Document:

EX-10.4

 

Exhibit 10.4

REVOLVING CREDIT

AND

SECURITY AGREEMENT

PNC BANK, NATIONAL ASSOCIATION

(AS LENDER AND AS AGENT)

AND

JPMORGAN CHASE BANK, N.A.

BANK OF AMERICA, N.A.

THE CIT GROUP/BUSINESS CREDIT, INC.

LASALLE BUSINESS CREDIT LLC

AND

WELLS FARGO FOOTHILL, LLC

(AS CO-DOCUMENTATION AGENTS)

AND

PNC CAPITAL MARKETS LLC AND J.P. MORGAN SECURITIES INC.

(AS CO-LEAD ARRANGERS AND JOINT BOOKRUNNERS)

WITH

THE ENTITIES LISTED ON ANNEX A

(AS BORROWERS)

SEPTEMBER 18, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	I	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	1.1.	 	Accounting Terms	 	 	1	 
	 
	 	1.2.	 	General Terms	 	 	2	 
	 
	 	1.3.	 	Uniform Commercial Code Terms	 	 	28	 
	 
	 	1.4.	 	Certain Matters of Construction	 	 	28	 
	 
	 	1.5.	 	Certificates	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	II	 	ADVANCES, PAYMENTS	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2.1.	 	Revolving Advances	 	 	29	 
	 
	 	2.2.	 	Procedure for Borrowing Advances	 	 	30	 
	 
	 	2.3.	 	Disbursement of Advance Proceeds	 	 	33	 
	 
	 	2.4.	 	[Reserved]	 	 	33	 
	 
	 	2.5.	 	Maximum Advances	 	 	33	 
	 
	 	2.6.	 	Repayment of Advances	 	 	33	 
	 
	 	2.7.	 	Repayment of Excess Advances	 	 	34	 
	 
	 	2.8.	 	Statement of Account	 	 	34	 
	 
	 	2.9.	 	Letters of Credit	 	 	34	 
	 
	 	2.10.	 	Issuance of Letters of Credit	 	 	34	 
	 
	 	2.11.	 	Requirements for Issuance of Letter of Credit	 	 	35	 
	 
	 	2.12.	 	Disbursements, Reimbursement	 	 	35	 
	 
	 	2.13.	 	Repayment of Participation Advances	 	 	36	 
	 
	 	2.14.	 	Documentation	 	 	37	 
	 
	 	2.15.	 	Determination to Honor Drawing Request	 	 	37	 
	 
	 	2.16.	 	Nature of Participation and Reimbursement Obligations	 	 	37	 
	 
	 	2.17.	 	Indemnity	 	 	39	 
	 
	 	2.18.	 	Liability for Acts and Omissions	 	 	39	 
	 
	 	2.19.	 	Additional Payments	 	 	40	 
	 
	 	2.20.	 	Manner of Borrowing and Payment	 	 	40	 
	 
	 	2.21.	 	Mandatory Prepayments	 	 	42	 
	 
	 	2.22.	 	Use of Proceeds	 	 	43	 
	 
	 	2.23.	 	Defaulting Lender	 	 	43	 
	 
	 	2.24.	 	Increase of Maximum Revolving Amount	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	III	 	INTEREST AND FEES	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3.1.	 	Interest	 	 	44	 
	 
	 	3.2.	 	Letter of Credit Fees	 	 	45	 
	 
	 	3.3.	 	Facility Fee	 	 	46	 
	 
	 	3.4.	 	Fee Letter	 	 	46	 
	 
	 	3.5.	 	Computation of Interest and Fees	 	 	46	 
	 
	 	3.6.	 	Maximum Charges	 	 	46	 
	 
	 	3.7.	 	Increased Costs	 	 	46	 

i

 

	 	 	 	 	 	 	 	 	 
	 
	 	3.8.	 	Basis For Determining Interest Rate Inadequate or Unfair	 	 	47	 
	 
	 	3.9.	 	Capital Adequacy	 	 	48	 
	 
	 	3.10.	 	Replacement of Lenders	 	 	49	 
	 
	 	 	 	 	 	 	 	 
	IV	 	COLLATERAL: GENERAL TERMS	 	 	49	 
	 
	 	 	 	 	 	 	 	 
	 
	 	4.1.	 	Security Interest in the Collateral	 	 	49	 
	 
	 	4.2.	 	Perfection of Security Interest	 	 	50	 
	 
	 	4.3.	 	Disposition of Collateral	 	 	50	 
	 
	 	4.4.	 	Preservation of Collateral	 	 	51	 
	 
	 	4.5.	 	Ownership of Collateral	 	 	51	 
	 
	 	4.6.	 	Defense of Agent’s and Lenders’ Interests	 	 	52	 
	 
	 	4.7.	 	Books and Records	 	 	52	 
	 
	 	4.8.	 	Financial Disclosure	 	 	53	 
	 
	 	4.9.	 	Compliance with Laws	 	 	53	 
	 
	 	4.10.	 	Inspection of Premises; Inventory Appraisal	 	 	53	 
	 
	 	4.11.	 	Insurance	 	 	54	 
	 
	 	4.12.	 	Failure to Pay Insurance	 	 	55	 
	 
	 	4.13.	 	Payment of Taxes	 	 	55	 
	 
	 	4.14.	 	Payment of Leasehold Obligations	 	 	55	 
	 
	 	4.15.	 	Receivables	 	 	56	 
	 
	 	 	 	(a) Nature of Eligible Receivables	 	 	56	 
	 
	 	 	 	(b) Solvency of Customers	 	 	56	 
	 
	 	 	 	(c) Locations of Borrower	 	 	56	 
	 
	 	 	 	(d) Collection of Receivables	 	 	56	 
	 
	 	 	 	(e) Notification of Assignment of Receivables	 	 	56	 
	 
	 	 	 	(f) Power of Agent to Act on Borrowers’ Behalf	 	 	57	 
	 
	 	 	 	(g) No Liability	 	 	57	 
	 
	 	 	 	(h) Establishment of a Lockbox Account, Dominion Account	 	 	58	 
	 
	 	 	 	(i) Adjustments	 	 	58	 
	 
	 	4.16.	 	Inventory; Establishment of Perpetual Inventory System	 	 	58	 
	 
	 	4.17.	 	Maintenance of Equipment	 	 	58	 
	 
	 	4.18.	 	Exculpation of Liability	 	 	59	 
	 
	 	4.19.	 	Environmental Matters	 	 	59	 
	 
	 	4.20.	 	Financing Statements	 	 	61	 
	 
	 	4.21.	 	Intercreditor Agreement	 	 	61	 
	 
	 	4.22.	 	Securitization	 	 	61	 
	 
	 	 	 	 	 	 	 	 
	V	 	REPRESENTATIONS AND WARRANTIES	 	 	62	 
	 
	 	 	 	 	 	 	 	 
	 
	 	5.1.	 	Authority	 	 	62	 
	 
	 	5.2.	 	Formation and Qualification	 	 	62	 
	 
	 	5.3.	 	Survival of Representations and Warranties	 	 	62	 
	 
	 	5.4.	 	Tax Returns	 	 	63	 
	 
	 	5.5.	 	Financial Statements	 	 	63	 
	 
	 	5.6.	 	Corporate Name	 	 	64	 

ii

 

	 	 	 	 	 	 	 	 	 
	 
	 	5.7.	 	O.S.H.A. and Environmental Compliance	 	 	64	 
	 
	 	5.8.	 	Solvency; No Litigation, Violation, Indebtedness or Default	 	 	65	 
	 
	 	5.9.	 	Patents, Trademarks, Copyrights and Licenses	 	 	66	 
	 
	 	5.10.	 	Licenses and Permits	 	 	67	 
	 
	 	5.11.	 	Default of Indebtedness	 	 	67	 
	 
	 	5.12.	 	No Default	 	 	67	 
	 
	 	5.13.	 	No Burdensome Restrictions	 	 	67	 
	 
	 	5.14.	 	No Labor Disputes	 	 	67	 
	 
	 	5.15.	 	Margin Regulations	 	 	67	 
	 
	 	5.16.	 	Investment Company Act	 	 	67	 
	 
	 	5.17.	 	Disclosure	 	 	67	 
	 
	 	5.18.	 	Delivery of Acquisition Agreements	 	 	68	 
	 
	 	5.19.	 	Swaps	 	 	68	 
	 
	 	5.20.	 	Conflicting Agreements	 	 	68	 
	 
	 	5.21.	 	Application of Certain Laws and Regulations	 	 	68	 
	 
	 	5.22.	 	Business and Property of Borrowers	 	 	68	 
	 
	 	5.23.	 	Section 20 Subsidiaries	 	 	68	 
	 
	 	5.24.	 	Bailees of Prepaid Fuel Inventory	 	 	68	 
	 
	 	5.25.	 	Anti-Terrorism Laws	 	 	69	 
	 
	 	 	 	 	 	 	 	 
	VI	 	AFFIRMATIVE COVENANTS	 	 	69	 
	 
	 	 	 	 	 	 	 	 
	 
	 	6.1.	 	Payment of Fees	 	 	69	 
	 
	 	6.2.	 	Conduct of Business and Maintenance of Existence and Assets	 	 	69	 
	 
	 	6.3.	 	Violations	 	 	70	 
	 
	 	6.4.	 	Government Receivables	 	 	70	 
	 
	 	6.5.	 	Leverage Ratio	 	 	70	 
	 
	 	6.6.	 	Fixed Charge Coverage Ratio	 	 	70	 
	 
	 	6.7.	 	Execution of Supplemental Instruments	 	 	70	 
	 
	 	6.8.	 	Payment of Indebtedness	 	 	70	 
	 
	 	6.9.	 	Standards of Financial Statements	 	 	70	 
	 
	 	6.10.	 	Exercise and Maintenance of Rights	 	 	70	 
	 
	 	6.11.	 	Tax Shelter Provisions	 	 	71	 
	 
	 	6.12.	 	Bailment Locations of Prepaid Fuel Inventory	 	 	71	 
	 
	 	6.13.	 	Interest Rate Protection	 	 	71	 
	 
	 	6.14.	 	Mortgages	 	 	71	 
	 
	 	 	 	 	 	 	 	 
	VII	 	NEGATIVE COVENANTS	 	 	71	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7.1.	 	Merger, Consolidation, Acquisition and Sale of Assets	 	 	71	 
	 
	 	7.2.	 	Creation of Liens	 	 	73	 
	 
	 	7.3.	 	Guarantees	 	 	73	 
	 
	 	7.4.	 	Investments	 	 	73	 
	 
	 	7.5.	 	Loans	 	 	74	 
	 
	 	7.6.	 	Capital Expenditures	 	 	74	 
	 
	 	7.7.	 	Dividends	 	 	75	 

iii

 

	 	 	 	 	 	 	 	 	 
	 
	 	7.8.	 	Indebtedness	 	 	76	 
	 
	 	7.9.	 	Nature of Business	 	 	77	 
	 
	 	7.10.	 	Transactions with Affiliates	 	 	77	 
	 
	 	7.11.	 	Leases	 	 	77	 
	 
	 	7.12.	 	Subsidiaries	 	 	77	 
	 
	 	7.13.	 	Fiscal Year and Accounting Changes	 	 	78	 
	 
	 	7.14.	 	Pledge of Credit	 	 	78	 
	 
	 	7.15.	 	Amendment of Organizational Documents	 	 	78	 
	 
	 	7.16.	 	Compliance with ERISA	 	 	78	 
	 
	 	7.17.	 	Prepayment of Indebtedness	 	 	78	 
	 
	 	7.18.	 	Reserved	 	 	79	 
	 
	 	7.19.	 	Other Agreements	 	 	79	 
	 
	 	7.20.	 	Tax Shelter Regulations	 	 	79	 
	 
	 	 	 	 	 	 	 	 
	VIII	 	CONDITIONS PRECEDENT	 	 	79	 
	 
	 	 	 	 	 	 	 	 
	 
	 	8.1.	 	Conditions to Initial Advances	 	 	79	 
	 
	 	 	 	(a) Revolving Credit Notes	 	 	79	 
	 
	 	 	 	(b) Filings, Registrations and Recordings; Searches	 	 	79	 
	 
	 	 	 	(c) Authorization Proceedings of Borrowers	 	 	80	 
	 
	 	 	 	(d) Incumbency Certificates of Loan Parties	 	 	80	 
	 
	 	 	 	(e) Corporate Proceedings of Guarantor	 	 	80	 
	 
	 	 	 	(f) Incumbency Certificates of Guarantor	 	 	80	 
	 
	 	 	 	(g) Certificates	 	 	81	 
	 
	 	 	 	(h) Good Standing Certificates	 	 	81	 
	 
	 	 	 	(i) Legal Opinions	 	 	81	 
	 
	 	 	 	(j) No Litigation	 	 	81	 
	 
	 	 	 	(k) Financial Condition Certificates	 	 	81	 
	 
	 	 	 	(l) Collateral Examination	 	 	81	 
	 
	 	 	 	(m) Fees	 	 	81	 
	 
	 	 	 	(n) Financial Statements	 	 	82	 
	 
	 	 	 	(o) Merger and Acquisition Documents	 	 	82	 
	 
	 	 	 	(p) JPM Loan Documents	 	 	82	 
	 
	 	 	 	(q) Shell Subordination Agreement	 	 	82	 
	 
	 	 	 	(r) Insurance	 	 	82	 
	 
	 	 	 	(s) Environmental Reports	 	 	82	 
	 
	 	 	 	(t) Payment Instructions	 	 	82	 
	 
	 	 	 	(u) Blocked Accounts	 	 	82	 
	 
	 	 	 	(v) Consents	 	 	82	 
	 
	 	 	 	(w) No Adverse Material Change	 	 	83	 
	 
	 	 	 	(x) Leasehold Agreements	 	 	83	 
	 
	 	 	 	(y) Shell BDF Agreements	 	 	83	 
	 
	 	 	 	(z) Guarantees and Other Documents	 	 	83	 
	 
	 	 	 	(aa) Balance Sheet	 	 	83	 
	 
	 	 	 	(bb) Closing Certificate	 	 	83	 
	 
	 	 	 	(cc) Borrowing Base	 	 	83	 

iv

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	(dd) Undrawn Availability	 	 	83	 
	 
	 	 	 	(ee) Management Agreement	 	 	84	 
	 
	 	 	 	(ff) Other	 	 	84	 
	 
	 	8.2.	 	Conditions to Each Advance	 	 	84	 
	 
	 	 	 	(a) Representations and Warranties	 	 	84	 
	 
	 	 	 	(b) No Default	 	 	84	 
	 
	 	 	 	(c) Maximum Advances	 	 	84	 
	 
	 	 	 	 	 	 	 	 
	IX	 	INFORMATION AS TO BORROWERS	 	 	85	 
	 
	 	 	 	 	 	 	 	 
	 
	 	9.1.	 	Disclosure of Material Matters	 	 	85	 
	 
	 	9.2.	 	Schedules	 	 	85	 
	 
	 	9.3.	 	[Reserved]	 	 	86	 
	 
	 	9.4.	 	Litigation	 	 	86	 
	 
	 	9.5.	 	Material Occurrences	 	 	86	 
	 
	 	9.6.	 	Government Receivables	 	 	86	 
	 
	 	9.7.	 	Annual Financial Statements	 	 	86	 
	 
	 	9.8.	 	Quarterly Financial Statements	 	 	87	 
	 
	 	9.9.	 	Monthly Financial Statements	 	 	87	 
	 
	 	9.10.	 	Other Reports	 	 	87	 
	 
	 	9.11.	 	Additional Information	 	 	87	 
	 
	 	9.12.	 	Projected Operating Budget	 	 	88	 
	 
	 	9.13.	 	Variances From Operating Budget	 	 	88	 
	 
	 	9.14.	 	Notice of Suits, Adverse Events	 	 	88	 
	 
	 	9.15.	 	ERISA Notices and Requests	 	 	88	 
	 
	 	9.16.	 	Opening Balance Sheet	 	 	89	 
	 
	 	9.17.	 	Review of Hedging Portfolio	 	 	89	 
	 
	 	9.18.	 	Additional Documents	 	 	89	 
	 
	 	 	 	 	 	 	 	 
	X	 	EVENTS OF DEFAULT	 	 	89	 
	 
	 	 	 	 	 	 	 	 
	XI	 	LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT	 	 	92	 
	 
	 	 	 	 	 	 	 	 
	 
	 	11.1.	 	Rights and Remedies	 	 	92	 
	 
	 	11.2.	 	Agent’s Discretion	 	 	93	 
	 
	 	11.3.	 	Setoff	 	 	93	 
	 
	 	11.4.	 	Rights and Remedies not Exclusive	 	 	93	 
	 
	 	11.5.	 	Allocation of Payments After Event of Default	 	 	94	 
	 
	 	11.6.	 	Cure Right	 	 	95	 
	 
	 	 	 	 	 	 	 	 
	XII	 	WAIVERS AND JUDICIAL PROCEEDINGS	 	 	95	 
	 
	 	 	 	 	 	 	 	 
	 
	 	12.1.	 	Waiver of Notice	 	 	95	 
	 
	 	12.2.	 	Delay	 	 	95	 
	 
	 	12.3.	 	Jury Waiver	 	 	95	 

v

 

	 	 	 	 	 	 	 	 	 
	XIII	 	EFFECTIVE DATE AND TERMINATION	 	 	96	 
	 
	 	 	 	 	 	 	 	 
	 
	 	13.1.	 	Term	 	 	96	 
	 
	 	13.2.	 	Termination	 	 	96	 
	 
	 	 	 	 	 	 	 	 
	XIV	 	REGARDING AGENT	 	 	97	 
	 
	 	 	 	 	 	 	 	 
	 
	 	14.1.	 	Appointment	 	 	97	 
	 
	 	14.2.	 	Nature of Duties	 	 	97	 
	 
	 	14.3.	 	Lack of Reliance on Agent and Resignation	 	 	97	 
	 
	 	14.4.	 	Certain Rights of Agent	 	 	98	 
	 
	 	14.5.	 	Reliance	 	 	98	 
	 
	 	14.6.	 	Notice of Default	 	 	98	 
	 
	 	14.7.	 	Indemnification	 	 	99	 
	 
	 	14.8.	 	Agent in its Individual Capacity	 	 	99	 
	 
	 	14.9.	 	Delivery of Documents	 	 	99	 
	 
	 	14.10.	 	Borrowers’ Undertaking to Agent	 	 	99	 
	 
	 	14.11.	 	No Reliance on Agent’s Customer Identification Program	 	 	99	 
	 
	 	14.12.	 	Other Agreements	 	 	100	 
	 
	 	 	 	 	 	 	 	 
	XV	 	BORROWING AGENCY	 	 	100	 
	 
	 	 	 	 	 	 	 	 
	 
	 	15.1.	 	Borrowing Agency Provisions	 	 	100	 
	 
	 	15.2.	 	Waiver of Subrogation	 	 	101	 
	 
	 	 	 	 	 	 	 	 
	XVI	 	MISCELLANEOUS	 	 	101	 
	 
	 	 	 	 	 	 	 	 
	 
	 	16.1.	 	Governing Law	 	 	101	 
	 
	 	16.2.	 	Entire Understanding	 	 	102	 
	 
	 	16.3.	 	Successors and Assigns; Participations; New Lenders	 	 	104	 
	 
	 	16.4.	 	Application of Payments	 	 	105	 
	 
	 	16.5.	 	Indemnity	 	 	106	 
	 
	 	16.6.	 	Notice	 	 	106	 
	 
	 	16.7.	 	Survival	 	 	108	 
	 
	 	16.8.	 	Severability	 	 	108	 
	 
	 	16.9.	 	Expenses	 	 	109	 
	 
	 	16.10.	 	Injunctive Relief	 	 	109	 
	 
	 	16.11.	 	Consequential Damages	 	 	109	 
	 
	 	16.12.	 	Captions	 	 	109	 
	 
	 	16.13.	 	Counterparts; Telecopied Signatures	 	 	109	 
	 
	 	16.14.	 	Construction	 	 	109	 
	 
	 	16.15.	 	Confidentiality; Sharing Information	 	 	109	 
	 
	 	16.16.	 	Publicity	 	 	110	 
	 
	 	16.17.	 	Certification from Lenders and Participants	 	 	111	 
	 
	 	16.18.	 	Tax Withholding Clause	 	 	111	 
	 
	 	16.19.	 	Legal Representation of Agent	 	 	112	 

vi

 

	 	 	 	 	 	 	 	 	 
	 
	 	16.20.	 	USA Patriot Act	 	 	112	 

List of Annexes, Exhibits and Schedules

	 	 	 
	Annex
	 	 
	 
	 	 
	Annex A

	 	Borrowers
	 
	 	 
	Exhibits
	 	 
	 
	 	 
	Exhibit 2.1(a)

	 	Revolving Credit Note
	Exhibit 5.5(b)

	 	Financial Projections
	Exhibit 8.1(k)

	 	Financial Condition Certificate
	Exhibit 16.3

	 	Commitment Transfer Supplement
	Exhibit A

	 	Borrowing Base Certificate
	Exhibit B

	 	Leasehold Premises
	Exhibit C

	 	Intercreditor Agreement
	 
	 	 
	Schedules
	 	 
	 
	 	 
	Schedule 1.2.1

	 	Mortgaged Properties
	Schedule 1.2.2

	 	Permitted Encumbrances
	Schedule 1.2.3

	 	Customers Re: Extended Term Receivables
	Schedule 1.2.4

	 	Designated Supply Contracts
	Schedule 4.1

	 	Commercial Tort Claims
	Schedule 4.5

	 	Equipment and Inventory Locations
	Schedule 4.15(c)

	 	Location of Executive Offices
	Schedule 4.19(a)

	 	Real Property
	Schedule 5.2(a)

	 	States of Qualification and Good Standing
	Schedule 5.2(b)

	 	Subsidiaries

vii

 

	 	 	 
	Schedule 5.4

	 	Federal Tax Identification Number
	Schedule 5.6

	 	Prior Names
	Schedule 5.7

	 	Environmental Matters
	Schedule 5.8(b)

	 	Litigation
	Schedule 5.8(d)

	 	Plans
	Schedule 5.9

	 	Intellectual Property, Source Code Escrow Agreements
	Schedule 5.10

	 	Licenses and Permits
	Schedule 5.14

	 	Labor Disputes
	Schedule 5.24

	 	Bailees of Prepaid Fuel Inventory
	Schedule 7.3

	 	Guarantees
	Schedule 7.4

	 	Investments
	Schedule 7.8

	 	Indebtedness
	Schedule 7.10

	 	Affiliate Transactions

viii

 

REVOLVING CREDIT

AND

SECURITY AGREEMENT

          Revolving Credit and Security Agreement dated September 18, 2006 among SPI PETROLEUM LLC, a
limited liability company organized under the laws of the State of Delaware (“Parent”), the
Borrowers listed on Annex A hereto, the financial institutions which are now or which hereafter
become a party hereto (collectively, the “Lenders” and individually a “Lender”),
JPMORGAN CHASE BANK, N.A., BANK OF AMERICA, N.A., THE CIT GROUP/BUSINESS CREDIT, INC., LASALLE
BUSINESS CREDIT LLC AND WELLS FARGO FOOTHILL, LLC, as co-documentation agents, and PNC BANK,
NATIONAL ASSOCIATION (“PNC”), as agent for Lenders (PNC, in such capacity, the
“Agent”).

          IN CONSIDERATION of the mutual covenants and undertakings herein contained, Borrowers, Lenders
and Agent hereby agree as follows:

I DEFINITIONS.

          1.1. Accounting Terms. As used in this Agreement, the Note, or any certificate,
report or other document made or delivered pursuant to this Agreement, accounting terms not defined
in Section 1.2 or elsewhere in this Agreement and accounting terms partly defined in Section 1.2 to
the extent not defined, shall have the respective meanings given to them under GAAP;
provided, however, if any changes in accounting principles from those used in the
preparation of the most recent financial statements referred to herein are hereafter required or
permitted by the rules, regulations, pronouncements and opinions of the Financial Account Standards
Board of the American Institute of Certified Public Accounts (or successors thereto or agencies
with similar functions) and are adopted by Parent or any Borrower with the agreement of its
independent certified public accountants and such changes result in a change in the method of
calculation of any of the financial covenants or in the related definitions of terms used therein,
the parties hereto agree to enter into negotiations in order to amend such provisions, which
amended provisions shall be acceptable to Agent, the Required Lenders and Borrowers, so as to
reflect such changes with the desired result that the criteria for evaluating the Borrower’s
financial condition with respect to any affected financial covenants hereunder shall be the same
after such changes as if such changes had not been made, provided that no change in GAAP
that would affect the method of calculation of any of the financial covenants, standards or terms
shall be given effect in such calculations until such provisions are amended, in a manner
satisfactory to Agent, the Required Lenders and Borrowers to accomplish the foregoing. For the
avoidance of doubt, notwithstanding FAS 150, the Capital Stock of Parent issued in connection with
the Transactions, together with all other Capital Stock issued by Parent thereafter having
substantially the same terms, shall not constitute Indebtedness or a liability hereunder so long as
such Capital Stock does not require any cash payments or dividends thereon or require any
mandatory redemption or repurchase prior to the date that is one year after the maturity of
the Obligations (based on conditions in effect at the time of any such determination), as such
maturity may be modified from time to time.

 

 

          1.2. General Terms. For purposes of this Agreement the following terms shall have the
following meanings:

               “Accountants” shall have the meaning set forth in Section 9.7 hereof.

               “Acquisition Agreements” shall mean the collective reference to the Pecos Acquisition
Agreement and the Canyon Acquisition Agreement.

               “Advances” shall mean and include the Revolving Advances and the Letters of Credit.

               “Advance Rates” shall have the meaning set forth in Section 2.1(a) hereof.

               “Affiliate” of any Person shall mean (a) any Person which, directly or indirectly, is
in control of, is controlled by, or is under common control with such Person, or (b) any Person who
is a director or officer (i) of such Person, (ii) of any Subsidiary of such Person or (iii) of any
Person described in clause (a) above; provided, however, that for purposes of this Agreement, no
portfolio company of any of the Original Owners (other than, if applicable, the Borrowers and any
Subsidiaries of the Borrowers) shall be considered an Affiliate of the Borrowers or their
Subsidiaries. For purposes of this definition, control of a Person shall mean the power, direct or
indirect, (x) to vote 10% or more of the securities having ordinary voting power for the election
of directors of such Person, or (y) to direct or cause the direction of the management and policies
of such Person whether by contract or otherwise.

               “Affiliation Agreements” shall mean (1) that certain Affiliation Agreement dated
January 14, 1999 by and between Simons Oklahoma and Bosselman, Inc., as amended and otherwise
modified from time to time; (2) that certain Fuel Supply Agreement dated November 9, 1994 by and
between Simons Oklahoma and Bosselman, Inc., as amended and otherwise modified from time to time;
(3) that certain Amended and Restated Fuel Network Affiliation Agreement dated December 24, 1994
by and among Simons Oklahoma, TA Operating Corporation and Roger N. Simons, Trustee of the Roger N.
Simons Living Trust dated April 11, 1985, as modified by that certain First Addendum thereto dated
January 1, 1998, the 2nd Addendum thereto dated January 16, 2004, the Third Addendum
thereto dated September 30, 2005 and as otherwise amended or modified from time to time; and (4)
any and all other affiliation agreements entered into by any Borrower and third party entities from
time to time.

               “Agent” shall have the meaning set forth in the preamble to this Agreement and shall
include its successors and assigns.

               “Aggregate Consideration” shall mean with respect to any Permitted Acquisition the sum
of (a) the cash paid by any Borrower, directly or indirectly, to the seller in connection
therewith, plus (b) common stock issued (valued at market price at the close of trading on the
date of the definitive acquisition agreement pursuant to which the Permitted Acquisition is to
be made) in connection with such Permitted Acquisition, plus (c) Indebtedness incurred or assumed
by any Borrower, whether in favor of the seller or otherwise and whether fixed or contingent, in
connection with such Permitted Acquisition, and plus (d) any other consideration given or
obligation incurred by any Borrower in connection therewith.

2

 

               “Alternate Base Rate” shall mean, for any day, a rate per annum equal to the higher of
(i) the Base Rate in effect on such day and (ii) the Federal Funds Open Rate in effect on such day
plus 1/2 of 1%.

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

               “Authority” shall have the meaning set forth in Section 4.19(d).

               “Base Rate” shall mean the base commercial lending rate of PNC as publicly announced
to be in effect from time to time, such rate to be adjusted automatically, without notice, on the
effective date of any change in such rate. This rate of interest is determined from time to time
by PNC as a means of pricing some loans to its customers and is neither tied to any external rate
of interest or index nor does it necessarily reflect the lowest rate of interest actually charged
by PNC to any particular class or category of customers of PNC.

               “Blocked Accounts” shall have the meaning set forth in Section 4.15(h).

               “Blocked Person” shall mean, individually and collectively:

                    (i) a Person that is listed in the annex to, or is otherwise subject to the provisions
of, the Executive Order No. 13224;

                    (ii) a Person owned or controlled by, or acting for or on behalf of, any Person that is
listed in the annex to, or is otherwise subject to the provisions of, the Executive Order
No. 13224;

                    (iii) a Person or entity with which any Bank is prohibited from dealing or otherwise
engaging in any transaction by any Anti Terrorism Law;

                    (iv) a Person or entity that commits, threatens or conspires to commit or supports
“terrorism” as defined in the Executive Order No. 13224;

                    (v) a Person or entity that is named as a “specially designated national” on the most
current list published by the U.S. Treasury Department Office of Foreign Asset Control at
its official website or any replacement website or other replacement official publication of
such list; or

                    (vi) a Person or entity who is affiliated or associated with a person or entity listed
above.

               “Borrower” or “Borrowers” shall have the meaning set forth in the preamble to
this Agreement and shall extend to all permitted successors and assigns of such Persons.

3

 

               “Borrowing Base Certificate” shall mean a certificate duly executed by an officer of
Borrowing Agent appropriately completed and in substantially the form of Exhibit A hereto.

               “Borrowers on a consolidated basis” shall mean Parent and all subsidiaries of Parent
on a consolidated basis.

               “Borrowers’ Account” shall have the meaning set forth in Section 2.8.

               “Borrowing Agent” shall mean Parent.

               “Business Day” shall mean any day other than Saturday or Sunday or a legal holiday on
which commercial banks are authorized or required by law to be closed for business in East
Brunswick, New Jersey and, if the applicable Business Day relates to any Eurodollar Rate Loans,
such day must also be a day on which dealings are carried on in the London interbank market.

               “Canyon Acquisition Agreement” shall mean the Stock Purchase Agreement dated September
18, 2006 by and among Parent, SPI Petroleum, Inc., a Texas corporation, the Thomas F. Arndt Trust
under Trust Agreement dated June 1, 2005, and Thomas F. Arndt, individually.

               “Capitalized Lease Obligation” shall mean any Indebtedness of a Borrower represented
by obligations under a lease that is required to be capitalized for financial reporting purposes in
accordance with GAAP.

               “CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended, 42 U.S.C. §§9601 et seq.

               “Cessna Aircraft” shall mean the Cessna aircraft with model no. 525, serial no.
525-0542 and registration no. N500CW, owned jointly by Simons Petroleum, Inc., an Oklahoma
corporation, the Around the Clock Freightliner Group, Inc. and Bob Mills Furniture Co., Inc..

               “Change of Control” shall mean the earliest to occur of (a) the Permitted Holders
ceasing to have the power, directly or indirectly, to vote or direct the voting of securities
having a majority of the ordinary voting power for the election of directors of Parent;
provided that the occurrence of the foregoing event shall not be deemed a Change of Control
if, the Permitted Holders otherwise have the right, directly or indirectly, to designate (and do so
designate) a majority of the board of directors of Parent or the Permitted Holders own, directly or
indirectly, of record and beneficially an amount of common stock of Parent equal to an amount more
than fifty percent (50%) of the amount of common stock of Parent owned, directly or indirectly, by
the Permitted Holders of record and beneficially as of the Closing Date and such ownership by
the Permitted Holders represents the largest single block of voting securities of Parent held
by any Person or related group for purposes of Section 13(d) of the Exchange Act; or

               (b) each Borrower ceasing to be a directly or indirectly wholly owned Subsidiary of Parent.

4

 

               “Charges” shall mean all taxes, charges, fees, imposts, levies or other assessments,
including, without limitation, all net income, gross income, gross receipts, sales, use, ad
valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding,
payroll, employment, social security, unemployment, excise, severance, stamp, occupation and
property taxes, custom duties, fees, assessments, liens, claims and charges of any kind whatsoever,
together with any interest and any penalties, additions to tax or additional amounts, imposed by
any taxing or other authority, domestic or foreign (including, without limitation, the Pension
Benefit Guaranty Corporation or any environmental agency or superfund), upon the Collateral or any
Loan Party.

               “Chevron BDF Agreements” shall mean, collectively, (i) that certain Cash
Advance/Amortization Agreement to Texaco Lubrication Marketer for Brand Conversion Program dated
September 6, 2002, among Pecos, Inc., General Petroleum Corporation, f/k/a GP Resources, Inc. and
ChevronTexaco Global Lubricants, a division of Chevron U.S.A. Inc., (ii) that certain Cash
Advance/Amortization Agreement to Texaco Lubrication Marketer for Brand Conversion Program at
Texaco Xpress Lube Operator (located at 4853 East McKinley, Fresno, California) dated March 23.
2003, among Pecos, Inc., General Petroleum Corporation, f/k/a GP Resources, Inc. and ChevronTexaco
Global Lubricants, a division of Chevron U.S.A. Inc., (iii) that certain Cash Advance/Amortization
Agreement to Texaco Lubrication Marketer for Brand Conversion Program at Texaco Xpress Lube
Operator (located at California City Boulevard, California City, California) dated March 23. 2003,
among Pecos, Inc., General Petroleum Corporation, f/k/a GP Resources, Inc. and ChevronTexaco Global
Lubricants, a division of Chevron U.S.A. Inc., (iv) that certain Cash Advance/Amortization
Agreement to Texaco Lubrication Marketer for Brand Conversion Program at Texaco Xpress Lube
Operator (located at 438 Cecil Avenue, Delano, California) dated March 23. 2003, among Pecos, Inc.,
General Petroleum Corporation, f/k/a GP Resources, Inc. and ChevronTexaco Global Lubricants, a
division of Chevron U.S.A. Inc., (v) that certain Cash Advance/Amortization Agreement to Texaco
Lubrication Marketer for Brand Conversion Program at Texaco Xpress Lube Operator (located at 5651
Auburn, Bakersfield, California) dated March 23. 2003, among Pecos, Inc., General Petroleum
Corporation, f/k/a GP Resources, Inc. and ChevronTexaco Global Lubricants, a division of Chevron
U.S.A. Inc., (vi) that certain Cash Advance/Amortization Agreement to Texaco Lubrication Marketer
for Brand Conversion Program dated July 29, 2004, among Pecos, Inc., General Petroleum Corporation,
f/k/a GP Resources, Inc. and ChevronTexaco Global Lubricants, a division of Chevron U.S.A. Inc.,
and (vii) that certain Cash Advance/Amortization Agreement to Texaco Lubrication Marketer for
Equipment at Fast-Lubrication Facilities dated July 15, 2005, among Pecos, Inc., General Petroleum
Corporation, f/k/a GP Resources, Inc. and Chevron Products Company, a division of Chevron U.S.A.
Inc., as each of the foregoing may be amended or otherwise modified from time to time.

               “Closing Date” shall mean September 18, 2006 or such other date as may be agreed to by
the parties hereto.

               “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time and
the regulations promulgated thereunder.

5

 

               “Collateral” shall mean the collective reference to the First-Priority Collateral and
the Second-Priority Collateral.

               “Commitment Percentage” of any Lender shall mean the applicable percentages set forth
below such Lender’s name on the signature page hereof as to the Revolving Advances, and, as the
same may be adjusted upon any assignment by a Lender pursuant to Section 16.3(b) hereof,
provided that for purposes of (x) the definition of Required Lenders when no Advances are
outstanding, the applicable Commitment Percentage shall be that relating to Revolving Advances and
(y) for purposes of the use of such term in the indemnification provisions set forth in Section
14.7 when no Advances are outstanding, the applicable Commitment Percentage shall be that relating
to Revolving Advances.

               “Commitment Transfer Supplement” shall mean a document in the form of Exhibit
16.3 hereto, properly completed and otherwise in form and substance satisfactory to Agent by
which the Purchasing Lender purchases and assumes a portion of the obligation of Lenders to make
Advances under this Agreement.

               “Consents” shall mean all filings and all licenses, permits, consents, approvals,
authorizations, qualifications and orders of governmental authorities and other third parties,
domestic or foreign, necessary to carry on any Borrower’s business, including, without limitation,
any Consents required under all applicable federal, state or other applicable law.

               “Contract Rate” shall mean the Revolving Interest Rate.

               “Controlled Group” shall mean all members of a controlled group of corporations and
all trades or businesses (whether or not incorporated) under common control which, together with
any Borrower, is treated as a single employer under Section 414 of the Code.

               “Controlling Parent” of any Person shall mean a corporation or other entity owning,
directly or indirectly at least 50% of the shares of stock or other ownership interests having
ordinary voting power to elect a majority of the directors of the Person, or other Persons
performing similar functions for any such Person.

               “CSOC Inc.” shall mean Canyon State Oil Company, Inc., an Arizona corporation.

               “Customer” shall mean and include the account debtor with respect to any Receivable
and/or the purchaser of goods, services or both with respect to any contract or contract right.

               “Default” shall mean an event which, with the giving of notice or passage of time or
both, would constitute an Event of Default.

               “Default Rate” shall have the meaning set forth in Section 3.1 hereof.

               “Defaulting Lender” shall have the meaning set forth in Section 2.23(a) hereof.

6

 

               “Depository Accounts” shall have the meaning set forth in Section 4.15(h) hereof.

               “Designated Supply Contracts” shall mean solely those certain supply contracts
identified on Schedule 1.2.4.

               “Designated Supply Contract Locations” shall mean the locations at which certain of
Borrower’s Inventory is delivered and maintained pursuant to and in accordance with the Designated
Supply Contracts.

               “Documents” shall have the meaning set forth in Section 8.1(c) hereof.

               “Dollar” and the sign “$” shall mean lawful money of the United States of America.

               “Domestic Rate Loan” shall mean any Advance that bears interest based upon the
Alternate Base Rate.

               “Domestic Subsidiary” shall mean any Subsidiary of any Borrower, Holdings or Parent
organized under the laws of any jurisdiction within the United States.

               “Earnings Before Interest and Taxes” shall mean for any period, net income (or loss)
of Borrowers on a consolidated basis, at the Parent level, for such period (excluding extraordinary
gains and losses), plus, without duplication and to the extent reflected as a charge in the
statement of consolidated net income for such period, the sum of (i) all interest expense of
Borrowers on a consolidated basis, at the Parent level, for such period (including without
limitation, the fees payable on account of the Letters of Credit under Section 3.2(a)(x)) and (ii)
all charges against income of Borrowers on a consolidated basis, at the Parent level, for such
period for federal, foreign, state and local taxes and, in the case of Parent, such charges
relating to actual distributions to its members for the payment of taxes relating to such members’
interest in Parent.

               “EBITDA” shall mean for any period Earnings Before Interest and Taxes for such period,
plus, without duplication and to the extent reflected as a charge in the statement of
consolidated net income for such period, the sum of (i) depreciation expenses for such period, (ii)
amortization expenses and other non-cash expenses for such period, (iii) transaction expenses
incurred in connection with the Transactions to the extent expensed in such period, (iv)
restructuring and other non-cash, non-recurring items or expenses incurred in connection with an
acquisition transaction regarding a Borrower that is an approved transaction pursuant to the terms
and conditions hereof, (v) with respect to the Transactions only: such other non-cash expenses
(including any required or permitted purchase accounting adjustments) (including non-
cash write-ups and non-cash charges relating to inventory and fixed assets), (vi) any loss
recognized in determining consolidated net income (or net loss for such period) in respect of
post-retirement benefits as a result of application of FASB 106, minus (vii) any gain
recognized in determining consolidated net income (or net loss for such period) in respect of
post-retirement benefits as a result of application of FASB 106; plus (viii) any unrealized
loss as a result of application of SFAS 133, to the extent that it has been deducted from net
income, but, in any event, only to the extent of the non-cash component thereof, minus (ix)
any unrealized gain as a

7

 

result of application of SFAS 133, to the extent it has been added to net
income, but, in any event, only to the extent of the non-cash component thereof, plus (x)
the proceeds of any business interruption insurance received during such period, plus (xi)
management fees paid to the Sponsors, not to exceed $1,000,000 and plus (xii) any loss
arising from the impairment of goodwill and other general intangibles resulting from the
application of FASB 141 and FASB 142 at the time of, and in connection with, the consummation of
the Transactions; provided that any cash payments made in a future period in respect of
items described in clauses (ii), (vi) or (vii) above shall reduce EBITDA in such period.

               “Eligible Inventory” shall mean and include Inventory consisting of diesel fuel,
racing gas, gas, lubricants, and fuel and chemical additives, in each case with respect to each
Borrower valued at the lower of cost or market value, determined on a first-in-first-out basis,
which is not, in the good faith business judgment of Agent, obsolete, slow moving or unmerchantable
and which Agent, in its good faith business judgment, shall not deem ineligible Inventory, based on
such considerations as Agent may from time to time, in its good faith business judgment, after the
end of the Modification Notice Period with respect thereto as applicable, deem appropriate
including, without limitation, whether the Inventory is subject to a perfected, first priority
security interest in favor of Agent and no other Lien (other than Permitted Encumbrances) or other
rights of bailees or landlords, and whether the Inventory conforms in all material respects to all
standards imposed by any governmental agency, division or department thereof which has regulatory
authority over such goods or the use or sale thereof. Without limiting the generality of the
foregoing, Eligible Inventory shall include all such Inventory that is in-transit, if and to the
extent the following additional requirements are satisfied with respect to such in-transit
Inventory: title of such in-transit Inventory has passed to a Borrower; such in-transit Inventory
is insured to the full value thereof; and, if required by Agent in its good faith business
judgment, Agent shall have in its possession any and all documentation (including negotiable
instruments), if any, evidencing title to or control of such in-transit Inventory. Without
limiting the generality of the foregoing, any Inventory located at any Designated Supply Contracts
Location shall not otherwise qualify as Eligible Inventory from and after the date (if ever) that
the right, title, or interest of a Borrower in and to the underlying Designated Supply Contract
with respect to such Designated Supply Contracts Location is assigned or transferred to any other
Person, unless Agent receives a bailee agreement, in form and substance reasonably satisfactory to
Agent in its good faith business judgment, relative to such Inventory from all other parties having
or claiming any rights to such Inventory (including without limitation the other Persons party to
such Designated Supply Contract).

               “Eligible Receivables” shall mean and include with respect to each Borrower, each
Receivable of such Borrower arising in the ordinary course of such Borrower’s business and which
Agent, in its good faith business judgment, shall deem to be an Eligible Receivable,
based on such considerations as Agent may from time to time, in its good faith business
judgment, after the end of the Modification Notice Period with respect thereto as applicable, deem
appropriate, including, without limitation, with respect to any Extended Term Receivables or
Unbilled Receivables. A Receivable shall not be deemed eligible unless such Receivable is subject
to Agent’s first priority perfected security interest and no other Lien (other than Permitted
Encumbrances), and is evidenced by an invoice or other documentary evidence

8

 

satisfactory to Agent
in its good faith business judgment. In addition, no Receivable shall be an Eligible Receivable
if:

                    (a) it arises out of a sale made by any Borrower to an Affiliate of any Borrower;

                    (b) except with respect to Extended Term Receivables, it is unpaid more than sixty (60) days
after the original invoice date, provided that with respect to a Receivable that is billed on net
30 day terms, it is unpaid more than ninety (90) days after the original invoice date;

                    (c) fifty percent (50%) or more of the Receivables from such Customer are not deemed Eligible
Receivables hereunder pursuant to clause (b) above (such percentage may, in Agent’s good faith
business judgment, be increased or decreased from time to time, after Agent has given a
Modification Notice and a Modification Notice Period has passed);

                    (d) [intentionally omitted];

                    (e) the Customer shall (i) apply for, suffer, or consent to the appointment of, or the taking
of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial
and material part of its property, or shall make any offer of settlement, extension, or composition
to its unsecured creditors generally, (ii) admit in writing its inability, or be generally unable,
to pay its debts as they become due or cease operations of its present business, (iii) make a
general assignment for the benefit of creditors, (iv) commence a voluntary case under any state or
federal bankruptcy laws (as now or hereafter in effect), (v) be adjudicated a bankrupt or
insolvent, (vi) file a petition seeking to take advantage of any other law providing for the relief
of debtors, (vii) acquiesce to, or fail to have dismissed, any petition which is filed against it
in any involuntary case under such bankruptcy laws, or (viii) take any action for the purpose of
effecting any of the foregoing;

                    (f) the sale is to a Customer outside the United States of America or Canada (other than
Customers from or residing in, or otherwise having an address in, the province of Quebec), unless
the sale is on letter of credit, guaranty or acceptance terms, in each case acceptable to Agent in
its good faith business judgment;

                    (g) the sale to the Customer is on a bill-and-hold, guaranteed sale, sale-and-return, sale on
approval, consignment or any other repurchase or return basis, or is evidenced by chattel paper
(unless, upon the request of the Agent, the relevant Borrower has delivered the original of such
chattel paper to Agent);

                    (h) Agent believes, in its good faith business judgment, that collection of such Receivable is
insecure or that such Receivable may not be paid by reason of the Customer’s financial inability to
pay, provided that the ineligible status of any such Receivable shall not be deemed effective until
after Agent has given a Modification Notice and a Modification Notice Period has passed;

9

 

                    (i) the Customer is the United States of America, any state or any department, agency or
instrumentality of any of them, unless the applicable Borrower assigns its right to payment of such
Receivable to Agent pursuant to the Assignment of Claims Act of 1940, as amended (31 U.S.C.
Sub-Section 3727 et seq. and 41 U.S.C. Sub-Section 15 et seq.) or
has otherwise complied with other applicable statutes or ordinances;

                    (j) the goods giving rise to such Receivable have not been shipped to the Customer or the
services giving rise to such Receivable have not been performed by the applicable Borrower or the
Receivable otherwise does not represent a final sale;

                    (k) the Receivables of the Customer exceed a credit limit determined by Agent, in its good
faith business judgment, to the extent such Receivable exceeds such limit, provided that if
Agent has changed any such applicable limit for any Customer, such change shall not be effective
until after Agent has given a Modification Notice and the Modification Notice Period has passed;

                    (l) unless the applicable Borrower shall have delivered to the Agent a no-offset agreement in
form and substance satisfactory to the Agent in its sole discretion, (1) the Receivable is owed by
a Customer that is also a creditor or supplier of a Borrower, or (2) the Receivable is subject to
any offset, deduction, defense, dispute, or counterclaim, (but only to the extent of the amount of
any such offset, deduction, defense, dispute, or counterclaim), or (3) the Receivable is contingent
in any respect or for any reason;

                    (m) the applicable Borrower has made any agreement with any Customer for any deduction
therefrom (but only to the extent of the amount of any such deduction), except for discounts or
allowances made in the ordinary course of business for prompt payment, all of which discounts or
allowances are reflected in the calculation of the face value of each respective invoice related
thereto;

                    (n) any return, rejection or repossession of the merchandise has occurred or the rendition of
services that is the subject of the Receivable has been disputed (but only to the extent of the
amount returned, rejected, or disputed);

                    (o) such Receivable is not payable to a Borrower;

                    (p) it includes any tax liability that Borrower has collected on behalf or for the benefit of
any federal, state or any department, agency or instrumentality of any of them, only to the extent,
however, of any such tax liability or reserve and, in any case, only to the extent that the tax
liability associated therewith is not otherwise included in the aggregate reserve that the Agent
has established with respect to all such tax liability for all account debtors with respect to the
Receivables;

                    (q) Receivables owing from such Customer exceed 25% of the total Receivables outstanding (but
only with respect to such Receivables in excess thereof); or

                    (r) such Receivable is not otherwise satisfactory to Agent as determined by Agent in its good
faith business judgment, provided that if Agent’s determination

10

 

thereof changes the status
of a previously satisfactory Receivable to one that is no longer satisfactory based only on the
provisions set forth this clause (r) any such change shall not be effective until after Agent has
given a Modification Notice and a Modification Notice Period has passed.

               “Environmental Complaint” shall have the meaning set forth in Section 4.19(d) hereof.

               “Environmental Laws” shall mean all federal, state and local environmental statutes,
ordinances and codes relating to the protection of the environment and/or governing the use,
storage, treatment, generation, transportation, processing, handling, production or disposal of
Hazardous Substances and the binding and enforceable rules, regulations, written orders, binding
and enforceable written directives, binding and enforceable written policies, binding and
enforceable written guidelines, binding and enforceable written interpretations, and binding and
enforceable written decisions, of federal, state and local governmental agencies and authorities
with respect thereto.

               “Equipment” shall mean and include as to each Borrower all of such Borrower’s goods
(other than Inventory) whether now owned or hereafter acquired and wherever located including,
without limitation, all equipment, machinery, apparatus, motor vehicles, fittings, furniture,
furnishings, fixtures, parts, accessories and all replacements and substitutions therefor or
accessions thereto.

               “Equity Investors” shall mean the Sponsors and the Management Stockholders.

               “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time and the rules and regulations promulgated thereunder.

               “ETI Acquisition” shall mean ETI Acquisition LLC, a Delaware limited liability
company.

               “Eurodollar Rate” shall mean for any Eurodollar Rate Loan for the then current
Interest Period relating thereto the interest rate per annum determined by Agent by dividing (the
resulting quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the
rate of interest determined by Agent in accordance with its usual procedures (which determination
shall be conclusive absent manifest error) to be the average of the London interbank offered rates
for U.S. Dollars, as quoted by the British Bankers’ Association as set forth on Moneyline Telerate
(or appropriate successor or, if the British Bankers’ Association or its successor ceases to
provide such quotes, a comparable replacement determined by the Agent) display page 3750 (or such
other display page on the Moneyline Telerate service as may replace display page 3750) two (2)
Business Days prior to the first day of such Interest Period for an amount comparable to such
Eurodollar Rate Loan and having a borrowing date and a maturity
comparable to such Interest Period by (ii) a number equal to 1.00 minus the Reserve
Percentage. The Eurodollar Rate may also be expressed by the following formula:

	 	 	 	 	 
	

	 	 	 	         
              
     Average of London interbank offered rates quoted by BBA as shown on 

Eurodollar Rate = Moneyline Telerate Service display page 3750 or appropriate successor

 1.00 - Reserve Percentage

11

 

               “Eurodollar Rate Loan” shall mean an Advance at any time that bears interest
based on the Eurodollar Rate.

               “Event of Default” shall mean the occurrence and continuance of any of the events set
forth in Article X hereof.

               “Excluded Foreign Subsidiary” shall mean any Foreign Subsidiary in respect of which
either (a) the pledge of greater than 65% of the capital stock of such Subsidiary as Collateral or
(b) the guaranteeing by such Subsidiary of the Obligations would, in the good faith judgment of the
Borrowers, result in adverse tax consequences to the Borrowers, Holdings or Parent.

               “Excluded Property” shall mean any property (a) to the extent that a grant of a
security interest therein is prohibited by any requirements of law of a Governmental Body, requires
a consent not obtained of any Governmental Body pursuant to such requirement of law or is
prohibited by, or constitutes a breach or default under or results in the termination of or
requires any consent not obtained under, any contract, license, agreement, instrument or other
document evidencing or giving rise to such property or, in the case of any Investment Property, any
applicable shareholder or similar agreement, except to the extent that such requirement of law or
the term in such contract, license, agreement, instrument or other document or shareholder or
similar agreement providing for such prohibition, breach, default or termination or requiring such
consent is ineffective under applicable law or (b) which is, or is a portion of, the Cessna
Aircraft.

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

               “Existing Facility” shall mean the Revolving Credit, Term Loan and Security Agreement
dated April 9, 2004 among SPI Petroleum LLC, Simons Petroleum, Inc., a Texas corporation, and
Simons Petroleum, Inc., an Oklahoma corporation, and PNC Bank, National Association.

               “Existing Lender” shall have the meaning set forth in Section 8.1(b).

               “Extended Term Receivables” shall mean and refer to those certain Receivables that
Agent has deemed Eligible Receivables, in its good faith business judgment and based on such
considerations as Agent may from time to time deem appropriate, in its good faith business
judgment, after the end of the Modification Notice Period with respect thereto as applicable, which
have extended payment terms that the Borrowers have granted to account parties thereon,
and with the understanding that as of the date hereof the Customers relating to such Extended
Term Receivables that are acceptable to Agent are set forth on Schedule 1.2.3 attached hereto
together with such additional Customers as may be added to the Schedule from time to time with the
Agent’s prior written consent (with all of such Receivables being deemed acceptable Extended Term
Receivables as long as they are otherwise deemed Eligible Receivables

12

 

hereunder), provided
that in order to be and remain eligible for borrowing purposes hereunder, and without limitation of
the foregoing determination by Agent as set forth above and as otherwise set forth in the
provisions of the definition of the term Eligible Receivables hereinabove, such Receivables shall
not remain unpaid more than 60 days after their due date and nor shall they remain unpaid more than
150 days from their invoice date, provided, further, any change after the date
hereof with respect to the specific criteria that the Agent employs hereunder regarding the
determination of Extended Term Receivables that are eligible for borrowing hereunder (but not with
respect to the application of existing criteria and changes in borrowing availability that may
result therefrom) shall not be effective until after Agent has given a Modification Notice and a
Modification Notice Period has passed.

     “Federal Funds Effective Rate” for any day shall mean the rate per annum (based on a
year of 360 days and actual days elapsed and rounded upward to the nearest 1/100 of 1%) announced
by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted
average of the rates on overnight federal funds transactions arranged by federal funds brokers on
the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor)
in substantially the same manner as such Federal Reserve Bank computes and announces the weighted
average it refers to as the “Federal Funds Effective Rate” as of the date of this Agreement;
provided, if such Federal Reserve Bank (or its successor) does not announce such rate on
any day, the “Federal Funds Effective Rate” for such day shall be the Federal Funds Effective Rate
for the last day on which such rate was announced.

     “Federal Funds Open Rate” for any day shall mean the rate per annum determined by the
Agent in its good faith business judgment in accordance with its usual procedures consistent with
ordinary and customary banking practices (which determination shall be conclusive absent manifest
error) to be the “open” rate for federal funds transactions as of the opening of business for
federal funds transactions among members of the Federal Reserve System arranged by federal funds
brokers on such day, as quoted by Garvin Guybutler, any successor entity thereto, or any other
widely-recognized broker selected by the Bank in its good faith business judgment, as set forth on
the applicable Telerate display page; provided, however; that if such day is not a
Business Day, the Federal Funds Open Rate for such day shall be the “open” rate on the immediately
preceding Business Day, or if no such rate shall be quoted by a Federal funds broker at such time,
such other rate as determined by the Agent in accordance with its usual procedures.

     “Fee Letter” shall mean the fee letter dated August 29, 2006 among the Borrowers and
PNC.

     “First-Priority Collateral” shall mean with respect to a Borrower, all such Borrower’s
now existing or hereinafter arising (i) Inventory, (ii) Receivables, (iii) Instruments, Chattel
Paper and other contracts, in each case evidencing or substituted for any Receivable, (iv)
guarantees, security and other credit enhancements for the Receivables, (v) documents of title
for any Inventory, (vi) claims and causes of action in any way relating to any of the Receivables
or Inventory, (vii) Deposit Accounts (including all cash and other funds on deposit therein),
(viii) all books and records pertaining to any of the foregoing, and all substitutions,
replacements, products or proceeds (including, without limitation, insurance proceeds) of any of
the foregoing;

13

 

but, excluding, however, Excluded Property; provided, however, that
any Collateral, regardless of type, received in connection with an asset disposition or asset swap
of Second-Priority Collateral or otherwise in exchange for Second-Priority Collateral shall be
treated as Second-Priority Collateral under this Agreement and the Intercreditor Agreement;
provided, further, that any Collateral of the type that constitutes Second-Priority
Collateral, if received in connection with an asset disposition or asset swap of First-Priority
Collateral or otherwise in exchange for First-Priority Collateral, shall be treated as
First-Priority Collateral under this Agreement and the Intercreditor Agreement.

               “Fixed Charge Coverage Ratio” shall mean and include with respect to the Borrowers on
a consolidated basis as of any date (commencing on December 31, 2006) with respect to the
immediately preceding four quarter period (or if less, the number of full months quarters completed
since the Closing Date), the ratio of (a) EBITDA minus capital expenditures not financed with
proceeds of Indebtedness permitted under this Agreement (other than Advances), to (b) the sum of
(i) all Senior Debt Payments made by the Borrowers, (ii) total cash tax payments made by the
Borrowers and (iii) dividends and distributions paid in cash by the Borrowers.

               “Foreign Subsidiary” shall mean any subsidiary of the Borrowers, Holdings or Parent
that is not a Domestic Subsidiary.

               “Formula Amount” shall have the meaning set forth in Section 2.1(a).

               “Funded Debt” shall mean, with respect to any Person, without duplication, all
Indebtedness for borrowed money evidenced by notes, bonds, debentures, or similar evidences of
Indebtedness, and specifically including Capitalized Lease Obligations, current maturities of
long-term debt, revolving credit and short-term debt extendible beyond one year at the option of
the debtor, and also including, in the case of any Borrower, the funded Obligations.

               “GAAP” shall mean generally accepted accounting principles in the United States of
America in effect from time to time, consistently applied, subject to Section 1.1.

               “GECC Note” shall mean that Promissory Note dated December 2, 2004 in the original
principal amount of $3,300,000 made by Simon Petroleum Inc., an Oklahoma corporation, the Around
the Clock Freightliner Group, Inc. and Bob Mills Furniture Co., Inc., in connection with the
purchase of the Cessna Aircraft.

               “General Intangibles” shall mean and include as to each Borrower all of such
Borrower’s general intangibles, whether now owned or hereafter acquired including, without
limitation, all payment intangibles, chooses in action, causes of action, corporate or other
business records, inventions, designs, patents, patent applications, equipment formulations,
manufacturing procedures, quality control procedures, trademarks, service marks, trade
secrets, goodwill, copyrights, design rights, software, computer information, source codes, codes,
records and dates, registrations, licenses, franchises, customer lists, tax refunds, tax refund
claims, computer programs, all claims under guaranties, security interests or other security held
by or granted to such Borrower to secure payment of any of the Receivables by a Customer (other
than

14

 

to the extent covered by Receivables) all rights of indemnification and all other intangible
property of every kind and nature (other than Receivables).

               “Governmental Body” shall mean any nation or government, any state or other political
subdivision thereof or any entity exercising the legislative, judicial, regulatory or
administrative functions of a government.

               “Guarantor” shall mean any Loan Party who may hereafter guarantee payment or
performance of the whole or any part of the Obligations and “Guarantors” means collectively
all such Persons.

               “Guarantor Security Agreement” shall mean any Security Agreement from time to time
executed by any Guarantor in favor of Agent securing the Guaranty of such Guarantor in form and
substance reasonably acceptable to Agent in its good faith business judgment.

               “Guaranty” shall mean a guaranty of the obligations of Borrowers executed by a
Guarantor in favor of Agent for its benefit and for the ratable benefit of Lenders, which shall be
in form and substance reasonably acceptable to Agent in its good faith business judgment.

               “Hartney Purchase Agreement” shall mean that certain Stock and Asset Purchase
Agreement dated January 12, 2006 by and among Parent, Simons Petroleum, Inc., a Texas corporation
(“Simons-Texas”), ETI Acquisition, Energy Transport, Inc., an Illinois corporation, HFO,
HBI, PSC and other sellers party thereto.

               “Hazardous Discharge” shall have the meaning set forth in Section 4.19(d) hereof.

               “Hazardous Substance” shall mean any substance listed as hazardous substance pursuant
to CERCLA, as amended (42 U.S.C. Sections 9601 et seq.), or as a hazardous material
pursuant to the Hazardous Materials Transportation Act, as amended (49 U.S.C. Sections 1801, et
seq.), or a hazardous waste or a solid waste pursuant to RCRA, as amended (42 U.S.C. Sections
6901 et seq.), or that is regulated by any other applicable Environmental Law including
petroleum and petroleum products, asbestos, polychlorinated biphenyls and lead-containing paint.

               “Hazardous Wastes” shall mean all waste materials subject to regulation under CERCLA,
RCRA or other applicable Environmental Laws relating to hazardous waste disposal.

               “HBI” shall mean Hartney Brothers, Inc., an Illinois corporation.

               “HFO” shall mean Hartney Fuel Oil Co., an Illinois corporation.

               “Holdings” shall mean Global Petroleum, Inc., a Delaware corporation.

               “Inchoate Indemnities” shall mean indemnity obligations of the Borrowers hereunder for
which no claim has yet arisen even though the indemnity provisions hereof shall continue to remain
enforceable contractual provisions with respect to any potential claims.

15

 

               “Indebtedness” of a Person at a particular date shall mean all obligations of such
Person which in accordance with GAAP would be classified upon a balance sheet as liabilities
(except capital stock, accrued dividends, and surplus earned or otherwise) and in any event,
without limitation by reason of enumeration, shall include all indebtedness, debt and other similar
monetary obligations of such Person whether direct or guaranteed, and all premiums, if any, due at
the required prepayment dates of such indebtedness, and all indebtedness secured by a Lien on
assets owned by such Person, whether or not such underlying indebtedness actually shall have been
created, assumed or incurred by such Person. Any indebtedness of such Person resulting from the
acquisition by such Person of any assets subject to any Lien shall be deemed, for the purposes
hereof, to be the equivalent of the creation, assumption and incurring of the indebtedness secured
thereby, whether or not actually so created, assumed or incurred. Any contingent obligations shall
not constitute Indebtedness unless required under GAAP to be recorded on the balance sheet of such
Person as a liability.

               “Intercreditor Agreement” shall mean the Intercreditor Agreement, substantially in the
form of Exhibit C, between the Agent, on behalf of the Lenders, and the JPM Administrative Agent on
behalf of the JPM Secured Parties, as amended, modified and supplemented from time to time.

               “Interest Period” shall mean the period provided for any Eurodollar Rate Loan.

               “Inventory” shall mean and include as to each Borrower all of such Borrower’s now
owned or hereafter acquired inventory, including without limitation all goods, wherever located, to
be furnished under any consignment arrangement, contract of service or held for sale or lease, all
raw materials, work in process, finished goods and materials and supplies of any kind, nature or
description which are or might be used or consumed in such Borrower’s business or used in selling
or furnishing such goods, merchandise and other personal property, and all documents of title or
other documents representing them.

               “Inventory Advance Rate” shall have the meaning set forth in Section 2.1(a)(y)(ii)
hereof.

               “Inventory Appraisals” shall mean those appraisals conducted from time to time as
referred to in Section 4.10 hereof.

               “Investment Property” shall mean and include, as to each Borrower, all of such
Borrower’s now owned or hereafter acquired “investment property” as such term is defined in Section
102(a)(49) of the New York UCC.

               “Issuer” or “Issuer Bank” shall mean any Person who issues a Letter of Credit
and/or accepts a draft pursuant to the terms hereof.

               “JPM Administrative Agent” shall mean JPMorgan Chase Bank, N.A., as administrative
agent under the JPM Credit Agreement.

               “JPM Credit Agreement” shall mean the credit agreement dated as of the date hereof
among Parent, Holdings, the Borrowers, the JPM Lenders and the JPM Administrative

16

 

Agent, as amended
or otherwise modified from time to time in accordance with the terms of the Intercreditor
Agreement.

               “JPM Guarantee and Collateral Agreement” shall mean the JPM Guarantee and Collateral
Agreement dated as of the date hereof among Parent, the Borrowers and the JPM Administrative Agent.

               “JPM Lenders” shall mean the Lenders under the JPM Credit Agreement.

               “JPM Loan Documents” shall mean the Loan Documents as defined in the JPM Credit
Agreement.

               “JPM Loans” shall mean loans made pursuant to the JPM Credit Agreement.

               “JPM Secured Parties” shall mean the JPM Administrative Agent and the Lenders under
the PNC Credit Agreement.

               “JPM Lien” shall have the meaning ascribed to such term in the definition of Permitted
Encumbrances.

               “Leasehold Interests” shall mean all of each Borrower’s right, title and interest in
and to the premises listed on Exhibit B attached hereto.

               “Lender” and “Lenders” shall have the meaning ascribed to such term in the
preamble to this Agreement and shall include each Person which becomes a transferee, successor or
assign of any Lender.

               “Letter of Credit Application” shall have the meaning set forth in Section 2.10(a).

               “Letter of Credit Borrowing” shall have the meaning set forth in Section 2.12(d).

               “Letter of Credit Fees” shall have the meaning set forth in Section 3.2(a).

               “Letter of Credit Sublimit” shall mean, $30,000,000, subject to increase, from time to
time, by Agent in its sole and absolute discretion following written request by Borrowing Agent to
Agent and the obtaining of credit approval with respect thereto by each Lender from its credit
committee.

               “Letters of Credit” shall have the meaning set forth in Section 2.9.

               “Lien” shall mean any mortgage, deed of trust, pledge, hypothecation, collateral
assignment, security interest, lien (whether statutory or otherwise), Charge, claim or encumbrance,
or other security agreement held or asserted in respect of any asset of any kind or nature
whatsoever including, without limitation, any conditional sale or other title retention agreement,
any financing lease (including without limitation any capital lease) having substantially the same
economic effect as any of the foregoing, and the filing of, or agreement to

17

 

give, any financing
statement under the Uniform Commercial Code or comparable law of any jurisdiction. Anything herein
to the contrary notwithstanding, a “Lien” shall not include in any case: (a) any unauthorized
financing statement under the Uniform Commercial Code or comparable law of any jurisdiction (and,
in connection therewith, Borrower hereby covenants and agrees to provide information to Agent with
respect to the unauthorized nature thereof and to pursue forthwith all appropriate means to effect
the termination of record thereof); and (b) “outbound” leases by a Borrower, as a lessor or
sublessor, to third parties.

               “Limited Cure Overadvance” shall mean an Overadvance that results directly from a
change by Agent of the amount of reserves, any Advance Rate, or any eligibility criteria regarding
Eligible Inventory or Eligible Receivables.

               “Loan Agreement Non-Recurring Expenses” shall mean legal fees and expenses, equipment
and real estate appraisals, indemnification expenses and all payments that may arise under Sections
2.19, 4.2, 4.4, 4.12, 4.13 and 4.15(e).

               “Loan Documents” shall mean, individually and collectively, the Loan Agreement and
the Other Documents.

               “Loan Parties” shall mean the collective reference to Parent, Holdings, the Borrowers
and any of their respective Domestic Subsidiaries that are party to any Other Document.

               “Management Agreement” shall mean that certain Professional Services Agreement dated
as of September 18, 2006 by and among NCA II Management, LLC, a Washington limited liability
company, Waud Capital Partners, L.L.C., a Delaware limited liability company, RBCP Energy Fund
Investments, LP, a Delaware limited partnership, Global Petroleum, Inc., a Delaware corporation,
Simons Petroleum, Inc., an Oklahoma corporation and SPI Petroleum LLC, a Delaware limited liability
company.

               “Management Fees” shall mean those certain management fees as described and set forth
in the Management Agreement.

               “Management Stockholders” shall mean the members of management of Parent or its
Subsidiaries who are investors in Parent.

               “Material Adverse Effect” shall mean in each of the following instances with respect
to the Borrowers taken as a whole, a material adverse effect on (a) the condition, operations,
assets, or business of the Borrowers or, with respect to each of Section 5.5 and Section 8.1(j)
hereof, a material adverse effect on the prospects of the Borrowers in addition to all of the
foregoing criteria set forth in this clause (a); (b) the ability of the Borrowers to pay the
Obligations in accordance with the terms thereof; (c) the value of the Collateral, or the
validity, perfection, or priority of Agent’s Liens on the Collateral; or (d) the practical
realization of the benefits of Agent’s and each Lender’s rights and remedies under this Agreement
and the Other Documents.

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               “Maximum Face Amount” shall mean with respect to any Letter of Credit, the face amount
of such Letter of Credit including all automatic increases provided for in such Letter of Credit,
whether or not any such automatic increase has become effective.

               “Maximum Loan Amount” shall mean, as of any date of determination, the Maximum
Revolving Advance Amount.

               “Maximum Revolving Advance Amount” shall mean One Hundred and Eighty Five Million and
00/100 Dollars ($185,000,000), or such higher amount which may result from the provisions
of Section 2.24 hereof.

               “Maximum Undrawn Amount” shall mean with respect to any outstanding Letter of Credit,
the amount of such Letter of Credit that is or may become available to be drawn, including all
automatic increases provided for in such Letter of Credit, whether or not any such automatic
increase has become effective.

               “Modification Notice” shall mean Agent’s notification to Borrowing Agent of a change
in loan eligibility criteria, establishment of reserves, modification of advance rate, as
applicable in the specific provisions set forth in this Agreement and only with respect to
modifications of the criteria themselves, the imposition of new and distinct reserves or a
modification of the applicable advance rate, as relevant hereunder, and shall specifically not
include change that arises from the application of any such existing criteria, reserves or advance
rates, provided, however, and without limitation of the foregoing, no Modification
Notice is required in those circumstances where Agent is correcting the Borrowers’ calculations
with respect to information that the Borrowers have submitted to Agent or Lenders.

               “Modification Notice Period” shall mean a period of three (3) Business Days from the
date of a Modification Notice, provided, however, upon the occurrence and during
the continuance of an Event of Default hereunder, notification alone to Borrowing Agent (without
any further lapse of time) shall be deemed compliance with the Modification Notice Period.

               “Monthly Advances” shall have the meaning set forth in Section 3.1 hereof.

               “Mortgaged Properties”: the real properties listed on Schedule 1.2.1, as to
which the Agent for the benefit of the Lenders shall be granted a Lien pursuant to the Mortgages.

               “Mortgages” shall mean each of the mortgages and deeds of trust made by any Loan Party
in favor of, or for the benefit of, the Agent for the benefit of the Lenders.

               “Multiemployer Plan” shall mean a “multiemployer plan” as defined in Sections 3(37)
and 4001(a)(3) of ERISA.

               “New York UCC” shall mean the Uniform Commercial Code as from time to time in effect
in the State of New York.

               “Obligations” shall mean and include any and all loans, advances, debts, liabilities,
obligations, covenants and duties owing by Borrowers to Lenders or Agent or to any

19

 

other direct or
indirect subsidiary or affiliate of Agent or any Lender with respect to or in connection with this
Agreement, any Other Document, or any other agreement, instrument or document arising in connection
herewith, therewith or otherwise relating hereto or thereto, of any kind or nature, present or
future (including, without limitation, any interest accruing thereon after maturity, or after the
filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding relating to any Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding), whether or not evidenced by any note, guaranty or other
instrument, whether arising under any agreement, instrument or document, (including, without
limitation, this Agreement and the Other Documents) whether or not for the payment of money,
whether arising by reason of an extension of credit, opening of a letter of credit, loan, equipment
lease or guarantee, under any interest or currency or commodity swap, future, option or other
similar agreement (a “Hedging Agreement Obligation”), or in any other manner, whether
arising out of overdrafts or deposit or other accounts or electronic funds transfers (whether
through automated clearing houses or otherwise) or out of the Agent’s or any Lender’s non-receipt
of or inability to collect funds or otherwise not being made whole in connection with a depository
transfer check or other similar arrangements (any of the foregoing in this “whether” clause, a
“Cash Management Obligation”), whether direct or indirect (including those acquired by
assignment or participation), absolute or contingent, joint or several, due or to become due, now
existing or hereafter arising, contractual or tortious, liquidated or unliquidated, including, but
not limited to, any and all of any Borrower’s Indebtedness and/or liabilities under this Agreement,
the Other Documents or under any other agreement between Agent or Lenders and any Borrower with
respect to or in connection with this Agreement, any Other Document, or any other agreement,
instrument or document arising in connection herewith, therewith or otherwise relating hereto or
thereto, together with any and all amendments, extensions, restatements, renewals or increases, and
all costs, fees and expenses of Agent and any Lender incurred in the documentation, negotiation,
modification, enforcement, collection or otherwise in connection with any and all of the foregoing,
including but not limited to reasonable attorneys’ fees and expenses and all obligations of any
Borrower to Agent or Lenders to perform acts or refrain from taking any action. It is understood
that any Hedging Agreement Obligation or Cash Management Obligation of any Borrower to any Lender
or an Affiliate thereof shall be deemed to relate to this Agreement.

               “Original Owners” shall mean Northwest Capital Appreciation, a Delaware corporation,
RBCP Energy Fund Investments, LP, a Delaware limited partnership, Waud Capital Partners, L.P., a
Delaware limited partnership and Simons Texas Limited Partnership (each of the foregoing being
referred to herein as an “Identified Original Owner”, together with any affiliates of each of the
foregoing entities as long as each Identified Original Owner retains majority voting control of the
“Units” such entity owns or otherwise controls as of the date hereof. As used herein the term
“Units” shall have the meaning ascribed to such term as is set forth in the Amended and Restated
Limited Liability Company Agreement, dated as of September 18, 2006, by and among the Parent and
the unitholders party thereto.

               “Other Documents” shall mean the Revolving Credit Note, any Guaranty, any Guarantor Security Agreement, the Intercreditor Agreement, and any and all other agreements, instruments and documents, including, without limitation, guaranties, pledges, collateral assignments, powers of attorney, consents, and all other writings heretofore, now or here
after

20

 

executed and delivered by
any Borrower or any Loan Party in favor of Agent or any Lender as required by this Agreement or any
of the foregoing in respect of the implementation or performance hereof or thereof.

          “Overadvance” shall have the meaning ascribed to such term in Section 2.7 hereof.

          “Parent” shall have the meaning ascribed to such term in the heading paragraph to this
Agreement.

          “Participant” shall mean each Person who shall be granted the right by any Lender to
participate in any of the Advances and who shall have entered into a participation agreement in
form and substance satisfactory to such Lender.

          “Participation Advance” shall have the meaning set forth in Section 2.12(d).

          “Participation Commitment” shall mean each Lender’s obligation to buy a participation
of the Letters of Credit issued hereunder.

          “Payment Office” shall mean initially PNC Bank, National Association, Two Tower Center
Blvd., 21st Floor, East Brunswick, New Jersey 08816; thereafter, such other United
States-located office of Agent, if any, which it may designate by notice to Borrowing Agent and to
each Lender to be the Payment Office.

          “Payoff Letter” shall have the meaning set forth in Section 8.1(b) hereof.

          “PBGC” shall mean the Pension Benefit Guaranty Corporation.

          “Pecos Acquisition Agreement” shall mean the Stock Purchase Agreement dated September
18, 2006 by and among Global Petroleum, Inc., Pecos, Inc., the Pecos Employee Stock ownership and
401(k) Plan, the other shareholders of Pecos, Inc. identified therein and the other Persons which
are parties thereto, as amended.

          “Permitted Encumbrances” shall mean (a) Liens in favor of Agent for the benefit of
Agent and Lenders; (b) Liens for taxes, assessments or other governmental charges not delinquent or
being contested in good faith and by appropriate proceedings and with respect to which proper
reserves have been taken by Borrowers or not required to be paid hereunder; provided,
that, any such Lien shall not have nor attain a priority ahead of the Liens in favor of
Agent or the value of the assets in which Agent has such a Lien and a stay of enforcement of any
such Lien shall be in effect; (c) Liens disclosed in the financial statements referred to in
Section 5.5, the existence of which Agent has consented to in writing; (d) deposits or pledges to
secure obligations under worker’s compensation, social security, unemployment insurance or similar
laws, or under unemployment insurance; (e) deposits or pledges to secure bids, tenders, contracts
(other than contracts for the payment of money), leases, statutory obligations, indemnity,
performance, surety and appeal bonds and other obligations of like nature in each of the foregoing
cases as arising in the ordinary course of any Borrower’s business; (f) (1) judgment Liens that
have been stayed or bonded or otherwise not constituting an Event of Default under

21

 

Section 10.6
hereof and (2) mechanics’, workers’, materialmen’s or other like Liens arising in the ordinary
course of any Borrower’s business with respect to obligations which are not due, which are being
contested in good faith by the applicable Borrower or which are not more than 20 days overdue as
long as the aggregate amount thereof does not exceed $100,000 at any time; (g) Liens placed upon
fixed assets hereafter acquired to secure a portion of the purchase price thereof, provided that
(x) any such lien shall not encumber any other property of the Borrowers and (y) the aggregate
amount of Indebtedness secured by such Liens incurred as a result of such purchases during any
fiscal year shall not exceed the amount provided for in Section 7.6; (h) Liens in favor of
landlords of real property leased by a Borrower, provided that all such Liens are either
subordinated to Agent’s Liens by operation of law or are subject to landlord agreements in favor of
Agent in form acceptable to Agent; (i) utility easements, building restrictions, and such other
similar encumbrances or charges against real property; (j) Liens arising in connection with capital
leases (i) with respect to Equipment acquired or held by Borrower incurred for financing the
acquisition of the Equipment or (ii) existing on equipment when acquired, if, in each of
(i) and (ii) above, the Lien is confined to the property and improvements and the proceeds thereof;
(k) Liens on deposits of cash and cash equivalents made to secure Permitted Indebtedness in
connection with hedging agreements entered into in the ordinary course of Borrower’s business
consistent with past business practices; (l) Liens in favor of customs and revenues authorities
which secure payment of customs duties in connection with the importation of goods; (m) any
interest or title of a licensor, sublicensor, lessor or sublessor under any license or lease
agreement in the property being leased or licensed (provided that either such lessors of real
property shall have executed and delivered a landlord agreement (in form and substance reasonably
satisfactory to Agent in its good faith business judgment) in favor of Agent, or Agent has
otherwise established a reserve (in an amount acceptable to Agent in its good faith business
judgment) in respect thereof); (n) Liens which arise under Article 4 of the UCC on items in
collection and documents and proceeds related thereto, as arising in the ordinary course of
Borrower’s business; (o) Liens deemed to exist in connection with Permitted Investments
to the extent they are deemed to consist of repurchase obligations relating to subject matter of
the applicable Permitted Investment; (p) Liens arising under contracts to sell goods in the
ordinary course of Borrower’s business, including pursuant to Article 2 of the UCC; (q) (I)
interests of lessors under operating leases; and (II) financing statements filed in connection with
consignments as long as the scope of the collateral referenced therein is specific to the specific
items consigned, provided that no item referenced in a consignment financing statement shall
pertain to any category or type of property (such as inventory) that forms the type of the basis of
any Advances hereunder; (r) Liens securing the obligations arising under the Shell BDF Agreements
not to exceed $2,000,000 as permitted under and as contemplated by the Shell Subordination
Agreement and having the priority and rights relating thereto as set forth in the Shell
Subordination Agreement; (s) Liens securing the obligations arising under the Chevron BDF
Agreements not to exceed $2,000,000; (t) Liens on Equipment in favor of Valvoline securing
indebtedness not to exceed $1,000,000; (u) Liens disclosed on Schedule 1.2.2; (v) Liens of
an Existing Lender to be terminated pursuant to the Payoff Letter thereof; (w) rights of setoff or
banker’s liens upon deposits of cash in favor of banks or other depository institutions, but not securing
any indebtedness for money borrowed; (x) Liens on Borrower’s insurance policies and the proceeds
thereof securing solely the financing, provided by the issuer of such policy to Borrower, or such
issuer’s designated financier, of the premiums with respect thereto; (y) rights of third parties to

22

 

receive assets to be transferred by Borrower to such third parties pursuant to transfers of assets
permitted under this Agreement, (z) Liens on assets of the Loan Parties created by the JPM Loan
Documents (the “JPM Liens”), (aa) Liens on assets of Excluded Foreign Subsidiaries securing
Indebtedness permitted by Section 7.8(viii), (bb) Liens which secure the Securitization
Indebtedness and (cc) Liens created by the Aircraft Security Agreement and the Aircraft Chattel
Mortgage, each dated November 30, 2004, in favor of General Electric Capital Corporation, which
Liens encumber the Cessna Aircraft and secure the obligations under the GECC Note.

          “Permitted Holders” shall mean the Equity Investors other than the Management
Stockholders to the extent that the amount of the outstanding voting stock of Parent owned
beneficially or of record by such Management Stockholders in the aggregate at any time exceeds ten
percent (10%) of the total amount of the outstanding voting stock of Parent at such time.

          “Person” shall mean any individual, sole proprietorship, partnership, corporation,
business trust, joint stock company, trust, unincorporated organization, association, limited
liability company, institution, public benefit corporation, joint venture, entity or government
(whether Federal, state, county, city, municipal or otherwise, including any instrumentality,
division, agency, body or department thereof).

          “Plan” shall mean any employee benefit plan within the meaning of Section 3(3) of
ERISA, maintained for employees of Borrowers or any member of the Controlled Group or any such Plan
to which any Borrower or any member of the Controlled Group is required to contribute on behalf of
any of its employees.

          “PNC Environmental Reports” shall mean those certain analytical reports prepared by
Terracon or Environ Corporation regarding environmental issues relating to the Borrowers and the
Collateral provided by the Borrowers to the Agent prior to entering into this Agreement.

          “Pricing Increment” means:

          (A) for and with respect to Revolving Advances, the percentage per annum (with respect to
Domestic Rate Loans or Eurodollar Rate Loans, as the case may be) determined by reference to the
Fixed Charge Coverage Ratio as set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Eurodollar Rate
	Fixed Charge Coverage Ratio	 	Domestic Rate Loans	 	Loans
	less than 1.50 to 1.00
	 	 	0.25	%	 	 	2.00	%
	greater than or equal to
1.50 to 1.00 but less than
1.75 to 1.00
	 	 	0.00	%	 	 	1.75	%
	greater than or equal to
1.75 to 1.00 but less than
2.00 to 1.00
	 	 	0.00	%	 	 	1.50	%
	greater than or equal to
2.00 to 1.00
	 	 	0.00	%	 	 	1.25	%

23

 

          ; and

          (B) for and with respect to the Letter Credit Fees for the ratable benefit of the Lenders as
set forth in Section 3.2(a)(x), the percentage per annum determined by reference to the Fixed
Charge Coverage Ratio as set forth below:

	 	 	 	 	 
	 	 	Letter of Credit Fee for
	 	 	Ratable Benefit of
	Fixed Charge Coverage Ratio	 	Lenders
	less than 1.50 to 1.00
	 	 	2.00 	%
	greater than or equal to 1.50 to
1.00 but less than 1.75 to 1.00
	 	 	1.75 	%
	greater than or equal to 1.75 to
1.00 but less than 2.00 to 1.00
	 	 	1.50 	%
	greater than or equal to 2.00 to
1.00
	 	 	1.25 	%

          ; and

          (C) for and with respect to the facility fees relating to the Revolving Advances for the
ratable benefit of the Lenders as set forth in Section 3.3, the percentage per annum determined by
reference to the Fixed Charge Coverage Ratio as set forth below:

	 	 	 	 	 
	 	 	Facility Fee for Ratable
	Fixed Charge Coverage Ratio	 	Benefit of Lenders
	less than 1.50 to 1.00
	 	 	0.375	%
	greater than or equal to 1.50 to
1.00 but less than 1.75 to 1.00
	 	 	0.250	%
	greater than or equal to 1.75 to
1.00 but less than 2.00 to 1.00
	 	 	0.250	%
	greater than or equal to 2.00 to
1.00
	 	 	0.250	%

          As of the Closing Date, the Pricing Increment shall be determined based on a Fixed Charge
Coverage Ratio greater than 2.00 to 1.00. Thereafter, the Pricing Increment shall be determined,
quarterly, based on the most recent monthly Financial Statements delivered by the Borrowers under Section 9.9 determined for the twelve-month period ending on the last day
of each March, June, September, and December; provided, however, that (i) each
change in the Pricing Increment shall be effective three Business Days after the date on which the
Agent receives the relevant Financial Statements and a duly executed Compliance Certificate
demonstrating such ratio (including during any Interest Period), and (ii) the Pricing Increment
shall be determined on the basis of a Fixed Charge Coverage Ratio of less than 1.50 to 1.00 for so
long as the Agent has not received the information described in clause (i) of this proviso as and
when required under Section 9.9 (without prejudice to the Lenders’ right to charge interest at

24

 

the
Default Rate as provided in Section 3.1 and charge Default Letter of Credit Fees as provided in
Section 3.2).

          “Pro Forma Balance Sheet” shall have the meaning set forth in Section 5.5(a) hereof.

          “Pro Forma Financial Statements” shall have the meaning set forth in Section 5.5(b)
hereof.

          “Projections” shall have the meaning set forth in Section 5.5(b) hereof.

          “PSC” shall mean Petroleum Supply Company, Inc., an Illinois corporation.

          “Purchasing Lender” shall have the meaning set forth in Section 16.3 hereof.

          “RCRA” shall mean the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et
seq., as same may be amended from time to time.

          “Real Property” shall mean all of each Borrower’s right, title and interest in and to
the owned and leased premises identified on Schedule 4.19(a) hereto.

          “Receivables” shall mean and include, as to each Borrower, all of such Borrower’s
accounts, contract rights, instruments (including those evidencing indebtedness owed to Borrowers
by their Affiliates), documents, chattel paper (including electronic chattel paper), general
intangibles relating to accounts, drafts and acceptances, credit card receivables, royalties and
all other forms of obligations owing to such Borrower in each case arising out of or in connection
with the sale or lease of Inventory or the rendition of services, all supporting obligations,
guarantees and other security therefor, whether secured or unsecured, now existing or hereafter
created, and whether or not specifically sold or assigned to Agent hereunder.

          “Receivables Advance Rate” shall have the meaning set forth in Section 2.1(a)(y)(i)
hereof.

          “Release” shall have the meaning set forth in Section 5.7(c)(i) hereof.

          “Reportable Event” shall mean a reportable event described in Section 4043(b) of ERISA
or the regulations promulgated thereunder.

          “Required Lenders” shall mean (A) all Lenders, if there are two or fewer Lenders and
(B) otherwise, Lenders holding at least Fifty-One (51%) of the Advances and, if no Advances are
outstanding, shall mean Lenders holding Fifty-One (51%) of the Commitment Percentages.

          “Reserve Percentage” shall mean as of any day the maximum percentage in effect on such
day, as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for
determining the reserve requirements (including supplemental, marginal and

25

 

emergency reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency
Liabilities”).

          “Revolving Advances” shall mean Advances made pursuant to Section 2.1 hereof.

          “Revolving Credit Note” shall mean, collectively, the promissory notes referred to in
Section 2.1(a) hereof.

          “Revolving Interest Rate” shall mean, as of any date of determination, an interest
rate per annum equal to (a) with respect to Revolving Advances accruing interest as Domestic Rate
Loans, the sum of the Alternate Base Rate plus the applicable Pricing Increment for Revolving
Advances (with respect to Domestic Rate Loans), and (b) with respect to Revolving Advances accruing
interest as Eurodollar Rate Loans, the sum of the Eurodollar Rate plus the applicable Pricing
Increment for Revolving Advances (with respect to Eurodollar Rate Loans).

          “Second-Priority Collateral” shall mean with respect to each Borrower, the following
property now owned or hereafter acquired by the Borrower or in which the Borrower has now or at any
time in the future may acquire any right, title or interest: all Chattel Paper, Documents (other
than title documents with respect to Vehicles), Equipment, General Intangibles, Instruments,
Intellectual Property, Investment Property, Letter-of-Credit Rights and all other property not
described above, all books and records pertaining to the foregoing and, to the extent not otherwise
included in the foregoing, all Proceeds, all Supporting Obligations and all products of any and all
of the foregoing and all collateral security and guarantees given by any Person with respect to any
of the foregoing; but, excluding, however, all First-Priority Collateral and all Excluded Property;
provided, however, that any Collateral, regardless of type, received in connection
with an Asset Sale of First-Priority Collateral or otherwise in exchange for First-Priority
Collateral shall be treated as First-Priority Collateral under this Agreement; provided,
further, that any Collateral of the type that constitutes First-Priority Collateral, if
received in connection with an Asset Sale of Second-Priority Collateral shall be treated as
Second-Priority Collateral under this Agreement and the Intercreditor Agreement.

          “Section 20 Subsidiary” shall mean the Subsidiary of the bank holding company
controlling PNC, which Subsidiary has been granted authority by the Federal Reserve Board to
underwrite and deal in certain Ineligible Securities.

          “Securitization” shall mean, any receivables financing facility or arrangement
pursuant to which a Securitization Subsidiary purchases or otherwise acquires accounts
receivable of the Borrowers and enters into a third party financing on terms that have been
agreed to in writing by the Agent.

          “Securitization Documents” shall mean the documents entered into in connection with
the Securitization.

          “Securitization Indebtedness” shall mean Indebtedness incurred by a Securitization
Subsidiary in connection with the Securitization; provided, that such Indebtedness shall be
non recourse to any Borrower or any Subsidiary of a Borrower (other than a Securitization
Subsidiary) or any property or asset of any Borrower or any Subsidiary of a

26

 

Borrower (other than the property or assets of, or any equity interests or other securities issued by, a Securitization
Subsidiary).

          “Securitization Subsidiary” shall mean any Subsidiary engaged solely in the business
of effecting the Securitization and related activities.

          “Senior Debt Payments” shall mean and include all cash actually expended by Borrowers
to make (a) interest payments on any Funded Debt hereunder, plus, (b) scheduled principal
payments actually made on Funded Debt, plus (c) payments for all fees, commissions and charges set
forth herein and with respect to any Advances, plus (d) capitalized lease payments,
plus (e) actual principal and interest payments, if any, with respect to Shell BDF
Agreements, the Chevron BDF Agreements or any other subordinated obligations.

          “Shell BDF Agreements” shall mean, collectively, (a) that certain Business Development
Fund Agreement as of September 1, 2001, between CSOC Inc. and Equilon Enterprises LLC, (b) that
certain Promissory Note dated September 1, 2001 in the original principal amount of $4,493,460 made
by CSOC Inc. payable to the order of Equilon Enterprises LLC, and (c) that certain Security
Agreement dated as of September 1, 2001, between CSOC Inc., as debtor and Equilon Enterprises, LLC,
as secured party.

          “Shell Subordination Agreement” shall mean that certain Subordination Agreement dated
as of the Closing Date by and among Pennzoil-Quaker State Company d/b/a SOPUS Products, successor
to Equilon Enterprises LLC, CSOC Inc. and Agent.

          “Settlement Date” shall mean the Closing Date and thereafter Wednesday of each week
unless such day is not a Business Day in which case it shall be the next succeeding Business Day.

          “SPI Acquisition” shall mean SPI Acquisition LLC, a Delaware limited liability
company.

          “Sponsors” shall mean Northwest Capital Appreciation, RBC Capital Partners, Waud
Capital Partners and their respective Affiliates, but not including, however, any portfolio
companies of any of the foregoing.

          “Subsidiary” shall mean a corporation or other entity whose shares of stock or other
ownership interests having ordinary voting power (other than stock or other ownership
interests having such power only by reason of the happening of a contingency) to elect a
majority of the directors of such corporation, or other Persons performing equivalent functions for
such entity, are owned, directly or indirectly, by such Person.

          “Term” shall have the meaning set forth in Section 13.1 hereof.

          “Termination Event” shall mean (i) a Reportable Event with respect to any Plan or
Multiemployer Plan; (ii) the withdrawal of any Borrower or any member of the Controlled Group from
a Plan or Multiemployer Plan during a plan year in which such entity was a “substantial employer”
as defined in Section 4001(a)(2) of ERISA; (iii) the providing of notice

27

 

of intent to terminate a
Plan in a distress termination described in Section 4041(c) of ERISA; (iv) the institution by the
PBGC of proceedings to terminate a Plan or Multiemployer Plan; (v) any event or condition (a) which
might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Plan or Multiemployer Plan, or (b) that may result in termination of a
Multiemployer Plan pursuant to Section 4041A of ERISA; or (vi) the partial or complete withdrawal
within the meaning of Sections 4203 and 4205 of ERISA, of any Borrower or any member of the
Controlled Group from a Multiemployer Plan.

          “Transactions” shall have the meaning set forth in Section 5.5 hereof.

          “Transferee” shall have the meaning set forth in Section 16.3(b) hereof.

          “Unbilled Receivables” shall mean and refer to those certain Receivables relating to
which Borrowers have not yet billed for the completed service or the completed sale giving rise
thereto, and that, in any event, Agent has deemed Eligible Receivables in accordance with the
provisions of the definition thereof (other than for their unbilled status as described above).

          “Undrawn Availability” at a particular date shall mean an amount equal to (a) the
lesser of (i) the Formula Amount or (ii) the Maximum Revolving Advance Amount, minus (b)
the sum of (i) the outstanding amount of Advances plus (ii) all amounts due and owing to
Borrowers’ trade creditors which are outstanding beyond the applicable date that each of such trade
creditor obligations is customarily paid based on the trade terms relating thereto, plus
(iii) fees and expenses for which Borrowers are liable hereunder and under all Other Documents but
which have not been paid by or charged to Borrowers’ Account.

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

          “Valvoline” shall mean The Valvoline Company, a division of Ashland, Inc., a Kentucky
Corporation.

          “Week” shall mean the time period commencing with the opening of business on a
Wednesday and ending on the end of business the following Tuesday.

     1.3. Uniform Commercial Code Terms . All terms used herein and defined in the Uniform Commercial Code as adopted in the State of
New York from time to time shall have the meaning given therein unless otherwise defined herein.
To the extent the definition of any category or type of Collateral is expanded by any amendment,
modification or revision to the Uniform Commercial Code, such expanded definition will apply
automatically as of the date of such amendment, modification or revision.

     1.4. Certain Matters of Construction. The terms “herein”, “hereof” and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any particular
section, paragraph or subdivision. Any pronoun used shall be deemed to cover all genders.
Wherever appropriate in the context, terms used herein in the singular also include the plural and

28

 

vice versa. All references to statutes and related regulations shall include any
amendments of same and any successor statutes and regulations. Unless otherwise provided, all
references to any instruments or agreements to which Agent is a party, including, without
limitation, references to any of the Other Documents, shall include any and all modifications or
amendments thereto and any and all extensions or renewals thereof.

     1.5. Certificates. All certificates and other documents or statements of any sort
provided, executed, or attested to by, any officer, director, or employee of any Borrower or
Guarantor, are and will be provided, executed, or attested to on behalf of such Borrower or
Guarantor, and not in such officer’s, director’s, or employee’s individual capacity.

II ADVANCES, PAYMENTS.

     2.1. Revolving Advances. (a) Subject to the terms and conditions set forth in this
Agreement including, without limitation, Section 2.1(b), each Lender, severally and not jointly,
will make Revolving Advances to Borrowers in aggregate amounts outstanding at any time equal to
such Lender’s Commitment Percentage of the lesser of (x) the Maximum Revolving Advance Amount less
the aggregate Maximum Undrawn Amount of outstanding Letters of Credit and (y) an amount equal to
the sum of:

               (i) the sum of:

               (A) up to 85%, subject to the provisions of Section 2.1(b) hereof (such
advance rate being referred to herein as the “Receivables Advance Rate”),
of Eligible Receivables; provided, however, that:

	 	(1)	 	Advances relating
to Extended Term Receivables shall not exceed
$18,000,000 outstanding at any time and

	 	(2)	 	(y) Advances
relating to Unbilled Receivables that are not unbilled
for more than 30 days shall not exceed $35,000,000 at
any time outstanding,

                         plus

	 	(3)	 	[Reserved];

                          plus

               (ii) up to the lesser of:

               (A) (i) up to the lesser of (a) 80% of the cost of the Eligible Inventory or
(b) 90% of the net orderly liquidation value of such Eligible Inventory as Agent
shall determine from time to time based on the results of the applicable Inventory
Appraisals; (the applicable advance rate regarding the related items of Eligible
Inventory being generally referred to herein as the

29

 

“Inventory Advance
Rate”, provided that the Inventory Advance Rate set forth in this
clause (A) shall, under all circumstances, be subject to the provisions of Section
2.1(b) hereof; provided, further, the Receivables Advance Rate and
the Inventory Advance Rate shall be referred to herein collectively as the “Advance
Rates”); or

               (B) $35,000,000,

                         minus

               (iii) the aggregate Maximum Undrawn Amount of outstanding Letters of Credit;

                         minus

               (iv) such reserves as Agent may reasonably deem proper and necessary from time to time
based on its good faith business judgment, which shall not be effective until after Agent
has given the Modification Notice and the Modification Notice Period has passed.

     The amount derived from (X) the sum of Section 2.1(a)(y)(i) and Section 2.1(a)(y)(ii)
minus (Y) Section 2.1 (a)(y)(iii) and (iv) at any time and from time to time shall be
referred to as the “Formula Amount”. The Revolving Advances shall be evidenced by one or
more secured promissory notes (collectively, the “Revolving Credit Note”) substantially in the form
attached hereto as Exhibit 2.1(a).

          (b) Discretionary Rights. Subject to Section 16.2(b) hereof and upon Agent’s giving
the Modification Notice and the passing of the Modification Notice Period, the Advance Rates may be
increased or decreased by Agent at any time and from time to time in the exercise of its good faith
business judgment. Subject to the foregoing, the Borrower consents to any such
increases or decreases and acknowledges that decreasing the Advance Rates or increasing the
reserves may limit or restrict Advances requested by Borrowing Agent.

     2.2. Procedure for Borrowing Advances.

          (a) Borrowing Agent on behalf of any Borrower may notify Agent prior to 12:00 Noon (Central
Time) on a Business Day of a Borrower’s request to incur, on that day, a Revolving Advance
hereunder. Should any amount required to be paid as interest hereunder, or as fees or other
charges under this Agreement or any other agreement with Agent or Lenders, or with respect to any
other Obligation, become due, same shall be deemed a request for a Revolving Advance as of the date
such payment is due, in the amount required to pay in full such interest, fee, charge or Obligation
under this Agreement or any other agreement with Agent or Lenders, and such request shall be
irrevocable, provided, however, with respect to any of the foregoing items that
represent Loan Agreement Non-Recurring Expenses, Agent or the applicable Lender regarding any such
expense amount agrees to provide to Borrowing Agent the invoice relating thereto for Borrowers’
review and to allow Borrowing Agent to address any concerns it may have with respect to any such
invoice with Agent or such Lender, as applicable,

30

 

although it is understood that such a procedure
shall not diminish or otherwise affect the status of any such expenses as Obligations hereunder nor
act to impair the ability of the Agent ultimately to effect payment of such expenses regardless of
the foregoing Borrower review. Further, Agent and Lenders shall not be liable to Borrower or any
other party for any damages of any nature for any failure to provide any such invoices to Borrower.

          (b) Notwithstanding the provisions of (a) above, in the event any Borrower desires to obtain a
Eurodollar Rate Loan, Borrowing Agent shall give Agent at least three (3) Business Days’ prior
written notice, which notice shall be received by Agent no later than 12:00 Noon (Central Time) on
a Business Day for such Business Day to be included as one of such three required Business Days,
specifying (i) the date of the proposed borrowing (which shall be a Business Day), (ii) the type of
borrowing and the amount on the date of such Advance to be borrowed, which amount shall be in a
minimum amount of $500,000 and in integral multiples of $500,000 thereafter, and (iii) the duration
of the first Interest Period therefor. Interest Periods for Eurodollar Rate Loans shall be for
one, two, three or six months; provided, if an Interest Period would end on a day that is
not a Business Day, it shall end on the next succeeding Business Day unless such day falls in the
next succeeding calendar month in which case the Interest Period shall end on the next preceding
Business Day. No Eurodollar Rate Loan shall be made available to Borrower during the continuance
of a Default or an Event of Default.

          (c) Each Interest Period of a Eurodollar Rate Loan shall commence on the date such Eurodollar
Rate Loan is made and shall end on such date as Borrowing Agent may elect as set forth in
subsection (b)(iii) above provided that the exact length of each Interest Period shall be
determined in accordance with the practice of the interbank market for offshore Dollar deposits and
no Interest Period shall end after the last day of the Term. 
          Borrowing Agent shall elect the initial Interest Period applicable to a Eurodollar Rate Loan
by its notice of borrowing given to Agent pursuant to Section 2.2(b) or by its notice of conversion
given to Agent pursuant to Section 2.2(d), as the case may be. Borrowing Agent shall elect the
duration of each succeeding Interest Period by giving irrevocable written notice to Agent of such
duration not less than three (3) Business Days prior to the last day of the then current Interest
Period applicable to such Eurodollar Rate Loan, which notice shall be received by Agent no later
than 12:00 Noon (Central Time) on a Business Day for such Business Day to be included as one of
such three (3) required Business Days. If Agent does not receive timely notice of the Interest
Period elected by Borrowing Agent, Borrowers shall be deemed to have elected to convert to a
Domestic Rate Loan subject to Section 2.2(d) herein below.

          (d) Provided that no Event of Default shall have occurred and be continuing, any Borrower may,
on the last Business Day of the then current Interest Period applicable to any outstanding
Eurodollar Rate Loan, or on any Business Day with respect to Domestic Rate Loans, convert any such
loan into a loan of another type in the same aggregate principal amount provided that any
conversion of a Eurodollar Rate Loan shall be made only on the last Business Day of the then
current Interest Period applicable to such Eurodollar Rate Loan. If a Borrower desires to convert
a loan, Borrowing Agent shall give Agent not less than three (3) Business Days’ prior written
notice to convert from a Domestic Rate Loan to a Eurodollar Rate Loan or one (1) Business Day’s
prior written notice to convert from a Eurodollar Rate Loan to a

31

 

Domestic Rate Loan, specifying the
date of such conversion, the loans to be converted and if the conversion is from a Domestic Rate
Loan to any other type of loan, the duration of the first Interest Period therefore, with any such
notice to be received by Agent no later than 12:00 Noon (Central Time) on a Business Day for such
Business Day to be included as one of such three required Business Days or as the one required
Business Day, as applicable, as noted above. After giving effect to each such conversion, there
shall not be outstanding more than six (6) Eurodollar Rate Loans, in the aggregate.

          (e) At its option and upon one (1) Business Day prior written notice, Borrower may prepay the
Eurodollar Rate loans in whole at any time or in part from time to time, without premium or
penalty, but with accrued interest on the principal being prepaid to the date of such repayment.
Such Borrower shall specify the date of prepayment of Advances which are Eurodollar Rate Loans and
the amount of such prepayment. In the event that any prepayment of a Eurodollar Rate Loan is
required or permitted on a date other than the last Business Day of the then current Interest
Period with respect thereto, such Borrower shall indemnify Agent and Lenders therefor in accordance
with Section 2.2(f) hereof. Partial prepayments of Advances shall be in an aggregate principal
amount of $500,000 or a whole multiple thereof.

          (f) Each Borrower shall indemnify Agent and Lenders and hold Agent and Lenders harmless from
and against any and all losses or expenses that Agent and Lenders may sustain or incur as a
consequence of any prepayment, conversion of or any default by any Borrower in the payment of the
principal of or interest on any Eurodollar Rate Loan or failure by any Borrower to complete a
borrowing of, a prepayment of or conversion of or to a Eurodollar Rate Loan after notice thereof
has been given, including, but not limited to, any interest payable by Agent or Lenders to lenders
of funds obtained by it in order to make or maintain its Eurodollar Rate Loans hereunder. A
certificate as to any additional amounts that describes in reasonable detail the calculations thereof payable pursuant to the foregoing sentence
submitted by Lenders to Borrowing Agent shall be conclusive absent manifest error; such certificate
is to be delivered to Borrowing Agent in a timely manner under the then applicable circumstances
and generally is to be delivered to Borrowing Agent three Business days prior to the applicable due
date of any payment or conversion with payment thereof to be due no later than the applicable
conversion date or prepayment date giving rise thereto.

          (g) Notwithstanding any other provision hereof, if any applicable law, treaty, regulation or
directive, or any change therein or in the interpretation or application thereof, shall make it
unlawful for any Lender (for purposes of this subsection (g), the term “Lender” shall
include any Lender and the office or branch where any Lender or any corporation or bank controlling
such Lender makes or maintains any Eurodollar Rate Loans to make or maintain its Eurodollar Rate
Loans, the obligation of Lenders to make Eurodollar Rate Loans hereunder, as the case may be, shall
forthwith be cancelled and Borrowers shall, if any affected Eurodollar Rate Loans are then
outstanding, promptly upon request from Agent, either pay all such affected Eurodollar Rate Loans
or convert such affected Eurodollar Rate Loans into loans of another type. If any such payment or
conversion of any Eurodollar Rate Loan is made on a day that is not the last day of the Interest
Period applicable to such Eurodollar Rate Loan, Borrowers shall pay Agent, upon Agent’s request,
such amount or amounts as may be necessary to compensate Lenders for any loss or expense sustained
or incurred by Lenders in respect of such Eurodollar

32

 

Rate Loan as a result of such payment or
conversion, including (but not limited to) any interest or other amounts payable by Lenders to
lenders of funds obtained by Lenders in order to make or maintain such Eurodollar Rate Loan. A
certificate as to any additional amounts that describes in reasonable terms the calculations
thereof payable pursuant to the foregoing sentence submitted by Lenders to Borrowing Agent shall be
conclusive absent manifest error and shall be delivered to the Borrowing Agent three Business Days
prior to the due date of any such payment.

     2.3. Disbursement of Advance Proceeds. All Advances shall be disbursed from whichever
office or other place Agent may designate from time to time and, together with any and all other
Obligations of Borrowers to Agent or Lenders, shall be charged to Borrowers’ Account on Agent’s
books. During the Term, Borrowers may use the Revolving Advances by borrowing, prepaying and
reborrowing, all in accordance with the terms and conditions hereof. The proceeds of each
Revolving Advance requested by Borrowers or deemed to have been requested by Borrowers under
Section 2.2(a) hereof shall, with respect to requested Revolving Advances to the extent Lenders
make such Revolving Advances, be made available to the applicable Borrower on the day so requested
by way of credit to such Borrower’s operating account at PNC, or such other bank as Borrowing Agent
may designate following notification to Agent, in immediately available federal funds or other
immediately available funds or, with respect to Revolving Advances deemed to have been requested by
any Borrower, be disbursed to Agent to be applied to the outstanding Obligations giving rise to
such deemed request.

     2.4. [Reserved].

     2.5. Maximum Advances . The aggregate balance of Revolving Advances outstanding at any time shall not exceed the
lesser of (a) Maximum Revolving Advance Amount less the aggregate Maximum Undrawn Amount of
outstanding Letters of Credit or (b) the Formula Amount.

     2.6. Repayment of Advances.

          (a) The Revolving Advances shall be due and payable in full on the last day of the Term
subject to earlier prepayment as herein provided.

          (b) Each Borrower recognizes that the amounts evidenced by checks, notes, drafts or any other
items of payment relating to and/or proceeds of Collateral may not be collectible by Agent on the
date received. Subject to Section 2.6(c), all items of payment shall be deemed applied by Agent on
account of the Obligations on the same Business Day that Agent receives such payments via wire
transfer or electronic depository check or other immediately available funds. Agent is not,
however, required to credit Borrowers’ Account for the amount of any item of payment which is
unsatisfactory to Agent, as determined by Agent in its good faith business judgment in light of
customary banking standards and Agent’s commercial lending practices, and thereupon Agent may
charge Borrowers’ Account for the amount of any item of payment which is returned to Agent unpaid.

          (c) All payments of principal, interest and other amounts payable hereunder, or under any of
the Other Documents shall be made to Agent at the Payment Office not later than

33

 

1:00 P.M. (Central Time) on the due date therefor in lawful money of the United States of America in federal funds or
other funds immediately available to Agent. Agent shall have the right to effectuate payment on
any and all Obligations due and owing hereunder by charging Borrowers’ Account or by making
Advances as provided in Section 2.2 hereof.

          (d) Borrowers shall pay principal, interest, and all other amounts payable hereunder, or under
any related agreement, without any deduction whatsoever, including, but not limited to, any
deduction for any setoff or counterclaim.

     2.7. Repayment of Excess Advances. The aggregate balance of Advances outstanding at
any time in excess of the maximum amount of Advances permitted hereunder (such excess being
referred to herein as an “Overadvance”) shall be immediately due and payable without the
necessity of any demand, at the Payment Office, whether or not a Default or Event of Default has
occurred, subject to the provision set forth in Section 10.1 regarding a cure period for Limited
Cure Overadvances.

     2.8. Statement of Account. Agent shall maintain, in accordance with its customary
procedures, a loan account (“Borrowers’ Account”) in the name of Borrowers in which shall
be recorded the date and amount of each Advance made by Agent and the date and amount of each
payment in respect thereof; provided, however, the failure by Agent to record the
date and amount of any Advance shall not adversely affect Agent or any Lender. Each month, Agent shall send to Borrowing
Agent a statement showing the accounting for the Advances made, payments made or credited in
respect thereof, and other transactions between Agent and Borrowers, during such month. The
monthly statements shall be deemed correct and binding upon Borrowers in the absence of manifest
error and shall constitute an account stated between Lenders and Borrowers unless, in each of the
foregoing instances, Agent receives a written statement of Borrowers’ specific exceptions thereto
within forty-five (45) days after such statement is received by Borrowing Agent. Subject to the
foregoing after such forty-five (45) day period, the records of Agent with respect to the loan
account shall be conclusive evidence absent manifest error of the amounts of Advances and other
charges thereto and of payments applicable thereto.

     2.9. Letters of Credit. Subject to the terms and conditions hereof, Agent agrees to
issue or cause the issuance of standby Letters of Credit (“Letters of Credit”) on behalf of each
Borrower, provided, however, that Agent will not be required to issue or cause to be issued any
Letters of Credit to the extent that the issuance thereof would then cause the sum of (i) the
outstanding Revolving Advances plus (ii) Maximum Undrawn Amount of outstanding Letters of Credit to
exceed the lesser of (x) the Maximum Revolving Advance Amount or (y) the Formula Amount. The
Maximum Undrawn Amount of outstanding Letters of Credit shall not exceed the Letter of Credit
Sublimit then in effect. All disbursements or payments related to Letters of Credit shall be
deemed to be Revolving Advances and shall bear interest at the applicable Revolving Interest Rate;
Letters of Credit that have not been drawn upon shall not bear interest.

     2.10. Issuance of Letters of Credit.

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          (a) Borrowing Agent on behalf of any Borrower may request Agent, upon three (3) Business Days’
notice submitted on or before 10:00 a.m., (Central Time), to issue or cause the issuance of a
Letter of Credit by delivering to Agent at the Payment Office, Agent’s form of Letter of Credit
Application (the “Letter of Credit Application”) completed to the satisfaction of Agent; and, such
other certificates, documents and other papers and information as Agent may reasonably request.
Borrowing Agent, on behalf of any Borrower also has the right to give instructions and make
agreements with respect to any application, any applicable letter of credit and security agreement,
any applicable letter of credit reimbursement agreement and/or any other applicable agreement, any
letter of credit and the disposition of documents, disposition of any unutilized funds, and to
agree with Agent upon any amendment, extension or renewal of any Letter of Credit.

          (b) Each Letter of Credit shall, among other things, (i) provide for the payment of sight
drafts, other written demands for payment, or acceptances of drafts or other written demand for
payment when presented for honor thereunder in accordance with the terms thereof and when
accompanied by the documents described therein and (ii) have an expiry date not later than twelve
(12) months after such Letter of Credit’s date of issuance and in no event later than the last day
of the Term. Each standby Letter of Credit shall be subject either to the
Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500 (“UCP 500”) or the International Standby Practices
(ISP98—International Chamber of Commerce Publication 590) (“ISP98 Rules”), as determined by Agent,
and each trade Letter of Credit shall be subject to UCP 500.

          (c) Agent shall use its reasonable efforts to notify Lenders of the request by Borrowing Agent
for a Letter of Credit hereunder.

     2.11. Requirements for Issuance of Letter of Credit. Borrowing Agent shall authorize
and direct any Issuer to name Borrower as the ‘Applicant’ or ‘Account Party’ of each Letter of
Credit. If Agent is not the Issuer of any Letter of Credit, Borrowing Agent shall authorize and
direct the Issuer to deliver to Agent all instruments, documents, and other writings and property
received by the Issuer pursuant to the Letter of Credit and to accept and rely upon Agent’s
instructions and agreements with respect to all matters arising in connection with the Letter of
Credit or the application therefor.

     2.12. Disbursements, Reimbursement. (a) Immediately upon the issuance of each Letter
of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from Agent a participation in such Letter of Credit and each drawing thereunder in an
amount equal to such Lender’s Commitment Percentage of the Maximum Face Amount of such Letter of
Credit and the amount of such drawing, respectively.

          (b) In the event of any request for a drawing under a Letter of Credit by the beneficiary or
transferee thereof, Agent will promptly notify Borrowing Agent. Provided that it shall have
received such notice, Borrowers shall reimburse (such obligation to reimburse Agent shall sometimes
be referred to as a “Reimbursement Obligation”) Agent prior to 12:00 Noon (Central Time), on each
date that an amount is paid by Agent under any Letter of Credit (each such date, a “Drawing Date”)
in an amount equal to the amount so paid by Agent. In the event

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Borrowers fail to reimburse Agent for the full amount of any drawing under any Letter of Credit by 12:00 Noon (Central Time), on the
Drawing Date, Agent will promptly notify each Lender thereof, and Borrowers shall be deemed to have
requested that a Domestic Rate Loan be made by the Lenders to be disbursed on the Drawing Date
under such Letter of Credit, provided that the sum of (i) the outstanding Revolving Advances to all
Borrowers (including such Domestic Rate Loan then deemed to have been requested) plus (ii) the
Maximum Undrawn Amount of outstanding Letters of Credit may not exceed the lesser of (a) Maximum
Revolving Advance Amount less the aggregate Maximum Undrawn Amount of outstanding Letters of Credit
or (b) the Formula Amount. Any notice given by Agent pursuant to this Section 2.12(b) may be oral
if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall
not affect the conclusiveness or binding effect of such notice.

          (c) Each Lender shall upon any notice pursuant to Section 2.12(b) make available to Agent an
amount in immediately available funds equal to its Commitment Percentage of the amount of the
drawing, whereupon the participating Lenders shall (subject to
Section 2.12(d)) each be deemed to have made a Domestic Rate Loan to Borrowers in that amount.
If any Lender so notified fails to make available to Agent the amount of such Lender’s Commitment
Percentage of such amount by no later than 2:00 p.m. (Central Time) on the Drawing Date, then
interest shall accrue on such Lender’s obligation to make such payment, from the Drawing Date to
the date on which such Lender makes such payment (i) at a rate per annum equal to the Federal Funds
Open Rate during the first three days following the Drawing Date and (ii) at a rate per annum equal
to the rate applicable to Domestic Rate Loans on and after the fourth day following the Drawing
Date. Agent will promptly give notice of the occurrence of the Drawing Date, but failure of Agent
to give any such notice on the Drawing Date or in sufficient time to enable any Lender to effect
such payment on such date shall not relieve such Lender from its obligation under this Section
2.12(c). Each Lender’s Participation Commitment shall continue until the last to occur of any of
the following events: (A) Agent ceases to be obligated to issue or cause to be issued Letters of
Credit hereunder; (B) no Letter of Credit issued or created hereunder remains outstanding and
uncancelled and (C) all Persons (other than the applicable Borrower) have been fully reimbursed for
all payments made under or relating to Letters of Credit.

          (d) With respect to any unreimbursed drawing that is not converted into a Domestic Rate Loan
to Borrowers in whole or in part as contemplated by Section 2.12(b), because of Borrowers’ failure
to satisfy the conditions set forth in Section 8.2 (other than any notice requirements) or for any
other reason, Borrowers shall be deemed to have incurred from Agent a borrowing (each a “Letter of
Credit Borrowing”) in the amount of such drawing. Such Letter of Credit Borrowing shall be due and
payable on demand (together with interest) and shall bear interest at the rate per annum applicable
to a Domestic Rate Loan. Each Lender’s payment to Agent pursuant to Section 2.12(c) shall be
deemed to be a payment in respect of its participation in such Letter of Credit Borrowing and shall
constitute a “Participation Advance” from such Lender in satisfaction of its Participation
Obligation under this Section 2.12.

     2.13. Repayment of Participation Advances (a) Upon (and only upon) receipt by Agent
for its account of immediately available funds from Borrowers (i) in reimbursement of any payment
made by the Agent under the Letter of Credit with respect to which any Lender has

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made a Participation Advance to Agent, or (ii) in payment of interest on such a payment made by Agent
under such a Letter of Credit, Agent will pay to each Lender, in the same funds as those received
by Agent, the amount of such Lender’s Commitment Percentage of such funds, except Agent shall
retain the amount of the Commitment Percentage of such funds of any Lender that did not make a
Participation Advance in respect of such payment by Agent.

          (b) If Agent is required at any time to return to any Borrower, or to a trustee, receiver,
liquidator, custodian, or any official in any insolvency proceeding, any portion of the payments
made by Borrowers to Agent pursuant to Section 2.13(a) in reimbursement of a payment made under the
Letter of Credit or interest or fee thereon, each Lender shall, on demand of Agent, forthwith
return to Agent the amount of its Commitment Percentage of any amounts so returned by Agent plus
interest at the Federal Funds Open Rate.

     2.14. Documentation. Each Borrower agrees to be bound by the terms of the Letter of
Credit Application and by Agent’s or Issuer’s interpretations of any Letter of Credit issued for
any Borrower’s account and Agent’s or Issuer’s written regulations and customary practices relating
to letters of credit, though Agent’s or Issuer’s interpretations may be different from such
Borrower’s own. In the event of a conflict between the Letter of Credit Application and this
Agreement, this Agreement shall govern. It is understood and agreed that, except in the case of
gross negligence or willful misconduct, neither Issuer nor Agent shall be liable for any error,
negligence and/or mistakes, whether of omission or commission, in following Borrowing Agent’s and
any Borrower’s instructions or those contained in the Letters of Credit or any modifications,
amendments or supplements thereto.

     2.15. Determination to Honor Drawing Request. In determining whether to honor any
request for drawing under any Letter of Credit by the beneficiary thereof, Issuer shall be
responsible only to determine that the documents and certificates required to be delivered under
such Letter of Credit have been delivered and that they comply on their face with the requirements
of such Letter of Credit and that any other drawing condition appearing on the face of such Letter
of Credit has been satisfied in the manner so set forth.

     2.16. Nature of Participation and Reimbursement Obligations. Each Lender’s obligation
in accordance with this Agreement to make the Revolving Advances or Participation Advances as a
result of a drawing under a Letter of Credit, and the obligations of Borrowers to reimburse Issuer
upon a draw under a Letter of Credit, shall be absolute, unconditional and irrevocable, and shall
be performed strictly in accordance with the terms of this Section 2.16 under all circumstances,
including the following circumstances:

          (i) any set-off, counterclaim, recoupment, defense or other right which such Lender may
have against Issuer, any Borrower or any other Person for any reason whatsoever;

          (ii) the failure of any Borrower or any other Person to comply, in connection with a
Letter of Credit Borrowing, with the conditions set forth in this Agreement for the making
of a Revolving Advance, it being acknowledged that such conditions are not required for the
making of a Letter of Credit Borrowing and the

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obligation of the Lenders to make
Participation Advances under Section 2.12;

          (iii) any lack of validity or enforceability of any Letter of Credit;

          (iv) any claim of breach of warranty that might be made by any Borrower or any Lender
against the beneficiary of a Letter of Credit, or the existence of any claim, set-off,
recoupment, counterclaim, crossclaim, defense or other right which any Borrower or any
Lender may have at any time against a beneficiary, any successor beneficiary or any
transferee of any Letter of Credit or the proceeds thereof (or any
Persons for whom any such transferee may be acting), Issuer, Agent or any Lender or any
other Person, whether in connection with this Agreement, the transactions contemplated
herein or any unrelated transaction (including any underlying transaction between any
Borrower or any Subsidiaries of such Borrower and the beneficiary for which any Letter of
Credit was procured);

          (v) the lack of power or authority of any signer of (or any defect in or forgery of any
signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy,
enforceability or genuineness of any draft, demand, instrument, certificate or other
document presented under or in connection with any Letter of Credit, or any fraud or alleged
fraud in connection with any Letter of Credit, or the transport of any property or
provisions of services relating to a Letter of Credit, in each case even if the Issuer,
Agent or any of Issuer’s or Agent’s Affiliates has been notified thereof;

          (vi) payment by Issuer under any Letter of Credit against presentation of a demand,
draft or certificate or other document which does not comply with the terms of such Letter
of Credit, other than as arising from the gross negligence or willful misconduct of the
Issuer;

          (vii) the solvency of, or any acts or omissions by, any beneficiary of any Letter of
Credit, or any other Person having a role in any transaction or obligation relating to a
Letter of Credit, or the existence, nature, quality, quantity, condition, value or other
characteristic of any property or services relating to a Letter of Credit;

          (viii) any failure by the Issuer or any of Issuer’s Affiliates to issue any Letter of
Credit in the form requested by any Borrower, unless the Issuer has received written notice
from such Borrower of such failure within three Business Days after the Issuer shall have
furnished such Borrower a copy of such Letter of Credit and such error is material and no
drawing has been made thereon prior to receipt of such notice;

          (ix) any Material Adverse Effect;

          (x) any breach of this Agreement or any Other Document by any party thereto;

          (xi) the occurrence or continuance of an insolvency proceeding with respect to any
Borrower or any Guarantor;

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          (xii) the fact that a Default or Event of Default shall have occurred and be
continuing;

          (xiii) the fact that the Term shall have expired or this Agreement or the Obligations
hereunder shall have been terminated; and

          (xiv) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing.

     2.17. Indemnity. In addition to amounts payable as provided in Section 17.5 hereof,
each Borrower hereby agrees to protect, indemnify, pay and save harmless the Agent, Issuer and any
of Issuer’s or Agent’s Affiliates that have issued a Letter of Credit from and against any and all
claims, demands, liabilities, damages, taxes, penalties, interest, judgments, losses, costs,
charges and expenses (including reasonable fees, expenses and disbursements of counsel and
allocated costs of internal counsel) which the Agent, Issuer or any of Agent’s or Issuer’s
Affiliates may incur or be subject to as a consequence, direct or indirect, of the issuance of any
Letter of Credit, other than as a result of (A) the gross negligence or willful misconduct of the
Agent or Issuer as determined by a final judgment of a court of competent jurisdiction or (b) the
wrongful dishonor by the Issuer or any of Issuer’s Affiliates of a proper demand for payment made
under any Letter of Credit, except if such dishonor resulted from any act or omission, whether
rightful or wrongful, of any present or future de jure or de facto Governmental Body (all such acts
or omissions herein called “Governmental Acts”).

     2.18. Liability for Acts and Omissions. As between Borrowers and Agent, Issuer and
Lenders, each Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of
Credit by, the respective beneficiaries of such Letters of Credit. In furtherance and not in
limitation of the foregoing, neither Agent nor Issuer shall be responsible for: (i) the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party
in connection with the application for an issuance of any such Letter of Credit, even if it should
in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged
(even if Agent or Issuer shall have been notified thereof); (ii) the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit
or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to
be invalid or ineffective for any reason; (iii) the failure of the beneficiary of any such Letter
of Credit, or any other party to which such Letter of Credit may be transferred, to comply fully
with any conditions required in order to draw upon such Letter of Credit or any other claim of any
Borrower against any beneficiary of such Letter of Credit, or any such transferee, or any dispute
between or among any Borrower and any beneficiary of any Letter of Credit or any such transferee;
(iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by
mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in
interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under any such Letter of Credit or of the proceeds
thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond
the control of Agent or Issuer, including any Governmental Acts, and none of the above shall affect
or impair, or prevent the vesting of, any of Agent’s or Issuer’s rights or powers

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hereunder. Nothing in the preceding sentence shall relieve Agent or Issuer from liability for Agent’s or
Issuer’s gross negligence or willful misconduct in connection with actions or omissions described
in such clauses (i) through (viii) of such sentence. In no event shall Agent, Issuer, Agent’s
Affiliates or Issuer’s Affiliates be liable to any Borrower for any indirect, consequential,
incidental, punitive, exemplary or special damages or expenses (including without limitation attorneys’ fees), or for any damages
resulting from any change in the value of any property relating to a Letter of Credit.

     Without limiting the generality of the foregoing, Agent, Issuer and each of its respective
Affiliates (i) may rely on any oral or other communication believed in good faith by Agent, Issuer
or such Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of
Credit; (ii) may honor any presentation if the documents presented appear on their face
substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may
honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was
pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise,
and shall be entitled to reimbursement to the same extent as if such presentation had initially
been honored, together with any interest paid by Agent, Issuer or its Affiliates; (iv) may honor
any drawing that is payable upon presentation of a statement advising negotiation or payment, upon
receipt of such statement (even if such statement indicates that a draft or other document is being
delivered separately), and shall not be liable for any failure of any such draft or other document
to arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any paying or
negotiating bank claiming that it rightfully honored under the laws or practices of the place where
such bank is located; and (vi) may settle or adjust any claim or demand made on Agent, Issuer or
any of its Affiliates in any way related to any order issued at the applicant’s request to an air
carrier, a letter of guarantee or of indemnity issued to a carrier or any similar document (each an
“Order”) and honor any drawing in connection with any Letter of Credit that is the subject of such
Order, notwithstanding that any drafts or other documents presented in connection with such Letter
of Credit fail to conform in any way with such Letter of Credit.

     In furtherance and extension and not in limitation of the specific provisions set forth above,
any action taken or omitted by Agent or Issuer under or in connection with the Letters of Credit
issued by it or any documents and certificates delivered thereunder, if taken or omitted in good
faith, shall not put Agent or Issuer under any resulting liability to any Loan Party or any Lender.

     2.19. Additional Payments. Any sums expended by Agent or any Lender due to Borrower’s
failure to perform or comply with its obligations under this Agreement or any Other Document
including, without limitation, any Borrower’s obligations under Sections 4.2, 4.4, 4.12, 4.13, 4.14
and 6.1 hereof, may be charged to Borrowers’ Account as a Revolving Advance and added to the
Obligations, subject to the provisions of Section 2.2(a) hereof.

     2.20. Manner of Borrowing and Payment. (a) Each borrowing of Revolving Advances shall
be advanced according to the applicable Commitment Percentages of Lenders.

          (b) Each payment (including each prepayment) by Borrowers on account of the principal of and
interest on the Revolving Advances shall be applied to the Revolving

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Advances, pro rata among the Lenders according to the applicable Commitment Percentages of
Lenders. Except as expressly provided herein, all payments (including prepayments) to be made
by any Borrower on account of principal, interest and fees shall be made without set off or
counterclaim and shall be made to Agent on behalf of the Lenders to the Payment Office, in each
case on or prior to 1:00 P.M. (Central Time), in Dollars and in immediately available funds.

          (c) (i) Notwithstanding anything to the contrary contained in Sections 2.13(a) and (b)
hereof, commencing with the first Business Day following the Closing Date, each borrowing of
Revolving Advances shall be advanced by Agent and each payment by any Borrower on account of
Revolving Advances shall be applied first to those Revolving Advances advanced by Agent. On or
before 1:00 P.M. (Central Time), on each Settlement Date commencing with the first Settlement Date
following the Closing Date, Agent and Lenders shall make certain payments as follows: (I) if the
aggregate amount of new Revolving Advances made by Agent during the preceding Week (if any) exceeds
the aggregate amount of repayments applied to outstanding Revolving Advances during such preceding
Week, then each Lender shall provide Agent with funds in an amount equal to its applicable
Commitment Percentage of the difference between (w) such Revolving Advances and (x) such repayments
and (II) if the aggregate amount of repayments applied to outstanding Revolving Advances during
such Week exceeds the aggregate amount of new Revolving Advances made during such Week, then Agent
shall provide each Lender with funds in an amount equal to its applicable Commitment Percentage of
the difference between (y) such repayments and (z) such Revolving Advances.

               (i) Each Lender shall be entitled to earn interest at the applicable Contract Rate on
the principal amount of outstanding Advances which it has funded.

               (ii) Promptly following each Settlement Date, Agent shall submit to each Lender a
certificate with respect to payments received and Advances made during the Week immediately
preceding such Settlement Date. Such certificate of Agent shall be conclusive in the
absence of manifest error.

          (d) If any Lender or Participant (a “benefitted Lender”) shall at any time receive any
payment of all or part of its Advances, or interest thereon, or receive any Collateral in respect
thereof (whether voluntarily or involuntarily or by set-off) in a greater proportion than any such
payment to and Collateral received by any other Lender, if any, in respect of such other Lender’s
Advances, or interest thereon, and such greater proportionate payment or receipt of Collateral is
not expressly permitted hereunder, such benefitted Lender shall purchase for cash from the other
Lenders a participation in such portion of each such other Lender’s Advances, or shall provide such
other Lender with the benefits of any such Collateral, or the proceeds thereof, as shall be
necessary to cause such benefitted Lender to share the excess payment or benefits of such
Collateral or proceeds ratably with each of the other Lenders; provided, however,
that if all or any portion of such excess payment or benefits is thereafter recovered from such
benefitted Lender, such purchase shall be rescinded, and the purchase price and benefits returned,
to the extent of such recovery, but without interest. Each Lender so purchasing a portion of
another Lender’s Advances may exercise all rights of payment (including, without limitation, rights
of set-off) with respect to such portion as fully as if such Lender were the direct holder of such
portion.

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          (e) Unless Agent shall have been notified by telephone, confirmed in writing, by any Lender
that such Lender will not make the amount which would constitute its applicable Commitment
Percentage of the Advances available to Agent, Agent may (but shall not be obligated to) assume
that such Lender shall make such amount available to Agent on the next Settlement Date and, in
reliance upon such assumption, make available to Borrowers a corresponding amount. Agent will
promptly notify Borrowers of its receipt of any such notice from a Lender. If such amount is made
available to Agent on a date after such next Settlement Date, such Lender shall pay to Agent on
demand an amount equal to the product of (i) the daily average Federal Funds Effective Rate
(computed on the basis of a year of 360 days) during such period as quoted by Agent, times (ii)
such amount, times (iii) the number of days from and including such Settlement Date to the date on
which such amount becomes immediately available to Agent. A certificate of Agent submitted to any
Lender with respect to any amounts owing under this paragraph (e) shall be conclusive, in the
absence of manifest error. If such amount is not in fact made available to Agent by such Lender
within three (3) Business Days after such Settlement Date, Agent shall be entitled to recover such
an amount, with interest thereon at the rate per annum then applicable to such Revolving Advances
hereunder, on demand from Borrowers; provided, however, that Agent’s right to such
recovery shall not prejudice or otherwise adversely affect Borrowers’ rights (if any) against such
Lender.

     2.21. Mandatory Prepayments. (a) Subject to Section 4.3 hereof and the Intercreditor
Agreement, when any Loan Party sells or otherwise disposes of any Collateral, other than Inventory
in the ordinary course of business and the sale of Collateral having an aggregate book value in any
fiscal year of less than $1,000,000, or recovers any insurance payment, condemnation award or
similar payment on account of any loss or condemnation of any Collateral in excess of $1,000,000 in
any fiscal year, Borrowers shall repay the Advances in an amount equal to 100% of the net proceeds
of such sale, payment or award (i.e., gross proceeds less the costs thereof), such repayments to be
made promptly but in no event more than ten (10) Business Days following receipt of such net
proceeds, and until the date of payment, such proceeds shall be held in trust for Agent. The
foregoing shall not be deemed to be implied consent to any such sale otherwise prohibited by the
terms and conditions hereof. Such repayments shall be applied to the Revolving Advances
constituting Domestic Rate Loans, until paid in full (subject to Borrower’s ability to reborrow
Revolving Advances in accordance with the terms hereof), and thereafter, to the Revolving Advances
constituting Eurodollar Rate Loans (subject to Borrower’s ability to reborrow Revolving Advances in
accordance with the terms hereof).

          (b) At any time that the aggregate Advances exceed the Formula Amount, if any Loan Party
incurs any Indebtedness, Borrowers shall repay the Advances with the net proceeds thereof in an
amount such that the aggregate Advances do not exceed the Formula Amount. Such repayments shall be
applied to the Revolving Advances constituting Domestic Rate Loans, until such excess over the
Formula Amount is paid in full (subject to Borrower’s ability to reborrow Revolving Advances in
accordance with the terms hereof), and thereafter, to the Revolving Advances constituting
Eurodollar Rate Loans (subject to Borrower’s ability to reborrow Revolving Advances in accordance
with the terms hereof).

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     2.22. Use of Proceeds. Borrowers shall apply the proceeds of Advances to (i) repay
existing indebtedness owed to the Existing Lenders, existing subordinated indebtedness and existing
purchase money indebtedness, (ii) consummate the Transactions, (iii) pay fees and expenses relating
to this transaction, (iii) consummate acquisition transactions for which Borrower shall have
obtained the requisite consent or as otherwise permitted hereunder, and (iv) provide for their
working capital and other general corporate needs.

     2.23. Defaulting Lender. (a) Notwithstanding anything to the contrary contained
herein, in the event any Lender (x) has refused (which refusal constitutes a breach by such Lender
of its obligations under this Agreement) to make available its portion of any Advance or (y)
notifies either Agent or Borrowing Agent that it does not intend to make available its portion of
any Advance (if the actual refusal would constitute a breach by such Lender of its obligations
under this Agreement) (each, a “Lender Default”), all rights and obligations hereunder of
such Lender (a “Defaulting Lender”) as to which a Lender Default is in effect and of the
other parties hereto shall be modified to the extent of the express provisions of this Section 2.23
while such Lender Default remains in effect.

          (b) Advances shall be incurred pro rata from Lenders (the “Non-Defaulting Lenders”)
which are not Defaulting Lenders based on their respective Commitment Percentages, and no
Commitment Percentage of any Lender or any pro rata share of any Advances required to be advanced
by any Lender shall be increased as a result of such Lender Default. Amounts received in respect
of principal of any type of Advances shall be applied to reduce the applicable Advances of each
Lender pro rata based on the aggregate of the outstanding Advances of that type of all Lenders at
the time of such application; provided, that, such amount shall not be applied to any
Advances of a Defaulting Lender at any time when, and to the extent that, the aggregate amount of
Advances of any Non-Defaulting Lender exceeds such Non-Defaulting Lender’s Commitment Percentage of
all Advances then outstanding.

          (c) A Defaulting Lender shall not be entitled to give instructions to Agent or to approve,
disapprove, consent to or vote on any matters relating to this Agreement and the Other Documents.
All amendments, waivers and other modifications of this Agreement and the Other Documents may be
made without regard to a Defaulting Lender and, for purposes of the definition of “Required
Lenders”, a Defaulting Lender shall be deemed not to be a Lender and not to have Advances
outstanding.

          (d) Other than as expressly set forth in this Section 2.23, the rights and obligations of a
Defaulting Lender (including the obligation to indemnify Agent) and the other parties hereto shall
remain unchanged. Nothing in this Section 2.23 shall be deemed to release any Defaulting Lender
from its obligations under this Agreement and the Other Documents, shall alter such obligations,
shall operate as a waiver of any default by such Defaulting Lender hereunder, or shall prejudice
any rights which any Borrower, Agent or any Lender may have against any Defaulting Lender as a
result of any default by such Defaulting Lender hereunder.

          (e) In the event a Defaulting Lender retroactively cures to the satisfaction of Agent the
breach which caused a Lender to become a Defaulting Lender, such Defaulting Lender shall no longer
be a Defaulting Lender and shall be treated as a Lender under this Agreement.

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     2.24. Increase of Maximum Revolving Amount. If at any time after the Closing Date, and
so long as no Event of Default or Default has occurred and is continuing, the Borrowers desire to
increase the Maximum Revolving Advance Amount, the Borrowers shall notify the Agent, who will
promptly notify each Lender thereof, provided that any such increase shall be in a minimum of Ten
Million and 00/100 Dollars ($10,000,000.00) and the aggregate of all such increases shall not
exceed Fifty Million and 00/100 Dollars ($50,000,000.00). The Existing Lenders shall have the
right (but not the obligation) at any time or from time to time within fifteen (15) Business Days
following such notice to increase their respective commitments to make Advances so as to provide
such additional commitment to make Advances pro-rata in accordance with the Commitment Percentages
of each, and any portion of such requested increase which is not provided by any such existing
Lender shall be available to the other existing Lenders; provided, that if more than one existing
Lender desires to increase its commitment to make Advances in respect of the portion not provided
by an existing Lender, such participating Lenders shall provide such portion of the additional
commitments to make Advances on a pro rata basis in accordance with the proportion that their
respective Commitment Percentage bears to each other, and thereafter, to the extent not provided by
existing Lenders, to any additional lending institution or institutions proposed by the Borrowers
and which is approved by the Agent (which approval will not be unreasonably withheld) and which
becomes a party to this Agreement pursuant to documentation reasonably acceptable to the Agent and
prepared at the Borrowers’ expense, which documentation may be executed by the Loan Parties and the
Agent (as administrative agent for the Lenders) without further consent or action of the Lenders,
such consent hereby deemed to be irrevocably given to the Agent by the Lenders; provided, however,
that those Lenders that are increasing their commitments to make Advances pursuant hereto, or are
becoming party hereto for purposes of effecting such increase, may charge certain fees in
connection with such increase as may be agreed to among the Borrowers and the Lenders and that the
Borrowers shall have the right to have all of such increase provided by such approved additional
lending institution or institutions if all the existing Lenders decline to increase their
commitments to make Advances to accommodate any such requested increase. In the event of any such
increase in the Maximum Revolving Advance Amount and in the commitment to make Advances of any
Lender affected pursuant to the terms of this Section 2.24, new Revolving Credit Notes shall, to
the extent deemed reasonably necessary or appropriate by the Agent (or as may be reasonably
requested by an existing Lender increasing its commitment to make Advances hereunder or an
additional Lender that becomes a party hereto), be executed and delivered by the Borrowers and, to
the extent deemed appropriate by the Agent, the surrender and cancellation of existing Revolving
Credit Note(s) shall be effected; and the Loan Parties shall execute and deliver such additional
documentation setting forth the new commitments to make Advances as the Agent shall reasonably
request (which documentation may be executed by the Loan Parties and the Agent (as administrative
agent for the Lenders) without further consent or action of the Lenders, such consent herein is
deemed to be irrevocably given to the Agent by the Lenders).

III INTEREST AND FEES.

     3.1. Interest. Interest on Advances shall be payable in arrears on the first day of
each month with respect to Domestic Rate Loans and, with respect to Eurodollar Rate Loans, at the
end of each Interest Period; provided, if an Interest Period is longer than three months,
Interest

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on Advances with respect to Eurodollar Rate Loans shall be payable in arrears each day
that is three months after the first day of such Interest Period and the last day of such Interest
Period. Interest charges shall be computed on the actual principal amount of Advances outstanding
during the month (the “Monthly Advances”) at a rate per annum equal to with respect to
Revolving Advances, the applicable Revolving Interest Rate (the “Contract Rate”).
Whenever, subsequent to the date of this Agreement, the Alternate Base Rate is increased or
decreased, the applicable Contract Rate for Domestic Rate Loans shall be similarly changed without
notice or demand of any kind (but Agent shall communicate any such change to Borrower in accordance
with its customary practice) an amount equal to the amount of such change in the Alternate Base
Rate during the time such change or changes remain in effect. The Eurodollar Rate shall be
adjusted with respect to Eurodollar Rate Loans without notice or demand of any kind on the
effective date of any change in the Reserve Percentage as of such effective date. Upon and after
the occurrence of an Event of Default, and during the continuation thereof, (i) the Obligations
other than Eurodollar Rate Loans shall bear interest at the applicable Contract Rate for Domestic
Loans plus two percent (2%) per annum and (ii) Eurodollar Rate Loans shall bear interest at the
Revolving Interest Rate for Eurodollar Rate Loans plus two percent (2%) per annum (as applicable,
the “Default Rate”).

     3.2. Letter of Credit Fees. (a) Borrowers shall pay (x) to Agent, for the ratable
benefit of Lenders, fees for each Letter of Credit for the period from and excluding the date of
issuance of same to and including the date of expiration or termination, equal to the product of
(i) the average daily face amount of each outstanding Letter of Credit, multiplied by (ii) a per
annum rate equal to the Pricing Increment with respect to such Letter of Credit Fees, such fees to
be calculated on the basis of a 360-day year for the actual number of days elapsed and to be
payable quarterly in arrears on the first day of each quarter and on the last day of the Term, and
(y) to the Issuer, a fronting fee of one quarter of one percent (0.25%) per annum, together with
any and all administrative, issuance, amendment, payment and negotiation charges with respect to
Letters of Credit and all fees and expenses as agreed upon by the Issuer and the Borrower in
connection with any Letter of Credit, including in connection with the opening, amendment or
renewal of any such Letter of Credit and any acceptances created thereunder and shall reimburse
Agent for any and all fees and expenses, if any, paid by Agent to the Issuer (all of the foregoing
fees, the “Letter of Credit Fees”). All such charges shall be deemed earned in full on the date
when the same are due and payable hereunder and shall not be subject to rebate or proration upon
the termination of this Agreement for any reason. Any such charge in effect at the time of a
particular transaction shall be the charge for that transaction, notwithstanding any subsequent
change in the Issuer’s prevailing charges for that type of transaction. All Letter of Credit Fees payable hereunder
shall be deemed earned in full on the date when the same are due and payable hereunder and shall
not be subject to rebate or proration upon the termination of this Agreement for any reason. Upon
and after the occurrence of an Event of Default, and during the continuation thereof, the Letter of
Credit Fees shall be increased by an additional two (2) percentage points per annum.

          (b) On demand upon the occurrence and during the continuance of an Event of Default, Borrower
will cause cash to be deposited and maintained in an account with Agent, as cash collateral, in an
amount equal to one hundred and five percent (105%) of the outstanding Letters of Credit, and
Borrower hereby irrevocably authorizes Agent, in its discretion, on

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Borrower’s behalf and in
Borrower’s name, to open such an account and to make and maintain deposits therein, or in an
account opened by Borrower, in the amounts required to be made by Borrower, out of the proceeds of
Receivables or other Collateral or out of any other funds of Borrower coming into any Lender’s
possession at any time. Agent will invest such cash collateral (less applicable reserves) in such
short-term money-market items as to which Agent and Borrower mutually agree and the net return on
such investments shall be credited to such account and constitute additional cash collateral.
Borrower may not withdraw amounts credited to any such account except upon payment and performance
in full of all Obligations in cash or other immediately available funds and termination of this
Agreement and other Loan Documents.

     3.3. Facility Fee. If, for any month during the Term, the average daily unpaid
balance of the Revolving Advances for each day of such month does not equal the Maximum Revolving
Advance Amount less the aggregate amount of outstanding Letters of Credit, then Borrowers shall pay
to Agent for the ratable benefit of Lenders a fee at a per annum rate equal to the product of (i)
the Pricing Increment with respect to such facility fees, multiplied by (ii) the amount by which
the Maximum Revolving Advance Amount less the aggregate amount of outstanding Letters of Credit
exceeds such average daily unpaid balance. Such fee shall be payable to Agent in arrears on the
first day of each quarter with respect to the immediately preceding quarter period.

     3.4. Fee Letter. Borrower shall pay the amounts required to be paid in the Fee Letter
in the manner and at the times required by the Fee Letter.

     3.5. Computation of Interest and Fees. Interest and fees hereunder shall be computed
on the basis of a year of 360 days and for the actual number of days elapsed. If any payment to be
made hereunder becomes due and payable on a day other than a Business Day, the due date thereof
shall be extended to the next succeeding Business Day and interest thereon shall be payable at the
applicable Contract Rate for Domestic Rate Loans during such extension.

     3.6. Maximum Charges . In no event whatsoever shall interest and other charges charged hereunder exceed the
highest rate permissible under law. In the event interest and other charges as computed hereunder
would otherwise exceed the highest rate permitted under law, such excess amount shall be first
applied to any unpaid principal balance owed by Borrowers, and if the then remaining excess amount
is greater than the previously unpaid principal balance, Lenders shall promptly refund such excess
amount to Borrowers and the provisions hereof shall be deemed amended to provide for such
permissible rate.

     3.7. Increased Costs. In the event that any applicable law, treaty or governmental
regulation, or any change therein or in the interpretation or application thereof, or compliance by
any Lender (for purposes of this Section 3.7, the term “Lender” shall include Agent or any Lender
and any corporation or bank controlling Agent or any Lender) and the office or branch where Agent
or any Lender (as so defined) makes or maintains any Eurodollar Rate Loans with any request or
directive (whether or not having the force of law) from any central bank or other financial,
monetary or other authority, shall:

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          (a) subject Agent or any Lender to any tax of any kind whatsoever with respect to this
Agreement or any Other Document or change the basis of taxation of payments to Agent or any Lender
of principal, fees, interest or any other amount payable hereunder or under any Other Documents
(except for taxes on, or changes in the rate or basis of taxation for any tax on, the net income or
profits of Agent or any Lender by the jurisdiction in which it maintains its principal office and
except for changes in the method of determination of applicable franchise taxes or similar taxes);

          (b) impose, modify or hold applicable any reserve, special deposit, assessment or similar
requirement against assets held by, or deposits in or for the account of, advances or loans by, or
other credit extended by, any office of Agent or any Lender, including (without limitation)
pursuant to Regulation D of the Board of Governors of the Federal Reserve System; or

          (c) impose on Agent or any Lender or the London interbank Eurodollar market any other
condition with respect to this Agreement or any Other Document;

and the result of any of the foregoing is to increase the cost to Agent or any Lender of making,
renewing or maintaining its Advances hereunder by a material amount or to reduce the amount of any
payment (whether of principal, interest or otherwise) in respect of any of the Advances by a
material amount, then, in any case Borrowers shall promptly pay Agent or such Lender within 20 days
of the receipt of a certificate as set forth in the next sentence, such additional amount as will
compensate Agent or such Lender for such additional cost or such reduction, as the case may be,
provided, however, that the foregoing shall not apply to increased costs which are
reflected in the Eurodollar Rate, nor apply to any increased costs that arose more than 180 days
prior to delivery of such certificate by Agent or such Lender. Agent or such Lender shall certify
the amount of such additional cost or reduced amount to Borrowers, and such certification shall be
conclusive absent manifest error. Any Lender or the Agent making any claim under this
Section 3.7 shall provide to Borrower a certificate stating (including the calculation of any basis
for, in full detail) the amount of such claim. If Agent or any Lender receives, or becomes
entitled to receive, any credit against, remission for, repayment or refund of, or deduction for,
any amount giving rise to any payment or reimbursement, or increase in payment or reimbursement,
actually made by Borrower under this Section 3.7 such Lender shall promptly reimburse to
Borrower the amount of such credit, remission, repayment, refund, or deduction attributable the
payment made by Borrower.

     3.8. Basis For Determining Interest Rate Inadequate or Unfair. In the event that
Agent or any Lender shall have determined in such party’s good faith business judgment that:

          (a) reasonable means do not exist for ascertaining the Eurodollar Rate for any Interest
Period; or

          (b) Dollar deposits in the relevant amount and for the relevant maturity are not available in
the London interbank Eurodollar market, with respect to an outstanding Eurodollar Rate Loan, a
proposed Eurodollar Rate Loan, or a proposed conversion of a Domestic Rate Loan into a Eurodollar
Rate Loan;

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then Agent shall give Borrowing Agent prompt written, telephonic or telegraphic notice of such
determination. If such notice is given, (i) any such requested Eurodollar Rate Loan shall be made
as a Domestic Rate Loan, unless Borrowing Agent shall notify Agent no later than 12:00 Noon
(Central Time) two (2) Business Days prior to the date of such proposed borrowing, that its request
for such borrowing shall be cancelled or made as an unaffected type of Eurodollar Rate Loan, (ii)
any Domestic Rate Loan or Eurodollar Rate Loan which was to have been converted to an affected type
of Eurodollar Rate Loan shall be continued as or converted into a Domestic Rate Loan, or, if
Borrowing Agent shall notify Agent, no later than 12:00 Noon (Central Time) two (2) Business Days
prior to the proposed conversion, shall be maintained as an unaffected type of Eurodollar Rate
Loan, and (iii) any outstanding affected Eurodollar Rate Loans shall be converted into a Domestic
Rate Loan, or, if Borrowing Agent shall notify Agent, no later than 12:00 Noon (Central Time) two
(2) Business Days prior to the last Business Day of the then current Interest Period applicable to
such affected Eurodollar Rate Loan, shall be converted into an unaffected type of Eurodollar Rate
Loan, on the last Business Day of the then current Interest Period for such affected Eurodollar
Rate Loans. Until the above determination has been modified and, thereupon, such notice has been
withdrawn, Lenders shall have no obligation to make an affected type of Eurodollar Rate Loan or
maintain outstanding affected Eurodollar Rate Loans and no Borrower shall have the right to convert
a Domestic Rate Loan or an unaffected type of Eurodollar Rate Loan into an affected type of
Eurodollar Rate Loan.

     3.9. Capital Adequacy. (a) In the event that Agent or any Lender or any Issuer shall
have determined that any applicable law, rule, regulation or guideline regarding capital adequacy,
or any change therein, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or
compliance by Agent or any Lender or any Issuer (for purposes of this Section 3.9, the term
“Lender” shall include Agent, any Lender or any Issuer and any corporation or bank controlling
Agent or any Lender or any Issuer) and the office or branch where Agent or any Lender (as so
defined) makes or maintains any Eurodollar Rate Loans with any request or directive regarding
capital adequacy (whether or not having the force of law) of any such authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return on Agent or any
Lender’s capital as a consequence of its obligations hereunder to a level below that which Agent or
such Lender could have achieved but for such adoption, change or compliance (taking into
consideration Agent’s and each Lender’s policies with respect to capital adequacy) by an amount
deemed by Agent or any Lender to be material, then, from time to time, Borrowers shall pay upon
demand to Agent or such Lender such additional amount or amounts as will compensate Agent or such
Lender for such reduction. In determining such amount or amounts, Agent or such Lender may use any
reasonable averaging or attribution methods. The protection of this Section 3.9 shall be available
to Agent and each Lender regardless of any possible contention of invalidity or inapplicability
with respect to the applicable law, regulation or condition.

          (b) If any Lender becomes entitled to claim any compensation pursuant to Section 3.9(a), it
shall notify Borrowing Agent thereof within 180 days after such Lender becomes aware of the nature
and extent of such claim and shall notify Agent thereof. A certificate as to any additional
amounts payable pursuant hereto submitted by a Lender to Borrowing Agent shall be conclusive absent
manifest error. Such certificate shall outline in

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reasonable detail the computation of any amounts
claimed by it hereunder and the assumptions underlying such computation. No Lender shall be
entitled to any compensation hereunder unless it shall have notified Borrowing Agent that it will
demand compensation not later than 180 days after the date on which the Lender becomes aware of the
nature and extent of the claim.

     3.10. Replacement of Lenders. If any Lender (an “Affected Lender”) (a) makes
demand upon Borrowers for (or if Borrowers are otherwise required to pay) amounts pursuant to
Section 3.7 or 3.9, (b) is unable to make or maintain Eurodollar Rate Loans as a result of a
condition described in Section 2.2(g), (c) is a Defaulting Lender, or (d) denies any consent
requested by Agent pursuant to Section 16.2(b), Borrowers may, within ninety (90) days of receipt
of such demand, notice (or the occurrence of such other event causing Borrower to be required to
pay such compensation or causing Section 2.2(g) to be applicable), or Lender Default or denial of a
request by Agent pursuant to Section 16.2(b), as the case may be, by notice (a “Replacement
Notice”) in writing to Agent and such Affected Lender (i) request the Affected Lender to
cooperate with Borrowers in obtaining a replacement Lender satisfactory to Agent and Borrowers (the
“Replacement Lender”); (ii) request the non-Affected Lenders to acquire and assume all of
the Affected Lender’s Advances and Commitment Percentage as provided herein, but none of such
Lenders shall be under an obligation to do so; or (iii) propose a Replacement Lender subject to
approval by Agent in its good faith business judgment. If any satisfactory Replacement Lender
shall be obtained, and/or if any one or more of the non-Affected Lenders shall agree to acquire and
assume all of the Affected Lender’s Advances and Commitment Percentage, then such Affected Lender
shall assign, in accordance with Section 16.3, all of its Advances and Commitment
Percentage and other rights and obligations under this Agreement and the Other Documents to
such Replacement Lender or non-Affected Lenders, as the case may be, in exchange for payment of the
principal amount so assigned and all interest and fees accrued on the amount so assigned, plus all
other Obligations then due and payable to the Affected Lender.

IV COLLATERAL: GENERAL TERMS.

     4.1. Security Interest in the Collateral.

          (a) To secure the prompt payment and performance to Agent and each Lender of the Obligations,
Borrowers hereby collaterally assigns, and further pledges and grants to Agent for its benefit and
for the ratable benefit of each Lender a continuing first-priority security interest (the
“First-Priority Interest”) in and to, all of its First-Priority Collateral, whether now
owned or existing or hereafter acquired or arising and wheresoever located. Borrowers shall mark
its books and records relating to shares or member interests, as applicable, as may be necessary or
appropriate to evidence, protect and perfect Agent’s First-Priority Interest.

          (b) To secure the prompt payment and performance to Agent and each Lender of the Obligations,
each Borrower hereby collaterally assigns, and further pledges and grants to Agent for its benefit
and for the ratable benefit of each Lender a continuing second-priority security interest (the
“Second-Priority Interest”) in and to, all of its Second-Priority Collateral, whether now
owned or existing or hereafter acquired or arising and wheresoever located. Each Borrower shall
mark its books and records relating to shares or member interests, as applicable,

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as may be
necessary or appropriate to evidence, protect and perfect Agent’s Second-Priority Interest.
Borrower shall promptly provide Agent with written notice of all commercial tort claims in excess
of $100,000, such notice to contain (a) (i) with respect to litigated claims, the case title
together with the applicable court, or (ii) with respect to arbitration or other claims, the name
of the parties together with the applicable tribunal, and (b) a brief description of the claim(s).
Upon delivery of each such notice, such Borrower shall be deemed to hereby grant to Agent a
Second-Priority Interest and lien in and to such commercial tort claims and all proceeds thereof
and to have deemed to have updated Schedule 4.1 with respect thereto.

     4.2. Perfection of Security Interest. Each Borrower shall take all action that may be
necessary or desirable, or that Agent in its good faith business judgment may reasonably request,
so as at all times to maintain the validity, perfection, enforceability and priority of Agent’s
security interest in the Collateral (with the understanding that the Collateral may be subject to
Permitted Encumbrances as otherwise provided for herein) or to enable Agent to protect, exercise or
enforce its rights hereunder and in the Collateral, including, but not limited to, (i) immediately
discharging all Liens other than Permitted Encumbrances, (ii) obtaining landlords’ or mortgagees’
lien waivers (to the extent obtainable with Borrower’s commercially reasonable efforts and with the
further understanding that the failure to obtain any such waivers may result in the establishment
of reserves or the taking of other actions that may reduce availability for Advances hereunder), subject to the
provisions set forth in Section 6.11 hereof regarding bailee letter agreements, (iii) delivering to
Agent, endorsed or accompanied by such instruments of assignment as Agent may specify from time to
time in accordance with instructions from Agent, and stamping or marking, in such manner as Agent
may specify, any and all chattel paper, instruments, letters of credits and advices thereof and
documents of title evidencing or forming a part of the Collateral, (iv) entering into warehousing,
lockbox and other custodial arrangements satisfactory to Agent as determined by Agent in its good
faith business judgment, and (v) executing and delivering control agreements, instruments of
pledge, mortgages, notices and collateral assignments, in each case in form and substance
satisfactory to Agent in its good faith business judgment, relating to the creation, validity,
perfection, maintenance or continuation of Agent’s security interest under the Uniform Commercial
Code or other applicable law. Each Borrower hereby authorizes Agent to file financing statements
without notice to Borrower in all appropriate jurisdictions, as Agent deems necessary or desirable,
in order to perfect or protect Agent’s security interest in the Collateral and Agent agrees to
provide to Borrowing Agent copies thereof. By its signature hereto, each Borrower hereby
authorizes Agent to file against such Borrower, one or more financing, continuation, or amendment
statements pursuant to the Uniform Commercial Code in form and substance satisfactory to Agent
(which statements may describe the collateral as “all assets” or a description of similar import).
All charges, expenses and fees Agent may incur in doing any of the foregoing, and any local taxes
relating thereto, shall be charged to Borrowers’ Account as Revolving Advance of a Domestic Rate
Loan and added to the Obligations, or, at Agent’s option, shall be paid to Agent for the ratable
benefit of Lenders as set forth in Section 2.2(a) hereof.

     4.3. Disposition of Collateral. Each Borrower will safeguard and protect all
Collateral in order to, among other things, protect the Agent’s interest therein, and no Borrower
shall make any disposition thereof whether by sale, lease or otherwise except (a) the sale of
Inventory in the ordinary course of business; (b) sale/leaseback transactions relating to which the
property that is

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the subject of any such transaction was acquired for the purpose thereof within
the past 90 days prior to the consummation of the sale/leaseback transaction; (c) (i) the sale,
lease or other disposition of assets by a Borrower to another Borrower or (ii) the sale, lease or
other disposition of assets by a Borrower or any Subsidiary of a Borrower, in each case with
respect to this clause (c) only, in the ordinary course of business, to a Subsidiary of a Borrower,
as long as the transferee of such assets is a secured Guarantor hereunder subject to agreements,
instruments and other documentation acceptable to Agent in its good faith business judgment; (d)
non-exclusive licenses of intellectual property of the Borrower and its Subsidiaries in the
ordinary course of business; (e) the sale, exchange or other disposition of Cash Equivalents in the
ordinary course of business; (f) the termination, surrender or sublease of a real estate lease of
the Borrower or any of its Subsidiaries in the ordinary course of business, provided that Borrower
shall advise Agent in writing of any termination, surrender or sublease that is material; (g) the
disposition or transfer of obsolete and worn-out Equipment or Equipment that is no longer used or
useful, in each case in the ordinary course of business, during any fiscal year having an aggregate
fair market value of not more than $1,500,000 and only to the extent that (i) the proceeds of any
such disposition are used or allocated, and in fact are subsequently used, to acquire replacement
Equipment which is subject to Agent’s First-Priority Interest or Second-Priority Interest, as the case may be,
or (ii) the proceeds of which are remitted to Agent to be applied pursuant to Section 2.21, and (h)
the disposition of Collateral pursuant to the Intercreditor Agreement and (j) dispositions of
accounts receivable and related assets under the Securitization Documents (any of the foregoing is
referred to herein as a “Permitted Disposition”).

     4.4. Preservation of Collateral. Following the occurrence and during the continuance
of an Event of Default, in addition to the rights and remedies set forth in Section 11.1 hereof,
Agent, in the exercise of its good faith business judgment: (a) may at any time take such steps as
Agent deems necessary to protect Agent’s interest in and to preserve the Collateral, including the
hiring of such security guards or the placing of other security protection measures as Agent may
deem appropriate; (b) may employ and maintain at any of any Borrower’s premises a custodian who
shall have full authority to do all acts necessary to protect Agent’s interests in the Collateral;
(c) may lease warehouse facilities to which Agent may move all or part of the Collateral; (d) may
use any Borrower’s owned or leased lifts, hoists, trucks and other facilities or equipment for
handling or removing the Collateral; and (e) shall have, and is hereby granted, a right of ingress
and egress to the places where the Collateral is located, and may proceed over and through any of
Borrower’s owned or leased property. Each Borrower shall cooperate fully with all of Agent’s
efforts to preserve the Collateral and will take such actions to preserve the Collateral as Agent
in its good faith business judgment may direct. All of Agent’s expenses of preserving the
Collateral, including any expenses relating to the bonding of a custodian, shall be charged to
Borrowers’ Account as a Revolving Advance of a Domestic Rate Loan and added to the Obligations in
accordance with Section 2.2(a) hereof.

     4.5. Ownership of Collateral. With respect to the Collateral, at the time the
Collateral becomes subject to Agent’s security interest: (a) each Borrower shall be the sole
owner of and fully authorized and able to sell, transfer, pledge and/or grant a First-Priority
Interest or a Second-Priority Interest, as the case may be, in each and every item of its
respective Collateral to Agent (with the further understanding that the Collateral may also from
time to time be subject to Permitted Encumbrances); and, except for Permitted Encumbrances, the
Collateral shall be free

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and clear of all Liens and encumbrances whatsoever; (b) each document and
agreement constituting Collateral executed by each Borrower or delivered to Agent or any Lender in
connection with this Agreement shall be true and correct in all material respects; (c) all
signatures and endorsements of each Borrower that appear on such documents and agreements shall be
genuine and each Borrower shall have full capacity to execute same; and (d) each Borrower’s
Equipment and Inventory shall be located at locations specifically identified on Schedule
4.5 (as Borrower may update from time to time by giving written notice to Agent thereof,
provided the foregoing ongoing permitted updates of such Schedule shall only be allowed as
to additional locations of such property within the United States, and such property and any such
additional locations shall remain subject to any and all provisions of this Agreement and the other
Loan Documents) and shall not be removed from such location(s) without the prior written consent of
Agent, except if in-transit among such locations or out for repair, and except with respect to the sale of
Inventory in the ordinary course of business and Equipment to the extent permitted in Section 4.3
hereof.

     4.6. Defense of Agent’s and Lenders’ Interests. Until (a) payment and performance in
full of all of the Obligations in cash or other immediately available funds (other than with
respect to the Inchoate Indemnities) and (b) termination of this Agreement, Agent’s interests in
the Collateral shall continue in full force and effect. Each Borrower shall defend Agent’s
interests in the Collateral against any and all Persons. At any time following demand by Agent for
payment of all Obligations and upon the occurrence and continuance of an Event of Default, Agent
shall have the right to take possession of the indicia of the Collateral and the Collateral in
whatever physical form contained, including without limitation: labels, stationery, documents,
instruments and advertising materials. If Agent exercises this right to take possession of the
Collateral, Borrowers shall, upon demand, assemble it in the best manner reasonably possible and
make it available to Agent at a place reasonably convenient to Agent. In addition, with respect to
all Collateral, Agent and Lenders shall be entitled to all of the rights and remedies set forth
herein and further provided by the Uniform Commercial Code or other applicable law. Upon the
occurrence and during the continuation of an Event of Default (and after verbal or written notice
to the Borrowing Agent), each Borrower shall upon Agent’s request, and Agent may, at its option,
instruct all suppliers, carriers, forwarders, warehousers or others receiving or holding cash,
checks, Inventory, documents or instruments in which Agent holds a security interest to deliver
same to Agent and/or subject to Agent’s order and if they shall come into any Borrower’s
possession, they, and each of them, shall be held by such Borrower in trust as Agent’s trustee, and
such Borrower will immediately deliver them to Agent in their original form together with any
necessary endorsement.

     4.7. Books and Records. Each Borrower shall (a) keep proper books of record and
account in which full, true and correct entries in all material respects will be made of all
dealings or transactions of or in relation to its business and affairs; (b) set up on its books
accruals with respect to all taxes, assessments, charges, levies and claims; and (c) on a
reasonably current basis set up on its books, from its earnings, allowances against doubtful
Receivables, advances and investments and all other proper accruals (including without limitation
by reason of enumeration, accruals for premiums, if any, due on required payments and accruals for
depreciation, obsolescence, or amortization of properties), which should be set aside from such
earnings in connection with its business. All determinations pursuant to this subsection shall be
made in

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accordance with, or as required by, GAAP in the opinion of such independent public
accountant as shall then be regularly engaged by Borrowers.

     4.8. Financial Disclosure. Each Borrower hereby irrevocably authorizes and directs
all accountants and auditors employed by such Borrower at any time during the Term, upon reasonable
notice to the Borrowing Agent if no Default or Event of Default then exists (and with no notice
required if a Default or Event of Default has occurred and is continuing), to exhibit and deliver to Agent
and each Lender copies of any of any Borrower’s financial statements, trial balances or other
accounting records of any sort in the accountant’s or auditor’s possession, and to disclose to
Agent and each Lender any information such accountants may have concerning such Borrower’s
financial status and business operations, and relating to which, Agent agrees to give Borrowing
Agent notice of any meeting it intends to have with such accountants and auditors so as to afford
Borrowers the opportunity to attend any such meeting, although such a meeting may nevertheless
proceed without any of the Borrowers being present. Each Borrower hereby authorizes all federal,
state and municipal authorities to furnish to Agent and each Lender copies of reports or
examinations relating to such Borrower, whether made by such Borrower or otherwise; however, Agent
and each Lender will attempt to obtain such information or materials directly from such Borrower
prior to obtaining such information or materials from such accountants or such authorities.

     4.9. Compliance with Laws. Each Borrower shall comply with all acts, rules,
regulations and orders of any legislative, administrative or judicial body or official applicable
to its respective Collateral or any part thereof or to the operation of such Borrower’s business
the non-compliance with which could reasonably be expected to have a Material Adverse Effect. All
assets of Borrowers at all times shall be maintained in accordance with the requirements of all
insurance carriers which provide insurance with respect thereto so that such insurance shall remain
in full force and effect.

     4.10. Inspection of Premises; Inventory Appraisal. At (i) all reasonable times during
regular business hours and upon prior notice to Borrowing Agent if no Event of Default has occurred
and is continuing, and (ii) all times whatsoever and without the requirement of providing any
notice if an Event of Default has occurred and is continuing, Agent and each Lender shall have full
access to and the right to audit, check, inspect the Collateral and to make abstracts and copies
from each Borrower’s books, records, audits, correspondence and all other papers relating to the
Collateral, and the operation of each Borrower’s business, with Agent and each Lender under
customary and usual circumstances generally coordinating the undertaking of the foregoing with the
relevant Borrower. Further, at such times as Agent deems advisable or necessary, and in no event
more than two times per year at the expense of the Borrowers (and at such other times as the Agent
and Lenders may elect to do so at their own expense) unless an Event of Default has occurred and is
continuing (in which event no such frequency limitation shall apply), Agent shall cause to be
conducted an appraisal of the Inventory, with appraisers acceptable to Agent in its good faith
business judgment and with results determined to be acceptable to the Agent in its good faith
business judgment; the results thereof are to be used by the Agent, if the Agent in its good faith
business judgment so deems its advisable, to reset the applicable Inventory Advance Rates in
Section 2.1(a)(y)(ii) hereof such that the Revolving Advances relating to each applicable type of
Inventory Advance shall not exceed 90% of the net

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orderly liquidation value of such Eligible
Inventory pursuant to any such appraisal and otherwise based on such other analyses and information
relating thereto as the Agent deems reasonable and appropriate.

     4.11. Insurance. Each Borrower shall bear the full risk of any loss of any nature
whatsoever with respect to the Collateral. At each Borrower’s own cost and expense in amounts and
with carriers reasonably acceptable to Agent, each Borrower shall (a) keep all its insurable
properties and properties in which each Borrower has an interest insured against the hazards of
fire, flood (for any property or portion thereof located within a flood zone), sprinkler leakage,
those hazards covered by extended coverage insurance and such other hazards, and for such amounts,
as is in each case customary in the case of companies engaged in businesses similar to such
Borrower’s including, without limitation, business interruption insurance; (b) maintain a bond in
such amounts as is customary in the case of companies engaged in businesses similar to such
Borrower insuring against larceny, embezzlement or other criminal misappropriation of insured’s
officers and employees who may either singly or jointly with others at any time have access to the
assets or funds of such Borrower either directly or through authority to draw upon such funds or to
direct generally the disposition of such assets; (c) maintain public and product liability
insurance against claims for personal injury, death or property damage suffered by others; (d)
maintain all such worker’s compensation or similar insurance as may be required under the laws of
any state or jurisdiction in which such Borrower is engaged in business; (e) furnish Agent with (i)
copies of all policies and evidence of the maintenance of such policies by the notice of intent to
renew thereof at least thirty (30) days before any expiration date together with appropriate
evidence of such renewal as of the date thereof without any lapse in coverage and (ii) appropriate
lenders loss payable endorsements in form and substance satisfactory to Agent in its good faith
business judgment, naming Agent as an additional insured and lenders loss payee as its interests
may appear with respect to all insurance coverage referred to in clauses (a), and (c) above, and
providing (A) that all proceeds thereunder shall be payable to Agent to the extent of its insurable
interest relating to the loss event giving rise to any such proceeds, (B) no such insurance shall
be affected by any act or neglect of the insured or owner of the property (other than for
non-payment) described in such policy, and (C) that such policy and loss payable clauses may not be
cancelled, amended or terminated unless at least thirty (30) days’ prior written notice is given to
Agent. In the event of any loss thereunder, the carriers named therein hereby are directed by
Agent and the applicable Borrower to make payment for such loss to Agent and not to such Borrower
and Agent jointly. If any insurance losses are paid by check, draft or other instrument payable to
any Borrower and Agent jointly, Agent may endorse such Borrower’s name thereon and do such other
things as Agent may deem advisable to reduce the same to cash. Agent is hereby authorized during
the existence of an Event of Default to adjust and compromise claims under insurance coverage
referred to in clauses (a), and (b) above with respect to its insurable interest. Proceeds payable
under any policy, with respect to the Collateral or any rights of the Agent therein, will, at
Agent’s option, be payable to Agent on account of the Obligations and shall be applied to the
Obligations, in such order as Agent in its shall determine (as long as any such application shall
not affect the Borrowers’ ability to use such funds as are contemplated in the following proviso
under the circumstances set forth therein); provided that so long as no Default or Event of Default
is then occurring and continuing, Agent will allow Borrower to use such proceeds up to an aggregate
amount of $1,000,000 in any fiscal year of Borrower to rebuild or replace the property that has
been the subject of such insured loss and

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Borrower shall deploy any such funds for this purpose
within 270 days of the receipt thereof. Any surplus shall be paid by Agent to Borrowers or applied
as may be otherwise required by law.

     4.12. Failure to Pay Insurance. If any Borrower fails to obtain insurance as
hereinabove provided, or to keep the same in force, Agent, if Agent so elects, may obtain such
insurance and pay the premium therefor on behalf of such Borrower, and charge Borrowers’ Account
therefor as a Revolving Advance of a Domestic Rate Loan and such expenses so paid shall be part of
the Obligations, in accordance with the provisions of Section 2.2(a) hereof.

     4.13. Payment of Taxes. Each Borrower will pay, when due, all taxes, assessments and
other Charges that are lawfully levied or assessed upon such Borrower or any of the Collateral,
including, without limitation, real and personal property taxes, assessments and charges and all
franchise, income, employment, social security benefits, withholding, and sales taxes (except (a)
to the extent any such tax, assessment or other charge is the subject of a good faith dispute that
is being diligently prosecuted and for which Borrower is maintaining adequate reserves therefor in
accordance with GAAP and otherwise which does not result in any Lien with any priority over the
security interest of the Agent or (b) any such taxes the payment of which is not material, the
non-payment of which results from an inadvertent omission by a Borrower and the aggregate amount of
which in any event shall not exceed $10,000 for any and all such taxes, and further that such taxes
are promptly paid once such omission is recognized and no Lien with any priority over the security
interest of the Agent arises therefrom). If any tax by any governmental authority is imposed on as
a result of any transaction between any Borrower and Agent or any Lender which Agent or such Lender
may be required to withhold or pay in respect of Borrower (other than for any income taxes
attributable to the income of Agent and Lenders from any amounts charged or paid hereunder to Agent
and Lenders) or if any taxes, assessments, or other Charges remain unpaid after the date fixed for
their payment, or if any claim shall be made which, in Agent’s or any Lender’s good faith business
judgment, would likely result in a valid Lien on the Collateral, Agent may without notice to
Borrowers pay the taxes, assessments or other Charges and each Borrower hereby indemnifies and
holds Agent and each Lender harmless in respect thereof. In accordance with the provisions of
Section 2.2(a) hereof, the amount of any payment by Agent under this Section 4.13 shall be charged
to Borrowers’ Account as a Revolving Advance of a Domestic Rate Loan and added to the Obligations
and, until Borrowers shall furnish Agent with an indemnity therefor (or supply Agent with evidence
satisfactory to Agent in its good faith business judgment that due provision for the payment
thereof has been made), Agent may hold without interest any balance standing to Borrowers’ credit
and Agent shall retain its security interest in any and all Collateral held by Agent. If any
Lender receives, or becomes entitled to receive, any credit against remission for, repayment or
refund of, or deduction for, any amount giving rise to any payment or reimbursement, by Borrower
under this Section 4.13 such Lender shall promptly reimburse to Borrower the amount of such
credit, remission, repayment, refund, or deduction attributable to Borrower in connection with any
such payment or reimbursement.

     4.14. Payment of Leasehold Obligations. Each Borrower shall at all times pay, when
and as due, its rental obligations under all leases under which it is a tenant, and shall otherwise
comply with all other terms of such leases and keep them in full force and effect except where

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the
failure to make such payments or to so comply could not reasonably be expected to result in a
Material Adverse Effect, and at Agent’s request, will provide evidence of having done so.

     4.15. Receivables. (a) Nature of Eligible Receivables. Each of the Eligible
Receivables shall be a bona fide and valid account representing a bona fide indebtedness incurred
by the Customer therein named, for a fixed sum as set forth in the invoice relating thereto
(provided immaterial or unintentional invoice errors shall not be deemed to be a breach hereof)
with respect to an absolute sale or lease and delivery of goods upon stated terms of a Borrower, or
work, labor or services theretofore rendered by a Borrower as of the date each Eligible Receivable
is created. Same shall be due and owing in accordance with the applicable Borrower’s standard
terms of sale without dispute, setoff or counterclaim except as may be stated on the accounts
receivable schedules delivered by Borrowers to Agent.

          (b) Solvency of Customers. Each Customer owing an Eligible Receivable, to the best of
each Borrower’s knowledge, as of the date each Eligible Receivable owed by such Customer is
created, is and, to the extent any such Receivable is also an Eligible Receivable, will be solvent
and able to pay all Receivables on which the Customer is obligated in full when due or with respect
to such Customers of any Borrower who are not solvent such Borrower has set up on its books and in
its financial records bad debt reserves adequate to cover such Receivables.

          (c) Locations of Borrower. Each Borrower’s chief executive office is located at the
addresses set forth on Schedule 4.15(c) hereto. Until written notice is given to Agent by
Borrowing Agent of any other office at which any Borrower keeps its records pertaining to
Receivables, all such records shall be kept at such executive office or at an executive office of
Parent for non-Parent Borrowers.

          (d) Collection of Receivables. Until any Borrower’s authority to do so is terminated
by Agent (which notice Agent may give at any time upon the occurrence and during the continuation
of an Event of
Default), each Borrower will, at such Borrower’s sole cost and expense, but on Agent’s behalf
and for Agent’s account, collect as Agent’s property and in trust for Agent all amounts received on
Receivables, and shall not commingle such collections with any Borrower’s funds or use the same
except to pay Obligations. Each Borrower shall, upon request, deliver to Agent, or deposit in the
Blocked Account, in original form and on the date of receipt thereof, all checks, drafts, notes,
money orders, acceptances, cash and other evidences of Indebtedness.

          (e) Notification of Assignment of Receivables. At any time prior to the occurrence of
an Event of Default, Agent shall have the right, with prior notice having been given to Borrowing
Agent, to send notice of Agent’s security interest in the Receivables to any and all Customers or
any third party holding or otherwise concerned with any of the Collateral; and at any time upon the
occurrence and during the continuation of an Event of Default, Agent shall have the right, without
prior notice having been given to Borrowing Agent, to send notice of Agent’s security interest in
the Receivables to any and all Customers or any third party holding

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or otherwise concerned with any
of the Collateral. Further, at any time upon the occurrence and during the continuation of an
Event of Default, Agent shall have the right to send notice of the assignment of the Receivables to
any and all Customers or any third party holding or otherwise concerned with any of the
First-Priority Collateral, and Agent shall have the sole right to collect the Receivables, take
possession of the First-Priority Collateral, or both. Agent’s actual collection expenses,
including, but not limited to, stationery and postage, telephone and telegraph, secretarial and
clerical expenses and the ratable salaries of any collection personnel used for collection, may be
charged to Borrowers’ Account and added to the Obligations in accordance with the provisions of
Section 2.2(a) hereof.

          (f) Power of Agent to Act on Borrowers’ Behalf. Agent shall have the right to
receive, endorse, assign and/or deliver in the name of Agent or any Borrower any and all checks,
drafts and other instruments for the payment of money relating to the Receivables, and each
Borrower hereby waives notice of presentment, protest and non-payment of any instrument so
endorsed. Each Borrower hereby irrevocably constitutes Agent or Agent’s designee as such
Borrower’s attorney with power and coupled with an interest (i) to endorse such Borrower’s name
upon any notes, acceptances, checks, drafts, money orders or other evidences of payment or
Collateral; (ii) to sign such Borrower’s name on any invoice or bill of lading relating to any of
the Receivables, drafts against Customers, assignments and verifications of Receivables; (iii) to
send verifications of Receivables to any Customer based on procedures acceptable to Agent and
Borrowing Agent; (iv) to sign such Borrower’s name on all financing statements or any other
documents or instruments deemed by Agent in its good faith business judgment as reasonably
necessary or appropriate to preserve, protect, or perfect Agent’s interest in the Collateral and to
file same; (v) at any time upon the occurrence and during the continuation of an Event of Default,
to demand payment of the Receivables; (vi) at any time upon the occurrence and during the
continuation of an Event of Default, to enforce payment of the Receivables by legal proceedings or
otherwise; (vii) at any time upon the occurrence and during the continuation of an Event of
Default, to exercise all of Borrowers’ rights and remedies with respect to the collection of the
Receivables and any other Collateral; (viii) at any time upon the occurrence and during the
continuation of an Event of
Default to settle, adjust, compromise, extend or renew the Receivables; (ix) at any time upon
the occurrence and during the continuation of an Event of Default to settle, adjust or compromise
any legal proceedings brought to collect Receivables; (x) at any time upon the occurrence and
during the continuation of an Event of Default or otherwise if Borrower has not filed, to prepare,
file and sign such Borrower’s name on a proof of claim in bankruptcy or similar document against
any Customer; (xi) at any time upon the occurrence and during the continuation of an Event of
Default, to prepare, file and sign such Borrower’s name on any notice of Lien, assignment or
satisfaction of Lien or similar document in connection with the Receivables; and (xii) to do all
other acts and things necessary to carry out this Agreement. Said attorney or designee shall not
be liable for any acts of omission or commission nor for any error of judgment or mistake of fact
or of law, unless done maliciously or with gross (not mere) negligence or resulting from willful
misconduct; this power being coupled with an interest is irrevocable while any of the Obligations
remain unpaid. Agent shall have the right at any time upon the occurrence and during the
continuation of an Event of Default, to change the address for delivery of mail addressed to any
Borrower to such address as Agent may designate and to receive, open and dispose of all mail
addressed to any Borrower.

          (g) No Liability. Neither Agent nor any Lender shall, under any circumstances or in
any event whatsoever, have any liability for any error or omission or delay of any kind occurring
in the settlement, collection or payment of any of the Receivables or any

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instrument received in
payment thereof, or for any damage resulting therefrom, except in the case of gross negligence or
willful misconduct. Upon the occurrence and during the continuation of an Event of Default, Agent
may, without notice or consent from any Borrower, sue upon or otherwise collect, extend the time of
payment of, compromise or settle for cash, credit or upon any terms any of the Receivables or any
other securities, instruments or insurance applicable thereto and/or release any obligor thereof.
Agent is authorized and empowered to accept following the occurrence of an Event of Default the
return of the goods represented by any of the Receivables, without notice to or consent by any
Borrower, all without discharging or in any way affecting any Borrower’s liability hereunder,
subject to the reduction on the Obligations upon the disposition thereof in accordance herewith.

          (h) Establishment of a Lockbox Account, Dominion Account. All proceeds of
First-Priority Collateral shall be deposited by Borrowers into a lockbox account, dominion account
or such other “blocked account” (“Blocked Accounts”) as Agent may require pursuant to an
arrangement with such bank as may be selected by Borrowers and be acceptable to Agent in its good
faith business judgment. Borrowers shall issue to any such bank, an irrevocable letter of
instruction directing said bank to transfer such funds so deposited to Agent, either to any account
maintained by Agent at said bank or by wire transfer to appropriate account(s) of Agent. All funds
deposited in such Blocked Account shall immediately become the property of Agent, and Borrowers
shall obtain the agreement by such bank to waive any offset rights against the funds so deposited.
Neither Agent nor any Lender assumes any responsibility for such blocked account arrangement,
including without limitation, any claim of accord and satisfaction or release with respect to
deposits accepted by any bank
thereunder. Alternatively, Agent may establish depository accounts (“Depository
Accounts”) in the name of Agent at a bank or banks for the deposit of such funds and Borrowers
shall deposit all proceeds of Collateral or cause same to be deposited, in kind, in such Depository
Accounts of Agent in lieu of depositing same to the Blocked Accounts.

          (i) Adjustments. No Borrower will, without Agent’s consent, compromise or adjust any
Receivables (or extend the time for payment thereof) or accept any returns of merchandise or grant
any additional discounts, allowances or credits thereon except for those compromises, adjustments,
returns, discounts, credits and allowances as are customary in the business of such Borrower.

     4.16. Inventory; Establishment of Perpetual Inventory System. If and to the extent
any Inventory held for sale or lease has been produced by any Borrower, it has been and will be
produced by such Borrower in accordance with the Federal Fair Labor Standards Act of 1938, as
amended, and all rules, regulations and orders thereunder. Borrower hereby covenants and agrees to
establish and implement, no later than October 31, 2007, a perpetual inventory system at all of its
warehouse locations, which system shall be found to be acceptable to Agent in its discretion in all
respects.

     4.17. Maintenance of Equipment. In furtherance and without limitation of the covenant
set forth in Section 6.2 hereof, the Equipment shall be maintained in good operating condition and
repair (reasonable wear and tear excepted, subject to the occurrence of an insured casualty loss
relating thereto and the permitted dispositions by Borrower regarding Equipment under

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Section 4.3
hereof) and all necessary replacements of and repairs thereto shall be made so that the value and
operating efficiency of the Equipment shall be maintained and preserved. No Borrower shall use or
operate the Equipment in violation of any material law, statute, ordinance, code, rule or
regulation that could reasonably be expected to cause a Material Adverse Effect.

     4.18. Exculpation of Liability. Except as otherwise expressly provided in this
Agreement, nothing herein contained shall be construed to constitute Agent or any Lender as any
Borrower’s agent for any purpose whatsoever, nor shall Agent or any Lender be responsible or liable
for any shortage, discrepancy, damage, loss or destruction of any part of the Collateral wherever
the same may be located and regardless of the cause thereof (except if and to the extent arising
from the gross negligence or willful misconduct of Agent or such Lender (as the case may be)).
Neither Agent nor any Lender, whether by anything herein or in any assignment or otherwise, assume
any of any Borrower’s obligations under any contractor agreement assigned to Agent or such Lender,
and neither Agent nor any Lender shall be responsible in any way for the performance by any
Borrower of any of the terms and conditions thereof.

     4.19. Environmental Matters. (a) Borrowers shall ensure that the Real Property and operations at the Real Property
remain in compliance with all Environmental Laws in all material respects and they shall not place
or permit to be placed any Hazardous Substances on any Real Property except in compliance in all
material respects with Environmental Laws.

          (b) Borrowers shall establish and maintain a system to assure and monitor continued material
compliance with all applicable Environmental Laws which system shall include periodic reviews of
such compliance.

          (c) In the event any Borrower obtains, gives or receives written notice of any Release or
threat of Release of a reportable quantity of any Hazardous Substances at the Real Property (any
such event being hereinafter referred to as a “Hazardous Discharge”) or receives any
written notice of violation, request for information or notification that it is potentially
responsible for investigation or cleanup of environmental conditions at the Real Property, demand
letter or complaint, order, citation, or other written notice with regard to any Hazardous
Discharge or violation of Environmental Laws affecting the Real Property or any Borrower’s interest
therein, in each case the subject matter of which could reasonably be expected to result in
material liability under or relating to any Environmental Law (any of the foregoing is referred to
herein as an “Environmental Complaint”) from any Person, including any state agency
responsible in whole or in part for environmental matters in the state in which the Real Property
is located or the United States Environmental Protection Agency (any such person or entity
hereinafter the “Authority”), then Borrowing Agent shall, give prompt written notice of
same to Agent detailing facts and circumstances of which any Borrower is aware giving rise to the
Hazardous Discharge or Environmental Complaint. Such information is to be provided to allow Agent
to protect its security interest in the Real Property and the Collateral and is not intended to
create nor shall it create any obligation upon Agent or any Lender with respect thereto.

          (d) Borrowers shall promptly forward to Agent copies of any written request for information,
notification of potential liability, demand letter relating to potential responsibility with
respect to the investigation or cleanup of Hazardous Substances at any other

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site owned, operated
or used by any Borrower to dispose of Hazardous Substances, in each case the subject matter of
which could reasonably be expected to result in material liability under or relating to any
Environmental Law and shall continue to forward copies of material correspondence between any
Borrower and the Authority regarding such claims to Agent until the claim is settled. Such
information is to be provided solely to allow Agent to protect Agent’s security interest in the
Real Property and the Collateral.

          (e) Borrowers shall respond promptly to any Hazardous Discharge or Environmental Complaint in
compliance in all material respects with Environmental Laws and take all necessary action to
reasonably safeguard against any imminent and substantial endangerment to human health resulting
from such a Hazardous Discharge and to avoid subjecting the Collateral or Real Property to any
Lien. If any Borrower shall fail to respond promptly and in compliance in all material respects
with Environmental Laws to any Hazardous Discharge or Environmental Complaint or any Borrower shall
fail to comply, in any material respect, with any of the requirements of any Environmental Laws,
and fails to cure such failure within a reasonable time after receiving written notice thereof,
Agent on behalf of Lenders may,
but without the obligation to do so, for the sole purpose of protecting Agent’s interest in
Collateral: (A) give such notices or (B) enter onto the Real Property (or authorize third parties
to enter onto the Real Property) and take such actions as Agent (or such third parties as directed
by Agent) deem reasonably necessary or advisable, to clean up, remove, mitigate or otherwise deal
with any such Hazardous Discharge or Environmental Complaint. All reasonable costs and expenses
incurred by Agent and Lenders (or such third parties) in the exercise of any such rights, including
any sums paid in connection with any judicial or administrative investigation or proceedings, fines
and penalties, together with interest thereon from the date expended at the Default Rate for
Domestic Rate Loans constituting Revolving Advances shall be paid upon demand by Borrowers, and
until paid shall be added to and become a part of the Obligations secured by the Liens created by
the terms of this Agreement or any other agreement between Agent, any Lender and any Borrower.

          (f) Promptly upon the written request of Agent from time to time if Agent has a reasonable
basis to believe (i) an Environmental Complaint has arisen or (ii) another event or occurrence has
taken place that that affects the Real Property and could reasonably lead to an Environmental
Complaint, in each case where such Environmental Complaint, event or occurrence could have,
individually or in the aggregate, a Material Adverse Effect or result in a Default, Borrowers shall
provide Agent, at Borrowers’ expense, with an environmental site assessment or environmental audit
report prepared by an environmental engineering firm acceptable in the reasonable opinion of Agent,
to reasonably assess the Environmental Complaint, event or occurrence and, where relevant, the
potential costs in connection with abatement, cleanup and removal of any Hazardous Substances found
on, under, at or within the Real Property or other remediation actions with respect thereto. Any
report or investigation of such Hazardous Discharge or such other event or occurrence that in
either case is proposed and acceptable to an appropriate Authority that is charged to oversee such
matters shall be deemed acceptable to Agent.

          (g) Borrowers shall defend and indemnify Agent and Lenders and hold Agent, Lenders and their
respective employees, agents, directors and officers harmless from and against

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all loss, liability,
damage and expense, claims, costs, fines and penalties, including attorney’s fees, suffered or
incurred by Agent or Lenders under or on account of any Environmental Laws, including, without
limitation, the assertion of any Lien thereunder, with respect to any Hazardous Discharge, the
presence of any Hazardous Substances affecting the Real Property, whether or not the same
originates or emerges from the Real Property or any contiguous real estate, including any loss of
value of the Real Property as a result of the foregoing except to the extent such loss, liability,
damage and expense is attributable to the gross negligence or willful misconduct of Agent or any
Lender. Borrowers’ obligations under this Section 4.19 shall arise upon the discovery of the
presence of any Hazardous Substances at the Real Property, whether or not any federal, state, or
local environmental agency has taken or threatened any action in connection with the presence of
any Hazardous Substances. Borrowers’ obligation and the indemnifications hereunder shall survive
the termination of this Agreement.

          (h) For purposes of Section 4.19 and 5.7, all references to Real Property shall be deemed to
include all of Borrowers’ right, title and interest in and to its owned and leased premises.

     4.20. Financing Statements. Except as respects the financing statements filed by
Agent and the financing statements described on Schedule 1.2.2, no financing statement
(other than for items that may appear in the official records of filing offices with respect to (a)
terminated or lapsed financing statements that are no longer effective, (b) financing statements
authorized by an Existing Lender to be terminated pursuant to the Payoff Letter thereof) or (c)
financing statements reflecting Permitted Encumbrances and limited in scope and priority to the
items comprising Permitted Encumbrances, in each case covering any of the Collateral or any
proceeds thereof is on file in any public office.

     4.21. Intercreditor Agreement. Notwithstanding anything the contrary contained
herein, the terms of this Agreement shall be subject to the terms of the Intercreditor Agreement
and in the event of any inconsistency between any provision herein and therein, the terms of the
Intercreditor Agreement shall govern.

     4.22. Securitization. Concurrent with the initial closing of a Securitization and
after giving effect to any payments hereunder with the proceeds thereof, the Agent agrees that it
will purchase the outstanding loans and commitments of any Lender which wishes to sell, and that
each Lender agrees that it will sell its outstanding loans and commitments to Agent upon its
request. Any such sale shall be at par and shall include payment of all principal, interests, fees
and other amounts owing to such Lender. Such Lender shall be entitled to payment by the Borrowers
of any amounts that would be owing to it under Section 2.2(f) if the assignment to the Agent had
instead been a prepayment by the Borrowers. For the avoidance of doubt, the net proceeds realized
by the Borrowers on the date of the initial closing of a Securitization shall be applied to the
Advances.

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V REPRESENTATIONS AND WARRANTIES.

     Each of Parent and Borrower hereby jointly and severally represents and warrants as follows:

     5.1. Authority. Each Loan Party has full power, authority and legal right to enter
into this Agreement and the Other Documents to which it is a party and to perform all its
respective Obligations hereunder and thereunder. This Agreement and the Other Documents constitute
the legal, valid and binding obligation of such Loan Party enforceable in accordance with their
terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency,
moratorium or similar laws affecting creditors’ rights generally. The execution, delivery and
performance of this Agreement and of the Other Documents (a) are within such Loan Party’s corporate
powers,
have been duly authorized, are not in contravention of law or the terms of such Loan Party’s
by-laws, certificate of incorporation, operating agreement or other documents relating to such Loan
Party’s formation, all as applicable, or to the conduct of such Loan Party’s business or of any
material agreement or undertaking to which such Loan Party is a party or by which such Loan Party
is bound, and (b) will not conflict with nor result in any breach in any of the provisions of or
constitute a default under or result in the creation of any Lien except Permitted Encumbrances upon
any asset of such Loan Party under the provisions of any agreement, charter document, operating
agreement, instrument, by-law, or other instrument to which such Loan Party is a party or by which
it or its property may be bound.

     5.2. Formation and Qualification. (a) Each Loan Party is duly organized or
incorporated, as applicable, and is in good standing under the laws of the state listed on
Schedule 5.2(a) and is qualified to do business and is in good standing in the states
listed on Schedule 5.2(a) which constitute all states in which qualification and good
standing are necessary for such Loan Party to conduct its business and own its property and where
the failure to so qualify could reasonably be expected to have a Material Adverse Effect. Each
Loan Party has delivered to Agent true and complete copies of its articles of organization and
operating agreement or its certificate of incorporation and by-laws, as applicable, and will
promptly notify Agent of any amendment or changes thereto.

          (b) The only Subsidiaries of each Loan Party are listed on Schedule 5.2(b) (provided
that as and if new Subsidiaries are created from time to time, subject to the terms and conditions
hereof, Borrowing Agent may update such Schedule for any such new entities promptly upon their
creation).

     5.3. Survival of Representations and Warranties. All representations and warranties
of such Loan Party contained in this Agreement and the Other Documents shall be true at the time of
such Loan Party’s execution of this Agreement and the Other Documents (except to the extent that
any such representation or warranty expressly refers to a specific date and in such case shall be
true as of such specified date), and in all cases shall survive the execution, delivery and
acceptance thereof by the parties thereto and the closing of the transactions described therein or
related thereto.

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     5.4. Tax Returns. Each Loan Party’s federal tax identification number is set forth on
Schedule 5.4. Each Loan Party has filed all federal, state and all other local tax returns
and other reports each is required by law to file (other than for such (i) non–income tax related
state tax returns, (ii) local tax returns and (iii) other reports, and, with respect to any and all
of the foregoing, that individually or collectively do not impair or disrupt in any material
fashion the conduct of any business of any Loan Party and that otherwise no Default or Event of
Default arises therefrom or results from the any failure to file any such returns or reports), as
the time for any such filing may be extended under law, and each Loan Party has paid all taxes,
assessments, fees and other governmental charges that are due and payable (except (a) for any such
tax, assessment or other
charge is the subject of a good faith dispute that is being diligently prosecuted and for
which each Loan Party is maintaining adequate reserves therefore in accordance with GAAP and
otherwise which does not result in any Lien with any priority over the security interest of the
Agent and (b) any such taxes the payment of which is not material, the non-payment of which results
from an inadvertent omission by a Loan Party and the aggregate amount of which in any event shall
not exceed $10,000 for any and all such taxes, and further that such taxes are promptly paid once
such omission is recognized and no Lien with any priority over the security interest of the Agent
arises therefrom). Federal, state and local income tax returns of each Loan Party have been
examined and reported upon by the appropriate taxing authority or closed by applicable statute and
satisfied for all fiscal years prior to and including the fiscal year ending June 30, 2005. The
provision for taxes on the books of each Loan Party are adequate for all years not closed by
applicable statutes, and for its current fiscal year, and no Loan Party has any knowledge of any
deficiency or additional assessment in connection therewith not provided for on its books (except
for any such tax, assessment or other charge that is the subject of a good faith dispute that is
being diligently prosecuted and for which each Loan Party is maintaining adequate reserves therefor
in accordance with GAAP).

     5.5. Financial Statements.

          (a) The pro forma balance sheet of Borrowers and their consolidated Subsidiaries on a
consolidated basis at the Parent level (the “Pro Forma Balance Sheet”) when furnished to
Agent in accordance herewith shall reflect the consummation of the transactions contemplated by the
Acquisition Agreements, under this Agreement and under the JPM Credit Agreement (collectively being
referred to herein as the “Transactions”) and shall fairly reflect in all material respects
the financial condition of Borrowers and their consolidated Subsidiaries on a consolidated basis as
of the Closing Date after giving effect to the Transactions, and is to be prepared in accordance
with GAAP (subject to the absence of footnotes, the application of SFAS 133 and 130 and normal
year-end audit adjustments). The Pro Forma Balance Sheet has been certified as accurate, complete
and correct in all material respects by the President and Chief Financial Officer on behalf of
Parent.

          (b) The twelve-month cash flow projections of the Borrowers on a consolidated basis at the
Parent level and the Parent’s projected consolidated balance sheet as of the Closing Date, copies
of which are annexed hereto as Exhibit 5.5(b) (the “Projections”) were prepared by
Parent, are based on underlying assumptions which were believed to be reasonable as of the date
made, and reflect Parent’s judgment, based on assumptions which were believed to be reasonable at
the time made regarding what was believed to be at such time a reasonably

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likely set of results for
the projected period, provided, however, since such Projections are by their nature
prospective and contingent on a wide range of factors, actual results therefore may vary
significantly, provided, further, nothing has occurred in the interval between the
date of determination of the reasonableness of the assumptions referenced above and the date of
the delivery of the Projections to Agent to render Parent’s belief regarding the foregoing
assumptions no longer reasonable. The cash flow Projections together with the Pro Forma Balance
Sheet, are referred to as the “Pro Forma Financial Statements”.

     5.6. Corporate Name. No Loan Party has been known by any other corporate name in the
past five years and does not sell Inventory under any other name except as set forth on
Schedule 5.6, nor has any Loan Party been the surviving corporation of a merger or
consolidation or acquired all or substantially all of the assets of any Person during the preceding
five (5) years, except (i) pursuant to the Acquisition Agreements or (ii) as otherwise set forth on
Schedule 5.6.

     5.7. O.S.H.A. and Environmental Compliance. Other than as set forth on Schedule 5.7
hereto:

          (a) (i) Each Loan Party has duly complied with, and its facilities, business, assets,
property, leaseholds and Equipment are in compliance with, the provisions of the Federal
Occupational Safety and Health Act, RCRA and all other Environmental Laws, except for any such
noncompliance as would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect and (ii) there have been no outstanding citations, written notices or
orders of non-compliance issued to any Loan Party or relating to its business, assets, property,
leaseholds or Equipment under any such laws, rules, in each of the foregoing cases the subject
matter of which could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

          (b) Each Loan Party has obtained all required federal, state and local licenses, certificates,
permits or other authorizations relating to all applicable Environmental Laws, except for any such
authorization the failure to obtain which would not reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect.

          (c) Except for such of the following which could not reasonably be expected to result,
individually or in the aggregate, in a Material Adverse Effect: (i) there have been no releases,
spills, discharges, leaks or disposal (collectively referred to as “Releases”) of Hazardous
Substances at, upon, under or within any Real Property or any premises leased by any Loan Party,
other than for any such spills, discharges or leaks of an immaterial nature that customarily arise
in connection with the business of each Loan Party as long as no Default or Event of Default would
otherwise arise therefrom; (ii) there are no underground storage tanks or polychlorinated biphenyls
on the Real Property or any premises leased by any Loan Party; (iii) neither the Real Property nor
any premises leased by any Loan Party has ever been used as a treatment, storage or disposal
facility of Hazardous Waste, other than as arises in the ordinary course of the business of the
Loan Parties consistent with past business practices; and (iv) no Hazardous Substances are present
on the Real Property or any premises leased by any Loan Party, other than (A) arising in the
ordinary course of the Loan Parties’ businesses consistent

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with past business practices (B) such
quantities as are handled in all material respects in accordance with all applicable manufacturer’s
instructions governmental regulations regarding any Loan Party or of its tenants.

     This Section 5.7 and Sections 5.5, 5.8 and 5.13 set forth the sole representations and
warranties of the Loan Parties with respect to environmental, health and safety matters.

     5.8. Solvency; No Litigation, Violation, Indebtedness or Default. (a) After giving
effect to the Transactions, the Loan Parties will on a consolidated basis be able to pay their
debts as they mature in the ordinary course of business, have capital sufficient to carry on their
business and all businesses in which they are about to engage, and (i) as of the Closing Date, the
fair present saleable value of their assets, calculated on a going concern basis, is in excess of
the amount of their liabilities and (ii) subsequent to the Closing Date as of each date that the
Loan Parties on a consolidated basis shall be deemed to make the representation set forth in this
clause (a), the fair saleable value of their assets (calculated on a going concern basis) is in
excess of the amount of their liabilities.

          (b) Except as disclosed in Schedule 5.8(b), no Loan Party has (i) any pending or, to
its knowledge, threatened litigation, arbitration, actions or proceedings which, if successful
against such Loan Party, could reasonably be expected to have a Material Adverse Effect, and (ii)
any liabilities nor indebtedness for borrowed money other than the Obligations and other
liabilities or indebtedness specifically permitted hereunder.

          (c) No Loan Party is in violation of any applicable statute, regulation, ordinance or any
governmental authority in any respect which could reasonably be expected to have a Material Adverse
Effect, nor is any Loan Party in violation in any material respect of any order directed to or with
respect to any Loan Party or any assets of any Loan Party of any court or arbitration board or
tribunal.

          (d) No Loan Party nor any member of the Controlled Group maintains or contributes to any Plan
other than those listed on Schedule 5.8(d) hereto. (i) No Plan has incurred any “accumulated
funding deficiency,” as defined in Section 302(a)(2) of ERISA and Section 412(a) of the Code,
whether or not waived, and each Loan Party and each member of the Controlled Group has met in all
material respects all applicable minimum funding requirements under Section 302 of ERISA in respect
of each Plan and no Lien has arisen as a result thereof, (ii) each Plan which is intended to be a
qualified plan under Section 401(a) of the Code as currently in effect has been determined by the
Internal Revenue Service to be qualified under Section 401(a) of the Code and the trust related
thereto is exempt from federal income tax under Section 501(a) of the Code, (iii) no Loan Party nor
any member of the Controlled Group has incurred any material liability to the PBGC other than for
the payment of premiums, and there are no premium payments which have become due which are unpaid
and no Lien has arisen as a result thereof, (iv) no Plan has been terminated by the plan
administrator thereof nor by the PBGC, and, to the best of the Loan Parties’ knowledge, there is no
occurrence which would cause the PBGC to institute proceedings under Title IV of ERISA to terminate
any Plan, (v) at this time, the current value of the assets of each Plan exceeds the present value
of the accrued benefits and other liabilities of such Plan and no Loan Party nor any member of the
Controlled

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Group knows of any facts or circumstances which would materially change the value of
such assets and accrued benefits and other liabilities, (vi) no Loan Party nor any member of the
Controlled Group has breached any of the responsibilities, obligations or duties imposed on it by
ERISA with respect to any Plan, except for any such breach which would not reasonably be expected
to have a Material Adverse Effect, (vii) no Loan Party nor any member of a Controlled
Group has incurred any material liability for any excise tax arising under Section 4972 or
4980B of the Code, and no fact exists which could give rise to any material liability, (viii) no
Loan Party nor any member of the Controlled Group nor any fiduciary of, nor any trustee to, any
Plan, has engaged in a “prohibited transaction” described in Section 406 of the ERISA or Section
4975 of the Code nor taken any action which would constitute or result in a Termination Event with
respect to any such Plan which is subject to ERISA, (ix) each Loan Party and each member of the
Controlled Group has made, in all material respects, all contributions due and payable with respect
to each Plan, (x) there exists no event described in Section 4043(b) of ERISA, for which the thirty
(30) day notice period contained in 29 CFR §2615.3 has not been waived, (xi) no Loan Party nor any
member of the Controlled Group has any fiduciary responsibility for investments with respect to any
plan existing for the benefit of persons other than employees or former employees of any Loan Party
and any member of the Controlled Group, and (xii) no Loan Party nor any member of the Controlled
Group has withdrawn, completely or partially, from any Multiemployer Plan so as to incur any
material liability under the Multiemployer Pension Plan Amendments Act of 1980.

     5.9. Patents, Trademarks, Copyrights and Licenses. All patents, patent applications,
trademarks, trademark applications, service marks, service mark applications, copyrights, copyright
applications, design rights, tradenames, assumed names, trade secrets and licenses owned or
utilized by any Loan Party with respect to the conduct of its business or which are otherwise of a
material nature are set forth on Schedule 5.9 (other than for licenses of software that are
widely commercially available), are valid and, if registered with a governmental authority, the
registration information relating thereto is contained on Schedule 5.9. The foregoing
constitutes all of the material intellectual property rights which are necessary for the operation
of the business of each Loan Party. Further, there is no pending challenge to the validity of any
such patent, trademark, copyright, design right, tradename, trade secret or license and no Loan
Party is aware of any grounds for any challenge, except as set forth in Schedule 5.9
hereto. Each patent, patent application, patent license, trademark, trademark application,
trademark license, service mark, service mark application, service mark license, design right,
copyright, copyright application and copyright license owned or held by any Loan Party and all
trade secrets used by any Loan Party consist of original material or property developed by such
Loan Party or was lawfully acquired by such Loan Party from the proper and lawful owner thereof.
Each of such items has been maintained so as to preserve the value thereof from the date of
creation or acquisition thereof. With respect to all material software used by any Loan Party,
including without limitation the software program “InFO Online” program, such Loan Party is in
possession of or otherwise has feasible access to all source and object codes related to each such
piece of software (and to the extent a source code escrow agreement is in place, each such source
code escrow agreement is listed on Schedule 5.9 hereto). Further, with respect to the
“InFO Online” program the source and object code relating thereto is stored on the Loan Party’s
computer network at its headquarters facility located at 1120 NW 63rd Street, Suite 300,

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Oklahoma City, Oklahoma 73116 and also at an offsite storage facility of Borrower at Bank of
America Safety Deposit Box #4217, 5613 N. May, Oklahoma City, OK.

     5.10. Licenses and Permits. Except as set forth in Schedule 5.10, each Loan Party (a) is in compliance with and
(b) has procured and is now in possession of, all material licenses or permits required by any
applicable federal, state or local law or regulation for the operation of its business in each
jurisdiction wherein it is now conducting or proposes to conduct business and where the failure to
procure such licenses or permits could reasonably be expected to cause a Material Adverse Effect.

     5.11. Default of Indebtedness. No Loan Party is in default in the payment of the
principal of or interest on any Indebtedness for borrowed money or under any instrument or
agreement under or subject to which any material Indebtedness has been issued and no event has
occurred under the provisions of any such instrument or agreement which with or without the lapse
of time or the giving of notice, or both, constitutes or would constitute an event of default
thereunder.

     5.12. No Default. No Loan Party is in default in the payment or performance of any of
its contractual obligations which could reasonably be expected to have a Material Adverse Effect.

     5.13. No Burdensome Restrictions. No Loan Party is party to any contract or agreement
the performance of which could reasonably be expected to result in a Material Adverse Effect. No
Loan Party has agreed or consented to cause or permit in the future (upon the happening of a
contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be
subject to a Lien which is not a Permitted Encumbrance.

     5.14. No Labor Disputes. No Loan Party is involved in any labor dispute; there are no
strikes or walkouts or union organization of any Loan Party’s employees in existence, or, the best
of each Loan Party’s knowledge, threatened, and no labor contract is scheduled to expire during the
Term other than as set forth on Schedule 5.14 hereto.

     5.15. Margin Regulations. No Loan Party is engaged, nor will it engage, principally
or as one of its important activities, in the business of extending credit for the purpose of
“purchasing” or “carrying” any “margin stock” within the respective meanings of each of the quoted
terms under Regulation U of the Board of Governors of the Federal Reserve System as now and from
time to time hereafter in effect. No part of the proceeds of any Advance will be used for
“purchasing” or “carrying” “margin stock” as defined in Regulation U of such Board of Governors.

     5.16. Investment Company Act. No Loan Party is an “investment company” registered or required to be registered under the
Investment Company Act of 1940, as amended, nor is it controlled by such a company.

     5.17. Disclosure. No representation or warranty made by any Loan Party to the Agent
or the Lenders in this Agreement, or in any financial statement, report, certificate or any Other
Document furnished in connection herewith or therewith contains any untrue statement of a

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material
fact or omits to state any material fact necessary to make the statements herein or therein not
misleading. There is no fact known to any Loan Party which such Loan Party has not disclosed to
Agent in writing with respect to the Transactions or this Agreement, which in either case could
reasonably be expected to have a Material Adverse Effect.

     5.18. Delivery of Acquisition Agreements. Agent has received complete copies of each
Acquisition Agreement (including all exhibits, schedules and disclosure letters referred to therein
or delivered pursuant thereto, if any) and all amendments thereto, waivers relating thereto and
other side letters or agreements affecting the terms thereof. None of such documents and
agreements has been amended or supplemented, nor have any of the provisions thereof been waived,
except pursuant to a written agreement or instrument which has heretofore been delivered to Agent.

     5.19. Swaps. No Loan Party is a party to, nor will it be a party to, any speculative
swap agreement whereby such Loan Party has agreed or will agree to swap interest rates or
currencies unless same provides that damages upon termination following an event of default
thereunder are payable on an unlimited “two-way basis” without regard to fault on the part of
either party.

     5.20. Conflicting Agreements. No provision of any material mortgage, indenture,
contract, agreement, judgment, decree or order binding on any Loan Party or affecting the
Collateral prohibits, restricts or otherwise conflicts in any material manner with, or requires any
Consent which has not already been obtained to, or would in any way prevent the execution, delivery
or performance of, the terms of this Agreement or the Other Documents.

     5.21. Application of Certain Laws and Regulations. No Borrower nor any Affiliate of
any Borrower is subject to any statute, rule or regulation pertaining to the operation of
Borrower’s line of business which regulates the incurring of any Indebtedness, including without
limitation, statutes or regulations relative to common or interstate carriers or to the sale of
electricity, gas, steam, water, telephone, telegraph or other public utility services.

     5.22. Business and Property of Borrowers. Upon and after the Closing Date, Borrowers do not propose to engage in any business other
than the marketing, distribution and sale of fuels, lubricants and specialty chemical products and
related services (including risk management programs) and activities necessary to conduct the
foregoing, and other ancillary and related businesses and activities. On the Closing Date, each
Borrower will own all the property and possess all material rights and Consents necessary for the
conduct of the business of such Borrower.

     5.23. Section 20 Subsidiaries. Borrowers do not intend to use and shall not use any
portion of the proceeds of the Advances, directly or indirectly, to purchase during the
underwriting period, or for 30 days thereafter, Ineligible Securities being underwritten by a
Section 20 Subsidiary.

     5.24. Bailees of Prepaid Fuel Inventory. As of the Closing Date, the only bailees
with whom Borrowers have located prepaid inventories of fuel are set forth on Schedule 5.24 hereto.

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     5.25. Anti-Terrorism Laws. Except (i) as a result of any transaction or relationship
with Agent or any Lender and (ii) as would not reasonably be expected to result in a Material
Adverse Effect, none of the Loan Parties nor any Affiliate of the Loan Parties, is in violation of
any Anti-Terrorism Law or engages in or conspires to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in any Anti-Terrorism Law.

VI AFFIRMATIVE COVENANTS.

     Parent and Borrowers hereby jointly and severally agree that, until payment in full of the
Obligations in cash or other immediately available funds (other than for the Inchoate Indemnities)
and termination of this Agreement each of Parent and Borrowers shall and shall cause each of its
Subsidiaries to:

     6.1. Payment of Fees. Pay to Agent on demand all usual and customary fees and
expenses which Agent incurs in connection with (a) the forwarding of Advance proceeds and (b) the
establishment and maintenance of any Blocked Accounts or Depository Accounts as provided for in
Section 4.15(h). Agent may, without making demand, charge Borrowers’ Account for all such fees and
expenses, subject to the provisions of Section 2.2(a) hereof.

     6.2. Conduct of Business and Maintenance of Existence and Assets. (a) Conduct and operate actively its business according to commercially reasonable business
practices and maintain all of its properties useful or necessary in its business in good working
order and condition (reasonable wear and tear excepted, subject to the occurrence of an insured
casualty loss relating thereto and permitted dispositions by Borrower pursuant to the terms and
conditions of Section 4.3 hereof and except as may be disposed of in accordance with the terms of
this Agreement), including, without limitation, all licenses, patents, copyrights, design rights,
tradenames, trade secrets and trademarks and take all actions reasonably necessary to enforce and
protect the validity of any intellectual property right or other right included in the Collateral;
(b) (i) provide Agent and Lenders with at least 15 days prior written notice of the registration of
any copyrightable materials with the United States Copyright Office (Borrowers have informed Agent
and the Lenders that they have not as of the Closing Date registered any copyrightable material in
the United States Copyright Office); (ii) provide Agent and the Lenders with a copy of the
application for any such registration; and (iii) execute such other instruments, and take such
further actions as Agent may reasonably request from time to time to perfect or continue the
perfection of Bank’s security therein and in the proceeds thereof. (c) keep in full force and
effect its existence and comply in all material respects with the laws and regulations governing
the conduct of its business where the failure to do so could reasonably be expected to have a
Material Adverse Effect; and (d) make all such reports and pay all such franchise and other taxes
and license fees and do all such other acts and things as may be lawfully required to maintain all
of its rights, licenses, leases, powers and franchises (“Rights”) under the laws of the
United States or any political subdivision thereof, other than for a failure by Borrower to do any
of the foregoing where the affected Rights do not have nor could reasonably be expected to have a
Material Adverse Effect.

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     6.3. Violations. Promptly notify Agent in writing of any violation of any law,
statute, regulation or ordinance of any Governmental Body, or of any agency thereof, applicable to
any Borrower which could reasonably be expected to have a Material Adverse Effect on any Borrower.

     6.4. Government Receivables. Take all steps necessary to protect Agent’s interest in
Eligible Receivables and, at the request of Agent, any and all other Receivables, under the Federal
Assignment of Claims Act or other applicable state or local statutes or ordinances and deliver to
Agent appropriately endorsed, any instrument or chattel paper connected with any Receivable arising
out of contracts between any Borrower and the United States, any state or any department, agency or
instrumentality of any of them.

     6.5. Leverage Ratio. For Borrowers on a consolidated basis at the Parent level,
maintain as of the last day of each quarter a ratio of Funded Debt to EBITDA of not greater than
5.00 to 1.00.

     6.6. Fixed Charge Coverage Ratio. For the Borrowers on a consolidated basis, maintain as of the last day of each quarter a
Fixed Charge Coverage Ratio of at least 1.15 to 1.00.

     6.7. Execution of Supplemental Instruments. Execute and deliver to Agent from time to
time, upon Agent’s good faith request, such supplemental agreements, statements, documentation,
instruments and transfers, or instructions or documents relating to the Collateral, and such other
instruments and otherwise to take such actions, in each case as Agent may in good faith request, in
order that the intent of this Agreement as reflected in the provisions hereof and in related
agreements and documentation may be carried into effect.

     6.8. Payment of Indebtedness. Subject at all times to any applicable subordination
arrangement in favor of Agent and Lenders, pay, discharge or otherwise satisfy at or before
maturity (subject, where applicable, to specified grace periods and, in the case of the trade
payables, to normal payment practices) all its obligations and liabilities of whatever nature,
except when the failure to do so could not reasonably be expected to have a Material Adverse Effect
or when the amount or validity thereof is currently being contested in good faith by appropriate
proceedings and each Borrower shall have provided for such reserves as Agent may reasonably deem
proper and necessary in light of the then existing circumstances.

     6.9. Standards of Financial Statements. Cause all financial statements referred to in
Sections 9.7, 9.8, 9.9, 9.10, 9.11, 9.12, and 9.16 as to which GAAP is applicable to fairly present
the financial condition of the Borrowers in all material respects (subject, in the case of interim
financial statements, to the absence of footnotes, normal year-end audit adjustments and FAS 133
adjustments), and to be prepared in reasonable detail and in accordance with GAAP throughout the
periods reflected therein (except as concurred in by such reporting accountants or officer, as the
case may be, and disclosed therein).

     6.10. Exercise and Maintenance of Rights. Enforce all of its rights under each
Acquisition Agreement and any indemnification agreement in connection therewith including, but not
limited to, all indemnification rights and pursue all remedies available to it with diligence

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and
in good faith in connection with the enforcement of any such rights, in each case as Borrower may,
in its good faith business judgment, determine, and discharge its duties and obligations under the
Affiliation Agreements in its good faith business judgment and maintain the Affiliation Agreements
in full force and effect; provided, however, if Borrower decides to not to enforce any right of a
material nature under the Acquisition Agreement, Borrower shall keep Agent informed of any such
material developments.

     6.11. Tax Shelter Provisions. Promptly after any of the Borrowers determines that it intends to treat any of the Advances
or related transactions as being a “reportable transaction” as referred to in Section 7.21 below,
it shall promptly send a written notice of such intention to the Agent together with a duly
completed copy of IRS Form 8886 or any successor form.

     6.12. Bailment Locations of Prepaid Fuel Inventory. Borrowers shall advise Agent in
writing of any and all third party locations where any of them has located prepaid fuel inventory
and Borrowers shall use their reasonable commercial efforts to cause such bailees to execute and
deliver to Agent an appropriate letter agreement with respect to the interest of Agent and Lenders
in such inventory as is reasonably acceptable to Agent, provided that if any such bailees
fail to execute and deliver such a letter agreement to Agent then all of such inventory located at
any and all third party locations of any such bailee shall not be considered Eligible Inventory for
purposes hereof.

     6.13. Interest Rate Protection. Within 90 days after the Closing Date, Borrowers
shall enter into, and thereafter maintain, interest protection agreements to the extent necessary
to provide that at least 40% of the aggregate principal amount of total Funded Debt on the date
hereof is subject to either a fixed interest rate or interest rate protection on terms and
conditions satisfactory to the Agent.

     6.14. Mortgages. Within 60 days after the Closing Date (or at such later time as the
Agent shall determine in its sole discretion) the Agent shall have received the Mortgages covering
each of the Mortgaged Properties owned by any Loan Party, executed and delivered by a duly
authorized officer of such Loan Party.

VII NEGATIVE COVENANTS.

     Parent and Borrowers hereby jointly and severally agree that, until satisfaction in full of
the Obligations in cash or other immediately available funds (other than for the Inchoate Indemnity
Obligations) and termination of this Agreement each of Parent and Borrowers shall not and shall not
permit any of its Subsidiaries to, directly or indirectly:

     7.1. Merger, Consolidation, Acquisition and Sale of Assets.

          (a) Enter into any merger, consolidation or other reorganization with or into any other Person
or acquire all or a substantial portion of the assets or stock of any Person or permit any other
Person to consolidate with or merge with it, provided however, that any Borrower may merge or
consolidate into another Borrower; and provided further that (i) any Borrower may purchase or
acquire all or a substantial portion of the assets or stock of any Person
or a business or division of another Person (a “Permitted Acquisition”), and (ii) any
Borrower

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may merge or consolidate with or into any Person if all of the following requirements are
met in connection with such Permitted Acquisition, merger or consolidation:

     (A) in the case of a Borrower acquiring the ownership interests in such Person
and such Person is organized under the laws of any state of the United States of
America, such Person shall become a Borrower or a Guarantor for the Obligations as
reasonably determined by the Agent;

     (B) in the case of a merger or consolidation, a Borrower shall be the
continuing and surviving entity;

     (C) in the case of a stock or other ownership purchase, the Person acquired by
such Borrower shall, to the extent such Person becomes a Borrower or Guarantor,
grant Liens in its assets to the Agent for the benefit of the Lenders covering the
same type of assets as the Collateral, and in the case of a Permitted Acquisition
or a merger or consolidation in which a Borrower is the continuing or surviving
entity, such Borrower shall cause the Lien of the Agent to have the priority set
forth in the Intercreditor Agreement, provided, however, none of such assets which
become Collateral as a result of a Permitted Acquisition or a merger or
consolidation in which a Borrower is the continuing or surviving entity shall be
included in the Formula Amount in accordance with the terms of this Agreement until
such time as Agent makes such determination in its sole reasonable discretion,
provided further that any such assets, the aggregate value of which exceeds
$2,000,000, shall be subject to a field exam to be conducted by the Agent;

     (D) the board of directors or other equivalent governing body of such Person
shall have approved such Permitted Acquisition, merger or consolidation;

     (E) the business acquired, or the business conducted by the Person whose
ownership interests are being acquired or the business subject to the merger or
consolidation, as applicable, shall be substantially the same as, or reasonably
related to, one or more line or lines of business conducted by the Borrowers as
described in Section 5.22;

     (F) no Default or Event of Default shall exist immediately prior to and after
giving effect to such Permitted Acquisition, merger or consolidation;

     (G) immediately prior to and after giving effect to such Permitted Acquisition
(including the payment of any prospective portion of the purchase price or
earn-outs), merger or consolidation, the Borrowers shall have in excess of Fifty
Million and 00/100 Dollars ($50,000,000.00) of Undrawn Availability;

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     (H) the proforma Fixed Charge Coverage Ratio after giving effect to such
Permitted Acquisition (including the payment of any prospective portion of the
purchase price or earn-outs due within one year of the date of closing of such
Permitted Acquisition), merger or consolidation for the period equal to the four
(4) consecutive fiscal quarters most recently ended shall not be less than 1.15 to
1.0; and

     (I) the Aggregate Consideration paid by any such Borrower for all such
Permitted Acquisitions, mergers or consolidations shall not exceed Twenty Million
and 00/100 Dollars ($20,000,000.00) in the aggregate in any fiscal year of the
Borrowers and Fifty Million and 00/100 Dollars ($50,000,000.00) in the aggregate
during the Term.

          (b) Sell, lease, transfer or otherwise dispose of any of its properties or assets, except in
the ordinary course of its business and except as provided in Section 4.3.

     7.2. Creation of Liens. Create or suffer to exist any Lien or transfer upon or
against any of its property or assets now owned or hereafter acquired, except Permitted
Encumbrances.

     7.3. Guarantees. Become liable upon the obligations of any Person (other than of
another Loan Party in the ordinary course of the proposed guarantor’s business) by assumption,
endorsement or guaranty thereof or otherwise (other than to Lenders) except (a) as disclosed on
Schedule 7.3, (b) guarantees made in the ordinary course of business up to an aggregate
amount of $2,500,000, (c) the endorsement of checks in the ordinary course of business, (d)
guaranty obligations that themselves constitute an explicit and direct category of Permitted
Indebtedness hereunder, (e) that certain Corporate Guaranty dated December 1, 2004 made by Parent
which guarantees the obligations of Simons Petroleum, Inc., an Oklahoma corporation, arising under
the GECC Note and (f) those certain Guaranty and Suretyship Agreements made by Parent in favor of
Sovereign CS, LLC which guarantee the obligations of CSOC Inc. under its lease agreements with
Sovereign CS, LLC.

     7.4. Investments. Purchase or acquire obligations or stock of, or any other interest
in, any Person, except (any of the following is referred to herein as a “Permitted
Investment”): (a) obligations issued or guaranteed by the United States of America or any
agency thereof, (b) commercial paper with maturities of not more than 180 days and a published
rating of not less than A-1 or P-1 (or the equivalent rating), (c) certificates of time deposit and
bankers’ acceptances having maturities of not more than 180 days and repurchase agreements backed
by United States government securities of a commercial bank if (i) such bank has a combined capital
and surplus of at least $500,000,000, or (ii) its debt obligations, or those of a holding company
of which it is a Subsidiary, are rated not less than A (or the equivalent rating) by a nationally
recognized investment rating agency, (d) U.S. money market funds that invest solely in obligations
issued or
guaranteed by the United States of America or an agency thereof, (e) (i) investments in
Borrowers; and (ii) investments in Subsidiaries of Borrowers in the ordinary course of business and
if and only if any such Subsidiaries are Loan Parties, (f) investments in Excluded Foreign
Subsidiaries in an aggregate amount not to exceed $6,000,000, (g) investments in newly created
Securitization Subsidiaries contemplated by the Securitization Documents to

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the extent reasonably
required thereby, (h) other investments in existence on the Closing Date and described in
Schedule 7.4, (i) investments comprised of notes payable, or stock or other securities
issued by account debtors to such Borrower pursuant to negotiated agreements with respect to
settlement of such account debtor’s Receivables, with all of the foregoing arising in the ordinary
course of business of Borrower, (j) loans to employees, officers, and directors to buy equity
interests in Parent as long as no cash is transferred to any such Persons in connection with the
making of such loans, (k) investments received in connection with the bankruptcy or reorganization
of suppliers and customers or in settlement of delinquent obligations of, and other disputes with,
customers and suppliers, with all of the foregoing arising in the ordinary course of business of
Borrower, (l) investments consisting of endorsements for collection or deposit in the ordinary
course of business and with respect to negotiable instruments for collection, (m) investments
consisting of non-speculative hedging agreements relating to the sale and purchase of fuel
inventory in the ordinary course of business of the Borrowers and otherwise consistent with their
past business practices, (n) securities and other investments that Borrowers may acquire in
connection with disposition of assets that are permitted hereunder as long as all conditions
attendant to any such permitted transaction are and remain satisfied, (o) loans or investments in
an amount otherwise permitted to be used for distributions hereunder (and with a commensurate
reduction of any such amount permitted for distributions, as long as the recipient of the loan or
investment is the same party that would be eligible to receive distributions pursuant to the terms
and conditions hereof, (p) investments otherwise permitted by Section 7.5 hereof and (q) other
investments not exceeding $1,000,000 in the aggregate in any fiscal year of the Borrowing Agent as
long as no Default is in existence prior to the making thereof or would otherwise rise thereupon.

     7.5. Loans. Make advances, loans or extensions of credit to any Person, including
without limitation, any Controlling Parent, Subsidiary or Affiliate except with respect to (a) the
extension of commercial trade credit in connection with the sale of Inventory in the ordinary
course of its business; (b) loans to its employees in the ordinary course of business not to exceed
the aggregate amount of $1,500,000 at any time outstanding; (c) loans to its employees for the
purpose of allowing employees to purchase interests in Borrowers as long as no transfer of cash is
involved in connection therewith; and (d) Permitted Investments.

     7.6. Capital Expenditures. Contract for, purchase or make any expenditure or
commitments for fixed or capital assets (including capitalized leases and transactions encompassing
indebtedness relating to any financed purchase) in any fiscal year in an aggregate amount for all
Borrowers in excess of the amount set forth below for such fiscal year:

	 	 	 
	Fiscal Year Ending	 	Maximum Capital Expenditures
	June 30, 2007
	 	$17,500,000
	June 30, 2008
	 	$17,500,000
	June 30, 2009
	 	$20,000,000
	June 30, 2010
	 	$20,000,000
	June 30, 2011
	 	$20,000,000

          ; provided that no such capital expenditures shall be permitted to be made at
such time when an Event of Default is then occurring and is continuing or would otherwise arise
upon

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the making of any such expenditure, provided, further, reinvestment of
proceeds by a Borrower of asset dispositions pursuant hereto and use of insurance proceeds for the
foregoing expenditures (but in each case only to the extent of the amount of proceeds actually
received from the applicable disposition or the applicable insurance payment) shall be subject to
no Event of Default having occurred or being continued, but when properly made shall not be
included for purposes of determining compliance with the provisions of this Section.

     7.7. Dividends. Declare, pay or make any dividend or distribution on any shares of
the common stock or preferred stock of any Borrower or on any member interests, as applicable
(other than dividends or distributions payable in its stock or membership interests, as applicable,
or split-ups or reclassifications of its stock) or apply any of its funds, property or assets to
the purchase, redemption or other retirement of any common or preferred stock or membership units,
or of any options to purchase or acquire any such shares of common or preferred stock or membership
units of any Borrower; provided, however, deemed repurchases of capital stock of
any of the Borrowers that arise as a result of a cashless stock warrant or option exercise shall be
permitted; provided, further, Parent shall be permitted to make distributions to
its members solely in order to pay required taxes of members that are then due and payable directly
with respect to, and only directly with respect to, taxable income derived solely from such
member’s ownership interest in Parent and Borrowers may make distributions to Parent to fund such
amounts; provided, further, the non-Parent Borrowers on a joint basis shall be
permitted to make distributions to Parent exclusively for the purpose of (i) the payment of the
annual Management Fees (plus any amount accrued by unpaid due to a prior Default or Event of
Default) relating to the Borrowers that are due and owing from Parent as long as no Default or
Event of Default has occurred and is continuing at or as of the date of the proposed distribution
thereof or would otherwise arise upon the making of any such proposed distribution (and in
connection therewith Parent shall thereupon be permitted to make such Management Fee payments), and
(ii) payment of post-closing purchase price adjustments under the Acquisition Agreements and the
post-closing bonus payments in accordance with Section 2.2(b)(v)(P) of the Pecos Acquisition
Agreement in an aggregate principal amount not to exceed $4,000,000, to the extent required by and
pursuant to the terms thereof, provided, further, that Borrowers may reimburse any
expenses, costs and liabilities that are reimbursable under the Management Agreement as long as no
Default or Event of Default has occurred and is continuing at or as of the date of the proposed
reimbursement or would otherwise arise upon the making of any such payment relating thereto,
provided, further, that Borrowers may make distributions for the purpose of
returning any equity contributions that
have been made in Borrowers for the purpose of causing Borrowers to be in compliance with the
financial covenants hereunder and such distributions may only be made: (A) if Borrowers hereunder
have been in compliance with all financial covenants hereunder for at least two consecutive
quarters since any such contributions were effected, (B) as long as no Default or Event of Default
shall have occurred and be continuing prior to the making of any such distribution or would
otherwise arise thereafter and (C) only to the extent that any such distribution is capped at an
amount that reflects the amount of the equity contribution that was made for the purpose of causing
Borrowers to have been in compliance with the financial covenants as aforesaid for any period.

     Further, (A) Parent may repurchase its equity interests owned by former directors or employees
of any Borrower or of Parent, and, their estates, spouses or former spouses in

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connection with the
termination of such employee’s employment (or such director’s directorship) and the Borrowers may
make distributions to fund or effect such purchases and/or issue notes and/or make payments on any
notes issued in connection with any such repurchase; provided, however, that (1) no
Default or Event of Default shall have occurred and be continuing at the time of such distribution
or would otherwise arise as a result thereof, (2) any such distribution is used promptly to
repurchase such equity interest or make such payments, and (3) the aggregate amount of all such
distributions for all Borrowers shall not exceed (a) $100,000 in cash for each fiscal year during
the term of this Agreement; plus (b) the proceeds of any key-man life insurance maintained by
Borrowers or any of their Subsidiaries regarding the repurchase of equity interests relating to
named insured; and (B) any distributions or dividends shall be permitted if from a Subsidiary that
is not a Loan Party to a Borrower or if from a Borrower to another Borrower. Further, notes
payable to a Borrower may be cancelled in connection with such repurchases.

     7.8. Indebtedness. Create, incur, assume or suffer to exist any Indebtedness
(exclusive of trade debt) except in respect of (i) Indebtedness to Lenders; (ii) Indebtedness with
respect to the Shell BDF Agreements in an aggregate principal amount not to exceed $2,000,000;
(iii) Indebtedness with respect to the Chevron BDF Agreements in an aggregate principal amount not
to exceed $2,000,000; (iv) Indebtedness owed to Valvoline with respect to Equipment financing in an
aggregate amount not to exceed $1,500,000; (v) Indebtedness existing on the date hereof and
described in Schedule 7.8; (vi) purchase money Indebtedness incurred in connection with the
purchase of any fixtures and Equipment to the extent otherwise permitted hereunder; (vii)
Securitization Indebtedness; (viii) Indebtedness of Excluded Foreign Subsidiaries in an aggregate
principal amount not to exceed $6,000,000 at any time outstanding; (ix) Indebtedness which
represents an extension, refinancing, or renewal of any of the Indebtedness described in
clauses (ii), (iii), (iv), (v) and (vi) hereof; provided, however, (a) the
principal amount or interest rate of such Indebtedness is not increased, (b) any Liens securing
such Indebtedness are not extended to any additional property of any Borrower or any Loan Party,
(c) such extension, refinancing or renewal does not result in a shortening of the average weighted
maturity of the Indebtedness so extended, refinanced, renewed, (d) the terms of any such extension,
refinancing, or renewal are not less favorable to the obligor thereunder than the original terms of
such Indebtedness and (e) if the Indebtedness that is refinanced, renewed, or extended was
subordinated in right of payment to the Obligations, then the terms and conditions of the
refinancing, renewal, or extension Indebtedness must be approved by Agent prior to the completion
of any such refinancing, unless the terms associated with the proposed modified Indebtedness are in
all material respects identical to the Indebtedness proposed to be modified; provided,
further, Borrower shall advise Agent and Lender in writing of any modification of the
Indebtedness pursuant to this clause (ix) and shall provide such information as Agent may request
in connection therewith; (x) Contingent Obligations arising by endorsement of instruments for
deposit or collection in the ordinary course of business; (xi) Capitalized Lease Obligations,
which, in the aggregate, do not exceed the maximum amounts set forth in Section 7.6 incurred for
the related fiscal year; (xii) intercompany Indebtedness among the Borrowers; (xiii) Indebtedness
consisting of promissory notes issued by Parent or any Borrower to current or former officers,
directors and employees (or their estates, spouses) or former spouses of any Borrower or Parent
issued to redeem equity interests of any Borrower, which redemption is otherwise permitted
hereunder; (xiv) Indebtedness incurred by any Borrower or

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any of its Subsidiaries arising from
agreements providing for indemnification, adjustment of purchase price or similar obligations, or
from guarantees, letter of credit or surety or performance bonds securing performance in each case
as is a component of the Permitted Investments; (xv) Indebtedness incurred in connection with the
financing of insurance premiums entered into in the ordinary course of the business of Borrowers;
(xvi) Indebtedness that is assumed in, or otherwise constitutes a Permitted Investment, and thus,
in both such circumstances, remains subject to the limitations set forth in the definition of
Permitted Investments; (xvii) Indebtedness in respect of netting services, overdraft protections
and otherwise in connection with deposit accounts, so long as such Indebtedness is incurred in the
ordinary course of business consistent in all respects with the past business practices of
Borrower; (xviii) Indebtedness secured by Liens of carriers, warehouses, mechanics and landlords
that are Permitted Liens, which Indebtedness specifically relates to the specific functions
performed by each of such parties in the ordinary course of such party’s business and subject to
the general limitations relating thereto as are set forth in the definition of Permitted Liens;
(xix) accrual and capitalization of interest on any of the other categories of Permitted
Indebtedness; (xx) Indebtedness arising under hedging agreements having a net mark-to-market
exposure arising in the ordinary course of Borrower’s business; and (xxi) other Indebtedness in an
aggregate amount not to exceed $10,000,000 at any time outstanding; (xxii) Indebtedness that is
subordinated in favor of Agent and Lenders pursuant to written terms and conditions acceptable to
Agent and Lenders in their discretion; (xxiii) Indebtedness incurred under the JPM Credit Agreement
and guarantees thereof by Parent and by Subsidiaries of Borrower so long as such Subsidiaries are
Guarantors thereunder; and (xxiv) Indebtedness incurred under the GECC Note.

     7.9. Nature of Business. Substantially change the nature of the business in which it
is presently engaged, nor except as specifically permitted hereby and otherwise subject to all
other terms and provisions hereof and of the other Loan Documents, purchase or invest in, directly
or indirectly, any assets or property other than in the ordinary course of business for assets or
property which are useful in, necessary for and are to be used in its business.

     7.10. Transactions with Affiliates. Directly or indirectly, purchase, acquire or lease any property from, or sell, transfer or
lease any property to, or otherwise deal with, any Affiliate, except transactions (a) in the
ordinary course of business, on an arm’s-length basis on terms no less favorable than terms which
would have been obtainable from a Person other than an Affiliate, (b) where the parties are
specifically identified to be a Borrower or a Subsidiary, (c) as otherwise specifically permitted
hereby or (d) as set forth on Schedule 7.10.

     7.11. Leases. Enter as lessee into any capital lease arrangement for real or personal
property (unless capitalized and permitted under Section 7.6 hereof).

     7.12. Subsidiaries.

          (a) Form any Subsidiary (other than a Securitization Subsidiary) unless any such Subsidiary
promptly upon its creation becomes a Loan Party or unless such Subsidiary is an Excluded Foreign
Subsidiary otherwise permitted hereunder.

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          (b) Enter into any partnership, joint venture or similar arrangement, other than for any of
the foregoing that are Permitted Investments.

     7.13. Fiscal Year and Accounting Changes. Change its fiscal year from the annual
period of July 1 through June 30 or make any change (i) in accounting treatment and reporting
practices except as required by GAAP or (ii) in tax reporting treatment except as required by law.

     7.14. Pledge of Credit. Now or hereafter pledge Agent’s or any Lender’s credit on any
purchases or for any purpose whatsoever or use any portion of any Advance in or for any business
other than such Borrower’s business as conducted on the date of this Agreement or reasonably
related thereto.

     7.15. Amendment of Organizational Documents. Amend, modify or waive any term or
material provision of its organizational documents, including, its articles of organization,
operating agreement, Articles of Incorporation or By-Laws, each as applicable, or change its name,
unless required by law, in a manner materially adverse to Agent and Lenders except with their prior
written consent.

     7.16. Compliance with ERISA. (i) (x) Maintain, or permit any member of the Controlled
Group to maintain, or (y) become obligated to contribute, or permit any member of the Controlled
Group to become obligated to contribute, to any Plan, other than those Plans disclosed on Schedule
5.8(d), (ii)
engage, or permit any member of the Controlled Group to engage, in any non-exempt “prohibited
transaction”, as that term is defined in Section 406 of ERISA and Section 4975 of the Code, (iii)
incur, or permit any member of the Controlled Group to incur, any “accumulated funding deficiency”,
as that term is defined in Section 302 of ERISA or Section 412 of the Code, (iv) terminate, or
permit any member of the Controlled Group to terminate, any Plan where such event could result in
any material liability of any Borrower or any member of the Controlled Group or the imposition of a
lien on the property of any Borrower or any member of the Controlled Group pursuant to Section 4068
of ERISA that would result in a Default or Event of Default hereunder, (v) assume, or permit any
member of the Controlled Group to assume, any obligation to contribute to any Multiemployer Plan
not disclosed on Schedule 5.8(d), (vi) incur, or permit any member of the Controlled Group to
incur, any withdrawal liability to any Multiemployer Plan; (vii) fail promptly to notify Agent of
the occurrence of any Termination Event, (viii) fail to comply, or permit a member of the
Controlled Group to fail to comply, in all material respects, with the requirements of ERISA or the
Code or other applicable laws in respect of any Plan, (ix) fail to meet, or permit any member of
the Controlled Group to fail to meet, in all material respects, all minimum funding requirements
under ERISA or the Code or postpone or delay or allow any member of the Controlled Group to
postpone or delay any funding requirement with respect of any Plan, which would result in a Default
or an Event of Default hereunder.

     7.17. Prepayment of Indebtedness. Other than for the payment of trade payables in the
ordinary course of business and except as permitted under the JPM Credit Agreement, at any time,
directly or indirectly, prepay any Indebtedness (other than to Lenders and other than as required
under the JPM Credit Agreement), or repurchase, redeem, retire or otherwise acquire

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any
Indebtedness of any Borrower prior to the maturity of all or any part thereof as in effect as of
the date hereof (if such Indebtedness is now outstanding).

     7.18. Reserved.

     7.19. Other Agreements. Enter into any material amendment, waiver or modification of
the Acquisition Agreement, the Affiliation Agreements or any agreements or documents relating to
any of the foregoing in a manner materially adverse to the interests of Agent and Lenders.

     7.20. Tax Shelter Regulations. Treat the Advances and related transactions as being a
“reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4) unless it
promptly (1) notifies the Agent it is not so treating the Advances and related transactions, and
(2) thereupon delivers to the Agent a duly completed copy of IRS Form 8886 or any successor form.
If a Borrower so notifies the Agent, the Borrower acknowledges that one or more of the Lenders may
treat its Advances as part of a transaction that is subject to Treasury Regulation Section
301.6112-i, and such Lenders
or Lenders, as applicable, will maintain the lists and other records required by such Treasury
Regulation.

VIII CONDITIONS PRECEDENT.

     8.1. Conditions to Initial Advances. The agreement of Lenders to make the initial
Advances requested to be made on the Closing Date is subject to the satisfaction, or waiver by
Lenders, immediately prior to or concurrently with the making of such Advances, of the following
conditions precedent:

          (a) Revolving Credit Notes. Agent shall have received the Revolving Credit Notes duly
executed and delivered by an authorized officer of each Borrower;

          (b) Filings, Registrations and Recordings; Searches. (i) Each document (including,
without limitation, any Uniform Commercial Code financing statement or intellectual property
security agreements) required by this Agreement, any related agreement or under law or reasonably
requested by the Agent to be filed, registered or recorded in order to create, in favor of Agent, a
perfected security interest in or lien upon the Collateral shall have been properly filed,
registered or recorded in each jurisdiction in which the filing, registration or recordation
thereof is so required or requested, and Agent shall have received an acknowledgment copy, or
other evidence satisfactory to it, of each such filing, registration or recordation and
satisfactory evidence of the payment of any necessary fee, tax or expense relating thereto; and
(ii) Agent shall have received the results of searches listing all effective financing statements
which name the Loan Parties as debtor, together with copies of such financing statements, none of
which, except for Permitted Encumbrances, shall cover any of the Collateral, and the results of
searches for any tax Lien and judgment Lien filed against each Loan Party or its property, which
results, except as otherwise agreed to in writing by Agent, shall not show any such Liens. Without
limiting the generality of the foregoing, with respect to PNC Bank, National Association, UMB Bank
N.A., DaimlerChrysler Truck Financial, Comerica Bank, Chase Bank, N.A., Simons Texas Limited
Partnership, Peter A. Hartney, Gary G. Hartney, Steve R. Hartney and Jeffrey M. Hartney, and Tom E.
Trevenen, Claudia A. Trevenen, Jeffrey S. Trevenen and Clayton J.

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Trevenen (the “Existing
Lenders”), Agent shall receive a letter, in form and substance satisfactory to Agent, from each
Existing Lender to Agent respecting the amount necessary to repay in full all of the obligations of
Borrower owing to such Existing Lender and obtain a release of all of the Liens existing in favor
of Existing Lender in and to the assets of Borrower (each, a “Payoff Letter”). Borrower hereby
represents and warrants that neither SPI-Oklahoma nor SPI-Texas is the debtor identified in that
certain UCC-1 Financing Statement, listing “SPI, Inc.” as debtor and Bank of America, N.A. as
secured party, filed on August 20, 1999 with the Texas Secretary of State as File No. 99-170502 (as
amended, the “BofA Texas Filing”), and that none of the Collateral of Borrower is covered by the
BofA Texas Filing. Borrower hereby represents and warrants that neither SPI-Oklahoma nor SPI-Texas
is the debtor
identified in any of those certain UCC-1 Financing Statements, each listing “Simons Petroleum,
Inc.” as debtor and The First State Bank of Shelby as secured party, filed with the Montana
Secretary of State, respectively, on 03/07/1984 as File No. 150277-00, on 07/11/1985 as File No.
173424-00, and on 04/23/2002 as File No. 68128318 (each as amended, collectively, the “Shelby Bank
Montana Filings”), and that none of the Collateral of Borrower is covered by any of the Shelby Bank
Montana Filings.

          (c) Authorization Proceedings of Borrowers. Agent shall have received a copy of the
resolutions in form and substance reasonably satisfactory to Agent, of the members or Board of
Directors of each Loan Party, as applicable, authorizing (i) the execution, delivery and
performance of this Agreement, the Revolving Credit Notes, and any related agreements (including
without limitation the Other Documents), and the Acquisition Agreements (collectively the
“Documents”) and (ii) the granting by each Loan Party of the security interests in and
liens upon the Collateral in each case certified by the Secretary or an Assistant Secretary of each
Borrower, as of the Closing Date; and, such certificate shall state that the resolutions thereby
certified have not been amended, modified, revoked or rescinded as of the date of such certificate;

          (d) Incumbency Certificates of Loan Parties. Agent shall have received a certificate
of the Secretary or an Assistant Secretary of each Loan Party, dated the Closing Date, as to the
incumbency and signature of the officers of each Loan Party executing this Agreement, any
certificate or other documents to be delivered by it pursuant hereto, together with evidence of the
incumbency of such Secretary or Assistant Secretary;

          (e) Corporate Proceedings of Guarantor. Agent shall have received a copy of the
resolutions in form and substance reasonably satisfactory to Agent, of the Board of Directors of
each Guarantor authorizing the execution, delivery and performance of the Guaranty certified by the
Secretary or an Assistant Secretary of such Guarantor as of the Closing Date; and, such certificate
shall state that the resolutions thereby certified have not been amended, modified, revoked or
rescinded as of the date of such certificate;

          (f) Incumbency Certificates of Guarantor. Agent shall have received a certificate of
the Secretary or an Assistant Secretary of any Guarantor, dated the Closing Date, as to the
incumbency and signature of the officers of each Guarantor executing this Agreement, any
certificate or other documents to be delivered by it pursuant hereto, together with evidence of the
incumbency of such Secretary or Assistant Secretary;

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          (g) Certificates. Agent shall have received a copy of the Articles of Organization or Articles or Certificate
of Incorporation of each Loan Party, and each Guarantor, as applicable, and all amendments thereto,
certified by the Secretary of State or other appropriate official of its jurisdiction of
incorporation together with copies of the operating agreement or By-Laws of each Loan Party and
each Guarantor, as applicable, and all agreements of each Loan Party’s and each Guarantor’s members
or shareholders, as applicable, certified as accurate and complete by the Secretary of each Loan
Party and such Guarantor;

          (h) Good Standing Certificates. Agent shall have received good standing certificates
for each Loan Party dated not more than 30 days prior to the Closing Date, issued by the Secretary
of State or other appropriate official of each Loan Party’s jurisdiction of organization or
incorporation, as applicable, and each jurisdiction where the conduct of each Loan Party’s business
activities or the ownership of its properties necessitates qualification;

          (i) Legal Opinions. Agent shall have received (1) the executed legal opinion of
Kirkland & Ellis LLP in form and substance satisfactory to Agent which shall cover such matters
incident to the transactions contemplated by this Agreement, the Revolving Credit Notes, and
related agreements as Agent may reasonably require and each Borrower hereby authorizes and directs
such counsel to deliver such opinions to Agent and Lenders and (2) copies of any legal opinions
delivered to a Loan Party in connection with the Transactions together with a letter from the
issuers thereof permitting Agent to rely thereon (or a provision therein having the same import);

          (j) No Litigation. Except as disclosed on Schedule 5.8(b) hereto, (v) no litigation,
investigation or proceeding before or by any arbitrator or Governmental Body shall be continuing or
threatened against any Loan Party or against the officers or directors of any Loan Party (A) in
connection with the Other Documents or any of the transactions contemplated thereby and which, in
the reasonable opinion of Agent, is deemed material or (B) which would, if adversely determined,
have a Material Adverse Effect, as the Agent shall reasonably determine; and (vi) no injunction,
writ, restraining order or other order of any nature materially adverse to any Loan Party or the
conduct of its business or inconsistent with the due consummation of the Transactions shall have
been issued by any Governmental Body;

          (k) Financial Condition Certificates. Agent shall have received an executed Financial
Condition Certificate in the form of Exhibit 8.1(k).

          (l) Collateral Examination. Agent shall have completed Collateral examinations and
received appraisals, the results of which shall be satisfactory in form and substance to Lenders,
of the Receivables,
Inventory, General Intangibles, Real Property, Leasehold Interest and Equipment of each Loan
Party and all books and records in connection therewith;

          (m) Fees. Agent shall have received all fees payable to Agent and Lenders on or prior
to the Closing Date pursuant to Article III hereof;

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          (n) Financial Statements(a) . Agent shall have received a copy of the Pro Forma
Financial Statements and interim financial statements, which shall be satisfactory in all respects
to Lenders;

          (o) Merger and Acquisition Documents. Agent shall have received final executed copies
of the Acquisition Agreements and all related agreements, documents and instruments as in effect on
the Closing Date and the transactions contemplated by such documentation shall be consummated prior
to or concurrently with the making of the initial Advance, including without limitation the
consummation of equity financing transactions from which Parent shall have received a minimum of
gross proceeds of (i) $22,500,000 arising from the equity sponsor group consisting of Waud Capital
Partners, LLC, Northwest Capital Appreciation and RBC Capital Partners, or affiliates thereof, (ii)
$1,500,000 arising from the equity contribution by Roger Simons, (iii) $1,000,000 arising from the
equity contribution by Peter Hartney and (iv) $10,000,000 arising from the equity contribution by
the management of Pecos, Inc., all pursuant to equity financing transaction documentation and
instruments reasonably acceptable to Agent.

          (p) JPM Loan Documents. Agent shall have received final executed copies of the JPM
Loan Documents and all related agreements, documents and instruments as in effect on the Closing
Date and the transactions contemplated by such documentation shall be consummated prior to or
concurrently with the making of the initial Advance. Global Petroleum, Inc. shall have received
not less $155,000,000 from the proceeds of the JPM Credit Agreement;

          (q) Shell Subordination Agreement. Agent shall have received a final executed copy of
the Shell Subordination Agreement;

          (r) Insurance. Agent shall have received in form and substance satisfactory to Agent,
certified copies of Borrowers’ casualty insurance policies, together with loss payable endorsements
acceptable to Agent naming Agent as loss payee, and certified copies of Borrowers’ liability
insurance policies, together with endorsements naming Agent as a co-insured;

          (s) Environmental Reports. Agent shall have received and been reasonably satisfied
with the PNC Environmental Reports.

          (t) Payment Instructions. Agent shall have received written instructions from
Borrowers directing the application of proceeds of the initial Advances made pursuant to this
Agreement;

          (u) Blocked Accounts. Agent shall have received duly executed agreements establishing
the Blocked Accounts or Depository Accounts with financial institutions acceptable to Agent for the
collection or servicing of the Receivables and proceeds of the First-Priority Collateral or,
alternatively, Borrowers shall have established with Agent all of its bank accounts with Agent, all
in a manner to the satisfaction of Agent in its sole discretion;

          (v) Consents. Agent shall have received any and all Consents necessary to permit the
effectuation of the transactions contemplated by this Agreement and the Other

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Documents; and, Agent
shall have received such Consents and waivers of such third parties as might assert claims with
respect to the Collateral, as Agent and its counsel shall deem necessary, together with all other
landlord waiver agreements and bailee agreements as Agent shall determine to be necessary or
advisable;

          (w) No Adverse Material Change. (i) Since June 30, 2005, there shall not have
occurred any event, condition or state of facts which could reasonably be expected to have a
Material Adverse Effect and (ii) no representations made or information supplied to Agent shall
have been proven to be inaccurate or misleading in any material respect;

          (x) Leasehold Agreements. Agent shall have received landlord, mortgagee or
warehouseman agreements reasonably satisfactory to Agent with respect to all premises leased by
Borrowers at which Inventory is located;

          (y) Shell BDF Agreements. Agent shall have received copies of the Shell BDF
Agreements and Shell Subordination Agreement, which Subordination Agreement shall contain such
terms and provisions including, without limitation, subordination terms reasonably satisfactory to
Agent;

          (z) Chevron BDF Agreements. Agent shall have received copies of the Chevron BDF Agreements;

          (aa) Guarantees and Other Documents. Agent shall have received (i) the executed
Guarantees and (ii) the executed Other Documents, all in form and substance satisfactory to Agent;

          (bb) Balance Sheet. Agent shall have received an internally prepared pro forma
balance sheet to reflect the effect of the Transactions that updates the balance sheet given to the
Agent in the materials that the Parent provided to the Agent entitled “Closing Balance Sheet”,
which shall be acceptable to the Agent and the Lenders in their sole discretion.

          (cc) Closing Certificate. Agent shall have received a closing certificate signed by
the Chief Financial Officer of each Loan Party delivered on behalf of such Loan Party and dated as
of the date hereof, stating that (i) all representations and warranties set forth in this Agreement
and the Other Documents are true and correct on and as of such date, (ii) each Loan Party is on
such date in compliance with all the terms and provisions set forth in this Agreement and the Other
Documents and (iii) on such date no Default or Event of Default has occurred or is continuing;

          (dd) Borrowing Base. Agent shall have received evidence from Borrowers that the
aggregate amount of Eligible Receivables and Eligible Inventory is sufficient in value and amount
to support Advances in the amount requested by Borrowers on the Closing Date;

          (ee) Undrawn Availability. Upon the Closing Date hereof, and after giving effect to
the initial Advances hereunder, Borrowers shall have Undrawn Availability of at least $50,000,000;

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          (ff) Management Agreement. Agent shall have received final certified copies of the
Management Agreement and all related agreements, documents and instruments.

          (gg) Other. All limited liability company, corporate and other proceedings, and all
documents, instruments and other legal matters in connection with the Transactions shall be
satisfactory in form and substance to Agent and its counsel.

     8.2. Conditions to Each Advance. The agreement of Lenders to make any Advance requested to be made on any date (including,
without limitation, the initial Advance), is subject to the satisfaction of the following
conditions precedent as of the date such initial Advance is made:

          (a) Representations and Warranties. Each of the representations and warranties made
by any Loan Party in or pursuant to this Agreement and any related agreements to which it is a
party, and each of the representations and warranties made to the Lenders contained in any
certificate, document or financial or other statement furnished at any time under or in connection
with this Agreement or any related agreement shall be true and correct in all material respects on
and as of such date as if made on and as of such date, other than such representations and
warranties relating to a specific earlier date and in such case such representations and warranties
shall continue to be true in all material respects as of such earlier date;

          (b) No Default. No Event of Default or Default shall have occurred and be continuing
on such date, or would exist after giving effect to the Advances requested to be made, on such
date; provided, however that Agent, in its sole discretion (but subject to the
Required Lenders not having notified the Agent that it shall no longer make such Advances), may
continue to make Advances notwithstanding the existence of an Event of Default or Default and that
any Advances so made shall not be deemed a waiver of any such Event of Default or Default,
provided, further, solely for purposes of this Section 8.2(b), a Default shall not
be deemed to arise (1) with respect to the occurrences set forth in Sections 10.4 hereof unless the
amount that is the subject of, or otherwise at issue in connection with, the matters set forth
therein is in excess of $750,000; (2) with respect Section 10.5 as it is applicable to breaches of
the provisions of each of Sections 4.6, 4.7, 4.9, 6.4 and 9.6 during the cure periods for any such
breach referred to in such Section 10.5; (3) with respect to Section 10.17(i)(B), provided,
further, that the limitations set forth in this Section regarding when a Default shall be
deemed to arise shall not detract from or otherwise impair the foregoing occurrences otherwise
constituting Defaults for all other purposes hereunder and, moreover, from such occurrences
becoming Events of Default upon the passage of time as set forth in each of the provisions of the
respective applicable sections.

          (c) Maximum Advances. In the case of any Advances requested to be made, after giving
effect thereto, the aggregate Advances shall not exceed the maximum amount of Advances permitted
under Section 2.1 hereof.

Each request for an Advance by any Borrower hereunder shall constitute a representation and
warranty by each Borrower as of the date of such Advance that the conditions contained in this
subsection shall have been satisfied.

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	IX INFORMATION AS TO BORROWERS.

     Each Borrower shall, until satisfaction in full of the Obligations in cash or other
immediately available funds (other than the Inchoate Indemnities) and the termination of this
Agreement:

     9.1. Disclosure of Material Matters. Immediately upon learning thereof, report to
Agent all matters materially affecting the value, enforceability or collectibility of any material
portion of the Collateral including, without limitation, any Borrower’s reclamation or repossession
of, or the return to any Borrower of, a material amount of goods or claims or disputes asserted by
any Customer or other obligor.

     9.2. Schedules. Deliver to Agent on or before the twentieth (20th) day of each month
as and for the prior month (a) accounts receivable agings reconciled to the general ledger; (b)
accounts payable schedules reconciled to the general ledger; (c) Inventory reports regarding
warehouse locations and regarding Designated Supply Contracts Locations; (d) hedging activities
report and data and other information regarding unhedged positions as Agent shall deem advisable or
appropriate under the then existing circumstances; and (e) a consolidated monthly Borrowing Base
Certificate, including ineligible calculations (which shall be calculated as of the last day of
such prior month and which, in any event, remains subject to review and approval by Agent), in each
of the foregoing cases in form acceptable to Agent. If the Undrawn Availability is less than
$35,000,000, Borrowers shall also deliver to Agent on a weekly basis on Friday of each week
relating to the prior week’s activities (consisting of the seven days commencing on Monday of such
prior week and ending on Sunday of such week): (a) a Borrowing Base Certificate (which remains
subject to review and approval by Agent); (b) a report regarding sales, collections and credits;
(c) an Inventory report regarding fuel listing amounts in both dollar value and in gallons quantity
for Designated Supply Contracts Locations, Pathway Network locations, remote site tanks and marine
terminal tanks. In addition, each Borrower will deliver to Agent at such intervals as Agent may
require as Agent shall reasonably determine: (i) confirmatory assignment schedules, (ii) copies of
Customer’s invoices, (iii) evidence of shipment or delivery, and (iv) such further schedules,
documents and/or information regarding the Collateral as Agent may require including, without
limitation, trial balances and test verifications. In connection with its review and approval of
the Borrowing Base Certificate that the Borrowers supply to Agent, and without limitation of the
other rights of Agent hereunder with respect to the Collateral, Agent shall have the right to
confirm and verify all Receivables by any manner and through any medium it considers advisable and
do whatever it may deem reasonably necessary to protect its interests hereunder. The items to be
provided under this Section are to be in form satisfactory to Agent and executed by each Borrower
and delivered to Agent from time to time solely for Agent’s convenience in maintaining records of
the Collateral, and any Borrower’s failure to deliver any of such items to Agent shall not affect,
terminate, modify or otherwise limit Agent’s Lien with respect to the Collateral. Without limiting
the generality of the foregoing, any of the foregoing reports relative to Receivables of Borrower
shall identify, as a separate subcategory within such report, Receivables arising from each of the
Designated Supply Contracts, and any of the foregoing reports relative to Inventory of Borrower
shall identify, as a separate
subcategory within such report, Inventory located at each of the Designated Supply Contracts
Locations.

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     9.3. [Reserved].

     9.4. Litigation. Promptly notify Agent in writing of any litigation, suit or
administrative proceeding against any Borrower, whether or not the claim is covered by insurance,
and of any suit or administrative proceeding, which in any such case could reasonably be expected
to have a Material Adverse Effect.

     9.5. Material Occurrences. Promptly notify Agent in writing upon the occurrence of
(a) any Event of Default or Default; (b) any event of default under the Shell BDF Agreements; (c)
any event which with the giving of notice or lapse of time, or both, would constitute an event of
default under the Shell BDF Agreements; (d) any event of default under the Chevron BDF Agreements;
(e) any event which with the giving of notice or lapse of time, or both, would constitute an event
of default under the Chevron BDF Agreements; (f) any event, development or circumstance whereby any
financial statements or other reports furnished to Agent fail in any material respect to present
fairly in all material respects, in accordance with GAAP, the financial condition or operating
results of any Borrower as of the date of such statements; (g) any accumulated retirement plan
funding deficiency which, if such deficiency continued for two plan years and was not corrected as
provided in Section 4971 of the Code, could subject any Borrower to a tax imposed by Section 4971
of the Code; (h) each default by any Borrower which might result in the acceleration of the
maturity of any Indebtedness that, in turn, would cause a Default or an Event of Default hereunder,
including the names and addresses of the holders of such Indebtedness with respect to which there
is a default existing or with respect to which the maturity has been or could be accelerated, and
the amount of such Indebtedness; and (i) any other development in the business or affairs of any
Borrower which could reasonably be expected to have a Material Adverse Effect; in each case
describing the nature thereof and the action Borrowers propose to take with respect thereto.

     9.6. Government Receivables. Notify Agent promptly, but in no event not later than
concurrently with the submission of any report of Receivables required to be delivered to Agent
pursuant to the terms and conditions hereof, if any of its Receivables arise out of contracts
between any Borrower and the United States, any state, or any department, agency or instrumentality
thereof.

     9.7. Annual Financial Statements. Furnish Agent within one hundred (100) days after
the end of each fiscal year of Borrowers (except in case of the fiscal year of the Borrowers ended
June 30, 2006, within one
hundred twenty (120) days after the end of such fiscal year of the Borrowers), financial
statements of Borrowers on a consolidated basis, at the Parent level, including, but not limited
to, statements of income and stockholders’ equity and cash flow from the beginning of the current
fiscal year to the end of such fiscal year and the balance sheet as at the end of such fiscal year,
including supplemental schedules to reflect the consolidating balance sheet and statement of
income, all prepared in accordance with GAAP (subject to the standards in Section 6.9 hereof) and
reported upon without qualification by an independent certified public accounting firm selected by
Borrowers and satisfactory to Agent (the “Accountants”). The report of the Accountants
shall be accompanied by a statement of the Accountants certifying that to their knowledge no Event
of Default under Sections 6.5, 6.6 or 7.6 of this Agreement then existed as of the date of such
report, based on items that are examined or reported by the normal

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audit procedures of the
accounting firm used in preparing the financial reports and specifying any such Event of Default,
if applicable. In addition, the reports shall be accompanied by a certificate of each Borrower’s
Chief Financial Officer or Treasurer on behalf of the Borrowers which shall state that, based on an
examination of such reports undertaken in a manner that is consistent with his duties as an officer
of such Borrower, no Default or Event of Default exists, or, if such is not the case, specifying
such Default or Event of Default and whether it is continuing and the steps being taken by such
Borrower with respect to such event, and such certificate shall have appended thereto calculations
which set forth Borrowers’ compliance with the requirements or restrictions imposed by Sections
6.5, 6.6 and 7.6 hereof.

     9.8. Quarterly Financial Statements. Furnish Agent within 45 days after the end of
each fiscal quarter, an unaudited balance sheet of Borrower on a consolidated basis, at the Parent
level, and unaudited statements of income and stockholders’ equity and cash flow of Borrower on a
consolidated basis reflecting results of operations from the beginning of the fiscal year to the
end of such quarter and for such quarter, prepared on a basis consistent with prior practices and
complete and correct in all material respects, subject to normal and recurring year end adjustments
that individually and in the aggregate are not material to Borrower’s business. The reports shall
be accompanied by a certificate of Borrower’s Chief Financial Officer or Treasurer on behalf of
Borrower which shall state that, based on an examination of such reports undertaken in a manner
that is consistent with his duties as an officer of Borrower, no Default or Event of Default
exists, or, if such is not the case, specifying such Default or Event of Default and whether it is
continuing and the steps being taken by Borrower with respect to such event, and such certificate
shall have appended thereto calculations which set forth Borrower’s compliance with the
requirements or restrictions imposed by Sections 6.5, 6.6 and 7.6 hereof.

     9.9. Monthly Financial Statements. Furnish Agent within thirty (30) days after the
end of each month (which is not at the end of a fiscal quarter), an unaudited balance sheet of
Borrowers on a consolidated basis, at the Parent level, and unaudited statements of income and
stockholders’ equity and cash flow of Borrowers on a consolidated basis reflecting results of
operations from the beginning of the fiscal year to the end of such month and for such month, all
prepared in accordance with GAAP (subject to the standards in Section 6.9 hereof) on a basis
consistent with prior practices and
complete and correct in all material respects, subject to normal and recurring year end
adjustments that individually and in the aggregate are not material to the business of Borrowers.

     9.10. Other Reports. Furnish Agent as soon as available, but in any event within ten
(10) days after the issuance thereof, (i) with copies of such management analysis reports as
Borrower shall send to all of its stockholders or holder of a member’s interest, as applicable, in
their capacities as such, and (ii) copies of all notices sent pursuant to the Shell BDF Agreements
and the Chevron BDF Agreements.

     9.11. Additional Information. Furnish Agent with such additional information as Agent
shall reasonably request in order to enable Agent to determine whether the terms, covenants,
provisions and conditions of this Agreement and the Revolving Credit Notes have been complied with
by Borrowers including, without limitation and without the necessity of any request by Agent, (a)
copies of all environmental audits and reviews, (b) at least ten (10) days prior thereto

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(subject
to the proviso below), notice of any Borrower’s opening of any new office or place of business or
any Borrower’s closing of any existing office or place of business, provided that at least thirty
(30) days prior to the opening of any new headquarters or chief executive office or place of
business or any Borrower’s closing of any existing headquarters or chief executive office or place
of business, and (c) promptly upon any Borrower’s learning thereof, notice of any labor dispute to
which any Borrower may become a party, any strikes or walkouts relating to any of its plants or
other facilities, and the expiration of any labor contract to which any Borrower is a party or by
which any Borrower is bound.

     9.12. Projected Operating Budget. Furnish Agent, no later than thirty (30) days prior
to the beginning of each fiscal year of Borrower during the Term, and commencing with fiscal year
2007, a month by month projected operating budget and cash flow of Borrowers on a consolidated
basis for such fiscal year (including an income statement and balance sheet for each month); such
projections are to be accompanied by a certificate signed by the President, Chief Financial Officer
or Treasurer of each Borrower and delivered in each case on behalf of such entity, to the effect
that such projections are based on underlying assumptions which were believed to be reasonable as
of the date made, and reflect Borrowers’ judgment, based on assumptions which were believed to be
reasonable at the time made regarding what was believed to be at such time a reasonably likely
operating budget for the projected period, provided, however, since such projections are by their
nature prospective and contingent on a wide range of factors, actual results therefore may vary
significantly, provided, further, nothing has occurred in the interval between the date of
determination of the reasonableness of the assumptions referenced above and the date of the
delivery of such projections to Agent to render Borrowers’ belief regarding the foregoing
assumptions no longer reasonable.

     9.13. Variances From Operating Budget. Furnish Agent, concurrently with the delivery of the financial statements referred to in
Sections 9.7, 9.8 and 9.9 and each monthly report, a written report summarizing all material
variances from budgets submitted by Borrowers pursuant to Section 9.12 and a discussion and
analysis by management with respect to such variances.

     9.14. Notice of Suits, Adverse Events. Furnish Agent with prompt notice of (i) any
lapse or other termination of any Consent issued to any Borrower by any Governmental Body or any
other Person that is material to the operation of any Borrower’s business, (ii) any refusal by any
Governmental Body or any other Person to renew or extend any such Consent; and (iii) copies of any
periodic or special reports filed by any Borrower with any Governmental Body or Person, if such
reports indicate any material change in the business, operations, affairs or condition of any
Borrower, or if copies thereof are requested by Lender, and (iv) copies of any material notices and
other communications from any Governmental Body or Person which specifically relate to any
Borrower.

     9.15. ERISA Notices and Requests. Furnish Agent with immediate written notice in the
event that (i) any Borrower or any member of the Controlled Group knows or has reason to know that
a Termination Event has occurred, together with a written statement describing such Termination
Event and the action, if any, which such Borrower or any member of the Controlled Group has taken,
is taking, or proposes to take with respect thereto and, when known, any action taken or threatened
by the Internal Revenue Service, Department of Labor or PBGC with respect

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thereto, (ii) any
Borrower or any member of the Controlled Group knows or has reason to know that a prohibited
transaction (as defined in Sections 406 of ERISA and 4975 of the Code) has occurred together with a
written statement describing such transaction and the action which such Borrower or any member of
the Controlled Group has taken, is taking or proposes to take with respect thereto, (iii) a funding
waiver request has been filed with respect to any Plan together with all communications received by
any Borrower or any member of the Controlled Group with respect to such request, (iv) any increase
in the benefits of any existing Plan or the establishment of any new Plan or the commencement of
contributions to any Plan to which any Borrower or any member of the Controlled Group was not
previously contributing shall occur, (v) any Borrower or any member of the Controlled Group shall
receive from the PBGC a notice of intention to terminate a Plan or to have a trustee appointed to
administer a Plan, together with copies of each such notice, (vi) any Borrower or any member of the
Controlled Group shall receive any favorable or unfavorable determination letter from the Internal
Revenue Service regarding the qualification of a Plan under Section 401(a) of the Code, together
with copies of each such letter; (vii) any Borrower or any member of the Controlled Group shall
receive a notice regarding the imposition of withdrawal liability, together with copies of each
such notice; (viii) any Borrower or any member of the Controlled Group shall fail to make a
required installment or any other required payment under Section 412 of the Code on or before the
due date for such installment or payment; (ix) any Borrower or any member of the Controlled Group
knows that (a) a Multiemployer Plan has been terminated, (b) the administrator or plan sponsor of a
Multiemployer Plan intends to terminate a Multiemployer Plan, or (c) the PBGC has instituted
or will institute proceedings under Section 4042 of ERISA to terminate a Multiemployer Plan.

     9.16. Opening Balance Sheet. Borrowers shall deliver to the Agent, within 90 days of
the Closing Date, a compiled opening balance sheet of the Borrowers on a consolidated basis, which
shall have been prepared in accordance with GAAP and is subject to the provisions of Section 6.9
hereof.

     9.17. Review of Hedging Portfolio. On an annual basis, and at such other times as the
then existing circumstances shall indicate as appropriate from the Agent’s perspective, Agent shall
cause to be conducted, at the expense of Borrowers, an analysis and assessment of the hedging
portfolio of Borrowers, which shall yield results that Agent deems acceptable in its discretion.
Further, Borrowers shall assist in providing information and taking such remedial actions in
connection with the foregoing that Agent determines are necessary or desirable.

     9.18. Additional Documents. Execute and deliver to Agent, upon request, such
documents and agreements as Agent may, from time to time, reasonably request to carry out the
purposes, terms or conditions of this Agreement, including, without limitation, such additional
security agreements and instruments as Agent shall, in its good faith business judgment, determine
are necessary or advisable.

X EVENTS OF DEFAULT.

     The occurrence of any one or more of the following events shall constitute an “Event of
Default”:

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     10.1. failure by any Borrower to pay any principal or interest on the Obligations when due,
whether at maturity or by reason of acceleration pursuant to the terms of this Agreement or by
notice of intention to prepay, or by required prepayment or failure to pay any other liabilities or
make any other payment, fee or charge provided for herein when due or in any Other Document;
provided, however, Borrower shall have fifteen (15) days to repay any Limited Cure Overadvances
before the failure to pay same shall immediately upon the passing of such time period without
payment thereof constitute an Event of Default under this Section 10.1;

     10.2. (A) any representation or warranty made or deemed made to Agent or Lenders by any
Borrower in any certificate, document or financial or other statement furnished prior to the date
hereof in connection with the transactions contemplated hereby or by any of the Other Documents, or
(B) at any other time, any representation or warranty made or deemed made by any Borrower in this
Agreement or in any of the Other Documents, shall prove to have been misleading in any material
respect on the date when made or deemed to have been made;

     10.3. failure by any Borrower to (i) furnish financial information when due or when otherwise
required to do so pursuant to the terms and conditions of this Agreement and any of the Other
Documents, or (ii) permit the inspection of its books or records as required by this Agreement;

     10.4. issuance of a notice of Lien, levy, assessment, injunction or attachment against a
material portion of any Borrower’s property, other than for Permitted Encumbrances, which is not
discharged, dismissed, stayed or lifted within fifteen (15) Business Days, provided that
the foregoing shall not constitute an Event of Default where such action or event is stayed or an
adequate bond has been posted pending a good faith contesting thereof by Borrowers;

     10.5. except as otherwise provided for in Sections 10.1 and 10.3, failure or neglect of any
Borrower to perform, keep or observe any term, provision, condition, covenant herein contained, or
contained in any other agreement or arrangement, now or hereafter entered into between any Borrower
and Agent or any Lender, except for a failure or neglect of any Borrower to perform, keep or
observe any term, provision, condition or covenant, contained in Sections 4.6, 4.7, 4.9, 6.4 or 9.6
hereof which is cured within thirty (30) days in the case of Sections 4.6, 4.7, 4.9 and 6.4 and
within fifteen (15) days in the case of Section 9.6 from the occurrence of such failure or neglect;

     10.6. any judgment or judgments are rendered or judgment liens filed against any Borrower for
an aggregate amount in excess of $5,000,000 which within sixty (60) days of such rendering or
filing is not either satisfied, stayed or discharged of record;

     10.7. any Borrower shall (i) apply for, consent to or suffer the appointment of, or the taking
of possession by, a receiver, custodian, trustee, liquidator or similar fiduciary of itself or of
all or a substantial part of its property, (ii) make a general assignment for the benefit of
creditors, (iii) commence a voluntary case under any state or federal bankruptcy laws (as now or
hereafter in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a petition seeking to
take advantage of any other law providing for the relief of debtors, (vi) acquiesce to, or fail to
have

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dismissed, within sixty (60) days, any petition filed against it in any involuntary case under
such bankruptcy laws, or (vii) take any action for the purpose of effecting any of the foregoing;

     10.8. any Borrower shall admit in writing its inability, or be generally unable, to pay its
debts as they become due or cease operations of its present business;

     10.9. any Borrower, or any Guarantor, whether now existing or arising after the date hereof,
shall (i) apply for, consent to or suffer the appointment of, or the taking of possession by, a
receiver, custodian, trustee, liquidator or similar fiduciary of itself or of all or a substantial
part of its property, (ii) admit in writing its inability, or be generally unable, to pay its debts
as they become due or cease operations of its present business, (iii) make a general assignment for
the benefit of creditors, (iv) commence a voluntary case under any state or federal bankruptcy laws
(as now or hereafter in effect), (v) be adjudicated a bankrupt or insolvent, (vi) file a petition
seeking to take advantage of any other law providing for the relief of debtors, (vii) acquiesce to,
or fail to have dismissed, within sixty (60) days, any petition filed against it in any involuntary
case under such bankruptcy laws, or (viii) take any action for the purpose of effecting any of
the foregoing;

     10.10. [Reserved];

     10.11. any First-Priority Lien created hereunder or provided for hereby or under any of the
Other Documents for any reason ceases to be or is not a valid and perfected Lien (subject only to
the Permitted Encumbrances (if any) that are specifically entitled pursuant to applicable law, or
specifically acknowledged in writing by Agent, to have priority over Agent’s Liens);

     10.12. a default or event of default has occurred and been declared under the Shell BDF
Agreements, the Chevron BDF Agreements, the JPM Credit Agreement or any documentation relating
thereto or any document relating to any other Indebtedness of any of the Borrowers in the aggregate
principal amount of $5,000,000 or greater which occurrence shall not have been cured or waived
within any applicable grace period;

     10.13. a default of the obligations of any Borrower under any other agreement to which it is a
party shall occur which could reasonably be expected to result in a Material Adverse Effect, which
default is not cured within any applicable grace period; or, with respect to the Affiliation
Agreements, a default arises (which default is not cured within any grace period, if applicable), a
notice of termination is given that is not rescinded or a termination occurs with respect thereto;

     10.14. termination or breach of any Guaranty or Guaranty Security Agreement or similar
agreement executed and delivered to Agent in connection with the Obligations of any Borrower, or if
any Guarantor attempts to terminate, challenges the validity of, or its liability under (except by
satisfaction of the obligations thereunder), any such Guaranty or Guaranty Security Agreement or
similar agreement;

     10.15. a Change of Control shall occur;

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     10.16. any material provision of this Agreement shall, for any reason, cease to be valid and
binding on any Borrower (except by satisfaction of the obligations hereunder), or any Borrower
shall so claim in writing to Agent;

     10.17. (i) any Governmental Body shall (A) revoke, terminate, suspend or materially adversely
modify any license, permit, patent trademark or tradename of any Borrower that is material to the
Borrowers’ business, or (B) commence proceedings to suspend, revoke, terminate or materially
adversely modify any such license, permit, trademark, tradename or patent and such proceedings
shall not be dismissed or discharged within sixty (60) days, or (C) schedule or conduct a hearing
on the renewal of any license, permit, trademark, tradename or patent necessary for the
continuation of any material part of Borrower’s business and there is a determination therefrom
requiring the termination, revocation, suspension or material, adverse modification of such
license, permit, trademark, tradename or patent; (ii) any agreement which is necessary or material
to the operation of any Borrower’s business shall be revoked or terminated and not replaced by a
reasonable substitute reasonably acceptable to Agent within thirty (30)
days after the date of such revocation or termination, and such revocation or termination and
non-replacement thereof could reasonably be expected to have a Material Adverse Effect;

     10.18. any material portion of the Collateral shall be seized or taken by a Governmental Body,
or any Borrower or the title and rights of any Loan Party shall have become the subject matter of
litigation which, in the opinion of Agent, upon final determination, could reasonably be expected
to result in an impairment or loss of the security provided by this Agreement or the Other
Documents; or

     10.19. an event or condition specified in Sections 7.16 hereof shall occur or exist with
respect to any Plan and, as a result of such event or condition, together with all other such
events or conditions, any Borrower or any member of the Controlled Group shall incur, or in the
opinion of Agent be reasonably likely to incur, a liability to a Plan or the PBGC (or both) which,
in the reasonable judgment of Agent, would have a Material Adverse Effect.

XI LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT.

     11.1. Rights and Remedies. Upon the occurrence of (i) an Event of Default pursuant to
Section 10.7 all Obligations shall be immediately due and payable and this Agreement and the
obligation of Lenders to make Advances shall be deemed terminated; and, (ii) any of the other
Events of Default and at any time thereafter (such default not having previously been cured), at
the option of Required Lenders all Obligations shall be immediately due and payable and Lenders
shall have the right to terminate this Agreement and to terminate the obligation of Lenders to make
Advances and (iii) a filing of a petition against any Borrower in any involuntary case under any
state or federal bankruptcy laws, the obligation of Lenders to make Advances hereunder shall be
terminated other than as may be required by an appropriate order of the bankruptcy court having
jurisdiction over any Borrower. Upon the occurrence of any Event of Default, Agent shall have the
right to exercise any and all other rights and remedies provided for herein, under the Uniform
Commercial Code and at law or equity generally, including, without limitation, the right to
foreclose the security interests granted herein and to realize upon any First-Priority Collateral
by any available judicial procedure and/or to take possession of and sell

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any or all of the
First-Priority Collateral with or without judicial process. Agent may enter any of any Borrower’s
premises or other premises without legal process and without incurring liability to any Borrower
therefor, and Agent may thereupon, or at any time thereafter, in its discretion without notice or
demand, take the First-Priority Collateral and remove the same to such place as Agent may deem
advisable and Agent may require Borrowers to make the First-Priority Collateral available to Agent
at a convenient place, provided that in connection with the foregoing Agent does not breach the
peace and otherwise conducts itself in accordance with applicable law. With or without having the
First-Priority Collateral at the time or place of sale, Agent may sell the First-Priority
Collateral, or any part thereof, at public or private sale, at any time or place, in one or more
sales, at such price or prices, and upon such terms, either for cash, credit or future delivery, as
Agent may elect. Except as to that part of the First-Priority Collateral which is perishable or
threatens to decline speedily in value or is of a type customarily sold on a recognized
market, Agent shall give Borrowers reasonable notification of such sale or sales, it being agreed
that in all events written notice mailed to Borrowers at least ten (10) days prior to such sale or
sales is reasonable notification. At any public sale Agent or any Lender may bid for and become
the purchaser, and Agent, any Lender or any other purchaser at any such sale thereafter shall hold
the First-Priority Collateral sold absolutely free from any claim or right of whatsoever kind,
including any equity of redemption and such right and equity are hereby expressly waived and
released by each Borrower. In connection with the exercise of the foregoing remedies, Agent is
granted permission to use all of each Borrower’s trademarks, trade styles, trade names, patents,
patent applications, licenses, franchises and other proprietary rights which are used in connection
with (a) Inventory for the purpose of disposing of such Inventory and (b) Equipment for the purpose
of completing the manufacture of unfinished goods. The proceeds realized from the sale of any
First-Priority Collateral shall be applied as follows: first, to the reasonable costs, expenses and
attorneys’ fees and expenses incurred by Agent for collection and for acquisition, completion,
protection, removal, storage, sale and delivery of the First-Priority Collateral; second, to
interest due upon any of the Obligations and any fees payable under this Agreement; and, third, to
the principal of the Obligations. If any deficiency shall arise, Borrowers shall remain liable to
Agent and Lenders therefor.

     11.2. Agent’s Discretion. Agent shall have the right in its sole discretion to
determine which rights, Liens, security interests or remedies Agent may at any time pursue,
relinquish, subordinate, or modify or to take any other action with respect thereto and such
determination will not in any way modify or affect any of Agent’s or Lenders’ rights hereunder.

     11.3. Setoff. In addition to any other rights which Agent or any Lender may have
under applicable law, upon the occurrence of an Event of Default hereunder and the acceleration of
the Obligations, Agent and such Lender shall have a right to apply any Borrower’s property held by
Agent and such Lender to reduce the Obligations that are due and owing.

     11.4. Rights and Remedies not Exclusive. The enumeration of the foregoing rights and
remedies is not intended to be exhaustive and the exercise of any right or remedy shall not
preclude the exercise of any other right or remedies provided for herein or otherwise provided by
law, all of which shall be cumulative and not alternative.

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     11.5. Allocation of Payments After Event of Default. Notwithstanding any other
provisions of this Agreement to the contrary, after the occurrence and during the continuance of an
Event of Default, all amounts collected or received by the Agent on account of the Obligations or
any other amounts outstanding under any of the Other Documents or in respect of the Collateral may,
at Agent’s discretion as to the timing of any payment or delivery, be paid over or delivered as
follows:

     FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including without
limitation, reasonable attorneys’ fees) of the Agent in connection with enforcing the rights of the
Lenders under this Agreement and the Other Documents and any protective advances made by the Agent
with respect to the Collateral under or pursuant to the terms of this Document;

     SECOND, to payment of any fees owed to the Agent;

     THIRD, to the payment of all reasonable out-of-pocket costs and expenses (including without
limitation, reasonable attorneys’ fees) of each of the Lenders in connection with enforcing its
rights under this Agreement and the Other Documents or otherwise with respect to the Obligations
owing to such Lender;

     FOURTH, to the payment of all of the Obligations (other than any Hedging Agreement Obligations
or Cash Management Obligations) consisting of accrued fees and interest;

     FIFTH, to the payment of the outstanding principal amount of the Obligations (including the
payment of cash collateralization of the outstanding Letters of Credit);

     SIXTH, to all other Obligations (including any Hedging Agreement Obligations and Cash
Management Obligations) and other obligations which shall have become due and payable under the
Other Documents or otherwise and not repaid pursuant to clauses “FIRST” through “FIFTH” above;

     SEVENTH, to the payment of the surplus, if any, to whoever may be lawfully entitled to receive
such surplus.

     In carrying out the foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (ii) each of the
Lenders shall receive (so long as it is not a Defaulting Lender) an amount equal to its pro rata
share (based on the proportion that the then outstanding Advances held by such Lender bears to the
aggregate then outstanding Advances) of amounts available to be applied pursuant to clauses THIRD,
FOURTH, FIFTH and SIXTH above; and (iii) to the extent that any amounts available for distribution
pursuant to clause FIFTH above are attributable to the issued but undrawn amount of outstanding
Letters of Credit, such amounts shall be held by the Agent in a cash collateral account and applied
(A) first, to reimburse the Issuer from time to time for any drawings under such Letters of Credit
and (B) then, following the expiration of all Letters of Credit, to all other obligations of the
types described in clauses FIFTH and SIXTH above in the manner provided in this Section 11.5.

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     11.6. Cure Right. Notwithstanding anything to the contrary contained in this Section 11,
in the event that the Borrowers would otherwise fail to comply with the requirements of Sections
6.5 or 6.6 (each, a “Financial Performance Covenant”) at the end of any fiscal quarter or
fiscal year, Parent shall have the right, exercisable at any time during the term of this Agreement
within ten days after the
delivery of any financial statements pursuant to Sections 9.7 and 9.8 (provided that such right may
not be exercised with respect to more than two consecutive fiscal quarters or more than four fiscal
quarters during any consecutive eight fiscal quarter period), to issue Permitted Cure Securities
(as defined below) for cash or otherwise receive cash contributions to the capital of Parent, and
to contribute any such cash to the capital of the Borrowers (the “Cure Right”), and upon
the receipt by the Borrowers of such cash (the “Cure Amount”) pursuant to the exercise by
Parent of such Cure Right, the Financial Performance Covenants shall be recalculated giving effect
to the following pro forma adjustments:

          (a) Consolidated EBITDA shall be increased solely for the purpose of measuring the Financial
Performance Covenants and not for any other purpose under this Agreement, by an amount equal to the
Cure Amount (with the Cure Amount not to exceed the amount necessary for the Borrowers to be in
compliance with the requirements of all Financial Performance Covenants); and

          (b) if, after giving effect to the foregoing recalculations, the Borrowers shall then be in
compliance with the requirements of all Financial Performance Covenants, the Borrowers shall be
deemed to have satisfied the requirements of the Financial Performance Covenants as of the relevant
date of determination with the same effect as though there had been no failure to comply therewith
at such date, and the applicable breach or default of any such Financial Performance Covenant that
would have otherwise occurred on such date but for the application of the foregoing recalculations
shall be deemed not to have occurred.

     As used in this Section 11, the term “Permitted Cure Securities” shall mean an equity security
of Parent having no mandatory redemption, repurchase, repayment or similar requirements and upon
which all dividends or distributions may be payable in additional shares of such equity security.

XII WAIVERS AND JUDICIAL PROCEEDINGS.

     12.1. Waiver of Notice. Each Borrower hereby waives notice of non-payment of any of
the Receivables, demand, presentment, protest and notice thereof with respect to any and all
instruments, notice of acceptance hereof, notice of loans or advances made, credit extended,
Collateral received or delivered, or any other action taken in reliance hereon, and all other
demands and notices of any description, except such as are expressly provided for herein.

     12.2. Delay. No delay or omission on Agent’s or any Lender’s part in exercising any
right, remedy or option shall operate as a waiver of such or any other right, remedy or option or
of any default.

     12.3. Jury Waiver. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR

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CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED
WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HEREBY
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE WAIVER
OF THEIR RIGHT TO TRIAL BY JURY.

XIII EFFECTIVE DATE AND TERMINATION.

     13.1. Term. This Agreement, which shall inure to the benefit of and shall be binding
upon the respective successors and permitted assigns of each Borrower, Agent and each Lender, shall
become effective on the date hereof and shall continue in full force and effect until September 18,
2011 (the “Term”) unless sooner terminated as herein provided. Borrowers may terminate
this Agreement at any time upon the final, unconditional payment in full in cash or other
immediately available funds of the Obligations (other than the Inchoate Indemnities).

     13.2. Termination. The termination of the Agreement shall not affect any Borrower’s,
Agent’s or any Lender’s rights, or any of the Obligations having their inception prior to the
effective date of such termination, and the provisions hereof shall continue to be fully operative
until all transactions entered into, rights or interests created or Obligations (other than the
Inchoate Indemnities) have been fully disposed of, concluded or liquidated. The security
interests, Liens and rights granted to Agent and Lenders hereunder and the financing statements
filed hereunder shall continue in full force and effect, notwithstanding the termination of this
Agreement or the fact that Borrowers’ Account may from time to time be temporarily in a zero or
credit position, until all of the Obligations (other than the Inchoate Indemnities) of each
Borrower have been paid in full after the termination of this Agreement or each Borrower has
furnished Agent and Lenders with an indemnification satisfactory to Agent and Lenders with respect
thereto. Accordingly, each Borrower waives any rights which it may have under the Uniform
Commercial Code to demand the filing of termination statements with respect to the Collateral, and
Agent shall not be required to send such termination statements to each Borrower, or to file
them with any filing office, unless and until this Agreement shall have been terminated in
accordance with its terms and all Obligations (other than the Inchoate Indemnities) paid in full in
immediately available funds and at such time Agent agrees to authorize forthwith the filing of all
appropriate termination documentation and instruments, the preparation and handling of which shall
be at the expense of the Borrowers. Subject to the survival of the Inchoate Indemnities, all
representations, warranties, covenants, waivers and agreements contained herein shall survive
termination hereof until all Obligations are paid in full in cash or other immediately available
funds (other than the Inchoate Indemnities).

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XIV REGARDING AGENT.

     14.1. Appointment. Each Lender hereby designates PNC to act as Agent for such Lender
under this Agreement and the Other Documents. Each Lender hereby irrevocably authorizes Agent to
take such action on its behalf under the provisions of this Agreement and the Other Documents and
to exercise such powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of Agent by the terms hereof and thereof and such other powers as are
reasonably incidental thereto and Agent shall hold all Collateral, payments of principal and
interest, fees (except the fees set forth in the side letter between Agent and Borrowers regarding
fees payable to Agent), charges and collections (without giving effect to any collection days)
received pursuant to this Agreement, for the ratable benefit of Lenders. Agent may perform any of
its duties hereunder by or through its agents or employees. As to any matters not expressly
provided for by this Agreement (including without limitation, collection of the Revolving Credit
Note) Agent shall not be required to exercise any discretion or take any action, but shall be
required to act or to refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Required Lenders, and such instructions shall be binding;
provided, however, that Agent shall not be required to take any action which exposes Agent to
liability or which is contrary to this Agreement or the Other Documents or applicable law unless
Agent is furnished with an indemnification reasonably satisfactory to Agent with respect thereto.

     14.2. Nature of Duties. Agent shall have no duties or responsibilities except those
expressly set forth in this Agreement and the Other Documents. As between Agent and Lenders,
neither Agent nor any of its officers, directors, employees or agents shall be (i) liable for any
action taken or omitted by them as such hereunder or in connection herewith, unless caused by their
gross (not mere) negligence or willful misconduct, or (ii) responsible in any manner for any
recitals, statements, representations or warranties made by any Borrower or any officer thereof
contained in this Agreement, or in any of the Other Documents or in any certificate, report,
statement or other document referred to or provided for in, or received by Agent under or in
connection with, this Agreement or any of the Other Documents or for the value, validity,
effectiveness, genuineness, due execution, enforceability or sufficiency of this Agreement, or any
of the Other Documents or
for any failure of any Borrower to perform its obligations hereunder. Agent shall not be
under any obligation to any Lender to ascertain or to inquire as to the observance or performance
of any of the agreements contained in, or conditions of, this Agreement or any of the Other
Documents, or to inspect the properties, books or records of any Borrower. The duties of Agent as
respects the Advances to Borrowers shall be mechanical and administrative in nature; Agent shall
not have by reason of this Agreement a fiduciary relationship in respect of any Lender; and nothing
in this Agreement, expressed or implied, is intended to or shall be so construed as to impose upon
Agent any obligations in respect of this Agreement except as expressly set forth herein.

     14.3. Lack of Reliance on Agent and Resignation. Independently and without reliance
upon Agent or any other Lender, each Lender has made and shall continue to make (i) its own
independent investigation of the financial condition and affairs of each Borrower in connection
with the making and the continuance of the Advances hereunder and the taking or not taking of any
action in connection herewith, and (ii) its own appraisal of the creditworthiness of each

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Borrower.
Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide
any Lender with any credit or other information with respect thereto, whether coming into its
possession before making of the Advances or at any time or times thereafter except as shall be
provided by any Borrower pursuant to the terms hereof. Agent shall not be responsible to any
Lender for any recitals, statements, information, representations or warranties herein or in any
agreement, document, certificate or a statement delivered in connection with or for the execution,
effectiveness, genuineness, validity, enforceability, collectibility or sufficiency of this
Agreement or any Other Document, or of the financial condition of any Borrower, or be required to
make any inquiry concerning either the performance or observance of any of the terms, provisions or
conditions of this Agreement, the Revolving Credit Note, the Other Documents or the financial
condition of any Borrower, or the existence of any Event of Default or any Default. Agent may
resign on sixty (60) days’ written notice to each of Lenders and Borrowing Agent and upon such
resignation, the Required Lenders will promptly designate a successor Agent reasonably satisfactory
to Borrowers.

     Any such successor Agent shall succeed to the rights, powers and duties of Agent, and the term
“Agent” shall mean such successor agent effective upon its appointment, and the former Agent’s
rights, powers and duties as Agent shall be terminated, without any other or further act or deed on
the part of such former Agent. After any Agent’s resignation as Agent, the provisions of this
Article XIV shall inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under this Agreement.

     14.4. Certain Rights of Agent. If Agent shall request instructions from Lenders with
respect to any act or action (including failure to act) in connection with this Agreement or any
Other Document, Agent shall be entitled to refrain from such act or taking such action unless and
until Agent shall have received instructions from the Required Lenders; and Agent shall not incur
liability to any
Person by reason of so refraining. Without limiting the foregoing, Lenders shall not have any
right of action whatsoever against Agent as a result of its acting or refraining from acting
hereunder in accordance with the instructions of the Required Lenders.

     14.5. Reliance. Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, statement, certificate, telex, teletype or
telecopier message, cablegram, order or other document or telephone message believed by it to be
genuine and correct and to have been signed, sent or made by the proper person or entity, and, with
respect to all legal matters pertaining to this Agreement and the Other Documents and its duties
hereunder, upon advice of counsel selected by it. Agent may employ agents and attorneys-in-fact
and shall not be liable for the default or misconduct of any such agents or attorneys-in-fact
selected by Agent with reasonable care.

     14.6. Notice of Default. Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder or under the Other Documents, unless Agent
has received notice from a Lender or a Borrower referring to this Agreement or the Other Documents,
describing such Default or Event of Default and stating that such notice is a “notice of default”.
In the event that Agent receives such a notice, Agent shall give notice thereof to Lenders. Agent
shall take such action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders; provided, that, unless and until Agent shall have

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received such
directions, 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 in the best
interests of Lenders.

     14.7. Indemnification. To the extent Agent is not reimbursed and indemnified by
Borrowers, each Lender will reimburse and indemnify Agent in proportion to its respective portion
of the Advances (or, if no Advances are outstanding, according to its Commitment Percentage), from
and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on,
incurred by or asserted against Agent in performing its duties hereunder, or in any way relating to
or arising out of this Agreement or any Other Document; provided that, Lenders shall not be liable
for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from Agent’s gross (not mere) negligence or
willful misconduct.

     14.8. Agent in its Individual Capacity. With respect to the obligation of Agent to
lend under this Agreement, the Advances made by it shall have the same rights and powers hereunder
as any other Lender and as if it were not performing the duties as Agent specified herein; and the
term “Lender” or any similar term shall, unless the context clearly otherwise indicates, include
Agent in its individual capacity as a
Lender. Agent may engage in business with any Borrower as if it were not performing the
duties specified herein, and may accept fees and other consideration from any Borrower for services
in connection with this Agreement or otherwise without having to account for the same to Lenders.

     14.9. Delivery of Documents. To the extent Agent receives financial statements from
any Borrower as required under Sections 9.7, 9.8, 9.9, 9.12 and 9.13 hereof, and with respect to
any borrowing base certificate delivered in connection herewith, Agent will promptly furnish such
documents and information to Lenders.

     14.10. Borrowers’ Undertaking to Agent. Without prejudice to their respective
obligations to Lenders under the other provisions of this Agreement (including without limitation
under Section 14.9 hereof) and the Other Documents, each Borrower hereby undertakes with Agent to
pay to Agent from time to time all amounts from time to time due and payable by it for the account
of Agent or Lenders or any of them pursuant to this Agreement or any of the Other Documents to the
extent not already paid. Further, any payment made pursuant to any such demand shall pro tanto
satisfy the relevant Borrower’s obligations to make payments for the account of applicable Lender
or all Lenders, as appropriate.

     14.11. No Reliance on Agent’s Customer Identification Program. Each Lender
acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or
assignees, may rely on the Agent to carry out such Lender’s, Affiliate’s, participant’s or
assignee’s customer identification program, or other obligations required or imposed under or
pursuant to the USA Patriot Act or the regulations thereunder, including the regulations contained
in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other
Anti-Terrorism Law, including any programs involving any of the following items relating to or in
connection with any of the Borrowers, its Affiliates or its agents, the Loan Documents or

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the
transactions hereunder or contemplated hereby: (1) any identity verification procedures, (2) any
record keeping, (3) comparisons with government lists, (4) customer notices or (5) other procedures
required under the CIP Regulations or any under other law.

     14.12. Other Agreements.

     (A) Each of the Lenders agrees that it shall not, without the express consent of Agent, and
that it shall, to the extent it is lawfully entitled to do so, upon the request of Agent, set off
against the Obligations, any amounts owing by such Lender to Borrowers or any deposit accounts of
Borrowers now or hereafter maintained with such Lender. Each of the Lenders further agrees that it
shall not, unless specifically requested to do so by Agent, take or cause to be taken any action,
including, the commencement of any legal or equitable proceedings, to foreclose any Lien on, or
otherwise enforce any security interest in, any of the Collateral the
purpose of which is, or could be, to give such Lender any preference or priority against the
other Lenders with respect to the Collateral.

     (B) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or
otherwise, any proceeds of Collateral or any payments with respect to the Obligations arising
under, or relating to, this Agreement or the other Loan Documents, except for any such proceeds or
payments received by such Lender from Agent pursuant to the terms of this Agreement, or (ii)
payments from Agent in excess of such Lender’s ratable portion of all such distributions by Agent,
such Lender promptly shall (1) turn the same over to Agent, in kind, and with such endorsements as
may be required to negotiate the same to Agent, or in immediately available funds, as applicable,
for the account of all of the Lenders and for application to the Obligations in accordance with the
applicable provisions of this Agreement, or (2) purchase, without recourse or warranty, an
undivided interest and participation in the Obligations owed to the other Lenders so that such
excess payment received shall be applied ratably as among the Lenders in accordance with their Pro
Rata Shares; provided, however, that if all or part of such excess payment received by the
purchasing party is thereafter recovered from it, those purchases of participations shall be
rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid
therefor shall be returned to such purchasing party, but without interest except to the extent that
such purchasing party is required to pay interest in connection with the recovery of the excess
payment.

XV BORROWING AGENCY.

     15.1. Borrowing Agency Provisions.

          (a) Each Borrower hereby irrevocably designates Borrowing Agent to be its attorney and agent
and in such capacity to borrow, sign and endorse notes, and execute and deliver all instruments,
documents, writings and further assurances now or hereafter required hereunder, on behalf of such
Borrower or Borrowers, and hereby authorizes Agent to pay over or credit all loan proceeds
hereunder in accordance with the request of Borrowing Agent.

          (b) The handling of this credit facility as a co-borrowing facility with a borrowing agent in
the manner set forth in this Agreement is solely as an accommodation to

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Borrowers and at their
request. Neither Agent nor any Lender shall incur liability to Borrowers as a result thereof. To
induce Agent and Lenders to do so and in consideration thereof, each Borrower hereby indemnifies
Agent and each Lender and holds Agent and each Lender harmless from and against any and all
liabilities, expenses, losses, damages and claims of damage or injury asserted against Agent or any
Lender by any Person arising from or incurred by reason of the handling of the financing
arrangements of Borrowers by the Borrowing Agent as provided herein, reliance by Agent or any
Lender on any request or instruction from Borrowing Agent or any other action taken by Agent or any
Lender with respect to this Section 15.1 except due to willful misconduct or gross (not mere)
negligence by the indemnified party.

          (c) All Obligations shall be joint and several, and each Borrower shall make payment upon the
maturity of the Obligations by acceleration or otherwise, and such obligation and liability on the
part of each Borrower shall in no way be affected by any extensions, renewals and forbearance
granted to Agent or any Lender to any Borrower, failure of Agent or any Lender to give any Borrower
notice of borrowing or any other notice, any failure of Agent or any Lender to pursue or preserve
its rights against any Borrower, the release by Agent or any Lender of any Collateral now or
thereafter acquired from any Borrower, and such agreement by each Borrower to pay upon any notice
issued pursuant thereto is unconditional and unaffected by prior recourse by Agent or any Lender to
the other Borrowers or any Collateral for such Borrower’s Obligations or the lack thereof. Each
Borrower waives all suretyship defenses.

     15.2. Waiver of Subrogation. Each Borrower expressly waives any and all rights of
subrogation, reimbursement, indemnity, exoneration, contribution of any other claim which such
Borrower may now or hereafter have against the other Borrowers or other Person directly or
contingently liable for the Obligations hereunder, or against or with respect to the other
Borrowers’ property (including, without limitation, any property which is Collateral for the
Obligations), arising from the existence or performance of this Agreement, until termination of
this Agreement and repayment in full of the Obligations in cash or other immediately available
funds (other than the Inchoate Indemnities).

XVI MISCELLANEOUS.

     16.1. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applied to contracts to be performed wholly within the State
of New York. Any judicial proceeding brought by or against any Borrower with respect to any of the
Obligations, this Agreement or any related agreement may be brought in any court of competent
jurisdiction in the in the State of New York, United States of America (and subject further to the
venue restriction noted at the end of this section), and, by execution and delivery of this
Agreement, each Borrower accepts for itself and in connection with its properties, generally and
unconditionally, the non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to
be bound by any judgment rendered thereby in connection with this Agreement. Each Borrower hereby
waives personal service of any and all process upon it and consents that all such service of
process may be made by registered mail (return receipt requested) directed to Borrowing Agent at
its address set forth in Section 16.6 and service so made shall be deemed completed five (5) days
after the same shall have been so deposited in the mails of the United States of America, or, at
the Agent’s and/or any Lender’s option, by service

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upon Borrowing Agent which each Borrower
irrevocably appoints as such Borrower’s Agent for the purpose of accepting service within the State
of New York. Nothing herein shall affect the right to serve process in any manner permitted by law
or shall limit the right of Agent or any Lender to bring proceedings against any Borrower in the
courts of any other jurisdiction. Each Borrower waives any
objection to jurisdiction and venue of any action instituted hereunder and shall not assert
any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Any
judicial proceeding by any Borrower against Agent or any Lender involving, directly or indirectly,
any matter or claim in any way arising out of, related to or connected with this Agreement or any
related agreement, shall be brought only in a federal or state court located in the County of New
York, State of New York.

     16.2. Entire Understanding. (a) This Agreement and the documents executed
concurrently herewith contain the entire understanding between each Borrower, Agent and each Lender
and supersedes all prior agreements and understandings, if any, relating to the subject matter
hereof. Any promises, representations, warranties or guarantees not herein contained and
hereinafter made shall have no force and effect unless in writing, signed by each Borrower’s,
Agent’s and each Lender’s respective officers. Neither this Agreement nor any portion or
provisions hereof may be changed, modified, amended, waived, supplemented, discharged, cancelled or
terminated orally or by any course of dealing, or in any manner other than by an agreement in
writing, signed by the party to be charged. Each Borrower acknowledges that it has been advised by
counsel in connection with the execution of this Agreement and Other Documents and is not relying
upon oral representations or statements inconsistent with the terms and provisions of this
Agreement.

          (b) The Required Lenders, Agent with the consent in writing of the Required Lenders, and
Borrowers may, subject to the provisions of this Section 16.2 (b), from time to time enter into
written supplemental agreements to this Agreement or the Other Documents executed by Borrowers, for
the purpose of adding or deleting any provisions or otherwise changing, varying or waiving in any
manner the rights of Lenders, Agent or Borrowers thereunder or the conditions, provisions or terms
thereof of waiving any Event of Default thereunder, but only to the extent specified in such
written agreements; provided, however, that no such supplemental agreement shall,
without the consent of all Lenders (together with the written concurrence of the Borrowers for
those agreements to which they are parties):

               (i) increase the Commitment Percentage or maximum dollar commitment of any Lender.

               (ii) extend the maturity of any Revolving Credit Note or the due date for any amount
payable hereunder, or decrease the rate of interest or reduce any fee payable by Borrowers
to Lenders pursuant to this Agreement.

               (iii) alter the definition of the term Required Lenders or alter, amend or modify this
Section 16.2(b).

               (iv) release any Collateral during any calendar year (other than actions consisting of
sales, transfers and other dispositions of Collateral specifically permitted

102

 

under this
Agreement) having an aggregate value in excess of $1,000,000.

               (v) change the rights and duties of Agent.

               (vi) permit any Revolving Advance to be made if after giving effect thereto the total
of Revolving Advances outstanding hereunder would exceed the Formula Amount for more than
thirty (30) consecutive Business Days, exceed one hundred and five percent (105%) of the
Formula Amount or exceed total Commitment Percentages.

               (vii) increase the Advance Rates above the Advance Rates in effect on the Closing Date.

               (viii) release any Guarantor.

Any such supplemental agreement shall apply equally to each Lender and shall be binding upon
Borrowers, Lenders and Agent and all future holders of the Obligations. In the case of any waiver,
Borrowers, Agent and Lenders shall be restored to their former positions and rights, and any Event
of Default waived shall be deemed to be cured and not continuing, but no waiver of a specific Event
of Default shall extend to any subsequent Event of Default (whether or not the subsequent Event of
Default is the same as the Event of Default which was waived), or impair any right consequent on
such subsequent Event of Default.

     In the event that Agent requests the consent of a Lender pursuant to this Section 16.2 and
such consent is denied, then Agent may, at its option, require such Lender to assign its interest
in the Advances to PNC or to another Lender or to any other Person designated by the Agent (the
“Designated Lender”), for a price equal to the then outstanding principal amount thereof
plus accrued and unpaid interest and fees due such Lender, which interest and fees shall be paid
when collected from Borrowers. In the event Agent elects to require any Lender to assign its
interest to PNC or to the Designated Lender, Agent will so notify such Lender in writing within
forty five (45) days following such Lender’s denial, and such Lender will assign its interest to
PNC or the Designated Lender no later than five (5) days following receipt of such notice pursuant
to a Commitment Transfer Supplement executed by such Lender, PNC or the Designated Lender, as
appropriate, and Agent.

     Notwithstanding (a) the existence of a Default or an Event of Default, (b) that any of the
other applicable conditions precedent set forth in Section 8.2 hereof have not been satisfied or
(c) any other provision of this Loan Agreement, Agent may at its discretion and without the consent
of the Required Lenders, voluntarily permit the outstanding Revolving Advances at any time to
exceed an amount equal to the Formula Amount by up to one hundred and five percent (105%) of the
Formula Amount for up to thirty (30) consecutive Business Days. For purposes of the preceding
sentence, the discretion granted to Agent hereunder shall not preclude involuntary overadvances
that may result from time to time due to the fact that the Formula Amount was unintentionally
exceeded for any reason, including, but not limited to, Collateral previously deemed to be either
“Eligible Receivables” or “Eligible Inventory”, as applicable, becomes ineligible, collections of
Receivables applied to reduce outstanding Revolving Advances are

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thereafter returned for
insufficient funds or overadvances are made to protect or preserve the Collateral. In the event
Agent involuntarily permits the outstanding Revolving Advances to exceed the Formula Amount by more
than five percent (5%), Agent shall use its efforts to have Borrowers decrease such excess in as
expeditious a manner as is practicable under the
circumstances and not inconsistent with the reason for such excess. Revolving Advances made
after Agent has determined the existence of involuntary overadvances shall be deemed to be
involuntary overadvances and shall be decreased in accordance with the preceding sentence.

     In addition to (and not in substitution of) the discretionary Revolving Advances permitted
above in this Section 16.2, the Agent is hereby authorized by the Borrowers and the Lenders, from
time to time in the Agent’s sole discretion, (A) after the occurrence and during the continuation
of a Default or an Event of Default, or (b) at any time that any of the other applicable conditions
precedent set forth in Section 8.2 hereof have not been satisfied, to make Revolving Advances to
the Borrowers on behalf of the Lenders which the Agent, in its reasonable business judgment, deems
necessary or desirable (a) to preserve or protect the Collateral, or any portion thereof, (b) to
enhance the likelihood of, or maximize the amount of, repayment of the Advances and other
Obligations, or (iii) to pay any other amount chargeable to the Borrowers pursuant to the terms of
this Agreement; provided, that at any time after giving effect to any such
Revolving Advances the outstanding Revolving Advances do not exceed one hundred five percent (105%)
of the Formula Amount.

     16.3. Successors and Assigns; Participations; New Lenders.

          (a) This Agreement shall be binding upon and inure to the benefit of Borrowers, Agent, each
Lender, all future holders of the Obligations and their respective successors and assigns, except
that no Borrower may assign or transfer any of its rights or obligations under this Agreement
without the prior written consent of Agent and each Lender and no such assignment shall be made to
a Loan Party or the Sponsors and their respective Affiliates.

          (b) Each Borrower acknowledges that in the regular course of commercial banking business one
or more Lenders may at any time and from time to time sell participating interests in the Advances
to other financial institutions (each such transferee or purchaser of a participating interest, a
“Transferee”). Each Transferee may exercise all rights of payment (including without
limitation rights of set-off) with respect to the portion of such Advances held by it or other
Obligations payable hereunder as fully as if such Transferee were the direct holder thereof
provided that Borrowers shall not be required to pay to any Transferee more than the amount which
it would have been required to pay to Lender which granted an interest in its Advances or other
Obligations payable hereunder to such Transferee had such Lender retained such interest in the
Advances hereunder or other Obligations payable hereunder and in no event shall Borrowers be
required to pay any such amount arising from the same circumstances and with respect to the same
Advances or other Obligations payable hereunder to both such Lender and such Transferee. Each
Borrower hereby grants to any Transferee a continuing security interest in any deposits, moneys or
other property actually or constructively held by such Transferee as security for the Transferee’s
interest in the Advances.

104

 

          (c) Any Lender may with the consent of the Borrowers and the Agent, in each case which shall
not be unreasonably withheld or delayed, sell, assign or transfer all or any part
of its rights under this Agreement and the Other Documents to one or more additional banks or
financial institutions and one or more additional banks or financial institutions may commit to
make Advances hereunder (each a “Purchasing Lender”), in minimum amounts of not less than
$5,000,000, pursuant to a Commitment Transfer Supplement, executed by a Purchasing Lender, the
transferor Lender, and Agent and delivered to Agent for recording; provided that no consent of the
Borrowers shall be required for an assignment to a Lender, an affiliate of a Lender, or, if an
Event of Default has occurred and is continuing, any other Person. Upon such execution, delivery,
acceptance and recording, from and after the transfer effective date determined pursuant to such
Commitment Transfer Supplement, (i) Purchasing Lender thereunder shall be a party hereto and, to
the extent provided in such Commitment Transfer Supplement, have the rights and obligations of a
Lender thereunder with a Commitment Percentage as set forth therein, and (ii) the transferor Lender
thereunder shall, to the extent provided in such Commitment Transfer Supplement, be released from
its obligations under this Agreement, the Commitment Transfer Supplement creating a novation for
that purpose. Such Commitment Transfer Supplement shall be deemed to amend this Agreement to the
extent, and only to the extent, necessary to reflect the addition of such Purchasing Lender and the
resulting adjustment of the Commitment Percentages arising from the purchase by such Purchasing
Lender of all or a portion of the rights and obligations of such transferor Lender under this
Agreement and the Other Documents. Borrowers hereby consent to the addition of such Purchasing
Lender and the resulting adjustment of the Commitment Percentages arising from the purchase by such
Purchasing Lender of all or a portion of the rights and obligations of such transferor Lender under
this Agreement and the Other Documents. Borrowers shall execute and deliver such further documents
and do such further acts and things in order to effectuate the foregoing.

          (d) Agent shall maintain at its address a copy of each Commitment Transfer Supplement
delivered to it and a register (the “Register”) for the recordation of the names and
addresses of the Advances owing to each Lender from time to time. The entries in the Register
shall be conclusive, in the absence of manifest error, and Borrowers, Agent and Lenders may treat
each Person whose name is recorded in the Register as the owner of the Advance recorded therein for
the purposes of this Agreement. The Register shall be available for inspection by Borrowers or any
Lender at any reasonable time and from time to time upon reasonable prior notice. Agent shall
receive a fee in the amount of $3,500 payable by the applicable Purchasing Lender (and which is not
an obligation to be reimbursed by the Borrowers) upon the effective date of each transfer or
assignment to such Purchasing Lender.

          (e) Each Borrower authorizes each Lender to disclose to any Transferee or Purchasing Lender
and any prospective Transferee or Purchasing Lender any and all financial information in such
Lender’s possession concerning such Borrower which has been delivered to such Lender by or on
behalf of such Borrower pursuant to this Agreement or in connection with such Lender’s credit
evaluation of such Borrower.

     16.4. Application of Payments. Agent shall have the continuing and exclusive right to
apply or reverse and re-apply any payment and any and all proceeds of Collateral to any portion of
the Obligations. To the extent that any Borrower makes a payment or Agent or any Lender

105

 

receives
any payment or
proceeds of the Collateral for any Borrower’s benefit, which are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor
in possession, receiver, custodian or any other party under any bankruptcy law, common law or
equitable cause, then, to such extent, the Obligations or part thereof intended to be satisfied
shall be revived and continue as if such payment or proceeds had not been received by Agent or such
Lender.

     16.5. Indemnity. Each Borrower shall indemnify Agent, each Lender and each of their
respective officers, directors, Affiliates, employees and agents from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses
and disbursements of any kind or nature whatsoever (including, without limitation, fees and
disbursements of counsel) which may be imposed on, incurred by, or asserted against Agent or any
Lender in any litigation, proceeding or investigation instituted or conducted by any governmental
agency or instrumentality, or by or against any other Person, with respect to any aspect of, or any
transaction contemplated by, or any matter related to, this Agreement or the Other Documents,
whether or not Agent or any Lender is a party thereto, except to the extent that any of the
foregoing arises out of the willful misconduct or gross negligence of the party being indemnified
as determined by a final non-appealable order of a court of competent jurisdiction.

     16.6. Notice. Any notice or request hereunder may be given to Borrowing Agent or any
Borrower or to Agent or any Lender at their respective addresses set forth below or at such other
address as may hereafter be specified in a notice designated as a notice of change of address under
this Section. Any notice, request, demand, direction or other communication (for purposes of this
Section 16.6 only, a “Notice”) to be given to or made upon any party hereto under any
provision of this Loan Agreement shall be given or made by telephone or in writing (which includes
by means of electronic transmission (i.e., “e-mail”) or facsimile transmission or by setting forth
such Notice on a site on the World Wide Web (a “Website Posting”) if Notice of such Website
Posting (including the information necessary to access such site) has previously been delivered to
the applicable parties hereto by another means set forth in this Section 16.6) in accordance with
this Section 16.6. Any such Notice must be delivered to the applicable parties hereto at the
addresses and numbers set forth under their respective names on Section 16.6 hereof or in
accordance with any subsequent unrevoked Notice from any such party that is given in accordance
with this Section 16.6. Any Notice shall be effective:

          (a) In the case of hand-delivery, when delivered;

          (b) If given by mail, four Business Days after such Notice is deposited with the United States
Postal Service, with first-class postage prepaid, return receipt requested;

          (c) In the case of a telephonic Notice, when a party is contacted by telephone, if delivery of
such telephonic Notice is confirmed no later than the next Business Day by hand delivery, a
facsimile or electronic transmission, a Website Posting or an overnight courier
delivery of a confirmatory Notice (received at or before noon on such next Business Day),
provided that telephonic notice is to be given only to the person identified in the
addresses listed below or such other person as may hereafter be included in any change to any such
address listing;

106

 

          (d) In the case of a facsimile transmission, when sent to the applicable party’s facsimile
machine’s telephone number, if the party sending such Notice receives confirmation of the delivery
thereof from its own facsimile machine;

          (e) In the case of electronic transmission, when actually received;

          (f) In the case of a Website Posting, upon delivery of a Notice of such posting (including the
information necessary to access such site) by another means set forth in this Section 16.6; and

          (g) If given by any other means (including by overnight courier), when actually received.

     Any Lender giving a Notice to Borrowing Agent or any Borrower shall concurrently send a copy
thereof to the Agent, and the Agent shall promptly notify the other Lenders of its receipt of such
Notice.

	 	 	 	 	 	 	 
	 

	 	(A)
	 	If to Agent or PNC at:
	 	PNC Bank, National Association
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Two Tower Center Blvd.
	 

	 	 	 	 	 	East Brunswick, New Jersey 08816
	 

	 	 	 	 	 	Attention: Barry Gillman, Esq.
	 

	 	 	 	 	 	Telephone: 732.220.3136
	 

	 	 	 	 	 	Telecopier: 732.220.3687
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 	PNC Bank, National Association
	 

	 	 	 	 	 	c/o PNC Business Credit
	 

	 	 	 	 	 	2100 Ross Avenue, Suite 1850
	 

	 	 	 	 	 	Dallas, Texas 75201
	 

	 	 	 	 	 	Attention: Relationship Manager, SPI Petroleum
	 

	 	 	 	 	 	Telephone: 214-871-1218
	 

	 	 	 	 	 	Telecopier: 214-871-2015
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 	PNC Bank, National Association
	 

	 	 	 	 	 	PNC Agency Services
	 

	 	 	 	 	 	500 Firstside Center
	 

	 	 	 	 	 	Pittsburgh, Pennsylvania 15219
	 

	 	 	 	 	 	Attention: Lisa Pierce
	 

	 	 	 	 	 	Telephone: 412-762-6442
	 

	 	 	 	 	 	Telecopier: 412-762-8672

	 	 	 	 	 	 	 
	 	 	(B)	 	  If to a Lender other than Agent, as specified on the signature pages hereof.

	 	 	 	 	 	 	 
	 

	 	(C)
	 	If to Borrowing Agent
	 	 
	 

	 	 	 	or any Borrower, at:
	 	Simons Petroleum, LLC c/o Simons Petroleum, Inc.
	 

	 	 	 	 	 	NW 63rd Street, Suite 300 

107

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Oklahoma City, Oklahoma 73116
	 

	 	 	 	 	 	Attention: CFO
	 

	 	 	 	 	 	Telephone: 405-302-1502
	 

	 	 	 	 	 	Telecopier: 405-848-3508
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 	Kirkland & Ellis LLP
	 

	 	 	 	 	 	200 E. Randolph Drive 
	 

	 	 	 	 	 	Chicago, Illinois 60601
	 

	 	 	 	 	 	Attention: Richard W. Porter, P.C., Martin
	 

	 	 	 	 	 	DiLoreto,
Esq. and James C.

	 

	 	 	 	 	 	Anderson,
Esq.

	 

	 	 	 	 	 	Telephone: 312-861-2000
	 

	 	 	 	 	 	Telecopier: 312-861-2200
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 	Northwest Capital Appreciation, Inc.
	 

	 	 	 	 	 	One Union Square
	 

	 	 	 	 	 	600 University Street, Suite 1720 
	 

	 	 	 	 	 	Seattle, WA 98101
	 

	 	 	 	 	 	Telephone: (206) 689-5615
	 

	 	 	 	 	 	(206)
689-5614

	 

	 	 	 	 	 	Attention: E. Perot Bissell
	 

	 	 	 	 	 	Bradford N. Creswell
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	RBCP Energy Fund Investments, LP
	 

	 	 	 	 	 	c/o Cadent Energy Partners, LLC
	 

	 	 	 	 	 	287 Bowman Avenue, 4th Floor 
	 

	 	 	 	 	 	Purchase, NY 10577
	 

	 	 	 	 	 	Telephone: (914) 253-0404
	 

	 	 	 	 	 	Telecopy: (914) 253-0406
	 

	 	 	 	 	 	Attention: Bruce Rothstein
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Waud Capital Partners, L.P.
	 

	 	 	 	 	 	560 Oakwood Avenue, Suite 203 
	 

	 	 	 	 	 	Lake Forest, IL 60045
	 

	 	 	 	 	 	Telephone: (847) 604-9550
	 

	 	 	 	 	 	Telecopy: (847) 604-9554
	 

	 	 	 	 	 	Attention: Reeve B. Waud

     16.7. Survival. The obligations of Borrowers under Sections 2.2(f), 3.7, 3.8, 3.9, 4.19(h) and 16.5 and the
obligations of Lenders under Section 14.7 shall survive termination of this Agreement and the Other
Documents and payment in full of the Obligations.

     16.8. Severability. If any part of this Agreement is contrary to, prohibited by, or
deemed invalid under applicable laws or regulations, such provision shall be inapplicable and

108

 

deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not
be invalidated thereby and shall be given effect so far as possible.

     16.9. Expenses. All costs and expenses including, without limitation, reasonable
attorneys’ fees and disbursements incurred by Agent on its behalf or on behalf of Lenders (a) in
all efforts made to enforce payment of any Obligation or effect collection of any Collateral, or
(b) in connection with the entering into, modification, amendment, administration and enforcement
of this Agreement or any consents or waivers hereunder and all related agreements, documents and
instruments, or (c) in instituting, maintaining, preserving, enforcing and foreclosing on Agent’s
security interest in or Lien on any of the Collateral, whether through judicial proceedings or
otherwise, or (d) in defending or prosecuting any actions or proceedings arising out of or relating
to Agent’s or any Lender’s transactions with any Borrower, or (e) in connection with any advice
given to Agent or any Lender with respect to its rights and obligations under this Agreement and
all related agreements, may be charged to Borrowers’ Account and shall be part of the Obligations.

     16.10. Injunctive Relief. Each Borrower recognizes that, in the event any Borrower
fails to perform, observe or discharge any of its obligations or liabilities under this Agreement,
any remedy at law may prove to be inadequate relief to Lenders; therefore, Agent, if Agent so
requests, shall be entitled to temporary and permanent injunctive relief in any such case without
the necessity of proving that actual damages are not an adequate remedy.

     16.11. Consequential Damages. Neither Agent nor any Lender, nor any Borrower, nor any
agent or attorney for any of them, shall be liable to any Borrower, nor to Agent or any Lender, as
applicable, for consequential damages arising from any breach of contract, tort or other wrong
relating to the establishment, administration or collection of the Obligations.

     16.12. Captions. The captions at various places in this Agreement are intended for
convenience only and do not constitute and shall not be interpreted as part of this Agreement.

     16.13. Counterparts; Telecopied Signatures. This Agreement may be executed in any number of and by different parties hereto on separate
counterparts, all of which, when so executed, shall be deemed an original, but all such
counterparts shall constitute one and the same agreement. Any signature delivered by a party by
facsimile transmission shall be deemed to be an original signature hereto.

     16.14. Construction. The parties acknowledge that each party and its counsel have
reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the interpretation of this
Agreement or any amendments, schedules or exhibits thereto.

     16.15. Confidentiality; Sharing Information. (a) Agent, each Lender and each
Transferee shall hold confidential all non-public information obtained by Agent, such Lender or
such Transferee pursuant to the requirements of this Agreement in accordance with Agent’s, such
Lender’s and such Transferee’s customary procedures for handling confidential information of this
nature; provided, however, Agent, each Lender and each Transferee may disclose such

109

 

confidential
information (a) to its examiners, affiliates, outside auditors, counsel and other professional
advisors, (b) to Agent, any Lender or to any prospective Transferees and Purchasing Lenders, and
(c) as required or requested by any Governmental Body or representative thereof or pursuant to
legal process; provided, further that (i) unless specifically prohibited by applicable law or court
order, Agent, each Lender and each Transferee shall use its best efforts prior to disclosure
thereof, to notify the applicable Borrower of the applicable request for disclosure of such
non-public information (A) by a Governmental Body or representative thereof (other than any such
request in connection with an examination of the financial condition of a Lender or a Transferee by
such Governmental Body) or (B) pursuant to legal process and (ii) in no event shall Agent, any
Lender or any Transferee be obligated to return any materials furnished by any Borrower other than
those documents and instruments in possession of Agent or any Lender in order to perfect its Lien
on the Collateral once the Obligations have been paid in full in cash or other immediately
available funds and this Agreement has been terminated.

          (b) Each Borrower acknowledges that from time to time financial advisory, investment banking
and other services may be offered or provided to such Borrower or one or more of its Affiliates (in
connection with this Agreement or otherwise) by any Lender or by one or more Subsidiaries or
Affiliates of such Lender and each Borrower hereby authorizes each Lender to share any information
delivered to such Lender by such Borrower and its Subsidiaries pursuant to this Agreement, or in
connection with the decision of such Lender to enter into this Agreement, to any such Subsidiary or
Affiliate of such Lender, it being understood that any such Subsidiary or Affiliate of any Lender
receiving such information shall be bound by the provision of Section 16.15 as if it were a Lender
hereunder. Such authorization shall survive the repayment of the other Obligations and the
termination of the Loan Agreement.

          (c) Notwithstanding anything herein to the contrary, each party hereto (and each Affiliate and
person acting on behalf of any such party) agrees that each party (and each
employee, representative, and other agent of such party) may disclose to any and all persons,
without limitation of any kind, the tax treatment and tax structure of the transaction contemplated
by this Agreement and all materials of any kind (including opinions or other tax analyses) that are
provided to such party or such person relating to such tax treatment and tax structure, except to
the extent necessary to comply with any applicable federal and state securities laws. This
authorization is not intended to permit disclosure of any other information including (without
limitation) (i) any portion of materials to the extent not related to the tax treatment or tax
structure of the transaction, (ii) the identities of participants or potential participants in this
transaction (except to the extent such information is related to the tax treatment or tax structure
of the transaction), (iii) the existence or status of any negotiations, (iv) any pricing or
financial information (except to the extent such pricing or financial information is related to the
tax treatment or tax structure of the transaction), or (v) any other term or detail not relevant to
the tax treatment or the tax structure of the transaction.

     16.16. Publicity. Each Borrower and each Lender hereby authorizes Agent to make
appropriate announcements of the financial arrangement entered into among Borrowers, Agent and
Lenders, including, without limitation, announcements which are commonly known as tombstones, in
such publications and to such selected parties as Agent may deem appropriate in

110

 

consultation with,
and subject to the approval of, the Borrowing Agent prior to making any such announcement.

     16.17. Certification from Lenders and Participants. Each Lender or assignee or
participant of a Lender that is not incorporated under the Laws of the United States of America or
a state thereof (and is not excepted from the certification requirement contained in Section 313 of
the USA Patriot Act and the applicable regulations because it is both (i) an affiliate of a
depository institution or foreign bank that maintains a physical presence in the United states or
foreign county, and (ii) subject to supervision by a banking authority regulating such affiliated
depository institution or foreign bank) shall deliver to the Agent the certification, or, if
applicable, recertification, certifying that such Lender, assignee or participant, as applicable,
is not a “shell” and certifying to other matters as required by Section 313 of the USA Patriot Act
and the applicable regulations: (1) within 10 days after the Closing Date, and (2) as such other
times as are required under the USA Patriot Act.

     16.18. Tax Withholding Clause. Each Lender or assignee or participant of a Lender
that is not incorporated under the Laws of the United States of America or a state thereof (and,
upon the written request of the Agent, each other Lender or assignee or participant of a Lender)
agrees that it will deliver to each of the Borrower and the Agent two (2) duly completed
appropriate valid Withholding Certificates (as defined under §l.1441-1(c)(16) of the Income Tax
Regulations (“Regulations”)) certifying its status (i.e., U.S. or foreign person) and, if
appropriate, making a claim of reduced, or exemption from, U.S. withholding tax on the basis of an
income tax treaty or an exemption
provided by the Internal Revenue Code. The term “Withholding Certificate” means a
Form W-9; a Form W-8BEN; a Form W-8ECI; a Form W-8IMY and the related statements and certifications
as required under §l.1441-1(e)(3) of the Regulations; a statement described in §l.871-14(c)(2)(v)
of the Regulations; or any other certificates under the Code or Regulations that certify or
establish the status of a payee or beneficial owner as a U.S. or foreign person. Each Lender,
assignee or participant required to deliver to Borrower and the Agent a valid Withholding
Certificate pursuant to the preceding sentence shall deliver such valid Withholding Certificate as
follows: (A) each Lender which is a party hereto on the Closing Date shall deliver such valid
Withholding Certificate at least five (5) Business Days prior to the first date on which any
interest or fees are payable by Borrower hereunder for the account of such Bank; (B) each assignee
or participant shall deliver such valid Withholding Certificate at least five (5) Business Days
before the effective date of such assignment or participation (unless the Agent in its sole
discretion shall permit such assignee or participant to deliver such Withholding Certificate less
than five (5) Business Days before such date in which case it shall be due on the date specified by
the Agent). Each Lender, assignee or participant which so delivers a valid Withholding Certificate
further undertakes to deliver to each of the Borrower and the Agent two (2) additional copies of
such Withholding Certificate (or a successor form) on or before the date that such Withholding
Certificate expires or becomes obsolete or after the occurrence of any event requiring a change in
the most recent Withholding Certificate so delivered by it, and such amendments thereto or
extensions or renewals thereof as may be reasonably requested by Borrower or the Agent.
Notwithstanding the submission of a Withholding Certificate claiming a reduced rate of, or
exemption from, U.S. withholding tax, the Agent shall be entitled to withhold United States federal
income taxes at the full 30% withholding rate if in its reasonable judgment it is required to do so
under the due diligence requirements imposed upon a withholding agent

111

 

under §1.1441-7(b) of the
Regulations. Further, the Agent is indemnified under §1.1461-1(e) of the Regulations against any
claims and demands of any Lender or assignee or participant of a Lender for the amount of any tax
it deducts and withholds in accordance with regulations under §1441 of the Internal Revenue Code.

     16.19. Legal Representation of Agent. In connection with the negotiation, drafting,
and execution of this Agreement and the other Loan Documents, or in connection with future legal
representation relating to loan administration, amendments, modifications, waivers, or enforcement
of remedies in respect of this Agreement and the Other Documents, Simpson Thacher & Bartlett LLP
(“ST&B”) has represented, and shall represent, only PNC in its capacity as Agent and as a
Lender, and not any other Lender nor any Participant thereof. Each other Lender hereby
acknowledges that ST&B does not represent it in connection with any such matters.

     16.20. USA Patriot Act. Each Lender which is subject to Section 326 of the USA
Patriot Act, hereby notifies the Borrowers that, pursuant to the requirements of the USA Patriot
Act, it is required to obtain, verify and record information that identifies each Borrower, which
information includes the name and address of each Borrower and other information that will allow
such Lender to identify each Borrower in accordance with the USA Patriot Act.

112

 

Each of the parties has signed this Agreement as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	SPI PETROLEUM LLC, a Delaware limited
liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George Fastuca

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SIMONS PETROLEUM, INC., a Texas
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:	 	George Fastuca
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SIMONS PETROLEUM, INC., an Oklahoma
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George Fastuca

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SPI ACQUISITION LLC, a Delaware limited
liability company	 	 
	 
	 	 	 	 	 	 
	 	 	By:      SPI PETROLEUM LLC, its
managing member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George Fastuca

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ETI ACQUISITION LLC, a Delaware limited
liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George Fastuca

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	HARTNEY FUEL OIL CO., an Illinois
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George Fastuca

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	HARTNEY BROTHERS, INC., an Illinois
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George Fastuca

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	PETROLEUM SUPPLY COMPANY, INC.,
an Illinois corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George Fastuca

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CANYON STATE OIL COMPANY, INC.,

an Arizona corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	George Fastuca
	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GLOBAL PETROLEUM, INC., a Delaware
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	George Fastuca
	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	PECOS, INC., a California corporation	 	 
	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:	 	George Fastuca
	 	 
	 
	 	 	 	 	 	 
	 
	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GENERAL PETROLEUM CORPORATION,
a California corporation	 	 
	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George Fastuca

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	RAINIER PETROLEUM CORPORATION,
a Washington Corporation	 	 
	 
	 

	 	By:	 	/s/ George Fastuca

 
	 	 
	 

	 	Name:
	 	George Fastuca
 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	SEDRO-WOOLLEY HOLDINGS
CORPORATION, a Washington Corporation	 	 
	 
	 

	 	By:	 	/s/ George Fastuca

 
	 	 
	 

	 	Name:
	 	George Fastuca
 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	G.P. ATLANTIC, INC., a
South Carolina Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca

 
	 	 
	 

	 	Name:
	 	George Fastuca
 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL
ASSOCIATION, as Lender 

and as
Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Terrance O. McKinney

 
	 	 
	 

	 	Name:
	 	Terrance O. McKinney
 

	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as Lender and

Documentation Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Teri Streusand

 
	 	 
	 

	 	Name:
	 	Teri Streusand
 

	 	 
	 

	 	Title:	 	Vice President	 	 
	 

	 	 	 	 	 	 

Revolving Credit and Security Agreement

 

 

ANNEX A

BORROWERS

SPI Petroleum LLC

Global Petroleum, Inc.

Pecos, Inc.

General Petroleum Corporation

Rainier Petroleum Corporation

Sedro-Woolley Holdings Corporation

G.P. Atlantic, Inc.

Simons Petroleum, Inc. (Texas)

Simons Petroleum, Inc. (Oklahoma)

Hartney Fuel Oil Co.

Petroleum Supply Company, Inc.

Hartney Brothers, Inc.

SPI Acquisition LLC

ETI Acquisition LLC

Canyon State Oil Company, Inc.EX-10.5

 

 Exhibit
10.5

FIRST AMENDMENT

          FIRST AMENDMENT, dated as of October 26, 2006 (this “Amendment”), to the Revolving
Credit and Security Agreement dated September 18, 2006 (as amended from time to time prior to the
date hereof, the “Credit Agreement”), among SPI PETROLEUM LLC, a limited liability company
organized under the laws of the State of Delaware (“Parent”), the Borrowers listed on Annex
A thereto, the financial institutions which are now or which hereafter become a party thereto
(collectively, the “Lenders” and individually a “Lender”), JPMORGAN CHASE BANK,
N.A., BANK OF AMERICA, N.A., THE CIT GROUP/BUSINESS CREDIT, INC., LASALLE BUSINESS CREDIT LLC AND
WELLS FARGO FOOTHILL, LLC, as co-documentation agents, and PNC BANK, NATIONAL ASSOCIATION
(“PNC”), as agent for Lenders (PNC, in such capacity, the “Agent”).

W I T N E S S E T H:

          WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make, and have made,
certain loans and other extensions of credit to the Borrowers;

          WHEREAS, the Borrowers have requested certain amendments to the Credit Agreement as more fully
set forth herein; and

          WHEREAS, the Lenders are willing to agree to such amendments on the terms and subject to the
conditions contained in this Amendment.

          NOW, THEREFORE, the parties hereto hereby agree to amend the Credit Agreement as follows:

          SECTION 1. Defined Terms. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit Agreement.

          SECTION 2. Amendments to Section 1.2. (a) Section 1.2 of the Credit Agreement is
hereby amended by inserting the following new definitions in appropriate alphabetical order:

“Canyon Acquisition” shall mean the acquisition of the capital stock of CSOC
Inc. and fifty percent (50%) of the membership interests of Canyon State Oil Company
of Colorado, LLC by Global Petroleum, Inc. pursuant to the terms of the Canyon
Acquisition Agreement.

“Pecos Acquisition” shall mean the acquisition of the capital stock of
Pecos, Inc. by Global Petroleum, Inc. pursuant to the terms of the Pecos Acquisition
Agreement.

          (b) Section 1.2 of the Credit Agreement is hereby further amended by (i) deleting the words
“or if less, the number of full months quarters completed since the Closing Date” from the
definition of “Fixed Charge Coverage Ratio” and (ii) inserting in lieu thereof the words
“or,

 

 

2

(i) in the case of the fiscal quarter ended December 31, 2006, for a period of such fiscal quarter,
(ii) in the case of the fiscal quarter ended March 31, 2007, for a period of two consecutive fiscal
quarters, and, (iii) in the case of the fiscal quarter ended June 30, 2007, for a period of three
consecutive fiscal quarters”.

          SECTION 3. Amendments to Section 6.5. Section 6.5 of the Credit Agreement is hereby
amended by (i) inserting the words “(commencing on December 31, 2006)” after the words “each
quarter” in the second line of said Section and (ii) adding the following proviso to the end of
said Section:

provided that EBITDA shall be calculated for purposes of the Leverage Ratio
(a) for each fiscal quarter in such period ended on or prior to September 30, 2006
after giving pro forma effect to the Canyon Acquisition and the
Pecos Acquisition as though they had occurred on the first day of such period and
(b) for each fiscal quarter in any such period ended after September 30, 2006 after
giving pro forma effect to any material acquisition as though it had
occurred on the first day of such period.

          SECTION 4. Amendments to Section 9.7. Section 9.7 of the Credit Agreement is hereby
amended by (i) deleting the number “120” in the third line of said Section and (ii) inserting in
lieu thereof the number “130”.

          SECTION 5. Amendments to Section 9.8. Section 9.8 of the Credit Agreement is hereby
amended by inserting the words “(except in the case of the fiscal quarter of the Borrowers ended
September 30, 2006, on an unconsolidated basis)” after the words “on a consolidated basis” in the
second line and the fourth line of said Section.

          SECTION 6. Amendments to Section 9.9. Section 9.9 of the Credit Agreement is hereby
amended by inserting the words “(except in the case of the fiscal months of the Borrowers ended
October 31, 2006 and November 30, 2006, on an unconsolidated basis)” after the words “on a
consolidated basis” in the third line and the fourth line of said Section.

          SECTION 7. Conditions to Effectiveness. This Amendment shall become effective upon
the date (the “Effective Date”) on which the last of the following conditions precedent
becomes satisfied:

          (a) the Borrowers and the Agent shall have each executed and delivered this Amendment and

          (b) the Agent shall have received executed letters with respect to this Amendment
substantially in the form attached hereto as Exhibit A (a “Lender Consent Letter”) from
Lenders constituting the Required Lenders.

The Agent shall notify the Borrowers and the Lenders of the Effective Date, and such notice shall
be conclusive and binding.

          SECTION 8. Representations and Warranties.

 

 

3

          (a) In order to induce the Agent and the Lenders to enter into this Amendment, each of Parent
and each Borrower hereby represents and warrants to the Agent and the Lenders that, after giving
effect to this Amendment, (i) the representations and warranties of each of Parent and each
Borrower made in the Credit Agreement are true and correct in all material respects on and as of
the Effective Date (after giving effect hereto) as if made on and as of the Effective Date (except
where such representations and warranties expressly relate to an earlier date in which case such
representations and warranties were true and correct in all material respects as of such earlier
date) and (ii) no Default has occurred and is continuing; provided that all references to the
“Agreement” in the Credit Agreement and all references to the “Credit Agreement” in any other Loan
Document shall be and are deemed to mean the Credit Agreement as amended by this Amendment.

          (b) Each of Parent and each Borrower hereby represents and warrants that: as of the date
hereof it has all necessary corporate power and authority to execute and deliver the Amendment; the
execution and delivery by each of Parent and each Borrower of the Amendment have been duly
authorized by all necessary corporate action on its part; and the Amendment has been duly executed
and delivered by each of Parent and each Borrower and constitutes its legal, valid and binding
obligation, enforceable in accordance with its terms.

          SECTION 9. Continuing Effect of the Credit Agreement. This Amendment shall not
constitute an amendment or waiver of or consent to any provision of the Credit Agreement not
expressly referred to herein and shall not be construed as an amendment, waiver or consent to any
action on the part of each of Parent and each Borrower that would require an amendment, waiver or
consent of the Agent or the Lenders except as expressly stated herein. Except as expressly amended
hereby, the provisions of the Credit Agreement, as amended by this Amendment, are and shall remain
in full force and effect in accordance with its terms. All references to the “Agreement” in the
Credit Agreement and all references to the “Credit Agreement” in any other Loan Document shall be
and are deemed to mean the Credit Agreement as amended by this Amendment.

          SECTION 10. Counterparts. This Amendment may be executed by one or more of the parties
to this Amendment on any number of separate counterparts (including by facsimile), and all of said
counterparts taken together shall be deemed to constitute one and the same instrument.

          SECTION 11. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

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

 

 

4

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

	 	 	 	 	 	 	 
	 	 	SPI PETROLEUM LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	GLOBAL PETROLEUM, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SIMONS PETROLEUM, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SPI ACQUISITION LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	ETI ACQUISITION LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 

 

 

5

	 	 	 	 	 	 	 
	 	 	HARTNEY FUEL OIL CO.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	HARTNEY BROTHERS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	PETROLEUM SUPPLY COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	CANYON STATE OIL COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	PECOS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 

 

 

6

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	GENERAL PETROLEUM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	RAINIER PETROLEUM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SEDRO-WOOLLEY HOLDINGS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	G.P. ATLANTIC, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	George Fastuca	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	Treasurer	 	 
	 

	 	 	 	 

	 	 

 

 

6

	 	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION,

as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Terrance O. McKinney	 	 
	 

	 	 	 	 

Name:  Terrance O. McKinney
	 	 
	 

	 	 	 	Title:  Vice President	 	 

 

 

EXHIBIT A

LENDER CONSENT LETTER

GLOBAL PETROLEUM, INC. CREDIT AGREEMENT

DATED AS OF SEPTEMBER 18, 2006

			
	To:	 	PNC Bank, National Association, as Agent

under the Credit Agreement referred to below

Ladies and Gentlemen:

          Reference is made to the Revolving Credit and Security Agreement dated September 18, 2006 (as
amended from time to time prior to the date hereof, the “Credit Agreement”), among SPI
PETROLEUM LLC, a limited liability company organized under the laws of the State of Delaware
(“Parent”), the Borrowers listed on Annex A thereto, the financial institutions which are
now or which hereafter become a party hereto (collectively, the “Lenders” and individually
a “Lender”), JPMORGAN CHASE BANK, N.A., BANK OF AMERICA, N.A., THE CIT GROUP/BUSINESS
CREDIT, INC., LASALLE BUSINESS CREDIT LLC AND WELLS FARGO FOOTHILL, LLC, as co-documentation
agents, and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as agent for Lenders (PNC, in such
capacity, the “Agent”).

          The Borrowers have requested certain amendments to the Credit Agreement on the terms and
conditions described in the Amendment to the Credit Agreement to which this Lender Consent Letter
is attached as Exhibit A (the “Amendment”).

          The undersigned Lender hereby consents to the Amendment, and hereby consents to the Agent
entering into the Amendment pursuant to Section 16.2 of the Credit Agreement.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(NAME OF LENDER)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:	 	 

	 	 
	 

	 	Title	 	 	 	 

Dated as of October ___, 2006

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