Document:

exv10w13

Exhibit 10.13

 

 

 

QUINSTREET, INC.

AMENDED AND RESTATED

REVOLVING CREDIT AND TERM LOAN AGREEMENT

DATED AS OF JANUARY 14, 2010

COMERICA BANK

AS ADMINISTRATIVE AGENT AND LEAD ARRANGER

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	1. DEFINITIONS
	 	 	1	 
	1.1 Certain Defined Terms
	 	 	1	 
	 
	 	 	 	 
	2. REVOLVING CREDIT
	 	 	26	 
	2.1 Commitment
	 	 	26	 
	2.2 Accrual of Interest and Maturity; Evidence of Indebtedness
	 	 	27	 
	2.3 Requests for and Refundings and Conversions of Advances
	 	 	28	 
	2.4 Disbursement of Advances
	 	 	30	 
	2.5 Swing Line
	 	 	31	 
	2.6 Interest Payments; Default Interest
	 	 	37	 
	2.7 Optional Prepayments
	 	 	38	 
	2.8 Base Rate Advance in Absence of Election or Upon Default
	 	 	38	 
	2.9 Revolving Credit Facility Fee
	 	 	39	 
	2.10 Mandatory Repayment of Revolving Credit Advances
	 	 	39	 
	2.11 Optional Reduction or Termination of Revolving Credit Aggregate
Commitment
	 	 	40	 
	2.12 Use of Proceeds of Advances
	 	 	41	 
	2.13 Optional Increase in Revolving Credit Aggregate Commitment
	 	 	41	 
	 
	 	 	 	 
	3. LETTERS OF CREDIT
	 	 	43	 
	3.1 Letters of Credit
	 	 	43	 
	3.2 Conditions to Issuance
	 	 	43	 
	3.3 Notice
	 	 	45	 
	3.4 Letter of Credit Fees; Increased Costs
	 	 	45	 
	3.5 Other Fees
	 	 	46	 
	3.6 Participation Interests in and Drawings and Demands for Payment Under
Letters of Credit
	 	 	46	 
	3.7 Obligations Irrevocable
	 	 	49	 
	3.8 Risk Under Letters of Credit
	 	 	50	 
	3.9 Indemnification
	 	 	51	 
	3.10 Right of Reimbursement
	 	 	52	 
	 
	 	 	 	 
	4. TERM LOAN
	 	 	52	 
	4.1 Term Loan
	 	 	52	 
	4.2 Accrual of Interest and Maturity; Evidence of Indebtedness
	 	 	52	 
	4.3 Repayment of Principal
	 	 	53	 
	4.4 Term Loan Rate Requests; Refundings and Conversions of Advances of Term
Loan
	 	 	53	 
	4.5 Base Rate Advance in Absence of Election or Upon Default
	 	 	54	 
	4.6 Interest Payments; Default Interest
	 	 	55	 
	4.7 Optional Prepayment of Term Loan
	 	 	55	 
	4.8 Mandatory Prepayment of Term Loan
	 	 	56	 
	4.9 Use of Proceeds
	 	 	57	 

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	 	 	Page
	5. CONDITIONS
	 	 	57	 
	5.1 Conditions of Initial Advances
	 	 	57	 
	5.2 Continuing Conditions
	 	 	60	 
	 
	 	 	 	 
	6. REPRESENTATIONS AND WARRANTIES
	 	 	60	 
	6.1 Corporate Authority
	 	 	60	 
	6.2 Due Authorization
	 	 	60	 
	6.3 Good Title; Leases; Assets; No Liens
	 	 	60	 
	6.4 Taxes
	 	 	61	 
	6.5 No Defaults
	 	 	61	 
	6.6 Enforceability of Agreement and Loan Documents
	 	 	61	 
	6.7 Compliance with Laws
	 	 	61	 
	6.8 Non-contravention
	 	 	62	 
	6.9 Litigation
	 	 	62	 
	6.10 Consents, Approvals and Filings, Etc
	 	 	62	 
	6.11 Agreements Affecting Financial Condition
	 	 	63	 
	6.12 No Investment Company or Margin Stock
	 	 	63	 
	6.13 ERISA
	 	 	63	 
	6.14 Conditions Affecting Business or Properties
	 	 	63	 
	6.15 Environmental and Safety Matters
	 	 	63	 
	6.16 Subsidiaries
	 	 	64	 
	6.17 Management Agreements
	 	 	64	 
	6.18 [Intentionally Deleted
	 	 	64	 
	6.19 Franchises, Patents, Copyrights, Tradenames, etc
	 	 	64	 
	6.20 Capital Structure
	 	 	64	 
	6.21 Accuracy of Information
	 	 	65	 
	6.22 Solvency
	 	 	65	 
	6.23 Employee Matters
	 	 	65	 
	6.24 No Misrepresentation
	 	 	65	 
	6.25 Corporate Documents and Corporate Existence
	 	 	66	 
	 
	 	 	 	 
	7. AFFIRMATIVE COVENANTS
	 	 	66	 
	7.1 Financial Statements
	 	 	66	 
	7.2 Certificates; Other Information
	 	 	67	 
	7.3 Payment of Obligations
	 	 	68	 
	7.4 Conduct of Business and Maintenance of Existence; Compliance with Laws
	 	 	68	 
	7.5 Maintenance of Property; Insurance
	 	 	69	 
	7.6 Inspection of Property; Books and Records, Discussions
	 	 	69	 
	7.7 Notices
	 	 	69	 
	7.8 Hazardous Material Laws
	 	 	71	 
	7.9 Financial Covenants
	 	 	71	 
	7.10 Governmental and Other Approvals
	 	 	71	 
	7.11 Compliance with ERISA; ERISA Notices
	 	 	72	 
	7.12 Defense of Collateral
	 	 	72	 
	7.13 Future Subsidiaries; Additional Collateral
	 	 	72	 
	7.14 Accounts
	 	 	74	 
	7.15 Use of Proceeds
	 	 	74	 

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	 	 	Page
	7.17 Further Assurances and Information
	 	 	74	 
	 
	 	 	 	 
	8. NEGATIVE COVENANTS
	 	 	74	 
	8.1 Limitation on Debt
	 	 	74	 
	8.2 Limitation on Liens
	 	 	76	 
	8.3 Acquisitions
	 	 	77	 
	8.4 Limitation on Mergers, Dissolution or Sale of Assets
	 	 	77	 
	8.5 Restricted Payments
	 	 	79	 
	8.6 [Intentionally Deleted
	 	 	80	 
	8.7 Limitation on Investments, Loans and Advances
	 	 	80	 
	8.8 Transactions with Affiliates
	 	 	82	 
	8.9 Sale-Leaseback Transactions
	 	 	82	 
	8.10 Limitations on Other Restrictions
	 	 	82	 
	8.11 Prepayment of Debt
	 	 	83	 
	8.12 Amendment of Subordinated Debt Documents
	 	 	83	 
	8.13 Modification of Certain Agreements
	 	 	83	 
	8.14 Management Fees
	 	 	83	 
	8.15 Fiscal Year
	 	 	83	 
	 
	 	 	 	 
	9. DEFAULTS
	 	 	84	 
	9.1 Events of Default
	 	 	84	 
	9.2 Exercise of Remedies
	 	 	87	 
	9.3 Rights Cumulative
	 	 	87	 
	9.4 Waiver by Borrower of Certain Laws
	 	 	87	 
	9.5 Waiver of Defaults
	 	 	87	 
	9.6 Set Off
	 	 	88	 
	 
	 	 	 	 
	10. PAYMENTS, RECOVERIES AND COLLECTIONS
	 	 	88	 
	10.1 Payment Procedure
	 	 	88	 
	10.2 Application of Proceeds of Collateral
	 	 	90	 
	10.3 Pro-rata Recovery
	 	 	90	 
	10.4 Treatment of a Defaulting Lender
	 	 	90	 
	 
	 	 	 	 
	11. CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS
	 	 	91	 
	11.1 Reimbursement of Prepayment Costs
	 	 	91	 
	11.2 Eurodollar Lending Office
	 	 	92	 
	11.3 Circumstances Affecting LIBOR Rate Availability
	 	 	92	 
	11.4 Laws Affecting LIBOR Rate Availability
	 	 	93	 
	11.5 Increased Cost of Advances Carried at the LIBOR Rate
	 	 	93	 
	11.6 Capital Adequacy and Other Increased Costs
	 	 	94	 
	11.7 Right of Lenders to Fund through Branches and Affiliates
	 	 	95	 
	11.8 Margin Adjustment
	 	 	95	 
	 
	 	 	 	 
	12. AGENT
	 	 	96	 
	12.1 Appointment of Agent
	 	 	96	 
	12.2 Deposit Account with Agent or any Lender
	 	 	97	 
	12.3 Scope of Agent’s Duties
	 	 	97	 

iii

 

	 	 	 	 	 
	 	 	Page
	12.4 Successor Agent
	 	 	97	 
	12.5 Credit Decisions
	 	 	98	 
	12.6 Authority of Agent to Enforce This Agreement
	 	 	98	 
	12.7 Indemnification of Agent
	 	 	98	 
	12.8 Knowledge of Default
	 	 	99	 
	12.9 Agent’s Authorization; Action by Lenders
	 	 	99	 
	12.10 Enforcement Actions by the Agent
	 	 	100	 
	12.11 Collateral Matters
	 	 	100	 
	12.12 Agents in their Individual Capacities
	 	 	101	 
	12.13 Agent’s Fees
	 	 	101	 
	12.14 Documentation Agent or other Titles
	 	 	101	 
	12.15 No Reliance on Agent’s Customer Identification Program
	 	 	101	 
	 
	 	 	 	 
	13. MISCELLANEOUS
	 	 	102	 
	13.1 Accounting Principles
	 	 	102	 
	13.2 Consent to Jurisdiction
	 	 	102	 
	13.3 Law of California
	 	 	102	 
	13.4 Interest
	 	 	102	 
	13.5 Closing Costs and Other Costs; Indemnification
	 	 	103	 
	13.6 Notices
	 	 	104	 
	13.7 Further Action
	 	 	105	 
	13.8 Successors and Assigns; Participations; Assignments
	 	 	105	 
	13.9 Counterparts
	 	 	108	 
	13.10 Amendment and Waiver
	 	 	108	 
	13.11 Confidentiality
	 	 	110	 
	13.12 Substitution or Removal of Lenders
	 	 	110	 
	13.13 Withholding Taxes
	 	 	113	 
	13.14 Taxes and Fees
	 	 	113	 
	13.15 WAIVER OF JURY TRIAL
	 	 	114	 
	13.16 USA Patriot Act Notice
	 	 	116	 
	13.17 Complete Agreement; Conflicts
	 	 	116	 
	13.18 Severability
	 	 	116	 
	13.19 Table of Contents and Headings; Section References
	 	 	117	 
	13.20 Construction of Certain Provisions
	 	 	117	 
	13.21 Independence of Covenants
	 	 	117	 
	13.22 Electronic Transmissions
	 	 	117	 
	13.23 Advertisements
	 	 	118	 
	13.24 Reliance on and Survival of Provisions
	 	 	118	 
	13.25 Amendment and Restatement; Assignment and Assumptions
	 	 	118	 
	13.26 Individual Employee Liability to Lenders
	 	 	118	 

iv

 

EXHIBITS

A FORM OF REQUEST FOR REVOLVING CREDIT ADVANCE

B FORM OF REVOLVING CREDIT NOTE

C FORM OF SWING LINE NOTE

D FORM OF REQUEST FOR SWING LINE ADVANCE

E FORM OF NOTICE OF LETTERS OF CREDIT

F FORM OF SECURITY AGREEMENT

G [RESERVED]

H FORM OF ASSIGNMENT AGREEMENT

I FORM OF GUARANTY

J FORM OF COVENANT COMPLIANCE REPORT

K FORM OF TERM LOAN NOTE

L FORM OF TERM LOAN RATE REQUEST

M FORM OF SWING LINE PARTICIPATION CERTIFICATE

N FORM OF NEW LENDER ADDENDUM

SCHEDULES

1

 

QUINSTREET, INC.

AMENDED AND RESTATED

REVOLVING CREDIT AND TERM LOAN AGREEMENT

     This Amended and Restated Revolving Credit and Term Loan Agreement (“Agreement”) is made as of
the 14th day of January, 2010 to be effective on the Effective Date, by and among the financial
institutions from time to time signatory hereto (individually a “Lender,” and any and all such
financial institutions collectively the “Lenders”), Comerica Bank, as Administrative Agent for the
Lenders (in such capacity, the “Agent”), Arranger, Syndication Agent and Documentation Agent, and
QuinStreet, Inc. (“Borrower”).

RECITALS

     A. Borrower and Comerica Bank entered into that certain Revolving Credit and Term Loan
Agreement dated as of September 29, 2008 (as subsequently amended from time to time, the “Prior
Credit Agreement”).

     B. Borrower now desires to amend and replace the Prior Credit Agreement with an amended and
restated credit agreement evidenced by this Agreement.

     C. Borrower has requested that the Lenders extend to it credit and letters of credit on the
terms and conditions set forth herein.

     D. The Lenders are prepared to extend such credit as aforesaid, but only on the terms and
conditions set forth in this Agreement.

     NOW THEREFORE, in consideration of the covenants contained herein, Borrower, the Lenders, and
the Agent agree as follows:

1. DEFINITIONS.

     1.1 Certain Defined Terms. For the purposes of this Agreement the following terms will have the following meanings:

     “Account(s)” shall mean any account or account receivable as defined under the UCC, including
without limitation, with respect to any Person, any right of such Person to payment for goods sold
or leased or for services rendered.

     “Account Control Agreement(s)” shall mean those certain account control agreements, or similar
agreements that are delivered pursuant to Section 7.14 of this Agreement or otherwise, as the same
may be amended, restated or otherwise modified from time to time.

     “Account Debtor” shall mean the party who is obligated on or under any Account.

     “Adjusted Quick Ratio” shall mean as of any date of determination, a ratio the numerator of
which is Cash plus trade accounts less than ninety (90) days from invoice date and the denominator
of which is Current Liabilities plus the face amount of any Letters of Credit less
the

1

 

 current portion of Deferred Revenue, all as determined on a consolidated basis for Borrower and its
consolidated Subsidiaries in accordance with GAAP.

     “Advance(s)” shall mean, as the context may indicate, a borrowing requested by the Borrower,
and made by the Revolving Credit Lenders under Section 2.1 hereof, the Term Loan Lenders under
Section 4.1 hereof, or the Swing Line Lender under Section 2.5 hereof, including without limitation
any readvance, refunding or conversion of such borrowing pursuant to Section 2.3, 2.5 or 4.4
hereof, and any advance deemed to have been made in respect of a Letter of Credit under Section
3.6(a) hereof, and shall include, as applicable, a Eurodollar-based Advance, a Base Rate Advance
and a Quoted Rate Advance.

     “Affected Lender” shall have the meaning set forth in Section 13.12 hereof.

     “Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly
controlling (including but not limited to all directors and officers of such Person), controlled
by, or under direct or indirect common control with such Person. A Person shall be deemed to
control another Person for the purposes of this definition if such Person possesses, directly or
indirectly, the power (i) to vote 30% or more of the Equity Interests having ordinary voting power
for the election of directors or managers of such other Person or (ii) to direct or cause the
direction of the management and policies of such other Person, whether through the ownership of
voting securities, by contract or otherwise.

     “Agent” shall have the meaning set forth in the preamble, and include any successor agents
appointed in accordance with Section 12.4 hereof.

     “Agent’s Correspondent” shall mean for Eurodollar-based Advances, Agent’s Grand Cayman Branch
(or for the account of said branch office, at Agent’s main office in San Jose, California, United
States).

     “Applicable Fee Percentage” shall mean, as of any date of determination thereof, the
applicable percentage used to calculate certain of the fees due and payable hereunder, determined
by reference to the appropriate columns in the Pricing Matrix attached to this Agreement as
Schedule 1.1.

     “Applicable Interest Rate” shall mean, (i) with respect to each Revolving Credit Advance and
Term Loan Advance, the Eurodollar-based Rate or the Base Rate, and (ii) with respect to each Swing
Line Advance, the Base Rate or, the Quoted Rate, in each case as selected by the Borrower from time
to time and subject to the terms and conditions of this Agreement.

     “Applicable Margin” shall mean, as of any date of determination thereof, the applicable
interest rate margin, determined by reference to the appropriate columns in the Pricing Matrix
attached to this Agreement as Schedule 1.1, such Applicable Margin to be adjusted solely as
specified in Section 11.8 hereof.

     “Applicable Measuring Period” shall mean the period of four consecutive fiscal quarters ending
on the applicable date of determination.

2

 

     “Asset Sale” shall mean the sale, transfer or other disposition by any Credit Party of any
asset (other than the sale or transfer of less than one hundred percent (100%) of the stock or
other ownership interests of any Subsidiary) to any Person (other than to Borrower or a Guarantor).

     “Assignment Agreement” shall mean an Assignment Agreement substantially in the form of Exhibit
H hereto.

     “Authorized Signer” shall mean each person who has been authorized by the Borrower to execute
and deliver any requests for Advances hereunder pursuant to a written authorization delivered to
the Agent and whose signature card or incumbency certificate has been received by the Agent.

     “Bankruptcy Code” shall mean Title 11 of the United States Code and the rules promulgated
thereunder.

     “Base Rate” shall mean for any day, that rate of interest which is equal to the sum of the
Applicable Margin plus the greatest of (a) the Prime Rate for such day, (b) the Federal Funds
Effective Rate in effect on such day, plus one percent (1.0%), and (c) the Daily Adjusting LIBOR
Rate plus one percent (1.0%); provided, however, for purposes of determining the Base Rate during
any period that LIBOR Rate is unavailable as determined under Sections 11.3 or 11.4 hereof, the
Base Rate shall be determined using, for clause (c) hereof, the Daily Adjusting LIBOR Rate in
effect immediately prior to the LIBOR Rate becoming unavailable pursuant to Sections 11.3 or 11.4.

     “Base Rate Advance” shall mean an Advance which bears interest at the Base Rate.

     “Borrower” shall have the meaning set forth in the preamble to this Agreement.

     “Business Day” shall mean any day other than a Saturday or a Sunday on which commercial banks
are open for domestic and international business (including dealings in foreign exchange) in San
Jose, California and New York, New York, and in the case of a Business Day which relates to a
Eurodollar-based Advance, on which dealings are carried on in the London interbank eurodollar
market.

     “Capital Expenditures” shall mean, for any period, with respect to any Person (without
duplication), the aggregate of all expenditures incurred by such Person and its Subsidiaries during
such period for the acquisition or leasing (pursuant to a Capitalized Lease) of fixed or capital
assets or additions to equipment, plant and property that should be capitalized under GAAP on a
consolidated balance sheet of such Person and its Subsidiaries, but excluding expenditures made in
connection with the Reinvestment of Insurance Proceeds, Condemnation Proceeds or the Net Cash
Proceeds of Asset Sales.

     “Capitalized Lease” shall mean, as applied to any Person, any lease of any property (whether
real, personal or mixed) with respect to which the discounted present value of the rental
obligations of such Person as lessee thereunder, in conformity with GAAP, is required to be
capitalized on the balance sheet of that Person.

     “Cash” shall mean unrestricted cash, cash equivalents and marketable securities.

3

 

     “Cash Proceeds” shall mean Cash, proceeds of Advances of the Revolving Credit and proceeds of
Seller Notes that are payable in full within 12 months from the date of the closing of the related
acquisitions.

     “Change of Control” shall mean an event or series of events whereby any Person or “group”
(within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended)
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of
1934), directly or indirectly, of a sufficient number of shares of all classes of stock then
outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such
“person” or “group” to elect a majority of the Board of Directors of Borrower, who did not have
such power before such transaction.

     “Collateral” shall mean all property or rights in which a security interest, mortgage, lien or
other encumbrance for the benefit of the Lenders is or has been granted or arises or has arisen,
under or in connection with this Agreement, the other Loan Documents, or otherwise to secure the
Indebtedness.

     “Collateral Access Agreement” shall mean an agreement in form and substance satisfactory to
the Agent in its sole discretion, pursuant to which a mortgagee or lessor of real property on which
Collateral is stored or otherwise located, or a warehouseman, processor or other bailee of
inventory or other property owned by any Credit Party, that acknowledges the Liens under the
Collateral Documents and subordinates or waives any Liens held by such Person on such property and,
includes such other agreements with respect to the Collateral as Agent may require in its sole
discretion, as the same may be amended, restated or otherwise modified from time to time.

     “Collateral Documents” shall mean the Security Agreement, the Pledge Agreements, the
Mortgages, the Account Control Agreements, the Collateral Access Agreements, and all other security
documents (and any joinders thereto) executed by any Credit Party in favor of the Agent prior to,
on or after the Effective Date, in connection with any of the foregoing collateral documents, in
each case, as such collateral documents may be amended or otherwise modified from time to time.

     “Comerica Bank” shall mean Comerica Bank and its successors or assigns.

     “Condemnation Proceeds” shall mean the cash proceeds received by any Credit Party in respect
of any condemnation proceeding net of reasonable fees and expenses (including without limitation
attorneys’ fees and expenses) incurred in connection with the collection thereof.

     “Consolidated” (or “consolidated”) or “Consolidating” (or “consolidating”) shall mean, when
used with reference to any financial term in this Agreement, the aggregate for two or more Persons
of the amounts signified by such term for all such Persons determined on a consolidated (or
consolidating) basis in accordance with GAAP, applied on a consistent basis. Unless
otherwise specified herein, “Consolidated” and “Consolidating” shall refer to Borrower and its
Subsidiaries, determined on a Consolidated or Consolidating basis.

     “Covenant Compliance Report” shall mean the report to be furnished by Borrower to the Agent
pursuant to Section 7.2(a) hereof, substantially in the form annexed hereto as Exhibit J

4

 

and
certified by a Responsible Officer of the Borrower, in which report Borrower shall set forth the
information specified therein and which shall include a statement of then applicable level for the
Applicable Margin and Applicable Fee Percentages as specified in Schedule 1.1 attached to this
Agreement.

     “Credit Parties” shall mean the Borrower and its Subsidiaries, and “Credit Party” shall mean
any one of them, as the context indicates or otherwise requires.

     “Current Liabilities” shall mean, as of any applicable date, all amounts that should, in
accordance with GAAP, be included as current liabilities on the consolidated balance sheet of
Borrower and its Subsidiaries, as at such date (but excluding any Indebtedness to Lenders under the
Revolving Credit).

     “Daily Adjusting LIBOR Rate” shall mean for any day a per annum interest rate which is equal
to the quotient of the following:

	 	(a)	 	the LIBOR Rate;
	 
	 	 	 	divided by
	 
	 	(b)	 	a percentage (expressed as a decimal) equal to 1.00 minus the maximum rate on
such date at which Agent is required to maintain reserves on “Euro-currency
Liabilities” as defined in and pursuant to Regulation D of the Board of Governors of
the Federal Reserve System or, if such regulation or definition is modified, and as
long as Agent is required to maintain reserves against a category of liabilities which
includes eurodollar deposits or includes a category of assets which includes eurodollar
loans, the rate at which such reserves are required to be maintained on such category;

such sum to be rounded upward, if necessary, in the discretion of the Agent, to the seventh decimal
place.

     “Debt” shall mean as to any Person, without duplication (a) all Funded Debt of a Person, (b)
all Guarantee Obligations of such Person, (c) all obligations of such Person under conditional sale
or other title retention agreements relating to property or assets purchased by such Person, (d)
all indebtedness of such Person arising in connection with any Hedging Transaction entered into by
such Person, (e) all recourse Debt of any partnership of which such Person is the general partner,
and (f) any Off Balance Sheet Liabilities.

     “Default” shall mean any event that with the giving of notice or the passage of time, or both,
would constitute an Event of Default under this Agreement.

     “Defaulting Lender” shall mean a Lender which, in the reasonable determination of the Agent
(a) has failed to fund its Percentage of any Advance or to purchase participations in a Swing Line
Advance or any Reimbursement Obligations as required under this Agreement, unless such Lender is
disputing its funding obligation in good faith, (b) has otherwise failed to pay to the Agent or any
other Lender any other amount required to be paid by it under the terms of this Agreement or any
other Loan Document, unless such Lender is disputing such obligation

5

 

to pay any such amount in good
faith, (c) has been, or whose holding company has been, determined to be insolvent or that has
become subject to a bankruptcy, receivership or other similar proceeding, or (d) has had a
substantial portion of its assets or management (or a substantial portion of the assets or
management of its holding company) taken over by any governmental authority or any governmental
authority has restricted its ability to act under this Agreement, including its ability to enter
into amendments, waivers or modifications of this Agreement or any of the other Loan Documents
(provided that the exercise of the customary rights of a shareholder by a governmental authority
which owns shares in such Lender (or its holding company) shall not be covered by this clause (d)),
provided, however, in all cases that a Defaulting Lender shall no longer be deemed a Defaulting
Lender when (i) the Defaulting Lender shall have cured the conditions which shall have caused it to
be a Defaulting Lender hereunder and (ii) the Agent has agreed that such Lender shall no longer be
deemed a Defaulting Lender hereunder.

     “Defaulting Lender’s Unfunded Portion” shall mean such Defaulting Lender’s Revolving Credit
Percentage of the Revolving Credit Aggregate Commitment minus the sum of (a) the aggregate
principal amount of all Revolving Credit Advances funded by the Defaulting Lender under the
Revolving Credit, plus (b) such Defaulting Lender’s Revolving Credit Percentage of the aggregate
outstanding principal amount of all Swing Line Advances and Letter of Credit Obligations.

     “Deferred Revenue” shall mean all non-refundable amounts received in advance of performance
under contracts and not yet recognized as revenue.

     “Disclosure Letter” means the disclosure letter delivered to the Agent by the Borrower on the
Effective Date.

     “Distribution” is defined in Section 8.5 hereof.

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

     “Domestic Subsidiary” shall mean any Subsidiary of Borrower incorporated or organized under
the laws of the United States of America, or any state or other political subdivision thereof or
which is considered to be a “disregarded entity” for United States federal income tax purposes and
which is not a “controlled foreign corporation” as defined under Section 957 of the Internal
Revenue Code, in each case provided such Subsidiary is owned by Borrower or a Domestic Subsidiary
of Borrower, and “Domestic Subsidiaries” shall mean any or all of them.

     “EBITDA” shall mean with respect to any fiscal period an amount equal to the sum of earnings
before depreciation, amortization, non-cash stock compensation, net interest and taxes,
but excluding one-time acquisition costs related to FASB 141r, measured on a trailing four
fiscal quarter basis.

     “Effective Date” shall mean the date on which all of the conditions precedent set forth in
Sections 5.1 and 5.2 have been satisfied or waived in writing.

     “Electronic Transmission” shall mean each document, instruction, authorization, file,
information and any other communication transmitted, posted or otherwise made or

6

 

communicated by
e-mail or E-Fax, or otherwise to or from an E-System or other equivalent service.

     “Eligible Assignee” shall mean (a) a Lender; (b) an Affiliate of a Lender; (c) any Person
(other than a natural person) that is or will be engaged in the business of making, purchasing,
holding or otherwise investing in commercial loans or similar extensions of credit in the ordinary
course of its business, provided that such Person is administered or managed by a Lender, an
Affiliate of a Lender or an entity or Affiliate of an entity that administers or manages a Lender;
or (d) any other Person (other than a natural person) approved by the (i) Agent in its reasonable
discretion (and in the case of an assignment of a commitment under the Revolving Credit, the
Issuing Lender and Swing Line Lender), and (ii) unless a Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or delayed); provided
that (x) notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower, or any
of the Borrower’s Affiliates or Subsidiaries; (y) notwithstanding clause (d)(ii) of this
definition, no assignment shall be made to an entity which is a competitor of any Credit Party
without the consent of the Borrower, which consent may be withheld in its sole discretion; and (z)
no assignment shall be made to an Impaired Lender without the consent of the Agent, and in the case
of an assignment of a commitment under the Revolving Credit, the Issuing Lender and the Swing Line
Lender.

     “Equity Interest” shall mean (i) in the case of any corporation, all capital stock and any
securities exchangeable for or convertible into capital stock, (ii) in the case of an association
or business entity, any and all shares, interests, participations, rights or other equivalents of
corporate stock (however designated) in or to such association or entity, (iii) in the case of a
partnership or limited liability company, partnership or membership interests (whether general or
limited) and (iv) any other interest or participation that confers on a Person the right to receive
a share of the profits and losses of, or distribution of assets of, the issuing Person, and
including, in all of the foregoing cases described in clauses (i), (ii), (iii) or (iv), any
warrants, rights or other options to purchase or otherwise acquire any of the interests described
in any of the foregoing cases.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, or any
successor act or code and the regulations in effect from time to time thereunder.

     “E-System” shall mean any electronic system and any other Internet or extranet-based site,
whether such electronic system is owned, operated or hosted by the Agent, any of its Affiliates or
any other Person, providing for access to data protected by passcodes or other security system.

     “Eurodollar-based Advance” shall mean any Advance which bears interest at the Eurodollar-based
Rate.

     “Eurodollar-based Rate” shall mean a per annum interest rate which is equal to the sum of the
Applicable Margin, plus the quotient of:

     (i) the LIBOR Rate, divided by

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     (ii) a percentage equal to 100% minus the maximum rate on such date at which Agent is required
to maintain reserves on ‘Eurocurrency Liabilities’ as defined in and pursuant to Regulation D of
the Board of Governors of the Federal Reserve System or, if such regulation or definition is
modified, and as long as Agent is required to maintain reserves against a category of liabilities
which includes eurocurrency deposits or includes a category of assets which includes eurocurrency
loans, the rate at which such reserves are required to be maintained on such category,

such sum to be rounded upward, if necessary, in the discretion of the Agent, to the seventh decimal
place.

     “Eurodollar-Interest Period” shall mean, for any Eurodollar-based Advance, an Interest Period
of one, two or three months (or any shorter or longer periods agreed to in advance by the Borrower,
Agent and the Lenders) as selected by Borrower, for such Eurodollar-based Advance pursuant to
Section 2.3 or 4.4 hereof, as the case may be.

     “Eurodollar Lending Office” shall mean, (a) with respect to the Agent, Agent’s office located
at its Grand Caymans Branch or such other branch of Agent, domestic or foreign, as it may hereafter
designate as its Eurodollar Lending Office by written notice to Borrower and the Lenders and (b) as
to each of the Lenders, its office, branch or affiliate located at its address set forth on the
signature pages hereof (or identified thereon as its Eurodollar Lending Office), or at such other
office, branch or affiliate of such Lender as it may hereafter designate as its Eurodollar Lending
Office by written notice to Borrower and Agent.

     “Event of Default” shall mean each of the Events of Default specified in Section 9.1 hereof.

     “Excluded Equity Issuances” shall mean (a) any issuance of Equity Interests under any stock
option or employee incentive plans and issuances of Equity Interests of the Borrower pursuant to
the exercise of options or warrants issued under any such plans, (b) any issuance of Equity
Interests to current shareholders and other private equity issuances, (c) any issuance by any
Subsidiary of Borrower of its Equity Interests to Borrower or any other Subsidiary of Borrower, (d)
any receipt by Borrower or any Subsidiary of Borrower of a capital contribution from Borrower or
any other Subsidiary of Borrower, (e) issuances of Equity Interests, the Net Cash Proceeds of which
are applied by Borrower or any Subsidiary to the consideration paid for a Permitted Acquisition,
and (f) issuances of Equity Interests in connection with any IPO or other public equity offering.

     “Existing Letters of Credit” shall mean the letters of credit previously issued by Comerica
Bank for the account of certain of the Credit Parties which are listed in attached Schedule 1.4.

     “Federal Funds Effective Rate” shall mean, for any day, a fluctuating interest rate per annum
equal to the weighted average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if
such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day which is a

8

 

Business Day, the average of
the quotations for such day on such transactions received by Agent from three Federal funds brokers
of recognized standing selected reasonably by Agent, all as conclusively determined by the Agent,
such sum to be rounded upward, if necessary, to the nearest whole multiple of 1/100th of 1%.

     “Fee Letter” shall mean the fee letter by and between Borrower and Comerica Bank dated as of
December 2, 2009, relating to the Indebtedness hereunder, as amended, restated, replaced or
otherwise modified from time to time.

     “Fees” shall mean the Revolving Credit Facility Fee, the Letter of Credit Fees and the other
fees and charges (including any agency fees) payable by Borrower to the Lenders, the Issuing Lender
or Agent hereunder or under the Fee Letter.

     “Final Maturity Date” shall mean the last to occur of (i) the Revolving Credit Maturity Date
or (ii) the Term Loan Maturity Date.

     “Fiscal Year” shall mean the twelve-month period ending on each June 30.

     “Fixed Charge Coverage Ratio” shall mean as of any date of determination a ratio the numerator
of which is EBITDA for the preceding four fiscal quarters ending on the date of determination and
the denominator of which is the sum of each of the following fixed charges for the preceding four
fiscal quarters ending on such date of determination: unfinanced Capital Expenditures, plus Net
Cash Interest Expenses, plus cash taxes, plus cash dividends, plus trailing four fiscal quarters
payments of Debt which are actually made by Borrower (excluding unsecured payments with respect to
Seller Notes to the extent there is equivalent unused capacity under the Revolving Credit as of the
date paid), all as determined on a consolidated basis by Borrower and its consolidated Subsidiaries
in accordance with GAAP.

     “Foreign Subsidiary” shall mean any Subsidiary, other than a Domestic Subsidiary, and “Foreign
Subsidiaries” shall mean any or all of them.

     “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 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 Capitalized Leases, (c) all reimbursement obligations (actual, contingent or otherwise) of
such Person in respect of letters of credit, bankers acceptances or similar obligations issued or
created for the account of such Person, (d) all liabilities of the type
described in (a), (b) and (c) above that are 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, the amount of which is determined in accordance with GAAP; provided however
that so long as such Person is not personally liable for any such liability, the amount of such
liability shall be deemed to be the lesser of the fair market value at such date of the property
subject to the Lien securing such liability and the amount of the liability secured, and (e) all
Guarantee Obligations in respect of any liability which constitutes Funded Debt; provided,

9

 

however
that Funded Debt shall not include any indebtedness under any Hedging Transaction prior to the
occurrence of a termination event with respect thereto.

     “Funded Debt to EBITDA Ratio” shall mean as of any date of determination, a ratio the
numerator of which is Funded Debt and the denominator of which is EBITDA, all as determined on a
consolidated basis for Borrower and its consolidated Subsidiaries in accordance with GAAP.

     “GAAP” shall mean, as of any applicable date of determination, generally accepted accounting
principles in the United States of America, as applicable on such date, consistently applied, as in
effect on the Effective Date.

     “Governmental Obligations” means noncallable direct general obligations of the United States
of America or obligations the payment of principal of and interest on which is unconditionally
guaranteed by the United States of America.

     “Guarantee Obligation” shall mean as to any Person (the “guaranteeing person”) any obligation
of the guaranteeing Person in respect of any obligation of another Person (the “primary obligor”)
(including, without limitation, any bank under any letter of credit), the creation of which was
induced by a reimbursement agreement, guaranty agreement, keepwell agreement, purchase agreement,
counterindemnity or similar obligation issued by the guaranteeing person, in either case
guaranteeing or in effect guaranteeing any Funded Debt (the “primary obligations”) of the primary
obligor in any manner, whether directly or indirectly, including, without limitation, any
obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary
obligation or any property constituting direct or indirect security therefor, (ii) to advance or
supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain
working capital or equity capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (iii) to purchase property, securities or services primarily for
the purpose of assuring the owner of any such primary obligation of the ability of the primary
obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the
owner of any such primary obligation against loss in respect thereof; provided, however, that the
term Guarantee Obligation shall not include endorsements of instruments for deposit or collection
in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing
person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount
of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum
amount for which such guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for
which such guaranteeing person may be liable are not stated or determinable, in which case the
amount of
such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated
liability in respect thereof as determined by the applicable Person in good faith.

     “Guarantor(s)” shall mean each Domestic Subsidiary of Borrower which has executed and
delivered to the Agent a Guaranty (or a joinder to a Guaranty), and a Security Agreement (or a
joinder to the Security Agreement).

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     “Guaranty” shall mean, collectively, the Guaranty executed and delivered by the applicable
Guarantors on September 29, 2008, and those guaranty agreements executed and delivered from time to
time after the Effective Date (whether by execution of joinder agreements or otherwise) pursuant to
Section 7.13 hereof or otherwise, in each case in the form attached hereto as Exhibit I, as
amended, restated or otherwise modified from time to time.

     “Hazardous Material” shall mean any hazardous or toxic waste, substance or material defined or
regulated as such or regulated for reasons of health, safety or the environment in the Hazardous
Material Laws.

     “Hazardous Material Law(s)” shall mean all laws, codes, ordinances, rules, regulations and
other governmental restrictions and requirements issued by any federal, state, local or other
governmental or quasi-governmental authority or body (or any agency, instrumentality or political
subdivision thereof) pertaining to any Hazardous Material and which is present or alleged to be
present on or about or used in any facilities owned, leased or operated by any Credit Party, or any
portion thereof including, without limitation, those relating to soil, surface, subsurface ground
water conditions and the condition of the indoor and outdoor ambient air; any so-called “superfund”
or “superlien” law; and any other United States federal, state or local statute, law, ordinance,
code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards
of conduct concerning, any Hazardous Material, as now or at any time during the term of the
Agreement in effect.

     “Hedging Agreement” shall mean any agreement relating to a Hedging Transaction entered into
between the Borrower (or Borrower jointly with any Guarantor) and any Lender or an Affiliate of a
Lender.

     “Hedging Transaction” means each interest rate swap transaction, basis swap transaction,
currency hedge, forward rate transaction, equity transaction, equity index transaction, foreign
exchange transaction, cap transaction, floor transaction (including any option with respect to any
of these transactions and any combination of any of the foregoing).

     “Hereof”, “hereto”, “hereunder” and similar terms shall refer to this Agreement and not to any
particular paragraph or provision of this Agreement.

     “Impaired Lender” means a Defaulting Lender and any other Lender (a) which the Agent, the
Issuing Lender or Swing Line Lender believes, in good faith, has defaulted (and continues to be in
default) in fulfilling its obligations under any other syndicated credit facilities or as a
participant in any other credit facility and such Lender is not in good faith disputing that such a
failure has occurred, or (b) which, if carrying an investment grade rating of at least BBB- from
S&P or Baa3 from Moody’s at the time it became a party to this Agreement, no longer carries a
rating of at least BBB- from S&P or Baa3 from Moody’s, provided, however, in all cases that an
Impaired Lender shall no longer be deemed an Impaired Lender when (i) the Impaired Lender
shall have cured the conditions which shall have caused it to be an Impaired Lender hereunder and
(ii) the Agent has agreed that such Lender shall no longer be deemed an Impaired Lender hereunder.

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     “Indebtedness” shall mean all indebtedness and liabilities (including without limitation
principal, interest (including without limitation interest accruing at the then applicable rate
provided in this Agreement or any other applicable Loan Document after an applicable maturity date
and interest accruing at the then applicable rate provided in this Agreement or any other
applicable Loan Document after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to the Credit Parties whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding), fees, expenses and
other charges) arising under this Agreement or any of the other Loan Documents, whether direct or
indirect, absolute or contingent, of any Credit Party to any of the Lenders or Affiliates thereof
or to the Agent, in any manner and at any time, whether arising under this Agreement, the Guaranty
or any of the other Loan Documents (including without limitation, payment obligations under Hedging
Transactions evidenced by Hedging Agreements), due or hereafter to become due, now owing or that
may hereafter be incurred by any Credit Party to any of the Lenders or Affiliates thereof or to the
Agent, and which shall be deemed to include protective advances made by Agent with respect to the
Collateral under or pursuant to the terms of any Loan Document and any liabilities of any Credit
Party to Agent or any Lender arising in connection with any Lender Products, in each case whether
or not reduced to judgment, with interest according to the rates and terms specified, and any and
all consolidations, amendments, renewals, replacements, substitutions or extensions of any of the
foregoing; provided, however that for purposes of calculating the Indebtedness outstanding under
this Agreement or any of the other Loan Documents, the direct and indirect and absolute and
contingent obligations of the Credit Parties (whether direct or contingent) shall be determined
without duplication.

     “Initial Reinvestment Period” shall mean a 180-day period during which Reinvestment must be
commenced under Section 4.8(a) and (c) of this Agreement.

     “Insurance Proceeds” shall mean the cash proceeds received by any Credit Party from any
insurer in respect of any damage or destruction of any property or asset net of reasonable fees and
expenses (including without limitation attorneys fees and expenses) incurred solely in connection
with the recovery thereof.

     “Intercompany Note” shall mean any promissory note issued or to be issued by any Credit Party
to evidence an intercompany loan substantially in form and substance reasonably satisfactory to
Agent.

     “Interest Period” shall mean (a) with respect to a Eurodollar-based Advance, a
Eurodollar-Interest Period, commencing on the day a Eurodollar-based Advance is made, or on the
effective date of an election of the Eurodollar-based Rate made under Section 2.3 or 4.4 hereof,
and (b) with respect to a Swing Line Advance carried at the Quoted Rate, an interest period of 30
days (or any lesser number of days agreed to in advance by the Borrower, Agent and the Swing Line
Lender); provided, however that (i) any Interest Period which would otherwise end on a day which is
not a Business Day shall end on the next succeeding Business
Day, except that as to an Interest Period in respect of a Eurodollar-based Advance, if the
next succeeding Business Day falls in another calendar month, such Interest Period shall end on the
next preceding Business Day, (ii) when an Interest Period in respect of a Eurodollar-based Advance
begins on a day which has no numerically corresponding day in the calendar month during which such
Interest Period is to end, it shall end on the last Business Day of such calendar

12

 

month, and (iii)
no Interest Period in respect of any Advance shall extend beyond the Revolving Credit Maturity Date
or the Term Loan Maturity Date, as applicable.

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

     “Investment” shall mean, when used with respect to any Person, (a) any loan, investment or
advance made by such Person to any other Person (including, without limitation, any Guarantee
Obligation) in respect of any Equity Interest, Debt, obligation or liability of such other Person
and (b) any other investment made by such Person (however acquired) in Equity Interests in any
other Person, including, without limitation, any investment made in exchange for the issuance of
Equity Interest of such Person and any investment made as a capital contribution to such other
Person.

     “IPO” shall mean an initial public offering of Equity Interests of Borrower registered under
the Securities Act of 1933, as amended.

     “Issuing Lender” shall mean Comerica Bank in its capacity as issuer of one or more Letters of
Credit hereunder, or its successor designated by Borrower and the Revolving Credit Lenders.

     “Issuing Office” shall mean such office as Issuing Lender shall designate as its Issuing
Office.

     “Lender Products” shall mean any one or more of the following types of services or facilities
extended to the Credit Parties by any Lender: (i) credit cards, (ii) credit card processing
services, (iii) debit cards, (iv) purchase cards, (v) Automated Clearing House (ACH) transactions,
(vi) cash management, including controlled disbursement services, and (vii) establishing and
maintaining deposit accounts.

     “Lenders” shall have the meaning set forth in the preamble, and shall include the Revolving
Credit Lenders, the Term Loan Lenders, the Swing Line Lender and any assignee which becomes a
Lender pursuant to Section 13.8 hereof.

     “Letter of Credit Agreement” shall mean, collectively, the letter of credit application and
related documentation executed and/or delivered by the Borrower in respect of each Letter of
Credit, in each case satisfactory to the Issuing Lender, as amended, restated or otherwise modified
from time to time.

     “Letter of Credit Documents” shall have the meaning ascribed to such term in Section 3.7(a)
hereof.

     “Letter of Credit Fees” shall mean the fees payable in connection with Letters of Credit
pursuant to Section 3.4(a) and (b) hereof.

     “Letter of Credit Maximum Amount” shall mean Two Million Dollars ($2,000,000).

13

 

     “Letter of Credit Obligations” shall mean at any date of determination, the sum of (a) the
aggregate undrawn amount of all Letters of Credit then outstanding, and (b) the aggregate amount of
Reimbursement Obligations which remain unpaid as of such date.

     “Letter of Credit Payment” shall mean any amount paid or required to be paid by the Issuing
Lender in its capacity hereunder as issuer of a Letter of Credit as a result of a draft or other
demand for payment under any Letter of Credit.

     “Letter(s) of Credit” shall mean any standby letters of credit issued by Issuing Lender at the
request of or for the account of Borrower pursuant to Article 3 hereof and shall include, without
limitation, the Existing Letters of Credit.

     “LIBOR Rate” shall mean,

     (a) with respect the principal amount of any Eurodollar-based Advance outstanding hereunder,
the per annum rate of interest determined on the basis of the rate for deposits in United States
Dollars for a period equal to the relevant Eurodollar-Interest Period, commencing on the first day
of such Eurodollar-Interest Period, appearing on Page BBAM of the Bloomberg Financial Markets
Information Service as of 11:00 a.m. (Detroit, Michigan time) (or soon thereafter as practical),
two (2) Business Days prior to the first day of such Eurodollar-Interest Period. In the event that
such rate does not appear on Page BBAM of the Bloomberg Financial Markets Information Service (or
otherwise on such Service), the “LIBOR Rate” shall be determined by reference to such other
publicly available service for displaying LIBOR rates as may be agreed upon by Agent and Borrower,
or, in the absence of such agreement, the “LIBOR Rate” shall, instead, be the per annum rate equal
to the average (rounded upward, if necessary, to the nearest one-sixteenth of one percent (1/16%))
of the rate at which Agent is offered dollar deposits at or about 11:00 a.m. (Detroit, Michigan
time) (or soon thereafter as practical), two (2) Business Days prior to the first day of such
Eurodollar-Interest Period in the interbank LIBOR market in an amount comparable to the principal
amount of the relevant Eurodollar-based Advance which is to bear interest at such Eurodollar-based
Rate and for a period equal to the relevant Eurodollar-Interest Period; and

     (b) with respect to the principal amount of any Advance carried at the Daily Adjusting LIBOR
Rate outstanding hereunder, the per annum rate of interest determined on the basis of the rate for
deposits in United States Dollars for a period equal to one (1) month appearing on Page BBAM of the
Bloomberg Financial Markets Information Service as of 11:00 a.m. (Detroit, Michigan time) (or soon
thereafter as practical) on such day, or if such day is not a Business Day, on the immediately
preceding Business Day. In the event that such rate does not appear on Page BBAM of the Bloomberg
Financial Markets Information Service (or otherwise on such Service), the “LIBOR Rate” shall be
determined by reference to such other publicly available service for displaying eurodollar rates as
may be agreed upon by Agent and Borrower, or, in the absence of such agreement, the “LIBOR Rate”
shall, instead, be the per annum rate
equal to the average of the rate at which Agent is offered dollar deposits at or about 11:00
a.m. (Detroit, Michigan time) (or soon thereafter as practical) on such day in the interbank
eurodollar market in an amount comparable to the principal amount of the Indebtedness hereunder
which is to bear interest at such “LIBOR Rate” and for a period equal to one (1) month.

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     “Lien” shall mean any security interest in or lien on or against any property arising from any
pledge, assignment, hypothecation, mortgage, security interest, deposit arrangement, trust receipt,
conditional sale or title retaining contract, sale and leaseback transaction, Capitalized Lease,
consignment or bailment for security, or any other type of lien, charge, encumbrance, title
exception, preferential or priority arrangement affecting property (including with respect to
stock, any stockholder agreements, voting rights agreements, buy-back agreements and all similar
arrangements), whether based on common law or statute.

     “Loan Documents” shall mean, collectively, this Agreement, the Notes (if issued), the Letter
of Credit Agreements, the Letters of Credit, the Guaranty, the Subordination Agreements, the
Collateral Documents, each Hedging Agreement, and any other documents, certificates or agreements
that are executed and required to be delivered pursuant to any of the foregoing documents, as such
documents may be amended, restated or otherwise modified from time to time.

     “Majority Lenders” shall mean at any time (a) so long as the Revolving Credit Aggregate
Commitment has not been terminated, Lenders holding more than 50.0% of the sum of (i) the Revolving
Credit Aggregate Commitment plus (ii) the aggregate principal amount of Indebtedness then
outstanding under the Term Loan and (b) if the Revolving Credit Aggregate Commitment has been
terminated (whether by maturity, acceleration or otherwise), Lenders holding more than 50.0% of the
aggregate principal amount then outstanding under the Revolving Credit and the Term Loan; provided
that, for purposes of determining Majority Lenders hereunder, the Letter of Credit Obligations and
principal amount outstanding under the Swing Line shall be allocated among the Revolving Credit
Lenders based on their respective Revolving Credit Percentages; provided further that so long as
there are fewer than three Lenders, considering any Lender and its Affiliates as a single Lender,
“Majority Lenders” shall mean all Lenders.

     “Majority Revolving Credit Lenders” shall mean at any time (a) so long as the Revolving Credit
Aggregate Commitment has not been terminated, the Revolving Credit Lenders holding more than 50.0%
of the Revolving Credit Aggregate Commitment and (b) if the Revolving Credit Aggregate Commitment
has been terminated (whether by maturity, acceleration or otherwise), Revolving Credit Lenders
holding more than 50.0% of the aggregate principal amount then outstanding under the Revolving
Credit; provided that, for purposes of determining Majority Revolving Credit Lenders hereunder, the
Letter of Credit Obligations and principal amount outstanding under the Swing Line shall be
allocated among the Revolving Credit Lenders based on their respective Revolving Credit
Percentages; provided further that so long as there are fewer than three Revolving Credit Lenders,
considering any Revolving Credit Lender and its Affiliates as a single Revolving Credit Lender,
“Majority Revolving Credit Lenders” shall mean all Revolving Credit Lenders.

     “Majority Term Loan Lenders” shall mean at any time with respect to the Term Loan, Term Loan
Lenders holding more than 50.0% of the aggregate principal amount then outstanding under Term Loan;
provided however that so long as there are fewer than three Term Loan Lenders, considering any Term
Loan Lender and its Affiliates as a single Term Loan Lender, “Majority Term Loan Lenders” shall
mean all Term Loan Lenders.

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     “Material Adverse Effect” shall mean a material adverse effect on (a) the financial
condition, business, performance, operation or properties of the Credit Parties taken as a
whole, (b) the ability of any Obligor to perform its obligations under this Agreement, the
Notes (if issued) or any other Loan Document to which it is a party, or (c) the validity or
enforceability of this Agreement, any of the Notes (if issued) or any of the other Loan Documents
or the rights or remedies of the Agent or the Lenders hereunder or thereunder.

     “Material Subsidiary” shall mean any Subsidiary which is an operating entity and which has
annual gross revenues in excess of five percent (5%) of gross revenues of Borrower and its
consolidated Subsidiaries for the most recently completed fiscal year or assets with a book value
in excess of five percent (5%) of Total Assets for the most recently completed fiscal year.

     “Mortgages” shall mean the mortgages, deeds of trust and any other similar documents related
thereto or required thereby executed and delivered by a Credit Party on the Effective Date pursuant
to Section 5.1 hereof, if any, and executed and delivered after the Effective Date by a Credit
Party pursuant to Section 7.13 hereof or otherwise, and “Mortgage” shall mean any such document, as
such documents may be amended, restated or otherwise modified from time to time.

     “Multiemployer Plan” shall mean a Pension Plan which is a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

     “Net Cash Interest Expense” shall mean cash interest expense minus cash interest income.

     “Net Cash Proceeds” shall mean the aggregate cash payments received by any Credit Party from
any Asset Sale, the issuance of Equity Interests or the issuance of Subordinated Debt, as the case
may be, net of (i) the principal amount of any Debt that is secured by the applicable asset and
that is required to be repaid in connection with such transaction (other than Indebtedness under
the Loan Documents), (ii) the reasonable and customary out-of-pocket commissions, costs, premiums,
fees and other expenses incurred by such Credit Party in connection with such transaction (or, if
such costs and expenses have not been incurred or invoiced, the Borrower’s good faith estimate
thereof), including legal, accounting and investment banking fees, sales commissions, and other
third party charges, and (iii) of property taxes, transfer taxes and any other taxes paid or
payable by such Credit Party in respect of any sale or issuance.

     “New Agent Addendum” shall mean an addendum substantially in the form of Exhibit N attached
hereto, to be executed and delivered by each Agent becoming a part to this Agreement pursuant to
Section 2.13 hereof.

     “Non-Defaulting Lender” shall mean any Lender that is not, as of the date of relevance, a
Defaulting Lender.

     “Notes” shall mean the Revolving Credit Notes, the Swing Line Note and the Term Loan Notes.

     “Obligors” shall mean the Borrower and the Guarantors.

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     “Off Balance Sheet Liability(ies)” of a Person shall mean (i) any repurchase obligation or
liability of such Person with respect to accounts or notes receivables sold by such Person, (ii)
any liability under any sale and leaseback transaction which is not a Capitalized Lease, (iii) any
liability under any so-called “synthetic lease” transaction entered into by such Person, or (iv)
any obligation arising with respect to any other transaction which is the functional equivalent of
Debt or any of the liabilities set forth in subsections (i)-(iii) of this definition, but which
does not constitute a liability on the balance sheets of such Person.

     “Pay for Performance Marketing and Media Business” shall mean a business (1) whose primary
source of revenue is derived from marketing services, internet traffic or impressions or related
services or (2) owns or develops media or (3) owns or develops technology for use in marketing
services or media. (Examples of such businesses include internet or offline publishing, directory,
or media companies; technology companies that enable lead capture, media capabilities, or
monetization of media; online or offline lead generation companies, online or offline marketing
service providers; amongst others).

     “PBGC” shall mean the Pension Benefit Guaranty Corporation or any successor thereto.

     “Pension Plan” shall mean any plan established and maintained by a Credit Party, or
contributed to by a Credit Party, which is qualified under Section 401(a) of the Internal Revenue
Code and subject to the minimum funding standards of Section 412 of the Internal Revenue Code.

     “Percentage” shall mean, as applicable, the Revolving Credit Percentage, the Term Loan
Percentage or the Weighted Percentage.

     “Permitted Acquisition” shall mean any acquisition by Borrower or any wholly-owned Subsidiary
of Borrower of all or substantially all of the assets or Equity Interests of a Pay for Performance
Marketing and Media Business; provided that (1) for acquisitions using Cash Proceeds not in excess
of Forty Five Million Dollars ($45,000,000), such acquisitions satisfies and/or is conducted in
accordance with the requirements of clauses (a), (b), (d), (e) and (f) below; and (2) for
acquisitions using Cash Proceeds in excess of Forty Five Million Dollars ($45,000,000), such
acquisitions satisfies and/or is conducted in accordance with the requirements of clauses (a)
through (f) below and such acquisitions are consented to by Agent and the Majority Lenders:

	 	(a)	 	If such acquisition is structured as an acquisition of the
Equity Interests of any Person, then the Person so acquired shall (X) become a
wholly-owned direct Subsidiary of Borrower or of a wholly-owned Subsidiary of
Borrower and the Borrower or the applicable Subsidiary shall cause such
acquired Person to comply with Section 7.13 hereof or (Y) provided that the
Credit Parties continue to comply with Section 7.4(a) hereof, be merged with
and into Borrower or such Subsidiary (and, in the case of the Borrower, with
the Borrower being the surviving entity);

17

 

	 	(b)	 	If such acquisition is structured as the acquisition of assets,
such assets shall be acquired directly by Borrower or a wholly-owned Subsidiary
(subject to compliance with Section 7.4(a) hereof);
	 
	 	(c)	 	Borrower shall have delivered to Agent not less than ten (10)
(or such shorter period of time agreed to by the Agent) nor more than ninety
(90) days prior to the date of such acquisition, notice of such acquisition,
copies of all material documents relating to such acquisition (including the
acquisition agreement and any related material document), and historical
financial information (including income statements, balance sheets and cash
flows) covering at least three (3) complete fiscal years of the acquisition
target, if available, prior to the effective date of the acquisition or the
entire credit history of the acquisition target, whichever period is shorter,
in each case in form and substance reasonably satisfactory to the Agent;
	 
	 	(d)	 	Both immediately before and after the consummation of such
acquisition, no Default or Event of Default shall have occurred and be
continuing;
	 
	 	(e)	 	The acquisition shall not result in a Change of Control; and
	 
	 	(f)	 	After giving effect to such acquisition, the Borrower shall be
in compliance, on a pro forma basis, with the financial covenant ratios
required to be maintained under Section 7.9(b) and (c) as of the last day of
the fiscal quarter most recently ended.

     “Permitted Investments” shall mean with respect to any Person:

	 	(a)	 	Governmental Obligations;
	 
	 	(b)	 	Obligations of a state or commonwealth of the United States or
the obligations of the District of Columbia or any possession of the United
States, or any political subdivision of any of the foregoing, which are
described in Section 103(a) of the Internal Revenue Code and are graded in any
of the highest three (3) major grades as determined by at least one Rating
Agency; or secured, as to payments of principal and interest, by a letter of
credit provided by a financial institution or insurance provided by a bond
insurance company which in each case is itself or its debt is rated in one of
the highest three (3) major grades as determined by at least one Rating Agency;
	 
	 	(c)	 	Banker’s acceptances, commercial accounts, demand deposit
accounts, certificates of deposit, other time deposits or depository receipts
issued by
or maintained with any Lender or any Affiliate thereof, or any bank, trust
company, savings and loan association, savings bank or other financial
institution whose deposits are insured by the Federal Deposit Insurance
Corporation and whose reported capital and surplus equal at least
$250,000,000, provided that such minimum capital and surplus

18

 

	 	 	 	requirement
shall not apply to demand deposit accounts maintained by any Credit Party in
the ordinary course of business;
	 
	 	(d)	 	Commercial paper rated at the time of purchase within the two
highest classifications established by not less than one Rating Agency, and
which matures within 270 days after the date of issue;
	 
	 	(e)	 	Secured repurchase agreements against obligations itemized in
paragraph (a) above, and executed by a bank or trust company or by members of
the association of primary dealers or other recognized dealers in United States
government securities, the market value of which must be maintained at levels
at least equal to the amounts advanced;
	 
	 	(f)	 	Any fund or other pooling arrangement which exclusively
purchases and holds the investments itemized in (a) through (e) above;
	 
	 	(g)	 	Debt issued by Persons (other than Affiliates of the Borrower)
with a rating of “A” or higher from S&P or “A02” or higher from Moody’s (or
reasonably equivalent ratings of another internationally recognized ratings
agency in each case with maturities not exceeding two years form the date of
acquisition;
	 
	 	(h)	 	Deposits held with financial institutions in countries outside
of the United States where the Credit Parties conduct business; and
	 
	 	(i)	 	Investments made pursuant to the Borrower’s investment policy
as in effect on the Effective Date.

     “Permitted Liens” shall mean with respect to any Person:

	 	(a)	 	Liens for (i) taxes or governmental assessments or charges or
(ii) customs duties in connection with the importation of goods to the extent
such Liens attach to the imported goods that are the subject of the duties, in
each case (x) to the extent not yet due, (y) as to which the period of grace,
if any, related thereto has not expired or (z) which are being contested in
good faith by appropriate proceedings, provided that in the case of any such
contest, any proceedings for the enforcement of such liens have been suspended
and adequate reserves with respect thereto are maintained on the books of such
Person in conformity with GAAP;
	 
	 	(b)	 	carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s, processor’s, landlord’s liens or other like liens arising in the
ordinary course of business which secure obligations that are not overdue for a
period of more than 30 days or which are being contested in good faith by
appropriate proceedings, provided that in the case of any such contest, (x)
any proceedings commenced for the enforcement of such Liens have been
suspended and (y) appropriate reserves with respect thereto are maintained
on the books of such Person in conformity with GAAP;

19

 

	 	(c)	 	(i) Liens incurred in the ordinary course of business to secure
the performance of statutory obligations arising in connection with progress
payments or advance payments due under contracts with the United States
government or any agency thereof entered into in the ordinary course of
business and (ii) Liens incurred or deposits made in the ordinary course of
business to secure the performance of statutory obligations (not otherwise
permitted under subsection (f) of this definition), bids, leases, fee and
expense arrangements with trustees and fiscal agents, trade contracts, surety
and appeal bonds, performance bonds and other similar obligations (exclusive of
obligations incurred in connection with the borrowing of money, any
lease-purchase arrangements or the payment of the deferred purchase price of
property), provided, that in each case full provision for the payment of all
such obligations has been made on the books of such Person as may be required
by GAAP;
	 
	 	(d)	 	any attachment or judgment lien that remains unpaid, unvacated,
unbonded or unstayed by appeal or otherwise for a period ending on the earlier
of (i) thirty (30) consecutive days from the date of its attachment or entry
(as applicable) or (ii) the commencement of enforcement steps with respect
thereto, other than the filing of notice thereof in the public record;
	 
	 	(e)	 	minor survey exceptions or minor encumbrances, easements or
reservations, or rights of others for rights-of-way, utilities and other
similar purposes, or zoning or other restrictions as to the use of real
properties, or any interest of any lessor or sublessor under any lease
permitted hereunder which, in each case, does not materially interfere with the
business of such Person;
	 
	 	(f)	 	Liens arising in connection with worker’s compensation,
unemployment insurance, old age pensions and social security benefits and
similar statutory obligations (excluding Liens arising under ERISA), provided
that no enforcement proceedings in respect of such Liens are pending and
provisions have been made for the payment of such liens on the books of such
Person as may be required by GAAP;
	 
	 	(g)	 	continuations of Liens that are permitted under subsections
(a)-(g) hereof, provided such continuations do not violate the specific time
periods set forth in subsections (b) and (d) and provided further that such
Liens do not extend to any additional property or assets of any Credit Party or
secure any additional obligations of any Credit Party;
	 
	 	(h)	 	Liens in favor of financial institutions arising in connection
with a Credit Party’s deposit accounts held at such institutions to secure
standard fees for deposit services charged by, but not financing made available
by, such institutions; and

20

 

	 	(i)	 	Any interest or title of a lessor in the property (and the
proceeds, accession or products thereof) subject to an operating lease or
precautionary filings in respect of true leases.

Regardless of the language set forth in this definition, no Lien over the Equity
Interests of any Credit Party granted to any Person other than to Agent for the
benefit of the Lenders shall be deemed a “Permitted Lien” under the terms of this
Agreement.

     “Person” shall mean a natural person, corporation, limited liability company, partnership,
limited liability partnership, trust, incorporated or unincorporated organization, joint venture,
joint stock company, firm or association or a government or any agency or political subdivision
thereof or other entity of any kind.

     “Pledge Agreement(s)” shall mean any pledge agreement executed and delivered by a Credit Party
on or prior to the Effective Date pursuant to Section 5.1 hereof, if any, and executed and
delivered from time to time after the Effective Date by any Credit Party pursuant to Section 7.13
hereof or otherwise, and any agreements, instruments or documents related thereto, in each case in
form and substance satisfactory to Agent amended, restated or otherwise modified from time to time.

     “Prime Rate” shall mean the per annum rate of interest announced by the Agent, at its main
office from time to time as its “prime rate” (it being acknowledged that such announced rate may
not necessarily be the lowest rate charged by the Agent to any of its customers), which Prime Rate
shall change simultaneously with any change in such announced rate.

     “Pro Forma Balance Sheet” shall mean the pro forma consolidated balance sheet of the Borrower
which has been certified by a Responsible Officer of the Borrower that it fairly presents in all
material respects the pro forma adjustments reflecting the transactions (including payment of all
fees and expenses in connection therewith) contemplated by this Agreement and the other Loan
Documents.

     “Pro Forma Projected Financial Information” shall mean, as to any proposed acquisition, a
statement executed by the Borrower (supported by reasonable detail) setting forth the total
consideration to be paid or incurred in connection with the proposed acquisition, and pro forma
combined projected financial information for the Credit Parties and the acquisition target (if
applicable), consisting of projected balance sheets as of the proposed effective date of the
acquisition and as of the end of at least the next succeeding three (3) Fiscal Years following the
acquisition and projected statements of income and cash flows for each of those years, including
sufficient detail to permit calculation of the ratios described in Section 7.9 hereof, as projected
as of the effective date of the acquisition and as of the ends of those Fiscal Years and
accompanied by (i) a statement setting forth a calculation of the ratio so described, (ii) a
statement in
reasonable detail specifying all material assumptions underlying the projections and (iii)
such other information as the Agent or the Lenders shall reasonably request.

     “Purchasing Lender” shall have the meaning set forth in Section 13.12.

21

 

     “Quoted Rate” shall mean the rate of interest per annum offered by the Swing Line Lender in
its sole discretion with respect to a Swing Line Advance and accepted by the Borrower.

     “Quoted Rate Advance” means any Swing Line Advance which bears interest at the Quoted Rate.

     “Rating Agency” shall mean Moody’s Investor Services, Inc., Standard and Poor’s Ratings
Services, their respective successors or any other nationally recognized statistical rating
organization which is acceptable to the Agent.

     “Register” is defined in Section 13.8(g) hereof.

     “Reimbursement Obligation(s)” shall mean the aggregate amount of all unreimbursed drawings
under all Letters of Credit (excluding for the avoidance of doubt, reimbursement obligations that
are deemed satisfied pursuant to a deemed disbursement under Section 3.6(a)).

     “Reinvest” or “Reinvestment” shall mean, with respect to any Net Cash Proceeds, Insurance
Proceeds or Condemnation Proceeds received by any Person, the application of such monies to (i)
repair, improve or replace any tangible personal (excluding Inventory) or real property of the
Credit Parties or any intellectual property reasonably necessary in order to use or benefit from
any property or (ii) acquire any such property (excluding Inventory) to be used in the business of
such Person.

     “Reinvestment Certificate” is defined in Section 4.8(b) hereof.

     “Reinvestment Period” shall mean a 270-day period during which Reinvestment must be completed
under Section 4.8(b) and (d) of this Agreement.

     “Request for Advance” shall mean a Request for Revolving Credit Advance or a Request for Swing
Line Advance, as the context may indicate or otherwise require.

     “Request for Revolving Credit Advance” shall mean a request for a Revolving Credit Advance
issued by the Borrower under Section 2.3 of this Agreement in the form attached hereto as Exhibit
A.

     “Request for Swing Line Advance” shall mean a request for a Swing Line Advance issued by the
Borrower under Section 2.5(b) of this Agreement in the form attached hereto as Exhibit D.

     “Requirement of Law” shall mean as to any Person, the certificate of incorporation and bylaws,
the partnership agreement or other organizational or governing documents of such Person and any
law, treaty, rule or regulation or determination of an arbitration 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.

     “Responsible Officer” shall mean, with respect to any Person, the chief executive officer,
chief financial officer, treasurer, president or controller of such Person, or with respect to

22

 

compliance with financial covenants, the chief financial officer or the treasurer of such Person,
or any other officer of such Person having substantially the same authority and responsibility.

     “Revolving Credit” shall mean the revolving credit loans to be advanced to Borrower by the
applicable Revolving Credit Lenders pursuant to Article 2 hereof, in an aggregate amount (subject
to the terms hereof), not to exceed, at any one time outstanding, the Revolving Credit Aggregate
Commitment.

     “Revolving Credit Advance” shall mean a borrowing requested by Borrower and made by the
Revolving Credit Lenders under Section 2.1 of this Agreement, including without limitation any
readvance, refunding or conversion of such borrowing pursuant to Section 2.3 hereof and any deemed
disbursement of an Advance in respect of a Letter of Credit under Section 3.6(a) hereof, and may
include, subject to the terms hereof, Eurodollar-based Advances and Base Rate Advances.

     “Revolving Credit Aggregate Commitment” shall mean One Hundred Forty Million Dollars
($140,000,000), subject to increases pursuant to Section 2.13 hereof by an amount not to exceed the
Revolving Credit Optional Increase, subject to reduction or termination under Section 2.14 or 9.2
hereof.

     “Revolving Credit Commitment Amount” shall mean with respect to any Revolving Credit Lender,
(i) if the Revolving Credit Aggregate Commitment has not been terminated, the amount specified
opposite such Revolving Credit Lender’s name in the column entitled “Revolving Credit Commitment
Amount” on Schedule 1.2, as adjusted from time to time in accordance with the terms hereof; and
(ii) if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity,
acceleration or otherwise), the amount equal to its Percentage of the aggregate principal amount
outstanding under the Revolving Credit (including the outstanding Letter of Credit Obligations and
any outstanding Swing Line Advances).

     “Revolving Credit Facility Fee” shall mean the fee payable to Agent for distribution to the
Revolving Credit Lenders in accordance with Section 2.9 hereof.

     “Revolving Credit Lenders” shall mean the financial institutions from time to time parties
hereto as lenders of the Revolving Credit.

     “Revolving Credit Maturity Date” shall mean the earlier to occur of (i) January 13, 2014, and
(ii) the date on which the Revolving Credit Aggregate Commitment shall terminate in accordance with
the provisions of this Agreement.

     “Revolving Credit Notes” shall mean the revolving credit notes described in Section 2.2
hereof, made by Borrower to each of the Revolving Credit Lenders in the form annexed hereto as
Exhibit B, as such notes may be amended or supplemented from time to time, and any other notes
issued in substitution, replacement or renewal thereof from time to time.

     “Revolving Credit Optional Increase” shall mean an amount up to Fifty Million Dollars
($50,000,000).

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     “Revolving Credit Percentage” means, with respect to any Revolving Credit Lender, the
percentage specified opposite such Revolving Credit Lender’s name in the column entitled “Revolving
Credit Percentage” on Schedule 1.2, as adjusted from time to time in accordance with the terms
hereof.

     “Security Agreement” shall mean, collectively, the Security and Pledge Agreement executed and
delivered by Borrower and the Guarantors on September 29, 2008, and any such agreements executed
and delivered after the Effective Date (whether by execution of a joinder agreement to any existing
security agreement or otherwise) pursuant to Section 7.13 hereof or otherwise, in the form of the
Security Agreement annexed hereto as Exhibit F, as amended, restated or otherwise modified from
time to time.

     “Seller Notes” shall mean promissory notes issued by Borrower to selling stockholders in
connection with acquisitions made by Borrower that are permitted by Section 8.4 of this Agreement.

     “Subordinated Debt” shall mean any unsecured Funded Debt of any Credit Party issued on terms
and conditions satisfactory to Agent (and which may not contain a change of control provision which
is more favorable to the holder of the Subordinated Debt than the change of control provisions of
this Agreement without the consent of Agent which may be withheld in the sole discretion of Agent)
and other obligations under the Subordinated Debt Documents and any other Funded Debt of any Credit
Party which has been subordinated in right of payment and priority to the Indebtedness, all on
terms and conditions satisfactory to the Agent.

     “Subordinated Debt Documents” shall mean and include any documents evidencing any Subordinated
Debt, in each case, as the same may be amended, modified, supplemented or otherwise modified from
time to time in compliance with the terms of this Agreement.

     “Subordination Agreements” shall mean, any subordination agreements entered into by any Person
from time to time in favor of Agent in connection with any Subordinated Debt, the terms of which
are acceptable to the Agent and the Majority Lenders in the exercise of its and their reasonable
credit judgment, in each case as the same may be amended, restated or otherwise modified from time
to time, and “Subordination Agreement” shall mean any one of them.

     “Subsidiary(ies)” shall mean any other corporation, association, joint stock company, business
trust, limited liability company, partnership or any other business entity of which more than fifty
percent (50%) of the outstanding voting stock, share capital, membership, partnership or other
interests, as the case may be, is owned either directly or indirectly by any Person or one or more
of its Subsidiaries, or the management of which is otherwise controlled, directly, or indirectly
through one or more intermediaries, or both, by any Person and/or its Subsidiaries. Unless
otherwise specified to the contrary herein or the context otherwise requires, Subsidiary(ies) shall
refer to the Subsidiary(ies) of Borrower.

     “Sweep Agreement” means any agreement relating to the “Sweep to Loan” automated system of the
Agent or any other cash management arrangement which the Borrower and the
Agent have executed for the purposes of effecting the borrowing and repayment of Swing Line
Advances.

24

 

     “Swing Line” shall mean the revolving credit loans to be advanced to Borrower by the Swing
Line Lender pursuant to Section 2.5 hereof, in an aggregate amount (subject to the terms hereof),
not to exceed, at any one time outstanding, the Swing Line Maximum Amount.

     “Swing Line Advance” shall mean a borrowing requested by Borrower and made by Swing Line
Lender pursuant to Section 2.5 hereof and may include, subject to the terms hereof, Quoted
Rate-Advances and Base Rate Advances.

     “Swing Line Lender” shall mean Comerica Bank in its capacity as lender of the Swing Line under
Section 2.5 of this Agreement, or its successor as subsequently designated hereunder.

     “Swing Line Maximum Amount” shall mean Five Million Dollars ($5,000,000).

     “Swing Line Note” shall mean the swing line note which may be issued by Borrower to Swing Line
Lender pursuant to Section 2.5(b)(ii) hereof in the form annexed hereto as Exhibit C, as such note
may be amended or supplemented from time to time, and any note or notes issued in substitution,
replacement or renewal thereof from time to time.

     “Swing Line Participation Certificate” shall mean the Swing Line Participation Certificate
delivered by Agent to each Revolving Credit Lender pursuant to Section 2.5(e)(ii) hereof in the
form annexed hereto as Exhibit M.

     “Term Loan” shall mean the term loan to be made to Borrower by the Term Loan Lenders pursuant
to Section 4.1(a) hereof, in the aggregate principal amount of Thirty Five Million Dollars
($35,000,000).

     “Term Loan Advance” shall mean a borrowing requested by Borrower and made by the Term Loan
Lenders pursuant to Section 4.1(a) hereof, including without limitation any refunding or conversion
of such borrowing pursuant to Section 4.4 hereof, and may include, subject to the terms hereof,
Eurodollar-based Advances and Base Rate Advances.

     “Term Loan Amount” shall mean with respect to any Term Loan Lender, the amount equal to its
Term Loan Percentage of the aggregate principal amount outstanding under the Term Loan.

     “Term Loan Lenders” shall mean the financial institutions from time to time parties hereto as
lenders of the Term Loan.

     “Term Loan Maturity Date” shall mean January 14, 2014.

     “Term Notes” shall mean the term notes described in Section 4.2(e) hereof, made by Borrower to
each of the Term Loan Lenders in the form annexed hereto as Exhibit K, as such notes may be amended
or supplemented from time to time, and any other notes issued in substitution, replacement or
renewal thereof from time to time.

     “Term Loan Percentage” shall mean with respect to any Term Loan Lender, the percentage
specified opposite such Term Loan Lender’s name in the column entitled “Term

25

 

Loan Percentage” on
Schedule 1.2, as adjusted from time to time in accordance with the terms hereof.

     “Term Loan Rate Request” shall mean a request for the refunding or conversion of any Advance
of the Term Loan submitted by Borrower under Section 4.4 of this Agreement in the form annexed
hereto as Exhibit L.

     “Total Assets” is defined in accordance with GAAP and shall be determined on a consolidated
basis for Borrower and its consolidates Subsidiaries.

     “Uniform Commercial Code” or “UCC” shall mean the Uniform Commercial Code as in effect in any
applicable state; provided that, unless specified otherwise or the context otherwise requires, such
terms shall refer to the Uniform Commercial Code as in effect in the State of Michigan.

     “USA Patriot Act” is defined in Section 6.7.

     “Weighted Percentage” shall mean with respect to any Lender, its percentage share as set forth
in Schedule 1.2, as such Schedule may be revised by the Agent from time to time, which percentage
shall be calculated as follows:

     (a) as to such Lender, so long as the Revolving Credit Aggregate Commitment has not been
terminated, its weighted percentage calculated by dividing (i) the sum of (x) its Revolving Credit
Commitment Amount plus (y) its Term Loan Amount, by (ii) the sum of (x) the Revolving Credit
Aggregate Commitment plus (y) the aggregate principal amount of Indebtedness outstanding under the
Term Loan; and

     (b) as to such Lender, if the Revolving Credit Aggregate Commitment has been terminated
(whether by maturity, acceleration or otherwise), its weighted percentage calculated by dividing
(i) the sum of (x) its applicable Revolving Credit Commitment Amount plus (y) its Term Loan Amount,
by (ii) the sum of the aggregate principal amount outstanding under (x) the Revolving Credit
(including any outstanding Letter of Credit Obligations and outstanding Swing Line Advances), (y)
the Term Loan.

     “Withdrawal Liability” shall mean 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.

2. REVOLVING CREDIT.

     2.1 Commitment. Subject to the terms and conditions of this Agreement (including without limitation Section
2.3 hereof), each Revolving Credit Lender severally and for itself alone agrees to make Advances of
the Revolving Credit in Dollars to Borrower from time to time on any Business Day during the period
from the Effective Date hereof until (but excluding) the Revolving Credit
Maturity Date in an aggregate amount, not to exceed at any one time outstanding such Lender’s
Revolving Credit Percentage of the Revolving Credit Aggregate Commitment. Subject to the terms and
conditions set forth herein, advances, repayments and readvances may be made under the Revolving
Credit.

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     2.2 Accrual of Interest and Maturity; Evidence of Indebtedness.

	 	(a)	 	Borrower hereby unconditionally promises to pay to the Agent
for the account of each Revolving Credit Lender the then unpaid principal
amount of each Revolving Credit Advance (plus all accrued and unpaid interest)
of such Revolving Credit Lender to Borrower on the Revolving Credit Maturity
Date and on such other dates and in such other amounts as may be required from
time to time pursuant to this Agreement. Subject to the terms and conditions
hereof, each Revolving Credit Advance shall, from time to time from and after
the date of such Advance (until paid), bear interest at its Applicable Interest
Rate.
	 
	 	(b)	 	Each Revolving Credit Lender shall maintain in accordance with
its usual practice an account or accounts evidencing indebtedness of Borrower
to the appropriate lending office of such Revolving Credit Lender resulting
from each Revolving Credit Advance made by such lending office of such
Revolving Credit Lender from time to time, including the amounts of principal
and interest payable thereon and paid to such Revolving Credit Lender from time
to time under this Agreement.
	 
	 	(c)	 	The Agent shall maintain the Register pursuant to Section
13.8(g), and a subaccount therein for each Revolving Credit Lender, in which
Register and subaccounts (taken together) shall be recorded (i) the amount of
each Revolving Credit Advance made hereunder, the type thereof and each
Eurodollar-Interest Period applicable to any Eurodollar-based Advance, (ii) the
amount of any principal or interest due and payable or to become due and
payable from Borrower to each Revolving Credit Lender hereunder in respect of
the Revolving Credit Advances and (iii) both the amount of any sum received by
the Agent hereunder from Borrower in respect of the Revolving Credit Advances
and each Revolving Credit Lender’s share thereof.
	 
	 	(d)	 	The entries made in the Register maintained pursuant to
paragraph (c) of this Section 2.2 shall, absent manifest error, to the extent
permitted by applicable law, be prima facie evidence of the existence and
amounts of the obligations of Borrower therein recorded; provided,
however, that the failure of any Revolving Credit Lender or the Agent
to maintain the Register or any account, as applicable, or any error therein,
shall not in any manner affect the obligation of Borrower to repay the
Revolving Credit Advances (and all other amounts owing with respect thereto)
made to Borrower by the Revolving Credit Lenders in accordance with the terms
of this Agreement.
	 
	 	(e)	 	Borrower agrees that, upon written request to the Agent by any
Revolving Credit Lender, Borrower will execute and deliver, to such Revolving
Credit Lender, at Borrower’s own expense, a Revolving Credit Note

27

 

	 	 	 	evidencing the outstanding Revolving Credit Advances owing to such Revolving
Credit Lender.

     2.3 Requests for and Refundings and Conversions of Advances. Borrower may request an Advance of the Revolving Credit, a refund of any Revolving Credit
Advance in the same type of Advance or to convert any Revolving Credit Advance to any other type of
Revolving Credit Advance only by delivery to Agent of a Request for Revolving Credit Advance
executed by an Authorized Signer for the Borrower, subject to the following:

	 	(a)	 	each such Request for Revolving Credit Advance shall set forth
the information required on the Request for Revolving Credit Advance, including
without limitation:

	 	(i)	 	the proposed date of such Revolving Credit
Advance (or the refunding or conversion of an outstanding Revolving
Credit Advance), which must be a Business Day;
	 
	 	(ii)	 	whether such Advance is a new Revolving Credit
Advance or a refunding or conversion of an outstanding Revolving Credit
Advance; and
	 
	 	(iii)	 	whether such Revolving Credit Advance is to be
a Base Rate Advance or a Eurodollar-based Advance, and, except in the
case of a Base Rate Advance, the first Eurodollar-Interest Period
applicable thereto, provided, however, that the initial Revolving
Credit Advance made under this Agreement shall be a Base Rate Advance,
which may then be converted into a Eurodollar-based Advance in
compliance with this Agreement.

	 	(b)	 	each such Request for Revolving Credit Advance shall be
delivered to Agent by 12:00 p.m. (Pacific time) three (3) Business Days prior
to the proposed date of the Revolving Credit Advance, except in the case of a
Base Rate Advance, for which the Request for Revolving Credit Advance must be
delivered by 10:00 a.m. (Pacific time) on the proposed date for such Revolving
Credit Advance;

	 	(c)	 	on the proposed date of such Revolving Credit Advance, the sum
of (x) the aggregate principal amount of all Revolving Credit Advances and
Swing Line Advances outstanding on such date (including, without duplication)
the Advances that are deemed to be disbursed by Agent under Section 3.6(a)
hereof in respect of Borrower’s Reimbursement Obligations hereunder), plus (y)
the Letter of Credit Obligations as of such date, in each case after giving
effect to all outstanding requests for Revolving Credit Advances and Swing Line
Advances and for the issuance of any
Letters of Credit, shall not exceed the Revolving Credit Aggregate
Commitment;

28

 

	 	(d)	 	in the case of a Base Rate Advance, the principal amount of the
initial funding of such Advance, as opposed to any refunding or conversion
thereof, shall be at least $2,000,000 or the remainder available under the
Revolving Credit Aggregate Commitment if less than $2,000,000;
	 
	 	(e)	 	in the case of a Eurodollar-based Advance, the principal amount
of such Advance, plus the amount of any other outstanding Revolving Credit
Advance to be then combined therewith having the same Eurodollar-Interest
Period, if any, shall be at least $2,000,000 (or a larger integral multiple of
$100,000) or the remainder available under the Revolving Credit Aggregate
Commitment if less than $2,000,000 and at any one time there shall not be in
effect more than six (6) different Eurodollar-Interest Periods;
	 
	 	(f)	 	a Request for Revolving Credit Advance, once delivered to
Agent, shall not be revocable by Borrower and shall constitute a certification
by Borrower as of the date thereof that:

	 	(i)	 	all conditions to the making of Revolving
Credit Advances set forth in this Agreement have been satisfied, and
shall remain satisfied to the date of such Revolving Credit Advance
(both before and immediately after giving effect to such Revolving
Credit Advance);
	 
	 	(ii)	 	there is no Default or Event of Default in
existence, and none will exist upon the making of such Revolving Credit
Advance (both before and immediately after giving effect to such
Revolving Credit Advance); and
	 
	 	(iii)	 	the representations and warranties of the
Credit Parties contained in this Agreement and the other Loan Documents
are true and correct in all material respects and shall be true and
correct in all material respects as of the date of the making of such
Revolving Credit Advance (both before and immediately after giving
effect to such Revolving Credit Advance), other than any representation
or warranty that expressly speaks only as of a different date;

Agent, acting on behalf of the Revolving Credit Lenders, may also, at its option, lend under this
Section 2.3 upon the telephone or email request of an Authorized Signer of the Borrower to make
such requests and, in the event Agent, acting on behalf of the Revolving Credit Lenders, makes any
such Advance upon a telephone or email request, an Authorized Signer shall fax or deliver by
electronic file to Agent, on the same day as such telephone or email request, an executed Request
for Revolving Credit Advance. Borrower hereby authorizes Agent to disburse Advances under this
Section 2.3 pursuant to the telephone or email instructions of any person
purporting to be an Authorized Signer. Notwithstanding the foregoing, Borrower acknowledges that
Borrower shall bear all risk of loss resulting from disbursements made upon any telephone or email
request. Each telephone or email request for an Advance from an Authorized Signer for

29

 

the Borrower
shall constitute a certification of the matters set forth in the Request for Revolving Credit
Advance form as of the date of such requested Advance.

     2.4 Disbursement of Advances.

     (a) Upon receiving any Request for Revolving Credit Advance from Borrower under Section 2.3
hereof, Agent shall promptly notify each Revolving Credit Lender by wire, telex or telephone
(confirmed by wire, telecopy or telex) of the amount of such Advance being requested and the date
such Revolving Credit Advance is to be made by each Revolving Credit Lender in an amount equal to
its Revolving Credit Percentage of such Advance. Unless such Revolving Credit Lender’s commitment
to make Revolving Credit Advances hereunder shall have been suspended or terminated in accordance
with this Agreement, each such Revolving Credit Lender shall make available the amount of its
Revolving Credit Percentage of each Revolving Credit Advance in immediately available funds to
Agent, as follows:

	 	(i)	 	for Base Rate Advances, at the office of Agent
located at 500 Woodward Avenue, MC3289, Detroit, Michigan 48226, not
later than 12:00 p.m. (Pacific time) on the date of such Advance; and
	 
	 	(ii)	 	for Eurodollar-based Advances, at the Agent’s
Correspondent for the account of the Eurodollar Lending Office of the
Agent, not later than 12:00 p.m. (the time of the Agent’s
Correspondent) on the date of such Advance.

     (b) Subject to submission of an executed Request for Revolving Credit Advance by Borrower
without exceptions noted in the compliance certification therein, Agent shall make available to
Borrower the aggregate of the amounts so received by it from the Revolving Credit Lenders in like
funds and currencies:

	 	(i)	 	for Base Rate Advances, not later than 1:00
p.m. (Pacific time) on the date of such Revolving Credit Advance, by
credit to an account of Borrower maintained with Agent or to such other
account or third party as Borrower may reasonably direct in writing,
provided such direction is timely given; and
	 
	 	(ii)	 	for Eurodollar-based Advances, not later than
1:00 p.m. (the time of the Agent’s Correspondent) on the date of such
Revolving Credit Advance, by credit to an account of Borrower
maintained with Agent’s Correspondent or to such other account or third
party as Borrower may direct, provided such direction is timely given.

     (c) Agent shall deliver the documents and papers received by it for the account of each
Revolving Credit Lender to such Revolving Credit Lender. Unless Agent shall have been notified by
any Revolving Credit Lender prior to the date of any proposed Revolving Credit Advance that such
Revolving Credit Lender does not intend to make available to Agent such
Revolving Credit Lender’s Percentage of such Advance, Agent may assume that such Revolving
Credit Lender has made such amount available to Agent on such date, as aforesaid. Agent may, but
shall not be obligated to, make available to Borrower the amount of such payment in reliance

30

 

on
such assumption. If such amount is not in fact made available to Agent by such Revolving Credit
Lender, as aforesaid, Agent shall be entitled to recover such amount on demand from such Revolving
Credit Lender. If such Revolving Credit Lender does not pay such amount forthwith upon Agent’s
demand therefor and the Agent has in fact made a corresponding amount available to Borrower, the
Agent shall promptly notify Borrower and Borrower shall pay such amount to Agent, if such notice is
delivered to Borrower prior to 10:00 a.m. (Pacific time) on a Business Day, on the day such notice
is received, and otherwise on the next Business Day, and such amount paid by Borrower shall be
applied as a prepayment of the Revolving Credit (without any corresponding reduction in the
Revolving Credit Aggregate Commitment), reimbursing Agent for having funded said amounts on behalf
of such Revolving Credit Lender. The Borrower shall retain its claim against such Revolving Credit
Lender with respect to the amounts repaid by it to Agent and, if such Revolving Credit Lender
subsequently makes such amounts available to Agent, Agent shall promptly make such amounts
available to the Borrower as a Revolving Credit Advance. Agent shall also be entitled to recover
from such Revolving Credit Lender or Borrower, as the case may be, but without duplication,
interest on such amount in respect of each day from the date such amount was made available by
Agent to Borrower, to the date such amount is recovered by Agent, at a rate per annum equal to:

	 	(i)	 	in the case of such Revolving Credit Lender,
for the first two (2) Business Days such amount remains unpaid, the
Federal Funds Effective Rate, and thereafter, at the rate of interest
then applicable to such Revolving Credit Advances; and
	 
	 	(ii)	 	in the case of Borrower, the rate of interest
then applicable to such Advance of the Revolving Credit.

Until such Revolving Credit Lender has paid Agent such amount, such Revolving Credit Lender shall
have no interest in or rights with respect to such Advance for any purpose whatsoever. The
obligation of any Revolving Credit Lender to make any Revolving Credit Advance hereunder shall not
be affected by the failure of any other Revolving Credit Lender to make any Advance hereunder, and
no Revolving Credit Lender shall have any liability to Borrower or any of its Subsidiaries, the
Agent, any other Revolving Credit Lender, or any other party for another Revolving Credit Lender’s
failure to make any loan or Advance hereunder.

     2.5 Swing Line. (a) Swing Line Advances. The Swing Line Lender may, on the terms and subject to the
conditions hereinafter set forth (including without limitation Section 2.5(c) hereof), but shall
not be required to, make one or more Advances (each such advance being a “Swing Line Advance”) to
the Borrower from time to time on any Business Day during the period from the Effective Date hereof
until (but excluding) the Revolving Credit Maturity Date in an aggregate amount not to exceed at
any one time outstanding the Swing Line Maximum Amount. Subject to the terms set forth herein,
advances, repayments and readvances may be made under the Swing Line.

     (b) Accrual of Interest and Maturity; Evidence of Indebtedness.

	 	(i)	 	Swing Line Lender shall maintain in accordance
with its usual practice an account or accounts evidencing indebtedness
of the

31

 

	 	 	 	Borrower to Swing Line Lender resulting from each Swing Line
Advance from time to time, including the amount and date of each Swing
Line Advance, its Applicable Interest Rate, its Interest Period, if
any, and the amount and date of any repayment made on any Swing Line
Advance from time to time. The entries made in such account or accounts
of Swing Line Lender shall be prima facie evidence, absent manifest
error, of the existence and amounts of the obligations of the Borrower
therein recorded; provided, however, that the failure of Swing Line
Lender to maintain such account, as applicable, or any error therein,
shall not in any manner affect the obligation of the Borrower to repay
the Swing Line Advances (and all other amounts owing with respect
thereto) in accordance with the terms of this Agreement.
	 
	 	(ii)	 	The Borrower agrees that, upon the written
request of Swing Line Lender, the Borrower will execute and deliver to
Swing Line Lender a Swing Line Note.
	 
	 	(iii)	 	Borrower unconditionally promises to pay to
the Swing Line Lender the then unpaid principal amount of such Swing
Line Advance (plus all accrued and unpaid interest) on the Revolving
Credit Maturity Date and on such other dates and in such other amounts
as may be required from time to time pursuant to this Agreement.
Subject to the terms and conditions hereof, each Swing Line Advance
shall, from time to time after the date of such Advance (until paid),
bear interest at its Applicable Interest Rate.

	 	(c)	 	Requests for Swing Line Advances. Borrower may request
a Swing Line Advance by the delivery to Swing Line Lender of a Request for
Swing Line Advance executed by an Authorized Signer for the Borrower, subject
to the following:

	 	(i)	 	each such Request for Swing Line Advance shall
set forth the information required on the Request for Advance,
including without limitation, (A) the proposed date of such Swing Line
Advance, which must be a Business Day, (B) whether such Swing Line
Advance is to be a Base Rate Advance or a Quoted Rate Advance, and (C)
in the case of a Quoted Rate Advance, the duration of the Interest
Period applicable thereto;

	 	(ii)	 	on the proposed date of such Swing Line
Advance, after giving effect to all outstanding requests for Swing Line
Advances made by Borrower as of the date of determination, the
aggregate
principal amount of all Swing Line Advances outstanding on such date
shall not exceed the Swing Line Maximum Amount;

32

 

	 	(iii)	 	on the proposed date of such Swing Line
Advance, after giving effect to all outstanding requests for Revolving
Credit Advances and Swing Line Advances and Letters of Credit requested
by the Borrower on such date of determination (including, without
duplication, Advances that are deemed disbursed pursuant to Section
3.6(a) hereof in respect of the Borrower’s Reimbursement Obligations
hereunder), the sum of (x) the aggregate principal amount of all
Revolving Credit Advances and the Swing Line Advances outstanding on
such date plus (y) the Letter of Credit Obligations on such date shall
not exceed the Revolving Credit Aggregate Commitment;
	 
	 	(iv)	 	(A) in the case of a Swing Line Advance that is
a Base Rate Advance, the principal amount of the initial funding of
such Advance, as opposed to any refunding or conversion thereof, shall
be at least Two Hundred Fifty Thousand Dollars ($250,000) or such
lesser amount as may be agreed to by the Swing Line Lender, and (B) in
the case of a Swing Line Advance that is a Quoted Rate Advance, the
principal amount of such Advance, plus any other outstanding Swing Line
Advances to be then combined therewith having the same Interest Period,
if any, shall be at least Two Hundred Fifty Thousand Dollars ($250,000)
or such lesser amount as may be agreed to by the Swing Line Lender, and
at any time there shall not be in effect more than three (3) Interest
Rates and Interest Periods;
	 
	 	(v)	 	each such Request for Swing Line Advance shall
be delivered to the Swing Line Lender by 11:00 a.m. (Pacific time) on
the proposed date of the Swing Line Advance;
	 
	 	(vi)	 	each Request for Swing Line Advance, once
delivered to Swing Line Lender, shall not be revocable by Borrower, and
shall constitute and include a certification by Borrower as of the date
thereof that:

	 	(A)	 	all conditions to the making of
Swing Line Advances set forth in this Agreement shall have been
satisfied and shall remain satisfied to the date of such Swing
Line Advance (both before and immediately after giving effect to
such Swing Line Advance);
	 
	 	(B)	 	there is no Default or Event of
Default in existence, and none will exist upon the making of
such Swing Line Advance (both before and immediately after
giving effect
to such Swing Line Advance); and

	 	(C)	 	the representations and
warranties of the Credit Parties

33

 

	 	 	 	contained in this Agreement and
the other Loan Documents are true and correct in all material
respects and shall be true and correct in all material respect
as of the date of the making of such Swing Line Advance (both
before and immediately after giving effect to such Swing Line
Advance), other than any representation or warranty that
expressly speaks only as of a different date;

	 	(vii)	 	At the option of the Agent, subject to
revocation by Agent at any time and from time to time and so long as
the Agent is the Swing Line Lender, Borrower may utilize the Agent’s
“Sweep to Loan” automated system for obtaining Swing Line Advances and
making periodic repayments. At any time during which the “Sweep to
Loan” system is in effect, Swing Line Advances shall be advanced to
fund borrowing needs pursuant to the terms of the Sweep Agreement. Each
time a Swing Line Advance is made using the “Sweep to Loan” system,
Borrower shall be deemed to have certified to the Agent and the Lenders
each of the matters set forth in clause (vi) of this Section 2.5(b).
Principal and interest on Swing Line Advances requested, or deemed
requested, pursuant to this Section shall be paid pursuant to the terms
and conditions of the Sweep Agreement without any deduction, setoff or
counterclaim whatsoever. Unless sooner paid pursuant to the provisions
hereof or the provisions of the Sweep Agreement, the principal amount
of the Swing Loans shall be paid in full, together with accrued
interest thereon, on the Revolving Credit Maturity Date. Agent may
suspend or revoke Borrower’s privilege to use the “Sweep to Loan”
system at any time and from time to time for any reason and,
immediately upon any such revocation, the “Sweep to Loan” system shall
no longer be available to Borrower for the funding of Swing Line
Advances hereunder (or otherwise), and the regular procedures set forth
in this Section 2.5 for the making of Swing Line Advances shall be
deemed immediately to apply. Agent may, at its option, also elect to
make Swing Line Advances upon Borrower’s telephone requests on the
basis set forth in the last paragraph of Section 2.3, provided that the
Borrower complies with the provisions set forth in this Section 2.5.

	 	(d)	 	Disbursement of Swing Line Advances. Upon receiving
any executed Request for Swing Line Advance from the Borrower and the
satisfaction of the conditions set forth in Section 2.5(c) hereof, Swing Line
Lender shall make available to Borrower the amount so requested in Dollars not
later than 2:00 p.m. (Pacific time) on the date of such Advance, by credit to
an account of Borrower maintained with Agent or to such other account
or third party as the Borrower may reasonably direct in writing, provided
such direction is timely given. Swing Line Lender shall promptly notify
Agent of any Swing Line Advance by telephone, telex or telecopier.

34

 

	 	(e)	 	Refunding of or Participation Interest in Swing Line
Advances.

	 	(i)	 	The Agent, at any time in its sole and absolute
discretion, may, in each case on behalf of the Borrower (which hereby
irrevocably directs the Agent to act on their behalf) request each of
the Revolving Credit Lenders (including the Swing Line Lender in its
capacity as a Revolving Credit Lender) to make an Advance of the
Revolving Credit to Borrower, in an amount equal to such Revolving
Credit Lender’s Revolving Credit Percentage of the aggregate principal
amount of the Swing Line Advances outstanding on the date such notice
is given (the “Refunded Swing Line Advances”); provided however that
the Swing Line Advances carried at the Quoted Rate which are refunded
with Revolving Credit Advances at the request of the Swing Line Lender
at a time when no Default or Event of Default has occurred and is
continuing shall not be subject to Section 11.1 and no losses, costs or
expenses may be assessed by the Swing Line Lender against the Borrower
or the Revolving Credit Lenders as a consequence of such refunding. The
applicable Revolving Credit Advances used to refund any Swing Line
Advances shall be Base Rate Advances. In connection with the making of
any such Refunded Swing Line Advances or the purchase of a
participation interest in Swing Line Advances under Section 2.5(e)(ii)
hereof, the Swing Line Lender shall retain its claim against Borrower
for any unpaid interest or fees in respect thereof accrued to the date
of such refunding. Unless any of the events described in Section 9.1(i)
hereof shall have occurred (in which event the procedures of Section
2.5(e)(ii) shall apply) and regardless of whether the conditions
precedent set forth in this Agreement to the making of a Revolving
Credit Advance are then satisfied (but subject to Section 2.5(e)(iii)),
each Revolving Credit Lender shall make the proceeds of its Revolving
Credit Advance available to the Agent for the benefit of the Swing Line
Lender at the office of the Agent specified in Section 2.4(a) hereof
prior to 10:00 a.m. Pacific time on the Business Day next succeeding
the date such notice is given, in immediately available funds. The
proceeds of such Revolving Credit Advances shall be immediately applied
to repay the Refunded Swing Line Advances, subject to Section 11.1
hereof.

	 	(ii)	 	If, prior to the making of an Advance of the
Revolving Credit pursuant to Section 2.5(e)(i) hereof, one of the
events described in Section 9.1(i) hereof shall have occurred, each
Revolving Credit Lender will, on the date such Advance of the Revolving
Credit was
to have been made, purchase from the Swing Line Lender an undivided
participating interest in each Swing Line Advance that was to have
been refunded in an amount equal to its Revolving Credit Percentage
of such Swing Line Advance. Each Revolving

35

 

	 	 	 	Credit Lender within the
time periods specified in Section 2.5(e)(i) hereof, as applicable,
shall immediately transfer to the Agent, for the benefit of the Swing
Line Lender, in immediately available funds, an amount equal to its
Revolving Credit Percentage of the aggregate principal amount of all
Swing Line Advances outstanding as of such date. Upon receipt
thereof, the Agent will deliver to such Revolving Credit Lender a
Swing Line Participation Certificate evidencing such participation.
	 
	 	(iii)	 	Each Revolving Credit Lender’s obligation to
make Revolving Credit Advances to refund Swing Line Advances, and to
purchase participation interests, in accordance with Section 2.5(e)(i)
and (ii), respectively, shall be absolute and unconditional and shall
not be affected by any circumstance, including, without limitation, (A)
any set-off, counterclaim, recoupment, defense or other right which
such Revolving Credit Lender may have against Swing Line Lender,
Borrower or any other Person for any reason whatsoever; (B) the
occurrence or continuance of any Default or Event of Default; (C) any
adverse change in the condition (financial or otherwise) of Borrower or
any other Person; (D) any breach of this Agreement or any other Loan
Document by Borrower or any other Person; (E) any inability of Borrower
to satisfy the conditions precedent to borrowing set forth in this
Agreement on the date upon which such Revolving Credit Advance is to be
made or such participating interest is to be purchased; (F) the
termination of the Revolving Credit Aggregate Commitment hereunder; or
(G) any other circumstance, happening or event whatsoever, whether or
not similar to any of the foregoing. If any Revolving Credit Lender
does not make available to the Agent the amount required pursuant to
Section 2.5(e)(i) or (ii) hereof, as the case may be, the Agent on
behalf of the Swing Line Lender, shall be entitled to recover such
amount on demand from such Revolving Credit Lender, together with
interest thereon for each day from the date of non-payment until such
amount is paid in full (x) for the first two (2) Business Days such
amount remains unpaid, at the Federal Funds Effective Rate and (y)
thereafter, at the rate of interest then applicable to such Swing Line
Advances. The obligation of any Revolving Credit Lender to make
available its pro rata portion of the amounts required pursuant to
Section 2.5(e)(i) or (ii) hereof shall not be affected by the failure
of any other Revolving Credit Lender to make such amounts available,
and no Revolving Credit Lender shall have any liability to any Credit
Party, the Agent, the Swing Line Lender, or any other Revolving Credit
Lender or any other
party for another Revolving Credit Lender’s failure to make available
the amounts required under Section 2.5(e)(i) or (ii) hereof.

36

 

	 	(iv)	 	Notwithstanding the foregoing, no Revolving
Credit Lender shall be required to make any Revolving Credit Advance to
refund a Swing Line Advance or to purchase a participation in a Swing
Line Advance if at least two (2) Business Days prior to the making of
such Swing Line Advance by the Swing Line Lender, the officers of the
Swing Line Lender immediately responsible for matters concerning this
Agreement shall have received written notice from Agent or any Lender
that Swing Line Advances should be suspended based on the occurrence
and continuance of a Default or Event of Default and stating that such
notice is a “notice of default”; provided, however that the obligation
of the Revolving Credit Lenders to make such Revolving Credit Advances
(or purchase such participations) shall be reinstated upon the date on
which such Default or Event of Default has been waived by the requisite
Lenders.

     2.6 Interest Payments; Default Interest.

     (a) Interest on the unpaid balance of all Base Rate Advances of the Revolving Credit and the
Swing Line from time to time outstanding shall accrue from the date of such Advance to the date
repaid, at a per annum interest rate equal to the Base Rate, and shall be payable in immediately
available funds commencing on April 1, 2010 and on the first day of each calendar quarter
thereafter. Whenever any payment under this Section 2.6(a) shall become due on a day which is not a
Business Day, the date for payment thereof shall be extended to the next Business Day. Interest
accruing at the Base Rate shall be computed on the basis of a 360 day year and assessed for the
actual number of days elapsed, and in such computation effect shall be given to any change in the
interest rate resulting from a change in the Base Rate on the date of such change in the Base Rate.

     (b) Interest on each Eurodollar-based Advance of the Revolving Credit shall accrue at its
Eurodollar-based Rate and shall be payable in immediately available funds on the last day of the
Eurodollar-Interest Period applicable thereto (and, if any Eurodollar-Interest Period shall exceed
three months, then on the last Business Day of the third month of such Eurodollar-Interest Period,
and at three month intervals thereafter). Interest accruing at the Eurodollar-based Rate shall be
computed on the basis of a 360 day year and assessed for the actual number of days elapsed from the
first day of the Eurodollar-Interest Period applicable thereto to but not including the last day
thereof.

     (c) Interest on each Quoted Rate Advance of the Swing Line shall accrue at its Quoted Rate and
shall be payable in immediately available funds on the last day of the Interest Period applicable
thereto. Interest accruing at the Quoted Rate shall be computed on the basis of
a 360-day year and assessed for the actual number of days elapsed from the first day of the
Interest Period applicable thereto to, but not including, the last day thereof.

     (d) Notwithstanding anything to the contrary in the preceding sections, all accrued and unpaid
interest on any Revolving Credit Advance refunded or converted pursuant to Section

37

 

2.3 hereof and
any Swing Line Advance refunded pursuant to Section 2.5(e) hereof, shall be due and payable in full
on the date such Advance is refunded or converted.

     (e) In the case of any Event of Default under Section 9.1(i), immediately upon the occurrence
thereof, and in the case of any other Event of Default, immediately upon receipt by Agent of notice
from the Majority Revolving Credit Lenders, interest shall be payable on demand on all Revolving
Credit Advances and Swing Line Advances from time to time outstanding at a per annum rate equal to
the Applicable Interest Rate in respect of each such Advance plus, in the case of Eurodollar-based
Advances and Quoted Rate Advances, two percent (2%) for the remainder of the then existing Interest
Period, if any, and at all other such times, and for all Base Rate Advances from time to time
outstanding, at a per annum rate equal to the Base Rate plus two percent (2%) (but in no event in
excess of the maximum interest rate permitted by applicable law).

     2.7 Optional Prepayments.

     (a) (i) The Borrower may prepay all or part of the outstanding principal of any Base Rate
Advance(s) of the Revolving Credit at any time, provided that, unless the “Sweep to Loan” system
shall be in effect in respect of the Revolving Credit, after giving effect to any partial
prepayment, the aggregate balance of Base Rate Advance(s) of the Revolving Credit remaining
outstanding shall be at least One Million Dollars ($1,000,000), and (ii) subject to Section 2.10(c)
hereof, the Borrower may prepay all or part of the outstanding principal of any Eurodollar-based
Advance of the Revolving Credit at any time (subject to not less than three (3) Business Day’s
notice to Agent) provided that, after giving effect to any partial prepayment, the unpaid portion
of such Advance which is to be refunded or converted under Section 2.3 hereof shall be at least One
Million Dollars ($1,000,000).

     (b) (i) The Borrower may prepay all or part of the outstanding principal of any Swing Line
Advance carried at the Base Rate at any time, provided that after giving effect to any partial
prepayment, the aggregate balance of such Base Rate Swing Line Advances remaining outstanding shall
be at least One Hundred Thousand Dollars ($100,000) and (ii) subject to Section 2.10(c) hereof, the
Borrower may prepay all or part of the outstanding principal of any Swing Line Advance carried at
the Quoted Rate at any time (subject to not less than one (1) day’s notice to the Swing Line
Lender) provided that after giving effect to any partial prepayment, the aggregate balance of such
Quoted Rate Swing Line Advances remaining outstanding shall be at least Two Hundred Fifty Thousand
Dollars ($250,000).

     (c) Any prepayment of a Base Rate Advance made in accordance with this Section shall be
without premium or penalty and any prepayment of any other type of Advance shall be subject to the
provisions of Section 11.1 hereof, but otherwise without premium or penalty.

     2.8 Base Rate Advance in Absence of Election or Upon Default. If, (a) as to any outstanding Eurodollar-based Advance of the Revolving Credit or any
outstanding Quoted Rate Advance of the Swing Line, Agent has not received payment of all
outstanding principal and accrued interest on the last day of the Interest Period applicable
thereto, or does not receive a timely Request for Advance meeting the requirements of Section 2.3
or 2.5 hereof with respect to the refunding or conversion of such Advance, or (b) if on the last
day of the applicable Interest 

38

 

Period a Default or an Event of Default shall have occurred and be
continuing, then, on the last day of the applicable Interest  Period the principal amount of any
Eurodollar-based Advance or Quoted Rate Advance, as the case may be, which has not been prepaid
shall, absent a contrary election of the Majority Revolving Credit Lenders, be converted
automatically to a Base Rate Advance and the Agent shall thereafter promptly notify Borrower of
said action. All accrued and unpaid interest on any Advance converted to a Base Rate Advance under
this Section 2.8 shall be due and payable in full on the date such Advance is converted.

     2.9 Revolving Credit Facility Fee. From the Effective Date to the Revolving Credit Maturity Date, the Borrower shall pay to
the Agent for distribution to the Lenders pro-rata in accordance with their respective Percentages,
a Revolving Credit Facility Fee quarterly in arrears commencing April 1, 2010, and on the first day
of each calendar quarter thereafter (in respect of the prior three months or any portion thereof).
The Revolving Credit Facility Fee payable to each Lender shall be determined by multiplying the
Applicable Fee Percentage times the Revolving Credit Aggregate Commitment then in effect (whether
used or unused). The Revolving Credit Facility Fee shall be computed on the basis of a year of
three hundred sixty (360) days and assessed for the actual number of days elapsed. Whenever any
payment of the Revolving Credit Facility Fee shall be due on a day which is not a Business Day, the
date for payment thereof shall be extended to the next Business Day. Upon receipt of such payment,
Agent shall make prompt payment to each Lender of its share of the Revolving Credit Facility Fee
based upon its respective Percentage. The Revolving Credit Facility Fees described in this Section
are not refundable.

     2.10 Mandatory Repayment of Revolving Credit Advances.

     (a) If at any time and for any reason the aggregate outstanding principal amount of Revolving
Credit Advances plus Swing Line Advances, plus the outstanding Letter of Credit Obligations, shall
exceed the Revolving Credit Aggregate Commitment, Borrower shall immediately reduce any pending
request for a Revolving Credit Advance on such day by the amount of such excess and, to the extent
any excess remains thereafter, repay any Revolving Credit Advances and Swing Line Advances in an
amount equal to the lesser of the outstanding amount of such Advances and the amount of such
remaining excess, with such amounts to be applied between the Revolving Credit Advances and Swing
Line Advances as determined by the Agent and then, to the extent that any excess remains after
payment in full of all Revolving Credit Advances and Swing Line Advances, to provide cash
collateral in support of any Letter of Credit Obligations in an amount equal to the lesser of (x)
105% of the amount of such Letter of Credit Obligations and (y) the amount of such remaining
excess, with such cash collateral to be provided on the basis set forth in Section 9.2 hereof.
Borrower acknowledges that, in connection with any repayment required hereunder, it shall also be
responsible for the reimbursement of any prepayment or other costs required under Section 11.1
hereof. Any payments made pursuant to
this Section shall be applied first to outstanding Base Rate Advances under the Revolving
Credit, next to Swing Line Advances carried at the Base Rate and then to Eurodollar-based Advances
of the Revolving Credit, and then to Swing Line Advances carried at the Quoted Rate.

     (b) Upon the payment in full of the Term Loan, any prepayments required to be made on the Term
Loan pursuant to Sections 4.8(a), (b) and (c) of this Agreement shall instead be applied to prepay
any amounts outstanding under the Revolving Credit, without resulting in a

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permanent reduction in
the Revolving Credit Agreement Commitment. Subject to Section 10.2 hereof, any payments made
pursuant to this Section shall be applied first to outstanding Base Rate Advances under the
Revolving Credit, next to Swing Line Advances carried at the Base Rate, next to Eurodollar-based
Advances under the Revolving Credit, and then to Swing Line Advances carried at the Quoted Rate.
If any amounts remain thereafter, a portion of such prepayment equivalent to the undrawn amount of
any outstanding Letters of Credit shall be held by Lender as cash collateral for the Reimbursement
Obligations, with any additional prepayment monies being applied to any Fees, costs or expenses due
and outstanding under this Agreement, and with the remainder of such prepayment thereafter being
returned to Borrower.

     (c) To the extent that, on the date any mandatory repayment of the Revolving Credit Advances
under this Section 2.10 or payment pursuant to the terms of any of the Loan Documents is due, the
Indebtedness under the Revolving Credit or any other Indebtedness to be prepaid is being carried,
in whole or in part, at the Eurodollar-based Rate and no Default or Event of Default has occurred
and is continuing, Borrower may deposit the amount of such mandatory prepayment in a cash
collateral account to be held by the Agent, for and on behalf of the Revolving Credit Lenders, on
such terms and conditions as are reasonably acceptable to Agent and upon such deposit the
obligation of Borrower to make such mandatory prepayment shall be deemed satisfied. Subject to the
terms and conditions of said cash collateral account, sums on deposit in said cash collateral
account shall be applied (until exhausted) to reduce the principal balance of the Revolving Credit
on the last day of each Eurodollar-Interest Period attributable to the Eurodollar-based Advances of
such Revolving Advance, thereby avoiding breakage costs under Section 11.1 hereof; provided,
however, that if a Default or Event of Default shall have occurred at any time while sums are on
deposit in the cash collateral account, Agent may, in its sole discretion, elect to apply such sums
to reduce the principal balance of such Eurodollar-based Advances prior to the last day of the
applicable Eurodollar-Interest Period, and the Borrower will be obligated to pay any resulting
breakage costs under Section 11.1.

     2.11 Optional Reduction or Termination of Revolving Credit Aggregate Commitment. Borrower may, upon at least five (5) Business Days’ prior written notice to the Agent,
permanently reduce the Revolving Credit Aggregate Commitment in whole at any time, or in part from
time to time, without premium or penalty, provided that: (i) each partial reduction of the
Revolving Credit Aggregate Commitment shall be in an aggregate amount equal to Five Million Dollars
($5,000,000) or a larger integral multiple of One Hundred Thousand Dollars ($100,000); (ii)
Borrower shall prepay in accordance with the terms hereof the amount, if any, by which the
aggregate unpaid principal amount of Revolving Credit Advances and Swing Line Advances (including,
without duplication, any deemed Advances made under Section 3.6 hereof) outstanding hereunder, plus
the Letter of Credit Obligations, exceeds the amount of the then applicable Revolving Credit
Aggregate Commitment as so reduced, together with interest thereon to the date of prepayment; (iii) no reduction shall reduce the Revolving Credit
Aggregate Commitment to an amount which is less than the aggregate undrawn amount of any Letters of
Credit outstanding at such time; and (iv) no such reduction shall reduce the Swing Line Maximum
Amount unless Borrower so elects, provided that the Swing Line Maximum Amount shall at no time be
greater than the Revolving Credit Aggregate Commitment; provided, however that if the termination
or reduction of the Revolving Credit Aggregate Commitment requires the prepayment of a
Eurodollar-based Advance or a Quoted Rate Advance and such termination or reduction is made on a
day other than the last Business Day of the then current Interest Period

40

 

applicable to such
Eurodollar-based Advance or such Quoted Rate Advance, then, pursuant to Section 11.1, Borrower
shall compensate the Revolving Credit Lenders and/or the Swing Line Lender for any losses or, so
long as no Default or Event of Default has occurred and is continuing, Borrower may deposit the
amount of such prepayment in a collateral account as provided in Section 2.10(c). Reductions of the
Revolving Credit Aggregate Commitment and any accompanying prepayments of Advances of the Revolving
Credit shall be distributed by Agent to each Revolving Credit Lender in accordance with such
Revolving Credit Lender’s Revolving Percentage thereof, and will not be available for reinstatement
by or readvance to Borrower, and any accompanying prepayments of Advances of the Swing Line shall
be distributed by Agent to the Swing Line Lender and will not be available for reinstatement by or
readvance to the Borrower. Any reductions of the Revolving Credit Aggregate Commitment hereunder
shall reduce each Revolving Credit Lender’s portion thereof proportionately (based on the
applicable Percentages), and shall be permanent and irrevocable. Any payments made pursuant to this
Section shall be applied first to outstanding Base Rate Advances under the Revolving Credit, next
to Swing Line Advances carried at the Base Rate and then to Eurodollar-based Advances of the
Revolving Credit, and then to Swing Line Advances carried at the Quoted Rate.

     2.12 Use of Proceeds of Advances. Advances of the Revolving Credit shall be used to finance working capital and other lawful
corporate purposes.

     2.13 Optional Increase in Revolving Credit Aggregate Commitment. Provided that the Borrower has not previously elected to reduce or terminate the Revolving
Credit Aggregate Commitment under Section 2.11 hereof, Borrower may request that the Revolving
Credit Aggregate Commitment be increased in an aggregate amount (for all such Requests for
Increase) under this Section 2.13 not to exceed the Revolving Credit Optional Increase) (on the
same terms as the existing Revolving Credit), subject, in each case, to Section 11.1 hereof and to
the satisfaction concurrently with or prior to the date of each such request of the following
conditions:

     (a) Borrower shall have delivered to the Agent a written request for such increase, specifying
the amount of increase thereby requested (each such request, a “Request for Increase”);
provided, however, that (i) in the event Borrower has previously delivered a
Request for Increase pursuant to this Section 2.13, Borrower may not deliver a subsequent Request
for Increase until all the conditions to effectiveness of such first Request for Increase have been
fully satisfied (or such Request for Increase has been withdrawn); (ii) Borrower may make no more
than three (3) Requests for Increase during the term of this Agreement; and (iii) the amount of
increase requested, when added to the amount of any previous increase in the Revolving Credit
Aggregate Commitment under this Section 2.13, shall not exceed the Revolving Credit Optional
Increase;

     (b) within three (3) Business Days after the Agent’s receipt of any such Request for Increase,
the Agent shall inform each Revolving Credit Lender of the requested increase in the Revolving
Credit Aggregate Commitment, offer each Revolving Credit Lender to increase its applicable
commitment in an amount equal to its applicable Revolving Credit Percentage of the requested
increase in the Revolving Credit Aggregate Commitment, and request each such Revolving Credit
Lender to notify the Agent in writing whether such Revolving Credit Lender desires to increase its
applicable commitment by the requested amount. Each Revolving Credit

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Lender approving an increase
in its applicable commitment by the requested amount shall deliver its written consent thereto no
later than ten (10) Business Days of the Agent’s informing such Revolving Credit Lender of the
Request for Increase; if the Agent shall not have received a written consent from a Revolving
Credit Lender within such time period, such Revolving Credit Lender shall be deemed to have elected
not to increase its applicable commitment. If any one or more Revolving Credit Lenders shall elect
not to increase their respective commitments, then the Agent may offer to (A) each other Revolving
Credit Lender hereunder on a non-pro rata basis, (B) any other Lender hereunder, or (C) any other
Person meeting the requirements of Section 13.8(c) hereof (including, for the purposes of this
Section 2.13, any existing Revolving Credit Lender which agrees to increase its commitment
hereunder, the “New Revolving Credit Lender(s)”), to increase their respective applicable
commitments (or to provide a commitment);

     (c) the New Revolving Credit Lenders shall have become a party to this Agreement by executing
and delivering a New Lender Addendum for a minimum amount for each such New Revolving Credit Lender
that was not an existing Revolving Credit Lender of Five Million Dollars ($5,000,000) and an
aggregate amount for all such New Revolving Credit Lenders of that portion of the Aggregate
Revolving Credit Optional Increase, taking into account the amount of any prior increase in the
Revolving Credit Aggregate Commitment (pursuant to this Section 2.13) covered by the applicable
Request; provided, however, that each New Revolving Credit Lender shall remit to the Agent funds in
an amount equal to its Percentage (after giving effect to this Section 2.13) of all Advances of the
Revolving Credit then outstanding, such sums to be reallocated among and paid to the existing
Revolving Credit Lenders based upon the new Percentages as determined below;

     (d) Borrower shall have paid to the Agent for distribution to the existing Revolving Credit
Lenders, as applicable, all interest, fees (including the Revolving Credit Facility Fee, which
shall not be duplicative) and other amounts, if any, accrued to the effective date of such increase
and any breakage fees attributable to the reduction (prior to the last day of the applicable
Interest Period) of any outstanding Eurocurrency-based Advances, calculated on the basis set forth
in Section 15.1 hereof as though Borrowers had prepaid such Advances;

     (e) if requested, Borrower shall have executed and delivered to the Agent new Revolving Credit
Notes payable to each of the New Revolving Credit Lenders in the face amount of each such New
Revolving Credit Lender’s Percentage of the Revolving Credit Aggregate Commitment (after giving
effect to this Section 2.13) and, if applicable, renewal and replacement Revolving Credit Notes
payable to each of the existing Revolving Credit Lenders in the face
amount of each such Lender’s Revolving Credit Percentage of the Revolving Credit Aggregate
Commitment (after giving effect to this Section 2.13), dated as of the effective date of such
increase (with appropriate insertions relevant to such Notes and acceptable to the applicable
Revolving Credit Lenders, including the New Revolving Credit Lenders);

     (f) no Default or Event of Default shall have occurred and be continuing;

     (g) such other amendments, acknowledgments, consents, documents, instruments, any
registrations, if any, shall have been executed and delivered and/or obtained by Borrower as
required by the Agent, in its reasonable discretion; and

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     (h) the Agent may, without the consent of the Majority Lenders or any Lender effect amendments
to this Agreement as may be appropriate in the opinion of the Agent to effect the provisions of
this Section 2.13.

3. LETTERS OF CREDIT.

     3.1 Letters of Credit. Subject to the terms and conditions of this Agreement, Issuing Lender shall through the
Issuing Office, at any time and from time to time from and after the date hereof until thirty (30)
days prior to the Revolving Credit Maturity Date, upon the written request of Borrower accompanied
by a duly executed Letter of Credit Agreement and such other documentation related to the requested
Letter of Credit as the Issuing Lender may require, issue Letters of Credit in Dollars for the
account of Borrower, in an aggregate amount for all Letters of Credit issued hereunder at any one
time outstanding not to exceed the Letter of Credit Maximum Amount. Each Letter of Credit shall be
in a minimum face amount of One Hundred Thousand Dollars ($100,000) (or such lesser amount as may
be agreed to by Issuing Lender) and each Letter of Credit (including any renewal thereof) shall
expire not later than the first to occur of (i) one year after the date of issuance thereof and
(ii) ten (10) Business Days prior to the Revolving Credit Maturity Date in effect on the date of
issuance thereof. The submission of all applications in respect of and the issuance of each Letter
of Credit hereunder shall be subject in all respects to the International Standby Practices 98, and
any successor documentation thereto and to the extent not inconsistent therewith, the laws of the
State of Michigan. In the event of any conflict between this Agreement and any Letter of Credit
Document other than any Letter of Credit, this Agreement shall control.

     3.2 Conditions to Issuance. No Letter of Credit shall be issued at the request and for the account of Borrower unless,
as of the date of issuance of such Letter of Credit:

	 	(a)	 	(i) after giving effect to the Letter of Credit requested, the
Letter of Credit Obligations do not exceed the Letter of Credit Maximum Amount;
and (ii) after giving effect to the Letter of Credit requested, the Letter of
Credit Obligations on such date plus the aggregate amount of all Revolving
Credit Advances and Swing Line Advances (including all Advances deemed
disbursed by Agent under Section 3.6(a) hereof in respect of
Borrower’ Reimbursement Obligations) hereunder requested or outstanding on
such date do not exceed the Revolving Credit Aggregate Commitment;
	 
	 	(b)	 	the representations and warranties of the Credit Parties
contained in this Agreement and the other Loan Documents are true and correct
in all material respects and shall be true and correct in all material respects
as of date of the issuance of such Letter of Credit (both before and
immediately after the issuance of such Letter of Credit), other than any
representation or warranty that expressly speaks only as of a different date;
	 
	 	(c)	 	there is no Default or Event of Default in existence, and none
will exist upon the issuance of such Letter of Credit;

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	 	(d)	 	Borrower shall have delivered to Issuing Lender at its Issuing
Office, not less than three (3) Business Days prior to the requested date for
issuance (or such shorter time as the Issuing Lender, in its sole discretion,
may permit), the Letter of Credit Agreement related thereto, together with such
other documents and materials as may be required pursuant to the terms thereof,
and the terms of the proposed Letter of Credit shall be reasonably satisfactory
to Issuing Lender;
	 
	 	(e)	 	no order, judgment or decree of any court, arbitrator or
governmental authority shall purport by its terms to enjoin or restrain Issuing
Lender from issuing the Letter of Credit requested, or any Revolving Credit
Lender from taking an assignment of its Revolving Credit Percentage thereof
pursuant to Section 3.6 hereof, and no law, rule, regulation, request or
directive (whether or not having the force of law) shall prohibit the Issuing
Lender from issuing, or any Revolving Credit Lender from taking an assignment
of its Revolving Credit Percentage of, the Letter of Credit requested or
letters of credit generally;
	 
	 	(f)	 	there shall have been (i) no introduction of or change in the
interpretation of any law or regulation, (ii) no declaration of a general
banking moratorium by banking authorities in the United States, Michigan or the
respective jurisdictions in which the Revolving Credit Lenders, the Borrower
and the beneficiary of the requested Letter of Credit are located, and (iii) no
establishment of any new restrictions by any central bank or other governmental
agency or authority on transactions involving letters of credit or on banks
generally that, in any case described in this clause (e), would make it
unlawful or unduly burdensome for the Issuing Lender to issue or any Revolving
Credit Lender to take an assignment of its Revolving Credit Percentage of the
requested Letter of Credit or letters of credit generally;
	 
	 	(g)	 	Issuing Lender shall have received the issuance fees required
in connection with the issuance of such Letter of Credit pursuant to Section
3.4 hereof; and
	 
	 	(h)	 	if any Revolving Credit Lender is an Impaired Lender, the
Issuing Lender has entered into arrangements satisfactory to it to eliminate
the Issuing Lender’s risk with respect to the participation in Letters of
Credit by all such Impaired Lenders, including, without limitation, the
creation of a cash collateral account or delivery of other security by the
Borrower to assure payment of such Impaired Lender’s Percentage of all
outstanding Letter of Credit Obligations.

Each Letter of Credit Agreement submitted to Issuing Lender pursuant hereto shall constitute the
certification by Borrower of the matters set forth in Sections 5.2 hereof. The Agent shall be
entitled to rely on such certification without any duty of inquiry.

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     3.3 Notice. The Issuing Lender shall deliver to the Agent, concurrently with or promptly following its
issuance of any Letter of Credit, a true and complete copy of each Letter of Credit. Promptly upon
its receipt thereof, Agent shall give notice, substantially in the form attached as Exhibit E, to
each Revolving Credit Lender of the issuance of each Letter of Credit, specifying the amount
thereof and the amount of such Revolving Credit Lender’s Percentage thereof.

     3.4 Letter of Credit Fees; Increased Costs. (a) Borrower shall pay letter of credit fees as follows:

	 	(i)	 	A per annum letter of credit fee with respect
to the undrawn amount of each Letter of Credit issued pursuant hereto
(based on the amount of each Letter of Credit) in the amount of the
Applicable Fee Percentage (determined with reference to Schedule 1.1 to
this Agreement) shall be paid to the Agent for distribution to the
Revolving Credit Lenders in accordance with their Percentages.

	 	(ii)	 	A letter of credit facing fee on the face
amount of each Letter of Credit shall be paid to the Agent for
distribution to the Issuing Lender for its own account, in accordance
with the terms of the applicable Fee Letter.

	 	(b)	 	All payments by Borrower to the Agent for distribution to the
Issuing Lender or the Revolving Credit Lenders under this Section 3.4 shall be
made in Dollars in immediately available funds at the Issuing Office or such
other office of the Agent as may be designated from time to time by written
notice to Borrower by the Agent. The fees described in clauses (a)(i) and (ii)
above (i) shall be nonrefundable under all circumstances, (ii) in the case of
fees due under clause (a)(i) above, shall be payable quarterly
in arrears (on the first day of each calendar quarter) and (iii) in the case
of fees due under clause (a)(ii) above, shall be payable upon the issuance
of such Letter of Credit and upon any amendment thereto or extension
thereof. The fees due under clause (a)(i) above shall be determined by
multiplying the Applicable Fee Percentage times the undrawn amount of the
face amount of each such Letter of Credit on the date of determination, and
shall be calculated on the basis of a 360 day year and assessed for the
actual number of days from the date of the issuance thereof to the stated
expiration thereof. The parties hereto acknowledge that, unless the Issuing
Lender otherwise agrees, any material amendment and any extension to a
Letter of Credit issued hereunder shall be treated as a new Letter of Credit
for the purposes of the letter of credit facing fee.

	 	(c)	 	If any change in any law or regulation or in the interpretation
thereof by any court or administrative or governmental authority charged with
the administration thereof, adopted after the date hereof, shall either (i)
impose, modify or cause to be deemed applicable any reserve, special

45

 

	 	 	 	deposit,
limitation or similar requirement against letters of credit issued or
participated in by, or assets held by, or deposits in or for the account of,
Issuing Lender or any Revolving Credit Lender or (ii) impose on Issuing Lender
or any Revolving Credit Lender any other condition regarding this Agreement,
the Letters of Credit or any participations in such Letters of Credit, and the
result of any event referred to in clause (i) or (ii) above shall be to
increase the cost or expense to Issuing Lender or such Revolving Credit Lender
of issuing or maintaining or participating in any of the Letters of Credit
(which increase in cost or expense shall be determined by the Issuing Lender’s
or such Revolving Credit Lender’s reasonable allocation of the aggregate of
such cost increases and expenses resulting from such events), then, upon demand
by the Issuing Lender or such Revolving Credit Lender, as the case may be,
Borrower shall, within thirty (30) days following demand for payment, pay to
Issuing Lender or such Revolving Credit Lender, as the case may be, from time
to time as specified by the Issuing Lender or such Revolving Credit Lender,
additional amounts which shall be sufficient to compensate the Issuing Lender
or such Revolving Credit Lender for such increased cost and expense (together
with interest on each such amount from ten days after the date such payment is
due until payment in full thereof at the Base Rate), provided that if the
Issuing Lender or such Revolving Credit Lender could take any reasonable
action, without cost or administrative or other burden or restriction to such
Lender, to mitigate or eliminate such cost or expense, it agrees to do so
within a reasonable time after becoming aware of the foregoing matters. Each
demand for payment under this Section 3.4(c) shall be accompanied by a
certificate of Issuing Lender or the applicable Revolving Credit Lender setting
forth the amount of such increased cost or expense incurred by the Issuing
Lender or such Revolving Credit Lender, as the case may be, as a result of any
event mentioned in clause (i) or (ii) above, and in reasonable detail, the
methodology for calculating and the calculation of such amount, which
certificate shall be prepared in good faith and shall be conclusive
evidence, absent manifest error, as to the amount thereof.

     3.5 Other Fees. In connection with the Letters of Credit, and in addition to the Letter of Credit Fees,
Borrower shall pay, for the sole account of the Issuing Lender, standard documentation,
administration, payment and cancellation charges assessed by Issuing Lender or the Issuing Office,
at the times, in the amounts and on the terms set forth or to be set forth from time to time in the
standard fee schedule of the Issuing Office in effect from time to time.

     3.6 Participation Interests in and Drawings and Demands for Payment Under Letters of
Credit.

     (a) Upon issuance by the Issuing Lender of each Letter of Credit hereunder (and on the
Effective Date with respect to each Existing Letter of Credit), each Revolving Credit Lender shall
automatically acquire a pro rata participation interest in such Letter of Credit and each related
Letter of Credit Payment based on its respective Revolving Credit Percentage.

46

 

     (b) If the Issuing Lender shall honor a draft or other demand for payment presented or made
under any Letter of Credit, Borrower agrees to pay to the Issuing Lender an amount equal to the
amount paid by the Issuing Lender in respect of such draft or other demand under such Letter of
Credit and all reasonable expenses paid or incurred by the Agent relative thereto not later than
1:00 p.m. (Pacific time), in Dollars, on (i) the Business Day that Borrower received notice of such
presentment and honor, if such notice is received prior to 11:00 a.m. (Pacific time) or (ii) the
Business Day immediately following the day that Borrower received such notice, if such notice is
received after 11:00 a.m. (Pacific time).

     (c) If the Issuing Lender shall honor a draft or other demand for payment presented or made
under any Letter of Credit, but Borrower does not reimburse the Issuing Lender as required under
clause (b) above and the Revolving Credit Aggregate Commitment has not been terminated (whether by
maturity, acceleration or otherwise), the Borrower shall be deemed to have immediately requested
that the Revolving Credit Lenders make a Base Rate Advance of the Revolving Credit (which Advance
may be subsequently converted at any time into a Eurodollar-based Advance pursuant to Section 2.3
hereof) in the principal amount equal to the amount paid by the Issuing Lender in respect of such
draft or other demand under such Letter of Credit and all reasonable expenses paid or incurred by
the Agent relative thereto. Agent will promptly notify the Revolving Credit Lenders of such deemed
request, and each such Lender shall make available to the Agent an amount equal to its pro rata
share (based on its Revolving Credit Percentage) of the amount of such Advance.

     (d) If the Issuing Lender shall honor a draft or other demand for payment presented or made
under any Letter of Credit, but Borrower does not reimburse the Issuing Lender as required under
clause (b) above, and (i) the Revolving Credit Aggregate Commitment has been terminated (whether by
maturity, acceleration or otherwise), or (ii) any reimbursement received by the Issuing Lender from
Borrower is or must be returned or rescinded upon or during any
bankruptcy or reorganization of any Credit Party or otherwise, then Agent shall notify each
Revolving Credit Lender, and each Revolving Credit Lender will be obligated to pay the Agent for
the account of the Issuing Lender its pro rata share (based on its Revolving Credit Percentage) of
the amount paid by the Issuing Lender in respect of such draft or other demand under such Letter of
Credit and all reasonable expenses paid or incurred by the Agent relative thereto (but no such
payment shall diminish the obligations of the Borrower hereunder). Upon receipt thereof, the Agent
will deliver to such Revolving Credit Lender a participation certificate evidencing its
participation interest in respect of such payment and expenses. To the extent that a Revolving
Credit Lender fails to make such amount available to the Agent by 11:00 a.m. Pacific time on the
Business Day next succeeding the date such notice is given, such Revolving Credit Lender shall pay
interest on such amount in respect of each day from the date such amount was required to be paid,
to the date paid to Agent, at a rate per annum equal to the Federal Funds Effective Rate. The
failure of any Revolving Credit Lender to make its pro rata portion of any such amount available
under to the Agent shall not relieve any other Revolving Credit Lender of its obligation to make
available its pro rata portion of such amount, but no Revolving Credit Lender shall be responsible
for failure of any other Revolving Credit Lender to make such pro rata portion available to the
Agent.

     (e) In the case of any Advance made under this Section 3.6, each such Advance shall be
disbursed notwithstanding any failure to satisfy any conditions for disbursement of any

47

 

Advance set
forth in Article 2 hereof or Article 5 hereof, and, to the extent of the Advance so disbursed, the
Reimbursement Obligation of Borrower to the Agent under this Section 3.6 shall be deemed satisfied
(unless, in each case, taking into account any such deemed Advances, the aggregate outstanding
principal amount of Advances of the Revolving Credit and the Swing Line, plus the Letter of Credit
Obligations (other than the Reimbursement Obligations to be reimbursed by this Advance) on such
date exceed the then applicable Revolving Credit Aggregate Commitment).

     (f) If the Issuing Lender shall honor a draft or other demand for payment presented or made
under any Letter of Credit, the Issuing Lender shall provide notice thereof to Borrower on the date
such draft or demand is honored, and to each Revolving Credit Lender on such date unless Borrower
shall have satisfied its reimbursement obligations by payment to the Agent (for the benefit of the
Issuing Lender) as required under this Section 3.6. The Issuing Lender shall further use
reasonable efforts to provide notice to Borrower prior to honoring any such draft or other demand
for payment, but such notice, or the failure to provide such notice, shall not affect the rights or
obligations of the Issuing Lender with respect to any Letter of Credit or the rights and
obligations of the parties hereto, including without limitation the obligations of Borrower under
this Section 3.6.

     (g) Notwithstanding the foregoing however no Revolving Credit Lender shall be deemed to have
acquired a participation in a Letter of Credit if the officers of the Issuing Lender immediately
responsible for matters concerning this Agreement shall have received written notice from Agent or
any Lender at least two (2) Business Days prior to the date of the issuance or extension of such
Letter of Credit or, with respect to any Letter of Credit subject to automatic extension, at least
five (5) Business Days prior to the date that the beneficiary under such Letter of Credit must be
notified that such Letter of Credit will not be renewed, that the issuance or extension of Letters
of Credit should be suspended based on the occurrence and continuance of a
Default or Event of Default and stating that such notice is a “notice of default”; provided,
however that the Revolving Credit Lenders shall be deemed to have acquired such a participation
upon the date on which such Default or Event of Default has been waived by the requisite Lenders,
as applicable. In the event that the Issuing Lender receives such a notice, the Issuing Lender
shall have no obligation to issue any Letter of Credit until such notice is withdrawn by Agent or
such Lender or until the requisite Lenders have waived such Default or Event of Default in
accordance with the terms of this Agreement.

     (h) Nothing in this Agreement shall be construed to require or authorize any Revolving Credit
Lender to issue any Letter of Credit, it being recognized that the Issuing Lender shall be the sole
issuer of Letters of Credit under this Agreement.

     (i) In the event that any Revolving Credit Lender becomes an Impaired Lender, the Issuing
Lender may, at its option, require that the Borrower enter into arrangements satisfactory to
Issuing Lender to eliminate the Issuing Lender’s risk with respect to the participation in Letters
of Credit by such Impaired Lender, including creation of a cash collateral account or delivery of
other security to assure payment of such Impaired Lender’s Percentage of all outstanding Letter of
Credit Obligations.

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     3.7 Obligations Irrevocable. The obligations of Borrower to make payments to Agent for the account of Issuing Lender or
the Revolving Credit Lenders with respect to Letter of Credit Obligations under Section 3.6 hereof,
shall be unconditional and irrevocable and not subject to any qualification or exception
whatsoever, including, without limitation:

	 	(a)	 	Any lack of validity or enforceability of any Letter of Credit,
any Letter of Credit Agreement, any other documentation relating to any Letter
of Credit, this Agreement or any of the other Loan Documents (the “Letter of
Credit Documents”);
	 
	 	(b)	 	Any amendment, modification, waiver, consent, or any
substitution, exchange or release of or failure to perfect any interest in
collateral or security, with respect to or under any Letter of Credit Document;
	 
	 	(c)	 	The existence of any claim, setoff, defense or other right
which Borrower may have at any time against any beneficiary or any transferee
of any Letter of Credit (or any persons or entities for whom any such
beneficiary or any such transferee may be acting), the Agent, the Issuing
Lender or any Revolving Credit Lender or any other Person, whether in
connection with this Agreement, any of the Letter of Credit Documents, the
transactions contemplated herein or therein or any unrelated transactions;
	 
	 	(d)	 	Any draft or other statement or document presented under any
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any respect;
	 
	 	(e)	 	Payment by the Issuing Lender to the beneficiary under any
Letter of Credit against presentation of documents which do not comply with the
terms of such Letter of Credit, including failure of any documents to bear any
reference or adequate reference to such Letter of Credit;
	 
	 	(f)	 	Any failure, omission, delay or lack on the part of the Agent,
Issuing Lender or any Revolving Credit Lender or any party to any of the Letter
of Credit Documents to enforce, assert or exercise any right, power or remedy
conferred upon the Agent, Issuing Lender, any Revolving Credit Lender or any
such party under this Agreement, any of the other Loan Documents or any of the
Letter of Credit Documents, or any other acts or omissions on the part of the
Agent, Issuing Lender, any Revolving Credit Lender or any such party; or
	 
	 	(g)	 	Any other event or circumstance that would, in the absence of
this Section 3.7, result in the release or discharge by operation of law or
otherwise of Borrower from the performance or observance of any obligation,
covenant or agreement contained in Section 3.6 hereof.

No setoff, counterclaim, reduction or diminution of any obligation or any defense of any kind or
nature which Borrower has or may have against the beneficiary of any Letter of Credit shall be
available hereunder to Borrower against the Agent, Issuing Lender or any Revolving Credit

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Lender. With respect to any Letter of Credit, nothing contained in this Section 3.7 shall be deemed to
prevent Borrower, after satisfaction in full of the absolute and unconditional obligations of
Borrower hereunder with respect to such Letter of Credit, from asserting in a separate action any
claim, defense, set off or other right which they (or any of them) may have against Agent, Issuing
Lender or any Revolving Credit Lender in connection with such Letter of Credit.

     3.8 Risk Under Letters of Credit.

     (a) In the administration and handling of Letters of Credit and any security therefor, or any
documents or instruments given in connection therewith, Issuing Lender shall have the sole right to
take or refrain from taking any and all actions under or upon the Letters of Credit.

     (b) Subject to other terms and conditions of this Agreement, Issuing Lender shall issue the
Letters of Credit and shall hold the documents related thereto in its own name and shall make all
collections thereunder and otherwise administer the Letters of Credit in accordance with Issuing
Lender’s regularly established practices and procedures and will have no further obligation (in the
absence of gross negligence or willful misconduct) with respect thereto. In the administration of
Letters of Credit, Issuing Lender shall not be liable for any action taken or omitted on the advice
of counsel, accountants, appraisers or other experts selected by Issuing Lender with due care and
Issuing Lender may rely upon any notice, communication, certificate or other statement from
Borrower, beneficiaries of Letters of Credit, or any other Person which Issuing Lender believes to
be authentic. Issuing Lender will, upon request, furnish the Revolving Credit Lenders with copies
of Letter of Credit Documents related thereto.

     (c) In connection with the issuance and administration of Letters of Credit and the
assignments hereunder, Issuing Lender makes no representation and shall have no responsibility with
respect to (i) the obligations of Borrower or the validity, sufficiency or enforceability of any
document or instrument given in connection therewith, or the taking of any action with respect to
same, (ii) the financial condition of, any representations made by, or any act or omission of
Borrower or any other Person, or (iii) any failure or delay in exercising any rights or powers
possessed by Issuing Lender in its capacity as issuer of Letters of Credit in the absence of its
gross negligence or willful misconduct. Each of the Revolving Credit Lenders expressly acknowledges
that it has made and will continue to make its own evaluations of Borrower’s creditworthiness
without reliance on any representation of Issuing Lender or Issuing Lender’s officers, agents and
employees.

     (d) If at any time Issuing Lender shall recover any part of any unreimbursed amount for any
draw or other demand for payment under a Letter of Credit, or any interest thereon, Agent or
Issuing Lender, as the case may be, shall receive same for the pro rata benefit of
the Revolving Credit Lenders in accordance with their respective Percentages and shall promptly
deliver to each Revolving Credit Lender its share thereof, less such Revolving Credit Lender’s pro
rata share of the costs of such recovery, including court costs and attorney’s fees. If at any time
any Revolving Credit Lender shall receive from any source whatsoever any payment on any such
unreimbursed amount or interest thereon in excess of such Revolving Credit Lender’s Percentage of
such payment, such Revolving Credit Lender will promptly pay over such excess to Agent, for
redistribution in accordance with this Agreement.

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     3.9 Indemnification. Borrower hereby indemnifies and agrees to hold harmless the Revolving Credit Lenders, the
Issuing Lender and the Agent and their respective Affiliates, and the respective officers,
directors, employees and agents of such Persons (each an “L/C Indemnified Person”), from and
against any and all claims, damages, losses, liabilities, costs or expenses of any kind or nature
whatsoever which the Revolving Credit Lenders, the Issuing Lender or the Agent or any such Person
may incur or which may be claimed against any of them by reason of or in connection with any Letter
of Credit (collectively, the “L/C Indemnified Amounts”), and none of the Issuing Lender, any
Revolving Credit Lender or the Agent or any of their respective officers, directors, employees or
agents shall be liable or responsible for:

	 	(a)	 	the use which may be made of any Letter of Credit or for any
acts or omissions of any beneficiary in connection therewith;
	 
	 	(b)	 	the validity, sufficiency or genuineness of documents or of any
endorsement thereon, even if such documents should in fact prove to be in any
or all respects invalid, insufficient, fraudulent or forged;
	 
	 	(c)	 	payment by the Issuing Lender to the beneficiary under any
Letter of Credit against presentation of documents which do not strictly comply
with the terms of any Letter of Credit (unless such payment resulted from the
gross negligence or willful misconduct of the Issuing Lender), including failure of any documents to bear any reference or adequate
reference to such Letter of Credit;
	 
	 	(d)	 	any error, omission, interruption or delay in transmission,
dispatch or delivery of any message or advice, however transmitted, in
connection with any Letter of Credit; or
	 
	 	(e)	 	any other event or circumstance whatsoever arising in
connection with any Letter of Credit.

It is understood that in making any payment under a Letter of Credit the Issuing Lender will rely
on documents presented to it under such Letter of Credit as to any and all matters set forth
therein without further investigation and regardless of any notice or information to the contrary.

With respect to subparagraphs (a) through (e) hereof, (i) no Borrower shall be required to
indemnify any L/C Indemnified Person for any L/C Indemnified Amounts to the extent such amounts
result from the gross negligence or willful misconduct of such L/C Indemnified Person or any
officer, director, employee or agent of such L/C Indemnified Person and (ii) the Agent and the
Issuing Lender shall be liable to each Borrower to the extent, but only to the extent, of any
direct, as opposed to consequential or incidental, damages suffered by Borrower which were caused
by the gross negligence or willful misconduct of the Issuing Lender or any officer, director,
employee or agent of the Issuing Lender or by the Issuing Lender’s wrongful dishonor of any Letter
of Credit after the presentation to it by the beneficiary thereunder of a draft or other demand for
payment and other documentation strictly complying with the terms and conditions of such Letter of
Credit.

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     3.10 Right of Reimbursement. Each Revolving Credit Lender agrees to reimburse the Issuing Lender on demand, pro rata in
accordance with its respective Revolving Credit Percentage, for (i) the reasonable out-of-pocket
costs and expenses of the Issuing Lender to be reimbursed by Borrower pursuant to any Letter of
Credit Agreement or any Letter of Credit, to the extent not reimbursed by Borrower or any other
Credit Party and (ii) any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, fees, reasonable out-of-pocket expenses or disbursements of any kind and
nature whatsoever which may be imposed on, incurred by or asserted against Issuing Lender in any
way relating to or arising out of this Agreement (including Section 3.6(c) hereof), any Letter of
Credit, any documentation or any transaction relating thereto, or any Letter of Credit Agreement,
to the extent not reimbursed by Borrower, except to the extent that such liabilities, losses, costs
or expenses were incurred by Issuing Lender as a result of Issuing Lender’s gross negligence or
willful misconduct or by the Issuing Lender’s wrongful dishonor of any Letter of Credit after the
presentation to it by the beneficiary thereunder of a draft or other demand for payment and other
documentation strictly complying with the terms and conditions of such Letter of Credit.

4. TERM LOAN.

     4.1 Term Loan. Subject to the terms and conditions hereof, each Term Loan Lender, severally and for itself
alone, agrees to lend to Borrower, in a single disbursement in Dollars on the Effective Date an
amount equal to such Lender’s Percentage of Term Loan.

     4.2 Accrual of Interest and Maturity; Evidence of Indebtedness.

     (a) Borrower hereby unconditionally promises to pay to the Agent for the account of each Term
Loan Lender such Lender’s Percentage of the then unpaid aggregate principal amount of Term Loan
outstanding on the Term Loan Maturity Date and on such other dates and in such other amounts as may
be required from time to time pursuant to this Agreement. Subject to the terms and conditions
hereof, the unpaid principal Indebtedness outstanding under Term Loan shall, from the Effective
Date (until paid), bear interest at the Applicable Interest Rate. There shall be no readvance or
reborrowings of any principal reductions of the Term Loan.

     (b) Each Term Loan Lender shall maintain in accordance with its usual practice an account or
accounts evidencing indebtedness of Borrower to the appropriate lending office of such Term Loan
Lender resulting from each Advance of the Term Loan made by such lending office of such Lender from
time to time, including the amounts of principal and interest payable thereon and paid to such Term
Loan Lender from time to time under this Agreement.

     (c) The Agent shall maintain the Register pursuant to Section 13.8(g), and a subaccount
therein for each Term Loan Lender, in which Register and subaccounts (taken together) shall be
recorded (i) the amount of each Advance of the Term Loan made hereunder, the type thereof and each
Eurodollar-Interest Period applicable to any Eurodollar-based Advance, (ii) the amount of any
principal or interest due and payable or to become due and payable from Borrower to each Term Loan
Lender hereunder in respect of the Advances of the Term Loan and (iii) both the amount of any sum
received by the Agent hereunder from Borrower in respect of the Advances of the Term Loan and each
Term Loan Lender’s share thereof.

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     (d) The entries made in the Register pursuant to paragraph (c) of this Section 4.2 shall,
absent manifest error, to the extent permitted by applicable law, be prima facie evidence of the
existence and amounts of the obligations of Borrower therein recorded; provided,
however, that the failure of any Term Loan Lender or the Agent to maintain the Register or
any such account, as applicable, or any error therein, shall not in any manner affect the
obligation of Borrower to repay the Advances of each of the Term Loan (and all other amounts owing
with respect thereto) made to Borrower by the Term Loan Lenders in accordance with the terms of
this Agreement.

     (e) Borrower agrees that, upon written request to the Agent by any Term Loan Lender, Borrower
will execute and deliver to such Term Loan Lender, at Borrower’s expense, a Term Loan Note
evidencing the outstanding Advances under the Term Loan, owing to such Term Loan Lender.

     4.3 Repayment of Principal. (a) Borrower shall repay the Term Loan as set forth below, each such quarterly principal
installment to be paid on the first day of each calendar quarter, commencing on April 1,
2010, until the Term Loan Maturity Date, when all remaining outstanding principal plus accrued
interest thereon shall be due and payable in full:

	 	 	 	 	 
	Installment No.	 	Payment
	1-4
	 	$	875,000	 
	5-8
	 	$	1,312,500	 
	9-12
	 	$	3,062,500	 
	13-16
	 	$	3,500,000	 
	Term Loan Maturity Date
	 	Any amounts of principal or interest then outstanding on the Term Loan

     (b) Whenever any payment under this Section 4.3 shall become due on a day that is not a
Business Day, the date for payment thereunder shall be extended to the next Business Day.

     4.4 Term Loan Rate Requests; Refundings and Conversions of Advances of Term Loan. Borrower may refund all or any portion of any Advance of the Term Loan as a Term Loan
Advance with a like Eurodollar-Interest Period or convert each such Advance of Term Loan to an
Advance with a different Eurodollar-Interest Period, but only after delivery to Agent of a Term
Loan Rate Request executed in connection with such Term Loan by an Authorized Signer and subject to
the terms hereof and to the following:

     (a) each Term Loan Rate Request shall set forth the information required on the Term Loan Rate
Request form with respect to such Term Loan, including without limitation:

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	 	(i)	 	whether the Term Loan Advance is a refunding or
conversion of an outstanding Term Loan Advance;
	 
	 	(ii)	 	in the case of a refunding or conversion of an
outstanding Term Loan Advance, the proposed date of such refunding or
conversion, which must be a Business Day; and
	 
	 	(iii)	 	whether such Term Loan Advance (or any portion
thereof) is to be a Base Rate Advance or a Eurodollar-based Advance,
and, in the case of a Eurodollar-based Advance, the Eurodollar-Interest
Period(s) applicable thereto.

     (b) each such Term Loan Rate Request shall be delivered to Agent (i) by 1:00 p.m. (Pacific
time) three (3) Business Days prior to the proposed date of the refunding or conversion of a
Eurodollar-based Advance or (ii) by 1:00 p.m. (Pacific time) on the proposed date of the refunding
or conversion of a Base Rate Advance;

     (c) the principal amount of such Advance of the Term Loan plus the amount of any other Advance
of the Term Loan to be then combined therewith having the same Applicable Interest Rate and
Eurodollar-Interest Period, if any, shall be (i) in the case of a Base Rate Advance, at least Two
Million Dollars ($2,000,000), or the remaining principal balance outstanding under the applicable
Term Loan, whichever is less, and (ii) in the case of a
Eurodollar-based Advance, at least Two Million Dollars ($2,000,000) or the remaining principal
balance outstanding under the applicable Term Loan, whichever is less, or in each case a larger
integral multiple of One Hundred Thousand Dollars ($100,000);

     (d) no Term Loan Advance shall have a Eurodollar-Interest Period ending after the Term Loan
Maturity Date and, notwithstanding any provision hereof to the contrary, Borrower shall select
Eurodollar-Interest Periods (or the Base Rate) for sufficient portions of the Term Loan such that
Borrower may make the required principal payments hereunder on a timely basis and otherwise in
accordance with Section 4.5 below;

     (e) at no time shall there be no more than three (3) Eurodollar-Interest Periods in effect for
Advances of the Term Loan; and

     (f) a Term Loan Rate Request, once delivered to Agent, shall not be revocable by Borrower.

     4.5 Base Rate Advance in Absence of Election or Upon Default.In the event Borrower shall fail with respect to any Eurodollar-based Advance of the Term Loan
to timely exercise their option to refund or convert such Advance in accordance with Section 4.4
hereof (and such Advance has not been paid in full on the last day of the Eurodollar-Interest
Period applicable thereto according to the terms hereof), or, if on the last day of the applicable
Eurodollar-Interest Period, a Default or Event of Default shall exist, then, on the last day of the
applicable Eurodollar-Interest Period, the principal amount of such Advance which has not been
prepaid shall be automatically converted to a Base Rate Advance and the Agent shall thereafter
promptly notify Borrower thereof. All accrued and unpaid interest on any Advance converted to

54

 

a Base Rate Advance under this Section 4.5 shall be due and payable in full on the date such Advance
is converted.

     4.6 Interest Payments; Default Interest.

     (a) Interest on the unpaid principal of all Base Rate Advances of the Term Loan from time to
time outstanding shall accrue until paid at a per annum interest rate equal to the Base Rate, and
shall be payable in immediately available funds quarterly in arrears commencing on April 1, 2010,
and on the first day of each calendar quarter thereafter. Whenever any payment under this Section
4.6 shall become due on a day that is not a Business Day, the date for payment shall be extended to
the next Business Day. Interest accruing at the Base Rate shall be computed on the basis of a 360
day year and assessed for the actual number of days elapsed, and in such computation effect shall
be given to any change in the interest rate resulting from a change in the Base Rate on the date of
such change in the Base Rate.

     (b) Interest on the unpaid principal of each Eurodollar-based Advance of the Term Loan having
a related Eurodollar-Interest Period of three (3) months or less shall accrue at its applicable
Eurodollar-based Rate and shall be payable in immediately available funds on the last day of the
Eurodollar-Interest Period applicable thereto. Interest accruing at the Eurodollar-based Rate shall
be computed on the basis of a 360-day year and assessed for the actual number of days
elapsed from the first day of the Eurodollar-Interest Period applicable thereto to, but not
including, the last day thereof.

     (c) Notwithstanding anything to the contrary in Section 4.6(a) or (b) hereof, all accrued and
unpaid interest on any Term Loan Advance refunded or converted pursuant to Section 4.4 hereof shall
be due and payable in full on the date such Term Loan Advance is refunded or converted.

     (d) In the case of any Event of Default under Section 9.1(i), immediately upon the occurrence
thereof, and in the case of any other Event of Default, upon notice from the Majority Term Loan
Lenders, interest shall be payable on demand on the principal amount of all Advances of the Term
Loan from time to time outstanding, as applicable, at a per annum rate equal to the Applicable
Interest Rate in respect of each such Advance, plus, in the case of Eurodollar-based Advances, two
percent (2%) for the remainder of the then existing Eurodollar-Interest Period, if any, and at all
other such times and for all Base Rate Advances, at a per annum rate equal to the Base Rate plus
two percent (2%).

     4.7 Optional Prepayment of Term Loan.

     (a) Subject to clause (b) hereof, Borrower (at its option), may prepay all or any portion of
the outstanding principal of any Term Loan Advance bearing interest at the Base Rate at any time,
and may prepay all or any portion of the outstanding principal of any Term Loan bearing interest at
the Eurodollar-based Rate upon one (1) Business Day’s notice to the Agent by facsimile or by
telephone (confirmed by facsimile), with accrued interest on the principal being prepaid to the
date of such prepayment. Any prepayment of a portion of the Term Loan as to which the Applicable
Interest Rate is the Base Rate shall be without premium or penalty and any prepayment of a portion
of the Term Loan as to which the Applicable Interest Rate is the

55

 

Eurodollar-based Rate shall be
subject to the provisions of Section 11.1, but otherwise without premium or penalty.

     (b) Each partial prepayment of the Term Loan shall be applied to all installments of such Term
Loan due thereunder on a pro rata basis as follows: first to that portion of such Term Loan
outstanding as a Base Rate Advance, second to that portion of such Term Loan outstanding as
Eurodollar-based Advances which have Eurodollar-Interest Periods ending on the date of payment, and
last to any remaining Advances of such Term Loan being carried at the Eurodollar-based Rate.

     (c) All prepayments of the Term Loan shall be made to the Agent for distribution ratably to
the applicable Term Loan Lenders in accordance with their respective Term Loan Percentages.

     4.8 Mandatory Prepayment of Term Loan.

     (a) Subject to clauses (d) and (e) hereof, immediately upon receipt by any Credit Party of any
Net Cash Proceeds from any Asset Sales exceeding Five Million Dollars ($5,000,000) per Fiscal Year
(or in the case of any Fiscal Year ending after June 30, 2010,
$2,500,000) which are not Reinvested as described in the following sentence, Borrower shall
prepay the Term Loan by an amount equal to one hundred percent (100%) of such Net Cash Proceeds
provided, however that Borrower shall not be obligated to prepay the Term Loan with such Net Cash
Proceeds if the following conditions are satisfied: (i) promptly following the sale, Borrower
provides to Agent a certificate executed by a Responsible Officer of the Borrower (“Reinvestment
Certificate”) stating (x) that the sale has occurred, (y) that no Default or Event of Default has
occurred and is continuing either as of the date of the sale or as of the date of the Reinvestment
Certificate, and (z) a description of the planned Reinvestment of the proceeds thereof, (ii) the
Reinvestment of such Net Cash Proceeds is commenced within the Initial Reinvestment Period and
completed within the Reinvestment Period, and (iii) no Default or Event of Default has occurred and
is continuing at the time of the sale and at the time of the application of such proceeds to
Reinvestment. If any such proceeds have not been Reinvested at the end of the Reinvestment Period,
Borrower shall promptly pay such proceeds to Agent, to be applied to repay the Term Loan in
accordance with clauses (d) and (e) hereof.

     (b) Subject to clauses (d) and (e) hereof, immediately upon receipt by any Credit Party of Net
Cash Proceeds from the issuance of any Equity Interests of such Person (other than Excluded Equity
Issuances) or Net Cash Proceeds from the issuance of any Subordinated Debt after the Effective
Date, Borrower shall prepay the Term Loan by an amount equal to twenty five percent (25%) of such
Net Cash Proceeds in the case of the issuance of any such Equity Interests and one hundred percent
(100%) of such Net Cash Proceeds in the case of issuance of Subordinated Debt (other than Debt
permitted under the provisions of Section 8.1).

     (c) Subject to clauses (d) and (e) hereof, immediately upon receipt by any Credit Party of any
Insurance Proceeds or Condemnation Proceeds, Borrower shall be obligated to prepay the Term Loan by
an amount equal to one hundred percent (100%) of such Insurance Proceeds or Condemnation Proceeds,
as the case may be; provided, however, that any Insurance Proceeds or Condemnation Proceeds, as the
case may be, may be Reinvested by the applicable

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Credit Party if the following conditions are
satisfied: (i) promptly following the receipt of such Insurance Proceeds or Condemnation Proceeds,
as the case may be, Borrower provide to Agent a Reinvestment Certificate stating (x) that no
Default or Event of Default has occurred and is continuing either as of the date of the receipt of
such proceeds or as of the date of the Reinvestment Certificate, (y) that such Insurance Proceeds
or Condemnation Proceeds have been received, and (z) a description of the planned Reinvestment of
such Insurance Proceeds or Condemnation Proceeds, as the case may be), (ii) the Reinvestment of
such proceeds is commenced within the Initial Reinvestment Period and completed within the
Reinvestment Period, and (iii) no Default or Event of Default shall have occurred and be continuing
at the time of the receipt of such proceeds and at the time of the application of such proceeds to
Reinvestment. If any such proceeds have not been Reinvested at the end of the Reinvestment Period,
Borrower shall promptly pay such proceeds to Agent, to be applied to repay the Term Loan in
accordance with clauses (d) and (e) hereof.

     (d) Subject to clause (e) hereof, each mandatory prepayment under this Section 4.8 or any
other mandatory or optional prepayment under this Agreement shall be in addition to any scheduled
installments or optional prepayments made prior thereto and shall be subject to Section 11.1. Each
mandatory prepayment of the Term Loan shall be applied to installments of principal on the Term
Loan in the inverse order of their maturities.

     (e) To the extent that, on the date any mandatory prepayment of any Term Loan under this
Section 4.8 is due, the Indebtedness under the Term Loan or any other Indebtedness to be prepaid is
being carried, in whole or in part, at the Eurodollar-based Rate and no Default or Event of Default
has occurred and is continuing, Borrower may deposit the amount of such mandatory prepayment in a
cash collateral account to be held by the Agent, for and on behalf of the Lenders (which shall be
an interest-bearing account), on such terms and conditions as are reasonably acceptable to Agent
and upon such deposit, the obligation of each Borrower to make such mandatory prepayment shall be
deemed satisfied. Subject to the terms and conditions of said cash collateral account, sums on
deposit in said cash collateral account shall be applied (until exhausted) to reduce the principal
balance of the Term Loan on the last day of each Eurodollar-Interest Period attributable to the
Eurodollar-based Advances of the Term Loan, thereby avoiding breakage costs under Section 11.1.

     4.9 Use of Proceeds. Proceeds of the Term Loan shall be used by Borrower to refinance existing Debt and for
general corporate purposes.

5. CONDITIONS.

     The obligations of the Lenders to make Advances or loans pursuant to this Agreement and the
obligation of the Issuing Lender to issue Letters of Credit are subject to the following
conditions:

     5.1 Conditions of Initial Advances. The obligations of the Lenders to make initial Advances or loans pursuant to this Agreement
and the obligation of the Issuing Lender to issue initial Letters of Credit, in each case, on the
Effective Date only, are subject to the following conditions:

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     (a) Notes, this Agreement and the other Loan Documents. Borrower shall have executed
and delivered to Agent for the account of each Lender requesting Notes, the Swing Line Note, the
Revolving Credit Notes and/or the Term Notes, as applicable; Borrower shall have executed and
delivered this Agreement; and each Credit Party shall have executed and delivered the other Loan
Documents to which such Credit Party is required to be a party (including all schedules to the
Disclosure Letter and other documents to be delivered pursuant hereto); and such Notes (if any),
this Agreement and the other Loan Documents shall be in full force and effect.

     (b) Corporate Authority. Agent shall have received, with a counterpart thereof for
each Lender, from Borrower, a certificate of its Secretary or Assistant Secretary dated as of the
Effective Date as to:

	 	(i)	 	corporate resolutions (or the equivalent)
authorizing the transactions contemplated by this Agreement and the
other Loan Documents approval of this Agreement and the other Loan
Documents, in each case to which Borrower is party, and authorizing the
execution and delivery of this Agreement and the
other Loan Documents, and authorizing the execution and delivery of
requests for Advances and the issuance of Letters of Credit
hereunder,
	 
	 	(ii)	 	the incumbency and signature of the officers or
other authorized persons of Borrower executing any Loan Document and
the officers who are authorized to execute any Requests for Advance, or
requests for the issuance of Letters of Credit,
	 
	 	(iii)	 	a certificate of good standing or continued
existence (or the equivalent thereof) from the state of its
incorporation or formation, and
	 
	 	(iv)	 	copies of Borrower’s articles of incorporation
and bylaws or other constitutional documents, as in effect on the
Effective Date.

     (c) Collateral Documents, Guaranties and other Loan Documents. The Agent shall have
received the following documents, each in form and substance satisfactory to Agent and fully
executed by each party thereto:

	 	(i)	 	A Reaffirmation of Loan Documents in form and
substance acceptable to Agent and fully executed by each party thereto
and dated as of the Effective Date;
	 
	 	(ii)	 	Any documents (including, without limitation,
financing statements, amendments to financing statements and
assignments of financing statements, stock powers executed in blank and
any endorsements) requested by Agent and reasonably required to be
provided in connection with the Collateral Documents to create, in
favor of the Agent (for and on behalf of the Lenders), a first

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	 	 	 	priority
perfected security interest in the Collateral thereunder shall have
been filed, registered or recorded, or shall have been delivered to
Agent in proper form for filing, registration or recordation.

     (c) Insurance. The Agent shall have received evidence reasonably satisfactory to it
that the Credit Parties have obtained the insurance policies required by Section 7.5 hereof and
that such insurance policies are in full force and effect.

     (d) Compliance with Certain Documents and Agreements. Each Credit Party shall have
each performed and complied in all material respects with all agreements and conditions contained
in this Agreement and the other Loan Documents, to the extent required to be performed or complied
with by such Credit Party. No Person (other than Agent, Lenders and Issuing Lender) party to this
Agreement or any other Loan Document shall be in material default in the performance or compliance
with any of the terms or provisions of this Agreement or the other Loan Documents or shall be in
material default in the performance or compliance with any of the material terms or material
provisions of this Agreement or any other Loan Document, in each case to which such Person is a
party.

     (e) Opinions of Counsel. The Credit Parties shall furnish Agent prior to the initial
Advance under this Agreement, with signed copies for each Lender, an opinion of in-house counsel to
the Credit Parties, dated the Effective Date and covering such matters as reasonably required by
and otherwise reasonably satisfactory in form and substance to the Agent and each of the Lenders.

     (f) Payment of Fees. Borrower shall have paid (i) to Comerica Bank any fees due under
the terms of the Fee Letter, (ii) to each Lender, fees due to such Lender in connection with the
closing of this Agreement and (iii) any other fees, costs or expenses due and outstanding to the
Agent or the Lenders as of the Effective Date (including reasonable fees, disbursements and other
charges of counsel to Agent).

     (g) Governmental and Other Approvals. Agent shall have received copies of all
authorizations, consents, approvals, licenses, qualifications or formal exemptions, filings,
declarations and registrations with, any court, governmental agency or regulatory authority or any
securities exchange or any other person or party (whether or not governmental) received by any
Credit Party in connection with the transactions contemplated by the Loan Documents to occur on the
Effective Date.

     (h) Closing Certificate. The Agent shall have received, with a signed counterpart for
each Lender, a certificate of a Responsible Officer of Borrower dated the Effective Date (or, if
different, the date of the initial Advance hereunder), stating that to the best of his or her
respective knowledge after due inquiry, (a) the conditions set forth in this Section 5 have been
satisfied to the extent required to be satisfied by any Credit Party; (b) the representations and
warranties made by the Credit Parties in this Agreement or any of the other Loan Documents, as
applicable, are true and correct in all material respects; (c) no Default or Event of Default shall
have occurred and be continuing; and (d) since June 30, 2009, nothing shall have occurred which has
had, or could reasonably be expected to have, a material adverse change on the business or

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property, results of operations, conditions or financial condition of Borrower and the Credit
Parties (taken as a whole).

     5.2 Continuing Conditions. The obligations of each Lender to make Advances (including the initial Advance) under this
Agreement and the obligation of the Issuing Lender to issue any Letters of Credit shall be subject
to the continuing conditions that:

     (a) No Default or Event of Default shall exist as of the date of the Advance or the request
for the Letter of Credit, as the case may be; and

     (b) Each of the representations and warranties contained in this Agreement and in each of the
other Loan Documents shall be true and correct in all material respects as of the date of the
Advance or Letter of Credit (as the case may be) as if made on and as of such date (other than any
representation or warranty that expressly speaks only as of a different date).

6. REPRESENTATIONS AND WARRANTIES.

     Borrower represents and warrants to the Agent, the Lenders, the Swing Line Lender and the
Issuing Lender as follows:

     6.1 Corporate Authority. Each Credit Party is a corporation (or other business entity) duly organized and existing
in good standing under the laws of the state or jurisdiction of its incorporation or formation, as
applicable, and each Credit Party is duly qualified and authorized to do business as a foreign
corporation in each jurisdiction where the character of its assets or the nature of its activities
makes such qualification and authorization necessary except where failure to be so qualified or be
in good standing could not reasonably be expected to have a Material Adverse Effect. Each Credit
Party has all requisite corporate, limited liability or partnership power and authority to own all
its property (whether real, personal, tangible or intangible or of any kind whatsoever) and to
carry on its business.

     6.2 Due Authorization. Execution, delivery and performance of this Agreement, and the other Loan Documents, to
which each Credit Party is party, and the issuance of the Notes by Borrower (if requested) are
within such Person’s corporate, limited liability or partnership power, have been duly authorized,
are not in contravention of any law applicable to such Credit Party or the terms of such Credit
Party’s organizational documents and, except as have been previously obtained or as referred to in
Section 6.10, below, do not require the consent or approval of any governmental body, agency or
authority or any other third party except to the extent that such consent or approval is not
material to the transactions contemplated by the Loan Documents.

     6.3 Good Title; Leases; Assets; No Liens. (a) Each Credit Party, to the extent applicable, has good and valid title (or, in the case
of real property, good and marketable title) to all assets owned by it that are material to the
conduct of its business, subject only to the Liens permitted under section 8.2 hereof, and each
Credit Party has a valid leasehold or interest as a lessee or a licensee in all of its leased real
property;

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     (b) Schedule 6.3(b) to the Disclosure Letter identifies all of the real property owned or
leased, as lessee thereunder, by the Obligors on the Effective Date, including all warehouse or
bailee locations;

     (c) The Credit Parties will collectively own or collectively have a valid leasehold interest
in all assets that were owned or leased (as lessee) by the Credit Parties immediately prior to the
Effective Date to the extent that such assets are necessary for the continued operation of the
Credit Parties’ businesses in substantially the manner as such businesses were operated immediately
prior to the Effective Date;

     (d) Each Credit Party owns or has a valid leasehold interest in all real property necessary
for its continued operations and, to the best knowledge of Borrower, no material condemnation,
eminent domain or expropriation action has been commenced or threatened against any such owned or
leased real property; and

     (e) There are no Liens on and no financing statements on file with respect to any of the
assets owned by the Credit Parties, except for the Liens permitted pursuant to Section 8.2 of this
Agreement.

     6.4 Taxes. Except as set forth on Schedule 6.4 to the Disclosure Letter, each Credit Party has filed
on or before their respective due dates or within the applicable grace periods, all United States
federal, state, local and other tax returns which are required to be filed or has obtained
extensions for filing such tax returns and is not delinquent in filing such returns in accordance
with such extensions and has paid all material taxes which have become due pursuant to those
returns or pursuant to any assessments received by any such Credit Party, as the case may be, to
the extent such taxes have become due, except to the extent such taxes are being contested in good
faith by appropriate proceedings diligently conducted and with respect to which adequate provision
has been made on the books of such Credit Party as may be required by GAAP.

     6.5 No Defaults. No Credit Party is in default under or with respect to any material agreement, instrument
or undertaking to which is a party or by which it or any of its property is bound which would cause
or would reasonably be expected to cause a Material Adverse Effect.

     6.6 Enforceability of Agreement and Loan Documents. This Agreement and each of the other Loan Documents to which any Credit Party is a party
(including without limitation, each Request for Advance), have each been duly executed and
delivered by its duly authorized officers and constitute the valid and binding obligations of such
Credit Party, enforceable against such Credit Party in accordance with their respective terms,
except as enforcement thereof may be limited by applicable bankruptcy, reorganization, insolvency,
fraudulent conveyance, moratorium or similar laws affecting the enforcement of creditor’s rights,
generally and by general principles of equity (regardless of whether enforcement is considered in a
proceeding in law or equity).

     6.7 Compliance with Laws. (a) Except as disclosed on Schedule 6.7 to the Disclosure Letter and to the knowledge of
each Credit Parties, each Credit Party has complied with all applicable federal, state and local
laws, ordinances, codes, rules, regulations and guidelines

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(including consent decrees and
administrative orders) including but not limited to Hazardous Material Laws, and is in compliance
with any Requirement of Law, in each case, except to the extent that failure to comply therewith
could not reasonably be expected to have a Material Adverse Effect; and (b) neither the extension
of credit made pursuant to this Agreement or the use of the proceeds thereof by the Credit Parties
will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or
any enabling legislation or executive order relating thereto, or The United and Strengthening
America by providing appropriate Tools Required to Intercept and Obstruct Terrorism (“USA Patriot
Act”) Act of 2001, Public Law 10756, October 26, 2001 or
Executive Order 13224 of September 23, 2001 issued by the President of the United States (66
Fed. Reg. 49049 (2001)).

     6.8 Non-contravention. The execution, delivery and performance of this Agreement and the other Loan Documents
(including each Request for Advance) to which each Credit Party is a party are not in contravention
of the terms of any indenture, agreement or undertaking to which such Credit Party is a party or by
which it or its properties are bound where such violation could reasonably be expected to have a
Material Adverse Effect.

     6.9 Litigation. Except as set forth on Schedule 6.9 to the Disclosure Letter, there is no suit, action,
proceeding, including, without limitation, any bankruptcy proceeding or governmental investigation
pending against or to the knowledge of Borrower, threatened against any Credit Party (other than
any suit, action or proceeding in which a Credit Party is the plaintiff and in which no
counterclaim or cross-claim against such Credit Party has been filed), or any judgment, decree,
injunction, rule, or order of any court, government, department, commission, agency,
instrumentality or arbitrator outstanding against any Credit Party, nor is any Credit Party in
violation of any applicable law, regulation, ordinance, order, injunction, decree or requirement of
any governmental body or court which could in any of the foregoing events reasonably be expected to
have a Material Adverse Effect.

     6.10 Consents, Approvals and Filings, Etc. Except as set forth on Schedule 6.10 to the Disclosure Letter, no material authorization,
consent, approval, license, qualification or formal exemption from, nor any filing, declaration or
registration with, any court, governmental agency or regulatory authority or any securities
exchange or any other Person (whether or not governmental) (each, a “Filing”) is required in
connection with the execution, delivery and performance: (a) by any Credit Party of this Agreement
and any of the other Loan Documents to which such Credit Party is a party or (b) by the Credit
Parties of the grant of Liens granted, conveyed or otherwise established (or to be granted,
conveyed or otherwise established) by or under this Agreement or the other Loan Documents, as
applicable, except in each case for (i) Filings which have been previously obtained, (ii) Filings
to be made concurrently herewith or promptly following the Effective Date as are required by the
Collateral Documents to perfect Liens in favor of the Agent, (iii) Filings required to be obtain
and maintain existence, good standing and similar matters, (iv) routine Filings necessary in the
ordinary course of business, (v) Filings required in connection with the performance of the Loan
Documents, and (vi) Filings required in connection with the exercise of remedies under the Loan
Documents. All such material authorizations, consents, approvals, licenses, qualifications,
exemptions, filings, declarations and registrations which have previously been obtained or made, as
the case may be, are in full force and effect and, to the best knowledge of Borrower, are not the
subject of any

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attack or threatened attack (in each case in any material respect) by appeal or
direct proceeding or otherwise.

     6.11 Agreements Affecting Financial Condition. No Credit Party is party to any agreement or instrument or subject to any charter or other
corporate restriction which could reasonably be expected to have a Material Adverse Effect.

     6.12 No Investment Company or Margin Stock. No Credit Party is an “investment company” within the meaning of the Investment Company Act
of 1940, as amended. No Credit Party is engaged principally, or as one of its important activities,
directly or indirectly, in the business of extending credit for the purpose of purchasing or
carrying margin stock. None of the proceeds of any of the Advances will be used by any Credit Party
to purchase or carry margin stock. Terms for which meanings are provided in Regulation U of the
Board of Governors of the Federal Reserve System or any regulations substituted therefore, as from
time to time in effect, are used in this paragraph with such meanings.

     6.13 ERISA. No Credit Party maintains or contributes to any Pension Plan subject to Title IV of ERISA,
except as set forth on Schedule 6.13 to the Disclosure Letter or otherwise disclosed to the Agent
in writing. There is no accumulated funding deficiency within the meaning of Section 412 of the
Internal Revenue Code or Section 302 of ERISA, or any outstanding liability with respect to any
Pension Plans owed to the PBGC other than future premiums due and owing pursuant to Section 4007 of
ERISA, and no “reportable event” as defined in Section 4043(c) of ERISA has occurred with respect
to any Pension Plan other than an event for which the notice requirement has been waived by the
PBGC. None of the Credit Parties has engaged in a prohibited transaction with respect to any
Pension Plan, other than a prohibited transaction for which an exemption is available and has been
obtained, which could subject such Credit Parties to a material tax or penalty imposed by Section
4975 of the Internal Revenue Code or Section 502(i) of ERISA. Each Pension Plan is being
maintained and funded in accordance with its terms and is in material compliance with the
requirements of the Internal Revenue Code and ERISA. No Credit Party has had a complete or partial
withdrawal from any Multiemployer Plan that has resulted or could reasonably be expected to have
resulted in any Withdrawal Liability and, except as notified to Agent in writing following the
Effective Date, no such Multiemployer Plan is in reorganization (within the meaning of Section 4241
of ERISA) or insolvent (within the meaning of Section 4245 of ERISA).

     6.14 Conditions Affecting Business or Properties. Neither the respective businesses nor the properties of any Credit Party are affected by
any fire, explosion, accident, strike, lockout or other dispute, drought, storm, hail, earthquake,
embargo, Act of God, or other casualty (except to the extent such event is covered by insurance
sufficient to ensure that upon application of the proceeds thereof, no Material Adverse Effect
could reasonably be expected to occur) which could reasonably be expected to have a Material
Adverse Effect.

     6.15 Environmental and Safety Matters. Except as set forth in Schedules 6.9, 6.10 and 6.15 to the Disclosure Letter or as would
not reasonably be expected to have a Material Adverse Effect:

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	 	(a)	 	all facilities and property owned or leased by the Credit
Parties are in compliance with all applicable Hazardous Material Laws;
	 
	 	(b)	 	to the best knowledge of Borrower, there have been no
unresolved and outstanding past, and there are no pending or threatened in
writing:

	 	(i)	 	claims, complaints, notices or requests for
information received by any Credit Party with respect to any alleged
violation of any applicable Hazardous Material Law, or
	 
	 	(ii)	 	written complaints, notices or inquiries to any
Credit Party regarding potential liability of any Credit Parties under
any applicable Hazardous Material Law; and

	 	(c)	 	to the best knowledge of Borrower, no conditions exist at, on
or under any property now or previously owned or leased by any Credit Party
which, with the passage of time, or the giving of notice or both, are
reasonably likely to give rise to liability under any applicable Hazardous
Material Law or create a significant adverse effect on the value of the
property.

     6.16 Subsidiaries. Except as disclosed on Schedule 6.16 to the Disclosure Letter as of the Effective Date, and
thereafter, except as disclosed to the Agent in writing from time to time, no Credit Party has any
Subsidiaries.

     6.17 Management Agreements. Schedule 6.17 to the Disclosure Letter is an accurate and complete list of all management
and significant employment agreements (excluding offer letters) in effect on or as of the Effective
Date to which any Credit Party is a party or is bound.

     6.18 [Intentionally Deleted].

     6.19 Franchises, Patents, Copyrights, Tradenames, etc. The Credit Parties possess all franchises, patents, copyrights, trademarks, trade names,
licenses and permits, and rights in respect of the foregoing, adequate for the conduct of their
business substantially as now conducted without known conflict with any rights of others. Schedule
6.19 contains a true and accurate list of all trade names and any and all other names used by any
Credit Party during the five-year period ending as of the Effective Date.

     6.20 Capital Structure. Schedule 6.20 to the Disclosure Letter sets forth all issued and outstanding Equity
Interests of each Credit Party, including the number of authorized, issued and outstanding Equity
Interests of each Credit Party and the par value of such Equity Interests, all on and as of the
Effective Date. All issued and outstanding Equity Interests of each Credit Party are duly
authorized and validly issued, fully paid, nonassessable, free and clear of all Liens (except for
the benefit of Agent) and such Equity Interests were issued in compliance with all applicable
state, federal and foreign laws concerning the issuance of securities. Except as disclosed on
Schedule 6.20 to the Disclosure Letter, there are no preemptive or other outstanding rights,
options, warrants, conversion rights or similar agreements or understandings for the purchase or
acquisition from any Credit Party, of any Equity Interests of any Credit Party other than rights of
the Borrower.

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     6.21 Accuracy of Information. (a) The audited financial statements for the Fiscal Year ended June 30, 2009, furnished to
Agent and the Lenders prior to the Effective Date fairly present in all material respects the
financial condition of the Borrower and its Subsidiaries and the results of their operations for
the periods covered thereby, and have been prepared in accordance with GAAP. The projections, the
Pro Forma Balance Sheet and the other pro forma financial information delivered to the Agent prior
to the Effective Date are based upon good faith estimates and assumptions believed by management of
the Borrower to be accurate and reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be viewed as fact and that
actual results during the period or periods covered by such financial information may differ from
the projected results set forth therein.

     (b) Since June 30, 2009, there has been no material adverse change in the business,
operations, financial condition or property of the Credit Parties, taken as a whole.

     (c) To the best knowledge of the Credit Parties, as of the Effective Date, (i) the Credit
Parties do not have any material contingent obligations (including any liability for taxes) not
disclosed by or reserved against in the opening balance sheet to be delivered hereunder and (ii)
there are no unrealized or anticipated losses from any present commitment of the Credit Parties
which contingent obligations and losses in the aggregate could reasonably be expected to have a
Material Adverse Effect.

     6.22 Solvency. After giving effect to the consummation of the transactions contemplated by this Agreement
and other Loan Documents, each Credit Party will be solvent, able to pay its indebtedness as it
matures and will have capital sufficient to carry on its businesses and all business in which it is
about to engage. This Agreement is being executed and delivered by the Borrower to Agent and the
Lenders in good faith and in exchange for fair, equivalent consideration. The Credit Parties do not
intend to nor does management of the Credit Parties believe the Credit Parties will incur debts
beyond their ability to pay as they mature. The Credit Parties do not contemplate filing a petition
in bankruptcy or for an arrangement or reorganization under the Bankruptcy Code or any similar law
of any jurisdiction now or hereafter in effect
relating to any Credit Party, nor does any Credit Party have any knowledge of any threatened
bankruptcy or insolvency proceedings against a Credit Party.

     6.23 Employee Matters. There are no strikes, slowdowns, work stoppages, unfair labor practice complaints,
grievances, arbitration proceedings or controversies pending or, to the best knowledge of the
Borrower, threatened against any Credit Party by any employees of any Credit Party, other than
non-material employee grievances or controversies arising in the ordinary course of business. Set
forth on Schedule 6.23 to the Disclosure Letter are all union contracts or agreements to which any
Credit Party is party as of the Effective Date and the related expiration dates of each such
contract.

     6.24 No Misrepresentation. Neither this Agreement nor any other Loan Document, certificate, information or report
furnished or to be furnished by or on behalf of a Credit Party to Agent or any Lender in connection
with any of the transactions contemplated hereby or thereby, contains a misstatement of material
fact, or omits to state a material fact required to be stated in order to make the statements
contained herein or therein, taken as a whole, not misleading in the

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light of the circumstances
under which such statements were made. There is no fact, other than information known to the
public generally, known to any Credit Party after diligent inquiry, that could reasonably be expect
to have a Material Adverse Effect that has not expressly been disclosed to Agent in writing.

     6.25 Corporate Documents and Corporate Existence. As to each Obligor, (a) it is an organization as described on Schedule 1.3 hereto and has
provided the Agent and the Lenders with complete and correct copies of its articles of
incorporation, by-laws and all other applicable charter and other organizational documents, and, if
applicable, a good standing certificate and (b) its correct legal name, business address, type of
organization and jurisdiction of organization, tax identification number and other relevant
identification numbers are set forth on Schedule 1.3 hereto.

7. AFFIRMATIVE COVENANTS.

     Borrower covenants and agrees, so long as any Lender has any commitment to extend credit
hereunder, or any of the Indebtedness remains outstanding and unpaid, that it will, and, as
applicable, it will cause each of its Subsidiaries to:

     7.1 Financial Statements. Furnish to the Agent, in form and detail satisfactory to Agent, with sufficient copies for
each Lender, the following documents:

	 	(a)	 	as soon as available, but in any event within one hundred
twenty (120) days after the end of each Fiscal Year, a copy of the audited
Consolidated and, if reasonably requested by the Agent, unaudited Consolidating
financial statements of the Borrower and its Consolidated Subsidiaries as at
the end of such Fiscal Year and the related audited Consolidated and if
reasonably requested by the Agent, unaudited Consolidating statements of
income, stockholders equity, and cash flows of the Borrower and its
Consolidated Subsidiaries for such Fiscal Year or partial Fiscal Year and
underlying assumptions, setting forth in each case in comparative form the
figures for the previous Fiscal Year, certified as being fairly stated in
all material respects by an independent, nationally recognized certified
public accounting firm reasonably satisfactory to the Agent; and
	 
	 	(b)	 	as soon as available, but in any event within forty five (45)
days after the end of each fiscal quarter of the Credit Parties (except the
last quarter of each Fiscal Year), Borrower prepared unaudited Consolidated and
if reasonably requested by the Agent, Consolidating balance sheets of the
Borrower and its Consolidated Subsidiaries as at the end of such quarter and
the related unaudited statements of income, stockholders equity and cash flows
of the Borrower and its Consolidated Subsidiaries for the portion of the Fiscal
Year through the end of such quarter, setting forth in each case in comparative
form the figures for the corresponding periods in the previous Fiscal Year, and
certified by a Responsible Officer of the Borrower as being fairly stated in
all material respects;

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all such financial statements to fairly present in all material respects the financial condition
and results of operations for such periods and shall be prepared in accordance with GAAP throughout
the periods reflected therein and with prior periods (except as approved by a Responsible Officer
and disclosed therein), provided however that the financial statements delivered pursuant to clause
(b) hereof will not be required to include footnotes and will be subject to change from audit and
year-end adjustments.

     7.2 Certificates; Other Information. Furnish to the Agent, in form and detail reasonably acceptable to Agent, with sufficient
copies for each Lender, the following documents:

	 	(a)	 	Concurrently with the delivery of the financial statements
described in Sections 7.1(a) for each fiscal year end, and 7.1(b) for each
fiscal quarter end, a Covenant Compliance Report (or, in the case of the
Borrower prepared financial statements for the last fiscal quarter of each
fiscal year, a draft Covenant Compliance Certificate) duly executed by a
Responsible Officer of Borrower;
	 
	 	(b)	 	Promptly upon receipt thereof, copies of all significant
reports submitted by the Credit Parties’ firm(s) of certified public
accountants in connection with each annual, interim or special audit or review
of any type of the financial statements or related internal control systems of
the Credit Parties made by such accountants, including any comment letter
submitted by such accountants to management in connection with their services;
	 
	 	(c)	 	Any financial reports, statements, press releases, other
material information or written notices delivered to the holders of the
Subordinated Debt pursuant to any applicable Subordinated Debt Documents (to
the extent not otherwise required hereunder), as and when delivered to such
Persons and, if applicable, all reports on Forms 10-K and 10-Q filed with the
Securities and Exchange Commission;
	 
	 	(d)	 	Within forty five (45) days after the end of each Fiscal Year,
an annual budget reviewed by Borrower’s Board of Directors certified by a
Responsible Officer of the Borrower;
	 
	 	(e)	 	Within forty five (45) days after and as of the end of each
fiscal quarter, including the last fiscal quarter of each Fiscal Year, (i) the
quarterly aging of the accounts receivable and accounts payable of the Credit
Parties and (ii) a report signed by a Responsible Officer, in form reasonably
acceptable to Agent, listing any applications or registrations that Borrower or
any Guarantor has made or filed in respect of any Patents, Trademarks or
Copyrights and the status of any outstanding applications or registrations, as
well as any material change in the Intellectual Property Collateral (as defined
in the Collateral Documents), including but not limited to any Patent,
Trademark or Copyright not specified in the exhibits to the Security Agreement;

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	 	(f)	 	Any additional information as required by any Loan Document,
and such additional schedules to the Disclosure Letter, certificates and
reports respecting all or any of the Collateral, the items or amounts received
by the Credit Parties in full or partial payment thereof, and any goods (the
sale or lease of which shall have given rise to any of the Collateral)
possession of which has been obtained by the Credit Parties, all to such extent
as Agent may reasonably request from time to time, any such schedule,
certificate or report to be certified as true and correct in all material
respects by a Responsible Officer of the applicable Credit Party and shall be
in such form and detail as Agent may reasonably specify; and
	 
	 	(g)	 	Such additional financial and/or other information as Agent or
any Lender may from time to time reasonably request, promptly following such
request.

     7.3 Payment of Obligations. Pay, discharge or otherwise satisfy, at or before maturity or before they become
delinquent, as the case may be, all of its material obligations of whatever nature, including
without limitation all assessments, governmental charges, claims for labor, supplies, rent or other
obligations, except where the amount or validity thereof is currently being appropriately contested
in good faith and reserves in conformity with GAAP with respect thereto have been provided on the
books of the Credit Parties.

     7.4 Conduct of Business and Maintenance of Existence; Compliance with Laws.

     (a) Continue to engage in their respective business and operations substantially as conducted
immediately prior to the Effective Date other than the Direct Selling Services division;

     (b) Preserve, renew and keep in full force and effect its existence and maintain its
qualifications to do business in each jurisdiction where such qualifications are necessary for its
operations, except as otherwise permitted pursuant to Section 8.4 and except where failure to do so
could not reasonably be expected to have a Material Adverse Effect;

     (c) Take all action it deems necessary in its reasonable business judgment to maintain all
rights, privileges, licenses and franchises necessary for the normal conduct of its business except
where the failure to so maintain such rights, privileges or franchises could not, either singly or
in the aggregate, reasonably be expected to have a Material Adverse Effect;

     (d) Comply with all applicable Requirements of Law, except to the extent that failure to
comply therewith could not, either singly or in the aggregate, reasonably be expected to have a
Material Adverse Effect; and

     (e) (i) Continue to be a Person whose property or interests in property is not blocked or
subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit or Support
Terrorism (66 Fed. Reg. 49079 (2001)) (the “Order”), (ii) not engage in the transactions prohibited
by Section 2 of that Order or become associated with Persons such that a violation of Section 2 of
the Order would arise, and (iii) not become a Person on the list of

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Specially Designated National
and Blocked Persons, or (iv) otherwise not become subject to the limitation of any OFAC regulation
or executive order.

     7.5 Maintenance of Property; Insurance. (a) Keep all material property it deems, in its reasonable business judgment, useful and
necessary in its business in working order (ordinary wear and tear excepted); (b) maintain
insurance coverage with financially sound and reputable insurance companies on physical assets and
against other business risks in such amounts and of such types as are customarily carried by
companies similar in size and nature (including without limitation casualty and public liability
and property damage insurance), and in the event of acquisition of additional property, real or
personal, or of the incurrence of additional risks of any nature, increase such insurance coverage
in such manner and to such extent as prudent business judgment and present practice or any
applicable Requirements of Law would dictate; provided, however, if Borrower loses its insurance
coverage because of the insolvency of its insurer, Borrower shall obtain replacement coverage
meeting the requirements of the Loan Documents as soon as is reasonably practicable after the loss
of such coverage and in any event within thirty (30) days after such loss and the failure to have
insurance coverage during the interim period shall not constitute an Event of Default; (c) in the
case of all insurance policies covering any Collateral, such insurance policies shall provide that
the loss payable thereunder shall be payable to the applicable Credit Party, and to the Agent (as
mortgagee, or, in the case of personal property interests, lender loss payee) as
their respective interests may appear; (d) in the case of all public liability insurance
policies, such policies shall list the Agent as an additional insured, as Agent may reasonably
request; and (e) if requested by Agent, certificates evidencing such policies, including all
endorsements thereto, to be deposited with Agent, such certificates being in form and substance
reasonably acceptable to Agent.

     7.6 Inspection of Property; Books and Records, Discussions. Permit Agent and each Lender, through their authorized attorneys, accountants and
representatives (a) at all reasonable times during normal business hours, upon the request of Agent
or such Lender, to examine each Credit Party’s books, accounts, records, ledgers and assets and
properties; (b) from time to time, during normal business hours, upon the request of the Agent, to
conduct full or partial collateral audits of the Accounts and Inventory of the Credit Parties and
appraisals of all or a portion of the fixed assets (including real property) of the Credit Parties,
such audits and appraisals to be completed by an appraiser as may be selected by Agent and
consented to by Borrower (such consent not to be unreasonably withheld), with all reasonable costs
and expenses of such audits to be reimbursed by the Credit Parties (provided that unless an Event
of Default has occurred and is continuing, the Credit Parties shall not be obligated to reimburse
the Agent for more than one (1) such audit or appraisal per calendar year), (c) during normal
business hours and at their own risk, to enter onto the real property owned or leased by any Credit
Party to conduct inspections, investigations or other reviews of such real property; and (d) at
reasonable times during normal business hours with prior notice to Borrower and at reasonable
intervals, to visit all of the Credit Parties’ offices, discuss each Credit Party’s respective
financial matters with their respective officers, as applicable, and, by this provision, Borrower
authorizes, and will cause each of their respective Subsidiaries to authorize, its independent
certified or chartered public accountants to discuss the finances and affairs of any Credit Party
and examine any of such Credit Party’s books, reports or records held by such accountants.

     7.7 Notices. Promptly give written notice to the Agent of:

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	 	(a)	 	the occurrence of any Default or Event of Default of which any
Credit Party has knowledge;
	 
	 	(b)	 	any (i) litigation or proceeding existing at any time between
any Credit Party and any Governmental Authority or other third party, or any
investigation of any Credit Party conducted by any Governmental Authority,
which in any case if adversely determined would have a Material Adverse Effect
or which could reasonably be expected to result in damages or costs to Borrower
or any Subsidiary of Two Million Five Hundred Thousand Dollars ($2,500,000) or
more or (ii) any material adverse change in the financial condition of any
Credit Party since the date of the last audited financial statements delivered
pursuant to Section 7.1(a) hereof;
	 
	 	(c)	 	the occurrence of any event which any Credit Party believes
could reasonably be expected to have a Material Adverse Effect, promptly after
concluding that such event could reasonably be expected to have such a Material
Adverse Effect;
	 
	 	(d)	 	promptly after becoming aware thereof, the taking by the
Internal Revenue Service or any foreign taxing jurisdiction of a written tax
position (or any such tax position taken by any Credit Party in a filing with
the Internal Revenue Service or any foreign taxing jurisdiction) which could
reasonably be expected to have a Material Adverse Effect, setting forth the
details of such position and the financial impact thereof;
	 
	 	(e)	 	(i) the acquisition or creation of any new Subsidiaries, (iii)
any material change after the Effective Date in the authorized and issued
Equity Interests of any Obligor or any other material amendment to any
Obligor’s charter, by-laws or other organizational documents, such notice, in
each case, to identify the applicable jurisdictions, capital structures or
amendments as applicable, provided that such notice shall be given not less
than five (5) Business Days prior to the proposed effectiveness of such
changes, acquisition or creation, as the case may be (or such shorter period to
which Agent may consent);
	 
	 	(f)	 	not less than ten (10) Business Days (or such other shorter
period to which Agent may agree) prior to the proposed effective date thereof,
any proposed material amendments, restatements or other modifications to any
Subordinated Debt Documents which would have an adverse effect on the Lenders
(it being acknowledged by Borrower that any change in term, interest rate,
prepayment provisions, amortization, financial covenants or default provisions
shall be deemed to have an adverse effect on the Lenders); and
	 
	 	(g)	 	any default or event of default by any Person under any
Subordinated Debt Document, concurrently with delivery or promptly after
receipt (as

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	 	 	 	the case may be) of any notice of default or event of default under
the applicable document, as the case may be.

Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer
of Borrower setting forth details of the occurrence referred to therein and, in the case of notices
referred to in clauses (a), (b), (c), (d) and (g) hereof stating what action the applicable Credit
Party has taken or proposes to take with respect thereto.

     7.8 Hazardous Material Laws.

     (a) Use and operate all of its facilities and properties in material compliance with all
applicable Hazardous Material Laws, keep all material required permits, approvals, certificates,
licenses and other authorizations required under such Hazardous Material Laws in effect and
remain in compliance therewith, and handle all Hazardous Materials in material compliance with
all applicable Hazardous Material Laws;

     (b) (i) Promptly notify Agent and provide copies upon receipt of all written claims,
complaints, notices or inquiries received by any Credit Party relating to its facilities and
properties or compliance with applicable Hazardous Material Laws which, if adversely determined,
could reasonably be expected to have a Material Adverse Effect and (ii) promptly cure and have
dismissed with prejudice to the reasonable satisfaction of Agent and the Majority Lenders any
material actions and proceedings relating to compliance with applicable Hazardous Material Laws to
which any Credit Party is named a party, other than such actions or proceedings being contested in
good faith and with the establishment of reasonable reserves;

     (c) To the extent necessary to comply in all material respects with applicable Hazardous
Material Laws, remediate or monitor contamination arising from a release or disposal of Hazardous
Material, which solely, or together with other releases or disposals of Hazardous Materials could
reasonably be expected to have a Material Adverse Effect;

     (d) Provide such information and certifications which Agent or any Lender may reasonably
request from time to time to evidence compliance with this Section 7.8.

     7.9 Financial Covenants.

     (a) Maintain as of the end of each fiscal quarter, an Adjusted Quick Ratio of not less than
1.15 to 1.00;

     (b) Maintain as of the end of each fiscal quarter, a Fixed Charge Coverage Ratio of not less
than 1.15 to 1.00.

     (c) Maintain as of the end of each fiscal quarter a Funded Debt to EBITDA Ratio of not more
than (i) 2.75 to 1.00 for December 31, 2009 through December 30, 2010, and (ii) 2.50 to 1.00 from
December 31, 2010 and for all fiscal quarters thereafter.

     7.10 Governmental and Other Approvals. Apply for, obtain and/or maintain in effect, as applicable, all authorizations, consents,
approvals, licenses, qualifications, exemptions, filings, declarations and registrations (whether
with any court, governmental agency, regulatory

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authority, securities exchange or otherwise) which
are necessary or reasonably requested by Agent in connection with the execution, delivery and
performance by any Credit Party of, as applicable, this Agreement, the other Loan Documents, the
Subordinated Debt Documents, or any other documents or instruments to be executed and/or delivered
by any Credit Party, as applicable in connection therewith or herewith, except where the failure to
so apply for, obtain or maintain could not reasonably be expected to have a Material Adverse
Effect.

     7.11 Compliance with ERISA; ERISA Notices. (a) Comply in all material respects with all material requirements imposed by ERISA and
the Internal Revenue Code, including, but not limited to, the minimum funding requirements
for any Pension Plan, except to the extent that any noncompliance could not reasonably be
expected to have a Material Adverse Effect.

     (b) Promptly notify Agent upon the occurrence of any of the following events in writing: (i)
the termination, other than a standard termination, as defined in ERISA, of any Pension Plan
subject to Subtitle C of Title IV of ERISA by any Credit Party; (ii) the appointment of a trustee
by a United States District Court to administer any Pension Plan subject to Title IV of ERISA;
(iii) the commencement by the PBGC, of any proceeding to terminate any Pension Plan subject to
Title IV of ERISA; (iv) the failure of any Credit Party to make any payment in respect of any
Pension Plan required under Section 412 of the Internal Revenue Code or Section 302 of ERISA; (v)
the withdrawal of any Credit Party from any Multiemployer Plan if any Credit Party reasonably
believes that such withdrawal would give rise to the imposition of Withdrawal Liability with
respect thereto; or (vi) the occurrence of (x) a “reportable event” which is required to be
reported by a Credit Party under Section 4043 of ERISA other than any event for which the reporting
requirement has been waived by the PBGC or (y) a “prohibited transaction” as defined in Section 406
of ERISA or Section 4975 of the Internal Revenue Code other than a transaction for which a
statutory exemption is available or an administrative exemption has been obtained, except to the
extent such event could not reasonably be expected to have a Material Adverse Effect or result in
any Lien on the assets of any Credit Party.

     7.12 Defense of Collateral. Defend the Collateral from any Liens other than Liens permitted by Section 8.2.

     7.13 Future Subsidiaries; Additional Collateral.

     (a) With respect to each Person which becomes a Domestic Subsidiary of Borrower (directly or
indirectly) subsequent to the Effective Date, whether by Permitted Acquisition or otherwise, cause
such Domestic Subsidiary which is a Material Subsidiary to execute and deliver to the Agent, for
and on behalf of each of the Lenders (unless waived by Agent):

	 	(i)	 	within thirty (30) days after the date such
Person becomes a Material Subsidiary (or such longer time period as the
Agent may determine), a Guaranty, or in the event that a Guaranty
already exists, a joinder agreement to the Guaranty whereby such
Domestic Subsidiary becomes obligated as a Guarantor under the
Guaranty; and

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	 	(ii)	 	within thirty (30) days after the date such
Person becomes a Material Subsidiary (or such longer time period as the
Agent may determine), a joinder agreement to the Security Agreement
whereby such Domestic Subsidiary grants a Lien over its assets (other
than Equity Interests which should be governed by (b) of this Section
7.13) as set forth in the Security Agreement, and such Domestic
Subsidiary shall take such additional actions as may be necessary to
ensure a valid first priority perfected Lien over such
assets of such Domestic Subsidiary, subject only to the other Liens
permitted pursuant to Section 8.2 of this Agreement.

     Notwithstanding the foregoing, upon the request of Agent, Borrower shall cause Domestic
Subsidiaries which are not Material Subsidiaries to provide the items required above within the
time periods specified above so that at all times Agent has received Guaranties and Security
Agreements from Credit Parties which on a combined basis account for not less than 90% of the Total
Assets of Borrower and its consolidated Subsidiaries and not less than 90% of the gross revenues of
Borrower and its consolidated Subsidiaries.

     (b) With respect to the Equity Interests of each Person which becomes (whether by Permitted
Acquisition or otherwise) (i) a Domestic Subsidiary subsequent to the Effective Date, cause the
Borrower and each Guarantor that holds such Equity Interests to execute and deliver such Pledge
Agreements, and take such actions as may be necessary to ensure a valid first priority perfected
Lien over one hundred percent (100%) of the Equity Interests of such Domestic Subsidiary held by
such Person, such Pledge Agreements to be executed and delivered (unless waived by Agent) within
thirty (30) days after the date such Person becomes a Domestic Subsidiary (or such longer time
period as Agent may determine); and (ii) a Foreign Subsidiary which is a Material Subsidiary
subsequent to the Effective Date, the Equity Interests of which is held directly by Borrower or one
of its Domestic Subsidiaries, cause the Credit Party that holds such Equity Interests to execute
and deliver such Pledge Agreements and take such actions as may be necessary to ensure a valid
first priority perfected Lien over sixty-five percent (65%) of the Equity Interests of such
Subsidiary, such Pledge Agreements to be executed and delivered (unless waived by Agent) within
thirty (30) days after the date such Person becomes a Foreign Subsidiary (or such longer time
period as Agent may determine); and

     (c) With respect to the acquisition of a fee interest in real property by any Credit Party
with a fair market value in excess of Two Million Five Hundred Thousand Dollars ($2,500,000) after
the Effective Date (whether by Permitted Acquisition or otherwise), not later than sixty (60) days
after the acquisition is consummated or the owner of such property becomes a Domestic Subsidiary
(or such longer time period as Agent may determine), such Credit Party shall execute or cause to be
executed (unless waived by Agent), a Mortgage (or an amendment to an existing mortgage, where
appropriate) covering such real property, together with such additional real estate documentation,
environmental reports, title policies and surveys as may be reasonably required by Agent;

in each case in form reasonably satisfactory to the Agent, in its reasonable discretion, together
with such supporting documentation, including without limitation corporate authority items,
certificates and opinions of counsel, as reasonably required by the Agent. Upon the Agent’s

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request, Credit Parties shall take, or cause to be taken, such additional steps as are
necessary or advisable under applicable law to perfect and ensure the validity and priority of the
Liens granted under this Section 7.13.

     7.14 Accounts. Maintain all deposit accounts and securities accounts of any Credit Party with Agent, a
Lender, an Affiliate of a Lender or any other financial institution reasonably acceptable to Agent,
provided that, with respect to any such accounts maintained with any Person (other than Agent),
such Credit Party (i) shall cause to be executed and delivered an Account Control Agreement in form
and substance satisfactory to Agent and (ii) has taken all other steps necessary, or in the opinion
of the Agent, desirable to ensure that Agent has a perfected security interest in such account.

     7.15 Use of Proceeds. Use all Advances of the Revolving Credit as set forth in Section 2.12 hereof and the
proceeds of the Term Loan as set forth in Section 4.9 hereof. Borrower shall not use any portion of
the proceeds of any such advances for the purpose of purchasing or carrying any “margin stock” (as
defined in Regulation U of the Board of Governors of the Federal Reserve System) in any manner
which violates the provisions of Regulation T, U or X of said Board of Governors or for any other
purpose in violation of any applicable statute or regulation.

     7.16 [Reserved].

     7.17 Further Assurances and Information. (a) Take such actions as the Agent or Majority Lenders may from time to time reasonably
request to establish and maintain first priority perfected security interests in and Liens on all
of the Collateral, subject only to those Liens permitted under Section 8.2 hereof, including
executing and delivering such additional pledges, assignments, mortgages, lien instruments or other
security instruments covering any or all of the Credit Parties’ assets as Agent may reasonably
require, such documentation to be in form and substance reasonably acceptable to Agent, and
prepared at the expense of the Borrower.

     (b) Execute and deliver or cause to be executed and delivered to Agent within a reasonable
time following Agent’s request, and at the expense of the Borrower, such other documents or
instruments as Agent may reasonably require to effectuate more fully the purposes of this Agreement
or the other Loan Documents.

     (c) Provide the Agent and the Lenders with any other information required by Section 326 of
the USA Patriot Act or necessary for the Agent and the Lenders to verify the identity of any Credit
Party as required by Section 326 of the USA Patriot Act.

8. NEGATIVE COVENANTS.

     Borrower covenants and agrees that, so long as any Lender has any commitment to extend credit
hereunder, or any of the Indebtedness remains outstanding and unpaid, it will not, and, as
applicable, it will not permit any of its Subsidiaries to:

     8.1 Limitation on Debt. Create, incur, assume or suffer to exist any Debt, except:

	 	(a)	 	Indebtedness of any Credit Party to Agent and the Lenders under
this Agreement and/or the other Loan Documents;

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	 	(b)	 	any Debt existing on the Effective Date and set forth in
Schedule 8.1 to the Disclosure Letter and any renewals or refinancing of such
Debt (provided that (i) the aggregate principal amount of such renewed or
refinanced Debt shall not exceed the aggregate principal amount of the original
Debt outstanding on the Effective Date (less any principal payments and the
amount of any commitment reductions made thereon on or prior to such renewal or
refinancing), (ii) the renewal or refinancing of such Debt shall be on
substantially the same or better terms as in effect with respect to such Debt
on the Effective Date, and shall otherwise be in compliance with this
Agreement, and (iii) at the time of such renewal or refinancing no Default or
Event of Default has occurred and is continuing or would result from the
renewal or refinancing of such Debt;
	 
	 	(c)	 	any Debt of Borrower or any Subsidiary incurred to finance the
acquisition of fixed or capital assets, whether pursuant to a loan or a
Capitalized Lease provided that both at the time of and immediately after
giving effect to the incurrence thereof (i) no Default or Event of Default
shall have occurred and be continuing, and (ii) the aggregate amount of all
such Debt at any one time outstanding (including, without limitation, any Debt
of the type described in this clause (c) which is set forth on Schedule 8.1 to
the Disclosure Letter) shall not exceed $10,000,000, and any renewals or
refinancings of such Debt on terms substantially the same or better than those
in effect at the time of the original incurrence of such Debt;
	 
	 	(d)	 	Subordinated Debt;
	 
	 	(e)	 	Debt under any Hedging Transactions, provided that such
transaction is entered into for risk management purposes and not for
speculative purposes;
	 
	 	(f)	 	Debt arising from judgments or decrees not deemed to be a
Default or Event of Default under subsection (g) of Section 9.1;
	 
	 	(g)	 	Debt owing to a Person that is a Credit Party, but only to the
extent permitted under Section 8.7 hereof;
	 
	 	(h)	 	Debt incurred under Seller Notes (including any Seller Notes
listed in Schedule 8.1 to the Disclosure Letter) not to exceed Thirty Million
Dollars ($30,000,000) in the aggregate during the term of this Agreement;
	 
	 	(i)	 	Guaranty Obligations of Indebtedness otherwise permitted
hereunder of any Credit Party and Guaranties in the ordinary course of business
of the obligations of suppliers, customers and licensees of any Credit Party;
	 
	 	(j)	 	Debt of Foreign Subsidiaries not to exceed $2,500,000 in the
aggregate;

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	 	(k)	 	Debt relating to premium financing arrangements for property
and casualty insurance plans and health and welfare benefit plans (including
health and workers compensation insurance, employment practices liability
insurance and directors and officers insurance);
	 
	 	(l)	 	Debt relating to tenant improvement loans and real estate
commissions in an amount not exceeding $2,500,000 in the aggregate;
	 
	 	(m)	 	Debt in respect of performance bonds securing obligations not
constituting Debt for borrowed money (including worker’s compensation claims,
health benefits and local, state and federal payroll taxes) and obligations in
connection with self-insurance or similar requirements, in each case provided
in the ordinary course of business;
	 
	 	(n)	 	third-party indebtedness assumed pursuant to a Permitted
Acquisition completed in compliance with this Agreement of a type which is
permitted under this Agreement (except as a result of giving effect to a Dollar
limitation contained in this Section 8.1) in an amount not exceeding $5,000,000
in the aggregate;
	 
	 	(o)	 	non-recourse Debt with a maturity of less than 15 days incurred
in connection with a Permitted Acquisition with respect to which an I.R.C.
Section 338(h) election has been made; provided that no such Debt shall be
permitted following the initial maturity date of such Debt; and
	 
	 	(p)	 	additional unsecured Debt not otherwise described above,
provided that both at the time of and immediately after giving effect to the
incurrence thereof (i) no Default or Event of Default shall have occurred and
be continuing or result therefrom and (ii) the aggregate amount of all such
Debt shall not exceed $7,500,000 at any one time outstanding.

     8.2 Limitation on Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, except for:

	 	(a)	 	Permitted Liens;
	 
	 	(b)	 	Liens securing Debt permitted by Section 8.1(c), provided that
(i) such Liens are created upon fixed or capital assets acquired by the
applicable Credit Party after the date of this Agreement (including without
limitation by virtue of a loan or a Capitalized Lease), (ii) any such Lien is
created solely for the purpose of securing indebtedness representing or
incurred to finance the cost of the acquisition of the item of property subject
thereto, (iii) the principal amount of the Debt secured by any such Lien shall
at no time exceed 100% of the sum of the purchase price or cost of the
applicable property, equipment or improvements and the related costs and
charges imposed by the vendors thereof and (iv) the Lien does not cover any
property other than the fixed or capital asset acquired; provided, however,
that no such Lien shall be created over any owned real property

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of any Credit
Party for which Agent has received a Mortgage or for which such Credit Party is
required to execute a Mortgage pursuant to the terms of this Agreement;

	 	(c)	 	any Lien securing third-party indebtedness assumed pursuant to
any Permitted Acquisition conducted in compliance with this Agreement; provided
that such Lien is limited to the property so acquired, was not entered into,
extended or renewed in contemplation of such acquisition and is of a type of
Lien permitted under this Agreement (except as a result of giving effect to a
Dollar limitation contained in this Section 8.2);
	 
	 	(d)	 	Liens on intellectual property assets and tangible personal
property of the applicable seller granted in connection with Seller Notes;
	 
	 	(e)	 	Liens created pursuant to the Loan Documents;
	 
	 	(f)	 	Liens on the assets of Foreign Subsidiaries to secure the Debt
permitted under Section 8.1(j);
	 
	 	(g)	 	Liens on unearned premiums under insurance policies to secure
the Debt permitted under Section 8.1(k);
	 
	 	(h)	 	Liens on tenant improvements to secure the Debt permitted under
Section 8.1(l); and
	 
	 	(i)	 	other Liens, existing on the Effective Date, set forth on
Schedule 8.2 to the Disclosure Letter and renewals, refinancings and extensions
thereof on substantially the same or better terms as in effect on the Effective
Date and otherwise in compliance with this Agreement.

Regardless of the provisions of this Section 8.2, no Lien over the Equity Interests of Borrower or
any Subsidiary of Borrower (except for those Liens for the benefit of Agent and the Lenders) shall
be permitted under the terms of this Agreement.

     8.3 Acquisitions. Except for Permitted Acquisitions and acquisitions permitted under Section 8.7, if any,
purchase or otherwise acquire or become obligated for the purchase of all or substantially all or
any material portion of the assets or business interests or a division or other business unit of
any Person, or any Equity Interest of any Person, or any business or going concern.

     8.4 Limitation on Mergers, Dissolution or Sale of Assets. Enter into any merger or consolidation or convey, sell, lease, assign, transfer or
otherwise dispose of any of its property, business or assets (including, without limitation, Equity
Interests, receivables and leasehold interests), whether now owned or hereafter acquired or
liquidate, wind up or dissolve, except:

	 	(a)	 	Inventory leased or sold in the ordinary course of business;

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	 	(b)	 	obsolete, damaged, uneconomic or worn out machinery, parts,
property or equipment, or property or equipment no longer used or useful in the
conduct of the applicable Credit Party’s business;
	 
	 	(c)	 	Permitted Acquisitions;
	 
	 	(d)	 	mergers or consolidations of any Subsidiary of Borrower with or
into Borrower or any Guarantor so long as the Borrower or such Guarantor shall
be the continuing or surviving entity; provided that at the time of each such
merger or consolidation, both before and after giving effect thereto, no
Default or Event of Default shall have occurred and be continuing or result
from such merger or consolidation;
	 
	 	(e)	 	any Subsidiary of Borrower may liquidate or dissolve into
Borrower or a Guarantor if Borrower determines in good faith that such
liquidation or dissolution is in the best interests of Borrower, so long as no
Default or Event of Default has occurred and is continuing or would result
therefrom;
	 
	 	(f)	 	sales or transfers, including without limitation upon voluntary
liquidation from any Credit Party to Borrower or a Guarantor, provided that the
applicable Borrower or Guarantor takes such actions as Agent may reasonably
request to ensure the perfection and priority of the Liens in favor of the
Lenders over such transferred assets;
	 
	 	(g)	 	sales or transfers from any Foreign Subsidiary to any other
Foreign Subsidiary;
	 
	 	(h)	 	subject to Section 4.8(a) hereof, (i) Asset Sales (exclusive of
asset sales permitted pursuant to all other subsections of this Section 8.4) in
which the sales price is at least equal to the fair market value of the assets
sold and the consideration received is cash or cash equivalents, Equity
Interests or Debt of any Credit Party being assumed by the purchaser, provided
that (A) the aggregate amount of such Asset Sales does not exceed five percent
(5%) of Borrower’s Total Assets in any Fiscal Year and no Default or
Event of Default has occurred and is continuing at the time of each such
sale (both before and after giving effect to such Asset Sale), and (B) the
aggregate amount received in Equity Interests during the term of this
Agreement shall not exceed $5,000,000 and (ii) other Asset Sales approved by
the Majority Lenders in their sole discretion;
	 
	 	(i)	 	the sale or disposition of Permitted Investments and other cash
equivalents in the ordinary course of business;
	 
	 	(j)	 	dispositions of owned or leased vehicles in the ordinary course
of business;
	 
	 	(k)	 	licenses and similar arrangements for the use of property of
any Credit Party in the ordinary course of business;

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	 	(l)	 	notes or accounts receivable in order to resolve disputes that
occur in the ordinary course of business, and discounts thereof;
	 
	 	(m)	 	condemned property to the respective governmental authority or
agency that has condemned the same (whether by deed in lieu of condemnation or
otherwise), and transfers of properties that have been subject to a casualty of
the respective insurer of such property or its designee as party of any
insurance settlement; and
	 
	 	(n)	 	the sale or disposition of the Direct Selling Services
division.

The Lenders hereby consent and agree to the release by Agent of any and all Liens on the property
sold or otherwise disposed of in compliance with this Section 8.4.

     8.5 Restricted Payments. Declare or make any distributions, dividend, payment or other distribution of assets,
properties, cash, rights, obligations or securities (collectively, “Distributions”) on account of
any of its Equity Interests, as applicable, or purchase, redeem or otherwise acquire for value any
of its Equity Interests, as applicable, or any warrants, rights or options to acquire any of its
Equity Interests, now or hereafter outstanding (collectively, “Purchases”), except that:

	 	(a)	 	each Credit Parties may pay cash Distributions to the Borrower
or any Guarantor;
	 
	 	(b)	 	each Credit Party may declare and make Distributions payable in
the Equity Interests of such Credit Party, provided that the issuance of such
Equity Interests does not otherwise violate the terms of this Agreement and no
Default or Event of Default has occurred and is continuing at the time of
making such Distribution or would result from the making of such Distribution;
	 
	 	(c)	 	Borrower may (i) repurchase Equity Interests of former or
current employees, officers and directors pursuant to stock purchase agreements
or stock purchase plans so long as no Default or Event of Default exists prior
to such repurchase or would exist after giving effect to such repurchase, and
(ii) repurchase Equity Interests of former or current employees, officers and
directors pursuant to stock purchase agreements or stock purchase plans by the
cancellation of debt owed by such former employee to Borrower regardless of
whether a Default or Event of Default exists;
	 
	 	(d)	 	Borrower may pay dividends to its shareholders so long as at
the time paid and after giving effect thereto no Default or Event of Default
shall exist;
	 
	 	(e)	 	Borrower may convert any of its convertible securities into
other securities pursuant to the terms of such convertible securities;

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	 	(f)	 	Borrower may distribute securities to employees, officers or
directors upon exercise of their options;
	 
	 	(g)	 	Borrower may make any redemption of Equity Interests with the
proceeds received from a substantially concurrent issue of Equity Interests;
	 
	 	(h)	 	Borrower any distribute and redeem rights under any stockholder
rights plan;
	 
	 	(i)	 	any Credit Party may make capital contributions if such capital
contribution is otherwise permitted as an Investment pursuant to Section 8.7;
and
	 
	 	(j)	 	Borrower may issue Equity Interests in connection with a
Permitted Acquisition.

     8.6 [Intentionally Deleted].

     8.7 Limitation on Investments, Loans and Advances. Make or allow to remain outstanding any Investment (whether such investment shall be of the
character of investment in shares of stock, evidences of indebtedness or other securities or
otherwise) in, or any loans or advances to, any Person other than:

	 	(a)	 	Permitted Investments;
	 
	 	(b)	 	Investments existing on the Effective Date and listed on
Schedule 8.7 to the Disclosure Letter;
	 
	 	(c)	 	sales on open account in the ordinary course of business;
	 
	 	(d)	 	intercompany loans or intercompany Investments made by any
Credit Party to or in any Guarantor or Borrower; provided that, in each case,
no Default or Event of Default shall have occurred and be continuing at the
time of making such intercompany loan or intercompany Investment or result from
such intercompany loan or intercompany Investment being made and that any
intercompany loans shall, if requested by Agent, be evidenced by and funded
under an Intercompany Note pledged to the Agent under the appropriate
Collateral Documents;
	 
	 	(e)	 	Intercompany loans or intercompany Investments to a Credit
Party that is that is not a Guarantor or Borrower; provided that, the aggregate
amount from time to time outstanding in respect thereof shall not exceed Five
Million Dollars ($5,000,000) in any Fiscal Year;
	 
	 	(f)	 	Investments in respect of Hedging Transactions provided that
such transaction is entered into for risk management purposes and not for
speculative purposes;

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	 	(g)	 	Investments not to exceed Two Million Five Hundred Thousand
Dollars ($2,500,000) in the aggregate consisting of (i) travel advances and
employee relocation loans and other employee loans and advances in the ordinary
course of business, and (ii) loans to employees, officers or directors relating
to the purchase of Equity Interests of Borrower or its Subsidiaries pursuant to
employee stock purchase plan agreements approved by Borrower’s Board of
Directors;
	 
	 	(h)	 	joint ventures or strategic alliances in the ordinary course of
Borrower’s business consisting of the license of technology, the development of
technology or the providing of technical support, provided that any cash
Investments by Borrower do not exceed $2,500,000 in any Fiscal Year;
	 
	 	(i)	 	Permitted Acquisitions and Investments in any Person acquired
pursuant to a Permitted Acquisition;
	 
	 	(j)	 	Investments constituting deposits made in connection with the
purchase of goods or services in the ordinary course of business or in
satisfaction of requirements imposed by governmental authorities in an
aggregate amount for such deposits not to exceed $2,500,000 at any one time
outstanding;
	 
	 	(k)	 	Investments accepted in connection with permitted transfers
under Section 8.4;
	 
	 	(l)	 	Investments consisting of notes receivable of, or prepaid
royalties and other credit extensions, to customers and suppliers who are not
Affiliates, in the ordinary course of business; provided that this subparagraph
shall not apply to Investments of Borrower in any Subsidiary;
	 
	 	(m)	 	Investments (including debt obligations) received in connection
with the bankruptcy or reorganization of customers or suppliers and in
settlement of delinquent obligations of, and other disputes with, customers or
suppliers arising in the ordinary course of business;
	 
	 	(n)	 	Investments made prior to the consummation of any Permitted
Acquisition consisting of reasonable earnest money deposits, working fees or
other similar prepaid consideration or similar amounts that would be applied
toward consideration upon consummation of such Permitted Acquisition (in each
case whether or not refundable under any circumstances);
	 
	 	(o)	 	Investments by any Foreign Subsidiary in any other Foreign
Subsidiary or Borrower or parent, provided that 65% of the ownership interest
in each such Foreign Subsidiary has been pledged to Agent; and
	 
	 	(p)	 	other Investments not described above provided that both at the
time of and immediately after giving effect to any such Investment (i) no
Default or Event of Default shall have occurred and be continuing or shall
result 

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	 	 	 	from the making of such Investment and (ii) the aggregate amount of all
such Investments shall not exceed $2,500,000 in any Fiscal Year.

In valuing any Investments for the purpose of applying the limitations set forth in this Section
8.7 (except as otherwise expressly provided herein), such Investment shall be taken at the original
cost thereof, without allowance for any subsequent write-offs or appreciation or depreciation, but
less any amount repaid or recovered on account of capital or principal.

     8.8 Transactions with Affiliates. Except as set forth in Schedule 8.8 to the Disclosure Letter, enter into any transaction,
including, without limitation, any purchase, sale, lease or exchange of property or the rendering
of any service, with any Affiliates of the Credit Parties except: (a) transactions with Affiliates
that are the Credit Parties; (b) transactions otherwise permitted under this Agreement; and (c)
transactions in the ordinary course of a Credit Party’s business and upon fair and reasonable terms
no less favorable to such Credit Party than it would obtain in a comparable arms length transaction
from unrelated third parties. Section 8.8 shall not prohibit, to the extent otherwise permitted
under this Agreement and so long as no Event of Default has occurred and is continuing or would
occur as a result, (i) any issuance of securities, or other payments, awards or grants in cash,
securities or otherwise pursuant to, or the funding of, employment arrangements, stock options and
other benefit plans, (ii) loans or advances to employees, officers or other directors of the Credit
Parties, (iii) the payment of fees and indemnities to directors, officers, employees and
consultants of the Credit Parties in the ordinary course of business, (iv) any agreements with
employees, officers and directors entered into by the Credit Parties in the ordinary course of
business, (v) sales of equity interests to Affiliates, (vii) reasonable and customary fees paid to
directors of the Credit Parties, (viii) raising of new equity for the Credit Parties with respect
to the pricing of such equity, and (ix) any payments or other transactions pursuant to any tax
sharing agreement.

     8.9 Sale-Leaseback Transactions. Enter into any arrangement with any Person providing for the leasing by a Credit Party of
real or personal property which has been or is to be sold or transferred by such Credit Party to
such Person or to any other Person to whom funds have been or are to be advanced by such Person on
the security of such property or rental obligations of such Credit Party, as the case may be.

     8.10 Limitations on Other Restrictions. Except for this Agreement or any other Loan Document, enter into any agreement, document or
instrument which would (i) restrict the ability of any Subsidiary of the Borrower to pay or make
dividends or distributions in cash or kind to Borrower or any Guarantor, to make loans, advances or
other payments of whatever nature to any Credit Party, or to make transfers or distributions of all
or any part of its assets to any Credit Party; or (ii) restrict or prevent any Credit Party from
granting Agent on behalf of Lenders Liens upon, security interests in and pledges of their
respective assets, except to the extent such restrictions exist in documents creating Liens
permitted by Section 9.2(b) hereunder except: (a) negative pledges incurred or provided in favor of
any holder of Indebtedness permitted under Section 8.1(c) solely to the extent any such negative
pledge relates to the property financed by or the subject of such Indebtedness; (b) restrictions
and conditions imposed by any governmental authority; (c) restrictions and conditions existing on
the date hereof identified on Schedule 8.10 to the Disclosure Letter and any extension or renewal
of, or any amendment or modification of, any such restriction or condition; (d) customary
restrictions and conditions contained in

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agreements relating to the sale of a Subsidiary pending
such sale, provided that (x) such restrictions and conditions apply only to the Subsidiary that is
to be sold and (y) such sale is permitted hereunder; (e) customary provisions in leases, licenses,
subleases, sublicenses and other contracts restricting the assignment thereof; (f) customary
restrictions imposed on the transfer of copyrighted or patented materials or other intellectual
property and customary provisions in agreements that restrict the assignment of such agreements or
any rights thereunder; (g) any restrictions imposed by contracts or leases entered into in the
ordinary course of business by the Borrower or any of its Subsidiaries with such Person’s
customers, lessors or suppliers; (h) restrictions or conditions imposed by any agreement relating
to Debt and Liens permitted by this Agreement if such restrictions or conditions apply only to the
property or assets securing such Indebtedness; and (i) any restrictions imposed by contracts or
leases entered into in the ordinary course of business by any Person acquired by the Borrower or
any of its Subsidiaries with such Person’s customers, lessors or suppliers and not in connection
with or in contemplation of the acquisition such Person by the Borrower or such Subsidiary, which
restrictions are not applicable to any Person, or the property or assets of any Person, other than
the property or assets of the Person so acquired.

     8.11 Prepayment of Debt. Make any prepayment (whether optional or mandatory), repurchase, redemption, defeasance or
any other payment in respect of any Subordinated Debt other than (i) as permitted to be refinanced
under Section 8.1, (ii) regularly scheduled payments of principal and interest on such Subordinated
Debt and (iii) the prepayment, redemption, purchase or repayment of any
such Subordinated Debt from the proceeds of any issuance of any Equity Interests issued on
terms acceptable to Agent in the exercise of its reasonable credit judgment.

     8.12 Amendment of Subordinated Debt Documents. Amend, modify or otherwise alter (or suffer to be amended, modified or altered) the
Subordinated Debt Documents except as permitted in the applicable Subordinated Debt Documents and
Subordination Agreements, or if no such restrictions exist in the applicable Subordinated Debt
Documents or Subordination Agreements, except to the extent any such amendments would not
reasonably be expected to have a material adverse effect on the Interest of the Lenders and except
with the prior written consent of the Agent.

     8.13 Modification of Certain Agreements. Make, permit or consent to any amendment or other modification to the constitutional
documents of any Obligor except to the extent that any such amendment or modification (i) does not
violate the terms and conditions of this Agreement or any of the other Loan Documents, (ii) does
not materially adversely affect the interest of the Lenders as creditors and/or secured parties
under any Loan Document and (iii) could not reasonably be expected to have a Material Adverse
Effect and except for any reincorporation of any Obligor in another state of the United States
after fifteen (15) days prior written notice to Agent.

     8.14 Management Fees. Pay or otherwise advance, directly or indirectly, any management, consulting or other fees
to an Affiliate.

     8.15 Fiscal Year. Permit the Fiscal Year of any Credit Party to end on a day other than June 30.

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9. DEFAULTS.

     9.1 Events of Default. The occurrence of any of the following events shall constitute an Event of Default
hereunder:

	 	(a)	 	non-payment when due of (i) the principal or interest on the
Indebtedness under the Revolving Credit (including the Swing Line) or the Term
Loan or (ii) any Reimbursement Obligation;
	 
	 	(b)	 	non-payment of any Fees or any other amounts due and owing by
Borrower under this Agreement or by any Credit Party under any of the other
Loan Documents to which it is a party, other than as set forth in subsection
(a) above, within three (3) Business Days after the same is due and payable;
	 
	 	(c)	 	default in the observance or performance of any of the
conditions, covenants or agreements of Borrower set forth in Article 7 or
Article 8 which continues for ten (10) Business Days;
	 
	 	(d)	 	default in the observance or performance of any of the other
conditions, covenants or agreements set forth in this Agreement or any of the
other Loan Documents by any Credit Party and continuance thereof for a period
of thirty (30) days after Borrower receives notice thereof or any officer of
Borrower becomes aware thereof; provided, however, that if the default cannot
by its nature be cured within the thirty (30) day period or cannot after
diligent attempts by Borrower be cured within such thirty (30) day period, and
such default is likely to be cured within a reasonable time, then Borrower
shall have an additional reasonable period (which shall not in any case exceed
forty five (45) days) to attempt to cure such default, and within such
reasonable time period the failure to have cured such default shall not be
deemed an Event of Default but no Advances or other credit extensions will be
made;
	 
	 	(e)	 	any representation or warranty made by any Credit Party herein
or in any certificate, instrument or other document submitted pursuant hereto
proves untrue or misleading in any material adverse respect when made;
	 
	 	(f)	 	(i) default by any Credit Party in the payment of any
indebtedness for borrowed money, whether under a direct obligation or guaranty
(other than Indebtedness hereunder) of any Credit Party in excess of Two
Million Five Hundred Thousand Dollars ($2,500,000) (or the equivalent thereof
in any currency other than Dollars) individually or in the aggregate when due
and continuance thereof beyond any applicable period of cure or grace and or
(ii) failure to comply with the terms of any other obligation of any Credit
Party with respect to any indebtedness for borrowed money (other than
Indebtedness hereunder) in excess of Two Million Five Hundred Thousand Dollars
($2,500,000) (or the equivalent thereof in any currency

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	 	 	 	 other than Dollars)
individually or in the aggregate, which continues beyond any applicable period
of cure or grace and which would permit the holder or holders thereto to
accelerate such other indebtedness for borrowed money, or require the
prepayment, repurchase, redemption or defeasance of such indebtedness;

	 	(g)	 	the rendering of any judgment(s) (not covered by adequate
insurance from a solvent carrier which is defending such action without
reservation of rights) for the payment of money in excess of the sum of Two
Million Five Hundred Thousand Dollars ($2,500,000) (or the equivalent thereof
in any currency other than Dollars) (or if covered by such insurance, in excess
of $5,000,000) individually or in the aggregate against any Credit Party, and
such judgments shall remain unpaid, unvacated, unbonded or unstayed by appeal
or otherwise for a period of thirty (30) consecutive days from the date of its
entry;
	 
	 	(h)	 	the occurrence of (i) a “reportable event”, as defined in
ERISA, which is determined by the PBGC to constitute grounds for a distress
termination of any Pension Plan subject to Title IV of ERISA maintained or
contributed to by or on behalf of any Credit Party for the benefit of any of
its employees or for the appointment by the appropriate United States District
Court of a trustee to administer such Pension Plan and such reportable event is
not corrected and such determination is not revoked within sixty (60) days
after notice thereof has been given to the plan administrator of such Pension
Plan (without limiting any of Agent’s or any Lender’s other rights or remedies
hereunder), or (ii) the termination or the institution of proceedings by the
PBGC to terminate any such Pension Plan, or (iii) the appointment of a trustee
by the appropriate United States District Court to administer any such Pension
Plan, or (iv) the reorganization (within the meaning of Section 4241 of ERISA)
or insolvency (within the meaning of Section 4245 of ERISA) of any
Multiemployer Plan, or receipt of notice from any Multiemployer Plan that it is
in reorganization or insolvency, or the complete or partial withdrawal by any
Credit Party from any Multiemployer Plan, which in the case of any of the
foregoing, could reasonably be expected to have a Material Adverse Effect;
	 
	 	(i)	 	except as expressly permitted under this Agreement, any Credit
Party (other than a dissolution of a Subsidiary of Borrower which is not a
Guarantor or Borrower) shall be dissolved or liquidated (or any judgment, order
or decree therefor shall be entered) except as otherwise permitted herein; or
if a creditors’ committee shall have been appointed for the business of any Credit Party (other than a dissolution of any Subsidiary which is not a
Material Subsidiary); or if any Credit Party (other than a dissolution of any
Subsidiary which is not a Material Subsidiary) shall have made a general
assignment for the benefit of creditors or shall have been adjudicated bankrupt
and if not an adjudication based on a filing by a 

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	 	 	 	Credit Party (other than a
dissolution of any Subsidiary which is not a Material Subsidiary), it shall not
have been dismissed within sixty (60) days, or shall have filed a voluntary
petition in bankruptcy or for reorganization or to effect a plan or arrangement
with creditors or shall fail to pay its debts generally as such debts become
due in the ordinary course of business (except as contested in good faith and
for which adequate reserves are made in such party’s financial statements); or
shall file an answer to a creditor’s petition or other petition filed against
it, admitting the material allegations thereof for an adjudication in
bankruptcy or for reorganization; or shall have applied for or permitted the
appointment of a receiver or trustee or custodian for any of its property or
assets; or such receiver, trustee or custodian shall have been appointed for
any of its property or assets (otherwise than upon application or consent of a
Credit Party ) and shall not have been removed within sixty (60) days; or if an
order shall be entered approving any petition for reorganization of any Credit
Party (other than a dissolution of any Subsidiary which is not a
Material Subsidiary) and shall not have been reversed or dismissed within
sixty (60) days;

	 	(j)	 	the validity, binding effect or enforceability of any
subordination provisions relating to any Subordinated Debt shall be contested
by any Person party thereto (other than any Lender, Agent, Issuing Lender or
Swing Line Lender), or such subordination provisions shall fail to be
enforceable by Agent and the Lenders in accordance with the terms thereof, or
the Indebtedness shall for any reason not have the priority contemplated by
this Agreement or such subordination provisions, and such failure or lack of
priority shall continue for more than five (5) days after the Borrower receives
notice or knowledge thereof; or
	 
	 	(k)	 	any Loan Document shall at any time for any reason cease to be
in full force and effect (other than in accordance with the terms thereof or
the terms of any other Loan Document), as applicable, or the validity, binding
effect or enforceability thereof shall be contested by any party thereto (other
than any Lender, Agent, Issuing Lender or Swing Line Lender), or any Person
shall deny that it has any or further liability or obligation under any Loan
Document, or any such Loan Document shall be terminated (other than in
accordance with the terms thereof or the terms of any other Loan Document),
invalidated, revoked or set aside or in any way cease to give or provide to the
Lenders and the Agent the benefits purported to be created thereby, or any Loan
Document purporting to grant a Lien to secure any Indebtedness shall, at any
time after the delivery of such Loan Document, fail to create a valid and
enforceable Lien on any Collateral purported to be covered thereby or such Lien
shall fail to cease to be a perfected Lien with the priority required in the
relevant Loan Document; or

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	 	(l)	 	if there shall occur any circumstance or circumstances that
could reasonably be expected to have a material adverse effect on Borrower’s or
any Guarantor’s interest in, or the value, perfection or priority of Agent’s
Lien in a material portion of the Collateral; or
	 
	 	(m)	 	if there shall occur a Change of Control.

     9.2 Exercise of Remedies. If an Event of Default has occurred and is continuing hereunder: (a) the Agent may, and
shall, upon being directed to do so by the Majority Revolving Credit Lenders, declare the Revolving
Credit Aggregate Commitment terminated; (b) the Agent may, and shall, upon being directed to do so
by the Majority Lenders, declare the entire unpaid principal Indebtedness, including the Notes,
immediately due and payable, without presentment, notice or demand, all of which are hereby
expressly waived by the Borrower; (c) upon the occurrence of any Event of Default specified in
Section 9.1(i) and notwithstanding the lack of any declaration by Agent under preceding clauses (a)
or (b), the entire unpaid principal Indebtedness shall become
automatically and immediately due and payable, and the Revolving Credit Aggregate Commitment
shall be automatically and immediately terminated; (d) the Agent shall, upon being directed to do
so by the Majority Revolving Credit Lenders, demand immediate delivery of cash collateral, and each
Borrower agrees to deliver such cash collateral upon demand, in an amount equal to 105% of the
maximum amount that may be available to be drawn at any time prior to the stated expiry of all
outstanding Letters of Credit, for deposit into an account controlled by the Agent; (e) the Agent
may, and shall, upon being directed to do so by the Majority Lenders, notify Borrower or any Credit
Party that interest shall be payable on demand on all Indebtedness (other than Revolving Credit
Advances, Swing Line Advances and Term Loan Advances with respect to which Sections 2.6 and 4.6
hereof shall govern) owing from time to time to the Agent or any Lender, at a per annum rate equal
to the then applicable Base Rate plus two percent (2%); and (f) the Agent may, and shall, upon
being directed to do so by the Majority Lenders or the Lenders, as applicable (subject to the terms
hereof), exercise any remedy permitted by this Agreement, the other Loan Documents or law.

     9.3 Rights Cumulative. No delay or failure of Agent and/or Lenders in exercising any right, power or privilege
hereunder shall affect such right, power or privilege, nor shall any single or partial exercise
thereof preclude any further exercise thereof, or the exercise of any other power, right or
privilege. The rights of Agent and Lenders under this Agreement are cumulative and not exclusive of
any right or remedies which Lenders would otherwise have.

     9.4 Waiver by Borrower of Certain Laws. To the extent permitted by applicable law, each Borrower hereby agrees to waive, and does
hereby absolutely and irrevocably waive and relinquish the benefit and advantage of any valuation,
stay, appraisement, extension or redemption laws now existing or which may hereafter exist, which,
but for this provision, might be applicable to any sale made under the judgment, order or decree of
any court, on any claim for interest on the Notes, or any security interest or mortgage
contemplated by or granted under or in connection with this Agreement. These waivers have been
voluntarily given, with full knowledge of the consequences thereof.

     9.5 Waiver of Defaults. No Event of Default shall be waived by the Lenders except in a writing signed by an officer
of the Agent in accordance with Section 13.10 hereof. No single

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or partial exercise of any right,
power or privilege hereunder, nor any delay in the exercise thereof, shall preclude other or
further exercise of their rights by Agent or the Lenders. No waiver of any Event of Default shall
extend to any other or further Event of Default. No forbearance on the part of the Agent or the
Lenders in enforcing any of their rights shall constitute a waiver of any of their rights. The
Borrower expressly agrees that this Section may not be waived or modified by the Lenders or Agent
by course of performance, estoppel or otherwise.

     9.6 Set Off. Upon the occurrence and during the continuance of any Event of Default, each Lender may at
any time and from time to time, without notice to Borrower but subject to the provisions
of Section 10.3 hereof (any requirement for such notice being expressly waived by Borrower),
setoff and apply against any and all of the obligations of Borrower now or hereafter existing under
this Agreement, whether owing to such Lender, any Affiliate of such Lender or any other Lender or
the Agent, any and all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by such Lender to or for the credit or the
account of Borrower and any property of Borrower from time to time in possession of such Lender,
irrespective of whether or not such deposits held or indebtedness owing by such Lender may be
contingent and unmatured and regardless of whether any Collateral then held by Agent or any Lender
is adequate to cover the Indebtedness. Promptly following any such setoff, such Lender shall give
written notice to Agent and Borrower of the occurrence thereof. Borrower hereby grants to the
Lenders and the Agent a lien on and security interest in all such deposits, indebtedness and
property as collateral security for the payment and performance of all of the obligations of
Borrower under this Agreement. The rights of each Lender under this Section 9.6 are in addition to
the other rights and remedies (including, without limitation, other rights of setoff) which such
Lender may have.

10. PAYMENTS, RECOVERIES AND COLLECTIONS.

     10.1 Payment Procedure.

     (a) All payments to be made by Borrower shall be made without condition or deduction for any
counterclaim, defense, recoupment or setoff. Except as otherwise provided herein, all payments
made by the Borrower of principal, interest or fees hereunder shall be made without setoff or
counterclaim on the date specified for payment under this Agreement and must be received by Agent
not later than 12:00 p.m. (Pacific time) on the date such payment is required or intended to be
made in Dollars in immediately available funds to Agent at Agent’s office located at 500 Woodward
Avenue, MC3289, Detroit, Michigan 48226, for the ratable benefit of the Revolving Credit Lenders in
the case of payments in respect of the Revolving Credit and any Letter of Credit Obligations, for
the ratable benefit of the Term Loan Lenders. Any payment received by the Agent after 12:00 p.m.
(Pacific time) shall be deemed received on the next succeeding Business Day and any applicable
interest or fee shall continue to accrue. Upon receipt of each such payment, the Agent shall make
prompt payment to each applicable Lender, or, in respect of Eurodollar-based Advances, such
Lender’s Eurodollar Lending Office, in like funds and currencies, of all amounts received by it for
the account of such Lender.

     (b) Unless the Agent shall have been notified in writing by Borrower at least two (2) Business
Days prior to the date on which any payment to be made by Borrower is due that

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Borrower does not
intend to remit such payment, the Agent may, in its sole discretion and without obligation to do
so, assume that Borrower has remitted such payment when so due and the Agent may, in reliance upon
such assumption, make available to each Revolving Credit Lender or Term Loan Lender, as the case
may be, on such payment date an amount equal to such Lender’s share of such assumed payment. If
Borrower has not in fact remitted such payment to the Agent, each Lender shall forthwith on demand
repay to the Agent the amount of such assumed payment made available or transferred to such Lender,
together with the interest thereon, in respect of each day from and including the date such amount
was made available by
the Agent to such Lender to the date such amount is repaid to the Agent at a rate per annum
equal to the Federal Funds Effective Rate for the first two (2) Business Days that such amount
remains unpaid, and thereafter at a rate of interest then applicable to such Revolving Credit
Advances.

     (c) Subject to the definition of “Interest Period” in Section 1 of this Agreement, whenever
any payment to be made hereunder shall otherwise be due on a day which is not a Business Day, such
payment shall be made on the next succeeding Business Day and such extension of time shall be
included in computing interest, if any, in connection with such payment.

     (d) All payments to be made by Borrower under this Agreement or any of the Notes (including
without limitation payments under the Swing Line and/or Swing Line Note) shall be made without
setoff or counterclaim, as aforesaid, and, subject to full compliance by each Lender (and each
assignee and participant pursuant to Section 13.8) with Section 13.13, without deduction for or on
account of any present or future withholding or other taxes of any nature imposed by any
governmental authority or of any political subdivision thereof or any federation or organization of
which such governmental authority may at the time of payment be a member (other than any taxes on
the overall income, net income, net profits or net receipts or similar taxes (or any franchise
taxes imposed in lieu of such taxes) on the Agent or any Lender (or any branch maintained by Agent
or a Lender) as a result of a present or former connection between the Agent or such Lender and the
governmental authority, political subdivision, federation or organization imposing such taxes),
unless Borrower is compelled by law to make payment subject to such tax. In such event, Borrower
shall:

	 	(i)	 	pay to the Agent for Agent’s own account
and/or, as the case may be, for the account of the Lenders such
additional amounts as may be necessary to ensure that the Agent and/or
such Lender or Lenders (including the Swing Line Lender) receive a net
amount equal to the full amount which would have been receivable had
payment not been made subject to such tax; and
	 
	 	(ii)	 	remit such tax to the relevant taxing
authorities according to applicable law, and send to the Agent or the
applicable Lender or Lenders (including the Swing Line Lender), as the
case may be, such certificates or certified copy receipts as the Agent
or such Lender or Lenders shall reasonably require as proof of the
payment by Borrower of any such taxes payable by Borrower.

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As used herein, the terms “tax”, “taxes” and “taxation” include all taxes, levies, imposts, duties,
fees, deductions and withholdings or similar charges together with interest (and any taxes payable
upon the amounts paid or payable pursuant to this Section 10.1) thereon. Borrower shall be
reimbursed by the applicable Lender for any payment made by Borrower under this Section 10.1 if the
applicable Lender is not in compliance with its obligations under Section 13.13 at the time of the
Borrower’s payment.

     10.2 Application of Proceeds of Collateral. Notwithstanding anything to the contrary in this Agreement, in the case of any Event of
Default under Section 9.1(i), immediately following the occurrence thereof, and in the case of any
other Event of Default: (a) upon the termination of the Revolving Credit Aggregate Commitment, (b)
the acceleration of any Indebtedness arising under this Agreement, (c) at the Agent’s option, or
(d) upon the request of the Majority Lenders after the commencement of any remedies hereunder, the
Agent shall apply the proceeds of any Collateral, together with any offsets, voluntary payments by
any Credit Party or others and any other sums received or collected in respect of the Indebtedness
first, to pay all incurred and unpaid fees and expenses of the Agent under the Loan Documents and
any protective advances made by Agent with respect to the Collateral under or pursuant to the terms
of any Loan Document, next, to pay any fees and expenses owed to the Issuing Lender hereunder,
next, to the Indebtedness under the Revolving Credit (including the Swing Line and any
Reimbursement Obligations), Indebtedness under the Term Loan and under the Lender Products, on a
pro rata basis, next to any obligations owing by any Credit Party under any Hedging Agreements on a
pro rata basis, next, to any other Indebtedness on a pro rata basis, and then, if there is any
excess, to the Credit Parties, as the case may be.

     10.3 Pro-rata Recovery. If any Lender shall obtain any payment or other recovery (whether voluntary, involuntary,
by application of setoff or otherwise) on account of principal of, or interest on, any of the
Advances made by it, or the participations in Letter of Credit Obligations or Swing Line Advances
held by it in excess of its pro rata share of payments then or thereafter obtained by all Lenders
upon principal of and interest on all such Indebtedness, such Lender shall purchase from the other
Lenders such participations in the Revolving Credit, the Term Loan and/or the Letter of Credit
Obligation held by them as shall be necessary to cause such purchasing Lender to share the excess
payment or other recovery ratably in accordance with the applicable Percentages of the Lenders;
provided, however, that if all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing holder, the purchase shall be rescinded and the purchase price
restored to the extent of such recovery, but without interest.

     10.4 Treatment of a Defaulting Lender.

     (a) The obligation of any Lender to make any Advance hereunder shall not be affected by the
failure of any other Lender to make any Advance under this Agreement, and no Lender shall have any
liability to Borrower or any of their Subsidiaries, the Agent, any other Lender, or any other
Person for another Lender’s failure to make any loan or Advance hereunder.

     (b) If any Lender shall become a Defaulting Lender, then such Defaulting Lender’s right to
participate in the administration of the loans, this Agreement and the other Loan Documents,
including without limitation any right to vote in respect of any amendment, consent

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or waiver of
the terms of this Agreement or such other Loan Documents, or to direct or approve any action or
inaction by the Agent shall be suspended for the entire period that such Lender remains a
Defaulting Lender and the stated commitment amounts and outstanding Advances of such Defaulting
Lender shall not be included in determining whether all Lenders or the Majority Lender (or any
class thereof), as the case may be, have taken or may take any action hereunder (including, without
limitation, any action to approve any consent, waiver or amendment to this
Agreement or the other Loan Documents); provided, however, that the foregoing shall not permit
(i) an increase in such Defaulting Lender’s stated commitment amounts, (ii) the waiver, forgiveness
or reduction of the principal amount of any Indebtedness outstanding to such Defaulting Lender
(unless all other Lenders affected thereby are treated similarly), (iii) the extension of the final
maturity date(s) of such Defaulting Lenders’ portion of any of the loans or other extensions of
credit or other obligations of Borrower owing to such Defaulting Lender, in each case without such
Defaulting Lender’s consent, (iv) any other modification which under Section 13.10 requires the
consent of all Lenders or the Lender(s) affected thereby which affects the Defaulting Lender
differently than the Non-Defaulting Lenders affected by such modification, other than a change to
or waiver of the requirements of Section 10.3 which results in a reduction of the Defaulting
Lender’s commitment or its share of the Indebtedness on a non pro-rata basis.

     (c) To the extent and for so long as a Lender remains a Defaulting Lender and notwithstanding
the provisions of Section 10.3 hereof, the Agent shall be entitled, without limitation, (i) to
withhold or setoff and to apply in satisfaction of those obligations for payment (and any related
interest) in respect of which the Defaulting Lender shall be delinquent or otherwise in default to
Agent or any Lender (or to hold as cash collateral for such delinquent obligations or any future
defaults) the amounts otherwise payable to such Defaulting Lender under this Agreement or any other
Loan Document, (ii) if the amount of Advances made by such Defaulting Lender is less than its
Percentage requires, apply payments of principal made by the Borrower amongst the Non-Defaulting
Lenders on a pro rata basis until all outstanding Advances are held by all Lenders according to
their respective Percentages and (iii) to bring an action or other proceeding, in law or equity,
against such Defaulting Lender in a court of competent jurisdiction to recover the delinquent
amounts, and any related interest. Performance by Borrower of their respective obligations under
this Agreement and the other Loan Documents shall not be excused or otherwise modified as a result
of the operation of this Section, except to the extent expressly set forth herein and in any event
the Borrower shall not be required to pay any Revolving Credit Facility Fee under Section 2.9 of
this Agreement in respect of such Defaulting Lender’s Unfunded Portion of the Revolving Credit for
the period during which such Lender is a Defaulting Lender. Furthermore, the rights and remedies
of Borrower, the Agent, the Issuing Lender, the Swing Line Lender and the other Lenders against a
Defaulting Lender under this section shall be in addition to any other rights and remedies such
parties may have against the Defaulting Lender under this Agreement or any of the other Loan
Documents, applicable law or otherwise, and the Borrower waive no rights or remedies against any
Defaulting Lender.

11. CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS.

     11.1 Reimbursement of Prepayment Costs. If (i) Borrower makes any payment of principal with respect to any Eurodollar-based Advance
or Quoted Rate Advance on any day other than the last day of the Interest Period applicable thereto
(whether voluntarily, pursuant to

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any mandatory provisions hereof, by acceleration, or otherwise);
(ii) Borrower converts or refunds (or attempts to convert or refund) any such Advance on any day
other than the last day of the Interest Period applicable thereto (except as described in Section
2.5(e)); (iii) Borrower fails to borrow, refund or convert any Eurodollar-based Advance or Quoted
Rate Advance after notice has been given by Borrower to
Agent in accordance with the terms hereof requesting such Advance; or (iv) or if the Borrower
fails to make any payment of principal in respect of a Eurodollar-based Advance or Quoted Rate
Advance when due (other than at the end of the applicable Interest Period), the Borrower shall
reimburse Agent for itself and/or on behalf of any Lender, as the case may be, within ten (10)
Business Days of written demand therefor for any resulting loss, cost or expense incurred
(excluding the loss of any Applicable Margin) by Agent and Lenders, as the case may be, as a result
thereof, including, without limitation, any such loss, cost or expense incurred in obtaining,
liquidating, employing or redeploying deposits from third parties, whether or not Agent and
Lenders, as the case may be, shall have funded or committed to fund such Advance. The amount
payable hereunder by Borrower to Agent for itself and/or on behalf of any Lender, as the case may
be, shall be deemed to equal an amount equal to the excess, if any, of (a) the amount of interest
which would have accrued on the amount so prepaid, or not so borrowed, refunded or converted, for
the period from the date of such prepayment or of such failure to borrow, refund or convert,
through the last day of the relevant Interest Period, at the applicable rate of interest for said
Advance(s) provided under this Agreement, over (b) the amount of interest (as reasonably determined
by Agent and Lenders, as the case may be) which would have accrued to Agent and Lenders, as the
case may be, on such amount by placing such amount on deposit for a comparable period with leading
banks in the interbank eurocurrency market. Calculation of any amounts payable to any Lender under
this paragraph shall be made as though such Lender shall have actually funded or committed to fund
the relevant Advance through the purchase of an underlying deposit in an amount equal to the amount
of such Advance and having a maturity comparable to the relevant Interest Period; provided,
however, that any Lender may fund any Eurodollar-based Advance or Quoted Rate Advance, as the case
may be, in any manner it deems fit and the foregoing assumptions shall be utilized only for the
purpose of the calculation of amounts payable under this paragraph. Upon the written request of
Borrower, Agent and Lenders shall deliver to Borrower a certificate setting forth the basis for
determining such losses, costs and expenses, which certificate shall be conclusively presumed
correct, absent manifest error.

     11.2 Eurodollar Lending Office. For any Eurodollar Advance, if Agent or a Lender, as applicable, shall designate a
Eurodollar Lending Office which maintains books separate from those of the rest of Agent or such
Lender, Agent or such Lender, as the case may be, shall have the option of maintaining and carrying
the relevant Advance on the books of such Eurodollar Lending Office.

     11.3 Circumstances Affecting LIBOR Rate Availability. If Agent or the Majority Lenders (after consultation with Agent) shall determine in good
faith that, by reason of circumstances affecting the foreign exchange and interbank markets
generally, deposits in eurodollars in the applicable amounts are not being offered to the Agent or
such Lenders at the applicable LIBOR Rate, then Agent shall forthwith give notice thereof to
Borrower. Thereafter, until Agent notifies Borrower that such circumstances no longer exist, (i)
the obligation of Lenders to make Advances which bear
interest at or by reference to the LIBOR
Rate, and the right of Borrower to convert an Advance to or refund an Advance as an Advance which
bear

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 interest at or by reference to the LIBOR Rate shall be suspended, (ii) effective upon the last
day of each Eurodollar-Interest Period related to any existing Eurodollar-based Advance, each such
Eurodollar-based Advance shall automatically be converted into an Advance which
bears interest at or by reference to the Base Rate (without regard to the satisfaction of any
conditions to conversion contained elsewhere herein), and (iii) effective immediately following
such notice, each Advance which bears interest at or by reference to the Daily Adjusting LIBOR Rate
shall automatically be converted into an Advance which bears interest at or by reference to the
Base Rate (without regard to the satisfaction of any conditions to conversion contained elsewhere
herein)

     11.4 Laws Affecting LIBOR Rate Availability. If, after the date of this Agreement, the adoption or introduction of, or any change in,
any applicable law, rule or regulation or in the interpretation or administration thereof by any
governmental authority charged with the interpretation or administration thereof, or compliance by
any of the Lenders (or any of their respective Eurodollar Lending Offices) with any request or
directive (whether or not having the force of law) of any such authority, shall make it unlawful or
impossible for any of the Lenders (or any of their respective Eurodollar Lending Offices) to honor
its obligations hereunder to make or maintain any Advance which bears interest at or by reference
to the LIBOR Rate, such Lender shall forthwith give notice thereof to Borrower and to Agent.
Thereafter, (a) the obligations of the applicable Lenders to make Advances which bear interest at
or by reference to the LIBOR Rate and the right of Borrower to convert an Advance into or refund an
Advance as an Advance which bears interest at or by reference to the LIBOR Rate shall be suspended
and thereafter only the Base Rate shall be available, and (b) if any of the Lenders may not
lawfully continue to maintain an Advance which bears interest at or by reference to the LIBOR Rate,
the applicable Advance shall immediately be converted to an Advance which bears interest at or by
reference to the Base Rate. For purposes of this Section, a change in law, rule, regulation,
interpretation or administration shall include, without limitation, any change made or which
becomes effective on the basis of a law, rule, regulation, interpretation or administration
presently in force, the effective date of which change is delayed by the terms of such law, rule,
regulation, interpretation or administration.

     11.5 Increased Cost of Advances Carried at the LIBOR Rate. If, after the date of this Agreement, the adoption or introduction of, or any change in,
any applicable law, rule or regulation or in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any of the Lenders (or any of their respective Eurodollar
Lending Offices) with any request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency:

	 	(a)	 	shall subject any of the Lenders (or any of their respective
Eurodollar Lending Offices) to any tax, duty or other charge with respect to
any Advance or shall change the basis of taxation of payments to any of the
Lenders (or any of their respective Eurodollar Lending Offices) of the
principal of or interest on any Advance or any other amounts due under this
Agreement in respect thereof (except for changes in the rate of tax on the
overall net income of any of the Lenders or any of their respective Eurodollar
Lending Offices); or

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	 	(b)	 	shall impose, modify or deem applicable any reserve (including,
without limitation, any imposed by the Board of Governors of the Federal
Reserve System), special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by, any of the Lenders
(or any of their respective Eurodollar Lending Offices) or shall impose on any
of the Lenders (or any of their respective Eurodollar Lending Offices) or the
foreign exchange and interbank markets any other condition affecting any
Advance;

and the result of any of the foregoing matters is to increase the costs to any of the Lenders of
maintaining any part of the Indebtedness hereunder as an Advance which bears interest at or by
reference to the LIBOR Rate to reduce the amount of any sum received or receivable by any of the
Lenders under this Agreement in respect of an Advance which bears interest at or by reference to
the LIBOR Rate, then such Lender shall promptly notify Agent, and Agent shall promptly notify
Borrower of such fact and demand compensation therefor and, within ten (10) Business Days after
such notice, Borrower agrees to pay to such Lender or Lenders such additional amount or amounts as
will compensate such Lender or Lenders for such increased cost or reduction, provided that each
Lender agrees to take any reasonable action, to the extent such action could be taken without cost
or administrative or other burden or restriction to such Lender, to mitigate or eliminate such cost
or reduction, within a reasonable time after becoming aware of the foregoing matters. Agent will
promptly notify Borrower of any event of which it has knowledge which will entitle Lenders to
compensation pursuant to this Section, or which will cause Borrower to incur additional liability
under Section 11.1 hereof, provided that Agent shall incur no liability whatsoever to the Lenders
or Borrower in the event it fails to do so. A certificate of Agent (or such Lender, if applicable)
setting forth the basis for determining such additional amount or amounts necessary to compensate
such Lender or Lenders shall accompany such demand and shall be conclusively presumed to be correct
absent manifest error.

     11.6 Capital Adequacy and Other Increased Costs.

	 	(a)	 	If, after the date of this Agreement, the adoption or
introduction of, or any change in any applicable law, treaty, rule or
regulation (whether domestic or foreign) now or hereafter in effect and whether
or not presently applicable to any Lender or Agent, or any interpretation or
administration thereof by any governmental authority charged with the
interpretation or administration thereof, or compliance by any Lender or Agent
with any guideline, request or directive of any such authority (whether or not
having the force of law), including any risk based capital guidelines, affects
or would affect the amount of capital required to be maintained by such Lender
or Agent (or any corporation controlling such Lender or Agent) and such Lender
or Agent, as the case may be, determines that the amount of such capital is
increased by or based upon the existence of such Lender’s or Agent’s
obligations or Advances hereunder and such increase has the effect of reducing
the rate of return on such Lender’s or Agent’s (or such controlling
corporation’s) capital as a consequence of such
obligations or Advances hereunder to a level below that which such Lender or
Agent (or such controlling corporation) could have achieved but

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	 	 	 	for such
circumstances (taking into consideration its policies with respect to
capital adequacy) by an amount deemed by such Lender or Agent to be material
(collectively, “Increased Costs”), then Agent or such Lender shall notify
Borrower, and thereafter Borrower shall pay to such Lender or Agent, as the
case may be, within ten (10) Business Days of written demand therefor from
such Lender or Agent, additional amounts sufficient to compensate such
Lender or Agent (or such controlling corporation) for any increase in the
amount of capital and reduced rate of return which such Lender or Agent
reasonably determines to be allocable to the existence of such Lender’s or
Agent’s obligations or Advances hereunder. A statement setting forth the
amount of such compensation, the methodology for the calculation and the
calculation thereof which shall also be prepared in good faith and in
reasonable detail by such Lender or Agent, as the case may be, shall be
submitted by such Lender or by Agent to Borrower, reasonably promptly after
becoming aware of any event described in this Section 11.6(a) and shall be
conclusively presumed to be correct, absent manifest error.

	 	(b)	 	Notwithstanding the foregoing, however, Borrower shall not be
required to pay any increased costs under Sections 11.5, 11.6 or 3.4(c) for any
period ending prior to the date that is 120 days prior to the making of a
Lender’s initial request for such additional amounts unless the applicable
change in law or other event resulting in such increased costs is effective
retroactively to a date more than 120 days prior to the date of such request,
in which case a Lender’s request for such additional amounts relating to the
period more than 120 days prior to the making of the request must be given not
more than 120 days after such Lender becomes aware of the applicable change in
law or other event resulting in such increased costs.

     11.7 Right of Lenders to Fund through Branches and Affiliates. Each Lender (including without limitation the Swing Line Lender) may, if it so elects,
fulfill its commitment as to any Advance hereunder by designating a branch or Affiliate of such
Lender to make such Advance; provided that (a) such Lender shall remain solely responsible
for the performances of its obligations hereunder and (b) no such designation shall result in any
material increased costs to Borrower.

     11.8 Margin Adjustment. Adjustments to the Applicable Margins and the Applicable Fee Percentages, based on Schedule
1.1, shall be implemented on a quarterly basis as follows:

	 	(a)	 	Such adjustments shall be given prospective effect only,
effective as to all Advances outstanding hereunder, the Applicable Fee
Percentage and the Letter of Credit Fee, upon the date of delivery of the
financial statements
under Sections 7.1(a) and 7.1(b) hereunder and the Covenant Compliance
Report under Section 7.2(a) hereof, in each case establishing applicability
of the appropriate adjustment and in each case with no retroactivity or
claw-back. In the event Borrower shall fail timely to deliver such financial
statements or the Covenant Compliance Report and such failure continues

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	 	 	 	for three (3) days, then (but without affecting the Event of Default resulting
therefrom) from the date delivery of such financial statements and report
was required until such financial statements and report are delivered, the
Applicable Margins and Applicable Fee Percentages shall be at the highest
level on the Pricing Matrix attached to this Agreement as Schedule 1.1.

	 	(b)	 	From the Effective Date until the required date of delivery
(or, if earlier, delivery) of the financial statements under Section 7.1(a) or
7.1(b) hereof, as applicable, and the Covenant Compliance Report under Section
7.2(a) hereof, for the fiscal quarter ending December 31, 2009, the Applicable
Margins and Applicable Fee Percentages shall be those set forth under the Level
II column of the pricing matrix attached to this Agreement as Schedule 1.1.
Thereafter, Applicable Margins and Applicable Fee Percentages shall be based
upon the quarterly financial statements and Covenant Compliance Reports,
subject to recalculation as provided in Section 11.8(a) above.
	 
	 	(c)	 	Notwithstanding the foregoing, however, if, prior to the
payment and discharge in full (in cash) of the Indebtedness and the termination
of any and all commitments hereunder, as a result of any restatement of or
adjustment to the financial statements of Borrower and any of its Subsidiaries
(relating to the current or any prior fiscal period) or for any other reason,
Agent determines that the Applicable Margin and/or the Applicable Fee
Percentages as calculated by Borrower as of any applicable date of
determination were inaccurate in any respect and a proper calculation thereof
would have resulted in different pricing for any fiscal period, then (x) if the
proper calculation thereof would have resulted in higher pricing for any such
period, Borrower shall automatically and retroactively be obligated to pay to
Agent, promptly upon demand by Agent or the Majority Lenders, an amount equal
to the excess of the amount of interest and fees that should have been paid for
such period over the amount of interest and fees actually paid for such period
and, if the current fiscal period is affected thereby, the Applicable Margin
and/or the Applicable Fee Percentages for the current period shall be adjusted
based on such recalculation; and (y) if the proper calculation thereof would
have resulted in lower pricing for such period, Agent and Lenders shall have no
obligation to recalculate such interest or fees or to repay any interest or
fees to the Borrower.

12. AGENT.

     12.1 Appointment of Agent. Each Lender and the holder of each Note (if issued) irrevocably appoints and authorizes the
Agent to act on behalf of such Lender or holder under this Agreement and the other Loan Documents
and to exercise such powers hereunder and thereunder as are specifically delegated to Agent by the
terms hereof and thereof, together with such powers as may be reasonably incidental thereto,
including without limitation the power to

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execute or authorize the execution of financing or
similar statements or notices, and other documents. In performing its functions and duties under
this Agreement, the Agent shall act solely as agent of the Lenders and does not assume and shall
not be deemed to have assumed any obligation towards or relationship of agency or trust with or for
any Credit Party.

     12.2 Deposit Account with Agent or any Lender. Borrower authorizes Agent and each Lender, in Agent’s or such Lender’s sole discretion,
upon notice to the Borrower to charge its general deposit account(s), if any, maintained with the
Agent or such Lender for the amount of any principal, interest, or other amounts or costs due under
this Agreement when the same become due and payable under the terms of this Agreement or the Notes.
Upon request of Borrower, Agent shall promptly provide to Borrower a statement prepaid in good
faith and in reasonable detail, setting forth the amount of such charges, the methodology of the
calculation thereof and the calculation thereof.

     12.3 Scope of Agent’s Duties. The Agent shall have no duties or responsibilities except those expressly set forth herein,
and shall not, by reason of this Agreement or otherwise, have a fiduciary relationship with any
Lender (and no implied covenants or other obligations shall be read into this Agreement against the
Agent). None of Agent, its Affiliates nor any of their respective directors, officers, employees or
agents shall be liable to any Lender for any action taken or omitted to be taken by it or them
under this Agreement or any document executed pursuant hereto, or in connection herewith or
therewith with the consent or at the request of the Majority Lenders (or all of the Lenders for
those acts requiring consent of all of the Lenders) (except for its or their own willful misconduct
or gross negligence), nor be responsible for or have any duties to ascertain, inquire into or
verify (a) any recitals or warranties made by the Credit Parties or any Affiliate of the Credit
Parties, or any officer thereof contained herein or therein, (b) the effectiveness, enforceability,
validity or due execution of this Agreement or any document executed pursuant hereto or any
security thereunder, (c) the performance by the Credit Parties of their respective obligations
hereunder or thereunder, or (d) the satisfaction of any condition hereunder or thereunder,
including without limitation in connection with the making of any Advance or the issuance of any
Letter of Credit. Agent and its Affiliates shall be entitled to rely upon any certificate, notice,
document or other communication (including any cable, telegraph, telex, facsimile transmission or
oral communication) believed by it to be genuine and correct and to have been sent or given by or
on behalf of a proper person. Agent may treat the payee of any Note as the holder thereof. Agent
may employ agents and may consult with legal counsel, independent public accountants and other
experts selected by it and shall not be liable to the Lenders (except as to money or property
received by them or their authorized agents), for the negligence or misconduct of any such agent
selected by it with reasonable care or for any action
taken or omitted to be taken by it in good faith in accordance with the advice of such
counsel, accountants or experts.

     12.4 Successor Agent. Agent may resign as such at any time upon at least thirty (30) days prior notice to
Borrower and each of the Lenders. If Agent at any time shall resign or if the office of Agent shall
become vacant for any other reason, Majority Lenders shall, by written instrument, appoint
successor agent(s) (“Successor Agent”) satisfactory to such Majority Lenders and, so long as no
Default or Event of Default has occurred and is continuing, to Borrower (which approval shall not
be unreasonably withheld or delayed); provided, however that any such successor Agent shall be a
bank or a trust company or other financial institution

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which maintains an office in the United
States, or a commercial bank organized under the laws of the United States or any state thereof, or
any Affiliate of such bank or trust company or other financial institution which is engaged in the
banking business, and shall have a combined capital and surplus of at least $500,000,000. Such
Successor Agent shall thereupon become the Agent hereunder, as applicable, and Agent shall deliver
or cause to be delivered to any successor agent such documents of transfer and assignment as such
Successor Agent may reasonably request. If a Successor Agent is not so appointed or does not accept
such appointment before the resigning Agent’s resignation becomes effective, the resigning Agent
may appoint a temporary successor to act until such appointment by the Majority Lenders and, if
applicable, Borrower, is made and accepted, or if no such temporary successor is appointed as
provided above by the resigning Agent, the Majority Lenders shall thereafter perform all of the
duties of the resigning Agent hereunder until such appointment by the Majority Lenders and, if
applicable, Borrower, is made and accepted. Such Successor Agent shall succeed to all of the rights
and obligations of the resigning Agent as if originally named. The resigning Agent shall duly
assign, transfer and deliver to such Successor Agent all moneys at the time held by the resigning
Agent hereunder after deducting therefrom its expenses for which it is entitled to be reimbursed
hereunder. Upon such succession of any such Successor Agent, the resigning Agent shall be
discharged from its duties and obligations, in its capacity as Agent hereunder, except for its
gross negligence or willful misconduct arising prior to its resignation hereunder, and the
provisions of this Article 12 shall continue in effect for the benefit of the resigning Agent in
respect of any actions taken or omitted to be taken by it while it was acting as Agent.

     12.5 Credit Decisions. Each Lender acknowledges that it has, independently of Agent and each other Lender and
based on the financial statements of Borrower and such other documents, information and
investigations as it has deemed appropriate, made its own credit decision to extend credit
hereunder from time to time. Each Lender also acknowledges that it will, independently of Agent and
each other Lender and based on such other documents, information and investigations as it shall
deem appropriate at any time, continue to make its own credit decisions as to exercising or not
exercising from time to time any rights and privileges available to it under this Agreement, any
Loan Document or any other document executed pursuant hereto.

     12.6 Authority of Agent to Enforce This Agreement. Each Lender, subject to the terms and conditions of this Agreement, grants the Agent full
power and authority as attorney-in-fact to institute and maintain actions, suits or proceedings for
the collection and enforcement of any Indebtedness outstanding under this Agreement or any other
Loan Document and to file such proofs of debt or other documents as may be necessary to have the
claims of the Lenders allowed in any proceeding relative to any Credit Party, or their respective
creditors or affecting their respective properties, and to take such other actions which Agent
considers to be necessary or desirable for the protection, collection and enforcement of the Notes,
this Agreement or the other Loan Documents.

     12.7 Indemnification of Agent. The Lenders agree (which agreement shall survive the expiration or termination of this
Agreement) to indemnify the Agent and its Affiliates (to the extent not reimbursed by Borrower, but
without limiting any obligation of Borrower to make such reimbursement), ratably according to their
respective Weighted Percentages, from and against any and all claims, damages, losses, liabilities,
costs or expenses of any kind or nature

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whatsoever (including, without limitation, reasonable fees and expenses of house and
outside counsel) which may be imposed on, incurred by, or asserted against the Agent and its
Affiliates in any way relating to or arising out of this Agreement, any of the other Loan Documents
or the transactions contemplated hereby or any action taken or omitted by the Agent and its
Affiliates under this Agreement or any of the Loan Documents; provided, however, that no Lender
shall be liable for any portion of such claims, damages, losses, liabilities, costs or expenses
resulting from the Agent’s or its Affiliate’s gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse the Agent and its Affiliates promptly
upon demand for its ratable share of any reasonable out-of-pocket expenses (including, without
limitation, reasonable fees and expenses of house and outside counsel) incurred by the Agent and
its Affiliates in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement or
any of the other Loan Documents, to the extent that the Agent and its Affiliates are not reimbursed
for such expenses by Borrower, but without limiting the obligation of Borrower to make such
reimbursement. Each Lender agrees to reimburse the Agent and its Affiliates promptly upon demand
for its ratable share of any amounts owing to the Agent and its Affiliates by the Lenders pursuant
to this Section, provided that, if the Agent or its Affiliates are subsequently reimbursed by
Borrower for such amounts, they shall refund to the Lenders on a pro rata basis the amount of any
excess reimbursement. If the indemnity furnished to the Agent and its Affiliates under this Section
shall become impaired as determined in the Agent’s reasonable judgment or Agent shall elect in its
sole discretion to have such indemnity confirmed by the Lenders (as to specific matters or
otherwise), Agent shall give notice thereof to each Lender and, until such additional indemnity is
provided or such existing indemnity is confirmed, the Agent may cease, or not commence, to take any
action. Any amounts paid by the Lenders hereunder to the Agent or its Affiliates shall be deemed to
constitute part of the Indebtedness hereunder.

     12.8 Knowledge of Default. It is expressly understood and agreed that the Agent shall be entitled to assume that no
Default or Event of Default has occurred and is continuing, unless the officers of the Agent
immediately responsible for matters concerning this Agreement shall have received a written notice
from a Lender or a Borrower specifying such Default or Event of Default and stating that such
notice is a “notice of default”. Upon receiving such a notice, the Agent shall promptly notify each
Lender of such Default or Event of Default and provide each Lender with a copy of such notice and
shall endeavor to provide such notice to the Lenders within three (3) Business Days (but without
any liability whatsoever in the event of its failure to do so). The Agent shall also furnish the
Lenders, promptly upon receipt, with copies of all other notices or other information required to
be provided by Borrower hereunder.

     12.9 Agent’s Authorization; Action by Lenders. Except as otherwise expressly provided herein, whenever the Agent is authorized and
empowered hereunder on behalf of the Lenders to give any approval or consent, or to make any
request, or to take any other action on behalf of the Lenders (including without limitation the
exercise of any right or remedy hereunder or under the other Loan Documents), the Agent shall be
required to give such approval or consent, or to make such request or to take such other action
only when so requested in writing by the Majority Lenders or the Lenders, as applicable
hereunder. Action that may be taken by the Majority Lenders, any other specified Percentage of the
Lenders or all of the Lenders, as the case may be (as provided for hereunder) may be taken (i)
pursuant to a vote of the requisite

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percentages of the Lenders as required hereunder at a meeting
(which may be held by telephone conference call), provided that Agent exercises good faith,
diligent efforts to give all of the Lenders reasonable advance notice of the meeting, or (ii)
pursuant to the written consent of the requisite percentages of the Lenders as required hereunder,
provided that all of the Lenders are given reasonable advance notice of the requests for such
consent.

     12.10 Enforcement Actions by the Agent. Except as otherwise expressly provided under this Agreement or in any of the other Loan
Documents and subject to the terms hereof, Agent will take such action, assert such rights and
pursue such remedies under this Agreement and the other Loan Documents as the Majority Lenders or
all of the Lenders, as the case may be (as provided for hereunder), shall direct; provided,
however, that the Agent shall not be required to act or omit to act if, in the reasonable judgment
of the Agent, such action or omission may expose the Agent to personal liability for which Agent
has not been satisfactorily indemnified hereunder or is contrary to this Agreement, any of the Loan
Documents or applicable law. Except as expressly provided above or elsewhere in this Agreement or
the other Loan Documents, no Lender (other than the Agent, acting in its capacity as agent) shall
be entitled to take any enforcement action of any kind under this Agreement or any of the other
Loan Documents.

     12.11 Collateral Matters.

     (a) The Agent is authorized on behalf of all the Lenders, without the necessity of any notice
to or further consent from the Lenders, from time to time to take any action with respect to any
Collateral or the Collateral Documents which may be necessary to perfect and maintain a perfected
security interest in and Liens upon the Collateral granted pursuant to the Loan Documents.

     (b) The Lenders irrevocably authorize the Agent, in its reasonable discretion, to the full
extent set forth in the post-amble to Section 13.10 hereof, (1) to release or terminate any Lien
granted to or held by the Agent upon any Collateral (a) upon termination of the Revolving Credit
Aggregate Commitment and payment in full of all Indebtedness payable under this Agreement and under
any other Loan Document; (b) constituting property (including, without limitation, Equity Interests
in any Person) sold or to be sold or disposed of as part of or in connection with any disposition
(whether by sale, by merger or by any other form of transaction and including the property of any
Subsidiary that is disposed of as permitted hereby) permitted in accordance with the terms of this
Agreement; (c) constituting property in which a Credit Party owned no interest at the time the Lien
was granted or at any time thereafter; or (d) if approved, authorized or ratified in writing by the
Majority Lenders, or all the Lenders, as the case may be, as provided in Section 13.10; (2) to
subordinate the Lien granted to or held by Agent on any Collateral to any other holder of a Lien on
such Collateral which is permitted by Section 8.2(b) hereof; and (3) if all of the Equity Interests
held by the Credit Parties in any Person are sold or otherwise transferred to any transferee other
than Borrower or a Subsidiary of Borrower as part
of or in connection with any disposition (whether by sale, by merger or by any other form of
transaction) permitted in accordance with the terms of this Agreement, to release such Person from
all of its obligations under the Loan Documents (including, without limitation, under any
Guaranty). Upon request by the Agent at any time, the Lenders will confirm in writing the

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Agent’s
authority to release particular types or items of Collateral pursuant to this Section 12.11(b).

     12.12 Agents in their Individual Capacities. Comerica Bank and its Affiliates, successors and assigns shall each have the same rights
and powers hereunder as any other Lender and may exercise or refrain from exercising the same as
though such Lender were not the Agent. Comerica Bank and its Affiliates may (without having to
account therefor to any Lender) accept deposits from, lend money to, and generally engage in any
kind of banking, trust, financial advisory or other business with the Credit Parties as if such
Lender were not acting as the Agent hereunder, and may accept fees and other consideration therefor
without having to account for the same to the Lenders.

     12.13 Agent’s Fees. Until the Indebtedness has been repaid and discharged in full and no commitment to extend
any credit hereunder is outstanding, Borrower shall pay to the Agent, as applicable, any agency or
other fee(s) set forth (or to be set forth from time to time) in the applicable Fee Letter on the
terms set forth therein. The agency fees referred to in this Section 12.13 shall not be refundable
under any circumstances.

     12.14 Documentation Agent or other Titles. Any Lender identified on the facing page or signature page of this Agreement or in any
amendment hereto or as designated with consent of the Agent in any assignment agreement as Lead
Arranger, Documentation Agent, Syndications Agent or any similar titles, shall not have any right,
power, obligation, liability, responsibility or duty under this Agreement as a result of such title
other than those applicable to all Lenders as such. Without limiting the foregoing, the Lenders so
identified shall not have or be deemed to have any fiduciary relationship with any Lender as a
result of such title. Each Lender acknowledges that it has not relied, and will not rely, on the
Lender so identified in deciding to enter into this Agreement or in taking or not taking action
hereunder.

     12.15 No Reliance on Agent’s Customer Identification Program.

     (a) Each Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates,
participants or assignees, may relay on the Agent to carry out such Lender’s, Affiliate’s,
participant’s or assignee’s customer identification program, or other obligations required or
imposed under or pursuant to the USA Patriot Act or the regulations thereunder, including the
regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”),
or any other Anti-Terrorism Law, including any programs involving any of the following items
relating to or in connection with Borrower or any of its Subsidiaries, any of
their respective Affiliates or agents, the Loan Documents or the transactions hereunder: (i)
any identify verification procedures, (ii) any record keeping, (iii) any comparisons with
government lists, (iv) any customer notices or (v) any other procedures required under the CIP
Regulations or such other laws.

     (b) Each Lender or assignee or participant of a Lender that is not organized under the laws of
the United States or a state thereof (and is not excepted from the certification requirement
contained in Section 313 of the USA Patriot Act and the applicable regulations because it is both
(i) an affiliate of a depository institution or foreign bank that maintains a physical presence in
the United States or foreign country, and (ii) subject to provision by a

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banking authority
regulating such affiliated depository institution or foreign bank) shall deliver to the
Administrative Agent the certification, or, if applicable, recertification, certifying that such
Lender is not a “shell” and certifying to other matters as required by Section 313 of the USA
Patriot Act and the applicable regulations: (x) within 10 days after the Effective Date, and (y) at
such other times as are required under the USA Patriot Act.

13. MISCELLANEOUS.

     13.1 Accounting Principles. Where the character or amount of any asset or liability or item of income or expense is
required to be determined or any consolidation or other accounting computation is required to be
made for the purposes of this Agreement, it shall be done, unless otherwise specified herein, in
accordance with GAAP.

     13.2 Consent to Jurisdiction. The Borrower, the Agent and Lenders hereby irrevocably submit to the non-exclusive
jurisdiction of any United States Federal Court or California state court sitting in the County of
Santa Clara, California in any action or proceeding arising out of or relating to this Agreement or
any of the Loan Documents and the Borrower, Agent and Lenders hereby irrevocably agree that all
claims in respect of such action or proceeding may be heard and determined in any such United
States Federal Court or California state court. Each Borrower irrevocably consents to the service
of any and all process in any such action or proceeding brought in any court in or of the State of
California by the delivery of copies of such process to it at the applicable addresses specified on
the signature page hereto or by certified mail directed to such address or such other address as
may be designated by it in a notice to the other parties that complies as to delivery with the
terms of Section 13.6. Nothing in this Section shall affect the right of the Lenders and the Agent
to serve process in any other manner permitted by law or limit the right of the Lenders or the
Agent (or any of them) to bring any such action or proceeding against any Credit Party or any of
their property in the courts with subject matter jurisdiction of any other jurisdiction. Borrower
irrevocably waives any objection to the laying of venue of any such suit or proceeding in the above
described courts.

     13.3 Law of California. This Agreement, the Notes and, except where otherwise expressly specified therein to be
governed by local law, the other Loan Documents shall be governed by and construed and
enforced in accordance with the laws of the State of California (without regard to its
conflict of laws provisions). Whenever possible each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

     13.4 Interest. In the event the obligation of Borrower to pay interest on the principal balance of the
Notes or on any other amounts outstanding hereunder or under the other Loan Documents is or becomes
in excess of the maximum interest rate which Borrower is permitted by law to contract or agree to
pay, giving due consideration to the execution date of this Agreement, then, in that event, the
rate of interest applicable thereto with respect to such Lender’s applicable Percentages shall be
deemed to be immediately reduced to such maximum rate and all previous payments in excess of the
maximum rate shall be deemed to have been payments in reduction of principal and not of interest.

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     13.5 Closing Costs and Other Costs; Indemnification.

     (a) Borrower shall pay or reimburse (a) Agent and its Affiliates for payment of, on demand,
all reasonable costs and expenses, including, by way of description and not limitation, reasonable
in-house and outside attorney fees and advances, appraisal and accounting fees, lien search fees,
and required travel costs, incurred by Agent and its Affiliates in connection with the commitment,
consummation and closing of the loans contemplated hereby, or in connection with the administration
or enforcement of this Agreement or the other Loan Documents (including the obtaining of legal
advice regarding the rights and responsibilities of the parties hereto) or any refinancing or
restructuring of the loans or Advances provided under this Agreement or the other Loan Documents,
or any amendment or modification thereof requested by Borrower, and (b) Agent and its Affiliates
and each of the Lenders, as the case may be, for all stamp and other taxes and duties payable or
determined to be payable in connection with the execution, delivery, filing or recording of this
Agreement and the other Loan Documents and the consummation of the transactions contemplated
hereby, and any and all liabilities with respect to or resulting from any delay in paying or
omitting to pay such taxes or duties. Furthermore, all reasonable costs and expenses, including
without limitation attorney fees, incurred by Agent and its Affiliates and, after the occurrence
and during the continuance of an Event of Default, by the Lenders in revising, preserving,
protecting, exercising or enforcing any of its or any of the Lenders’ rights against Borrower or
any other Credit Party, or otherwise incurred by Agent and its Affiliates and the Lenders in
connection with any Event of Default or the enforcement of the loans (whether incurred through
negotiations, legal proceedings or otherwise), including by way of description and not limitation,
such charges in any court or bankruptcy proceedings or arising out of any claim or action by any
person against Agent, its Affiliates, or any Lender which would not have been asserted were it not
for Agent’s or such Affiliate’s or Lender’s relationship with Borrower hereunder or otherwise,
shall also be paid by Borrower. All of said amounts required to be paid by Borrower hereunder and
not paid forthwith upon demand, as aforesaid, shall bear interest, from the date incurred to the
date payment is received by Agent, at the Base Rate, plus two percent (2%) but in no event in
excess of the maximum interest rate permitted by applicable law.

     (b) Borrower agrees to indemnify and hold Agent and each of the Lenders (and their respective
Affiliates) harmless from all loss, cost, damage, liability or expenses, including reasonable house
and outside attorneys’ fees and disbursements (but without duplication of such fees and
disbursements for the same services), incurred by Agent and each of the Lenders by reason of an
Event of Default, or enforcing the obligations of any Credit Party under this Agreement or any of
the other Loan Documents, as applicable, or in the prosecution or defense of any action or
proceeding concerning any matter growing out of or connected with this Agreement or any of the Loan
Documents, excluding, however, any loss, cost, damage, liability or expenses to the extent arising
as a result of the gross negligence or willful misconduct of the party seeking to be indemnified
under this Section 13.5(b), provided that, the Borrower shall be obligated to reimburse Agent and
the Lenders for only a single financial consultant selected by Agent in consultation with the
Lenders.

     (c) The Borrower agrees to defend, indemnify and hold harmless Agent and each Lender (and
their respective Affiliates), and their respective employees, agents, officers and directors from
and against any and all claims, demands, penalties, fines, liabilities, settlements, damages, costs
or expenses of whatever kind or nature (including without limitation, reasonable

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attorneys and
consultants fees, investigation and laboratory fees, environmental studies required by Agent or any
Lender in connection with the violation of Hazardous Material Laws), court costs and litigation
expenses, arising out of or related to (i) the presence, use, disposal, release or threatened
release of any Hazardous Materials on, from or affecting any premises owned or occupied by any
Credit Party in violation of or the non-compliance with applicable Hazardous Material Laws, (ii)
any personal injury (including wrongful death) or property damage (real or personal) arising out of
or related to such Hazardous Materials, (iii) any lawsuit or other proceeding brought or
threatened, settlement reached or governmental order or decree relating to such Hazardous
Materials, and/or (iv) complying or coming into compliance with all Hazardous Material Laws
(including the cost of any remediation or monitoring required in connection therewith) or any other
Requirement of Law; provided, however, that the Borrower shall have no obligations under this
Section 13.5(c) with respect to claims, demands, penalties, fines, liabilities, settlements,
damages, costs or expenses to the extent arising as a result of the gross negligence or willful
misconduct of the Agent or such Lender, as the case may be. The obligations of Borrower under this
Section 13.5(c) shall be in addition to any and all other obligations and liabilities Borrower may
have to Agent or any of the Lenders at common law or pursuant to any other agreement.

     13.6 Notices.

	 	(a)	 	Except as expressly provided otherwise in this Agreement (and
except as provided in clause (b) below), all notices and other communications
provided to any party hereto under this Agreement or any other Loan Document
shall be in writing and shall be given by personal delivery, by mail, by
reputable overnight courier or by facsimile and addressed or delivered to it at
its address set forth on Schedule 13.6 to the Disclosure Letter or at such
other address as may be designated by such party in a notice to the other
parties that complies as to delivery with the terms of this Section 13.6 or
posted to an E-System set up by or at the direction of Agent (as set forth
below). Any notice, if personally delivered or if mailed
and properly addressed with postage prepaid and sent by registered or
certified mail, shall be deemed given when received or when delivery is
refused; any notice, if given to a reputable overnight courier and properly
addressed, shall be deemed given two (2) Business Days after the date on
which it was sent, unless it is actually received sooner by the named
addressee; and any notice, if transmitted by facsimile, shall be deemed
given when received. The Agent may, but, except as specifically provided
herein, shall not be required to, take any action on the basis of any notice
given to it by telephone, but the giver of any such notice shall promptly
confirm such notice in writing, by facsimile, and such notice will not be
deemed to have been received until such confirmation is deemed received in
accordance with the provisions of this Section set forth above. If such
telephonic notice conflicts with any such confirmation, the terms of such
telephonic notice shall control. Any notice given by the Agent or any Lender
to the Borrower shall be deemed to be a notice to all of the Credit Parties.

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	 	(b)	 	Notices and other communications provided to the Agent and the
Lenders party hereto under this Agreement or any other Loan Document may be
delivered or furnished by electronic communication (including email and
Internet or intranet websites) pursuant to procedures approved by the Agent.
The Agent or the Borrower may, in its discretion, agree to accept notices and
other communications to it hereunder by electronic communications (including
email and any E-System) pursuant to procedures approved by it. Unless
otherwise agreed to in a writing by and among the parties to a particular
communication, (i) notices and other communications sent to an email address
shall be deemed received upon the sender’s receipt of an acknowledgment from
the intended recipient (such as by the “return receipt requested” function,
return email, or other written acknowledgment) and (ii) notices and other
communications posted to any E-System shall be deemed received upon the deemed
receipt by the intended recipient at its email address as described in the
foregoing clause (i) of notification that such notice or other communication is
available and identifying the website address therefore.

     13.7 Further Action. Borrower, from time to time, upon written request of Agent will make, execute, acknowledge
and deliver or cause to be made, executed, acknowledged and delivered, all such further and
additional instruments, and take all such further action as may reasonably be required to carry out
the intent and purpose of this Agreement or the Loan Documents, and to provide for Advances under
and payment of the Notes, according to the intent and purpose herein and therein expressed.

     13.8 Successors and Assigns; Participations; Assignments.

     (a) This Agreement shall be binding upon and shall inure to the benefit of the Borrower and
the Lenders and their respective successors and assigns.

     (b) The foregoing shall not authorize any assignment by Borrower of its rights or duties
hereunder, and, except as otherwise provided herein, no such assignment shall be made (or be
effective) without the prior written approval of the Lenders.

     (c) No Lenders may at any time assign or grant participations in such Lender’s rights and
obligations hereunder and under the other Loan Documents except (i) by way of assignment to any
Eligible Assignee in accordance with clause (d) of this Section, (ii) by way of a participation in
accordance with the provisions of clause (e) of this Section or (iii) by way of a pledge or
assignment of a security interest subject to the restrictions of clause (f) of this Section (and
any other attempted assignment or transfer by any Lender shall be deemed to be null and void).

     (d) Each assignment by a Lender of all or any portion of its rights and obligations hereunder
and under the other Loan Documents, shall be subject to the following terms and conditions:

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	 	(i)	 	each such assignment shall be made on a pro
rata basis, and shall be in a minimum amount of the lesser of (x) Five
Million Dollars ($5,000,000) or such lesser amount as the Agent shall
agree and (y) the entire remaining amount of assigning Lender’s
aggregate interest in the Revolving Credit (and participations in any
outstanding Letters of Credit) and the Term Loan; provided however
that, after giving effect to such assignment, in no event shall the
entire remaining amount (if any) of assigning Lender’s aggregate
interest in the Revolving Credit (and participations in any outstanding
Letters of Credit) and the Term Loan be less than $5,000,000; and
	 
	 	(ii)	 	the parties to any assignment shall execute and
deliver to Agent an Assignment Agreement substantially (as determined
by Agent) in the form annexed hereto as Exhibit H (with appropriate
insertions acceptable to Agent), together with a processing and
recordation fee in the amount, if any, required as set forth in the
Assignment Agreement (provided however that such Lender need not
deliver an Assignment Agreement in connection with assignments to such
Lender’s Affiliates or to a Federal Reserve Bank).

Until the Assignment Agreement becomes effective in accordance with its terms, and Agent has
confirmed that the assignment satisfies the requirements of this Section 13.8, the Borrower and the
Agent shall be entitled to continue to deal solely and directly with the assigning Lender in
connection with the interest so assigned. From and after the effective date of each Assignment
Agreement that satisfies the requirements of this Section 13.8, the assignee thereunder shall be
deemed to be a party to this Agreement, such assignee shall have the rights and obligations of a
Lender under this Agreement and the other Loan Documents (including without limitation the
right to receive fees payable hereunder in respect of the period following such assignment) and the
assigning Lender shall relinquish its rights and be released from its obligations under this
Agreement and the other Loan Documents.

     Upon request, Borrower shall execute and deliver to the Agent, new Note(s) payable to the
order of the assignee in an amount equal to the amount assigned to the assigning Lender pursuant to
such Assignment Agreement, and with respect to the portion of the Indebtedness retained by the
assigning Lender, to the extent applicable, new Note(s) payable to the order of the assigning
Lender in an amount equal to the amount retained by such Lender hereunder. The Agent, the Lenders
and the Borrower acknowledges and agrees that any such new Note(s) shall be given in renewal and
replacement of the Notes issued to the assigning lender prior to such assignment and shall not
effect or constitute a novation or discharge of the Indebtedness evidenced by such prior Note, and
each such new Note may contain a provision confirming such agreement.

     (e) The Borrower and the Agent acknowledge that each of the Lenders may at any time and from
time to time, subject to the terms and conditions hereof, grant participations in such Lender’s
rights and obligations hereunder (on a pro rata basis only) and under the other Loan Documents to
any Person (other than a natural person or to Borrower or any of Borrower’s

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Affiliates or
Subsidiaries); provided that any participation permitted hereunder shall comply with all applicable
laws and shall be subject to a participation agreement that incorporates the following
restrictions:

	 	(i)	 	such Lender shall remain the holder of its
Notes hereunder (if such Notes are issued), notwithstanding any such
participation;
	 
	 	(ii)	 	a participant shall not reassign or transfer,
or grant any sub-participations in its participation interest hereunder
or any part thereof; and
	 
	 	(iii)	 	such Lender shall retain the sole right and
responsibility to enforce the obligations of the Credit Parties
relating to the Notes and the other Loan Documents, including, without
limitation, the right to proceed against any Guarantors, or cause the
Agent to do so (subject to the terms and conditions hereof), and the
right to approve any amendment, modification or waiver of any provision
of this Agreement without the consent of the participant (unless such
participant is an Affiliate of such Lender), except for those matters
covered by Section 13.10(a) through (e) hereof (provided that a
participant may exercise approval rights over such matters only on an
indirect basis, acting through such Lender and the Credit Parties,
Agent and the other Lenders may continue to deal directly with such
Lender in connection with such Lender’s rights and duties hereunder).
Notwithstanding the foregoing, however, in the case of any
participation granted by any Lender hereunder, the participant shall
not have any rights under this Agreement or any of the other Loan
Documents against the Agent, any other Lender
or any Credit Party; provided, however that the participant may have
rights against such Lender in respect of such participation as may be
set forth in the applicable participation agreement and all amounts
payable by the Credit Parties hereunder shall be determined as if
such Lender had not sold such participation. Each such participant
shall be entitled to the benefits of Article 11 of this Agreement to
the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to clause (d) of this Section, provided that
no participant shall be entitled to receive any greater amount
pursuant to such the provisions of Article 11 than the issuing Lender
would have been entitled to receive in respect of the amount of the
participation transferred by such issuing Lender to such participant
had no such transfer occurred and each such participant shall also be
entitled to the benefits of Section 9.6 hereof as though it were a
Lender, provided that such participant agrees to be subject to
Section 10.3 hereof as though it were a Lender.

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     (f) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement (including its Notes, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that
no such pledge or assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledge or assignee for such Lender as a party hereto.

     (g) The Agent shall maintain at its principal office a copy of each Assignment Agreement
delivered to it and a register (the “Register”) for the recordation of the names and addresses of
the Lenders, the Percentages of such Lenders and the principal amount of each type of Advance owing
to each such Lender from time to time. The entries in the Register shall be conclusive evidence,
absent manifest error, and the Borrower, the Agent, and the Lenders may treat each Person whose
name is recorded in the Register as the owner of the Advances recorded therein for all purposes of
this Agreement. The Register shall be available for inspection by the Borrower or any Lender upon
reasonable notice to the Agent and a copy of such information shall be provided to any such party
on their prior written request. The Agent shall give prompt written notice to the Borrower of the
making of any entry in the Register or any change in such entry.

     (h) Borrower authorizes each Lender to disclose to any prospective assignee or participant
which has satisfied the requirements hereunder, any and all financial information in such Lender’s
possession concerning the Credit Parties which has been delivered to such Lender pursuant to this
Agreement, provided that each such prospective assignee or participant shall execute a
confidentiality agreement consistent with the terms of Section 13.11 hereof or shall otherwise
agree to be bound by the terms thereof.

     (i) Nothing in this Agreement, the Notes or the other Loan Documents, expressed or implied, is
intended to or shall confer on any Person other than the respective parties hereto and thereto and
their successors and assignees and participants permitted hereunder and thereunder
any benefit or any legal or equitable right, remedy or other claim under this Agreement, the
Notes or the other Loan Documents.

     13.9 Counterparts. This Agreement may be executed in several counterparts, and each executed copy shall
constitute an original instrument, but such counterparts shall together constitute but one and the
same instrument.

     13.10 Amendment and Waiver.

     (a) No amendment or waiver of any provision of this Agreement or any other Loan Document, nor
consent to any departure by any Credit Party therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Agent and the Majority Lenders (or by the Agent at the
written request of the Majority Lenders) or, if this Agreement expressly so requires with respect
to the subject matter thereof, by all Lenders (and, with respect to any amendments to this
Agreement or the other Loan Documents, by any Credit Party or the Guarantors that are signatories
thereto), and then such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, however, that no amendment, waiver
or consent shall, unless in writing and signed by the Lender or Lenders affected thereby, do any of
the following: (a) increase the stated amount of such Lender’s

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commitment hereunder, (b) reduce the
principal of, or interest on, any outstanding Indebtedness or any Fees or other amounts payable
hereunder, (c) postpone any date fixed for any payment of principal of, or interest on, any
outstanding Indebtedness or any Fees or other amounts payable hereunder, (d) except as expressly
permitted hereunder or under the Collateral Documents, release all or substantially all of the
Collateral (provided that neither Agent nor any Lender shall be prohibited thereby from proposing
or participating in a consensual or nonconsensual debtor-in-possession or similar financing), or
release any material guaranty provided by any Person in favor of Agent and the Lenders, provided
however that Agent shall be entitled, without notice to or any further action or consent of the
Lenders, to release any Collateral which any Credit Party is permitted to sell, assign or otherwise
transfer in compliance with this Agreement or the other Loan Documents or release any guaranty to
the extent expressly permitted in this Agreement or any of the other Loan Documents (whether in
connection with the sale, transfer or other disposition of the applicable Guarantor or otherwise),
(e) terminate or modify any indemnity provided to the Lenders hereunder or under the other Loan
Documents, except as shall be otherwise expressly provided in this Agreement or any other Loan
Document, or (f) change the definitions of “Revolving Credit Percentage”, “Term Loan Percentage”,
“Weighted Percentage”, “Interest Periods”, “Majority Lenders”, “Majority Revolving Credit Lenders”,
“Majority Term Loan Lenders,” Sections 10.2 or 10.3 hereof or this Section 13.10; provided,
further, that the Revolving Credit Maturity Date may be postponed or extended, only with
the consent of all of the Revolving Credit Lenders; the Term Loan Maturity Date may be postponed or
extended only with the consent of all the Term Loan Lenders; and provided further, that no
amendment, waiver or consent shall, unless in a writing signed by the Swing Line Lender, do any of
the following: (x) reduce the principal of, or interest on, the Swing Line Note, (y) postpone any
date fixed for any payment of principal of, or interest on, the Swing Line Note or (z) otherwise
affect the rights and duties of the Swing Line Lender under this Agreement or any other Loan
Document and provided further, that no amendment, waiver or consent shall, unless
in a writing signed by
Issuing Lender affect the rights or duties of Issuing Lender under this Agreement or any of
the other Loan Documents and no amendment, waiver, or consent shall, unless in a writing signed by
the Agent affect the rights or duties of the Agent under this Agreement or any other Loan Document.
All references in this Agreement to “Lenders” or “the Lenders” shall refer to all Lenders, unless
expressly stated to refer to Majority Lenders (or the like).

     (b) The Agent shall, upon the written request of the Borrower, execute and deliver to the
Credit Parties such documents as may be necessary to evidence (1) the release or subordination of
any Lien granted to or held by the Agent upon any Collateral: (a) upon termination of the Revolving
Credit Aggregate Commitment and payment in full of all Indebtedness payable under this Agreement
and under any other Loan Document; (b) which constitutes property (including, without limitation,
Equity Interests in any Person) sold or to be sold or disposed of as part of or in connection with
any disposition (whether by sale, by merger or by any other form of transaction and including the
property of any Subsidiary that is disposed of as permitted hereby) permitted in accordance with
the terms of this Agreement; (c) which constitutes property in which a Credit Party owned no
interest at the time the Lien was granted or at any time thereafter; or (d) if approved, authorized
or ratified in writing by the Majority Lenders, or all the Lenders, as the case may be, as provided
in this Section 13.10; or (2) the release of any Person from its obligations under the Loan
Documents (including without limitation the Guaranty) if all of the Equity Interests of such Person
that were held by a Credit Party are sold or otherwise transferred to any transferee other than
Borrower or a Subsidiary of

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Borrower as part of or in connection with any disposition (whether by
sale, by merger or by any other form of transaction) permitted in accordance with the terms of this
Agreement; provided that (i) Agent shall not be required to execute any such release or
subordination agreement under clauses (1) or (2) above on terms which, in the Agent’s opinion,
would expose the Agent to liability or create any obligation or entail any consequence other than
the release of such Liens without recourse or warranty or such release shall not in any manner
discharge, affect or impair the Indebtedness or any Liens upon any Collateral retained by any
Credit Party, including (without limitation) the proceeds of the sale or other disposition, all of
which shall constitute and remain part of the Collateral.

     13.11 Confidentiality. Each Lender agrees that it will not disclose without the prior consent of the Borrower
(other than to its employees, its Subsidiaries, another Lender, an Affiliate of a Lender or to its
auditors or counsel) any information with respect to the Credit Parties which is furnished pursuant
to this Agreement or any of the other Loan Documents; provided that any Lender may disclose any
such information (a) as has become generally available to the public or has been lawfully obtained
by such Lender from any third party under no duty of confidentiality to any Credit Party, (b) as
may be required or appropriate in any report, statement or testimony submitted to, or in respect to
any inquiry, by, any municipal, state or federal regulatory body having or claiming to have
jurisdiction over such Lender, including the Board of Governors of the Federal Reserve System of
the United States, the Office of the Comptroller of the Currency or the Federal Deposit Insurance
Corporation or similar organizations (whether in the United States or elsewhere) or their
successors, (c) as may be required in respect to any summons or subpoena or in connection with any
litigation, (d) in order to comply with any law, order,
regulation, ruling or other requirement of law applicable to such Lender, and (e) to any
prospective assignee or participant in accordance with Section 13.8(f) hereof.

     13.12 Substitution or Removal of Lenders. If (a) the obligation of any Lender to make Eurocurrency-based Advances has been suspended
pursuant to Section 11.3 or 11.4, (b) any Lender has demanded compensation under Sections 3.4(c),
11.5 or 11.6, (c) any Lender has become an Impaired Lender or (d) any Lender has not approved an
amendment, waiver or other modification of this Agreement, if such amendment, waiver or
modification has been approved by the Majority Lenders and the consent of such Lender is required
(in each case, an “Affected Lender”), then the Borrower shall have the following rights in addition
to any other rights or remedies it may have hereunder:

	 	(i)	 	Subject to Section 13.8 hereof, the Borrower
may, with the assistance of the Agent, seek a substitute Lender or
Lenders (which may be one or more of the Lenders or other financial
institutions that comply with the provisions of Section 13.8 hereof
(the “Purchasing Lender” or “Purchasing Lenders”)) to purchase the
Advances of the Revolving Credit, Swing Line and/or the Term Loan, as
the case may be and assume the Revolving Credit Aggregate Commitment
(including without limitation the participations in Swing Line Advances
and Letters of Credit) under this Agreement of such Affected Lender,
and require the Affected Lender to sell its Advances of the Revolving
Credit, Swing Line 

110

 

	 	 	 	and/or the Term Loan, as the case may be, and assign
its Revolving Credit Aggregate Commitment to such Purchasing Lender or
Purchasing Lenders within two (2) Business Days after receiving notice
from the Borrower requiring it to do so, at an aggregate price equal to
the outstanding principal amount thereof, plus unpaid interest accrued
thereon up to but excluding the date of the sale, payable (in
immediately available funds) in cash. In connection with any such sale,
and as a condition thereof, the Borrower shall pay to the Affected
Lender all fees accrued for its account hereunder to but excluding the
date of such sale, plus, if demanded by the Affected Lender within ten
(10) Business Days after such sale, (x) the amount of any compensation
which would be due to the Affected Lender under Section 11.1 if the
Borrower had prepaid the outstanding Eurocurrency-based Advances of the
Affected Lender on the date of such sale (unless such Affected Lender
is an Impaired Lender, in which case no such compensation shall be due)
and (y) any additional compensation accrued for its account under
Sections 3.4(c), 11.5 and 11.6 to but excluding said date. Upon such
sale, the Purchasing Lender or Purchasing Lenders shall assume the
Affected Lender’s commitment, and the Affected Lender shall be released
from its obligations hereunder to a corresponding extent. The Affected
Lender, as assignor, such Purchasing Lender, as assignee, the Borrower
and the Agent, shall
enter into an Assignment Agreement pursuant to Section 13.8 hereof,
whereupon such Purchasing Lender shall be a Lender party to this
Agreement, shall be deemed to be an assignee hereunder and shall have
all the rights and obligations of a Lender with a Revolving Credit
Percentage equal to its ratable share of the then applicable
Revolving Credit Aggregate Commitment and the applicable Percentages
of the Term Loan of the Affected Lender, provided, however, that if
the Affected Lender does not execute such Assignment Agreement within
(2) Business Days of receipt thereof, the Agent may execute the
Assignment Agreement as the Affected Lender’s attorney-in-fact. Each
of the Lenders hereby irrevocably constitutes and appoints the Agent
and any officer or agent thereof, with full power of substitution, as
its true and lawful attorney-in-fact with full power and authority in
the name of such Lender or in its own name to execute and deliver an
Assignment Agreement while such Lender is an Affected Lender
hereunder (such power of attorney to be deemed coupled with an
interest and irrevocable). In connection with any assignment pursuant
to this Section 13.12, the Borrower or the Purchasing Lender shall
pay to the Agent the administrative fee for processing such
assignment referred to in Section 13.8; and

	 	(ii)	 	With respect to any Affected Lender that is an
Impaired Lender, the Borrower may, with the prior written consent of
the Agent and

111

 

	 	 	 	notwithstanding Section 10.3 of this Agreement or any
other provisions requiring pro rata payments to the Lenders, elect to
reduce the Revolving Credit Aggregate Commitment by the amount of the
Revolving Credit Aggregate Commitment of such Affected Lender and repay
all amounts (both any outstanding Term Loan Advances, subject to clause
(iii), below if such Affected Lender is a Defaulting Lender, and any
Revolving Credit Advances) owing to such Affected Lender, subject to
the following:

	 	(A)	 	such Affected Lender shall
receive an amount in cash equal to the outstanding principal
amount owing to such Affected Lender under this Agreement, plus
unpaid interest accrued thereon up to but excluding the date of
the repayment. In addition, and as a condition thereof, the
Borrower shall pay to the Affected Lender all fees accrued for
its account hereunder to but excluding the date of such
repayment, plus, if demanded by the Affected Lender within ten
(10) Business Days after such repayment, (x) the amount of any
compensation which would be due to the Affected Lender under
Section 11.1 if the Borrower had prepaid the outstanding
Eurocurrency-based Advances of the Affected Lender on the date
of such repayment and (y) any
additional compensation accrued for its account under
Sections 3.4(c), 11.5 and 11.6 to but excluding said date;

	 	(B)	 	after giving effect to the
reduction in the Revolving Credit Aggregate Commitment and the
payments required under subclause (A) above, (1) the Borrower shall
be in pro forma compliance with the financial covenants set
forth in Section 7.9 for the fiscal quarter  in which such
reduction and payments are made and (2) no Default or Event of Default shall exist or result there from (unless this requirement is waived by the Majority Lenders); 

	 	(C)	 	the stated dollar commitment of
any other Lender is not increased thereby without such Lender’s
consent; and

	 	(iii)	 	if such Affected Lender is a Defaulting Lender
and such Defaulting Lender holds no share of the Revolving Credit
Aggregate Commitment, or with respect to which the Borrower has elected
to reduce the Revolving Credit Aggregate Commitment of such Defaulting
Lender by such Defaulting Lender’s Revolving Credit Percentage in
accordance with the foregoing provisions of clause (ii) the Borrower
may repay all amounts owing to such Lender in connection with the Term
Loan, provided that (A) the Majority Lenders have consented to such
payment in writing, 

112

 

	 	 	 	(B) after giving effect to any reduction of the
Revolving Credit Aggregate Commitment or payments on the Revolving
Credit  under clause (ii)  above and payments on the Term Loan under this
clause (iii), (x) the Borrower shall be in pro forma compliance with the
financial covenants set forth in Section 7.9 for the fiscal quarter in
which such reduction and payments are made and (y) no Default or Event of Default
 shall exist or result there from (unless this requirement is waived by the Majority  Lenders), and (C) the stated dollar
commitment of any other Lender is not increased thereby without such
Lender’s consent.

     13.13 Withholding Taxes. If any Lender is not a “united states person” within the meaning of Section 7701(a)(30) of
the Internal Revenue Code, such Lender shall promptly (but in any event prior to the initial
payment of interest hereunder or prior to its accepting any assignment under Section 13.8 hereof,
as applicable) deliver to the Agent two original executed copies of (i) Internal Revenue Service
Form W-8BEN or any successor form specifying the applicable tax treaty between the United States
and the jurisdiction of such Lender’s domicile which provides for the exemption from withholding on
interest payments to such Lender, (ii) Internal Revenue Service Form W-8ECI or any successor form
evidencing that the income to be received by such Lender hereunder is effectively connected with
the conduct of a trade or business in the United States or (iii) other evidence satisfactory to the
Agent that such Lender is exempt from United States income tax withholding with respect to such
income; provided, however, that such Lender shall not be required to deliver to Agent the aforesaid
forms or other evidence with respect to Advances to Borrower, if such Lender has assigned its
entire interest hereunder (including its Revolving Credit Commitment Amount, any outstanding
Advances hereunder and participations in Letters
of Credit issued hereunder and any Notes issued to it by Borrower), to an Affiliate which is
incorporated under the laws of the United States or a state thereof, and so notifies the Agent.
Such Lender shall amend or supplement any such form or evidence as required to insure that it is
accurate, complete and non-misleading at all times. Promptly upon notice from the Agent of any
determination by the Internal Revenue Service that any payments previously made to such Lender
hereunder were subject to United States income tax withholding when made, such Lender shall pay to
the Agent the excess of the aggregate amount required to be withheld from such payments over the
aggregate amount actually withheld by the Agent. In addition, from time to time upon the reasonable
request and the sole expense of Borrower, each Lender and the Agent shall (to the extent it is able
to do so based upon applicable facts and circumstances), complete and provide Borrower with such
forms, certificates or other documents as may be reasonably necessary to allow Borrower, as
applicable, to make any payment under this Agreement or the other Loan Documents without any
withholding for or on the account of any tax under Section 10.1(d) hereof (or with such withholding
at a reduced rate), provided that the execution and delivery of such forms, certificates or other
documents does not adversely affect or otherwise restrict the rights and benefits (including
without limitation economic benefits) available to such Lender or the Agent, as the case may be,
under this Agreement or any of the other Loan Documents, or under or in connection with any
transactions not related to the transactions contemplated hereby.

     13.14 Taxes and Fees. Should any tax (other than as a result of a Lender’s failure to comply with Section 13.13
or a tax based upon the net income or capitalization of any Lender or 

113

 

the Agent by any jurisdiction
where a Lender or the Agent is or has been located), or recording or filing fee become payable in
respect of this Agreement or any of the other Loan Documents or any amendment, modification or
supplement hereof or thereof, Borrower agrees to pay the same, together with any interest or
penalties thereon arising from Borrower’s actions or omissions, and
 agrees to hold the Agent and
the Lenders harmless with respect thereto provided, however, that Borrower shall not be responsible
for any such interest or penalties which were incurred prior to the date that notice is given to
the Credit Parties of such tax or fees. Notwithstanding the foregoing, nothing contained in this
Section 13.14 shall affect or reduce the rights of any Lender or the Agent under Section 11.5
hereof.

     13.15 WAIVER OF JURY TRIAL. THE LENDERS, THE AGENT AND THE BORROWER KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY
RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY RELATED INSTRUMENT OR AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTION OF ANY
OF THEM. NEITHER THE LENDERS, THE AGENT NOR THE BORROWER SHALL SEEK TO CONSOLIDATE, BY COUNTERCLAIM
OR OTHERWISE, ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH
A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN
MODIFIED IN ANY RESPECT
OR RELINQUISHED BY THE LENDERS AND THE AGENT OR THE BORROWER EXCEPT BY A WRITTEN INSTRUMENT
EXECUTED BY ALL OF THEM.

     (a) In the event that the jury trial waiver contained in this Section 13.15 is not
enforceable, the parties elect to proceed as follows:

     (b) With the exception of the items specified in clause (c), below, any controversy, dispute
or claim (each, a “Claim”) between the parties arising out of or relating to this Agreement or any
other Loan Document will be resolved by a reference proceeding in California in accordance with the
provisions of Section 638 et seq. of the California Code of Civil Procedure (“CCP”), or their
successor sections, which shall constitute the exclusive remedy for the resolution of any Claim,
including whether the Claim is subject to the reference proceeding. Except as otherwise provided
in the Agreement, venue for the reference proceeding will be in the state or federal court in the
county or district where venue is otherwise appropriate under applicable law (the “Court”).

     (c) The matters that shall not be subject to a reference are the following: (i) non-judicial
foreclosure of any security interests in real or personal property, (ii) exercise of self-help
remedies (including, without limitation, set-off), (iii) appointment of a receiver and (iv)
temporary, provisional or ancillary remedies (including, without limitation, writs of attachment,
writs of possession, temporary restraining orders or preliminary injunctions). This Section does
not limit the right of any party to exercise or oppose any of the rights and remedies described in
clauses (i) and (ii) or to seek or oppose from a court of competent jurisdiction any of the items
described in clauses (iii) and (iv). The exercise of, or opposition to, any of those items does
not waive the right of any party to a reference pursuant to this Section.

114

 

     (d) The referee shall be a retired judge or justice selected by mutual written agreement of
the parties. If the parties do not agree within ten (10) days of a written request to do so by any
party, then, upon request of any party, the referee shall be selected
by the Presiding  Judge of the
Court (or his or her representative). A request for appointment of a referee may be heard on an ex
parte or expedited basis, and the parties agree that irreparable harm would result if ex parte
relief is not granted. Pursuant to CCP § 170.6, each party shall have one peremptory challenge to
the referee selected by the Presiding Judge of the Court (or his or her representative).

     (e) The parties agree that time is of the essence in conducting the reference proceedings.
Accordingly, the referee shall be requested, subject to change in the time periods specified herein
for good cause shown, to (a) set the matter for a status and trial-setting conference within
fifteen (15) days after the date of selection of the referee, (b) if practicable, try all issues of
law or fact within one hundred twenty (120) days after the date of the conference and (c) report a
statement of decision within twenty (20) days after the matter has been submitted for decision.

     (f) The referee will have power to expand or limit the amount and duration of discovery. The
referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s
failure to provide requested discovery for any reason whatsoever. Unless otherwise ordered, no
party shall be entitled to “priority” in conducting discovery, depositions
may be taken by either party upon seven (7) days written notice, and all other discovery shall
be responded to within fifteen (15) days after service. All disputes relating to discovery which
cannot be resolved by the parties shall be submitted to the referee whose decision shall be final
and binding.

     (g) Except as expressly set forth in this Section, the referee shall determine the manner in
which the reference proceeding is conducted including the time and place of hearings, the order of
presentation of evidence, and all other questions that arise with respect to the course of the
reference proceeding. All proceedings and hearings conducted before the referee, except for trial,
shall be conducted without a court reporter, except that when any party so requests, a court
reporter will be used at any hearing conducted before the referee, and the referee will be provided
a courtesy copy of the transcript. The party making such a request shall have the obligation to
arrange for and pay the court reporter. Subject to the referee’s power to award costs to the
prevailing party, the parties will equally share the cost of the referee and the court reporter at
trial.

     (h) The referee shall be required to determine all issues in accordance with existing case law
and the statutory laws of the State of California. The rules of evidence applicable to proceedings
at law in the State of California will be applicable to the reference proceeding. The referee
shall be empowered to enter equitable as well as legal relief, enter equitable orders that will be
binding on the parties and rule on any motion which would be authorized in a trial, including
without limitation motions for summary judgment or summary adjudication. The referee shall issue a
decision at the close of the reference proceeding which disposes of all claims of the parties that
are the subject of the reference. Pursuant to CCP § 644, such decision shall be entered by the
Court as a judgment or an order in the same manner as if the action had been tried by the Court and
any such decision will be final, binding and conclusive. The parties reserve the

115

 

right to appeal
from the final judgment or order or from any appealable decision or order entered by the referee.
The parties reserve the right to findings of fact, conclusions of
laws, a written statement of
decision, and the right to move for a new trial or a different judgment, which new trial, if
granted, is also to be a reference proceeding under this provision.

     (i) If the enabling legislation which provides for appointment of a referee is repealed (and
no successor statute is enacted), any dispute between the parties that would otherwise be
determined by reference procedure will be resolved and determined by arbitration. The arbitration
will be conducted by a retired judge or Justice, in accordance with the California Arbitration Act
§1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to
discovery set forth above shall apply to any such arbitration proceeding.

THE PARTIES RECOGNIZE AND AGREE THAT ALL DISPUTES RESOLVED UNDER THIS REFERENCE PROVISION WILL BE
DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO
CONSULT) WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL
BENEFIT OF ALL PARTIES, AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY CONTROVERSY, DISPUTE
OR CLAIM BETWEEN OR AMONG THEM WHICH ARISES OUT OF OR IS RELATED TO THE AGREEMENT.

     13.16 USA Patriot Act Notice. Pursuant to Section 326 of the USA Patriot Act, the Agent and the Lenders hereby notify
the Credit Parties that if they or any of their Subsidiaries open an account, including any loan,
deposit account, treasury management account, or other extension of credit with Agent or any
Lender, the Agent or the applicable Lender will request the applicable Person’s name, tax
identification number, business address and other information necessary to identify such Person
(and may request such Person’s organizational documents or other identifying documents) to the
extent necessary for the Agent and the applicable Lender to comply with the USA Patriot Act.

     13.17 Complete Agreement; Conflicts. This Agreement, the Notes (if issued), any Requests for Revolving Credit Advance, Requests
for Swing Line Advance and Term Loan Rate Requests, and the Loan Documents contain the entire
agreement of the parties hereto, superseding all prior agreements, discussions and understandings
relating to the subject matter hereof, and none of the parties shall be bound by anything not
expressed in writing. In the event of any conflict between the terms of this Agreement and the
other Loan Documents, this Agreement shall govern.

     13.18 Severability. In case any one or more of the obligations of the Credit Parties under this Agreement, the
Notes or any of the other Loan Documents shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining obligations of the Credit
Parties shall not in any way be affected or impaired thereby, and such invalidity, illegality or
unenforceability in one jurisdiction shall not affect the validity, legality or enforceability of
the obligations of the Credit Parties under this Agreement, the Notes or any of the other Loan
Documents in any other jurisdiction.

116

 

     13.19 Table of Contents and Headings; Section References. The table of contents and the headings of the various subdivisions hereof are for
convenience of reference only and shall in no way modify or affect any of the terms or provisions
hereof and references herein to “sections,” “subsections,” “clauses,” “paragraphs,”
“subparagraphs,” “exhibits” and “schedules” shall be to sections, subsections, clauses, paragraphs,
subparagraphs, exhibits and schedules, respectively, of this Agreement unless otherwise
specifically provided herein or unless the context otherwise clearly indicates.

     13.20 Construction of Certain Provisions. If any provision of this Agreement or any of the Loan Documents refers to any action to be
taken by any Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person, whether or not
expressly specified in such provision.

     13.21 Independence of Covenants. Each covenant hereunder shall be given independent effect (subject to any exceptions stated
in such covenant) so that if a particular action or condition is not permitted by any such covenant
(taking into account any such stated exception), the fact that it would be permitted by an
exception to, or would be otherwise within the limitations of, another covenant shall not avoid the
occurrence of a Default or an Event of Default.

     13.22 Electronic Transmissions.

	 	(a)	 	Each of the Agent, the Credit Parties, the Lenders, and each of
their Affiliates is authorized (but not required) to transmit, post or
otherwise make or communicate, in its sole discretion, Electronic Transmissions
in connection with any Loan Document and the transactions contemplated therein.
The Borrower and each other Credit Party hereby acknowledges and agrees that
the use of Electronic Transmissions is not necessarily secure and that there
are risks associated with such use, including risks of interception, disclosure
and abuse and each indicates it assumes and accepts such risks by hereby
authorizing the transmission of Electronic Transmissions.
	 
	 	(b)	 	All uses of an E-System shall be governed by and subject to, in
addition to Section 13.6 and this Section 13.22, separate terms and conditions
posted or referenced in such E-System and related contractual obligations
executed by the Agent, the Credit Parties and the Lenders in connection with
the use of such E-System.
	 
	 	(c)	 	All E-Systems and Electronic Transmissions shall be provided
“as is” and “as available”. None of the Agent or any of its Affiliates
warrants the accuracy, adequacy or completeness of any E-Systems or Electronic
Transmission, and each disclaims all liability for errors or omissions therein.
No warranty of any kind is made by the Agent or any of its Affiliates in
connection with any E Systems or Electronic Transmission, including any
warranty of merchantability, fitness for a particular purpose, non-infringement
of third-party rights or freedom from viruses or other  

117

 

	 	 	 	code defects. The
Agent, the Credit Parties and the Lenders agree that the Agent has no
responsibility for maintaining or providing any equipment, software, services
or any testing required in connection with any Electronic Transmission or
otherwise required for any E-System.

     13.23 Advertisements. The Agent and the Lenders may disclose the names of the Credit Parties and the existence of
the Indebtedness in general advertisements and trade publications.

     13.24 Reliance on and Survival of Provisions. All terms, covenants, agreements, representations and warranties of the Credit Parties to
any of the Loan Documents made herein or in any of the Loan Documents or in any certificate,
report, financial statement or other document furnished by or on behalf of any Credit Party in
connection with this Agreement or any of the Loan Documents shall be deemed to have been relied
upon by the Lenders, notwithstanding any investigation heretofore or hereafter made by any Lender
or on such Lender’s behalf, and those covenants and agreements of the Borrower set forth in Section
13.5 hereof (together with any other indemnities of any Credit Party contained elsewhere in this
Agreement or in any of the other Loan Documents) and of Lenders set forth in Section 12.7 hereof
shall survive the repayment in full of the Indebtedness and the termination of any commitment to
extend credit.

     13.25 Amendment and Restatement; Assignment and Assumptions. Except as otherwise set forth herein, this Agreement is intended to and does, effective on
the Effective Date, completely amend and restate, without novation, the Prior Credit Agreement.

     13.26 Individual Employee Liability to Lenders. The parties acknowledge that, from time to time, employees of Borrower may be required to
execute and deliver, in their capacity as an officer, director or employee of Borrower, certain
certificates to Agent and Lenders in relation to this Agreement or the transactions contemplated by
this Agreement (“Certificates”). Agent and Lenders shall have no cause of action against any
individual employee of Borrower based on any inaccuracy in any Certificate executed by or delivered
to Agent and Lenders by such employee provided the employee does not knowingly provide false or
misleading Certificates, and has acted in good faith.

[Signatures Follow On Succeeding Page]

118

 

     WITNESS the due execution hereof as of the day and year first above written.

	 	 	 	 
	COMERICA BANK,	 
	as Administrative Agent	 
	 
	 	 	 
	By:
	 	/s/ Philip Koblis	 
	Its:
	 	SVP	 

COMERICA BANK,

as a Lender, as Issuing Lender

and as Swing Line Lender

	 	 	 	 
	By:
	 	/s/ Philip Koblis	 
	Its:
	 	SVP	 

 

 

	 	 	 	 	 
	QUINSTREET, INC.	 	 
	 	 	 	 	 
	By:	 	/s/ Douglas J. Valenti	 	 
	 	 	 
	 	 
	Its:	 	Douglas J. Valenti, CEO	 	 
	 	 	 
	 	 

 

CREDIT SUISSE AG, Cayman Islands Branch, as a Lender

	 	 	 	 	 
	By:
	 	/s/ Bill O’Daly	 	 
	Its:
	 	Bill O’Daly, Director	 	 

 

 

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

	 	 	 	 	 
	By:
	 	/s/ Illegible	 	 
	Its:
	 	Senior Vice President	 	 

 

 

UNION BANK OF CALIFORNIA,

as a Lender

	 	 	 	 	 
	By:
	 	/s/ Illegible	 	 
	Its:
	 	Senior Vice President	 	 

 

 

J.P.MORGAN CHASE, N.A.,

as a Lender

	 	 	 	 	 
	By:
	 	/s/ John G. Kowalczuk	 	 
	Its:
	 	John G. Kowalczuk, Executive Director	 	 

 

 

Schedule 1.1

Applicable Margin Grid

Revolving Credit and Term Loan Facility

(basis points per annum)

	 	 	 	 	 	 	 	 	 
	Basis for Pricing	 	Level I	 	Level II	 	Level III	 	Level IV
	Funded Debt to EBITDA Ratio*
	 	<0.75 to 1.0	 	30.75 to 1.0
	 	31.5 to 1.0
	 	32.25 to 1.0
	 
	 	 	 	and
	 	and
	 	 
	 
	 	 	 	<1.5 to 1.0	 	<2.25 to 1.0	 	 
	Revolving Credit Eurodollar
Margin
	 	212.5	 	237.5	 	262.5	 	287.5
	Revolving Credit Base Rate
Margin
	 	100.00	 	100.0	 	125.0	 	150.0
	Revolving Credit Facility Fee
	 	37.50	 	37.50	 	37.50	 	37.50
	Letter of Credit Fees
(exclusive of facing fees)
	 	212.5	 	237.5	 	262.5	 	287.5
	Term Loan Eurodollar Margin
	 	250.0	 	275.0	 	300.0	 	325.0
	Term Loan Base Rate Margin
	 	100.00	 	100.0	 	125.0	 	150.0

 

			
	*	 	Definitions as set forth in the Credit Agreement.

 

 

Schedule 1.2

Percentages and Allocations

Revolving Credit and Term Loan Facilities

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	REVOLVING	 	REVOLVING	 	 	 	 	 	 	 	 
	 	 	CREDIT	 	CREDIT	 	TERM LOAN	 	TERM LOAN	 	WEIGHTED	 	TOTAL
	LENDERS	 	PERCENTAGE	 	ALLOCATIONS	 	PERCENTAGE	 	ALLOCATIONS	 	PERCENTAGE	 	ALLOCATION
	Comerica Bank
	 	 	25.7142857	%	 	$	36,000,000	 	 	 	25.7142857	%	 	$	9,000,000	 	 	 	25.7142857	%	 	$	45,000,000	 
	Union Bank of
California
	 	 	20.0000000	%	 	$	28,000,000	 	 	 	20.0000000	%	 	$	7,000,000	 	 	 	20.0000000	%	 	$	35,000,000	 
	Bank of America
	 	 	22.8571429	%	 	$	32,000,000	 	 	 	22.8571429	%	 	$	8,000,000	 	 	 	22.8571429	%	 	$	40,000,000	 
	Credit Suisse
	 	 	17.1428571	%	 	$	24,000,000	 	 	 	17.1428571	%	 	$	6,000,000	 	 	 	17.1428571	%	 	$	30,000,000	 
	J.P. Morgan Chase
	 	 	14.2857143	%	 	$	20,000,000	 	 	 	14.32857143	%	 	$	5,000,000	 	 	 	14.32857143	%	 	$	25,000,000	 
	TOTALS
	 	 	100	%	 	$	140,000,000	 	 	 	100	%	 	$	35,000,000	 	 	 	100	%	 	$	175,000,000	 

 

 

SCHEDULE 5.1(c)

	 	 	 
	Quinstreet, Inc.

	 	Delaware
	 
	 	 
	Quinstreet Properties, Inc.

	 	California
	 
	 	 
	Quinstreet LLC

	 	Illinois
	 
	 	 
	Quinstreet Media, Inc.

	 	Nevada
	 
	 	 
	Cyberspace Communications Corporation

	 	Oklahoma
	 
	 	 
	Reliableremodeler.com, Inc.

	 	Delaware
	 
	 	 
	HQ Publications LLC

	 	Illinois

 

 

EXHIBIT A

FORM OF REQUEST FOR REVOLVING CREDIT ADVANCE

			
	 	 	 
	No.                     
	 	Dated:                     , 20___

	TO:	 	Comerica Bank (“Agent”)
	 
	RE:	 	Amended and Restated Revolving Credit and Term Loan Agreement (“Agreement”) is made as of the 13th day of
January, 2010, (as amended, restated or otherwise modified from time to time, the “Credit Agreement”) by and among the
financial institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial
institutions collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such capacity, the
“Agent”) and QuinStreet, Inc. (“Borrower”).

         Pursuant to the terms and conditions of the Credit Agreement, Borrower hereby requests an
Advance from Lenders, as described herein:

	(A)	 	Date of Advance:                                         

	(B)	 	o (check if applicable)
	 
	 	 	This Advance is or includes a whole or partial refunding/conversion of:
	 
	 	 	Advance No(s).                                                             
	 
	(C)	 	Type of Advance (check only one):
	 
	 	 	o Base Rate Advance
	 
	 	 	o Eurodollar-based Advance
	 
	(D)	 	Amount of Advance:
	 
	 	 	$                                        
	 
	(E)	 	Interest Period (applicable to Eurodollar-based Advances)
	 
	 	 	                     months
	 
	(F)	 	Disbursement Instructions
	 
	 	 	o Comerica Bank Account No.                     
	 
	 	 	o Other:                                                             
	 
	 	 	                                                                           

 

     Borrower certifies to the matters specified in Section 2.3(f) of the Credit Agreement.

     Capitalized terms used herein, except as defined to the contrary, have the meanings given them
in the Credit Agreement.

	 	 	 	 	 	 	 
	 	 	QUINSTREET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

Agent Approval:                                         

2

 

EXHIBIT B

FORM OF REVOLVING CREDIT NOTE

			
	 	 	 
	$                                        
	 	                    , 20___

     On or before the Revolving Credit Maturity Date, FOR VALUE RECEIVED, QuinStreet, Inc.
(“Borrower”) promises to pay to the order of [insert name of applicable financial institution]
(“Payee”) at San Jose, California, care of Agent, in lawful money of the United States of America,
so much of the sum of [Insert Amount derived from Percentages] Dollars ($______), as may
from time to time have been advanced by Payee and then be outstanding hereunder pursuant to the
Amended and Restated Revolving Credit and Term Loan Agreement (“Agreement”) is made as of the
13th day of January, 2010, by and among the financial institutions from time to time
signatory thereto (individually a “Lender,” and any and all such financial institutions
collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such
capacity, the “Agent”), and Borrower. Each of the Revolving Credit Advances made hereunder shall
bear interest at the Applicable Interest Rate from time to time applicable thereto under the Credit
Agreement or as otherwise determined thereunder, and interest shall be computed, assessed and
payable on the unpaid principal amount of each Revolving Credit Advance made by the Payee from the
date of such Revolving Credit Advance until paid at the rate and at the times set forth in the
Credit Agreement.

     This Note is a note under which Revolving Credit Advances (including refundings and
conversions), repayments and readvances may be made from time to time, but only in accordance with
the terms and conditions of the Credit Agreement. This Note evidences borrowings under, is subject
to, is secured in accordance with, and may be accelerated or matured under, the terms of the Credit
Agreement, to which reference is hereby made. Capitalized terms used herein, except as defined to
the contrary, shall have the meanings given them in the Credit Agreement.

     This Note shall be interpreted and the rights of the parties hereunder shall be determined
under the laws of, and enforceable in, the State of California.

     The Borrower hereby waives presentment for payment, demand, protest and notice of dishonor and
nonpayment of this Note and agrees that no obligation hereunder shall be discharged by reason of
any extension, indulgence, release, or forbearance granted by any holder of this Note to any party
now or hereafter liable hereon or any present or subsequent owner of any property, real or
personal, which is now or hereafter security for this Note.

*
  *   *

[SIGNATURES FOLLOW ON SUCCEEDING PAGE]

 

     Nothing herein shall limit any right granted Payee by any other instrument or by law.

	 	 	 	 	 	 	 
	 	 	QUINSTREET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

2

 

EXHIBIT C

FORM OF SWING LINE NOTE

			
	 	 	 
	$5,000,000
	 	                    , 20___

     On or before the Revolving Credit Maturity Date, FOR VALUE RECEIVED, QuinStreet, Inc.
(“Borrower”) promises to pay to the order of Comerica Bank (“Swing Line Lender”) at San Jose,
California in lawful money of the United States of America, so much of the sum of [Insert
Amount derived from Percentages] Dollars ($                    ), as may from time to time have been
advanced to the Borrower by the Swing Line Lender and then be outstanding hereunder pursuant to the
Amended and Restated Revolving Credit and Term Loan Agreement (“Agreement”) is made as of the
13th day of January, 2010, by and among the financial institutions from time to time
signatory thereto (individually a “Lender,” and any and all such financial institutions
collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such
capacity, the “Agent”), and Borrower, together with interest thereon as hereinafter set forth.

     Each of the Swing Line Advances made hereunder shall bear interest at the Applicable Interest
Rate from time to time applicable thereto under the Credit Agreement or as otherwise determined
thereunder, and interest shall be computed, assessed and payable on the unpaid principal amount of
each Swing Line Advance made by the Swing Line Lender from the date of such Swing Line Advance
until paid at the rates and at the times set forth in the Credit Agreement.

     This Note is a Swing Line Note under which Swing Line Advances (including refundings and
conversions), repayments and readvances may be made from time to time by the Swing Line Lender, but
only in accordance with the terms and conditions of the Credit Agreement (including any applicable
sublimits). This Note evidences borrowings under, is subject to, is secured in accordance with,
and may be accelerated or matured under, the terms of the Credit Agreement to which reference is
hereby made. Capitalized terms used herein, except as defined to the contrary, shall have the
meanings given them in the Credit Agreement.

     This Note shall be interpreted and the rights of the parties hereunder shall be determined
under the laws of, and enforceable in, the State of California.

     The Borrower hereby waives presentment for payment, demand, protest and notice of dishonor and
nonpayment of this Note and agrees that no obligation hereunder shall be discharged by reason of
any extension, indulgence, release, or forbearance granted by any holder of this Note to any party
now or hereafter liable hereon or any present or subsequent owner of any property, real or
personal, which is now or hereafter security for this Note.

*   *   *

[SIGNATURES FOLLOW ON SUCCEEDING PAGE]

 

     Nothing herein shall limit any right granted Swing Line Lender by any other instrument or by
law.

	 	 	 	 	 	 	 
	 	 	QUINSTREET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

2

 

EXHIBIT D

FORM OF REQUEST FOR SWING LINE ADVANCE

			
	 	 	 
	No.              
       
	 	Dated:           
         

	 	 	 
	TO:

	 	Comerica Bank (“Swing Line Lender”)
	 
	 	 
	RE:

	 	Amended and Restated Revolving Credit and Term Loan
Agreement (“Agreement”) is made as of the
13th day of January, 2010, (as amended,
restated or otherwise modified from time to time,
the “Credit Agreement”) by and among the financial
institutions from time to time signatory thereto
(individually a “Lender,” and any and all such
financial institutions collectively the “Lenders”),
Comerica Bank, as Administrative Agent for the
Lenders (in such capacity, the “Agent”) and
QuinStreet, Inc. (“Borrower”).

             
Pursuant to the terms and conditions of the Credit Agreement, Borrower hereby requests an
Advance from the Swing Line Lender, as described herein:

	 	 	 
	(A)

	 	Date of Advance:          
                  
             
	 
	 	 
	(B)

	 	o   (check if applicable)
	 
	 	 
	 

	 	This Advance is or includes a whole or partial refunding/conversion of:
	 
	 	 
	 

	 	Advance No(s).              
                       
                       
	 
	 	 
	(C)

	 	Type of Advance (check only one):—
	 
	 	 
	 

	 	o   Base Rate Advance
	 
	 

	 	o   Quoted Rate Advance
	 
	 	 
	(D)

	 	Amount of Advance:
	 
	 	 
	 

	 	$                  
  
	 
	 	 
	(E)

	 	Interest Period (applicable to Quoted Rate Advances)
	 
	 	 
	 

	 	                     months
	 
	 	 
	(F)

	 	Disbursement Instructions

	 	 	 	 	 	 	 
	o   Comerica Bank Account No.	 	 	 	 
	 

	 	 	 	 	 	 
	 
	
o   Other:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

 

 

          Borrower certifies to the matters specified in Section 2.5(c)(vi) of the Credit Agreement.

          Capitalized terms used herein, except as defined to the contrary, have the meanings given them
in the Credit Agreement.

	 	 	 	 	 
	 	QUINSTREET, INC. 

 	 
	 	By:  	 	 
	 	 	 	 
	 	Its:  	 	 

2 

 

	 	 	 	 	 

EXHIBIT E

FORM OF NOTICE OF ISSUANCE OF LETTER OF CREDIT

	 	 	 
	TO:

	 	Lenders
	 
	 	 
	RE:

	 	Issuance of Letter of Credit pursuant to Article 3 of the Amended and Restated Revolving Credit and Term Loan Agreement (“Agreement”) is made as of the
13th day of January, 2010, (as amended, restated or otherwise modified from time to time, the “Credit Agreement”) by and among the financial
institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial institutions collectively the “Lenders”), Comerica
Bank, as Administrative Agent for the Lenders (in such capacity, the “Agent”) and QuinStreet, Inc. (“Borrower”).
	 
	 	 
	 

	 	On         
            , 20___,1 Agent, in accordance with Article 3 of the
Credit Agreement, issued its Letter of Credit number         
            , in favor of      
               2 for the account
of                       
                  .3 The face amount of such Letter of Credit is $      
              . The amount
of each Lender’s participation in such Letter of Credit is as follows:4

	 	 	 	 	 
	[Lender]
	 	$	 	 
	 
	 	 	 	 
	[Lender]
	 	$	 	 
	 
	 	 	 	 
	[Lender]
	 	$	 	 
	 
	 	 	 	 
	[Lender]
	 	$	 	 
	 
	 	 	 	 

          This notification is delivered this                      day of                     , 20___, pursuant to Section 3.3
of the Credit Agreement. Except as otherwise defined, capitalized terms used herein have the
meanings given them in the Credit Agreement.

	 	 	 	 	 
	 	Signed:

COMERICA BANK, as Agent

 	 
	 	By:  	 	 
	 	 	 	 
	 	Its:  	 	 
	 

 

			
	1	 	Date of Issuance
	 
	2	 	Beneficiary
	 
	3	 	Name of applicable Borrower
	 
	4	 	Amounts based on Percentages

[This form of Letter of Credit Notice (including footnotes) is subject in
all respects to the terms and conditions of the Credit Agreement which shall
govern in the event of any inconsistencies or omissions.]

 

 

EXHIBIT F

FORM OF SECURITY AGREEMENT

Filed as separate exhibit.

 

 

EXHIBIT G

[Reserved]

 

 

EXHIBIT H

FORM OF ASSIGNMENT AGREEMENT

Date:                     

			
	To:	 	Borrower

			
		 	     and

			
		 	Comerica Bank (“Agent”)

			
	Re:	 	Amended and Restated Revolving Credit and Term Loan Agreement
(“Agreement”) is made as of the 13th day of January, 2010,
(as amended, restated or otherwise modified from time to time, the
“Credit Agreement”) by and among the financial institutions from time
to time signatory thereto (individually a “Lender,” and any and all
such financial institutions collectively the “Lenders”), Comerica
Bank, as Administrative Agent for the Lenders (in such capacity, the
“Agent”) and QuinStreet, Inc. (“Borrower”).

Ladies and Gentlemen:

     Reference is made to Section 13.8 of the Credit Agreement. Unless otherwise defined herein or
the context otherwise requires, all initially capitalized terms used herein without definition
shall have the meanings specified in the Credit Agreement.

     This Agreement constitutes notice to each of you of the proposed assignment and delegation by
[insert name of assignor] (the “Assignor”) to [insert name of assignee] (the
“Assignee”), and, subject to the terms and conditions of the Credit Agreement, the Assignor hereby
sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor,
effective on the “Effective Date” (as hereafter defined) that undivided interest in each of
Assignor’s rights and obligations under the Credit Agreement and the other Loan Documents in the
amounts as set forth on the attached Schedule 1, such that, after giving effect to the foregoing
assignment and assumption, and the concurrent assignment by Assignor to Assignee on the date
hereof, the Assignee’s interest in the Revolving Credit (and participations in any outstanding
Letters of Credit and Swing Line Advances) and the Term Loan shall be as set forth in the attached
Schedule 2 with respect to the Assignee.

     The Assignor hereby instructs the Agent to make all payments from and including the Effective
Date hereof in respect of the interest assigned hereby, directly to the Assignee. The Assignor and
the Assignee agree that all interest and fees accrued up to, but not including, the Effective Date
of the assignment and delegation being made hereby are the property of the Assignor, and not the
Assignee. The Assignee agrees that, upon receipt of any such interest or fees accrued up to the
Effective Date, the Assignee will promptly remit the same to the Assignor.

 

 

     The Assignee hereby confirms that it has received a copy of the Credit Agreement and the
exhibits and schedules referred to therein, and all other Loan Documents which it considers
necessary, together with copies of the other documents which were required to be delivered under
the Credit Agreement as a condition to the making of the loans thereunder. The Assignee
acknowledges and agrees that it: (a) has made and will continue to make such inquiries and has
taken and will take such care on its own behalf as would have been the case had its Percentage been
granted and its loans been made directly by such Assignee to the Borrower without the intervention
of the Agent, the Assignor or any other Lender; and (b) has made and will continue to make,
independently and without reliance upon the Agent, the Assignor or any other Lender, and based on
such documents and information as it has deemed appropriate, its own credit analysis and decisions
relating to the Credit Agreement. The Assignee further acknowledges and agrees that neither the
Agent, nor the Assignor has made any representations or warranties about the creditworthiness of
the Borrower or any other party to the Credit Agreement or any other of the Loan Documents, or with
respect to the legality, validity, sufficiency or enforceability of the Credit Agreement, or any
other of the Loan Documents. This assignment shall be made without recourse to or warranty by the
Assignor, except as set forth herein.

     Assignee represents and warrants that it is a Person to which assignments are permitted
pursuant to Section 13.8 of the Credit Agreement.

     Except as otherwise provided in the Credit Agreement, effective as of the Effective Date:

	 	(a)	 	the Assignee: (i) shall be deemed automatically to have become a party to the
Credit Agreement and the other Loan Documents, to have assumed all of the Assignor’s
obligations thereunder to the extent of the Assignee’s percentage referred to in the
second paragraph of this Assignment Agreement, and to have all the rights and
obligations of a party to the Credit Agreement and the other Loan Documents, as if it
were an original signatory thereto to the extent specified in the second paragraph
hereof; and (ii) agrees to be bound by the terms and conditions set forth in the Credit
Agreement and the other Loan Documents as if it were an original signatory thereto; and

	 	(b)	 	the Assignor’s obligations under the Credit Agreement and the other Loan
Documents shall be reduced by the Percentage referred to in the second paragraph of
this Assignment Agreement.

     As used herein, the term “Effective Date” means the date on which all of the following have
occurred or have been completed, as reasonably determined by the Agent:

	 	(1)	 	the delivery to the Agent of an original of this Assignment Agreement executed
by the Assignor and the Assignee;

	 	(2)	 	the payment to the Agent, of all accrued fees, expenses and other items for
which reimbursement is then owing under the Credit Agreement;

	 	(3)	 	the payment to the Agent of the processing fee referred to in Section
13.8(d)(1) of the Credit Agreement; and

2

 

	 	(4)	 	all other restrictions and items noted in Section 13.8 of the Credit Agreement
have been completed.

The Agent shall notify the Assignor and the Assignee, along with Borrower, of the Effective Date.

     The Assignee hereby advises each of you of the following administrative details with respect
to the assigned loans:

	 	(A)	 	Address for Notices:
	 
	 	 	 	Institution Name:
	 
	 	 	 	Address:
	 
	 	 	 	Attention:
	 
	 	 	 	Telephone:
	 
	 	 	 	Facsimile:
	 
	 	(B)	 	Payment Instructions:
	 
	 	(C)	 	Proposed effective date of assignment.

     The Assignee has delivered to the Agent (or is delivering to the Agent concurrently herewith)
the tax forms referred to in Section 13.13 of the Credit Agreement to the extent required
thereunder, and other forms reasonably requested by the Agent. The Assignor has delivered to the
Agent (or shall promptly deliver to Agent following the execution hereof), the original of each
Note held by the Assignor under the Credit Agreement.

     The laws of the State of California shall govern the validity, interpretation and enforcement
of this Agreement.

* * *

Signatures Follow on Succeeding Pages

3

 

     Please evidence your consent to and acceptance of the proposed assignment and delegation set
forth herein by signing and returning counterparts hereof to the Assignor and the Assignee.

	 	 	 	 	 	 	 
	 	 	[ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	[ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

4

 

ASSIGNMENT AGREEMENT ACCEPTED AND CONSENTED TO

this ______ day of ______, 20 ______ BY:

	 	 	 	 	 
	COMERICA BANK, as Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	QUINSTREET, INC.*	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 

 

[*Borrower’s consent will be required except as specified in Section 13.8 of the Credit Agreement.]

[This form of Assignment Agreement (including footnotes) is subject in all respects to the terms
and conditions of the Credit Agreement which shall govern in the event of any inconsistencies or
omissions.]

5

 

EXHIBIT I

FORM OF GUARANTY

 

 

GUARANTY

     This GUARANTY is made as of September 29, 2008 and is effective as of the Effective Date by
the undersigned guarantors (each a “Guarantor” and any and all collectively, the
“Guarantors”) to Comerica Bank, as the Agent (“Agent”) for and on behalf of the
Lenders (as defined below).

R E C I T A L S:

     2. QuinStreet, Inc. (“Borrower”) has entered into that certain Revolving Credit and
Term Loan Agreement dated as of September 29, 2008 (as amended, supplemented, amended and restated
or otherwise modified from time to time the “Credit Agreement”) with each of the financial
institutions party thereto (collectively, including their respective successors and assigns, the
“Lenders”) and the Agent pursuant to which the Lenders have agreed, subject to the
satisfaction of certain terms and conditions, to extend or to continue to extend financial
accommodations to the Borrower, as provided therein.

     3. As a condition to entering into and performing their respective obligations under the
Credit Agreement, the Lenders and the Agent have required that each of the Guarantors provide to
the Agent, for and on behalf of the Lenders, this Guaranty.

     4. Each of the Guarantors desires to see the success of the Borrower and furthermore, each of
the Guarantors shall receive direct and/or indirect benefits from extensions of credit made or to
be made pursuant to the Credit Agreement to the Borrower.

     5. The business operations of the Borrower and the Guarantors are interrelated and complement
one another, and such entities have a common business purpose; and (i) to permit their
uninterrupted and continuous operations, such entities now require and will from time to time
hereafter require funds and credit accommodations for general business purposes and (ii) the
proceeds of advances under the credit facilities extended under the Credit Agreement will directly
or indirectly benefit the Borrowers and the Guarantors hereunder, severally and jointly.

     6. The Agent is acting as agent for the Lenders pursuant to Section 12 of the Credit
Agreement.

     NOW, THEREFORE, to induce each of the Lenders to enter into and perform its obligations under
the Credit Agreement, each of the Guarantors has executed and delivered this guaranty (as amended
and otherwise modified from time to time, the “Guaranty”).

     (a) Definitions. Unless otherwise provided herein, all capitalized terms in this
Guaranty shall have the meanings specified in the Credit Agreement. The term “Lenders” as
used herein shall include any successors or assigns of the Lenders in accordance with the Credit
Agreement. In addition, the following term shall have the following meaning:

2

 

“Guaranteed Obligations” shall mean, collectively, all indebtedness,
liabilities and obligations of the Borrower to the Lenders of every kind, nature or
description under the Credit Agreement or any other Loan Document, including,
without limitation, principal, interest (including interest accruing on or after the
filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding by or against Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such a proceeding and including,
without limitation, interest at the highest allowable per annum rate specified in
any document, instrument or agreement applicable to any of the indebtedness),
reimbursement obligations, fees, indemnities, and reasonable costs and expenses
(including without limitation, all reasonable fees and disbursements of counsel to
the Agent or any Lender) or otherwise, and any liabilities of any Credit Party to
Agent or any Lender arising in connection with any Lender Products and payment
obligations of any Credit Party to Agent or any Lender arising under Hedging
Transactions evidenced by Hedging Agreements, and any and all other liabilities and
obligations, direct or indirect, absolute or contingent, due or to become due, now
existing or hereafter incurred, which may arise under, out of, or in connection with
the Credit Agreement and the other Loan Documents, whether such indebtedness is now
existing or hereafter arising.

     (b) Guaranty. Each of the Guarantors, hereby, jointly and severally, guarantees to the
Lenders the due and punctual payment to the Lenders when due, whether by acceleration or otherwise,
of the Guaranteed Obligations. Each of such Guarantors further jointly and severally agree to pay
any and all expenses (including reasonable attorneys’ fees), that may be paid or incurred by the
Agent or any Lender in enforcing or preserving rights with respect to or collecting any or all of
the Guaranteed Obligations and/or enforcing any rights with respect to, or collecting against the
Guarantors under this Guaranty.

     (c) Unconditional Character of Guaranty. The obligations of each of the Guarantors
under this Guaranty shall be absolute and unconditional, and shall be a guaranty of payment and not
of collection, irrespective of the validity, regularity or enforceability of the Credit Agreement
or any of the other Loan Documents, or any provision thereof, the absence of any action to enforce
the same, any waiver or consent with respect to or any amendment of any provision thereof (provided
that any amendment of this Guaranty shall be in accordance with the terms hereof), the recovery of
any judgment against any Person or action to enforce the same, any failure or delay in the
enforcement of the obligations of the Borrower under the Credit Agreement or any of the other Loan
Documents, or any setoff, counterclaim, recoupment, limitation, defense or termination whether with
or without notice to the Guarantors. Each of the Guarantors hereby waives diligence, demand for
payment, filing of claims with any court, any proceeding to enforce any provision of the Credit
Agreement or any of the other Loan Documents, any right to require a proceeding first against
Borrower or against any other Guarantor or other Person providing collateral, or to exhaust any
security for the performance of the obligations of the Borrower, any protest, presentment, notice
or demand whatsoever, and each Guarantor hereby covenants that this Guaranty shall not be
terminated, discharged or released until, subject to Section 16 hereof, final payment in full of
all of the Guaranteed Obligations due and to become due from the Borrower, no Letters of Credit
shall be outstanding and the termination of any and all commitments to extend credit (whether
optional or obligatory)

3

 

under the Credit Agreement or any other Loan Document, and only to the extent of any such
payment, performance and discharge. Each Guarantor hereby further covenants that no security now
or subsequently held by the Agent or the Lenders for the payment of the Guaranteed Obligations
(including, without limitation, any security for any of the foregoing), whether in the nature of a
security interest, pledge, lien, assignment, setoff, suretyship, guaranty, indemnity, insurance or
otherwise, and no act, omission or other conduct of the Agent or the Lenders in respect of such
security, shall affect in any manner whatsoever the unconditional obligations of this Guaranty,
and that the Agent and each of the Lenders in their respective sole discretion and without notice
to any of the Guarantors, may release, exchange, enforce, apply the proceeds of and otherwise deal
with any such security without affecting in any manner the unconditional obligations of this
Guaranty.

     Without limiting the generality of the foregoing, the obligations of the Guarantors under this
Guaranty, and the rights of the Agent to enforce the same, on behalf of the Lenders by proceedings,
whether by action at law, suit in equity or otherwise, shall not be in any way affected to the
extent permitted by applicable law, by (i) any insolvency, bankruptcy, liquidation, reorganization,
readjustment, composition, dissolution, winding up or other proceeding involving or affecting
Borrower, any or all of the Guarantors or any other Person or any of their respective Affiliates
including any discharge of, or bar or stay against collecting, all or any of the Guaranteed
Obligations in or as a result of any such proceeding; (ii) any change in the ownership of any of
the capital stock (or other ownership interests) of Borrower or any or all of the Guarantors, or
any other Person providing collateral for any of the Guaranteed Obligations, or any of their
respective Affiliates; (iii) the election by the Agent or any Lender, in any bankruptcy proceeding
of any Person, to apply or not apply Section 1111(b)(2) of the Bankruptcy Code; (iv) any extension
of credit or the grant of any security interest or lien under Section 364 of the Bankruptcy Code;
(v) any agreement or stipulation with respect to the provision of adequate protection in any
bankruptcy proceeding of any Person; (vi) the avoidance of any security interest or lien in favor
of the Agent or any Lender for any reason; (vii) any action taken by the Agent or any Lender that
is authorized by this paragraph or any other provision of this Guaranty; or (viii) any other
principle or provision of law, statutory or otherwise, which is or might be in conflict with the
terms hereof.

     (d) Waivers. Each of the Guarantors hereby waives to the fullest extent possible
under applicable law:

          (i) any defense based upon or arising by reason of:

               (1) the doctrine of marshaling of assets or upon an election of remedies by Agent or the
Lenders, including, without limitation, an election to proceed by non-judicial rather than judicial
foreclosure;

               (2) any statute or rule of law which provides that the obligation of a surety must be neither
larger in amount nor in other respects more burdensome than that of the principal;

               (3) any disability or other defense of Borrower or any other Person;

4

 

               (4) the cessation or limitation from any cause whatsoever, other than final and irrevocable
payment in full, of the Guaranteed Obligations;

               (5) any lack of authority of any officer, director, partner, agent or any other person acting
or purporting to act on behalf of either Borrower, or any defect in the formation of either
Borrower;

               (6) the application by Borrower of the proceeds of any Guaranteed Obligations for purposes
other than the purposes represented by the Borrower to the Lenders or intended or understood by the
Lenders or the Guarantors;

               (7) any act or omission by the Lenders which directly or indirectly results in or aids the
discharge of Borrower or any Guaranteed Obligations by operation of law or otherwise; or

               (8) any modification of Guaranteed Obligations, in any form whatsoever including without limit
any modification made after effective termination, and including without limit, the renewal,
extension, acceleration or other change in time for payment of the Guaranteed Obligations, or other
change in the terms of any Guaranteed Obligations, including without limit increase or decrease of
the interest rate;

          (ii) any duty on the part of Agent or any of the Lenders to disclose to such Guarantor any
facts Agent or the Lenders may now or hereafter know about Borrower, regardless of whether Agent or
any Lender has reason to believe that any such facts materially increase the risk beyond that which
such Guarantor intends to assume or has reason to believe that such facts are unknown to such
Guarantor or has a reasonable opportunity to communicate such facts to such Guarantor;

          (iii) any other event or action (excluding compliance by such Guarantor with the provisions
hereof) that would result in the discharge by operation of law or otherwise of such Guarantor from
the performance or observance of any obligation, covenant or agreement contained in this Guaranty;
and

          (iv) all rights to participate in any security now or hereafter held by the Agent or any
Lender.

     Each Guarantor understands that, absent this waiver, the Agent’s election of remedies,
including but not limited to its decision to proceed to nonjudicial foreclosure on any real
property securing the Guaranteed Obligations, could preclude the Agent, on behalf of the Lenders,
from obtaining a deficiency judgment against Borrower and each Guarantor pursuant to California
Code of Civil Procedure Sections 580a, 580b, 580d or 726 and could also destroy any subrogation
rights which such Guarantor has against Borrower. Each Guarantor further understands that, absent
this waiver, California law, including without limitation, California Code of Civil Procedure
Sections 580a, 580b, 580d or 726, could afford such Guarantor one or more affirmative defenses to
any action maintained by the Agent, on behalf of the Lenders, against such Guarantor on this
Guaranty.

5

 

     Each Guarantor waives any and all rights and provisions of California Code of Civil Procedure
Sections 580a, 580b, 580d and 726, including, but not limited to any provision thereof that: (i)
may limit the time period for the Agent, on behalf of the Lenders, to commence a lawsuit against
Borrower or any Guarantor to collect any of the Guaranteed Obligations owing by either Borrower or
any Guarantor to Lenders; (ii) may entitle Borrower or any Guarantor to a judicial or nonjudicial
determination of any deficiency owed by Borrower or any Guarantor to the Agent, on behalf of the
Lenders, or to otherwise limit the Agent’s right to collect a deficiency based on the fair market
value of such real property security; (iii) may limit the Agent’s right to collect a deficiency
judgment after a sale of any real property securing the Guaranteed Obligations; (iv) may require
the Agent to take only one action to collect the Guaranteed Obligations or that may otherwise limit
the remedies available to the Agent to collect the Guaranteed Obligations.

     Each Guarantor waives all rights and defenses arising out of an election of remedies by the
Agent, on behalf of the Lenders, even though that election of remedies, such as a nonjudicial
foreclosure with respect to security for a guaranteed obligation, has destroyed the Agent’s and the
Lenders’ rights of subrogation and reimbursement against Borrower by the operation of Section 580d
of the California Code of Civil Procedure or otherwise.

     Without limiting the generality of any other waiver or other provision set forth in this
Guaranty, each Guarantor waives all rights and defenses that such Guarantor may have because the
Guaranteed Obligations are secured by real property to the fullest extent permissible under
applicable law. This means, among other things:

     1. The Agent, on behalf of the Lenders, may collect from any Guarantor without first
foreclosing on any real or personal property collateral pledged by Borrower to secure the
Guaranteed Obligations.

     2. If the Agent, on behalf of the Lenders, forecloses on any real property collateral pledged
by Borrower to secure the Guaranteed Obligations:

          (a) The amount of the Guaranteed Obligations may be reduced only by the price for which that
collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale
price.

          (b) The Agent, on behalf of the Lenders, may collect from any Guarantor even if the Agent, on
behalf of the Lenders, by foreclosing on the real property pledged as collateral, has destroyed any
right that the any Guarantor may have to collect from either Borrower.

     This is an unconditional and irrevocable waiver of any rights and defenses each Guarantor may
have because the Guaranteed Obligations are secured by real property to the fullest extent
permissible under applicable law. These rights and defenses include, but are not limited to, any
rights or defenses based upon Section 580a, 580b, 580d, or 726 of the California Code of Civil
Procedure.

     WITHOUT LIMITING THE GENERALITY OF ANY OTHER WAIVER OR OTHER PROVISION SET FORTH IN THIS
GUARANTY, EACH GUARANTOR HEREBY WAIVES, TO THE MAXIMUM EXTENT SUCH WAIVER IS PERMITTED BY LAW, ANY
AND ALL

6

 

BENEFITS, DEFENSES TO PAYMENT OR PERFORMANCE, OR ANY RIGHT TO PARTIAL OR COMPLETE EXONERATION
ARISING DIRECTLY OR INDIRECTLY UNDER ANY ONE OR MORE OF CALIFORNIA CIVIL CODE SECTIONS 2799, 2808,
2809, 2810, 2815, 2819, 2820, 2821, 2822, 2838, 2839, 2845, 2847, 2848, 2849, AND 2850.

     Each of the Guarantors acknowledges and agrees that this is a knowing and informed waiver of
the undersigned’s rights as discussed above and that the Agent and the Lenders are relying on this
waiver in extending credit to the Borrower.

     (e) Waiver of Subrogation. Each Guarantor hereby waives any claim for reimbursement,
contribution, exoneration, indemnity or subrogation, or any other similar claim, which such
Guarantor may have or obtain against Borrower, by reason of the existence of this Guaranty, or by
reason of the payment by such Guarantor of any of the Guaranteed Obligations or the performance of
this Guaranty, the Credit Agreement or any of the other Loan Documents, until the Guaranteed
Obligations have been repaid and discharged in full, no Letters of Credit shall remain outstanding
and all commitments to extend credit under the Credit Agreement or any of the other Loan Documents
(whether optional or obligatory) have been terminated. Any amounts paid to such Guarantor on
account of any such claim at any time when the obligations of such Guarantor under this Guaranty
shall not have been fully and finally paid shall be held by such Guarantor in trust for Agent and
the Lenders, segregated from other funds of such Guarantor, and forthwith upon receipt by such
Guarantor shall be turned over to Agent in the exact form received by such Guarantor (duly endorsed
to Agent by such Guarantor, if required), to be applied to such Guarantor’s obligations under this
Guaranty, whether matured or unmatured, in such order and manner as Agent may determine.

     Each of the Guarantors acknowledges and agrees that this is a knowing and informed waiver of
the undersigned’s rights as discussed above and that the Agent and the Lenders are relying on this
waiver in extending credit to the Borrower.

     (f) Other Transactions. The Agent and each of the Lenders may deal with the Borrower
and any security held by them for the obligations of the Borrower in the same manner and as freely
as if this Guaranty did not exist and the Agent shall be entitled, on behalf of the Lenders,
without notice to any of the Guarantors, among other things, to grant to the Borrower such
extension or extensions of time to perform any act or acts as may seem advisable to the Agent (on
behalf of the Lenders) at any time and from time to time, and to permit the Borrower to incur
additional indebtedness to the Agent, the Lenders, or any of them, without terminating, affecting
or impairing the validity or enforceability of this Guaranty or the obligations of the Guarantors
hereunder.

     (g) Remedies; Right to Offset. The Agent may proceed, either in its own name (on
behalf of the Lenders) or in the name of each or any of the Guarantors, or otherwise, to protect
and enforce any or all of its rights under this Guaranty by suit in equity, action at law or by
other appropriate proceedings, or to take any action authorized or permitted under applicable law,
and shall be entitled to require and enforce the performance of all acts and things required to be
performed hereunder by the Guarantors. Each and every remedy of the Agent and of the Lenders
shall, to the extent permitted by law, be cumulative and shall be in addition to any other remedy
given hereunder or now or hereafter existing at law or in equity.

7

 

     At the option of the Agent, any or all of the Guarantors may be joined in any action or
proceeding commenced by the Agent against Borrower or any of the other parties providing Collateral
for any of the Guaranteed Obligations, and recovery may be had against any or all of the Guarantors
in such action or proceeding or in any independent action or proceeding against any of them,
without any requirement that the Agent or the Lenders first assert, prosecute or exhaust any remedy
or claim against Borrower and/or any of the other parties providing Collateral for any of the
Guaranteed Obligations.

     Each of the Guarantors acknowledges the rights of the Agent and of each of the Lenders,
subject to the applicable terms and conditions of the Credit Agreement, to offset against the
Guaranteed Obligations of any Guarantor to the Lenders under this Guaranty, any amount owing by the
Agent or the Lenders, or either or any of them to such Guarantors, whether represented by any
deposit of such Guarantors (or any of them) with the Agent or any of the Lenders or otherwise.

     (h) Right to Cure. Each of the Guarantors shall have the right to cure any Event of
Default under the Credit Agreement or the other Loan Documents with respect to obligations of the
other Guarantors thereunder; provided that such cure is effected within the applicable grace period
or period for cure thereunder, if any; and provided further that such cure can be effected in
compliance with the Credit Agreement. Except to the extent of payments of principal, interest
and/or other sums actually received by the Agent or the Lenders pursuant to such cure, the exercise
of such right to cure by any Guarantor shall not reduce or otherwise affect the liability of any
other Guarantor under this Guaranty.

     (i) Borrower’s Financial Condition. Each Guarantor delivers this Guaranty based
solely on its own independent investigation of (or decision not to investigate) the financial
condition of the Borrower and is not relying on any information furnished by Agent or the Lenders.
Each Guarantor assumes full responsibility to keep itself informed concerning the financial
condition of the Borrower and all other circumstances bearing upon the risk of nonpayment of the
Guaranteed Obligation, the status of the Guaranteed Obligations or any other matter which such
Guarantor may deem necessary or appropriate, now or later.

     (j) Representations and Warranties; Covenants. Each Guarantor (a) ratifies, confirms
and, by reference thereto (as fully as though such matters were expressly set forth herein),
represents and warrants with respect to itself those matters set forth in Article 6 of the Credit
Agreement to the extent applicable to such Guarantor and those matters set forth in the recitals
hereto, and such representations and warranties shall be deemed to be continuing representations
and warranties true and correct in all material respects so long as this Guaranty shall be in
effect; and (b) agrees to comply with the covenants set forth in Articles 7 and 8 of the Credit
Agreement to the extent applicable to such Guarantor, and (ii) not to otherwise engage in any
action or inaction, the result of which would cause a violation of any term or condition of the
Credit Agreement.

     (k) Governing Law; Severability. This Guaranty has been delivered in California and
shall be interpreted and the rights of the parties hereunder shall be determined under the laws of,
and be enforceable in, the State of California. If any term or provision of this Guaranty or the
application thereof to any circumstance shall, to any extent, be invalid or unenforceable, the

8

 

remainder of this Guaranty, or the application of such term or provision to circumstances
other than those as to which it is held invalid or unenforceable, shall not be affected thereby,
and each term and provision of this Guaranty shall be valid and enforceable to the fullest extent
permitted by law.

     (l) Notice. All notices, requests, consents, approvals, waivers and other
communications hereunder shall be in writing (including, by facsimile transmission) and mailed,
faxed or delivered to the address or facsimile number specified for notices on Schedule 1 hereto;
or, to such other address or number as shall be designated by such party in a written notice to the
other. All such notices, requests and communications shall, when sent by overnight delivery, or
faxed, be effective when delivered for overnight (next business day) delivery, or transmitted in
legible form by facsimile machine, respectively, or if mailed, upon the third Business Day (as
defined in the Credit Agreement) after the date deposited into the U.S. mail, or if otherwise
delivered, upon delivery.

     (m) Amendments; Future Subsidiaries. The terms of this Guaranty may not be altered,
modified, amended, supplemented or terminated in any manner whatsoever unless the same shall be in
writing and signed by or on behalf of the requisite Lenders as determined pursuant to the Credit
Agreement and the Guarantors. In accordance with the Credit Agreement, future Domestic Subsidiary
of either Borrower shall become obligated as Guarantors hereunder (each as fully as though an
original signatory hereto) by executing and delivering to the Agent and the Lenders that certain
joinder agreement in the form attached hereto as Exhibit A.

     (n) No Waiver. No waiver or release shall be deemed to have been made by the Agent or
any of the Lenders of any of their respective rights hereunder unless the same shall be in writing
and signed by or on behalf of the requisite Lenders as determined pursuant to the Credit Agreement,
and any such waiver shall be a waiver or release only with respect to the specific matter and
Guarantor or Guarantors involved, and shall in no way impair the rights of the Agent or any of the
Lenders or the obligations of the Guarantors under this Guaranty in any other respect at any other
time.

     (o) Joint and Several Obligation, etc. The obligation of each of the Guarantors under
this Guaranty shall be several and also joint, each with all and also each with any one or more of
the others, and may be enforced against each severally, any two or more jointly, or some severally
and some jointly. Any one or more of the Guarantors may be released from its obligations hereunder
with or without consideration for such release and the obligations of the other Guarantors
hereunder shall be in no way affected thereby. The Agent, on behalf of Lenders, may fail or elect
not to prove a claim against any bankrupt or insolvent Guarantor and thereafter, the Agent and the
Lenders may, without notice to any Guarantors, extend or renew any part or all of the obligations
of the Borrower under the Credit Agreement or otherwise, and may permit any such Person to incur
additional indebtedness, without affecting in any manner the unconditional obligation of each of
the Guarantors hereunder. Such action shall not affect any right of contribution among the
Guarantors.

     (p) Release; Reinstatement. Upon the satisfaction of the obligations of the
Guarantors hereunder, and when none of the Guarantors is subject to any obligation hereunder or
under the Credit Agreement or any of the other Loan Documents, the Agent shall deliver to such

9

 

Guarantors, upon written request therefor, (a) a written release of this Guaranty and (b)
appropriate discharges of any Collateral provided by the Guarantors for this Guaranty; provided
however that, the effectiveness of this Guaranty shall continue or be reinstated, as the case may
be, in the event: (x) that any payment received or credit given by the Agent or the Lenders, or any
of them, is returned, disgorged, rescinded or required to be recontributed to any party as an
avoidable preference, impermissible setoff, fraudulent conveyance, restoration of capital or
otherwise under any applicable state, federal or law of any jurisdiction, including laws pertaining
to bankruptcy or insolvency, and this Guaranty shall thereafter be enforceable against the
Guarantors as if such returned, disgorged, recontributed or rescinded payment or credit has not
been received or given by the Agent or the Lenders, and whether or not the Agent or any Lender
relied upon such payment or credit or changed its position as a consequence thereof or (y) that any
liability is imposed, or sought to be imposed against the Agent or the Lenders, or any of them,
relating to the environmental condition of any of property mortgaged or pledged to the Agent on
behalf of the Lenders by any Guarantor, Borrower or any other party as collateral (in whole or
part) for any indebtedness or obligation evidenced or secured by this Guaranty, whether such
condition is known or unknown, now exists or subsequently arises (excluding only conditions which
arise after acquisition by the Agent or any Lender of any such property, in lieu of foreclosure or
otherwise, due to the wrongful act or omission of the Agent or such Lenders, or any person other
than the Borrower, the Subsidiaries, or Affiliates of the Borrower or the Subsidiaries), and this
Guaranty shall thereafter be enforceable against the Guarantors to the extent of all such
liabilities, costs and expenses (including reasonable attorneys’ fees) incurred by the Agent or
Lenders as the direct or indirect result of any such environmental condition but only for which the
Borrower is obligated to the Agent and the Lenders pursuant to the Credit Agreement. For purposes
of this Guaranty “environmental condition” includes, without limitation, conditions
existing with respect to the surface or ground water, drinking water supply, land surface or
subsurface strata and the ambient air.

     (q) Consent to Jurisdiction. Each of the Guarantors hereby irrevocably submits to the
non-exclusive jurisdiction of any United States federal or California state court sitting in the
County of Santa Clara, California in any action or proceeding arising out of or relating to this
Guaranty or any of the other Loan Documents and Guarantors hereby irrevocably agree that all claims
in respect of such action or proceeding may be heard and determined in any such United States
federal or California state court. Each of the Guarantors irrevocably consents to the service of
any and all process in any such action or proceeding brought in any court in or of the State of
California (and to the receipt of any and all notices hereunder) by the delivery of copies of such
process to Guarantors at their respective addresses specified in Schedule 1 hereof in the manner
set forth therein.

     (r) Headings. The headings, captions, and arrangements used in this Guaranty are for
convenience only and shall not affect the interpretation of this Guaranty.

     (s) Counterparts. This Guaranty may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     (t) JURY TRIAL WAIVER. EACH GUARANTOR AND THE AGENT ACKNOWLEDGE THAT THE RIGHT TO
TRIAL BY JURY IS A CONSTITUTIONAL ONE,

10

 

BUT THAT IT MAY BE WAIVED UNDER CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, EACH
GUARANTOR AND THE AGENT, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL
OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT WAIVES ANY RIGHT TO TRIAL
BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY
RELATED TO, THIS GUARANTY OR THE GUARANTEED OBLIGATIONS.

     (a) In the event that the jury trial waiver contained in this Section 20 is not enforceable,
the parties elect to proceed as follows:

     (b) With the exception of the items specified in clause (c), below, any controversy, dispute
or claim (each, a “Claim”) between the parties arising out of or relating to this Agreement or any
other Loan Document will be resolved by a reference proceeding in California in accordance with the
provisions of Section 638 et seq. of the California Code of Civil Procedure (“CCP”), or their
successor sections, which shall constitute the exclusive remedy for the resolution of any Claim,
including whether the Claim is subject to the reference proceeding. Except as otherwise provided
in the Agreement, venue for the reference proceeding will be in the state or federal court in the
county or district where venue is otherwise appropriate under applicable law (the “Court”).

     (c) The matters that shall not be subject to a reference are the following: (i) non-judicial
foreclosure of any security interests in real or personal property, (ii) exercise of self-help
remedies (including, without limitation, set-off), (iii) appointment of a receiver and (iv)
temporary, provisional or ancillary remedies (including, without limitation, writs of attachment,
writs of possession, temporary restraining orders or preliminary injunctions). This Section does
not limit the right of any party to exercise or oppose any of the rights and remedies described in
clauses (i) and (ii) or to seek or oppose from a court of competent jurisdiction any of the items
described in clauses (iii) and (iv). The exercise of, or opposition to, any of those items does
not waive the right of any party to a reference pursuant to this Section.

     (d) The referee shall be a retired judge or justice selected by mutual written agreement of
the parties. If the parties do not agree within ten (10) days of a written request to do so by any
party, then, upon request of any party, the referee shall be selected by the Presiding Judge of the
Court (or his or her representative). A request for appointment of a referee may be heard on an ex
parte or expedited basis, and the parties agree that irreparable harm would result if ex parte
relief is not granted. Pursuant to CCP § 170.6, each party shall have one peremptory challenge to
the referee selected by the Presiding Judge of the Court (or his or her representative).

     (e) The parties agree that time is of the essence in conducting the reference proceedings.
Accordingly, the referee shall be requested, subject to change in the time periods specified herein
for good cause shown, to (a) set the matter for a status and trial-setting conference within
fifteen (15) days after the date of selection of the referee, (b) if practicable, try all issues of
law or fact within one hundred twenty (120) days after the date of the conference and (c) report a
statement of decision within twenty (20) days after the matter has been submitted for decision.

11

 

     (f) The referee will have power to expand or limit the amount and duration of discovery. The
referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s
failure to provide requested discovery for any reason whatsoever. Unless otherwise ordered, no
party shall be entitled to “priority” in conducting discovery, depositions may be taken by either
party upon seven (7) days written notice, and all other discovery shall be responded to within
fifteen (15) days after service. All disputes relating to discovery which cannot be resolved by
the parties shall be submitted to the referee whose decision shall be final and binding.

     (g) Except as expressly set forth in this Section 16, the referee shall determine the manner
in which the reference proceeding is conducted including the time and place of hearings, the order
of presentation of evidence, and all other questions that arise with respect to the course of the
reference proceeding. All proceedings and hearings conducted before the referee, except for trial,
shall be conducted without a court reporter, except that when any party so requests, a court
reporter will be used at any hearing conducted before the referee, and the referee will be provided
a courtesy copy of the transcript. The party making such a request shall have the obligation to
arrange for and pay the court reporter. Subject to the referee’s power to award costs to the
prevailing party, the parties will equally share the cost of the referee and the court reporter at
trial.

     (h) The referee shall be required to determine all issues in accordance with existing case law
and the statutory laws of the State of California. The rules of evidence applicable to proceedings
at law in the State of California will be applicable to the reference proceeding. The referee
shall be empowered to enter equitable as well as legal relief, enter equitable orders that will be
binding on the parties and rule on any motion which would be authorized in a trial, including
without limitation motions for summary judgment or summary adjudication. The referee shall issue a
decision at the close of the reference proceeding which disposes of all claims of the parties that
are the subject of the reference. Pursuant to CCP § 644, such decision shall be entered by the
Court as a judgment or an order in the same manner as if the action had been tried by the Court and
any such decision will be final, binding and conclusive. The parties reserve the right to appeal
from the final judgment or order or from any appealable decision or order entered by the referee.
The parties reserve the right to findings of fact, conclusions of laws, a written statement of
decision, and the right to move for a new trial or a different judgment, which new trial, if
granted, is also to be a reference proceeding under this provision.

     (i) If the enabling legislation which provides for appointment of a referee is repealed (and
no successor statute is enacted), any dispute between the parties that would otherwise be
determined by reference procedure will be resolved and determined by arbitration. The arbitration
will be conducted by a retired judge or Justice, in accordance with the California Arbitration Act
§1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to
discovery set forth above shall apply to any such arbitration proceeding.

THE PARTIES RECOGNIZE AND AGREE THAT ALL DISPUTES RESOLVED UNDER THIS REFERENCE PROVISION WILL BE
DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO
CONSULT) WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL
BENEFIT OF ALL PARTIES, AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY CONTROVERSY, DISPUTE
OR

12

 

CLAIM BETWEEN OR AMONG THEM WHICH ARISES OUT OF OR IS RELATED TO THIS AGREEMENT.

     (u) Limitation under Applicable Insolvency Laws. Notwithstanding anything to the
contrary contained herein, it is the intention of the Guarantors, the Agent and the Lenders that
the amount of the respective Guarantor’s obligations hereunder shall be in, but not in excess of,
the maximum amount thereof not subject to avoidance or recovery by operation of applicable law
governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors,
dissolution, insolvency, fraudulent transfers or conveyances or other similar laws (collectively,
“Applicable Insolvency Laws”). To that end, but only in the event and to the extent that
the Guarantor’s respective obligations hereunder or any payment made pursuant thereto would, but
for the operation of the foregoing proviso, be subject to avoidance or recovery under Applicable
Insolvency Laws, the amount of the Guarantor’s respective obligations hereunder shall be limited to
the largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws,
render the Guarantor’s respective obligations hereunder unenforceable or avoidable or subject to
recovery under Applicable Insolvency Laws. To the extent any payment actually made hereunder
exceeds the limitation contained in this Section 21, then the amount of such excess shall, from and
after the time of payment by the Guarantors (or any of them), be reimbursed by the Lenders upon
demand by such Guarantors. The foregoing proviso is intended solely to preserve the rights of the
Agent and the Lenders hereunder against the Guarantors to the maximum extent permitted by
Applicable Insolvency Laws and neither the Borrower nor any Guarantor nor any other Person shall
have any right or claim under this Section 21 that would not otherwise be available under
Applicable Insolvency Laws.

[SIGNATURES FOLLOW ON SUCCEEDING PAGES]

13

 

     IN WITNESS WHEREOF, each of the undersigned Guarantors has executed this Guaranty as of the
date first above written.

	 	 	 	 	 	 	 
	 	 	QUINSTREET PROPERTIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QUINSTREET LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	QUINSTREET MEDIA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CYBERSPACE COMMUNICATIONS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	RELIABLEREMODELER.COM, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

14

 

	 	 	 	 	 	 	 
	 	 	HQ PUBLICATIONS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

15

 

SCHEDULE 1

INFORMATION FOR NOTICES

Comerica Bank

75 East Trimble Road, M/C 4770

San Jose, California 95131

Attention: Manager

Fax No.: (408) 556-5091

With a copy to:

Comerica Bank

2 Embarcadero Center, Suite 300

San Francisco, CA 94111

Attn: Phil Koblis — Vice President

Fax No.: (415) 477-3260

[Guarantors]

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Attention:
	 	 	 	 	 	 
	 	 	 	 	 
	Phone:
	 	 	 	 	 	 
	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	Attention:
	 	 	 	 	 	 
	 	 	 	 	 
	Phone:
	 	 	 	 	 	 
	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 
	 	 	 	 	 

 

 

EXHIBIT A

Joinder Agreement to Guaranty

     THIS
JOINDER AGREEMENT is dated as of ______, ___ by ______
(“New Guarantor”).

     WHEREAS, pursuant to Section 7.14 of that certain Revolving Credit and Term Loan Agreement
dated as of September 29, 2008 (as amended or otherwise modified from time to time, the “Credit
Agreement”; capitalized terms not otherwise defined herein shall have the meanings set forth in
the Credit Agreement) by and among QuinStreet, Inc. (“Borrower”), Comerica Bank, as agent
for the Lenders (the “Agent”) and the financial institutions which are parties thereto from
time to time (“Lenders”), the Lenders have agreed to extend credit to the Borrower on the
terms set forth in the Credit Agreement and pursuant to Section 13 of that certain Guaranty dated
as of September 29, 2008 (as amended or otherwise modified from time to time, the
“Guaranty”) executed and delivered by the Guarantors named therein (“Guarantors”)
in favor of Agent, for and on behalf of the Lenders, the New Guarantor must execute and deliver a
Joinder Agreement in accordance with the Credit Agreement and the Guaranty.

     NOW THEREFORE, as a further inducement to each of the Lenders to continue to provide credit
accommodations to the Borrower, New Guarantor hereby covenants and agrees as follows:

     (a) All capitalized terms used herein shall have the meanings assigned to them in the Credit
Agreement unless expressly defined to the contrary.

     (b) New Guarantor hereby enters into this Joinder Agreement in order to comply with Section
7.13 of the Credit Agreement and Section 13 of the Guaranty and does so in consideration of the
extension of the Guaranteed Obligations, from which New Guarantor shall derive direct and indirect
benefit as with the other Guarantors (all as set forth and on the same basis as in the Guaranty).

     (c) New Guarantor shall be considered, and deemed to be, for all purposes of the Credit
Agreement, the Guaranty and the other Loan Documents, a Guarantor under the Guaranty and hereby
ratifies and confirms its obligations under the Guaranty, all in accordance with the terms thereof.

     (d) No Default or Event of Default has occurred and is continuing under the Credit Agreement.

     (e) This Joinder Agreement shall be governed by the laws of the State of California and shall
be binding upon New Guarantor and its successors and assigns.

 

     IN WITNESS WHEREOF, the undersigned New Guarantor has executed and delivered this Joinder
Agreement as of ______.

	 	 	 	 	 	 	 
	 	 	[NEW GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

2

 

EXHIBIT J

FORM OF COVENANT COMPLIANCE REPORT

TO: Comerica Bank, as Agent

RE: Amended and Restated Revolving Credit and Term Loan Agreement (“Agreement”) is made as of the
13th day of January, 2010, (as amended, restated or otherwise modified from time to
time, the “Credit Agreement”) by and among the financial institutions from time to time signatory
thereto (individually a “Lender,” and any and all such financial institutions collectively the
“Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such capacity, the “Agent”)
and QuinStreet, Inc. (“Borrower”).

This Covenant Compliance Report (“Report”) is furnished pursuant to Section 7.2(a) of the Credit
Agreement and sets forth various information as of
______, 20 ______ (the “Computation Date”).

	1.	 	Adjusted Quick Ratio (Section 7.9(a)). On the Computation Date, the Adjusted Quick
Ratio, which is required to be not less than ___ to 1.00
was ______ to 1.00, as computed in
the supporting documents attached hereto as Schedule 1.
	 
	2.	 	Fixed Charge Coverage Ratio (Section 7.9(b)). On the Computation Date, the Fixed
Charge Coverage Ratio, which is required to be not less than
______ to 1.0 was
______ to 1.0
as computed in the supporting documents attached hereto as Schedule 2.
	 
	3.	 	Funded Debt to EBITDA Ratio (Section 7.9(c)). On the Computation Date, the Funded
Debt to EBITDA Ratio, which is required to be not more than
______ to 1.0 was
______ to 1.0 as
computed in the supporting documents attached hereto as Schedule 2.

     The Borrower’s Representative hereby certifies that:

     A. To the best of my knowledge, all of the information set forth in this Report (and in any
Schedule attached hereto) is true and correct in all material respects.

     B. To the best of my knowledge, the representation and warranties of the Credit Parties
contained in the Credit Agreement and in the Loan Documents are true and correct in all material
respects with the same effect as though such representations and warranties had been made on and at
the date hereof, except to the extent that such representations and warranties expressly relate to
an earlier specific date, in which case such representations and warranties were true and correct
in all material respects as of the date when made.

     C. I have reviewed the Credit Agreement and this Report is based on an examination sufficient
to assure that this Report is accurate.

     D. To the best of my knowledge, except as stated in Schedule 5 hereto (which shall describe
any existing Default or Event of Default and the notice and period of existence thereof and any
action taken with respect thereto or contemplated to be taken by Borrower or any other

 

 

Credit Party), no Default or Event of Default has occurred and is continuing on the date of
this Report.

     Capitalized terms used in this Report and in the Schedules hereto, unless specifically defined
to the contrary, have the meanings given to them in the Credit Agreement.

     IN WITNESS WHEREOF, Borrower have caused this Report to be executed and delivered by the
Borrower Representative this ______ day of
______ , ______.

	 	 	 	 	 	 	 
	 	 	QUINSTREET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

2

 

EXHIBIT K

FORM OF TERM NOTE

			
	 	 	 
	$                                        
	 	                    , 20     

FOR VALUE RECEIVED, QuinStreet, Inc. (“Borrower”) promises to pay to the order of [insert name
of applicable financial institution] (“Payee”), in care of Agent, at San Jose, California, the
principal sum of [insert amount derived from Percentages] Dollars ($______), or if
less, the aggregate principal amount of the Term Loan Advances made by the Payee, in lawful money
of the United States of America payable in quarterly principal installments each in the amount and
on the dates set forth in the Credit Agreement (as defined below) until the Term Loan Maturity
Date, when the entire unpaid balance of principal and interest thereon shall be due and payable.
Interest shall be payable at the rate (including the default rate) and on the dates provided in the
Amended and Restated Revolving Credit and Term Loan Agreement (“Agreement”) is made as of the
13th day of January, 2010, by and among the financial institutions from time to time
signatory thereto (individually a “Lender,” and any and all such financial institutions
collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such
capacity, the “Agent”), and Borrower.

     This Note evidences Term Loan Advances made under, is subject to, may be accelerated and may
be prepaid in accordance with, the terms of the Credit Agreement, to which reference is hereby
made.

     This Note shall be interpreted and the rights of the parties hereunder shall be determined
under the laws of, and enforceable in, the State of California.

     Borrower hereby waives presentment for payment, demand, protest and notice of dishonor and
nonpayment of this Note and agrees that no obligation hereunder shall be discharged by reason of
any extension, indulgence, release, or forbearance granted by any holder of this Note to any party
now or hereafter liable hereon or any present or subsequent owner of any property, real or
personal, which is now or hereafter security for this Note.

 

 

     Nothing herein shall limit any right granted Payee by any other instrument or by law.

	 	 	 	 	 	 	 
	 	 	QUINSTREET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

2

 

EXHIBIT L

FORM OF TERM LOAN RATE REQUEST

			
	No.                 
                    

	 	Dated:               
                      

			
	To:	 	Comerica Bank, as Agent

			
	RE:	 	Amended and Restated Revolving Credit and Term Loan
Agreement (“Agreement”) is made as of the
13th day of January, 2010, (as amended,
restated or otherwise modified from time to time, the
“Credit Agreement”) by and among the financial
institutions from time to time signatory thereto
(individually a “Lender,” and any and all such financial
institutions collectively the “Lenders”), Comerica Bank,
as Administrative Agent for the Lenders (in such
capacity, the “Agent”) and QuinStreet, Inc.
(“Borrower”).

          Pursuant to the Credit Agreement, the Borrower hereby requests that the Lenders refund or
convert, as applicable, an Advance under the Term Loan from Lenders as follows:

	(A)	 	Date of Refunding or Conversion of Advance:                    
                    
                    
                    

	(B)	 	Type of Activity:

	 	o	 	Refunding
	 
	 	o	 	Conversion

	(C)	 	Type of Advance (check only one):

	 	o	 	Base Rate Advance
	 
	 	o	 	Eurodollar-based Advance

	(D)	 	Amount of Advance:
	 
	 	 	$                                        

	(E)	 	Interest Period (applicable to Eurodollar-based Advances)
	 
	 	 	                     months (insert 1, 2 or 3)

	(F)	 	Disbursement Instructions

	 	o	 	Comerica Bank Account No.                                           
	 
	 	o	 	Other:                     
                    
                    
                    
	 
	 	 	 	
 

	 	 	Borrower hereby certifies as follows:

 

 

          1. There is no Default or Event of Default in existence, and none will exist upon the
refunding or conversion of such Advance (both before and immediately after giving effect to such
Advance); and

          2. The representations and warranties of the Credit Parties contained in the Credit Agreement
and the other Loan Documents are true and correct in all material respects and shall be true and
correct in all material respects as of the date of this Request (both before and immediately after
giving effect to such Request), other than any representation or warranty that expressly speaks
only as of a different date.

          Capitalized terms used herein, except as defined to the contrary, have the meanings given them
in the Credit Agreement.

	 	 	 	 	 
	 	 	QUINSTREET, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

2

 

EXHIBIT M

FORM OF SWING LINE PARTICIPATION CERTIFICATE

                                        , ____

[Name of Lender]

                                        

                                        

			
	Re:	 	Amended and Restated Revolving Credit and Term Loan Agreement (“Agreement”) is made as of the
13th day of January, 2010, (as amended, restated or otherwise modified from time to
time, the “Credit Agreement”) by and among the financial institutions from time to time
signatory thereto (individually a “Lender,” and any and all such financial institutions
collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such
capacity, the “Agent”) and QuinStreet, Inc. (“Borrower”).

Ladies and Gentlemen:

          Pursuant to subsection 2.5(e) of the Credit Agreement, the undersigned hereby acknowledges
receipt from you of $                                  as payment for a participating interest in the following
Swing Line Loan:

          Date of Swing Line Loan:                                        

          Principal Amount of Swing Line Loan:                    

The participation evidenced by this certificate shall be subject to the terms and conditions of the
Credit Agreement including without limitation Section 2.5(e) thereof.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	Comerica Bank, as Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

 

EXHIBIT N

NEW LENDER ADDENDUM

          THIS NEW LENDER ADDENDUM, dated                                         , to the Amended and Restated Revolving
Credit and Term Loan Agreement dated as of the 13th day of January, 2010 (as otherwise
amended or modified from time to time, the “Credit Agreement”), among QuinStreet, Inc.
(“Borrower”), each of the financial institutions parties thereto (collectively, the “Lenders”) and
Comerica Bank, as Agent for the Lenders.

W I T N E S S E T H:

          WHEREAS, the Credit Agreement provides in Section 2.13 thereof that a financial institution,
although not originally a party thereto, may become a party to the Credit Agreement with the
consent of the Borrower and the Agent by executing and delivering to the Agent a New Lender
Addendum to the Credit Agreement in substantially the form of this New Lender Addendum; and

          WHEREAS, the undersigned New Lender was not an original party to the Credit Agreement but now
desires to become a party thereto;

          NOW, THEREFORE, the New Lender hereby agrees as follows:

          The New Lender hereby confirms that it has received a copy of the Credit Agreement and the
exhibits and schedules referred to therein, and all other Loan Documents which it considers
necessary, together with copies of the other documents which were required to be delivered under
the Credit Agreement as a condition to the making of the loans thereunder. The New Lender
acknowledges and agrees that it: (a) has made and will continue to make such inquiries and has
taken and will take such care on its own behalf as would have been the case had its commitment been
granted and its loans been made directly by such New Lender to the Borrower without the
intervention of the Agent or any other Lender; and (b) has made and will continue to make,
independently and without reliance upon the Agent or any other Lender, and based on such documents
and information as it has deemed appropriate, its own credit analysis and decisions relating to the
Credit Agreement. The New Lender further acknowledges and agrees that the Agent has made any
representations or warranties about the creditworthiness of the Borrower or any other party to the
Credit Agreement or any other of the Loan Documents, or with respect to the legality, validity,
sufficiency or enforceability of the Credit Agreement, or any other of the Loan Documents.

          New Lender represents and warrants that it is a Person to which assignments are permitted
pursuant to Sections 13.8(c) and (d) of the Credit Agreement.

          Except as otherwise provided in the Credit Agreement, effective as of the Effective Date (as
defined below):

 

	 	(b)	 	the New Lender (i) shall be deemed automatically to have become a party to the
Credit Agreement and the other Loan Documents, and to have all the rights and
obligations of a party to the Credit Agreement and the other Loan Documents, as if it
were an original signatory; and (ii) agrees to be bound by the terms and conditions set
forth in the Credit Agreement and the other Loan Documents as if it were an original
signatory thereto; and
	 
	 	(c)	 	the New Lender shall be a Revolving Credit Lender and its Percentage of the
Revolving Credit Aggregate Commitment (and its risk participation in Letters of Credit)
shall be as set forth in the attached revised Schedule 1.2 (Percentages); provided any
fees paid prior to the Effective Date, including any Letter of Credit Fees, shall not
be recalculated, redistributed or reallocated by Borrower, Agent or the Lenders.

          As used herein, the term “Effective Date” means the date on which all of the following have
occurred or have been completed, as reasonably determined by the Agent:

          (1) the Borrower shall have paid to the Agent, all interest, fees (including the Revolving
Credit Facility Fee) and other amounts, if any, accrued to the Effective Date for which
reimbursement is then owing under the Credit Agreement;

          (2) New Lender shall have remitted to the Agent funds in an amount equal to its Percentage of
all Advances of the Revolving Credit outstanding as of the Effective Date; and

          (3) the Borrower shall have executed and delivered to the Agent for the New Lender, a new
Revolving Credit Note payable to such New Lender in the face amount of such New Lender’s Percentage
of the Revolving Credit Maximum Amount (after giving effect to this New Lender Addendum, and any
other New Lender Addendum executed concurrently herewith).

          The Agent shall notify the New Lender, along with Borrower, of the Effective Date. The New
Lender shall deliver herewith to the Agent administrative details with respect to the funding and
distribution of Advances (and Letters of Credit) as requested by Agent.

          Terms defined in the Credit Agreement and not otherwise defined herein shall have their
defined meanings when used herein.

          IN WITNESS WHEREOF, the undersigned has caused this New Lender Addendum to be executed and
delivered by a duly authorized officer on the date first above written.

	 	 	 	 	 
	 	 	[Name of New Lender]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

2exv10w14

Exhibit 10.14

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT (the “Agreement”) dated as of September 29, 2008 and is
effective as of the Effective Date, is entered into by and among the Borrower (as defined below),
such other entities which from time to time become parties hereto (collectively, including the
Borrower, the “Debtors” and each individually a “Debtor”) and Comerica Bank
(“Comerica”), as Administrative Agent for and on behalf of the Banks (as defined below) (in
such capacity, the “Agent”). The addresses for the Debtors and the Agent, as of the date
hereof, are set forth on the signature pages attached hereto.

RECITALS:

     A. QuinStreet, Inc. (the “Borrower”) has entered into that certain Revolving Credit
and Term Loan Agreement dated as of September 29, 2008 (as amended, supplemented, amended and
restated or otherwise modified from time to time the “Credit Agreement”) with each of the
financial institutions party thereto (collectively, including their respective successors and
assigns, the “Banks”) and the Agent pursuant to which the Banks have agreed, subject to the
satisfaction of certain terms and conditions, to extend or to continue to extend financial
accommodations to the Borrower, as provided therein.

     B. Pursuant to the Credit Agreement, the Banks have required that each of the Debtors grant
(or cause to be granted) certain Liens to the Agent, for the benefit of the Banks, all to secure
the obligations of the Borrower or any Debtor under the Credit Agreement or any related Loan
Document (including any Guaranty).

     C. The Debtors have directly and indirectly benefited and will directly and indirectly benefit
from the transactions evidenced by and contemplated in the Credit Agreement and the other Loan
Documents.

     D. The Agent is acting as Agent for the Banks pursuant to the terms and conditions Section 12
of the Credit Agreement.

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

ARTICLE 1

Definitions

     Section 1.1 Definitions. As used in this Agreement, capitalized terms not otherwise defined herein have the meanings
provided for such terms in the Credit Agreement. References to “Sections,” “subsections,”
“Exhibits” and “Schedules” shall be to Sections, subsections, Exhibits and Schedules, respectively,
of this Agreement unless otherwise specifically provided. All references to statutes and
regulations shall include any amendments of the same and any
successor statutes and regulations. References to particular sections of the UCC should be
read to refer also to parallel sections of the Uniform Commercial Code as enacted in each state or

 

 

other jurisdiction which may be applicable to the grant and perfection of the Liens held by the
Agent for the benefit of the Banks pursuant to this Agreement.

     The following terms have the meanings indicated below, all such definitions to be equally
applicable to the singular and plural forms of the terms defined:

     “Account” means any “account,” as such term is defined in Article or Chapter 9 of the
UCC, now owned or hereafter acquired by a Debtor, and, in any event, shall include, without
limitation, each of the following, whether now owned or hereafter acquired by such Debtor: (a) all
rights of such Debtor to payment for goods sold or leased or services rendered, whether or not
earned by performance, (b) all accounts receivable of such Debtor, (c) all rights of such Debtor to
receive any payment of money or other form of consideration, (d) all security pledged, assigned or
granted to or held by such Debtor to secure any of the foregoing, (e) all guaranties of, or
indemnifications with respect to, any of the foregoing, and (f) all rights of such Debtor as an
unpaid seller of goods or services, including, but not limited to, all rights of stoppage in
transit, replevin, reclamation and resale.

     “Chattel Paper” means any “chattel paper,” as such term is defined in Article or
Chapter 9 of the UCC, now owned or hereafter acquired by a Debtor, and shall include both
electronic Chattel Paper and tangible Chattel Paper.

     “Collateral” has the meaning specified in Section 2.1 of this Agreement.

     “Computer Records” means any computer records now owned or hereafter acquired by any
Debtor.

     “Copyright Collateral” shall mean all Copyrights and Copyright Licenses of the
Debtors.

     “Copyright Licenses” shall mean all license agreements with any other Person in
connection with any of the Copyrights or such other Person’s copyrights, whether a Debtor is a
licensor or a licensee under any such license agreement, including, without limitation, the license
agreements listed on Schedule 1.1 hereto and made a part hereof, subject, in each case, to the
terms of such license agreements and the right to prepare for sale, sell and advertise for sale,
all inventory now or hereafter covered by such licenses.

     “Copyrights” shall mean all copyrights and mask works, whether or not registered, and
all applications for registration of all copyrights and mask works, including, but not limited to
all copyrights and mask works, and all applications for registration of all copyrights and mask
works identified on Schedule 1.1 attached hereto and made a part hereof, and including without
limitation (a) the right to sue or otherwise recover for any and all past, present and future
infringements and misappropriations thereof; (b) all income, royalties, damages and other payments
now and hereafter due and/or payable with respect thereto (including, without limitation, payments
under all Copyright Licenses entered into in connection therewith, and damages and payments for
past or future infringements thereof); and (c) all rights corresponding thereto and all
modifications, adaptations, translations, enhancements and derivative works,
renewals thereof, and all other rights of any kind whatsoever of a Debtor accruing thereunder
or pertaining thereto.

2

 

     “Deposit Account” shall mean a demand, time, savings, passbook, or similar account
maintained with a bank. The term does not include investment property, investment accounts or
accounts evidenced by an instrument.

     “Document” means any “document,” as such term is defined in Article or Chapter 9 of
the UCC, now owned or hereafter acquired by any Debtor, including, without limitation, all
documents of title and all receipts covering, evidencing or representing goods now owned or
hereafter acquired by a Debtor.

     “Equipment” means any “equipment,” as such term is defined in Article or Chapter 9 of
the UCC, now owned or hereafter acquired by a Debtor and, in any event, shall include, without
limitation, all machinery, equipment, furniture, trade fixtures, tractors, trailers, rolling stock,
vessels, aircraft and Vehicles now owned or hereafter acquired by such Debtor and any and all
additions, substitutions and replacements of any of the foregoing, wherever located, together with
all attachments, components, parts, equipment and accessories installed thereon or affixed thereto.

     “General Intangibles” means any “general intangibles,” as such term is defined in
Article or Chapter 9 of the UCC, now owned or hereafter acquired by a Debtor and, in any event,
shall include, without limitation, each of the following, whether now owned or hereafter acquired
by such Debtor: (a) all of such Debtor’s Intellectual Property Collateral; (b) all of such Debtor’s
books, records, data, plans, manuals, computer software, computer tapes, computer disks, computer
programs, source codes, object codes and all rights of such Debtor to retrieve data and other
information from third parties; (c) all of such Debtor’s contract rights, commercial tort claims,
partnership interests, membership interests, joint venture interests, securities, deposit accounts,
investment accounts and certificates of deposit; (d) all rights of such Debtor to payment under
chattel paper, documents, instruments and similar agreements; (e) letters of credit, letters of
credit rights supporting obligations and rights to payment for money or funds advanced or sold of
such Debtor; (f) all tax refunds and tax refund claims of such Debtor; (g) all choses in action and
causes of action of such Debtor (whether arising in contract, tort or otherwise and whether or not
currently in litigation) and all judgments in favor of such Debtor; (h) all rights and claims of
such Debtor under warranties and indemnities, (i) all health care receivables; and (j) all rights
of such Debtor under any insurance, surety or similar contract or arrangement.

     “Governmental Authority” shall mean any nation or government, any state, province or
other political subdivision thereof, any central bank (or similar monetary or regulatory authority)
thereof, any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, and any corporation or other entity owned or controlled,
through stock or capital ownership or otherwise, by any of the foregoing.

     “Instrument” shall mean any “instrument,” as such term is defined in Article or
Chapter 9 of the UCC, now owned or hereafter acquired by any Debtor, and, in any event, shall
include all promissory notes (including without limitation, any Intercompany Notes held by such
Debtor), drafts, bills of exchange and trade acceptances, whether now owned or hereafter
acquired.

3

 

     “Insurance Proceeds” shall have the meaning set forth in Section 4.4 of this
Agreement.

     “Intellectual Property Collateral” shall mean Patents, Patent Licenses, Copyrights,
Copyright Licenses, Trademarks, Trademark Licenses, trade secrets, registrations, goodwill,
franchises, permits, proprietary information, customer lists, designs, inventions and all other
intellectual property and proprietary rights, including without limitation those described on
Schedule 1.1 attached hereto and incorporated herein by reference.

     “Inventory” means any “inventory,” as such term is defined in Article or Chapter 9 of
the UCC, now owned or hereafter acquired by a Debtor, and, in any event, shall include, without
limitation, each of the following, whether now owned or hereafter acquired by such Debtor: (a) all
goods and other Personal property of such Debtor that are held for sale or lease or to be furnished
under any contract of service; (b) all raw materials, work-in-process, finished goods, supplies and
materials of such Debtor; (c) all wrapping, packaging, advertising and shipping materials of such
Debtor; (d) all goods that have been returned to, repossessed by or stopped in transit by such
Debtor; and (e) all Documents evidencing any of the foregoing.

     “Investment Property” means any “investment property” as such term is defined in
Article or Chapter 9 of the UCC, now owned or hereafter acquired by a Debtor, and in any event,
shall include without limitation all shares of stock and other equity, partnership or membership
interests constituting securities, of the Domestic Subsidiaries of such Debtor from time to time
owned or acquired by such Debtor in any manner (including, without limitation, the Pledged Shares),
and the certificates and all dividends, cash, instruments, rights and other property from time to
time received, receivable or otherwise distributed or distributable in respect of or in exchange
for any or all of such shares, but excluding any shares of stock or other equity, partnership or
membership interests in any Foreign Subsidiaries of such Debtor.

     “Patent Collateral” shall mean all Patents and Patent Licenses of the Debtors.

     “Patent Licenses” shall mean all license agreements with any other Person in
connection with any of the Patents or such other Person’s patents, whether a Debtor is a licensor
or a licensee under any such license agreement, including, without limitation, the license
agreements listed on Schedule 1.1 hereto and made a part hereof, subject, in each case, to the
terms of such license agreements and the right to prepare for sale, sell and advertise for sale,
all inventory now or hereafter covered by such licenses.

     “Patents” shall mean all letters patent, patent applications and patentable
inventions, including, without limitation, all patents and patent applications identified on
Schedule 1.1 attached hereto and made a part hereof, and including without limitation, (a) all
inventions and improvements described and claimed therein, and patentable inventions, (b) the right
to sue or otherwise recover for any and all past, present and future infringements and
misappropriations thereof, (c) all income, royalties, damages and other payments now and hereafter
due and/or payable with respect thereto (including, without limitation, payments under all Patent
Licenses entered into in connection therewith, and damages and payments for past or future
infringements
thereof), and (d) all rights corresponding thereto and all reissues, divisions, continuations,
continuations-in-part, substitutes, renewals, and extensions thereof, all improvements thereon, and
all other rights of any kind whatsoever of a Debtor accruing thereunder or pertaining thereto.

4

 

     “Pledged Shares” means the shares of capital stock or other equity, partnership or
membership interests described on Schedule 1.2 attached hereto and incorporated herein by
reference, and all other shares of capital stock or other equity, partnership or membership
interests (other than in an entity which is a Foreign Subsidiary) acquired by any Debtor after the
date hereof.

     “Proceeds” means any “proceeds,” as such term is defined in Article or Chapter 9 of
the UCC and, in any event, shall include, but not be limited to, (a) any and all proceeds of any
insurance, indemnity, warranty or guaranty payable to a Debtor from time to time with respect to
any of the Collateral, (b) any and all payments (in any form whatsoever) made or due and payable to
a Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure
or forfeiture of all or any part of the Collateral by any Governmental Authority (or any Person
acting, or purporting to act, for or on behalf of any Governmental Authority), and (c) any and all
other amounts from time to time paid or payable under or in connection with any of the Collateral.

     “Records” are defined in Section 3.2 of this Agreement.

     “Software” means all (i) computer programs and supporting information provided in
connection with a transaction relating to the program, and (ii) computer programs embedded in goods
and any supporting information provided in connection with a transaction relating to the program
whether or not the program is associated with the goods in such a manner that it customarily is
considered part of the goods, and whether or not, by becoming the owner of the goods, a Person
acquires a right to use the program in connection with the goods, and whether or not the program is
embedded in goods that consist solely of the medium in which the program is embedded.

     “Trademark Collateral” shall mean all Trademarks and Trademark Licenses of the
Debtors.

     “Trademark Licenses” shall mean all license agreements with any other Person in
connection with any of the Trademarks or such other Person’s names or trademarks, whether a Debtor
is a licensor or a licensee under any such license agreement, including, without limitation, the
license agreements listed on Schedule 1.1 hereto and made a part hereof, subject, in each case, to
the terms of such license agreements, and the right to prepare for sale, and to sell and advertise
for sale, all inventory now or hereafter covered by such licenses.

     “Trademarks” shall mean all trademarks, service marks, trade names, trade dress or
other indicia of trade origin, trademark and service mark registrations, and applications for
trademark or service mark registrations (except for “intent to use” applications for trademark or
service mark registrations filed pursuant to Section 1(b) of the Lanham Act, unless and until an
Amendment to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of said Act has been
filed), and any renewals thereof, including, without limitation, each registration and
application identified on Schedule 1.1 attached hereto and made a part hereof, and including
without limitation (a) the right to sue or otherwise recover for any and all past, present and
future infringements and misappropriations thereof, (b) all income, royalties, damages and other
payments now and hereafter due and/or payable with respect thereto (including, without

5

 

limitation, payments under all Trademark Licenses entered into in connection therewith, and damages and
payments for past or future infringements thereof) and (c) all rights corresponding thereto and all
other rights of any kind whatsoever of a Debtor accruing thereunder or pertaining thereto, together
in each case with the goodwill of the business connected with the use of, and symbolized by, each
such trademark, service mark, trade name, trade dress or other indicia of trade origin.

     “UCC” means the Uniform Commercial Code as in effect in the State of California;
provided, that if, by applicable law, the perfection or effect of perfection or
non-perfection of the security interest created hereunder in any Collateral is governed by the
Uniform Commercial Code as in effect on or after the date hereof in any other jurisdiction, “UCC”
means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such perfection or the effect of perfection or non-perfection.

     “Vehicles” means all cars, trucks, trailers, construction and earth moving equipment
and other vehicles covered by a certificate of title law of any state and all tires and other
appurtenances to any of the foregoing.

ARTICLE 2

Security Interest

     Section 2.1 Grant of Security Interest.
As collateral security for the prompt payment and performance in full when due of the
Indebtedness (whether at stated maturity, by acceleration or otherwise), each Debtor hereby
pledges, assigns, transfers and conveys to the Agent as collateral, and grants the Agent a
continuing Lien on and security interest in, all of such Debtor’s right, title and interest in and
to the following, whether now owned or hereafter arising or acquired and wherever located
(collectively, the “Collateral”):

	 	(a)	 	all Accounts;
	 
	 	(b)	 	all Chattel Paper;
	 
	 	(c)	 	all General Intangibles;
	 
	 	(d)	 	all Equipment;
	 
	 	(e)	 	all Inventory;
	 
	 	(f)	 	all Documents;
	 
	 	(g)	 	all Instruments;
	 
	 	(h)	 	all Deposit Accounts and any other cash collateral, deposit or investment
accounts, including all cash collateral, deposit or investment accounts established or
maintained pursuant to the terms of this Agreement or the other Loan Documents;

6

 

	 	(i)	 	all Computer Records and Software, whether relating to the foregoing Collateral
or otherwise, but in the case of such Software, subject to the rights of any
non-affiliated licensee of software;
	 
	 	(j)	 	all Investment Property; and
	 
	 	(k)	 	the Proceeds, in cash or otherwise, of any of the property described in the
foregoing clauses (a) through (j) and all Liens, security, rights, remedies and claims
of such Debtor with respect thereto (provided that the grant of a security interest in
Proceeds set forth is in this subsection (k) shall not be deemed to give the applicable
Debtor any right to dispose of any of the Collateral, except as may otherwise be
permitted pursuant to the terms of the Credit Agreement);

provided, however, that “Collateral” shall not include rights under or with respect
to any General Intangible, license, permit or authorization to the extent any such General
Intangible, license, permit or authorization, by its terms or by law, prohibits the assignment of,
or the granting of a Lien over the rights of a grantor thereunder or which would be invalid or
unenforceable upon any such assignment or grant (the “Restricted Assets”), provided that
(A) the Proceeds of any Restricted Asset shall be continue to be deemed to be “Collateral”, and (B)
this provision shall not limit the grant of any Lien on or assignment of any Restricted Asset to
the extent that the UCC or any other applicable law provides that such grant of Lien or assignment
is effective irrespective of any prohibitions to such grant provided in any Restricted Asset (or
the underlying documents related thereto). Concurrently with any such Restricted Asset being
entered into or arising after the date hereof, the applicable Debtor shall be obligated to use good
faith commercially reasonable efforts to obtain any waiver or consent (in form and substance
acceptable to the Agent) necessary to allow such Restricted Asset to constitute Collateral
hereunder if the failure of such Debtor to have such Restricted Asset would have a Material Adverse
Effect.

     Section 2.2 Debtors Remain Liable. Notwithstanding anything to the contrary contained herein, (a) the Debtors shall remain
liable under the contracts, agreements, documents and instruments included in the Collateral to the
extent set forth therein to perform all of its duties and obligations thereunder to the same extent
as if this Agreement had not been executed, (b) the exercise by the Agent or any Bank of any of
their respective rights or remedies hereunder shall not release the Debtors from any of their
duties or obligations under the contracts, agreements, documents and instruments included in the
Collateral, and (c) neither the Agent nor any of the Banks shall have any indebtedness, liability
or obligation (by assumption or otherwise) under any of the contracts, agreements, documents and
instruments included in the Collateral by reason of this Agreement, and none of them shall be
obligated to perform any of the obligations or duties of the Debtors thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

ARTICLE 3

Representations and Warranties

     To induce the Agent to enter into this Agreement and the Agent and the Banks to enter into the
Credit Agreement, each Debtor represents and warrants to the Agent and to each Bank as

7

 

follows,
each such representation and warranty being a continuing representation and warranty, surviving
until termination of this Agreement in accordance with the provisions of Section 7.12 of
this Agreement:

     Section 3.1 Title. Such Debtor is, and with respect to Collateral acquired after the date hereof such Debtor
will be, the legal and beneficial owner of the Collateral free and clear of any Lien or other
encumbrance, except for the Permitted Liens, provided that, other than the Lien established under
this Agreement, no Lien on any Pledged Shares shall constitute a Permitted Lien.

     Section 3.2 Change in Form or Jurisdiction; Successor by Merger; Location of Books and
Records. As of the date hereof, each Debtor (a) is duly organized and validly existing as a
corporation (or other business organization) under the laws of its jurisdiction of organization;
(b) is formed in the jurisdiction of organization and has the registration number and tax
identification number set forth on Schedule 3.2 attached hereto; (c) has not changed its respective
corporate form or its jurisdiction of organization at any time during the five years immediately
prior to the date hereof, except as set forth on such Schedule 3.2; (d) except as set forth on such
Schedule 3.2 attached hereto, no Debtor has, at any time during the five years immediately prior to
the date hereof, become the successor by merger, consolidation, acquisition, change in form, nature
or jurisdiction of organization or otherwise of any other Person, and (e) keeps true and accurate
books and records regarding the Collateral (the “Records”) in the office indicated on such
Schedule 3.2.

     Section 3.3 Representations and Warranties Regarding Certain Types of Collateral.

	 	(a)	 	Location of Inventory and Equipment. As of the date hereof, (i) all
Inventory (except Inventory in transit) and Equipment (except trailers, rolling stock,
vessels, aircraft and Vehicles) of each Debtor are located at the places specified on
Schedule 3.3(a) attached hereto, (ii) the name and address of the landlord leasing any
location to any Debtor is identified on such Schedule 3.3(a), and (iii) the name of and
address of each bailee or warehouseman which holds any Collateral and the location of
such Collateral is identified on such Schedule 3.3(a).
	 
	 	(b)	 	Account Information. As of the date hereof, all Deposit Accounts, cash
collateral account or investment accounts of each Debtor (except for those Deposit
Accounts located with the Agent) are located at the banks specified on
Schedule 3.3(b) attached hereto which Schedule sets forth the true and correct name
of each bank where such accounts are located, such bank’s address, the type of
account and the account number.
	 
	 	(c)	 	Documents. As of the date hereof, except as set forth on Schedule
3.3(c), none of the Inventory or Equipment of such Debtor (other than trailers, rolling
stock, vessels, aircraft and Vehicles) is evidenced by a Document (including, without
limitation, a negotiable document of title).

8

 

	 	(d)	 	Intellectual Property. Set forth on Schedule 1.1 (the same may be
amended from time to time) is a true and correct list of the registered Patents, Patent
Licenses, registered Trademarks, Trademark Licenses, registered Copyrights and
Copyright Licenses owned by the Debtors (including, in the case of the Patents,
Trademarks and Copyrights, the applicable name, date of registration (or of application
if registration not completed) and application or registration number).

     Section 3.4 Pledged Shares.

	 	(a)	 	Duly Authorized and Validly Issued. The Pledged Shares that are shares
of a corporation have been duly authorized and validly issued and are fully paid and
nonassessable, and the Pledged Shares that are membership interests or partnership
units (if any) have been validly granted, under the laws of the jurisdiction of
organization of the issuers thereof, and, to the extent applicable, are fully paid and
nonassessable. No such membership or partnership interests constitute “securities”
within the meaning of Article 8 of the UCC, and each Debtor covenants and agrees not to
allow any such membership or partnership interest to become “securities” for purposes
of Article 8 of the UCC.
	 
	 	(b)	 	Valid Title; No Liens; No Restrictions. Each Debtor is the legal and
beneficial owner of the Pledged Shares, free and clear of any Lien (other than the
Liens created by this Agreement), and such Debtor has not sold, granted any option with
respect to, assigned, transferred or otherwise disposed of any of its rights or
interest in or to the Pledged Shares. None of the Pledged Shares are subject to any
contractual or other restrictions upon the pledge or other transfer of such Pledged
Shares, other than those imposed by securities laws generally. No issuer of Pledged
Shares is party to any agreement granting “control” (as defined in Section 8-106 of the
UCC) of such Debtor’s Pledged Shares to any third party. All such Pledged Shares are
held by each Debtor directly and not through any securities intermediary.
	 
	 	(c)	 	Description of Pledged Shares; Ownership. The Pledged Shares
constitute the percentage of the issued and outstanding shares of stock, partnership
units or membership interests of the issuers thereof indicated on Schedule 1.2 (as the
same may be amended from time to time) and such Schedule contains a
description of all shares of capital stock, membership interests and other equity
interests of or in any Subsidiaries owned by such Debtor.

     Section 3.5 Intellectual Property.

	 	(a)	 	Filings and Recordation. Each Debtor has made all necessary filings
and recordations to protect and maintain its interest in the Trademarks, Patents and
Copyrights set forth on Schedule
1.1 (as the same may be amended from time to time),
including, without limitation, all necessary filings and recordings, and payments of
all maintenance fees, in the United States Patent and Trademark Office and United
States Copyright Office to the extent such Trademarks, Patents and Copyrights are
material to such Debtor’s business. Also set forth on
 Schedule 

9

 

 1.1 (as the same may be
amended from time to time) is a complete and accurate list of all of the material
Trademark Licenses, Patent Licenses and Copyright Licenses owned by the Debtors as of
the date hereof.

	 	(b)	 	Trademarks and Trademark Licenses Valid. (i) Each Material Trademark
of the Debtors set forth on Schedule 1.1 (as the same may be amended from time to time)
is subsisting and has not been adjudged invalid, unregisterable or unenforceable, in
whole or in part, and, to the Debtors’ knowledge, is valid, registrable and
enforceable, except as enforceability may be limited by bankruptcy insolvency,
reorganization moratorium or similar laws affecting the enforcement of creditors rights
generally and by equitable principles (whether enforcement is sought by proceedings in
equity or at law) (ii) each of the Trademark Licenses set forth on Schedule 1.1 (as the
same may be amended from time to time) is validly subsisting and has not been adjudged
invalid or unenforceable, in whole or in part, and, to the Debtors’ knowledge, is valid
and enforceable, except as enforceability may be limited by bankruptcy insolvency,
reorganization moratorium or similar laws affecting the enforcement of creditors rights
generally and by equitable principles (whether enforcement is sought by proceedings in
equity or at law) and (iii) the Debtors have notified the Agent in writing of all uses
of any material item of Trademark Collateral of which any Debtor is aware which could
reasonably be expected to lead to such item becoming invalid or unenforceable,
including unauthorized uses by third parties and uses which were not supported by the
goodwill of the business connected with such Collateral.
	 
	 	(c)	 	Patents and Patent Licenses Valid. (i) Each Material Patent of the
Debtors set forth on Schedule 1.1 (as the same may be amended from time to time) is
subsisting and has not been adjudged invalid, unpatentable or unenforceable, in whole
or in part, and, to the Debtors’ knowledge, is valid, patentable and enforceable except
as otherwise set forth on Schedule 1.1 (as the same may be amended from time to time),
except as enforceability may be limited by bankruptcy insolvency, reorganization
moratorium or similar laws affecting the enforcement of creditors rights generally and
by equitable principles (whether
enforcement is sought by proceedings in equity or at law) (ii) each of the Patent
Licenses set forth on Schedule 1.1 (as the same may be amended from time to time) is
validly subsisting and has not been adjudged invalid or unenforceable, in whole or
in part, and, to the Debtors’ knowledge, is valid and enforceable, except as
enforceability may be limited by bankruptcy insolvency, reorganization moratorium or
similar laws affecting the enforcement of creditors rights generally and by
equitable principles (whether enforcement is sought by proceedings in equity or at
law) and (iii) the Debtors have notified the Agent in writing of all uses of any
item of Patent Collateral material to any Debtor’s business of which any Debtor is
aware which could reasonably be expected to lead to such item becoming invalid or
unenforceable.
	 
	 	(d)	 	Copyright and Copyright Licenses Valid. (i) Each Material Copyright of
the Debtors set forth on Schedule 1.1 (as the same may be amended from time to

10

 

time) is
subsisting and has not been adjudged invalid, uncopyrightable or unenforceable, in
whole or in part, and, to the Debtors’ knowledge, is valid, copyrightable and
enforceable, except as enforceability may be limited by bankruptcy insolvency,
reorganization moratorium or similar laws affecting the enforcement of creditors rights
generally and by equitable principles (whether enforcement is sought by proceedings in
equity or at law) (ii) each of the Copyright Licenses set forth on Schedule 1.1 (as the
same may be amended from time to time) is validly subsisting and has not been adjudged
invalid or unenforceable, in whole or in part, and, to the Debtors’ knowledge, is valid
and enforceable, except as enforceability may be limited by bankruptcy insolvency,
reorganization moratorium or similar laws affecting the enforcement of creditors rights
generally and by equitable principles (whether enforcement is sought by proceedings in
equity or at law) and (iii) the Debtors have notified the Agent in writing of all uses
of any item of Copyright Collateral material to any Debtor’s business of which any
Debtor is aware which could reasonably be expected to lead to such item becoming
invalid or unenforceable.

	 	(e)	 	No Assignment. The Debtors have not made a previous assignment, sale,
transfer or agreement constituting a present or future assignment, sale, transfer or
encumbrance of any of the Intellectual Property Collateral, except with respect to
non-exclusive licenses granted in the ordinary course of business or as permitted by
this Agreement or the Loan Documents. No Debtor has granted any license, shop right,
release, covenant not to sue, or non-assertion assurance to any Person with respect to
any part of the Intellectual Property Collateral, except as set forth on Schedule 1.1
or as otherwise disclosed to the Agent in writing.
	 
	 	(f)	 	Products Marked. Each Debtor has marked its products with the
trademark registration symbol, copyright notices, the numbers of all appropriate
patents, the common law trademark symbol or the designation “patent pending,” as the
case may be, to the extent that Debtor, in good faith, believes is reasonably and
commercially practicable.
	 
	 	(g)	 	Other Rights. Except for the Trademark Licenses, Patent Licenses and
Copyright Licenses listed on Schedule 1.1 hereto under which a Debtor is a licensee, no
Debtor has knowledge of the existence of any right or any claim (other than as provided
by this Agreement) that is likely to be made under or against any item of Intellectual
Property Collateral contained on Schedule 1.1 to the extent such claim could reasonably
be expected to have a Material Adverse Effect.
	 
	 	(h)	 	No Claims. Except as set forth on Schedule 1.1 or as otherwise
disclosed to the Agent in writing, no claim has been made and is continuing or, to any
Debtor’s knowledge, threatened that the use by any Debtor of any item of Intellectual
Property Collateral is invalid or unenforceable or that the use by any Debtor of any
Intellectual Property Collateral does or may violate the rights of any Person, except
to the extent such invalidity, unenforceability or violation could not reasonably be
expected to have a Material Adverse Effect. To the Debtors’

11

 

	 	 	 	knowledge, there is no
infringement or unauthorized use of any item of Intellectual Property Collateral
contained on Schedule 1.1 or as otherwise disclosed to the Agent in writing and except
to the extent such claim could not reasonably be expected to have a Material Adverse
Effect.
	 
	 	(i)	 	No Consent. No consent of any party (other than such Debtor) to any
Patent License, Copyright License or Trademark License constituting Intellectual
Property Collateral is required, or purports to be required, to be obtained by or on
behalf of such Debtor in connection with the execution, delivery and performance of
this Agreement that has not been obtained. To any Debtor’s knowledge, each Patent
License, Copyright License and Trademark License constituting Intellectual Property
Collateral is in full force and effect and constitutes a valid and legally enforceable
obligation of the applicable Debtor and (to the knowledge of the Debtors) each other
party thereto except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditor’s
rights generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law). No consent or authorization of, filing with or other
act by or in respect of any Governmental Authority is required in connection with the
execution, delivery, performance, validity or enforceability of any of the Patent
Licenses, Copyright Licenses or Trademark Licenses by any party thereto other than
those which have been duly obtained, made or performed and are in full force and
effect. Neither the Debtors nor (to the knowledge of any Debtor) any other party to any
Patent License, Copyright License or Trademark License constituting Collateral is in
default in the performance or observance of any of the terms thereof, except for such
defaults as would not reasonably be expected, in the aggregate, to have a material
adverse effect on the value of the Intellectual Property Collateral. To the knowledge
of such Debtor, the right, title and interest of the applicable Debtor in, to and under
each Patent License, Copyright License and Trademark License constituting Intellectual
Property Collateral is not subject to any defense, offset, counterclaim or claim.

     Section 3.6 Priority. No financing statement, security agreement or other Lien instrument covering all or any
part of the Collateral is on file in any public office with respect to any outstanding obligation
of such Debtor except (i) as may have been filed in favor of the Agent pursuant to this Agreement
and the other Loan Documents and (ii) financing statements filed to perfect Permitted Liens (which
shall not, in any event, grant a Lien over the Pledged Shares).

     Section 3.7 Perfection. Upon (a) the filing of Uniform Commercial Code financing statements in the jurisdictions
listed on Schedule 3.7 attached hereto, and (b) the recording of this Agreement in the United
States Patent and Trademark Office and the United States Copyright Office, the security interest in
favor of the Agent created herein will constitute a valid and perfected Lien upon and security
interest in the Collateral which may be created and perfected either under the UCC by filing
financing statements or by a filing with the United States Patent and Trademark Office and the
United States Copyright Office.

12

 

ARTICLE 4

Covenants

     Each Debtor covenants and agrees with the Agent, until termination of this Agreement in
accordance with the provisions of Section 7.12 hereof, as follows:

     Section 4.1 Covenants Regarding Certain Kinds of Collateral.

     (a) Promissory Notes and Tangible Chattel Paper. If Debtors, now or at any time hereafter, collectively hold or acquire any promissory notes
or tangible Chattel Paper for which the principal amount thereof or the obligations evidenced
thereunder are, in the aggregate, in excess of $250,000, the applicable Debtors shall promptly
notify the Agent in writing thereof and forthwith endorse, assign and deliver the same to the
Agent, accompanied by such instruments of transfer or assignment duly executed in blank as the
Agent may from time to time reasonably specify, and cause all such Chattel Paper to bear a legend
reasonably acceptable to the Agent indicating that the Agent has a security interest in such
Chattel Paper.

     (b) Electronic Chattel Paper and Transferable Records. If Debtors, now or at any time hereafter, collectively hold or acquire an interest in any
electronic Chattel Paper or any “transferable record,” as that term is defined in the federal
Electronic Signatures in Global and National Commerce Act, or in the Uniform Electronic
Transactions Act as in effect in any relevant jurisdiction, worth, in the aggregate, in excess of
$250,000, the applicable Debtors shall promptly notify the Agent thereof and, at the request and
option of the Agent, shall take such action as the Agent may reasonably request to vest in the
Agent control, under Section 9-105 of the UCC, of such electronic chattel paper or control
under the federal Electronic Signatures in Global and National Commerce Act, or the Uniform
Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record.

     (c) Letter-of-Credit Rights. If Debtors, now or at any time hereafter, collectively are or become beneficiaries under
letters of credit, with an aggregate face amount in excess of $250,000, the applicable Debtors
shall promptly notify the Agent thereof and, at the request of the Agent, the applicable Debtors
shall, pursuant to an agreement in form and substance reasonably satisfactory to the Agent either
arrange (i) for the issuer and any confirmer of such letters of credit to consent to an assignment
to the Agent of the proceeds of the letters of credit or (ii) for the Agent to become the
transferee beneficiary of the letters of credit, together with, in each case, any such other
actions as reasonably requested by the Agent to perfect its first priority Lien in such letter of
credit rights. The applicable Debtor shall retain the proceeds of the applicable letters of credit
until a Default or Event of Default has occurred and is continuing whereupon the proceeds are to be
delivered to the Agent and applied as set forth in the Credit Agreement.

     (d) Commercial Tort Claims. If Debtors, now or at any time hereafter, collectively hold or acquire any commercial tort
claims, which, the reasonably estimated value of which are in aggregate excess of $250,000, the
applicable Debtors shall immediately notify the Agent in a writing signed by such Debtors of the
particulars thereof and grant to the Agent in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and
substance reasonably satisfactory to the Agent.

13

 

     (e) Pledged Shares. All certificates or instruments representing or evidencing the Pledged Shares or any
Debtor’s rights therein shall be delivered to the Agent promptly upon Debtor gaining any rights
therein, in suitable form for transfer by delivery or accompanied by duly executed stock powers or
instruments of transfer or assignments in blank, all in form and substance reasonably acceptable to
the Agent.

     (f) Equipment and Inventory.

	 	(i)	 	Location. Each Debtor shall keep the Equipment (other
than Vehicles) and Inventory (other than Inventory in transit) which is in such
Debtor’s possession or in the possession of any bailee or warehouseman at any
of the locations specified on
Schedule 3.3(a) attached hereto or as otherwise
disclosed in writing to the Agent from time to time, subject to compliance with
the other provisions of this Agreement, including subsection (ii) below.
	 
	 	(ii)	 	Landlord Consents and Bailee’s Waivers. Borrower shall
provide a landlord consent in form acceptable to Agent for its corporate
headquarters and upon the occurrence and during the continuance of an Event of
Default, each Debtor shall provide, as applicable, a bailee’s waiver or
landlord consent, in form and substance acceptable to the Agent, for each
non-Debtor owned location of Collateral disclosed on Schedule 3.3(a) or
otherwise disclosed to the Agent in writing, promptly after leasing such
location, and shall take all other actions required by the Agent to perfect the
Agent’s security interest in the Equipment and Inventory with the priority
required by this Agreement.
	 
	 	(iii)	 	Maintenance. Each Debtor shall maintain the Equipment
and Inventory in such condition as may be specified by the terms of the Credit
Agreement.

     (g) Intellectual Property.

	 	(i)	 	Trademarks. Each Debtor agrees to take all necessary
steps, including, without limitation, in the United States Patent and Trademark
Office or in any court, to (x) defend, enforce, preserve the validity and
ownership of, and maintain each Trademark registration and each Trademark
License identified on Schedule 1.1 hereto, and (y) pursue each trademark
application now or hereafter identified on Schedule 1.1 hereto, including,
without limitation, the filing of responses to office actions issued by the
United States Patent and Trademark Office, the filing of applications for
renewal, the filing of affidavits under Sections 8 and 15 of the United States
Trademark Act, and the participation in opposition, cancellation, infringement
and misappropriation proceedings, except, in each case in which the Debtors
have determined, using their commercially reasonable judgment, that any of the
foregoing is not of material economic value to them. Each Debtor agrees to take
corresponding steps with respect to each

14

 

	 	 	 	new or acquired Trademark
registration, Trademark application or any rights obtained under any Trademark
License, in each case, which it is now or later becomes entitled, except in
each case in which such Debtor has determined, using its commercially
reasonable judgment, that any of the foregoing is not of material economic
value to it. Any expenses incurred in connection with such activities shall be
borne by the Debtors.
	 
	 	(ii)	 	Patents. Each Debtor to take all necessary steps,
including, without limitation, in the United States Patent and Trademark Office
or in any court, to (x) defend, enforce, preserve the validity and ownership
of, and maintain each Patent and each Patent License identified on Schedule 1.1
hereto, and (y) pursue each patent application, now or hereafter identified on
Schedule 1.1 hereto, including, without limitation, the filing of divisional,
continuation, continuation-in-part and substitute applications, the filing of
applications for reissue, renewal or extensions, the payment of maintenance
fees, and the participation in interference, reexamination,
opposition, infringement and misappropriation proceedings, except in each
case in which the Debtors have determined, using their commercially
reasonable judgment, that any of the foregoing is not of material economic
value to them. Each Debtor agrees to take corresponding steps with respect
to each new or acquired Patent, patent application, or any rights obtained
under any Patent License, in each case, which it is now or later becomes
entitled, except in each case in which the Debtors have determined, using
their commercially reasonable judgment, that any of the foregoing is not of
material economic value to them. Any expenses incurred in connection with
such activities shall be borne by the Debtors.
	 
	 	(iii)	 	Copyrights. Each Debtor agrees to take all necessary
steps, including, without limitation, in the United States Copyright Office or
in any court, to (x) defend, enforce, and preserve the validity and ownership
of each Copyright and each Copyright License identified on Schedule 1.1 hereto,
and (y) pursue each Copyright and mask work application, now or hereafter
identified on Schedule 1.1 hereto, including, without limitation, the payment
of applicable fees, and the participation in infringement and misappropriation
proceedings, except in each case in which the Debtors have determined, using
their commercially reasonable judgment, that any of the foregoing is not of
material economic value to them. Each Debtor agrees to take corresponding steps
with respect to each new or acquired Copyright, Copyright and mask work
application, or any rights obtained under any Copyright License, in each case,
which it is now or later becomes entitled, except in each case in which the
Debtors have determined, using their commercially reasonable judgment, that any
of the foregoing is not of material economic value to them. Any expenses
incurred in connection with such activities shall be borne by the Debtors.
	 
	 	(iv)	 	No Abandonment. The Debtors shall not abandon any
Trademark, Patent, Copyright or any pending Trademark, Copyright, mask work
 or

15

 

	 	 	 	Patent application, without the written consent of the Agent, unless the
Debtors shall have previously determined, using their commercially reasonable
judgment, that such use or the pursuit or maintenance of such Trademark
registration, Patent, Copyright registration or pending Trademark, Copyright,
mask work or
 Patent application is not of material economic value to it, in
which case, the Debtors shall give notice of any such abandonment to the Agent
promptly in writing after the determination to abandon such Intellectual
Property Collateral is made.
	 
	 	(v)	 	No Infringement. In the event that a Debtor becomes
aware that any item of the Intellectual Property Collateral which such Debtor
has determined, using its commercially reasonable judgment, to be material to
its business is infringed or misappropriated by a third party, such Debtor
shall promptly notify the Agent promptly and in writing, in reasonable detail,
and shall take such actions as such Debtor or the Agent deems reasonably
appropriate under the circumstances to protect such Intellectual Property
Collateral, including, without limitation, suing for infringement or
misappropriation and for an injunction against such infringement or
misappropriation. Any expense incurred in connection with such activities
shall be borne by the Debtors. Each Debtor will advise the Agent promptly
and in writing, in reasonable detail, of any adverse determination or the
institution of any proceeding (including, without limitation, the
institution of any proceeding in the United States Patent and Trademark
Office, the United States Copyright Office or any court) regarding any
material item of the Intellectual Property Collateral.

	 	(h)	 	Accounts and Contracts. Each Debtor shall, in accordance with its
usual business practices in effect from time to time, endeavor to collect or cause to
be collected from each account debtor under its Accounts, as and when due, any and all
amounts owing under such Accounts. So long as no Default or Event of Default has
occurred and is continuing and except as otherwise provided in Section 6.3,
each Debtor shall have the right to collect and receive payments on its Accounts, and
to use and expend the same in its operations in each case in compliance with the terms
of each of the Credit Agreement.
	 
	 	(i)	 	Vehicles; Aircraft and Vessels. Notwithstanding any other provision of
this Agreement, no Debtor shall be required to make any filings as may be necessary to
perfect the Agent’s Lien on its Vehicles, aircraft and vessels, unless a Default or an
Event of Default has occurred and is continuing, whereupon the Agent may require such
filings be made.
	 
	 	(j)	 	[Intentionally Deleted].
	 
	 	(k)	 	Deposit Accounts. Each Debtor agrees to promptly notify the Agent in
writing of all Deposit Accounts, cash collateral accounts or investments accounts
opened after the date hereof (except with Agent), and such Debtor shall take such
actions as may be necessary or deemed desirable by the Agent (including the execution

16

 

	 	 	 	and delivery of an account control agreement in form and substance satisfactory to the
Agent) to grant the Agent a perfected, first priority Lien over each of the Deposit
Accounts, cash collateral accounts or investment accounts disclosed on Schedule 3.3(b)
and over each of the additional accounts disclosed pursuant to this Section
4.1(k).

     Section 4.2 Encumbrances. Each Debtor shall not create, permit or suffer to exist, and shall defend the Collateral
against any Lien (other than the Permitted Liens, provided that no Lien, other than the Lien
created hereunder, shall exist over the Pledged Shares) or any restriction upon the pledge or other
transfer thereof (other than as specifically permitted in the Credit Agreement), and shall defend
such Debtor’s title to and other rights in the Collateral and the Agent’s pledge and collateral
assignment of and security interest in the Collateral against the claims and demands of all
Persons. Except to the extent permitted by the Credit Agreement or in connection with any
release of Collateral under Section 7.13 hereof (but only to the extent of any
Collateral so released), such Debtor shall do nothing to impair the rights of the Agent in the
Collateral.

     Section 4.3 Disposition of Collateral. Except as otherwise permitted under the Credit Agreement, no Debtor shall enter into or
consummate any transfer or other disposition of Collateral.

     Section 4.4 Insurance. The Collateral pledged by such Debtor or the Debtors will be insured (to the extent such
Collateral is insurable) with insurance coverage in such amounts and of such types as are required
by the terms of the Credit Agreement. In the case of all such insurance policies, each such Debtor
shall designate the Agent, as mortgagee or lender loss payee and such policies shall provide that
any loss be payable to the Agent, as mortgagee or lender loss payee, as its interests may appear.
Further, upon the request of the Agent, each such Debtor shall deliver certificates evidencing such
policies, including all endorsements thereon and those required hereunder, to the Agent; and each
such Debtor assigns to the Agent, as additional security hereunder, all its rights to receive
proceeds of insurance with respect to the Collateral. All such insurance shall, by its terms,
provide that the applicable carrier shall, prior to any cancellation before the expiration date
thereof, mail ten (10) days’ prior written notice to the Agent of such cancellation. Each Debtor
further shall provide the Agent upon request with evidence reasonably satisfactory to the Agent
that each such Debtor is at all times in compliance with this paragraph. Upon the occurrence and
during the continuance of a Default or an Event of Default, the Agent may, at its option, act as
each such Debtor’s attorney-in-fact in obtaining, adjusting, settling and compromising such
insurance and endorsing any drafts. Upon such Debtor’s failure to insure the Collateral as required
in this covenant, the Agent may, at its option, procure such insurance and its costs therefor shall
be charged to such Debtor, payable on demand, with interest at the highest rate set forth in the
Credit Agreement and added to the Indebtedness secured hereby. The disposition of proceeds payable
to such Debtor of any insurance on the Collateral (the “Insurance Proceeds”) shall be
governed by the following:

	 	(a)	 	provided that no Default or Event of Default has occurred and is continuing
hereunder, (i) if the amount of Insurance Proceeds in respect of any loss or casualty
does not exceed One Million Dollars ($1,000,000), such Debtor shall be entitled, in the
event of such loss or casualty, to receive all such Insurance

17

 

	 	 	 	Proceeds and to apply the
same toward the replacement of the Collateral affected thereby or to the purchase of
other assets to be used in such Debtor’s business (provided that such assets shall be
subjected to a first priority Lien in favor of the Agent and such repurchase of assets
shall occur within 270 days of such Debtor receiving the Insurance Proceeds); and (ii)
if the amount of Insurance Proceeds in respect of any loss or casualty exceeds One
Million Dollars ($1,000,000), such Insurance Proceeds shall be paid to and received by
the Agent, for release to such Debtor for the replacement of the Collateral affected
thereby or to the purchase of other assets to be used in such Debtor’s business
(provided that such assets shall be subjected to a first priority Lien in favor of the
Agent); or, upon written request of such Debtor (accompanied by reasonable supporting
documentation), for such
other use or purpose as approved by the Agent, in their reasonable discretion, it
being understood and agreed in connection with any release of funds under this
subparagraph (ii), that the Agent may impose reasonable and customary conditions on
the disbursement of such Insurance Proceeds; and
	 
	 	(b)	 	if a Default or Event of Default has occurred or is continuing and is not
waived as provided in the Credit Agreement, all Insurance Proceeds in respect of any
loss or casualty shall be paid to and received by the Agent, to be applied by the Agent
against the Indebtedness in the manner specified in the Credit Agreement and/or to be
held by the Agent as cash collateral for the Indebtedness, as the Agent may direct in
its sole discretion.

     Section 4.5 Corporate Changes; Books and Records; Inspection Rights. (a) Each Debtor shall not change its respective name, identity, corporate structure or
jurisdiction of organization, or identification number in any manner that might make any financing
statement filed in connection with this Agreement seriously misleading within the meaning of
Section 9-506 of the UCC unless such Debtor shall have given the Agent ten (10) days prior written
notice with respect to any change in such Debtor’s corporate structure, jurisdiction of
organization, name or identity and shall have taken all action deemed reasonably necessary by the
Agent under the circumstances to protect its Liens and the perfection and priority thereof, (b)
each Debtor shall keep the Records at the location specified on Schedule 3.2 as the location of
such books and records or as otherwise specified in writing to the Agent and (c) the Debtors shall
permit the Agent, the Banks, and their respective agents and representatives to conduct
inspections, discussion and audits of the Collateral in accordance with the terms of the Credit
Agreement.

     Section 4.6 Notification of Lien; Continuing Disclosure.
Each Debtor shall promptly notify the Agent in writing of any Lien, encumbrance or claim
(other than a Permitted Lien, to the extent not otherwise subject to any notice requirements under
the Credit Agreement) that has attached to or been made or asserted against any of the Collateral
upon becoming aware of the existence of such Lien, encumbrance or claim.

     Section 4.7 Covenants Regarding Pledged Shares

     (a) Voting Rights and Distributions.

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	 	(i)	 	So long as no Default or Event of Default shall have occurred
and be continuing (both before and after giving effect to any of the actions or
other matters described in clauses (A) or (B) of this subparagraph):

	 	(A)	 	Each Debtor shall be entitled to exercise any
and all voting and other consensual rights (including, without
limitation, the right to give consents, waivers and ratifications)
pertaining to any of the Pledged Shares or any part thereof;
provided, however, that no vote shall be cast or
consent, waiver or ratification given or action
taken without the prior written consent of the Agent which would
violate any provision of this Agreement or the Credit Agreement; and
	 
	 	(B)	 	Except as otherwise provided by the Credit
Agreement, such Debtor shall be entitled to receive and retain any and
all dividends, distributions and interest paid in respect to any of the
Pledged Shares.

	 	(ii)	 	Upon the occurrence and during the continuance of a Default or
an Event of Default:

	 	(A)	 	The Agent may, without notice to such Debtor,
transfer or register in the name of the Agent or any of its nominees,
for the equal and ratable benefit of the Banks, any or all of the
Pledged Shares and the Proceeds thereof (in cash or otherwise) held by
the Agent hereunder, and the Agent or its nominee may thereafter, after
delivery of notice to such Debtor, exercise all voting and corporate
rights at any meeting of any corporation issuing any of the Pledged
Shares and any and all rights of conversion, exchange, subscription or
any other rights, privileges or options pertaining to any of the
Pledged Shares as if the Agent were the absolute owner thereof,
including, without limitation, the right to exchange, at its
discretion, any and all of the Pledged Shares upon the merger,
consolidation, reorganization, recapitalization or other readjustment
of any corporation issuing any of such Pledged Shares or upon the
exercise by any such issuer or the Agent of any right, privilege or
option pertaining to any of the Pledged Shares, and in connection
therewith, to deposit and deliver any and all of the Pledged Shares
with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Agent may
determine, all without liability except to account for property
actually received by it, but the Agent shall have no duty to exercise
any of the aforesaid rights, privileges or options, and the Agent shall
not be responsible for any failure to do so or delay in so doing.

19

 

	 	(B)	 	All rights of such Debtor to exercise the
voting and other consensual rights which it would otherwise be entitled
to exercise pursuant to Section 4.7(a)(i)(A) and to receive the
dividends, interest and other distributions which it would otherwise be
authorized to receive and retain pursuant to Section
4.7(a)(i)(B) shall be suspended until such Default or Event of
Default shall no longer exist, and all such rights shall, until such
Default or Event of Default shall no longer exist, thereupon become
vested in the Agent which shall thereupon have the sole right to
exercise such voting and other consensual rights and to receive, hold
and dispose
of as Pledged Shares such dividends, interest and other
distributions.
	 
	 	(C)	 	All dividends, interest and other distributions
which are received by such Debtor contrary to the provisions of this
Section 4.7(a)(ii) shall be received in trust for the benefit
of the Agent, shall be segregated from other funds of such Debtor and
shall be forthwith paid over to the Agent as Collateral in the same
form as so received (with any necessary endorsement).
	 
	 	(D)	 	Each Debtor shall execute and deliver (or cause
to be executed and delivered) to the Agent all such proxies and other
instruments as the Agent may reasonably request for the purpose of
enabling the Agent to exercise the voting and other rights which it is
entitled to exercise pursuant to this Section 4.7(a)(ii) and to
receive the dividends, interest and other distributions which it is
entitled to receive and retain pursuant to this Section
4.7(a)(ii). The foregoing shall not in any way limit the Agent’s
power and authority granted pursuant to the other provisions of this
Agreement.

     (b) Possession; Reasonable Care
.. Regardless of whether a Default or an Event of Default has occurred or is continuing, the
Agent shall have the right to hold in its possession all Pledged Shares pledged, assigned or
transferred hereunder and from time to time constituting a portion of the Collateral. The Agent
may appoint one or more agents (which in no case shall be a Debtor or an affiliate of a Debtor) to
hold physical custody, for the account of the Agent, of any or all of the Collateral. The Agent
shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral
in its possession if the Collateral is accorded treatment substantially equal to that which the
Agent accords its own property, it being understood that the Agent shall not have any
responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Collateral, whether or not the Agent has or is
deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights
against any parties with respect to any Collateral, except, subject to the terms hereof, upon the
written instructions of the Banks. Following the occurrence and continuance of an Event of
Default, the Agent shall be entitled to take ownership of the Collateral in accordance with the
UCC.

     Section 4.8 New Subsidiaries; Additional Collateral 

20

 

	 	(a)	 	With respect to each Domestic Subsidiary which becomes a Material Subsidiary of
a Debtor subsequent to the date hereof or which is otherwise required under the
provisions of Section 7.13 of the Credit Agreement to execute and deliver a Guaranty,
execute and deliver such joinders or security agreements or other pledge documents as
are required by the Credit Agreement, within the time periods set forth therein.
	 
	 	(b)	 	Each Debtor agrees that, (i) except with the written consent of the Agent, it
will not permit any Domestic Subsidiary (whether now existing or formed after the date
hereof) to issue to such Debtor or any of such Debtor’s other Subsidiaries any shares
of stock, membership interests, partnership units, notes or other securities or
instruments (including without limitation the Pledged Shares) in addition to or in
substitution for any of the Collateral, unless, concurrently with each issuance
thereof, any and all such shares of stock, membership interests, partnership units,
notes or instruments are encumbered in favor of the Agent under this Agreement or
otherwise (except that only 65% of such shares of stock, membership interests or
partnership units of Foreign Subsidiaries are required to be encumbered in favor of
Agent) (it being understood and agreed that all such shares of stock, membership
interests, partnership units, notes or instruments issued to such Debtor shall, without
further action by such Debtor or the Agent, be automatically encumbered by this
Agreement as Pledged Shares to the extent required under the terms of this Agreement or
the Credit Agreement) and (ii) it will promptly following the issuance thereof deliver
to the Agent (A) an amendment, duly executed by such Debtor, in substantially the form
of Exhibit A hereto in respect of such shares of stock, membership interests,
partnership units, notes or instruments issued to Debtor or (B) if reasonably required
by the Banks, a new stock pledge, duly executed by the applicable Debtor, in
substantially the form of this Agreement (a “New Pledge”), in respect of such
shares of stock, membership interests, partnership units, notes or instruments issued
to any Debtor granting to the Agent, for the benefit of the Banks, a first priority
security interest, pledge and Lien thereon, together in each case with all
certificates, notes or other instruments representing or evidencing the same, together
with such other documentation as the Agent may reasonably request. Such Debtor hereby
(x) authorizes the Agent to attach each such amendment to this Agreement, (y) agrees
that all such shares of stock, membership interests, partnership units, notes or
instruments listed in any such amendment delivered to the Agent shall for all purposes
hereunder constitute Pledged Shares, and (z) is deemed to have made, upon the delivery
of each such amendment, the representations and warranties contained in Section
3.4 of this Agreement with respect to the Collateral covered thereby.
	 
	 	(c)	 	With respect to any Intellectual Property Collateral owned, licensed or
otherwise acquired by any Debtor after the date hereof, and with respect to any Patent,
Trademark or Copyright which is not registered or filed with the U.S. Patent and
Trademark Office and/or the U.S. Copyright Office at the time such Collateral is
pledged by a Debtor to the Agent pursuant to this Security Agreement, and which is
subsequently registered or filed by such Debtor in the appropriate office, such

21

 

	 	 	 	Debtor shall promptly after the acquisition or registration thereof execute or cause to be
executed and delivered to the Agent, (i) an amendment, duly executed by such Debtor, in
substantially the form of Exhibit A hereto, in respect of such additional or newly
registered collateral or (ii) at the Agent’s option, a new security agreement, duly
executed by the applicable Debtor, in substantially the form of this Agreement, in
respect of such additional or newly registered collateral, granting to the Agent, for
the benefit of the Banks, a first priority
security interest, pledge and Lien thereon (subject only to the Permitted Liens),
together in each case with all certificates, notes or other instruments representing
or evidencing the same, and shall, upon the Agent’s request, execute or cause to be
executed any financing statement or other document (including without limitation,
filings required by the U.S. Patent and Trademark Office and/or the U.S. Copyright
Office in connection with any such additional or newly registered collateral)
granting or otherwise evidencing a Lien over such new Intellectual Property
Collateral. Each Debtor hereby (x) authorizes the Agent to attach each amendment to
this Agreement, (y) agrees that all such additional collateral listed in any
amendment delivered to the Agent shall for all purposes hereunder constitute
Collateral, and (z) is deemed to have made, upon the delivery of each such
Amendment, the representations and warranties contained in Section 3.3(d)
and Section 3.5 of this Agreement with respect to the Collateral covered
thereby.

     Section 4.9 Further Assurances
(a) At any time and from time to time, upon the request of the Agent, and at the sole expense
of the Debtors, each Debtor shall promptly execute and deliver all such further agreements,
documents and instruments and take such further action as the Agent may reasonably deem necessary
or appropriate to (i) preserve, ensure the priority, effectiveness and validity of and perfect the
Agent’s security interest in and pledge and collateral assignment of the Collateral (including
causing the Agent’s name to be noted as secured party on any certificate of title for a titled good
if such notation is a condition of the Agent’s ability to enforce its security interest in such
Collateral), unless such actions are specifically waived under the terms of this Agreement and the
other Loan Documents, (ii) carry out the provisions and purposes of this Agreement and (iii) to
enable the Agent to exercise and enforce its rights and remedies hereunder with respect to any of
the Collateral. Except as otherwise expressly permitted by the terms of the Credit Agreement
relating to disposition of assets and except for Permitted Liens (except for Pledged Shares, over
which the only Lien shall be that Lien established under this Agreement), each Debtor agrees to
maintain and preserve the Agent’s security interest in and pledge and collateral assignment of the
Collateral hereunder and the priority thereof.

     (b) Each Debtor hereby irrevocably authorizes the Agent at any time and from time to time to
file in any filing office in any jurisdiction any initial financing statements and amendments
thereto that (i) indicate any or all of the Collateral upon which the Debtors have granted a Lien,
and (ii) provide any other information required by Part 5 of Article 9 of the UCC, including
organizational information and in the case of a fixture filing or a filing for Collateral
consisting of as-extracted collateral or timber to be cut, a sufficient description of real
property to which the Collateral relates. Each Debtor agrees to furnish any such information
required by the preceding paragraph to the Agent promptly upon the Agent’s reasonable request for
such information.

22

 

ARTICLE 5

Rights of the Agent

     Section 5.1 Power of Attorney. Each Debtor hereby irrevocably constitutes and appoints the Agent
and any officer or agent thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the name of such Debtor or in its own
name, to take, after the occurrence and during the continuance of an Event of Default, any and all
actions, and to execute any and all documents and instruments which the Agent at any time and from
time to time deems necessary, to accomplish the purposes of this Agreement and, without limiting
the generality of the foregoing, such Debtor hereby gives the Agent the power and right on behalf
of such Debtor and in its own name to do any of the following after the occurrence and during the
continuance of an Event of Default, without notice to or the consent of such Debtor:

	 	(a)	 	to demand, sue for, collect or receive, in the name of such Debtor or in its
own name, any money or property at any time payable or receivable on account of or in
exchange for any of the Collateral and, in connection therewith, endorse checks, notes,
drafts, acceptances, money orders, documents of title or any other instruments for the
payment of money under the Collateral or any policy of insurance;
	 
	 	(b)	 	to pay or discharge taxes, Liens (other than Permitted Liens) or other
encumbrances levied or placed on or threatened against the Collateral;
	 
	 	(c)	 	(i) to direct account debtors and any other parties liable for any payment
under any of the Collateral to make payment of any and all monies due and to become due
thereunder directly to the Agent or as the Agent shall direct; (ii) to receive payment
of and receipt for any and all monies, claims and other amounts due and to become due
at any time in respect of or arising out of any Collateral; (iii) to sign and endorse
any invoices, freight or express bills, bills of lading, storage or warehouse receipts,
drafts against debtors, assignments, proxies, stock powers, verifications and notices
in connection with accounts and other documents relating to the Collateral; (iv) to
commence and prosecute any suit, action or proceeding at law or in equity in any court
of competent jurisdiction to collect the Collateral or any part thereof and to enforce
any other right in respect of any Collateral; (v) to defend any suit, action or
proceeding brought against such Debtor with respect to any Collateral; (vi) to settle,
compromise or adjust any suit, action or proceeding described above and, in connection
therewith, to give such discharges or releases as the Agent may deem appropriate; (vii)
to exchange any of the Collateral for other property upon any merger, consolidation,
reorganization, recapitalization or other readjustment of the issuer thereof and, in
connection therewith, deposit any of the Collateral with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms as the Agent may
determine; (viii) to add or release any guarantor, indorser, surety or other party to
any of the Collateral; (ix) to renew, extend or otherwise change the terms and
conditions of any of the Collateral; (x) to make, settle, compromise or adjust any
claim under or pertaining to any of the Collateral (including claims

23

 

	 	 	 	under any policy of insurance); (xi) subject to any pre-existing rights or licenses,
to assign any Patent, Copyright or Trademark constituting Intellectual Property
Collateral (along with the goodwill of the business to which any such Patent,
Copyright or Trademark pertains), for such term or terms, on such conditions and in
such manner, as the Agent shall in its sole discretion determine, and (xii) to sell,
transfer, pledge, convey, make any agreement with respect to, or otherwise deal
with, any of the Collateral as fully and completely as though the Agent were the
absolute owner thereof for all purposes, and to do, at the Agent’s option and such
Debtor’s expense, at any time, or from time to time, all acts and things which the
Agent deems necessary to protect, preserve, maintain, or realize upon the Collateral
and the Agent’s security interest therein.

     This power of attorney is a power coupled with an interest and shall be irrevocable. The
Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers,
privileges and options expressly or implicitly granted to the Agent in this Agreement, and shall
not be liable for any failure to do so or any delay in doing so. This power of attorney is
conferred on the Agent solely to protect, preserve, maintain and realize upon its security interest
in the Collateral. The Agent shall not be responsible for any decline in the value of the
Collateral and shall not be required to take any steps to preserve rights against prior parties or
to protect, preserve or maintain any Lien given to secure the Collateral.

     Section 5.2 Setoff. In addition to and not in limitation of any rights of any Banks under
applicable law, the Agent and each Bank shall, upon the occurrence and continuance of an Event of
Default, without notice or demand of any kind, have the right to appropriate and apply to the
payment of the Indebtedness owing to it (whether or not then due) any and all balances, credits,
deposits, accounts or moneys of Debtors then or thereafter on deposit with such Banks; provided,
however, that any such amount so applied by any Bank on any of the Indebtedness owing to it shall
be subject to the provisions of the Credit Agreement.

     Section 5.3 Assignment by the Agent. The Agent may at any time assign or otherwise transfer all
or any portion of its rights and obligations as Agent under this Agreement and the other Loan
Documents (including, without limitation, the Indebtedness) to any other Person, to the extent
permitted by, and upon the conditions contained in, the Credit Agreement and such Person shall
thereupon become vested with all the benefits and obligations thereof granted to the Agent herein
or otherwise.

     Section 5.4 Performance by the Agent. If any Debtor shall fail to perform any covenant or
agreement contained in this Agreement in accordance with this Agreement and the other Loan
Documents, the Agent may (but shall not be obligated to) perform or attempt to perform such
covenant or agreement on behalf of the Debtors, in which case Agent shall exercise good faith and
make diligent efforts to give Debtors prompt prior written notice of such performance or attempted
performance. In such event, the Debtors shall, at the request of the Agent, promptly pay any
reasonable amount expended by the Agent in connection with such performance or attempted
performance to the Agent, together with interest thereon at the interest rate set forth in the
Credit Agreement, from and including the date of such expenditure to but excluding the date such
expenditure is paid in full. Notwithstanding the foregoing, it is

24

 

expressly agreed that the Agent shall not have any liability or responsibility for the
performance (or non-performance) of any obligation of the Debtors under this Agreement.

     Section 5.5 Certain Costs and Expenses. The Debtors shall pay or reimburse the Agent within five
(5) Business Days after demand for all reasonable costs and expenses (including reasonable
attorney’s and paralegal fees) incurred by it in connection with the enforcement, attempted
enforcement, or preservation of any rights or remedies under this Agreement or any other Loan
Document during the existence of an Event of Default or after acceleration of any of the
Indebtedness (including in connection with any “workout” or restructuring regarding the
Indebtedness, and including in any insolvency proceeding or appellate proceeding). The agreements
in this Section 5.5 shall survive the payment in full of the Indebtedness. Notwithstanding
the foregoing, the reimbursement of any fees and expenses incurred by the Banks shall be governed
by the terms and conditions of the applicable Credit Agreement.

     Section 5.6 Indemnification. The Debtors shall indemnify, defend and hold the Agent, and each
Bank and each of their respective officers, directors, employees, counsel, agents and
attorneys-in-fact (each, an “Indemnified Person”) harmless from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, charges,
expenses and disbursements (including reasonable attorneys’ and paralegals’ fees) of any kind or
nature whatsoever which may at any time (including at any time following repayment of the
Indebtedness and the termination, resignation or replacement of the Agent or replacement of any
Bank) be imposed on, incurred by or asserted against any such Indemnified Person in any way
relating to or arising out of this Agreement or any other Loan Document or any document relating to
or arising out of or referred to in this Agreement or any other Loan Document, or the transactions
contemplated hereby, or any action taken or omitted by any such Indemnified Person under or in
connection with any of the foregoing, including with respect to any investigation, litigation or
proceeding (including any bankruptcy proceeding or appellate proceeding) related to or arising out
of this Agreement or the Indebtedness or the use of the proceeds thereof, whether or not any
Indemnified Person is a party thereto (all the foregoing, collectively, the “Indemnified
Liabilities”); provided, that the Debtors shall have no obligation under this
Section 5.6 to any Indemnified Person with respect to Indemnified Liabilities to the extent
resulting from the gross negligence or willful misconduct of such Indemnified Person. The
agreements in this Section 5.6 shall survive payment of all other Indebtedness.

ARTICLE 6

Default

     Section 6.1 Rights and Remedies. If an Event of Default shall have occurred and be continuing,
the Agent shall have the following rights and remedies subject to the direction and/or consent of
the Banks as required under the Credit Agreement:

	 	(a)	 	The Agent may exercise any of the rights and remedies set forth in this
Agreement (including, without limitation, Article 5 hereof), in the Credit
Agreement, or in any other Loan Document, or by applicable law.

25

 

	 	(b)	 	In addition to all other rights and remedies granted to the Agent in this
Agreement, the Credit Agreement or by applicable law, the Agent shall have all of the
rights and remedies of a secured party under the UCC (whether or not the UCC applies to
the affected Collateral) and the Agent may also, without previous demand or notice
except as specified below or in the Credit Agreement, sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any exchange, broker’s
board or at any of the Agent’s offices or elsewhere, for cash, on credit or for future
delivery, and upon such other terms as the Agent may, in its reasonable discretion,
deem commercially reasonable or otherwise as may be permitted by law. Without limiting
the generality of the foregoing, the Agent may (i) without demand or notice to the
Debtors (except as required under the Credit Agreement or applicable law), collect,
receive or take possession of the Collateral or any part thereof, and for that purpose
the Agent (and/or its Agents, servicers or other independent contractors) may enter
upon any premises on which the Collateral is located and remove the Collateral
therefrom or render it inoperable, and/or (ii) sell, lease or otherwise dispose of the
Collateral, or any part thereof, in one or more parcels at public or private sale or
sales, at the Agent’s offices or elsewhere, for cash, on credit or for future delivery,
and upon such other terms as the Agent may, in its reasonable discretion, deem
commercially reasonable or otherwise as may be permitted by law. The Agent and,
subject to the terms of the Credit Agreement, each of the Banks shall have the right at
any public sale or sales, and, to the extent permitted by applicable law, at any
private sale or sales, to bid (which bid may be, in whole or in part, in the form of
cancellation of indebtedness) and become a purchaser of the Collateral or any part
thereof free of any right of redemption on the part of the Debtors, which right of
redemption is hereby expressly waived and released by the Debtors to the extent
permitted by applicable law. The Agent may require the Debtors to assemble the
Collateral and make it available to the Agent at any place designated by the Agent to
allow the Agent to take possession or dispose of such Collateral. The Debtors agree
that the Agent shall not be obligated to give more than five (5) days prior written
notice of the time and place of any public sale or of the time after which any private
sale may take place and that such notice shall constitute reasonable notice of such
matters. The foregoing shall not require notice if none is required by applicable law.
The Agent shall not be obligated to make any sale of Collateral if, in the exercise of
its reasonable discretion, it shall determine not to do so, regardless of the fact that
notice of sale of Collateral may have been given. The Agent may, without notice or
publication (except as required by applicable law), adjourn any public or private sale
or cause the same to be adjourned from time to time by announcement at the time and
place fixed for sale, and such sale may, without further notice, be made at the time
and place to which the same was so adjourned. The Debtors shall be liable for all
reasonable expenses of retaking, holding, preparing for sale or the like, and all
reasonable attorneys’ fees, legal expenses and other costs and expenses incurred by the
Agent in connection with the collection of the Indebtedness and the enforcement of the
Agent’s rights under this Agreement and the Credit Agreement. The Debtors shall, to
the extent permitted by applicable law, remain liable for any deficiency if the
proceeds of

26

 

	 	 	 	any such sale or other disposition of the Collateral (conducted in conformity with
this clause (ii) and applicable law) applied to the Indebtedness are insufficient to
pay the Indebtedness in full. The Agent shall apply the proceeds from the sale of
the Collateral hereunder against the Indebtedness in such order and manner as
provided in the Credit Agreement.

	 	(c)	 	The Agent may cause any or all of the Collateral held by it to be transferred
into the name of the Agent or the name or names of the Agent’s nominee or nominees.
	 
	 	(d)	 	The Agent may exercise any and all rights and remedies of the Debtors under or
in respect of the Collateral, including, without limitation, any and all rights of the
Debtors to demand or otherwise require payment of any amount under, or performance of
any provision of any of the Collateral and any and all voting rights and corporate
powers in respect of the Collateral.
	 
	 	(e)	 	On any sale of the Collateral, the Agent is hereby authorized to comply with
any limitation or restriction with which compliance is necessary (based on a reasoned
opinion of the Agent’s counsel) in order to avoid any violation of applicable law or in
order to obtain any required approval of the purchaser or purchasers by any applicable
Governmental Authority.
	 
	 	(f)	 	The Agent may direct account debtors and any other parties liable for any
payment under any of the Collateral to make payment of any and all monies due and to
become due thereunder directly to the Agent or as the Agent shall direct.
	 
	 	(g)	 	In the event of any sale, assignment or other disposition of the Intellectual
Property Collateral, the goodwill of the business connected with and symbolized by any
Collateral subject to such disposition shall be included, and the Debtors shall supply
to the Agent or its designee the Debtors’ know-how and expertise related to the
Intellectual Property Collateral subject to such disposition, and the Debtors’
notebooks, studies, reports, records, documents and things embodying the same or
relating to the inventions, processes or ideas covered by and to the manufacture of any
products under or in connection with the Intellectual Property Collateral subject to
such disposition.
	 
	 	(h)	 	For purposes of enabling the Agent to exercise its rights and remedies under
this Section 6.1 and enabling the Agent and its successors and assigns to enjoy
the full benefits of the Collateral, the Debtors hereby grant to the Agent an
irrevocable, nonexclusive license (exercisable without payment of royalty or other
compensation to the Debtors) to use, assign, license or sublicense any of the
Intellectual Property Collateral, Computer Records or Software (including in such
license reasonable access to all media in which any of the licensed items may be
recorded or stored and all computer programs used for the completion or printout
thereof), exercisable upon the occurrence and during the continuance of a Default or an
Event of Default (and thereafter if Agent succeeds to any of the Collateral pursuant to
an enforcement proceeding or voluntary arrangement with Debtor), except as may be
prohibited by any licensing agreement relating to such

27

 

	 	 	 	Computer Records or Software. This license shall also inure to the benefit of all
successors, assigns, transferees of and purchasers from the Agent.

     Section 6.2 Private Sales.

	 	(a)	 	In view of the fact that applicable securities laws may impose certain
restrictions on the method by which a sale of the Pledged Shares may be effected after
an Event of Default, Debtors agree that upon the occurrence and during the continuance
of an Event of Default, the Agent may from time to time attempt to sell all or any part
of the Pledged Shares by a private sale in the nature of a private placement,
restricting the bidders and prospective purchasers to those who will represent and
agree that they are “accredited investors” within the meaning of Regulation D
promulgated pursuant to the Securities Act of 1933, as amended (the “Securities
Act”), and are purchasing for investment only and not for distribution. In so
doing, the Agent may solicit offers for the Pledged Shares, or any part thereof, from a
limited number of investors who might be interested in purchasing the Pledged Shares.
Without limiting the methods or manner of disposition which could be determined to be
commercially reasonable, if the Agent hires a firm of regional or national reputation
that is engaged in the business of rendering investment banking and brokerage services
to solicit such offers and facilitate the sale of the Pledged Shares, then the Agent’s
acceptance of the highest offer (including its own offer, or the offer of any of the
Banks at any such sale) obtained through such efforts of such firm shall be deemed to
be a commercially reasonable method of disposition of such Pledged Shares. The Agent
shall not be under any obligation to delay a sale of any of the Pledged Shares for the
period of time necessary to permit the issuer of such securities to register such
securities under the laws of any jurisdiction outside the United States, under the
Securities Act or under any applicable state securities laws, even if such issuer would
agree to do so.
	 
	 	(b)	 	The Debtors further agree to do or cause to be done, to the extent that the
Debtors may do so under applicable law, all such other reasonable acts and things as
may be necessary to make such sales or resales of any portion or all of the Collateral
valid and binding and in compliance with any and all applicable laws, regulations,
orders, writs, injunctions, decrees or awards of any and all courts, arbitrators or
governmental instrumentalities, domestic or foreign, having jurisdiction over any such
sale or sales, all at the Debtors’ expense.

     Section 6.3 Establishment of Cash Collateral Account; and Lock Box.

	 	(a)	 	Immediately upon the occurrence and during the continuance of an Event of
Default (without the necessity of any notice hereunder), there may be established upon
the request of the Agent by each Debtor with the Agent, for the benefit of the Banks in
the name of the Agent, a segregated non-interest bearing cash collateral account (the
“Cash Collateral Account”) bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Agent and the Banks; provided,
however, that the Cash Collateral Account may be an

28

 

	 	 	 	interest-bearing account with a commercial bank (including Comerica or any other
Bank which is a commercial bank) if determined by the Agent, in its reasonable
discretion, to be practicable, invested by the Agent in its sole discretion, but
without any liability for losses or the failure to achieve any particular rate of
return. Furthermore, in connection with the establishment of a Cash Collateral
Account under the first sentence of this Section 6.3 (and on the terms and
within the time periods provided thereunder), (i) each Debtor agrees to establish
and maintain (and the Agent, acting at the request of the Banks, may establish and
maintain) at Debtor’s sole expense a United States Post Office lock box (the
“Lock Box”), to which the Agent shall have exclusive access and control.
Each Debtor expressly authorizes the Agent, from time to time, to remove the
contents from the Lock Box for disposition in accordance with this Agreement; and
(ii) each Debtor shall notify all account debtors that all payments made to Debtor
(a) other than by electronic funds transfer, shall be remitted, for the credit of
Debtor, to the Lock Box, and Debtor shall include a like statement on all invoices,
and (b) by electronic funds transfer, shall be remitted to the Cash Collateral
Account, and Debtor shall include a like statement on all invoices. Each Debtor
agrees to execute all documents and authorizations as reasonably required by the
Agent to establish and maintain the Lock Box and the Cash Collateral Account. It is
acknowledged by the parties hereto that any lockbox presently maintained or
subsequently established by a Debtor with the Agent may be used, subject to the
terms hereof, to satisfy the requirements set forth in the first sentence of this
Section 6.3.
	 
	 	(b)	 	Immediately upon the occurrence and during the continuance of an Event of
Default, any and all cash (including amounts received by electronic funds transfer),
checks, drafts and other instruments for the payment of money received by each Debtor
at any time, in full or partial payment of any of the Collateral consisting of Accounts
or Inventory, shall forthwith upon receipt be transmitted and delivered to the Agent,
properly endorsed, where required, so that such items may be collected by the Agent.
Any such amounts and other items received by a Debtor shall not be commingled with any
other of such Debtor’s funds or property, but will be held separate and apart from such
Debtor’s own funds or property, and upon express trust for the benefit of the Agent
until delivery is made to the Agent. All items or amounts which are remitted to a Lock
Box or otherwise delivered by or for the benefit of a Debtor to the Agent on account of
partial or full payment of, or any other amount payable with respect to, any of the
Collateral shall, at the Agent’s option, be applied to any of the Indebtedness, whether
then due or not, in the order and manner set forth in the Credit Agreement. No Debtor
shall have any right whatsoever to withdraw any funds so deposited. Each Debtor further
grants to the Agent a first security interest in and Lien on all funds on deposit in
such account. Each Debtor hereby irrevocably authorizes and directs the Agent to
endorse all items received for deposit to the Cash Collateral Account, notwithstanding
the inclusion on any such item of a restrictive notation, e.g., “paid in full”,
“balance of account”, or other restriction.

29

 

     Section 6.4 Default Under Credit Agreement. Subject to any applicable notice and cure provisions
contained in the Credit Agreement, the occurrence of any Event of Default (as defined in the Credit
Agreement), including without limit a breach of any of the provisions of this Agreement, shall be
deemed to be an Event of Default under this Agreement. This Section 6.4 shall not limit
the Events of Default set forth in the Credit Agreement.

ARTICLE 7

Miscellaneous

     Section 7.1  No Waiver; Cumulative Remedies. No failure on the part of the Agent to exercise and
no delay in exercising, and no course of dealing with respect to, any right, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, power or privilege under this Agreement preclude any other or further exercise thereof
or the exercise of any other right, power, or privilege. The rights and remedies provided for in
this Agreement are cumulative and not exclusive of any rights and remedies provided by law.

     Section 7.2 Successors and Assigns. Subject to the terms and conditions of the Credit Agreement,
this Agreement shall be binding upon and inure to the benefit of the Debtors and the Agent and
their respective heirs, successors and assigns, except that the Debtors may not assign any of their
rights or obligations under this Agreement without the prior written consent of the Agent.

     Section 7.3 AMENDMENT; ENTIRE AGREEMENT. THIS AGREEMENT, THE CREDIT AGREEMENT REFERRED TO HEREIN
AND THE OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND
SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES
HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO. The provisions of this
Agreement may be amended or waived only by an instrument in writing signed by the parties hereto.

     Section 7.4 Notices. All notices, requests, consents, approvals, waivers and other communications
hereunder shall be in writing (including, by facsimile transmission) and mailed, faxed or delivered
to the address or facsimile number specified for notices on signature pages hereto; or, as directed
to the Debtors or the Agent, to such other address or number as shall be designated by such party
in a written notice to the other. All such notices, requests and communications shall, when sent by
overnight delivery, or faxed, be effective when delivered for overnight (next business day)
delivery, or transmitted in legible form by facsimile machine (with electronic confirmation of
receipt), respectively, or if mailed, upon the third Business Day after the date deposited into the
U.S. mail, or if otherwise delivered, upon delivery; except that notices to the Agent shall not be
effective until actually received by the Agent.

30

 

     Section 7.5 GOVERNING LAW; SUBMISSION TO JURISDICTION; SERVICE OF PROCESS.

	 	(a)	 	THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF CALIFORNIA.
	 
	 	(b)	 	ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA SITTING IN THE COUNTY
OF SANTA CLARA OR OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF CALIFORNIA, AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE DEBTOR AND THE AGENT CONSENTS,
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE
COURTS. EACH OF THE DEBTOR AND THE AGENT IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING
ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY LOAN DOCUMENT.

     Section 7.6 Headings. The headings, captions, and arrangements used in this Agreement are for
convenience only and shall not affect the interpretation of this Agreement.

     Section 7.7 Survival of Representations and Warranties. All representations and warranties made
in this Agreement or in any certificate delivered pursuant hereto shall survive the execution and
delivery of this Agreement, and no investigation by the Agent shall affect the representations and
warranties or the right of the Agent or the Banks to rely upon them.

     Section 7.8 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     Section 7.9 Waiver of Bond. In the event the Agent seeks to take possession of any or all of the
Collateral by judicial process, the Debtors hereby irrevocably waive any bonds and any surety or
security relating thereto that may be required by applicable law as an incident to such possession,
and waives any demand for possession prior to the commencement of any such suit or action.

     Section 7.10 Severability. Any provision of this Agreement which is determined by a court of
competent jurisdiction to be prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Agreement, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

31

 

     Section 7.11 Construction. Each Debtor and the Agent acknowledge that each of them has had the
benefit of legal counsel of its own choice and has been afforded an opportunity to review this
Agreement with its legal counsel and that this Agreement shall be construed as if jointly drafted
by the Debtors and the Agent.

     Section 7.12 Termination. If all of the Indebtedness (other than contingent liabilities pursuant
to any indemnity, including without limitation Section 5.5 and Section 5.6 hereof,
for claims which have not been asserted, or which have not yet accrued) shall have been
indefeasibly paid and performed in full (in cash) and all commitments to extend credit or other
credit accommodations under the Credit Agreement have been terminated, the Agent shall, upon the
written request of the Debtors, execute and deliver to the Debtors a proper instrument or
instruments acknowledging the release and termination of the security interests created by this
Agreement, and shall duly assign and deliver to the Debtors (without recourse and without any
representation or warranty) such of the Collateral as may be in the possession of the Agent and has
not previously been sold or otherwise applied pursuant to this Agreement.

     Section 7.13 Release of Collateral. The Agent shall, upon the written request of the Debtors,
execute and deliver to the Debtors a proper instrument or instruments acknowledging the release of
the security interest and Liens established hereby on any Collateral (other than the Pledged
Shares): (a) if the sale or other disposition of such Collateral is permitted under the terms of
the Credit Agreement and, at the time of such proposed release, both before and after giving effect
thereto, no Default or Event of Default has occurred and is continuing, (b) if the sale or other
disposition of such Collateral is not permitted under the terms of the Credit Agreement, provided
that the requisite Banks under such Credit Agreement shall have consented to such sale or
disposition in accordance with the terms thereof, or (c) if such release has been approved by the
requisite Banks in accordance with Section 12.11 of the Credit Agreement.

     Section 7.14 WAIVER OF JURY TRIAL. EACH DEBTOR AND THE AGENT WAIVES ITS RIGHTS TO A TRIAL BY JURY
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE
OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING
OR OTHER LITIGATION OF ANY TYPE BROUGHT BY EITHER SUCH PARTY AGAINST THE OTHER, WHETHER WITH
RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. EACH DEBTOR AND THE AGENT AGREE THAT ANY
SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE
FOREGOING, EACH SUCH PARTY FURTHER AGREES THAT ITS RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION
OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN
PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR
ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

     Section 7.15 Consistent Application. The rights and duties created by this Agreement shall, in all
cases, be interpreted consistently with, and shall be in addition to (and

32

 

not in lieu of), the rights and duties created by the Credit Agreement or the other Loan
Documents. In the event that any provision of this Agreement shall be inconsistent with any
provision of the Credit Agreement, such provision of the Credit Agreement shall govern.

     Section 7.16 Continuing Lien. The security interest granted under this Security Agreement shall be
a continuing security interest in every respect (whether or not the outstanding balance of the
Indebtedness is from time to time temporarily reduced to zero) and the Agent’s security interest in
the Collateral as granted herein shall continue in full force and effect for the entire duration
that the Credit Agreement remains in effect and until all of the Indebtedness are repaid and
discharged in full, and no commitment (whether optional or obligatory) to extend any credit under
the Credit Agreement remain outstanding.

33

 

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

	 	 	 	 	 	 	 
	 	 	DEBTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	QUINSTREET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas J. Valenti
 

Douglas J. Valenti
	 	 
	 

	 	Title
	 	Chief Executive Officer	 	 
	 	 	Address for Notices:	 	 
	 	 	1051 East Hillsdale Blvd.	 	 
	 	 	Foster City, California 94404	 	 
	 	 	Fax No.: (650) 578-7604	 	 
	 	 	Telephone No.:	 	 
	 	 	Attention: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	QUINSTREET PROPERTIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas J. Valenti
 

Douglas J. Valenti
	 	 
	 

	 	Title
	 	President	 	 
	 	 	Address for Notices:	 	 
	 	 	1051 East Hillsdale Blvd.	 	 
	 	 	Foster City, California 94404	 	 
	 	 	Fax No.: (650) 578-7604	 	 
	 	 	Telephone No.:	 	 
	 	 	Attention: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	QUINSTREET LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas J. Valenti
 

Douglas J. Valenti
	 	 
	 

	 	Title
	 	Manager	 	 
	 	 	Address for Notices:	 	 
	 	 	1051 East Hillsdale Blvd.	 	 
	 	 	Foster City, California 94404	 	 
	 	 	Fax No.: (650) 578-7604	 	 
	 	 	Telephone No.:	 	 
	 	 	Attention: Chief Financial Officer	 	 

34

 

	 	 	 	 	 	 	 
	 	 	QUINSTREET MEDIA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas J. Valenti
 

Douglas J. Valenti
	 	 
	 

	 	Title
	 	President	 	 
	 	 	Address for Notices:	 	 
	 	 	1051 East Hillsdale Blvd.	 	 
	 	 	Foster City, California 94404	 	 
	 	 	Fax No.: (650) 578-7604	 	 
	 	 	Telephone No.:	 	 
	 	 	Attention: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CYBERSPACE COMMUNICATIONS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas J. Valenti
 

Douglas J. Valenti
	 	 
	 

	 	Title
	 	President	 	 
	 	 	Address for Notices:	 	 
	 	 	1051 East Hillsdale Blvd.	 	 
	 	 	Foster City, California 94404	 	 
	 	 	Fax No.: (650) 578-7604	 	 
	 	 	Telephone No.:	 	 
	 	 	Attention: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	RELIABLEREMODELER.COM, INC.	 	 
	 
	 

	 	By:

Name:
	 	/s/ Douglas J. Valenti
 

Douglas J. Valenti
	 	 
	 

	 	Title
	 	President	 	 
	 	 	Address for Notices:	 	 
	 	 	1051 East Hillsdale Blvd.	 	 
	 	 	Foster City, California 94404	 	 
	 	 	Fax No.: (650) 578-7604	 	 
	 	 	Telephone No.:	 	 
	 	 	Attention: Chief Financial Officer	 	 

35

 

	 	 	 	 	 	 	 
	 	 	HQ PUBLICATIONS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas J. Valenti
 

Douglas J. Valenti
	 	 
	 

	 	Title
	 	Manager	 	 
	 	 	Address for Notices:	 	 
	 	 	1051 East Hillsdale Blvd.	 	 
	 	 	Foster City, California 94404	 	 
	 	 	Fax No.: (650) 578-7604	 	 
	 	 	Telephone No.:	 	 
	 	 	Attention: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	AGENT: 	 	 
	 
	 	 	 	 	 	 
	 	 	COMERICA BANK, as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Philip Koblis
 

Philip Koblis
	 	 
	 

	 	Title
	 	Senior Vice President	 	 
	 	 	Address for Notices:	 	 
	 	 	75 East Trimble Road, M/C 4770	 	 
	 	 	San Jose, California 95131	 	 
	 	 	Attention: Manager	 	 
	 	 	Fax No.: (408) 556-5091	 	 
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	Comerica Bank	 	 
	 	 	2 Embarcadero Center, Suite 300	 	 
	 	 	San Francisco, CA 94111	 	 
	 	 	Attn: Phil Koblis — Vice President	 	 
	 	 	Fax No.: (415) 477-3260	 	 

36

 

EXHIBIT A

TO

SECURITY AGREEMENT

FORM OF AMENDMENT

     This Amendment, dated                                        , 20___, is delivered pursuant to Section 4.8[(b)/(c)]
of the Security Agreement referred to below. The undersigned hereby agrees that this Amendment
may be attached to the Security Agreement dated as of September 29, 2008, between the undersigned
and Comerica Bank, as the Agent for the benefit of the Banks referred to therein (the “Security
Agreement”), and (a) [that the intellectual property listed on Schedule A]/[that the shares of
stock, membership interests, partnership units, notes or other instruments listed on Schedule A]
annexed hereto shall be and become part of the Collateral referred to in the Security Agreement and
shall secure payment and performance of all Indebtedness as provided in the Security Agreement and
(b) that Schedule A shall be deemed to amend [Schedule 1.2/Schedule 1.1] by supplementing the
information provided on such Schedule with the information set forth on Schedule A.

     Capitalized terms used herein but not defined herein shall have the meanings therefor provided
in the Security Agreement.

	 	 	 	 	 	 	 
	 	 	QUINSTREET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title	 	 
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	COMERICA BANK, as Agent
	 	 
	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title
	 	 
	 	 
	 

	 	 	 	 
	 	 

37

 

EXHIBIT B

JOINDER AGREEMENT

(Security Agreement)

     THIS JOINDER AGREEMENT (the “Joinder Agreement”) is dated as of                                         ,                     
by                             , a                                       
   (“New Debtor”).

     WHEREAS, pursuant to Section ___ of that certain Revolving Credit and Term Loan
Agreement dated as of September 29, 2008 (as amended or otherwise modified from time to time, the
“Credit Agreement”) by and among QuinStreet, Inc. (the “Borrower”), the financial
institutions signatory thereto from time to time (the “Banks”) and Comerica Bank, as Agent
for the Banks (in such capacity, “Agent”), the New Debtor is required to execute and
deliver a joinder agreement to the Security Agreement.

     WHEREAS, in order to comply with the Credit Agreement, New Debtor executes and delivers this
Joinder Agreement in accordance therewith.

     NOW THEREFORE, as a further inducement to Banks to continue to provide credit accommodations
to the Borrower, New Debtor hereby covenants and agrees as follows:

     A. All capitalized terms used herein shall have the meanings assigned to them in the Credit
Agreement unless expressly defined to the contrary.

     B. New Debtor hereby enters into this Joinder Agreement in order to comply with Section
7.13 of the Credit Agreement and does so in consideration of the Advances made or to be made
from time to time under the Credit Agreement and the other Loan Documents.

     C. Schedule [insert appropriate Schedule] attached to this Joinder Agreement is intended to
supplement Schedule [insert appropriate Schedule] of the Security Agreement with the respective
information applicable to New Debtor.

     D. New Debtor shall be considered, and deemed to be, for all purposes of the Credit Agreement,
the Security Agreement and the other Loan Documents, a Debtor under the Security Agreement as fully
as though New Debtor had executed and delivered the Security Agreement at the time originally
executed and delivered under the Credit Agreement and hereby ratifies and confirms its obligations
under the Security Agreement, all in accordance with the terms thereof and shall be deemed to have
made each representation and warranty set forth in the Security Agreement.

     E. No Default or Event of Default (each such term being defined in the Credit Agreement) has
occurred and is continuing under the Credit Agreement.

     F. This Joinder Agreement shall be governed by the laws of the State of Michigan and shall be
binding upon New Debtor and its successors and assigns.

38

 

     IN WITNESS WHEREOF, the undersigned New Debtor has executed and delivered this Joinder
Agreement as of                                         ,                     .

	 	 	 	 	 	 	 
	 	 	[NEW DEBTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 
	Accepted:	 	 
	 
	 	 	 	 
	COMERICA BANK, as Agent	 	 
	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Its:
	 	 	 	 
	 

	 	 

	 	 

39

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