VII. DEFAULT
	 	 	71	 
	7.1 Events of Default
	 	 	71	 
	7.2 Effects of an Event of Default
	 	 	74	 
	7.3 Remedies
	 	 	74	 
	7.4 Application of Certain Payments and Proceeds
	 	 	74	 
	 
	 	 	 	 
	ARTICLE VIII. INDEMNIFICATION — COSTS AND EXPENSES
	 	 	75	 
	8.1 Indemnification
	 	 	75	 
	8.2 Expenses
	 	 	76	 
	 
	 	 	 	 
	ARTICLE IX. THE AGENT AND ISSUING BANK
	 	 	76	 
	9.1 Appointment and Authorization
	 	 	76	 
	9.2 Waiver of Liability of Agent
	 	 	77	 
	9.3 Note Holders
	 	 	78	 
	9.4 Consultation with Counsel
	 	 	78	 
	9.5 Documents
	 	 	78	 
	9.6 Agent and Affiliates
	 	 	79	 
	9.7 Knowledge of Default
	 	 	79	 
	9.8 Enforcement
	 	 	79	 
	9.9 Action by Agent
	 	 	79	 
	9.10 Notices, Defaults, etc
	 	 	80	 
	9.11 Indemnification of Agent
	 	 	80	 
	9.12 Successor Agent
	 	 	80	 
	9.13 Lenders’ Independent Investigation
	 	 	81	 
	9.14 Amendments, Consents
	 	 	81	 
	9.15 Funding by Agent
	 	 	83	 
	9.16 Sharing of Payments
	 	 	83	 
	9.17 Payment to Lenders
	 	 	83	 
	9.18 Tax Withholding Clause
	 	 	84	 
	9.19 USA Patriot Act
	 	 	86	 
	9.20 Issuing Bank
	 	 	86	 
	9.21 Benefit of Article IX
	 	 	86	 

 

- iii -

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS
	 	 	87	 
	10.1 Amendment and Restatement; Future Amendments
	 	 	87	 
	10.2 Delays and Omissions
	 	 	87	 
	10.3 Assignments/Participation
	 	 	87	 
	10.4 Successors and Assigns
	 	 	89	 
	10.5 Notices
	 	 	89	 
	10.6 Governing Law
	 	 	90	 
	10.7 Counterparts
	 	 	90	 
	10.8 Titles
	 	 	90	 
	10.9 Inconsistent Provisions
	 	 	91	 
	10.10 Course of Dealing
	 	 	91	 
	10.11 USA Patriot Act Notification
	 	 	91	 
	10.12 Right of Set-Off
	 	 	91	 
	10.13 No Advisory Or Fiduciary Responsibility
	 	 	92	 
	10.14 JURY TRIAL WAIVER
	 	 	92	 
	10.15 CONSENT TO JURISDICTION
	 	 	93	 
	10.16 AMENDMENT AND RESTATEMENT
	 	 	93	 

	 	 	 	 	 
	Exhibit A
	 	—
	 	Replacement Revolving Note

	Exhibit B
	 	—
	 	Replacement Swingline Note

	Exhibit C
	 	—
	 	Replacement Term Note

	Exhibit D
	 	—
	 	Compliance Certificate

	Exhibit E
	 	—
	 	Request Certificate

	Exhibit F
	 	—
	 	Assignment and Assumption

	 	 	 	 	 

	Schedule 1
	 	—
	 	Employee Benefits Plan

	Schedule 2.1
	 	—
	 	Lenders’ Commitments

	Schedule 4.11
	 	—
	 	Subsidiaries; Affiliates

	Schedule 6.2
	 	—
	 	Liens and Indebtedness

	Schedule 6.3
	 	—
	 	Investments and Guaranty Obligations

 

- iv -

 

This SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 31, 2011 between
ASTRONICS CORPORATION, a New York corporation with its principal place of business at 130 Commerce
Way, East Aurora, New York 14052 (“Borrower”) and the several banks and other financial
institutions from time to time party to this Agreement (individually, a “Lender” and collectively,
the “Lenders”) and HSBC BANK USA, NATIONAL ASSOCIATION, a national banking association organized
under the laws of the United States of America with an office at Commercial Banking Department, One
HSBC Center, Buffalo, New York 14203 as Agent for the Lenders, Swingline Lender and Issuing Bank.

ARTICLE I.  Definitions

1.1 Definitions. As used in this Credit Agreement, unless otherwise specified, the
following terms shall have the following respective meanings:

“30-Day LIBOR Rate” — The reserve adjusted rate of interest per annum determined by the Agent
to be applicable to a 30-day interest period appearing on Reuters Screen LIBOR01 Page or such other
substitute page that displays such rate or another alternate source selected by the Agent to
determine such rate in an amount approximately equal to the amount of the applicable ABR Loan.

“ABR” or “Alternate Base Rate” — For any day, a rate per annum (rounded upwards, if necessary,
to the next 1/16 of 1%) equal to the greater of (i) the Prime Rate, (ii) the Federal Funds
Effective Rate from time to time in effect plus 0.5%, or (iii) the 30-Day Libor Rate on such day
(or if such day is not a Business Day, the immediately preceding Business Day) plus 1%. Any change
in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or
the Libor Rate shall be effective from and including the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Libor Rate, respectively.

“ABR Loan” — Any Loan for which interest is calculated based on the Alternate Base Rate plus
the Applicable Margin determined from time to time.

“ABR Option” — The Rate Option in which interest is based upon the Alternate Base Rate plus
the Applicable Margin for the applicable Loan.

“Affiliate” or “Affiliates” — Individually or collectively, any Person that directly or
indirectly, through one or more intermediaries, Controls, or is Controlled by, or is under Common
Control with the Person specified. Notwithstanding the foregoing, no individual shall be
considered an Affiliate of a Person solely by reason of such individual’s position as an officer or
director of such Person or of an Affiliate of such Person, and neither the Agents nor any Lender
shall be considered an Affiliate of Borrower or any of Borrower’s Subsidiaries.

“Agent” — HSBC Bank USA, National Association and any successor thereto appointed pursuant to
the terms of this Agreement.

 

 

 

“Agreement” — This Credit Agreement, as the same may from time to time be amended, restated,
supplemented or otherwise modified.

“Anti-Money Laundering Laws” — As defined in Section 4.21(d) of this Agreement.

“Anti-Terrorism Laws” — Any laws relating to terrorism or money laundering, including
Executive Order No. 13224, the USA Patriot Act, the laws comprising or implementing the Bank
Secrecy Act, and the laws administered by the United States Treasury Department’s Office of Foreign
Asset Control (as any of the forgoing laws may from time to time be amended, renewed, extended or
replaced).

“Applicable Commitment Fee Rate” — (i) Initially, until changed in accordance with the
following provisions, the Applicable Commitment Fee Rate shall be 0.25%; and (ii) commencing with
the fiscal quarter of Borrower ended on September 30, 2011, and continuing with each fiscal quarter
thereafter, the Agent shall determine the Applicable Commitment Fee Rate in accordance with the
following matrix, based on the Leverage Ratio:

	 	 	 	 	 	 	 
	 	 	Leverage	 	 
	Level	 	Ratio	 	Commitment Fee	 
	 
	 	 	 	 	 	 
	1

	 	< 1.0 to 1.0
	 	 	0.25	%
	 
	 	 	 	 	 	 
	2

	 	> 1.00 to 1.0 but < 1.75 to 1.0
	 	 	0.30	%
	 
	 	 	 	 	 	 
	3

	 	> 1.75 to 1.0 but < 2.50 to 1.0
	 	 	0.30	%
	 
	 	 	 	 	 	 
	4

	 	> 2.50 to 1.0
	 	 	0.35	%

Changes in the Applicable Commitment Fee Rate shall become effective three (3) Business Days
immediately following the date of delivery by Borrower to the Agent of a financial statement and a
Compliance Certificate required to be delivered pursuant to Sections 5.2(a) and (b) of this
Agreement, and shall be based upon the Leverage Ratio in effect at the end of the financial period
covered by such financial statement and Compliance Certificate. Notwithstanding the foregoing
provisions, during any period when the Borrower has failed to deliver such a financial statement
and Compliance Certificate when due, the Applicable Commitment Fee Rate shall be applied at Level 4
above as of the first Business Day after the date on which such financial statement and Compliance
Certificate were required to be delivered, regardless of the Leverage Ratio at such time, until the
date the required financial statement and Compliance Certificate have been delivered. Any changes
in the Applicable Commitment Fee Rate shall be determined by the Agent in accordance with the
provisions set forth in this definition and the Agent will promptly provide notice of such
determinations to the Borrower and the Lenders. Any such determination by the Agent shall be
conclusive absent manifest error.

“Applicable Lending Office” — With respect to each Lender, such Lender’s Domestic Lending
Office in the case of an ABR Loan and such Lender’s Libor Lending Office in the case of a Libor
Loan.

 

- 2 -

 

“Applicable Margin” — (i) Initially, until changed in accordance with the following
provisions, the Applicable Margin shall be 0.50% for ABR Loans and 1.50% for Libor Loans; (ii)
commencing with the fiscal quarter of Borrower ended on September 30, 2011, and continuing with
each fiscal quarter thereafter, the Agent shall determine the Applicable Margin in accordance with
the following matrix, based on the Leverage Ratio:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Leverage	 	 	 	 	 	 
	Level	 	Ratio	 	Libor Rate Option	 	 	ABR Option	 
	 	 	 
	 	 	 	 	 	 	 	 
	1	 	< 1.0 to 1.0
	 	 	1.50	%	 	 	0.50	%
	 	 	 
	 	 	 	 	 	 	 	 
	2	 	> 1.00
to 1.0 but < 1.75 to 1.0
	 	 	1.75	%	 	 	0.75	%
	 	 	 
	 	 	 	 	 	 	 	 
	3	 	> 1.75
to 1.0 but < 2.50 to 1.0
	 	 	2.00	%	 	 	1.00	%
	 	 	 
	 	 	 	 	 	 	 	 
	4	 	> 2.5 to 1.0
	 	 	2.50	%	 	 	1.50	%

Changes in the Applicable Margin shall become effective three (3) Business Days immediately
following the date of delivery by Borrower to the Agent of a financial statement and a Compliance
Certificate required to be delivered pursuant to Sections 5.2(a) and (b) of this Agreement, and
shall be based upon the Leverage Ratio in effect at the end of the financial period covered by such
financial statement and Compliance Certificate. Notwithstanding the foregoing provisions, during
any period when the Borrower has failed to deliver such financial statement and Compliance
Certificate when due, the Applicable Margin shall be applied at Level 4 above as of the first
Business Day after the date on which such financial statement and Compliance Certificate were
required to be delivered, regardless of the Leverage Ratio at such time, until the date the
required financial statement and Compliance Certificate have been delivered. Any changes in the
Applicable Margin shall be determined by the Agent in accordance with the provisions set forth in
this definition and the Agent will promptly provide notice of such determinations to the Borrower
and the Lenders. Any such determination by the Agent shall be conclusive absent manifest error.

“Applicable Percentage” — With respect to any Lender, at any time, the percentage of the Total
Commitment represented by such Lender’s Commitment; provided, that in the case of Section 2.15 when
a Defaulting Lender shall exist, “Applicable Percentage” shall mean the percentage of the Total
Commitments (disregarding any Defaulting Lender’s Commitment) represented by such Lender’s
Commitment. Each Lender’s initial Applicable Percentage based on the total Commitment as of the
Closing Date is set forth on Schedule 2.1 to this Agreement. If the Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Total Commitment most
recently in effect, giving effect to any assignments, and to any Lender’s status as a Defaulting
Lender at the time of determination.

 

- 3 -

 

“Asset Sale” — The sale, lease, transfer or other disposition (including by means of sale and
lease-back transactions, and by means of mergers, consolidations, amalgamations and liquidations of
a corporation, partnership or limited liability company of the interests therein of Borrower or any
Subsidiary) by Borrower or any Subsidiary to any Person of Borrower’s or such Subsidiary’s
respective assets, including, without limitation, the sale of any Equity Interests in any
Subsidiary, provided that the term Asset Sale specifically excludes (i) any sales, transfers or
other dispositions of inventory, or obsolete, worn-out or excess furniture, fixtures, equipment or
other property, real or personal, tangible or intangible, in each case in the ordinary course of
business; (ii) any actual or constructive total loss of property or the use thereof, resulting from
destruction, damage beyond repair or other rendition of such property as permanently unfit for
normal use from any casualty or similar occurrence whatsoever; (iii) the destruction or damage of a
portion of such property from any casualty or similar occurrence whatsoever under circumstances in
which such damage cannot reasonably be expected to be repaired, or such property cannot reasonably
be expected to be restored to its condition immediately prior to such destruction or damage, within
ninety (90) days after the occurrence of such destruction or damage or such longer reasonable time
period as determined under the Borrower’s plan of restoration or replacement for such property
established within a 90 day period after such occurrence provided such plan is acceptable to the
Agent in its reasonable judgment; (iv) the condemnation, confiscation or seizure of, or requisition
of title to or use of any property; or (v) in the case of any unmovable property located upon a
leasehold, the termination or expiration of such leasehold.

“Assignment and Assumption” — An assignment and assumption agreement entered into by a Lender
and an assignee and accepted by the Agent, substantially in the form of Exhibit F hereto with all
blanks appropriately completed.

“Astronics Advanced” — Astronics Advanced Electronic Systems Corp., a Washington corporation,
and a Domestic Subsidiary of the Borrower.

“Authorized Officer” — With respect to Borrower or any Guarantor, any of the following
officers: the Chairman, the President, any Vice President, the Chief Executive Officer, the Chief
Financial Officer or the Treasurer, or such other Person as is authorized in writing to act on
behalf of Borrower and is acceptable to the Agent. Unless otherwise qualified, all references
herein to an Authorized Officer shall refer to an Authorized Officer of the Borrower.

“Available Amount” — With respect to any Letter of Credit issued in Dollars, the stated or
face amount of such Letter of Credit to the extent available at the time for drawing (subject to
presentment of all requisite documents) as the same may be increased or decreased from time to time
in accordance with the terms of such Letter of Credit.

“Availability Period” — The period from the Closing Date to, but excluding, the earlier of the
Revolving Credit Maturity Date and the date of termination of the Revolving Credit Commitments.

“Bankruptcy Code” — Title 11 of the United States Code entitled “Bankruptcy”, as now or
hereafter in effect, or any successor thereto, as hereafter amended.

 

- 4 -

 

“Bankruptcy Event” — With respect to any Person, such Person becomes the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator,
custodian, assignee for the benefit of creditors or similar Person charged with the reorganization
or liquidation of its business appointed for it, or, in the good faith determination of the Agent,
has taken any action in the furtherance of, or indicating its consent to, approval of, acquiescence
in, any such proceeding or appointment, provided that a Bankruptcy Event shall not result solely by
virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a
Governmental Authority or instrumentality thereof, provided, further, that such ownership interest
does not result in or provide such Person with immunity from the jurisdiction of courts within the
United States or from the enforcement of judgments or writs of attachment on its assets or permit
such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or
disaffirm any contracts or agreements made by such Person.

“Blocked Person” — As defined in Section 4.21(b) of this Agreement.

“Borrower” — As defined in the opening paragraph to this Agreement.

“Borrower Collateral” — As defined in Section 3.4(e) of this Agreement.

“Borrower Financing Statements” — As defined in Section 3.4(e) of this Agreement.

“Borrower Security Agreement” — As defined in Section 3.4(e) of this Agreement.

“Breakage Fee” — An amount determined by the applicable Lender at the time of a prepayment of
a Libor Loan to be equal to the sum of the costs, losses, expenses and penalties incurred by such
Lender as a result of such prepayment; any loss to any Lender shall be deemed to be an amount
determined by such Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Libor Loan had such event not occurred, for the period from
the date of such event to the last day of the then current Interest Period therefor, over (ii) the
amount of interest which would accrue on such principal amount for such period at the interest rate
which such Lender would bid were it to bid, at the commencement of such period for deposits of
Dollars of a comparable amount and period from other banks in the London Interbank Market. Any
Lender’s calculation of any Breakage Fee shall be conclusive absent manifest error.

“Business
Day” — (a) For all purposes other than as set forth in clause (b) of this definition,
any day excluding Saturday, Sunday and any day on which banks in New York City are authorized by
law or other governmental action to close, and (b) with respect to Libor Loans, any day which is a
Business Day described in clause (a) and which is also a day for trading by and between banks in
U.S. dollar deposits in the London Interbank Eurodollar Market.

“Capital Lease” — As applied to any Person means any lease of any property (whether real,
personal or mixed) by that Person as lessee that, in conformity with GAAP, should be accounted for
as a capital lease on the balance sheet of that Person.

 

- 5 -

 

“Capital Lease Obligations” — All obligations under Capital Leases of the Borrower or any of
its Subsidiaries, without duplication, in each case taken at the amount thereof accounted for as
liabilities identified as “capital lease obligations” (or any similar words) on a consolidated
balance sheet of the Borrower and its Subsidiaries prepared in accordance with GAAP.

“Cash Collateralize” — The pledge and deposit with, or delivery to, the Agent, for the benefit
of itself, the Issuing Bank and the Lenders, as collateral for the LC Exposure or obligations of
Lenders to fund participations in respect of Letters of Credit or for such other obligations for
which the Borrower may be required to provide cash collateral under the terms of this Agreement, as
applicable, cash or deposit account balances or, if the Agent shall agree in its sole discretion,
other credit support, in each case pursuant to documentation in form and substance satisfactory to
the Agent. “Cash Collateral” shall have a meaning correlative to the foregoing and shall include
the proceeds of such cash collateral and other credit support.

“Change of Control” — (i) The occupation of a majority of the seats (other than vacant seats)
on the board of directors of Borrower by Persons who were neither (A) nominated by the Board of
Directors of Borrower nor (B) appointed by directors so nominated; (ii) the acquisition of, or, if
earlier, the shareholder or director approval of the acquisition of, ownership or voting control,
directly or indirectly, beneficially or of record, on or after the date of this Agreement, by any
Person or group (within the meaning of Rule 13d-3 of the SEC under the 1934 Act, as then in
effect), other than Kevin Keane and his estate and Immediate Family (as defined below) taken as a
whole, of shares representing more than 20% of the aggregate ordinary power to vote for the
election of directors represented by the issued and outstanding capital stock of Borrower; or (iii)
the occurrence of a change in control, or other similar provision, under or with respect to any
agreement evidencing Material Indebtedness. As used herein, “Immediate Family” means Kevin Keane’s
spouse, children and siblings.

“Change in Law” — (a) The adoption of any law, rule, regulation or treaty after the date of
this Agreement, (b) any change in any law, rule, regulation or treaty or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.10(b), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement; provided however, that
notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and
Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in
connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or any successor or
similar authority) or the United States regulatory authorities, in each case pursuant to Basel III,
shall, in each case, be deemed to be a “Change in Law”, regardless of the date enacted, adopted or
issued.

“CISADA” — The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010,
United States Public Law 111195, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time.

“Closing Date” — August 31, 2011.

 

- 6 -

 

“Code” — The Internal Revenue Code of 1986, as amended from time to time, and the regulations
promulgated and the rulings issued thereunder. Section references to the Code are to the Code as
in effect on the date of this Agreement and any subsequent provisions of the Code, amendatory
thereof, supplemental thereto or substituted therefor.

“Collateral” — Collectively, the Borrower Collateral and the Guarantor Collateral.

“Collateral Documents” — Collectively, the Security Agreements, any Mortgage, any Guaranty and
the Financing Statements, as any may have been reaffirmed by the Reaffirmation.

“Commitments” or ”Commitment” — (a) For all Lenders, the aggregate of the Total Revolving
Credit Commitment and Total Term Loan Commitment, and (b) for each Lender, the aggregate of such
Lender’s Revolving Credit Commitment and Term Loan Commitment.

“Commitment Fee” — As defined in Section 2.12 of this Agreement.

“Compliance Certificate” — A certificate of the Borrower substantially in the form of Exhibit
D hereto with all blanks appropriately completed.

“Confidential Information Materials” — The collective reference to the confidential
information with respect to the Borrower and the revolving credit facility evidenced by the
Existing Agreement, together with the information provided by, or on behalf of, the Borrower to the
Lenders in connection with this Agreement.

“Consideration” — In connection with an acquisition, the aggregate consideration paid,
including borrowed funds, cash, the issuance of securities or notes, the assumption or incurring of
liabilities (direct or contingent), excluding however trade payables and short term accruals in the
ordinary course of business, the payment of consulting fees (excluding any fees payable to any
investment banker in connection with such acquisition) or fees for a covenant not to compete and
any other consideration paid for the purchase.

“Consolidated” or “Consolidated Basis” — The consolidation of the accounts of any entity and
its Subsidiaries in accordance with GAAP, including principles of consolidation, consistent with
those applied in the preparation of the consolidated audited financial statements of Borrower
delivered to the Lenders.

“Consolidated Capital Expenditures” — For any period, the aggregate of all expenditures
(whether paid in cash or accrued as liabilities and including in all events amounts expended or
capitalized under Capital Leases and Synthetic Leases but excluding any amount representing
capitalized interest) of Borrower and all Subsidiaries during such period determined on a
Consolidated Basis that may properly be classified as capital expenditures in conformity with GAAP,
provided that (i) such term shall not include any such expenditure in connection with replacement
or repair of assets to the extent that casualty insurance proceeds or the trade-in
value of other equipment were used for such expenditure, and (ii) in making any calculation
under Sections 6.13 and 6.14 of this Agreement, Borrower may exclude from such expenditures up to
$18,300,000 of capital expenditures made or to be made by Borrower for the purchase and completion
of certain land and improvements at 12950 and 12960 Willows Road NE, Kirkland, Washington and the
purchase of the Borrower’s currently leased location at 6682 NW 16th Terrace, Fort Lauderdale,
Florida, so long as Borrower completes such purchases without incurring any new Indebtedness to the
sellers of such properties. The Borrower shall disclose to the Lenders on any Compliance
Certificate hereafter delivered to the Agent and the Lenders each such amount so excluded pursuant
to the foregoing item (ii).

 

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“Consolidated EBITDA” — For any period, an amount equal to (i) the sum of the amounts for such
period of (A) Consolidated Net Income, (B) Consolidated Interest Expense, (C) provisions for taxes
based on income, (D) total depreciation expense, (E) total amortization expense and (F) other
non-cash items reducing Consolidated Net Income minus (ii) other non-cash items increasing
Consolidated Net Income for such period; provided, however extraordinary gains, whether cash or
non-cash, shall not be included in the Calculation of Consolidated EBITDA. Notwithstanding
anything to the contrary in this definition, for purposes of computing the Leverage Ratio and Fixed
Charge Coverage Ratio hereunder, or in connection with any pro-forma calculation required by this
Agreement, the term “Consolidated EBITDA” shall be computed, on a consistent basis, to reflect
purchases and acquisitions by Permitted Acquisition or otherwise, and Asset Sales of a business
entity or assets constituting a business line or division, made by Borrower and the Subsidiaries
during the relevant period as if they occurred at the beginning of such period, and Borrower,
during the twelve (12) month period following the date of any such Permitted Acquisition may
include in the calculation hereof the necessary portion of the adjusted historical results of the
entities acquired in acquisitions that were achieved prior to the applicable date of the
acquisition for such time period as is necessary for Borrower to have figures on a Rolling
Four-Quarter Basis from the date of determination with respect to such acquired entities.

“Consolidated Interest Expense” — For any period, total interest expense (including, without
limitation, that which is capitalized and that which is attributable to Capital Leases or Synthetic
Leases) of the Borrower and its Subsidiaries on a consolidated basis with respect to all
outstanding indebtedness of the Borrower and its Subsidiaries, including, without limitation, all
commissions, discounts and other fees and charges owed with respect to letters of credit and net
costs under hedge agreements computed on a net basis after reduction for any interest income, and
excluding amortization of discount and amortization of debt issuance costs.

“Consolidated Net Income” — For any period, the net income (or loss) of the Borrower and its
Subsidiaries on a consolidated basis for such period taken as a single accounting period determined
in conformity with GAAP.

“Consolidated Total Assets” — At any date of determination, all amounts that would, in
conformity with GAAP, be set forth opposite the caption “total assets” (or a similar caption) on a
Consolidated balance sheet of Borrower and all Subsidiaries at such date.

“Consolidated Total Funded Debt” — The sum (without duplication) of all Indebtedness of the
Borrower and its Subsidiaries for borrowed money, all as determined on a Consolidated Basis.

 

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“Contingent Obligation” — Of a Person means any agreement, undertaking or arrangement by which
such Person assumes, guaranties, endorses, contingently agrees to purchase or provide funds for the
payment of, or otherwise becomes or is contingently liable upon, the obligation or liability of any
other Person, or agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person against loss,
including, without limitation, any comfort letter, operating agreement or take-or-pay contract.
The amount of any Contingent Obligation shall be equal to the amount of the obligation that is so
guarantied or supported that is actually outstanding or otherwise due and payable from time to
time, if a fixed and determinable amount or if there is no fixed or determinable amount, either (x)
if a maximum amount is guaranteed, the maximum amount or (y) if there is no maximum amount, the
amount of the obligation that is so guarantied or supported.

“Control”, “Controlling”, “Controlled by”, and “under Common Control with” — The possession,
directly or indirectly, of the power to either (i) vote 50% or more of the Equity Interests having
voting power for the election of directors, or persons performing similar functions, of a Person or
(ii) direct or cause the direction of the management and policies of a Person, whether by contract
or otherwise; provided however, no Plan or employee stock ownership plan of
Borrower shall be considered to have Control of Borrower or any Subsidiary.

“D M E” — D M E Corporation, a Florida corporation, and a Domestic Subsidiary of the Borrower.

“Default” — Any of the events specified in Article VII whether or not any requirement for the
giving of notice, the lapse of time, or both, has been satisfied.

“Default Rate” — For any day, with respect to any Loan, a rate per annum equal to 2% per annum
above the interest rate that would otherwise be applicable to such Loan and with respect to any
interest, fees and any other sums due hereunder, 2% per annum above the interest rate that would be
applicable to Revolving Loans that are ABR Loans pursuant to Section 2.6.

“Defaulting Lender” — Any Lender that (a) has failed, within two Business Days of the date
required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its
participations in Letters of Credit or Swingline Loans or (iii) pay over to the Agent or any Lender
any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such
Lender notifies the Agent in writing that such failure is the result of such Lender’s good faith
determination that a condition precedent to funding (specifically identified and including the
particular default, if any) has not been satisfied, (b) has notified the Borrower or the Agent or
any other Lender in writing, or has made a public statement to the effect, that it does not intend
or expect to comply with any of its funding obligations under this Agreement (unless such writing
or public statement indicates that such position is based on such Lender’s good faith determination
that a condition precedent (specifically identified and including the particular default, if any)
to funding a loan under this Agreement cannot be satisfied) or
generally under other agreements in which it commits to extend credit, (c) has failed, within
three Business Days after request by the Agent or any other Lender, acting in good faith, to
provide a certification in writing from an authorized officer of such Lender that it will comply
with its obligations (and is financially able to meet such obligations) to fund prospective Loans
and participations in then outstanding Letters of Credit and Swingline Loans under this Agreement,
provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon
the Agent’s or such other Lender’s receipt of such certification in form and substance satisfactory
to it and the Agent, or (d) has, or has a direct or indirect parent company that has, become the
subject of a Bankruptcy Event.

 

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“Designated Hedge Agreement” — Any Hedge Agreement (other than a commodities hedge agreement)
to which Borrower or any Subsidiary is a party and as to which a Lender or any of its Affiliates is
a counterparty that, pursuant to a written instrument signed by the Agent at the request of the
Borrower or any such Lender or Affiliate, has been designated as a Designated Hedge Agreement so
that Borrower’s or such Subsidiary’s counterparty’s credit exposure thereunder will be entitled to
share in the benefits of the Collateral and the Collateral Documents to the extent the Collateral
and such Collateral Documents provide guarantees or security for creditors of Borrower or any
Subsidiary under Designated Hedge Agreements.

“Disposal” — The intentional or unintentional abandonment, discharge, deposit, injection,
dumping, spilling, leaking, storing, burning, thermal destruction or placing of any substance so
that it or any of its constituents may enter the Environment.

“Dollars”, “U.S. Dollars” or “$” — Lawful money of the United States of America.

“Domestic Lending Office” — With respect to any Lender, the office of such Lender specified as
its “Domestic Lending Office” opposite its name on Schedule 2.1 hereto or in the Assignment and
Assumption pursuant to which it became a Lender, as the case may be, or such other office of such
Lender as such Lender may from time to time specify to the Borrower and the Agent.

“Domestic Subsidiary” — Any Subsidiary having any place of business located in the United
States of America.

“ECIDA Bond Projects” — Two projects of LSI whereby LSI (i) acquired 15 acres of land in East
Aurora, New York at an approximate purchase price of $350,000; constructed a 70,000 square foot
manufacturing facility thereon (“East Aurora Facility”) at a cost of approximately $4,700,000; and
purchased new equipment at a cost of approximately $1,450,000; and (ii) constructed a 57,000 square
foot addition to the East Aurora Facility, made related site improvements and acquired related
equipment at a cost of approximately $6,000,000, both of which projects were financed by means of
tax-exempt bonds issued by the Erie County Industrial Development Agency.

“ECIDA Letters of Credit” — The presently outstanding letters of credit in the current amounts
of approximately $2,285,624 and $5,822,067 issued by HSBC Bank for the account of the Borrower and
LSI to support the ECIDA Bond Projects.

 

- 10 -

 

“Eligible Assignee” — (i) A Lender, (ii) an Affiliate of a Lender, (iii) a fund that is
administered or managed by a Lender or an Affiliate of a Lender, or by an entity or an Affiliate of
any entity that administers or manages a Lender, and (iv) any other Person (other than a natural
Person) approved by (A) the Agent, (B) each Issuing Bank (but only in the case of any assignment
with respect to the Revolving Credit), and (C) unless an Event of Default has occurred and is
continuing, the Borrower (but only in the case of any assignment with respect to the Revolving
Credit), each such approval not to be unreasonably withheld or delayed; provided, however, that
notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any
Guarantor or any of their Affiliates or Subsidiaries.

“Environment” — Any water including, but not limited to, surface water and ground water or
water vapor; and land including land surface or subsurface; stream sediments; air; fish; wildlife;
plants; and all other natural resources or environmental media.

“Environmental Law” — Any applicable Federal, state, foreign or local statute, law, rule,
regulation, ordinance, code, binding and enforceable guideline, binding and enforceable written
policy and rule of common law now or hereafter in effect and in each case as amended, and any
binding and enforceable judicial or administrative interpretation thereof, including any judicial
or administrative order, consent, decree or judgment issued to or rendered against Borrower or any
Subsidiary relating to the Environment, employee health and safety or Hazardous Substances,
including, without limitation, CERCLA; RCRA; the Federal Water Pollution Control Act, 33 U.S.C. §
1251 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C. §
300f et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.; the Emergency Planning and
the Community Right-to-Know Act of 1986, 42 U.S.C. § 11001 et seq., the Hazardous Material
Transportation Act, 49 U.S.C. § 5101 et seq. and the Occupational Safety and Health Act, 29 U.S.C.
§ 651 et seq. (to the extent it regulates occupational exposure to Hazardous Substances); and any
state and local or foreign counterparts or equivalents, in each case as amended from time to time.

“Environmental Permits” — All licenses, permits, approvals, authorizations, consents or
registrations required by any applicable Environmental Laws and all applicable judicial and
administrative orders in connection with ownership, lease, purchase, transfer, closure, use and/or
operation of Borrower’s property and/or as may be required for the storage, treatment, generation,
transportation, processing, handling, production or Disposal of Hazardous Substances.

“Equity Interest” — With respect to any Person, any and all shares, interests, participations
or other equivalents, including membership interests (however designated, whether voting or
non-voting) of equity of such Person, including, if such Person is a partnership, partnership
interests (whether general or limited) or any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or distributions of assets of,
such partnership, but in no event will Equity Interest include any debt securities convertible or
exchangeable into equity unless and until actually converted or exchanged.

“ERISA” — The Employee Retirement Income Security Act of 1974, as amended from time to time
and the regulations and rulings promulgated and issued thereunder.

“ERISA Affiliate” — Each Subsidiary and any trade or business (whether or not incorporated)
that, together with Borrower, is treated as a single employer under Section 414(b) or (c) of the
Code or Section 4001(b)(1) of ERISA or, solely for purposes of Section 302 of ERISA and Section 412
of the Code, is treated as a single employer under Section 414 of the Code.

 

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“Event of Default” or “Events of Default” — As defined in Section 7.1 of this Agreement.

“Exchange Act” — The Securities Exchange Act of 1934, as amended.

“Excluded Taxes” — With respect to the Agent, any Lender or any other Recipient, (a) Taxes
imposed on or measured by net income and franchise Taxes (however determined) in each case imposed
by the United States of America, or by the jurisdiction (or any political subdivision thereof)
under the laws of which such recipient is organized or in which its principal office or management
is located (or with which it has a present or former connection) or, in the case of any Lender, in
which its applicable lending office is located, (b) any branch profits Taxes imposed by the United
States of America or any similar Tax imposed by any other jurisdiction, (c) any backup withholding
Taxes imposed by the United States of America or any similar Taxes imposed by any other
jurisdiction, (d) in the case of a Foreign Lender (other than an assignee pursuant to a request by
the Borrower under Section 2.19), any withholding Tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a
new lending office) or is attributable to such Foreign Lender’s failure to comply with Section
9.18, except to the extent that such Foreign Lender (or, in the case of an assignment, its
assignor, if any) was entitled, at the time of designation of a new lending office (or assignment)
to receive additional amounts from the Borrower with respect to such withholding Tax pursuant to
Section 2.11 and (e) any Taxes imposed or for which any Person is liable under or with respect to
FATCA.

“Executive Order No. 13224” — The Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001, as the same has been, or shall hereafter be, amended, renewed, extended or
replaced.

“Existing Agreement” — The Amended and Restated Credit Agreement dated as of January 30, 2009
among the Borrower, Bank of America, N.A. and KeyBank National Association as Lenders, and HSBC
Bank as Agent, a Lender, Swingline Lender, Issuing Bank and Arranger originally providing for a
$45,000,000 revolving credit facility and a $40,000,000 term loan to Borrower, as amended by
Amendments 1, 2 and 3 dated as of June 30, 2009, December 23, 2010 and April 29, 2011,
respectively.

“Existing Bonds” — Collectively, the tax-exempt bonds issued in connection with the New
Hampshire Bond Project and the ECIDA Bond Projects.

“Existing Letter of Credit” — The existing letter of credit in the face amount of
approximately U.S. $1,161,677 issued by HSBC Bank to HSBC Bank Canada to secure a term loan to an
Affiliate of the Borrower.

“FATCA” — Sections 1471 through 1474 of the Code and any regulations (whether temporary or
proposed) that are issued thereunder or official governmental interpretations thereof.

 

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“Federal Funds Effective Rate” — For any day, the rate per annum (based on a year of 365 days
and actual days elapsed and rounded upward to the nearest 1/100th of 1%) announced by the Federal
Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates
on overnight federal funds transactions arranged by federal funds brokers on the previous trading
day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the
same manner as such Federal Reserve Bank computes and announces the weighted average it refers to
as the “Federal Funds Effective Rate” as of the date of this Agreement; provided, if such
Federal Reserve Bank (or its successor) does not announce such rate on any day, the “Federal Funds
Effective Rate” for such day shall be the Federal Funds Effective Rate for the last day on which
such rate was announced.

“Fee Letter” — The Fee Letter dated as of August 31, 2011 between the Borrower and the Agent.

“Financial Covenants” — Collectively, the financial covenants set forth in Sections 6.13,
6.14, and 6.15 of this Agreement or any modification, amendment or replacement thereof made after
the Closing Date in accordance with Section 10.1 of this Agreement.

“Financing Statements” — Collectively, the Borrower Financing Statements and the Guarantor
Financing Statements.

“Fixed Charge Coverage Ratio” — As of a calculation date, the ratio of the Borrower’s
Consolidated EBITDA minus Consolidated Capital Expenditures minus cash taxes paid and dividends
paid to Consolidated Interest Expense plus the amount of scheduled principal payments, but
excluding any prepayments of principal, paid on long-term Indebtedness, calculated on a Rolling
Four-Quarter Basis as of such calculation date.

“Foreign Lender” — Any Lender that is organized under the laws of a jurisdiction other than
the United States of America or any state thereof or the District of Columbia.

“Foreign Subsidiary” — Any Subsidiary that is not a Domestic Subsidiary.

“Fronting Exposure” — At any time there is a Defaulting Lender, with respect to the Issuing
Bank, such Defaulting Lender’s Applicable Percentage of the outstanding LC Exposure with respect to
Letters of Credit issued by the Issuing Bank other than LC Exposure as to which such Defaulting
Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in
accordance with the terms hereof.

“GAAP” — As of the date of any determination, generally accepted accounting principles in the
United States of America as promulgated by the Financial Accounting Standards Board and/or the
American Institute of Certified Public Accountants or any successor entity or entities thereto, and
which are effective as of such date of determination, consistently applied and maintained
throughout the relevant periods and from period to period.

“Governmental Authority” — The government of the United States of America, any other nation or
any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government.

 

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“Guarantor” or “Guarantors” — Individually, each of Astronics Advanced, D M E and LSI, and
collectively, all of them, and any other Subsidiary of Borrower which is required to deliver a
Guaranty hereunder.

“Guarantor Collateral” — As defined in Section 3.4(f) of this Agreement.

“Guarantor Financing Statements” — As defined in Section 3.4(f) of this Agreement.

“Guarantor Security Agreement” — As defined in Section 3.4(f) of this Agreement.

“Guaranty” — A guaranty agreement in form and content reasonably satisfactory to the Agent and
the Lenders evidencing the obligation of a Person to guarantee payment of any Indebtedness and any
other reimbursement, payment or performance obligations of another Person which arise under this
Agreement or any other Loan Document.

“Guaranty Obligations” — As to any Person (without duplication) any obligation of such Person
guaranteeing any Indebtedness (“primary Indebtedness”) of any other Person (the
“primary obligor”) in any manner, whether directly or indirectly, including, without
limitation, any obligation of such Person, whether or not contingent, (i) to purchase any such
primary Indebtedness or any property constituting direct or indirect security therefor, (ii) to
advance or supply funds for the purchase or payment of any such primary Indebtedness or to maintain
working capital or equity capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (iii) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary Indebtedness of the ability of the primary
obligor to make payment of such primary Indebtedness, or (iv) otherwise to assure or hold harmless
the owner of such primary Indebtedness against loss in respect thereof, provided, however, that the
definition of Guaranty Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Guaranty Obligation shall be
deemed to be an amount equal to the stated or determinable amount of the primary Indebtedness in
respect of which such Guaranty Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is required to perform
thereunder), as determined by such Person in good faith.

“Hazardous Substances” — Without limitation, any explosives, radioactive materials, friable
asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum and petroleum
products, methane, hazardous materials, hazardous wastes, hazardous or toxic substances and any
other material defined as a hazardous substance in Section 101(14) of the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C. Section 9601 et seq.) the Hazardous Materials Transportation Act, as amended (49 U.S.C.
Sections 1801, et seq.), the Resource Conservation and Recovery Act, as amended (42 U.S.C. Section
6901 et seq.), Articles 15 and 27 of the New York State Environmental Conservation Law or any other
applicable Environmental Law and in the regulations promulgated thereunder.

 

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“Hedge Agreement” — An interest rate swap, cap or collar agreement, foreign currency exchange
agreement, or any arrangement similar to any of the foregoing between Borrower or any Subsidiary
and any Lender or Affiliate of a Lender relating to any Indebtedness under this Agreement, each as
providing for the transfer or mitigation of interest rate or foreign currency risk either generally
or under specific contingencies.

“HSBC Bank” — HSBC Bank USA, National Association, and its successors and assigns.

“Indebtedness” — At a particular date, without duplication (i) all indebtedness of such Person
for borrowed money; (ii) all bonds, notes, debentures and similar debt securities of such Person;
(iii) the deferred purchase price of capital assets or services that in accordance with GAAP would
be shown on the liability side of the balance sheet of such Person; (iv) the face amount of all
letters of credit issued for the account of such Person and, without duplication, all drafts drawn
thereunder; (v) all obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances; (vi) all Indebtedness of a second Person secured by any Lien on any property owned by
such first Person, whether or not such indebtedness has been assumed; (vii) all Capitalized Lease
Obligations of such Person; (viii) the present value, determined on the basis of the implicit
interest rate, of all basic rental obligations under all Synthetic Leases of such Person; (ix) all
obligations of such Person to pay a specified purchase price for goods or services whether or not
delivered or accepted, i.e., take-or-pay and similar obligations; (x) all net obligations
of such Person under Hedge Agreements; (xi) the full outstanding balance of trade receivables,
notes or other instruments sold with full recourse (and the portion thereof subject to potential
recourse, if sold with limited recourse), other than in any such case any thereof sold solely for
purposes of collection of delinquent accounts; (xii) the stated value, or liquidation value if
higher, of all redeemable Equity Interests of such Person; and (xiii) all Guaranty Obligations of
such Person (without duplication under clause (vi)); provided, however that (x) neither trade
payables nor other similar accrued expenses, in each case arising in the ordinary course of
business, nor obligations in respect of insurance policies or performance or surety bonds that
themselves are not guarantees of Indebtedness (nor drafts, acceptances or similar instruments
evidencing the same nor obligations in respect of letters of credit supporting the payment of the
same), shall constitute Indebtedness; and (y) the Indebtedness of any Person shall in any event
include (without duplication) the Indebtedness of any other entity (including any general
partnership in which such Person is a general partner) to the extent such Person is liable thereon
as a result of such Person’s ownership interest in or other relationship with such entity, except
to the extent the terms of such Indebtedness provide expressly that such Person is not liable
thereon.

“Indemnified Taxes” — Taxes imposed on or with respect to any payment made by Borrower under
this Agreement, other than Excluded Taxes and Other Taxes.

 

- 15 -

 

“Interest Period” or “Interest Periods” — Individually, and collectively, with respect to a
Libor Loan, the one, two, three or six month interest periods selected by the Borrower pursuant to
the terms of this Agreement to be applicable to specific Libor Loans from time to time or any such
other periods of such other durations as the Borrower and all Lenders may agree shall be applicable
to specific Libor Loans from time to time; provided, however, that (i) no Interest
Period may be selected for a Revolving Loan that would end after the Revolving Credit Maturity
Date; (ii) no Interest Period may be selected for a Term Loan that would end after the Term Loan
Maturity Date; (iii) if any Interest Period begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period, such Interest Period
shall end on the last Business Day of such calendar month; (iv) if any Interest Period would
otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next
succeeding Business Day; and (v) if any Interest Period would otherwise expire on a day that is not
a Business Day but is a day of the month after which no further Business Day occurs in such month,
such Interest Period shall expire on the next preceding Business Day.

“Investment” — With respect to any Person, any loan, advance or other extension of credit
(other than unsecured normal trade credit extended upon customary terms in the ordinary course of
such Person’s business) or capital contribution to, any purchase or other acquisition of any
security of or interest in, or any other investment in, any other Person.

“IRB Letters of Credit” — Together, the New Hampshire Letter of Credit and the ECIDA Letters
of Credit.

“Issuing Bank” — HSBC Bank, in its capacity as an issuer of Letters of Credit under this
Agreement, and any replacements or successors of HSBC Bank in such capacity as provided in Section
2.4(j) of this Agreement.

“Law” or “Laws” — Any law, constitution, statute, regulation, rule, opinion, ruling,
ordinance, order, injunction, writ, decree, bond or judgment of any Governmental Authority.

“LC Disbursement” — A payment made by any Issuing Bank pursuant to a Letter of Credit.

“LC Exposure” — At any time, the sum of (i) the aggregate undrawn amount of all outstanding
Letters of Credit at such time plus (ii) the aggregate amount of all LC Disbursements that have not
yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender at
any time shall be its Applicable Percentage of the total LC Exposure at such time.

“Lead Arranger” — Individually, and collectively, HSBC Bank and Merrill Lynch, Pierce, Fenner
& Smith Incorporated, and any successor to either of such financial institutions as a Lead Arranger
under this Agreement.

“Lenders” — The Persons listed on Schedule 2.1 to this Agreement with a Revolving Credit
Commitment and a Term Loan Commitment and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption, other than any such
Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the
context otherwise requires, the term “Lenders” includes the Swingline Lender.

 

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“Lenders’ Obligations” — As defined in Section 7.2 of this Agreement.

“Letter of Credit” or “Letters of Credit” — Individually, and collectively, any, and all,
standby or commercial letters of credit issued by HSBC Bank pursuant to this Agreement upon
application by the Borrower including the Existing Letter of Credit and the IRB Letters of Credit.

“Letter of Credit Commitment” — With respect to the Issuing Bank, the amount set forth
opposite such Issuing Bank’s name on Schedule 2.1 hereto under the caption “Letter of Credit
Commitment” or, if the Issuing Bank has entered into one or more Assignments and Assumptions, the
amount set forth for the Issuing Bank in the register maintained by the Agent as such Issuing
Bank’s “Letter of Credit Commitment,” as such amount may be reduced at or prior to such time
pursuant to Section 2.13.

“Letter of Credit Facility” — At any time, an amount equal to the amount of the Issuing Bank’s
Letter of Credit Commitment at such time, as such amount may be reduced at or prior to such time
pursuant to Section 2.13 less the aggregate Available Amount under all Letters of Credit
outstanding at such time.

“Letter of Credit Sublimit” — The $20,000,000 maximum aggregate Available Amount of all
Letters of Credit which can be outstanding at any one time.

“Leverage Ratio” — The ratio of the Borrower’s Consolidated Total Funded Debt as of a
calculation date to Consolidated EBITDA, calculated on a Rolling Four-Quarter Basis as of such
calculation date.

“Libor Interest Determination Date” — A Business Day that is two (2) Business Days prior to
the commencement of each Interest Period during which the Libor Rate will be applicable.

“Libor Lending Office” — With respect to any Lender, the office of such Lender specified as
its Libor Lending Office” opposite its name on Schedule 2.1 hereto or in the Assignment and
Assumption pursuant to which it became a Lender (or, if no such office is specified, its Domestic
Lending Office), or such other office of such Lender as such Lender may from time to time specify
to the Borrower and the Agent.

“Libor Loan” — Any Loan on which interest is calculated based on the Libor Rate plus the
Applicable Margin.

“Libor Rate” — The reserve adjusted rate of interest per annum determined by HSBC Bank to be
applicable to any selected Interest Period appearing on Reuters Screen LIBOR01 Page or such other
substitute page that displays such rate or another alternate source
selected by the Agent to determine such rate on a Libor Interest Determination Date in an
amount approximately equal to the amount of the applicable Libor Loan.

“Libor Rate Option” — The Rate Option in which interest is calculated based upon the Libor
Rate.

 

- 17 -

 

“Lien” — Any mortgage, deed of trust, pledge, hypothecation, assignment, security interest,
lien, charge or encumbrance, or preference, priority or other security agreement or preferential
arrangement in respect of any asset of any kind or nature whatsoever (including, without
limitation, any conditional sale or other title retention agreement or any financing lease having
substantially the same economic effect as any of the foregoing).

“Loan” or “Loans” — Individually and collectively, any Revolving Loan and any Term Loan,
whether such is an ABR Loan or a Libor Loan and any Swingline Loan under the Revolving Credit.

“Loan Account” — An account or accounts maintained with the Agent for the Borrower into which
the proceeds of a Revolving Loan and a Term Loan shall be initially deposited pursuant to Sections
2.1(b) and 2.5 of this Agreement.

“Loan Document” — This Agreement and any other loan, guaranty, mortgage, letter of credit or
collateral document executed and delivered by Borrower, any Guarantor, or any other Subsidiary or
the Lenders in connection with this Agreement including, without limitation, the Notes, any
Guaranty, any Mortgage, the Subordination Agreement, any Letter of Credit or any document in
connection therewith, and the Collateral Documents, as any of the same may be amended, modified,
renewed or replaced from time to time.

“LSI” — Luminescent Systems, Inc., a New York corporation, formerly known as Flex-key
Corporation, and a Subsidiary of the Borrower.

“Material Adverse Effect” — An effect, individually or in the aggregate, that (i) is
materially adverse to the business, assets, financial condition or results of operations of
Borrower and its Subsidiaries, taken as a whole, or (ii) does materially impair the ability of the
Borrower to perform its obligations under this Agreement, or any other Loan Documents, or (iii)
materially impairs the rights and remedies of the Agent, the Swingline Lender, any Issuing Bank or
any of the Lenders under the Loan Documents.

“Material Indebtedness” — Indebtedness owing to a Person or Persons in a single transaction or
related transactions (other than the Loans and Letters of Credit), or obligations in respect of one
or more Hedge Agreements entered into with a Person, of the Borrower and any Subsidiary in an
aggregate principal amount exceeding $7,000,000. For purposes of determining Material
Indebtedness, the principal amount of the obligations of any Person in respect of any Hedge
Agreement at any time shall be the maximum aggregate amount (giving effect to any netting
agreements) that such Person would be required to pay if such Hedge Agreement were terminated at
such time.

“Maximum Limit” — The maximum aggregate amount which the Borrower can borrow from time to time
under the Revolving Credit which on the date hereof is $35,000,000.

“Mortgages” — Collectively, the mortgages originally given by LSI secure the IRB Letters of
Credit and subsequently amended to also secure the Term Loan, as any such mortgage may be further
amended, modified, renewed or replaced from time to time.

 

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“Multiemployer Plan” — A Plan which is a multiemployer plan as defined in Section 4001(a)(3)
of ERISA to which the Borrower, any Person under Common Control with the Borrower, or any Person
Controlled by the Borrower, has an obligation to contribute.

“Multiple Employer Plan” — A Plan subject to Title IV of ERISA and described in Section 4063
of ERISA with respect to which the Borrower or any ERISA Affiliate could have liability under
Section 4064 or 4069 of ERISA in the event such Plan has been or were to be terminated.

“Net Proceeds” — The gross amount received less tax reserves established to cover estimated
taxes, payments made on any debt secured by any Permitted Encumbrance that must be paid as a
condition to receipt of such proceeds, and commissions, fees (including, without limitation, the
fees and expenses of attorneys, accountants, investment bankers, appraisers and consultants), other
closing costs (including, without limitation, costs of title insurance, surveys, recording fees and
filing fees and transfer taxes), underwriters’ discounts and similar expenses.

“New Hampshire Bond Project” — A project of LSI, whereby LSI constructed and equipped an
80,000 square foot manufacturing facility in Lebanon, New Hampshire which was financed by means of
a tax-exempt bond issued by the Business Authority of the State of New Hampshire.

“New Hampshire Letter of Credit” — The presently outstanding letter of credit in the current
amount of approximately $2,892,164 issued by HSBC Bank for the account of the Borrower and LSI to
support the New Hampshire Bond Project.

“Non-Material Subsidiary” — Any Subsidiary that has, as of the date of determination, total
assets equal to less than 5.0% of Consolidated Total Assets, based on the quarterly financial
statements of Borrower most recently delivered to the Lenders.

“Note” or “Notes” — Individually, any, and collectively, all, of the Revolving Notes, Term
Notes, and the Swingline Note, and any or all replacements and renewals thereof.

“OFAC” — As defined in Section 4.21 of this Agreement.

“OFAC Listed Person” — As defined in Section 4.21 of this Agreement.

“OFAC Sanctions Program” — Any economic or trade sanction that OFAC is responsible for
administering and enforcing. A list of OFAC Sanctions Programs may be found at
http://www.ustreas.gov/offices/enforcement/ofac/programs/.

“Operating Lease” — As applied to any Person means any lease of any property (whether real,
personal or mixed) by that Person as lessee that, in conformity with GAAP is not accounted for as a
Capital Lease on the balance sheet of that Person.

“Other Taxes” — Any and all present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies arising from any payment made hereunder or from the
execution, delivery or enforcement of this Agreement, except for any Excluded Taxes.

 

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“Participant” — As defined in Section 10.3(b) of this Agreement.

“PBGC” — The Pension Benefit Guaranty Corporation referred to and defined in ERISA and any
successor entity performing similar functions.

“Permitted Acquisition” or “Permitted Acquisitions” — As defined in Section 6.7(c) of this
Agreement.

“Permitted Encumbrance” — As defined in Section 6.2 of this Agreement.

“Person” — Any individual, corporation, partnership, limited liability company, joint venture,
trust, unincorporated association, Governmental Authority or other entity, body, organization or
group.

“Plan” — Any employee benefits plan which is covered by Title IV of ERISA and in respect of
which the Borrower or a Commonly Controlled Entity is an “employer” as defined in Section 3(5) of
ERISA, each of which Plans is listed on Schedule 1 to this Agreement.

“Prime Rate” — The rate of interest publicly announced by HSBC Bank from time to time as its
prime rate and is a base rate for calculating interest on certain loans. The Prime Rate may or may
not be the most favorable rate charged by HSBC Bank to its customers from time to time.

“Rate Option” or “Rate Options” — The choice of applicable interest rates and Interest Periods
offered to the Borrower pursuant to this Agreement to establish the interest to be charged on
certain portions of the unpaid principal borrowed hereunder from time to time.

“Reaffirmation” — The Reaffirmation of Collateral and Guaranty Documents dated the date hereof
given by the Borrower and the Guarantors reaffirming the Collateral Documents.

“Recipient” — As applicable, (a) the Agent, (b) any Lender, (c) the Issuing Bank, and (d) any
other recipient of any payment made or to be made by or on account of any obligation of the
Borrower hereunder.

“Related Parties” — With respect to any Person, such Person’s Affiliates and the directors,
officers, employees, agents and advisors of such Person and of such Person’s Affiliates.

“Release” — Release as defined in Section 101(22) of the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.), and the
regulations promulgated thereunder.

“Replaced Lender” or “Replacement Lender” — As defined in Section 2.19 of this Agreement.

 

- 20 -

 

“Reportable Event” — Any event with regard to a Plan described in Section 4043(b) of ERISA or
in regulations issued thereunder.

“Request Certificate” — A certificate in the form annexed hereto as Exhibit E with all blanks
appropriately completed, and duly executed by the Borrower.

“Required Lenders” — At any time, Lenders that together hold Revolving Credit Exposures,
Unused Revolving Credit Commitments and outstanding principal amounts of the Term Loans
representing at least the Required Percentage (as defined below) of the sum of the Total Revolving
Credit Exposures, Unused Revolving Credit Commitments and outstanding principal amounts of the Term
Loans at such time; provided, however, if any Lender shall be a Defaulting Lender
at such time, there shall be excluded from the determination of Required Lenders at such time (i)
the aggregate principal amount of Loans owing to such Lender (in its capacity as a Lender) and
outstanding at such time, and (ii) the aggregate Commitment of such Lender at such time. For
purposes of this definition, the aggregate principal amount of Swingline Loans owing to the
Swingline Lender, the LC Disbursements owing to the Issuing Bank and the amount available to be
drawn under each Letter of Credit shall be considered to be owed to the Lenders ratably in
accordance with their respective Commitments. As used herein, Required Percentage means at least
two Lenders holding 51% or more at the time a determination of the Required Lenders is necessary,
of the sum of the Total Revolving Credit Exposures, Unused Revolving Credit Commitments and
outstanding principal amounts of the Term Loans.

“Revolving Credit” — The five-year revolving credit facility (including Revolving Loans,
Swingline Loans and Letters of Credit) made available to the Borrower by the Lenders as provided in
this Agreement.

“Revolving Credit Commitment” — With respect to each Lender, the commitment of such Lender to
make Revolving Loans, to acquire participations in Letters of Credit, and to acquire participations
in Swingline Loans hereunder, as such commitment may be (i) reduced from time to time pursuant to
Section 2.13 of this Agreement, (ii) increased pursuant to Section 2.23 of this Agreement, and
(iii) reduced or increased from time to time pursuant to assignment by or to such Lender pursuant
to Section 10.3 of this Agreement. The initial maximum amount of each Lender’s Revolving Credit
Commitment is set forth on Schedule 2.1 of this Agreement, or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Revolving Credit Commitment, as applicable.

“Revolving Credit Exposure” — With respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans, LC Exposure and Swingline Exposure
at such time.

“Revolving Credit Maturity Date” — August 31, 2016, which date may be shortened in accordance
with Section 7.2 of this Agreement.

“Revolving Loan” or “Revolving Loans” — Individually and collectively, each Loan by any Lender
to Borrower whether initially made as an ABR Loan or a Libor Loan under Section 2.1 of this
Agreement or arising from Borrower’s request for a Loan to repay a Swingline Loan under Section
2.3(c) of this Agreement, or arising from Borrower’s request to reimburse an LC Disbursement under
Section 2.4(f) of this Agreement.

 

- 21 -

 

“Revolving Note” or “Revolving Notes” — The promissory note or promissory notes of the
Borrower substantially in the form of Exhibit A hereto with all blanks appropriately completed, and
all replacements and renewals thereof, evidencing the promise of the Borrower to repay Revolving
Loans to the applicable Lender.

“Rolling Four-Quarter Basis” — The four most recently completed consecutive fiscal quarters of
the Borrower immediately preceding a calculation date.

“SEC” — The U.S. Securities and Exchange Commission, any successor thereto and any analogous
Governmental Authority.

“Secured Obligations” — All Indebtedness of the Borrower and the Guarantors under the Loan
Documents together with all Indebtedness of Borrower and any Subsidiary under Designated Hedge
Agreements.

“Secured Parties” — The Lenders, the Issuing Bank, any Affiliate of any Lender while such
Affiliate is a party to a Designated Hedge Agreement, and the Agent.

“Securities Act” — The Securities Act of 1933, as amended.

“Security Agreements” — Collectively, the Borrower Security Agreement and the Guarantor
Security Agreement.

“Seller Notes” — The two unsecured notes issued by the Borrower pursuant to the Stock Purchase
Agreement to the sellers of the stock of D M E in the respective original principal amounts of
$5,000,000 and $2,000,000, which notes are subordinated to the Indebtedness arising under this
Agreement by the terms of the Subordination Agreement.

“Stock Purchase Agreement” — The Stock Purchase Agreement dated as of January 28, 2009 by and
among the Borrower, D M E and the shareholders of D M E, and the Schedules in connection therewith.

“Subordination Agreement” — The agreement whereby the Seller Notes are subordinated to the
Indebtedness of the Borrower arising under this Agreement, and any amendment, modification or
replacement thereof.

“Subsidiary” — Any corporation, limited liability company, partnership, association or other
entity the accounts of which would be consolidated with those of Borrower in Borrower’s
consolidated financial statements if such financial statements were prepared in
accordance with GAAP as of such date, as well as any corporation of which at least 50% of the
voting Equity Interest is owned by any entity directly, or indirectly through one or more
Subsidiaries.

 

- 22 -

 

“Swingline Exposure” — At any time for all Lenders, the aggregate principal amount of all
Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall
be its Applicable Percentage of the total Swingline Exposure at such time.

“Swingline Lender” — HSBC Bank, in its capacity as lender of Swingline Loans hereunder, and
any replacement or successor to HSBC Bank in such capacity, as provided in this Agreement.

“Swingline Loan” — A loan made pursuant to Section 2.3 of this Agreement.

“Swingline Note” — A promissory note of Borrower substantially in the form of Exhibit B hereto
with all blanks appropriately completed, and all replacements and renewals thereof evidencing the
promise of the Borrower to repay Swingline Loans to the Swingline Lender.

“Synthetic Lease” — Any lease (i) that is accounted for by the lessee as an Operating Lease
and (ii) under which the lessee is intended to be the “owner” of the leased property for federal
income tax purposes.

“Taxes” — Any and all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority.

“Term Loan” or “Term Loans” — Collectively, the term loan made or to be made by the Lenders to
the Borrower and individually, each Lender’s share of such term loan made by such Lender to the
Borrower, on the Closing Date in the aggregate principal amount of $18,000,000 pursuant to Section
2.1(c).

“Term Loan Commitment” — With respect to each Lender the commitment of such Lender to fund its
portion of the Term Loan to the Borrower on the Closing Date. The initial amount of each Lender’s
Term Loan Commitment is set forth on Schedule 2.1 to this Agreement.

“Term Loan Maturity Date” — January 30, 2014, which date may be shortened in accordance with
Section 7.2 of this Agreement.

“Term Note” — The promissory note or promissory notes of the Borrower substantially in the
form of Exhibit C hereto with all blanks appropriately completed, and all replacements and renewals
thereof, evidencing the promise of the Borrower to repay Term Loans to the applicable Lender.

“Total Commitment” — Together, the Total Revolving Credit Commitment and Total Term Loan
Commitment.

“Total Revolving Credit Commitment” — The sum of the Revolving Credit Commitments of the
Lenders, as in effect from time to time. On the Closing Date, the Total Revolving Credit
Commitment is equal to $35,000,000.

 

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“Total Revolving Credit Exposure” — The total Revolving Credit Exposures of all the Lenders.

“Total Term Loan Commitment” — The sum of the Term Loan Commitments of the Lenders, as in
effect from time to time. On the Closing Date, the Total Term Loan Commitment is equal to
$18,000,000.

“Type” — When used in reference to any Loan or borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such borrowing, is determined by reference to the
Libor Rate or the Alternate Base Rate.

“Unused Revolving Credit Commitment” — With respect to any Lender at any time, (i) such
Lender’s Revolving Credit Commitment at such time minus (ii) the sum of (x) the aggregate principal
amount of all Revolving Loans in each instance made by such Lender (in its capacity as a Lender)
and outstanding at such time, plus (y) such Lender’s Applicable Percentage of (1) the
aggregate Available Amount of all Letters of Credit outstanding at such time, (2) the aggregate
principal amount of all LC Disbursements made by any Issuing Bank and outstanding at such time, and
(3) the aggregate principal amount of all Swingline Loans made by the Swingline Lender and
outstanding at such time.

“USA Patriot Act” — The Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been,
or shall hereafter be, renewed, extended, amended or replaced.

1.2 Accounting Terms.

(a) Generally. All accounting terms not specifically or completely defined herein
shall be construed in conformity with, and all financial data (including financial ratios and other
financial calculations) required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a
manner consistent with that used in preparing Borrower’s audited financial statements previously
provided to the Agent and the Lenders, except as otherwise specifically prescribed herein.

(b) Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in this Agreement, and either the Borrower or the
Required Lenders shall so request, the Agent, the Lenders and the Borrower shall negotiate in good
faith to amend such ratio or requirement to preserve the original intent thereof in light of such
change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended,
(i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) the Borrower shall
provide to the Agent and the Lenders financial statements and other documents required under
this Agreement or as reasonably requested hereunder setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect to such change in
GAAP.

 

- 24 -

 

1.3 Times of Day. Unless otherwise specified, all references herein to times of day shall
be references to Eastern time (daylight or standard, as applicable).

1.4 Letters of Credit Amounts. Unless otherwise specified herein, the amount of a Letter
of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at
such time; provided, however, that with respect to any Letter of Credit that, by
its terms or the terms of any letter of credit document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time.

ARTICLE II. THE CREDITS

2.1 The Revolving Credit and Term Loans.

(a) Revolving Loans. Each Lender agrees, severally and not jointly, subject to the
terms and conditions and relying upon the representations and warranties set forth in this
Agreement and within the limits hereof, to make one or more Revolving Loans to the Borrower, and
Borrower may make a request for a Revolving Loan or Revolving Loans from the Lenders, at any one
time and from time to time, during the Availability Period. The Borrower shall not at any time
permit, and no Lender shall have any obligation to permit, the aggregate outstanding principal
amounts of all Revolving Loans, Swingline Loans and the aggregate Available Amount of all Letters
of Credit outstanding at such time to exceed the Maximum Limit or any such Revolving Loan to exceed
such Lender’s Unused Revolving Credit Commitment. The Revolving Loans may be repaid and reborrowed
in accordance with the provisions hereof.

(b) Method for Revolving Loans. When Borrower wants the Lenders to make a Revolving
Loan available, the Borrower shall notify the Agent not later than 1:00 p.m. on the Business Day on
which the Revolving Loan is to be funded in the case of an ABR Loan, and in the case of a Libor
Loan not later than two (2) Business Days prior to the proposed commencement date of the applicable
Interest Period. In such notice, which may be by telephone, confirmed immediately in writing, or
telex or telecopier, by means of a Request Certificate duly completed and executed by an Authorized
Officer, the Borrower shall specify (i) the aggregate amount of the Revolving Loan to be made on a
designated date which shall be in a minimum amount of $100,000 and shall be in whole multiples of
$100,000 for amounts in
excess of such minimum amount; (ii) whether the Revolving Loan shall be an ABR Loan or a Libor
Loan, and if a Libor Loan the applicable Interest Period, provided, however, such
Interest Period may in no event overlap more than nine (9) other Interest Periods; and (iii) the
proposed date on which the Revolving Loan is to be funded which shall be a Business Day. Each
Lender shall make available to the Agent in accordance with Section 2.5 hereof, in immediately
available funds, such Lender’s Applicable Percentage of such Loan in accordance with the respective
Revolving Credit Commitment of such Lender. As early as practically possible on the date on which
a Revolving Loan is made and upon fulfillment of the conditions set forth in Article III of this
Agreement, the Agent will make the proceeds of the Revolving Loan available to the Borrower by a
deposit to the applicable Loan Account.

 

- 25 -

 

(c) Term Loans. Each Lender agrees, severally and not jointly, subject to the terms
and conditions set forth in this Agreement and relying on the representations and warranties set
forth in this Agreement, to fund in a single advance its portion of the Term Loan in the full
amount of its Term Loan Commitment on the Closing Date. Principal amounts of the Term Loan that
are repaid or prepaid may not be reborrowed.

(d) Indebtedness Assigned. As of the Closing Date, there are $0.00 of revolving loans
outstanding, letters of credit with a face amount of $12,161,531.64 outstanding and $18,000,000 of
term loans outstanding under the Existing Agreement. Pursuant to an Omnibus Assignment and
Assumption Agreement dated as of the Closing Date, the lenders under the Existing Agreement have
assigned to the Agent all of the Indebtedness under the Existing Agreement effective as of the
Closing Date. As of the Closing Date, such Indebtedness under the Existing Agreement is amended
and restated as Indebtedness hereunder, and the Agent hereby assigns a portion of the Commitment to
the Lenders such that, after giving effect to such assignment, the Commitment of each Lender shall
be as set forth on Schedule 2.1. The terms and provisions of Exhibit F are hereby incorporated by
reference so that the foregoing assignment shall be subject to the terms and conditions of such
Exhibit F.

2.2 The Notes. (a) The Revolving Loans shall be evidenced by the Revolving Notes,
executed by an Authorized Officer and with all blanks appropriately completed, payable as provided
therein to the Lenders. Each Revolving Note may be inscribed by the holder thereof on the schedule
attached thereto, and any continuation thereof, with the date of the making of each Revolving Loan,
the amount of each Revolving Loan, the applicable Rate Options and Interest Periods, all payments
of principal, and the aggregate outstanding principal balance thereof.

(b) The Swingline Loans shall be evidenced by the Swingline Note, executed by an Authorized
Officer with all blanks appropriately completed, payable as provided therein to the Swingline
Lender. The Swingline Note may be inscribed by the holder thereof on the schedule attached thereto
and any continuation thereof with the date of the making of each Swingline Loan, the amount thereof
and all payments of principal, and the aggregate principal balance thereof.

(c) The Term Loans shall be evidenced by the Term Notes, executed by an Authorized Officer
with all blanks appropriately completed, payable as provided therein to
the Lenders. The Term Loans shall be payable in ten (10) consecutive quarterly principal
installments as follows: five principal installments which aggregate $1,000,000 each commencing on
October 1, 2011 and on each subsequent January 1, April 1, July 1 and October 1 during 2012,
followed by four (4) principal installments which aggregate $2,000,000 each on each January 1,
April 1, July 1 and October 1 through October 1, 2013 with one (1) installment on January 30, 2014
in an amount equal to the then unpaid principal balance of the Term Loans. Each Term Note may be
inscribed by the holder thereof on the schedule attached thereto, and any continuation thereof,
with the applicable Interest Periods, all payments of principal, and the aggregate outstanding
principal balance thereof.

Any such inscription on the schedules to any Revolving Note, Term Note, or the Swingline Note made
by the holder thereof shall constitute prima facie evidence of the accuracy of the information so
recorded; provided, however, the failure of any Lender or other holder to make any
such inscription shall not affect the obligations of the Borrower under any Revolving Note, the
Swingline Note or this Agreement.

 

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2.3 Swingline Loans. (a) Subject to the terms and conditions set forth herein, the
Swingline Lender agrees to make Loans (“Swingline Loans”) to Borrower solely for the Swingline
Lender’s own account, from time to time during the Availability Period, up to an aggregate
principal amount at any one time outstanding that will not result in (i) the aggregate principal
amount of outstanding Swingline Loans exceeding $5,000,000 or (ii) the sum of the aggregate Unused
Revolving Credit Commitments of the Lenders at such time being exceeded; provided
that the Swingline Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan. The Swingline Lender shall not make any Swingline Loan in the period
commencing one Business Day after the Swingline Lender shall have received written notice in
accordance with Section 10.5 of this Agreement from the Agent or any Lender that one or more of the
conditions contained in Article III are not then satisfied or a Default or an Event of Default
exists and ending upon the satisfaction or waiver of such condition(s) or cure or waiver of such
Default or Event of Default. Swingline Loans shall bear interest payable monthly on the first
calendar day of each month at the ABR Option from time to time in effect. Each outstanding
Swingline Loan shall be payable on the Business Day following demand therefor or automatically
without demand on the Revolving Credit Maturity Date, together with interest accrued thereon, and
shall otherwise be subject to all other terms and conditions applicable to all Revolving Loans,
except that all interest thereon shall be payable to the Swingline Lender solely for its own
account other than in the case of the purchase of a participation therein in accordance with
Section 2.3(c) of this Agreement. Within the foregoing limits and subject to the terms and
conditions set forth herein, Borrower may borrow, repay and reborrow Swingline Loans.

(b) To request a Swingline Loan, Borrower shall notify the Agent of such request by telephone
(confirmed by telecopy), not later than 1:00 p.m. on the day of a proposed Swingline Loan. Each
such notice shall be irrevocable and shall specify the requested date (which shall be a Business
Day) and amount of the requested Swingline Loan. The Agent will promptly advise the Swingline
Lender of any such notice received from Borrower. The Swingline Lender shall make each Swingline
Loan available to Borrower by means of a credit to the general deposit account of Borrower with the
Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section
2.4(f) of this Agreement, by remittance to such Issuing Bank) by 3:00 p.m. on the requested date of
such Swingline Loan.

 

- 27 -

 

(c) At any time after making a Swingline Loan, the Swingline Lender may request Borrower to,
and upon request by the Swingline Lender, Borrower shall, promptly request a Revolving Loan from
all Lenders and apply the proceeds of such Revolving Loan to the repayment of any Swingline Loan
owing by Borrower not later than the Business Day following the Swingline Lender’s request.
Notwithstanding the foregoing, and upon the earlier to occur of (i) three (3) Business Days after
demand for payment is made by the Swingline Lender for a Swingline Loan, and (ii) the Revolving
Credit Maturity Date, if such Swingline Loan has not been paid by Borrower, such Swingline Loan
shall bear interest as an ABR Loan and each Lender (other than the Swingline Lender) shall
irrevocably and unconditionally purchase from the Swingline Lender, without recourse or warranty,
an undivided interest and participation in such Swingline Loan in an amount equal to such Lender’s
Applicable Percentage of such Swingline Loan and promptly pay such amount to the Agent for the
account of the Swingline Lender by wire transfer of immediately available funds in the same manner
as provided in Section 2.5 of this Agreement with respect to Loans made by such Lender, and the
Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Lenders.
Each Lender acknowledges and agrees that its obligation to acquire participations in Swingline
Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, shall be made without any offset, abatement, withholding or reduction
whatsoever and such payment shall be made by the other Lenders whether or not an Event of Default
or a Default is then continuing or any other condition precedent set forth in Article III is then
met and whether or not Borrower has then requested a Revolving Loan in such amount. The Agent
shall notify Borrower of any participations in any Swingline Loan acquired pursuant to this
paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Agent and
not to the Swingline Lender. If any Lender fails to make available to the Agent for the account of
the Swingline Lender, any amounts due to the Swingline Lender from such Lender pursuant to this
Section, the Swingline Lender shall be entitled to recover such amount, together with interest
thereon at the Federal Funds Effective Rate for the first three (3) Business Days after Defaulting
Lender receives such notice and thereafter at the rate for ABR Loans, in either case payable (i) on
demand, (ii) by setoff against any payments made to the Swingline Lender for the account of
Defaulting Lender, or (iii) by payment to the Swingline Lender by the Agent of amounts otherwise
payable to Defaulting Lender under this Agreement. The failure of any Lender to make available to
the Agent for the account of the Swingline Lender its Applicable Percentage of any unpaid Swingline
Loan shall not relieve any other Lender of its obligation hereunder to make available to the Agent
for the account of the Swingline Lender, its Applicable Percentage of any unpaid Swingline Loan on
the date such payment is to be made, but no Lender shall be responsible for the failure of any
other Lender to make available to the Agent for the account of the Swingline Lender its Applicable
Percentage of any unpaid Swingline Loan.

2.4 Letters of Credit.

(a) General. Each Issuing Bank agrees, on the terms and conditions hereinafter set
forth, to issue Letters of Credit for the account of the Borrower from time to time on any Business
Day during the period from the Closing Date until two (2) Business Days prior to the Revolving
Credit Maturity Date (A) in an aggregate Available Amount for all Letters of Credit, not to exceed
at any time such Issuing Bank’s Letter of Credit Commitment at such time, and (B) in an Available
Amount for each such Letter of Credit not to exceed an amount equal to the Unused Revolving Credit
Commitments of the Lenders at such time. Within the limits of the Letter of Credit Facility, and
subject to the limits referred to herein, the Borrower may request the issuance of Letters of
Credit under this Section, repay any LC Disbursements resulting from drawings under Letters of
Credit pursuant to Section 2.4(f) and request the issuance of additional Letters of Credit under
Section 2.4(c). In the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of letter of credit application or other
agreement submitted by Borrower to, or entered into by Borrower with, the Issuing Bank relating to
any Letter of Credit, the terms and conditions of this Agreement shall control.

 

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(b) Letter of Credit Fees. The Issuing Bank shall have the right to receive, solely
for its own account, and Borrower shall pay on demand with respect to any Letter of Credit the
Issuing Bank’s reasonable and customary administrative, issuance, amendment, drawing and
negotiation charges in connection with letters of credit. The Issuing Bank shall also be paid a
fronting fee which shall accrue at the rate of 0.125% per annum on the average daily amount of the
LC Exposure (excluding any portion thereof attributable to Unreimbursed LC Disbursements)
attributable to Letters of Credit issued by the Issuing Bank during the Availability Period
(“Fronting Fee”). The Fronting Fee shall be payable to the Issuing Bank quarterly in arrears on
the first day of each quarter following the Closing Date. For each day during (i) the period
beginning on the date of this Agreement and ending September 30, 2011, (ii) each full calendar
quarter thereafter during the term of this Agreement and (iii) the period beginning on the first
day of the calendar quarter containing the Revolving Credit Maturity Date and ending on the day
before the Revolving Credit Maturity Date, the Borrower shall pay, on the first Business Day
following each such calendar quarter or other time period, to the Agent for the account of each
Lender participating in such Letters of Credit a non-refundable letter of credit fee equal to such
Lender’s Applicable Percentage, on such day, of the product obtained by multiplying (A) that
portion of LC Exposure representing the aggregate Available Amount of Letters of Credit on such day
first by (B) the Applicable Margin then in effect for Libor Loans and then by (C) 1/360.

(c) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions; Reports.
(i) To request the issuance of a Letter of Credit other than the IRB Letters of Credit or the
Existing Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of
Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Agent
(at least two (2) Business Days in advance of the requested date of issuance, amendment, renewal or
extension for a Letter of Credit) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of
issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such
Letter of Credit is to expire (which
shall comply with paragraph (d) of this Section), the Available Amount of such Letter of
Credit, the Applicable Currency, the name and address of the beneficiary thereof, the purpose for
which such Letter of Credit is to be issued, and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. Such notice, to be effective, must be
received by the Issuing Bank not later than 2:00 p.m. or the time agreed upon by such Issuing Bank
and the Borrower on the last Business Day on which such notice can be given under this Section
2.4(c). If requested by the Issuing Bank, the Borrower also shall submit a letter of credit
application on such Issuing Bank’s standard form in connection with any request for a Letter of
Credit.

 

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(ii) A Letter of Credit shall be issued, amended, renewed or extended only if, (x) after
giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not
exceed the Letter of Credit Commitment, and (ii) the sum of the total Revolving Credit Exposures
shall not exceed the Total Revolving Credit Commitment, and the Revolving Credit Exposure of any
Lender shall not exceed such Lender’s Revolving Credit Commitment (y) as of the date of such
issuance amendment, renewal or extension, no order, judgment or decree of any court, arbitrator or
Governmental Authority shall purport by its terms to enjoin or restrain the Issuing Bank from
issuing the Letter of Credit and no law, rule or regulation applicable to the Issuing Bank and no
request or directive (whether or not having the force of law) from any Governmental Authority with
jurisdiction over the Issuing Bank shall prohibit or request that the Issuing Bank refrain from the
issuance of letters of credit generally or the issuance of that Letter of Credit. Unless the
Issuing Bank has been notified by the Agent or the Required Lenders in writing that a Default or an
Event of Default has occurred and is continuing, in which case the Issuing Bank shall have no
obligation to issue, amend, renew or extend any Letter of Credit until such notice is withdrawn by
the Agent or the Required Lenders or such Default or Event of Default has been effectively waived
in accordance with the provisions of this Agreement, the Issuing Bank shall, upon fulfillment of
the applicable conditions set forth in Article III, make such Letter of Credit available to the
Borrower as agreed between the Issuing Bank and the Borrower in connection with such issuance.

(iii) The Issuing Bank shall furnish (i) to the Agent on the first Business Day of each week a
written report summarizing issuance and expiration dates of Letters of Credit issued during the
previous week and drawings during such week under all Letters of Credit, (ii) to the Agent, the
Borrower, and each Lender on the first Business Day of each month a written report summarizing
issuance and expiration dates of Letters of Credit issued during the preceding month and drawings
during such month under all Letters of Credit, and (iii) to the Agent, the Borrower, and each
Lender on the first Business Day of each calendar quarter a written report setting forth the
average daily aggregate Available Amount during the preceding calendar quarter of all Letters of
Credit.

(d) Expiration Date. No Letter of Credit shall have an expiration date (including all
rights of the Borrower or the beneficiary to require renewal) later than one (1) Business Day prior
to the Revolving Credit Maturity Date. The foregoing notwithstanding, any standby Letter of Credit
may, by its terms, be renewable annually upon notice (a “Notice of Renewal”) given to the Issuing
Bank and the Agent on or prior to any date for notice of renewal set forth in such Letter of Credit
(but in any event at least two (2) Business Days prior to the date of the proposed renewal of such
standby Letter of Credit) and upon fulfillment of the
applicable conditions set forth in Article III unless the Issuing Bank shall have notified the
Borrower (with a copy to the Agent) on or prior to the date for notice of termination set forth in
such Letter of Credit (but in any event at least thirty (30) Business Days prior to the date of
automatic renewal) of its election not to renew such standby Letter of Credit (a “Notice of
Termination”); provided that the terms of each standby Letter of Credit that is automatically
renewable annually shall not permit the expiration date (after giving effect to any renewal) of
such standby Letter of Credit in any event to be extended to a date later than one (1) Business Day
before the Revolving Credit Maturity Date. If either a Notice of Renewal is not given by the
Borrower or a Notice of Termination is given by the Issuing Bank pursuant to the immediately
preceding sentence, such standby Letter of Credit shall expire on the date on which it otherwise
would have been automatically renewed; provided, however, that even in the absence of receipt of a
Notice of Renewal, the Issuing Bank may, in its discretion unless instructed to the contrary by the
Agent or the Borrower, deem that a Notice of Renewal had been timely delivered and, in such case, a
Notice of Renewal shall be deemed to have been so delivered for all purposes under this Agreement.

 

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(e) Participations. (i) Immediately upon issuance by the Issuing Bank of any Letter
of Credit in accordance with the procedures set forth in Section 2.4(c) of this Agreement, each
Lender shall be deemed to have irrevocably and unconditionally purchased and received from the
Issuing Bank, without recourse or warranty, an undivided interest and participation equal to its
Applicable Percentage of such Letter of Credit (including, without limitation, all obligations of
the Borrower with respect thereto) and any security therefor or guaranty pertaining thereto.

(ii) In the event that the Issuing Bank makes any LC Disbursement and the Borrower shall not
have repaid such amount to the Issuing Bank pursuant to Section 2.4(f) of this Agreement, the
Issuing Bank shall promptly notify the Agent and each Lender of such failure, and each Lender shall
promptly and unconditionally pay to the Agent for the account of the Issuing Bank the amount of
such Lender’s Applicable Percentage of the unreimbursed amount of any LC Disbursement in the same
manner as provided in Section 2.5 of this Agreement with respect to Revolving Loans made by such
Lender and the Agent shall promptly pay to such Issuing Bank the amounts so received by it from the
Lenders.

(iii) If any Lender fails to make available to the Issuing Bank any amounts due to the Issuing
Bank pursuant to this Section 2.4(e), the Issuing Bank shall be entitled to recover such amount,
together with interest thereon, at the Federal Funds Effective Rate for the first three (3)
Business Days after Defaulting Lender receives such notice and thereafter at the rate for ABR
Loans, in either case payable (i) on demand, (ii) by setoff against any payments made to such
Issuing Bank for the account of Defaulting Lender or (iii) by payment to the Issuing Bank by the
Agent of amounts otherwise payable to Defaulting Lender under this Agreement. The failure of any
Lender to make available to the Agent for the account of the Issuing Bank its Applicable Percentage
of the unreimbursed amount of any LC Disbursement shall not relieve any other Lender of its
obligation hereunder to make available to the Agent for the account of the Issuing Bank its
Applicable Percentage of the unreimbursed amount of any LC Disbursement on the date such payment is
to be made, but no Lender shall be responsible for the failure of any other Lender to make
available to the Agent for the account of
the Issuing Bank its Applicable Percentage of the unreimbursed amount of any LC Disbursement
on the date such payment is to be made.

(iv) Whenever the Issuing Bank receives a payment on account of an LC Disbursement, including
any interest thereon, it shall promptly pay to each Lender which has funded its participating
interest therein, in like funds as received an amount equal to such Lender’s pro rata share thereof
based on the amount funded.

(v) The obligations of a Lender to make payments to the Agent for the account of the Issuing
Bank with respect to LC Disbursements shall be absolute, unconditional and irrevocable, not subject
to any counterclaim, set-off, qualification or exception whatsoever and shall be made in accordance
with the terms and conditions of this Agreement under all circumstances, whether or not an Event of
Default or a Default is then continuing.

 

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(vi) In the event any payment by Borrower received by the Agent with respect to a Letter of
Credit and distributed by the Agent to the Lenders on account of their participations is thereafter
set aside, avoided or recovered from the Agent in connection with any receivership, liquidation,
reorganization or bankruptcy proceeding, each Lender which received such distribution shall, upon
demand by the Agent, contribute such Lender’s Applicable Percentage of the amount set aside,
avoided or recovered together with interest at the rate required to be paid by the Agent upon the
amount required to be repaid by it.

(f) Reimbursement. If the Issuing Bank shall make any LC Disbursement, the Borrower
shall reimburse such LC Disbursement by paying to the Agent for the account of the Issuing Bank an
amount equal to such LC Disbursement not later than 12:00 Noon on the date that such LC
Disbursement is made, if the Borrower shall have received notice by telephone or otherwise of such
LC Disbursement prior to 10:00 a.m. on such date, or, if such notice has not been received by the
Borrower prior to such time on such date, then not later than 12:00 Noon on (i) the Business Day
that the Borrower receives such notice, if such notice is received prior to 10:00 a.m. on the day
of receipt, or (ii) the Business Day immediately following the day that the Borrower receives such
notice, if such notice is not received prior to such time on the day of receipt; provided
that the Borrower may, subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.1 or 2.3 of this Agreement that such payment be financed with an ABR Loan
or Swingline Loan in an equivalent amount and, to the extent so financed, the Borrower’s obligation
to make such payment shall be discharged and replaced by the resulting ABR Loan or Swingline Loan.

(g) Obligations Absolute. The Borrower’s obligations to reimburse LC Disbursements as
provided in paragraph (f) of this Section shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other document that does
not comply strictly with the terms of such Letter of Credit so long as it complies in all material
respects, (iv) the existence of any claim, set-off, defense or other right
which Borrower or any Subsidiary may have at any time against the beneficiary named in a
Letter of Credit or any transferee of any Letter of Credit (or any Person for whom any such
transferee may be acting), the Issuing Bank, any Lender, any other Person, whether in connection
with this Agreement, any Letter of Credit, the transactions contemplated herein or any unrelated
transaction (including any underlying transactions between Borrower, any Subsidiary and the
beneficiary named in any Letter of Credit), (v) the occurrence of any Event of Default or Default,
or (vi) any other event or circumstance whatsoever, whether or not similar to any of the foregoing,
that might, but for the provisions of this Section, constitute a legal or equitable discharge of,
or provide a right of setoff against, the Borrower’s obligations hereunder. As among the Borrower,
the Issuing Bank and the Lenders, the Borrower assumes all risks of the acts and omissions of, or
misuse of the Letters of Credit by, the respective beneficiaries of the Letters of Credit requested
by it. In furtherance and not in limitation of the foregoing, the Issuing Bank and the Lenders
shall not be responsible for (i) the form, validity,

 

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sufficiency,
accuracy, genuineness or legal
effect of any document submitted by any party in connection with the application for and issuance
of any Letter of Credit, even if it should in fact prove to be in any or all respect invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason; (iii) failure of the beneficiary of a Letter of Credit to comply fully
with conditions required in order to draw upon such Letter of Credit so long as such beneficiary is
in material compliance with such conditions; (iv) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise; (v) errors
in interpretation of technical terms; (vi) misapplication by the beneficiary of a Letter of Credit
of the proceeds of any drawing under such Letter of Credit; or (vii) any consequences arising from
causes beyond the control of the Issuing Bank or the Lenders. In addition to amounts payable as
elsewhere provided in this Section 2.4, Borrower hereby agrees to protect, indemnify, pay and save
the Agent, the Issuing Bank and each Lender harmless from and against any and all claims, demands,
liabilities, damages, losses, posts, charges and expenses (including reasonable attorneys’ fees)
arising from the claims of third parties against the Agent or the Issuing Bank in respect of any
Letter of Credit requested by the Borrower. In furtherance and extension and not in limitation of
the specific provisions hereinabove set forth, any action taken or omitted by the Issuing Bank or
any Lender under or in connection with the Letters of Credit or any related certificates, if taken
or omitted in good faith, shall not put the Issuing Bank, the Agent or such Lender under any
resulting liability to Borrower or relieve Borrower of any of their obligations hereunder to the
Issuing Bank, the Agent or any Lender. Notwithstanding anything to the contrary contained in this
Section 2.4(g), Borrower shall not have any obligations to indemnify the Issuing Bank under this
Section 2.4(g) in respect of any liability incurred by the Issuing Bank that is found in a final
judgment by a court of competent jurisdiction to have resulted primarily from the Issuing Bank’s
own gross negligence or willful misconduct, unless such action or inaction on the part of the
Issuing Bank which gave rise to the liability was taken at the request of Borrower or from the
wrongful failure to pay the Letter of Credit except if pursuant to an order from a Governmental
Authority (even if such order is later invalidated).

(h) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. The Issuing Bank shall promptly notify the Agent and the
Borrower by telephone (confirmed by telecopy) of such demand for payment and whether the Issuing
Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or
delay in giving such notice shall not relieve the Borrower of the Borrower’s obligation to
reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.

(i) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then
regardless of the time of Borrower’s receipt of notice of such LC Disbursement, unless the Borrower
shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid
amount thereof shall bear interest, for each day from and including the date such LC Disbursement
is made to, but excluding, the date that Borrower reimburses such LC Disbursement, at the rate per
annum then applicable to ABR Loans; provided that, if the Borrower fails to reimburse such LC
Disbursement when due pursuant to paragraph (f) of this Section, then the default interest rate set
forth in Section 2.6(c) of this Agreement shall apply. Interest accrued pursuant to this paragraph
shall be for the account of such Issuing Bank, except that interest accrued on and after the date
of payment by any Lender pursuant to paragraph (e)(ii) or (e)(iii) of this Section to reimburse
such Issuing Bank shall be for the account of such Lender to the extent of such payment.

 

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(j) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the Borrower, the Agent, the replaced Issuing Bank and the successor
Issuing Bank. The Agent shall notify the Lenders of any such replacement of the Issuing Bank. At
the time any such replacement shall become effective, the Borrower shall pay all unpaid fees
accrued for the account of the replaced Issuing Bank. From and after the effective date of any
such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and
(ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to
any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context
shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall
remain a party hereto and shall continue to have all the rights and obligations of the Issuing Bank
under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but
shall not be required to issue additional Letters of Credit.

(k) Cash Collateralization.

(i) Upon an Event of Default. If any Event of Default shall occur and be continuing,
on the Business Day that the Borrower receives notice from the Agent or the Required Lenders (or,
if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing greater
than fifty percent (50%) of the total LC Exposure) demanding the deposit of Cash Collateral
pursuant to this paragraph, the Borrower shall deposit Cash Collateral in an interest bearing
account with the Agent in an amount equal to the LC Exposure as of such date plus any accrued and
unpaid interest thereon; provided that the obligation to deposit such Cash Collateral shall become
effective immediately, and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default described in Section 7.1(d)
or (e) of this Agreement. Such deposit shall be held by the Agent as Collateral for the payment
and performance of the obligations of the Borrower under
this Agreement. The Agent shall have exclusive dominion and control, including the exclusive right
of withdrawal, over such deposit. Other than any interest earned on the interest-bearing account
or on any investment of such deposits, which investments shall be made at the option and sole
discretion of the Agent and at the Borrower’s risk and expense, such deposits shall not bear
interest. Interest or profits, if any, on such investments shall accumulate in such account.
Moneys in such account shall be applied by the Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held
for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such
time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders
with LC Exposure representing greater than fifty percent (50%) of the total LC Exposure), be
applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is
required to provide an amount of Cash Collateral hereunder as a result of the occurrence of an
Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the
Borrower within three Business Days after all Events of Default have been cured or waived.

 

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(ii) Defaulting Lenders. At any time that there shall exist a Defaulting Lender,
within one Business Day following the written request of the Agent, the Borrower shall Cash
Collateralize the Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender
(determined after giving effect to Section 2.15(c) and any Cash Collateral provided by such
Defaulting Lender) in an amount not less than 105% of the Fronting Exposure of the Issuing Bank
with respect to Letters of Credit issued and outstanding at such time (the “Minimum Collateral
Amount”). The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting
Lender, hereby grants to the Agent, for the benefit of itself, and agrees to maintain, a first
priority security interest in all such Cash Collateral as security for the Defaulting Lender’s
obligation to fund participations in respect of LC Disbursements, to be applied as provided below.
If at any time the Agent determines that Cash Collateral is subject to any right or claim of any
Person other than the Agent as herein provided, or that the total amount of such Cash Collateral is
less than the Minimum Collateral Amount, the Borrower will, promptly upon demand by the Agent, pay
or provide to the Agent additional Cash Collateral in an amount sufficient to eliminate such
deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).
Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided
under this Section 2.4(k)(ii) or Section 2.15 in respect of Letters of Credit shall be applied to
the satisfaction of the Defaulting Lender’s obligation to fund participations in respect of LC
Disbursements (including, as to Cash Collateral provided by a Defaulting Lender, any interest
accrued on such obligation) for which the Cash Collateral was so provided, prior to any other
application of such property as may otherwise be provided for herein. Cash Collateral (or the
appropriate portion thereof) provided to reduce the Issuing Bank’s Fronting Exposure shall no
longer be required to be held as Cash Collateral pursuant to this Section 2.4(k)(ii) following (A)
the elimination of the applicable Fronting Exposure (including by the termination of Defaulting
Lender status of the applicable Lender), or (B) the determination by the Agent that there exists
excess Cash Collateral; provided that, subject to Section 2.15 the Person providing Cash Collateral
and the Agent may agree that Cash Collateral shall be held to support future anticipated Fronting
Exposure or other obligations.

(l) Existing Letter of Credit. The Existing Letter of Credit will remain in effect as
a “Letter of Credit” hereunder. The per annum fee applicable thereto will be
payable quarterly in arrears to the Issuing Bank, on the first day of each fiscal quarter of
Borrower while such letter of credit is outstanding, and will be initially determined on the date
of this Agreement, and adjusted on the first day of each fiscal quarter of the Borrower thereafter,
based on and equal to, the then applicable Applicable Margin for the Libor Rate Option for and
calculated on the basis of a 360-day year and actual days elapsed. The Existing Letter of Credit
shall also be subject to HSBC Bank’s normal and customary amendment and drawing fees upon the
occurrence of such events. The applicable reimbursement agreement (as may have been previously
modified) for the Existing Letter of Credit shall remain in full force and effect and shall
continue to govern the Existing Letter of Credit.

 

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(m) IRB Letters of Credit. The IRB Letters of Credit will remain in effect each as a
“Letter of Credit” hereunder. The stand-by letter of credit fees applicable to the IRB Letters of
Credit on the first day of each fiscal quarter of Borrower thereafter, based on and equal to, the
then applicable Applicable Margin for the Libor Rate Option for and calculated on the basis of a
360-day year and actual days elapsed, and shall be payable quarterly in arrears on the first day of
each fiscal quarter of the Borrower while such letters of credit are outstanding. The related
reimbursement agreements and bond documents (as may have been previously modified), shall remain in
full force and effect and shall continue to govern the IRB Letters of Credit.

2.5 Funding of Borrowings. (a) Each Loan and each participation in Swingline Loans or
Letters of Credit shall be funded by the Lenders pro rata in all respects according to their
respective Commitments. Each Lender shall fund its Applicable Percentage of each Loan to be made
hereunder on the proposed date thereof by wire transfer of immediately available funds by 2:00
p.m., in the case of Revolving Loans or Term Loans, to the account most recently designated by the
Agent for such purpose by notice to the Lenders; provided that Swingline Loans
shall be made as provided in Section 2.3 hereof. The Agent will make such Loans available to the
Borrower by promptly crediting the amounts so received, in like funds, to the Loan Account;
provided that ABR Loans made to finance the reimbursement of an LC Disbursement as
provided in Section 2.4(f) of this Agreement shall be remitted by the Agent to the appropriate
Issuing Bank and that Loans made to repay Swingline Loans as provided in Section 2.3 of this
Agreement shall be remitted by the Agent to the Swingline Lender.

(b) Unless the Agent shall have received notice from a Lender in accordance with Section 10.5
of this Agreement that such Lender will not make available to the Agent such Lender’s share of such
borrowing, the Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make
available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made
its share of the applicable borrowing available to the Agent, then the Defaulting Lender and the
Borrower severally agree to pay to the Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Agent, at (i) in the case of Defaulting
Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Agent in
accordance with banking industry rules on interbank compensation or (ii) in the case of the
Borrower, the interest rate applicable to ABR
Loans. If a Defaulting Lender pays such amount to the Agent, then such amount, less any
interest paid from such amount to the Agent, shall constitute such Lender’s Loan included in such
borrowing. Any Defaulting Lender shall pay on demand to the Borrower the amount equal to the
excess of the interest actually paid by the Borrower to the Agent over the interest which would
have otherwise been payable by the Borrower to such Defaulting Lender had such Defaulting Lender
funded its share of the applicable borrowing, plus interest on such amount at the rate applicable
to ABR Loans.

(c) The obligation of each Lender hereunder to fund its Applicable Percentage of each Loan, to
fund participations in Letters of Credit and Swingline Loans and to make payments pursuant to
Section 9.11 are several and not joint. The failure of any Lender to fund its Applicable
Percentage of each Loan, to fund any such participation or to make any payment under Section 9.11
on any date required hereunder shall not relieve any other Lender of its corresponding obligation
to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so
fund its Applicable Percentage, to purchase its participation or to make its payment under Section
9.11.

 

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2.6 Interest.

(a) Rates. (i) The Revolving Notes shall bear interest until paid in full on the
balance of principal thereof from time to time unpaid, payable in arrears on the first day of each
quarter for interest accrued during the preceding quarter in the case of ABR Loans and in the case
of Libor Loans payable in arrears on the last day of the applicable Interest Period, and in the
case of an Interest Period in excess of three months also payable on the dates that are
successively three months after the commencement of such Interest Period. The Revolving Loans
shall bear interest in accordance with the Rate Option selected by the Borrower pursuant to the
terms hereof.

(ii) The Swingline Note shall bear interest until paid in full payable monthly in arrears on
the first day of each month for interest accrued during the preceding month on the balance of
principal from time to time unpaid. The Swingline Loan shall bear interest as provided in Sections
2.3(a) and 2.6(b)(ii) of this Agreement.

(iii) The Term Loan Notes shall bear interest until paid in full on the balance of principal
thereof from time to time unpaid, payable in arrears on the first day of each quarter for interest
accrued during the preceding quarter in the case of ABR Loans and in the case of Libor Loans
payable in arrears on the last day of the applicable Interest Period, and in the case of an
Interest Period in excess of three months also payable on the dates that are successively three
months after the commencement of such Interest Period. The Term Loans shall bear interest in
accordance with the Rate Option selected by the Borrower pursuant to the terms hereof.

(b) Rate Options. (i) Unless the Borrower has selected a Libor Rate in accordance
with the provisions of this Agreement, the Borrower shall be deemed to have selected the ABR Option
to apply to any portion of a Revolving Note or Term Note not subject to a Libor Rate, and such rate
shall continue in effect until the earlier of when a Libor Rate and
Interest Period are available and properly selected, or until the applicable Revolving Note or
Term Note is paid in full.

Notice by the Borrower of the selection of a Libor Rate or Interest Period for any Revolving
Loan or Term Loan, the amount subject thereto, and the applicable Interest Periods shall be
irrevocable. Such notice may be given to the Agent by a duly completed Request Certificate
executed by an Authorized Officer of the Borrower.

(ii) The Swingline Note shall bear interest at the ABR Option then in effect and such rate
shall continue until the Swingline Note is paid in full.

 

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(c) Default Rate. Upon notice to the Borrower by the Agent of the occurrence of an
Event of Default (which notice the Agent shall be obligated to give at the direction of the
Required Lenders) and during the continuance thereof and after maturity, whether by acceleration or
otherwise, the Revolving Notes, the Term Notes and Swingline Note shall bear interest at the
applicable Default Rate. Overdue fees and other amounts payable by the Borrower under this
Agreement other than principal (“Overdue Amounts”) shall also bear interest at the applicable
Default Rate. In no event shall the rate of interest on the Revolving Notes, Term Notes or the
Swingline Note, or the rate of interest applicable to Overdue Amounts, exceed the maximum rate of
interest authorized by law.

(d) Late Charge. Upon notice to the Borrower by the Agent of the failure to make any
regularly scheduled payment of interest or principal on any Revolving Loan or Term Loan within ten
(10) days of the due date thereof (which notice the Agent shall be obligated to give at the
direction of the Required Lenders), the Borrower promises to pay to the Agent for the benefit of
the Lenders a late charge equal to five percent (5%) of the amount of any such overdue amount.

(e) Computation of Interest. Interest on ABR Loans shall be calculated on the basis
of a year of 365 days, or 366 days during a leap year, for the actual number of days elapsed.
Interest on Libor Loans shall be calculated on the basis of the actual number of days elapsed in a
year of 360 days, which will result in a higher effective annual rate. If any of the Notes are not
paid when due, whether because such Notes become due on a Saturday, Sunday or bank holiday or for
any other reason, the Borrower will pay interest thereon at the aforesaid rate until the date of
actual receipt of payment by the holder of the Notes.

(f) Rate Conversions and Continuations. For any Revolving Loan or Term Loan, the
Borrower may elect to convert any portion of (i) an ABR Loan to a Libor Loan, or (ii) a Libor Loan
to an ABR Loan, or to continue any Libor Loan or ABR Loan as a new loan of the same Type;
provided, however, Libor Loans may only be converted to ABR Loans or continued on
the expiration date of the applicable Interest Period.

Subject to the foregoing, with respect to a Revolving Loan or Term Loan, the Borrower may
elect to convert any ABR Loan to a Libor Loan, or, to continue a Libor Loan as a new Libor Loan, by
Borrower giving irrevocable notice of such election to the Agent by 1:00 p.m. at least two (2)
Business Days prior to the requested rate change date and, in the case of any Libor Loan, such
conversion or continuation shall take place on the last day of the applicable
Interest Period with respect to the Revolving Loan or Term Loan being so converted or
continued. Such notice may be given by a duly completed and executed Request Certificate. Each
such request to convert or continue shall include the requested rate change date (which shall be a
Business Day), the Rate Option selected, and the amount to be converted or continued (which shall
be in a principal amount of $100,000 or more and in whole multiples of $100,000 in the case of
conversion to, or continuation as, a Libor Loan). If no Event of Default or Default is then
existing at such time, and the Borrower is in compliance with the terms of this Agreement as
evidenced by the Agent’s receipt of a properly completed and executed Request Certificate, such
conversion or continuation shall be made on the requested rate change date, subject to the
foregoing limitations in connection with the conversion or continuation of Libor Loans.

The Agent shall not incur any liability to Borrower in acting upon any telephonic notice which
the Agent believes to have been given by a duly authorized officer or other designated
representative of Borrower, and which is confirmed by delivery to the Agent from the Borrower or
the Borrower of a written or facsimile notice signed by Borrower or the Borrower, or for otherwise
acting in good faith hereunder.

 

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2.7 Prepayments and Payments.

(a) Optional Prepayments.

(i) ABR Loans. Borrower shall have the right to prepay at any time without premium
all or any portion of the ABR Loans.

(ii) Libor Loans. Borrower shall have the right to prepay without premium all or any
portion of the Libor Loans on the expiration day of the applicable Interest Period. If any Libor
Loan is prepaid at any other time, Borrower shall pay to the applicable Lender an amount equal to
the Breakage Fee within 10 days of notice thereof from the Agent, setting forth the amount of such
Breakage Fee.

All prepayments of the Revolving Loans or Term Loans shall be subject to a minimum amount of
$100,000, and incremental multiples of $100,000 thereafter. The proceeds of any optional
prepayments on the Term Loans paid to or for the account of the Lenders shall be applied by the
Lender entitled thereto on the applicable Indebtedness hereunder, without any premium or penalty
(except for applicable Breakage Fees), first to accrued interest, fees and expenses payable on the
Term Loans, then to principal of the Term Loans in either the chronological order of the scheduled
maturities thereof or the inverse order of the scheduled maturities thereof as so directed by
Borrower.

(b) Mandatory Prepayments.

(i) Net Proceeds. Borrower shall make a mandatory prepayment to the Agent for the
account of the Lenders in accordance with their Applicable Percentages, promptly upon receipt
thereof, equal to all (100%) of the Net Proceeds received by the Borrower or any Subsidiary from
(i) any Asset Sale (other than as described in (ii) hereof) in excess of $10,000,000 unless the
proceeds of such sale are reinvested in assets within one hundred twenty (120) days of the
occurrence of such Asset Sale; (ii) property insurance,
condemnation and similar recoveries (excluding business interruption insurance) other than
such recoveries that, within ninety (90) days after receipt thereof, are applied in the ordinary
course of business toward repair or replacement of the damaged property or such longer reasonable
time period as determined under the Borrower’s plan of restoration or replacement for such property
established within a ninety (90) day period after such occurrence provided such plan is acceptable
to the Agent in its reasonable judgment; and (iii) the reversion of Plan assets from an over-funded
Plan, but only to the extent of such over-funding. Borrower shall give to the Agent written notice
of the occurrence of an event requiring a mandatory prepayment hereunder promptly, but not later
than within thirty (30) days after the occurrence of such an event.

 

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(ii) Revolving Credit Commitments Exceeded. If on any date, the Revolving Credit
Exposures of the Lenders exceed the Total Revolving Credit Commitment, or the Revolving Credit
Exposure of any Lender exceeds such Lender’s Revolving Credit Commitment, or the aggregate
principal amount of Swingline Loans exceeds the Swingline Commitment, or the total LC Exposure
exceeds the Letter of Credit Commitment, then in each case the Borrower shall, upon request
made by the Agent, prepay on such date the principal amount of Loans in an aggregate amount equal
to such excess or, in the case where total LC Exposure exceeds the Letter of Credit Commitment, pay
to the Agent an amount in cash equal to such excess to be held as security for the reimbursement
obligations of the Borrower in respect of Letters of Credit pursuant to a cash collateral agreement
to be entered into in form and substance reasonably satisfactory to the Agent, the Borrower and the
Issuing Bank.

In the event of any repayment or prepayment of any Loan (other than a repayment or prepayment
of an ABR Loan prior to the end of the Availability Period with no related Revolving Credit
Commitment reduction), the Borrower shall pay all accrued interest on the principal amount repaid
or prepaid on the date of such repayment or prepayment.

The proceeds of any mandatory prepayments paid to or for the account of the Lenders as
provided herein shall be applied by the Lender entitled thereto on the applicable Indebtedness
hereunder, without any premium or penalty (except for applicable Breakage Fees), first to accrued
interest, fees and expenses payable on the Term Loans and the Revolving Loans, then to principal of
the Term Loans in the inverse order of the scheduled maturities thereof, then to principal of the
Revolving Loans.

2.8 Use of Proceeds. Borrower covenants to the Lenders that Borrower will use the proceeds
borrowed under the Revolving Credit to refinance the indebtedness of Borrower under the Existing
Agreement; and for Borrower’s ongoing working capital and business requirements including Permitted
Acquisitions.

2.9 Alternate Rate of Interest. If prior to the commencement of any Interest Period for a
Libor Loan:

(a) the Agent determines (which determination shall be conclusive absent manifest error) that
adequate and reasonable means do not exist for ascertaining the Libor Rate, as applicable, for such
Interest Period; or

(b) the Agent is advised by the Required Lenders that the Libor Rate Option or the Libor Rate,
as applicable, for such Interest Period will not adequately and fairly reflect the cost to such
Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Libor Loan
for such Interest Period;

then the Agent shall give notice thereof to the Borrower and the Lenders by telephone or facsimile
as promptly as practicable thereafter and, until the Agent notifies the Borrower and the Lenders
that the circumstances giving rise to such notice no longer exist, (i) any request to convert or
continue any Loan to or as a Libor Loan shall be ineffective, and (ii) any requested new Loan shall
be made as an ABR Loan.

 

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2.10 Increased Costs. (a) If any Change in Law shall:

(1) impose, modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by, any Lender (except
any such reserve requirement reflected in the Libor Rate) or the Issuing Bank; or

(2) impose on any Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Libor Loans made by such Lender or any Letter of Credit or
participation therein; or

(3) subject any Recipient to any Taxes (other than Excluded Taxes) on its loans, letters of
credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital
attributable thereto;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other
Recipient of making or maintaining any Libor Loan (or of maintaining its obligation to make any
such Loan) or to increase the cost to such Lender or the Issuing Bank of participating in, issuing
or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by
such Lender or the Issuing Bank (whether of principal, interest or otherwise), then the Borrower
will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts
as will compensate such Lender or the Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

(b) If any Lender or the Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or the
Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below
that which such Lender or the Issuing Bank or such Lender’s or
the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the
Issuing Bank’s holding company with respect to capital adequacy, and provided such Change in Law
has or would have a similar effect on Lender as a consequence of other similarly situated credits
of Lender), then from time to time the Borrower will pay to such Lender or the Issuing Bank, as the
case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank
or such Lender’s or the Issuing Bank’s holding company for any such reduction suffered.

(c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section 2.10 shall be delivered to the Borrower and
shall be conclusive absent manifest error. The Borrower shall pay such Lender or the Issuing Bank,
as the case may be, the amount shown as due on any such certificate within ten (10) days after
receipt thereof.

(d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right
to demand such compensation; provided that the Borrower shall not be required to compensate a
Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions incurred
more than 180 days prior to the date that such Lender or the Issuing Bank, as the case may be,
notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s or the Issuing Bank’s intention to claim compensation therefor; provided further
that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then
the 180-day period referred to above shall be extended to include the period of retroactive effect
thereof.

 

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2.11 Taxes. If any Taxes shall be payable, or ruled to be payable, by or to any
Governmental Authority, by, or in respect of any amount owing to, any Lender which has complied
with Section 9.18 of this Agreement, relating to any of the transactions contemplated by this
Agreement (including, but not limited to, execution, delivery, performance, enforcement, or payment
of principal or interest of or under the Notes or the making of any Libor Loan), by reason of any
now existing or hereafter enacted statute, rule, regulation or other determination, the Borrower
will:

(a) pay on written request therefor all such Taxes to the relevant Governmental Authority in
accordance with applicable laws, including interest and penalty, if any,

(b) promptly furnish the Agent and the Lenders with evidence of any such payment, and

(c) indemnify and hold the Agent and the Lenders and any holder or holders of the Notes
harmless and indemnified against any liability or liabilities with respect to any Indemnified Taxes
or Other Taxes withheld or deducted by the Borrower or the Agent or
paid by the Agent or the Lender, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto.

Without prejudice to the survival of any other agreement of the Borrower under this Agreement, the
agreement and obligations of the Borrower contained in this Section 2.11 shall survive the
termination of this Agreement.

2.12 Commitment Fee. For each day during (i) the period beginning on the date of this
Agreement and ending September 30, 2011, (ii) each full calendar quarter thereafter during the term
of this Agreement and (iii) the period beginning on the first day of the calendar quarter
containing the Revolving Credit Maturity Date and ending on the day before the Revolving Credit
Maturity Date, the Borrower shall pay, on demand, following each such calendar quarter or other
time period, to the Agent for the account of each Lender a fee equal to the sum of the Applicable
Commitment Fee Rate times the actual average daily amount by which the Total Revolving
Credit Commitment on each such day exceeds the sum of (x) the outstanding amount of Revolving Loans
and (y) the outstanding amount of the total LC Exposure of the Lenders multiplied by 1/360.

2.13 Revolving Credit Commitment Termination and Reduction.

(a) Unless previously terminated, the Revolving Credit Commitment shall terminate on the
Revolving Credit Maturity Date.

 

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(b) The Borrower may, at any time by three (3) Business Days prior written notice from the
Borrower to the Agent, state the Borrower’s desire to reduce the Maximum Limit to any amount which
is not less than the aggregate of the then outstanding principal amount of Revolving Loans,
Swingline Loans and the aggregate Available Amount of all Letters of Credit outstanding at such
time, if any. Any reductions of the Maximum Limit shall not be reinstated at any future date and
any partial reduction shall be in the amount of $1,000,000 and in incremental multiples of
$1,000,000 thereafter. Two Business Days after receipt of such reduction notice, the obligation of
the Lenders to make Revolving Loans hereunder or purchase participations in Swingline Loans or
Letters of Credit hereunder shall be limited to the Maximum Limit as reduced pursuant to said
notice. Any such reduction of the Revolving Credit Commitment shall be accompanied by payment of
any applicable Breakage Fees.

2.14 Payments.

(a) All payments of interest, principal, fees and other expenses by the Borrower under this
Agreement unless otherwise specified shall be made in lawful currency of the United States of
America, and in immediately available funds without counterclaim or setoff.

(b) Any and all payments by or on account of any obligation of the Borrower hereunder shall to
the extent permitted by applicable laws be made free and clear of and without deduction or
withholding for any Taxes. If, however, applicable laws require the Borrower or the Agent to
withhold or deduct any Tax, such Tax shall be withheld or deducted in accordance with such laws as
determined by the Borrower or the Agent, as the case may be, upon the basis of the information and
documentation to be delivered pursuant to Section 9.18 of this Agreement.

(c) If the Borrower or the Agent shall be required by the Code to withhold or deduct any Taxes
from any payment, then (i) the Agent shall withhold or make such deductions as are determined by
the Agent to be required based upon the information and documentation it has received pursuant to
Section 9.18 of this Agreement (ii) the Agent shall timely pay the full amount withheld or deducted
to the relevant governmental authority in accordance with the Code, and (iii) to the extent that
the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum
payable by the Borrower shall be increased as necessary so that after any required withholding or
the making of all required deductions the Agent or Lender receives an amount equal to the sum it
would have received had no such withholding or deduction been made.

(d) All payments shall be made not later than 12:00 Noon on the due date at the Agent’s
office. All payments (unless stated herein otherwise) shall be applied first to the payment of all
fees, expenses and other amounts due to the Lenders (excluding principal and interest), then to
accrued interest, and the balance on account of outstanding principal; provided,
however, that after a Default or an Event of Default, payments will be applied to the
obligations of Borrower to the Lenders as the applicable Lender determines in its sole discretion.

 

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2.15 Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary,
if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as
such Lender is a Defaulting Lender:

(a) No payments of principal, interest or fees delivered to the Agent for the account of any
Defaulting Lender shall be delivered by the Agent to such Defaulting Lender. Instead, such
payments shall, for so long as such Defaulting Lender shall be a Defaulting Lender, be held by the
Agent, and the Agent is hereby authorized and directed by all parties hereto to hold such funds in
escrow and apply such funds as follows:

(1) First, if applicable, to any payments due to the Issuing Bank pursuant to Section
2.4(e) of this Agreement or the Agent, in its capacity as Agent or Swingline Lender, as applicable,
under Section 2.1(d), Section 2.3 or Section 2.5 of this Agreement; and

(2) Second, to Cash Collateralize the Issuing Bank’s Fronting Exposure with respect to
such Defaulting Lender in accordance with Section 2.4(k)(ii); and

(3) Third, to Loans required to be made by such Defaulting Lender on any borrowing
date to the extent such Defaulting Lender fails to make such Loans; and

(4) Fourth, if so determined by the Agent and the Borrower, to be held in a deposit
account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future
funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the
Issuing Bank’s future Fronting Exposure with respect to such Defaulting Lender with respect to
future Letters of Credit issued under this Agreement, in accordance with Section 2.4(k)(ii) of this
Agreement; and

(5) Fifth, to the payment of any amounts owing to the Borrower, the Lenders, the
Issuing Bank or the Agent as a result of any judgment of a court of competent jurisdiction obtained
by any Lender, the Issuing Bank or the Agent against such defaulting Lender as a result of such
Defaulting Lender’s breach of its obligations under this Agreement; and

(6) Sixth, to the payment of any amount due to the Borrower under Section 2.5(b) of
this Agreement.

(b) Notwithstanding the foregoing, upon the termination of the Commitments and the payment and
performance of all of the Indebtedness and other obligations of the Borrower under this Agreement
(other than those owing to a Defaulting Lender), any funds then held in escrow by the Agent
pursuant to the preceding sentence shall be distributed to each Defaulting Lender, pro rata in
proportion to amounts that would be due to each Defaulting Lender but for the fact that it is a
Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting
Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash
Collateral pursuant to this Section 2.15 shall be deemed paid to and redirected by such Defaulting
Lender, and each Lender irrevocably consents hereto.

 

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(c) All or any part of such Defaulting Lender’s participation in Letters of Credit shall be
reallocated among the non-Defaulting Lenders in accordance with their respective Applicable
Percentages (in each case, calculated without regard to such Defaulting Lender’s Commitment) but
only to the extent that (x) the conditions set forth in Article 3 are satisfied at the time of such
reallocation (and, unless the Borrower shall have otherwise notified the Agent at such time, the
Borrower shall be deemed to have represented and warranted that such conditions are satisfied at
such time), and (y) such reallocation does not cause the aggregate Revolving Credit Exposure of any
non-Defaulting Lender to exceed such non-Defaulting Lender’s Revolving Credit Commitment. No
reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder
against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including
any claim of a non-Defaulting Lender as a result of such non-Defaulting Lender’s increased exposure
following such reallocation.

(d) If the reallocation described in subsection (c) above cannot, or can only partially, be
effected, the Borrower shall, without prejudice to any right or remedy
available to it hereunder or under law, Cash Collateralize the Issuing Bank’s Fronting
Exposure in accordance with the procedures set forth in Section 2.4(k)(ii) of this Agreement.

(e) If the Borrower and the Agent agree in writing that a Lender is no longer a Defaulting
Lender, the Agent will so notify the parties hereto, whereupon as of the effective date specified
in such notice and subject to any conditions set forth therein (which may include arrangements with
respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that
portion of outstanding Loans of the other Lenders or take such other actions as the Agent may
determine to be necessary to cause the Loans and funded and unfunded participations in Letters of
Credit to be held pro rata by the Lenders in accordance with their Applicable Percentages (without
giving effect to Section 2.15(c)), whereupon such Lender will cease to be a Defaulting Lender;
provided that no adjustments will be made retroactively with respect to fees accrued or payments
made by or on behalf of the Borrowers while that Lender was a Defaulting Lender; and provided,
further, that except to the extent otherwise expressly agreed by the affected parties, no change
hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any
party hereunder arising from that Lender’s having been a Defaulting Lender.

(f) So long as any Lender is a Defaulting Lender, the Issuing Bank shall not be required to
issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no
Fronting Exposure after giving effect thereto.

2.16 Upfront Fee. Upon the execution of this Agreement by all of the parties hereto, the
Lenders shall have earned, and the Borrower shall be obligated to pay on such date to the Agent for
the account of the Lenders an upfront fee in the amount of $87,500.00.

2.17 Agent Fees. The Borrower shall pay to the Agent for its own account the agency fees
in the amounts and on the dates set forth in the Fee Letter.

2.18 Charge to Account. On the date that any principal or interest on the Notes or any
fees or charges payable under this Agreement are due, the Borrower authorizes HSBC Bank to debit
account number 770-804683 of the Borrower maintained with HSBC Bank on such date in an amount equal
to such unpaid principal, interest, fees or charges, as applicable.

 

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2.19 Substitution of Lender. If (a) the obligation of any Lender to make or maintain Libor
Loans has been suspended pursuant to Section 2.10 of this Agreement when not all Lenders’
obligations to do so have been suspended, (b) any Lender has demanded compensation under Sections
2.9 or 2.10 of this Agreement, in each case when all Lenders have not done so, (c) any Lender is a
Defaulting Lender, (d) any payment of Taxes by the Borrower is required under Section 2.11 hereof,
or (e)
in connection with any proposed amendment, waiver or consent requiring the consent of “all of the
Lenders” or of a particular Lender, the consent of the Required Lenders is obtained, but the
consent of any other necessary Lender is not obtained, the Borrower shall have the right, if no
Default then exists, to replace such Lender (a “Replaced Lender”) with one or more other lenders
(each, a “Replacement Lender”) reasonably acceptable to the Agent, provided that (i) at the time of
any replacement pursuant to this Section 2.19, each Replacement Lender shall enter into one or more
Assignment and Assumptions pursuant to which the Replacement Lender shall acquire the Commitments
and outstanding Loans and other obligations of the Replaced Lender and, in connection therewith,
shall pay to the Replaced Lender in respect thereof an amount equal to the sum of (A) the amount of
principal of, and all accrued interest on, all outstanding Loans of the Replaced Lender, (B) the
amount of all accrued, but theretofore unpaid, fees and expenses, if applicable, owing to the
Replaced Lender hereunder and (C) the amount which would be payable by the Borrower to the Replaced
Lender pursuant to Section 2.7(a)(ii) of this Agreement, if any, if the Borrower prepaid at the
time of such replacement all of the Loans of such Replaced Lender outstanding at such time and (ii)
all obligations of the Borrower under this Agreement and the other Loan Documents then owing to the
Replaced Lender (other than those specifically described in clause (i) above in respect of which
the assignment purchase price has been, or is concurrently being, paid) shall be paid in full by
the Borrower to such Replaced Lender concurrently with such replacement. Upon the execution of the
respective Assignment and Assumption, the payment of amounts referred to in clauses (i) and (ii)
above and, if so requested by the Replacement Lender, delivery to the Replacement Lender of the
appropriate Note or Notes executed by the Borrower, the Replacement Lender shall become a Lender
hereunder and the Replaced Lender shall cease to constitute a Lender hereunder. The provisions of
this Agreement shall continue to govern the rights and obligations of a Replaced Lender with
respect to any Loans made or any other actions taken by such Replaced Lender while it was a Lender.
Nothing herein shall release any Defaulting Lender from any obligation it may have to the
Borrower, the Agent, the Issuing Bank, Swingline Lender or any other Lender.

2.20 Lender Statements; Survival of Indemnity. To the extent reasonably possible, each
Lender shall designate an alternate office, branch or Affiliate with respect to its Libor Loans to
reduce any liability of Borrower to such Lender under Sections 2.9, 2.10 and 2.11 of this
Agreement, so long as such designation is not disadvantageous to such Lender in any material
respect. Each Lender shall deliver a written statement of such Lender to the Borrower (with a copy
to the Agent) as to the amount due if any, under Section 2.9, 2.10 or 2.11 of this Agreement. Such
written statement shall set forth in reasonable detail the calculations upon which such Lender
determined such amount and shall state that amounts determined in accordance with such procedures
are being charged

 

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by such
Lender to other borrowers with  credit facilities similar to this
Agreement and credit characteristics comparable to the Borrower as determined by such Lender and
shall be final, conclusive and binding on the Borrower in the absence of manifest error.
Determination of amounts payable under such sections in connection with Libor Loans shall be
calculated as though each Lender funded such Loans through the purchase of a deposit of the type
and maturity corresponding to the deposit used as a reference in determining the interest rate
applicable to such Loan, whether in fact that is the case or not. Unless otherwise provided
herein, the amount specified in any written statement of any Lender shall be payable on demand
after receipt by the Borrower of such written statement. The obligations of the Borrower under
Sections 2.9, 2.10 and 2.11 of this Agreement shall survive payment of the Indebtedness under this
Agreement and termination of this Agreement. The Borrower shall have no obligation to compensate
any Lender with respect to amounts provided in Section 2.10 of this Agreement with respect to any
period prior to the date which is ninety (90) days prior to the date such Lender delivers its
written statement hereunder requesting compensation.

2.21 Expansion Option.

(a) Request for Increase. Provided there exists no Event of Default, and no Event of
Default would be caused thereby and the Total Revolving Credit Commitment has not been previously
reduced in accordance with Section 2.13 hereof, upon notice to the Agent and the Lenders, the
Borrower may on the Closing Date and from time to time thereafter prior to the Revolving Credit
Maturity Date request an increase in the Revolving Credit Commitments so long as, after giving
effect thereto, the Total Revolving Credit Commitment does not exceed $55,000,000, and no such
increase shall result in any increase in the Letter of Credit Sublimit or the Swingline Sublimit.
The Agent may arrange for any such increase to be provided by one or more Lenders (each Lender so
agreeing to an increase in its Revolving Credit Commitment, an “Increasing Lender”) or by one or
more new banks, financial institutions or other entities (each such new bank, financial institution
or other entity, an “Augmenting Lender”), to increase their existing Revolving Credit Commitment or
extend a Revolving Credit Commitment, as the case may be; provided that each
Augmenting Lender shall be subject to the reasonable approval of the Agent and the Borrower, and
each Increasing Lender and each Augmenting Lender executes documentation in form and content
satisfactory to the Agent to either become a party to this Agreement or reflect the increase of
such Lender’s Revolving Credit Commitment under this Agreement. At the time of sending a notice
requesting an increase in the Revolving Credit Commitments, the Agent shall specify the time period
within which each Lender is requested to respond which shall in no event be less than ten (10)
Business Days from the date of delivery of such notice to the Lenders (“Notice Period”).

(b) Lender Elections to Increase. Each Lender shall notify the Agent within the
Notice Period whether or not it agrees to increase its Revolving Credit Commitment and the amount
thereof. Any Lender not responding within the Notice Period shall be deemed to have declined to
increase its Revolving Credit Commitment (any Lender declining to increase its Revolving Credit
Commitment, a “Non-Increasing Lender”).

(c) Notifications by Agent and Borrower. The Agent shall notify the Borrower and each
Lender of the Lenders’ responses to each request made hereunder. The Agent shall notify the
Borrower and the Lenders of the name of each Augmenting Lender and the applicable Revolving Credit
Commitment of such Lender.

 

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(d) Effective Date and Allocations. If the Revolving Credit Commitments are increased
as provided in this Section, the Agent and the Borrower shall determine the effective date
(“Increase Effective Date”) and the final allocation of such increase. The Agent shall promptly
notify the Lenders of the final allocation of such increase and the Increase Effective Date.

(e) Conditions to Effectiveness of Increase. As a condition precedent to such
increase, the Borrower shall deliver to the Agent a certificate dated as of the Increase Effective
Date (in sufficient copies for each Lender) signed by an Authorized Officer of Borrower (i)
certifying and attaching the resolutions adopted by Borrower approving or consenting to such
increase, and (ii) certifying that, before and after giving effect to such increase, (A) the
representations and warranties contained in Article IV and the other Loan Documents are true and
correct on and as of the Increase Effective Date, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are true and correct as of
such earlier date, and except that for purposes of this Section 2.21, the representations and
warranties contained in Section 4.7 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 5.2, and (B) no Event of
Default or Default exists.

(f) Revolving Credit Commitment Adjustments. Each of the parties hereto agrees that
the Agent may, in consultation with Borrower, take any and all actions as may be reasonably
necessary to ensure that after giving effect to any increase in the Revolving Credit Commitments
pursuant to this Section, the outstanding Loans (if any) are held by the Lenders with Revolving
Credit Commitments in accordance with their new Applicable Percentages of the Revolving Credit as
shown on an updated Schedule 2.1 which will be attached to this Agreement. This may be
accomplished at the discretion of the Agent: (i) by requiring the outstanding Loans to be prepaid
with the proceeds of new Loans; (ii) by causing the Non-Increasing Lenders to assign portions of
their outstanding Loans to Increasing Lenders and Augmenting Lenders; (iii) by permitting the Loans
outstanding at the time of any increase in the Revolving Credit Commitment pursuant to this Section
2.21 to remain outstanding until the last days of the respective Interest Periods, therefor, even
though the Lenders would hold such Loans other than in accordance with their new Applicable
Percentages of the Revolving Credit; or (iv) by any combination of the foregoing.

ARTICLE III. CONDITIONS TO THE CREDIT

The Lenders’ agreement to lend, contained in this Agreement, shall be effective only upon
fulfillment of the following conditions at or prior to the Closing Date or such date or time as
specifically provided herein.

3.1 No Default. (i) There not existing at the time a Loan is to be made any Event of
Default or Default and (ii) such Lender not reasonably believing that any Event of Default or
Default so exists or, if such Loan is made, will occur or exist.

 

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3.2 Representations and Warranties. (i) Each representation and warranty made in this
Agreement being true and correct as of the Closing Date and, except to the extent updated in a
certificate executed by an Authorized Officer of Borrower and received by each Lender before the
time a Loan is to be made, as of such time, (ii) each other representation and warranty made to any
Lender by or on behalf of the Borrower
pursuant to any Loan Document before the time such Loan is to be made being true and correct in all
material respects as of the date thereof, (iii) each financial statement provided to any Lender by
or on behalf of the Borrower pursuant to any Loan Document before the time such Loan is to be made
having fairly presented the financial information it purports to reflect as of the date thereof and
(iv) such Lender not reasonably believing that (A) any such representation or warranty, except to
the extent so updated, was or is other than true and correct in all material respects as of any
date or time of determination of the truth or correctness thereof, (B) any event or condition the
occurrence, non-occurrence, existence or non-existence of which is a subject of any such
representation or warranty would have any Material Adverse Effect or (C) any such financial
statement did not so fairly present such information as of the date thereof.

3.3 Proceedings. Such Lender being satisfied as to each corporate or other proceeding of
the Borrower or any Subsidiary in connection with any transaction contemplated by this Agreement.

3.4 Closing Conditions. The receipt by each Lender on the date of this Agreement, or the
Swingline Lender or the Issuing Bank, as appropriate, unless otherwise indicated, of the following,
in form and substance satisfactory to each Lender:

(a) A Revolving Note and Term Note payable to the order of such Lender, appropriately
completed and duly executed by the Borrower;

(b) A request for the Revolving Loan determined by the Agent to meet the requirements for such
a request set forth in Section 2.1 of this Agreement;

(c) A Swingline Note payable to the order of the Swingline Lender appropriately completed and
duly executed by the Borrower;

(d) Each of the Guarantors shall have executed and delivered to the Agent the Reaffirmation
Agreement reaffirming its Guaranty;

(e) Borrower shall have executed and delivered to Agent the Reaffirmation Agreement
reaffirming the existing (i) amended and restated security agreement (“Borrower Security
Agreement”) granting to the Agent for the benefit of the Lenders, the Agent and the Issuing Bank,
security interests (“Borrower Security Interests”) in all of Borrower’s personal property and
fixtures (other than the 14,535 shares of common stock of Tel-Instrument Electronics Corp.
currently owned by Borrower), including 100% of the issued and outstanding Equity Interest in each
Domestic Subsidiary other than Astronics Air LLC, whether now owned or hereafter acquired, wherever
located, and any and all proceeds thereof (“Borrower Collateral”), as continuing collateral
security for the payment of any and all Indebtedness and liabilities, whether now existing or
hereafter incurred, of the Borrower to the Agent, the Lenders and the Issuing Bank arising under
this Agreement and the Loan Documents, including the IRB Letters of Credit, the Existing Letter of
Credit, and the documents executed and delivered in connection therewith; (ii) the financing
statements previously filed (“Borrower
Financing Statements”) to perfect the Borrower Security Interests, which Borrower Security
Interests shall, at the time of the execution of this Agreement, be superior to all other liens
and security interests in such property except as to liens and security interests approved by the
Agent; and (iii) any other Collateral Documents to which it is a party;

 

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(f) Each Guarantor (i) shall have executed and delivered to the Agent the Reaffirmation
Agreement reaffirming the existing (i) amended and restated security agreement (together, the
“Guarantor Security Agreement”) granting to the Agent for the benefit of the Lenders and the
Issuing Bank, security interests (“Guarantor Security Interests”) in all of Guarantor’s respective
personal property and fixtures, including 100% of the issued and outstanding Equity Interest in
each Domestic Subsidiary, and 65% of the issued and outstanding Equity Interest in Luminescent
Systems of Canada Inc., whether now owned or hereafter acquired, wherever located, and any and all
proceeds thereof (collectively, the “Guarantor Collateral”), as continuing collateral security for
the payment of any and all Indebtedness and liabilities, whether now existing or hereafter
incurred, of the Guarantor to the Agent, the Lenders and the Issuing Bank arising under its
Guaranty and the Loan Documents, including the IRB Letters of Credit, the Existing Letter of
Credit, and the documents executed and delivered in connection therewith; (ii) financing statements
previously filed (together, the “Guarantor Financing Statements”) to perfect the Guarantor Security
Interests, which Guarantor Security Interests shall, at the time of the execution of this
Agreement, be superior to all other liens and security interests in such property except as to
liens and security interests approved by the Agent; and (iii) any other Collateral Documents to
which it is a party;

(g) An opinion of Hodgson Russ LLP, counsel to the Borrower, addressed to the Agent, each
Lender and counsel to the Agent, and in form and content satisfactory to the Agent;

(h) Evidence that each of the Borrower and the Guarantors are (i) in good standing under the
Law of the jurisdiction in which it is organized and (ii) duly qualified and in good standing as a
foreign Person of its type authorized to do business in each jurisdiction in which such
qualification is necessary except where the failure to so qualify would not have any Material
Adverse Effect;

(i) A copy of the certificate or articles of incorporation or organization, by-laws, operating
or partnership agreement or other charter, organizational or governing document of each of the
Borrower and the Guarantors, and certified by their respective Secretary, or a Person having
functions with respect to it similar to those of the Secretary of a corporation, to be complete and
accurate;

(j) Evidence of the taking and the continuation in full force and effect of each corporate or
other action of the Borrower and each Guarantor, or any other Person necessary to authorize the
obtaining of all Loans by the Borrower, the execution, delivery and performance of each Loan
Document by each Person other than any Lender and the imposition or creation of each security
interest, mortgage and other lien and encumbrance imposed or created pursuant to any Loan Document;

 

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(k) Evidence (i) that no asset subject to any mortgage, security interest or other lien or
encumbrance pursuant to any Collateral Document is subject to any other security interest, mortgage
or other lien or encumbrance, except for Permitted Encumbrances, and (ii) of the making of each
recording and filing, and of the taking of each other action, deemed necessary or desirable by the
Agent at the sole option of the Agent to perfect or otherwise establish, preserve or protect the
priority of any such security interest, mortgage or other lien or encumbrance;

(l) Evidence that each requirement contained in any Loan Document with respect to insurance is
being met;

(m) Each additional agreement, instrument and other writing (including, but not limited to,
each agreement, instrument and other writing intended to be filed or recorded with any Governmental
Authority) to perfect or otherwise establish, preserve or protect the priority of any security
interest, mortgage or other lien or encumbrance created or imposed pursuant to any Loan Document;

(n) Receipt by the Agent of an Omnibus Assignment Agreement in form and content satisfactory
to the Agent whereby each of the Lenders under the Existing Agreement assigns to the Agent the
Indebtedness owed to them by Borrower and endorses and delivers to the Agent the notes evidencing
such Indebtedness;

(o) Payment of all costs and expenses incurred as of the Closing Date by the Agent and payable
pursuant to this Agreement, or arrangements for payment satisfactory to the Agent for payment
thereof having been made; and

(p) The Borrower and the Guarantors shall have provided to the Agent and the Lenders such
other items and shall have satisfied such other conditions as may be reasonably required by the
Agent or the Lenders.

3.5 Conditions to Subsequent Borrowing and Issuance. The obligation of the appropriate
Lender to make a Loan to Borrower or issue or renew a Letter of Credit (collectively, “Issuance”)
and the right of the Borrower to request a Loan or Issuance after the date of this Agreement shall
each be subject to the further conditions that on the date of the making of such Loan or such
Issuance:

(a) Each of the conditions listed in Section 3.4 shall have been satisfied or waived in
accordance with this Agreement.

(b) The following statements shall be true and the Agent shall have received a Request
Certificate signed by an Authorized Officer of Borrower dated the date of such Loan or Issuance
stating that:

(i) there does not exist at the time such Loan or Issuance is to be made any Event of Default,
Default or Material Adverse Effect; and

 

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(ii) each representation and warranty made in this Agreement and any Loan Document to which
the Borrower is a party and in any certificate, document or financial or other statement furnished
at any time thereunder is true, correct and complete in all material respects (without duplication
of materiality qualifiers) with the same effect as though such representations and warranties had
been made as of the time such Loan or Issuance is to be made, except to the extent any such
representation and warranty relates solely to an earlier date or to the extent any such
representation and warranty has been updated in a certificate executed by an Authorized Officer and
received by the Agent and the Lenders before the time such Loan or Issuance is to be made, and any
such updated representation and warranty is acceptable to the Required Lenders.

(c) The Agent shall have received such other approvals, opinions or documents as the Agent may
reasonably, in both time and scope, request, and all legal matters incident to such Loan or
Issuance shall be satisfactory to counsel to the Agent.

3.6 Subsequent Extensions of Credit. Subsequent to the satisfaction of the conditions set
forth herein, each request to the Agent for a Loan or Letter of Credit after the date hereof shall
constitute confirmation by the Borrower of all the factual matters set forth in the form of
Compliance Certificate as of the date of such request in the same manner as if a written Compliance
Certificate had been delivered, and such factual matters shall be true in all material respects on
the date such Loan or Letter of Credit is made or issued. No Loan or Letter of Credit shall be
made if such certification is not made without qualification.

ARTICLE IV. REPRESENTATIONS AND WARRANTIES

The Borrower makes the following representations and warranties:

4.1 Good Standing and Authority. Borrower, each Guarantor and each other Subsidiary is a
corporation, duly organized, validly existing, and in good standing under the laws of the state of
its incorporation or other place of organization; has powers and authority to transact the business
in which it is engaged; is duly licensed or qualified and in good standing in each jurisdiction in
which the conduct of such business requires such licensing or such qualification except where
failure to qualify would not reasonably be expected to have a Material Adverse Effect; and has all
necessary power and authority to enter this Agreement and to execute, deliver and perform this
Agreement, any Note and any other document executed in connection with this Agreement, all of which
have been duly authorized by all proper and necessary corporate and shareholder action.

4.2 Valid and Binding Obligation. This Agreement, the Notes and any other document
executed in connection herewith have been duly executed and delivered by the Borrower and
constitute the legal, valid and binding
obligations of the Borrower and each Guarantor, as the case may be, enforceable against the
Borrower or such Guarantor, as the case may be, in accordance with their respective terms.

4.3 Good Title. Each of the Borrower, each Guarantor and each other Subsidiary has good
and marketable title to all of its assets, none of which is subject to any mortgage, indenture,
pledge, lien, conditional sale contract, security interest, encumbrance, claim, trust or charge
except Permitted Encumbrances.

 

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4.4 No Pending Litigation. There are not any actions, suits, proceedings (whether or not
purportedly on behalf of the Borrower or any Guarantor or any other Subsidiary) or investigations
pending or, to the knowledge of the Borrower, threatened against the Borrower, any Guarantor or any
other Subsidiary or any basis therefore which reasonably could be expected to have a Material
Adverse Effect, or which question the validity of this Agreement, the Notes or other documents
required by this Agreement, or any action taken or to be taken pursuant to any of the foregoing.

4.5 No Consent or Filing. No consent, license, approval or authorization of, or
registration, declaration or filing with, any court, Governmental Authority or other Person is
required on the part of the Borrower or any Subsidiary in connection with the valid execution,
delivery or performance of this Agreement, the Notes or other documents required by this Agreement
or in connection with any of the transactions contemplated thereby other than the filing of
financing statements in connection with the Borrower Security Agreement and the Guarantor Security
Agreement.

4.6 No Violations. Neither the Borrower nor any Guarantor or other Subsidiary is in
violation of any term of its certificate of incorporation or by-laws or other organizational
documents, or of any mortgage, borrowing agreement, the Subordination Agreement or the Seller
Notes, or any other instrument or agreement pertaining to Indebtedness for borrowed money which
might reasonably be expected to result in a Material Adverse Effect, and will not result in the
creation of any Lien upon any properties or assets except in favor of the Agent and the Lenders.
Neither the Borrower nor any Guarantors or other Subsidiary is in violation of any term of any
other indenture, instrument, or agreement to which it is a party or by which it may be bound,
resulting, or which might reasonably be expected to result, in a Material Adverse Effect. Neither
the Borrower nor any Subsidiary is in violation of any order, writ, judgment, injunction or decree
of any court of competent jurisdiction or of any statute, rule or regulation of any competent
governmental authority which might reasonably be expected to result in a Material Adverse Effect.
The execution and delivery of this Agreement, the Notes and other documents required by this
Agreement and the performance of all of the same is and will be in compliance with the foregoing
and will not result in any violation or result in the creation of any mortgage, lien, security
interest, charge or encumbrance upon any properties or assets except in favor of the Agent and the
Lenders. There exists no fact or circumstance not disclosed in this Agreement, in
the documents furnished in connection herewith, the Borrower’s filings under the Exchange Act, or
in the financial projections furnished to the Lenders which has, or could reasonably be expected to
have, a Material Adverse Effect, except those facts and circumstances which generally affect all
Persons engaged in the Borrower’s lines of business.

4.7 Financial Statements. The Borrower has furnished to the Lenders Consolidated financial
statements showing the Borrower’s and all Subsidiaries’ financial condition as of December 31, 2010
and the results of operations and their cash flows for the fiscal year then ended audited by Ernst
& Young LLP, which statements fairly present their Consolidated financial position and the results
of their operations as of the date and for the period referred to and have been prepared in
accordance with GAAP consistently applied throughout the interval involved. Since the date of such
financial statements to the date of execution hereof, there have not been any materially adverse
changes in the Consolidated financial condition of the Borrower and the Subsidiaries from that
disclosed in such financial statements. None of the property or assets shown in the Consolidated
financial statements delivered to the Lenders has been materially adversely affected as the result
of any fire, explosion, accident, flood, drought, storm, earthquake, condemnation, requisition,
statutory or regulatory change, act of God, or act of public enemy or other casualty, whether or
not insured.

 

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4.8 Tax Returns. The Borrower, the Guarantors and any other Domestic Subsidiaries have
duly filed all federal and other tax returns required to be filed except where an extension has
been obtained and has duly paid all taxes required by such returns through its fiscal year ending
December 31, 2010. Federal income tax liability of the Borrower, the Guarantors and the other
Domestic Subsidiaries has been reviewed by the United States Internal Revenue Service through its
fiscal year ending December 31, 2008, and the Borrower has not received any assessments by the
Internal Revenue Service or other taxing authority for additional unpaid taxes.

4.9 Federal Regulations. Neither the Borrower nor any Guarantor or any other Subsidiary is
engaged principally, or as one of its important activities, in the business of extending or
arranging for the extension of credit for the purpose of purchasing or carrying “margin stock” (as
defined in Regulation U issued by the Board of Governors of the Federal Reserve System). Except
for the stock owned by the Borrower and described on Schedule 6.3, neither the Borrower nor any
Guarantor or other Subsidiary owns nor intends to carry or purchase any such “margin stock”, and
the Borrower will not use the proceeds of any Loan or Letters of Credit to purchase or carry (or
refinance any borrowing the proceeds of which were used to purchase or carry) any such “margin
stock”. Neither the Borrower nor any Guarantor or other Subsidiary is subject to regulation with
respect to the incurrence of Indebtedness under the Investment Company Act of 1940, as amended, the
Interstate Commerce Act as amended, the Federal Power Act, as amended, the Energy Policy Act of
2005, as amended, or any applicable state public utility law.

4.10 Compliance with ERISA. Compliance by the Borrower with the provisions hereof and in the incurrence of the Indebtedness
under this Agreement will not involve any prohibited transaction within the meaning of ERISA or
Section 4975 of the Code. The Borrower and their Subsidiaries (i) have fulfilled all obligations
under minimum funding standards of ERISA and the Code with respect to each Plan, (ii) have
satisfied all respective contribution obligations in respect of each Multiemployer Plan and each
Multiple Employer Plan, (iii) are in compliance with all other applicable provisions of ERISA and
the Code with respect to each Plan, each Multiemployer Plan and each Multiple Employer Plan, except
to the extent failure to comply has not had, and will not have, a Material Adverse Effect and (iv)
have not incurred any liability under the Title IV of ERISA to the PBGC with respect to any Plan,
any Multiemployer Plan, any Multiple Employer Plan, or any trust established thereunder. No Plan
or trust created thereunder has been terminated. There has been no Reportable Event with respect
to any Plan or trust created thereunder or with respect to any Multiemployer Plan or Multiple
Employer Plan, which Reportable Event will or could result in the termination of such Plan,
Multiemployer Plan or Multiple Employer Plan and give rise to a material liability of the Borrower
or any ERISA Affiliate in respect thereof. Neither Borrower nor any ERISA Affiliate is at the date
of this Agreement, or has been at any time within the two years preceding the date of this
Agreement, an employer required to contribute to any Multiemployer Plan or Multiple Employer Plan,
or a “contributing sponsor” (as such term is defined in Section 4001 of ERISA) in any Multiemployer
Plan or Multiple Employer Plan. Neither the Borrower nor any ERISA Affiliate has any contingent
liability with respect to any post-retirement “welfare benefit plan” (as such term is defined in
ERISA) except as has been disclosed in accordance with GAAP in the financial statements delivered
to the Lenders in accordance with this Agreement.

 

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4.11 Subsidiaries; Affiliates. The Borrower has no (a) Subsidiaries except (i) as listed
on Schedule 4.11 to this Agreement or (b) Affiliates, other than its Subsidiaries.

4.12 Compliance. The present and anticipated conduct of the business and operations of the
Borrower and each Subsidiary and the present and anticipated ownership and use of each asset of the
Borrower and each Subsidiary are in compliance in each material respect with each applicable
statute, regulation and other law (including, but not limited to, the Environmental Protection Act,
the Occupational Health and Safety Act, the Comprehensive Environmental Response, Compensation and
Liability Act and the Resource Conservation and Recovery Act), except where noncompliance would not
result in a Material Adverse Effect. Each authorization, approval, permit, consent, franchise and
license from, each registration and filing with, each declaration, report and notice to, and each
other act by or relating to, any Person necessary for the present or anticipated conduct of the
business or operations of the Borrower and each Subsidiary or for the present or anticipated
ownership or use of any material asset of the Borrower and each Subsidiary has been duly obtained,
made, given or done, and is in full force and effect, except where failure to so obtain, make, give
or do would not have a Material Adverse Effect.

4.13 Fiscal Year. The fiscal year of the Borrower is the year ending December 31.

4.14 Default. There does not exist any Default or Event of Default as of the Closing Date
nor will any Default or Event of Default begin to exist immediately after the execution and
delivery hereof.

4.15 Indebtedness for Borrowed Money. As of the Closing Date, the Borrower and its
Subsidiaries have no Indebtedness arising from the borrowing of any money, except for Indebtedness
(a) to the Lenders under this Agreement, (b) the Seller Notes, (c) outstanding on the date of this
Agreement pursuant to any lease, loan or credit facility fully and accurately described in Schedule
6.2 to this Agreement, (d) incurred with the prior written consent of the Agent, and (e) owing to
the Borrower or a Subsidiary.

4.16 Securities. Each outstanding share of stock, debenture, bond, note and other security
of the Borrower has been validly issued in full compliance with each statute, regulation and other
law, and, if a share of stock, is fully paid and nonassessable.

 

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4.17 Environmental Matters. (a) No above ground or underground storage tanks
containing Hazardous Substances are or have been located on any property owned, leased or operated
by the Borrower or any Subsidiary, except for storage tanks containing diesel fuel, gasoline or
waste oil, which tanks are in material compliance with all applicable laws, rules and regulations.

(b) No property owned, leased or operated by the Borrower or any Subsidiary is or has been
used for the storage or Disposal of any Hazardous Substance, except in the ordinary course of its
business in material compliance with applicable Environmental Laws, or for the treatment of
Hazardous Substances.

(c) No unpermitted Release of a Hazardous Substance has occurred or is threatened on, at, from
or near any property owned, leased or operated by the Borrower or any Subsidiary, except where such
unpermitted Release does not have, and could not reasonably be expected to have, a Material Adverse
Effect.

(d) Neither the Borrower nor any Subsidiary is subject to any existing, pending or threatened
suit or claim, notice of material violation or any investigation under any Environmental Law, that
in any such case could reasonably be expected to result in a Material Adverse Effect.

(e) The Borrower and each Subsidiary are in compliance with all Environmental Laws, except
where noncompliance does not have, and could not be reasonably expected to have, a Material Adverse
Effect.

(f) All Environmental Permits have been obtained and are in full force and effect, except
where the failure to obtain such Environmental Permit is not likely to have a Material Adverse
Effect.

(g) There are no agreements, consent orders, decrees, judgment, license or permit conditions
or other orders or directives of any federal, state or local court, governmental agency or
authority relating to the past, present or future ownership, use, operation, sale, transfer or
conveyance of any property owned, leased or operated by the Borrower or any Subsidiary which
required any material change in condition or any work, repairs, construction, containment, clean
up, investigation, study, removal or other remedial action or material capital expenditures with
respect to such property.

4.18 Burdensome Contracts; Labor Relations. Neither the Borrower nor any Subsidiary (a) is
subject to any burdensome contract, agreement, corporate restriction, judgment, decree or order,
(b) is a party to any labor dispute affecting any bargaining unit or other group of employees
generally, (c) is subject to any strike, slowdown, walk out or other concerted interruptions of
operations by employees of the Borrower or any Subsidiary, whether or not relating to any labor
contracts, (d) is subject to any pending or, to the knowledge of the Borrower, threatened, unfair
labor practice complaint, before the National Labor Relations Board, (e) is subject to any pending
or, to the knowledge of the Borrower, threatened grievance or arbitration proceeding arising out of
or under any collective bargaining agreement, (f) is subject to any significant pending or, to the
knowledge of the Borrower, threatened strike, labor dispute, slowdown or stoppage, or (g) is, to
the knowledge of the Borrower, involved or subject to any union representation organizing or
certification matter with respect to the employees of the Borrower or any Subsidiary, except (with
respect to any matter specified in any of the above clauses) for such matters as, individually or
in the aggregate, which have not had or will not have a Material Adverse Effect.

 

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4.19 Liens. Once executed and delivered, each of the Collateral Documents creates, as
security for the Indebtedness of the Borrower to the Lenders or the obligations for the Guarantors
under their respective Guaranty, a valid and enforceable, and upon making the filings and
recordings referenced in the next sentence, perfected Lien on all of the Collateral subject thereto
from time to time, in favor of the Agent for the benefit of the Lenders, superior to and prior to
the rights of all third persons and subject to no other Liens, except that the Collateral under the
Collateral Documents may be subject to Permitted Encumbrances. No filings or recordings are
required in order to perfect the Liens created under any Collateral Document except for filings or
recordings required in connection with any such Collateral Document that shall have been made, or
for which satisfactory arrangements have been made, upon or prior to the execution and delivery
thereof. All recording, stamp, intangible or other similar taxes required to be paid by any Person
under applicable legal requirements or other laws applicable to the property encumbered by the
Collateral Documents in connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement thereof have been paid.

4.20 Intellectual Property. Each of the Borrower, the Guarantors and other Subsidiaries owns, or is licensed to use, all
trademarks, tradenames, service marks, copyrights, technology, know-how and process necessary for
the conduct of its business as currently conducted (collectively, the “Intellectual Property”)
except for those the failure to own or license which has not had or will not have a Material
Adverse Effect. No claim has been asserted and is pending by any person challenging or questioning
the use by the Borrower, any Guarantor or any other Subsidiaries of any such Intellectual Property
or the validity or effectiveness of any such Intellectual Property, nor does Borrower, any
Guarantor or any other Subsidiaries know of any valid basis for any such claim, to the knowledge of
the Borrower the use of such Intellectual Property by the Borrower, any Guarantors and any other
Subsidiaries does not infringe on the rights of any Person, and, to the knowledge of the Borrower,
no such Intellectual Property of the Borrower, any Guarantor and any other Subsidiaries has been
infringed, misappropriated or diluted by any other Person except for such claims, infringements,
misappropriation and dissolution that, in the aggregate, has not had or will not have a Material
Adverse Effect.

4.21 Anti-Terrorism Laws/ Foreign Assets Control Regulations.

(a) Neither the Borrower, any Guarantor, nor any of their Subsidiaries or Affiliates, is in
violation of any Anti-Terrorism Law or engages in or conspires to engage in any transaction that
evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in any Anti-Terrorism Law.

(b) Neither Borrower nor any Guarantor or Subsidiary or Affiliate of the Borrower or any
Guarantor (each Guarantor, Subsidiary and Affiliate of the Borrower or any Guarantor, a “Controlled
Entity”) (i) is a Person whose name appears on the list of Specially Designated Nationals and
Blocked Persons published by the Office of Foreign Assets Control, U.S. Department of Treasury
(“OFAC”) (an “OFAC Listed Person”) or (ii) is a department, agency or instrumentality of, or is
otherwise controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person
or (y) any Person, entity, organization, foreign country or regime that is subject to any OFAC
Sanctions Program (each OFAC Listed Person and each other Person, entity, organization and
government of a country described in clause (ii), a “Blocked Person”) or (iii) has any investments
in, or knowingly (as such term is defined in Section 101(6) of CISADA) engages in any dealings or
transactions with, any Blocked Person.

 

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(c) No part of the proceeds from the Loans or Letters of Credit made or issued hereunder
constitute or will constitute funds obtained on behalf of any Blocked Person or will otherwise be
used, directly by the Borrower or indirectly through any Controlled Entity, in connection with any
investment in, or any transactions or dealings with, any Blocked Person.

(d) To the Borrower’s actual knowledge after making due inquiry, neither Borrower nor any
Controlled Entity (i) is under investigation by any Governmental Authority for, or has been charged
with, or convicted of, money laundering, drug trafficking, terrorist-related activities or other
money laundering predicate crimes under any applicable law (collectively, “Anti-Money Laundering
Laws”), (ii) has been assessed civil penalties under any Anti-Money Laundering Laws or (iii) has
had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws. The
Borrowers have taken reasonable measures appropriate to the circumstances (in any event as required
by applicable law) to ensure that
Borrower and each Controlled Entity is and will continue to be in compliance with all
applicable current and future Anti-Money Laundering Laws.

(e) No part of the proceeds from the Loans or Letters of Credit made or issued hereunder will
be used, directly or indirectly, for any improper payments to any governmental official or
employee, political party, official of a political party, candidate for political office, official
of any public international organization or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage. The Borrower has taken
reasonable measures appropriate to the circumstances (in any event as required by applicable law)
to ensure that Borrower and each Controlled Entity is and will continue to be in compliance with
all applicable current and future anti-corruption laws and regulations.

4.22 Accuracy of Information, etc. No statement or information contained in this
Agreement, any other Loan Document, the Confidential Information Materials or any other certificate
furnished by or on behalf of Borrower or the Guarantors to the Agent or the Lenders, or any of
them, for use in connection with the transactions contemplated by this Agreement or the other Loan
Documents, contained as of the date such statement, information or certificate was so furnished (or
in the case of the Confidential Information Materials, as of the date of this Agreement), any
untrue statement of a material fact or omitted to state a material fact necessary to make the
statements contained herein or therein not misleading in any material respect. The financial
statements contained in the materials referenced above, in conformity with GAAP, require management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting periods. In addition, the projections and
pro forma financial information contained in the materials referenced above are not guarantees of
future performance and are subject to factors, risks and uncertainties, the impact or occurrence of
which could cause actual results to differ materially from the expected results described in the
projections and pro forma financial information.

 

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4.23 Solvency. The Borrower has received consideration that is the reasonable equivalent
value of the obligations and liabilities that the Borrower has incurred to the Agent, the Issuing
Bank and the Lenders under the Loan Documents. The Borrower now has capital sufficient to carry on
its business and transactions and all business and transactions in which it is about to engage and
is now solvent and able to pay its debts as they mature and the Borrower, as of the Closing Date
and after the closing of the transactions contemplated by the Stock Purchase Agreement, owns
property having a value, both at fair valuation and at present fair salable value, greater than the
amount required to pay the Borrower’s debts; and the Borrower is not entering into the Loan
Documents with the intent to hinder, delay or defraud its creditors. For purposes of this Section,
“debt” means any liability on a claim, and “claim” means (y) right to payment
whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent,
matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured; or (z) right to
an equitable remedy for breach of performance if such breach gives rise to a payment, whether or
not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured,
unmatured, disputed, undisputed, secured or unsecured.

ARTICLE V. AFFIRMATIVE COVENANTS

As long as this Agreement is in effect and until such time as the Commitments have been
terminated, no Notes remain outstanding and the Loans, together with all interest, fees, charges
and expenses under the Loan Documents have been paid in full, the Borrower will:

5.1 Payments. Duly and punctually pay the principal of and interest on all Indebtedness
and all fees incurred by Borrower pursuant to this Agreement in the manner set forth in this
Agreement, and duly and punctually pay to the Agent the arrangement and annual agency fee as and
when due under the terms of the Fee Letter.

5.2 Financial Reporting Requirements. Furnish to the Agent and each Lender (a) within
forty-five (45) days after the end of each quarter of each of its fiscal years, unaudited financial
statements of the Borrower and its Subsidiaries, which statements shall consist of Consolidated and
summary consolidating balance sheets as of the end of such quarter, and related statements of
income, covering the period from the end of the Borrower’s immediately preceding fiscal year to the
end of such quarter certified to be correct by the President, Chief Executive Officer or
Vice-President-Finance and Treasurer of the Borrower, who shall also furnish to the Agent and each
Lender a duly completed and executed Compliance Certificate; (b) within ninety (90) days after the
end of each of its fiscal years, audited Consolidated financial statements of the Borrower and its
Subsidiaries, which shall consist of a Consolidated and consolidating balance sheet as of the end
of such year and the related statements of income, retained earnings and cash flows covering such
fiscal year, audited by and together with an opinion of, in the case of such Consolidated financial
statements, Ernst & Young LLP, or other independent certified public accountants satisfactory to
the Agent, together with a Compliance Certificate from the President or Vice President-Finance and
Treasurer of the Borrower; (c) promptly, after their preparations copies of all such proxy
statements, financial statements and reports which the Borrower sends to its stockholders, and
copies of all regular, periodic and special reports, as well as all registration statements, which
the Borrower files with the Securities and Exchange Commission; (d) promptly after the filing
thereof with the Pension Benefit Guaranty Corporation, a copy of each annual report filed with
respect to each Plan; (e) by the end of each of its fiscal years, a forecast of the statements of
income and cash flows as of and through the close of its following fiscal year of the Borrower and
the Subsidiaries; and (f) such additional information, reports or statements (including, without
limitation, a duly completed and executed Compliance Certificate) as the Agent may from time to
time reasonably request regarding the financial and business affairs of the Borrower and the
Subsidiaries.

 

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5.3 Notices. Promptly notify the Agent in writing of (a) any pending or future audits of the Borrower’s or
any Guarantor’s or other Subsidiary’s federal income tax return by the Internal Revenue Service as
soon as the Borrower has knowledge thereof, and the results of each such audit after its completion
if such results could reasonably be expected to have a Material Adverse Effect; and (b) any default
by the Borrower or any Guarantor or other Subsidiary in the performance of, or any modifications
of, any of the terms or conditions contained in this Agreement, any other agreement, mortgage,
indenture or instrument to which the Borrower or any Guarantor or other Subsidiary is a party or
which is binding upon the Borrower or any Guarantor or other Subsidiary and of any default by the
Borrower or any Guarantor or other Subsidiary in the payment of any of its Indebtedness. The
Borrower shall not, however, be required to so notify the Agent of potential or actual defaults in
payment of any such Indebtedness or the performance under, or of modifications of terms or
provisions of, those documents or agreements pertaining to its transactions in the ordinary course
of business which do not have a Material Adverse Effect or constitute a Default or an Event of
Default.

5.4 Taxes. Promptly pay and discharge all of its taxes, assessments and other governmental
charges (including any charged or assessed on the issuance of the Notes) prior to the date on which
penalties are attached thereto, establish adequate reserves for the payment of such taxes,
assessments and governmental charges and make all required withholding and other tax deposits;
provided, however, that nothing herein contained shall be interpreted to require the payment of any
tax, assessment or charge so long as its validity is being contested in good faith and by
appropriate proceedings diligently conducted.

5.5 Insurance. (a) Keep, and cause each Subsidiary to keep, all its property so insurable
insured at all times with responsible insurance carriers against fire, theft and other risks in
coverage, form and amount consistent with industry standards and reasonably satisfactory to the
Agent and the Lenders; (b) keep, and cause each Subsidiary to keep, adequately insured at all times
in reasonable amounts with responsible insurance carriers against liability on account of damage to
persons or property and under all applicable worker’s compensation laws; (c) promptly deliver to
the Agent certificates of insurance, with appropriate endorsements designating the Agent as a
lender’s loss payee and additional insured as requested by the Agent; and (d) cause each such
insurance policy to contain a thirty (30) day notice of cancellation or material change in coverage
provision satisfactory to the Agent.

 

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5.6 Litigation. Promptly notify the Agent in writing as soon as the Borrower has knowledge
thereof, of the institution or filing of any litigation, action, suit, claim, counterclaim, or
administrative proceeding against, or investigation of, the Borrower or any Subsidiary to which the
Borrower or any Subsidiary is a party by or before any regulatory body or governmental agency (a)
the outcome of which could reasonably be expected to have a Material Adverse Effect or could
reasonably be expected to materially and adversely affect the Borrower’s ability to fulfill its
obligations hereunder or which involves more than $3,500,000 unless adequately covered by
insurance, or (b) which questions the validity of this Agreement, the Notes or any action taken or
to be taken pursuant to any of the foregoing; and furnish or cause to be furnished to the Agent
such information regarding the same as the Agent may request.

5.7 Judgments. Promptly notify the Agent in writing as soon as the Borrower has knowledge
thereof, of any judgment, order or award of any court, agency or other governmental agency or any
arbitrator, (a) the outcome of which could reasonably be expected to have a Material Adverse Effect
or could reasonably be expected to materially and adversely affect the Borrower’s ability to
fulfill its obligations hereunder or which involves more than $3,500,000 unless adequately covered
by insurance, or (b) renders invalid this Agreement, any Note or any action taken or to be taken
pursuant to any of the foregoing, and furnish or cause to be furnished to the Agent such
information regarding the same as the Agent may request.

5.8 Corporate Standing. Maintain, and cause each Subsidiary to maintain, its corporate,
partnership or limited liability company existence in good standing and remain or become duly
licensed or qualified and in good standing in each jurisdiction in which the conduct of its
business requires such qualification or licensing, except where the failure to be so licensed or
qualified and in good standing would not have a Material Adverse Effect; provided, however, nothing
in this Section shall be deemed to prohibit any transaction permitted by Section 6.7 of this
Agreement.

5.9 Books and Records. Keep proper books and records in accordance with generally accepted
accounting principles consistently applied and notify the Agent promptly in writing of any proposed
change in the location at which such books and records are maintained.

5.10 Compliance with Law. Comply, and cause each Subsidiary to comply, with all applicable
laws and governmental rules and regulations, except where the failure to so comply does not have,
and would not be reasonably expected to have, a Material Adverse Effect.

5.11 Pension Reports. With respect to each Plan, the Borrower will furnish the following
to the Agent as soon as possible and in any event within thirty days after the Borrower knows or
has reason to know of (a) the occurrence of any Reportable Event with respect to such Plan or (b)
the institution of proceedings or the taking of any other action by the Pension Benefit Guaranty
Corporation or the Borrower or any Subsidiary to terminate, withdraw or partially withdraw from any
Plan and, with respect to a Multiemployer Plan, the reorganization (as defined in Section 4241 of
ERISA) or insolvency (as defined in Section 4245 of ERISA) of such Plan, and in addition to such
notice, deliver to the Agent whichever of the following may be applicable: (i) a certificate of the
President or Vice President-Finance and Treasurer of the Borrower setting forth details known to
the Borrower as to such Reportable Event, together with a copy of any notice thereof that is
required to be filed with Pension Benefit Guaranty Corporation, or (ii) any notice delivered by the
Pension Benefit Guaranty Corporation evidencing its intent to institute such proceedings or any
notice to Pension Benefit Guaranty Corporation that such Plan is to be terminated, as the case may
be.

 

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5.12 Inspections. Upon request of the Agent, permit any officer, employee, accountant,
attorney or other agent of the Agent upon reasonable notice and during regular business hours to
(a) visit and inspect each of the premises of the Borrower and each Subsidiary, (b) examine, audit,
copy and make extracts from each accounting record of the Borrower, and (c) discuss the business,
operations, assets, affairs and condition (financial or other) of the Borrower and each Subsidiary
with a responsible officer of the Borrower and with the independent accountants of the Borrower.

5.13 Environmental Compliance. (a) Comply with all Environmental Laws except where
the failure to comply could not reasonably be expected to have a Material Adverse Effect.

(b) Promptly notify the Agent in the event of the Disposal of any Hazardous Substance at any
property owned, leased or operated by the Borrower or any Subsidiary, or in the event of any
Release, or threatened Release, of a Hazardous Substance, on, at or from any such Property, except
when such Disposal or Release is in the ordinary course of the Borrower’s or such Subsidiary’s
business and in compliance with all applicable Environmental Laws or could not reasonably be
expected to have a Material Adverse Effect.

(c) Deliver promptly to the Agent (i) copies of any non-routine, material documents received
from the United States Environmental Protection Agency or any state, county or municipal
environmental or health agency concerning the Borrower’s or any Guarantor’s operations except
documents of general applicability; and (ii) copies of any documents submitted by the Borrower or
any Subsidiary to the United States Environmental Protection Agency or any state, county or
municipal environmental or health agency concerning its operations, except submissions in the
ordinary course of business.

5.14 Certain Subsidiaries to Become Guarantors. In the event that at any time after the
Closing Date Borrower creates, holds, acquires or at any time has any Subsidiary (other than a
Non-Material Subsidiary and a Foreign Subsidiary to which Section 5.15(b) applies) that is not a
Guarantor, Borrower will immediately, but in any event within five (5) Business Days, notify the
Agent in writing of such event, identifying the Subsidiary in question and referring specifically
to the rights of the Agent and the Lenders under this Section. Borrower will, within fifteen (15)
days following request therefor from the Agent (who may give such request on its own initiative or
upon request by the Required Lenders), cause such Subsidiary to deliver to the Agent, in sufficient
quantities for the Lenders, (i) a Guaranty duly executed by such Subsidiary, and (ii) if such
Subsidiary is a corporation, resolutions of the Board of Directors of such Subsidiary, certified by
the Secretary or an
Assistant Secretary of such Subsidiary as duly adopted and in full force and effect, authorizing
the execution and delivery of such Guaranty, or if such Subsidiary is not a corporation, such other
evidence of the authority of such Subsidiary to execute such a Guaranty as the Agent may reasonably
request. If any Subsidiary is required to provide a security agreement, whether pursuant to
Section 5.15 or otherwise, such Subsidiary shall also be subject to the requirements of this
Section 5.14.

 

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5.15 Additional Security; Further Assurances.

(a) Additional Security. Subject to subpart (b) below, if Borrower or any Domestic
Subsidiary (other than a Non Material Subsidiary and other than Astronics Air LLC with respect to
its existing ownership of a corporate aircraft) acquires, owns or holds any personal property that
is not at the time included in the Collateral, the Borrower will promptly notify the Agent in
writing of such event, identifying the property or interests in question and referring specifically
to the rights of the Agent and the Lenders under this Section, and Borrower will, or will cause
such Domestic Subsidiary to, within 30 days following a request by the Agent (or such longer period
as the Agent shall deem reasonable under the circumstances), grant to the Agent for the benefit of
the Lenders and grant to HSBC Bank as issuer of the IRB Letters of Credit and the Existing Letter
of Credit, on a pari passu basis, a Lien on such personal property pursuant to the terms of such
security agreements, assignments or other documents as the Agent deems appropriate (collectively,
the “Additional Security Document”). Furthermore, the Borrower shall cause to be delivered to the
Agent and HSBC Bank such resolutions and other related documents as may be reasonably requested by
the Agent and HSBC Bank in connection with the execution, delivery and recording of any such
Additional Security Document, all of which documents shall be in form and substance reasonably
satisfactory the Agent and HSBC Bank.

(b) Foreign Subsidiaries. In the event that Borrower or any existing Subsidiary
acquires any other Foreign Subsidiary other than a Non-Material Subsidiary, or any Foreign
Subsidiary which is a Non Material Subsidiary ceases to be a Non Material Subsidiary, the Borrower
will, or will cause such existing Subsidiary to, if so requested by the Agent, pledge to the Agent
for the benefit of the Lenders, the Agent and the Issuing Bank 65% of the Equity Interests in any
such Foreign Subsidiary.

(c) Further Assurances. Borrower will, and will cause each Subsidiary, at the expense
of Borrower, to make, execute, endorse, acknowledge, file and/or deliver to the Agent from time to
time such conveyances, financing statements, transfer endorsements, powers of attorney,
certificates, and other assurances or instruments and take such further steps relating to any
Collateral covered by any of the Loan Documents as the Agent may reasonably require. If at any
time the Agent determines, based on applicable law, that all applicable taxes (including, without
limitation, mortgage recording taxes or similar charges) were not paid in connection with the
recordation of any mortgage or deed of trust, the Borrower shall promptly pay the same upon demand.

5.16 Accounting; Reserves; Tax Returns. Cause each of the Borrower and any Subsidiary at all times to (i) maintain a system of
accounting established and administered in material accordance with GAAP, and (ii) file each tax
return it is required to file except where the failure to so file will not and has not had a
Material Adverse Effect.

5.17 Liens and Encumbrances. Promptly upon acquiring knowledge or reason to know in the
ordinary course of its business that any asset of Borrower or any Subsidiary has or may become
subject to any Lien other than Permitted Encumbrances, provide to each Lender a certificate
executed by an Authorized Officer of Borrower and specifying the nature of such Lien and what
action Borrower has taken, is taking or proposes to take with respect thereto.

 

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5.18 Defaults and Material Adverse Effects. Promptly upon acquiring knowledge or reason to
know in the ordinary course of its business of the occurrence or existence of (i) any Event of
Default or Default or (ii) any event or condition that has had or will have any Material Adverse
Effect, provide to each Lender a certificate executed by an Authorized Officer and specifying the
nature of such Event of Default, Default, event or condition, the date of occurrence or period of
existence thereof and what action the Borrower has taken, is taking or proposes to take with
respect thereto.

5.19 Good Repair. The Borrower will, and will cause each of its Subsidiaries to, ensure
that its material properties and equipment used or useful in its business in whomsoever’s
possession they may be, are kept in good repair, working order and condition, normal wear and tear
excepted, and that from time to time there are made in such properties and equipment all needful
and proper repairs, renewals, replacements, extensions, additions, betterments and improvements
thereto, to the extent and in the manner customary for companies in similar businesses.

5.20 Further Actions. Promptly upon the request of the Agent, execute and deliver or
cause to be executed and delivered each writing, and take or cause to be taken each other action,
that the Agent shall deem necessary or desirable at the sole option of the Agent to perfect or
otherwise preserve or protect the priority of any security interest, mortgage or other lien or
encumbrance imposed or created pursuant to any Loan Document or to correct any error in any Loan
Document.

ARTICLE VI. NEGATIVE COVENANTS

As long as this Agreement is in effect and until such time as the Commitments have been
terminated, no Notes remain outstanding and the Loans, together with all interest, fees, charges
and expenses under the Loan Documents have been paid in full:

6.1 Indebtedness. Neither the Borrower nor any Subsidiary will create, incur, assume or suffer to exist any
Indebtedness except (a) to the Agent and the Lenders, (b) the Seller Notes, (c) as set forth on
Schedule 6.2 attached hereto, (d) Indebtedness owed by a Subsidiary to the Borrower or to another
Subsidiary or by the Borrower to a Subsidiary, in each case made in the ordinary course of business
including, without limitation, in connection with a Permitted Acquisition, (e) Indebtedness not in
excess of $6,000,000 outstanding at any one time incurred for Capital Leases of fixed assets or
fixed asset purchases, (f) unsecured Indebtedness, exclusive of the Seller Notes, not exceeding
$7,000,000 outstanding at any one time that is subordinated to the Indebtedness of the Borrower to
the Lenders under this Agreement in a manner reasonably satisfactory to the Agent, (g) Indebtedness
incurred under Hedge Agreements entered into for the purposes of mitigating interest rate or
foreign currency risk and (h) any other Indebtedness not exceeding $7,000,000 outstanding at any
one time; provided that Borrower or any Subsidiary may exchange, refinance or refund any such
Indebtedness described in clause (c) hereof if the aggregate principal amount thereof (or
Capitalized Lease Obligation in the case of a Capital Lease or present value, based on the implicit
rate, in the case of a Synthetic Lease) is not increased (other than in connection with the
capitalization of interest).

 

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6.2 Encumbrances. Neither the Borrower nor any Subsidiary will create, incur, assume or
suffer to exist any mortgage, lien, security interest, pledge or other encumbrance on any of its
property or assets, whether now owned or hereafter owned or acquired, except in favor of the Agent
or a trustee for the benefit of the Agent and except for the following permitted encumbrances
(collectively, the “Permitted Encumbrances”): (a) any lease of any asset as a lessor in the
ordinary course of its business and without interference with the conduct of its business or
operations, (b) any pledge or deposit made by the Borrower or any Subsidiary in the ordinary course
of its business (i) in connection with any workers’ compensation, unemployment insurance, social
security or similar statute, regulation or other law or (ii) to secure the payment of any
indebtedness, liability or obligation in connection with any letter of credit, bid, tender, trade
or government contract, lease, surety, appeal or performance bond or statute, regulation or other
law, or of any similar indebtedness, liability or obligation, not incurred in connection with the
borrowing of any money or in connection with the deferral of the payment of the purchase price of
any asset, (c) any attachment, levy or similar lien with respect to the Borrower or any Subsidiary
arising in connection with any action or other legal proceeding so long as (i) the validity of the
claim or judgment secured thereby is being contested in good faith by appropriate proceedings
promptly instituted and diligently conducted, (ii) adequate reserves have been appropriately
established for such claim or judgment, (iii) the execution or other enforcement of such
attachment, levy or similar lien is effectively stayed and (iv) neither such claim or judgment nor
such attachment, levy or similar lien has a Material Adverse Effect, (d) any statutory lien in
favor of the United States for any amount paid to the Borrower or any Subsidiary as a progress
payment pursuant to any government contract, (e) any statutory lien securing the payment of any
tax, assessment, fee, charge, fine or penalty imposed by any government or political subdivision
upon the Borrower or any Subsidiary or upon any of its respective assets but not yet due to be paid
(excluding any lien arising under ERISA), (f) any statutory lien securing the payment of any claim
or demand of any materialman, mechanic, carrier, warehouseman, garageman or landlord against the
Borrower or any Subsidiary, but not yet due to be paid, (g) any reservation, exception,
encroachment,
easement, right-of-way, covenant, condition, restriction, lease or similar title exception or
encumbrance affecting title to any real property of the Borrower or any Subsidiary but not
interfering with the conduct of its business or operations, (h) liens listed on Schedule 6.2 hereto
and (i) liens on assets securing Indebtedness permitted by Section 6.1(a), (e), (g) or (h) hereof.

 

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6.3 Investments and Guaranty Obligation. Neither the Borrower nor any Subsidiary will,
directly or indirectly, (i) make or commit to make any Investment or (ii) be or become obligated
under any guaranty other than a Guaranty, except for the following permitted investments
(collectively, the “Permitted Investments”):

(a) Investments by Borrower or any Subsidiary in (i) Cash and Cash Equivalents (each as
defined under GAAP) including any readily marketable direct obligation of the United States
maturing within one year after the date of acquisition thereof, (ii) any time deposit maturing
within one year after the date of acquisition thereof and issued by any banking institution that is
authorized to conduct a banking business under any statute of the United States or any state
thereof, or with respect to a Foreign Subsidiary authorized to conduct a banking business under any
statute of the foreign country in which such Foreign Subsidiary is formed or organized or any
political subdivision thereof, and has a combined capital and surplus of not less than
$100,000,000, (iii) any demand or savings deposit with any such institution, (iv) any Dollar
deposits in the London Interbank Market with such banking institution or any subsidiary of any such
banking institution, and (v) any commercial paper rated at least A-1 by Standard & Poor’s Ratings
Group or P-1 by Moody’s Investor Services, Inc.;

(b) to the extent not permitted by the foregoing, Investments existing as of the Closing Date
and described on Schedule 6.3 hereto; and

(c) intercompany advances or loans permitted by Section 6.1 or Contingent Obligations incurred
by a Subsidiary or by the Borrower, with respect to the obligations of the Borrower or any
Subsidiary, entered into in the ordinary course of business, including, without limitation, in
connection with a Permitted Acquisition and any other Investment (i) of Borrower or any Subsidiary
in any Subsidiary existing as of the Closing Date, (ii) of Borrower in any Guarantor made after the
Closing Date, (iii) of any Guarantor in any Guarantor made after the Closing Date, (iv) to fund the
consideration directly relating to a Permitted Acquisition, including, without limitation, capital
contributions made by the Borrower in a Subsidiary, or by any Subsidiary in another Subsidiary, or
purchases made by the Borrower of the Equity Interests of a Subsidiary, or by any Subsidiary of the
Equity Interests of another Subsidiary, in connection with a Permitted Acquisition subject,
however, to any limits applicable to a Permitted Acquisition under Section 6.7(c) of this
Agreement, or (v) not exceeding $3,500,000 in the aggregate over the term of this Agreement.

6.4 Equity Interest Repurchases. Neither the Borrower nor any Subsidiary will, directly or
indirectly make any repurchase or repurchases of Equity Interests in the Borrower or any Subsidiary
except for (a) the repurchase by a Subsidiary of Equity Interests owned by the Borrower or another
Subsidiary and (b) repurchases made in accordance with the following procedures that do not exceed
$15,000,000 in the aggregate over the term of this Agreement (“Aggregate Limit”). When Borrower
intends
to make any repurchase or repurchases, Borrower will execute and deliver to the Agent and the
Lenders before consummating such repurchase or repurchases a Compliance Certificate certifying (i)
the maximum dollar amount of the repurchases that the Borrower may make so that the statements
hereafter set forth are true (“Maximum Repurchase Amount”) and the dollar amount that the Borrower
intends in fact to repurchase, which must be an amount equal to or less than the Maximum Repurchase
Amount, (ii) that, as of the date of execution and delivery of the Compliance Certificate, there
does not exist, and there will not occur as a direct or indirect result of the consummation of
repurchases in the Maximum Repurchase Amount, any Event of Default or Default, (ii) that Borrower
is in compliance with the Financial Covenants as of the last fiscal quarter of Borrower most
recently ended for which financial statements are then available or required to be delivered under
Section 5.2 of this Agreement, (iii) that, based on pro-forma projections covering the four fiscal
quarters of Borrower following the date of such Compliance Certificate, Borrower will be in
compliance with the Financial Covenants upon and after consummation of repurchases in the Maximum
Repurchase Amount, (iv) that Available Cash

 

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Flow (as defined in the next paragraph) as then
computed less the Maximum Repurchase  Amount is equal to a number greater than 0; (v) the amount of
such repurchases which Borrower has made from the date of this Agreement through the date of the
Compliance Certificate (“Past Repurchase Amount”), and (vi) that the sum of the Maximum Repurchase
Amount and the Past Repurchase Amount does not exceed the Aggregate Limit. Provided Borrower
complies with the foregoing and there is no Default or Event of Default then in existence, Borrower
may make such repurchases up to the Maximum Repurchase Amount from the date of such Compliance
Certificate until the later of the date which is (i) the last day of the fiscal quarter in which
such Compliance Certificate is executed and delivered to the Agent and the Lenders or (ii) 60 days
following such execution and delivery of the Compliance Certificate, and thereafter may only
repurchase Equity Interests by delivering a new Compliance Certificate and repeating the foregoing
procedures, which may be repeated throughout the term of this Agreement.

“Available Cash Flow” means the amount equal to Borrower’s Consolidated EBITDA less the sum of
Borrower’s Consolidated Capital Expenditures, cash taxes, Consolidated Interest Expense, scheduled
principal payments (excluding prepayments of principal) paid on long term Indebtedness and
dividends, in each case for the twelve month period ending as of the last fiscal quarter period of
the Borrower for which financial statements are then available or required to be delivered under
Section 5.2 of this Agreement.

6.5 Limitation on Certain Restrictive Agreements. Neither the Borrower nor any Subsidiary
will, directly or indirectly, enter into, incur or permit to exist or become effective, any
“negative pledge” covenant or other agreement, restriction or arrangement that prohibits, restricts
or imposes any condition upon (a) the ability of Borrower or any Subsidiary to create, incur or
suffer to exist any Lien upon any of its property or assets as security for Indebtedness, or (b)
the ability of any such Subsidiary to make dividends or distributions or any other interest or
participation in its profits owned by the Borrower or any Subsidiary, or pay any Indebtedness owed
to the Borrower or a Subsidiary, or to make loans or advances to the Borrower or any other
Subsidiaries, or transfer any of its property or assets to the Borrower or any other Subsidiaries,
except for such restrictions existing under or by reason of (i) applicable law, (ii) this Agreement
and the other Loan Documents, (iii) customary provisions
restricting subletting or assignment of any lease governing a leasehold interest, (iv) customary
provisions restricting assignment of any licensing agreement entered into in the ordinary course of
business, (v) customary provisions restricting the transfer or further encumbering of assets
subject to Liens permitted under Section 6.2, (vi) customary restrictions affecting only a
Subsidiary under any agreement or instrument governing any of the Indebtedness of a Subsidiary
permitted pursuant to Section 6.1, (vii) any document relating to Indebtedness secured by a
Permitted Encumbrance, insofar as the provisions thereof limit grants of junior liens on the assets
securing such Indebtedness, and (viii) any Operating Lease or Capital Lease, insofar as the
provisions thereof limit grants of a security interest in, or other assignments of, the related
leasehold interest to any other Person.

6.6 Material Indebtedness Agreements.

(a) Amendments. Neither the Borrower nor any Subsidiary will amend, restate,
supplement or otherwise modify the Seller Notes (except in accordance with the provisions of the
Subordination Agreement), or any Material Indebtedness without the prior written consent of the
Agent if any such amendment, restatement, supplement or other modification would materially impact
the rights or remedies of the Agent and the Lenders hereunder.

 

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(b) Prepayment and Refinance of Other Debt, etc. After the Closing Date, the Borrower
will not, and will not permit any Subsidiary to, make (or give any notice in respect thereof) any
voluntary or optional payment or prepayment or redemption or acquisition for value of (including,
without limitation, by way of depositing with the trustee with respect thereto money or securities
before due for the purpose of paying when due) or exchange of, or refinance or refund, any
Indebtedness of Borrower or its Subsidiaries that has an outstanding principal balance (or
Capitalized Lease Obligation, in the case of a Capital Lease or present value, based on the
implicit interest rate, in the case of a Synthetic Lease) greater than $7,000,000 (other than the
Indebtedness and intercompany loans and advances among Borrower and its Subsidiaries);
provided that (a) Borrower or any Subsidiary may exchange refinance or refund any
such Indebtedness if the aggregate principal amount thereof (or Capitalized Lease Obligation, in
the case of a Capital Lease or present value, based on the implicit interest rate, in the case of a
Synthetic Lease) is not increased (other than in connection with the capitalization of interest),
(b) the Borrower or any Subsidiary may make any such payment or prepayment or redemption or
acquisition for value if any such payment or prepayment or redemption or acquisition for value is
made with the proceeds of the sale of Equity Interests in Borrower remaining after Borrower has
made any mandatory prepayment of the Indebtedness required pursuant to Section 2.7(b)(i)(2) of this
Agreement, and (c) the Borrower may make a prepayment of up to $5,000,000 on the Seller Notes,
notwithstanding anything to the contrary in the Subordination Agreement; provided no Default or
Event of Default then exists or would be caused by the making of such prepayment.

6.7 Consolidation, Merger, Acquisitions, Asset Sales, etc. Neither the Borrower nor any
Subsidiary will (1) wind up, liquidate or dissolve its affairs, (2) enter into any transaction of
merger or consolidation, (3) make or otherwise effect any acquisition of all or substantially all
of the assets or Equity Interests of any other Person, or
assets constituting all or substantially all of a division or product line of any other Person,
other than Permitted Acquisitions set forth in Section 6.7(c), (4) sell or otherwise dispose of any
of its property or assets outside the ordinary course of business, or otherwise make or otherwise
effect any Asset Sale, or (5) agree to do any of the foregoing at any future time, except the
following shall be permitted (collectively, 6.7(a) and 6.7(b) being “Permitted Dispositions”):

(a) Certain Intercompany Mergers. If no Default or Event of Default shall have
occurred and be continuing or would result therefrom, (i) the merger, consolidation or amalgamation
of any Domestic Subsidiary with or into Borrower, provided Borrower is the surviving or continuing
or resulting corporation; (ii) the merger, consolidation or amalgamation of any Domestic Subsidiary
with or into any Guarantor, provided that the surviving or continuing or resulting corporation is a
Guarantor, (iii) the merger, consolidation or amalgamation of any existing Foreign Subsidiary with
or into any other existing Foreign Subsidiary; (iv) any Asset Sale by Borrower or any Guarantor to
Borrower or any Guarantor, (v) any Asset Sale by any Foreign Subsidiary to Borrower or any
Guarantor; or (vi) any Asset Sale by any existing Foreign Subsidiary to any other existing Foreign
Subsidiary.

 

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(b) Other Dispositions. If no Default or Event of Default shall have occurred and be
continuing or would result therefrom, and no Material Adverse Effect has occurred or will result
therefrom, the Borrower or any Subsidiary may consummate any Asset Sale, provided that: (i) the
consideration for each such Asset Sale represents fair value and any non-cash consideration
qualifies as a Permitted Investment hereunder and the aggregate of all such non-cash consideration
does not exceed $7,000,000 over the term of this Agreement; and (ii) the cumulative aggregate value
of the assets subject to Asset Sales does not exceed $10,000,000 in any one fiscal year (excluding
for purposes of computing such maximum amount conveyances of mere record title to any asset to a
Governmental Authority to save taxes where Borrower or any Subsidiary has an option to require
reconveyance of such property for a nominal price) for all such transactions completed during any
fiscal year.

(c) Permitted Acquisitions. Any acquisition by Borrower or any Subsidiary of all or
substantially all of the assets or Equity Interests of any other Person (the “Target”) in a related
line of business, or assets constituting all or substantially all of a division or product line of
a Target in a related line of business, so long as Borrower delivers to the Agent and the Lenders a
certificate in form and content satisfactory to the Agent (“Acquisition Certificate”) indicating
that (i) immediately prior to contracting for or consummating such acquisition there does not
exist, and there does not occur as a direct or indirect result of the consummation of such
acquisition, any Event of Default or Default, (ii) Borrower is in compliance with the Financial
Covenants on a pro-forma basis as of the last fiscal quarter of Borrower most recently ended for
which financial statements are then available or required to be delivered under Section 5.2 of this
Agreement assuming the acquisition had been consummated during such quarter, and Borrower
demonstrates based on pro-forma projections covering the four fiscal quarters of the Borrower
following the date of such Acquisition Certificate that Borrower will be in compliance with the
Financial Covenants upon and after consummation of such acquisition, (iii) such acquisition is
being completed on a non-hostile basis without opposition from the board of directors, managers or
equity owners of the Target, (iv) with respect to any assets or Equity Interest of any Person
acquired directly or indirectly pursuant to
any such acquisition, there are no liens thereon other than Permitted Encumbrances, and (v)
the aggregate Consideration paid by Borrower and all Subsidiaries in connection with any such
acquisition does not exceed $10,000,000 (including any investments made pursuant to Section
6.3(c)(iv), and the aggregate Consideration for all such acquisitions during the term of this
Agreement does not exceed $20,000,000 (including any investments made pursuant to Section
6.3(c)(iv), unless specifically consented to by the Required Lenders (each such acquisition, a
“Permitted Acquisition” and all such acquisitions, the “Permitted Acquisitions”).

6.8 Transactions with Affiliates. Neither the Borrower nor any Subsidiary will enter into
any transaction or series of transactions with any Affiliate (other than, in the case of the
Borrower, any Subsidiary, and in the case of a Subsidiary, the Borrower or another Subsidiary)
(each, an “Affiliate Transaction”), except for transactions in the ordinary course of business upon
fair and reasonable terms no less favorable to the Borrower or any Subsidiary than would apply in a
comparable arm’s length transaction with a Person who is not an Affiliate, and agreements and
transactions with and payments to officers, directors and shareholders that are either (i) entered
into in the ordinary course of business and not prohibited by any of the provisions of this
Agreement or that are expressly permitted by the provisions of this Agreement, or (ii) entered into
outside the ordinary course of business, approved by the directors or shareholders of the Borrower,
and not prohibited by any of the provisions of this Agreement or in violation of any law, rule or
regulation.

 

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6.9 Disposal of Hazardous Substances. Neither the Borrower nor any Subsidiary will suffer,
cause or permit the Disposal of Hazardous Substances at any property owned, leased or operated by
the Borrower or any Subsidiary, except in the ordinary course of the Borrower’s business in
material compliance with applicable Environmental Laws.

6.10 Fiscal Year, Fiscal Quarters. Neither the Borrower nor any Subsidiary will change
its, or permit any Guarantor or other Subsidiary to change its, fiscal year or fiscal quarters
(other than the fiscal year or fiscal quarters of a Person that becomes a Subsidiary, at the time
such Person becomes a Subsidiary, to conform to Borrower’s, any Subsidiary’s fiscal year and fiscal
quarters).

6.11 Anti-Terrorism Laws. Neither the Borrower nor any Subsidiary shall be subject to or
in violation of any law, regulation, or list of any government agency (including without
limitation, the U.S. Office of Foreign Asset Control list, Executive Order No. 13224 or the USA
Patriot Act) that prohibits or limits the conduct of business with or the receiving of funds, goods
or services to or for the benefit of certain Persons specified therein or that prohibits or limits
any Lender or any Issuing Bank from making any advance or extension of credit to the Borrower or
from otherwise conducting business with the Borrower. Without limiting the foregoing, Borrower
will not, and will not permit any Controlled Entity (as defined in Section 4.21(b) hereof) to (i)
become a
Blocked Person or (ii) have any investments in, or knowingly (as such term is defined in Section
(101)(6) of CISADA) engage in any dealings on transactions with, any Blocked Person.

6.12 Changes in Business. Neither the Borrower nor any Subsidiary will engage in any
business if, as a result, the general nature of the business, taken on a Consolidated Basis, which
would then be engaged in by the Borrower and any Subsidiary, would be substantially changed from
the general nature of the business engaged in by the Borrower and any Subsidiary on the Closing
Date.

6.13 Minimum Fixed Charge Coverage Ratio. The Borrower will not permit, as of the end of
each fiscal quarter of Borrower ending on or after September 30, 2011, the Borrower’s Fixed Charge
Coverage Ratio to be less than 1.25 to 1.0.

6.14 Maximum Capital Expenditures. The Borrower will not permit Consolidated Capital
Expenditures to be made or incurred in excess of $15,000,000 for Borrower’s 2011 fiscal year or in
any one fiscal year thereafter.

6.15 Maximum Leverage Ratio. The Borrower will not permit, as of the end of each fiscal
quarter ending on or after September 30, 2011, the Leverage Ratio to exceed 3.25 to 1.0.

 

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ARTICLE VII. DEFAULT

7.1 Events of Default. The occurrence of any one or more of the following events shall
constitute an event of default (individually, “Event of Default,” or, collectively, “Events of
Default”):

(a) Nonpayment. Nonpayment within three (3) Business Days after the same becomes due
whether by acceleration or otherwise of (i) principal of, or interest on, any of the Notes; (ii)
any charge, fee or premium provided for hereunder or under the Fee Letter; or (iii) any
reimbursement obligation in connection with any Letter of Credit, the Existing Letter of Credit or
the IRB Letters of Credit.

(b) Negative Covenants. Default in the observance of any of the covenants or
agreements of the Borrower contained in Article VI.

(c) Other Covenants. Default in the observance of any of the covenants or agreements
of the Borrower contained in this Agreement or any other Loan Document, other than those specified
in Sections 5.1 and 7.1(b) hereof, which is not remedied within thirty (30) days after notice
thereof by the Agent to the Borrower.

(d) Voluntary Insolvency Proceedings. If the Borrower or any Subsidiary (i) shall
file a petition or request for liquidation, reorganization, arrangement, adjudication as a
bankrupt, relief as a debtor or other relief under the bankruptcy, insolvency or similar laws of
the United States of America or any state or territory thereof or any foreign jurisdiction, now or
hereafter in effect; (ii) shall make a general assignment for the benefit of creditors; (iii) shall
consent to the appointment of a receiver or trustee for the Borrower or any Subsidiary or any of
the Borrower’s or any Subsidiary’s assets, including, without limitation, the appointment of or
taking possession by a “custodian” as defined in the Bankruptcy Code; (iv) shall make any, or send
notice of any intended, bulk sale; or (v) shall execute a consent to any other type of insolvency
proceeding (under the Bankruptcy Code or otherwise) or any formal or informal proceeding for the
dissolution or liquidation of, or settlement of claims against or winding up of affairs of, the
Borrower or any Guarantor or other Subsidiary.

(e) Involuntary Insolvency Proceedings. The appointment of a receiver, trustee,
custodian or officer performing similar functions for the Borrower or any Subsidiary or any of the
Borrower’s or any Subsidiary’s assets, including, without limitation, the appointment of or taking
possession by a “custodian” as defined in the Bankruptcy Code; or the filing against the Borrower
or any Subsidiary of a request or petition for liquidation, reorganization, arrangement,
adjudication as a bankrupt or other relief under the bankruptcy, insolvency or similar laws of the
United States of America or any state or territory thereof or any foreign jurisdiction, now or
hereafter in effect; or the institution against the Borrower or any Subsidiary of any other type of
insolvency proceeding (under the Bankruptcy Code or otherwise) or of any formal or informal
proceeding for the dissolution or liquidation of, settlement of claims against or winding up of
affairs of the Borrower or any Subsidiary, and the failure to have such appointment vacated or such
filing, petition or proceeding dismissed within ninety (90) days after such appointment, filing or
institution.

 

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(f) Representations. If any certificate, statement, representation, warranty or
financial statement furnished by or on behalf of the Borrower or any Subsidiary pursuant to or in
connection with this Agreement or as an inducement to the Agent and the Lenders to enter into this
Agreement or any other lending agreement with the Borrower shall prove to have been false in any
material respect at the time as of which the facts therein set forth were represented, or to have
omitted any substantial contingent or unliquidated liability or claim against the Borrower or any
Subsidiary required to be stated therein, or if on the date of the execution of this Agreement
there shall have been any materially adverse change in any of the facts disclosed by any such
statement or certificate, which change shall not have been disclosed by the Borrower to Lenders at
or prior to the time of such execution.

(g) Cross Default Under Other Agreements. If the Borrowers or any of their
Subsidiaries shall (i) default in any payment with respect to any of the Existing Bonds, the IRB
Letters of Credit, the Existing Letter of Credit (collectively, the “Existing Indebtedness”) or any
Material Indebtedness (other than this Agreement), and such default shall continue after the
applicable grace period, if any, specified in the agreement or instrument relating to such Existing
Indebtedness or such Material Indebtedness; or (ii) default in the observance or performance of any
agreement or condition relating to any such Existing Indebtedness or such Material Indebtedness or
contained in any instrument or agreement
evidencing, securing or relating thereto (and all grace periods applicable to such observance,
performance or condition shall have expired), or any other event shall occur or condition exist,
the effect of which default or other event or condition is to cause, or to permit the holder or
holders of such Existing Indebtedness or such Material Indebtedness (or a trustee or agent on
behalf of such holder or holders) to cause any such Existing Indebtedness or such Material
Indebtedness to become due prior to its stated maturity; or such Existing Indebtedness or such
Material Indebtedness of the Borrowers or any of their Subsidiaries shall be due and payable, or
shall be required to be prepaid (other than by a regularly scheduled required prepayment or
redemption), prior to the stated maturity thereof; or (iii) without limitation of the foregoing
clauses, default in any payment obligation under a Designated Hedge Agreement, and such default
shall continue after the applicable grace period, if any, specified in such Designated Hedge
Agreement or any other agreement or instrument relating thereto.

(h) Judgments. If any judgment or judgments (other than any judgment for which it is
fully insured) against the Borrower or any Subsidiary in an aggregate amount in excess of
$7,000,000 remains unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period
of thirty (30) days after entry thereof.

(i) Pension Default.

(1) The Borrower or any of its Subsidiaries (or any officer or director thereof) shall engage
in any “prohibited transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code)
involving any Plan,

(2) any “accumulated funding deficiency” (as defined in Section 302 of ERISA), shall exist
with respect to any Plan,

 

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(3) with respect to any Multiemployer Plan, the Borrower or any Commonly Controlled Entity
fails to make a contribution required to be made thereto, or withdraws therefrom, where in either
event the liability of the Borrower or such Commonly Controlled Entity is in excess of $100,000,

(4) a Reportable Event shall occur with respect to, or proceedings shall commence to have a
trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Plan which
is not a Multiemployer Plan, which Reportable Event or institution of proceedings is, in the
reasonable opinion of the Agent, likely to result in the termination of such Plan for purposes of
Title IV of ERISA and, in the case of a Reportable Event, the continuance of such Reportable Event
unremedied for ten (10) days after notice of such Reportable Event pursuant to Section 4043(a), (c)
or (d) of ERISA is given or the continuance of such proceedings for ten (10) days after
commencement thereof, as the case may be,

(5) any Plan shall terminate for purposes of Title IV of ERISA, or

(6) any other similar event or condition shall exist which, together with all other events or
conditions in clauses (1) through (5) above, if any, would
subject the Borrower or any of its Subsidiaries to any tax, penalty or other liabilities under
ERISA in the aggregate material in relation to the business, operations, property or financial or
other condition of the Borrower and its Subsidiaries taken as a whole.

(j) Change in Control. If there occurs a Change in Control.

(k) Challenge to Loan Documents. If Borrower or any Subsidiary shall challenge the
validity and binding effect of any provision of any of the Loan Documents or shall state its
intention to make such a challenge of any of the Loan Documents or any of the Collateral Documents
shall for any reason (except to the extent permitted by its express terms) cease to be perfected or
lose the priority of the Lien granted thereunder or cease to be effective.

(l) Guarantor Default. Any Guaranty shall cease, for any reason, to be in full force
and effect or any Guarantor or the Borrower shall so assert in writing.

(m) Senior Indebtedness. If (1) the Indebtedness under this Agreement shall cease to
be “Senior Indebtedness” under and as defined in the Subordination Agreement, (2) any Indebtedness
other than the Indebtedness under this Agreement shall constitute “Senior Indebtedness” under and
as defined in the Subordination Agreement, (3) any holder of the Seller Notes fails to comply with
the provisions of the Subordination Agreement in a manner which could adversely effect the rights
or remedies of the Agent or the Lenders under the Subordination Agreement, or (4) the Subordination
Agreement shall, in whole or in part, cease to be effective or legal, valid and binding on the
holders of the Seller Notes.

 

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7.2 Effects of an Event of Default. (a) Upon the happening of one or more Events of
Default (except a default with respect to the Borrower or any Subsidiary under either Section
7.1(d) or 7.1(e) hereof), the Agent may, and shall at the request of the Required Lenders, by
notice to the Borrower declare any commitments of the Lenders to lend money to the Borrower or
issue Letters of Credit hereunder (individually, the “Lender’s Obligations”, and collectively, the
“Lenders’ Obligations”) to be cancelled and the principal of the Notes then outstanding and all
reimbursement, Cash Collateralization and other obligations of the Borrower (other than under any
Designated Hedge Agreement) to be immediately payable and any Letters of Credit outstanding to be
terminated (to the extent each such Letter of Credit is terminable in accordance with its terms),
together with all interest thereon and fees and expenses accruing under this Agreement and under
any Loan Document. Upon such declaration, the Lenders’ Obligations shall be immediately canceled
and the Notes shall become immediately due and payable without presentation, demand or further
notice of any kind to the Borrower.

(b) Upon the happening of one or more Events of Default under Section 7.1(d) or 7.1(e) hereof
with respect to the Borrower or any Subsidiary, the Lenders’ Obligations shall be cancelled
immediately, automatically and without notice, and the Notes shall become immediately payable
without presentation, demand or notice of any kind to the Borrower.

(c) No termination of this Agreement will relieve or discharge Borrower of its duties,
obligations and covenants hereunder until all of the Indebtedness hereunder has been indefeasibly
paid in full.

7.3 Remedies. Upon the occurrence and during the continuance of any Event of Default or
upon any termination of this Agreement as a result of an Event of Default, then any of the Lenders
and the Agent shall have all of their rights under this Agreement or otherwise under law. In
addition to, and without limitation of, any rights of the Lenders under applicable law, if any
Event of Default occurs, any and all deposits (including all account balances, whether provisional
or final and whether or not collected or available) and any other Indebtedness at any time held or
owing by any Lender to or for the credit or account of Borrower may be offset and applied toward
the payment of the Indebtedness of the Borrower due under this Agreement or the Loan Documents.

7.4 Application of Certain Payments and Proceeds. All payments and other amounts received
by the Agent or any Lender through the exercise of remedies hereunder or under the other Loan
Documents shall, unless otherwise required by the terms of the other Loan Documents or by
applicable law, be applied as follows:

(i) first, to the payment of all expenses (to the extent not otherwise paid by the Borrower or
any of the Guarantors) incurred by the Agent and the Lenders in connection with the exercise of
such remedies, including, without limitation, all reasonable costs and expenses of collection,
reasonable attorneys’ fee and expenses, court costs and any foreclosure expenses;

(ii) second, to the payment pro rata of interest then accrued on the outstanding Loans;

(iii) third, to the payment pro rata of any fees and expenses (other than expenses paid under
item (i) above) then accrued and payable to the Agent, any Issuing Bank or any Lender under this
Agreement in respect of the Loans or the Letters of Credit;

 

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(iv) fourth, to the payment pro rata of (A) the principal balance then owing on the
outstanding Loans, (B) the amounts then due under Designated Hedge Agreements to creditors of the
Borrower or any Subsidiary, subject to confirmation by the Agent of any calculations of termination
or other payment amounts being made in accordance with normal industry practice, (C) the principal
amount of the outstanding Letters of Credit (to be held and applied by the Agent as security for
the reimbursement obligations in respect thereof) and (D) the unreimbursed amount of any LC
Disbursements including drawings on the IRB Letters of Credit and the Existing Letter of Credit;

(v) fifth, to the payment to the Lenders of any amounts then accrued and unpaid under Sections
2.9, 2.10 and 2.11 of this Agreement, and if such proceeds are insufficient to pay such amounts in
full, to the payment of such amounts pro rata;

(vi) sixth, to the payment pro rata of all other amounts owed by the Borrower to the Agent, to
any Issuing Bank or any Lender under this Agreement or any other Loan Document, and to any
counterparties under Designated Hedge Agreements of the Borrower and any Subsidiary, and if such
proceeds are insufficient to pay such amounts in full, to the payment of such amounts pro rata; and

(viii) finally, any remaining surplus after all of the Indebtedness has been paid in full, to
the Borrower or to whomsoever shall be lawfully entitled thereto.

ARTICLE VIII. INDEMNIFICATION — COSTS AND EXPENSES

8.1 Indemnification. The Borrower agrees to indemnify, defend, and hold harmless the
Agent, the Lenders, the Issuing Bank and their respective Related Parties from and against any and
all liabilities, claims, damages, penalties, expenditures, losses, or charges incurred in
connection with this Agreement, including, but not limited to, the use of, or proposed use of, the
proceeds borrowed under this Agreement, and all costs of investigation, monitoring, legal
representation, remedial response, removal, restoration or permit acquisition, which may now or in
the future be undertaken, suffered, paid, awarded, assessed, or otherwise incurred by the Agent,
any Lender, the Issuing Bank or their respective Related Parties, or any other Person as a result
of the presence of, Release of or threatened Release of Hazardous Substances on, in, under or near
the property owned or operated by the Borrower or any Subsidiary except to the extent resulting
from the gross negligence or willful misconduct of the indemnified party as determined by a final
nonappealable judgment of a court of competent jurisdication. The liability of the Borrower under
the covenants of this Section is not limited by any exculpatory provisions in this Agreement and
shall survive repayment of the Notes, or any transfer or termination of this Agreement regardless
of the means of such transfer or termination, with respect to acts or omissions or a Release
occurring before such repayment, transfer or termination.

 

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8.2 Expenses. The Borrower shall reimburse the Agent promptly for all of its out-of-pocket
expenses including, without limitation, reasonable counsel fees, filing fees, appraisal fees and
recording fees incurred in connection with this Agreement and with any indebtedness subject hereto
and for any taxes which the Agent may be required to pay in connection with the execution and
delivery of this Agreement and the Notes. The Borrower shall further reimburse the Agent, the
Lenders and the Issuing Bank promptly for any reasonable expenses, including counsel fees and
out-of-pocket expenses, incident to the enforcement of any provision of this Agreement, the Notes
or any other document executed in connection with this Agreement or in connection with any Letter
of Credit. Without limiting the Borrower’s obligation to reimburse the Agent, the Lenders and the
Issuing Bank pursuant to this Section 8.2, the Borrower hereby irrevocably authorizes the Agent to
make Revolving Loans to the Borrower and to use the proceeds thereof to pay any amount owed by the
Borrower under this Section 8.2 upon the failure of the Borrower to make such payment, and the
Agent agrees to notify the Borrower of the making of such Revolving Loans. Any such Revolving
Loans shall be made (i) in the minimum amount
necessary and (ii) without regard to the requirements of this Agreement with respect to notice or
minimum amount.

ARTICLE IX. THE AGENT AND ISSUING BANK

9.1 Appointment and Authorization.

(a) Appointment as Agent. Each Lender hereby irrevocably appoints HSBC Bank as Agent,
and HSBC Bank accepts such appointment. Each Lender hereby irrevocably authorizes the Agent to
take such action as such agent on its behalf and to exercise such powers hereunder as are delegated
to such agent by the terms hereof, together with such powers as are reasonably incidental thereto.
Neither the Agent nor any of its Related Parties shall be liable for any action taken or omitted to
be taken by such agent or them hereunder or in connection herewith, except for such agent’s or
their own gross negligence or willful misconduct as determined in a final judgment by a court of
competent jurisdiction. The Agent (a) shall have no duties or responsibilities except those
expressly set forth in this Agreement and in the other Loan Documents, and shall not by reason of
this Agreement or any other Loan Documents be a trustee or fiduciary for any Lender; (b) shall not
be responsible to any Lender for any recitals, statements, representations or warranties contained
in this Agreement or in any of the other Loan Documents, or in any certificate or other document
referred to or provided for in, or received by any Lender under, this Agreement or any other Loan
Documents, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or any other Loan Documents or any other document referred to or provided for herein
or therein or for any failure by Borrower, or any other Person to perform any of its obligations
hereunder or thereunder; and (c) shall not be responsible to any Lender for any action taken or
omitted to be taken by it hereunder or under any other Loan Documents or under any other document
or instrument referred to or provided for herein or therein or in connection herewith or therewith,
except in the event of such agent’s own gross negligence or willful misconduct, as determined by a
final judgment of a court of competent jurisdiction. The Agent may employ agents and
attorneys-in-fact and shall not be responsible for the negligence or misconduct of any such agent
or attorneys-in-fact selected by it in good faith. In administering the Letters of Credit, the
Issuing Bank shall not be under any liability to any Lender, except for such Issuing Bank’s own
gross negligence or willful misconduct, as determined in a final non-appealable decision of a court
of competent jurisdiction or as set forth in Section 2.4 of this Agreement.

 

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(b) Appointment as Secured Party Representative. In its capacity, the Agent is a
“representative” of the Secured Parties within the meaning of the term “secured party” as defined
in the New York Uniform Commercial Code. Each Lender confirms its authority for the Agent entering
into each of the Collateral Documents to which it is a party and to take all action contemplated by
such documents. Each Lender agrees that no Secured Party (other than the Agent) shall have the
right individually to seek to realize upon the security granted by any Collateral Document, it
being understood and agreed that such rights and remedies may be exercised solely by the Agent for
the benefit of the Secured Parties upon the terms of the Collateral Documents. In the event that
any Collateral is hereafter pledged by any Person as collateral security for the Secured
Obligations, the Agent is hereby authorized, and
hereby granted a power of attorney, to execute and deliver on behalf of the Secured Parties
any Loan Documents necessary or appropriate to grant and perfect a Lien on such Collateral in favor
of the Agent on behalf of the Secured Parties. The Lenders hereby authorize the Agent, at its
option and in its discretion, to release any Lien granted to or held by the Agent upon any
Collateral (i) as described in Section 9.14; (ii) as permitted by, but only in accordance with, the
terms of the applicable Loan Document; or (iii) if approved, authorized or ratified in writing by
the Required Lenders, unless such release is required to be approved by all of the Lenders
hereunder. Upon request by the Agent at any time, the Lenders will confirm in writing the Agent’s
authority to release particular types or items of Collateral pursuant hereto. Upon any sale or
transfer of assets constituting Collateral which is permitted pursuant to the terms of any Loan
Document, or consented to in writing by the Required Lenders or all of the Lenders, as applicable,
and upon at least five (5) Business Days’ prior written request by the Borrower to the Agent, the
Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may
be necessary to evidence the release of the Liens granted to the Agent for the benefit of the
Secured Parties herein or pursuant hereto upon the Collateral that was sold or transferred;
provided, however, that (i) the Agent shall not be required to execute any such
document on terms which, in the Agent’s opinion, would expose the Agent to liability or create any
obligation or entail any consequence other than the release of such Liens without recourse or
warranty, and (ii) such release shall not in any manner discharge, affect or impair the Secured
Obligations of the Borrower or any Guarantor under any Loan Document, or any Liens upon (or
obligations of the Borrower or any Guarantor in respect of) all interests retained by the Borrower
or any Guarantor, including (without limitation) the proceeds of the sale, all of which shall
continue to constitute part of the Collateral.

9.2 Waiver of Liability of Agent. The Agent shall not have any liability or, as the case
may be, any duty or obligation:

(a) To Borrower on account of any failure of any Lender to perform, or the delay of any Lender
in the performance of, any of its respective obligations under this Agreement or any of the Loan
Documents or any of the other documents in connection herewith;

(b) To any Lender on account of any failure or delay in performance by Borrower or any other
Lender of any of their respective obligations under this Agreement or any of the Loan Documents or
any of the other documents in connection herewith;

 

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(c) To any Lender to provide either initially or on a continuing basis any information with
respect to Borrower or any of its Affiliates or Subsidiaries or its condition, or for analyzing or
assessing or omitting to analyze or assess the status, creditworthiness or prospects of Borrower or
any of the Affiliates of Borrower or any Subsidiaries, provided, however, the Agent
shall promptly provide to each Lender a copy of the documents delivered by Borrower to the Agent
pursuant to Section 5.2 of this Agreement;

(d) To any Lender to investigate whether or not any Default or Event of Default has occurred
(and the Agent may assume that, until Agent shall have actual knowledge or shall have received
notice from any Lender or Borrower, to the contrary, no such Default or Event of Default has
occurred);

(e) To any Lender to account for any sum or profit or any property of any kind received by the
Agent or any Issuing Bank arising out of any present or future banking or other relationship with
Borrower or any of the Affiliates of Borrower or any Subsidiaries, or with any other Person except
the relationship established pursuant to this Agreement or the Loan Documents;

(f) To any Lender to disclose to any Person any information relating to Borrower or any of the
Affiliates of Borrower or any Subsidiaries received by the Agent or any Issuing Bank, if in any
such party’s reasonable determination (such determination to be conclusive), such disclosure would
or might constitute a breach of any law or regulation or be otherwise actionable by suit against
such agent or any Issuing Bank by Borrower or any other Person;

(g) To take any action or refrain from taking any action other than as expressly required by
this Agreement and the Loan Documents; and

(h) To commence any legal action or proceeding arising out of or in connection with this
Agreement or the Loan Documents until either of the Agent or the Issuing Bank, shall have been
indemnified to the Agent’s or the Issuing Bank’s satisfaction against any and all costs, claims and
expenses (including, but not limited to, attorneys’ fees and expenses) in respect of such legal
action or proceeding.

9.3 Note Holders. The Agent may treat the payee of any Note as the holder thereof until
written notice of transfer shall have been filed with it, signed by such payee and in form
satisfactory to the Agent.

9.4 Consultation with Counsel. The Agent may consult with legal counsel selected by the
Agent and shall not be liable for any action taken or suffered in good faith by the Agent in
accordance with the opinion of such counsel.

9.5 Documents. The Agent shall not be under any duty to examine into or pass upon the
validity, effectiveness, genuineness or value of any Loan Documents or any other documents
furnished pursuant hereto or in connection herewith or the value of any Collateral obtained
hereunder, and the Agent shall be entitled to assume that the same are valid, effective and genuine
and what they purport to be.

 

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9.6 Agent and Affiliates. With respect to the Loans, the Agent shall have the same rights
and powers hereunder as any other Lender and may exercise the same as though it were not the Agent,
and the Agent and its Affiliates may accept deposits from, lend money to and generally engage in
any kind of business with Borrower, any Guarantor or any other Subsidiary or any Affiliate thereof
including, without limitation, entering into any kind of Hedge Agreement with respect to the Loans.

9.7 Knowledge of Default. It is expressly understood and agreed that the Agent and each
Issuing Bank shall be entitled to assume that no Default or Event of Default has occurred and is
continuing, unless the Agent or such Issuing Bank has been notified by a Lender in writing that
such Lender believes that a Default or Event of Default has occurred and is continuing and
specifying the nature thereof.

9.8 Enforcement. In the event any remedy may be exercised with respect to this Agreement
or the Loan Documents, the Agent shall have the sole right of enforcement and each Lender agrees
that no Lender shall have any right individually to enforce any provision of this Agreement or the
Loan Documents, or make demand under this Agreement or the Loan Documents; provided,
that any Issuing Bank or the Agent on behalf of such Issuing Bank may make demand upon
Borrower as an Issuing Bank.

9.9 Action by Agent. (a) So long as the Agent shall be entitled, pursuant to Section 9.7
of this Agreement, to assume that no Default or Event of Default shall have occurred and be
continuing, the Agent shall be entitled to use its discretion with respect to exercising or
refraining from exercising any rights which may be vested in it by, or with respect to taking or
refraining from taking any action or actions which it may be able to take under or in respect of,
this Agreement. The Agent shall incur no liability under or in respect of this Agreement by acting
upon any notice, certificate, warranty or other paper or instrument believed by it to be genuine or
authentic or to be signed by the proper party or parties, or with respect to anything which it may
do or refrain from doing in the reasonable exercise of its judgment, or which may seem to it to be
necessary or desirable in the premises.

(b) Agent May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial, administrative or like proceeding or any assignment for the benefit of creditors relative
to Borrower or any of its Subsidiaries, the Agent (irrespective of whether any Indebtedness
hereunder shall then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Agent shall have made any demand on the Borrower) shall be entitled and
empowered, by intervention in such proceeding or otherwise;

(i) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of any Secured Obligations that are owing and unpaid and to file such other
documents as may be necessary or advisable in order to have the claims of the Secured Parties
(including any claim for the reasonable compensation, expenses, disbursements and advances of the
Secured Parties and their respective agents and counsel and all other amounts due the Secured
Parties under the terms of this Agreement) allowed in such judicial proceeding; and

(ii) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

 

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and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Secured Party, to make such payments
to the Agent and, in the event that the Agent shall consent to the making of such payments directly
to the Secured Parties, to pay to the Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of the Agent and its agents and counsel, and any other amounts
due the Agent under the terms of this Agreement.

Nothing contained herein shall be deemed to authorize the Agent to authorize or consent to or
accept or adopt on behalf of any Secured Party, any plan of reorganization, arrangement, adjustment
or composition affecting any Indebtedness under this Agreement or any other Loan Document or the
rights of any Secured Party, to authorize the Agent to vote in respect of the claim of any Secured
Party in any such proceeding.

9.10 Notices, Defaults, etc. In the event that the Agent shall have acquired actual
knowledge of any Default or Event of Default, the Agent shall promptly notify the Lenders and shall
take such action and assert such rights under this Agreement as the Required Lenders shall direct
and the Agent shall inform the other Lenders in writing of the action taken. The Agent may take
such action and assert such rights as it deems to be advisable, in its discretion, for the
protection of the interests of the holders of the Notes.

9.11 Indemnification of Agent. The Lenders agree to indemnify the Agent (to the extent not
reimbursed by the Borrower), ratably according to their respective Applicable Percentages from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on,
incurred by or asserted against the Agent in its capacity as the Agent in any way relating to or
arising out of this Agreement or any Loan Document or any action taken or omitted by the Agent with
respect to this Agreement or any Loan Document, provided no Lender shall be liable for any portion
of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including attorney fees and expenses) or disbursements resulting from the Agent’s gross
negligence or willful misconduct as determined in a final judgment by a court of competent
jurisdiction or from any action taken or omitted by the Agent in any capacity other than as the
Agent under this Agreement.

9.12 Successor Agent.

(a) The Agent may resign as the Agent hereunder by giving not fewer than thirty (30) days
prior written notice to the Borrower and the Lenders. If the Agent shall resign under this
Agreement, then provided no Event of Default has occurred, the Borrower shall have the right, (i)
with the consent of the Required Lenders, such consent not to be unreasonably withheld, to appoint
from among the Lenders a successor administrative agent for the Lenders who is willing to accept
such appointment, or (ii) with the consent of the Required Lenders, which may be withheld in their
sole discretion, to appoint a successor that is not a
Lender, but which shall be a bank with an office in New York State, or an Affiliate of any
such bank.

 

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(b) If no successor shall have been so appointed and approved within 30 days after the
retiring Agent gives notice of its resignation, then the retiring Agent may appoint a successor
Agent meeting the qualifications specified in Section 9.12(a), provided that if the Agent shall
notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then
such resignation shall nonetheless become effective in accordance with such notice and (i) the
retiring Agent shall be discharged from its duties and obligations hereunder and under the other
Loan Documents (except that in the case of any Collateral held by the Agent on behalf of the
Lenders under any of the Loan Documents, the retiring Agent shall continue to hold such Collateral
until such time as a successor Agent is appointed) and (ii) all payments, communications and
determinations provided to be made by, to or through the Agent shall instead be made by or to each
Lender directly, until such time as the Borrower appoints and the Required Lenders approve a
successor Agent as provided for above in the preceding paragraph.

(c) Upon its appointment, such successor administrative agent shall succeed to the rights,
powers and duties as the Agent, and the term “Agent” shall mean such successor effective upon its
appointment, and the former Agent’s rights, powers and duties as the Agent shall be terminated
without any other or further act or deed on the part of such former Agent or any of the parties to
this Agreement.

9.13 Lenders’ Independent Investigation. Each Lender, by its signature to this Agreement,
acknowledges and agrees that the Agent has made no representation or warranty, express or implied,
with respect to the creditworthiness, financial condition, or any other condition of Borrower or
any Subsidiary, or with respect to the statements contained in the Confidential Information
Materials or in any other oral or written communication between the Agent and such Lender. Each
Lender represents that it has made and shall continue to make its own independent investigation of
the creditworthiness, financial condition and affairs of the Borrower and any Subsidiary in
connection with the extension of credit hereunder, and agrees that the Agent has no duty or
responsibility, either initially or on a continuing basis, to provide any Lender with any credit or
other information with respect thereto (other than such notices as may be expressly required to be
given by the Agent to the Lenders hereunder), whether coming into its possession before the
granting of the first Loans hereunder or at any time or times thereafter.

9.14 Amendments, Consents. No amendment, modification, termination or waiver of any
provision of any Loan Document nor consent to any variance therefrom, shall be effective unless the
same shall be in writing and signed by the Agent and the Lenders or Required Lenders, as
appropriate, and then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given. Anything herein to the contrary notwithstanding, no
amendment, modification, termination or waiver shall increase the amount of any Commitment of any
Lender without the written consent of such Lender or increase the total Commitment without the
consent of all of the
Lenders, and the unanimous consent of the Lenders shall be required with respect to (a) the
extension or postponement of the Revolving Credit Maturity Date or the Term Loan Maturity Date, the
payment dates of interest thereunder, or the payment of facility or other fees or amounts payable
hereunder, (b) any reduction in the rate of interest on the Notes, or in any

 

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amounts of principal
or interest due on any Note or the payment of facility or other fees hereunder, (c) any change to
Section 2.5 or any other section of this Agreement in a manner that would alter the pro rata
funding of each Loan or participation in Swingline Loans or Letters of Credit, any change in the
manner of pro rata application of any payments made by the Borrower to the Lenders hereunder or any
change to the definition of Applicable Percentage, (d) any change in any percentage voting
requirement, voting rights, or the Required Lenders definition in this Agreement, (e) any amendment
to Section 7.4 of this Agreement, (f) the release of the Borrower or any Guarantor, (g) the release
of any material Collateral other than as provided below, or (h) any amendment to this Section 9.14
or to Section 9.16 of this Agreement; provided, however, only the consent of the
Required Lenders shall be required for a waiver involving (i) the applicability of any post-Event
of Default interest rate increase or the applicability of interest on Overdue Amounts as provided
in Section 2.6(c) of this Agreement, (ii) any reduction in the amount of Net Proceeds required to
be applied to prepay the Loans as provided in Section 2.7(b) of this Agreement or (iii) any other
amendment hereunder or under the other Loan Documents which does not specifically require unanimous
consent of the Lenders; provided, further that no such document shall amend, modify
or otherwise affect the rights or duties of the Agent, the Issuing Bank or the Swingline Lender
without the prior written consent of the Agent, the Issuing Bank or the Swingline Lender, as the
case may be, and any change to Section 2.15 shall require the consent of each of the Agent, the
Swingline Lender and the Issuing Bank. Notice of amendments or consents ratified by the Required
Lenders hereunder shall immediately be forwarded by the Agent to all Lenders. Each Lender or other
holder of a Note shall be bound by any amendment, waiver or consent obtained as authorized by this
Section, regardless of its failure to agree thereto. Except as specifically provided below, a
Defaulting Lender shall not be entitled to give instructions to the Agent or to approve,
disapprove, consent to or vote on any matters relating to this Agreement and the other Loan
Documents, and all amendments, waivers and other modifications of this Agreement and the other Loan
Documents may be made without regard to a Defaulting Lender.

The Lenders hereby irrevocably authorize the Agent, at its option and in its sole discretion,
to release any Liens granted to the Agent by the Borrower or any Guarantor on any Collateral (i)
upon the termination of the Commitments, payment and satisfaction in full in cash of all Secured
Obligations (other than any such Secured Obligations that are contingent in nature or unliquidated
at such time), and the Cash Collateralization of all such contingent and unliquidated Secured
Obligations in a manner satisfactory to the Agent, (ii) constituting property being sold or
disposed of if the Borrower certifies to the Agent that the sale or disposition is a Permitted
Disposition made in compliance with the terms of this Agreement (and the Agent may rely
conclusively on any such certificate, without further inquiry), and to the extent that the property
being sold or disposed of constitutes 100% of the Equity Interest of a Subsidiary and such sale is
permitted or approved under the terms of this Agreement, the Agent is authorized to release any
Guaranty provided by such Subsidiary, (iii) constituting property leased to the Borrower or a
Guarantor under a lease which has expired or been terminated in a transaction permitted under this
Agreement, or (iv) as required to effect any sale or other disposition of such
Collateral in connection with any exercise of remedies of the Agent and the Lenders pursuant
to Article VII. Except as provided in the preceding sentence, the Agent will not release any Liens
on any material Collateral without the prior written authorization of all Lenders. Any such
release shall not in any manner discharge, affect, or impair the Secured Obligations or any Liens
(other than those expressly being released) upon, or obligations of the Borrower or any Guarantor
in respect of, all interests retained by the Borrower or any Guarantor, including the proceeds of
any sale, all of which shall continue to constitute part of the Collateral.

 

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Notwithstanding the foregoing, any amendment, waiver, modification or agreement which by its
terms requires the consent of all Lenders or each affected Lender may be effected with the consent
of the applicable Lenders other than the Defaulting Lenders except that (i) the Commitment of any
Defaulting Lender may not be increased or extended without the consent of such Defaulting Lender,
(ii) the principal amount of, or interest or fees payable on, Loans may not be reduced or excused
or the scheduled date of payment may not be postponed as to such Defaulting Lender without such
Defaulting Lender’s consent and (iii) any waiver, amendment or modification requiring the consent
of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more
adversely than other affected Lenders shall require the consent of such Defaulting Lender.

9.15 Funding by Agent. Unless the Agent shall have been notified in writing by any Lender
not later than 4:00 p.m. on the day before the day on which Loans are requested by Borrower to be
made that (or, if the request for a Loan is made by Borrower on the date such Loan is to be made,
then not later than 2:00 p.m. on such day) such Lender will not make its ratable share of such
Loans, the Agent may assume that such Lender will make its ratable share of the Loans, and in
reliance upon such assumption the Agent may (but in no circumstances shall be required to) make
available to the Borrower a corresponding amount. If and to the extent that any Lender fails to
make such payment on such date, such Lender shall pay such amount to the Agent on demand, together
with interest thereon, as set forth in Section 2.5(b) of this Agreement.

9.16 Sharing of Payments. If any Lender obtains any payment (whether voluntary,
involuntary, through the exercise of any right of set-off, or otherwise) with respect to the Loans
in excess of its pro rata share of such payments shared by all Lenders, such Lender shall forthwith
purchase from the other Lenders participation in the Loans made by them as shall be necessary to
cause such purchasing Lender to share the excess payment ratably with each of them;
provided, however, if all or any portion of such excess payment is hereafter
recovered from such purchasing Lender, such purchase from the other Lenders shall be rescinded and
each other Lender shall repay to the purchasing Lender the purchase price to the extent of such
recovery together with an amount equal to such Lender’s ratable share of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount recovered.
Borrower agrees that any Lender purchasing a participation from another Lender pursuant to this
Section 9.16 may, to the fullest extent permitted by law, exercise all of its rights of payment
(including the right of set-off) with respect to such participation as fully as if such Lender were
the direct creditor of Borrower in the amount of such participation.

9.17 Payment to Lenders. Except as otherwise set forth in Sections 2.3(c), 2.4(e), 2.15
and 9.16 of this Agreement, promptly after receipt from Borrower of any principal or interest
payment on the Notes or any fees payable under, or in connection with, this Agreement (other than
fees payable to the Agent for the account of the Agent), the Agent shall promptly distribute to
each Lender that Lender’s ratable share of the funds so received. If the Agent fails to distribute
collected funds received by 2:00 p.m. on any Business Day prior to the end of the same Business
Day, or to distribute collected funds received after 2:00 p.m. on any Business Day by the end of
the next Business Day, the funds shall bear interest until distributed at the Federal Funds
Effective Rate.

 

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9.18 Tax Withholding Clause

(a) Status of Lenders; Tax Documentation.

(i) Each Lender shall deliver to the Borrower and to the Agent, at the time or times
prescribed by applicable laws or when reasonably requested by the Borrower or the Agent, such
properly completed and executed documentation prescribed by applicable laws or by the taxing
authorities of any jurisdiction and such other reasonably requested information as will permit the
Borrower or the Agent, as the case may be, to determine (A) whether or not payments made hereunder
or under any other Loan Document are subject to Taxes, (B) if applicable, the required rate of
withholding or deduction, and (C) such Lender’s entitlement to any available exemption from, or
reduction of, applicable Taxes in respect of all payments to be made to such Lender by the Borrower
pursuant to this Agreement or otherwise to establish such Lender’s status for withholding tax
purposes in the applicable jurisdiction.

(ii) Without limiting the generality of the foregoing, if the Borrower is resident for tax
purposes in the United States,

(A) any Lender that is a “United States person” within the meaning of § 7701(a)(30) of the
Code shall deliver to the Borrower and the Agent executed originals of Internal Revenue Service
Form W-9 or such other documentation or information prescribed by applicable laws or reasonably
requested by the Borrower or the Agent as will enable the Borrower or the Agent, as the case may
be, to determine whether or not such Lender is subject to backup withholding or information
reporting requirements; and

(B) each Foreign Lender that is entitled under the Code or any applicable treaty to an
exemption from or reduction of withholding tax with respect to payments hereunder or under any
other Loan Document shall deliver to the Borrower and the Agent (in such number of copies as shall
be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the request of the Borrower or
the Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable:

(I) executed originals of Internal Revenue Service Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States is a party,

(II) executed originals of Internal Revenue Service Form W-8ECI,

(III) executed originals of Internal Revenue Service Form W-8IMY and all required supporting
documentation,

 

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(IV) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio
interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender
is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent
shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a
“controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) executed originals of Internal Revenue Service Form W-8BEN,
or

(V) executed originals of any other form prescribed by applicable laws as a basis for claiming
exemption from or a reduction in United States Federal withholding tax together with such
supplementary documentation as may be prescribed by applicable laws to permit the Borrower or the
Agent to determine the withholding or deduction required to be made.

(C) each Foreign Lender shall provide, promptly upon the reasonable demand of the Borrower or
the Agent, any information, form or document, accurately completed, that may be required in order
to demonstrate that such Foreign Lender is in compliance with the requirements of FATCA, including
§ 1471(b) of the Code, if such Foreign Lender is a foreign financial institution (as such term is
defined in § 1471(d)(4) of the Code) or § 1472(b), if such Foreign Lender is a non-financial
foreign entity (as such term is defined in § 1472(d) of the Code).

(iii) Each Lender shall promptly (A) notify the Borrower and the Agent of any change in
circumstances which would modify or render invalid any claimed exemption or reduction, and (B) take
such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such
Lender, and as may be reasonably necessary (including the re-designation of its Lending Office) to
avoid any requirement of applicable laws of any jurisdiction that the Borrower or the Agent make
any withholding or deduction for taxes from amounts payable to such Lender.

(b) Each Lender, whether or not a Foreign Lender, shall additionally:

(i) deliver to the Borrower and the Agent two further copies of any such form or certification
at least five (5) Business Days before the date that any such form or certification expires or
becomes obsolete and after the occurrence of any event requiring a change in the most recent form
previously delivered by it to the Agent and the Borrower;

(ii) obtain such extensions of time for filing and complete such forms certifications as may
reasonably be requested by the Borrower or the Agent; and

(iii) file amendments to such forms as and when required unless an event (including, without
limitation, any change in treaty, law or regulation) has occurred after the date such Person
becomes a Lender hereunder which renders all such forms inapplicable or which would prevent such
Lender from duly completing and delivering any such form with respect to it and such Lender so
advises the Borrower and the Agent; provided, however, that the Borrower may rely upon such forms
provided to the Borrower for all periods prior to the occurrence of such event. Furthermore, the
Borrower shall not be required to pay any additional amounts to a Foreign Lender pursuant to
Section 2.11, and shall be permitted to reduce any payment required to be made to any Lender by any
Indemnified Taxes or Other Taxes (that otherwise would not be permitted to reduce such payment
pursuant to the provisions of Section 2.14 of this Agreement), if such additional amounts,
Indemnified Taxes or Other Taxes would
not have arisen or would not have been required to have been withheld, but for a failure by
such Foreign Lender to comply with the provisions of this Section 9.18.

 

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(c) The Borrower shall indemnify the Agent and each Lender, within 10 days after written
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Agent or
such Lender, as the case may be, on or with respect to any payment by or on account of any
obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority, except to the extent that the Borrower has paid additional amounts with respect to such
Indemnified Taxes or Other Taxes pursuant to Section 2.14 of this Agreement. A certificate as to
the amount of such payment or liability delivered to the Borrower by a Lender, or by the Agent on
its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

(d) Each Lender shall, and does hereby, indemnify the Borrower and the Agent, and shall make
payment in respect thereof within 10 days after demand therefore, against any and all Taxes and any
and all related losses, claims, liabilities, penalties, interest and expenses (including the fees,
charges and disbursements of any counsel for the Borrower or the Agent) incurred by or asserted
against the Borrower or the Agent by any Governmental Authority as a result of the failure by such
Lender to deliver, or as a result of the inaccuracy, inadequacy or deficiency of, any documentation
required to be delivered by such Lender or to the Borrower or the Agent pursuant to this Section
10.18.

9.19 USA Patriot Act. Each Lender or assignee or participant of a Lender that is not organized under the laws of the
United States of America or a state thereof (and is not excepted from the certification requirement
contained in Section 313 of the USA Patriot Act and the applicable regulations because it is both
(a) an affiliate of a depository institution or foreign bank that maintains a physical presence in
the United States or foreign country, and (b) subject to supervision by a banking authority
regulating such affiliated depository institution or foreign bank) shall deliver to the Agent the
certification, or, if applicable, recertification, certifying that such Lender is not a “shell” and
certifying to other matters as required by Section 313 of the USA Patriot Act and the applicable
regulations: (i) within 10 days after the Closing Date, and (ii) at such other times as re required
under the USA Patriot Act.

9.20 Issuing Bank. Each Lender acknowledges and agrees that the provisions of this Article IX shall apply to the
Issuing Bank, in its capacity as issuer of any Letter of Credit, in the same manner as such
provisions are expressly stated to apply to the Agent.

9.21 Benefit of Article IX. The provisions of this Article IX are intended solely for the benefit of the Agent, the Issuing
Bank and the Lenders. The Borrower shall not be entitled to rely on any such provisions or assert
any such provisions in a claim, or as a defense, against the Agent, the Issuing Bank or any Lender.
The Borrower acknowledges and consents to the foregoing provisions of this Article IX.

 

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ARTICLE X. MISCELLANEOUS

10.1 Amendment and Restatement; Future Amendments. This Agreement amends and restates in its entirety that certain Amended and Restated Credit
Agreement dated as of January 30, 2009, as amended, among Borrower, the Lenders and HSBC Bank as
Agent, Swingline Lender, Issuing Bank and Arranger and is intended by the parties as the final,
complete and exclusive statement of the transactions evidenced by this Agreement. All prior or
contemporaneous promises, agreements and understandings, whether oral or written, are deemed to be
superseded by this Agreement, and no party is relying on any promise, agreement or understanding
not set forth in this Agreement. No modification, rescission, waiver, release or amendment of any
provision of this Agreement shall be made except by a written agreement or as otherwise provided in
Section 9.14 of this Agreement, subscribed by an Authorized Officer of the Borrower and by
authorized officers of the Required Lenders (or all the Lenders, if applicable), and the Agent.

10.2 Delays and Omissions. No course of dealing and no delay or omission by the Agent or the Lenders in exercising any
right or remedy hereunder or with respect to any Indebtedness of the Borrower to shall operate as a
waiver thereof or of any other right or. remedy, and no single or partial exercise thereof shall
preclude any other or further exercise thereof or the exercise of any other right or remedy. The
Agent and the Lenders may remedy any Event of Default in any reasonable manner without waiving the
Event of Default remedied and without waiving any other prior or subsequent Event of Default by
Borrower and shall be reimbursed for their expenses in so remedying such Event of Default. All
rights and remedies of the Lenders and the Agent hereunder are cumulative.

10.3 Assignments/Participation. (a) The Borrower shall not assign or otherwise transfer any of its rights pursuant to this
Agreement without the prior written consent of the Agent, and any such assignment or other transfer
without such prior written consent shall be void.

(b) Any Lender may, in accordance with applicable law, at any time sell to one or more Persons
who would qualify as an Eligible Assignee (each, a “Participant”) participating interests in any
Revolving Loan or Term Loan owing to such Lender, any Revolving Note or Term Note held by such
Lender, any Commitment of such Lender or any other interest of such Lender under the Loan
Documents. In the event of any such sale by a Lender of participating interests to a Participant,
such Lender’s obligations under the Loan Documents shall remain unchanged, such Lender shall remain
solely responsible to the other parties hereto for the performance of such obligations, such Lender
shall remain the holder of any such Revolving Loan or Revolving Note or Term Loan or Term Note for
all purposes under
the Loan Documents, all amounts payable by Borrower under this Agreement shall be determined
as if such Lender had not sold such participating interests, and the Borrower and the Agent shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under the Loan Documents. In no event shall any Participant

 

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have any right to approve
any amendment or waiver of any provision of any Loan Document, or any consent to any departure by
Borrower or any Guarantor therefrom, except to the extent that such amendment, waiver or consent
would reduce the principal of, or interest on, the Loans or any fees payable hereunder, or postpone
the Revolving Credit Maturity Date or Term Loan Maturity Date, in each case to the extent subject
to such participation. Each Lender that sells a participation shall, acting as an agent of the
Borrower solely for this purpose, maintain a register on which it enters the name and address of
each Participant and the principal amounts (and stated interest) of each Participant’s interest in
the Loans or other obligations under this Agreement (the “Participant Register”); provided that no
Lender shall have any obligation to disclose all or any portion of the Participant Register to any
Person except to the extent that such disclosure is necessary to establish compliance with any
applicable provision of the Code, including to establish that any Commitment, Loan or other
obligation is in registered form under Section 5f.103-1(c) of the United States Treasury
Regulations. The entities in the Participant Register shall be conclusive absent manifest error,
and such Lender shall treat each person whose name is recorded in the Participant Register as the
owner of such participation for all purposes of this Agreement.

(c) Any Lender may, in the ordinary course of its business and in accordance with applicable
law, at any time assign to an Eligible Assignee all or any part of its rights and obligations under
the Loan Documents. Such assignment shall be pursuant to an Assignment and Assumption. The
consent of the Agent and the Borrower shall be required prior to an assignment becoming effective
if so required for the assignee to be an “Eligible Assignee”. Each such assignment shall be in an
amount not less than the lesser of (i) $5,000,000 for each portion of the Revolving Credit
Commitment and Term Loan Commitment of such assigning Lender, or (ii) the remaining amount of the
assigning Lender’s Commitment (calculated as at the date of such assignment). Upon (i) delivery to
the Agent of an Assignment and Assumption, together with any consents required above, and (ii)
payment of a $3,500 fee to the Agent for processing such assignment, such assignment shall become
effective on the effective date specified in such Assignment and Assumption. On and after the
effective date of such assignment, such Eligible Assignee shall for all purposes be a Lender to
this Agreement and any other Loan Document executed by the Lenders and shall have all the rights
and obligations of a Lender under the Loan Documents, to the same extent as if it were an original
party hereto, and no further consent or action by the Borrower, the Lenders or the Agent shall be
required to release the transferor Lender, and the transferor Lender shall be released without any
further action, with respect to the Commitments and Revolving Loans assigned to such Eligible
Assignee. Any assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this Section 10.3(c) shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in accordance with Section
10.3(b) of this Agreement. Upon the consummation of any assignment to an Eligible Assignee
pursuant to this Section 10.3(c), the transferor Lender, the Agent and the Borrower shall make
appropriate arrangements so that replacement Revolving Notes, or Term Notes if applicable, are
issued to such transferor Lender and new Revolving Notes or Term Notes or, as appropriate,
replacement Revolving Notes or replacement Term Notes, are issued to such Eligible Assignee,
in each case in principal amounts reflecting their respective Commitments, as adjusted pursuant to
such assignment.

 

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(d) Any Lender may at any time pledge or assign all or any portion of its rights under the
Loan Documents to any of the twelve (12) Federal Reserve Banks organized under Section 4 of the
Federal Reserve Act, 12 U.S.C. Section 341. No such pledge or assignment or enforcement thereof
shall release Lender from its obligations under any of the Loan Documents.

(e) Notwithstanding anything to the contrary contained herein, if at any time the Issuing Bank
assigns all of its Commitment pursuant to this Section 10.3, the Issuing Bank may, upon sixty (60)
days’ notice to the Borrower and the Lenders, resign as Issuing Bank. In the event of any such
resignation as Issuing Bank, the Borrower shall be entitled to appoint from among the Lenders a
successor Issuing Bank hereunder subject to the consent of such successor Issuing Bank and the
consent of the Required Lenders; provided, however, that no failure by the Borrower to appoint any
such successor shall affect the resignation of the Issuing Bank as Issuing Bank. If the Issuing
Bank resigns as Issuing Bank, it shall retain all the rights, powers, privileges and duties of the
Issuing Bank hereunder with respect to all Letters of Credit outstanding as of the effective date
of its resignation issued by the Issuing Bank and all unreimbursed amounts of any LC Disbursements
with respect thereto (including the right to require the Lenders to fund risk participations in
such amounts pursuant to Section 2.4(e)(ii)). Upon the appointment of a successor Issuing Bank,
(a) such successor shall succeed to and become vested with all of the rights, powers, privileges
and duties of the retiring Issuing Bank, and (b) the successor Issuing Bank shall issue letters of
credit in substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to the resigning Issuing Bank to effectively
assume the obligations of such Issuing Bank with respect to such Letters of Credit.

10.4 Successors and Assigns. Borrower, Guarantor, Subsidiary, Lenders and Agent as such terms are used herein shall include
the legal representatives, successors and assigns of those parties.

10.5 Notices. Any notice, request or demand to or upon the respective parties hereto to be effective shall be
in writing, unless otherwise expressly provided herein, and shall be deemed to have been given or
made when delivered by hand or by facsimile (with a copy by regular mail), one (1) Business Day
after being delivered to a courier for overnight delivery or three (3) Business Days after being
deposited in the first class United States mail, addressed as follows, or to such other address as
may be hereafter notified by the respective parties hereto:

	 	 	 
	To the Borrower:

	 	Astronics Corporation
	 

	 	130 Commerce Way
	 

	 	East Aurora, New York 14052
	 

	 	Attn: David C. Burney, Vice President-Finance and Treasurer
	 

	 	Facsimile No. 716-805-1286
	 

	 	Telephone No. 716-805-1599 ext. 159

 

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	(With a copy 

which shall not 

itself constitute 

notice to):

	 	Hodgson Russ LLP

The Guaranty Building

140 Pearl Street, Suite 100

Buffalo, New York 14202-4040

Attention: Victoria J. Saxon, Esq.

Facsimile No. 716-849-0349

Telephone No. 716-848-1755
	 
	 	 
	To HSBC Bank:

	 	HSBC Bank USA, National Association

Commercial Banking Department

One HSBC Center

Buffalo, New York 14203

Attn: Joseph W. Burden, Vice President

Facsimile No. 716-841-0750

Telephone No. 716-841-6763
	 
	 	 
	(With a copy 

which shall not 

itself constitute 

notice to):

	 	Phillips Lytle LLP

3400 HSBC Center

Buffalo, New York 14203

Attention: Raymond H. Seitz, Esq.

Facsimile No. 716-852-6100

Telephone No. 716-847-7065

Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Agent; provided that the foregoing
shall not apply to notices pursuant to Article II unless otherwise agreed by the Agent and the
applicable Lender. The Agent or the Borrower may in its discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to procedures approved
by it; provided that approval of such procedures may be limited to particular notices or
communications.

10.6 Governing Law. This Agreement, the transactions described herein and the obligations of the parties hereto
shall be construed under, and governed by, the internal laws of the State of New York without
regard to principles of conflicts of law.

10.7 Counterparts. This Agreement may be executed in any number of counterparts and by the Agent, the Lenders and
the Borrower on separate counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute one and the same Agreement.

10.8 Titles. Titles to the sections of this Agreement are solely for the convenience of the parties, and are
not an aid in the interpretation of this Agreement or any part thereof.

 

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10.9 Inconsistent Provisions. The terms of this Agreement and any related agreements, instruments or other documents shall be
cumulative except to the extent that they are specifically inconsistent with each other, in which
case the terms of this Agreement shall prevail.

10.10 Course of Dealing. Without limitation of the foregoing, the Agent and the Lenders shall have the right, but not the
obligation, at all times to enforce the provisions of this Agreement and all other documents
executed in connection herewith in strict accordance with their terms, notwithstanding any course
of dealing or performance by the Lenders or the Agent in refraining from so doing at any time and
notwithstanding any custom in the banking trade. Any delay or failure by the Lenders or the Agent
at any time or times in enforcing its rights under such provisions in strict accordance with their
terms shall not be construed as having created a course of dealing or performance modifying or
waiving the specific provisions of this Agreement.

10.11 USA Patriot Act Notification. Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56), such Lender is required to obtain, verify and record information
that identifies Borrower, which information includes the name and address of Borrower and other
information that will allow such Lender to identify Borrower in accordance with the USA Patriot Act
(collectively, the “Customer Identification Materials”). Borrower has delivered to the Agent, and
the Agent acknowledges receipt from the Borrower of, the Customer Identification Materials
requested by the Agent to satisfy the Agent’s regulatory requirements with respect thereto.
Borrower consents to the dissemination of such Customer Identification Materials by the Agent to
each Lender.

10.12 Right of Set-Off. If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Bank and
each of their respective Affiliates is hereby authorized at any time and from time to time, after
obtaining the prior written consent of the Agent, to the fullest extent permitted by applicable
law, to set-off and apply any and all deposits (general obligations (in whatever currency) at any
time owing by such Lender, the Issuing Bank or any such Affiliate to or for the credit or the
account of any Borrower or any other Guarantor against any and all of the obligations of such
Borrower or such Guarantor now or hereafter existing under this Agreement
or any other Loan Document to such Lender or the Issuing Bank, irrespective of whether or not such
Lender or the Issuing Bank shall have made any demand under this Agreement or any other Loan
Document and although such obligations of such Borrower or such Guarantor may be contingent or
unmatured or are owed to a branch or office of such Lender or the Issuing Bank different from the
branch or office holding such deposit or obligated on such indebtedness. The rights of each
Lender, the Issuing Bank and their respective Affiliates under this Section are in addition to
other rights and remedies (including other rights of set-off) that such Lender, the Issuing Bank or
their respective Affiliates may have. Each Lender and the Issuing Bank agrees to notify the
Borrower and the Agent promptly after any such set-off and application, provided that the
failure to give such notice shall not affect the validity of such set-off and application.

 

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10.13 No Advisory Or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby, the Borrower
acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) the credit
facility provided for hereunder and any related arranging or other services in connection therewith
(including in connection with any amendment, waiver or other modification hereof or of any other
Loan Document) are an arm’s-length commercial transaction between the Borrower and its Affiliates,
on the one hand, and the Agent, the Lead Arrangers and the Lenders, on the other hand, and the
Borrower is capable of evaluating and understanding and understands and accepts the terms, risks
and conditions of the transactions contemplated hereby and by the other Loan Documents (including
any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process
leading to such transaction, the Agent, the Lead Arrangers and the Lenders each is and has been
acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Borrower
or any of its Affiliates, stockholders, creditors or employees or any other Person; (iii) none of
the Agent, the Lead Arrangers nor any Lender has assumed or will assume an advisory, agency or
fiduciary responsibility in favor of the Borrower with respect to any of the transactions
contemplated hereby or the process leading thereto, including with respect to any amendment, waiver
or other modification hereof or of any other Loan Document (irrespective of whether the Agent, the
Lead Arrangers or any Lender has advised or is currently advising the Borrower or its Affiliates on
other matters) and none of the Agent, the Lead Arrangers nor any Lender has any obligation to the
Borrower or its Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan Documents; (iv) the Agent, the Lead
Arrangers, the Lenders and their respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrower and its Affiliates, and
none of the Agent, the Lead Arrangers nor any Lender has any obligation to disclose any of such
interests by virtue of any advisory, agency or fiduciary relationship; and (v) none of the Agent,
the Lead Arrangers nor any Lender has provided or will provide any legal, accounting, regulatory or
tax advice with respect to any of the transactions contemplated hereby (including any amendment,
waiver or other modification hereof or of any other Loan Document) and the Borrower has consulted
its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate.
The Borrower hereby waives and releases, to the fullest extent permitted by law, any claims that it
may have against the Agent, the Lead Arrangers or any Lender with respect to any breach or alleged
breach of agency or fiduciary duty.

10.14 JURY TRIAL WAIVER. BORROWER, THE AGENT AND EACH LENDER, HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY
RIGHT TO TRIAL BY JURY THEY MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN
CONNECTION WITH THIS AGREEMENT OR ANY LOAN DOCUMENT OR THE TRANSACTIONS RELATED HERETO. BORROWER
REPRESENTS AND WARRANTS THAT NEITHER ANY REPRESENTATIVE OF THE AGENT OR ANY LENDER NOR THE AGENT
NOR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE AGENT OR ANY LENDER WILL NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY TRIAL WAIVER. BORROWER ACKNOWLEDGES THAT THE
AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
PROVISIONS OF THIS SECTION.

 

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10.15 CONSENT TO JURISDICTION. BORROWER, THE AGENT AND EACH LENDER AGREE THAT ANY ACTION OR PROCEEDING TO ENFORCE OR ARISING
OUT OF THIS AGREEMENT MAY BE COMMENCED IN THE SUPREME COURT OF NEW YORK IN ERIE COUNTY, OR IN THE
DISTRICT COURT OF THE UNITED STATES IN THE WESTERN DISTRICT OF NEW YORK, AND THE BORROWER WAIVES
PERSONAL SERVICE OF PROCESS AND AGREES THAT A SUMMONS AND COMPLAINT COMMENCING AN ACTION OR
PROCEEDING IN ANY SUCH COURT SHALL BE PROPERLY SERVED AND SHALL CONFER PERSONAL JURISDICTION IF
SERVED BY REGISTERED OR CERTIFIED MAIL TO THE BORROWER, OR AS OTHERWISE PROVIDED BY THE LAWS OF THE
STATE OF NEW YORK OR THE UNITED STATES.

10.16 AMENDMENT AND RESTATEMENT. This Agreement is intended solely as an amendment of, and contemporaneous restatement of, the
terms and conditions of the Existing Agreement and this Agreement is not intended and should not be
construed as in any way extinguishing the Indebtedness under, or terminating the Existing Agreement
or any of the Collateral Documents granted in connection therewith, each of which shall remain in
full force and effect, except as modified herein or in the Collateral Documents, and continue to
secure the obligations of the Borrower and the Guarantors under the Loan Documents as set forth
therein.

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their duly
authorized officers, all as of August 31, 2011.

	 	 	 	 	 	 	 
	 	 	ASTRONICS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

David C. Burney
	 	 
	 

	 	 	 	Vice President-Finance and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL ASSOCIATION, 

as Agent, Swingline Lender, a Lender and Issuing Bank	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Joseph W. Burden
	 	 
	 

	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Thomas C. Lillis
	 	 
	 

	 	 	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MANUFACTURERS AND TRADERS TRUST

COMPANY, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Michael J. Prendergast
	 	 
	 

	 	 	 	Vice President	 	 

[SIGNATURE PAGE TO ASTRONICS CREDIT AGREEMENT]

 

 

 

EXHIBIT A

REPLACEMENT REVOLVING NOTE

			
	 	 	 
	 
	 	Buffalo, New York
	$                    
	 	August 31, 2011

FOR VALUE RECEIVED, the undersigned, ASTRONICS CORPORATION (“Borrower”) hereby unconditionally
promises to pay, on or before August 31, 2016, to the order of                      (“Lender”) at
the Commercial Banking Department office of the Agent (as defined in the Credit Agreement as
hereinafter defined) at One HSBC Center, Buffalo, New York 14203, or at the holder’s option, at
such other place as may be designated by the holder, in lawful money of the United States of
America, a principal sum equal to the lesser of                                          ($                    )
or the aggregate unpaid principal amount of all Revolving Loans made by Lender to the Borrower from
time to time under a Second Amended and Restated Credit Agreement, dated of as of August 31, 2011,
among the Borrower, HSBC Bank USA, National Association as agent, for itself, the Lender and other
lending institutions and issuing banks now or hereafter parties thereto, as the same may hereafter
be amended, supplemented, renewed, restated, replaced or otherwise modified from time to time
(“Credit Agreement”) as evidenced by the inscriptions made on the schedule attached hereto, or any
continuation thereof (“Schedule”). The Borrower further promises to pay interest on the unpaid
principal amount hereof from time to time at the rates and at such times as are specified in the
Credit Agreement. All capitalized terms used herein and not otherwise defined herein shall have
the meanings specified in the Credit Agreement.

The Lender and each holder of this Note are authorized to inscribe on the Schedule, the date
of the making of each Revolving Loan, the amount of each Revolving Loan, the applicable Rate
Options and Interest Periods, all payments on account of principal and the aggregate outstanding
principal balance of this Note from time to time unpaid. Each entry set forth on the Schedule
shall be prima facie evidence of the facts so set forth. No failure by the Lender or any holder of
this Note to make, and no error in making, any inscriptions on the Schedule shall affect Borrower’s
obligation to repay the full principal amount loaned to or for the account of Borrower, or the
Borrower’s obligation to pay interest thereon at the agreed upon rate.

If any payment on this Note becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day, and the Borrower will pay
interest thereon at the then applicable rate until the date of actual receipt of such installment
by the holder of this Note.

No failure by the holder to exercise, and no delay in exercising, any right or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise by the holder of any
right or powers hereunder preclude any other or further exercise thereof or the exercise of any
other right or power. The rights and remedies of the holder as herein specified are cumulative and
not exclusive of any other rights or remedies which the holder may otherwise have.

 

 

 

No modification, rescission, waiver, release or amendment of any provision of this Note shall
be made except by a written agreement subscribed by a duly authorized officer of the Borrower and
the holder hereof.

Borrower waives diligence, presentment, protest and demand, and also notice of protest,
demand, dishonor and nonpayment of this Note.

This Note evidences a borrowing under the Credit Agreement to which reference is hereby made
with respect to interest rate options and periods, prepayments of principal hereof prior to the
maturity hereof upon the terms and conditions therein specified, and rights of acceleration of the
principal hereof on the occurrence of certain events. The obligations of the Borrower under this
Note, and the obligations of the Guarantors under the Loan Documents, are secured by the Collateral
referred to in the Collateral Documents.

Borrower agrees to pay on demand all reasonable costs and expenses incurred by the holder in
enforcing this Note or in collecting the indebtedness evidenced hereby, including, without
limitation, if the holder retains counsel for any such purpose, reasonable attorneys’ fees and
expenses.

This Note is issued in replacement and substitution for, but not in payment of a Replacement
Revolving Note dated January 30, 2009 in the amount of $                     issued by the Borrower, which
note had been assigned by the original holder thereof to HSBC Bank USA, National Association as
Agent pursuant to an Omnibus Assignment and Acceptance of even date herewith.

This Note shall be construed under, and governed by, the internal laws of the State of New
York without regard to principles of conflicts of laws.

	 	 	 	 	 	 	 
	 	 	ASTRONICS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

David C. Burney
	 	 
	 

	 	 	 	Vice President-Finance and Treasurer	 	 

 

- 2 -

 

SCHEDULE

LOANS, RATE OPTIONS AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	AMOUNT	 	 	 	 
	 	 	DATE LOAN	 	AMOUNT OF	 	 	 	 	 	OF	 	AGGREGATE	 	 
	TYPE	 	MADE,	 	LOAN MADE,	 	INTEREST	 	 	 	PRINCIPAL	 	UNPAID	 	NOTATION
	OF	 	CONTINED OR	 	CONTINUED OR	 	PERIOD	 	DUE	 	PAID OR	 	PRINCIPAL	 	MADE BY
	LOAN	 	CONVERTED	 	CONVERTED	 	DATES	 	DATE	 	PREPAID	 	BALANCE	 	AND DATE
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

EXHIBIT B

REPLACEMENT SWINGLINE NOTE

			
	 	 	 
	 
	 	Buffalo, New York
	$5,000,000.00
	 	August 31, 2011

FOR VALUE RECEIVED, the undersigned, ASTRONICS CORPORATION, a New York business corporation
having its principal place of business at 130 Commerce Way, East Aurora, New York 14052
(“Borrower”) promises to pay, ON DEMAND, to the order of HSBC BANK USA, NATIONAL ASSOCIATION
(“Swingline Lender”) at the Commercial Banking Department office of the Agent (as defined in the
Credit Agreement, as hereinafter defined) at One HSBC Center, Buffalo, New York 14203, in lawful
money of the United States and in immediately available funds, the lesser of (i) the principal
amount of Five Million Dollars ($5,000,000) or (ii) the aggregate amount of all unpaid Swingline
Loans made by Swingline Lender to Borrower as shown on the schedule on the reverse side of this
Note or any continuation schedule (“Schedule”) together with interest as provided in the next
paragraph. In this Note, any capitalized term not defined in this Note has the meaning defined in
a Second Amended and Restated Credit Agreement, dated as of August 31, 2011, among the Borrower,
HSBC Bank USA, National Association as agent, for itself, the Swingline Lender and other lending
institutions and issuing banks now or hereafter parties thereto, as the same may hereafter be
amended, supplemented, renewed, restated, replaced or otherwise modified from time to time (“Credit
Agreement”).

From and including the date of this Note to but not including the date the outstanding
principal amount of this Note is paid in full, the Borrower shall pay to the Agent for the account
of the holder of this Note (“Holder”) interest on such outstanding principal amount at a rate per
year that shall on each day prior to demand be equal to the ABR Option from time to time in effect
pursuant to the Credit Agreement. After an unsatisfied demand for payment, this Note shall bear
interest at a per annum rate of interest equal to 2% in excess of the Prime Rate from time to time
in effect. In no event shall such interest be payable at a rate in excess of the maximum rate of
interest permitted by applicable law. A payment of such interest shall become due on the first day
of each calendar month, beginning on October 1, 2011 and on the date this Note is repaid in full.
Interest shall be calculated on the basis of a 365-day year or 366-day year, as applicable, for the
actual number of days elapsed.

The Holder is authorized to inscribe on the Schedule the date of each Swingline Loan made
hereunder, each repayment of principal and the aggregate unpaid principal balance of this Note.
Each entry set forth on the Schedule shall be prima facie evidence of the facts so set forth. No
failure by the Holder to make, and no error by the Holder in making, any inscription on the
Schedule shall affect the Borrower’s obligation to repay the full amount advanced on this Note to
or for the account of the Borrower, or Borrower’s obligation to pay interest thereon at this agreed
upon rate.

 

 

 

If any payment on this Note becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day, and the Borrower will pay
interest thereon at the then applicable rate until the date of actual receipt of such installment
by the holder of this Note.

No failure by the holder to exercise, and no delay in exercising, any right or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise by the holder of any
right or powers hereunder preclude any other or further exercise thereof or the exercise of any
other right or power. The rights and remedies of the holder as herein specified are cumulative and
not exclusive of any other rights or remedies which the holder may otherwise have.

No modification, rescission, waiver, release or amendment of any provision of this Note shall
be made except by a written agreement subscribed by a duly authorized officer of the Borrower and
the holder hereof.

Borrower waives diligence, presentment, protest and demand, and also notice of protest,
demand, dishonor and nonpayment of this Note.

This Note is the Swingline Note referred to in the Credit Agreement and is otherwise entitled
to the benefits of the Credit Agreement. The obligations of the Borrower under this Note, and the
obligations of the Guarantors under the Loan Documents, are secured by the Collateral referred to
in the Collateral Documents.

Borrower agrees to pay on demand all reasonable costs and expenses incurred by the holder in
enforcing this Note or in collecting the indebtedness evidenced hereby, including, without
limitation, if the holder retains counsel for any such purpose, reasonable attorneys’ fees and
expenses.

This Note is issued in replacement and substitution for, but not in payment of a Replacement
Swingline Note dated January 30, 2009 in the amount of $5,000,000 issued by the Borrower to Lender,
which note had been assigned by the original holder thereof to HSBC Bank USA, National Association
as Agent pursuant to an Omnibus Assignment and Acceptance of even date herewith.

This Note shall be construed under, and governed by, the internal laws of the State of New
York without regard to principles of conflicts of laws.

	 	 	 	 	 	 	 
	 	 	ASTRONICS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

David C. Burney
	 	 
	 

	 	 	 	Vice President-Finance and Treasurer	 	 

 

- 2 -

 

SCHEDULE

SWINGLINE LOANS AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	 	 	 	 	AMOUNT OF	 	AGGREGATE	 	 
	 	 	PRINCIPAL	 	PRINCIPAL PAID OR	 	UNPAID PRINCIPAL	 	INSCRIPTION MADE
	DATE	 	AMOUNT	 	REPAID	 	BALANCE	 	BY
	 
	 	 	 	 	 	 	 	 

 

 

 

EXHIBIT C

REPLACEMENT TERM NOTE

			
	$                    
	 	Buffalo, New York
	 
	 	August 31, 2011

FOR VALUE RECEIVED, the undersigned, ASTRONICS CORPORATION (“Borrower”) hereby unconditionally
promises to pay to the order of                      (“Lender”), at the Commercial Banking Department
Office of the Agent (as defined in the Credit Agreement as hereinafter defined) at One HSBC Center,
Buffalo, New York 14203, or at Lender’s option, at such other place as may be designated from time
to time by the Lender, the principal sum of                      Dollars ($                    ) in lawful money
of the United States of America, in ten (10) quarterly installments of principal as follows: five
(5) equal consecutive quarterly principal installments of $                     each commencing on October 1,
2011, and payable on the first day of each January, April, July and October thereafter, to and
including October 1, 2012, followed by four (4) equal consecutive quarterly principal installments
of $                    , each payable on the first day of January, April, July and October, 2013, and one
(1) final installment on January 30, 2014 in an amount equal to the then unpaid principal balance
hereof, together with interest as provided below.

The Borrower further promises to pay interest on the unpaid principal amount hereof from time
to time at the rates and on the dates determined in accordance with the provisions of a Second
Amended and Restated Credit Agreement dated as of August 31, 2011 among the Borrower, HSBC Bank
USA, National Association, as agent, for itself, the Lender, and the other lending institutions and
issuing banks now or hereafter parties thereto, as the same may hereafter be amended, supplemented,
renewed, replaced or otherwise modified (“Credit Agreement”). All capitalized terms used herein
and not otherwise defined herein shall have the meanings specified in the Credit Agreement.

After maturity, whether by acceleration or otherwise, this Note shall bear interest at a rate
per annum equal to two percent (2%) plus the rate of interest otherwise applicable on this Note;
provided, however, in no event shall the rate of interest on this Note exceed the maximum rate
authorized by applicable law.

The holder hereof is authorized to inscribe on the schedule attached to this Note or any
continuation thereof (“Schedule”) the amount of each repayment of principal, the amount and, the
date of the continuation or conversion of any Libor Loan or ABR Loan, and the dates on which each
Interest Period shall begin and end. Each entry on the Schedule shall be prima facie evidence of
the facts so set forth. No failure by the holder to make, and no error by the holder in making,
any inscription on the Schedule shall affect the undersigned’s obligation to repay the full
principal amount advanced by the holder to or for the account of the undersigned or the
undersigned’s obligation to pay interest thereon at the agreed upon rate.

 

 

 

If any installment of this Note is not paid when due, whether because such installment becomes
due on a Saturday, Sunday or bank holiday or for any other reason, the Borrowers will pay interest
thereon at the aforesaid rate until the date of actual receipt of such installment by the holder of
this Note.

No failure by the holder hereof to exercise, and no delay in exercising, any right or power
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by the holder
of any right or power hereunder preclude any other or further exercise thereof or the exercise of
any other right or power. The rights and remedies of the holder as herein specified are cumulative
and not exclusive of any other rights or remedies which the holder may otherwise have.

No modification, rescission, waiver, release or amendment of any provision of this Note shall
be made except by a written agreement subscribed by duly authorized officers of the Borrowers and
the holder hereof.

This Note is a Term Note as referred to in the Credit Agreement, to which reference is hereby
made with respect to interest rate provisions, mandatory and voluntary prepayment provisions,
prepayment premiums, collateral and rights of acceleration of the principal hereof on the
occurrence of certain events.

Borrower hereby waives diligence, presentment, protest and demand, and also notice of protest,
demand, dishonor and nonpayment of this Note.

Borrower agrees to pay all costs and expenses incurred by the holder in enforcing this Note or
in collecting the indebtedness evidenced hereby, including, without limitation, if the holder
retains counsel for any such purpose, reasonable attorneys’ fees and expenses.

This Note is issued in replacement and substitution for, but not in payment of, a Term Note
dated December 23, 2009 issued by the Borrower, which note had been assigned by the original holder
thereof to HSBC Bank USA, National Association as Agent pursuant to an Omnibus Assignment and
Acceptance of even date herewith.

This Note shall be construed under, and governed by, the internal laws of the State of New
York without regard to principles of conflicts of laws.

	 	 	 	 	 	 	 
	 	 	ASTRONICS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

David C. Burney

Vice President — Finance and Treasurer
	 	 

 

- 2 -

 

SCHEDULE

LOANS, RATE OPTIONS AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	AMOUNT	 	 	 	 
	 	 	DATE LOAN	 	AMOUNT OF	 	 	 	 	 	OF	 	AGGREGATE	 	 
	TYPE	 	MADE,	 	LOAN MADE,	 	INTEREST	 	 	 	PRINCIPAL	 	UNPAID	 	NOTATION
	OF	 	CONTINED OR	 	CONTINUED OR	 	PERIOD	 	DUE	 	PAID OR	 	PRINCIPAL	 	MADE BY
	LOAN	 	CONVERTED	 	CONVERTED	 	DATES	 	DATE	 	PREPAID	 	BALANCE	 	AND DATE
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

EXHIBIT D

COMPLIANCE CERTIFICATE

ASTRONICS CORPORATION (“Borrower’) hereby certifies to HSBC BANK USA, NATIONAL ASSOCIATION
(“HSBC Bank”) as Agent and the Lenders pursuant to a Second Amended and Restated Credit Agreement
between the Borrower and the Agent and the Lenders dated as of August 31, 2011 (“Agreement”), that:

1. Capitalized terms not defined herein shall have the meanings set forth in the Agreement.

2. The Borrower has complied with all the terms, covenants and conditions to be performed or
observed by it contained in the Agreement and the Loan Documents.

3. There exists no Default or Event of Default or Material Adverse Effect on the date hereof
or, if applicable, after giving effect to the Loan made, continued or converted on the date hereof.

4. The representations and warranties contained in the Agreement, in any Loan Document or in
any certificate, document or financial or other statement furnished at any time thereunder are
true, correct and complete in all material respects with the same effect as though such
representations and warranties had been made on the date hereof, except to the extent that any such
representation and warranty relates solely to an earlier date (in which case such representation
and warranty shall be true, correct and complete on and as of such earlier date).

5. There is no unsatisfied reimbursement obligation of the Borrower in connection with any
Letter of Credit.

6. As of the date hereof and for the period ending date set forth below, the computations,
ratios and calculations set forth in this Certificate are true and correct:

	 	 	 	 	 	 	 
	 	 	Period Ending Date:                     	 	 
	 
	 	 	 	 	 	 
	 

	 	§6.13
	 	Minimum Fixed Charge Coverage Ratio	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Consolidated Fixed Charge Coverage Ratio
	 	= _____:1.0
	 
	 	 	 	 	 	 
	 

	 	 	 	Required:  1.25 to 1.0	 	 
	 
	 	 	 	 	 	 
	 

	 	§6.14
	 	Maximum Capital Expenditures	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Consolidated Capital Expenditures
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	 	 	Required:  $15,000,000	 	 

 

 

 

	 	 	 	 	 	 	 
	 

	 	§6.15
	 	Maximum Leverage Ratio	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Consolidated Leverage Ratio =
	 	_____:1.0
	 
	 	 	 	 	 	 
	 

	 	 	 	Required:  3.25 to 1.0	 	 

WITNESS the signature of a duly authorized officer of the Borrower on                     ,
20____.

	 	 	 	 	 	 	 	 	 
	 	 	ASTRONICS CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

- 2 -

 

EXHIBIT E

REQUEST CERTIFICATE

Revolving Loans and Term Loans

The undersigned hereby certifies to HSBC Bank USA, National Association (“HSBC Bank”) in
accordance with the terms of a Second Amended and Restated Credit Agreement dated as of August 31,
2011 among Astronics Corporation (“Borrower”), HSBC Bank as Agent and the Lenders:

The undersigned requests or has requested by telephone or facsimile notice a:

	 	 	 
	o Revolving Loan

	 	o Term Loan
	 
	 	 
	(Check One)

	 	(Check One)
	 
	 	 
	o new loan

	 	o new loan
	o conversion

	 	o conversion
	o continuation

	 	o continuation
	 
	 	 
	of a

	 	of a
	 
	 	 
	(Check One)

	 	(Check One)
	 
	 	 
	o Libor Loan

	 	o Libor Loan
	o ABR Loan

	 	o ABR Loan
	 
	 	 
	to a or as a

	 	to a or as a
	 
	 	 
	(Check One)

	 	(Check One)
	 
	 	 
	o Libor Loan

	 	o Libor Loan
	o ABR Loan

	 	o ABR Loan

in the amount of $_____________ for an Interest Period, if applicable, of

(Check One)

o one month.

o two months.

o three months.

o six months.

The proposed loan/conversion/continuation is to be made on                     ,
20_____ which is a Business Day.

 

 

 

WITNESS the signature of the undersigned authorized signatory of the Borrower this
_____ day of
                    ,
20_____.

	 	 	 	 	 	 	 
	 	 	ASTRONICS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 	 

	 	 

 

- 2 -

 

EXHIBIT F

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective
Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein
shall have the meanings given to them in the Agreement identified below (as amended, the
“Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard
Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated
herein by reference and made a part of this Assignment and Assumption as if set forth herein in
full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Agent as contemplated below (i) all of the Assignor’s rights and
obligations in its capacity as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and percentage interest
identified below of all of such outstanding rights and obligations of the Assignor under the
respective facilities identified below (including any letters of credit, guarantees, and swingline
loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable
law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a
Lender) against any Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan
transactions governed thereby or in any way based on or related to any of the foregoing, including
contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or
in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the
rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to
herein collectively as the “Assigned Interest”). Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by the Assignor.

	 	 	 
	1. Assignor:

	 	                                                                        
        
	 
	 	 
	2. Assignee:

	 	                                                                     
           

[and is an Affiliate/Approved Fund of [identify Lender]1]
	 
	 	 
	3. Borrower:

	 	Astronics Corporation
	 
	 	 
	4. Administrative Agent:

	 	HSBC Bank USA, National Association, as the administrative

agent under the Credit Agreement

 

	 	 	 
	1	 	Select as applicable.

 

 

 

	 	 	 
	5. Credit Agreement:

	 	Second Amended and Restated Credit Agreement dated as of
August 31, 2011 among Astronics Corporation, HSBC Bank USA, National Association, as
Administrative Agent, for itself, the Lenders and other lending institutions and issuing banks
now or hereafter parties thereto
	 
	 	 
	6. Assigned Interest:
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	 	Amount of	 	 	Percentage Assigned	 
	 	 	Commitment/Loans	 	 	Commitment/Loans	 	 	of	 
	Facility Assigned2	 	for all Lenders	 	 	Assigned	 	 	Commitment/Loans3	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 

Effective Date:                     
_____, 20_____ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The Assignee agrees to deliver to the Administrative Agent a completed Administrative
Questionnaire in which the Assignee designates one or more Credit Contacts to whom all
syndicate-level information (which may contain material non-public information about the Borrower
and the Subsidiaries and Affiliates of the Borrower, or their respective securities) will be made
available and who may receive such information in accordance with the Assignee’s compliance
procedures and applicable laws, including Federal and state securities laws.

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 	 	 
	 	 	ASSIGNOR

[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 	 

Title:
	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE

[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 	 

Title:
	 	 

 

	 	 	 
	2	 	Fill in the appropriate terminology for the types of
facilities under the Credit Agreement that are being assigned under this
Assignment (e.g. “Commitment,” “Revolving Credit,” etc.)
	 
	3	 	Set forth, to at least 9 decimals, as a percentage of
the Commitment/Loans of all Lenders thereunder.

 

- 2 -

 

	 	 	 	 	 
	[Consented to and]4 Accepted:

HSBC Bank USA, National Association, as

Administrative Agent	 	 
	 
	 	 	 	 
	By: 
	 	 	 	 
	 

	 	 

Title:
	 	 
	 
	 	 	 	 
	[Consented to:]5

[NAME OF RELEVANT PARTY]	 	 
	 
	 	 	 	 
	By: 
	 	 	 	 
	 

	 	 

Title:
	 	 

 

	 	 	 
	4	 	To be added only if the consent of the Administrative
Agent is required by the terms of the Credit Agreement.
	 
	5	 	To be added only if the consent of the Borrower and/or
other parties (e.g. Swingline Lender, Issuing Bank) is required by the terms of
the Credit Agreement.

 

- 3 -

 

ANNEX 1

to

Assignment and Assumption

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement
that are required to be satisfied by it in order to acquire the Assigned Interest and become a
Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as
applicable, and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and to purchase the
Assigned Interest on the basis of which it has made such analysis and decision independently and
without reliance on the Administrative Agent or any other Lender, (v) if it is a Non-U.S. Lender,
attached to the Assignment and Assumption is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and
(vi) it does not bear a relationship to the Borrower described in Section 108(e)(4) of the Code;
and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent,
the Assignor or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender.

 

 

 

2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.

3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by facsimile shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be construed
in accordance with and governed by the law of the State of New York, but giving effect to federal
laws applicable to national banks.

 

- 2 -

 

SCHEDULE 1

EMPLOYEE BENEFITS PLAN

Atro Companies’ Profit Sharing/401K Plan

 

 

 

SCHEDULE 2.1

LENDERS’ COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Credit	 	 	Term Credit	 	 	Total	 	 	Applicable	 
	Lender	 	Commitments	 	 	Commitments	 	 	Commitments	 	 	Percentage	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	HSBC Bank USA, N.A.
	 	$	14,411,764.71	 	 	$	7,411,764.71	 	 	$	21,823,529.42	 	 	 	41.176470588	%
	Bank of America, N.A.
	 	$	14,411,764.71	 	 	$	7,411,764.71	 	 	$	21,823,529.42	 	 	 	41.176470588	%
	Manufacturers and Traders Trust Company
	 	$	6,176,470.58	 	 	$	3,176,470.58	 	 	$	9,352,941.16	 	 	 	17.647058823	%
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	$	35,000,000.00	 	 	$	18,000,000.00	 	 	$	53,000,000.00	 	 	 	1.00000	%

Applicable Lending Offices:

	 	 	 	 	 
	Lender	 	Domestic Lending Office	 	Libor Lending Office
	 
	 	 	 	 
	HSBC Bank USA, National 

Association

	 	One HSBC Center

Buffalo, NY 14203
	 	One HSBC Center

Buffalo, NY 14203
	 
	 	 	 	 
	Bank of America, N.A.

	 	2001 Clayton Road 

Concord, CA 94520

Attn: Anna Maria Finn
Credit Service
Rep.

	 	2001 Clayton Road 

Concord, CA 94520

Attn: Anna Maria Finn
Credit Service
Rep.

	 
	 	 	 	 
	Manufacturers and
Traders Trust Company

	 	One Fountain Plaza

Buffalo, NY 14203
	 	One Fountain Plaza

Buffalo, NY 14203

ISSUING BANK’S COMMITMENT

	 	 	 	 	 
	 	 	Letter of Credit	 
	Issuing Bank	 	Commitment	 
	 	 	 	 
	HSBC Bank USA, National Association
	 	$	20,000,000	 

 

 

 

SCHEDULE 4.11

SUBSIDIARIES; AFFILIATES

A. Subsidiaries of Astronics Corporation:

	 	 	 	 	 	 	 
	Company	 	Incorporated	 	% Owned	 
	 	 	 	 	 	 
	Luminescent Systems, Inc.
	 	New York	 	 	100	%
	 	 	 	 	 	 
	Luminescent Systems Europe B.V.B.A.
	 	Belgium	 	 	50	%
	 	 	 	 	 	 
	Astronics Advanced Electronic Systems Corp.
	 	Washington	 	 	100	%
	 	 	 	 	 	 
	Astronics Air LLC *
	 	New York	 	 	100	%
	 	 	 	 	 	 
	D M E Corporation
	 	Florida	 	 	100	%

B. Subsidiaries of Luminescent Systems, Inc.:

	 	 	 	 	 	 	 
	Luminescent Systems Europe B.V.B.A.
	 	Belgium	 	 	50	%
	 	 	 	 	 	 
	Luminescent Systems of Canada Inc.
	 	Canada	 	 	100	%

	 	 	 
	*	 	Sole asset is a single-engine aircraft

 

 

 

SCHEDULE 6.2

LIENS AND INDEBTEDNESS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Due
	Property/Equipment	 	Owner	 	Lien Held By	 	Type	 	Balance	 	 	Date
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lot 27, Centerra 

Business Park 

4 Lucent Drive 

Lebanon, New Hampshire

	 	Luminescent
Systems, Inc.
	 	HSBC Bank
	 	IRB *
	 	$	2,850,000	 	 	 	06/18	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	130 Commerce Way 

East Aurora, New York

	 	Luminescent
Systems, Inc.
	 	HSBC Bank
	 	IRB *
	 	$	2,595,000	 	 	 	12/19	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Luminescent
Systems, Inc.
	 	HSBC Bank
	 	IRB *
	 	$	5,740,000	 	 	 	4/27	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Unsecured Loan
Backed by Existing
Letter of Credit

	 	Luminescent
Systems Canada
Inc.
	 	HSBC Bank

Canada
	 	Loan
	 	$	869,040 

(U.S.)	 	 	Demand,
no later
8/31/15

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Capitalized Lease/Secured 

Equipment Loan 

Covering Telephone System

	 	D M E Corporation
	 	US Bancorp
	 	Lease
	 	$	56,358	 	 	 	2012	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	D M E Dell Equipment

	 	D M E Corporation
	 	Dell Financial
Service L.P.
	 	Secured

Revolver
	 	$	100,000 

Maximum
	 	 	 	 	 

	 	 	 
	*	 	Each of the IRB transactions are variable rate bond transactions backed by one of the IRB Letters
of Credit.

 

 

 

SCHEDULE 6.3

INVESTMENTS AND GUARANTY OBLIGATIONS

14,535 shares of common stock of Tel-Instrument Electronics Corp., which is traded on the American
Stock Exchange, with an approximate value as of July 22, 2011 of $9.050 per share.exv4w1

Exhibit 4.1

	ASPEN AEROGELS, INC.THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO
REQUESTS, A SUMMARY OF THE POWERS, DESIGNATIONS,PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL
OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OF THE COMPANY AND THEQUALIFICATIONS, LIMITATIONS OR
RESTRICTIONS OF SUCH PREFERENCES AND RIGHTS, AND THE VARIATIONS IN RIGHTS, PREFERENCES
ANDLIMITATIONS DETERMINED FOR EACH SERIES, WHICH ARE FIXED BY THE CERTIFICATE OF INCORPORATION OF
THE COMPANY, AS AMENDED, ANDTHE RESOLUTIONS OF THE BOARD OF DIRECTORS OF THE COMPANY, AND THE
AUTHORITY OF THE BOARD OF DIRECTORS TO DETERMINEVARIATIONS FOR FUTURE SERIES. SUCH REQUEST MAY BE
MADE TO THE OFFICE OF THE SECRETARY OF THE COMPANY OR TO THE TRANSFERAGENT. THE BOARD OF DIRECTORS
MAY REQUIRE THE OWNER OF A LOST OR DESTROYED STOCK CERTIFICATE, OR HIS LEGALREPRESENTATIVES, TO
GIVE THE COMPANY A BOND TO INDEMNIFY IT AND ITS TRANSFER AGENTS AND REGISTRARS AGAINST ANY CLAIM
THATMAY BE MADE AGAINST THEM ON ACCOUNT OF THE ALLEGED LOSS OR DESTRUCTION OF ANY SUCH CERTIFICATE.
The following abbreviations, when used in the inscription on the face of this certificate, shall be
construed as though they were written out in fullaccording to applicable laws or regulations:TEN
COM-as tenants in commonUNIF GIFT MIN ACT-Custodian. Cust)(Minor)TEN ENT-as tenants by the
entiretiesunder Uniform Gifts to Minors Act State)JT TEN-as joint tenants with right of
survivorshipUNIF TRF MIN ACT Custodian (until age.)and not as tenants in common(Cust) under
Uniform Transfers to Minors Act.. Minor)(State)Additional abbreviations may also be used though not
in the above list. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE For value
received hereby sell, assign and transfer unto (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS,
INCLUDING POSTAL ZIP CODE, OF ASSIGNEE) of the common stock represented by the within Certificate,
and do hereby irrevocably constitute and appoint Shares o transfer the said stock on the books of
the within-named Company with full power of substitution in the premises. Attorney Dated 20 E(S)
SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks,Stockbrokers, Savings and Loan
Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVEDSIGNATURE GUARANTEE MEDALLION
PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. Signature: Signature: Notice: The signature to this
assignment must correspond with the nameas written upon the face of the certificate, in every
particular,without alteration or enlargement, or any change whatever. he IRS requires that we
report the cost basis of certain sharesacquired after January 1, 2011. If your shares were covered
bythe legislation and you have sold or transferred the shares andrequested a specific cost basis
calculation method, we haveprocessed as requested. If you did not specify a cost basiscalculation
method, we have defaulted to the first in, first out(FIFO) method. Please visit our website or
consult your taxadvisor if you need additional information about cost basis. If you do not keep in
contact with us or do not have anyactivity in your account for the time periods specified by
statelaw, your property could become subject to state unclaimedproperty laws and transferred to the
appropriate state.

 

 

	016570| 003590|127C|RESTRICTED||4|057-423 COMMON STOCKPAR VALUE $0.001COMMON STOCKTHIS CERTIFICATE
IS TRANSFERABLE INCANTON, MA AND NEW YORK, NY CertificateNumberASPEN AEROGELS, INC.INCORPORATED
UNDER THE LAWS OF THE STATE OF DELAWARE THIS CERTIFIES THAT is the owner of SEE REVERSE FOR CERTAIN
DEFINITIONS is the owner of FULLY-PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK OF Aspen
Aerogels, Inc. (hereinafter called the “Company”), transferable on the books of the Company
inperson or by duly authorized attorney, upon surrender of this Certificate properly endorsed. This
Certificate andthe shares represented hereby, are issued and shall be held subject to all of the
provisions of the Certificate ofIncorporation, as amended, and the By-Laws, as amended, of the
Company (copies of which are on file with theCompany and with the Transfer Agent), to all of which
each holder, by acceptance hereof, assents. ThisCertificate is not valid unless countersigned and
registered by the Transfer Agent and Registrar.Witnessthe facsimile seal of the Company and the
facsimile signatures of its duly authorized officers. DATED COUNTERSIGNED AND
REGISTERED:COMPUTERSHARE TRUST COMPANY, N.A.TRANSFER AGENT AND REGISTRAR,

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