Document:

Exhibit 10.16

 

	
   

  	
   

  	
   

  

 

 

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

 

dated as of

 

 

August 26, 2009

 

 

among

 

 

Echo Global Logistics, Inc.,

Echo/Bestway Holdings, LLC,

Echo/TMG Holdings, LLC,

Echo/RT Holdings, LLC, and

Echo/FMI Holdings, LLC

 

 

and

 

 

JPMORGAN CHASE BANK, N.A.

 

 

	
   

  	
   

  	
   

  

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  I - DEFINITIONS

  	
  1

  
	
  SECTION 1.01. Defined Terms

  	
  1

  
	
  SECTION 1.02. Classification of Loans and
  Borrowings

  	
  17

  
	
  SECTION 1.03. Terms Generally

  	
  17

  
	
  SECTION 1.04. Accounting Terms; GAAP

  	
  18

  
	
  ARTICLE
  II - THE CREDITS

  	
  18

  
	
  SECTION 2.01. Commitment

  	
  18

  
	
  SECTION 2.02. Loans and Borrowings

  	
  18

  
	
  SECTION 2.03. Borrowing Procedures; Requests
  for Revolving Borrowings

  	
  19

  
	
  SECTION 2.04. Protective Advances

  	
  19

  
	
  SECTION 2.05. Letters of Credit

  	
  19

  
	
  SECTION 2.06. Funding of Borrowings

  	
  21

  
	
  SECTION 2.07. Interest Elections

  	
  21

  
	
  SECTION 2.08. Termination of Commitment

  	
  22

  
	
  SECTION 2.09. Repayment and Amortization of
  Loans; Evidence of Debt

  	
  23

  
	
  SECTION 2.10. Prepayment of Loans

  	
  23

  
	
  SECTION 2.11. Fees

  	
  24

  
	
  SECTION 2.12. Interest

  	
  25

  
	
  SECTION 2.13. Alternate Rate of Interest

  	
  25

  
	
  SECTION 2.14. Increased Costs

  	
  26

  
	
  SECTION 2.15. Break Funding Payments

  	
  26

  
	
  SECTION 2.16. Taxes

  	
  27

  
	
  SECTION 2.17. Payments Generally; Allocation
  of Proceeds; Sharing of Set-offs

  	
  27

  
	
  SECTION 2.18. Indemnity for Returned Payments

  	
  28

  
	
  ARTICLE
  III - Representations and Warranties

  	
  29

  
	
  SECTION 3.01. Organization; Powers

  	
  29

  
	
  SECTION 3.02. Authorization; Enforceability

  	
  29

  
	
  SECTION 3.03. Governmental Approvals; No
  Conflicts

  	
  29

  
	
  SECTION 3.04. Financial Condition; No Material
  Adverse Change

  	
  29

  
	
  SECTION 3.05. Properties

  	
  29

  
	
  SECTION 3.06. Litigation and Environmental
  Matters

  	
  30

  
	
  SECTION 3.07. Compliance with Laws and
  Agreements

  	
  30

  
	
  SECTION 3.08. Investment Company Status

  	
  30

  
	
  SECTION 3.09. Taxes

  	
  30

  
	
  SECTION 3.10. ERISA

  	
  30

  
	
  SECTION 3.11. Disclosure

  	
  30

  
	
  SECTION 3.12. Material Agreements

  	
  31

  
	
  SECTION 3.13. Solvency

  	
  31

  
	
  SECTION 3.14. Insurance

  	
  31

  
	
  SECTION 3.15. Capitalization and Subsidiaries

  	
  31

  
	
  SECTION 3.16. Security Interest in Collateral

  	
  31

  
	
  SECTION 3.17. Employment Matters

  	
  31

  
	
  SECTION 3.18. Affiliate Transactions

  	
  31

  
	
  SECTION 3.19. Common Enterprise

  	
  32

  
	
  ARTICLE
  IV - CONDITIONS

  	
  32

  
	
  SECTION 4.01. Effective Date

  	
  32

  
	
  SECTION 4.02. Each Credit Event

  	
  34

  
	
  ARTICLE
  V - AFFIRMATIVE COVENANTS

  	
  34

  
	
  SECTION 5.01. Financial Statements; Borrowing
  Base and Other Information

  	
  34

  

 

i

 

	
  SECTION 5.02. Notices of Material Events

  	
  35

  
	
  SECTION 5.03. Existence; Conduct of Business

  	
  36

  
	
  SECTION 5.04. Payment of Obligations

  	
  36

  
	
  SECTION 5.05. Maintenance of Properties

  	
  36

  
	
  SECTION 5.06. Books and Records; Inspection
  Rights

  	
  37

  
	
  SECTION 5.07. Compliance with Laws

  	
  37

  
	
  SECTION 5.08. Use of Proceeds and Letters of
  Credit

  	
  37

  
	
  SECTION 5.09. Insurance

  	
  37

  
	
  SECTION 5.10. Casualty and Condemnation

  	
  37

  
	
  SECTION 5.11. Appraisals

  	
  37

  
	
  SECTION 5.12. Depository Banks

  	
  37

  
	
  SECTION 5.13. Additional Collateral; Further
  Assurances

  	
  38

  
	
  ARTICLE
  VI - NEGATIVE COVENANTS

  	
  38

  
	
  SECTION 6.01. Indebtedness

  	
  38

  
	
  SECTION 6.02. Liens

  	
  39

  
	
  SECTION 6.03. Fundamental Changes

  	
  40

  
	
  SECTION 6.04. Investments, Loans, Advances,
  Guarantees and Acquisitions

  	
  41

  
	
  SECTION 6.05. Asset Sales

  	
  42

  
	
  SECTION 6.06. Sale and Leaseback Transactions

  	
  43

  
	
  SECTION 6.07. Swap Agreements

  	
  43

  
	
  SECTION 6.08. Restricted Payments; Certain
  Payments of Indebtedness

  	
  43

  
	
  SECTION 6.09. Transactions with Affiliates

  	
  43

  
	
  SECTION 6.10. Restrictive Agreements

  	
  44

  
	
  SECTION 6.11. Amendment of Material Documents

  	
  44

  
	
  SECTION 6.12. Financial Covenants

  	
  44

  
	
  ARTICLE
  VII - EVENTS OF DEFAULT

  	
  45

  
	
  ARTICLE
  VIII - MISCELLANEOUS

  	
  47

  
	
  SECTION 8.01. Notices

  	
  47

  
	
  SECTION 8.02. Waivers; Amendments

  	
  48

  
	
  SECTION 8.03. Expenses; Indemnity; Damage
  Waiver

  	
  48

  
	
  SECTION 8.04. Successors and Assigns

  	
  49

  
	
  SECTION 8.05. Survival

  	
  50

  
	
  SECTION 8.06. Counterparts; Integration;
  Effectiveness

  	
  51

  
	
  SECTION 8.07. Severability

  	
  51

  
	
  SECTION 8.08. Right of Setoff

  	
  51

  
	
  SECTION 8.09. Governing Law; Jurisdiction;
  Consent to Service of Process

  	
  51

  
	
  SECTION 8.10. WAIVER OF JURY TRIAL

  	
  52

  
	
  SECTION 8.11. Headings

  	
  52

  
	
  SECTION 8.12. Confidentiality

  	
  52

  
	
  SECTION 8.13. Nonreliance; Violation of Law

  	
  52

  
	
  SECTION 8.14. USA PATRIOT Act

  	
  52

  
	
  SECTION 8.15. Disclosure

  	
  53

  
	
  SECTION 8.16. Interest Rate Limitation

  	
  53

  
	
  ARTICLE
  IX - LOAN GUARANTY

  	
  53

  
	
  SECTION 9.01. Guaranty

  	
  53

  
	
  SECTION 9.02. Guaranty of Payment

  	
  53

  
	
  SECTION 9.03. No Discharge or Diminishment of
  Loan Guaranty

  	
  53

  
	
  SECTION 9.04. Defenses Waived

  	
  54

  
	
  SECTION 9.05. Rights of Subrogation

  	
  54

  
	
  SECTION 9.06. Reinstatement; Stay of
  Acceleration

  	
  54

  
	
  SECTION 9.07. Information

  	
  54

  
	
  SECTION 9.08. Termination

  	
  55

  
	
  SECTION 9.09. Taxes

  	
  55

  

 

ii

 

	
  SECTION 9.10. Maximum Liability

  	
  55

  
	
  SECTION 9.11. Contribution

  	
  55

  
	
  SECTION 9.12. Liability Cumulative

  	
  56

  
	
  ARTICLE
  X.    THE BORROWER REPRESENTATIVE

  	
  56

  
	
  10.01.

  	
  Appointment;
  Nature of Relationship

  	
  56

  
	
  10.02.

  	
  Powers

  	
  56

  
	
  10.03.

  	
  Employment
  of Agents

  	
  56

  
	
  10.04.

  	
  Notices

  	
  56

  
	
  10.05.

  	
  Successor
  Borrower Representative

  	
  56

  
	
  10.06.

  	
  Execution
  of Loan Documents; Borrowing Base Certificate

  	
  56

  
	
  10.07.

  	
  Reporting

  	
  57

  
	
  10.08.

  	
  Effect
  of Amendment and Restatement; Acknowledgement of Outstanding Principal under
  Existing Loan Agreement

  	
  57

  

 

SCHEDULES:

 

Schedule
3.05 - Properties

Schedule
3.06 - Disclosed Matters

Schedule
3.14 - Insurance

Schedule
3.15 - Capitalization and Subsidiaries

Schedule
3.18 - Affiliate Transactions

Schedule
6.01 - Existing Indebtedness

Schedule
6.02 - Existing Liens

Schedule
6.04 - Existing Investments

Schedule
6.10 - Existing Restrictions

 

EXHIBITS:

 

Exhibit A
- Form of Opinion of Borrowers’ Counsel

Exhibit B
- Form of Borrowing Base Certificate

Exhibit C
- Form of Compliance Certificate

Exhibit D
- Joinder Agreement

 

iii

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS
AMENDED AND RESTATED CREDIT AGREEMENT dated as of August 26, 2009 (as it
may be amended, restated supplemented or otherwise modified from time to time,
this “Agreement”), is entered into by and among Echo Global Logistics, Inc.,
a Delaware corporation (“Echo”), Echo/Bestway Holdings, LLC, a Delaware
limited liability company (“Echo/Bestway”), Echo/TMG Holdings, LLC, a
Delaware limited liability company (“Echo/TMG”), Echo/RT Holdings, LLC,
a Delaware limited liability company (“Echo/RT”), Echo/FMI Holdings,
LLC, a Delaware limited liability company (“Echo/FMI”), the other Loan
Parties party hereto, and JPMORGAN CHASE BANK, N.A. (“Lender”).

 

A.                Echo and the
Lender are parties to the Existing Credit Agreement (as defined below).

 

B.                  Echo and the
other Borrowers (as defined below) have requested that the Lender amend certain
provisions of the Existing Credit Agreement, including, without limitation,
making available Loans to the other Borrowers hereunder.

 

C.                  The Lender has
agreed amend certain provisions of the Existing Credit Agreement as set forth
herein.

 

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

 

ARTICLE I

 

Definitions

 

SECTION 1.01. Defined Terms. As used in this
Agreement, the following terms have the meanings specified below:

 

“Account”
has the meaning assigned to such term in the Security Agreement.

 

“Account
Debtor” means any Person obligated on an Account.

 

“Acquisition”
means any transaction, or any series of related transactions, consummated on or
after the Closing Date, by which any Loan Party (a) acquires any going
business or all or substantially all of the assets of any Person, whether
through purchase of assets, merger or otherwise or (b) directly or
indirectly acquires (in one transaction or as the most recent transaction in a
series of transactions) at least a majority (in number of votes) of the Equity
Interests of a Person which has ordinary voting power for the election of
directors or other similar management personnel of a Person (other than Equity
Interests having such power only by reason of the happening of a contingency)
or a majority of the outstanding Equity Interests of a Person.

 

“Adjusted
LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period or for any CBFR Borrowing, an interest rate per annum (rounded upwards,
if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such
Interest Period multiplied by (b) the Statutory Reserve Rate.

 

“Adjusted
One Month LIBOR Rate” means, an interest rate per annum equal to the sum of
(i) 2.50% per annum plus (ii) the Adjusted LIBO Rate for a one month
Interest Period on such day (or if such day is not a Business Day, the
immediately preceding Business Day); provided that, for the avoidance of
doubt, the Adjusted LIBO Rate for any day shall be based on the rate appearing
on the Reuters Screen LIBOR01 Page (or on any successor or substitute
page) at approximately 11:00 a.m. London time on such day (without any
rounding).

 

“Affiliate”
means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or
is under common Control with the Person specified.

 

 

“Applicable
Rate” means, for any day, with respect to any CBFR Loan, 0% and with
respect to any Eurodollar Revolving Loan, 2.25%.

 

“Approved
Fund” has the meaning assigned to such term in Section 8.04(b).

 

“Availability”
means, at any time, an amount equal to (a) the lesser of (i) the
Revolving Commitment and (ii) the Borrowing Base minus (b) the
Revolving Exposure.

 

“Availability
Period” means the period from and including the Effective Date to but
excluding the earlier of the Maturity Date and the date of termination of the
Commitment.

 

“Available
Revolving Commitment” means, at any time, the Revolving Commitment then in
effect minus the Revolving
Exposure at such time.

 

“Banking
Services” means each and any of the following bank services provided to any
Loan Party by the Lender or any of its Affiliates: (a) credit cards for
commercial customers (including, without limitation, “commercial credit cards”
and purchasing cards), (b) stored value cards and (c) treasury
management services (including, without limitation, controlled disbursement,
automated clearinghouse transactions, return items, overdrafts and interstate
depository network services).

 

“Banking
Services Obligations” of the Loan Parties means any and all obligations of
the Loan Parties, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor) in connection with Banking
Services.

 

“Banking
Services Reserves” means all Reserves which the Lender from time to time
establishes in its Permitted Discretion for Banking Services then provided or
outstanding.

 

“Board”
means the Board of Governors of the Federal Reserve System of the United States
of America.

 

“Borrower”
or “Borrowers” means, individually or collectively, Echo, Echo/Bestway,
Echo/TMG, Echo/RT and Echo/FMI.

 

“Borrower
Representative” means Echo, in its capacity as contractual representative
of the Borrowers pursuant to Article X.

 

“Borrowing”
means (a) Revolving Loans of the same Type, made, converted or continued
on the same date and, in the case of Eurodollar Loans, as to which a single
Interest Period is in effect, (b) a Protective Advance.

 

“Borrowing
Base” means, at any time, the sum of 80% of the book value of the
Borrowers’ Eligible Accounts at such time. The Lender may, in its Permitted
Discretion, reduce the advance rates set forth above, and add such Reserves or
reduce one or more of the other elements used in computing the Borrowing Base.

 

“Borrowing
Base Certificate” means a certificate, signed and certified as accurate and
complete by a Financial Officer of the Borrower Representative, in
substantially the form of Exhibit B or another form which is
acceptable to the Lender in its sole discretion.

 

“Borrowing
Request” means a request by the Borrower Representative for a Revolving
Borrowing in accordance with Section 2.03.

 

2

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in Illinois are authorized or required by law to remain
closed; provided that, when used in connection with a Eurodollar Loan,
the term “Business Day” shall also exclude any day on which banks are
not open for dealings in dollar deposits in the London interbank market.

 

“Capital
Expenditures” means, without duplication, any expenditure or commitment to
expend money for any purchase or other acquisition of any asset which would be
classified as a fixed or capital asset on a consolidated balance sheet of the
Borrowers prepared in accordance with GAAP.

 

“Capital
Lease Obligations” of any Person means the obligations of such Person to
pay rent or other amounts under any lease of (or other arrangement conveying
the right to use) real or personal property, or a combination thereof, which
obligations are required to be classified and accounted for as capital leases
on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

 

“CB
Floating Rate” means the Prime Rate; provided that the CB Floating Rate
shall never be less than the Adjusted One Month LIBOR Rate for a one month
Interest Period on such day (or if such day is not a Business Day, the
immediately preceding Business Day). Any change in the CB Floating Rate due to
a change in the Prime Rate or the Adjusted One Month LIBOR Rate shall be
effective from and including the effective date of such change in the Prime
Rate or the Adjusted One Month LIBOR Rate, respectively.

 

“CBFR”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the CB Floating Rate.

 

“Change
in Control” means the occurrence of any event or transaction, including the
sale or exchange of outstanding shares of any Borrower’s capital stock or the
capital stock of any of the Loan Parties, or series of related events or
transactions, resulting in (a) the holders of such outstanding capital
stock immediately before consummation of such event or transaction, or series
of related events or transactions, do not, immediately after consummation of
such event or transaction or series of related events or transactions, retain,
directly or indirectly, capital stock representing at least seventy percent
(70%) of the voting power of such Borrower, or (b) the Company ceases to
own and control all of the economic and voting rights associated with all of
the outstanding capital stock of any other Borrower provided, however, that the
merger or consolidation of any Subsidiary of Borrower with any other Subsidiary
of Borrower, or with Borrower so long as Borrower is the surviving entity of
any such merger or consolidation, does not constitute a “Change of Control.”

 

“Change
in Law” means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by the Lender
(or, for purposes of Section 2.14(b), by any lending office of the Lender
or by the Lender’s holding company, if any) with any request, guideline or
directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans or Protective
Advances.

 

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

 

“Collateral”
means any and all property owned, leased or operated by a Person covered by the
Collateral Documents and any and all other property of any Loan Party, now
existing or hereafter acquired, that may at any time be or become subject to a
security interest or Lien in favor of the Lender, to secure the Secured
Obligations.

 

“Collateral Access Agreement” has the meaning
assigned to such term in the Security Agreement.

 

3

 

“Collateral
Documents” means, collectively, the Security Agreement and any other
documents granting a Lien upon the Collateral as security for payment of the
Secured Obligations.

 

“Commitment”
means the sum of the Revolving Commitment, as such Commitment may be reduced or
increased from time to time pursuant to assignments by or to the Lender
pursuant to Section 9.04.

 

“Company”
means Echo.

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling”
and “Controlled” have meanings correlative thereto.

 

“Credit
Exposure” means the sum of (a) the Revolving Exposure at such time, plus (b) an
amount equal to the aggregate principal amount of Protective Advances
outstanding at such time.

 

“Debt
Service Coverage Ratio” means at any given time and with respect to any
Person, the ratio of (a) a an amount equal to (i) such Person’s
EBITDA, minus (ii) ) all dividends and distributions made to
shareholders of such Person, minus (iii) income taxes paid, minus
(iv) non-financed portion of Capital Expenditures to (b) Interest
Expense, plus scheduled principal payments on debt that is not
“Subordinated Indebtedness”, plus scheduled capital lease payments, plus
principal payments made on Subordinated Indebtedness, plus any amounts
paid, directly or indirectly, by the Borrowers in respect of earn-out
obligations owed by any Borrower; provided that solely for purposes of Section 6.12,
to the extent the Borrowers or any Subsidiary makes any acquisition permitted
pursuant to Section 6.04 or disposition of assets outside the ordinary
course of business that is permitted by Section 6.03 during the period of
four fiscal quarters of the Borrowers most recently ended, the Debt Service
Coverage Ratio shall be calculated after giving pro forma effect thereto
(calculated in accordance with subsections (a) and (b) of this
definition), as if such acquisition or such disposition (and any related
incurrence, repayment or assumption of Indebtedness) had occurred in the first
day of such four quarter period.

 

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

 

“Disclosed
Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06.

 

“Document”
has the meaning assigned to such term in the Security Agreement. 

 

“dollars”
or “$” refers to lawful money of the United States of America.

 

“EBITDA”
means, for any period, Net Income for such period plus (a) without
duplication and to the extent deducted in determining Net Income for such
period, the sum of (i) Interest Expense for such period, (ii) income
tax expense for such period net of tax refunds, (iii) all amounts
attributable to depreciation and amortization expense for such period, (iv) any
extraordinary non-cash charges for such period and (v) any other non-cash
charges for such period (but excluding any non-cash charge in respect of an
item that was included in Net Income in a prior period, minus (b) without
duplication and to the extent included in Net Income, (i) any cash
payments made during such period in respect of non-cash charges described in
clause (a)(v) taken in a prior period and (ii) any extraordinary
gains and any non-cash items of income for such period, all calculated for the
Company and its Subsidiaries on a consolidated basis in accordance with GAAP.

 

“Effective
Date” means the date on which the conditions specified in Section 4.01
are satisfied (or waived in accordance with Section 8.02).

 

“Eligible
Accounts” means, at any time, the Accounts of a Borrower which the Lender
determines in its Permitted Discretion are eligible as the basis for the
extension of Revolving Loans and the issuance of Letters

 

4

 

of
Credit hereunder. Without limiting the Lender’s discretion provided herein,
Eligible Accounts shall not include any Account:

 

(a)                                  which is not
subject to a first priority perfected security interest in favor of the Lender;

 

(b)                                 which is
subject to any Lien other than (i) a Lien in favor of the Lender and (ii) a
Permitted Encumbrance which does not have priority over the Lien in favor of
the Lender;

 

(c)                                  with respect to
which is unpaid more than 90 days after the date of the original invoice
therefor or which has been written off the books of the Borrowers or otherwise
designated as uncollectible;

 

(d)                                 which is owing
by an Account Debtor for which more than 25% of the Accounts owing from such
Account Debtor and its Affiliates are ineligible;

 

(e)                                  with respect to
which any covenant, representation, or warranty contained in this Agreement or
in the Security Agreement has been breached or is not true;

 

(f)                                    which (i) does
not arise from the sale of goods or performance of services in the ordinary
course of business, (ii) is not evidenced by an invoice or other
documentation satisfactory to the Lender which has been sent to the Account Debtor,
(iii) represents a progress billing, (iv) is contingent upon the
Borrower’s completion of any further performance, (v) represents a sale on
a bill-and-hold, guaranteed sale, sale-and-return, sale on approval,
consignment, cash-on-delivery or any other repurchase or return basis, or (vi) relates
to payments of interest;

 

(g)                                 for which the
goods giving rise to such Account have not been shipped to the Account Debtor,
or for which the services giving rise to such Account have not been performed
by such Borrower or if such Account was invoiced more than once;

 

(h)                                 with respect to
which any check or other instrument of payment has been returned uncollected
for any reason;

 

(i)                                     which is owed
by an Account Debtor which has (i) applied for, suffered, or consented to
the appointment of any receiver, custodian, trustee, or liquidator of its
assets, (ii) has had possession of all or a material part of its property
taken by any receiver, custodian, trustee or liquidator, (iii) filed, or
had filed against it, any request or petition for liquidation, reorganization,
arrangement, adjustment of debts, adjudication as bankrupt, winding-up, or
voluntary or involuntary case under any state or federal bankruptcy laws, (iv) has
admitted in writing its inability, or is generally unable to, pay its debts as
they become due, (v) become insolvent, or (vi) ceased operation of
its business;

 

(j)                                     which is owed
by any Account Debtor which has sold all or a substantially all of its assets;

 

(k)                                  which is owed
by an Account Debtor which (i) does not maintain its chief executive
office in the U.S. or Canada or (ii) is not organized under applicable law
of the U.S., any state of the U.S., Canada, or any province of Canada unless,
in either case, such Account is backed by a Letter of Credit acceptable to the
Lender which is in the possession of, has been assigned to and is directly
drawable by the Lender;

 

(1)                                  which is owed
in any currency other than U.S. dollars;

 

(m)                               which is owed
by (i) the government (or any department, agency, public corporation, or
instrumentality thereof) of any country other than the U.S. unless such Account
is backed

 

5

 

by
a Letter of Credit acceptable to the Lender which is in the possession of the
Lender, or (ii) the government of the U.S., or any department, agency,
public corporation, or instrumentality thereof, unless the Federal Assignment
of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and
41 U.S.C. § 15 et seq.), and any other steps necessary to
perfect the Lien of the Lender in such Account have been complied with to the
Lender’s satisfaction;

 

(n)                                 which is owed
by any Affiliate, employee, officer, director, agent or stockholder of any Loan
Party;

 

(o)                                 which, for any
Account Debtor, exceeds a credit limit determined by the Lender in its
Permitted Discretion, to the extent of such excess;

 

(p)                                 which is owed
by an Account Debtor or any Affiliate of such Account Debtor to which such
Borrower is indebted, but only to the extent of such indebtedness or is subject
to any security, deposit, progress payment, retainage or other similar advance
made by or for the benefit of an Account Debtor, in each case to the extent
thereof;

 

(q)                                 which is
subject to any counterclaim, deduction, defense, setoff or dispute (except for
prompt payment discounts), provided that such portion of such Account which is
not subject to counterclaim, deduction, defense, setoff or dispute shall not be
ineligible;

 

(r)                                    which is
evidenced by any promissory note, chattel paper, or instrument;

 

(s)                                  which is owed
by an Account Debtor located in any jurisdiction which requires filing of a
“Notice of Business Activities Report” or other similar report in order to
permit such Borrower to seek judicial enforcement in such jurisdiction of
payment of such Account, unless such Borrower has filed such report or
qualified to do business in such jurisdiction;

 

(t)                                    with respect to
which such Borrower has made any agreement with the Account Debtor for any
reduction thereof, other than discounts and adjustments given in the ordinary
course of business, or any Account which was partially paid and such Borrower
created a new receivable for the unpaid portion of such Account;

 

(u)                                 which does not
comply in all material respects with the requirements of all applicable laws
and regulations, whether Federal, state or local, including without limitation
the Federal Consumer Credit Protection Act, the Federal Truth in Lending Act
and Regulation Z of the Board;

 

(v)                                 which is for
goods that have been sold under a purchase order or pursuant to the terms of a
contract or other agreement or understanding (written or oral) that indicates
or purports that any Person other than such Borrower has or has had an
ownership interest in such goods, or which indicates any party other than such
Borrower as payee or remittance party;

 

(w)                               which was
created on cash on delivery terms; or

 

(x)                                   which the
Lender determines may not be paid by reason of the Account Debtor’s inability
to pay or which the Lender otherwise determines in its Permitted Discretion is
unacceptable for any reason whatsoever.

 

In
the event that an Account which was previously an Eligible Account ceases to be
an Eligible Account hereunder, such Borrower or the Borrower Representative
shall notify the Lender thereof on and at the time of submission to the Lender
of the next Borrowing Base Certificate. In determining the amount of an
Eligible Account, the face amount of an Account may, in the Lender’s Permitted
Discretion, be reduced by, without duplication, to the extent not reflected in
such face amount, (i) the amount of all accrued and actual discounts,
claims, credits or credits pending, promotional program allowances, price
adjustments, finance charges or other

 

6

 

allowances
(including any amount that such Borrower may be obligated to rebate to an
Account Debtor pursuant to the terms of any agreement or understanding (written
or oral)) and (ii) the aggregate amount of all cash received in respect of
such Account but not yet applied by such Borrower to reduce the amount of such
Account.

 

“Environmental
Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way
to the environment, preservation or reclamation of natural resources, the
management, release or threatened release of any Hazardous Material or to
health and safety matters.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of any Borrower or any Subsidiary directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of
any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
release or threatened release of any Hazardous Materials into the environment
or (e) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

 

“Equity
Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or
other equity ownership interests in a Person, and any warrants, options or
other rights entitling the holder thereof to purchase or acquire any such
equity interest.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time.

 

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

 

“ERISA
Event” means (a) any “reportable event”, as defined in Section 4043
of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an “accumulated funding deficiency” (as
defined in Section 412 of the Code or Section 302 of ERISA), whether
or not waived; (c) the filing pursuant to Section 412(d) of the
Code or Section 303(d) of ERISA of an application for a waiver of the
minimum funding standard with respect to any Plan; (d) the incurrence by
any Borrower or any of its ERISA Affiliates of any liability under Title IV of
ERISA with respect to the termination of any Plan; (e) the receipt by any
Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to an intention to terminate any Plan or Plans or to appoint a
trustee to administer any Plan; (f) the incurrence by any Borrower or any
of its ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt
by any Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from any Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

 

“Eurodollar”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Adjusted LIBO Rate.

 

“Event
of Default” has the meaning assigned to such term in Article VII.

 

“Excluded
Taxes” means, with respect to the Lender, or any other recipient of any
payment to be made by or on account of any obligation of any Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its
net income by the United States of America, or by the jurisdiction under the
laws of which such recipient is organized or in which its principal office is
located or, in the case of the Lender, in which its applicable

 

7

 

lending
office is located, and (b) any branch profits taxes imposed by the United
States of America or any similar tax imposed by any other jurisdiction in which
any Borrower is located.

 

“Existing
Credit Agreement” means that certain Credit Agreement dated as of October 7,
2008 by and between Echo and the Lender as amended by (i) that certain
Consent and First Amendment to Credit Agreement dated as of June 2, 2009
and (ii) that certain Second Amendment to Credit Agreement dated as of July 22,
2009.

 

“Existing
Loan Documents” means the Existing Credit Agreement and the “Related
Documents” (as such term is defined in the Existing Credit Agreement).

 

“Federal
Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published on the next succeeding Business Day by
the Federal Reserve Bank of New York, or, if such rate is not so published for
any day that is a Business Day, the average (rounded upwards, if necessary, to
the next 1/100 of 1%) of the quotations for such day for such transactions
received by the Lender from three Federal funds brokers of recognized standing
selected by it.

 

“Financial
Officer” means the chief financial officer, principal accounting officer,
treasurer or controller of the Company.

 

“Funded
Debt” of any Person shall mean, without duplication, (a) all
Indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services as of such date (other than operating leases,
contingent earn-out obligations of such Person and trade liabilities incurred in
the ordinary course of business and payable in accordance with customary
practices) or which is evidenced by a note, bond, debenture or similar
instrument, (b) the principal component of all obligations of such person
under Capital Lease Obligations, (c) all reimbursement obligations
(actual, contingent or otherwise) of such Person in respect of letters of
credit, acceptances or similar obligations issued or created for the account of
such Person, (d) all liabilities secured by any liens on any property owned
by such Person as of such date even though such Person has not assumed or
otherwise become liable for the payment thereof, in each case determined in
accordance with GAAP.

 

“Funding
Account” has the meaning assigned to such term in Section 4.01(h).

 

“GAAP”
means generally accepted accounting principles in the United States of America.

 

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

 

“Guarantee”
of or by any Person (the “guarantor”) means any obligation, contingent
or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of the guarantor, direct or indirect, (a) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness
or other obligation or to purchase (or to advance or supply funds for the purchase
of) any security for the payment thereof, (b) to purchase or lease
property, securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay
such Indebtedness or other obligation or (d) as an account party in
respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not
include endorsements for collection or deposit in the ordinary course of
business.

 

“Guaranteed
Obligations” has the meaning assigned to such term in Section 9.01.

 

8

 

“Hazardous
Materials” means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

 

“Indebtedness” of any Person
means, without duplication, (a) all obligations of such Person for
borrowed money or with respect to deposits or advances of any kind, (b) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person upon which interest
charges are customarily paid, (d) all obligations of such Person under
conditional sale or other title retention agreements relating to property
acquired by such Person, (e) all obligations of such Person in respect of
the deferred purchase price of property or services (excluding current accounts
payable incurred in the ordinary course of business), (f) all Indebtedness
of others secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on property
owned or acquired by such Person, whether or not the Indebtedness secured
thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all
obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty, (j) all obligations,
contingent or otherwise, of such Person in respect of bankers’ acceptances, (k) obligations
under any liquidated earn-out and (1) obligations of such Person to
purchase securities or other property arising out of or in connection with the
sale of the same or substantially similar securities or property or any other
Off-Balance Sheet Liability. The Indebtedness of any Person shall include the
Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness provide that such
Person is not liable therefor.

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

“Intercreditor
Agreement” means that certain Amended and Restated
Subordination and Intercreditor Agreement dated as of the Effective Date among
the Lender, EGL MEZZANINE LLC, a Delaware limited liability company, and each
of the Borrowers.

 

“Interest
Election Request” means a request by the Borrower Representative to
convert or continue a Revolving Borrowing in accordance with Section 2.07.

 

“Interest
Expense” means, with reference to any period, the interest
expense (including that attributable to Capital Lease Obligations) of the
Company and its Subsidiaries for such period with respect to all outstanding
Indebtedness of the Company and its Subsidiaries (including all commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing and net costs under Swap Agreements in respect of
interest rates to the extent such net costs are allocable to such period in
accordance with GAAP), calculated on a consolidated basis for the Company and
its Subsidiaries for such period in accordance with GAAP.

 

“Interest
Payment Date” means (a) with respect to any CBFR Loan, the
first day Business Day of each calendar month and the Maturity Date, (b) with
respect to any Eurodollar Loan, the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, and (c) the Maturity
Date.

 

“Interest
Period” means (a) with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two or three thereafter,
as the Borrower Representative may elect; provided, that (i) if
any Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless, in the
case of a Eurodollar Borrowing only, such next succeeding Business Day would
fall in the next calendar month, in which case such Interest Period shall end
on the next preceding Business Day and (ii) any Interest Period pertaining
to a Eurodollar Borrowing that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the

 

9

 

last
Business Day of the’ last calendar month of such Interest Period. For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall
be the effective date of the most recent conversion or continuation of such
Borrowing.

 

“Inventory”
has the meaning assigned to such term in the Security Agreement.

 

“Joinder
Agreement” has the meaning assigned to such term in Section 5.13.

 

“LC
Collateral Account” has the meaning assigned to such term in Section 2.05(h).

 

“LC
Disbursement” means a payment made by the Lender pursuant to a Letter of
Credit.

 

“LC
Exposure” means, at any time, the Standby LC Exposure.

 

“Lender”
means JPMorgan Chase Bank, N.A.

 

“Letter
of Credit” means any letter of credit issued pursuant to this Agreement.

 

“Leverage
Ratio” means, on any date, the ratio of (a) an amount equal to (i) Funded
Debt of the Borrowers and any Subsidiaries on such date to (b) EBITDA of
the Borrowers and any Subsidiaries for the period of four consecutive fiscal
quarters ended on such date (or, if such date is not the last day of a fiscal
quarter, ended on the last day of the fiscal quarter most recently ended prior
to such date) provided that solely for purposes of Section 6.12, to
the extent the Borrowers or any Subsidiary makes any acquisition permitted
pursuant to Section 6.04 or disposition of assets outside the ordinary
course of business that is permitted by Section 6.03 during the period of
four fiscal quarters of the Borrowers most recently ended, the Leverage Ratio
shall be calculated after giving pro forma effect thereto (calculated in
accordance with subsections (a) and (b) of this definition), as if
such acquisition or such disposition (and any related incurrence, repayment or
assumption of Indebtedness) had occurred in the first day of such four quarter
period.

 

“LIBO
Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, the rate appearing on Reuters Screen LIBOR01 Page (or on any
successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Lender from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period, as the rate for dollar deposits with a maturity
comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the “LIBO Rate” with respect
to such Eurodollar Borrowing for such Interest Period shall be the rate at
which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Lender in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period.

 

“Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of
such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase
option, call or similar right of a third party with respect to such securities.

 

“Loan
Documents” means this Agreement, any promissory notes issued pursuant to
the Agreement, any Letter of Credit applications, the Collateral Documents,
each Loan Guaranty, the Intercreditor Agreement and all other agreements,
instruments, documents and certificates identified in Section 4.01 executed
and delivered to, or in favor of, the Lender and including all other pledges,
powers of attorney, consents, assignments, contracts, notices, letter of credit
agreements and all other written matter whether heretofore, now or hereafter
executed by or on behalf of any Loan Party, or any employee of any Loan Party,
and delivered to the Lender in connection with the Agreement or the
transactions contemplated thereby. Any reference in the Agreement or any other
Loan Document to a Loan Document shall include all appendices, exhibits or
schedules thereto, and all amendments, restatements,

 

10

 

supplements
or other modifications thereto, and shall refer to the Agreement or such Loan
Document as the same may be in effect at any and all times such reference
becomes operative.

 

“Loan
Guarantor” means each Loan Party.

 

“Loan
Guaranty” means Article IX of this Agreement.

 

“Loan
Parties” means the Borrowers and any of the Borrowers’ domestic
Subsidiaries and any other Person who becomes a party to this Agreement
pursuant to a Joinder Agreement and their successors and assigns.

 

“Loans”
means the loans and advances made by the Lender pursuant to this Agreement,
including Protective Advances.

 

“Material
Adverse Effect” means a material adverse effect on (a) the business,
assets, operations or financial condition of the Company and its Subsidiaries
taken as a whole, (b) the ability of any Loan Party to perform any of its
obligations under the Loan Documents to which it is a party, (c) the
Collateral, or the Lender’s Liens (on behalf of itself and the Lender) on the
Collateral or the priority of such Liens, or (d) the rights of or benefits
available to the Lender thereunder.

 

“Material
Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one
or more of the Company and its Subsidiaries in an aggregate principal amount
exceeding $500,000. For purposes of determining Material Indebtedness, the “obligations”
of any Borrower or any Subsidiary in respect of any Swap Agreement at any time
shall be the maximum aggregate amount (giving effect to any netting agreements)
that such Borrower or such Subsidiary would be required to pay if such Swap Agreement
were terminated at such time.

 

“Maturity
Date” means July 31, 2010 or any earlier date on which the Commitments
are reduced to zero or otherwise terminated pursuant to the terms hereof.

 

“Maximum
Liability” has the meaning assigned to such term in Section 9.10.

 

“Mezzanine
Loan Documents” shall mean that certain Amended and Restated Loan and
Security Agreement dated as of June 2, 2009 by and among the Borrowers and
EGL Mezzanine LLC as any of the same may be amended, restated, supplemented or
otherwise modified from time to time in accordance with the terms of the
Intercreditor Agreement.

 

“Moody’s”
means Moody’s Investors Service, Inc.

 

“Multiemployer
Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

 

“Net
Income” means, for any period, the consolidated net income (or loss) of the
Borrowers and their Subsidiaries, determined on a consolidated basis in
accordance with GAAP; provided that there shall be excluded (a) the
income (or deficit) of any Person accrued prior to the date it becomes a
Subsidiary or is merged into or consolidated with the Borrowers or any of their
Subsidiaries, (b) the income (or deficit) of any Person (other than a
Subsidiary) in which the Borrowers or any of their Subsidiaries has an
ownership interest, except to the extent that any such income is actually
received by a Borrower or Subsidiary in the form of dividends or similar
distributions and (c) the undistributed earnings of any Subsidiary to the
extent that the declaration or payment of dividends or similar distributions by
such Subsidiary is not at the time permitted by the terms of any contractual
obligation (other than under any Loan Document) or Requirement of Law
applicable to such Subsidiary.

 

“Net
Proceeds” means, with respect to any event, (a) the cash proceeds
received in respect of such event including (i) any cash received in
respect of any non-cash proceeds (including any cash payments received by way
of deferred payment of principal pursuant to a note or installment receivable
or purchase price adjustment receivable or otherwise, but excluding any
interest payments), but only as and when received, (ii) in the case of a

 

11

 

casualty,
insurance proceeds and (iii) in the case of a condemnation or similar
event, condemnation awards and similar payments, net of (b) the sum of (i) all
reasonable fees and out-of-pocket expenses paid to third parties (other than
Affiliates) in connection with such event, (ii) in the case of a sale,
transfer or other disposition of an asset (including pursuant to a sale and
leaseback transaction or a casualty or a condemnation or similar proceeding),
the amount of all payments required to be made as a result of such event to
repay Indebtedness (other than Loans) secured by such asset or otherwise
subject to mandatory prepayment as a result of such event and (iii) the
amount of all taxes paid (or reasonably estimated to be payable) and the amount
of any reserves established to fund contingent liabilities reasonably estimated
to be payable, in each case during the year that such event occurred or the
next succeeding year and that are directly attributable to such event (as
determined reasonably and in good faith by a Financial Officer).

 

“Net
Worth” means at any time the consolidated stockholders’ equity of the
Borrowers and their Subsidiaries calculated on a consolidated basis as of such
time.

 

“Non-Paying
Guarantor” has the meaning assigned to such term in Section 9.11. 

 

“Obligated
Party” has the meaning assigned to such term in Section 9.02.

 

“Obligations”
means all unpaid principal of and accrued and unpaid interest on the Loans, all
LC Exposure, all accrued and unpaid fees and all expenses, reimbursements,
indemnities and other obligations of the Loan Parties to the Lender or any
indemnified party arising under the Loan Documents. Obligations shall also
include (i) all Banking Services Obligations; and (ii) all Swap
Obligations owing to the Lender or its Affiliates.

 

“Off-Balance
Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by
such Person, (b) any indebtedness, liability or obligation under any sale
and leaseback transaction which is not a Capital Lease Obligation, or (c) any
indebtedness, liability or obligation under any so-called “synthetic lease”
transaction entered into by such Person, or (d) any indebtedness,
liability or obligation arising with respect to any other transaction which is
the functional equivalent of or takes the place of borrowing but which does not
constitute a liability on the balance sheets of such Person (other than
operating leases).

 

“Other
Taxes” means any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any
payment made hereunder or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement.

 

“Participant”
has the meaning set forth in Section 8.04.

 

“Paying
Guarantor” has the meaning assigned to such term in Section 9.11.

 

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

 

“Permitted
Acquisition” means (1) any Acquisition by any Loan Party which has a
purchase price (including any contingent earn out payments and other deferred
purchase price obligation) that does not exceed $1,000,000 in the aggregate;
provided that during any fiscal year, the aggregate amount of purchase price
for all such Acquisitions shall not exceed $3,000,000 and (2) any
Acquisition by any Loan Party in a transaction that satisfies each of the
following requirements:

 

(a)                                  such
Acquisition is not a hostile or contested acquisition;

 

(b)                                 the business
acquired in connection with such Acquisition is (i) located in the U.S., (ii) organized
under U.S. and applicable state laws, and (iii) not engaged, directly or
indirectly, in any line of business other than the businesses in which the Loan
Parties are engaged on the Closing Date and any business activities that are
substantially similar, related, or incidental thereto;

 

12

 

(c)                                  both before and
after giving effect to such Acquisition and the Loans (if any) requested to be
made in connection therewith, each of the representations and warranties in the
Loan Documents is true and correct (except (i) any such representation or
warranty which relates to a specified prior date and (ii) to the extent
the Lender have been notified in writing by the Loan Parties that any
representation or warranty is not correct and the Lender has explicitly waived
in writing compliance with such representation or warranty) and no Default
exists, will exist, or would result therefrom;

 

(d)                                 as soon as
available, but not less than fifteen (15) days prior to such Acquisition, the
Borrower Representative has provided the Lender (i) notice of such
Acquisition and (ii) a copy of all business and financial information
reasonably requested by the Lender including pro forma financial statements,
statements of cash flow, and Availability projections;

 

(e)                                  if requested by
Lender in its sole discretion, the Lender shall have conducted an audit and
field examination of such Accounts to its satisfaction;

 

(f)                                    if such
Acquisition is an acquisition of the Equity Interests of a Person, the
Acquisition is structured so that the acquired Person shall become a
Wholly-Owned Subsidiary of such Borrower and, a Loan Party pursuant to the
terms of this Agreement;

 

(g)                                 if such
Acquisition is an acquisition of assets, the Acquisition is structured so that
such Borrower shall acquire such assets;

 

(h)                                 if such
Acquisition is an acquisition of Equity Interests, such Acquisition will not
result in any violation of Regulation U;

 

(i)                                     no Loan Party shall,
as a result of or in connection with any such Acquisition, assume or incur any
direct or contingent liabilities (whether relating to environmental, tax,
litigation, or other matters) that could have a Material Adverse Effect;

 

(j)                                     in connection
with an Acquisition of the Equity Interests of any Person, all Liens on
property of such Person shall be terminated unless the Lender in its sole
discretion consents otherwise, and in connection with an Acquisition of the
assets of any Person, all Liens on such assets shall be terminated;

 

(k)                                  the Leverage
Ratio of the Borrowers and the target of such Acquisition on a pro-forma basis
shall be not be greater than 2.50 to 1.00 both immediately prior to and
following the Acquisition;

 

(l)                                     the target of
such Acquisition shall have EBITDA not less than 0.00 for the trailing twelve month
period from the date of the proposed Acquisition;

 

(m)                               the Borrower
Representative shall provide Lender with true, correct and complete copies of the
purchase agreement and any other documents requested by the Lender which are
ancillary thereto.

 

“Permitted
Discretion” means a determination made in good faith and in the exercise of
reasonable (from the perspective of a secured asset-based lender) business
judgment.

 

“Permitted
Encumbrances” means:

 

(a)                                  Liens imposed
by law for taxes that are not yet due or are being contested in compliance with
Section 5.04;

 

(b)                                 carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
imposed by law, arising in the ordinary course of business and securing
obligations that are not overdue by more than 30 days or are being contested in
compliance with Section 5.04;

 

13

 

(c)                                       pledges and
deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations;

 

(d)                                      deposits to
secure the performance of bids, trade contracts, leases, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;

 

(e)                                       judgment liens
in respect of judgments that do not constitute an Event of Default under clause
(k) of Article VII;

 

(f)                                         easements,
zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure
any monetary obligations and do not materially detract from the value of the
affected property or interfere with the ordinary conduct of business of any
Borrower or any Subsidiary;

 

(g)                                      Liens granted
pursuant to the Mezzanine Loan Documents provided that such Liens are
subordinated pursuant to the terms of the Intercreditor Agreement;

 

(h)                                      Liens granted
to secure Indebtedness permitted by Section 6.01(c);

 

(i)                                          precautionary
UCC financing statements regarding operating leases or with respect to any
inventory held on consignment to any Loan Party in the ordinary course of
business; and

 

(j)                                          Liens
specifically permitted by the Lender in writing.

 

provided that the term “Permitted Encumbrances”
shall not include any Lien securing Indebtedness.

 

“Permitted Investments” means:

 

(a)                                  direct obligations of, or
obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United
States of America), in each case maturing within one year from the date of
acquisition thereof;

 

(b)                                 investments in commercial
paper maturing within 270 days from the date of acquisition thereof and having,
at such date of acquisition, the highest credit rating obtainable from S&P
or from Moody’s;

 

(c)                                  investments in certificates
of deposit, banker’s acceptances and time deposits maturing within 180 days, from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or
offered by, any domestic office of any commercial bank organized under the laws
of the United States of America or any State thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000;

 

(d)                                 fully
collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial
institution satisfying the criteria described in clause (c) above; and

 

(e)                                  money market
funds that (i) comply with the criteria set forth in Securities and
Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are
rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of
at least $5,000,000,000.

 

“Person” means any natural person,
corporation, limited liability company, trust, joint venture, association,
company, partnership, Governmental Authority or other entity.

 

14

 

“Plan”
means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code
or Section 302 of ERISA, and in respect of which any Borrower or any ERISA
Affiliate is (or, if such plan were terminated, would under Section 4069
of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

 

“Prepayment
Event” means:

 

(a)                                  any sale, transfer
or other disposition (including pursuant to a sale and leaseback transaction)
of any property or asset of any Loan Party, other than dispositions described
in Section 6.05(a); or

 

(b)                                 any casualty or
other insured damage to, or any taking under power of eminent domain or by
condemnation or similar proceeding of, any property or asset of any Loan Party;
or

 

(c)                                  the issuance by
the Company of any Equity Interests, or the receipt by the Company of any
capital contribution;

 

(d)                                 the incurrence
by any Loan Party of any Indebtedness, other than Indebtedness permitted under Section 6.01;
or

 

(e)                                  a Qualified
IPO.

 

“Prime
Rate” means the rate of interest per annum publicly announced from time to
time by the Lender as its prime rate; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as
being effective.

 

“Projections”
has the meaning assigned to such term in Section 5.01(f).

 

“Protective
Advance” has the meaning assigned to such term in Section 2.04.

 

“Qualified
IPO” means the closing of a firmly underwritten initial public offering
pursuant to an effective registration statement under the Securities Act of
1933, as amended, covering the offer and sale of shares of capital stock for
the, account of Echo in which the gross proceeds to Echo (before underwriting
discounts, commissions and fees) are at least $25,000,000.

 

“Related
Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and
advisors of such Person and such Person’s Affiliates.

 

“Report”
means reports prepared by the Lender or another Person showing the results of
appraisals, field examinations or audits pertaining to the Borrowers’ assets
from information furnished by or on behalf of the Borrowers, after the Lender
has exercised its rights of inspection pursuant to this Agreement.

 

“Requirement
of Law” means, as to any Person, the Certificate of Incorporation and
By-Laws or other organizational or governing documents of such Person, and any
law, treaty, rule or regulation or determination of an arbitrator or a
court or other Governmental Authority, in each case applicable to or binding
upon such Person or any of its property or to which such Person or any of its
property is subject.

 

“Reserves”
means any and all reserves which the Lender deems necessary, in its Permitted
Discretion, to maintain (including, without limitation, an availability
reserve, reserves for accrued and unpaid interest on the Secured Obligations,
Banking Services Reserves, volatility reserves, reserves for rent at locations
leased by any Loan Party and for consignee’s, warehousemen’s and bailee’s
charges, reserves for dilution of Accounts, reserves for Inventory shrinkage,
reserves for customs charges and shipping charges related to any Inventory in
transit, reserves for Swap Obligations, reserves for contingent liabilities of
any Loan Party, reserves for uninsured losses of any Loan Party, reserves for
uninsured, underinsured, unindemnified or under indemnified

 

15

 

liabilities
or potential liabilities with respect to any litigation and reserves for taxes,
fees, assessments, and other governmental charges) with respect to the
Collateral or any Loan Party.

 

“Restricted
Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the
Company or any Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any such Equity Interests in the Company or any option, warrant or other right
to acquire any such Equity Interests in the Company.

 

“Revolving
Commitment” means the commitment of the Lender to make Revolving Loans and
Letters of Credit hereunder. The initial amount of the Lender’s Revolving
Commitment is $20,000,000.

 

“Revolving
Exposure” means, at any time, the sum of the outstanding principal amount
of Revolving Loans and LC Exposure at such time.

 

“Revolving
Loan” means a Loan made pursuant to Section 2.01(a).

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw
Hill Companies, Inc. 

 

“Secured
Obligations” means all Obligations, together with all (i) Banking
Services Obligations and (ii) Swap Obligations owing to the Lender or its
Affiliates.

 

“Security
Agreement” means that certain Pledge and Security Agreement, dated as of
the date hereof, between the Loan Parties and the Lender, and any other pledge
or security agreement entered into, after the date of this Agreement by any
other Loan Party (as required by this Agreement or any other Loan Document), or
any other Person, as the same may be amended, restated or otherwise modified
from time to time.

 

“Standby
LC Exposure” means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding standby Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements relating to standby Letters of Credit
that have not yet been reimbursed by or on behalf of the Borrowers at such
time.

 

“Statutory
Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus
the aggregate of the maximum reserve percentages (including any marginal,
special, emergency or supplemental reserves) expressed as a decimal established
by the Board to which the Lender is subject with respect to the Adjusted LIBO
Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall
include those imposed pursuant to such Regulation D. Eurodollar Loans shall be
deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such Regulation D
or any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

 

“Subordinated
Indebtedness” of a Person means any Indebtedness of such Person the payment
of which is subordinated to payment of the Obligations on terms and conditions
no less favorable to the Lender than those contained in Intercreditor Agreement.

 

“subsidiary”
means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity
the accounts of which would be consolidated with those of the parent in the
parent’s consolidated financial statements if such financial statements were
prepared in accordance with GAAP as of such date, as well as any other
corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing
more than 50% of the equity or more than 50% of the ordinary voting power or,
in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is,
as of such date, otherwise

 

16

 

Controlled,
by the parent or one or more subsidiaries of the parent or by the parent and
one or more subsidiaries of the parent.

 

“Subsidiary”
means any direct or indirect subsidiary of the Company or a Loan Party, as applicable.

 

“Swap
Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by
reference to, one or more rates, currencies, commodities, equity or debt
instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no
phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of the Borrowers or the Subsidiaries shall be a Swap Agreement.

 

“Swap
Obligations” of a Person means any and all obligations of such Person,
whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor), under (a) any and all Swap Agreements, and
(b) any and all cancellations, buy backs, reversals, terminations or
assignments of any Swap Agreement transaction.

 

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

 

“Transactions”
means the execution, delivery and performance by the Borrowers of this
Agreement, the borrowing of Loans and other credit extensions, the use of the
proceeds thereof and the issuance of Letters of Credit hereunder.

 

“Type”,
when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted LIBO Rate or the CB Floating Rate.

 

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

 

“Un
liquidated Obligations” means, at any time, any Secured Obligations (or
portion thereof) that are contingent in nature or unliquidated at such time,
including any Secured Obligation that is: (i) an obligation to reimburse a bank
for drawings not yet made under a letter of credit issued by it; (ii) any other
obligation (including any guarantee) that is contingent in nature at such time;
or (iii) an obligation to provide collateral to secure any of the foregoing
types of obligations.

 

“Withdrawal
Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are
defined in Part I of Subtitle E of Title IV of ERISA.

 

SECTION
1.02. Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving
Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g.,
a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred
to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

 

SECTION
1.03. Terms Generally. The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”.
Unless the context requires otherwise (a) any definition of or reference to

 

17

 

any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any
Person shall be construed to include such Person’s successors and assigns, (c) the
words “herein”, “hereof’ and “hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement and (e) the words “asset” and “property” shall
be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

SECTION
1.04. Accounting Terms; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that, if
the Borrower Representative notifies the Lender that the Borrowers request an
amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Lender notifies the Borrower
Representative that the Lender request an amendment to any provision hereof for
such purpose), regardless of whether any such notice is given before or after
such change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.

 

ARTICLE II

 

The Credits

 

SECTION
2.01. Commitment. Subject to the terms and conditions set forth herein,
the Lender agrees to make Revolving Loans to the Borrowers from time to time
during the Availability Period in an aggregate principal amount that will not
result in (i) the Revolving Exposure exceeding the lesser of (x) the Revolving
Commitment or (y) the Borrowing Base, subject to the Lender’s authority, in its
sole discretion, to make Protective Advances pursuant to the terms of Section 2.04.
Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrowers may borrow, prepay and reborrow Revolving Loans.

 

SECTION
2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as
part of a Borrowing consisting of Loans of the same Class and Type. Any
Protective Advance shall be made in accordance with the procedures set forth in
Section 2.04.

 

(b)             Subject to Section
2.13, each Revolving Borrowing shall be comprised entirely of CBFR Loans or
Eurodollar Loans as the Borrower Representative may request in accordance
herewith, provided that all Borrowings made on the Effective Date must be made
as CBFR Borrowings. The Lender at its option may make any Eurodollar Loan by
causing any domestic or foreign branch or Affiliate of the Lender to make such
Loan; provided that any exercise of such option shall not affect the
obligation of the Borrowers to repay such Loan in accordance with the terms of
this Agreement.

 

(c)             At the
commencement of each Interest Period for any Eurodollar Revolving Borrowing,
such Borrowing shall be in an aggregate amount that is an integral multiple of
$100,000 and not less than $100,000. CBFR Revolving Borrowings may be in any
amount. Borrowings of more than one Type and Class may be outstanding at the
same time; provided that there shall not at any time be more than a
total of 5 Eurodollar Revolving Borrowings outstanding.

 

(d)             Notwithstanding
any other provision of this Agreement, the Borrower Representative shall not be
entitled to request, or to elect to convert or continue, any Borrowing if the
Interest Period requested with respect thereto would end after the Maturity
Date.

 

18

 

SECTION
2.03. Borrowing Procedures; Requests for Revolving Borrowings. To
request a Revolving Borrowing, the Borrower Representative shall notify the
Lender of such request by telephone (a) in the case of a Eurodollar Borrowing,
not later than 10:00 a.m., Chicago time, three Business Days before the date of
the proposed Borrowing or (b) in the case of a CBFR Borrowing, not later than
noon, Chicago time, on the date of the proposed Borrowing; provided that
any such notice of a CBFR Revolving Borrowing to finance the reimbursement of
an LC Disbursement as contemplated by Section 2.05(e) may be given not later
than 9:00 a.m., Chicago time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or facsimile to the Lender of a written Borrowing
Request in a form approved by the Lender and signed by the Borrower
Representative. Each such telephonic and written Borrowing Request shall
specify the following information in compliance with Section 2.01:

 

(i)                                    the name of the
applicable Borrower;

 

(ii)                                 the aggregate
amount of the requested Borrowing and a breakdown of the separate wires
comprising such Borrowing;

 

(iii)                             the date of
such Borrowing, which shall be a Business Day;

 

(iv)                              whether such
Borrowing is to be a CBFR Borrowing or a Eurodollar Borrowing; and

 

(v)                                 in the case of
a Eurodollar Borrowing, the initial Interest Period to be applicable thereto,
which shall be a period contemplated by the definition of the term “Interest
Period.”

 

If
no election as to the Type of Revolving Borrowing is specified, then the
requested Revolving Borrowing shall be a CBFR Borrowing. If no Interest Period
is specified with respect to any requested Eurodollar Revolving Borrowing, then
the applicable Borrowers shall be deemed to have selected an Interest Period of
one month’s duration. Promptly following receipt of a Borrowing Request in
accordance with this Section, the Lender shall advise each Lender of the
details thereof and of the amount of such Lender’s Loan to be made as part of
the requested Borrowing.

 

SECTION
2.04. Protective Advances. Subject to the limitations set forth below,
the Lender is authorized by the Borrowers, from time to time in the Lender’s
sole discretion (but shall have absolutely no obligation to), to make Loans to
the Borrowers, which the Lender, in its Permitted Discretion, deems necessary
or desirable (i) to preserve or protect the Collateral, or any portion thereof,
(ii) to enhance the likelihood of, or maximize the amount of, repayment of the
Loans and other Obligations, or (iii) to pay any other amount chargeable to or
required to be paid by the Borrowers pursuant to the terms of this Agreement,
including payments of principal, interest, LC Disbursements, fees, premiums,
reimbursable expenses (including costs, fees, and expenses as described in Section
8.03) and other sums payable under the Loan Documents (any of such Loans are
herein referred to as “Protective Advances”); provided that, the
aggregate amount of Protective Advances outstanding at any time shall not at
any time exceed $500,000; provided further that, the aggregate amount of
outstanding Protective Advances plus the aggregate Revolving Exposure shall not
exceed the aggregate Revolving Commitment. Protective Advances may be made even
if the conditions precedent set forth in Section 4.02 have not been satisfied.
The Protective Advances shall be secured by the Liens in favor of the Lender in
and to the Collateral and shall constitute Obligations hereunder. All
Protective Advances shall be CBFR Borrowings.

 

SECTION
2.05. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrower Representative may request the
issuance of Letters of Credit for its own account or for the account of another
Borrower, in a form reasonably acceptable to the Lender at any time and from
time to time during the Availability Period. In the event of any inconsistency
between the terms and conditions of this Agreement and the terms and conditions
of any form of letter of credit application or other agreement submitted by the
Borrowers to, or entered into by the Borrowers with, the Lender relating to any
Letter of Credit, the terms and conditions of this Agreement shall control.

 

19

 

(b)           Notice of
Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the
issuance of a Letter of Credit (or the amendment, renewal or extension of an
outstanding Letter of Credit), the Borrower Representative shall hand deliver
or facsimile (or transmit by electronic communication, if arrangements for
doing so have been approved by the Lender) to the Lender (prior to 10:00 am,
Chicago time, at least three Business Days prior to the requested date of
issuance, amendment, renewal or extension) a notice requesting the issuance of
a Letter of Credit, or identifying the Letter of Credit to be amended, renewed
or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section),
the amount of such Letter of Credit, the name and address of the beneficiary
thereof and such other information as shall be necessary to prepare, amend,
renew or extend such Letter of Credit. If requested by the Lender, the
applicable Borrower also shall submit a letter of credit application on the
Lender’s standard form in connection with any request for a Letter of Credit. A
Letter of Credit shall be issued, amended, renewed or extended only if (and
upon issuance, amendment, renewal or extension of each Letter of Credit the
Borrowers shall be deemed to represent and warrant that), after giving effect
to such issuance, amendment, renewal or extension (i) the LC Exposure shall not
exceed $1,500,000 and (ii) the Standby LC Exposure shall not exceed $1,500,000,
and (iii) the total Revolving Exposure shall not exceed the lesser of the total
Revolving Commitment and the Borrowing Base.

 

(c)           Expiration Date.
Each Letter of Credit shall expire at or prior to the close of business on the
earlier of (i) the date one year after the date of the issuance of such Letter
of Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension) and (ii) the date that is five Business Days prior
to the Maturity Date.

 

(d)           Reimbursement.
If the Lender shall make any LC Disbursement in respect of a Letter of Credit,
the Borrowers shall reimburse such LC Disbursement by paying to the Lender an
amount equal to such LC Disbursement not later than 11:00 a.m., Chicago time,
on the date that such LC Disbursement is made, if the Borrower Representative
shall have received notice of such LC Disbursement prior to 9:00 a.m., Chicago
time, on such date, or, if such notice has not been received by the Borrower Representative
prior to such time on such date, then not later than 11:00 a.m., Chicago time,
on (i) the Business Day that the Borrower Representative receives such notice,
if such notice is received prior to 10:00 a.m., Chicago time, on the day of
receipt, or (ii) the Business Day immediately following the day that the
Borrower receives such notice, if such notice is not received prior to such
time on the day of receipt; provided that the Borrowers may, subject to
the conditions to borrowing set forth herein, request in accordance with Section
2.03 that such payment be financed with a CBFR Revolving Borrowing in an
equivalent amount and, to the extent so financed, the Borrowers’ obligation to
make such payment shall be discharged and replaced by the resulting CBFR
Revolving Borrowing.

 

(e)           Obligations
Absolute. The Borrowers’ joint and several obligation to reimburse LC
Disbursements as provided in paragraph (d) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by the Lender under a Letter of Credit
against presentation of a draft or other document that does not comply with the
terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of,
or provide a right of setoff against, the Borrowers’ obligations hereunder.
Neither the Lender nor any of its Related Parties, shall have any liability or
responsibility by reason of or in connection with the issuance or transfer of
any Letter of Credit or any payment or failure to make any payment thereunder
(irrespective of any of the circumstances referred to in the preceding
sentence), or any error, omission, interruption, loss or delay in transmission
or delivery of any draft, notice or other communication under or relating to
any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence
arising from causes beyond the control of the Lender; provided that the
foregoing shall not be construed to excuse the Lender from liability to the
Borrowers to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrowers to the
extent permitted by applicable law) suffered by any Borrower that are caused by
the Lender’s failure to exercise care when determining

 

20

 

whether
drafts and other documents presented under a Letter of Credit comply with the
terms thereof. The parties hereto expressly agree that, in the absence of gross
negligence or willful misconduct on the part of the Lender (as finally
determined by a court of competent jurisdiction), the Lender shall be deemed to
have exercised care in each such determination. In furtherance of the foregoing
and without limiting the generality thereof, the parties agree that, with
respect to documents presented which appear on their face to be in substantial
compliance with the terms of a Letter of Credit, the Lender may, in its sole
discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such documents
if such documents are not in strict compliance with the terms of such Letter of
Credit.

 

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

 

(g)           Interim Interest.
If the Lender shall make any LC Disbursement, then, unless the Borrowers shall
reimburse such LC Disbursement in full on the date such LC Disbursement is
made, the unpaid amount thereof shall bear interest, for each day from and
including the date such LC Disbursement is made to but excluding the date that
the Borrowers reimburse such LC Disbursement, at the rate per annum then
applicable to CBFR Revolving Loans; provided that, if the Borrowers fail
to reimburse such LC Disbursement when due pursuant to paragraph (e) of this
Section, then Section 2.12(d) shall apply. Interest accrued pursuant to this
paragraph shall be for the account of the Lender.

 

(h)           Cash
Collateralization. If any Event of Default shall occur and be continuing,
on the Business Day that the Borrower Representative receives notice from the
Lender demanding the deposit of cash collateral pursuant to this paragraph, the
Borrowers shall deposit in an account with the Lender, in the name and for the
benefit of the Lender (the “LC Collateral Account”), an amount in cash
equal to 110% of the LC Exposure as of such date plus accrued and unpaid
interest thereon; provided that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become
immediately due and payable, without demand or other notice of any kind, upon
the occurrence of any Event of Default with respect to any Borrower described
in clause (h) or (i) of Article VII. Such deposit shall be held by the Lender
as collateral for the payment and performance of the Secured Obligations. The
Lender shall have exclusive dominion and control, including the exclusive right
of withdrawal, over such account and the Borrowers hereby grant the Lender a
security interest in the LC Collateral Account. Other than any interest earned
on the investment of such deposits, which investments shall be made at the
option and sole discretion of the Lender and at the Borrowers’ risk and
expense, such deposits shall not bear interest. Interest or profits, if any, on
such investments shall accumulate in such account. Moneys in such account shall
be applied by the Lender for LC Disbursements for which it has not been
reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrowers for the LC
Exposure at such time or, if the maturity of the Loans has been accelerated, be
applied to satisfy other Secured Obligations. If the Borrowers are required to
provide an amount of cash collateral hereunder as a result of the occurrence of
an Event of Default, such amount (to the extent not applied as aforesaid) shall
be returned to the Borrowers within three Business Days after all such Defaults
have been cured or waived.

 

SECTION
2.06. Funding of Borrowings. The Lender shall make each Loan to be made
by it hereunder on the proposed date thereof available to the Borrowers by
promptly crediting the amounts in immediately available funds, to the Funding
Account(s); provided that CBFR Revolving Loans made to finance the
reimbursement of an LC Disbursement as provided in Section 2.05(e) or a
Protective Advance shall be retained by the Lender.

 

SECTION
2.07. Interest Elections. (a) Each Revolving Borrowing initially shall
be of the Type specified in the applicable Borrowing Request and, in the case
of a Eurodollar Revolving Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. Thereafter, the Borrower Representative
may elect

 

21

 

to
convert such Borrowing to a different Type or to continue such Borrowing and,
in the case of a Eurodollar Revolving Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Borrower Representative may
elect different options with respect to different portions of the affected
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Protective Advances, which
may not be converted or continued.

 

(b)          To make an election
pursuant to this Section, the Borrower Representative shall notify the Lender
of such election by telephone by the time that a Borrowing Request would be
required under Section 2.03 if the Borrowers were requesting a Revolving
Borrowing of the Type resulting from such election to be made on the effective
date of such election. Each such telephonic Interest Election Request shall be
irrevocable and shall be confirmed promptly by hand delivery or facsimile to
the Lender of a written Interest Election Request in a form approved by the
Lender and signed by the Borrower Representative.

 

(c)          Each telephonic and
written Interest Election Request shall specify the following information in
compliance with Section 2.02:

 

(i)            the Borrower and the Borrowing to which such Interest
Election Request applies and, if different options are being elected with
respect to different portions thereof, the portions thereof to be allocated to
each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting
Borrowing);

 

(ii)           the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;

 

(iii)          whether the resulting Borrowing is to be a CBFR Borrowing
or a Eurodollar Borrowing; and

 

(iv)          if the resulting Borrowing is a Eurodollar Borrowing, the
Interest Period to be applicable thereto after giving effect to such election,
which shall be a period contemplated by the definition of the term “Interest
Period”.

 

If
any such Interest Election Request requests a Eurodollar Borrowing but does not
specify an Interest Period, then the Borrowers shall be deemed to have selected
an Interest Period of one month’s duration.

 

(d)          If the Borrower
Representative fails to deliver a timely Interest Election Request with respect
to a Eurodollar Revolving Borrowing prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein,
at the end of such Interest Period such Borrowing shall be converted to a CBFR
Borrowing. Notwithstanding any contrary provision hereof, if a Default has
occurred and is continuing and the Lender so notifies the Borrower
Representative, then, so long as a Default is continuing (i) no outstanding
Revolving Borrowing may be converted to or continued as a Eurodollar Borrowing
and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted
to a CBFR Borrowing at the end of the Interest Period applicable thereto.

 

SECTION
2.08. Termination of Commitment. (a) Unless previously terminated, all
Commitments shall terminate on the Maturity Date.

 

(b)          The Borrowers may at
any time terminate the Commitment upon (i) the payment in full of all
outstanding Loans, together with accrued and unpaid interest thereon and on any
Letters of Credit, (ii) the cancellation and return of all outstanding Letters
of Credit (or alternatively, with respect to each such Letter of Credit, the
furnishing to the Lender of a cash deposit equal to 110% of the LC Exposure as
of such date), (iii) the payment in full of the accrued and unpaid fees,
including applicable Prepayment Fee (if any), and (iv) the payment in full of
all reimbursable expenses and other Obligations together with accrued and
unpaid interest thereon.

 

22

 

(c)           The Borrower
Representative shall notify the Lender of any election to terminate the Commitment
under paragraph (b) of this Section at least five Business Days prior to the
effective date of such termination, specifying such election and the effective
date thereof. Each notice delivered by the Borrower Representative pursuant to
this Section shall be irrevocable; provided that a notice of termination
of the Commitment delivered by the Borrower Representative may state that such
notice is conditioned upon the effectiveness of other credit facilities, in which
case such notice may be revoked by the Borrower Representative (by notice to
the Lender on or prior to the specified effective date) if such condition is
not satisfied. Any termination of the Commitment shall be permanent.

 

SECTION
2.09. Repayment and Amortization of Loans; Evidence of Debt. (a) The
Borrowers hereby unconditionally promise to pay (i) to the Lender for its
account the then unpaid principal amount of each Revolving Loan on the Maturity
Date and (ii) to the Lender the then unpaid amount of each Protective Advance
on the earlier of the Maturity Date and demand by the Lender.

 

(b)             The Lender shall
maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrowers to the Lender resulting from each
Loan made by the Lender, including the amounts of principal and interest
payable and paid to the Lender from time to time hereunder.

 

(c)             The Lender shall
maintain accounts in which it shall record (i) the amount of each Loan made
hereunder, the Class and Type thereof and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrowers to the Lender hereunder and (iii) the
amount of any sum received by the Lender hereunder.

 

(d)             The entries made
in the accounts maintained pursuant to paragraph (c) or (d) of this Section shall
be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of the Lender to
maintain such accounts or any error therein shall not in any manner affect the
obligation of the Borrowers to repay the Loans in accordance with the terms of
this Agreement.

 

(e)             The Lender may
request that Loans made by it be evidenced by a promissory note. In such event,
the Borrowers shall prepare, execute and deliver to the Lender a promissory
note payable to the order of the Lender (or, if requested by the Lender, to the
Lender and its registered assigns) and in a form approved by the Lender.
Thereafter, the Loans evidenced by such promissory note and interest thereon
shall at all times (including after assignment pursuant to Section 8.04) be
represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note,
to such payee and its registered assigns).

 

SECTION
2.10. Prepayment of Loans. (a) The Borrowers shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject
to prior notice in accordance with paragraph (f) of this Section.

 

(b)             In the event and
on such occasion that the total Revolving Exposure exceeds the lesser of (A) the
Revolving Commitment or (B) the Borrowing Base, the Borrowers shall prepay the
Revolving Loans and LC Exposure in an aggregate amount equal to such excess.

 

(c)             In the event and
on each occasion that any Net Proceeds are received by or on behalf of any Loan
Party in respect of any Prepayment Event, the Borrowers shall, immediately
after such Net Proceeds are received by any Loan Party, prepay the Obligations
as set forth in Section 2.10(e) below in an aggregate amount equal to 100% of
such Net Proceeds, provided that, in the case of any event described in
clause (a) or (b) of the definition of the term “Prepayment Event”, if the
Borrower Representative shall deliver to the Lender a certificate of a
Financial Officer to the effect that the Loan Parties intend to apply the Net
Proceeds from such event (or a portion thereof specified in such certificate),
within 180 days after receipt of such Net Proceeds, to acquire (or replace or
rebuild) real property, equipment or other tangible assets (excluding
inventory) to be used in the business of the Loan Parties, and certifying that
no Default has occurred and is continuing, then either (i) so long as full cash
dominion is not in effect, no prepayment shall be required pursuant to this
paragraph in respect of the Net Proceeds

 

23

 

specified
in such certificate or (ii) if full cash dominion is in effect, if the Net
Proceeds specified in such certificate are to be applied by (A) the Borrowers,
then such Net Proceeds shall be applied by the Lender to reduce the outstanding
principal balance of the Revolving Loans (without a permanent reduction of the
Revolving Commitment) and upon such application, the Lender shall establish a
Reserve against the Borrowing Base in an amount equal to the amount of such
proceeds so applied and (B) any Loan Party that is not a Borrower, then such
Net Proceeds shall be deposited in a cash collateral account and in either
case, thereafter, such funds shall be made available to the applicable Loan
Party as follows:

 

(1)             the Borrower Representative shall request a Revolving
Loan (specifying that the request is to use Net Proceeds pursuant to this
Section) or the applicable Loan Party shall request a release from the cash
collateral account be made in the amount needed;

 

(2)             so long as the conditions set forth in Section 4.02 have
been met, the Lender shall make such Revolving Loan or the Lender shall release
funds from the cash collateral account; and

 

(3)             in the case of Net Proceeds applied against the
Revolving Loan, the Reserve established with respect to such insurance proceeds
shall be reduced by the amount of such Revolving Loan;

 

provided that to the extent of any
such Net Proceeds therefrom that have not been so applied by the end of such
180 day period, at which time a prepayment shall be required in an amount equal
to such Net Proceeds that have not been so applied.

 

(d)             Intentionally
Omitted.

 

(e)             All such amounts
pursuant to Section 2.10(c) shall be applied, first to prepay any Protective Advances that may be
outstanding, pro rata, second
to prepay the Revolving Loans without a corresponding reduction in the
Revolving Commitment, unless such Prepayment Event results from a Qualified
IPO, in which case there the Revolving Commitment shall be reduced by the
amount of such prepayment, and to cash collateralize outstanding LC Exposure.
If the precise amount of insurance or condemnation proceeds allocable to
Inventory as compared to Equipment, Fixtures and real property is not otherwise
determined, the allocation and application of those proceeds shall be
determined by the Lender, in its Permitted Discretion.

 

(f)              The Borrower
Representative shall notify the Lender by telephone (confirmed by facsimile) of
any prepayment hereunder (i) in the case of prepayment of a Eurodollar
Revolving Borrowing, not later than 10:00 a.m., Chicago time, three Business
Days before the date of prepayment, or (ii) in the case of prepayment of a CBFR
Revolving Borrowing, not later than 10:00 a.m., Chicago time, on the date of
prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof
to be prepaid; provided that,
if a notice of prepayment is given in connection with a conditional notice of
termination of the Commitment as contemplated by Section 2.08, then such notice
of prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.08. Each partial prepayment of any Revolving
Borrowing shall be in an amount that would be permitted in the case of an
advance of a Revolving Borrowing of the same Type as provided in Section 2.02.
Prepayments shall be accompanied by accrued interest to the extent required by Section
2.12.

 

SECTION
2.11. Fees. (a) The Borrowers
agree to pay to the Lender a non-usage fee calculated on the average daily
unused portion of the Revolving Commitment at a rate of 0.15% per annum payable
in arrears within fifteen (15) days of each January, April, July and October following
such last day, commencing on the first such date to occur after’ the Effective
Date. The Lender may begin to accrue the foregoing fee on the Effective Date.

 

(b)             The Borrowers
agree to pay (i) to the Lender a letter of credit fee with respect to Letters
of Credit, at a per annum rate equal to 2.00% on the average daily amount of
the Lender’s LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Effective
Date to but excluding the later of the date on which the Lender’s Revolving
Commitment terminates and

 

24

 

the
date on which the Revolving Lender ceases to have any LC Exposure, and (ii) the
Lender’s standard fees with respect to the issuance, amendment, renewal or
extension of any Letter of Credit or processing of drawings thereunder. Letter
of credit fees accrued through and including the last day of each calendar
quarter shall be payable within fifteen (15) days of each January, April, July and
October following such last day, commencing on the first such date to occur
after the Effective Date; provided that all such fees shall be payable
on the date on which the Revolving Commitment terminates and any such fees
accruing after the date on which the Commitment terminates shall be payable on
demand. Any other fees payable to the Lender pursuant to this paragraph shall
be payable within 10 days after demand. All letter of credit fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed.

 

(c)             The Borrowers
agree to pay to the Lender a fee equal to the additional interest that the
Borrowers would have paid in respect of the Revolving Loans, at the CBFR plus
the Applicable Rate, as if each uncollected check had not been received in a
Borrower’s account and credited to such Borrower’s until the earlier of (i) the
date that such check is actually collected and (ii) three Business Days after
the Business Day that such check was actually received in such Borrower’s
account. Such fee will be payable monthly in arrears.

 

(d)             All fees payable
hereunder shall be paid on the dates due, in immediately available funds, to
the Lender. Fees paid shall not be refundable under any circumstances.

 

SECTION
2.12. Interest. (a) The Loans comprising each CBFR Borrowing shall bear
interest at the CB Floating Rate plus the Applicable Rate.

 

(b)             The Loans
comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable
Rate.

 

(c)             Each Protective
Advance shall bear interest at the CB Floating Rate plus the Applicable Rate
plus 2%.

 

(d)             Notwithstanding
the foregoing, during the occurrence and continuance of an Event of Default,
the Lender may, at its option, by notice to the Borrower Representative,
declare that (i) all Loans shall bear interest at 2% plus the rate otherwise
applicable to such Loans as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount outstanding hereunder, such amount
shall accrue at 2% plus the rate applicable to such fee or other obligation as
provided hereunder.

 

(e)             Accrued interest
on each Loan (for CBFR Loans, accrued through the last day of the prior
calendar month) shall be payable in arrears on each Interest Payment Date for
such Loan and upon termination of the Commitment; provided that (i) interest
accrued pursuant to paragraph (d) of this Section shall be payable on demand, (ii)
in the event of any repayment or prepayment of any Loan (other than a
prepayment of a CBFR Revolving Loan prior to the end of the Availability Period),
accrued interest on the principal amount repaid or prepaid shall be payable on
the date of such repayment or prepayment and (iii) in the event of any
conversion of any Eurodollar Loan prior to the end of the current Interest
Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.

 

(f)              All interest
hereunder shall be computed on the basis of a year of 360 days, and shall be
payable for the actual number of days elapsed. The applicable CB Floating Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Lender, and such
determination shall be conclusive absent manifest error.

 

SECTION
2.13. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

 

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

 

25

 

(b)           the Lender determines the Adjusted LIBO Rate or the LIBO
Rate, as applicable, for such Interest Period will not adequately and fairly
reflect the cost to the Lender of making or maintaining their Loans (or its
Loan) included in such Borrowing for such Interest Period;

 

then
the Lender shall give notice thereof to the Borrower Representative by
telephone or facsimile as promptly as practicable thereafter and, until the
Lender notifies the Borrower Representative that the circumstances giving rise
to such notice no longer exist, (i) any Interest Election Request that requests
the conversion of any Revolving Borrowing to, or continuation of any Revolving
Borrowing as, a Eurodollar Borrowing shall be ineffective, and (ii) if any
Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing
shall be made as a CBFR Borrowing (calculated with reference to the Prime Rate
in such circumstance).

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)             Failure or delay
on the part of the Lender to demand compensation pursuant to this Section shall
not constitute a waiver of the Lender’s right to demand such compensation; provided
that the Borrowers shall not be required to compensate a Lender pursuant to
this Section for any increased costs or reductions incurred more than 270 days
prior to the date that the Lender notifies the Borrower Representative of the
Change in Law giving rise to such increased costs or reductions and of the
Lender’s intention to claim compensation therefor; provided further
that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 270-day period referred to above shall be extended to
include the period of retroactive effect thereof.

 

SECTION
2.15. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b) the
conversion of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto or (c) the failure to borrow, convert, continue or
prepay any Eurodollar Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section
2.08(c) and is revoked in accordance therewith), then, in any such event, the
Borrowers shall compensate the Lender for the loss,

 

26

 

cost
and expense attributable to such event. In the case of a Eurodollar Loan, such
loss, cost or expense to the Lender shall be deemed to include an amount
determined by the Lender to be the excess, if any, of (i) the amount of
interest which would have accrued on the principal amount of such Loan had such
event not occurred, at the Adjusted LIBO Rate that would have been applicable
to such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period
for such Loan), over (ii) the amount of interest which would accrue on
such principal amount for such period at the interest rate which the Lender
would bid were it to bid, at the commencement of such, period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar
market. A certificate of the Lender setting forth any amount or amounts that
the Lender is entitled to receive pursuant to this Section shall be
delivered to the Borrower Representative and shall be conclusive absent
manifest error. The Borrowers shall pay the Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.

 

SECTION 2.16.
Taxes. (a) Any and all payments by or on account of any obligation
of the Borrowers hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrowers shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Lender receives an amount equal
to the sum it would have received had no such deductions been made, (ii) the
Borrowers shall make such deductions and (iii) the Borrowers shall pay the
full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

 

(b)                                           In addition,
the Borrowers shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

 

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

 

(d)                                           As soon as
practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrowers to a Governmental Authority, the Borrower Representative shall
deliver to the Lender the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Lender.

 

(e)                                            If the Lender
determines, in its sole discretion, that it has received a refund of any Taxes
or Other Taxes as to which it has been indemnified by the Borrowers or with
respect to which the Borrowers have paid additional amounts pursuant to this Section 2.16,
it shall pay over such refund to the Borrowers (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrowers under
this Section 2.16 with respect to the Taxes or Other Taxes giving rise to
such refund), net of all out-of-pocket expenses of the Lender and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided, that the Borrowers, upon the request of
the Lender, agrees to repay the amount paid over to the Borrowers (plus any
penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Lender in the event the Lender is required to repay such
refund to such Governmental Authority. This Section shall not be construed
to require the Lender to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Borrowers
or any other Person.

 

SECTION 2.17.
Payments Generally; Allocation of Proceeds. (a) The Borrowers shall
make each payment required to be made by them hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or of amounts payable
under Section 2.14, 2.15 or 2.16, or otherwise) prior to 2:00 p.m.,
Chicago

 

27

 

time,
on the date when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may, in the
discretion of the Lender, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such
payments shall be made to the Lender at its offices at 10 South Dearborn
Street, 22nd Floor, Chicago, Illinois. If any payment hereunder shall be due on
a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such extension.
All payments hereunder shall be made in dollars.

 

(b)                                      Any proceeds of
Collateral received by the Lender (i) not constituting either (A) a
specific payment of principal, interest, fees or other sum payable under the
Loan Documents (which shall be applied as specified by the Borrowers) or (B) a
mandatory prepayment (which shall be applied in accordance with Section 2.10)
or (ii) after an Event of Default has occurred and is continuing and the
Lender so elects such funds shall be applied ratably first, to pay any
fees, indemnities, or expense reimbursements including amounts then due to the
Lender from the Borrowers, second, to pay interest due in respect of the
Protective Advances, third, to pay the principal of the Protective
Advances, fourth, to pay interest then due and payable on the Loans
(other than the Protective Advances), fifth, to prepay principal on the
Loans (other than the Protective Advances) and unreimbursed LC Disbursements, sixth,
to pay an amount to the Lender equal to one hundred five percent (110%) of the
aggregate undrawn face amount of all outstanding Letters of Credit and the
aggregate amount of any unpaid LC Disbursements, to be held as cash collateral
for such Obligations, seventh, to payment of any amounts owing with
respect to Banking Services and Swap Obligations, and eighth, to the
payment of any other Secured Obligation due to the Lender by the Borrowers.
Notwithstanding anything to the contrary contained in this Agreement, unless so
directed by the Borrower Representative, or unless a Default is in existence,
the Lender shall not apply any payment which it receives to any Eurodollar Loan
of a Class, except (a) on the expiration date of the Interest Period
applicable to any such Eurodollar Loan or (b) in the event, and only to
the extent, that there are no outstanding CBFR Loans of the same Class and,
in any such event, the Borrowers shall pay the break funding payment required
in accordance with Section 2.15. The Lender shall have the continuing and
exclusive right to apply and reverse and reapply any and all such proceeds and
payments to any portion of the Secured Obligations.

 

(c)                                       At the election
of the Lender, all payments of principal, interest, LC Disbursements, fees,
premiums, reimbursable expenses (including, without limitation, all
reimbursement for fees and expenses pursuant to Section 8.03), and other
sums payable under the Loan Documents, may be paid from the proceeds of
Borrowings made hereunder whether made following a request by the Borrower
Representative pursuant to Section 2.03 or a deemed request as provided in
this Section or may be deducted from any deposit account of any Borrower
maintained with the Lender. Each Borrower hereby irrevocably authorizes (i) the
Lender to make a Borrowing for the purpose of paying each payment of principal,
interest and fees as it becomes due hereunder or any other amount due under the
Loan Documents and agrees that all such amounts charged shall constitute Loans
(but such a Borrowing may only constitute a Protective Advance if it is to reimburse
costs, fees and expenses as described in Section 8.03) and that all such
Borrowings shall be deemed to have been requested pursuant to Sections 2.03 or
2.04, as applicable and (ii) the Lender to charge any deposit account of
any Borrower maintained with the Lender for each payment of principal, interest
and fees as it becomes due hereunder or any other amount due under the Loan
Documents.

 

SECTION 2.18.
Indemnity for Returned Payments. If after receipt of any payment which
is applied to the payment of all or any part of the Obligations, the Lender is
for any reason compelled to surrender such payment or proceeds to any Person
because such payment or application of proceeds is invalidated, declared
fraudulent, set aside, determined to be void or voidable as a preference,
impermissible setoff, or a diversion of trust funds, or for any other reason,
then the Obligations or part thereof intended to be satisfied shall be revived
and continued and this Agreement shall continue in full force as if such payment
or proceeds had not been received by the Lender and the Borrowers shall be
liable to pay to the Lender. The provisions of this Section 2.18 shall be
and remain effective notwithstanding any contrary action which may have been
taken by the Lender in reliance upon such payment or application of proceeds.
The provisions of this Section 2.18 shall survive the termination of this
Agreement.

 

28

 

ARTICLE III

 

Representations and Warranties

 

Each
Loan Party represents and warrants to the Lender that:

 

SECTION 3.01.
Organization; Powers. Each of the Loan Parties and each of its
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is
required.

 

SECTION 3.02.
Authorization; Enforceability. The Transactions are within each Loan
Party’s organizational powers and have been duly authorized by all necessary
organizational actions and, if required, actions by equity holders. The Loan
Documents to which each Loan Party is a party have been duly executed and
delivered by such Loan Party and constitute a legal, valid and binding
obligation of such Loan Party, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

 

SECTION 3.03.
Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority, except such as have been obtained or
made and are in full force and effect and except for filings necessary to
perfect Liens created pursuant to the Loan Documents, (b) will not violate
any Requirement of Law applicable to any Loan Party or any of its Subsidiaries,
(c) will not violate or result in a default under any indenture, agreement
or other instrument binding upon any Loan Party or any of its Subsidiaries or
its assets, or give rise to a right thereunder to require any payment to be
made by any Loan Party or any of its Subsidiaries, and (d) will not result
in the creation or imposition of any Lien on any asset of any Loan Party or any
of its Subsidiaries, except Liens created pursuant to the Loan Documents.

 

SECTION 3.04.
Financial Condition; No Material Adverse Change. (a) The Company
has heretofore furnished to the Lender its consolidated balance sheet and
statements of income, stockholders equity and cash flows (i) as of and for
the fiscal year ended December 31, 2008, reported on by Ernst and Young,
independent public accountants, and (ii) as of and for the fiscal quarter
and the portion of the fiscal year ended March 31, 2009, certified by its
chief financial officer. Such financial statements present fairly, in all
material respects, the financial position and results of operations and cash
flows of the Company and its consolidated Subsidiaries as of such dates and for
such periods in accordance with GAAP, subject to year-end audit adjustments and
the absence of footnotes in the case of the statements referred to in clause (ii) above.

 

(b)                                 No event, change
or condition has occurred that has had, or could reasonably be expected to
have, a Material Adverse Effect, since December 31, 2008.

 

SECTION 3.05.
Properties. (a) As of the date of this Agreement, Schedule 3.05
sets forth the address of each parcel of real property that is owned or leased
by each Loan Party. Each of such leases and subleases is valid and enforceable
in accordance with its terms and is in full force and effect, and no default by
any party to any such lease or sublease exists. Each of the Loan Parties and
its Subsidiaries has good and indefeasible title to, or valid leasehold
interests in, all its real and personal property, free of all Liens other than
those permitted by Section 6.02.

 

(b)                                 Each Loan Party
and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, patents and other intellectual property necessary to its business
as currently conducted, a correct and complete list of which, as of the date of
this Agreement, is set forth on Schedule 3.05, and the use thereof by
the Loan Parties and its Subsidiaries does not infringe in any material respect
upon the rights of any other Person, and the Loan Parties’ rights thereto are
not subject to any licensing agreement or similar arrangement.

 

29

 

SECTION 3.06.
Litigation and Environmental Matters. (a) There are no actions,
suits or proceedings by or before any arbitrator or Governmental Authority
pending against or, to the knowledge of any Loan Party, threatened against or
affecting the Loan Parties or any of their Subsidiaries (i) as to which
there is a reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters) or (ii) that involve this Agreement or the Transactions.

 

(b)                                      Except for the
Disclosed Matters (i) no Loan Party nor any of its Subsidiaries has
received notice of any claim with respect to any Environmental Liability or
knows of any basis for any Environmental Liability and (ii) and except
with respect to any other matters that, individually or in the aggregate, could
not reasonably be expected to result in a Material Adverse Effect, no Loan Party
nor any of its Subsidiaries (1) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or
other approval required under any Environmental Law or (2) has become
subject to any Environmental Liability.

 

(c)                                       Since the date
of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially
increased the likelihood of, a Material Adverse Effect.

 

SECTION 3.07.
Compliance with Laws and Agreements. Each Loan Party and its
Subsidiaries is in compliance with all Requirements of Law applicable to it or
its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect. No Default has occurred and is continuing.

 

SECTION 3.08.
Investment Company Status. No Loan Party nor any of its Subsidiaries is
an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940.

 

SECTION 3.09.
Taxes. Each Loan Party and its Subsidiaries has timely filed or caused
to be filed all Tax returns and reports required to have been filed and has
paid or caused to be paid all Taxes required to have been paid by it, except
Taxes that are being contested in good faith by appropriate proceedings and for
which such Loan Party or such Subsidiary, as applicable, has set aside on its
books adequate reserves. No tax liens have been filed and no claims are being
asserted with respect to any such taxes.

 

SECTION 3.10.
ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability
is reasonably expected to occur, could reasonably be expected to result in a
Material Adverse Effect. The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the
date of the most recent financial statements reflecting such amounts, exceed by
more than $25,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $25,000 the
fair market value of the assets of all such underfunded Plans.

 

SECTION 3.11.
Disclosure. Each Borrower has disclosed to the Lender all agreements,
instruments and corporate or other restrictions to which it or any Subsidiary
is subject, and all other matters known to it, that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.
No reports, financial statements, certificates or other information furnished
by or on behalf of any Loan Party to the Lender or any Lender in connection
with the negotiation of this Agreement or any other Loan Document (as modified
or supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial
information, the Borrowers represent only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time
delivered and, if such projected financial information was delivered prior to
the Effective Date, as of the Effective Date.

 

30

 

SECTION 3.12.
Material Agreements. No Loan Party is in material default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in (i) any material agreement to which it is a party
or (ii) any agreement or instrument evidencing or governing Indebtedness.

 

SECTION 3.13.
Solvency. Immediately after the consummation of the Transactions to
occur on the Effective Date, (i) the fair value of the assets of each Loan
Party, at a fair valuation, will exceed its debts and liabilities,
subordinated, contingent or otherwise, (ii) the present fair saleable
value of the property of each Loan Party will be greater than the amount that
will be required to pay the probable liability of its debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (iii) each Loan Party will be
able to pay its debts and liabilities, subordinated, contingent or otherwise,
as such debts and liabilities become absolute and matured, and (iv) each
Loan Party will not have unreasonably small capital with which to conduct the
business in which it is engaged as such business is now conducted and is
proposed to be conducted after the Effective Date.

 

SECTION 3.14.
Insurance. Schedule 3.14 sets forth a description of all insurance
maintained by or on behalf of the Loan Parties and the Subsidiaries as of the
Effective Date. As of the Effective Date, all premiums in respect of such
insurance have been paid. The Borrowers believe that the insurance maintained
by or on behalf of the Company and its Subsidiaries is adequate.

 

SECTION 3.15.
Capitalization and Subsidiaries. Schedule 3.15 sets forth (a) a
correct and complete list of the name and relationship to the Company of each
and all of the Company’s Subsidiaries, (b) a true and complete listing of
each class of each of the Borrowers’ authorized Equity Interests, of which all
of such issued shares are validly issued, outstanding, fully paid and
non-assessable, and owned beneficially and of record by the Persons identified
on Schedule 3.15, and (c) the type of entity of the Company and
each of its Subsidiaries. All of the issued and outstanding Equity Interests
owned by any Loan Party has been (to the extent such concepts are relevant with
respect to such ownership interests) duly authorized and issued and is fully
paid and non-assessable

 

SECTION 3.16.
Security Interest in Collateral. The provisions of this Agreement and
the other Loan Documents create legal and valid Liens on all the Collateral in
favor of the Lender, and such Liens constitute perfected and continuing Liens
on the Collateral, securing the Obligations, enforceable against the applicable
Loan Party and all third parties, and having priority over all other Liens on
the Collateral except in the case of (a) Permitted Encumbrances, to the
extent any such Permitted Encumbrances would have priority over the Liens in
favor of the Lender pursuant to any applicable law and (b) Liens perfected
only by possession (including possession of any certificate of title) to the
extent the Lender has not obtained or does not maintain possession of such
Collateral.

 

SECTION 3.17.
Employment Matters. As of the Effective Date, there are no strikes,
lockouts or slowdowns against any Loan Party or any Subsidiary pending or, to
the knowledge of the Borrowers, threatened. The hours worked by and payments
made to employees of the Loan Parties and the Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable Federal,
state, local or foreign law dealing with such matters. All payments due from
any Loan Party or any Subsidiary, or for which any claim may be made against
any Loan Party or any Subsidiary, on account of wages and employee health and
welfare insurance and other benefits, have been paid or accrued as a liability
on the books of the Loan Party or such Subsidiary.

 

SECTION 3.18.
Affiliate Transactions. Except as set forth on Schedule 3.18, as
of the date of this Agreement, there are no existing or proposed agreements,
arrangements, understandings, or transactions between any Loan Party and any of
the officers, members, managers, directors, stockholders, parents, other
interest holders, employees, or Affiliates (other than Subsidiaries) of any
Loan Party or any members of their respective immediate families, and none of
the foregoing Persons are directly or indirectly indebted to or have any direct
or indirect ownership, partnership, or voting interest in any Affiliate of any
Loan Party or any Person with which any Loan Party has a business relationship
or which competes with any Loan Party (except that any such Persons may own
stock in (but not exceeding 5.0% of the outstanding Equity Interests of) any
publicly traded company that may compete with a Loan Party.

 

31

 

SECTION 3.19.
Common Enterprise. The successful operation and condition of each of the
Loan Parties is dependent on the continued successful performance of the
functions of the group of the Loan Parties as a whole and the successful
operation of each of the Loan Parties is dependent on the successful
performance and operation of each other Loan Party. Each Loan Party expects to
derive benefit (and its board of directors or other governing body has
determined that it may reasonably be expected to derive benefit), directly and
indirectly, from (i) successful operations of each of the other Loan
Parties and (ii) the credit extended by the Lender to the Borrowers
hereunder, both in their separate capacities and as members of the group of
companies. Each Loan Party has determined that execution, delivery, and
performance of this Agreement and any other Loan Documents to be executed by
such Loan Party is within its purpose, will be of direct and indirect benefit
to such Loan Party, and is in its best interest.

 

ARTICLE IV

 

Conditions

 

SECTION 4.01.
Effective Date. The obligations of the Lender to make Loans and to issue
Letters of Credit hereunder shall not become effective until the date on which
each of the following conditions is satisfied (or waived in accordance with Section 8.02):

 

(a)                                            Credit
Agreement and Loan Documents. The Lender (or its
counsel) shall have received (i) from each party hereto either (A) a
counterpart of this Agreement signed on behalf of such party or (B) written
evidence satisfactory to the Lender (which may include facsimile transmission
of a signed signature page of this Agreement) that such party has signed a
counterpart of this Agreement and (ii) duly executed copies of the Loan
Documents and such other certificates, documents, instruments and agreements as
the Lender shall reasonably request in connection with the transactions
contemplated by this Agreement and the other Loan Documents, including a
written opinion of the Loan Parties’ counsel, addressed to the Lender in
substantially the form of Exhibit A.

 

(b)                                           Financial
Statements and Projections. The Lender shall have
received (i) audited consolidated financial statements of the Borrowers
for the December 31, 2008 year, (ii) unaudited interim consolidated
financial statements of June 30, 2009 for each fiscal quarter ended after
the date of the latest applicable financial statements delivered pursuant to
clause (i) of this paragraph as to which such financial statements are
available.

 

(c)                                            Closing
Certificates; Certified Certificate of Incorporation; Good Standing
Certificates. The Lender shall have received (i) a
certificate of each Loan Party, dated the Effective Date and executed by its
Secretary or Assistant Secretary, which shall (A) certify the resolutions
of its Board of Directors, members or other body authorizing the execution,
delivery and performance of the Loan Documents to which it is a party, (B) identify
by name and title and bear the signatures of the Financial Officers and any
other officers of such Loan Party authorized to sign the Loan Documents to
which it is a party, and (C) contain appropriate attachments, including
the certificate or articles of incorporation or organization of each Loan Party
certified by the relevant authority of the jurisdiction of organization of such
Loan Party and a true and correct copy of its by-laws or operating, management
or partnership agreement, and (ii) a long form good standing certificate
for each Loan Party from its jurisdiction of organization.

 

(d)                                           No Default
Certificate. The Lender shall have received a certificate,
signed by the chief financial officer of each Borrower, on the initial
Borrowing date (i) stating that no Default has occurred and is continuing,
(ii) stating that the representations and warranties contained in Article III
are true and correct as of such date (except to the extent such representations
and warranties relate to a specific date, in which case such representations
and warranties should be true and correct as of such date), and (iii) certifying
any other factual matters as may be reasonably requested by the Lender.

 

32

 

(e)                                       Fees. The Lender
shall have received all fees required to be paid, and all expenses for which
invoices have been presented (including the reasonable fees and expenses of
legal counsel), on or before the Effective Date. All such amounts will be paid
with proceeds of Loans made on the Effective Date and will be reflected in the
funding instructions given by the Borrower Representative to the Lender on or
before the Effective Date.

 

(f)                                         Lien Searches. The Lender
shall have received the results of a recent lien search in each of the
jurisdictions where assets of the Loan Parties are located, and such search
shall reveal no liens on any of the assets of the Loan Parties except for liens
permitted by Section 6.02 or discharged on or prior to the Effective Date
pursuant to a pay-off letter or other documentation satisfactory to the Lender.

 

(g)                                      Intercreditor Agreement;
Mezzanine Loan Documents. The Lender shall have received the
Intercreditor Agreement and the Mezzanine Loan Documents, each in form and
substance satisfactory to the Lender.

 

(h)                                      Funding Account(s). The Lender
shall have received a notice setting forth the deposit account(s) of the
Borrowers (the “Funding Account(s)”) to which the Lender is authorized
by the Borrowers to transfer the proceeds of any Borrowings requested or
authorized pursuant to this Agreement.

 

(i)                                          Intentionally
Omitted.

 

(j)                                          Collateral
Access and Control Agreements. The Lender shall have
received each (i) Collateral Access Agreement required to be provided
pursuant to Section 4.13 of the Security Agreement and (ii) Deposit
Account Control Agreement required to be provided pursuant to Section 4.14
of the Security Agreement.

 

(k)                                       Solvency. The Lender
shall have received a solvency certificate from a Financial Officer.

 

(l)                                          Borrowing Base
Certificate. The Lender shall have received a Borrowing Base
Certificate which calculates the Borrowing Base as of the end of the week
immediately preceding the Effective Date.

 

(m)                                    Pledged Stock; Stock Powers;
Pledged Notes. The Lender shall have received (i) the
certificates representing the shares of Capital Stock pledged pursuant to the
Security Agreement, together with an undated stock power for each such
certificate executed in blank by a duly authorized officer of the pledgor
thereof and (ii) each promissory note (if any) pledged to the Lender
pursuant to the Security Agreement endorsed (without recourse) in blank (or
accompanied by an executed transfer form in blank) by the pledgor thereof.

 

(n)                                      Filings, Registrations and
Recordings. Each document (including any Uniform Commercial
Code financing statement) required by the Collateral Documents or under law or
reasonably requested by the Lender to be filed, registered or recorded in order
to create in favor of the Lender, a perfected Lien on the Collateral described
therein, prior and superior in right to any other Person (other than with
respect to Liens expressly permitted by Section 6.02), shall be in proper
form for filing, registration or recordation.

 

(o)                                      Insurance. The Lender
shall have received evidence of insurance coverage in form, scope, and
substance reasonably satisfactory to the Lender and otherwise in compliance
with the terms of Section 5.09 and Section 4.12 of the Security
Agreement.

 

(p)                                      Letter of Credit Application. The Lender
shall have received a properly completed letter of credit application (whether
standalone or pursuant to a master agreement, as applicable) if the issuance of
a Letter of Credit will be required on the Effective Date.

 

(q)                                      Tax Withholding. The Lender
shall have received a properly completed and signed IRS 

 

33

 

Form W-8 or W-9, as applicable, for each Loan Party.

 

(r)                                         Other Documents. The Lender
shall have received such other documents as the Lender or its counsel may have
reasonably requested.

 

SECTION 4.02.
Each Credit Event. The obligation of the Lender to make a Loan on the
occasion of any Borrowing, and to issue, amend, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

 

(a)                                       The representations and
warranties of the Borrowers set forth in this Agreement shall be true and
correct on and as of the date of such Borrowing or the date of issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, except
to the extent such representations and warranties relate to a specific date, in
which case such representations and warranties should be true and correct as of
such date.

 

(b)                                      At the time of and
immediately after giving effect to such Borrowing or the issuance, amendment,
renewal or extension of such Letter of Credit, as applicable, no Default shall
have occurred and be continuing.

 

(c)                                       After giving effect to any
Borrowing or the issuance of any Letter of Credit, Availability is not less
than zero.

 

Each
Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrowers on the date thereof as to the matters specified in paragraphs (a), (b) and
(c) of this Section.

 

ARTICLE V

 

Affirmative Covenants

 

Until
the Commitment has expired or been terminated and the principal of and interest
on each Loan and all fees payable hereunder shall have been paid in full and
all Letters of Credit shall have expired or terminated and all LC Disbursements
shall have been reimbursed, each Loan Party executing this Agreement covenants
and agrees, jointly and severally with all of the Loan Parties, with the Lender
that:

 

SECTION 5.01.
Financial Statements; Borrowing Base and Other Information. The
Borrowers will furnish to the Lender:

 

(a)                                            within 120 days
after the end of each fiscal year of the Company, its audited consolidated
balance sheet and related statements of operations, stockholders’ equity and
cash flows as of the end of and for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by
independent public accountants acceptable to the Lender (without a “going
concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such’ consolidated
financial statements present fairly in all material respects the financial
condition and results of operations of the Company and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, accompanied by any management letter prepared by said accountants;

 

(b)                                           within 45 days
after the end of each of the first three fiscal quarters of the Company, its
consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such fiscal quarter and the then
elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of
the balance sheet, as of the end of) the previous fiscal year, all certified by
one of the Financial Officers of the Borrower Representative as presenting
fairly in all material respects the financial condition and results of

 

34

 

operations
of the Company and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit
adjustments and the absence of footnotes;

 

(c)                                       concurrently with any
delivery of financial statements under clause (a) or (b) above, a
certificate of a Financial Officer of the Borrower Representative in
substantially the form of Exhibit C (i) certifying, in the
case of the financial statements delivered under clause (b), as presenting
fairly in all material respects the financial condition and results of
operations of the Company and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes, (ii) certifying as to
whether a Default has occurred and, if a Default has occurred, specifying the
details thereof and any action taken or proposed to be taken with respect
thereto, (iii) setting forth reasonably detailed calculations
demonstrating compliance with Section 6.12
and (iv) stating whether any change in GAAP or in the
application thereof has occurred since the date of the audited financial
statements referred to in Section 3.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements
accompanying such certificate;

 

(d)                                      concurrently with any
delivery of financial statements under clause (a) above, a certificate of
the accounting firm that reported on such financial statements stating whether
they obtained knowledge during the course of their examination of such
financial statements of any Default (which certificate may be limited to the
extent required by accounting rules or guidelines);

 

(e)                                       as soon as available but in
any event within 15 days of the end of each calendar month, and at such other
times as may be requested by the Lender, as of the period then ended, a
Borrowing Base Certificate and supporting information in connection therewith,
together with any additional reports with respect to the Borrowing Base as the
Lender may reasonably request;

 

(f)                                         as soon as available but in
any event within 15 days of the end of each calendar month and at such other
times as may be requested by the Lender, as of the period then ended, all
delivered electronically in a text formatted file acceptable to the Lender:

 

(i)                                     a detailed aging
of the Borrowers’ Accounts (1) including all invoices aged by invoice date
(with an explanation of the terms offered) and (2) reconciled to the
Borrowing Base Certificate delivered as of such date prepared in a manner
reasonably acceptable to the Lender, together with a summary specifying the
name, address, and balance due for each Account Debtor;

 

(ii)                                  a worksheet of
calculations prepared by the Borrowers to determine Eligible Accounts, such
worksheets detailing the Accounts excluded from Eligible Accounts and the
reason for such exclusion; and

 

(iii)                               a
reconciliation of the loan balance per the Borrowers’ general ledger to the
loan balance under this Agreement;

 

(g)                                      as soon as available but in
any event within 15 days of the end of each calendar month and at such other
times as may be requested by the Lender, as of the month then ended, a schedule
and aging of the Borrowers’ accounts payable, delivered electronically in a
text formatted file acceptable to the Lender;

 

(h)                                      promptly upon the Lender’s
request a schedule detailing the balance of all intercompany accounts of the
Loan Parties; and

 

(i)                                          promptly following any
request therefor, such other information regarding the operations, business
affairs and financial condition of any Borrower or any Subsidiary, or
compliance with the terms of this Agreement, as the Lender may reasonably
request.

 

SECTION 5.02.
Notices of Material Events. The Borrowers will furnish to the Lender
prompt written notice of the following:

 

35

 

(a)                                       the occurrence of any
Default;

 

(b)                                      receipt of any notice of any
governmental investigation or any litigation commenced or threatened against
any Loan Party that (i) seeks damages in excess of $150,000, (ii) seeks
injunctive relief, (iii) is asserted or instituted against any Plan, its
fiduciaries or its assets, (iv) alleges criminal misconduct by any Loan
Party, (v) alleges the violation of any law regarding, or seeks remedies
in connection with, any Environmental Laws; (vi) contests any tax, fee,
assessment, or other governmental charge in excess of $150,000 , or (vii) involves
any product recall;

 

(c)                                       any Lien (other than
Permitted Encumbrances) or claim made or asserted against any of the
Collateral;

 

(d)                                      any loss, damage, or
destruction to the Collateral in the amount of $500,000 or more, whether or not
covered by insurance;

 

(e)                                       any and all default notices
received under or with respect to any leased location or public warehouse where
Collateral is located (which shall be delivered within two Business Days after
receipt thereof);

 

(f)                                         all material amendments to,
together with a copy of each such amendment;

 

(g)                                      the occurrence of any ERISA
Event that, alone or together with any other ERISA Events that have occurred,
could reasonably be expected to result in liability of the Borrowers and its
Subsidiaries in an aggregate amount exceeding $150,000; and

 

(h)                                      any other development that
results in, or could reasonably be expected to result in, a Material Adverse
Effect.

 

Each
notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower Representative
setting forth the details of the event or development requiring such notice and
any action taken or proposed to be taken with respect thereto.

 

SECTION 5.03.
Existence; Conduct of Business. Each Loan Party will, and will cause
each Subsidiary to, (a) do or cause to be done all things necessary to
preserve, renew and keep in full force and effect its legal existence and the rights,
qualifications, licenses, permits, franchises, governmental authorizations,
intellectual property rights, licenses and permits material to the conduct of
its business, and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted; provided that the
foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03 and (b) carry on and conduct
its business in substantially the same manner and in substantially the same
fields of enterprise as it is presently conducted.

 

SECTION 5.04.
Payment of Obligations. Each Loan Party will, and will cause each
Subsidiary to, pay or discharge all Material Indebtedness and all other
material liabilities and obligations, including Taxes, before the same shall
become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) such
Loan Party or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP and (c) the failure to make
payment pending such contest could not reasonably be expected to result in a
Material Adverse Effect.

 

SECTION 5.05.
Maintenance of Properties. Each Loan Party will, and will cause each
Subsidiary to, keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear excepted.

 

36

 

SECTION 5.06.
Books and Records; Inspection Rights. Each Loan Party will, and will
cause each Subsidiary to, (i) keep proper books of record and account in
which full, true and correct entries are made of all dealings and transactions
in relation to its business and activities and (ii) permit any
representatives designated by the Lender (including employees of the Lender, or
any consultants, accountants, lawyers and appraisers retained by the Lender,
upon reasonable prior notice, to visit and inspect its properties, to examine
and make extracts from its books and records, including environmental
assessment reports and Phase I or Phase II studies, and to discuss its affairs,
finances and condition with its officers and independent accountants, all at
such reasonable times and as often as reasonably requested, provided that, so
long as no Event of Default has occurred and is continuing, such visits and
inspections will occur no more than two times in any twelve (12) month period.
The Loan Parties acknowledge that the Lender, after exercising its rights of
inspection, may prepare certain Reports pertaining to the Loan Parties’ assets
for internal use by the Lender. Each Loan Party will permit the Lender to
conduct field audit examinations of the Loan Party’s assets, liabilities, books
and records at a frequency not less than once every 180 days; provided further
that the Loan Party will permit the Lender to conduct such examinations at any
time and with any reasonable frequency after an Event of Default. In connection
with such field audits, the Loan Party will permit the Lender to make test
verifications of the Accounts with the Loan Party’s customers after the
occurrence and during the continuance of an Event of Default.

 

SECTION 5.07.
Compliance with Laws. Each Loan Party will, and will cause each
Subsidiary to, comply with all Requirements of Law applicable to it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 5.08.
Use of Proceeds and Letters of Credit. The proceeds of the Loans will be
used only for working capital and other general corporate purposes or for
Permitted Acquisitions. No part of the proceeds of any Loan and no Letter of
Credit will be used, whether directly or indirectly, for any purpose that
entails a violation of any of the Regulations of the Board, including
Regulations T, U and X. Letters of Credit will be issued only to support
general corporate purposes.

 

SECTION 5.09.
Insurance. Each Loan Party will, and will cause each Subsidiary to,
maintain with financially sound and reputable carriers having a financial
strength rating of at least A- by A.M. Best Company (a) insurance in
such amounts (with no greater risk retention) and against such risks (including
(i) loss or damage by fire and loss in transit; (ii) theft, burglary,
pilferage, larceny, embezzlement, and other criminal activities; (iii) business
interruption; (iv) general liability and (v) and such other hazards,
as is customarily maintained by companies of established repute engaged in the
same or similar businesses operating in the same or similar locations and (b) all
insurance required pursuant to the Collateral Documents. The Borrowers will
furnish to the Lender, information in reasonable detail as to the insurance so
maintained.

 

SECTION 5.10.
Casualty and Condemnation. The Borrowers (a) will furnish to the
Lender prompt written notice of any casualty or other insured damage to any
material portion of the Collateral or the commencement of any action or
proceeding for the taking of any material portion of the Collateral or interest
therein under power of eminent domain or by condemnation or similar proceeding
and (b) will ensure that the Net Proceeds of any such event (whether in
the form of insurance proceeds, condemnation awards or otherwise) are collected
and applied in accordance with the applicable provisions of this Agreement and
the Collateral Documents.

 

SECTION 5.11.
Appraisals. At any time that the Lender requests, the Loan Parties will
provide the Lender with appraisals or updates thereof of their Inventory and
Equipment from an appraiser selected and engaged by the Lender, and prepared on
a basis satisfactory to the Lender at the Loan Parties’ sole expense, such
appraisals and updates to include, without limitation, information required by
applicable law and regulations; provided, however, that if no Event of Default
has occurred and is continuing, only one such appraisal per calendar year shall
be at the sole expense of the Loan Parties.

 

SECTION 5.12.
Depository Banks. The Borrowers and their Subsidiaries will maintain the
Lender as its principal depository bank, including for the maintenance of
operating, administrative, cash management, collection activity, and other
deposit accounts for the conduct of its business.

 

37

 

SECTION 5.13.
Additional Collateral; Further Assurances. (a) Subject to
applicable law, the Borrowers and each Subsidiary that is a Loan Party shall,
unless the Lender otherwise consents, cause each Subsidiary of the Borrowers
formed or acquired after the date of this Agreement in accordance with the
terms of this Agreement to become a Loan Party by executing the Joinder
Agreement set forth as Exhibit D hereto (the “Joinder Agreement”).
Upon execution and delivery thereof, each such Person (i) shall
automatically become a Loan Guarantor hereunder and thereupon shall have all of
the rights, benefits, duties, and obligations in such capacity under the Loan
Documents and (ii) will grant Liens to the Lender, in any property of such
Loan Party which constitutes Collateral, including any parcel of real property
located in the U.S. owned by any Loan Party.

 

(b)                                      Each Borrower
and each Subsidiary that is a Loan Party will cause (i) 100% of the issued
and outstanding Equity Interests of each of its domestic Subsidiaries and (ii) 65%
(or such greater percentage that, due to a change in applicable law after the
date hereof, (1) could not reasonably be expected to cause the
undistributed earnings of such foreign Subsidiary as determined for U.S.
federal income tax purposes to be treated as a deemed dividend to such foreign
Subsidiary’s U.S. parent and (2) could not reasonably be expected to cause
any material adverse tax consequences) of the issued and outstanding Equity
Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2))
and 100% of the issued and outstanding Equity Interests not entitled to vote
(within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each foreign
Subsidiary directly owned by each Borrower or any domestic Subsidiary to be
subject at all times to a first priority, perfected Lien in favor of the Lender
pursuant to the terms and conditions of the Loan Documents or other security
documents as the Lender shall reasonably request.

 

(c)                                       Without
limiting the foregoing, each Loan Party will, and will cause each Subsidiary
to, execute and deliver, or cause to be executed and delivered, to the Lender
such documents, agreements and instruments, and will take or cause to be taken
such further actions (including the filing and recording of financing
statements, fixture filings, mortgages, deeds of trust and other documents and
such other actions or deliveries of the type required by Section 4.01, as
applicable), which may be required by law or which the Lender may, from time to
time, reasonably request to carry out the terms and conditions of this
Agreement and the other Loan Documents and to ensure perfection and priority of
the Liens created or intended to be created by the Collateral Documents, all at
the expense of the Loan Parties.

 

ARTICLE VI

 

Negative Covenants

 

Until
the Commitment has expired or terminated and the principal of and interest on
each Loan and all fees, expenses and other amounts payable under any Loan
Document have been paid in full and all Letters of Credit have expired or
terminated and all LC Disbursements shall have been reimbursed, the Loan
Parties covenant and agree, jointly and severally, with the Lender that:

 

SECTION 6.01.
Indebtedness. No Loan Party will, nor will it permit any Subsidiary to,
create, incur or suffer to exist any Indebtedness, except:

 

(a)                                       the Secured Obligations;

 

(b)                                      Indebtedness existing on the
date hereof and set forth in Schedule 6.01 and extensions, renewals and
replacements of any such Indebtedness in accordance with clause (f) hereof;

 

(c)                                       Indebtedness of any Borrower
to any Subsidiary and of any Subsidiary to the Borrower or any other
Subsidiary, provided that (i) Indebtedness of any Subsidiary that
is not a Loan Party to any Borrower or any Subsidiary that is a Loan Party
shall be subject to Section 6.04 and (ii) Indebtedness of any
Borrower to any Subsidiary and Indebtedness of any Subsidiary that is a Loan
Party to any Subsidiary that is not a Loan Party shall be subordinated to the
Secured Obligations on terms reasonably satisfactory to the Lender;

 

38

 

(d)                                      Guarantees by any Borrower
of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of any
Borrower or any other Subsidiary, provided that (i) the
Indebtedness so Guaranteed is permitted by this Section 6.01, (ii) Guarantees
by any Borrower or any Subsidiary that is a Loan Party of Indebtedness of any Subsidiary
that is not a Loan Party shall be subject to Section 6.04 and (iii) Guarantees
permitted under this clause (d) shall be subordinated to the Secured
Obligations of the applicable Subsidiary on the same terms as the Indebtedness
so Guaranteed is subordinated to the Secured Obligations;

 

(e)                                       Indebtedness of any Borrower
or any Subsidiary incurred to finance the acquisition, construction or
improvement of any fixed or capital assets (whether or not constituting
purchase money Indebtedness), including Capital Lease Obligations and any
Indebtedness assumed in connection with the acquisition of any such assets or
secured by a Lien on any such assets prior to the acquisition thereof, and
extensions, renewals and replacements of any such Indebtedness in accordance
with clause (1) hereof; provided that (i) such Indebtedness is
incurred prior to or within 90 days after such acquisition or the completion of
such construction or improvement and (ii) the aggregate principal amount
of Indebtedness permitted by this clause (e) shall not exceed $1,000,000
at any time outstanding;

 

(f)                                         Indebtedness which
represents an extension, refinancing, or renewal of any of the Indebtedness
described in clauses (b) and (e) hereof; provided that, (i) the
principal amount or interest rate of such Indebtedness is not increased, (ii) any
Liens securing such Indebtedness are not extended to any additional property of
any Loan Party, (iii) no Loan Party that is not originally obligated with
respect to repayment of such Indebtedness is required to become obligated with
respect thereto, (iv) such extension, refinancing or renewal does not
result in a shortening of the average weighted maturity of the Indebtedness so
extended, refinanced or renewed, (v) 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 (iv) if the Indebtedness that is
refinanced, renewed, or extended was subordinated in right of payment to the
Secured Obligations, then the terms and conditions of the refinancing, renewal,
or extension Indebtedness must include subordination terms and conditions that
are at least as favorable to the Lender as those that were applicable to the
refinanced, renewed, or extended Indebtedness;

 

(g)                                      Indebtedness owed to any
person providing workers’ compensation, health, disability or other employee
benefits or property, casualty or liability insurance, pursuant to
reimbursement or indemnification obligations to such person, in each case
incurred in the ordinary course of business;

 

(h)                                      Indebtedness of any Borrower
or any Subsidiary in respect of performance bonds, bid bonds, appeal bonds,
surety bonds and similar obligations, in each case provided in the ordinary
course of business;

 

(i)                                          Indebtedness under and
pursuant to the Mezzanine Loan Documents provided that such Indebtedness is
subordinated to the Secured Obligations pursuant to the terms of the
Intercreditor Agreement;

 

(j)                                       unsecured trade accounts and
other normal accounts incurred in the ordinary course of business; and

 

(k)                                    other Indebtedness not
otherwise permitted by this Section 6.01 in an amount not to exceed $500,000
in the aggregate at any time outstanding for the Loan Parties on a consolidated
basis.

 

SECTION 6.02.
Liens. No Loan Party will, nor will it permit any Subsidiary to, create,
incur, assume or permit to exist any Lien on any property or asset now owned or
hereafter acquired by it, or assign or sell any income or revenues (including
accounts receivable) or rights in respect of any thereof, except:

 

(a)                                    Liens created pursuant to
any Loan Document;

 

39

 

(b)                                      Permitted Encumbrances;

 

(c)                                       any Lien on any property or
asset of any Borrower or any Subsidiary existing on the date hereof and set
forth in Schedule 6.02; provided that (i) such Lien
shall not apply to any other property or asset of such Borrower or Subsidiary
and (ii) such Lien shall secure only those obligations which it secures on
the date hereof and extensions, renewals and replacements thereof that do not
increase the outstanding principal amount thereof;

 

(d)                                      Liens on fixed or capital
assets acquired, constructed or improved by any Borrower or any Subsidiary; provided
that (i) such security interests secure Indebtedness permitted by clause (e) of
Section 6.01, (ii) such security interests and the Indebtedness
secured thereby are incurred prior to or within 90 days after such acquisition
or the completion of such construction or improvement, (iii) the
Indebtedness secured thereby does not exceed 100% of the cost of acquiring,
constructing or improving such fixed or capital assets and (iv) such
security interests shall not apply to any other property or assets of such
Borrower or Subsidiary or any other Borrower or Subsidiary;

 

(e)                                       any Lien existing on any
property or asset (other than Accounts and Inventory) prior to the acquisition
thereof by any Borrower or any Subsidiary or existing on any property or asset
(other than Accounts and Inventory) of any Person that becomes a Loan Party
after the date hereof prior to the time such Person becomes a Loan Party; provided
that (i) such Lien is not created in contemplation of or in connection
with such acquisition or such Person becoming a Loan Party, as the case may be,
(ii) such Lien shall not apply to any other property or assets of the Loan
Party and (iii) such Lien shall secure only those obligations which it
secures on the date of such acquisition or the date such Person becomes a Loan
Party, as the case may be and extensions, renewals and replacements thereof
that do not increase the outstanding principal amount thereof;

 

(f)                                         Liens of a collecting bank
arising in the ordinary course of business under Section 4-208 of the
Uniform Commercial Code in effect in the relevant jurisdiction covering only
the items being collected upon;

 

(g)                                           Liens arising
out of sale and leaseback transactions permitted by Section 6.06;

 

(h)                                           Liens granted
by a Subsidiary that is not a Loan Party in favor of any Borrower or another
Loan Party in respect of Indebtedness owed by such Subsidiary;

 

(i)                                               involuntary
liens securing amounts less than $100,000 and which are released or for which a
bond acceptable to the Lender, in its Permitted Discretion, has been posted
within 10 days of its creation; and

 

(j)                                               Leases or
subleases of real property granted to other Persons not materially interfering
with the conduct of business of the Borrowers.

 

Notwithstanding
the foregoing, none of the Liens permitted pursuant to this Section 6.02
may at any time attach to any Loan Party’s (1) Accounts, other than those
permitted under clause (a) of the definition of Permitted Encumbrance and
clause (a) above and (2) Inventory, other than those permitted under
clauses (a) and (b) of the definition of Permitted Encumbrance and
clause (a) above.

 

SECTION 6.03.
Fundamental Changes. (a) No Loan Party will, nor will it permit any
Subsidiary to, merge into or consolidate with any other Person, or permit any
other Person to merge into or consolidate with it, or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto
no Event of Default shall have occurred and be continuing (i) any
Subsidiary of any Borrower may merge into a Borrower in a transaction in which
such Borrower is the surviving corporation, (ii) any Loan Party (other
than the Borrower) may merge into any Loan Party in a transaction in which the
surviving entity is a Loan Party and (iii) any Subsidiary that is not a
Loan Party may liquidate or dissolve if the Borrower which owns such Subsidiary
determines in good faith

 

40

 

that
such liquidation or dissolution is in the best interests of such Borrower and
is not materially disadvantageous to the Lender; provided that any such
merger involving a Person that is not a wholly owned Subsidiary immediately
prior to such merger shall not be permitted unless also permitted by Section 6.04.

 

(b)                                   No Loan Party will, nor will
it permit any of its Subsidiaries to, engage to any material extent in any
business other than businesses of the type conducted by the Borrowers and their
Subsidiaries on the date of execution of this Agreement and businesses
reasonably related thereto.

 

SECTION 6.04.
Investments, Loans, Advances, Guarantees and Acquisitions. No Loan Party
will, nor will it permit any Subsidiary to, purchase, hold or acquire
(including pursuant to any merger with any Person that was not a Loan Party and
a wholly owned Subsidiary prior to such merger) any capital stock, evidences of
indebtedness or other securities (including any option, warrant or other right
to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise
acquire (in one transaction or a series of transactions) any assets of any
other Person constituting a business unit (whether through purchase of assets,
merger or otherwise), except:

 

(a)                                       Permitted Investments,
subject to control agreements in favor of the Lender or otherwise subject to a
perfected security interest in favor of the Lender (unless the Lender waives
such requirements);

 

(b)                                      investments in existence on
the date of this Agreement and described in Schedule 6.04;

 

(c)                                       investments by the Borrowers
and the Subsidiaries in Equity Interests in their respective Subsidiaries, provided
that (A) any such Equity Interests held by a Loan Party shall be pledged
pursuant to the Security Agreement (subject to the limitations applicable to
common stock of a Foreign Subsidiary referred to in Section 5.12) and (B) the
aggregate amount of investments by Loan Parties in Subsidiaries that are not
Loan Parties (together with outstanding intercompany loans permitted under
clause (B) to the proviso to Section 6.04(d) and outstanding
Guarantees permitted under the proviso to Section 6.04(e)) shall not
exceed $250,000 at any time outstanding (in each case determined without regard
to any write-downs or write-offs);

 

(d)                                      loans or advances made by
any Borrower to any Subsidiary and made by any Subsidiary to any other Borrower
or any other Subsidiary, provided that the amount of such loans and
advances made by Loan Parties to Subsidiaries that are not Loan Parties
(together with outstanding investments permitted under clause (B) to the
proviso to Section 6.04(c) and outstanding Guarantees permitted under
the proviso to Section 6.04(e)) shall not exceed $250,000 at any time
outstanding (in each case determined without regard to any write-downs or
write-offs);

 

(e)                                       Guarantees constituting
Indebtedness permitted by Section 6.01, provided that the aggregate
principal amount of Indebtedness of Subsidiaries that are not Loan Parties that
is Guaranteed by any Loan Party shall (together with outstanding investments
permitted under clause (B) to the proviso to Section 6.04(c) and
outstanding intercompany loans permitted under clause (B) to the proviso
to Section 6.04(d)) shall not exceed $250,000 at any time outstanding (in
each case determined without regard to any write-downs or write-offs);

 

(f)                                      loans or advances made by a
Loan Party to its employees, officers or directors on an arms-length basis in
the ordinary course of business consistent with past practices for travel and
entertainment expenses, relocation costs and similar purposes up to a maximum
of $25,000 in the aggregate at any one time outstanding;

 

(g)                                   subject to Sections 4.2(a) and
4.4 of the Security Agreement, notes payable, or stock or other securities
issued by Account Debtors to a Loan Party pursuant to negotiated agreements
with respect to settlement of such Account Debtor’s Accounts in the ordinary
course of business, consistent with past practices;

 

41

 

(h)                                      investments in the form of Swap
Agreements permitted by Section 6.07;

 

(i)                                          investments of any Person
existing at the time such Person becomes a Subsidiary of a Borrower or
consolidates or merges with a Borrower or any of the Subsidiaries (including in
connection with a Permitted Acquisition) so long as such investments were not
made in contemplation of such Person becoming a Subsidiary or of such merger;

 

(j)                                       investments received in
connection with the dispositions of assets permitted by Section 6.05;

 

(k)                                       investments constituting deposits
described in clauses (c) and (d) of the definition of the term “Permitted
Encumbrances”;

 

(1)                                       investments consisting of
stock, obligations, securities or other property received in connection with
the bankruptcy or reorganization of suppliers and customers;

 

(m)                                    accounts receivable arising
and trade credit extended in the ordinary course of business and payable in
accordance with customary trade terms; and

 

(n)                                      investments not otherwise
permitted in an amount not to exceed $500,000.

 

SECTION 6.05.
Asset Sales. No Loan Party will, nor will it permit any Subsidiary to,
sell, transfer, lease or otherwise dispose of any asset, including any Equity
Interest owned by it, nor will any Borrower permit any Subsidiary to issue any
additional Equity Interest in such Subsidiary (other than to another Borrower
or another Subsidiary in compliance with Section 6.04), except:

 

(a)                                            sales,
transfers and dispositions of (i) inventory in the ordinary course of
business, (ii) used, obsolete, worn out or surplus equipment or property
in the ordinary course of business, and (iii) other sales of fixed assets
which are not used or usable in the ordinary course of business;

 

(b)                                           sales,
transfers and dispositions to any Borrower or any Subsidiary, provided
that any such sales, transfers or dispositions involving a Subsidiary that is
not a Loan Party shall be made in compliance with Section 6.09;

 

(c)                                            sales,
transfers and dispositions of accounts receivable in connection with the
compromise, settlement or collection thereof;

 

(d)                                           sales,
transfers and dispositions of Permitted Investments and other investments
permitted by clauses (i) and (k) of Section 6.04;

 

(e)                                            sale and
leaseback transactions permitted by Section 6.06;

 

(f)                                              dispositions
resulting from any casualty or other insured damage to, or any taking under
power of eminent domain or by condemnation or similar proceeding of, any
property or asset of any Borrower or any Subsidiary; and

 

(g)                                           sales,
transfers and other dispositions of assets (other than Equity Interests in a
Subsidiary unless all Equity Interests in such Subsidiary are sold) that are
not permitted by any other paragraph of this Section, provided that the
aggregate fair market value of all assets sold, transferred or otherwise
disposed of in reliance upon this paragraph (g) shall not exceed $100,000
during any fiscal year of the Borrowers;

 

provided that all sales, transfers, leases and other
dispositions permitted hereby (other than those permitted by paragraphs (b) and
(f) above) shall be made for fair value and for at least 75% cash
consideration.

 

42

 

SECTION 6.06.
Sale and Leaseback Transactions. No Loan Party will, nor will it permit
any Subsidiary to, enter into any arrangement, directly or indirectly, whereby
it shall sell or transfer any property, real or personal, used or useful in its
business, whether now owned or hereafter acquired, and thereafter rent or lease
such property or other property that it intends to use for substantially the
same purpose or purposes as the property sold or transferred, except for any
such sale of any fixed or capital assets by any Borrower or any Subsidiary that
is made for cash consideration in an amount not less than the fair value of
such fixed or capital asset and is consummated within 90 days after such
Borrower or such Subsidiary acquires or completes the construction of such
fixed or capital asset.

 

SECTION 6.07.
Swap Agreements. No Loan Party will, nor will it permit any Subsidiary
to, enter into any Swap Agreement, except (a) Swap Agreements entered into
to hedge or mitigate risks to which any Borrower or any Subsidiary has actual
exposure (other than those in respect of Equity Interests of any Borrower or
any of its Subsidiaries), and (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with
respect to any interest-bearing liability or investment of any Borrower or any
Subsidiary.

 

SECTION 6.08.
Restricted Payments; Certain Payments of Indebtedness. (a) No Loan
Party will, nor will it permit any Subsidiary to, declare or make, or agree to
pay or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except (i) each Borrower
may declare and pay dividends with respect to its common stock payable solely
in additional shares of its common stock, and, with respect to its preferred
stock, payable solely in additional shares of such preferred stock or in shares
of its common stock and (ii) Subsidiaries may declare and pay dividends
ratably with respect to their Equity.

 

(b)                                           No Loan Party
will, nor will it permit any Subsidiary to, make or agree to pay or make, directly
or indirectly, any payment or other distribution (whether in cash, securities
or other property) of or in respect of principal of or interest on any
Indebtedness, or any payment or other distribution (whether in cash, securities
or other property), including any sinking fund or similar deposit, on account
of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Indebtedness, except:

 

(i)                                     payment of
Indebtedness created under the Loan Documents;

 

(ii)                                  payment of
regularly scheduled interest and principal payments as and when due in respect
of any Indebtedness, other than payments in respect of the Subordinated
Indebtedness prohibited by the subordination provisions thereof in which case
such payments in respect of Subordinated Indebtedness will be governed by the
terms and conditions of the respective subordination agreements including, with
respect to the subordinated indebtedness under the Mezzanine Loan Documents,
the Intercreditor Agreement;

 

(iii)                               refinancings of
Indebtedness to the extent permitted by Section 6.01; and

 

(iv)                              payment of
secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness.

 

SECTION 6.09.
Transactions with Affiliates. No Loan Party will, nor will it permit any
Subsidiary to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise
engage in any other transactions with, any of its Affiliates, except (a) transactions
that (i) are in the ordinary course of business and (ii) are at
prices and on terms and conditions not less favorable to such Borrower or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third
parties, (b) transactions between or among any Borrower and any Subsidiary
that is a Loan Party not involving any other Affiliate, (c) any investment
permitted by Sections 6.04(c), 6.04(d) or 6.04(f), (d) any
Indebtedness permitted under Section 6.01(c), (e) any Restricted
Payment permitted by Section 6.08, (f) loans or advances to employees
permitted under Section 6.04, (g) the payment of reasonable fees to
directors of any Borrower or any Subsidiary who are not employees of such
Borrower or Subsidiary, and compensation and employee benefit arrangements paid
to, and indemnities provided for the benefit of, directors, officers or
employees of the Borrowers or their

 

43

 

Subsidiaries
in the ordinary course of business and (h) any issuances of securities or
other payments, awards or grants in cash, securities or otherwise pursuant to,
or the funding of, employment agreements, stock options and stock ownership
plans approved by a Borrower’s board of directors.

 

SECTION 6.10.
Restrictive Agreements. No Loan Party will, nor will it permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any
condition upon (a) the ability of such Loan Party or any of its
Subsidiaries to create, incur or permit to exist any Lien upon any of its
property or assets, or (b) the ability of any Subsidiary to pay dividends
or other distributions with respect to any shares of its capital stock or to
make or repay loans or advances to any Borrower or any other Subsidiary or to
Guarantee Indebtedness of any Borrower or any other Subsidiary; provided
that (i) the foregoing shall not apply to restrictions and conditions
imposed by law or by any Loan Document, (ii) the foregoing shall not apply
to restrictions and conditions existing on the date hereof identified on Schedule
6.10 (but shall apply to any extension or renewal of, or any amendment or
modification expanding the scope of, any such restriction or condition), (iii) the
foregoing shall not apply to customary restrictions and conditions contained in
agreements relating to the sale of a Subsidiary pending such sale, provided
such restrictions and conditions apply only to the Subsidiary that is to be
sold and such sale is permitted hereunder, (iv) clause (a) of the
foregoing shall not apply to restrictions or conditions imposed by any
agreement relating to secured Indebtedness permitted by this Agreement if such
restrictions or conditions apply only to the property or assets securing such
Indebtedness and (v) clause (a) of the foregoing shall not apply to
customary provisions in leases restricting the assignment thereof.

 

SECTION 6.11.
Amendment of Material Documents. No Loan Party will, nor will it permit
any Subsidiary to, amend, modify or waive any of its rights under (a) agreement
relating to any Subordinated Indebtedness, including, the Subordinated
Indebtedness under the Mezzanine Loan Documents or (b) except in
connection with a Qualified IPO, its certificate of incorporation, by-laws,
operating, management or partnership agreement or other organizational
documents to the extent any such amendment, modification or waiver would be
adverse to the Lender.

 

SECTION 6.12.
Financial Covenants.

 

(a)                                            Debt Service
Coverage Ratio. The Borrowers will not permit the Debt Service
Coverage Ratio, determined for any period of four consecutive fiscal quarters
ending on the last day of each fiscal quarter to be less than 1.15 to 1.00. The
Debt Service Coverage Ratio shall be tested quarterly.

 

(b)                                           Minimum Net
Worth. The Borrowers shall not allow, at the end of each fiscal quarter, Net
Worth to be less than $15,000,000.

 

(c)                                            Leverage Ratio. The Borrowers
will not permit the Leverage Ratio, determined for any period of four specified
below to be greater than the ratio set forth below:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For the twelve month period ending
  September 30, 2009

  	
   

  	
  3.00
  to 1.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For the twelve month period ending as of
  December 31, 2009 and as of the last day of each fiscal quarter
  thereafter

  	
   

  	
  2.50
  to 1.0

  	
   

  

 

44

 

ARTICLE VII

 

Events of Default

 

If
any of the following events (“Events of Default”) shall occur:

 

(a)                                       the Borrowers
shall fail to pay any principal of or interest on any Loan, or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise;

 

(b)                                      the Borrowers
shall fail to pay any fee or any other amount (other than the amounts referred
to in clause (a) of this Article) payable under this Agreement, within
five (5) days of when such fee or amount shall become due and payable;

 

(c)                                       any
representation or warranty made or deemed made by or on behalf of any Loan
Party or any Subsidiary in or in connection with this Agreement or any Loan
Document or any amendment or modification thereof or waiver thereunder, or in
any report, certificate, financial statement or other document furnished
pursuant to or in connection with this Agreement or any Loan Document or any
amendment or modification thereof or waiver thereunder, shall prove to have
been materially incorrect when made or deemed made;

 

(d)                                      any Loan Party
shall fail to observe or perform any covenant, condition or agreement contained
in Section 5.02(a), 5.03 (with respect to a Loan Party’s existence) or
5.08 or in Article VI;

 

(e)                                       any Loan Party
shall fail to observe or perform any covenant, condition or agreement contained
in this Agreement (other than those which constitute a default under another Section of
this Article), and such failure shall continue unremedied for a period of (i) 5
days after the earlier of any Loan Party’s knowledge of such breach or notice
thereof from the Lender if such breach relates to terms or provisions of Section 5.01,
5.02 (other than Section 5.02(a)), 5.03 through 5.07, 5.09, 5.10 or 5.12
of this Agreement or (ii) 15 days after the earlier of any Loan Party’s
knowledge of such breach or notice thereof from the Lender if such breach relates
to terms or provisions of any other Section of this Agreement;

 

(f)                                         any Loan Party
or any Subsidiary shall fail to make any payment (whether of principal or interest
and regardless of amount) in respect of any Material Indebtedness, when and as
the same shall become due and payable;

 

(g)                                      any event or
condition occurs that results in any Material Indebtedness becoming due prior
to its scheduled maturity or that enables or permits (with or without the
giving of notice, the lapse of time or both) the holder or holders of any
Material Indebtedness or any trustee or agent on its or their behalf to cause
any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (g) shall not apply to secured Indebtedness that becomes
due as a result of the voluntary sale or transfer of the property or assets
securing such Indebtedness;

 

(h)                                      an involuntary
proceeding shall be commenced or an involuntary petition shall be filed seeking
(i) liquidation, reorganization or other relief in respect of a Loan Party
or its debts, or of a substantial part of its assets, under any Federal, state
or foreign bankruptcy, insolvency, receivership or similar law now or hereafter
in effect or (ii) the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for any Loan Party or for a
substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for 60 days or an order or decree approving
or ordering any of the foregoing shall be entered;

 

(i)                                          any Loan Party
shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in clause (h) of
this Article, (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for such Loan
Party or for a substantial part of its assets, (iv) file an answer
admitting the material

 

45

 

allegations
of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors or (vi) take any action for the
purpose of effecting any of the foregoing;

 

(j)                                          any Loan Party
shall become unable, admit in writing its inability or fail generally to pay
its debts as they become due;

 

(k)                                       one or more
judgments for the payment of money in an aggregate amount in excess of $250,000
shall be rendered against any Loan Party or any combination thereof and the
same shall remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be legally taken
by a judgment creditor to attach or levy upon any assets of any Loan Party to enforce
any such judgment or any Loan Party shall fail within 30 days to discharge one
or more non- monetary judgments or orders which, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect,
which judgments or orders, in any such case, are not stayed on appeal or
otherwise being appropriately contested in good faith by proper proceedings
diligently pursued;

 

(l)                                          an ERISA Event
shall have occurred that, in the opinion of the Lender, when taken together
with all other ERISA Events that have occurred, could reasonably be expected to
result in a Material Adverse Effect;

 

(m)                                    a Change in
Control shall occur;

 

(n)                                      the occurrence
of any “default”, as defined in any Loan Document (other than this Agreement)
or the breach of any of the terms or provisions of any Loan Document (other
than this Agreement), which default or breach continues beyond any period of
grace therein provided;

 

(o)                                      the Loan
Guaranty shall fail to remain in full force or effect or any action shall be
taken to discontinue or to assert the invalidity or unenforceability of the
Loan Guaranty, or any Loan Guarantor shall fail to comply with any of the terms
or provisions of the Loan Guaranty to which it is a party, or any Loan
Guarantor shall deny that it has any further liability under the Loan Guaranty
to which it is a party, or shall give notice to such effect;

 

(p)                                      any Collateral
Document shall for any reason fail to create a valid and perfected first
priority security interest in any Collateral purported to be covered thereby,
except as permitted by the terms of any Collateral Document, or any Collateral
Document shall fail to remain in full force or effect or any action shall be
taken to discontinue or to assert the invalidity or unenforceability of any Collateral
Document, or any Loan Party shall fail to comply with any of the terms or
provisions of any Collateral Document; or

 

(q)                                      any material
provision of any Loan Document for any reason ceases to be valid, binding and
enforceable in accordance with its terms (or any Loan Party shall challenge the
enforceability of any Loan Document or shall assert in writing, or engage in
any action or inaction based on any such assertion, that any provision of any
of the Loan Documents has ceased to be or otherwise is not valid, binding and
enforceable in accordance with its terms); or

 

(r)                                         The
subordination provisions of any debt which is subordinated to the Subordinated
Obligations contained in any subordination agreement or otherwise, including,
without limitation, the Intercreditor Agreement, shall for any reason be
revoked or invalid or otherwise cease to be in full force and effect or
Borrower, or any party to any such subordination agreement, shall contest in
any manner, whether in a judicial proceeding or otherwise, the validity or
enforceability of such subordination provisions or deny that the Borrower has
any further liability or obligation thereunder; or

 

(s)                                       An “event of
default” or “default” shall exist under the Mezzanine Loan Documents. 

 

46

 

then,
and in every such event (other than an event with respect to the Borrowers
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Lender may, by notice to the Borrower
Representative, take either or both of the following actions, at the same or
different times: (i) terminate the Commitment, and thereupon the Commitment
shall terminate immediately, and (ii) declare the Loans then outstanding to be
due and payable in whole (or in part, in which case any principal not so
declared to be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and all fees and other obligations
of the Borrowers accrued hereunder, shall become due and payable immediately,
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrowers; and in case of any event with respect to
the Borrowers described in clause (h) or (i) of this Article, the Commitment
shall automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of
the Borrowers accrued hereunder, shall automatically become due and payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrowers. Upon the occurrence and the continuance of
an Event of Default, the Lender may increase the rate of interest applicable to
the Loans and other Obligations as set forth in this Agreement and exercise any
rights and remedies provided to the Lender under the Loan Documents or at law
or equity, including all remedies provided under the UCC.

 

ARTICLE VIII

 

Miscellaneous

 

SECTION 8.01. Notices. (a) Except in the case of notices and
other communications expressly permitted to be given by telephone (and subject
to paragraph (b) below), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by facsimile, as
follows:

 

(i)            if to any Loan Party, to the
Borrower Representative at:

 

Echo Global Logistics, Inc.

600 W. Chicago Ave.

Chicago, IL 60610

Attention: David B. Menzel

Facsimile No: 312.334.2687

 

(ii)           if to the Lender, to
JPMorgan Chase Bank, N.A. at:

 

10 S. Dearborn

Chicago, IL 60603

Attention: Timothy S. Irwin

Facsimile No: 312.732.7219

 

All
such notices and other communications (i) sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have
been given when received or (ii) sent by facsimile shall be deemed to have been
given when sent, provided that if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient.

 

(b)                                 Notices and
other communications to the Lender hereunder may be delivered or furnished by
electronic communications (including e-mail and internet or intranet websites)
pursuant to procedures approved by the Lender; provided that the
foregoing shall not apply to notices pursuant to Article II or to compliance
and no Event of Default certificates delivered pursuant to Section 5.01(d) unless
otherwise agreed by the Lender. The Lender or the Borrower Representative (on
behalf of the Loan Parties) may, in its discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications. All such notices and other
communications (i) sent to an e-mail address shall be deemed received upon the
sender’s receipt of an

 

47

 

acknowledgement
from the intended recipient (such as by the “return receipt requested”
function, as available, return e-mail or other written acknowledgement), provided
that if not given during the normal business hours of the recipient, such
notice or communication shall be deemed to have been given at the opening of
business on the next Business Day for the recipient, and (ii) posted to an
Internet or intranet website shall be deemed received upon the deemed receipt
by the intended recipient at its e-mail address as described in the foregoing
clause (b)(i) of notification that such notice or communication is available
and identifying the website address therefor.

 

(c)                                  Any party
hereto may change its address or facsimile number for notices and other communications
hereunder by notice to the other parties hereto.

 

SECTION 8.02. Waivers; Amendments. (a) No failure or delay by
the Lender in exercising any right or power hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of
the Lender hereunder and under any other Loan Document are cumulative and are
not exclusive of any rights or remedies that they would otherwise have. No
waiver of any provision of any Loan Document or consent to any departure by any
Loan Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any Event
of Default, regardless of whether the Lender may have had notice or knowledge
of such Event of Default at the time.

 

(b)                                 Neither this
Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except (i) in the case of this Agreement,
pursuant to an agreement or agreements in writing entered into by the Borrowers
and the Lender, or (ii) in the case of any other Loan Document, pursuant to an
agreement or agreements in writing entered into by the Lender and the Loan
Party or Loan Parties that are parties thereto.

 

SECTION 8.03. Expenses; Indemnity; Damage Waiver. (a) The
Borrowers shall pay (i) all reasonable out-of-pocket expenses incurred by the
Lender and its Affiliates, including the reasonable fees, charges and
disbursements of counsel for the Lender (whether outside counsel or the
allocated costs of its internal legal department), in connection with the
credit facilities provided for herein, the preparation and administration of
the Loan Documents or any amendments, modifications or waivers of the
provisions of the Loan Documents (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket
expenses incurred by the Lender in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder
and (iii) all out-of-pocket expenses incurred by the Lender, including the
fees, charges and disbursements of any counsel for the Lender (whether outside
counsel or the allocated costs of its internal legal department), in connection
with the enforcement, collection or protection of its rights in connection with
the Loan Documents, including its rights under this Section, or in connection
with the Loans made or Letters of Credit issued hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit. Expenses being
reimbursed by the Borrowers under this Section include, without limiting the
generality of the foregoing, costs and expenses incurred in connection with:

 

(i)                                     appraisals and insurance
reviews;

 

(ii)                                  field examinations and the
preparation of Reports based on the fees charged by a third party retained by
the Lender or the internally allocated fees for each Person employed by the
Lender with respect to each field examination;

 

(iii)                               background checks regarding
senior management and/or key investors, as deemed necessary or appropriate in
the sole discretion of the Lender;

 

48

 

(iv)                              taxes, fees and other
charges for (A) lien and title searches and title insurance and (B) recording
the Mortgages, filing financing statements and continuations, and other actions
to perfect, protect, and continue the Lender’s Liens;

 

(v)                                 sums paid or incurred to
take any action required of any Loan Party under the Loan Documents that such
Loan Party fails to pay or take; and

 

(vi)                              forwarding loan proceeds,
collecting checks and other items of payment, and establishing and maintaining
the accounts and lock boxes, and costs and expenses of preserving and
protecting the Collateral.

 

All
of the foregoing costs and expenses may be charged to the Borrowers as
Revolving Loans or to another deposit account, all as described in Section 2.17(c).

 

(b)                                 The Borrowers
shall, jointly and severally, indemnify the Lender, and each Related Party of
the Lender (each such Person being called an “Indemnitee”) against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
penalties, incremental taxes, liabilities and related expenses, including the
charges, disbursements and reasonable fees of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection
with, or as a result of (i) the execution or delivery of the Loan Documents or
any agreement or instrument contemplated thereby, the performance by the
parties hereto of their respective obligations thereunder or the consummation
of the Transactions or any other transactions contemplated hereby, (ii) any
Loan or Letter of Credit or the use of the proceeds therefrom (including any
refusal by the Lender to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged presence
or release of Hazardous Materials on or from any property owned or operated by
any Borrower or any of their Subsidiaries, or any Environmental Liability
related in any way to any Borrower or any of their Subsidiaries, (iv) the
failure of the Borrowers to deliver to the Lender the required receipts or
other required documentary evidence with respect to a payment made by the
Borrowers for Taxes pursuant to Section 2.17, or (v) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory and regardless
of whether any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, penalties, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee.

 

(c)                                  The relationship
between any Loan Party on the one hand and the Lender on the other hand shall
be solely that of debtor and creditor. The Lender (i) shall not have any
fiduciary responsibilities to any Loan Party or (ii) does not undertake any
responsibility to any Loan Party to review or inform such Loan Party of any
matter in connection with any phase of any Loan Party’s business or operations.
To the extent permitted by applicable law, no Loan Party shall assert, and each
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof.

 

(d)                                 All amounts due
under this Section shall be payable promptly after written demand therefor.

 

SECTION 8.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that the
Borrowers may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Lender (and any attempted
assignment or transfer by the Borrowers without such consent shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, the Related Parties of each of the Lender) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

 

49

 

(b)                                 The Lender may
assign to one or more assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the
Loans at the time owing to it); provided that, except in the case of an
assignment to an Affiliate of the Lender or an Approved Fund, the Borrowers
must give their prior written consent to such assignment (which consent shall
not be unreasonably withheld); and provided further that any
consent of the Borrower otherwise required under this paragraph shall not be
required if an Event of Default under clause (h) or (i) of Article VII has
occurred and is continuing. Subject to notification of an assignment, the
assignee shall be a party hereto and, to the extent of the interest assigned,
have the rights and obligations of the Lender under this Agreement, and the
Lender shall, to the extent of the interest assigned, be released from its
obligations under this Agreement (and, in the case of an assignment covering
all of the Lender’s rights and obligations under this Agreement, the Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.14, 2.15, 2.16 and 8.03). The Borrowers hereby agree to
execute any amendment and/or any other document that may be necessary to
effectuate such an assignment, including an amendment to this Agreement to
provide for multiple lenders and an administrative agent to act on behalf of
such lenders. Any assignment or transfer by the Lender of rights or obligations
under this Agreement that does not comply with this paragraph shall be treated
for purposes of this Agreement as a sale by the Lender of a participation in
such rights and obligations in accordance with paragraph (c) of this Section.

 

For the purposes of this Section 8.04(b), the term “Approved Fund”
has the following meaning:

 

“Approved Fund” means any Person (other than a natural person)
that is engaged in making, purchasing, holding or investing in bank loans and
similar extensions of credit in the ordinary course of its business and that is
administered or managed by (a) the Lender, (b) an Affiliate of the Lender or (c)
an entity or an Affiliate of an entity that administers or manages the Lender.

 

(c)                                  The Lender may,
without the consent of the Borrowers, sell participations to one or more banks
or other entities (a “Participant”) in all or a portion of the Lender’s
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (i) the Lender’s
obligations under this Agreement shall remain unchanged, (ii) the Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrowers shall continue to deal solely and
directly with the Lender in connection with the Lender’s rights and obligations
under this Agreement. Subject to paragraph (d) of this Section, the Borrowers
agree that each Participant shall be entitled to the benefits of Sections 2.14,
2.15 and 2.16 to the same extent as if it were the Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section.

 

(d)                                 A Participant
shall not be entitled to receive any greater payment under Section 2.14 or 2.15
than the Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower Representative’s prior written
consent.

 

(e)                                  The Lender may
at any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of the Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Lender, and
this Section shall not apply to any such pledge or assignment of a security
interest; provided that no such pledge or assignment of a security
interest shall release the Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for the Lender as a party hereto.

 

SECTION 8.05. Survival. All covenants, agreements,
representations and warranties made by the Loan Parties in the Loan Documents
and in the certificates or other instruments delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the other parties hereto and shall survive the
execution and delivery of the Loan Documents and the making of any Loans and
issuance of any Letters of Credit, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that the Lender may have
had notice or knowledge of any Event of Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under this

 

50

 

Agreement
is outstanding and unpaid or any Letter of Credit is outstanding and so long as
the Commitment has not expired or terminated. The provisions of Sections 2.14,
2.15, 2.16 and Article VIII shall survive and remain in full force and effect
regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Letters of Credit
and the Commitment or the termination of this Agreement or any provision
hereof.

 

SECTION 8.06. Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement,
the other Loan Documents and any separate letter agreements with respect to
fees payable to the Lender constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Lender and when the Lender
shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by facsimile shall be effective as delivery of a manually
executed counterpart of this Agreement.

 

SECTION 8.07. Severability. Any provision of any Loan Document
held to be invalid, illegal or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such invalidity, illegality
or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions thereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in
any other jurisdiction.

 

SECTION 8.08. Right of Setoff. If an Event of Default shall have
occurred and be continuing, the Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of
the Borrowers or such Loan Guarantor against any of and all the Secured
Obligations held by such Lender, irrespective of whether or not such Lender
shall have made any demand under the Loan Documents and although such
obligations may be unmatured. The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.

 

SECTION 8.09. Governing Law; Jurisdiction; Consent to Service of
Process. (a) The Loan Documents (other than those containing a contrary
express choice of law provision) shall be governed by and construed in
accordance with the internal laws (including, without limitation, 735 ILCS Section
105/5-1 et seq, but otherwise without regard to the conflict of laws
provisions) of the State of Illinois, but giving effect to federal laws applicable
to national banks.

 

(b)                                 Each Loan Party
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any U.S. Federal or Illinois State court
sitting in Chicago, Illinois in any action or proceeding arising out of or
relating to any Loan Documents, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such Illinois State or, to the extent permitted by law, in
such Federal court. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement or any other Loan Document shall affect any right
that the Lender may otherwise have to bring any action or proceeding relating
to this Agreement or any other Loan Document against any Loan Party or its
properties in the courts of any jurisdiction.

 

(c)                                  Each Loan Party
hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have
to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or any other Loan Document in any court referred to
in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest

 

51

 

extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

 

(d)                                 Each party to
this Agreement irrevocably consents to service of process in the manner provided
for notices in Section 8.01. Nothing in this Agreement or any other Loan
Document will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

 

SECTION 8.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

SECTION 8.11. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this Agreement and shall not affect the construction of, or be taken
into consideration in interpreting, this Agreement.

 

SECTION 8.12. Confidentiality. The Lender agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ directors, officers, employees
and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this
Agreement, (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject to
an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement or (ii)
any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Loan Parties and their obligations, (g) with
the consent of the Borrower Representative (h) to holders of Equity Interests
in a Borrower,) or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes
available to the Lender on a non-confidential basis from a source other than
the Borrowers. For the purposes of this Section, “Information” means all
information received from the Borrowers relating to the Borrowers or their
business, other than any such information that is available to the Lender on a
non-confidential basis prior to disclosure by the Borrowers; provided
that, in the case of information received from the Borrowers after the date
hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

 

SECTION 8.13. Nonreliance; Violation of Law. The Lender hereby
represents that it is not relying on or looking to any margin stock for the
repayment of the Borrowings provided for herein. Anything contained in this
Agreement to the contrary notwithstanding, the Lender shall not be obligated to
extend credit to the Borrowers in violation of any limitation or prohibition
provided by any applicable statute or regulation.

 

SECTION 8.14. USA PATRIOT Act. The Lender is subject to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”) and hereby notifies the Borrowers that
pursuant to the requirements of the Act, it is required to obtain, verify and
record information that

 

52

 

identifies
the Borrowers, which information includes the names and addresses of the
Borrowers and other information that will allow such Lender to identify the
Borrowers in accordance with the Act.

 

SECTION 8.15. Disclosure. Each Loan Party hereby acknowledges
and agrees that the Lender and/or its Affiliates from time to time may hold
investments in, make other loans to or have other relationships with any of the
Loan Parties and their respective Affiliates.

 

SECTION 8.16. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any
Loan, together with all fees, charges and other amounts which are treated as
interest on such Loan under applicable law (collectively the “Charges”),
shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such
Loan in accordance with applicable law, the rate of interest payable in respect
of such Loan hereunder, together with all Charges payable in respect thereof,
shall be limited to the Maximum Rate and, to the extent lawful, the interest
and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or
periods shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective
Rate to the date of repayment, shall have been received by such Lender.

 

ARTICLE IX

 

Loan Guaranty

 

SECTION 9.01. Guaranty. Each Loan Guarantor (other than those
that have delivered a separate Guaranty) hereby agrees that it is jointly and
severally liable for, and absolutely and unconditionally guarantees to the
Lender the prompt payment when due, whether at stated maturity, upon
acceleration or otherwise, and at all times thereafter, of the Secured
Obligations and all costs and expenses including, without limitation, all court
costs and reasonable attorneys’ and paralegals’ fees (including allocated costs
of in-house counsel and paralegals) and expenses paid or incurred by the Lender
in endeavoring to collect all or any part of the Secured Obligations from, or
in prosecuting any action against, any Borrower, any Loan Guarantor or any
other guarantor of all or any part of the Secured Obligations (such costs and
expenses, together with the Secured Obligations, collectively the “Guaranteed
Obligations”). Each Loan Guarantor further agrees that the Guaranteed
Obligations may be extended or renewed in whole or in part without notice to or
further assent from it, and that it remains bound upon its guarantee
notwithstanding any such extension or renewal. All terms of this Loan Guaranty
apply to and may be enforced by or on behalf of any domestic or foreign branch
or Affiliate of any Lender that extended any portion of the Guaranteed
Obligations.

 

SECTION 9.02. Guaranty of Payment. This Loan Guaranty is a
guaranty of payment and not of collection. Each Loan Guarantor waives any right
to require the Lender to sue any Borrower, any Loan Guarantor, any other
guarantor, or any other person obligated for all or any part of the Guaranteed
Obligations (each, an “Obligated Party”), or otherwise to enforce its
payment against any collateral securing all or any part of the Guaranteed
Obligations, until such time as the Guaranteed Obligations are indefeasibly
paid in full.

 

SECTION 9.03. No Discharge or Diminishment of Loan Guaranty. (a)
Except as otherwise provided for herein, the obligations of each Loan Guarantor
hereunder are unconditional and absolute and not subject to any reduction,
limitation, impairment or termination for any reason (other than the
indefeasible payment in full in cash of the Guaranteed Obligations), including:
(i) any claim of waiver, release, extension, renewal, settlement, surrender,
alteration, or compromise of any of the Guaranteed Obligations, by operation of
law or otherwise; (ii) any change in the corporate existence, structure or
ownership of any Borrower or any other guarantor of or other person liable for
any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy,
reorganization or other similar proceeding affecting any Obligated Party, or
their assets or any resulting release or discharge of any obligation of any
Obligated Party; or (iv) the existence of any claim, setoff or other rights which
any Loan Guarantor may have at any time against any Obligated Party, Lender, or
any other person, whether in connection herewith or in any unrelated
transactions.

 

53

 

(b)                                 The obligations
of each Loan Guarantor hereunder are not subject to any defense or setoff,
counterclaim, recoupment, or termination whatsoever by reason of the
invalidity, illegality, or unenforceability of any of the Guaranteed
Obligations or otherwise, or any provision of applicable law or regulation
purporting to prohibit payment by any Obligated Party, of the Guaranteed
Obligations or any part thereof.

 

(c)                                  Further, the
obligations of any Loan Guarantor hereunder are not discharged or impaired or
otherwise affected by: (i) the failure of the Lender to assert any claim or
demand or to enforce any remedy with respect to all or any part of the
Guaranteed Obligations; (ii) any waiver or modification of or supplement to any
provision of any agreement relating to the Guaranteed Obligations; (iii) any
release, non-perfection, or invalidity of any indirect or direct security for
the obligations of any Borrower for all or any part of the Guaranteed
Obligations or any obligations of any other guarantor of or other person liable
for any of the Guaranteed Obligations; (iv) any action or failure to act by the
Lender with respect to any collateral securing any part of the Guaranteed
Obligations; or (v) any default, failure or delay, willful or otherwise, in the
payment or performance of any of the Guaranteed Obligations, or any other
circumstance, act, omission or delay that might in any manner or to any extent
vary the risk of such Loan Guarantor or that would otherwise operate as a
discharge of any Loan Guarantor as a matter of law or equity (other than the
indefeasible payment in full in cash of the Guaranteed Obligations).

 

SECTION 9.04. Defenses Waived. To the fullest extent permitted
by applicable law, each Loan Guarantor hereby waives any defense based on or
arising out of any defense of any Borrower or any Loan Guarantor or the
unenforceability of all or any part of the Guaranteed Obligations from any
cause, or the cessation from any cause of the liability of any Borrower or any
Loan Guarantor, other than the indefeasible payment in full in cash of the
Guaranteed Obligations. Without limiting the generality of the foregoing, each
Loan Guarantor irrevocably waives acceptance hereof, presentment, demand,
protest and, to the fullest extent permitted by law, any notice not provided
for herein, as well as any requirement that at any time any action be taken by
any person against any Obligated Party, or any other person. Each Loan
Guarantor confirms that it is not a surety under any state law and shall not
raise any such law as a defense to its obligations hereunder. The Lender may,
at its election, foreclose on any Collateral held by it by one or more judicial
or nonjudicial sales, accept an assignment of any such Collateral in lieu of
foreclosure or otherwise act or fail to act with respect to any collateral
securing all or a part of the Guaranteed Obligations, compromise or adjust any
part of the Guaranteed Obligations, make any other accommodation with any
Obligated Party or exercise any other right or remedy available to it against
any Obligated Party, without affecting or impairing in any way the liability,
of such Loan Guarantor under this Loan Guaranty except to the extent the
Guaranteed Obligations have been fully and indefeasibly paid in cash. To the
fullest extent permitted by applicable law, each Loan Guarantor waives any
defense arising out of any such election even though that election may operate,
pursuant to applicable law, to impair or extinguish any right of reimbursement
or subrogation or other right or remedy of any Loan Guarantor against any
Obligated Party or any security.

 

SECTION 9.05. Rights of Subrogation. No Loan Guarantor will
assert any right, claim or cause of action, including, without limitation, a
claim of subrogation, contribution or indemnification that it has against any Obligated
Party, or any collateral, until the Loan Parties and the Loan Guarantors have
fully performed all their obligations to the Lender.

 

SECTION 9.06. Reinstatement; Stay of Acceleration. If at any
time any payment of any portion of the Guaranteed Obligations is rescinded or
must otherwise be restored or returned upon the insolvency, bankruptcy, or
reorganization of any Borrower or otherwise, each Loan Guarantor’s obligations
under this Loan Guaranty with respect to that payment shall be reinstated at such
time as though the payment had not been made and whether or not the Lender is
in possession of this Loan Guaranty. If acceleration of the time for payment of
any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or
reorganization of any Borrower, all such amounts otherwise subject to
acceleration under the terms of any agreement relating to the Guaranteed
Obligations shall nonetheless be payable by the Loan Guarantors forthwith on
demand by the Lender.

 

SECTION 9.07. Information. Each Loan Guarantor assumes all
responsibility for being and keeping itself informed of the Borrowers’
financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the Guaranteed Obligations and the nature, scope and
extent of the risks that each Loan Guarantor

 

54

 

assumes
and incurs under this Loan Guaranty, and agrees that the Lender shall not have
any duty to advise any Loan Guarantor of information known to it regarding
those circumstances or risks.

 

SECTION 9.08. Termination. The Lender may continue to make loans
or extend credit to the Borrowers based on this Loan Guaranty until five days
after it receives written notice of termination from any Loan Guarantor. Notwithstanding
receipt of any such notice, each Loan Guarantor will continue to be liable to
the Lender for any Guaranteed Obligations created, assumed or committed to
prior to the fifth day after receipt of the notice, and all subsequent
renewals, extensions, modifications and amendments with respect to, or
substitutions for, all or any part of that Guaranteed Obligations.

 

SECTION 9.09. Taxes. All payments of the Guaranteed Obligations
will be made by each Loan Guarantor free and clear of and without deduction for
any Indemnified Taxes or Other Taxes; provided that if any Loan
Guarantor shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Lender receives an amount equal
to the sum it would have received had no such deductions been made, (ii) such
Loan Guarantor shall make such deductions and (iii) such Loan Guarantor shall
pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

 

SECTION 9.10. Maximum Liability. The provisions of this Loan
Guaranty are severable, and in any action or proceeding involving any state
corporate law, or any state, federal or foreign bankruptcy, insolvency,
reorganization or other law affecting the rights of creditors generally, if the
obligations of any Loan Guarantor under this Loan Guaranty would otherwise be
held or determined to be avoidable, invalid or unenforceable on account of the
amount of such Loan Guarantor’s liability under this Loan Guaranty, then,
notwithstanding any other provision of this Loan Guaranty to the contrary, the
amount of such liability shall, without any further action by the Loan
Guarantors or the Lender, be automatically limited and reduced to the highest
amount that is valid and enforceable as determined in such action or proceeding
(such highest amount determined hereunder being the relevant Loan Guarantor’s “Maximum
Liability”. This Section with respect to the Maximum Liability of each Loan
Guarantor is intended solely to preserve the rights of the Lender to the
maximum extent not subject to avoidance under applicable law, and no Loan
Guarantor nor any other person or entity shall have any right or claim under
this Section with respect to such Maximum Liability, except to the extent
necessary so that the obligations of any Loan Guarantor hereunder shall not be
rendered voidable under applicable law. Each Loan Guarantor agrees that the
Guaranteed Obligations may at any time and from time to time exceed the Maximum
Liability of each Loan Guarantor without impairing this Loan Guaranty or
affecting the rights and remedies of the Lender hereunder, provided
that, nothing in this sentence shall be construed to increase any Loan
Guarantor’s obligations hereunder beyond its Maximum Liability.

 

SECTION 9.11. Contribution. In the event any Loan Guarantor (a “Paying
Guarantor”) shall make any payment or payments under this Loan Guaranty or
shall suffer any loss as a result of any realization upon any collateral
granted by it to secure its obligations under this Loan Guaranty, each other
Loan Guarantor (each a “Non-Paying Guarantor”) shall contribute to such
Paying Guarantor an amount equal to such Non-Paying Guarantor’s “Applicable
Percentage” of such payment or payments made, or losses suffered, by such
Paying Guarantor. For purposes of this Article IX, each Non-Paying Guarantor’s “Applicable
Percentage” with respect to any such payment or loss by a Paying Guarantor
shall be determined as of the date on which such payment or loss was made by
reference to the ratio of (i) such Non-Paying Guarantor’s Maximum Liability as
of such date (without giving effect to any right to receive, or obligation to
make, any contribution hereunder) or, if such Non-Paying Guarantor’s Maximum
Liability has not been determined, the aggregate amount of all monies received
by such Non-Paying Guarantor from the Borrowers after the date hereof (whether
by loan, capital infusion or by other means) to (ii) the aggregate Maximum
Liability of all Loan Guarantors hereunder (including such Paying Guarantor) as
of such date (without giving effect to any right to receive, or obligation to
make, any contribution hereunder), or to the extent that a Maximum Liability
has not been determined for any Loan Guarantor, the aggregate amount of all
monies received by such Loan Guarantors from the Borrowers after the date
hereof (whether by loan, capital infusion or by other means). Nothing in this
provision shall affect any Loan Guarantor’s several liability for the entire
amount of the Guaranteed Obligations (up to such Loan Guarantor’s Maximum
Liability). Each of the Loan Guarantors covenants and agrees that its right to
receive any contribution under this Loan Guaranty from a Non-Paying

 

55

 

Guarantor
shall be subordinate and junior in right of payment to the payment in full in
cash of the Guaranteed Obligations. This provision is for the benefit of the
Lender and the Loan Guarantors and may be enforced by any one, or more, or all
of them in accordance with the terms hereof.

 

SECTION 9.12. Liability Cumulative. The liability of each Loan
Party as a Loan Guarantor under this Article IX is in addition to and shall be
cumulative with all liabilities of each Loan Party to the Lender under this
Agreement and the other Loan Documents to which such Loan Party is a party or
in respect of any obligations or liabilities of the other Loan Parties, without
any limitation as to amount, unless the instrument or agreement evidencing or
creating such other liability specifically provides to the contrary.

 

ARTICLE X

 

The Borrower Representative

 

SECTION 10.01. Appointment; Nature of Relationship. Echo Global
Logistics, Inc. is hereby appointed by each of the Borrowers as its contractual
representative (herein referred to as the “Borrower Representative”) hereunder
and under each other Loan Document, and each of the Borrowers irrevocably
authorizes the Borrower Representative to act as the contractual representative
of such Borrower with the rights and duties expressly set forth herein and in
the other Loan Documents. The Borrower Representative agrees to act as such
contractual representative upon the express conditions contained in this Article
X. Additionally, the Borrowers hereby appoint the Borrower Representative as
their agent to receive all of the proceeds of the Loans in the Funding
Account(s), at which time the Borrower Representative shall promptly disburse
such Loans to the appropriate Borrower, provided that, in the case of a
Revolving Loan, such amount shall not exceed such Borrower’s Availability. The
Lender and its respective officers, directors, agents or employees, shall not
be liable to the Borrower Representative or any Borrower for any action taken
or omitted to be taken by the Borrower Representative or the Borrowers pursuant
to this Section 11.01.

 

SECTION 10.02. Powers. The Borrower Representative shall have
and may exercise such powers under the Loan Documents as are specifically
delegated to the Borrower Representative by the terms of each thereof, together
with such powers as are reasonably incidental thereto. The Borrower
Representative shall have no implied duties to the Borrowers, or any obligation
to the Lender to take any action thereunder except any action specifically
provided by the Loan Documents to be taken by the Borrower Representative.

 

SECTION 10.03. Employment of Agents. The Borrower Representative
may execute any of its duties as the Borrower Representative hereunder and
under any other Loan Document by or through authorized officers.

 

SECTION 10.04. Notices. Each Borrower shall immediately notify
the Borrower Representative of the occurrence of any Default or Unmatured
Default hereunder referring to this Agreement describing such Default or
Unmatured Default and stating that such notice is a “notice of default.” In the
event that the Borrower Representative receives such a notice, the Borrower Representative
shall give prompt notice thereof to the Lender. Any notice provided to the
Borrower Representative hereunder shall constitute notice to each Borrower on
the date received by the Borrower Representative.

 

SECTION 10.05. Successor Borrower Representative. Upon the prior
written consent of the Lender, the Borrower Representative may resign at any
time, such resignation to be effective upon the appointment of a successor
Borrower Representative.

 

SECTION 10.06. Execution of Loan Documents; Borrowing Base
Certificate. The Borrowers hereby empower and authorize the Borrower
Representative, on behalf of the Borrowers, to execute and deliver to the
Lender the Loan Documents and all related agreements, certificates, documents,
or instruments as shall be necessary or appropriate, to effect the purposes of
the Loan Documents, including without limitation, the Borrowing Base
Certificates and the Compliance Certificates. Each Borrower agrees that any
action taken by the Borrower Representative or the Borrowers in accordance with
the terms of this Agreement or the other Loan Documents, and

 

56

 

the
exercise by the Borrower Representative of its powers set forth therein or
herein, together with such other powers that are reasonably incidental thereto,
shall be binding upon all of the Borrowers.

 

SECTION
10.07. Reporting. Each Borrower hereby agrees that such Borrower shall
furnish promptly after each fiscal month to the Borrower Representative a copy
of its Borrowing Base Certificate and any other certificate or report required
hereunder or requested by the Borrower Representative on which the Borrower
Representative shall rely to prepare the Borrowing Base Certificates and
Compliance Certificates required pursuant to the provisions of this Agreement.

 

SECTION
10.08. Effect of Amendment and Restatement; Acknowledgement of Outstanding
Principal under Existing Loan Documents. (a) On the Effective Date, the
Existing Credit Agreement shall be deemed amended and restated in its entirety.
The parties hereto acknowledge and agree that (i) this Agreement and the other
Loan Documents, whether executed and delivered in connection herewith or
otherwise, do not constitute a novation, payment and reborrowing, or
termination of the obligations of Echo under the Existing Loan Documents as in
effect prior to the Effective Date and which remain outstanding; (ii) such
obligations of the Echo under the Existing Loan Documents are in all respects
continuing (as amended and restated hereby); (iii) the Liens and security
interests as granted under the Collateral Documents securing payment of such
obligations of Echo under and in connection with the Existing Loan Documents
are in all respects continuing and in full force and effect; (iv) references in
the Loan Documents to the “Loan Agreement” shall be deemed to be references to
this Agreement, and to the extent necessary to effect the foregoing, each such
Loan Document is hereby deemed amended accordingly, (v) all of the terms and
provisions of the Existing Loan Documents shall continue to apply for the
period prior to the Effective Date, including any determinations of payment
dates, interest rates, Events of Default or any amount that may be payable to
the Lender (or its assignees or replacements hereunder), (vi) the obligations
under the Existing Loan Agreement shall continue to be paid or prepaid on or
prior to the Effective Date, and shall from and after the Effective Date
continue to be owing and be subject to the terms of this Agreement, (vii) all
references in the Loan Documents to the “Lender” shall mean such terms as
defined in this Agreement.

 

(b)           The Borrowers
and the Lender and the other parties hereto acknowledge and agree that all principal,
interest, fees, costs, reimbursable expenses and indemnification obligations
accruing or arising under or in connection with the Existing Loan Documents
which remain unpaid and outstanding as of the Effective Date shall be and
remain outstanding and payable as an obligation under this Agreement and the
other Loan Documents and the principal is included in the definition of
Commitments under this Agreement. The Borrowers hereby acknowledge and agree
that (a) as of the date hereof, (i) the outstanding principal balance under the
Existing Credit Agreement is Eleven Million Three Thousand Five Hundred Six and
00/100 Dollars ($11,003,506.00) and (ii) the aggregate amount of Letter of
Credit Obligations is Seven Hundred Thirty Thousand and 00/100 ($730,000.00).

 

[signature page attached]

 

57

 

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

 

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  ECHO
  GLOBAL LOGISTICS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Menzel

  
	
   

  	
  Name:

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
  ECHO/BESTWAY
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Menzel

  
	
   

  	
  Name:
  

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
  ECHO/TMG
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Menzel

  
	
   

  	
  Name:

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
  ECHO/RT
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Menzel

  
	
   

  	
  Name:

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
  ECHO/FMI
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David B. Menzel

  
	
   

  	
  Name:

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy S. Irwin

  
	
   

  	
  Name:

  	
  Timothy
  S. Irwin

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

Amended and Restated Credit Agreement

 

 

FIRST AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”), dated
as of September 8, 2009 is entered into by and among Echo Global Logistics, Inc.,
a Delaware corporation (“Echo”), Echo/Bestway Holdings, LLC, a Delaware
limited liability company (“Echo/Bestway”), Echo/TMG Holdings, LLC, a
Delaware limited liability company (“Echo/TMG”), Echo/RT Holdings, LLC, a
Delaware limited liability company (“Echo/RT”), Echo/FMI Holdings, LLC, a
Delaware limited liability company (“Echo/FMI” and together with Echo, Echo/Bestway,
Echo/TMG and Echo/RT, the “Borrowers”) and JPMORGAN CHASE BANK, N. A. (the
“Bank”).

 

WHEREAS, the Bank
and the Borrowers are parties to that certain Amended and Restated Credit
Agreement dated as of August 26, 2009 (the “Existing Credit Agreement”
and as the Existing Credit Agreement is amended and modified by this Amendment,
the “Amended Credit Agreement”);

 

WHEREAS, Borrowers
have requested that the Bank amend the Existing Credit Agreement in certain
respects and the Bank is willing to amend the Existing Credit Agreement subject
to the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the premises and mutual agreements herein contained, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

SECTION 1

DEFINED TERMS

 

Capitalized terms not defined herein shall have the
meaning ascribed to such terms in the Existing Credit Agreement.

 

SECTION 2

 

AMENDMENTS TO EXISTING CREDIT AGREEMENT

 

2.1                               Amendment to Definitions

 

(a)                                  Amendment to Change in Control Definition. The
definition of “Change in Control” contained in Section 1.01 of the Existing
Credit Agreement is hereby amended by deleting the definition in its entirety
and substituting the following therefor:

 

“Change
in Control” means the occurrence of any event or transaction, including the
sale or exchange of outstanding shares of any Borrower’s capital stock or the
capital stock of any of the Loan Parties, or

 

 

series of related events or transactions, resulting
in (a) the holders of such outstanding capital stock immediately before
consummation of such event or transaction, or series of related events or
transactions, do not, immediately after consummation of such event or
transaction or series of related events or transactions, retain, directly or
indirectly, capital stock representing at least seventy percent (70%) of the
voting power of such Borrower, or (b) the Company ceases to own and control all
of the economic and voting rights associated with all of the outstanding
capital stock of any other Borrower provided, however, that (i) the merger or
consolidation of any Subsidiary of a Borrower with any other Subsidiary of such
Borrower, or with any Borrower so long as such Borrower is the surviving entity
of any such merger or consolidation, does not constitute a “Change of Control”
and (ii) a Qualified IPO does not constitute a “Change of Control.”

 

(b)                                 Amendment to
Prepayment Event Definition. The definition
of “Prepayment Event” contained in Section 1.01 of the Existing Credit
Agreement is hereby amended by deleting the definition in its entirety and
substituting the following therefor:

 

“Prepayment Event” means:

 

(a)                             any sale, transfer or other disposition (including pursuant to a sale and
leaseback transaction) of any property or asset of any Loan Party, other than
dispositions described in Section 6.05(a); or

 

(b)                            any casualty or other insured damage to, or any taking under power of
eminent domain or by condemnation or similar proceeding of, any property or
asset of any Loan Party; or

 

(c)                             the issuance by the Company of any Equity Interests, or the receipt by
the Company of any capital contribution other than any issuance of Equity
Interests relating to a Qualified IPO or option grants; or

 

(d)                            the incurrence by any Loan Party of any Indebtedness, other than
Indebtedness permitted under Section 6.01.

 

2.2                               Amendment to Prepayment of Loans Section. Subsection (e) of Section
2.10 of the Existing Credit Agreement is hereby amended by deleting the
subsection in its entirety and substituting the following therefor:

 

“(e) All
such amounts pursuant to Section 2.10(c) shall be applied, first to
prepay any Protective Advances that may be outstanding, pro rata, second to prepay the Revolving Loans without a corresponding reduction in the
Revolving Commitment and to cash collateralize outstanding LC Exposure. If the
precise amount of insurance or condemnation proceeds allocable to Inventory as
compared to Equipment, Fixtures and real property is not otherwise determined,

 

2

 

the allocation and application of those proceeds
shall be determined by the Lender, in its Permitted Discretion.”

 

2.3                               Amendment to Restricted Payment Section. Subsection (a) of Section
6.08 of the Existing Credit Agreement is hereby amended by deleting the
subsection in its entirety and substituting the following therefor:

 

“(a) No Loan Party will, nor
will it permit any Subsidiary to, declare or make, or agree to pay or make, directly
or indirectly, any Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, except (i) each Borrower may declare and pay dividends
with respect to its common stock payable solely in additional shares of its
common stock, and, with respect to its preferred stock, payable solely in
additional shares of such preferred stock or in shares of its common stock, (ii)
within five (5) Business Days of the closing of a Qualified IPO, Echo may pay
accrued but unpaid dividends which are required to be paid in connection with
such Qualified IPO in an aggregate amount not to exceed $3,800,000 and (iii) Subsidiaries
may declare and pay dividends ratably with respect to their Equity.”

 

SECTION 3

 

REPRESENTATIONS AND WARRANTIES

 

Each Borrower hereby represents and warrants to the
Bank that:

 

3.1                               Due Authorization, etc. The
execution and delivery of this Amendment and the performance of such Borrower’s
obligations under the Amended Credit Agreement, do not require any filing or
registration with or approval or consent of any governmental agency or
authority, do not and will not conflict with, result in any violation of or
constitute any default under any provision of the certificate of incorporation
or formation or bylaws or operating agreement of such Borrower, as applicable, or
any material agreement or other document binding upon or applicable to such
Borrower (or any of its properties) or any material law or governmental regulation
or court decree or order applicable to such Borrower, and will not result in or
require the creation or imposition of any lien or other encumbrance in any of
Borrowers’ properties pursuant to the provisions of any agreement binding upon
or applicable to any Borrower.

 

3.2                               Validity. This Amendment has been duly
executed and delivered by the Borrowers and, together with the Amended Credit
Agreement, constitutes a legal, valid and binding obligation of each Borrower, enforceable
against such Borrower in accordance with its terms subject, as to enforcement
only, to bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforceability of the rights of creditors generally.

 

3.3                               Representations and Warranties. The representations and
warranties contained in Article III of the Existing Credit Agreement are true
and correct on the date of this

 

3

 

Amendment,
except to the extent that such representations and warranties (a) solely relate
to an earlier date or (b) have been changed by circumstances permitted by the
Amended Credit Agreement.

 

3.4                               Absence of Defaults. No Event of Default or Default has occurred
or is occurring as of the date hereof.

 

SECTION 4

 

CONDITIONS PRECEDENT

 

This Amendment shall become effective upon satisfaction of all of the
following conditions precedent:

 

4.1                               Receipt of Documents. The Bank shall have received all of the
following, each in form and substance satisfactory to the Bank:

 

(a)                                  Amendment. (i) A counterpart
original of this Amendment duly executed by the Borrowers and (ii) a
counterpart original of that certain First Amendment to Amended and Restated
Subordination and Intercreditor Agreement dated as of the date hereof duly
executed by the Borrowers.

 

(b)                                 Other. Such other documents as the
Bank may reasonably request.

 

4.2                               No Material Change. No material adverse change in any Borrower’s
financial condition which, in the Bank’s sole opinion, would impair such
Borrower’s ability to meet its obligations under the Amended Credit Agreement
shall have occurred.

 

4.3                               Other Conditions. No Event of Default or Default shall have occurred
and be continuing under the Existing Credit Agreement.

 

SECTION 5

 

MISCELLANEOUS

 

5.1                               Documents Remain in Effect. Except as amended and modified by this Amendment
and the exhibits attached hereto, the Existing Credit Agreement and the other
documents executed pursuant to the Existing Credit Agreement remain in full
force and effect and each Borrower hereby ratifies, adopts and confirms its
representations, warranties, agreements and covenants contained in, and
obligations and liabilities under, the Existing Credit Agreement and the other
documents executed pursuant to the Existing Credit Agreement.

 

5.2                               Counterparts. This Amendment may be executed in any number of counterparts,
and by the parties hereto on the same or separate counterparts, and each such
counterpart, when executed and delivered, shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Amendment.

 

4

 

5.3                               Expenses.  The Borrowers agree, jointly and severally, to pay all costs and expenses
of the Bank (including reasonable fees, charges and disbursements of the Bank’s
attorneys) in connection with the preparation, negotiation, execution, delivery
and administration of this Amendment and all other instruments or documents
provided for herein or delivered or to be delivered hereunder or in connection
herewith. In addition, the Borrowers agree, jointly and severally, to pay, and
save the Bank harmless from all liability for, any stamp or other taxes which
may be payable in connection with the execution or delivery of this Amendment, the
borrowings under the Existing Credit Agreement, as amended hereby, and the
execution and delivery of any instruments or documents provided for herein or
delivered or to be delivered hereunder or in connection herewith. All
obligations provided in this Section 5.3 shall survive any termination of the
Amended Credit Agreement.

 

5.4                               Governing Law. This Amendment shall be a
contract made under and governed by the internal laws of the State of Illinois.
Wherever possible, each provision of this Amendment shall be interpreted in
such manner as to be effective and valid under applicable laws, but if any
provision of this Amendment shall be prohibited by or invalid under such laws, such
provisions shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Amendment.

 

5.5                               Successors. This Amendment shall be binding
upon the Borrowers, the Bank and their respective successors and assigns, and
shall inure to the benefit of the Borrowers, the Bank and the successors and
assigns of the Bank.

 

5.6                               Advice of Counsel. The Borrowers acknowledges that
they were advised by the Bank to seek the, advice of legal counsel in
negotiating and reviewing this Amendment, and further acknowledges that they
had the opportunity to obtain advice of legal counsel.

 

[signature page attached]

 

5

 

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

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  ECHO
  GLOBAL LOGISTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Menzel

  
	
   

  	
  Name:  

  	
  David
  B. Menzel

  
	
   

  	
  Title:
  

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  ECHO/BESTWAY
  HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Menzel

  
	
   

  	
  Name:
  

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  ECHO/TMG
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Menzel

  
	
   

  	
  Name:
  

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  ECHO/RT
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Menzel

  
	
   

  	
  Name:
  

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  ECHO/FMI
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Menzel

  
	
   

  	
  Name:
  

  	
  David
  B. Menzel

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy S. Irwin

  
	
   

  	
  Name:

  	
  Timothy
  S. Irwin

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

First Amendment to Amended
and Restated Credit AgreementFiled by sedaredgar.com - Cheetah Oil & Gas Ltd. - Exhibit 10.1

STOCK OPTION AGREEMENT 
CHEETAH OIL & GAS
LTD..

     THIS AGREEMENT is made
this 15th day of September, 2009, between Cheetah Oil & Gas Ltd.,
a Nevada corporation (the “Corporation”) and (the “Option Holder”).

1.     Grant of Option.
The Corporation hereby grants to the Option Holder an option to purchase shares
of its common stock (the “Shares”) in the amounts and upon the terms set forth
below. 

	

Relationship to 
Corporation 	No. of Shares 
Issuable Upon
      
Exercise of Options (1) 	

Option Exercise
      
Price 	

Date Options are First
      Exercisable 	

Expiration Date of
      
Option (2) 
	  	  	$0.10 	September 14, 2009 	September 14, 2014

	 	(1) 	The options were granted pursuant to the
      Corporation’s 2005 Stock Option Plan (the “Plan”). To the extent
      applicable, the provisions of the Plan shall be deemed a part of this
      Agreement. 
	 	 	
	 	(2) 	Expiration date is subject to the provisions of
      Section 4. 

2.     Time of Exercise of
Option. Subject to the provisions of Section 4 regarding termination of
the option, the options granted may be exercised at any time after the date(s)
indicated in Section 1 of this Agreement and prior to the Expiration Date of the
option.

3.     Method of Exercise.
The option shall be exercised by written notice directed to the Corporation, at
the Corporation’s principal place of business, accompanied by check, cash, bank
draft or money order payable to the Corporation in payment of the option price
for the number of Shares specified. The Corporation shall make prompt delivery
of such Shares, provided that if any law or regulation requires the Corporation
to take any action with respect to the Shares specified in such notice before
the issuance thereof, then the date of delivery of such Shares shall be extended
for the period necessary to take such action.

4.     Termination of
Option. Except as herein otherwise stated, the option, to the extent not
previously exercised, shall terminate upon the first to occur of the following
events:

	 	(a) 	 	
	 	 	any event provided by
      the Plan pursuant to which the option was granted (i.e. death, disability,
      etc.); 
	 	(b) 	 	
	 	 	the expiration of the
      option as provided in Section 1; 
	 	(c) 	 	
	 		if the Corporation
      terminates the Option Holder’s directorship or office with the Corporation
      for just cause, then the options granted to the Option Holder will expire
      on the earlier of: 
	 	 	(i) 	
	 	 	 	the expiration of the option as provided in
      Section 1; and 
	 	 	(ii) 	
	 			the date that is 30 days after the date of such
      termination, provided that the Option Holder may only exercise those
      options that are exercisable on the date of such termination; 
	 	(d) 	 	
	 			if the Option Holder voluntarily terminates his
      or her directorship or office with the Corporation, then the options
      granted to the Option Holder will expire on the earlier of: 
	 	 	(i) 	
	 	 	 	the expiration of the option as provided in
      Section 1; and 
	 	 	(ii)	 
	 	 	 	the date that is six months after the date of
      such termination; and 
	 	(e) 	 	
	 		if the Option Holder
      ceases to be a director, officer or employee of the Corporation or any of
      its affiliates for any reason other than cause, then unless otherwise
      determined by the board of directors, on the recommendation of the board
      of directors of the Corporation, any option held by the Option Holder at
      the effective date there of shall become exercisable for a period of up to 12 months.

For the purpose of this Agreement,
“just cause” means:

	 	(i) 	
			an act or acts of dishonesty on the part of the
      Option Holder resulting or intending to result directly or indirectly in
      gain or personal enrichment to which the Option Holder was not legally
      entitled, at the expense of the Corporation; or 
	 	(ii) 	
			a material breach of the Option Holder’s duties
      or responsibilities as a consultant, employee, director or officer of the
      Corporation resulting in material injury to the Corporation, provided
      however, that such breach shall not include any act or omission believed
      by the Option Holder in good faith to have been in or not opposed to the
      best interests of the Corporation. 

5.     Reclassification,
Consolidation or Merger. If the Company amalgamates or merges with or
into another corporation, any Shares receivable on the exercise of an option
shall be converted into the securities, property or cash which the Participant
would have received upon such amalgamation or merger if the Participant had
exercised his option immediately prior to the record date applicable to such
amalgamation or merger, and the option price shall be adjusted appropriately by
the board of directors and such adjustment shall be binding for all purposes of
the Plan.

6.     Notice to Corporation of
Certain Dispositions. Any Option Holder disposing of Shares of common
stock acquired on the exercise of an option granted pursuant to the
Corporation’s Plan by sale or exchange either (a) within two years after the
date of the grant of the option under which the Shares were acquired or (b)
within one year after the acquisition of such Shares, shall notify the
Corporation of such disposition and of the amount realized upon such
disposition.

7.     Restricted Stock.
The Shares issuable upon the exercise of any option will be restricted
securities as that term is defined in Rule 144 of the Securities and Exchange
Commission unless such Shares are covered by an effective registration
statement.

8.     Conflict. In the
event of a conflict between this Agreement and the applicable Plan, the terms
and conditions of this Agreement shall govern.

9.     Binding Effect.
This Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective heirs, executors, administrators, successors and
assigns.

10.     Execution in
Counterparts. This Agreement may be executed by the parties hereto in as
many counterparts as may be necessary, and each such agreement so executed shall
be deemed to be an original and, provided that all of the parties have executed
a counterpart, such counterparts together shall constitute a valid and binding
agreement, and notwithstanding the date of execution shall be deemed to bear the
date as set forth above. Such executed copy may be transmitted by telecopied
facsimile or other electronic method of transmission, and the reproduction of
signatures by facsimile or other electronic method of transmission will be
treated as binding as if originals.

     IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed on the day and year
first above written.

	CHEETAH OIL & GAS LTD.
    	 	OPTION HOLDER: 	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	per: 		 	 
    	 
	 	Robert McAllister , 	 	  	 
	 	CEO/President

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