Document:

EX-10.1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

          This Employment Agreement (this “Agreement”) is effective as of September 1 2007 (the
“Effective Date”), and is made by and between PREMIER EXHIBITIONS, INC., a Florida corporation (the
“Company”), and BRUCE ESKOWITZ, an individual residing at ___(the “Executive’’).

WITNESSETH:

          WHEREAS, the Company desires to employ Executive in accordance with the terms and conditions
contained in this Agreement and wishes to ensure the availability of the Executive’s services to
the Company;

          WHEREAS, the Executive desires to accept such employment and render his services in accordance
with the terms and conditions contained in this Agreement;

          WHEREAS, the Executive and the Company desire to enter into this Agreement, which will fully
recognize the contributions of the Executive and assure harmonious management of the Company’s
affairs.

          NOW, THEREFORE, in consideration of the promises and the mutual covenants set forth in this
Agreement, and intending to be legally bound, the Company and the Executive agree as follows:

          1. Term of Employment

                (a) Offer/Acceptance. The Company hereby offers employment to the Executive, and the
Executive hereby accepts employment subject to the terms and conditions set forth in this
Agreement. The Company represents and warrants to Executive that this Agreement and all
transactions contemplated herein has been duly approved by the Company’s Board of Directors.

                (b) Term. The term of this Agreement shall commence the Effective Date and shall
remain in effect for a period of five (5) years thereafter (the “Term”).

          2. Duties.

                (a) General Duties. Commencing on the Effective Date, the Executive shall serve as
President and Chief Executive Officer with duties and responsibilities that are customary for such
executives and any other duties and responsibilities specifically assigned to him by the Chairman..
Subject to applicable law and shareholder approval, during the Term, Executive shall be entitled
to a seat on the Company’s Board of Directors. The Company and the Executive shall enter into an
indemnification Agreement with respect to the Executive’s services as an officer and board member.

                (b) Best Efforts. The Executive covenants to use his best efforts to perform his
duties and discharge his responsibilities pursuant to this Agreement in a competent, diligent, and
faithful manner. The Executive shall devote substantially all of his business time, energy and
experience to the performance of his duties hereunder, and shall not engage in any other business
activities, as an employee, director, consultant or in any other capacity, whether or not he
receives compensation therefor, without the prior written consent of the Company’s Board of
Directors; provided, however, that the Executive may (i) manage his own passive investments (with
appropriate disclosure to the Board) and (ii) serve on civic, charitable or non-profit boards or
committees, so long as any of such activities do not interfere with the performance of the
Executive’s responsibilities to the Company under this Agreement.

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                (c) Location of Employment. The Executive shall work at the Company’s headquarters,
which is currently located at 3340 Peachtree Road, NE, Suite 2250, Atlanta, GA 30326. In the event
that the Company moves its headquarters to a metropolitan area without a major international
metropolitan airport, such relocation without the Executive’s consent may be deemed termination
without Cause in the Executive’s sole and unfettered discretion.

          3. Compensation and Expenses.

                (a) Initial Bonuses. The Company will pay the Executive an initial bonus of nine
hundred fifty-one thousand nine hundred twenty three dollars ($951,923.00), to be earned and paid
on October 15, 2007, provided the Executive is still employed with the Company on that date. The
Company will pay the Executive an additional bonus of one million dollars ($1,000,000.00), to be
earned and paid on June 1, 2008, provided the Executive is still employed with the Company on that
date.

                (b) Base Salary. For the services of the Executive to be rendered by him under this
Agreement, the Company will pay the Executive an annual base salary of six hundred twenty-five
thousand dollars ($625,000.00)(the “Base Salary”), which shall be subject to increase as set forth
in subsection (c) below. The Base Salary shall be prorated over the time that the Executive
performs services under this Agreement in any calendar year during which this Agreement shall
become effective after January 1st thereof or shall terminate before December 31st thereof. The
Company shall pay the Executive the Base Salary in twenty-six (26) equal installments payable every
two weeks, in accordance with the Company’s standard payroll practices, and subject to applicable
deductions and withholdings.

                (c) Base Salary Adjustment. The Base Salary shall be subject to a minimum cumulative
salary increase of five percent (5%) effective on each Anniversary Date.

                (d) Performance Bonus. The Compensation Committee of the Company’s Board of Directors
(the “Compensation Committee”) will approve and notify the Executive of an incentive bonus program
on a going forward basis which takes into account the Executive’s performance and which will be
based upon reasonable and pre-determined criteria and benchmarks. In the event that the Company
and/or the Executive meet(s) these pre-determined objectives and criteria, the Executive shall be
entitled to receive an annual bonus of not less than three hundred fifty thousand dollars
($350,000.00).

                (e) Expenses. In addition to any compensation received pursuant to this Section 3,
the Company shall reimburse the Executive for all reasonable, ordinary and necessary travel,
entertainment and other expenses incurred in connection with the performance of his duties under
this Agreement, provided that the Executive properly accounts for such expenses to the Company in
accordance with the Company’s policies and practices.

                                (i) The Company agrees to pay all of the Executive’s reasonable moving expenses (including,
without limitation, any and all extraordinary costs associated with the moving of the Executive’s
artwork) associated with his relocation to Atlanta, Georgia.

                                (ii) The Company agrees to pay the reasonable costs of commensurate temporary housing for the
Executive and the Executive’s spouse, upon their relocation to Atlanta, the duration of such
payments not to exceed six months.

                (f) Stock Options. Subject to the approval of the Compensation Committee, on the
Effective Date or as soon as administratively practicable thereafter, the Company shall grant the
Executive a stock option to purchase 625,000 shares of the common stock of the Company (the

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“Option”). The Option shall vest, subject to the Executive’s continued employment with the Company
through the applicable vesting date, as follows: 100,000 shares on the first anniversary of the
date of grant (each annual anniversary of a date of grant, an “Anniversary Date”); 125,000 shares
shall vest pro rata on a monthly basis until the second Anniversary Date; 130,000 shares shall
vest pro rata on a monthly basis until the third Anniversary Date; 135,000 shares shall vest pro
rata on a monthly basis until the fourth Anniversary Date; and the remaining 135,000 shares shall
vest pro rata on a monthly basis until the fifth Anniversary Date. The per-share exercise price
for the Option shall be equal to the closing bid price of such shares on the date of grant. The
Option shall have a term of ten (10) years from the date of grant. The Option shall re represented
by a stock option agreement, the terms of which shall be consistent with this subsection, and shall
contain such other terms as are consistent with the Company’s award of stock options.

                (g) Restricted Stock. Subject to the approval of the Compensation Committee, on the
Effective Date or as soon as administratively practicable thereafter, the Company shall grant the
Executive 625,000 shares of the common stock of the Company, which shares shall be restricted and
subject to forfeiture (the “Restricted Stock”). The Restricted Stock shall vest, subject to the
Executive’s continued employment with the Company through the applicable vesting date, as follows:
100,000 shares on the first Anniversary Date; 125,000 shares shall vest pro rata on a monthly basis
until the second Anniversary Date; 130,000 shares shall vest pro rata on a monthly basis until the
third Anniversary Date; 135,000 shares shall vest pro rata on a monthly basis until the fourth
Anniversary Date; and the remaining 135,000 shares shall vest pro rata on a monthly basis until the
fifth Anniversary Date. The Restricted Stock shall re represented by a restricted stock agreement,
the terms of which shall be consistent with this subsection, and shall contain such other terms as
are consistent with the Company’s award of restricted stock.

                (h) Registration Rights. Company and Executive shall promptly negotiate in good faith
the terms and conditions of a mutually acceptable registration rights agreement, pursuant to which
and company stock or options to purchase Company stock shall be registered for resale consistent
with the purposes and intentions of this Agreement.

          4. Benefits.

                (a) Personal Days. For each calendar year during the Term, the Executive shall be
entitled to six (6) paid personal days.

                (b) Vacation. For each calendar year during the Term, the Executive shall be entitled
to five (5) weeks of vacation (which shall accrue and vest, except as may be hereinafter provided
to the contrary, on each January lst thereof) without loss of compensation or other benefits to
which he is entitled under this Agreement. Notwithstanding the foregoing, the Executive
acknowledges and agrees that he will be responsible for ensuring that his duties and
responsibilities as President and Chief Executive Officer during any such vacation are not
neglected. The Executive shall take his vacation at such times as the Executive may select and the
affairs of the Company or any of its subsidiaries or affiliates may permit.

                (c) Employer Benefit Programs. In addition to the compensation to which the Executive
is entitled pursuant to the provisions of Section 3 above, during the Term the Executive will be
entitled to participate in any stock option plan, stock purchase plan, pension or retirement plan,
and insurance or other employee benefit plan that is maintained at that time by the Company for its
employees, including programs of life, disability, basic medical and dental, and supplemental
medical and dental insurance.

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          5. Termination.

                (a) Termination for Cause. The Company may terminate the Executive’s employment
pursuant to this Agreement for “Cause” upon the occurrence of any of the following events:

                                (i) the Executive is convicted of a crime involving moral turpitude, dishonesty, fraud, or is
found guilty or liable for any other securities related offense; or

                                (ii) the Executive engages in conduct that constitutes willful gross neglect or willful gross
misconduct in carrying out his duties under this Agreement resulting, in either case, in material
economic harm to the Company (which such conduct must be proven by the Company based on
substantial, verifiable, evidence or admitted in writing by the Executive); or

                                (iii) the Executive fails to perform any material obligation set forth in this Agreement and
such failure is not cured by the Executive within such reasonable time as may be necessary (not
less than 30 days) after written notice to the Executive by the Company.

                Upon any termination for Cause, and subject to the provisions of Section 3(a) above, the
Executive shall have no right to compensation, bonus, severance, or other reimbursement pursuant to
this Agreement or otherwise, except that the Executive shall be entitled to all guaranteed
compensation, and all stock options, restricted stock and other securities instruments and benefits
that have accrued and/or vested as of the date of termination.

                (b) Death or Disability. This Agreement and the Company’s obligations
hereunder will terminate upon the death or disability of the Executive. For purposes of this
Section 5(b), “disability” shall mean that for a period of six (6) months in any twelve-month
period, the Executive is incapable of substantially fulfilling the duties set forth in this
Agreement because of physical, mental or emotional incapacity resulting from injury, sickness or
disease as determined by an independent physician mutually acceptable to the Company and the
Executive. Upon any termination of this Agreement due to death or disability, the Company will pay
the Executive or his legal representative, as the case may be, his Base Salary (which may include
any accrued but unused vacation time) at such time pursuant to Section 3(a) through the date of
such termination of employment (or, if terminated as a result of a disability, until the date upon
which the disability policy maintained pursuant to Section 4(b)(ii) begins payment of benefits),
plus any other compensation that may be due and unpaid.

                (c) Voluntary Termination. Prior to any other termination of this Agreement, the
Executive may, on thirty (30) day’s prior written notice to the Company given at any time,
terminate his employment with the Company. Upon any such termination, the Company shall pay the
Executive his Base Salary at such time pursuant to Section 3(a) through the date of such
termination of employment (which shall include any vested and accrued but unused vacation time).

                (d) Termination without Cause. If the Company terminates the Executive’s employment
for any reason other than “Cause” as defined in Section 5(a) above, and if Executive signs a
release of claims in a form and manner satisfactory to the Company, Executive shall be entitled to
all of the consideration listed below in this paragraph. Executive shall be entitled to a lump-sum
payment equal to one year of the Executive’s Base Salary. Such payment shall be made on the date
that is six months following the date of the termination or as soon as administratively practicable
thereafter. In addition, the Option and the Restricted Stock detailed in Sections 3(f) and 3(g)
above shall continue to vest and accrue in accordance with the schedules provided for in Sections
3(f) and 3(g) above, respectively, and the requirements thereunder of continued employment through
the dates of vesting shall be waived. For the sake of clarity, it is expressly acknowledged and
agreed that Executive shall have no duty to mitigate

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damages with respect to any termination without Cause, and that Company shall not be entitled to
offset or credit any earnings (through cash or equity compensation) of Executive against the value
of the Options and Restricted Stock that will continue to vest following a termination without
Cause, nor shall Company be entitled to cease or terminate the vesting of such Options or
Restricted Stock in the event that Executive earns any compensation after a termination without
Cause during the aforementioned vesting schedule.

          6. Restrictive Covenants.

                (a) Competition with the Company. The Executive covenants and agrees that, during the
Term of this Agreement, the Executive will not, without the prior written consent of the Company,
directly or indirectly (whether as a sole proprietor, partner, stockholder, director, officer,
employee or in any other capacity as principal or agent), compete with the Company.
Notwithstanding this restriction, the Executive shall be entitled to invest in stock of other
competing public companies so long as his ownership is less than five percent (5%) of such
company’s outstanding shares.

                (b) Disclosure of Confidential Information. The Executive acknowledges that during
his employment he will gain and have access to confidential information regarding the Company and
its subsidiaries and affiliates. The Executive acknowledges that such confidential information as
acquired and used by the Company or any of its subsidiaries or affiliates constitutes a special,
valuable and unique asset in which the Company or any of its subsidiaries or affiliates, as the
case may be, holds a legitimate business interest. All records, files, materials and confidential
information (the “Confidential Information”) obtained by the Executive in the course of his
employment with the Company shall be deemed confidential and proprietary and shall remain the
exclusive property of the Company or any of its subsidiaries or affiliates, as the case may be.
The Executive will not, except in connection with and as required by his performance of his duties
under this Agreement, for any reason use for his own benefit or the benefit of any person or entity
with which he may be associated, disclose any Confidential Information to any person, firm,
corporation, association or other entity for any reason or purpose whatsoever without the prior
consent of the Board of Directors of the Company, unless such information previously shall have
become public knowledge through no action by or omission of the Executive. Confidential
Information shall exclude Executive’s knowledge, expertise, know-how or business acumen, as well as
his personal files whether developed or acquired prior to or during the Term.

                (c) Subversion, Disruption or Interference. At no time during the term of this
Agreement shall the Executive, directly or indirectly, interfere, induce, influence, combine or
conspire with, or attempt to induce, influence, combine or conspire with, any of the employees of,
or consultants to, the Company to terminate their relationship with or compete with or ally against
the Company or any of its subsidiaries or affiliates in the business in which the Company or any of
its subsidiaries or affiliates is then engaged in.

                (d) Enforcement of Restrictions. The parties hereby agree that any violation by the
Executive of the covenants contained in this Section 6 will likely cause irreparable damage to the
Company or its subsidiaries and affiliates and may, as a matter of course, be restrained by process
issued out of a court of competent jurisdiction, in addition to any other remedies provided by law.

          7. Change of Control.

                (a) A “ Change of Control” shall mean the occurrence of any one of the following events:

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                                (i) during the term of this Agreement, a majority of the Directors on the Board as of the
Effective Date (the “Incumbent Board”) no longer comprises a majority of the Board of Directors of
the Company; provided that any person becoming a director subsequent to the Effective Date whose
election, or nomination for election by the Company’s shareholders, was approved by a vote of at
least three-quarters (3/4) of the directors comprising the Incumbent Board (either by a specific
vote or by approval of the proxy statement of the Company in which such person is named as a
nominee for director without objection to such nomination) shall be, for purposes of this Section
7(a)(i), considered as though such person were a member of the Incumbent Board; or

                                (ii) any “person,” as such term is used in Sections 3(a)(9) and 13(d) of the Securities
Exchange Act of 1934, as amended (other than the Executive or entities controlled by the
Executive), becomes a “beneficial owner,” as such term is used in Rule 13d-3 promulgated under that
act, of twenty-five percent (25%) or more of the voting power of the Company; or

                                (iii) all or substantially all of the assets or business of the Company is disposed of
pursuant to a merger, consolidation or other transaction (unless the shareholders of the Company
immediately prior to such merger, consolidation or other transaction beneficially own, directly or
indirectly, in substantially the same proportion as they owned the voting power of the Company, all
of the voting power or other ownership interests of the entity or entities, if any, that succeed to
the business of the Company);

                (b) The Company and the Executive hereby agree that if the Executive is in the employ of the
Company on the date on which a Change of Control occurs (the “Change of Control Date”), the Company
will continue to employ the Executive and the Executive will remain in the employ of the Company
for the period commencing on the Change of Control Date and ending on the expiration of the Term,
to exercise such authority and perform such executive duties as are commensurate with the authority
being exercised and duties being performed by the Executive immediately prior to the Change of
Control Date.

                (c) During the remaining Term after the Change of Control Date, the Company will (i) continue
to honor the terms of this Agreement, including the Base Salary and other compensation set forth in
Section 3 above, (ii) continue employee benefits as set forth in Section 4 above at levels in
effect on the Change of Control Date; and (iii) immediately vest and accrue all outstanding stock
options, restricted stock and other securities instruments as detailed in Section 3 above (all
subject to such reductions as may be required to maintain such plans in compliance with applicable
federal law regulating employee benefits in the wake of a change of control).

                (d) If during the remaining Term on or after the Change of Control Date there shall have
occurred a material reduction in the Executive’s compensation or employment related benefits, a
material change in the Executive’s status, working conditions or management responsibilities, or a
material change in the business objectives or policies of the Company, and the Executive
voluntarily terminates employment within ninety (90) days of any such occurrence, or the last in a
series of occurrences, then the Executive shall be entitled to receive, subject to the provisions
of subsection (e) below, a lump-sum cash payment equal to 299% of the Executive’s Base Salary in
effect on the Change of Control Date, which payment shall be made on the date that is six months
following the date of the termination or as soon as administratively practicable thereafter.

                (e) The amounts payable to the Executive under any other compensation arrangement
maintained by the Company that became payable after payment of the lump-sum provided for in
subsection (d) above upon or as a result of the exercise by the Executive of rights which are

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contingent on the Change of Control (and would be considered a “parachute payment” under Section
280G of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations thereunder),
shall be reduced to the extent necessary so that such amounts, when added to such lump-sum and such
other amounts deemed “parachute payments” for purposes of Section 280G of the Code, do not exceed
299% of the Executive’s “average annual compensation” (within the meaning of Section 280G of the
Code) for the five-year period preceding the date of the Change of Control.

          8. Assignability. The rights and obligations of the Company under this
Agreement shall inure to the benefit of and be binding upon the successors and assigns of the
Company, provided that such successor or assign shall acquire all or substantially all of the
assets and business of the Company.

          9. Severability. If any provision of this Agreement is deemed to be invalid or
unenforceable or is prohibited by the laws of the state or jurisdiction where it is to be
performed, this Agreement shall be considered divisible as to such provision and such provision
shall be inoperative in such state or jurisdiction and shall not be part of the consideration
moving from either of the parties to the other. The remaining provisions of this Agreement shall be
valid and binding.

          10. Notice. Notices given pursuant to the provisions of this Agreement shall be sent
by certified mail, postage prepaid, or by overnight courier to the following addresses:

	 	 	 
	To the Company:

	 	3340 Peachtree Road, NE

Suite 2250

Atlanta, GA 30326

Attention: Brian Wainger, Esq.
	 
	 	 
	To the Executive:

	 	c/o Goldring Hertz and Lichtenstein, LLP

450 North Roxbury Drive

Eighth Floor

Beverly Hills, CA 90210

Attention: Kenneth B. Hertz, Esq

          Either party may, from time to time, designate any other address to which any such notice to
it or him shall be sent. Any such notice shall be deemed to have been delivered upon the earlier
of actual receipt or four days after deposit in the mail, if by certified mail.

          11. Indemnification. The Company and the Executive acknowledge that the
Executive’s services as an officer of the Company exposes the Executive to risks of personal
liability arising from, and pertaining to, the Executive’s participation in the management of the
Company. The Company shall defend, indemnify and hold harmless the Executive from any actual cost,
loss, damages, attorneys’ fees, or liability suffered or incurred by the Executive arising out of,
or connected to, the Executive’s services as an officer of the Company or any of its current,
former, or future subsidiaries to the fullest extent allowed by law. The Company will not have any
obligation to the Executive under this Section for any loss suffered if the Executive voluntarily
pays, settles, compromises, confesses judgment for, or admits liability with respect to without the
approval of the Company. Within thirty (30) days after the Executive receives notice of any claim
or action which may give rise to the application of this section, the Executive shall notify the
Company or its counsel in writing of the claim or action with a copy thereof. The Executive’s
failure to timely notify the Company of the claim or action will relieve the Company from any
obligation to the Executive under this section. The Executive will reasonably assist the Company
in the defense of any action. The Company will not indemnify Executive for any intentional acts or

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misconduct engaged in by Executive, including, but not limited to, any acts which could result in
cause termination pursuant to Section 5(a) above.

          12. Miscellaneous.

                (a) Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Florida and the sole and exclusive venue for any
litigation arising out of this contract will be the circuit court in Hillsborough County, Florida.

                (b) Waiver/Amendment. The waiver by any party to this Agreement of a
breach of any provision hereof by any other party shall not be construed as a waiver of any
subsequent breach by any party. No provision of this Agreement may be terminated, amended,
supplemented, waived or modified other than by an instrument in writing signed by the party against
whom the enforcement of the termination, amendment, supplement, waiver or modification is sought.

                (c) Entire Agreement. This Agreement represents the entire agreement between the
parties with respect to the subject matter hereof and replaces and supersedes any prior agreements
or understandings.

                (d) Facsimiles/PDF’s/Counterparts. This Agreement may be executed in counterparts,
all of which shall constitute one and the same instrument. Facsimile copies and electronic
Portable Document Format files of executed signature pages will be deemed original for all
purposes.

                (e) Section 409A of the Code. This Agreement and the benefits provided hereunder are
intended to be exempt from or to comply with the requirements of Section 409A of the Code, and
shall be interpreted and administered consistent with such intent. To the extent required for
compliance with the requirements of Section 409A of the Code, references in this Agreement to a
termination of employment shall mean a “separation of service” with the meaning of Section 409A of
the Code.

          IN WITNESS WHEREOF, the Company and the Executive have duly executed this Agreement as of the
date first above written.

	 	 	 	 	 
	 	 	COMPANY:
	 
	 	 	 	 
	 	 	PREMIER EXHIBITIONS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 
	 	 	   
	 	 	Bruce Eskowitz

8exv10w37

 

Exhibit 10.37

Amended and Restated Revolving Loan Agreement

AGREEMENT between the undersigned (the “Company”) and Wells Fargo Equipment Finance, Inc.
(“Wells Fargo”). This Amended and Restated Revolving Loan Agreement (the “Agreement”) combines
amends and restates two Revolving Loan Agreements associated with account numbers 90143318 and
90141314, and shall become effective beginning on the date undersigned.

	1.	 	Loans.

WFEFI agrees, subject to the terms of this Agreement, to make loans to the Company (the “Loans”)
from time to time from the date hereof to and including January 31, 2009 (the
“Termination Date”), up to but not exceeding, in the aggregate principal amount, at any one time
outstanding, the sum of $10,000,000.00 (the “Line of Credit”). Except for the initial
Loan made hereunder, each Loan shall be in the minimum amount of $25,000.00 or a
multiple thereof. All Loans made hereunder will be repayable at WFEFI’s address set forth herein
or at such other address as WFEFI may from time to time direct.

	2.	 	Condition Precedent to all Loans.

WFEFI shall not be obligated to make any Loan under this Agreement if, at the time of the making
of the proposed Loan:

	 	(a)	 	an Event of Default, as defined in Section 13, has occurred and is continuing;
	 
	 	(b)	 	the aggregate principal amount of Loans outstanding exceeds the Available Line of Credit
as defined in Section 7.1; or
	 
	 	(c)	 	there has been a material adverse change in the Company’s financial
condition from that shown in the Company’s financial statement dated December
31, 2006.

	3.	 	Loan Account; Monthly Statements.

All Loans will be charged, and payments received on account of such Loans credited, to an
account maintained in the Company’s name on WFEFI’s books (the “Loan Account”). Each month WFEFI
will render to the Company a statement of the Loan Account which shall constitute an account
stated and shall be deemed to be correct, accepted by and binding upon the Company unless WFEFI
shall receive a written statement of exceptions from the Company within 30 days after such
statement has been rendered to the Company. In the event WFEFI should so request, the Company
agrees to execute and deliver to WFEFI such promissory notes of the Company as WFEFI shall
request in order to evidence the Loans, but unless and until WFEFI should so request, the Loan
Account and the monthly statements thereof rendered by WFEFI to the Company shall constitute the
primary evidence of the Loans.

	4.	 	Repayment of Loans.

	4.1	 	At any time prior to Termination Date, the Company may make payments to WFEFI on account
of the Loans, provided that the Company may not make any payment which results in the
outstanding principal amount owing under the Loan Account to be less than
$250,000.00. All such payments may, at WFEFI’S option, be applied first to the
payment of accrued interest and then to principal.

	4.2	 	The Company promises to pay the outstanding principal amount owing under the Loan
Account as of the Termination Date in 36 equal successive monthly installments, commencing
on, February 28, 2009 and on a like date of each month thereafter until such amount
has been paid in full, provided, however, that the final installment shall be in the amount
of the then unpaid principal amount.

	4.3	 	At any time on or after the Termination Date, the Company may pay the then outstanding
principal amount owing on the Loan Account in whole or in part, without penalty, provided
that interest accrued to the date of such payment is paid with such payment. Each such
partial principal payment shall be in an amount equal to the amount of a monthly installment
determined under Section 4.2 or a multiple thereof. All such partial principal payments
shall be applied to the monthly installments due under Section 4.2 in the inverse order of
their maturities.

	 	 	 
	2101 (8/99) Non Standard Revolving Loan Agreement — Single Advance Rate

	 	Page 1 of 10

 

 

	5.	 	Interest.

All Loans shall bear interest payable monthly at a rate per annum equal to the “governing rate”
plus 0.25% on the average daily unpaid balance of principal outstanding on all such
Loans during the month, but in no event greater than the highest rate permitted by applicable
law, even if this Agreement shall state a minimum rate of interest. Interest shall be payable
within 5 business days after the Company’s receipt of WFEFI’s interest statement.

“Governing rate” shall mean a rate equal to the highest of (i) the Prime Rate of The Chase
Manhattan Bank or its successors or (ii) “The Wall Street Journal Prim Rate” or (iii) the
commercial paper rate in effect from time to time. Interest shall be computed on the basis of a
year of 360 days. The Prime Rate of The Chase Manhattan Bank or its successors shall mean the
rate of interest publicly announced by The Chase Manhattan Bank or its successors in New York
from time to time as its Prime Rate. The Prime Rate of The Chase Manhattan Bank or its successors
is not intended to be the lowest rate of interest charged by The Chase Manhattan Bank or its
successors to its borrowers. “The Wall Street Journal Prime Rate” shall mean the Prime Rate
listed by the Wall Street Journal. If more than one Prime Rate is listed in the Wall Street
Journal, then the highest rate shall apply. “Commercial paper rate” shall mean the average rate
quoted by the Wall Street Journal or such other source as WFEFI may determine for 30-day dealer
commercial paper.

The Governing Rate on the date of this Agreement is 8.25% per annum.

	6.	Definitions; Standards of Eligibility.
	 
	6.1	 	“Receivables” shall mean accounts, contract rights, chattel paper, notes, drafts, rental
receivables, conditional sale contracts,
security agreements, installment paper, installment sales, revolving charge accounts, and
other obligations for the payment of money, including inter-company accounts and notes
receivable, and all documents, contracts, invoices and instruments evidencing or constituting
the same and all security instruments and security agreements relating thereto, which are
created or acquired by the Company, all property the sale or lease of which gives rise or
purports to give rise to Receivables, and all cash and non-cash proceeds thereof, including
any merchandise returned or rejected by, or repossessed from customers.
	 
	6.2	 	“Eligible Receivables” shall mean Receivables created or acquired by the Company in the
regular course of its business as presently
conducted, which are and at all times continue to be acceptable to WFEFI in all respects and
which are payable within ninety (90) days of invoice date. In general, no Receivable shall be
deemed eligible unless: the credit of the obligor on such Receivable is and continues to be
acceptable to WFEFI; such Receivable represents an existing, valid and legally enforceable
indebtedness based upon an actual and bona fide sale and delivery or lease of property or
rendition of services to the named obligor, which has been finally accepted by the obligor and
for which the obligor is unconditionally liable to make payment in the amount stated in each
invoice, document or instrument evidencing, constituting or accompanying the Receivable in
accordance with the terms thereof, without rights of rejection or return or offset, defense,
counterclaim or claim of discount or dedication; all statements made and all unpaid balances
appearing in the invoices, documents and instruments representing or constituting the
Receivables, are true and correct and are in all respects what they purport to be, and all
signatures and endorsements that appear thereon are genuine and all signatories and endorsers,
if any, have full capacity to contract, and the obligor owing such Receivable is not
affiliated with or employed by the Company; absolute title to each Receivable, free and clear
of any liens and encumbrances or claims of others, including liens or encumbrances or claims
of ownership on the property the sale or lease of which purports to give rise to such
Receivable, is vested absolutely in the Company and no other assignment of or security
interest or other interest in the Receivable in favor of others is then in effect; the
transactions underlying or giving rise to any Receivable do not violate any applicable state
or federal law or regulation and all documents relating to the Receivables are legally
sufficient under such laws and regulations and are legally enforceable in accordance with
their terms; and any contract under which any Receivable arises does not contain a prohibition
against assignment or require the consent of or notice to the obligor with respect to any
assignment of monies arising thereunder. A Receivable will not be deemed an Eligible
Receivable if any of the following is the case: it is ninety (90) or more days past due; it
represents a COD sale; it is a contra account; it is an employee/officer account; it is a
retainage account; the obligor owing such Receivable resides outside of the United States.
	 
	6.5	 	“Equipment” shall have the same meaning as such term is defined under the Uniform Commercial
Code.
	 
	6.6	 	“Eligible Equipment” shall mean all of the Equipment which is owned by the Company free
and clear of all liens, encumbrances or claims in trust of others, and which at all times
continues to be acceptable to WFEFI for Eligible Inventory and Eligible Equipment
purposes.
	 
	6.7	 	“Obligations” shall mean all loans and advances from time to time made by WFEFI to the Company
hereunder and to others at the
request of or for the account of or for the benefit of the Company, all other indebtedness and
obligations which may be now or hereafter owing by the Company to WFEFI under this Agreement
or any other agreement which may now or hereafter be entered

	 	 	 
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into by WFEFI with the Company, howsoever arising, whether absolute or contingent, joint or
several, matured or unmatured, direct or indirect, primary or secondary, including, but not
limited to, WFEFIs interest or other charges hereunder or under any other agreement between
the Company and WFEFI. The Company hereby agrees to pay on demand all costs and fees WFEFI may
incur in the event of default by the Company hereunder, all costs and expenses (including, all
out-of-pocket expenses and attorneys’ fees actually paid by WFEFI) incurred by WFEFI, its
employees or agents in protecting, maintaining, preserving, enforcing or foreclosing errs
security interest in any Eligible Inventory and Eligible Equipment, including all efforts made
to enforce collection of any Receivable, whether through judicial proceedings or otherwise, or
in defending or prosecuting any action or proceeding arising out of or relating to WFEFIs
transactions with the Company, all of which are hereby also included in the definition of
“Obligations” and which may be charged at WFEFIs option to the Loan Accounts in the event the
same are not promptly paid after demand.

Standards of eligibility or acceptability for Eligible Inventory and Eligible Equipment
purposes and determination of value shall be fixed and may be revised from time to time solely
by WFEFI in its exclusive judgment, exercised reasonably and in good faith. Reliance by WFEFI
from time to time on listings, reports and other information relating to any Eligible Inventory
and Eligible Equipment furnished by or obtained from the Company shall not be deemed to limit
WFEFIs right to revise standards of eligibility or acceptability and determination of value at
any time and from time to time.

7. Grant of Security Interest; Eligible Inventory and Eligible Equipment.

	7.1	 	As security for the prompt payment in full of all present and future Obligations, the
Company hereby grants to WFEFI a security interest in and hereby assigns and pledges to
WFEFI, its successors and assigns (which grant, assignment and pledge shall continue until
payment in full of all Obligations, whether or not this Agreement shall have sooner
terminated), all right, title and interest of the Company in and to the following (which,
together with any other security at any time pledged, assigned or delivered by the Company to
WFEFI or received by WFEFI in connection with any Obligations are herein sometimes
collectively called “Eligible Inventory and Eligible Equipment”):

	(a)	 	All Receivables of the Company, whether or not the same be Eligible Receivables and whether
or not specifically listed on any schedules, assignments or reports furnished to WFEFI from
time to time, whether now existing or arising or created or acquired at any time hereafter,
together with all rights to any and all sums due and to become due on Receivables, all
proceeds of Receivables in whatever form, including cash, checks, notes, drafts and other
instruments for the payment of money, and all right, title and interest in and to any
merchandise the sale or lease of which gives rise to, or purports to create any Receivable or
which secures any Receivable, all property allocable to unshipped orders and all merchandise
returned by or reclaimed or repossessed from customers, all rights of stoppage in transit,
replevin, repossession and reclamation and all other rights of any unpaid vendor or lienor.
The continuing general assignment and pledge of and security interest in Receivables
contained herein shall include all accounts, all documents, instruments, contracts, liens and
security instruments, all credit insurance polices and other insurance and all guarantees
relating to Receivables, all books and records evidencing, securing or relating to
Receivables, all Eligible Inventory and Eligible Equipment, deposits, dealer reserves, or
other security securing the obligations of any person under or relating to Receivables, all
credit balances in favor of the Company on WFEFIs books, and all rights and remedies of
whatever kind or nature the Company may hold or acquire for the purpose of securing or
enforcing Receivables, and all general intangibles relating to or arising out of Receivables;
and

	(b)	 	All equipment now or hereafter listed on Schedule A; and

	(c)	 	All other personal property of the Company, now existing or hereafter arising or acquired,
including without limitation all of the Company’s accounts, goods, furniture, machinery,
equipment, fixtures, investment property, general intangibles (including, without limitation,
goodwill, inventions, designs, patents, patent applications, trademarks, trademark
applications, service marks, trade names, licenses, leasehold interests in real and other
security held by or granted to the Company to secure payment of the Company’s accounts,
investment property, general intangibles, instruments, and notes), tax refunds, chattel
paper, contract rights, instruments, documents, notes, returned and repossessed goods,
together with all accessions to, substitutions for, and all replacements, products and
proceeds of the foregoing (including, without limitation, proceeds of insurance policies
insuring any of the foregoing), all books and records (including, without limitation,
customer lists, credit files, computer programs, printouts, and other computer materials and
records) pertaining to any of the foregoing, and all insurance policies insuring any of the
foregoing.

The Obligations shall also be secured by any property in which the company may have granted, or
may in the future grant, a security interest to WFEFI pursuant to any other agreement, including,
but not limited to, any such agreement which WFEFI acquires by the way of purchase, assignment or
otherwise.

	 	 	 
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8. Available Line of Credit.

	8.1	 	The maximum principal amount of Loans that may, from time to time, be outstanding under this
Agreement, and which in no event shall exceed the Line of Credit, is hereinafter referred to as the “Available Line of Credit.”
	 
	8.2	 	The Available Line of Credit, at any time and from time to time, shall be an amount equal to the following:

	(a)	 	Sixty-five percent (65%) of the amount owing on Eligible Receivables as computed from
monthly aging reports to be submitted to WFEFI by Company; and
	 
	(b)	 	Eighty (80%) of the aggregate appraised value of the Eligible Equipment;- and.

	(c)	 	Fifty percent (50%) of the Eligible Inventory as computed from monthly reports to be
submitted to WFEFI, up to a maximum advance of $700,000.00.

	8.3	 	The total of Eligible Receivables as of the date June 30, 2007 is
$15,755,504.00. Sixty-five percent (65%) of the Eligible Receivables is
$10,241,078.00. The aggregate appraised value of Eligible Equipment described in
Schedule A as of this date is $2,314,150.00. Eighty percent (80%) of the aggregate
appraised value of the Eligible Equipment is $1,851,320.00.

	8.4	 	The fair and correct appraised value of each item of Eligible Equipment shall be deemed to
be the amount set forth opposite each such item in Schedule A attached hereto.

	8.5	 	The Company may, from time to time, up to and including the Termination Date add additional
items of Eligible Equipment to Schedule A, provided that each such item of Eligible Equipment
must be acceptable to WFEFI in all respects. The appraised value of any such item of new
Eligible Equipment shall be 100% of the cash price (exclusive of taxes and charges) paid by
the Company for such equipment and the appraised value of any such item of used Eligible
Equipment shall be agreed upon Auction Value.

	8.6	 	The appraised value of each item of Eligible Equipment shall be deemed to depreciate at the
rate of 1.50% of the original appraised value of such item per month, effective the
first day of each month, commencing September 1, 2007, or, in the event that Schedule
A is subsequently amended to add other Eligible Equipment, commencing on the first day of the
month following the month in which such Eligible Equipment was added to Schedule A. The
Company may, subject to the following terms and conditions, elect to reappraise any or all of
the individual items of Eligible Equipment on Schedule A and request that WFEFI use the
reappraised values to replace the depreciated values in computing the value of the Eligible
Equipment:

	 	(i)	 	the Company will not have the right to request a reappraisal of any item of Eligible
Equipment after any applicable Termination Date or if an Event of Default has occurred and is continuing;
	 
	 	(ii)	 	an item of Eligible Equipment may be reappraised only once during any calendar year,
	 
	 	(iii)	 	any reappraisal of an item of Eligible Equipment shall be made on the same basis as the
last appraisal of such item or if no appraisal was previously made of such item, the appraisal shall be made on a mutually agreed upon basis; and
	 
	 	(iv)	 	the Company shall request the reappraisal in writing and shall pay all
costs associated with the reappraisal and the appraiser shall be subject to approval by WFEFI and approval shall not be reasonably
withheld.

	8.7	 	Any Eligible Equipment which is subsequently sold or otherwise disposed of, lost or
destroyed, or which in the opinion of WFEFI has for any other reason lost all Eligible
Equipment value, shall be deemed to have an appraised value of zero.

	8.8	 	Notwithstanding anything to the contrary contained in Section 4.2, if at any time the
aggregate principal amount of all Loans outstanding exceeds the Available Line of Credit then
in effect, the Company will, within 10 days after WFEFIs request therefor, either

	 	(a)	 	add such additional Eligible Equipment to Schedule A to increase the Available Line
of Credit to an amount equal to or exceeding the aggregate principal amount of all loans
then outstanding; or
	 
	 	(b)	 	pay WFEFI such amount so that the amount of the Loans outstanding does not exceed the
Available Line of Credit.

9. Location of Eligible Equipment.

The Company and WFEFI agree that regardless of the manner of affixation, the Eligible Equipment
shall remain personal property and not become part of any real estate. The Company agrees that
the Eligible Equipment will be kept at the location or locations specified on Schedule A or
within the States of Arizona, California, Idaho, New Mexico, Nevada, Texas, Utah or Wyoming.

	 	 	 
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10. Representations and Warranties.

The Company represents and warrants to WFEFI that:

	10.1	 	except for the security interest granted hereby, the Eligible Inventory and Eligible
Equipment is and will remain free from all liens, claims, security interests and encumbrances;

	10.2	 	no financing statement covering the Eligible Inventory and Eligible Equipment or any
proceeds thereof is on file in favor of anyone other than WFEFI, but if such other financing statement is on file, it will be terminated or
subordinated in a manner satisfactory to WFEFI;

	10.3	 	all information supplied and statements made by the Company in any financial, credit or
accounting statement or application for credit prior to, contemporaneously with or subsequent to the execution of this Agreement, are and
shall be true, correct, valid and genuine;

	10.4	 	the Company has full authority to enter into and to perform under this Agreement and in
so doing, it is not violating its charter or by-laws, any law or regulation or agreement with third parties, and it has taken all such action
as may be necessary or appropriate to make this Agreement binding upon it; and

	10.5	 	this Agreement has been duly executed and delivered by the Company and constitutes the
legal, valid and binding obligation of the Company that is enforceable against it in accordance with the terms hereof, except as such
enforcement may be limited by bankruptcy or other similar laws affecting the rights of creditors generally.

11. Company’s Agreements.

The Company agrees:

	11.1	 	to defend at Company’s own cost any action, proceeding, or claim affecting the Eligible
Inventory and Eligible Equipment;
	 
	11.2	 	to pay reasonable attorneys’ fees and other expenses incurred by WFEFI in enforcing its
rights and remedies under this Agreement;

	11.3	 	to pay promptly all taxes, assessments, license fees and other public or private charges
when levied or assessed against the Eligible Inventory and Eligible Equipment of this Agreement;

	11.4	 	that, if any item of Eligible Inventory and Eligible Equipment is a motor vehicle or other
property for which a certificate of title is required or permitted by law, Company shall obtain such certificate with respect to the Eligible
Inventory and Eligible Equipment showing the security interest of WFEFI thereon and in any event shall do everything necessary or expedient
to preserve or perfect the security
interest of WFEFI;

	11.5	 	that the Company will not misuse, fail to keep in good repair, secrete, or without the
prior written consent of WFEFI, sell, rent, lend, encumber or transfer any of the Eligible Inventory and Eligible Equipment notwithstanding
WFEFIs right to proceeds;

	11.6	 	that WFEFI may, at any reasonable time, enter upon the Company’s premises or wherever any
of the Eligible Inventory and Eligible Equipment may be located, inspect the Eligible Inventory and Eligible Equipment and/or the
Company’s books and records pertaining to the Eligible Inventory and Eligible Equipment, and Company shall assist WFEFI in making such
inspection;

	11.7	 	that the security interest granted by the Company to WFEFI shall continue to be effective
as long as there are any Obligations owed by the Company to WFEFI or this Agreement shall remain in effect

	11.8	 	to preserve and maintain its corporate existence and good standing in the jurisdiction
of its incorporation, and qualify and remain qualified as a foreign corporation in each jurisdiction in which such qualification is required; and
	 
	11.9	 	that there will be no more material change of ownership or control from that which exists at the time of this agreement.

12. Insurance and Risk of Loss.

All risk of loss, damage to or destruction of the Eligible Inventory and Eligible Equipment shall
at all times be on the Company. The Company will procure forthwith and maintain at the Company’s
expense insurance against all risks of loss or physical damage to the Eligible Equipment for the
full insurable value thereof for the life of this Agreement plus breach of warranty insurance and
such other insurance thereon in amounts and against such risks as WFEFI may specify, and shall
promptly deliver each policy to WFEFI with a standard long-form mortgagee endorsement attached
thereto showing loss payable to WFEFI; and providing WFEFI with not less than 30 days written
notice of cancellation; each policy shall be in form, terms and amount and with insurance
carriers satisfactory to WFEFI; WFEFIs

	 	 	 
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	 	Page 5 of 10

 

 

acceptance of policies in lesser amounts or risks shall not be a waiver of the Company’s
foregoing obligations. As to WFEFls interest in such policy, no act or omission of the Company
or any of its officers, agents, employees or representatives shall affect the obligations of the
insurer to pay the full amount of any loss.

The Company hereby assigns to WFEFI any monies which may become payable under any such policy of
insurance and irrevocably constitutes and appoints WFEFI as the Company’s attorney in fact (a)
to hold each original insurance policy, (b) to make, settle and adjust claims under each policy
of insurance, (c) to make claims for any monies which may become payable under such and other
insurance on the Eligible Equipment including returned or unearned premiums, and (d) to endorse
the Company’s name on any check draft or other instrument received in payment of claims or
returned or unearned premiums under each policy and to apply the funds to the payment of the
indebtedness owing to WFEFI; provided, however, WFEFI is under no obligation to do any of the
foregoing.

Should the Company fail to furnish such insurance policy to WFEFI, or to maintain such policy in
full force, or to pay any premium in whole or in part relating thereto, then WFEFI, without
waiving or releasing any default or obligation by the Company, may (but shall be under no
obligation to) obtain and maintain insurance and pay the premium therefore on behalf of the
Company and charge the premium to the Company’s indebtedness under this Agreement. The full
amount of any such premium paid by WFEFI shall be payable by the Company upon demand, and failure
to pay same shall constitute an event of default under this Agreement.

13. Financial Reports.

The Company and Meadow Valley Corporation agree that, until the Loans have been paid in full, it
will furnish WFEFI:

	 	(a)	 	within 120 days after the end of each fiscal year of the Company and Meadow Valley
Corporation, a balance sheet of the Company and Meadow Valley Corporation as at the end
of such fiscal year and statements of profit and loss and surplus, all prepared in
accordance with generally accepted principles and practices of accounting consistently
applied, and certified by independent certified public accountants selected by the
Company and Meadow Valley Corporation and satisfactory to WFEFI;
	 
	 	(b)	 	within 60 days after the end of each of the first three quarters of each fiscal
year of the Company and Meadow Valley Corporation, a balance sheet of the Company and
Meadow Valley Corporation as at the end of such quarter and statements of profit and
loss and surplus for such period, all prepared in accordance with generally accepted
principles and practices of accounting consistently applied and certified by the chief
financial officer or the principal accounting officer of the Company and Meadow Valley
Corporation; and
	 
	 	(c)	 	from time to time, such further information regarding the business affairs and
financial condition of the Company and Meadow Valley Corporation as WFEFI may reasonably
require.
	 
	 	(d)	 	within 30 days of each fiscal quarter of the Company and Meadow Valley
Corporation, a job performance report detailing, at minimum, the original contract,
estimated cost and gross profit of each ongoing contract and the revenues and gross
profit recognized.

14. Events of Default.

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

	14.1	 	the Company fails to pay any Obligation when due and payable (whether due at scheduled
maturity, required prepayment, acceleration or otherwise);

	14.2	 	the Company fails or neglects to perform, keep or observe any term, provision,
condition, covenant, representation or warranty contained in this Agreement or in any
other present or future agreement between the Company and WFEFI;

	14.3	 	the Company becomes insolvent or ceases to do business as a going concern;

	14.4	 	the filing by or against the Company of any petition or complaint or the commencement of
any case under any provision of the Federal bankruptcy laws or the Company admits its
inability to pay or fails to pay its debts generally as they mature;

	14.5	 	the Company makes an assignment for the benefit of creditors, its property is attached or
a receiver is appointed for the Company or any other insolvency proceedings are instituted
by or against the Company;

	14.6	 	whenever WFEFI, in good faith, believes the prospect of payment or performance is
impaired or in good faith believes that the Eligible Inventory and Eligible Equipment is not
adequate security for the Obligations or in good faith otherwise deems itself to be
insecure;

	14.7	 	any information furnished by or on behalf of the Company relating to the Eligible
Inventory and Eligible Equipment or the financial condition or business affairs of the
Company is determined by WFEFI to be false or misleading in any material respect;

	 	 	 
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	14.8	 	any guarantor dies or defaults in the payment or performance of any Obligation to
WFEFI or any guaranty obtained in connection with this Agreement ceases to be in full
force and effect; or
	 
	14.9	 	a surety, bonding company or guarantor takes over the Company’s performance of any job
contracted by the Company.

The Company shall not be deemed in default pursuant to the preceding paragraphs
14.1,14.2,14.6,14.7,14.8 and 14.9 unless or until WFEFI has provided the Company with prior
written notice of default and allowed the Company ten (10) days from the date of receipt of
such notice to cure the alleged default.

15. Acceleration of Obligations and Remedies.

	15.1	 	Upon the occurrence of an Event of Default and the lapse of the ten (10) day cure
period if pertinent, the outstanding balance owing under this Agreement and all other
Obligations shall, if WFEFI shall so elect, become immediately due and payable without
notice to or demand upon the Company of any kind and the Loans shall bear interest at the
same rate as before maturity until paid in full. In no event shall the Company, upon
acceleration of the maturity of the Obligations by WFEFI, or otherwise, be required to pay
any interest in excess of the maximum amount permitted by law. Any acceleration of the
Obligations, if elected by WFEFI, shall be subject to all applicable laws, including laws
as to rebates and refunds of unearned charges.
	 
	15.2	 	Upon the occurrence of an Event of Default and the lapse of the ten (10) day cure
period if pertinent and at any time thereafter, WFEFI shall have all the rights and
remedies of a secured party under the Uniform Commercial Code and any other applicable
laws, including the right to any deficiency remaining after disposition of the Eligible
Inventory and Eligible Equipment for which deficiency Company hereby agrees to remain
fully liable. The Company agrees that WFEFI, by itself or its agent, may without notice to
any person and without judicial process of any kind, enter into any premises or upon any
land owned, leased or otherwise under the real or apparent control of the Company or any
agent of the Company where the Eligible Inventory and Eligible Equipment may be or where
WFEFI believes the Eligible Inventory and Eligible Equipment may be, and disassemble,
render unusable and/or repossess all or any item of the Eligible Inventory and Eligible
Equipment, and disconnect and separate all Eligible Inventory and Eligible Equipment from
any other property. The Company expressly waives all further rights to possession of the
Eligible Inventory and Eligible Equipment after default and all claims for injuries
suffered through or loss caused by such entering and/or repossession. WFEFI may require
the Company to assemble the Eligible Inventory and Eligible Equipment and return it to
WFEFI at a place to be designated by WFEFI which is reasonably convenient to both parties.
WFEFI will give the Company reasonable notice of the time and place of any public sale of
the Eligible Inventory and Eligible Equipment or of the time after which any private sale
or any other intended disposition of the Eligible Inventory and Eligible Equipment is to
be made. Unless otherwise provided by law, the requirement of reasonable notice shall be
met if such notice is mailed, postage prepaid, to the address of the Company shown herein
at least 10 days before the time of the sale or disposition. The proceeds of any such sale
or other disposition of the Eligible Inventory and Eligible Equipment shall be applied
first to the payment of all expenses of retaking, holding, storing and preparing for sale,
selling and the like, next to the payment of reasonable attorneys’ fees and other legal
expenses incurred by WFEFI in connection with enforcing any of its rights under this
Agreement and then to the payment of the Obligations in such order as WFEFI, in its sole
discretion, may elect. All of WFEFIs rights are cumulative and not alternative.

16. Waiver of Defaults; Agreement Inclusive.

WFEFI may in its sole discretion waive a default, or cure, at the Company’s expense, a default.
Any such waiver in a particular instance or of a particular default shall not be a waiver of
other defaults or the same kind of default at another time. No modification or change in this
Agreement or any related note, instrument or agreement shall bind WFEFI unless such changes or
modifications shall be in writing signed by WFEFI. No oral agreement shall be binding on either
party.

17. Financing Statements; Certain Expenses.

If permitted by law, the Company authorizes WFEFI to file financing statement with respect to the
Eligible Inventory and Eligible Equipment signed only by WFEFI and to file a carbon, photograph
or other reproduction of this Agreement or of a financing statement. At the request of WFEFI, the
Company will execute any financing statements, agreements or documents, in form satisfactory to
WFEFI which WFEFI may deem necessary or advisable to establish and maintain a perfected security
interest in the Eligible Inventory and Eligible Equipment, and will pay the cost of filing or
recording the same in all public offices deemed necessary or advisable by WFEFI. The Company also
agrees to pay all costs and expenses incurred by WFEFI in conducting UCC, tax or other lien
searches against the Company or the Eligible Inventory and Eligible Equipment and such other fees
as may be agreed. The Company will reimburse WFEFI for all out-of-pocket expenses incurred by
WFEFI for any appraisals of equipment and charges made by anyone other than members of WFEFIs own
staff in connection with the processing of the Company’s Loan application.

	 	 	 
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18. Guaranties.

At, or prior to the making of the initial loan hereunder, the Company will furnish or cause to be
furnished to WFEFI, an unconditional guaranty of the payment and performance of the Company’s
Obligations, in form and substance satisfactory to WFEFI, from Meadow Valley Corporation

19. Approval of Documentation.

All documentation and other matters relating to the transactions contemplated by this Agreement,
including but not limited to the validity and enforceability of the guaranties, the first
priority security interest in WFEFIs favor on the property described in Schedule A, and any
releases or subordinations covering such property, shall be satisfactory and acceptable to WFEFI
and its counsel prior to disbursements of any and all Loans hereunder.

20. Late Charges.

Any payment not made when due shall, at the option of WFEFI, bear late charges thereon
calculated at the rate of 1 1/2% per month, but in no event greater than the highest rate
permitted by relevant law.

21. Inventory Reports; Assignments of Receivables.

In furtherance of the continuing assignment and security interest herein contained, the Company
will execute and make available to WFEFI from time to time in such form and manner and with such
frequency as may be required by WFEFI, solely for WFEFIs convenience in maintaining a record of
the Eligible Inventory and Eligible Equipment, such confirmatory Inventory reports and
confirmatory assignments of Receivables, designating, identifying or describing the Eligible
Inventory and Eligible Equipment and copies of invoices to customers, agreements of any kind
with its customers, copies of suppliers’ invoices, evidence of shipment and delivery and such
further documentation and information relating to the Eligible Inventory and Eligible Equipment
as WFEFI may require, provided, however, that if the Company should fail to execute and deliver
such reports or assignments, such failure shall not affect, diminish, modify or otherwise limit
WFEFIs security interest in all present and future Inventory and Receivables of the Company and
the proceeds thereof. The Company will furnish to WFEFI within thirty (30) days after the end of
each month, an aging report of the Company’s customers and amounts owing, prepared as at the end
of such month end. The Company agrees to advise WFEFI promptly of any substantial change
relating to the type, quantity or quality of Eligible Inventory and Eligible Equipment or of any
event which would have a material effect on the value of the Eligible Inventory and Eligible
Equipment or on the security interested granted to WFEFI therein.

22. Conditions Precedent

The making of any Loan hereunder at any time by WFEFI in its sole discretion is subject, among
other things, to compliance in full by the Company with all of the terms and provisions of this
Agreement, as at any time amended, and to the further condition that at the time of the proposed
making of any such Loan there shall have been no material adverse change in the financial
condition or business of the Company, and that no Event of Default, and no event which with the
lapse of time or the notice and lapse of time specified for the purpose of constituting such an
Event of Default, has occurred and is continuing at the time of such proposed Loan.

23. Additional Covenants of the Company.

See attached Financial Report Covenant Rider consisting of one (1) page attached hereto and made
a part hereof.

24. Notices.

Any notice or request required or permitted to be given under this Agreement shall be
sufficient if in writing and sent by hand or by Certified Mail, in either case return receipt
requested, to the parties at the following addresses, or at such other address as to which
either party shall notify the other in writing:

      Wells Fargo Equipment Finance, Inc.

      1540 West Fountainhead Pkwy.

      Tempe, AZ 85282

      Attn: VP Total Money

      Meadow Valley Contractors, Inc.

      4411 South 40th Street

      Phoenix, AZ 85040

      Attn: David Doty, CFO

	 	 	 
	2101 (8/99) Non Standard Revolving Loan Agreement — Single Advance Rate

	 	Page
8 of 10

 

 

25. Miscellaneous.

Any provisions hereof contrary to, prohibited by or invalid under applicable laws or regulations
shall be inapplicable and deemed omitted here from, but shall not invalidate the remaining
provisions hereof. If the Company is a corporation, the Company represents that this Agreement is
executed pursuant to the authority of its Board of Directors. The Company and WFEFI each hereby
waive any right to a trial by jury in any action or proceeding with respect to, in connection
with, or arising out of this Agreement, or any note or document delivered pursuant to this
Agreement. This agreement shall be binding upon and inure to the benefit of the Company and WFEFI
and their respective successors and assigns, except that the Company may not assign or transfer
any of its rights under this Agreement without the prior written consent of WFEFI. Section
headings are included in this Agreement for convenience of reference only and shall not constitute
a part of this Agreement for any other purpose.

If at any time this transaction would be usurious under applicable law, then regardless of any
provision contained in this Agreement or in any other agreement made in connection with this
transaction, it is agreed that:

	 	(a)	 	the total of all consideration which constitutes interest under applicable law that is
contracted for, charged or received upon this Agreement or any such other agreement shall
under no circumstances exceed the maximum rate of interest authorized by applicable law
and any excess shall be credited to the Company; and
	 
	 	(b)	 	if WFEFI elects to accelerate the maturity of, or if WFEFI permits the Company to
prepay the Indebtedness, any amounts which because of such action would constitute
interest may never include more than the maximum rate of interest authorized by applicable
law, and any excess interest, if any, provided for in this Agreement or otherwise, shall
be credited to the Company automatically as of the date of acceleration or prepayment.

26. Governing Law.

This Agreement shall be governed by, and construed in accordance with, the law of the State of
Minnesota.

27. Special Provisions. (See Special Provisions Instructions below.)

See Schedule “A” consisting of Five (5) pages attached hereto
and made a part hereof.
 See Rider “A” consisting of one (1)
page attached hereto and made a part hereof.

T no time will the amount of the aggregate appraised value of Eligible Equipment, net of
accumulated depreciation as describe in section 8.6, be lower than $1,000,000.00.

Notwithstanding and in addition to provisions of section 8.3, for purposes of calculating total
Available Line of Credit of the Company, the Eligible Equipment and Eligible Receivables will be
measured against the sum of the Loan Agreement and the Revolving Loan Agreement
dated                     .

In aggregate, the total of Eligible Receivables as of the date June 30, 2007 is
$15,755,504.00. Sixty-Five percent (65%) of the Eligible Receivables is
$10,214,778.00. the aggregate appraised value of Eligible Equipment described in Schedule A
as of this date is $2,314,150.00. Eighty percent (80%) of the aggregate appraise value of
the Eligible Equipment is $1,851,320.00. 
The Sum total of the above collateral components
is $18.359,154.00. The Available Line of Credit as of the date hereof is
$12,297.698.00.

THIS AGREEMENT AMENDS AND RESTATES THAT CERTAIN RESTATED AND AMENDED REVOLVING LOAN AGREEMENT DATED
December 22, 2005 BETWEEN THE COMPANY AND WFEFI.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date shown below.

	 	 	 	 	 
	Dated: 10/9/2007
	 	 	 	 
	 
	 	 	 	 
	Wells Fargo Equipment Finance, Inc.

	 	 	 	 
	 
	 	 
	By                                      
                      

	 	Title                                                
                             

	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 
	1540 W. Fountainhead Pkwy.
	 	 	 	 	 	 
	 

Address	 	 
	 
	 	 	 	 	 	 
	Tempe,

	 	AZ
	 	85285-7248
	 	 
	City
	 	State	 	Zip Code	 	 

	 	 	 
	2101 (8/99) Non Standard Revolving Loan Agreement — Single Advance Rate

	 	Page 9 of 10

 

 

	 	 	 	 	 	 
	Meadow Valley Contractors, Inc.
	 	 	 	 
	 

Company	 	 	 
	 
	 	 	 	 	 
	By  
	

	 	Title CFO	 	 

	 	 	 	 	 	 	 	 	 
	4602 E. Thomas Road
	 	 	 	 	 	 	 	 
	 

Principal Place of Business	 	 
	 
	 	 	 	 	 	 	 	 
	Phoenix

	 	AZ
	 	 	85018	 	 	 
	City

	 	State
	 	Zip Code
	 	 

If an organization,

Type of organization: Corporation

Jurisdiction of organization: Nevada

Organization identification Number (or “NONE”): C1649-1980

Location of chief executive office: Arizona

SPECIAL PROVISIONS INSTRUCTIONS — The notations to be entered in the Special Provisions
section of this document for use in ALABAMA, FLORIDA, GEORGIA, IDAHO, NEW HAMPSHIRE and OREGON
are shown in the applicable State pages of the Loans and Motor Vehicles Manual.

	 	 	 
	2101 (8/99) Non Standard Revolving Loan Agreement — Single Advance Rate

	 	Page 10 of 10

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