Document:

exv10w11

 

Exhibit 10.11

CREDIT AND SECURITY AGREEMENT

     THIS CREDIT AND SECURITY AGREEMENT (as the same may be amended, supplemented, restated or
otherwise modified from time to time, the “Agreement”) is dated as of February 22, 2007 by and
among ALSIUS CORPORATION, a California corporation, and any additional Borrower that may hereafter
be added to this Agreement (each individually as a “Borrower” and collectively as “Borrowers”),
MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services Inc., individually
as a Lender, and as Administrative Agent, and the financial institutions or other entities from
time to time parties hereto, each as a Lender.

RECITALS

Borrowers have requested that Lenders make available to Borrowers the financing facilities as
described herein. Lenders are willing to extend such credit to Borrowers under the terms and
conditions herein set forth.

AGREEMENT

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

ARTICLE 1 — DEFINITIONS

     Section 1.1 Certain Defined Terms.

     The following terms have the following meanings:

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

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

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

     “Affiliate” means with respect to any Person (a) any Person that directly or indirectly
controls such Person, (b) any Person which is controlled by or is under common control with such
controlling Person, and (c) each of such Person’s (other than, with respect to any Lender, any
Lender’s) officers or directors (or Persons functioning in substantially similar roles) and the
spouses, parents, descendants and siblings of such officers, directors or other Persons. As used
in this definition, the term “control” of a Person means the possession, directly or indirectly, of
the power to vote five percent (5%) or more of any class of voting securities of such Person or to
direct or cause the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract
or otherwise.

 

 

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

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

     “Asset Disposition” means any sale, lease, license, transfer, assignment or other consensual
disposition by any Credit Party of any asset.

     “Assignment Agreement” means an agreement in form and substance satisfactory to Administrative
Agent.

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

     “Base Rate” means the LIBOR Rate.

     “Base Rate Margin” means six and one half percent (6.5%) per annum with respect to the Term
Loan and other Obligations.

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

     “Borrower” and “Borrowers” mean the entity(ies) described in the first paragraph of this
Agreement and each of their successors and permitted assigns.

     “Borrower Representative” means Alsius Corporation, in its capacity as Borrower Representative
pursuant to the provisions of Section 2.9, or any successor Borrower Representative selected by
Borrowers and approved by Administrative Agent.

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

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980, 42 U.S.C.A. § 9601 et seq., as the same may be amended from time to time.

     “Change in Control” means any of the following: (a) any change in the legal or beneficial
ownership of the capital stock, partnership interests or membership interests, or in the capital
structure, organizational documents or governing documents, of the applicable Person; (b) any
pledge, assignment or hypothecation of or Lien or encumbrance on any of the legal or beneficial
equity interests in the applicable Person; (c) any change in the legal or beneficial ownership or
control of the outstanding voting equity interests of the applicable Person necessary at all

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times to elect a majority of the board of directors (or similar governing body) of each such
Person and to direct the management policies and decisions of such Person; or (d) the applicable
Person shall cease to, directly or indirectly, own and control one hundred percent (100%) of each
class of the outstanding equity interests of each Subsidiary of such Person; or (e) any “Change of
Control”, “Change in Control”, or terms of similar import under any Subordinated Debt Document.

     “Closing Date” means the date of this Agreement.

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

     “Collateral” means all property, now existing or hereafter acquired, that is mortgaged or
pledged to, or purported to be subjected to a Lien in favor of, Administrative Agent, for the
benefit of Administrative Agent and Lenders, pursuant to this Agreement and the Security Documents,
including, without limitation, all of the property described in Schedule 9.1 hereto.

     “Commitment Annex” means Annex A to this Agreement.

     “Commodity Account” means a “commodity account” as defined in Article 9 of the UCC.

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

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

     “Controlled Group” means all members of any group of corporations and all members of a group
of trades or businesses (whether or not incorporated) under common control which, together with any
Borrower, are treated as a single employer under Section 414(b), (c), (m) or (o) of the Code or
Section 4001(b) of ERISA.

     “Credit Exposure” means any period of time during which the Term Loan Commitment is
outstanding or any Obligation remains unpaid or outstanding; provided, however, that no Credit
Exposure shall be deemed to exist solely due to the existence of contingent indemnification
liability, absent the assertion of a claim, or the known existence of a claim reasonably likely to
be asserted, with respect thereto.

     “Credit Party” means any Guarantor under a Guarantee of the Obligations or any part thereof,
any Borrower and any other Person (other than Administrative Agent, a Lender or a participant of a
Lender), whether now existing or hereafter acquired or formed, that becomes obligated as a
borrower, guarantor, surety, indemnitor, pledgor, assignor or other obligor under any Financing
Document; and “Credit Parties” means all such Persons, collectively.

     “Debt” of a Person means at any date, without duplication, (a) all obligations of such Person
for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or
other similar instruments, (c) all obligations of such Person to pay the deferred purchase price of
property or services, except trade accounts payable

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arising and paid on a timely basis and in the Ordinary Course of Business, (d) all capital
leases of such Person, (e) all non-contingent obligations of such Person to reimburse any bank or
other Person in respect of amounts paid under a letter of credit, banker’s acceptance or similar
instrument, (f) all equity securities of such Person subject to repurchase or redemption otherwise
than at the sole option of such Person, (g) all obligations secured by a Lien on any asset of such
Person, whether or not such obligation is otherwise an obligation of such Person, (h) all Debt of
others guaranteed by such Person, (h) “earnouts”, purchase price adjustments, profit sharing
arrangements, deferred purchase money amounts and similar payment obligations or continuing
obligations of any nature of such Person arising out of purchase and sale contracts, (i) all Debt
of others Guaranteed by such Person, (j) off balance sheet liabilities and/or pension plan
liabilities of such Person, (k) obligations arising under non-compete agreements, and (l)
obligations arising under bonus, deferred compensation, incentive compensation or similar
arrangements, other than those arising in the Ordinary Course of Business. Without duplication of
any of the foregoing, Debt of Borrowers shall include any and all Loans.

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

     “Defaulted Lender” means, so long as such failure shall remain in existence and uncured, any
Lender which shall have failed to make any Loan or other credit accommodation, disbursement,
settlement or reimbursement required pursuant to the terms of any Financing Document.

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

     “Deposit Account Control Agreement” means an agreement, in form and substance satisfactory to
Administrative Agent, among Administrative Agent, any applicable Borrower and each bank or
financial institution in which such Borrower maintains a Deposit Account, which agreement provides
that (a) such bank or financial institution acknowledges the security interest of Administrative
Agent in such Deposit Account, (b) such bank or financial institution shall comply with
instructions originated by Administrative Agent directing disposition of the funds in such Deposit
Account without further consent by the applicable Borrower, and (c) such bank or financial
institution shall agree that it shall have no Lien on, or right of setoff or recoupment against,
such Deposit Account or the contents thereof, other than in respect of usual and customary service
fees and of returned items for which Administrative Agent has been given value, in each such case
expressly consented to by Administrative Agent, and containing such other terms and conditions as
Administrative Agent may require.

     “Dollars” or “$” means the lawful currency of the United States of America.

     “Domestic Subsidiary” means any Subsidiary that is a “U.S. person” under and as defined in
Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended.

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

     “Eligible Swap Counterparty” means Administrative Agent, any Affiliate of Administrative
Agent, any Lender and/or any Affiliate of any Lender, that (a) at any time it occupies such role or
capacity enters into a Permitted Swap Contract with any Borrower or any Guarantor who has pledged
Collateral in respect of the Obligations or such Guarantee of the Obligations, and (b) in the case
of a Lender or an Affiliate of a Lender other than Administrative Agent, is expressly identified by
Administrative Agent as maintaining a reporting system acceptable to Administrative Agent with
respect to Swap Contract exposure and agrees with Administrative Agent

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to provide regular reporting to Administrative Agent, in form and content reasonably
satisfactory to Administrative Agent, with respect to such exposure.

     “Environmental Laws” means any present and future federal, state and local laws, statutes,
ordinances, rules, regulations, standards, policies and other governmental directives or
requirements, as well as common law, pertaining to the environment, natural resources, pollution,
health (including any environmental clean up statutes and all regulations adopted by any local,
state, federal or other Governmental Authority, and any statute, ordinance, code, order, decree,
law rule or regulation all of which pertain to or impose liability or standards of conduct
concerning medical waste or medical products, equipment or supplies), safety or clean-up that apply
to any Borrower and relate to Hazardous Materials, including, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.), the
Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), the Federal Water
Pollution Control Act (33 U.S.C. § 1251 et seq.), the Hazardous Materials Transportation Act (49
U.S.C. § 5101 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Federal Insecticide,
Fungicide and Rodenticide Act (7 U.S.C. § 136 et seq.), the Emergency Planning and Community
Right-to-Know Act (42 U.S.C. § 11001 et seq.), the Occupational Safety and Health Act (29 U.S.C. §
651 et seq.), the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. § 4851 et seq.), any
analogous state or local laws, any amendments thereto, and the regulations promulgated pursuant to
said laws, together with all amendments from time to time to any of the foregoing and judicial
interpretations thereof.

     “Environmental Liens” means all Liens and other encumbrances imposed pursuant to any
Environmental Law, whether due to any act or omission of any Borrower or any other Person.

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

     “ERISA Plan” means any “employee benefit plan”, as such term is defined in Section 3(3) of
ERISA (other than a Multiemployer Plan), which any Borrower maintains, sponsors or contributes to,
or, in the case of an employee benefit plan which is subject to Section 412 of the Code or Title IV
of ERISA, to which any Borrower or any member of the Controlled Group may have any liability,
including any liability by reason of having been a substantial employer within the meaning of
Section 4063 of ERISA at any time during the preceding five (5) years, or by reason of being deemed
to be a contributing sponsor under Section 4069 of ERISA.

     “Estoppel Certificate” has the meaning set forth in Section 4.8.

     “Event of Default” has the meaning set forth in Section 10.1.

     “Excluded Property” has the meaning set forth in Schedule 9.1.

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

     “Financing Documents” means this Agreement, any Notes, the Security Documents, any fee letter
among Merrill Lynch and any of the Borrowers relating to the transactions contemplated hereby, any
subordination or intercreditor agreement pursuant to which any Debt and/or any Liens securing such
Debt is subordinated to all or any portion of the Obligations and all other documents, instruments
and agreements related to the Obligations and

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heretofore executed, executed concurrently herewith or executed at any time and from time to
time hereafter, as any or all of the same may be amended, supplemented, restated or otherwise
modified from time to time.

     “Foreign Lender” has the meaning set forth in Section 2.8(c).

     “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

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

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

     “Guarantee” by any Person means any obligation, contingent or otherwise, of such Person
directly or indirectly guaranteeing any Debt or other obligation of any other Person and, without
limiting the generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person (a) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Debt or other obligation, or (b) entered into for the purpose of assuring in any
other manner the obligee of such Debt or other obligation of the payment thereof or to protect such
obligee against loss in respect thereof (in whole or in part) (in each case under clause (a) or (b)
whether arising by virtue of partnership arrangements, by agreement to keep-well or to make capital
contributions or loans, to purchase assets, goods, securities or services, to take-or-pay, or to
maintain financial statement conditions or otherwise), provided, however, that the term Guarantee
shall not include endorsements for collection or deposit in the Ordinary Course of Business. The
term “Guarantee” used as a verb has a corresponding meaning.

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

     “Hazardous Materials” means petroleum and petroleum products and compounds containing them,
including gasoline, diesel fuel and oil; explosives, flammable materials; radioactive materials;
polychlorinated biphenyls and compounds containing them; lead and lead-based paint; asbestos or
asbestos-containing materials; underground or above-ground storage tanks, whether empty or
containing any substance; toxic mold, any substance that requires special handling; and any other
material or substance now or in the future defined as a “hazardous substance,” “hazardous
material,” “hazardous waste,” “toxic substance,” “toxic pollutant,” “contaminant,” “pollutant” or
other words of similar import within the meaning of any Environmental Law, including: (a) any
“hazardous substance” defined as such in (or for purposes of) CERCLA, or any so-called “superfund”
or “superlien” Law, including the judicial interpretation thereof; (b) any “pollutant or
contaminant” as defined in 42 U.S.C.A. § 9601(33); (c) any material now defined as “hazardous
waste” pursuant to 40 C.F.R. Part 260; (d) any petroleum or petroleum by-products, including crude
oil or any fraction thereof; (e) natural gas, natural gas liquids, liquefied natural gas, or
synthetic gas usable for fuel; (f) any “hazardous chemical” as defined pursuant to 29 C.F.R. Part
1910; (g) any toxic or harmful substances, wastes, materials, pollutants or contaminants
(including, without limitation, asbestos, polychlorinated biphenyls (“PCB’s”), flammable
explosives, radioactive materials, infectious substances, materials containing lead-based paint or
raw materials which include hazardous constituents); and (h) any other toxic substance or
contaminant that is subject to any Environmental Laws or other past or present requirement of any
Governmental Authority.

     “Hazardous Materials Contamination” means contamination (whether now existing or hereafter
occurring) of the improvements, buildings, facilities, personalty, soil, groundwater, air or other
elements on or of the relevant property by Hazardous Materials, or any derivatives thereof, or on
or of any other property as a result of Hazardous Materials, or any derivatives thereof, generated
on, emanating from or disposed of in connection with the relevant property.

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     “Indemnitees” has the meaning set forth in Section 12.17.

     “Intellectual Property” means, with respect to any Person, all patents, patent applications
and like protections, including improvements divisions, continuation, renewals, reissues,
extensions and continuations in part of the same, trademarks, trade names, trade styles, trade
dress, service marks, logos and other business identifiers and, to the extent permitted under
applicable law, any applications therefor, whether registered or not, and the goodwill of the
business of such Person connected with and symbolized thereby, copyright rights, copyright
applications, copyright registrations and like protections in each work of authorship and
derivative works, whether published or unpublished, technology, know-how and processes, operating
manuals, trade secrets, computer hardware and software, rights to unpatented inventions and all
applications and licenses therefor, used in or necessary for the conduct of business by such Person
and all claims for damages by way of any past, present or future infringement of any of the
foregoing.

     “Interest Periods” means the one-month period commencing on the date that the advance under
the Term Loan is made and each subsequent one-month period commencing on the same day of each month
thereafter.

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

     “IP Proceeds” has the meaning set forth in Schedule 9.1.

     “Ithaka Merger Agreement” means that certain Agreement and Plan of Merger Agreement dated
October 3, 2006 by and among Ithaka Acquisition Corp., Ithaka Sub Acquisition Corp., certain of the
shareholders of Borrower, and Borrower.

     “Ithaka Merger Transaction” means the merger Ithaka Sub Acquisition Corp. with and into
Principal Borrower in accordance with the Ithaka Merger Agreement.

     “Ithaka Warrant” means a warrant to purchase stock of Ithaka Acquisition Corp. in the form of
Exhibit A of the Side Letter.

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

     “Lender” means each of (a) Merrill Lynch, in its capacity as a lender hereunder, (b) each
other Person party hereto in its capacity as a lender hereunder, (c) each other Person that becomes
a party hereto as Lender pursuant to Section 12.6, and (d) the respective successors of all of the
foregoing, and “Lenders” means all of the foregoing. In addition to the foregoing, for the purpose
of identifying the Persons entitled to share in the Collateral and the proceeds thereof under, and
in accordance with the provisions of, this Agreement and the Security Documents, the term “Lender”
shall include Eligible Swap Counterparties.

     “LIBOR Rate” means a rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
1%) equal to (a) the rate of interest which is identified and normally published by Bloomberg
Professional Service Page BBAM 1 as the offered rate for loans in United States dollars for the
period of one (1) month under the caption British Bankers Association LIBOR Rates as of 11:00 a.m.
(London time) on the second full Business Day prior to the commencement of the applicable Interest
Period (unless such date is not a Business Day, in which event the next succeeding Business Day
will be used); divided by (b) the sum of one minus the daily average during the preceding month of
the aggregate maximum reserve requirement (expressed as a decimal) then imposed under Regulation D
of the Board of Governors of the Federal Reserve System (or any successor thereto) for
“Eurocurrency Liabilities” (as

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defined therein). If Bloomberg Professional Service (or another nationally-recognized rate
reporting source acceptable to Administrative Agent) no longer reports the LIBOR or Administrative
Agent determines in good faith that the rate so reported no longer accurately reflects the rate
available to Administrative Agent in the London Interbank Market or if such index no longer exists
or if Page BBAM 1 no longer exists or accurately reflects the rate available to Administrative
Agent in the London Interbank Market, Administrative Agent may select a comparable replacement
index or replacement page, as the case may be.

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

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

     “Loan Account” has the meaning set forth in Section 2.6(b).

     “Loan(s)” means the Term Loan and each and every advance under the Term Loan, or any
combination of the foregoing, as the context may require. All references herein to the “making” of
a Loan or words of similar import shall mean, with respect to the Term Loan, the making of any
advance in respect of a Term Loan.

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

     “Material Contracts” has the meaning set forth in Section 3.17.

     “Maximum Lawful Rate” has the meaning set forth in Section 2.7.

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

     “Multiemployer Plan” means a multiemployer plan within the meaning of Section 4001(a)(3) of
ERISA to which any Borrower or any other member of the Controlled Group (or any Person who in the
last five years was a member of the Controlled Group) is making or accruing an obligation to make
contributions or has within the preceding five plan years (as determined on the applicable date of
determination) made contributions.

     “Notes” shall have the meaning set forth in Section 2.3.

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

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

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Obligations shall include, without limitation, all obligations, liabilities and indebtedness
arising from or in connection with all Permitted Swap Contracts entered into with any Eligible Swap
Counterparty.

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

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

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

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

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

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

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

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

     “Permits” means all governmental licenses, authorizations, provider numbers, supplier numbers,
registrations, permits, drug or device authorizations and approvals, certificates, franchises,
qualifications, accreditations, consents and approvals required under all applicable Laws and
required in order to carry on its business as now conducted.

     “Permitted Affiliate” means with respect to any Person (a) any Person that directly or
indirectly controls such Person, and (b) any Person which is controlled by or is under common
control with such controlling Person. As used in this definition, the term “control” of a Person
means the possession, directly or indirectly, of the power to vote eighty percent (80%) or more of
any class of voting securities of such Person or to direct or cause the direction of the management
or policies of a Person, whether through the ownership of voting securities, by contract or
otherwise.

     “Permitted Asset Dispositions” means the following Asset Dispositions provided that, at the
time of such Asset Disposition, no Default or Event of Default exists or would result from such
Asset Disposition: (i) dispositions of Inventory in the Ordinary Course of Business and not
pursuant to any bulk sale, (ii) dispositions of furniture, fixtures and equipment in the Ordinary
Course of Business that the applicable Borrower determines in good faith is no longer used or
useful in the business of such Borrower and its Subsidiaries, (iii) the granting of non exclusive
licenses (or exclusive licenses limited to a particular geographic range or field of use), and (iv)
dispositions approved by Administrative Agent and, if the disposition pertains to real property
Collateral, by Required Lenders.

     “Permitted Contest” means, with respect to any tax obligation or other obligation allegedly or
potentially owing from any Borrower to any governmental tax authority or other third party, a
contest maintained in good faith by appropriate proceedings promptly instituted and diligently
conducted and with respect to which such reserve or other appropriate provision, if any, as shall
be required in conformity with GAAP shall have been made on the

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

     “Permitted Contingent Obligations” means: (a) Contingent Obligations arising in respect of
the Debt under the Financing Documents; (b) Contingent Obligations resulting from endorsements for
collection or deposit in the Ordinary Course of Business; (c) Contingent Obligations arising under
or with respect to any Permitted Contest or Permitted Liens; (d) Contingent Obligations outstanding
on the date of this Agreement and set forth on Schedule 5.1; (e) Contingent Obligations
incurred in the Ordinary Course of Business with respect to surety and appeal bonds, performance
bonds and other similar obligations not to exceed Five Hundred Thousand Dollars ($500,000) in the
aggregate at any time outstanding and with respect to bonds provided to utilities with respect to
utility services provided to Borrowers in the Ordinary Course of Business; (f) Contingent
Obligations arising under indemnity agreements with title insurers to cause such title insurers to
issue to Administrative Agent mortgagee title insurance policies with respect to any real estate
Collateral (if any); (g) Contingent Obligations arising with respect to customary indemnification
obligations in favor of purchasers in connection with dispositions permitted under Section 5.6; (h)
so long as there exists no Event of Default both immediately before and immediately after giving
effect to any such transaction, Contingent Obligations existing or arising under any Permitted Swap
Contract; and (i) other Contingent Obligations not permitted by clauses (a) through (h) above, not
to exceed Five Hundred Thousand Dollars ($500,000) in the aggregate at any time outstanding.

     “Permitted Indebtedness” means: (a) Borrower’s Debt to Administrative Agent and each Lender
under this Agreement and the other Financing Documents; (b) Debt incurred as a result of endorsing
negotiable instruments received in the Ordinary Course of Business; (c) purchase money Debt not to
exceed One Million Dollars ($1,000,000) at any time (whether in the form of a loan or a lease) used
solely to acquire equipment and/or software used in the Ordinary Course of Business and secured
only by such equipment and/or software; (d) Debt existing on the date of this Agreement and
described on Schedule 5.1 (but not including any refinancings, extensions, increases or
amendments to such Debt other than extensions of the maturity thereof without any other change in
terms); (e) Debt, if any, arising under Swap Contracts; (f) trade accounts payable arising and paid
on a timely basis and in the Ordinary Course of Business; and (g) Subordinated Debt.

     “Permitted Investments” means: (a) Investments shown on Schedule 5.7 and existing on
the Closing Date; (b) (i) cash equivalents, and (ii) any similar short term Investments permitted
by Borrowers’ investment policy, as amended from time to time, provided that such investment policy
(and any such amendment thereto) has been approved in writing by Administrative Agent; (c)
Investments consisting of the endorsement of negotiable instruments for deposit or collection or
similar transactions in the Ordinary Course of Business; (d) Investments consisting of (i) travel
advances and employee relocation loans and other employee loans and advances in the Ordinary Course
of Business, and (ii) loans to employees, officers or directors relating to the purchase of equity
securities of Borrowers or their Subsidiaries pursuant to employee stock purchase plans or
agreements approved by Borrowers’ Board of Directors (or other governing body), but the aggregate
of all such loans outstanding may not

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exceed One Hundred Thousand Dollars ($100,000) at any time; (e) Investments (including debt
obligations) received in connection with the bankruptcy or reorganization of customers or suppliers
and in settlement of delinquent obligations of, and other disputes with, customers or suppliers
arising in the Ordinary Course of Business; (f) Investments consisting of notes receivable of, or
prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates,
in the Ordinary Course of Business; provided that this subpart (f) shall not apply to Investments
of Borrowers in any Subsidiary; (g) Investments consisting of Deposit Accounts or Securities
Accounts in which Administrative Agent has received a Deposit Account Control Agreement or
Securities Account Control Agreement; (h) Investments consisting of the acquisition of all or
substantially all of the assets or capital stock of another Person provided that, after giving
effect to such acquisition, no Event of Default has occurred and is continuing or would exist after
giving effect to such acquisition, and such acquisition would not result in a decrease of more than
ten percent (10%) of the Tangible Net Worth of the Borrowers; (i) Investments by any Borrower in
any other Borrower made in compliance with Section 4.11(c); and (j) other Investments in an amount
not exceeding Five Hundred Thousand Dollars ($500,000) in the aggregate.

     “Permitted Liens” means: (a) deposits or pledges of cash to secure obligations under workmen’s
compensation, social security or similar laws, or under unemployment insurance (but excluding Liens
arising under ERISA) pertaining to a Borrower’s employees, if any; (b) deposits or pledges of cash
to secure bids, tenders, contracts (other than contracts for the payment of money or the deferred
purchase price of property or services), leases, statutory obligations, surety and appeal bonds and
other obligations of like nature arising in the Ordinary Course of Business; (c) carrier’s,
warehousemen’s, mechanic’s, workmen’s, materialmen’s or other like Liens on Collateral, other than
Accounts, arising in the Ordinary Course of Business with respect to obligations which are not due,
or which are being contested pursuant to a Permitted Contest; (d) Liens on Collateral, other than
Accounts, for taxes or other governmental charges not at the time delinquent or thereafter payable
without penalty or the subject of a Permitted Contest; (e) attachments, appeal bonds, judgments and
other similar Liens on Collateral other than Accounts, for sums not exceeding Two Hundred and Fifty
Thousand Dollars ($250,000) in the aggregate arising in connection with court proceedings;
provided, however, that the execution or other enforcement of such Liens is effectively stayed and
the claims secured thereby are the subject of a Permitted Contest; (f) with respect to real estate,
easements, rights of way, restrictions, minor defects or irregularities of title, none of which,
individually or in the aggregate, materially interfere with the benefits of the security intended
to be provided by the Security Documents, materially affect the value or marketability of the
Collateral, impair the use or operation of the Collateral for the use currently being made thereof
or impair Borrowers’ ability to pay the Obligations in a timely manner or impair the use of the
Collateral or the ordinary conduct of the business of any Borrower or any Subsidiary and which, in
the case of any real estate which is part of the Collateral, are set forth as exceptions to or
subordinate matters in the title insurance policy accepted by Administrative Agent insuring the
lien of the Security Documents; (g) Liens and encumbrances in favor of Administrative Agent under
the Financing Documents; (h) Liens on Collateral other than Accounts existing on the date hereof
and set forth on Schedule 5.2 and (i) any Lien on any equipment securing Debt permitted
under subpart (c) of the definition of Permitted Indebtedness provided, however, that such Lien
attaches concurrently with or within twenty (20) days after the acquisition thereof.

     “Permitted Mergers” means: (A) the Ithaka Merger Transaction, and (B) a merger, consolidation
or amalgamation of (a) Principal Borrower with or into any other Person who is not a Blocked Person
provided that (i) the Principal Borrower is the surviving entity, (ii) the holders of the equity
interests in the Principal Borrower immediately prior to such consolidation or merger or
amalgamation represent more than fifty percent (50%) of the aggregate outstanding equity interests
of the Principal Borrower immediately following such consolidation or merger or amalgamation, and
(iii) such consolidation or merger or amalgamation would not result in a decrease of more than ten
percent (10%) of the Tangible Net Worth of the Principal Borrower, and (b) any Borrower (other than
Principal Borrower) with or into any other Borrower.

     “Permitted Modifications” means (a) such amendments or other modifications to a Borrower’s
Organizational Documents as are required under this Agreement or by applicable Law and fully
disclosed to Administrative Agent within thirty (30) days after such amendments or modifications
have become effective, (b) such amendments or modifications to a Borrower’s Organizational
Documents (other than those involving a change in the name of a Borrower not permitted in clause
(c) below or involving a reorganization of the Borrower under the laws of a different jurisdiction)
that would not adversely affect the rights and interests of the Administrative Agent or Lenders and
fully disclosed to Administrative Agent within thirty (30) days after such amendments or
modifications have become effective, (c) the change of the Principal Borrower’s name to Alsius

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Medical Corporation in accordance with the Ithaka Merger Agreement, and (d) such modifications
to the name of a Borrower or involving a reorganization of the Borrower under the laws of a
different jurisdiction so long as the provisions of Section 9.2(d) are fully complied with prior to
the effectiveness of such amendments or modifications.

     “Permitted Swap Contract” means any Swap Contract by Borrower to provide protection against
fluctuations in interest or currency exchange rates in the Ordinary Course of Business for the
purpose of directly mitigating risks associated with liabilities, commitments, investments, assets,
or property held or reasonably anticipated by such Person and not for purposes of speculation but
only to the extent Administrative Agent provides its prior written consent to the entry into such
Swap Agreement.

     “Permitted Transfers” means the collective reference to one or more transfers, via a sale and
not by pledge or hypothecation, which, in the aggregate during the term of this Agreement, result
in a transfer of legal or beneficial ownership or control of up to twenty percent (20%) of the
direct or indirect ownership or voting interests in the Borrowers or any Guarantor to a Person, (a)
purchasing such ownership interest in a public offering registered with the SEC or (b) other than a
Blocked Person, that is (i) a venture capital investor so long as Borrowers have given
Administrative Agent at least fifteen (15) days prior written notice of the identity of the
assignees, together with such information as Administrative Agent shall deem necessary to confirm
that such assignee is not a Blocked Person or (ii) at the time of such transfer, already a holder
of direct or indirect ownership or voting interests in the Borrowers. Notwithstanding the
limitations set forth in the foregoing sentence (a) any holder of direct or indirect ownership or
voting interests in the Borrowers which is a partnership may transfer such holder’s rights to such
holder’s constituent partners, retired partners (including spouses, ancestors, lineal descendants
and siblings of such partners or spouses who acquire such interests by gift, will or intestate
succession) or their respective Affiliates, (b) any holder of direct or indirect ownership or
voting interests in the Borrowers which is a limited liability company may transfer such holder’s
right to such holder’s members, (c) any holder of direct or indirect ownership or voting interests
in the Borrowers which is a natural person may transfer such holder’s rights to any immediate
family member or to any trust created for the benefit of such holder or his or her immediate family
members, and (d) any holder of direct or indirect ownership or voting interests in the Borrowers
may transfer such holder’s rights to a Permitted Affiliate of such holder (provided that no
transfer of any given interest pursuant to this subpart may be made more often than once per twelve
(12) month period), subject in each case to such transferee’s agreeing in writing to be bound by
the rights and restrictions of this Agreement; and any such transfer described in the foregoing
clauses (a) through (d) shall be deemed a “Permitted Transfer” and shall not count toward the
twenty percent (20%) limitation described above.

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

     “Principal Borrower” means Alsius Corporation, a California corporation.

     “Pro Rata Share” means (a) with respect to a Lender’s obligation to make advances in respect
of a Term Loan and such Lender’s right to receive payments of principal and interest with respect
to the Term Loans, the Term Loan Commitment Percentage of such Lender, and (b) for all other
purposes with respect to any Lender, the percentage obtained by dividing (i) the sum of the Term
Loan Commitment Amount of such Lender (or, in the event the Term Loan Commitment shall have been
terminated, the then outstanding principal advances of such Lender under the Term Loan), by (ii)
the sum of the Term Loan Commitment Amount (or, in the event the Term Loan Commitment shall have
been terminated, the then outstanding principal advances of such Lenders under the Term Loan) of
all Lenders.

     “Reaffirmation Agreement” means an Reaffirmation Agreement in the form of Exhibit G
hereto.

     “Required Lenders” means at any time Lenders holding in the aggregate (a) sixty-six and two
thirds percent (66 2/3%) or more of the Term Loan Commitment (taken as a whole), or (b) if the Term
Loan Commitment has been terminated, sixty-six and two thirds percent (66 2/3%) or more of the
aggregate outstanding principal balance of the Loans. For purposes of this definition only, a
Lender shall be deemed to include itself, and any Lender that is an Affiliate or Approved Fund of
such Lender.

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

     “Restricted Distribution” means as to any Person (a) any dividend or other distribution
(whether in cash, securities or other property) on any equity interest in such Person (except those
payable solely in its equity interests of the same class), (b) any payment on account of (i) the
purchase, redemption, retirement, defeasance, surrender, cancellation, termination or acquisition
of any equity interests in such Person or any claim respecting the purchase or sale of any equity
interest in such Person (except in connection with the Warrant) or (ii) any option, warrant or
other right to acquire any equity interests in such Person (excluding, however the Warrant), (c)
any management fees, salaries or other fees or compensation to any Person holding an equity
interest in a Borrower or a Subsidiary of a Borrower (other than (A) payments of salaries to
individuals, (B) bonuses accrued prior to the date hereof that are paid to individuals , (C)
directors fees, (D) the issuance of stock options or restricted stock to employees, consultants and
board members, and (E) advances and reimbursements to employees, consultants or directors, all in
the Ordinary Course of Business and consistent with past practices), an Affiliate of a Borrower or
an Affiliate of any Subsidiary of a Borrower, (d) any lease or rental payments to an Affiliate or
Subsidiary of a Borrower, or (e) repayments of or debt service on loans or other indebtedness held
by any Person holding an equity interest in a Borrower or a Subsidiary of a Borrower, an Affiliate
of a Borrower or an Affiliate of any Subsidiary of a Borrower unless permitted under and made
pursuant to a Subordination Agreement applicable to such loans or other indebtedness.

     “SEC” means the United States Securities and Exchange Commission.

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

     “Securities Account Control Agreement” means an agreement, in form and substance satisfactory
to Administrative Agent, among Administrative Agent, any applicable Borrower and each securities
intermediary in which such Borrower maintains a Securities Account, which agreement provides that
(a) such securities intermediary acknowledges the security interest of Administrative Agent in such
Securities Account, (b) such securities intermediary shall comply with entitlement orders and any
other instructions originated by Administrative Agent directing disposition of the assets and funds
in such Securities Account without further consent by the applicable Borrower, and (c) such
securities intermediary shall agree that it shall have no Lien on, or right of setoff or recoupment
against, such Securities Account or the contents thereof, other than in respect of usual and
customary service fees and of returned items for which Administrative Agent has been given value,
in each such case expressly consented to by Administrative Agent, and containing such other terms
and conditions as Administrative Agent may require.

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

     “Side Letter” means that certain letter agreement by and among Ithaka Acquisition Corp., the
Administrative Agent and each Lender dated as of the date hereof with regard to the delivery of the
Ithaka Warrant , an Additional Borrower Joinder Supplement, an Allonge, account control agreements
and an opinion letter pursuant to the terms and conditions contained in such letter agreement.

     “Solvent” means, with respect to any Person, that such Person (a) has capital that is not
unreasonably small in relation to its business as presently conducted or after giving effect to any
contemplated transaction; and (b) does not intend to incur and does not believe that it will incur
debts beyond its ability to pay such debts as they become due.

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

     “Subordinated Debt Documents” means, with respect to any Debt governed by a Subordination
Agreement, any and all documents evidencing and/or securing such Debt.

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

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

     “Swap Contract” means any “swap agreement”, as defined in Section 101 of the Bankruptcy Code.

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

     “Taxes” has the meaning set forth in Section 2.8.

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

     “Term Loan Commitment” means the sum of each Lender’s Term Loan Commitment Amount, which is
equal to Eight Million Dollars ($8,000,000).

     “Term Loan Commitment Amount” means, (i) as to any Lender that is a Lender on the Closing
Date, the dollar amount set forth opposite such Lender’s name on the Commitment Annex under the
column “Term Loan Commitment Amount”, as such amount may be adjusted from time to time by any
amounts assigned (with respect to such Lender’s portion of Term Loans outstanding and its
commitment to make advances in respect of the Term Loan) pursuant to the terms of any and all
effective assignment agreements to which such Lender is a party and (ii) as to any Lender that
becomes a Lender after the Closing Date, the amount of the “Term Loan Commitment Amount(s)” of
other Lender(s) assigned to such new Lender pursuant to the terms of the effective assignment
agreement(s) pursuant to which such new Lender shall become a Lender, as such amount may be
adjusted from time to time by any amounts assigned (with respect to such Lender’s portion of Term
Loans outstanding and its commitment to make advances in respect of the Term Loan) pursuant to the
terms of any and all effective assignment agreements to which such Lender is a party.

     “Term Loan Commitment Percentage” means, as to any Lender, (a) on the Closing Date, the
percentage set forth opposite such Lender’s name on the Commitment Annex under the column “Term
Loan Commitment Percentage” (if such Lender’s name is not so set forth thereon, then, on the
Closing Date, such percentage for such

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Lender shall be deemed to be zero), and (b) on any date following the Closing Date, the
percentage equal to the Term Loan Commitment Amount of such Lender on such date divided by the Term
Loan Commitment on such date.

     “Term Note” means any note evidencing any portion of the Term Loan.

     “Termination Date” means the earlier to occur of (a) February 1, 2010, or (b) any date on
which Administrative Agent accelerates the maturity of the Loans pursuant to Section 10.2.

     “Total Liabilities” means, on any day, obligations that should, under GAAP, be classified as
liabilities on Borrowers’ consolidated balance sheet, including all Debt.

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

     “United States” means the United States of America.

     “Warrant” means each of those certain warrants to purchase equity interests in Borrower by and
between (i) the Borrower and Administrative Agent dated as of the date hereof and (ii) the Borrower
and each Lender dated as of the date hereof.

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

     Section 1.3 Other Definitional Provisions. References in this Agreement to “Articles”,
“Sections”, “Annexes”, “Exhibits” or “Schedules” shall be to Articles, Sections, Annexes, Exhibits
or Schedules of or to this Agreement unless otherwise specifically provided. Any term defined
herein may be used in the singular or plural. “Include”, “includes” and “including” shall be
deemed to be followed by “without limitation”. Except as otherwise specified or limited herein,
references to any Person include the successors and assigns of such Person. References “from” or
“through” any date mean, unless otherwise specified, “from and including” or “through and
including”, respectively. References to any statute or act shall include all related current
regulations and all amendments and any successor statutes, acts and regulations. References to any
statute or act, without additional reference, shall be deemed to refer to federal statutes and acts
of the United States. References to any agreement, instrument or document shall include all
schedules, exhibits, annexes and other attachments thereto. As used in this Agreement, the meaning
of the term “material” or the phrase “in all material respects” is intended to refer to an act,
omission, violation or condition which reflects or could reasonably be expected to result in a
Material Adverse Effect. References to capitalized terms that are not defined herein, but are
defined in the UCC, shall have the meanings given them in the UCC.

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

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

ARTICLE 2 — LOANS

     Section 2.1 Term Loans.

     (a) Term Loans.

          (i) Term Loan Amounts. On the terms and subject to the conditions set forth herein, the
Lenders hereby agree to make to Borrowers a term loan in an original principal amount equal to the
Term Loan Commitment (“Term Loan”). Each Lender’s obligation to fund the Term Loan shall be
limited to such Lender’s Term Loan Commitment Percentage, and no Lender shall have any obligation
to fund any portion of any Term Loan required to be funded by any other Lender, but not so funded.
No Borrower shall have any right to reborrow any portion of the Term Loan that is repaid or prepaid
from time to time. The Term Loan shall be funded in one advance on the Closing Date. Borrowers
shall deliver to Administrative Agent a Notice of Borrowing with respect to the proposed Term Loan
advance, such Notice of Borrowing to be delivered no later than noon (Chicago time) two (2)
Business Days prior to the Closing Date.

          (ii) Scheduled Repayments; Mandatory Prepayments; Optional Prepayments.

               (A) There shall become due and payable, and Borrowers shall repay the Term Loan through,
scheduled payments as set forth on Schedule 2.1 attached hereto. Notwithstanding the
payment schedule set forth above, the outstanding principal amount of the Term Loan shall become
immediately due and payable in full on the Termination Date.

               (B) There shall become due and payable and Borrowers shall prepay the Term Loan in the
following amounts and at the following times:

                    (i) on the date on which any Credit Party (or Administrative Agent as loss payee or assignee)
receives any casualty proceeds in excess of Two Hundred and Fifty Thousand Dollars ($250,000) (in
the aggregate for all such proceeds in any fiscal year) of assets upon which Administrative Agent
maintained a Lien, an amount equal to one hundred percent (100%) of such proceeds (net of
out-of-pocket expenses and repayment of secured debt permitted under clause (c) of the definition
of Permitted Indebtedness and encumbering the property that suffered such casualty), or such lesser
portion of such proceeds as Administrative Agent (with the consent of the Required Lenders) shall
elect to apply to the Obligations;

                    (ii) an amount equal to any interest that is deemed to be in excess of the Maximum Lawful Rate
(as defined below) and is required to be applied to the reduction of the principal balance of the
Loans by any Lender as provided for in Section 2.7;

                    (iii) upon receipt by any Credit Party of the proceeds of any Asset Disposition not made in
the Ordinary Course of Business or pertaining to Inventory, an amount equal to one hundred percent
(100%) of the net cash proceeds of such Asset Disposition (net of out-of-pocket expenses and
repayment of secured debt permitted under clause (c) of the definition of Permitted Indebtedness
and encumbering such asset), or such lesser portion as Administrative Agent (with the consent of
the Required Lenders) shall elect to apply to the Obligations; provided that, for the
avoidance of doubt, in this Section 2.1(a)(ii)(B), “Asset Disposition” shall include any
consideration, including up-front payments and royalties or licensing fees paid over time, received
by any Credit Party in connection with any exclusive license entered into by such Credit Party as
licensor with respect to any Intellectual Property of such Credit Party; and

                    (iv) upon receipt by any Credit Party of any Extraordinary Receipts, an amount equal to one
hundred percent (100%) of such Extraordinary Receipts, or such lesser portion as Administrative
Agent (with the consent of the Required Lenders) shall elect to apply to the Obligations.

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Notwithstanding the foregoing and so long as no Event of Default or Default then exists, any such
casualty proceeds in excess of $250,000 (other than with respect to Inventory and any real
property, unless Required Lenders shall otherwise elect) may be used by Borrowers within one
hundred eighty (180) days from the receipt of such proceeds to replace or repair any assets in
respect of which such proceeds were paid so long as (x) prior to the receipt of such proceeds,
Borrowers have delivered to Administrative Agent a reinvestment plan detailing such replacement or
repair acceptable to Administrative Agent in its reasonable discretion and (y) such proceeds are
deposited into an account over which Administrative Agent has control promptly upon receipt by such
Borrower.

All sums held by Administrative Agent pending reinvestment as described above shall be deemed
additional collateral for the Obligations and may be commingled with the general funds of
Administrative Agent.

               (C) Borrowers may from time to time, with at least two (2) Business Day’s prior delivery to
Administrative Agent of an appropriately completed Payment Notification, prepay the Term Loan, plus
all accrued interest, in whole but not in part (other than mandatory partial prepayments required
under this Agreement); provided, however, that each such prepayment shall be accompanied by any
prepayment fees required hereunder.

          (iii) All Prepayments. Except as this Agreement may specifically provide otherwise, all
prepayments of the Term Loan shall be applied by Administrative Agent to the Obligations in inverse
order of maturity; provided, however, that upon the occurrence and during an Event of Default, all
prepayments of the Term Loan shall be applied in accordance with Section 10.6. The monthly
payments required under Schedule 2.1 shall continue in the same amount (for so long as the Term
Loan and/or (if applicable) any advance thereunder shall remain outstanding) notwithstanding any
partial prepayment, whether mandatory or optional, of the Term Loan.

     Section 2.2 Interest, Interest Calculations and Certain Fees.

     (a) Interest. From and following the Closing Date, the Loans and the other Obligations shall
bear interest at the sum of the Base Rate plus the applicable Base Rate Margin, subject to the
provisions of Section 10.4 below regarding default rates of interest. Interest on the Loans shall
be paid in arrears on the first (1st) day of each month and on the maturity of such Loans, whether
by acceleration or otherwise. Interest on all other Obligations shall be payable on demand and
upon the Termination Date. For purposes of calculating interest, all funds transferred from the
Payment Account for application to the Term Loan shall be subject to a two (2) Business Day
clearance period.

     (b) Commitment Fee. Contemporaneous with Borrowers’ execution of this Agreement, Borrowers
shall pay Administrative Agent, for the benefit of all Lenders in accordance with their respective
Pro Rata Shares, a fee in an amount equal to Eighty Thousand Dollars ($80,000). All fees payable
pursuant to this paragraph shall be deemed fully earned and non-refundable as of the Closing Date.

     (c) Exit Fee. Borrowers shall pay to Administrative Agent, for the benefit of all
Lenders, as compensation for the costs of making funds available to Borrowers under this Agreement
an exit fee (the “Exit Fee”) calculated in accordance with this subsection and upon the date or
dates required under this subsection. The Exit Fee shall be equal to One Hundred Sixty Thousand
Dollars ($160,000). The Exit Fee shall be due and payable on the earlier to occur of (i) the
Termination Date or (ii) payment in full of the aggregate principal amount of the Term Loan
(whether voluntary, involuntary or mandatory). All fees payable pursuant to this paragraph shall
be deemed fully accrued and earned as of the Closing Date.

     (d) Prepayment Fee. If any advance under the Term Loan is prepaid at any time, in whole or in
part, for any reason (whether by voluntary or mandatory prepayment by Borrowers, by reason of the
occurrence of an Event of Default or the acceleration of the Term Loan, or otherwise), or if the
Term Loan shall become accelerated and due and payable in full, Borrowers shall pay to
Administrative Agent, for the benefit of all Lenders, as compensation for the costs of such Lenders
making funds available to Borrowers under this Agreement, a prepayment fee (the “Prepayment Fee”)
calculated in accordance with this subsection. If such prepayment occurs prior to the first
anniversary date of the Closing Date, the Prepayment Fee for the Term Loan shall be equal to the
amount prepaid multiplied by five percent (5.0%), if such prepayment occurs on or after the first
anniversary date of the Closing Date, but prior to the second anniversary date of the Closing Date,
the Prepayment Fee for the Term

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Loan shall be equal to the amount prepaid multiplied by two percent (2.0%) and if such
prepayment occurs on or after the second anniversary date of the Closing Date, the Prepayment Fee
for the Term Loan shall be equal to the amount prepaid multiplied by one percent (1.0%).
Notwithstanding the above, the prepayment fee provided for in this Section 2.2(d) shall not apply
to or be assessed upon any prepayment made by Borrowers pursuant to Section 2.1(a)(ii)(B)(i)
(relating to casualty proceeds). All fees payable pursuant to this paragraph shall be deemed fully
earned and non-refundable as of the Closing Date. For the avoidance of doubt, the obligations of
Borrowers under Sections 2.2(c) and (d) are distinct and separate obligations, and Borrowers shall
be obligated to pay the Exit Fee and the Prepayment Fee in accordance with Sections 2.2(c) and (d),
respectively.

     (e) Audit Fees. Borrowers shall pay to Administrative Agent, for its own account and not for
the benefit of any other Lenders, all reasonable fees and expenses in connection with audits and
inspections of Borrowers’ books and records, audits, valuations or appraisals of the Collateral,
audits of Borrowers’ compliance with applicable Laws and such other matters as Administrative Agent
shall deem appropriate, which shall be due and payable on the later of (i) the first Business Day
of the month following the date of issuance by Administrative Agent of a written request for
payment thereof to Borrowers, or (ii) the tenth (10th) day following the issuance of
such notice; provided, that so long as no Event of Default or Default has occurred, Borrowers shall
be liable for such fees and expenses for no more than four (4) such audits in any given calendar
year.

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

     (f) Late Charges. If payments of principal (other than a final installment of principal upon
the Termination Date), interest due on the Obligations, or any other amounts due hereunder or under
the other Financing Documents are not timely made and remain overdue for a period of five (5) days,
Borrowers, without notice or demand by Administrative Agent, promptly shall pay to Administrative
Agent, for the benefit of the Lenders, as additional compensation to Administrative Agent in
administering the Obligations, an amount equal to five percent (5.0%) of each delinquent payment.

     (g) Computation of Interest and Related Fees. All interest and fees under each Financing
Document shall be calculated on the basis of a 360-day year for the actual number of days elapsed.
The date of funding of a Loan shall be included in the calculation of interest. The date of
payment of a Loan shall be excluded from the calculation of interest. If a Loan is repaid on the
same day that it is made, one (1) day’s interest shall be charged.

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

     Section 2.3 Notes. The portion of the Loans made by each Lender shall be evidenced, if so
requested by such Lender, by one or more promissory notes executed by Borrowers on a joint and
several basis (each, a “Note”) in an original principal amount equal to such Lender’s Term Loan
Commitment.

     Section 2.4 Reserved.

     Section 2.5 Reserved.

     Section 2.6 General Provisions Regarding Payment; Loan Account.

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

     (b) Administrative Agent shall maintain a loan account (the “Loan Account”) on its books to
record Loans and other extensions of credit made by the Lenders hereunder or under any other
Financing Document, and all payments thereon made by each Borrower. All entries in the Loan
Account shall be made in accordance with Administrative Agent’s customary accounting practices as
in effect from time to time. The balance in the Loan Account, as recorded in Administrative
Agent’s books and records at any time shall be conclusive and binding evidence of the amounts due
and owing to Administrative Agent by each Borrower absent manifest error; provided, however, that
any failure to so record or any error in so recording shall not limit or otherwise affect any
Borrower’s duty to pay all amounts owing hereunder or under any other Financing Document.
Administrative Agent shall endeavor to provide Borrowers with a monthly statement regarding the
Loan Account (but neither Administrative Agent nor any Lender shall have any liability if
Administrative Agent shall fail to provide any such statement). Unless any Borrower notifies
Administrative Agent of any objection to any such statement (specifically describing the basis for
such objection) within ninety (90) days after the date of receipt thereof, it shall be deemed
final, binding and conclusive upon Borrowers in all respects as to all matters reflected therein,
absent manifest error.

     Section 2.7 Maximum Interest. In no event shall the interest charged with respect to the
Loans or any other Obligations of any Borrower under any Financing Document exceed the maximum
amount permitted under the laws of the State of Illinois or of any other applicable jurisdiction.
Notwithstanding anything to the contrary herein or elsewhere, if at any time the rate of interest
payable hereunder or under any Note or other Financing Document (the “Stated Rate”) would exceed
the highest rate of interest permitted under any applicable law to be charged (the “Maximum Lawful
Rate”), then for so long as the Maximum Lawful Rate would be so exceeded, the rate of interest
payable shall be equal to the Maximum Lawful Rate; provided, however, that if at any time
thereafter the Stated Rate is less than the Maximum Lawful Rate, each Borrower shall, to the extent
permitted by law, continue to pay interest at the Maximum Lawful Rate until such time as the total
interest received is equal to the total interest which would have been received had the Stated Rate
been (but for the operation of this provision) the interest rate payable. Thereafter, the interest
rate payable shall be the Stated Rate unless and until the Stated Rate again would exceed the
Maximum Lawful Rate, in which event this provision shall again apply. In no event shall the total
interest received by any Lender exceed the amount which it could lawfully have received had the
interest been calculated for the full term hereof at the Maximum Lawful Rate. If, notwithstanding
the prior sentence, any Lender has received interest hereunder in excess of the Maximum Lawful
Rate, such excess amount shall be applied to the reduction of the principal balance of the Loans or
to other amounts (other than interest) payable hereunder, and if no such principal or other amounts
are then outstanding, such excess or part thereof remaining shall be paid to Borrowers. Any such
reduction in the principal balance shall be applied to the Obligations owing to Lenders in
accordance with the Pro Rata Share of each Lender. In computing interest payable with reference to
the Maximum Lawful Rate applicable to any Lender, such interest shall be calculated at a daily rate
equal to the Maximum Lawful Rate divided by the number of days in the year in which such
calculation is made.

Section 2.8 Taxes; Capital Adequacy.

     (a) All payments of principal and interest on the Loans and all other amounts payable
hereunder shall be made free and clear of and without deduction for any present or future income,
excise, stamp, documentary, payroll, employment, property or franchise taxes and other taxes, fees,
duties, levies, assessments, withholdings or other charges of any nature whatsoever (including
interest and penalties thereon) imposed by any taxing authority, excluding taxes imposed on or
measured by Administrative Agent’s or any Lender’s net income by the jurisdictions

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under which Administrative Agent or such Lender is organized or conducts business (other than
solely as the result of entering into any of the Financing Documents or taking any action
thereunder) (all non-excluded items being called “Taxes”). If any withholding or deduction from
any payment to be made by any Borrower hereunder is required in respect of any Taxes pursuant to
any applicable Law, then Borrowers will: (i) pay directly to the relevant authority the full
amount required to be so withheld or deducted; (ii) promptly forward to Administrative Agent (with
a copy to the applicable Lender) an official receipt or other documentation satisfactory to
Administrative Agent evidencing such payment to such authority; and (iii) pay to Administrative
Agent (and such applicable Lender) for the account of Administrative Agent and Lenders such
additional amount or amounts as is necessary to ensure that the net amount actually received by
Administrative Agent and each Lender will equal the full amount Administrative Agent and such
Lender would have received had no such withholding or deduction been required. If any Taxes are
directly asserted against Administrative Agent or any Lender with respect to any payment received
by Administrative Agent or such Lender hereunder, Administrative Agent or such Lender may pay such
Taxes and Borrowers will promptly pay such additional amounts (including any penalty, interest or
expense) as is necessary in order that the net amount received by such Person after the payment of
such Taxes (including any Taxes on such additional amount) shall equal the amount such Person would
have received had such Taxes not been asserted so long as such amounts have accrued on or after the
day which is two hundred seventy (270) days prior to the date on which Administrative Agent or such
Lender first made written demand therefor.

     (b) If any Borrower fails to pay any Taxes when due to the appropriate taxing authority or
fails to remit to Administrative Agent, for the account of Administrative Agent and the respective
Lenders, the required receipts or other required documentary evidence, Borrowers shall indemnify
Administrative Agent and Lenders for any incremental Taxes, interest or penalties that may become
payable by Administrative Agent or any Lender as a result of any such failure.

     (c) Each Lender that (i) is organized or incorporated under the laws of a jurisdiction other
than the United States, and (ii)(A) is a party hereto on the Closing Date or (B) purports to become
an assignee of an interest as a Lender under this Agreement after the Closing Date (unless such
Lender was already a Lender hereunder immediately prior to such assignment) (each such Lender a
“Foreign Lender”) shall execute and deliver to each of Borrowers and Administrative Agent one or
more (as Borrowers or Administrative Agent may reasonably request) United States Internal Revenue
Service Forms W-8ECI, W-8BEN, W-8IMY (as applicable) and other applicable forms, certificates or
documents prescribed by the United States Internal Revenue Service or reasonably requested by
Administrative Agent certifying as to such Lender’s entitlement to a complete exemption from
withholding or deduction of Taxes. Borrowers shall not be required to pay additional amounts to
any Lender pursuant to this Section 2.8 with respect to United States withholding and income Taxes
to the extent that the obligation to pay such additional amounts would not have arisen but for the
failure of such Lender to comply with this paragraph other than as a result of a change in law.

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

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     (e) If any Lender requires compensation under Section 2.8(d), or requires any Borrower to pay
any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.8(a), then, upon the written request of Borrower Representative, such Lender
shall use reasonable efforts to designate a different lending office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder (subject to the terms of this
Agreement) to another of its offices, branches or affiliates, if, in the judgment of such Lender,
such designation or assignment (i) would eliminate or materially reduce amounts payable pursuant to
any such subsection, as the case may be, in the future, and (ii) would not subject such Lender to
any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender (as
determined in its sole discretion). Borrowers hereby agree to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

     Section 2.9 Appointment of Borrower Representative. Each Borrower hereby designates Borrower
Representative as its representative and agent on its behalf for the purposes of issuing Notices of
Borrowing, and giving instructions with respect to the disbursement of the proceeds of the Loans,
giving and receiving all other notices and consents hereunder or under any of the other Financing
Documents and taking all other actions (including in respect of compliance with covenants) on
behalf of any Borrower or Borrowers under the Financing Documents. Borrower Representative hereby
accepts such appointment. Notwithstanding anything to the contrary contained in this Agreement, no
Borrower other than Borrower Representative shall be entitled to take any of the foregoing actions.
The proceeds of each Loan made hereunder shall be advanced to or at the direction of Borrower
Representative and if not used by Borrower Representative in its business (for the purposes
provided in this Agreement) shall be deemed to be immediately advanced by Borrower Representative
to the appropriate other Borrower hereunder as an intercompany loan (collectively, “Intercompany
Loans”). All proceeds of Collateral of each Borrower received by Administrative Agent and applied
to the Obligations shall be deemed to be repayments of the Intercompany Loans owing by such
Borrower to Borrower Representative. Borrowers shall maintain accurate books and records with
respect to all Intercompany Loans and all repayments thereof. Administrative Agent and each Lender
may regard any notice or other communication pursuant to any Financing Document from Borrower
Representative as a notice or communication from all Borrowers, and may give any notice or
communication required or permitted to be given to any Borrower or all Borrowers hereunder to
Borrower Representative on behalf of such Borrower or all Borrowers. Each Borrower agrees that
each notice, election, representation and warranty, covenant, agreement and undertaking made on its
behalf by Borrower Representative shall be deemed for all purposes to have been made by such
Borrower and shall be binding upon and enforceable against such Borrower to the same extent as if
the same had been made directly by such Borrower.

     Section 2.10 Joint and Several Liability. Borrowers are defined collectively to include all
Persons named as one of the Borrowers herein; provided, however, that any references herein to “any
Borrower”, “each Borrower” or similar references, shall be construed as a reference to each
individual Person named as one of the Borrowers herein. Each Person so named shall be jointly and
severally liable for all of the obligations of Borrowers under this Agreement. Each Borrower,
individually, expressly understands, agrees and acknowledges, that the credit facilities would not
be made available on the terms herein in the absence of the collective credit of all of the Persons
named as the Borrowers herein, the joint and several liability of all such Persons, and the
cross-collateralization of the collateral of all such Persons. Accordingly, each Borrower,
individually acknowledges that the benefit to each of the Persons named as one of the Borrowers as
a whole constitutes reasonably equivalent value, regardless of the amount of the credit facilities
actually borrowed by, advanced to, or the amount of collateral provided by, any individual
Borrower. In addition, each entity named as one of the Borrowers herein hereby acknowledges and
agrees that all of the representations, warranties, covenants, obligations, conditions, agreements
and other terms contained in this Agreement shall be applicable to and shall be binding upon and
measured and enforceable individually against each Person named as one of the Borrowers herein as
well as all such Persons when taken together. By way of illustration, but without limiting the
generality of the foregoing, the terms of Section 10.1 of this Agreement are to be applied to each
individual Person named as one of the Borrowers herein (as well as to all such Persons taken as a
whole), such that the occurrence of any of the events described in Section 10.1 of this Agreement
as to any Person named as one of the Borrowers herein shall constitute an Event of Default even if
such event has not occurred as to any other Persons named as the Borrowers or as to all such
Persons taken as a whole.

ARTICLE 3 — REPRESENTATIONS AND WARRANTIES

     To induce Administrative Agent and Lenders to enter into this Agreement and to make the Loans
and other

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credit accommodations contemplated hereby, each Borrower hereby represents and warrants to
Administrative Agent and each Lender that:

     Section 3.1 Existence and Power. Each Credit Party is an entity as specified on Schedule
3.1, is duly organized, validly existing and in good standing under the laws of the
jurisdiction specified on Schedule 3.1 and no other jurisdiction, has the same legal name
as it appears in such Credit Party’s Organizational Documents and an organizational identification
number (if any), in each case as specified on Schedule 3.1 (except to the extent of any
change in the foregoing information as to any Credit Party following the Closing Date so long as
such change was made and notice of such change was given to Administrative Agent in accordance with
Section 9.2(e)), and has all powers and all Permits necessary or desirable in the operation of its
business as presently conducted or as proposed to be conducted, except where the failure to have
such Permits could not reasonably be expected to have a Material Adverse Effect. Each Credit Party
is qualified to do business as a foreign entity in each jurisdiction in which it is required to be
so qualified, which jurisdictions as of the Closing Date are specified on Schedule 3.1,
except where the failure to be so qualified could not reasonably be expected to have a Material
Adverse Effect. Except as set forth on Schedule 3.1, no Credit Party, over the five (5)
year period preceding the Closing Date, (a) has had any name other than its current name, or (b)
was incorporated or organized under the laws of any jurisdiction other than its current
jurisdiction of incorporation or organization.

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

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

     Section 3.4 Capitalization. The authorized equity securities of each of the Credit Parties as
of the Closing Date is as set forth on Schedule 3.4. All issued and outstanding equity
securities of each of the Credit Parties are duly authorized and validly issued, fully paid and
nonassessable, are free and clear of all Liens other than those in favor of Administrative Agent
for the benefit of Administrative Agent and Lenders, and such equity securities were issued in
compliance with all applicable Laws. The identity of the holders of the equity securities of each
of the Credit Parties and the percentage of their fully-diluted ownership of the equity securities
of each of the Credit Parties as of the Closing Date is set forth on Schedule 3.4. No
shares of the capital stock or other equity securities of any Credit Party, other than those
described above, are issued and outstanding as of the Closing Date. Except as set forth on
Schedule 3.4, as of the Closing Date there are no preemptive or other outstanding rights,
options, warrants, conversion rights or similar agreements or understandings for the purchase or
acquisition from any Credit Party of any equity securities of any such entity. None of the
authorized and/or issued capital stock or other equity securities of any Credit Party are subject
to any mandatory repurchase or redemption provisions or put rights in favor of any holder thereof
(not including any repurchase or redemption provisions exercisable solely at the option of such
Credit Party) or otherwise constitute Debt under the definition set forth herein or are subject to
any provisions requiring the mandatory payment of any dividends at any time (not including any
specified dividends which accrue at specified times but which are payable only as, when and if
declared by the board of directors or other similar governance body or manager or partner of such
Credit Party and/or upon liquidation of such Credit Party).

     Section 3.5 Financial Information. All information delivered to Administrative Agent and
pertaining to the financial condition of any Credit Party fairly presents the financial position of
such Credit Party as of such date in conformity with GAAP (and as to unaudited financial
statements, subject to normal year-end adjustments and the absence of footnote disclosures). Since
December 31, 2006, there has been no material adverse

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change in the business, operations, properties, prospects or condition (financial or
otherwise) of any Credit Party.

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

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

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

     Section 3.9 Labor Matters. As of the Closing Date, there are no strikes or other labor
disputes pending or, to any Borrower’s knowledge, threatened against any Credit Party. Hours
worked and payments made to the employees of the Credit Parties have not been in violation of the
Fair Labor Standards Act or any other applicable Law dealing with such matters. All payments due
from the Credit Parties, or for which any claim may be made against any of them, on account of
wages and employee and retiree health and welfare insurance and other benefits have been paid or
accrued as a liability on their books, as the case may be. The consummation of the transactions
contemplated by the Financing Documents will not give rise to a right of termination or right of
renegotiation on the part of any union under any collective bargaining agreement to which it is a
party or by which it is bound.

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

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

     Section 3.12 Compliance With Laws; Anti-Terrorism Laws.

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

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

     Section 3.13 Taxes. All federal, state and local tax returns, reports and statements required
to be filed by or on behalf of each Credit Party have been filed with the appropriate Governmental
Authorities in all

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

     Section 3.14 Compliance with ERISA.

     (a) Each ERISA Plan (and the related trusts and funding agreements) complies in form and in
operation with, has been administered in compliance with, and the terms of each ERISA Plan satisfy,
the applicable requirements of ERISA and the Code in all material respects. Each ERISA Plan which
is intended to be qualified under Section 401(a) of the Code is so qualified, and the United States
Internal Revenue Service has issued a favorable determination letter with respect to each such
ERISA Plan which may be relied on currently. No Credit Party has incurred liability for any
material excise tax under any of Sections 4971 through 5000 of the Code.

     (b) During the thirty-six (36) month period prior to the Closing Date or the making of any
Loan, (i) no steps have been taken to terminate any Pension Plan and (ii) no contribution failure
has occurred with respect to any Pension Plan sufficient to give rise to a Lien under Section
302(f) of ERISA. No condition exists or event or transaction has occurred with respect to any
Pension Plan which could result in the incurrence by any Credit Party of any material liability,
fine or penalty. No Credit Party has incurred liability to the PBGC (other than for current
premiums) with respect to any employee Pension Plan. All contributions (if any) have been made on
a timely basis to any Multiemployer Plan that are required to be made by any Credit Party or any
other member of the Controlled Group under the terms of the plan or of any collective bargaining
agreement or by applicable Law; no Credit Party nor any member of the Controlled Group has
withdrawn or partially withdrawn from any Multiemployer Plan, incurred any withdrawal liability
with respect to any such plan or received notice of any claim or demand for withdrawal liability or
partial withdrawal liability from any such plan, and no condition has occurred which, if continued,
could result in a withdrawal or partial withdrawal from any such plan, and no Credit Party nor any
member of the Controlled Group has received any notice that any Multiemployer Plan is in
reorganization, that increased contributions may be required to avoid a reduction in plan benefits
or the imposition of any excise tax, that any such plan is or has been funded at a rate less than
that required under Section 412 of the Code, that any such plan is or may be terminated, or that
any such plan is or may become insolvent.

     Section 3.15 Consummation of Financing Documents; Brokers. Except as set forth on
Schedule 3.15, and except for fees payable to Administrative Agent and/or Lenders, no
broker, finder or other intermediary has brought about the obtaining, making or closing of the
transactions contemplated by the Financing Documents, and no Credit Party has or will have any
obligation to any Person in respect of any finder’s or brokerage fees, commissions or other
expenses in connection herewith or therewith. All brokerage and finder’s fees, commissions and
other expenses payable in connection with the transactions contemplated by the Financing Documents
have been paid in full by Borrowers contemporaneously with the execution of the Financing Documents
and the initial funding of the Loan.

     Section 3.16 Related Transactions. All transactions contemplated by the Financing Documents
to be consummated on or prior to the date hereof have been so consummated (including, without
limitation, the disbursement and transfer of all funds in connection therewith) in all material
respects pursuant to the provisions of the applicable Financing Documents, true and complete copies
of which have been delivered to Administrative Agent, and in compliance with all applicable Law,
except for such Laws the noncompliance with which would not reasonably be expected to have a
Material Adverse Effect.

     Section 3.17 Material Contracts. Except for the Financing Documents and the other agreements
set forth on Schedule 3.17 (collectively with the Financing Documents, the “Material
Contracts”), as of the Closing Date there are no (a) employment agreements covering the management
of any Credit Party, (b) collective bargaining agreements or other similar labor agreements
covering any employees of any Credit Party, (c) agreements for managerial, consulting or similar
services to which any Credit Party is a party or by which it is

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bound, (d) agreements regarding any Credit Party, its assets or operations or any investment
therein to which any of its equityholders is a party or by which it is bound, (e) real estate
leases, Intellectual Property licenses or other lease or license agreements to which any Credit
Party is a party, either as lessor or lessee, or as licensor and licensee (other than licenses
arising from the purchase of “off the shelf” products), or (f) customer, distribution, marketing or
supply agreements to which any Credit Party is a party, in each case with respect to the preceding
clauses (a), (c), (d), (e) and (f) requiring payment of more than One Hundred Thousand Dollars
($100,000) in any year, (g) partnership agreements to which any Credit Party is a general partner
or joint venture agreements to which any Credit Party is a party, (h) third party billing
arrangements to which any Credit Party is a party, or (i) any other agreements or instruments to
which any Credit Party is a party, and the breach, nonperformance or cancellation of which, or the
failure of which to renew, could reasonably be expected to have a Material Adverse Effect.
Schedule 3.17 sets forth, with respect to each real estate lease agreement to which any
Borrower is a party (as a lessee) as of the Closing Date, the address of the subject property, the
name and address of the landlord and the annual rental (or, where applicable, a general description
of the method of computing the annual rental). The consummation of the transactions contemplated
by the Financing Documents will not give rise to a right of termination in favor of any party to
any Material Contract (other than any Credit Party). All Material Contracts may be terminated by
Borrower upon ninety (90) days or sooner.

     Section 3.18 Compliance with Environmental Requirements; No Hazardous Materials.

     Except in each case as set forth on Schedule 3.18:

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

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

For purposes of this Section 3.18, each Credit Party shall be deemed to include any business or
business entity (including a corporation) that is, in whole or in part, a predecessor of such
Credit Party.

     Section 3.19 Intellectual Property. Each Credit Party owns, is licensed to use or otherwise
has the right to use, all Intellectual Property that is material to the condition (financial or
other), business or operations of such Credit Party. All Intellectual Property existing as of the
Closing Date and registered with any United States or foreign Governmental Authority (including
without limitation any and all applications for the registration of any Intellectual Property with
any such United States or foreign Governmental Authority) and all licenses under which any Borrower
is the licensee of any such registered Intellectual Property (or any such application for the
registration of Intellectual Property) owned by another Person are set forth on Schedule
3.19. Such Schedule 3.19 indicates in each case whether such registered Intellectual
Property (or application therefor) is owned or licensed by such Credit Party, and in the case of
any such licensed registered Intellectual Property (or application therefor), lists the name and
address of the licensor and the name and date of the agreement pursuant to which such item of
Intellectual Property is licensed and whether or not such license is an exclusive license and
indicates whether there are any purported restrictions in such license on the ability to such
Credit Party to grant a security interest in and/or to transfer any of its rights as a licensee
under such license. Except as indicated on Schedule 3.19, the applicable

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Credit Party is the sole and exclusive owner of the entire and unencumbered right, title and
interest in and to each such registered Intellectual Property (or application therefor) purported
to be owned by such Borrower, free and clear of any Liens and/or licenses in favor of third parties
or agreements or covenants not such sue third parties for infringement. All Intellectual Property
of each Credit Party is fully protected and/or duly and properly registered, filed or issued in the
appropriate office and jurisdictions for such registrations, filings or issuances, except where the
failure to do so would not reasonably be expected to have a Material Adverse Effect. Borrowers are
not a party to, nor are bound by, any material license or other agreement with respect to which any
Borrower is the licensee that prohibits or otherwise restricts such Borrower from granting a
security interest in such Borrower’s interest in such license or agreement or other property. To
such Borrower’s knowledge, each Credit Party conducts its business without infringement or claim of
infringement of any Intellectual Property rights of others and there is no infringement or claim of
infringement by others of any Intellectual Property rights of any Credit Party, which infringement
or claim of infringement could reasonably be expected to have a Material Adverse Effect.

     Section 3.20 Solvency. Each Borrower and each additional Credit Party is Solvent.

     Section 3.21 Full Disclosure. None of the written information (financial or otherwise)
furnished by or on behalf of any Credit Party to Administrative Agent or any Lender in connection
with the consummation of the transactions contemplated in connection with the Financing Documents
after the Closing Date, contains any untrue statement of a material fact or omits to state a
material fact necessary to make the statements contained herein or therein not misleading in light
of the circumstances under which such statements were made. All financial projections delivered to
Administrative Agent and the Lenders by Borrowers (or their agents) have been prepared on the basis
of the assumptions stated therein. Such projections represented such Borrower’s good faith
estimate as of the date thereof of such Borrower’s future financial performance and such
assumptions were believed by such Borrower to be fair and reasonable as of the date thereof in
light of business conditions then prevailing; provided, however, that Borrowers can give no
assurance that any such projections will be attained.

     Section 3.22 Reserved.

     Section 3.23 Subsidiaries. Borrowers do not own any stock, partnership interests, limited
liability company interests or other equity securities except for Permitted Investments.

ARTICLE 4 — AFFIRMATIVE COVENANTS

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

     Section 4.1 Financial Statements and Other Reports. Each Borrower will deliver to
Administrative Agent: (1) as soon as available, but no later than thirty (30) days after the last
day of each month, a company prepared consolidated balance sheet, cash flow and income statement
covering Borrower’s consolidated operations during the period, prepared under GAAP, consistently
applied, certified by a Responsible Officer and in a form acceptable to Administrative Agent;
provided, however, that in the event that Borrower becomes subject to the reporting requirements
under the Securities Exchange Act of 1934, as amended, Borrower shall provide such financial
statements within forty-five (45) days after the last day of each fiscal quarter rather than within
thirty (30) days of the last day of each month; (2) as soon as available, but no later than ninety
(90) days after the last day of Borrower’s fiscal year, audited consolidated financial statements
prepared under GAAP, consistently applied, together with an unqualified opinion on the financial
statements from an independent certified public accounting firm acceptable to Administrative Agent
in its reasonable discretion, (3) within five (5) days of delivery or filing thereof, copies of all
statements, reports and notices made available to Borrower’s security holders or to any holders of
Subordinated Debt and copies of all reports and other filings made by Borrower with any stock
exchange on which any securities of any Borrower are traded and/or the SEC (which, at all times
that Borrower is subject to the reporting requirements under the Securities Exchange Act of 1934,
shall be in lieu of the financial statements required pursuant to clause (1) above); (4) a prompt
report of any legal actions pending or threatened against any Borrower or any of its Subsidiaries
that could result in damages or costs to any Borrower or any of its Subsidiaries of Five Hundred
Thousand Dollars ($500,000) or more; (5) prompt written notice of an event that materially and
adversely affects the value of any Intellectual Property; and (6) budgets, sales projections,
operating plans and other financial information and information, reports or statements regarding
the Borrowers, their business and the Collateral as Administrative Agent may from time to time
reasonably request. Each Borrower will, in conjunction

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with the delivery of each set of financial statements required under clause (l) above, deliver
to Administrative Agent, a duly completed Compliance Certificate signed by a Responsible Officer.
Promptly upon their becoming available, Borrowers shall deliver to Administrative Agent copies of
all Swap Contracts to which any Borrower is a party. Promptly upon Administrative Agent’s receipt
of any of the foregoing in this Section 4.1, Administrative Agent shall deliver a copy to each
Lender.

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

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

     Section 4.4 Maintenance of Property; Insurance.

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

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

     (c) Each Borrower will maintain (i) all insurance described on Schedule 4.4, upon the
terms and with the coverages and rights in favor of Administrative Agent and Lenders as described
in Schedule 4.4, and (ii) such other insurance coverage in such amounts and with respect to
such risks as Administrative Agent may reasonably from time to time request; provided, however,
that, in no event shall such insurance be in amounts or with coverage less than, or with carriers
with qualifications inferior to, any of the insurance or carriers in existence as of the Closing
Date (or required to be in existence after the Closing Date under a Financing Document), as
evidenced by the insurance certificates attached hereto as Schedule 4.4. All such
insurance shall be provided by insurers having an A.M. Best policyholders rating reasonably
acceptable to Administrative Agent. Notwithstanding the foregoing, Borrowers shall not be required
to maintain such insurance for Collateral that the applicable Borrower determines in good faith is
no longer used or useful in the business of such Borrower.

     (d) On or prior to the Closing Date, and at all times thereafter, each Borrower will
cause Administrative Agent, for the benefit of Lenders, to be named as an additional insured,
assignee and loss payee (which shall include, as applicable, identification as mortgagee), as
applicable, on each insurance policy required to be maintained pursuant to this Section 4.4
pursuant to endorsements in form and content acceptable to Administrative Agent. Borrowers
will deliver to Administrative Agent and the Lenders (i) on the Closing Date, a certificate from
Borrowers’ insurance broker dated such date showing the amount of coverage as of such date, and
that such policies will include effective waivers (whether under the terms of any such policy or
otherwise) by the insurer of all claims for insurance premiums against all loss payees and
additional insureds and all rights of subrogation against all loss payees and additional insureds,
and that if
all or any part of such policy is canceled, terminated or expires, the insurer will forthwith
give notice thereof to each additional insured, assignee and loss payee and that no cancellation,
reduction in amount or material change in coverage thereof shall be effective until at least thirty
(30) days after receipt by each additional insured, assignee and loss payee of written notice
thereof,

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(ii) upon the request of any Lender through Administrative Agent from time to time full
information as to the insurance carried, (iii) within five (5) days of receipt of notice from any
insurer, a copy of any notice of cancellation, nonrenewal or material change in coverage from that
existing on the date of this Agreement, and (iv) forthwith, notice of any cancellation or
nonrenewal of coverage by any Borrower.

     (e) In the event any Borrower (i) fails to maintain the insurance coverage required by this
Agreement, or (ii) fails to provide Administrative Agent with evidence of the insurance coverage
required by this Agreement and such failure to provide evidence continues for five (5) Business
Days, Administrative Agent may (but shall have no obligation to) purchase insurance at Borrowers’
expense to protect Administrative Agent’s and each Lender’s interests in the Collateral and to
protect Administrative Agent and Lenders from liability claims relating to the Borrowers’
operations, and the costs and expenses of Administrative Agent in obtaining and paying the premiums
on any such insurance shall constitute part of the Obligations for which the Borrowers are jointly
and severally liable hereunder and which are secured by the Collateral.

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

     Section 4.6 Inspection of Property, Books and Records. Each Borrower will keep proper books
of record substantially in accordance with GAAP in which full, true and correct entries shall be
made of all dealings and transactions in relation to its business and activities; and will permit
at the sole cost of Borrowers (subject, however, to any limitations set forth in Section 2.2(d)),
representatives of Administrative Agent and of any Lender (but at such Lender’s expense unless such
visit or inspection is made concurrently with Administrative Agent) to visit and inspect any of
their respective properties, to examine and make abstracts or copies from any of their respective
books and records, to conduct a collateral audit and analysis of their respective operations and
the Collateral, to verify the amount and age of the Accounts, the identity and credit of the
respective Account Debtors, to review the billing practices of Borrower and to discuss their
respective affairs, finances and accounts with their respective officers, employees and independent
public accountants as often as may reasonably be desired. In the absence of an Event of Default,
Administrative Agent or any Lender exercising any rights pursuant to this Section 4.6 shall give
the applicable Borrower or any applicable Subsidiary commercially reasonable prior notice of such
exercise. No notice shall be required during the existence and continuance of any Event of Default
or any time during which Administrative Agent reasonably believes an Event of Default exists.

     Section 4.7 Use of Proceeds. Borrowers shall use the proceeds of the Term Loan solely for
payment of the refinancing on the Closing Date of Debt owed to Oxford Finance Corporation and for
working capital needs and general corporate purposes. No portion of the proceeds of the Loans will
be used for family, personal, agricultural or household use.

     Section 4.8 Estoppel Certificates. After written request by Administrative Agent, and not
more than four (4) times during any twelve-month period unless an Event of Default has occurred and
is continuing, Borrowers will within fifteen (15) days and at their expense furnish Administrative
Agent with a statement, duly acknowledged and certified (the “Estoppel Certificate”), setting forth
(a) the amount of the original principal amount of the Notes, and the unpaid principal amount of
the Notes, (b) the rate of interest of the Notes, (c) the date payments of interest and/or
principal were last paid, (d) any offsets or defenses to the payment of the Obligations, and if any
are alleged, the nature thereof, (e) that the Notes and this Agreement have not been modified or if
modified, giving particulars of such modification, and (f) that there has occurred and is then
continuing no Default or Event of Default or if such Default or Event of Default exists, the nature
thereof, the period of time it has existed, and the action being taken to remedy such Default or
Event of Default.

     Section 4.9 Notices of Litigation and Defaults.

     (a) Borrowers will give prompt written notice to Administrative Agent of any litigation or
governmental proceedings pending or threatened (in writing) against Borrowers or other Credit Party
which would reasonably be expected to have a Material Adverse Effect with respect to Borrowers or
any other Credit Party.

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     (b) Without limiting or contradicting any other more specific provision of this Agreement,
promptly (and in any event within three (3) Business Days) upon any Borrower becoming aware of the
existence of any Default or Event of Default, Borrowers shall give written notice to Administrative
Agent of such occurrence, which such notice shall include a reasonably detailed description of such
Default or Event of Default.

     Section 4.10 Hazardous Materials; Remediation.

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

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

     Section 4.11 Further Assurances.

     (a) Each Borrower will, at its own cost and expense, cause to be promptly and duly taken,
executed, acknowledged and delivered all such further acts, documents and assurances as may from
time to time be necessary or as Administrative Agent or the Required Lenders may from time to time
reasonably request in order to carry out the intent and purposes of the Financing Documents and the
transactions contemplated thereby, including all such actions to (i) establish, create, preserve,
protect and perfect a first priority Lien (subject only to Permitted Liens) in favor of
Administrative Agent for the benefit of the Lenders on the Collateral (including Collateral
acquired after the date hereof), and (ii) unless Required Lenders shall agree otherwise in writing,
cause all Domestic Subsidiaries of Borrowers to be jointly and severally obligated with the other
Borrowers under all covenants and obligations under this Agreement, including the obligation to
repay the Obligations. Without limiting the generality of the foregoing, at the request of
Administrative Agent or the Required Lenders, following the disclosure by Borrowers on any
Compliance Certificate of the acquisition by any Credit Party of any rights under a license as a
licensee with respect to any registered Intellectual Property or application for the registration
of any Intellectual Property owned by another Person, Borrowers shall execute any documents
requested by Administrative Agent or the Required Lenders to establish, create, preserve, protect
and perfect a first priority lien in favor of Administrative Agent, to the extent legally possible,
in such Borrower’s rights under such license and shall use their commercially reasonable best
efforts to obtain the written consent of the licensor to the granting in favor of Administrative
Agent of a Lien on such Borrower’s rights as licensee under such license.

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

     (c) Upon the formation or acquisition of a new Subsidiary, Borrowers shall (i) pledge, have
pledged or cause or have caused to be pledged to Administrative Agent pursuant to a pledge
agreement in form and substance satisfactory to Administrative Agent, (A) all of the outstanding
equity interests of each new Domestic Subsidiary owned directly or indirectly by any Borrower and
(B) 65% of the outstanding equity interests of each

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new Foreign Subsidiary owned directly by any Borrower or by any Domestic Subsidiary of any
Borrower, in each case, along with undated stock or equivalent powers for such equity interests,
executed in blank; (ii) unless the Required Lenders shall agree otherwise in writing, cause the new
Domestic Subsidiary to take such other actions (including entering into or joining any Security
Documents) as are necessary or advisable in the reasonable opinion of the Administrative Agent or
the Required Lenders in order to grant the Administrative Agent, acting on behalf of the Lenders, a
first priority Lien to secure the Obligations of all Credit Parties on all real and personal
property and leasehold estates of such Subsidiary in existence as of such date and in all after
acquired property, which first priority Liens are required to be granted pursuant to this
Agreement; (iii) unless the Required Lenders shall agree otherwise in writing, cause such new
Domestic Subsidiary to either (at the election of the Required Lenders) become a Borrower hereunder
with joint and several liability for all obligations of Borrowers hereunder and under the other
Financing Documents pursuant to a joinder agreement or other similar agreement in form and
substance satisfactory to Administrative Agent or to become a Guarantor of the obligations of
Borrowers hereunder and under the other Financing Documents pursuant to a guaranty and suretyship
agreement in form and substance satisfactory to Administrative Agent; and (iv) cause each new
Subsidiary to deliver certified copies of such Subsidiary’s certificate or articles of
incorporation, together with good standing certificates, by-laws (or other operating agreement or
governing documents), resolutions of the Board of Directors or other governing body, approving and
authorizing the execution and delivery of the Security Documents, incumbency certificates and to
execute and/or deliver such other documents and legal opinions or to take such other actions as may
be requested by the Administrative Agent or the Required Lenders, in each case, in form and
substance satisfactory to the Administrative Agent or the Required Lenders.

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

     Section 4.12 Updates of Representations. Borrowers shall deliver to Administrative Agent
within 10 (10) days of the written request of Administrative Agent an Officer’s Certificate
updating all of the representations and warranties contained in this Agreement and the other
Financing Documents and certifying that all of the representations and warranties contained in this
Agreement and the other Financing Documents, as updated pursuant to such Officer’s Certificate, are
true, accurate and complete as of the date of such Officer’s Certificate.

     Section 4.13 Power of Attorney. Each of the officers of Administrative Agent is hereby
irrevocably made, constituted and appointed the true and lawful attorney for Borrowers (without
requiring any of them to act as such) with full power of substitution to do the following: (a)
endorse the name of Borrowers upon any and all checks, drafts, money orders, and other instruments
for the payment of money that are payable to Borrowers and constitute collections on Borrowers’
Accounts; (b) so long as Administrative Agent has provided not less than three (3) Business Days’
prior written notice to Borrowers to perform the same and Borrowers have failed to take such
action, execute in the name of Borrowers any schedules, assignments, instruments, documents, and
statements that Borrowers are obligated to give Administrative Agent under this Agreement; (c)
after the occurrence and during the continuance of a Default, take any action Borrowers are
required to take under this Agreement; (d) so long as Administrative Agent has provided not less
than three (3) Business Days’ prior written notice to Borrowers to perform the same and Borrowers
have failed to take such action, do such other and further acts and deeds in the name of Borrowers
that Administrative Agent may deem necessary or desirable to enforce any Account or other
Collateral or perfect Administrative Agent’s security interest or Lien in any Collateral; and (e)
after the occurrence and during the continuance of an Event of Default, do such other and further
acts and deeds in the name of Borrowers that Administrative Agent may deem necessary or desirable
to enforce its rights with regard to any Account or other Collateral. This power of attorney shall
be irrevocable and coupled with an interest.

     Section 4.14 Collateral Administration.

     (a) All data and other information relating to Accounts or other intangible Collateral shall
at all times be kept by Borrowers at their respective principal and/or chief executive offices and
shall not be moved from such

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locations without (i) providing prior written notice to Administrative Agent, and (ii)
obtaining the prior written consent of Administrative Agent, which consent shall not be
unreasonably withheld.

     (b) Administrative Agent reserves the right to notify Account Debtors that Administrative
Agent has been granted a Lien upon all Accounts.

     (c) Borrowers will conduct a physical count of the Inventory at least once per year, and at
such other times as Administrative Agent requests, and Borrowers shall provide to Administrative
Agent a written accounting of such physical count in form and substance satisfactory to
Administrative Agent. Borrowers will use commercially reasonable efforts to at all times keep its
Inventory in good and marketable condition.

ARTICLE 5 — NEGATIVE COVENANTS

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

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

     Section 5.2 Liens. No Borrower will, or will permit any Subsidiary to, directly or
indirectly, create, assume or suffer to exist any Lien on any asset now owned or hereafter acquired
by it, except for Permitted Liens. Without limiting the generality of the foregoing, no Borrower
will, or will permit any Subsidiary to, directly or indirectly, create, assume or suffer to exist
any Lien on any of its or their Intellectual Property, except for Permitted Liens.

     Section 5.3 Restricted Distributions. No Borrower will, or will permit any Subsidiary to,
directly or indirectly, declare, order, pay, make or set apart any sum for any Restricted
Distribution; provided, however, that the following Restricted Distributions may be paid: (a) at
any time, dividends may be paid by any Subsidiary of any Borrower to such parent Borrower (and/or
to any intermediate Subsidiary who is also a Borrower); (b) any Borrower may pay dividends solely
in common stock; and (c) Borrower may repurchase the stock of former employees, directors or
consultants pursuant to stock repurchase agreements so long as an Event of Default does not exist
at the time of such repurchase and would not exist after giving effect to such repurchase, provided
that such repurchase does not exceed One Hundred Thousand Dollars ($100,000) in the aggregate per
fiscal year.

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

     Section 5.5 Payments and Modifications of Subordinated Debt. No Borrower will, or will permit
any Subsidiary to, directly or indirectly, (a) declare, pay, make or set aside any amount for
payment in respect of Subordinated Debt unless permitted pursuant to the applicable Subordination
Agreement or (b) amend or otherwise modify the terms of any Subordinated Debt if the effect of such
amendment or modification is to (i) increase the interest rate or fees on, or change the manner or
timing of payment of, such Subordinated Debt; (ii) change the dates upon which payments of
principal or interest are due on, or the principal amount of, such Subordinated Debt; (iii) change
any event of default or add or make more restrictive any covenant with respect to such Subordinated
Debt; (iv) change the prepayment provisions of such Subordinated Debt or any of the defined terms
related thereto;

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(v) change the subordination provisions thereof (or the subordination terms of any Guarantee
thereof); (vi) change or amend any other term if such change or amendment would materially increase
the obligations of the obligor or confer additional material rights on the holder of such
Subordinated Debt in a manner adverse to any Borrower, any Subsidiaries, Administrative Agent or
Lenders; or (viii) otherwise conflict with the terms of or be prohibited under the terms of any
Subordination Agreement applicable thereto. Each Borrower shall, prior to entering into any such
amendment or modification, deliver to Administrative Agent reasonably in advance of the execution
thereof, any final or execution form copy thereof and, if approval of Required Lenders is required
by the terms of this Agreement prior to the taking of any such action, such Borrower agrees not to
take, nor permit any of its Subsidiaries to take, any such action with respect to any such items
without obtaining such approval from Required Lenders.

     Section 5.6 Consolidations, Mergers and Sales of Assets; Change in Control. No Borrower will,
or will permit any Subsidiary to, directly or indirectly (a) consolidate or merge or amalgamate
with or into any other Person, other than Permitted Mergers, or (b) consummate any Asset
Dispositions other than Permitted Asset Dispositions. No Borrower will suffer or permit to occur
any Change in Control with respect to itself, any Subsidiary or any Guarantor other than Permitted
Transfers with respect to such Persons.

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

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

     Section 5.9 Modification of Organizational Documents. No Borrower will, or will permit any
Subsidiary to, directly or indirectly, amend or otherwise modify any Organizational Documents of
such Person, except for Permitted Modifications. Without limiting the generality of the provisions
of Section 5.1, no Borrower will, or will permit any Subsidiary to, authorize and/or issue any
capital stock or other equity securities which are subject to any mandatory repurchase or
redemption provisions or put rights in favor of any holder thereof (not including any repurchase or
redemption provisions exercisable solely at the option of such Borrower or Subsidiary) or otherwise
constitute Debt under the definition set forth herein or are subject to any provisions requiring
the mandatory payment of any dividends at any time (not including any specified dividends which
accrue at specified times but which are payable only as, when and if declared by the board of
directors or other similar governance body or manager or partner of such Borrower or Subsidiary
and/or upon liquidation of such Borrower or Subsidiary).

     Section 5.10 Reserved.

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

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

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

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     Section 5.14 Deposit Accounts and Securities Accounts. Schedule 5.14 lists all of the
Deposit Accounts and Securities Accounts of each Borrower as of the Closing Date. No Borrower
will, or will permit any Subsidiary to, directly or indirectly, establish any new bank account,
Deposit Account or Securities Account without prior written notice to Administrative Agent and
unless Administrative Agent, such Borrower or such Subsidiary and the bank, financial institution
or securities intermediary at which the account is to be opened enter into a Deposit Account
Control Agreement or Securities Account Control Agreement prior to or concurrently with the
establishment of such bank account, Deposit Account or Securities Account.

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

     Section 5.16 Foreign Operations. Borrowers shall not, without the prior written consent of
the Required Lenders, cause or allow property of Borrowers with an aggregate value in excess of One
Hundred Fifty Thousand Dollars ($150,000) to be located at Borrowers’ locations outside of the
United States or under the possession or control of any third party outside of the United States,
including, without limitation, cash and other assets in any bank accounts, Deposit Accounts or
Securities Accounts in the Netherlands or elsewhere outside of the United States.

ARTICLE 6 — [RESERVED]

ARTICLE 7 — CONDITIONS

     Section 7.1 Conditions to Closing. The obligation of each Lender to make the Loan shall be
subject to the receipt by Administrative Agent of each agreement, document and instrument set forth
on the closing checklist prepared by Administrative Agent or its counsel, each in form and
substance satisfactory to Administrative Agent, and such other closing deliverables reasonably
requested by Administrative Agent and Lenders, and to the satisfaction of the following conditions
precedent, each to the satisfaction of Administrative Agent and Lenders and their respective
counsel in their sole discretion:

     (a) the fact that the Ithaka Merger Agreement is still in full force and effect;

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

     (c) the absence, since December 31, 2006, of any material adverse change in any aspect of the
business, operations, properties, prospects or condition (financial or otherwise) of any Credit
Party or any seller of any assets or business to be purchased by any Borrower contemporaneous with
the Closing Date, or any event or condition which could reasonably be expected to result in such a
material adverse change;

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     (d) all of Borrower’s existing Debt (other than accounts payable to third-party vendors
incurred in the ordinary course of business), including without limitation, any related party debt,
shall be fully subordinated to the Obligations pursuant to Subordination Agreements that are
requested by and satisfactory to the Administrative Agent in its sole discretion;

     (e) the receipt by Administrative Agent of the Side Letter;

     (f) the receipt by Administrative Agent of a Notice of Borrowing;

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

     (h) the receipt by Administrative Agent of a Subordination Agreement duly executed by each of
the holders of Borrower’s existing bridge loan indebtedness;

     (i) the receipt by Administrative Agent of such other documents, instruments and/or agreements
as Administrative Agent may reasonably request;

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

     (k) the fact that no adverse change in the condition (financial or otherwise), properties,
business, prospects, or operations of Borrowers or any other Credit Party shall have occurred and
be continuing with respect to Borrowers or any Credit Party since the date of this Agreement.

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

     Section 7.2 Reserved.

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

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

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ARTICLE 8 — [RESERVED]

ARTICLE 9 — SECURITY AGREEMENT

     Section 9.1 Generally. As security for the payment and performance of the Obligations, and
without limiting any other grant of a Lien and security interest in any Security Document,
Borrowers hereby assign and grant to Administrative Agent, for the benefit of Lenders, a continuing
first priority Lien (subject only to Permitted Liens) on and security interest in, upon, and to the
personal property set forth on Schedule 9.1 attached hereto and made a part hereof.

     Section 9.2 Representations and Warranties and Covenants Relating to Collateral.

     (a) Each Borrower has good title to, has rights in, and the power to transfer each item of
Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens
except Permitted Liens. Each Borrower is the sole owner of its Intellectual Property, except for
non-exclusive licenses granted to its customers in the Ordinary Course of Business. Each patent is
valid and enforceable and no part of the Intellectual Property has been judged invalid or
unenforceable, in whole or in part, and to the best of Borrowers’ knowledge, no claim has been made
that any part of the Intellectual Property violates the rights of any third party except to the
extent such claim could not reasonably be expected to have a Material Adverse Effect. Schedule
9.2 sets forth (i) each chief executive office and principal place of business of each Borrower
and each of their respective Subsidiaries and (ii) all of the addresses (including all warehouses)
at which any of the Collateral is located and/or books and records of Borrowers regarding any of
the Collateral are kept, which such Schedule 9.2 indicates in each case which Borrower(s)
have Collateral and/or books and records located at such address, and, in the case of any such
address not owned by one or more of the Borrowers(s), indicates the nature of such location (e.g.,
leased business location operated by Borrower(s), third party warehouse, consignment location,
processor location, etc.) and the name and address of the third party owning and/or operating such
location.

     (b) Without limiting the generality of Section 3.2, except as indicated on Schedule
3.19 with respect to any rights of any Borrower as a licensee under any license of Intellectual
Property owned by another Person, and except for the filing of financing statements under the UCC,
no authorization, approval or other action by, and no notice to or filing with, any Governmental
Authority or consent of any other Person is required for (i) the grant by each Borrower to
Administrative Agent of the security interests and Liens in the Collateral provided for under this
Agreement and the other Security Documents (if any), or (ii) the exercise by Administrative Agent
of its rights and remedies with respect to the Collateral provided for under this Agreement and the
other Security Documents or under any applicable Law, including the UCC and neither any such grant
of Liens in favor of Administrative Agent or exercise of rights by Administrative Agent shall
violate or cause a default under any agreement between any Borrower and any other Person relating
to any such Collateral, including any license to which a Borrower is a party, whether as licensor
or licensee, with respect to any Intellectual Property, whether owned by such Borrower or any other
Person.

     (c) As of the Closing Date, no Borrower has any ownership interest in any Chattel Paper,
Letter of Credit Rights, Commercial Tort Claims, Instruments, Documents or Investment Property
(other than equity interests in any Subsidiaries of such Borrower disclosed on Schedule
3.4), and Borrowers shall give notice to Administrative Agent promptly (but in any event not
later than the delivery by Borrowers of the next Compliance Certificate required pursuant to
Section 4.1 above) upon the acquisition by any Borrower of any such Chattel Paper, Letter of Credit
Rights, Commercial Tort Claims, Instruments, Documents or Investment Property. No Person other
than Administrative Agent or (if applicable) any Lender has “control” (as defined in Article 9 of
the UCC) over any Deposit Account, Investment Property (including Securities Accounts and
Commodities Account), Letter of Credit Rights or Electronic Chattel Paper in which any Borrower has
any interest (except for such control arising by operation of law in favor of any bank or
securities intermediary or commodities intermediary with whom any Deposit Account, Securities
Account or Commodities Account of Borrowers is maintained).

     (d) Borrowers shall not, and shall not permit any Credit Party to, take any of the following
actions or make any of the following changes unless Borrowers have given at least thirty (30) days
prior written notice to Administrative Agent of Borrowers’ intention to take any such action (which
such written notice shall include an updated version of any Schedule impacted by such change) and
have executed any and all documents, instruments

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and agreements and taken any other actions which Administrative Agent may request after
receiving such written notice in order to protect and preserve the Liens, rights and remedies of
Administrative Agent with respect to the Collateral: (i) change the legal name or organizational
identification number of any Borrower as it appears in official filings in the jurisdiction of its
organization, (ii) change the jurisdiction of incorporation or formation of any Borrower or Credit
Party or allow any Borrower or Credit Party to designate any jurisdiction as an additional
jurisdiction of incorporation for such Borrower or Credit Party, or change the type of entity that
it is, or (iii) change its chief executive office, principal place of business, or the location of
its records concerning the Collateral or move any Collateral to or place any Collateral on any
location that is not then listed on the Schedules and/or establish any business location at any
location that is not then listed on the Schedules.

     (e) Borrowers shall not adjust, settle or compromise the amount or payment of any Account, or
release wholly or partly any Account Debtor, or allow any credit or discount thereon (other than
adjustments, settlements, compromises, credits and discounts in the Ordinary Course of Business,
made while no Default or Event of Default exists and in amounts which are not material) without the
prior written consent of Administrative Agent. Without limiting the generality of this Agreement
or any other provisions of any of the Financing Documents relating to the rights of Administrative
Agent after the occurrence and during the continuance of an Event of Default, Administrative Agent
shall have the right at any time after the occurrence and during the continuance of an Event of
Default (acting upon the direction of the Required Lenders) to: (i) exercise the rights of
Borrowers with respect to the obligation of any Account Debtor to make payment or otherwise render
performance to Borrowers and with respect to any property that secures the obligations of any
Account Debtor or any other Person obligated on the Collateral, and (ii) adjust, settle or
compromise the amount or payment of such Accounts.

     (f) Without limiting the generality of Sections 9.2(c) and 9.2(e):

          (i) Borrowers shall deliver to Administrative Agent all Tangible Chattel Paper and all
Instruments and Documents owned by any Borrower and constituting part of the Collateral duly
endorsed and accompanied by duly executed instruments of transfer or assignment, all in form and
substance satisfactory to Administrative Agent. Borrowers shall provide Administrative Agent with
“control” (as defined in Article 9 of the UCC) of all Electronic Chattel Paper owned by any
Borrower and constituting part of the Collateral by having Administrative Agent identified as the
assignee on the records pertaining to the single authoritative copy thereof and otherwise complying
with the applicable elements of control set forth in the UCC. Borrowers also shall deliver to
Administrative Agent all security agreements securing any such Chattel Paper and securing any such
Instruments. Borrowers will mark conspicuously all such Chattel Paper and all such Instruments and
Documents with a legend, in form and substance satisfactory to Administrative Agent, indicating
that such Chattel Paper and such Instruments and Documents are subject to the security interests
and Liens in favor of Administrative Agent created pursuant to this Agreement and the Security
Documents. Borrowers shall comply with all the provisions of Section 5.14 with respect to the
Deposit Accounts and Securities Accounts of Borrowers.

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

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

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          (iv) Except for Accounts and Inventory in an aggregate amount of not more than Fifty Thousand
Dollars ($50,000), no Accounts or Inventory or other Collateral shall at any time be in the
possession or control of any warehouse, consignee, bailee or any of Borrowers’ agents or processors
without prior written notice to Administrative Agent and the receipt by Administrative Agent, if
Administrative Agent has so requested, of warehouse receipts, consignment agreements or bailee lien
waivers (as applicable) satisfactory to Administrative Agent prior to the commencement of such
possession or control. Borrower has notified Administrative Agent that Inventory is currently
located at the locations set forth on Schedule 9.2. Borrowers shall, upon the request of
Administrative Agent, notify any such warehouse, consignee, bailee, agent or processor of the
security interests and Liens in favor of Administrative Agent created pursuant to this Agreement
and the Security Documents, instruct such Person to hold all such Collateral for Administrative
Agent’s account subject to Administrative Agent’s instructions and shall obtain an acknowledgement
from such Person that such Person holds the Collateral for Administrative Agent’s benefit.

          (v) Borrowers shall cause all Equipment and other tangible Personal Property (other than (A)
Equipment that the applicable Borrower determines in good faith is no longer used or useful in the
business of such Borrower and (B) Inventory) to be maintained and preserved in the same condition,
repair and in working order as when new, ordinary wear and tear excepted, and shall promptly make
or cause to be made all repairs, replacements and other improvements in connection therewith that
are necessary or desirable to such end. Upon request of Administrative Agent, Borrowers shall
promptly deliver to Administrative Agent any and all certificates of title, applications for title
or similar evidence of ownership of all such tangible Personal Property and shall cause
Administrative Agent to be named as lienholder on any such certificate of title or other evidence
of ownership. Borrowers shall not permit any such tangible Personal Property to become Fixtures to
real estate unless such real estate is subject to a Lien in favor of Administrative Agent.

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

          (vii) As of the Closing Date, no Borrower holds, and after the Closing Date Borrowers shall
promptly notify Administrative Agent in writing upon creation or acquisition by any Borrower of,
any Collateral which constitutes a claim against any Governmental Authority, including, without
limitation, the federal government of the United States or any instrumentality or agency thereof,
the assignment of which claim is restricted by any applicable Law, including, without limitation,
the federal Assignment of Claims Act and any other comparable Law. Upon the request of
Administrative Agent, Borrowers shall take such steps as may be necessary or desirable, or that
Administrative Agent may request, to comply with any such applicable Law.

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

     Section 9.3 UCC Remedies.

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

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

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

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

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

          (v) The right to enforce Borrowers’ rights against Account Debtors and other obligors,
including, without limitation, (i) the right to collect Accounts directly in Administrative Agent’s
own name (as agent for Lenders) and to charge the collection costs and expenses, including
attorneys’ fees, to Borrowers, and (ii) the right, in the name of Administrative Agent or any
designee of Administrative Agent or Borrowers, to verify the validity, amount or any other matter
relating to any Accounts by mail, telephone, telegraph or otherwise, including, without limitation,
verification of Borrowers’ compliance with applicable Laws. Borrowers shall cooperate fully with
Administrative Agent in an effort to facilitate and promptly conclude such verification process.
Such verification may include contacts between Administrative Agent and applicable federal, state
and local regulatory authorities having jurisdiction over the Borrowers’ affairs, all of which
contacts Borrowers hereby irrevocably authorize.

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

     (c) Without restricting the generality of the foregoing and for the purposes aforesaid, each
Borrower hereby appoints and constitutes Administrative Agent its lawful attorney-in-fact with full
power of substitution in the Collateral, upon the occurrence and during the continuance of a
Default, to use unadvanced funds remaining under this Agreement or which may be reserved, escrowed
or set aside for any purposes hereunder at any time, or to advance funds in excess of the face
amount of the Notes, to pay, settle or compromise all existing bills and claims, which may be Liens
or security interests, or to avoid such bills and claims becoming Liens against the Collateral; to

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execute all applications and certificates in the name of such Borrower and to prosecute and
defend all actions or proceedings in connection with the Collateral; and to do any and every act
which such Borrower might do in its own behalf; it being understood and agreed that this power of
attorney shall be a power coupled with an interest and cannot be revoked.

     (d) Administrative Agent and each Lender is hereby granted an irrevocable, non-exclusive,
royalty-free license or other right to use, without charge, Borrowers’ labels, mask works, rights
of use of any name, any other Intellectual Property and advertising matter, and any similar
property as it pertains to the Collateral, in completing production of, advertising for sale, and
selling any Collateral and, in connection with Administrative Agent’s exercise of its rights under
this Article, Borrowers’ rights under all licenses and all franchise agreements inure to
Administrative Agent’s and each Lender‘s benefit.

ARTICLE 10 — EVENTS OF DEFAULT

     Section 10.1 Events of Default.

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

     (a) any Borrower shall fail to pay when due any principal, interest, premium or fee under any
Financing Document or any other amount payable under any Financing Document, or there shall occur
any default in the performance of or compliance with any of the following sections of this
Agreement: Article 5 and Sections 4.1, 4.3 (solely as it relates to maintaining its existence),
4.4 and 4.6;

     (b) any Credit Party defaults in the performance of or compliance with any term contained in
this Agreement or in any other Financing Document (other than occurrences described in other
provisions of this Section 10.1 for which a different grace or cure period is specified or for
which no grace or cure period is specified and thereby constitute immediate Events of Default) and
such default is not remedied by the Credit Party or waived by the Required Lenders within thirty
(30) days; provided, however, that if the default cannot by its nature be cured within the thirty
(30) day period or cannot after diligent attempts by Borrower be cured within such thirty (30) day
period, and such default is likely to be cured within a reasonable time, then Borrower shall have
an additional period (which shall not in any case exceed ten (10) days) to attempt to cure such
default, and within such reasonable time period the failure to cure the default shall not be deemed
an Event of Default (but no Loans shall be made during such cure period);

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

     (d) (i) failure of any Credit Party to pay when due or within any applicable grace period any
principal, interest or other amount on Debt (other than the Loans) or in respect of any Swap
Contract, or the occurrence of any breach, default, condition or event with respect to any Debt
(other than the Loans) or in respect of any Swap Contract, if the effect of such failure or
occurrence is to cause or to permit the holder or holders of any such Debt, or the counterparty
under any such Swap Contract, to cause, Debt or other liabilities having an individual principal
amount in excess of Twenty-Five Thousand Dollars ($25,000) or having an aggregate principal amount
in excess of Twenty-Five Thousand Dollars ($25,000) to become or be declared due prior to its
stated maturity; or (ii) the occurrence of any breach or default under any terms or provisions of
any Subordinated Debt Document or under any agreement subordinating Debt to all or any portion of
the Obligations or the occurrence of any event requiring the prepayment of any Subordinated Debt;

     (e) any Credit Party or any Subsidiary of a Borrower shall commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the
appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall consent to any such

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relief or to the appointment of or taking possession by any such official in an involuntary
case or other proceeding commenced against it, or shall make a general assignment for the benefit
of creditors, or shall fail generally to pay its debts as they become due, or shall take any
corporate action to authorize any of the foregoing;

     (f) an involuntary case or other proceeding shall be commenced against any Credit Party or any
Subsidiary of a Borrower seeking liquidation, reorganization or other relief with respect to it or
its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
it or any substantial part of its property, and such involuntary case or other proceeding shall
remain undismissed and unstayed for a period of forty-five (45) days; or an order for relief shall
be entered against any Credit Party or any Subsidiary of a Borrower under applicable federal
bankruptcy, insolvency or other similar law in respect of (i) bankruptcy, liquidation, winding-up,
dissolution or suspension of general operations, (ii) composition, rescheduling, reorganization,
arrangement or readjustment of, or other relief from, or stay of proceedings to enforce, some or
all of the debts or obligations, or (iii) possession, foreclosure, seizure or retention, sale or
other disposition of, or other proceedings to enforce security over, all or any substantial part of
the assets of such Credit Party or Subsidiary;

     (g) (i) institution of any steps by any Person to terminate a Pension Plan if as a result of
such termination any Credit Party or any member of the Controlled Group could be required to make a
contribution to such Pension Plan, or could incur a liability or obligation to such Pension Plan,
in excess of Twenty-Five Thousand Dollars ($25,000), (ii) a contribution failure occurs with
respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA, or
(iii) there shall occur any withdrawal or partial withdrawal from a Multiemployer Plan and the
withdrawal liability (without unaccrued interest) to Multiemployer Plans as a result of such
withdrawal (including any outstanding withdrawal liability that any Credit Party or any member of
the Controlled Group have incurred on the date of such withdrawal) exceeds Twenty-Five Thousand
Dollars ($25,000);

     (h) one or more judgments or orders for the payment of money (not paid or fully covered by
insurance maintained in accordance with the requirements of this Agreement and as to which the
relevant insurance company has acknowledged coverage) aggregating in excess of Two Hundred Fifty
Thousand Dollars ($250,000) shall be rendered against any or all Credit Parties and either (i)
enforcement proceedings shall have been commenced by any creditor upon any such judgments or
orders, or (ii) there shall be any period of twenty (20) consecutive days during which a stay of
enforcement of any such judgments or orders, by reason of a pending appeal, bond or otherwise,
shall not be in effect;

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

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

     (k) a default or event of default occurs under any Guarantee of any portion of the
Obligations;

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

     (m) if any Borrower is or becomes an entity whose equity is registered with the SEC, and/or is
publicly traded on and/or registered with a public securities exchange, such Borrower’s equity
fails to remain registered with the SEC in good standing, and/or such equity fails to remain
publicly traded on and registered with a public securities exchange;

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

     (o) if any Financing Document or any material provision thereof is deemed null and void or any
Credit Party repudiates or denies in writing any portion of its liability or obligation for the
Obligations;

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     (p) if, substantially concurrent with the closing of the Ithaka Merger Transaction, the
Surviving Corporation (as defined in the Ithaka Merger Agreement) does not deliver to
Administrative Agent the duly executed Reaffirmation Agreement; or

     (q) if, substantially concurrent with the closing of the Ithaka Merger Transaction, provided
that such closing occurs on or before August 23, 2007, Parent (as defined in the Ithaka Merger
Agreement) does not deliver to Administrative Agent (a) the duly executed Ithaka Warrant, (b) an
Additional Borrower Joinder Supplement in the form attached to the Side Letter, (c) an Allonge in
the form attached to the Side Letter, (d) all control agreements required under the Side Letter,
and (e) an opinion letter of Parent’s counsel as required in the Side Letter.

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

     Section 10.2 Acceleration and Suspension or Termination of Term Loan Commitment. Upon the
occurrence and during the continuance of an Event of Default, Administrative Agent shall, if
requested by Required Lenders, (a) by notice to Borrower Representative suspend or terminate the
Term Loan Commitment and the obligations of Administrative Agent and Lenders with respect thereto,
in whole or in part (and, if in part, each Lender’s Term Loan Commitment shall be reduced in
accordance with its Pro Rata Share), and/or (b) by notice to Borrower Representative declare all or
any portion of the Obligations to be, and all or such portion of the Obligations shall thereupon
become, immediately due and payable without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by each Borrower and Borrowers will pay the same; provided,
however, that in the case of any of the Events of Default specified in Section 10.1(e) or 10.1(f)
above, without any notice to any Borrower or any other act by Administrative Agent or the Lenders,
the Term Loan Commitment and the obligations of Administrative Agent and the Lenders with respect
thereto shall thereupon immediately and automatically terminate and all of the Obligations shall
become immediately and automatically due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by each Borrower and Borrowers will pay the
same.

     Section 10.3 Reserved.

     Section 10.4 Default Rate of Interest. At the election of Required Lenders, after the
occurrence of an Event of Default and for so long as it continues, the Loans and other Obligations
shall bear interest at rates that are five percent (5%) per annum in excess of the rates otherwise
payable under this Agreement; provided that, notwithstanding anything to the contrary contained in
the foregoing or otherwise in this Agreement, the increased rates of default interest provided for
in this section shall be applicable automatically and immediately upon the occurrence and during
the continuance of any Event of Default occurring under Section 10.1(e) or 10.1(f) above without
the necessity of any further affirmative action by any party.

     Section 10.5 Setoff Rights. During the continuance of any Event of Default, each Lender is
hereby authorized by each Borrower at any time or from time to time, with reasonably prompt
subsequent notice to such Borrower (provided that any failure to provide any such notice shall not
impair the validity of the applicable set-off right) (any prior or contemporaneous notice being
hereby expressly waived) to set off and to appropriate and to apply any and all (a) balances held
by such Lender or any of such Lender’s Affiliates at any of its offices for the account of such
Borrower or any of its Subsidiaries (regardless of whether such balances are then due to such
Borrower or its Subsidiaries), and (b) other property at any time held or owing by such Lender to
or for the credit or for the account of such Borrower or any of its Subsidiaries, against and on
account of any of the Obligations; except that no Lender shall exercise any such right without the
prior written consent of Administrative Agent. Any Lender exercising a right to set off shall
purchase for cash (and the other Lenders shall sell) interests in each of such other Lender’s Pro
Rata Share of the Obligations as would be necessary to cause all Lenders to share the amount so set
off with each other Lender in accordance with their respective Pro Rata Share of the Obligations.
Each Borrower agrees, to the fullest extent permitted by law, that any Lender and any of such
Lender’s Affiliates may exercise its right to set off with respect to the Obligations as provided
in this Section 10.5.

     Section 10.6 Application of Proceeds. Notwithstanding anything to the contrary contained in
this Agreement, upon the occurrence and during the continuance of an Event of Default, (a) each
Borrower irrevocably waives the right to direct the application of any and all payments at any time
or times thereafter received by

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Administrative Agent from or on behalf of such Borrower or any other Credit Party of all or
any part of the Obligations, and, as between Borrowers on the one hand and Administrative Agent and
Lenders on the other, Administrative Agent shall have the continuing and exclusive right to apply
and to reapply any and all payments received against the Obligations in such manner as
Administrative Agent may deem advisable notwithstanding any previous application by Administrative
Agent, and (b) the proceeds of any sale of, or other realization upon, all or any part of the
Collateral and any payment after an Event of Default shall be applied: first, to all fees,
costs, indemnities, liabilities, obligations and expenses incurred by or owing to Administrative
Agent, in its capacity as Administrative Agent and not in its capacity as a Lender, with respect to
this Agreement, the other Financing Documents or the Collateral; second, to all fees,
costs, indemnities, liabilities, obligations and expenses incurred by or owing to any Lender with
respect to this Agreement, the other Financing Documents or the Collateral; third, to
accrued and unpaid interest on the Obligations (including any interest which, but for the
provisions of the Bankruptcy Code, would have accrued on such amounts); fourth, to any
other indebtedness or obligations of Borrowers owing to Administrative Agent or any Lender under
the Financing Documents; and fifth, to the Obligations owing to any Eligible Swap
Counterparty in respect of any Swap Contracts. Any balance remaining shall be delivered to
Borrowers or to whoever may be lawfully entitled to receive such balance or as a court of competent
jurisdiction may direct. In carrying out the foregoing, (x) amounts received shall be applied in
the numerical order provided until exhausted prior to the application to the next succeeding
category, and (y) each of the Persons entitled to receive a payment in any particular category
shall receive an amount equal to its Pro Rata Share of amounts available to be applied pursuant
thereto for such category.

     Section 10.7 Waivers.

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

     (b) Each Borrower for itself and all its successors and assigns, (i) agrees that its liability
shall not be in any manner affected by any indulgence, extension of time, renewal, waiver, or
modification granted or consented to by Administrative Agent or any Lender; (ii) consents to any
indulgences and all extensions of time, renewals, waivers, or modifications that may be granted by
Administrative Agent or any Lender, in each case in accordance with Section 12.5 below, with
respect to the payment or other provisions of the Financing Documents, and to any substitution,
exchange or release of the Collateral, or any part thereof, with or without substitution, and
agrees to the addition or release of any Borrower, endorsers, guarantors, or sureties, or whether
primarily or secondarily liable, without notice to any other Borrower and without affecting its
liability hereunder; (iii) agrees that its liability shall be unconditional and without regard to
the liability of any other Borrower, Administrative Agent or any Lender for any tax on the
indebtedness; and (iv) to the fullest extent permitted by law, expressly waives the benefit of any
statute or rule of law or equity now provided, or which may hereafter be provided, which would
produce a result contrary to or in conflict with the foregoing.

     (c) To the extent that Administrative Agent or any Lender may have acquiesced in any
noncompliance with any requirements or conditions precedent to the closing of the Loans or to any
subsequent disbursement of Loan proceeds, such acquiescence shall not be deemed to constitute a
waiver by Administrative Agent or any Lender of such requirements with respect to any future
disbursements of Loan proceeds and Administrative Agent may at any time after such acquiescence
require Borrowers to comply with all such requirements. Any forbearance by Administrative Agent or
any Lender in exercising any right or remedy under any of the Financing Documents, or otherwise
afforded by applicable law, including any failure to accelerate the maturity date of the Loans,
shall not be a waiver of or preclude the exercise of any right or remedy nor shall it serve

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as a novation of the Notes or as a reinstatement of the Loans or a waiver of such right of
acceleration or the right to insist upon strict compliance of the terms of the Financing Documents.
Administrative Agent’s or any Lender’s acceptance of payment of any sum secured by any of the
Financing Documents after the due date of such payment shall not be a waiver of Administrative
Agent’s and such Lender’s right to either require prompt payment when due of all other sums so
secured or to declare a default for failure to make prompt payment. The procurement of insurance
or the payment of taxes or other Liens or charges by Administrative Agent as the result of an Event
of Default shall not be a waiver of Administrative Agent’s right to accelerate the maturity of the
Loans, nor shall Administrative Agent’s receipt of any condemnation awards, insurance proceeds, or
damages under this Agreement operate to cure or waive any Credit Party’s default in payment of sums
secured by any of the Financing Documents.

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

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

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

     Section 10.8 Injunctive Relief. The parties acknowledge and agree that, in the event of a
breach or threatened breach of any Credit Party’s obligations under any Financing Documents,
Administrative Agent and Lenders may have no adequate remedy in money damages and, accordingly,
shall be entitled to an injunction (including, without limitation, a temporary restraining order,
preliminary injunction, writ of attachment, or order compelling an audit) against such breach or
threatened breach, including, without limitation, maintaining any cash management and collection
procedure described herein. However, no specification in this Agreement of a specific legal or
equitable remedy shall be construed as a waiver or prohibition against any other legal or equitable
remedies in the event of a breach or threatened breach of any provision of this Agreement. Each
Credit Party waives, to the fullest extent permitted by law, the requirement of the posting of any
bond in connection with such injunctive relief. By joining in the Financing Documents as a Credit
Party, each Credit Party specifically joins in this Section as if this Section were a part of each
Financing Document executed by such Credit Party.

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     Section 10.9 Marshalling. Administrative Agent and Lenders shall have no obligation to
marshal any assets in favor of any Credit Party, or against or in payment of any of the other
Obligations or any other obligation owed to Administrative Agent or Lenders by any Credit Party and
each Credit Party hereby waives any such right to marshalling (and by joining in the Financing
Documents as a Credit Party, each Credit Party specifically joins in this Section as if this
Section were a part of each Financing Document executed by such Credit Party).

ARTICLE 11 — AGENT

     Section 11.1 Appointment and Authorization. Each Lender hereby irrevocably appoints and
authorizes Administrative Agent to be such Lender’s agent under and with respect to this Agreement
and the other Financing Documents and the transactions contemplated hereby and thereby to the
extent provided for herein and therein and in any separate interlender or agency agreement entered
into by Lenders and Administrative Agent in connection herewith and therewith and more specifically
(without limiting the generality of the foregoing) to enter into each of the Financing Documents to
which such Lender is a party (other than this Agreement) on its behalf and to take such actions as
Administrative Agent on such Lender’s behalf and to exercise such powers under the Financing
Documents as are delegated to Administrative Agent by the terms thereof, and/or by the terms of any
interlender or agency agreement entered into among Administrative Agent and Lenders, together with
all such powers as are reasonably incidental thereto. Subject to the terms of Section 12.5 below
and the other Financing Documents and/or any such interlender or agency agreement, Administrative
Agent is authorized and empowered to amend, modify, or waive any provisions of this Agreement or
the other Financing Documents on behalf of Lenders. The provisions of this Article 11 are solely
for the benefit of Administrative Agent and Lenders and neither any Borrower nor any other Credit
Party shall have any rights as a third party beneficiary of any of the provisions hereof. In
performing its functions and duties under this Agreement, Administrative Agent shall act solely as
agent of Lenders and does not assume and shall not be deemed to have assumed any obligation toward
or relationship of agency or trust with or for any Borrower or any other Credit Party.
Administrative Agent may perform any of its duties hereunder, or under the Financing Documents
and/or any such interlender or agency agreement, by or through its agents or employees.

     Section 11.2 Liability of Administrative Agent. Neither Administrative Agent nor any of its
directors, officers, agents or employees shall be liable to any Lender for any action taken or not
taken by it in connection with the Financing Documents, except that Administrative Agent shall be
liable with respect to its specific duties set forth hereunder but only to the extent of its own
gross negligence or willful misconduct in the discharge thereof as determined by a final
non-appealable judgment of a court of competent jurisdiction. Neither Administrative Agent nor any
of its directors, officers, agents or employees shall be responsible for or have any duty to
ascertain, inquire into or verify (a) any statement, warranty or representation made in connection
with any Financing Document or any borrowing hereunder; (b) the performance or observance of any of
the covenants or agreements specified in any Financing Document; (c) the satisfaction of any
condition specified in any Financing Document; (d) the validity, effectiveness, sufficiency or
genuineness of any Financing Document, any Lien purported to be created or perfected thereby or any
other instrument or writing furnished in connection therewith; (e) the existence or non-existence
of any Default or Event of Default; or (f) the financial condition of any Credit Party.
Administrative Agent shall not incur any liability by acting in reliance upon any notice, consent,
certificate, statement, or other writing (which may be a bank wire, telex, facsimile or electronic
transmission or similar writing) believed by it to be genuine or to be signed by the proper party
or parties. Administrative Agent shall not be liable for any apportionment or distribution of
payments made by it in good faith and if any such apportionment or distribution is subsequently
determined to have been made in error the sole recourse of any Lender to whom payment was due but
not made, shall be to recover from other Lenders any payment in excess of the amount to which they
are determined to be entitled (and such other Lenders hereby agree to return to such Lender any
such erroneous payments received by them).

     Section 11.3 Indemnification. Each Lender shall, in accordance with its Pro Rata Share,
indemnify Administrative Agent (to the extent not reimbursed by Borrowers) upon demand against any
cost, expense (including counsel fees and disbursements), claim, demand, action, loss or liability
(except such as result from Administrative Agent’s gross negligence or willful misconduct as
determined by a final non-appealable judgment of a court of competent jurisdiction) that
Administrative Agent, in its capacity as Administrative Agent and not in its capacity as a Lender,
may suffer or incur in connection with the Financing Documents or any action taken or omitted by
Administrative Agent hereunder or thereunder. If any indemnity furnished to Administrative Agent
for

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any purpose shall, in the opinion of Administrative Agent, be insufficient or become impaired,
Administrative Agent may call for additional indemnity and cease, or not commence, to do the acts
indemnified against even if so directed by Required Lenders until such additional indemnity is
furnished.

     Section 11.4 Collateral Matters. Lenders irrevocably authorize Administrative Agent, at its
option and in its discretion, to (a) release any Lien granted to or held by Administrative Agent
under any Security Document (i) upon termination of the Loan Commitment and payment in full of all
Obligations, and, to the extent required by Administrative Agent in its sole discretion, the
expiration, termination or cash collateralization (to the satisfaction of Administrative Agent) of
all Swap Contracts secured, in whole or in part, by any Collateral; or (ii) constituting property
sold or disposed of as part of or in connection with any disposition permitted under any Financing
Document (it being understood and agreed that Administrative Agent may conclusively rely without
further inquiry on a certificate of a Responsible Officer as to the sale or other disposition of
property being made in full compliance with the provisions of the Financing Documents); and (b)
release or subordinate any Lien granted to or held by Administrative Agent under any Security
Document constituting personal property described in Section 5.6 (it being understood and agreed
that Administrative Agent may conclusively rely without further inquiry on a certificate of a
Responsible Officer as to the identification of any personal property described in Section 5.6).
Upon request by Administrative Agent at any time, Lenders will confirm Administrative Agent’s
authority to release and/or subordinate particular types or items of Collateral pursuant to this
Section 11.4.

     Section 11.5 Agency for Perfection. Administrative Agent and each Lender hereby appoint each
other Lender as agent for the purpose of perfecting Administrative Agent’s security interest in
assets which, in accordance with the Uniform Commercial Code in any applicable jurisdiction, can be
perfected by possession or control. Should any Lender (other than Administrative Agent) obtain
possession or control of any such assets, such Lender shall notify Administrative Agent thereof,
and, promptly upon Administrative Agent’s request therefor, shall deliver such assets to
Administrative Agent or in accordance with Administrative Agent’s instructions or transfer control
to Administrative Agent in accordance with Administrative Agent’s instructions. Each Lender agrees
that it will not have any right individually to enforce or seek to enforce any Security Document or
to realize upon any Collateral for the Loan unless instructed to do so by Administrative Agent
(except as provided in Section 10.5), it being understood and agreed that such rights and remedies
may be exercised only by Administrative Agent.

     Section 11.6 Successor Administrative Agent. Administrative Agent may at any time give notice
of its resignation to the Lenders and Borrowers. Upon receipt of any such notice of resignation,
Required Lenders shall have the right, in consultation with Borrowers (provided no Event of Default
has occurred and is continuing), to appoint a successor Administrative Agent. Upon the acceptance
of a successor’s appointment as Administrative Agent hereunder and notice of such acceptance to the
retiring Administrative Agent, such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, the
retiring Administrative Agent’s resignation shall become immediately effective and the retiring
Administrative Agent shall be discharged from all of its duties and obligations hereunder and under
the other Financing Documents (if such resignation was not already effective and such duties and
obligations not already discharged, as provided below in this paragraph). The fees payable by
Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed among Borrowers and such successor. If no such successor shall have been
so appointed by Required Lenders and shall have accepted such appointment within thirty (30) days
after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders (but without any obligation) appoint a successor
Administrative Agent. From and following the expiration of such thirty (30) day period,
Administrative Agent shall have the exclusive right, upon one (1) Business Days’ notice to Borrower
Representative and the Lenders, and the delivery to a Lender, for the benefit of all Lenders, of
all Collateral in the possession of the retiring Administrative Agent, to make its resignation
effective immediately. From and following the effectiveness of such notice, (a) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Financing Documents, and (b) all payments, communications and determinations provided to be
made by, to or through Administrative Agent shall instead be made by or to each Lender directly,
until such time as Required Lenders appoint a successor Administrative Agent as provided for above
in this paragraph. The provisions of this Agreement shall continue in effect for the benefit of
any retiring Administrative Agent and its sub-agents after the effectiveness of its resignation
hereunder and under the other Financing Documents in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting or was continuing to act as
Administrative Agent.

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     Section 11.7 Payment and Sharing of Payment.

     (a) Loan Payments. Payments of principal, interest and fees in respect of the Loan
will be settled on the date of receipt if received by Administrative Agent on a Business Day prior
to noon (Chicago time) or on the Business Day immediately following the date of receipt if received
after noon (Chicago time). All payments of principal, interest and fees (other than fees owed to
Administrative Agent, in its capacity as Administrative Agent and not as a Lender, pursuant to the
express provisions of this Agreement), shall be allocated among the Lenders in accordance with
their respective Pro Rata Shares.

     (b) Return of Payments.

          (i) If Administrative Agent pays an amount to a Lender under this Agreement in the belief or
expectation that a related payment has been or will be received by Administrative Agent from a
Borrower and such related payment is not received by Administrative Agent, then Administrative
Agent will be entitled to recover such amount from such Lender on demand without setoff,
counterclaim or deduction of any kind, together with interest accruing on a daily basis at the
Federal Funds Rate.

          (ii) If Administrative Agent determines at any time that any amount received by Administrative
Agent under this Agreement must be returned to any Borrower or paid to any other Person pursuant to
any insolvency law or otherwise, then, notwithstanding any other term or condition of this
Agreement or any other Financing Document, Administrative Agent will not be required to distribute
any portion thereof to any Lender. In addition, each Lender will repay to Administrative Agent on
demand any portion of such amount that Administrative Agent has distributed to such Lender,
together with interest at such rate, if any, as Administrative Agent is required to pay to any
Borrower or such other Person, without setoff, counterclaim or deduction of any kind.

     (c) Defaulted Lenders. The failure of any Defaulted Lender to make any payment
required by it hereunder shall not relieve any other Lender of its obligations to make payment, but
neither any other Lender nor Administrative Agent shall be responsible for the failure of any
Defaulted Lender to make any payment required hereunder. Notwithstanding anything set forth herein
to the contrary, a Defaulted Lender shall not have any voting or consent rights under or with
respect to any Financing Document or constitute a “Lender” (or be included in the calculation of
“Required Lenders” hereunder) for any voting or consent rights under or with respect to any
Financing Document.

     (d) Sharing of Payments. If any Lender shall obtain any payment or other recovery
(whether voluntary, involuntary, by application of setoff or otherwise) on account of any Loan in
excess of its Pro Rata Share of payments entitled pursuant to the other provisions of this Section
11.7, such Lender shall purchase from the other Lenders such participations in extensions of credit
made by such other Lenders (without recourse, representation or warranty) as shall be necessary to
cause such purchasing Lender to share the excess payment or other recovery ratably with each of
them; provided, however, that if all or any portion of the excess payment or other recovery is
thereafter recovered from such purchasing Lender, the purchase shall be rescinded and each Lender
which has sold a participation to the purchasing Lender shall repay to the purchasing Lender the
purchase price to the ratable extent of such recovery, without interest. Each Borrower agrees that
any Lender so purchasing a participation from another Lender pursuant to this clause (d) may, to
the fullest extent permitted by law, exercise all its rights of payment (including pursuant to
Section 10.5) with respect to such participation as fully as if such Lender were the direct
creditor of Borrowers in the amount of such participation). If under any applicable bankruptcy,
insolvency or other similar law, any Lender receives a secured claim in lieu of a setoff to which
this clause (d) applies, such Lender shall, to the extent practicable, exercise its rights in
respect of such secured claim in a manner consistent with the rights of the Lenders entitled under
this clause (d) to share in the benefits of any recovery on such secured claim.

     Section 11.8 Right to Perform, Preserve and Protect. If any Credit Party fails to perform any
obligation hereunder or under any other Financing Document, Administrative Agent itself may, but
shall not be obligated to, cause such obligation to be performed at Borrowers’ expense.
Administrative Agent is further authorized by Borrowers and the Lenders to make expenditures from
time to time which Administrative Agent, in its reasonable business judgment, deems necessary or
desirable to (a) preserve or protect the business conducted by Borrowers, the Collateral, or any
portion thereof, and/or (b) enhance the likelihood of, or maximize the amount of,

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repayment of the Loan and other Obligations. Each Borrower hereby agrees to reimburse
Administrative Agent on demand for any and all costs, liabilities and obligations incurred by
Administrative Agent pursuant to this Section 11.8. Each Lender hereby agrees to indemnify
Administrative Agent upon demand for any and all costs, liabilities and obligations incurred by
Administrative Agent pursuant to this Section 11.8, in accordance with the provisions of Section
11.3.

     Section 11.9 Administrative Agent and Affiliates. Administrative Agent shall have the same
rights and powers under the Financing Documents as any other Lender and may exercise or refrain
from exercising the same as though it were not Administrative Agent, and Administrative Agent and
its Affiliates may lend money to, invest in and generally engage in any kind of business with each
Credit Party or Affiliate of any Credit Party as if it were not Administrative Agent hereunder.

     Section 11.10 Action by Administrative Agent. The duties of Administrative Agent shall be
mechanical and administrative in nature. Administrative Agent shall not have by reason of this
Agreement a fiduciary relationship in respect of any Lender. Nothing in this Agreement or any of
the Financing Documents is intended to or shall be construed to impose upon Administrative Agent
any obligations in respect of this Agreement or any of the Financing Documents except as expressly
set forth herein or therein.

     Section 11.11 Consultation with Experts. Administrative Agent may consult with legal counsel,
independent public accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the advice of such
counsel, accountants or experts.

     Section 11.12 Right to Request and Act on Instructions. Administrative Agent may at any time
request instructions from Lenders with respect to any actions or approvals which by the terms of
this Agreement or of any of the Financing Documents Administrative Agent is permitted or desires to
take or to grant, and if such instructions are promptly requested, Administrative Agent shall be
absolutely entitled to refrain from taking any action or to withhold any approval and shall not be
under any liability whatsoever to any Person for refraining from any action or withholding any
approval under any of the Financing Documents until it shall have received such instructions from
Required Lenders or all or such other portion of the Lenders as shall be prescribed by this
Agreement. Without limiting the foregoing, no Lender shall have any right of action whatsoever
against Administrative Agent as a result of Administrative Agent acting or refraining from acting
under this Agreement or any of the other Financing Documents in accordance with the instructions of
Required Lenders (or all or such other portion of the Lenders as shall be prescribed by this
Agreement) and, notwithstanding the instructions of Required Lenders (or such other applicable
portion of the Lenders), Administrative Agent shall have no obligation to take any action if it
believes, in good faith, that such action would violate applicable Law or exposes Administrative
Agent to any liability for which it has not received satisfactory indemnification in accordance
with the provisions of Section 11.3.

     Section 11.13 Credit Decision. Each Lender acknowledges that it has, independently and
without reliance upon Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon Administrative Agent or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking any action under the Financing Documents.

     Section 11.14 Notice of Default. Administrative Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default or Event of Default except with respect to defaults in
the payment of principal, interest and fees required to be paid to Administrative Agent for the
account of Lenders, unless Administrative Agent shall have received written notice from a Lender or
a Borrower referring to this Agreement, describing such Default or Event of Default and stating
that such notice is a “notice of default”. Administrative Agent will notify each Lender of its
receipt of any such notice. Administrative Agent shall take such action with respect to such
Default or Event of Default as may be requested by Required Lenders (or all or such other portion
of the Lenders as shall be prescribed by this Agreement) in accordance with the terms hereof.
Unless and until Administrative Agent has received any such request, Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such action, with respect to
such Default or Event of Default as it shall deem advisable or in the best interests of Lenders.

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     Section 11.15 Additional Titled Agents. Except for rights and powers, if any, expressly
reserved under this Agreement to any bookrunner, arranger or to any titled agent named on the cover
page of this Agreement, other than Administrative Agent (collectively, the “Additional Titled
Agents”), and except for obligations, liabilities, duties and responsibilities, if any, expressly
assumed under this Agreement by any Additional Titled Agent, no Additional Titled Agent, in such
capacity, has any rights, powers, liabilities, duties or responsibilities hereunder or under any of
the other Financing Documents. Without limiting the foregoing, no Additional Titled Agent shall
have nor be deemed to have a fiduciary relationship with any Lender. At any time that any Lender
serving as an Additional Titled Agent shall have transferred to any other Person (other than any
Affiliates) all of its interests in the Loan, such Lender shall be deemed to have concurrently
resigned as such Additional Titled Agent.

     Section 11.16 Reserved.

     Section 11.17 Definitions. As used in this Article 11, the following terms have the following
meanings:

     “Additional Titled Agents” has the meaning set forth in Section 11.15.

     “Federal Funds Rate” means, for any day, the rate of interest per annum (rounded upwards, if
necessary, to the nearest whole multiple of 1/100 of 1%) equal to the weighted average of the rates
on overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day, provided, however, that (a) if such day is not a Business
Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day, and (b) if no such rate is so published on such next preceding Business
Day, the Federal Funds Rate for such day shall be the average rate quoted to Administrative Agent
on such day on such transactions as determined by Administrative Agent.

ARTICLE 12 — MISCELLANEOUS

     Section 12.1 Survival. All agreements, representations and warranties made herein and in
every other Financing Document shall survive the execution and delivery of this Agreement and the
other Financing Documents. The provisions of Section 2.8 and Articles 10, 11 and 12 shall survive
the payment of the Obligations (both with respect to any Lender and all Lenders collectively) and
any termination of this Agreement and any judgment with respect to any Obligations, including any
final foreclosure judgment with respect to any Security Document, and no unpaid or unperformed,
current or future, Obligations will merge into any such judgment.

     Section 12.2 No Waivers. No failure or delay by Administrative Agent or any Lender in
exercising any right, power or privilege under any Financing Document shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and remedies herein and
therein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
Any reference in any Financing Document to the “continuing” nature of any Event of Default shall
not be construed as establishing or otherwise indicating that any Borrower or any other Credit
Party has the independent right to cure any such Event of Default, but is rather presented merely
for convenience should such Event of Default be waived in accordance with the terms of the
applicable Financing Documents.

     Section 12.3 Notices.

     (a) All notices, requests and other communications to any party hereunder shall be in writing
(including prepaid overnight courier, facsimile transmission or similar writing) and shall be given
to such party at its address, facsimile number or e-mail address set forth on the signature pages
hereof (or, in the case of any such Lender who becomes a Lender after the date hereof, in an
assignment agreement or in a notice delivered to Borrower Representative and Administrative Agent
by the assignee Lender forthwith upon such assignment) or at such other address, facsimile number
or e-mail address as such party may hereafter specify for the purpose by notice to Administrative
Agent and Borrower Representative; provided, however, that notices, requests or other
communications shall be permitted by electronic means only in accordance with the provisions of
Section 12.3(b) and (c). Each such notice, request or other communication shall be effective (i)
if given by facsimile, when such

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notice is transmitted to the facsimile number specified by this Section and the sender
receives a confirmation of transmission from the sending facsimile machine, or (ii) if given by
mail, prepaid overnight courier or any other means, when received or when receipt is refused at the
applicable address specified by this Section 12.3(a).

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

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

     Section 12.4 Severability. In case any provision of or obligation under this Agreement or any
other Financing Document shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be affected or impaired
thereby.

     Section 12.5 Amendments and Waivers.

          (a) No provision of this Agreement or any other Financing Document may be amended, waived or
otherwise modified unless such amendment, waiver or other modification is in writing and is signed
or otherwise approved by Borrowers and the Required Lenders; provided that

          (i) no such amendment, waiver or other modification that would have the effect of increasing
or reducing a Lender’s Term Loan Commitment Amount or Term Loan Commitment Percentage shall be
effective as to such Lender without such Lender’s written consent;

          (ii) no such amendment, waiver or modification that would affect the rights and duties of
Administrative Agent shall be effective without Administrative Agent’s written consent or
signature;

          (iii) no such amendment, waiver or other modification shall, unless signed by all the Lenders
directly affected thereby, (A) reduce the principal of, rate of interest on or any fees with
respect to any Loan or forgive any principal, interest (other than default interest) or fees (other
than late charges) with respect to any Loan (B) postpone the date fixed for, or waive, any payment
of principal of any Loan or of interest on any Loan (other than default interest) or any fees
provided for hereunder (other than late charges or for any termination of any commitment); (C)
change the definition of the term Required Lenders or the percentage of Lenders which shall be
required for Lenders to take any action hereunder; (D) release all or substantially all or any
material portion of the Collateral, authorize any Borrower to sell or otherwise dispose of all or
substantially all or any material portion of the Collateral, subordinate the Liens of the
Administrative Agent or the Lenders hereunder, or release any Guarantor of all or any portion of
the Obligations or its Guarantee obligations with respect thereto, except, in each case with
respect to this clause (D), as otherwise may be expressly permitted under this Agreement or the
other Financing Documents (including in connection with any disposition permitted hereunder); (E)
amend, waive or otherwise modify this Section 12.5 or the definitions of the terms used in this
Section 12.5 insofar as the definitions affect the substance of this Section 12.5; (F) consent to
the assignment, delegation or other transfer by any Credit Party of any of its rights and
obligations under any Financing Document or release any Borrower of its payment obligations

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under any Financing Document, except, in each case with respect to this clause (F), pursuant
to a merger or consolidation permitted pursuant to this Agreement or (G) amend any of the
provisions of Section 10.6 or 11.7 or amend any of the definitions Pro Rata Share, Term Loan
Commitment, Term Loan Commitment Amount, Term Loan Commitment Percentage or that provide for the
Lenders to receive their Pro Rata Shares of any fees, payments, setoffs or proceeds of Collateral
hereunder. It is hereby understood and agreed that all Lenders shall be deemed directly affected
by an amendment, waiver or other modification of the type described in the preceding clauses (C),
(D), (E), (F) and (G) of the preceding sentence;

          (iv) the provisions of the foregoing clauses (i), (ii) and (iii) are subject to the provisions
of any interlender or agency agreement among the Lenders and Administrative Agent pursuant to which
any Lender may agree to give its consent in connection with any amendment, waiver or modification
of the Financing Documents only in the event of the unanimous agreement of all Lenders.

     (b) Without limitation of the provisions of the preceding clause (a), no waiver, amendment or
other modification to this Agreement shall, unless signed by each Eligible Swap Counterparty then
in existence, modify the provisions of Section 10.6 in any manner adverse to the interests of each
such Eligible Swap Counterparty.

     Section 12.6 Assignments; Participations; Replacement of Lenders.

     (a) Assignments.

          (i) Any Lender may at any time assign to one or more Eligible Assignees all or any portion of
such Lender’s Loans and interest in the Term Loan Commitment, together with all related obligations
of such Lender hereunder. Except as Administrative Agent may otherwise agree, the amount of any
such assignment (determined as of the date of the applicable Assignment Agreement or, if a “Trade
Date” is specified in such Assignment Agreement, as of such Trade Date) shall be in a minimum
aggregate amount equal to $1,000,000 or, if less, the assignor’s entire interests in the Term Loan
Commitment and outstanding Loans; provided, that, in connection with simultaneous assignments to
two or more related Approved Funds, such Approved Funds shall be treated as one assignee for
purposes of determining compliance with the minimum assignment size referred to above. Borrowers
and Administrative Agent shall be entitled to continue to deal solely and directly with such Lender
in connection with the interests so assigned to an Eligible Assignee until Administrative Agent
shall have received and accepted an effective Assignment Agreement executed, delivered and fully
completed by the applicable parties thereto, and such other information regarding such Eligible
Assignee as Administrative Agent reasonably shall require. Unless an Event of Default has occurred
and is continuing, Borrowers shall not be liable for the fees and costs associated with assignments
by the Lenders of any of their rights and obligations hereunder.

          (ii) From and after the date on which the conditions described above have been met, (i) such
Eligible Assignee shall be deemed automatically to have become a party hereto and, to the extent of
the interests assigned to such Eligible Assignee pursuant to such Assignment Agreement, shall have
the rights and obligations of a Lender hereunder and (ii) the assigning Lender, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such Assignment Agreement,
shall be released from its rights and obligations hereunder (other than those that survive
termination pursuant to Section 12.1). Upon the request of the Eligible Assignee (and, as
applicable, the assigning Lender) pursuant to an effective Assignment Agreement, Borrower shall
execute and deliver to Administrative Agent for delivery to the Eligible Assignee (and, as
applicable, the assigning Lender) Notes in the aggregate principal amount of the Eligible
Assignee’s percentage interest in the Term Loan Commitment (and, as applicable, Notes in the
principal amount of that portion of the Term Loan Commitment retained by the assigning Lender).
Upon receipt by the assigning Lender of such Note, the assigning Lender shall return to Borrower
any prior Note held by it.

          (iii) Administrative Agent, acting solely for this purpose as an agent of Borrower, shall
maintain at its offices located in Chicago, Illinois a copy of each Assignment Agreement delivered
to it and a register for the recordation of the names and addresses of each Lender, and the
commitments of, and principal amount of the Loans owing to, such Lender pursuant to the terms
hereof. The entries in such register shall be conclusive, and Borrower, Administrative Agent and
Lenders may treat each Person whose name is recorded therein pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to the

Credit and Security Agreement

50

 

contrary. Such register shall be available for inspection by Borrower and any Lender, at any
reasonable time upon reasonable prior notice to Administrative Agent.

          (iv) Notwithstanding the foregoing provisions of this Section 12.6(a) or any other provision
of this Agreement, any Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge
or assignment shall release such Lender from any of its obligations hereunder or substitute any
such pledgee or assignee for such Lender as a party hereto.

          (v) Notwithstanding the foregoing provisions of this Section 12.6(a) or any other provision of
this Agreement, Administrative Agent has the right, but not the obligation, to effectuate
assignments of Loans and Term Loan Commitments via an electronic settlement system acceptable to
Administrative Agent as designated in writing from time to time to the Lenders by Administrative
Agent (the “Settlement Service”). At any time when the Administrative Agent elects, in its sole
discretion, to implement such Settlement Service, each such assignment shall be effected by the
assigning Lender and proposed assignee pursuant to the procedures then in effect under the
Settlement Service, which procedures shall be consistent with the other provisions of this Section
12.6(a). Each assigning Lender and proposed Eligible Assignee shall comply with the requirements
of the Settlement Service in connection with effecting any assignment of Loans and Term Loan
Commitments pursuant to the Settlement Service (without any cost to the Lender, except for the
processing fee referred to in clause (1) above). With the prior approval of each of Administrative
Agent and the Borrower, Administrative Agent’s and the Borrower’s approval of such Eligible
Assignee shall be deemed to have been automatically granted with respect to any transfer effected
through the Settlement Service. Assignments and assumptions of the Loans and Term Loan Commitments
shall be effected by the provisions otherwise set forth herein until Administrative Agent notifies
Lenders of the Settlement Service as set forth herein.

     (b) Participations. Any Lender may at any time, without the consent of, or notice to,
Borrower or Administrative Agent, sell to one or more Persons participating interests in its Loans,
commitments or other interests hereunder (any such Person, a “Participant”). In the event of a
sale by a Lender of a participating interest to a Participant, (a) such Lender’s obligations
hereunder shall remain unchanged for all purposes, (b) Borrower and Administrative Agent shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations hereunder and (c) all amounts payable by Borrower shall be determined as if such Lender
had not sold such participation and shall be paid directly to such Lender. No Participant shall
have any direct or indirect voting rights hereunder except with respect to any event described in
Section 12.5 expressly requiring the unanimous vote of all Lenders or, as applicable, all affected
Lenders. Borrower agrees that if amounts outstanding under this Agreement are due and payable (as
a result of acceleration or otherwise), each Participant shall be deemed to have the right of
set-off in respect of its participating interest in amounts owing under this Agreement; provided
that such right of set-off shall be subject to the obligation of each Participant to share with
Lenders, and Lenders agree to share with each Participant, as provided in Section 10.5.

     (c) Replacement of Lenders. Within thirty (30) days after: (i) receipt by Administrative
Agent of notice and demand from any Lender for payment of additional costs as provided in Section
2.8(d), which demand shall not have been revoked, (ii) Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.8(a) or 2.8(b), or (iii) any Lender is a Defaulted Lender, and the circumstances causing
such status shall not have been cured or waived (each relevant Lender in the foregoing clauses (i)
through (iii) being an “Affected Lender”), Administrative Agent may, at its option, notify such
Affected Lender of such Person’s intention to obtain, at Borrowers’ expense, a replacement Lender
(“Replacement Lender”) for such Lender, which Replacement Lender shall be an Eligible Assignee. In
the event Administrative Agent obtains a Replacement Lender within ninety (90) days following
notice of its intention to do so, the Affected Lender shall sell, at par, and assign all of its
Loans and funding commitments hereunder to such Replacement Lender in accordance with the
procedures set forth in Section 12.6(a); provided, that (i) Borrowers shall have, as applicable,
reimbursed such Lender for its increased costs and additional payments for which it is entitled to
reimbursement under Sections 2.8 of this Agreement through the date of such sale and assignment and
(ii) Borrowers shall pay to Administrative Agent the $3,500 processing fee in respect of such
assignment. In the event that a replaced Lender does not execute an Assignment Agreement pursuant
to Section 12.6(a) within five (5) Business Days after receipt by such replaced Lender of notice of
replacement pursuant to this Section 12.6(c) and presentation to such replaced Lender of an
Assignment Agreement evidencing an assignment

Credit and Security Agreement

51

 

pursuant to this Section 12.6(c), such replaced Lender shall be deemed to have consented to
the terms of such Assignment Agreement, and any such Assignment Agreement executed by
Administrative Agent, the Replacement Lender and, to the extent required pursuant to Section
12.6(a), Borrower, shall be effective for purposes of this Section 12.6(c) and Section 12.6(a).
Upon any such assignment and payment, such replaced Lender shall no longer constitute a “Lender”
for purposes hereof, other than with respect to such rights and obligations that survive
termination as set forth in Section 12.1.

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

     Section 12.7 Headings. Headings and captions used in the Financing Documents (including the
Exhibits, Schedules and Annexes hereto and thereto) are included for convenience of reference only
and shall not be given any substantive effect.

     Section 12.8 Confidentiality. Administrative Agent and each Lender shall hold all non-public
information regarding the Credit Parties and their respective businesses identified as such by
Borrowers and obtained by Administrative Agent or any Lender pursuant to the requirements hereof in
accordance with such Person’s customary procedures for handling information of such nature, except
that disclosure of such information may be made (a) to their respective agents, employees,
Subsidiaries, Affiliates, attorneys, auditors, professional consultants, rating agencies, insurance
industry associations and portfolio management services, (b) to prospective transferees or
purchasers of any interest in the Loans, and to prospective contractual counterparties (or the
professional advisors thereto) in Permitted Swap Contracts permitted hereby, provided, however,
that any such Persons shall have agreed to be bound by the provisions of this Section 12.8, (c) as
required by Law, subpoena, judicial order or similar order and in connection with any litigation,
(d) as may be required in connection with the examination, audit or similar investigation of such
Person, and (e) to a Person that is a trustee, investment advisor, collateral manager, servicer,
noteholder or secured party in a Securitization (as hereinafter defined) in connection with the
administration, servicing and reporting on the assets serving as collateral for such
Securitization. For the purposes of this Section, “Securitization” shall mean a public or private
offering by a Lender or any of its Affiliates or their respective successors and assigns, of
securities which represent an interest in, or which are collateralized, in whole or in part, by the
Loans. Confidential information shall include only such information identified as such at the time
provided to Administrative Agent and shall not include information that either: (i) is in the
public domain, or becomes part of the public domain after disclosure to such Person through no
fault of such Person, or (ii) is disclosed to such Person by a Person other than a Credit Party,
provided, however, Administrative Agent does not have actual knowledge that such Person is
prohibited from disclosing such information. The obligations of Administrative Agent and Lenders
under this Section 12.8 shall supersede and replace the obligations of Administrative Agent and
Lenders under any confidentiality agreement in respect of this financing executed and delivered by
Administrative Agent or any Lender prior to the date hereof.

     Section 12.9 Waiver of Consequential and Other Damages. To the fullest extent permitted by
applicable law, no Borrower shall assert, and each Borrower hereby waives, any claim against any
Indemnitee (as defined below), on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as
a result of this Agreement, any other Financing Document or any agreement or instrument
contemplated hereby or thereby, the transactions contemplated hereby or thereby, or the use of the
proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this Agreement or the other
Financing Documents or the transactions contemplated hereby or thereby.

     Section 12.10 GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS AGREEMENT, EACH NOTE AND EACH
OTHER FINANCING DOCUMENT, AND ALL MATTERS RELATING HERETO OR THERETO OR ARISING THEREFROM (WHETHER
SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES. EACH BORROWER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT
LOCATED WITHIN CHICAGO, STATE OF ILLINOIS AND IRREVOCABLY

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52

 

AGREES THAT, SUBJECT TO ADMINISTRATIVE AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER FINANCING DOCUMENTS SHALL BE LITIGATED IN SUCH
COURTS. EACH BORROWER EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS
AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY
AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON SUCH BORROWER BY
CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO SUCH BORROWER AT THE ADDRESS
SET FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS
BEEN POSTED.

     Section 12.11 WAIVER OF JURY TRIAL. EACH BORROWER, ADMINISTRATIVE AGENT AND THE LENDERS
HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THE FINANCING DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY AND
AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
EACH BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE WAIVER IN ENTERING
INTO THIS AGREEMENT AND THE OTHER FINANCING DOCUMENTS, AND THAT EACH WILL CONTINUE TO RELY ON THIS
WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER
WARRANTS AND REPRESENTS THAT IT HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL
COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

     Section 12.12 Publication; Advertisement.

     (a) Publication. No Credit Party will directly or indirectly publish, disclose or otherwise
use in any public disclosure, advertising material, promotional material, press release or
interview, any reference to the name, logo or any trademark of any Lender or any Affiliate of any
Lender or any reference to this Agreement or the financing evidenced hereby, in any case except (i)
as required by Law, subpoena or judicial or similar order, in which case the applicable Credit
Party shall give such Lender prior written notice of such publication or other disclosure, or (ii)
with such Lender’s prior written consent.

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

     Section 12.13 Counterparts; Integration. This Agreement and the other Financing Documents may
be signed in any number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. Signatures by facsimile or
by email delivery of an electronic version of an executed signature page shall bind the parties
hereto. This Agreement and the other Financing Documents constitute the entire agreement and
understanding among the parties hereto and supersede any and all prior agreements and
understandings, oral or written, relating to the subject matter hereof.

     Section 12.14 No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this

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53

 

Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
provisions of this Agreement.

     Section 12.15 Time. Time is of the essence in each Borrower’s and each other Credit Party’s
performance under this Agreement and all other Financing Documents.

     Section 12.16 Lender Approvals. Unless expressly provided herein to the contrary, any
approval, consent, waiver or satisfaction of Administrative Agent or Lenders with respect to any
matter that is the subject of this Agreement, the other Financing Documents may be granted or
withheld by Administrative Agent and Lenders in their sole and absolute discretion and credit
judgment.

     Section 12.17 Expenses; Indemnity

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

     (b) Borrowers agree to pay all out-of-pocket charges and expenses incurred by Administrative
Agent (including the fees and expenses of Administrative Agent’s counsel, advisers and consultants)
in connection with the administration of this Agreement and the other Financing Documents and the
credit facilities provided hereunder and thereunder, the administration, enforcement, protection or
preservation of any right or claim of Administrative Agent, the termination of this Agreement, the
termination of any Liens of Administrative Agent on the Collateral, or the collection of any
amounts due under the Financing Documents, including any such charges and expenses incurred in
connection with any “work-out” or with any proceeding under the Bankruptcy Code with respect to any
Credit Party. If Administrative Agent uses in-house counsel for any of these purposes (i.e., for
any task in connection with the enforcement, protection or preservation of any right or claim of
Administrative Agent and Lenders and the collection of any amounts due under the Financing
Documents or in connection with any other purpose mentioned in the foregoing sentence), Borrowers
further agree that the Obligations include reasonable charges for such work commensurate with the
fees that would otherwise be charged by outside legal counsel selected by Administrative Agent for
the work performed.

     (c) Borrowers hereby indemnify and agree to defend (with counsel acceptable to Administrative
Agent) and hold harmless Administrative Agent, each Lender, and their respective shareholders,
directors, partners, officers, agents and employees (collectively in the singular, “Indemnitee”)
from and against any liability, loss, cost, expense (including reasonable attorneys’ fees and
expenses for both in-house and outside counsel), claim, damage, suit, action or proceeding ever
suffered or incurred by any Indemnitee or in which an Indemnitee may ever be or become involved
(whether as a party, witness or otherwise) (a) arising from any Credit Party’s failure to observe,
perform or discharge any of its covenants, obligations, agreements or duties under the Financing
Documents, (b) arising from the breach of any of the representations or warranties contained in any
Financing Document, (c) arising by reason of this Agreement, the other Financing Documents or the
transactions contemplated hereby or thereby, or (d) relating to claims of any Person with respect
to the Collateral; provided, however, Borrower shall not be liable under this Section 12.17(c) to
the extent such loss is solely related to Indemnitee’s gross negligence or willful misconduct.

     (d) Notwithstanding any contrary provision in this Agreement, the obligations of Borrowers
under this Section 12.17 shall survive the payment in full of the Obligations and the termination
of this Agreement. NO INDEMNITEE SHALL BE RESPONSIBLE OR LIABLE TO THE BORROWERS OR TO ANY OTHER
PARTY TO ANY FINANCING DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY OR ANY OTHER
PERSON ASSERTING CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT,

Credit and Security Agreement

54

 

PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF CREDIT HAVING
BEEN EXTENDED, SUSPENDED OR TERMINATED UNDER THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT OR AS A
RESULT OF ANY OTHER TRANSACTION CONTEMPLATED HEREUNDER OR THEREUNDER.

     Section 12.18 Confession of Judgment. UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, EACH
BORROWER AUTHORIZES ANY ATTORNEY ADMITTED TO PRACTICE BEFORE ANY COURT OF RECORD IN THE UNITED
STATES OR THE CLERK OF SUCH COURT TO APPEAR ON BEHALF OF SUCH BORROWER IN ANY COURT IN ONE OR MORE
PROCEEDINGS, OR BEFORE ANY CLERK THEREOF OR PROTHONOTARY OR OTHER COURT OFFICIAL, AND TO CONFESS
JUDGMENT AGAINST BORROWER IN FAVOR OF ADMINISTRATIVE AGENT (FOR THE BENEFIT OF ALL LENDERS) IN THE
FULL AMOUNT DUE ON THIS AGREEMENT (INCLUDING PRINCIPAL, ACCRUED INTEREST AND ANY AND ALL CHARGES,
FEES AND COSTS) PLUS ATTORNEYS’ FEES EQUAL TO FIFTEEN PERCENT (15%) OF THE AMOUNT DUE (EXCEPT THAT
ADMINISTRATIVE AGENT SHALL NOT SEEK TO COLLECT AN AMOUNT IN EXCESS OF ITS ACTUAL ATTORNEYS’ FEES),
PLUS COURT COSTS, ALL WITHOUT PRIOR NOTICE OR OPPORTUNITY OF SUCH BORROWER FOR PRIOR HEARING. EACH
BORROWER AGREES AND CONSENTS THAT VENUE AND JURISDICTION SHALL BE PROPER IN THE CIRCUIT COURT OF
ANY COUNTY OF THE STATE OF ILLINOIS OR OF THE CITY OF CHICAGO, ILLINOIS, OR IN THE UNITED STATES
DISTRICT COURT FOR THE DISTRICT OF ILLINOIS. THE AUTHORITY AND POWER TO APPEAR FOR AND ENTER
JUDGMENT AGAINST A BORROWER SHALL NOT BE EXHAUSTED BY ONE OR MORE EXERCISES THEREOF, OR BY ANY
IMPERFECT EXERCISE THEREOF, AND SHALL NOT BE EXTINGUISHED BY ANY JUDGMENT ENTERED PURSUANT THERETO;
SUCH AUTHORITY AND POWER MAY BE EXERCISED ON ONE OR MORE OCCASIONS FROM TIME TO TIME, IN THE SAME
OR DIFFERENT JURISDICTIONS, AS OFTEN AS ADMINISTRATIVE AGENT SHALL DEEM NECESSARY, CONVENIENT, OR
PROPER.

     Section 12.19 Reinstatement. This Agreement shall remain in full force and effect and
continue to be effective should any petition or other proceeding be filed by or against any Credit
Party for liquidation or reorganization, should any Credit Party become insolvent or make an
assignment for the benefit of any creditor or creditors or should an interim receiver, receiver,
receiver and manger or trustee be appointed for all or any significant part of any Credit Party’s
assets, and shall continue to be effective or to be reinstated, as the case may be, if at any time
payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the
Obligations, whether as a fraudulent conveyance, preference or otherwise, all as though such
payment or performance had not been made. In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced
only by such amount paid and not so rescinded, reduced, restored or returned.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

Credit and Security Agreement

55

 

     IN WITNESS WHEREOF, intending to be legally bound, and intending that this document constitute
an instrument executed and delivered under seal, the parties hereto have caused this Agreement to
be duly executed under seal by their respective authorized officers as of the day and year first
above written.

BORROWERS:

ALSIUS CORPORATION

	 	 	 	 	 
	By:

	 	/s/ William Worthen
	 	 
	 

	 	 	 	 
	Name:

	 	William Worthen	 	 
	Title:

	 	CEO	 	 

Address:

15770 Laguna Canyon Road

Suite 150

Irvine, CA 92618

Attn: Brett Scott

Facsimile: (___) ________

Email: _________________

AGENT:

MERRILL LYNCH CAPITAL,

a division of Merrill Lynch Business Financial Services Inc.,

as Administrative Agent and a Lender

	 	 	 	 	 
	By:

	 	/s/ Chris York
	 	 
	 

	 	 	 	 
	Name:

	 	Chris York	 	 
	Title:

	 	VP	 	 

Address:

222 N. LaSalle Street, 16th Floor

Chicago, Illinois 60601

Attn: Account Manager for MLC-HCF Alsius Corporation transaction

Facsimile: (866) 231-8408

E-Mail: MLC_HCF_ABL1@ml.com

With copies to:

Merrill Lynch Capital

222 N. LaSalle Street, 16th Floor

Chicago, Illinois 60601

Attn: Group Senior Transaction Attorney, Healthcare Finance

Facsimile Number: (312) 499-3245

Merrill Lynch Capital

7700 Wisconsin Ave., Suite 400

Bethesda, Maryland 20814

Attn: Group Senior Transaction Attorney, Healthcare Finance

Facsimile Number: (866) 341-9053

Signature Page to Credit and Security Agreement

1

 

     Payment Account Designation:

LaSalle Bank

200 West Monroe

Chicago, IL 60606

ABA #: 071000505

Account Name: MLBFS Healthcare Finance

Account #: 5800395088

Attention: Alsius Corporation

LENDERS:

MERRILL LYNCH CAPITAL,

a division of Merrill Lynch Business Financial Services Inc.,

as Lender

	 	 	 	 	 
	By:

	 	/s/ Chris York
	 	 
	 

	 	 	 	 
	Name:

	 	Chris York	 	 
	Title:

	 	VP	 	 

Address:

222 N. LaSalle Street, 16th Floor

Chicago, Illinois 60601

Attn: Account Manager for MLC-HCF Alsius Corporation transaction

Facsimile: (866) 231-8408

E-Mail: MLC_HCF_ABL1@ml.com

With copies to:

Merrill Lynch Capital

222 N. LaSalle Street, 16th Floor

Chicago, Illinois 60601

Attn: Group Senior Transaction Attorney, Healthcare Finance

Facsimile Number: (312) 499-3245

Merrill Lynch Capital

7700 Wisconsin Ave., Suite 400

Bethesda, Maryland 20814

Attn: Group Senior Transaction Attorney, Healthcare Finance

Facsimile Number: (866) 341-9053

Signature Page to Credit and Security Agreement

2

 

ANNEXES, EXHIBITS, RIDERS AND SCHEDULES

	 	 	 
	ANNEXES
	 	 
	 
	 	 
	Annex A

	 	Commitment Annex
	 
	 	 
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit A

	 	[RESERVED]
	Exhibit B

	 	Compliance Certificate
	Exhibit C

	 	[RESERVED]
	Exhibit D

	 	Notice of Borrowing
	Exhibit E

	 	Payment Notification
	Exhibit F

	 	Products
	Exhibit G

	 	Reaffirmation Agreement
	 
	 	 
	RIDERS
	 	 
	 
	 	 
	Medical Device Rider
	 
	 	 
	SCHEDULES
	 	 
	 
	 	 
	Schedule 2.1

	 	Amortization Schedule
	Schedule 3.1

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

	 	Capitalization
	Schedule 3.6

	 	Litigation
	Schedule 3.15

	 	Consummation of Financing Documents; Broker
	Schedule 3.17

	 	Material Contracts
	Schedule 3.18

	 	Environmental Compliance
	Schedule 3.19

	 	Intellectual Property
	Schedule 3.24

	 	Warning Letters, Recalls, Etc...
	Schedule 4.4

	 	Insurance
	Schedule 5.1

	 	Permitted Indebtedness; Contingent Obligations
	Schedule 5.2

	 	Permitted Liens
	Schedule 5.7

	 	Permitted Investments
	Schedule 5.8

	 	Affiliate Transactions
	Schedule 5.11

	 	Business Description
	Schedule 5.14

	 	Deposit Accounts and Securities Accounts
	Schedule 7.4

	 	Post-Closing Obligations
	Schedule 9.1

	 	Collateral
	Schedule 9.2

	 	Location of Collateral

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

 

 

       Annex A to Credit and Security Agreement (Commitment Annex)

	 	 	 	 	 	 	 	 	 
	 	 	Term Loan	 	Term Loan
	 	 	Commitment	 	Commitment
	Lender	 	Amount	 	Percentage
	Merrill Lynch Capital

	 	$	8,000,000	 	 	 	100	%

Annex A to Credit and Security Agreement (Commitment Annex)

 

 

      Exhibit B to Credit and Security Agreement (Compliance Certificate)

COMPLIANCE CERTIFICATE

Date: ___, ___

     This certificate is given by ___, a Responsible Officer of Alsius
Corporation (“Borrower Representative”), pursuant to that certain Credit and Security Agreement
dated as of February ___, 2007 among Borrower Representative, and any additional Borrower that may
be a party thereto or from time to time be added thereto (collectively, “Borrowers”), Merrill Lynch
Capital, a division of Merrill Lynch Business Financial Services Inc., individually as a Lender and
as Administrative Agent, and the financial institutions or other entities from time to time parties
thereto, each as a Lender (as such agreement may have been amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”). Capitalized terms used herein
without definition shall have the meanings set forth in the Credit Agreement.

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

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

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

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

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

     (e) Except as noted on Schedule 3 attached hereto, the undersigned has no knowledge of
any federal or state tax liens having been filed against the Borrowers, Guarantors or any
Collateral;

     (f) Except as noted on Schedule 3 attached hereto, the undersigned has no knowledge of
any failure of the Borrowers or Guarantors to make required payments of withholding or other tax
obligations of the Borrowers or Guarantors during the accounting period to which the attached
statements pertain or any subsequent period.

     (g) If the Credit Agreement contemplates a lien on the Deposit Accounts and Securities
Accounts of the Borrowers and/or Guarantors in favor of Administrative Agent, Schedule 4
attached hereto contains a complete and accurate statement of all Deposit Accounts and Securities
Accounts maintained by Borrowers or Guarantors;

     (h) Except as described in the Credit Agreement or in Schedule 5 attached hereto, the
undersigned has no knowledge of any current, pending or threatened:

          (i) Litigation against the Borrowers or Guarantors

Exhibit B to Credit and Security Agreement (Compliance Certificate)

1

 

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

          (iii) default by Borrowers or Guarantors under any Material Contract to which either of them
is a party; or

          (iv) default by any Credit Party under any Material Contract to which it is a party; and

     (i) Except as noted on Schedule 6 attached hereto, no Borrower has acquired, by
purchase, by the approval or granting of any application for registration (whether or not such
application was previously disclosed to Administrative Agent by Borrowers) or otherwise, any
Intellectual Property that is registered with any United States or foreign Governmental Authority,
or has filed with any such United States or foreign Governmental Authority, any new application for
the registration of any Intellectual Property, or acquired rights under a license as a licensee
with respect to any such registered Intellectual Property (or any such application for the
registration of Intellectual Property) owned by another Person, that has not previously been
reported to Administrative Agent on Schedule 3.19 to the Credit Agreement or any
Schedule 6 to any previous Compliance Certificate delivered by Borrower Representative to
Administrative Agent.

Exhibit B to Credit and Security Agreement (Compliance Certificate)

2

 

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

	 	 	 	 	 	 	 	 	 
	 	 	Sincerely,	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Schedules to Compliance Certificate

     Schedule 1 – Non-Compliance with Covenants

     Schedule 2 – Business Locations and Names of Borrowers and Guarantors

     Schedule 3 – Tax Liens; Unpaid Tax or Withholding Obligations

     Schedule 4 – List of all Deposit Accounts and Securities Accounts of Borrowers and Guarantors

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

     Schedule 6 – Newly Acquired Intellectual Property and Intellectual Property Licenses

Schedules to Compliance Certificate of Credit and Security Agreement

 

 

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

BORROWER REPRESENTATIVE

Date: ___, ___

     This certificate is given by ___, a Responsible Officer of Alsius Corporation
(“Borrower Representative”), pursuant to Section 2.1(b)(i) of that certain Credit and Security
Agreement dated as of February ___, 2007 among Borrower Representative and any additional Borrower
that may be a party thereto or from time to time be added thereto (collectively, “Borrowers”), the
Lenders from time to time party thereto and Merrill Lynch Capital, a division of Merrill Lynch
Business Financial Services Inc., as Administrative Agent for Lenders (as such agreement may have
been amended, restated, supplemented or otherwise modified from time to time the “Credit
Agreement”). Capitalized terms used herein without definition shall have the meanings set forth in
the Credit Agreement.

     The undersigned Responsible Officer hereby gives notice to Administrative Agent of Borrower
Representative’s request to on February ___, 2007 borrow Eight Million Dollars ($8,000,000) of the
Term Loan.

     The undersigned officer hereby certifies that, both before and after giving effect to the
request above (a) each of the conditions precedent set forth in Section 7.1 and 7.2 have been
satisfied, (b) all of the representations and warranties contained in the Credit Agreement and the
other Financing Documents are true, correct and complete as of the date hereof, except to the
extent such representation or warranty relates to a specific date, in which case such
representation or warranty is true, correct and complete as of such earlier date, and (c) no
Default or Event of Default has occurred and is continuing on the date hereof.

     IN WITNESS WHEREOF, the undersigned officer has executed and delivered this certificate this
___day of February ___, 2007.

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:
	 	Authorized Signatory for Borrower Representative

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

 

 

      Exhibit E to Credit and Security Agreement (Payment Notification)

BORROWER REPRESENTATIVE

Date: ___, ___

     Reference is hereby made to the Credit and Security Agreement dated February ___, 2007 among
the undersigned and Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services
Inc., as Administrative Agent and the financial institutions party thereto. Capitalized terms used
here have the meanings ascribed thereto in the Credit Agreement.

     Please be advised that funds in the amount of $___will be wire transferred to
Administrative Agent on ___, 200_. Such funds shall constitute [an optional] [a mandatory]
prepayment of the Term Loans, with such prepayments to be applied in the manner specified in
Section 2.1(a)(iii). [Such mandatory prepayment is being made pursuant to Section ___of
the Credit Agreement.]

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

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

     Wire Instructions:

	 	 	 
	Bank Name:

	 	 LaSalle Bank National Association
	 

	 	 200 West Monroe
	 

	 	 Chicago, IL 60606
	ABA#

	 	 071000505
	Account Name:

	 	 MLBFS Healthcare Finance
	Account #:

	 	 5800395088
	Reference:

	 	 Alsius Corporation
	Address:

	 	 Merrill Lynch Capital
	 

	 	 222 N. LaSalle Street, 16th Floor
	 

	 	 Chicago, IL 60601

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

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:
	 	 Authorized Signatory for Borrower
Representative

Exhibit E to Credit and Security Agreement (Payment Notification)

 

 

      Exhibit F to Credit and Security Agreement (Products)

[See attached]

Exhibit F to Credit and Security Agreement (Products)

 

 

      Exhibit G to Credit and Security Agreement (Reaffirmation Agreement)

[See attached]

Exhibit G to Credit and Security Agreement (Reaffirmation Agreement)

 

 

            Schedule 2.1 — Amortization Schedule

	 	 	     Commencing on September 1, 2007, and continuing on the first day of each calendar month
thereafter, Borrowers shall pay to Administrative Agent for distribution to Lenders in accordance
with their Pro Rata Shares, in addition to the interest accrued under the Term Loan, an amount
equal to the “Amortization Payment” (defined below) as an amortization payment in respect of each
advance under the Term Loan. The term “Amortization Payment” shall mean a monthly principal
payment based upon a thirty (30) month straight-line amortization of the total outstanding
principal amount of the Term Loan on September 1, 2007 in equal monthly principal payments.
Notwithstanding anything to the contrary contained in the foregoing, the entire remaining
outstanding principal balance of each such advance under the Term Loan shall mature and be due and
payable on Feburary 1, 2010.

Schedule 2.1 to Credit and Security Agreement — Amortization Schedule

 

 

      Schedule 7.4 – Post-Closing Obligations

Schedule 7.4 to Credit and Security Agreement — Post-Closing Obligations

 

 

      Schedule 9.1 – Collateral

The Collateral consists of all of Borrower’s right, title and interest in and to the following,
whether now owned or hereafter created, acquired or arising, and all proceeds and products of the
following:

     All goods, Accounts (including Health-Care Insurance Receivables), Equipment, Inventory,
Goods, contract rights or rights to payment of money, leases, license agreements, franchise
agreements, General Intangibles including all Payment Intangibles and Software (except as provided
below), Commercial Tort Claims, Documents, Instruments (including any Promissory Notes), Chattel
Paper (whether Tangible Chattel Paper or Electronic Chattel Paper), cash, Deposit Accounts,
Securities Accounts, Fixtures, Letter-of-Credit Rights (whether or not the letter of credit is
evidenced by a writing), Securities, and all other Investment Property, Supporting Obligations, and
Financial Assets, whether now owned or hereafter acquired, wherever located; and

     All of Borrowers’ books relating to the foregoing, and any and all claims, rights and
interests in any of the above and all substitutions for, additions, attachments, accessories,
accessions and improvements to and replacements, products, Proceeds and insurance proceeds of any
or all of the foregoing.

     Notwithstanding the foregoing, the Collateral does not include any of the following, whether
now owned or hereafter acquired (the “Excluded Property”), except to the extent that it is
necessary under applicable Law to have a security interest in any of the Excluded Property in order
to have a perfected lien and security interest in and to the “IP Proceeds” defined below: (i) any
rights in or ownership of: any copyright rights, copyright applications, copyright registrations
and like protections in each work of authorship and derivative work, whether published or
unpublished, any patents, patent applications and like protections, including improvements,
divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same,
any trademarks, trade names, trade styles, service marks, logos and other business identifiers and,
to the extent permitted under applicable law, any applications therefor, whether registered or not,
and the goodwill of the business of Borrower connected with and symbolized thereby, technology,
know-how, operating manuals, trade secret rights, rights to unpatented inventions, (ii) exclusive
inbound licenses relating to any of the foregoing and (iii) any claims for damage by way of any
past, present, or future infringement of any of the foregoing; provided, however, the Collateral
shall include all IP Proceeds. The term “IP Proceeds” means all Accounts, General Intangibles,
license and royalty fees and other revenues, Proceeds, income or rights to payment arising out of
or relating to the use, sale, licensing, financing or disposition of any of the Excluded Property
(nothing herein implying the secured party’s consent to any such sale, licensing, financing or
disposition).

     Pursuant to the terms of a certain negative pledge arrangement with Administrative Agent, each
Borrower has agreed not to encumber any of the Excluded Property without the Required Lender’s
prior written consent.

Schedule 9.1 to Credit and Security Agreement — Collateral

 

 

      Medical Device Rider

MEDICAL DEVICE RIDER

     This Medical Device Rider is made a part of and is incorporated by reference into that certain
Credit and Security Agreement (the “Credit Agreement”) dated February ___, 2007 by and among Alsius
Corporation, a California corporation, and any additional Borrower that may hereafter be added to
this Agreement (individually as a Borrower and collectively as Borrowers), MERRILL LYNCH CAPITAL, a
division of Merrill Lynch Business Financial Services Inc., individually as a Lender, and as
Administrative Agent, and the financial institutions or other entities from time to time parties
hereto, each as a Lender.

     In consideration of the premises and the agreements, provisions and covenants herein contained
and in the Credit Agreement, Borrowers, Lenders and Administrative Agent agree as follows:

     Section 1 Definitions. All capitalized terms not otherwise defined in this Rider shall have
the meanings given them in the Credit Agreement.

     Section 1.1 Additional Defined Terms. The following additional definitions are hereby
appended to Section 1.1 of the Credit Agreement:

     “Correction” means repair, modification, adjustment, relabeling, destruction or inspection
(including patient monitoring) of a product without its physical removal to some other location.

     “Device Application” means a 510(k) premarket notification or premarket approval (PMA)
application, as appropriate, as those terms are defined in the FDCA.

     “FDA” means the Food and Drug Administration of the United States of America or any successor
entity thereto.

     “FDCA” means the Federal Food, Drug, and Cosmetic Act, as amended, 21 U.S.C. Section 301 et
seq. and all regulations promulgated thereunder, including but not limited to, 21 C.F.R. Parts 803,
806, 807, 812, and 820.

     “Good Manufacturing Practices” means current good manufacturing practices, as set forth in the
Quality System Regulation, 21 C.F.R. Part 820.

     “Market Withdrawal” means a Person’s Removal or Correction of a distributed product which
involves a minor violation that would not be subject to legal action by the FDA or which involves
no violation, e.g., normal stock rotation practices, routine equipment adjustments and repairs,
etc.

     “Permits” means registrations, listings, licenses, certificates, accreditations, product
clearances or approvals, provider numbers or provider authorizations, marketing authorizations,
other authorizations, registrations, permits, consents and approvals or exemptions thereto required
in connection with the conduct of any Borrower’s or any Subsidiary’s business or to comply with any
applicable Laws, including, without limitation, establishment registrations, device listings,
Investigational Device Exemptions (IDEs), 510(k) exemptions, 510(k) clearances, and PMA approvals,
as those terms are defined in the FDCA and implementing regulations, and those issued by State
governments for the conduct of any Borrower’s or any Subsidiary’s business.

     “Products” means any products manufactured, sold, developed, tested or marketed by any
Borrower or any of its Subsidiaries, including without limitation, those products set forth on
Exhibit F.

     “Recall” means a Person’s Removal or Correction of a marketed product that the FDA considers
to be in violation of the laws it administers and against which the FDA would initial legal action,
e.g., seizure.

Medical Device Rider

 

 

     “Removal” means the physical removal of a device from its point of use to some other location
for repair, modification, adjustment, relabeling, destruction, or inspection.

     “Required Permit” means a Permit (a) issued or required under Laws applicable to the business
of any Borrower or any of its Subsidiaries or necessary in the manufacturing, importing, exporting,
possession, ownership, warehousing, marketing, promoting, sale, labeling, furnishing, distribution
or delivery of goods or services under Laws applicable to the business of any Borrower or any of
its Subsidiaries or any Device Application (including without limitation, at any point in time, all
licenses, approvals and permits issued by the FDA or any other applicable Governmental Authority
necessary for the testing, manufacture, marketing or sale of any Product by any applicable
Borrower(s) as such activities are being conducted by such Borrower(s) with respect to such Product
at such time), and (b) issued by any Person from which Borrower or any of its Subsidiaries has, as
of the Closing Date, received an accreditation.

     “Stock Recovery” means a Person’s Removal or Correction of a product that has not been
marketed or that has not left the direct control of the firm, i.e., the product is located on the
premises owned by, or under the control of, the firm and no portion of the lot has been released
for sale or use.

     Section 2 Additional Representations and Warranties. The following is hereby appended to the
Credit Agreement as new Section 3.24:

     Section 3.24 Compliance of Products.

          (a) Each Credit Party:

          (i) has obtained all Required Permits, or has contracted with third parties
holding Required Permits, necessary for compliance with all Laws, including the FDCA, and
all such Required Permits are current;

          (ii) has been operating in compliance with the FDCA, including but not limited to,
reporting to FDA of device malfunctions and/or device-related serious injuries or deaths
pursuant to 21 C.F.R. 803 and reporting to FDA of corrections or removals pursuant to 21
C.F.R. 806;

          (iii) warrants and represents that none of its officers, directors, employees,
shareholders, their agents or affiliates has made an untrue statement of material fact or
fraudulent statement to the FDA or failed to disclose a material fact required to be
disclosed to the FDA, committed an act, made a statement, or failed to make a statement that
could reasonably be expected to provide a basis for the FDA to invoke its policy respecting
“Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities,” set forth in
56 Fed. Regulation 46191 (September 10, 1991);

          (iv) has not received any written notice that any Governmental Authority, including
without limitation the FDA, the Office of the Inspector General of HHS or the United States
Department of Justice has commenced or threatened to initiate any action against a Credit
Party, any action to enjoin a Credit Party, their officers, directors, employees,
shareholders or their agents and Affiliates, from conducting their businesses at any
facility owned or used by them or for any material civil penalty, injunction, seizure or
criminal action;

          (v) except as set forth on Schedule 3.24, has not received from the FDA at
any time since January 1, 2003, a Warning Letter, Form FDA-483, “Untitled Letter,” other
correspondence or notice setting forth allegedly objectionable observations or alleged
violations of laws and regulations enforced by the FDA, including but not limited to the
FDCA, or any comparable correspondence from any state or local authority responsible for
regulating medical device products and establishments, or any comparable correspondence from
any foreign counterpart of the FDA, or any comparable correspondence from any foreign
counterpart of any state or local authority with regard to any Product or the manufacture,
processing, packing, or holding thereof; and

Medical Device Rider

 

 

          (vi) except as set forth on Schedule 3.24, has not engaged in any Recalls,
Market Withdrawals, or other forms of product retrieval from the marketplace of any Products
since January 1, 2003.

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

     (c) With respect to Products:

          (i) All Products are listed on Exhibit F and Borrowers have delivered to
Administrative Agent on or prior to the Closing Date all Required Permits relating to such
Products issued or outstanding as of the Closing Date; provided, however, that, if after the
Closing Date, any Borrower wishes to manufacture, sell, develop, test or market any new
Product, Borrowers shall give prior written notice to Administrative Agent of such intention
(which shall include a brief description of such Product, plus copies of all Required
Permits relating to such new Product and/or the applicable Borrower’s manufacture, sale,
development, testing or marketing thereof issued or outstanding as of the date of such
notice) along with a copy of an amended and restated Exhibit F; and further, provided, that,
if Borrower shall at any time obtain any new or additional Required Permits from the FDA or
parallel state or local authorities, or foreign counterparts of the FDA or parallel state or
local authorities, with respect to any Product which has previously been disclosed to
Administrative Agent, Borrower shall promptly give written notice to Administrative Agent of
such new or additional Required Permits, along with a copy thereof);

          (ii) Each Product that is offered for sale in the United States is not adulterated or
misbranded within the meaning of the FDCA;

          (iii) Each Product is not an article prohibited from introduction into interstate
commerce under the provisions of Sections 510(k) or 515 of the FDCA;

          (iv) Each Product has been and/or shall be manufactured, imported, possessed, owned,
warehoused, marketed, promoted, sold, labeled, furnished, distributed and marketed in
accordance with all applicable Permits and Laws, including but not limited to the FDCA;

          (v) Each Product has been and/or shall be designed and manufactured in accordance with
Good Manufacturing Practices as defined in the Quality System Regulation (21 C.F.R. Part
820);

          (vi) Without limiting the generality of Section 3.24(a)(i) above, with respect to any
Product being tested or manufactured by any Borrower, Borrower has received, and such
Product shall be the subject of, all Required Permits needed in connection with the testing
or manufacture of such Product as such testing is currently being conducted by or on behalf
of Borrower, and Borrowers have not received any notice from any applicable Government
Authority, specifically including the FDA, that such Government Authority is conducting an
investigation or review of (A) Borrowers’ manufacturing facilities and processes for such
Product which have disclosed any material deficiencies or violations of Laws (including
Healthcare laws) and/or the Required Permits related to the manufacture of such Product, or
(B) any such Required Permit or that any such Required Permit has been revoked or withdrawn,
nor has any such Governmental Authority issued any order or recommendation stating that the
development, testing and/or manufacturing of such Product by Borrower should cease;

Medical Device Rider

 

 

          (vii) Without limiting the generality of Section 3.24(a)(i) above, with respect to any
Product marketed or sold by any Borrower, Borrower shall have received, and such Product
shall be the subject of, all Required Permits needed in connection with the marketing and
sales of such Product as currently being marketed or sold by Borrower, and Borrowers have
not received any notice from any applicable Governmental Authority, specifically including
the FDA, that such Governmental Authority is conducting an investigation or review of any
such Required Permit or approval or that any such Required Permit has been revoked or
withdrawn, nor has any such Governmental Authority issued any order or recommendation
stating that such marketing or sales of such Product cease or that such Product be withdrawn
from the marketplace; and

          (viii) Borrowers have not (since the Closing Date) experienced any significant failures
in their manufacturing of any Product such that the amount of such Product successfully
manufactured by Borrower in accordance with all specifications thereof and the Required
Payments related thereto in any calendar quarter shall decrease significantly with respect
to the quantities of such Product produced in the prior calendar quarter.

     Section 3 Additional Affirmative Covenants. The following is hereby appended to the Credit
Agreement as new Section 4.15:

     Section 4.15 Covenants Regarding Products and Compliance with Required Permits

          (a) Without limiting the generality of Section 4.5, in connection with the development,
testing, manufacture, marketing or sale of each and any Product by any Borrower, Borrowers
shall comply fully and completely in all respects with all Required Permits at all times
issued by any Government Authority, specifically including the FDA, with respect to such
development, testing, manufacture, marketing or sales of such Product by Borrower as such
activities are at any such time being conducted by Borrowers.

          (b) Without limiting the generality of Section 4.15 above, Borrowers shall immediately
and in any case within three (3) Business Days give written notice to Administrative Agent
upon any Borrower becoming aware that any of the representations and warranties set forth in
Section 3.24 with respect to any Product have become incorrect in any respect (provided
that, for the avoidance of doubt, the giving of such notice shall not cure or result in the
automatic waiver of any Default or Event of Default that may have resulted from such breach
of such representation or warranty).

     Section 4 Permitted Investments. The definition of Permitted Investments as used in the
Credit Agreement is hereby modified to include the following: purchases by Borrowers of the rights
to test, develop, manufacture, sell or market any new pharmaceutical, drug or medical device
(and/or any Intellectual Property related thereto) that will upon such purchase become a Product of
Borrowers (provided that, nothing in the foregoing shall be interpreted or construed to contradict
or limit any of Borrowers’ obligations under Section 3.24 of the Credit Agreement, particularly
including without limitation the obligations of Borrowers to give prior written notice to
Administrative Agent of Borrowers’ intentions to begin testing, developing, manufacturing, selling
or marketing any new Product).

     Section 5 Events of Default. In addition to the events listed in Section 10.1, the occurrence
of any of the following conditions and/or events, whether voluntary or involuntary, by operation of
law or otherwise, shall constitute an “Event of Default” under the Credit Agreement:

          (a) the institution of any proceeding by FDA or similar Governmental Authority to order the
withdrawal of any Product or Product category from the market or to enjoin Credit Party or any
representative of a Credit Party from manufacturing, marketing, selling or distributing any Product
or Product category;

          (b) the institution of any action or proceeding by any FDA or any other Governmental Authority
to revoke, suspend, reject, withdraw, limit, or restrict any Required Permit held by a Credit Party
or any representative of a Credit Party;

Medical Device Rider

 

 

          (c) the commencement of any enforcement action against any Credit Party by FDA or any other
Governmental Authority;

          (d) the recall of any Products from the market, the voluntary withdrawal of any Products from
the market, or actions to discontinue the sale of any Products;

          (e) a change in Law, including a change in FDA policies or procedures, occurs which could
reasonably be expected to have a Material Adverse Effect; or

          (f) the termination of any agreements with manufacturers that supply any Products or any
components of any Products or any changes to any agreements with manufacturers that supply any
Products or any components of any Products that could reasonably be expected to have a Material
Adverse Effect.

     IN WITNESS WHEREOF, intending to be legally bound, and intending that this document constitute
an instrument executed and delivered under seal, the undersigned have executed this document under
seal as of the date of the Credit Agreement.

BORROWER:

ALSIUS CORPORATION

	 	 	 	 	 
	By:

	 	/s/ William Worthen
	 	 
	 

	 	 	 	 
	Name:

	 	William Worthen	 	 
	Title:

	 	CEO	 	 

AGENT:

MERRILL LYNCH CAPITAL,

a division of Merrill Lynch Business Financial Services Inc.,

as Administrative Agent and a Lender

	 	 	 	 	 
	By:

	 	/s/ Chris York
	 	 
	 

	 	 	 	 
	Name:

	 	Chris York	 	 
	Title:

	 	VP	 	 

LENDERS:

MERRILL LYNCH CAPITAL,

a division of Merrill Lynch Business Financial Services Inc.,

as Lender

	 	 	 	 	 
	By:

	 	/s/ Chris York
	 	 
	 

	 	 	 	 
	Name:

	 	Chris York	 	 
	Title:

	 	VP	 	 

Signature Page to Medical Device Riderexv10w12

 

Exhibit 10.12

FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Agreement”) is entered into this
11th day of May, 2007, by and between ALSIUS CORPORATION., a California corporation
(“Borrower”), and MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services
Inc., individually as a Lender, and as Administrative Agent (“Administrative Agent”).

Recitals

     A. Administrative Agent and Borrower have entered into that certain Credit and Security
Agreement dated as of February 22, 2007 (as the same may from time to time be amended, modified,
supplemented or restated, the “Credit Agreement”). Administrative Agent has extended credit to
Borrower for the purposes permitted in the Credit Agreement.

     B. Borrower has requested that Administrative Agent amend the Credit Agreement to (i) increase
the amount that can be borrowed under the Term Loan, and (ii) make certain other revisions to the
Loan Agreement as more fully set forth herein.

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

Agreement

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

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

     2. Amendments to Credit and Security Agreement.

          2.1 Section 1.1 (Certain Defined Terms).

          (a) The following term and its respective definition set forth in Section 1.1 is amended in
its entirety and replaced with the following:

     “Term Loan Commitment” means the sum of each Lender’s Term Loan Commitment Amount,
which is equal to Ten Million Dollars ($10,000,000).

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

     “Subsequent Financing” means receipt by the Principal Borrower of Subordinated Debt
from the Principal Borrower’s investors of not less than $2,000,000,

 

 

and receipt by the Administrative Agent of a Subordination Agreement duly executed by
the parties providing the Subordinated Debt and the Borrowers.

          “Tranche One Advance” has the meaning set forth in Section 2.1(a)(i).

          “Tranche Two Advance” has the meaning set forth in Section 2.1(a)(i).

          2.2 Section 2.1 (Term Loan).

          (a) Section 2.1(a)(i) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing it with the following:

          (i) Term Loan Amounts. On the terms and subject to the conditions set forth herein,
the Lenders hereby agree to make to Borrowers a term loan in an original principal amount
equal to the Term Loan Commitment (“Term Loan”). Each Lender’s obligation to fund the Term
Loan shall be limited to such Lender’s Term Loan Commitment Percentage, and no Lender shall
have any obligation to fund any portion of any Term Loan required to be funded by any other
Lender, but not so funded. No Borrower shall have any right to reborrow any portion of the
Term Loan that is repaid or prepaid from time to time. The Term Loan shall be funded in two
(2) tranches. The initial tranche shall be advanced on the Closing Date in an aggregate
amount not to exceed Eight Million Dollars ($8,000,000) (the “Tranche One Advance”). The
second tranche shall be advanced no later than May 11, 2007 in an aggregate amount not to
exceed Two Million Dollars ($2,000,000) (the “Tranche Two Advance”). Borrowers shall
deliver to Administrative Agent a Notice of Borrowing with respect to the proposed Term Loan
advance, such Notice of Borrowing to be delivered no later than noon (Chicago time) two (2)
Business Days prior to the funding date of the applicable Term Loan advance.

          (b) Section 2.1(a)(ii)(A) of the Credit Agreement is hereby amended by deleting it in its
entirety and replacing it with the following:

               (A) There shall become due and payable, and Borrowers shall repay the Tranche One
Advance through, scheduled payments as set forth on Schedule 2.1 attached hereto.
There shall come due and payable, and Borrower shall repay the Tranche Two Advance upon the
earlier to occur of (a) the Ithaka Merger Transaction or (b) the Subsequent Financing.
Notwithstanding the above, the outstanding principal amount of the Term Loan shall become
immediately due and payable in full on the Termination Date.

          2.3 Section 2.2 (Interest, Interest Calculations and Certain Fees). The third sentence of
Section 2.2(d) is hereby amended in its entirety and replaced with the following:

Notwithstanding the above, the prepayment fee provided for in this Section 2.2(d) shall not
apply to or be assessed upon (i) any timely repayment of the Tranche Two Advance

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made by Borrowers pursuant to Section 2.1(a)(ii)(A), or (ii) any prepayment made by
Borrowers pursuant to Section 2.1(a)(ii)(B)(i) (relating to casualty proceeds).

          2.4 Commitment Annex. The Commitment Annex attached to the Credit Agreement as Annex
A is hereby replaced in its entirety with the Commitment Annex attached hereto as Annex
A.

          2.5 Notice of Borrowing. The Notice of Borrowing attached to the Credit Agreement is hereby
replaced in its entirety with the Notice of Borrowing attached hereto as Exhibit D.

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

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

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

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

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

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

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

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

     4. Limitation of Amendments.

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

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

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

     6. Effectiveness. This Agreement shall be deemed effective upon (a) the due execution and
delivery to Administrative Agent of this Agreement by each party hereto, (b) Borrower’s payment of
a non-refundable amendment fee in an amount equal to One Hundred Fifty Thousand Dollars ($150,000)
(the “Amendment Fee”); provided, however, that such Amendment Fee shall not constitute a
“prepayment” of the Term Loan for purposes of Section 2.2(d) of the Credit Agreement, (c)
Administrative Agent’s receipt of the Acknowledgment of Amendment and Reaffirmation of
Subordination Agreement substantially in the form attached hereto as Schedule 1, duly executed and
delivered by Borrower and each Subordinated Creditor named therein, (d) Administrative Agent’s
receipt of the Amended and Restated Term Note substantially in the form attached hereto as Schedule
2, duly executed and delivered by Borrower, (e) Administrative Agent’s receipt of all necessary
approvals of the shareholders and the board of directors of the Borrowers with regard to the
increase in the Term Loan amount and the other modifications to the Credit Agreement described
above, (f) Administrative Agent’s receipt of an opinion letter from Borrowers’ counsel restating
(in light of the increase of the Term Loan amount and other modifications of the Credit Agreement
described above) the opinions rendered by Borrowers’ counsel as of the Closing Date, and (g)
payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of
this Agreement.

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

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

[Signature page follows.]

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

	 	 	 	 	 
	 	BORROWER:

ALSIUS CORPORATION

 	 
	 	By:  	     /s/ William Worthen
 	 
	 	 	Name:  	William Worthen 	 
	 	 	Title:  	CEO 	 
	 
	 	ADMINISTRATIVE AGENT:

MERRILL LYNCH CAPITAL, a division of

 Merrill Lynch Business Financial Services Inc.,

 as Administrative
Agent and a Lender

 	 
	 	By:  	      /s/ Maurice Amsellem
 	 
	 	 	Name:  	Maurice Amsellem 	 
	 	 	Title:  	VP 	 
	 

Schedule 2

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