Document:

Exhibit 10.1

 

Exhibit 10.1

 

 

CREDIT AGREEMENT

among

CONSOLIDATED GRAPHICS, INC.

as Borrower,

THE GUARANTORS PARTIES HERETO,

THE LENDERS PARTIES HERETO

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

J.P. Morgan Securities, Inc.,

as Lead Arranger and Sole Book Runner

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Syndication Agent,

 

Dated as of October 6, 2006

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I
	 	DEFINITIONS	 	 	1	 
	Section 1.1
	 	Defined Terms.	 	 	1	 
	Section 1.2
	 	Other Definitional Provisions.	 	 	21	 
	Section 1.3
	 	Accounting Terms.	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	THE LOANS; AMOUNT AND TERMS	 	 	22	 
	Section 2.1
	 	Revolving Loans.	 	 	22	 
	Section 2.2
	 	Swingline Loan Subfacility.	 	 	24	 
	Section 2.3
	 	Letter of Credit Subfacility.	 	 	25	 
	Section 2.4
	 	Fees.	 	 	29	 
	Section 2.5
	 	Commitment Reductions and Increases.	 	 	29	 
	Section 2.6
	 	Prepayments.	 	 	30	 
	Section 2.7
	 	Minimum Principal Amount of Tranches.	 	 	32	 
	Section 2.8
	 	Default Rate and Payment Dates.	 	 	32	 
	Section 2.9
	 	Conversion Options.	 	 	32	 
	Section 2.10
	 	Computation of Interest and Fees.	 	 	33	 
	Section 2.11
	 	Pro Rata Treatment and Payments.	 	 	33	 
	Section 2.12
	 	Non-Receipt of Funds by the Administrative Agent.	 	 	35	 
	Section 2.13
	 	Inability to Determine Interest Rate.	 	 	36	 
	Section 2.14
	 	Illegality.	 	 	36	 
	Section 2.15
	 	Requirements of Law.	 	 	37	 
	Section 2.16
	 	Indemnity.	 	 	38	 
	Section 2.17
	 	Taxes.	 	 	39	 
	Section 2.18
	 	Indemnification; Nature of Issuing Lender's Duties.	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	REPRESENTATIONS AND WARRANTIES	 	 	42	 
	Section 3.1
	 	Financial Condition.	 	 	42	 
	Section 3.2
	 	No Change.	 	 	43	 
	Section 3.3
	 	Corporate Existence; Compliance with Law.	 	 	43	 
	Section 3.4
	 	Corporate Power; Authorization; Enforceable Obligations.	 	 	43	 
	Section 3.5
	 	No Legal Bar; No Default.	 	 	43	 
	Section 3.6
	 	No Material Litigation.	 	 	44	 
	Section 3.7
	 	Investment Company Act.	 	 	44	 
	Section 3.8
	 	Margin Regulations.	 	 	44	 
	Section 3.9
	 	ERISA.	 	 	44	 
	Section 3.10
	 	Environmental Matters.	 	 	45	 
	Section 3.11
	 	Purpose of Loans.	 	 	46	 
	Section 3.12
	 	Subsidiaries.	 	 	46	 
	Section 3.13
	 	Ownership.	 	 	46	 
	Section 3.14
	 	Indebtedness.	 	 	46	 
	Section 3.15
	 	Taxes.	 	 	46	 
	Section 3.16
	 	Intellectual Property.	 	 	47	 

 

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	 	 	 	 	Page	 
	Section 3.17
	 	Solvency.	 	 	47	 
	Section 3.18
	 	Investments.	 	 	47	 
	Section 3.19
	 	Location of Collateral.	 	 	47	 
	Section 3.20
	 	No Burdensome Restrictions.	 	 	48	 
	Section 3.21
	 	Brokers' Fees.	 	 	48	 
	Section 3.22
	 	Labor Matters.	 	 	48	 
	Section 3.23
	 	Accuracy and Completeness of Information.	 	 	48	 
	Section 3.24
	 	Material Contracts.	 	 	48	 
	Section 3.25
	 	Security Documents.	 	 	49	 
	Section 3.26
	 	Insurance.	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	CONDITIONS PRECEDENT	 	 	49	 
	Section 4.1
	 	Conditions to Closing Date and Initial Revolving Loans.	 	 	49	 
	Section 4.2
	 	Conditions to All Extensions of Credit.	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	AFFIRMATIVE COVENANTS	 	 	55	 
	Section 5.1
	 	Financial Statements.	 	 	55	 
	Section 5.2
	 	Certificates; Other Information.	 	 	56	 
	Section 5.3
	 	Payment of Obligations.	 	 	58	 
	Section 5.4
	 	Conduct of Business and Maintenance of Existence.	 	 	59	 
	Section 5.5
	 	Maintenance of Property; Insurance.	 	 	59	 
	Section 5.6
	 	Inspection of Property; Books and Records; Discussions.	 	 	60	 
	Section 5.7
	 	Notices.	 	 	60	 
	Section 5.8
	 	Environmental Laws.	 	 	61	 
	Section 5.9
	 	Financial Covenants.	 	 	61	 
	Section 5.10
	 	Additional Guarantors.	 	 	62	 
	Section 5.11
	 	Compliance with Law.	 	 	62	 
	Section 5.12
	 	Pledged Assets.	 	 	62	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	NEGATIVE COVENANTS	 	 	63	 
	Section 6.1
	 	Indebtedness.	 	 	63	 
	Section 6.2
	 	Liens.	 	 	64	 
	Section 6.3
	 	Guaranty Obligations.	 	 	64	 
	Section 6.4
	 	Intentionally Left Blank	 	 	65	 
	Section 6.5
	 	Nature of Business.	 	 	65	 
	Section 6.6
	 	Consolidation, Merger, Acquisitions, Sale or Purchase of Assets, etc.	 	 	65	 
	Section 6.7
	 	Advances, Investments and Loans.	 	 	66	 
	Section 6.8
	 	Transactions with Affiliates.	 	 	67	 
	Section 6.9
	 	Ownership of Subsidiaries; Restrictions.	 	 	67	 
	Section 6.10
	 	Fiscal Year; Organizational Documents; Material Contracts.	 	 	67	 
	Section 6.11
	 	Limitation on Restricted Actions.	 	 	67	 
	Section 6.12
	 	Restricted Payments.	 	 	68	 
	Section 6.13
	 	Prepayments of Indebtedness, etc.	 	 	68	 
	Section 6.14
	 	Sale Leasebacks.	 	 	68	 
	Section 6.15
	 	No Further Negative Pledges.	 	 	69	 

 

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	 	 	 	 	Page	 
	ARTICLE VII
	 	EVENTS OF DEFAULT	 	 	69	 
	Section 7.1
	 	Events of Default.	 	 	69	 
	Section 7.2
	 	Acceleration; Remedies.	 	 	71	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	THE ADMINISTRATIVE AGENT	 	 	72	 
	Section 8.1
	 	Appointment; Nature of Relationship.	 	 	72	 
	Section 8.2
	 	Powers.	 	 	72	 
	Section 8.3
	 	General Immunity.	 	 	72	 
	Section 8.4
	 	No Responsibility for Loans, Recitals, etc.	 	 	73	 
	Section 8.5
	 	Acting on Instructions of Lenders.	 	 	73	 
	Section 8.6
	 	Employment of Agents and Counsel.	 	 	73	 
	Section 8.7
	 	Reliance on Documents; Counsel.	 	 	74	 
	Section 8.8
	 	Administrative Agent's Reimbursement and Indemnification.	 	 	74	 
	Section 8.9
	 	Notice of Default.	 	 	75	 
	Section 8.10
	 	Rights as a Lender.	 	 	75	 
	Section 8.11
	 	Lender Credit Decision.	 	 	75	 
	Section 8.12
	 	Successor Administrative Agent.	 	 	75	 
	Section 8.13
	 	Administrative Agent and Arranger Fees.	 	 	76	 
	Section 8.14
	 	Delegation to Affiliates.	 	 	76	 
	Section 8.15
	 	Execution of Collateral Documents.	 	 	76	 
	Section 8.16
	 	Collateral Releases.	 	 	77	 
	Section 8.17
	 	Documentation Agent.	 	 	77	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	GUARANTY	 	 	77	 
	Section 9.1
	 	The Guaranty.	 	 	77	 
	Section 9.2
	 	Bankruptcy.	 	 	78	 
	Section 9.3
	 	Nature of Liability.	 	 	78	 
	Section 9.4
	 	Independent Obligation.	 	 	78	 
	Section 9.5
	 	Authorization.	 	 	78	 
	Section 9.6
	 	Reliance.	 	 	79	 
	Section 9.7
	 	Waiver.	 	 	79	 
	Section 9.8
	 	Limitation on Enforcement.	 	 	80	 
	Section 9.9
	 	Confirmation of Payment.	 	 	80	 
	 
	 	 	 	 	 	 
	ARTICLE X
	 	BENEFIT OF AGREEMENT; ASSIGNMENT; PARTICIPATIONS	 	 	80	 
	Section 10.1
	 	Successors and Assigns.	 	 	80	 
	Section 10.2
	 	Participations.	 	 	81	 
	Section 10.3
	 	Assignments.	 	 	82	 
	Section 10.4
	 	Dissemination of Information.	 	 	83	 
	Section 10.5
	 	Tax Treatment.	 	 	84	 
	 
	 	 	 	 	 	 
	ARTICLE XI
	 	MISCELLANEOUS	 	 	84	 
	Section 11.1
	 	Amendments, Waivers and Release of Collateral.	 	 	84	 
	Section 11.2
	 	Notices.	 	 	86	 
	Section 11.3
	 	No Waiver; Cumulative Remedies.	 	 	86	 
	Section 11.4
	 	Survival of Representations and Warranties.	 	 	87	 

 

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	 	 	 	 	Page	 
	Section 11.5
	 	Payment of Expenses and Taxes.	 	 	87	 
	Section 11.6
	 	Adjustments; Set-off.	 	 	88	 
	Section 11.7
	 	Table of Contents and Section Headings.	 	 	89	 
	Section 11.8
	 	Counterparts.	 	 	89	 
	Section 11.9
	 	Effectiveness.	 	 	89	 
	Section 11.10
	 	Severability.	 	 	89	 
	Section 11.11
	 	Integration.	 	 	89	 
	Section 11.12
	 	Governing Law.	 	 	89	 
	Section 11.13
	 	Consent to Jurisdiction and Service of Process.	 	 	90	 
	Section 11.14
	 	Arbitration.	 	 	90	 
	Section 11.15
	 	Confidentiality.	 	 	91	 
	Section 11.16
	 	Acknowledgments.	 	 	92	 
	Section 11.17
	 	Waivers of Jury Trial.	 	 	92	 
	Section 11.18
	 	Interest.	 	 	93	 
	Section 11.19
	 	Amendment and Restatement; Renewal Notes.	 	 	94	 
	Section 11.20
	 	Special Provisions Concerning LOC Documents.	 	 	94	 

 

iv

 

Schedules

	 	 	 
	Schedule 1.1(a)

	 	Account Designation Letter
	Schedule 1.1(b)

	 	Liens
	Schedule 1.1 (c)

	 	Existing Letters of Credit
	Schedule 2.1(a)

	 	Schedule of Lenders and Commitments
	Schedule 2.1(b)(i)

	 	Form of Notice of Borrowing
	Schedule 2.1(e)

	 	Form of Revolving Note
	Schedule 2.2(d)

	 	Form of Swingline Note
	Schedule 2.9

	 	Form of Notice of Conversion/Extension
	Schedule 2.17

	 	Section 2.17 Certificate
	Schedule 3.3

	 	Corporate Existence
	Schedule 3.6

	 	Litigation
	Schedule 3.9

	 	ERISA
	Schedule 3.12

	 	Subsidiaries
	Schedule 3.16

	 	Intellectual Property
	Schedule 3.19(a)

	 	Location of Real Property
	Schedule 3.19(b)

	 	Location of Collateral
	Schedule 3.19(c)

	 	Chief Executive Offices
	Schedule 3.22

	 	Labor Matters
	Schedule 3.24

	 	Material Contracts
	Schedule 4.1(c)

	 	Form of Legal Opinion
	Schedule 4.1(h)

	 	Form of Solvency Certificate
	Schedule 4.1(t)

	 	Form of Covenant Compliance Certificate
	Schedule 5.5(b)

	 	Insurance
	Schedule 5.10

	 	Form of Joinder Agreement
	Schedule 6.1(b)

	 	Indebtedness
	Schedule 10.3

	 	Form of Assignment and Assumption Agreement
	Schedule 11.2

	 	Schedule of Lenders’ Lending Offices

 

v

 

CREDIT AGREEMENT

CREDIT AGREEMENT, dated as of October 6, 2006, among CONSOLIDATED GRAPHICS, INC., a Texas
corporation (the “Borrower”), those Domestic Subsidiaries of the Borrower listed on the
signature pages hereto and as may from time to time become a party hereto, (collectively the
“Guarantors” and individually, a “Guarantor”), the several banks and other
financial institutions as may from time to time become parties to this Agreement (collectively, the
“Lenders” and individually, a “Lender”), and JPMORGAN CHASE BANK, N.A., a national
banking association with its main office in Chicago, Illinois, as Administrative Agent for the
Lenders hereunder (in such capacity, the “Administrative Agent”).

W I T N E S S E T H:

WHEREAS, the Borrower has requested that the Lenders make loans and other financial
accommodations to the Borrower in the amount of up to $155,000,000, as more particularly described
herein;

WHEREAS, the Lenders have agreed to make such loans and other financial accommodations to the
Borrower on the terms and conditions contained herein;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Defined Terms.

As used in this Agreement, terms defined in the preamble to this Agreement have the meanings
therein indicated, and the following terms have the following meanings:

“Account Designation Letter” shall mean the Notice of Account Designation Letter dated
the Closing Date from the Borrower to the Administrative Agent substantially in the form attached
hereto as Schedule 1.1(a).

“Additional Credit Party” shall mean each Person that becomes a Guarantor by execution
of a Joinder Agreement in accordance with Section 5.10.

“Administrative Agent” shall have the meaning set forth in the first paragraph of this
Agreement and any successors in such capacity.

“Affiliate” shall mean as to any Person, any other Person (excluding any Subsidiary)
which, directly or indirectly, is in control of, is controlled by, or is under common control with,
such Person. For purposes of this definition, a Person shall be deemed to be “controlled by” a
Person if such Person possesses, directly or indirectly, power either (a) to vote 10% or more of

 

 

 

the securities having ordinary voting power for the election of directors of such Person or
(b) to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

“Agreement” shall mean this Credit Agreement, as amended, modified or supplemented
from time to time in accordance with its terms.

“Alternate Base Rate” means, for any day, a rate of interest per annum equal to the
higher of (i) the Prime Rate for such day and (ii) the sum of the Federal Funds Effective Rate for
such day plus 1/2% per annum.

“Alternate Base Rate Loans” shall mean Loans that bear interest at an interest rate
based on the Alternate Base Rate.

“Applicable Percentage” shall mean, for any day, the rate per annum set forth below
opposite the applicable Level then in effect, it being understood that the Applicable Percentage
for (i) Revolving Loans which are Alternate Base Rate Loans shall be the percentage set forth under
the column “Alternate Base Rate Margin for Revolving Loans”, (ii) Revolving Loans which are LIBOR
Rate Loans shall be the percentage set forth under the column “LIBOR Rate Margin for Revolving
Loans and Letter of Credit Fee”, (iii) the Commitment Fee shall be the percentage set forth under
the column “Commitment Fee” and (iv) the Letter of Credit Fee shall be the percentage set forth
under the column “LIBOR Rate Margin for Revolving Loans and Letter of Credit Fee”:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	LIBOR Rate Margin	 	 
	 	 	 	 	Alternate Base Rate	 	for Revolving Loans	 	 
	 	 	Leverage	 	Margin for	 	and Letter of Credit	 	Commitment
	Level	 	Ratio	 	Revolving Loans	 	Fee	 	Fee
	I

	 	< 1.00 to 1.0
	 	 	0	%	 	 	0.625	%	 	 	0.15	%
	II

	 	< 1.50 to 1.0 but

> 1.00 to 1.0
	 	 	0	%	 	 	0.75	%	 	 	0.175	%
	III

	 	< 2.00 to 1.0 but

> 1.50 to 1.0
	 	 	0	%	 	 	1.00	%	 	 	0.20	%
	IV

	 	> 2.00 to 1.0
	 	 	0	%	 	 	1.25	%	 	 	0.25	%

The Applicable Percentage shall, in each case, be determined and adjusted quarterly on the date
five (5) Business Days after the date on which the Administrative Agent has received from the
Borrower the quarterly financial information and certifications required to be delivered to the
Administrative Agent and the Lenders in accordance with the provisions of Sections 5.1(b)
and 5.2(b) (each an “Interest Determination Date”). Such Applicable Percentage
shall be effective from such Interest Determination Date until the next such Interest Determination
Date. The initial Applicable Percentages on the Closing Date shall be based on Level I until
the first Interest Determination Date occurring after September 30, 2006. After the Closing Date,
if the Borrower shall fail to provide the quarterly financial information and certifications in
accordance

 

2

 

with the provisions of Sections 5.1(b) and 5.2(b), the Applicable Percentage from
such Interest Determination Date shall, on the date five (5) Business Days after the date by which
the Borrower was so required to provide such financial information and certifications to the
Administrative Agent and the Lenders, be based on Level IV until such time as such information and
certifications are provided, whereupon the Level shall be determined by the then current Leverage
Ratio.

“Approved Bank” shall have the meaning set forth in the definition of “Cash
Equivalents.”

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

“Arranger” shall mean J.P. Morgan Securities, Inc.

“Asset Disposition” shall mean the disposition of any or all of the assets (including,
without limitation, the Capital Stock of a Subsidiary or any ownership interest in a joint venture)
of any Credit Party or any Subsidiary whether by sale, lease, transfer or otherwise. The term
“Asset Disposition” shall not include (i) Specified Sales, (ii) the sale, lease or transfer of
assets permitted by Section 6.6(a)(iii), (iv), (v) or (vi) hereof,
or (iii) any Equity Issuance.

“Bankruptcy Code” shall mean the Bankruptcy Code in Title 11 of the United States
Code, as amended, modified, succeeded or replaced from time to time.

“Borrower” shall have the meaning set forth in the first paragraph of this Agreement.

“Borrowing Date” shall mean, in respect of any Loan, the date such Loan is made.

“Business” shall have the meaning set forth in Section 3.10.

“Business Day” shall mean a day other than a Saturday, Sunday or other day on which
commercial banks in Houston, Texas are authorized or required by law to close; provided,
however, that when used in connection with a rate determination, borrowing or payment in
respect of a LIBOR Rate Loan, the term “Business Day” shall also exclude any day on which banks in
London, England are not open for dealings in Dollar deposits in the London interbank market.

“Capital Lease” shall mean any lease of property, real or personal, the obligations
with respect to which are required to be capitalized on a balance sheet of the lessee in accordance
with GAAP.

“Capital Lease Obligations” shall mean the capitalized lease obligations relating to a
Capital Lease determined in accordance with GAAP.

“Capital Stock” shall mean (i) in the case of a corporation, capital stock, (ii) in
the case of an association or business entity, any and all shares, interests, participations,
rights or other

 

3

 

equivalents (however designated) of capital stock, (iii) in the case of a partnership,
partnership interests (whether general or limited), (iv) in the case of a limited liability
company, membership interests and (v) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of assets of, the
issuing Person.

“Cash Equivalents” shall mean (i) securities issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality thereof (provided that
the full faith and credit of the United States of America is pledged in support thereof) having
maturities of not more than twelve months from the date of acquisition (“Government
Obligations”), (ii) U.S. dollar denominated (or foreign currency fully hedged) time deposits,
certificates of deposit, Eurodollar time deposits and Eurodollar certificates of deposit of (y) any
domestic commercial bank of recognized standing having capital and surplus in excess of
$250,000,000 or (z) any bank whose short-term commercial paper rating from S&P is at least A-1 or
the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank
being an “Approved Bank”), in each case with maturities of not more than 364 days from the
date of acquisition, (iii) commercial paper and variable or fixed rate notes issued by any Approved
Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by any
domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the
equivalent thereof) or better by Moody’s and maturing within six months of the date of acquisition,
(iv) repurchase agreements with a bank or trust company (including a Lender) or a recognized
securities dealer having capital and surplus in excess of $500,000,000 for direct obligations
issued by or fully guaranteed by the United States of America, (v) obligations of any state of the
United States or any political subdivision thereof for the payment of the principal and redemption
price of and interest on which there shall have been irrevocably deposited Government Obligations
maturing as to principal and interest at times and in amounts sufficient to provide such payment,
(vi) auction preferred stock rated in the highest short-term credit rating category by S&P or
Moody’s, and (vii) investments in mutual funds whose investment criteria substantially complies
with the provisions hereof.

“Change of Control” shall mean the occurrence of any of the following events: (a) any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities and
Exchange Act of 1934, as amended) becomes after the date hereof the “beneficial owner” (defined as
aforesaid), directly or indirectly, of more than 35% of the Voting Stock of the Borrower, or (b)
Continuing Directors, shall cease for any reason to constitute a majority of the Board of Directors
of the Borrower then in office.

“Closing Date” shall mean the date of this Agreement.

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

“Collateral” shall mean a collective reference to the collateral which is identified
in, and at any time will be covered by, the Security Documents.

“Commitment” shall mean the Revolving Commitment, the LOC Commitment, the Swingline
Commitment, individually or collectively, as appropriate.

“Commitment Fee” shall have the meaning set forth in Section 2.4(a).

 

4

 

“Commitment Percentage” shall mean the Revolving Commitment Percentage and/or the LOC
Commitment Percentage, as appropriate.

“Commitment Period” shall mean the period from and including the Closing Date to but
not including the Revolving Commitment Termination Date.

“Commonly Controlled Entity” shall mean an entity, whether or not incorporated, which
is under common control with the Borrower within the meaning of Section 4001 of ERISA or is part of
a group which includes the Borrower and which is treated as a single employer under Section 414 of
the Code.

“Consolidated Capital Expenditures” shall mean, for any period, all capital
expenditures of the Borrower and its Subsidiaries on a consolidated basis for such period, as
determined in accordance with GAAP. The term “Consolidated Capital Expenditures” shall not include
(i) capital expenditures in respect of the reinvestment of proceeds derived from Recovery Events
received by the Borrower and its Subsidiaries to the extent that such reinvestment is permitted
under the Credit Documents or (ii) acquisitions of all or substantially all of the assets or stock
of businesses and/or mergers with other businesses. Furthermore, for purposes of calculating the
Interest Coverage Ratio only, “Consolidated Capital Expenditures” shall not include capital
expenditures that are financed by the Borrower or its Subsidiaries under equipment financings
permitted under Sections 6.1(c) or (i).

“Consolidated Cash Taxes” means, for any period, the aggregate of all taxes on income
of the Borrower and its Subsidiaries on a consolidated basis for such period, as determined in
accordance with GAAP.

“Consolidated EBITDA” shall mean, for any period, the sum of (i) Consolidated Net
Income for such period, plus (ii) an amount which, in the determination of Consolidated Net Income
for such period, has been deducted for (A) Consolidated Interest Expense, (B) total federal, state,
local and foreign income taxes and other similar taxes, (C) losses (or minus gains) on the
sale or disposition of assets outside the ordinary course of business and (D) depreciation,
amortization expense and other non-cash charges, all as determined in accordance with GAAP.

“Consolidated Interest Expense” shall mean, for any period, all interest expense of
the Borrower and its Subsidiaries (including, without limitation. the interest component under
Capital Leases), as determined in accordance with GAAP.

“Consolidated Net Income” shall mean, for any period, net income (excluding
extraordinary items) after taxes for such period of the Borrower and its Subsidiaries on a
consolidated basis, as determined in accordance with GAAP.

“Continuing Directors” shall mean during any period of up to 24 consecutive months
commencing after the Closing Date, individuals who at the beginning of such 24 month period were
directors of the Borrower (together with any new director whose election by the Borrower’s board of
directors or whose nomination for election by the Borrower’s shareholders was approved by a vote of
at least (60%) sixty percent of the directors then still in office who either
were directors at the beginning of such period or whose election or nomination for election
was previously so approved).

 

5

 

“Contractual Obligation” shall mean, as to any Person, any provision of any security
issued by such Person or of any agreement, instrument or undertaking to which such Person is a
party or by which it or any of its property is bound.

“Credit Documents” shall mean this Agreement, each of the Notes, any Joinder
Agreement, the Letters of Credit, LOC Documents and the Security Documents.

“Credit Party” shall mean any of the Borrower or the Guarantors.

“Credit Party Obligations” shall mean, without duplication, (i) all of the obligations
of the Credit Parties to the Lenders (including the Issuing Lender) and the Administrative Agent,
whenever arising, under this Agreement, the Notes or any of the other Credit Documents (including,
but not limited to, any interest accruing after the occurrence of a filing of a petition of
bankruptcy under the Bankruptcy Code with respect to any Credit Party, regardless of whether such
interest is an allowed claim under the Bankruptcy Code) and (ii) all liabilities and obligations,
whenever arising, owing from the Borrower or any of its Subsidiaries to any Lender, or any
Affiliate of a Lender, arising under any Hedging Agreement relating to the Loans.

“Debt Issuance” shall mean the issuance of any Indebtedness for borrowed money by any
Credit Party or any of its Subsidiaries (excluding, for purposes hereof, any Equity Issuance or any
Indebtedness of the Borrower and its Subsidiaries permitted to be incurred pursuant to Section
6.1 hereof).

“Default” shall mean any of the events specified in Section 7.1, whether or
not any requirement for the giving of notice or the lapse of time, or both, or any other condition,
has been satisfied.

“Default Rate” shall have the meaning set forth in Section 2.8.

“Defaulting Lender” shall mean, at any time, any Lender that, at such time (a) has
failed to make a Loan required pursuant to the term of this Credit Agreement, including the funding
of a Participation Interest in accordance with the terms hereof, (b) has failed to pay to the
Administrative Agent or any Lender an amount owed by such Lender pursuant to the terms of this
Credit Agreement, or (c) has been deemed insolvent or has become subject to a bankruptcy or
insolvency proceeding or to a receiver, trustee or similar official.

“Dollars” and “$” shall mean dollars in lawful currency of the United States
of America.

“Domestic Lending Office” shall mean, initially, the office of each Lender designated
as such Lender’s Domestic Lending Office shown on Schedule 11.2; and thereafter, such other
office of such Lender as such Lender may from time to time specify to the Administrative Agent and
the Borrower as the office of such Lender at which Alternate Base Rate Loans of such Lender are to
be made.

 

6

 

“Domestic Subsidiary” shall mean any Subsidiary that is organized and existing under
the laws of the United States or any state or commonwealth thereof or under the laws of the
District of Columbia.

“Environmental Laws” shall mean any and all applicable foreign, Federal, state, local
or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements
of any Governmental Authority or other Requirement of Law (including common law) regulating,
relating to or imposing liability or standards of conduct concerning protection of human health or
the environment, as are now or may at any time be in effect during the term of this Agreement.

“Equity Issuance” shall mean any issuance by any Credit Party or any Subsidiary to any
Person which is not a Credit Party of (a) shares of its Capital Stock, (b) any shares of its
Capital Stock pursuant to the exercise of options or warrants or (c) any shares of its Capital
Stock pursuant to the conversion of any debt securities to equity. The term “Equity Issuance”
shall not include any Asset Disposition or any Debt Issuance.

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

“Eurodollar Reserve Percentage” shall mean for any day, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for
such day as prescribed by the Federal Reserve Board (or any successor) for determining the maximum
reserve requirement (including without limitation any basic, supplemental or emergency reserves) in
respect of Eurocurrency liabilities, as defined in Regulation D of such Board as in effect from
time to time, or any similar category of liabilities for a member bank of the Federal Reserve
System in New York City.

“Event of Default” shall mean any of the events specified in Section 7.1;
provided, however, that any requirement for the giving of notice or the lapse of
time, or both, or any other condition, has been satisfied.

“Existing Letters of Credit” means the letters of credit listed on Schedule
1.1(c) attached hereto.

“Extension of Credit” shall mean, as to any Lender, the making of a Loan by such
Lender or the issuance of, or participation in, a Letter of Credit by such Lender.

“Federal Funds Effective Rate” means, for any day, an 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 on such day, as published for such day
(or, if such day is not a Business Day, for the immediately 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 Business Day,
the average of the quotations at approximately 10:00 a.m. (Houston, Texas time) on such day on such
transactions received by the Administrative Agent from three Federal funds brokers of recognized
standing selected by the Administrative Agent in its sole discretion.

“Foreign Subsidiary” shall mean any Subsidiary that is not a Domestic Subsidiary.

 

7

 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.

“Funded Debt” shall mean, with respect to any Person, without duplication (for
example, a Guaranty Obligation will not duplicate any Indebtedness already included in the
calculation of any financial covenant in this Agreement), (a) all Indebtedness of such Person other
than Indebtedness of the types referred to in clause (e), (f), (g),
(i) and (l) of the definition of “Indebtedness” set forth in this Section
1.1 (provided, however, that letters of credit issued in support of industrial revenue bond
financings shall be excluded from the calculation of Funded Debt hereunder), (b) all Funded Debt of
others of the type referred to in clause (a) above secured by (or for which the holder of
such Funded Debt has an existing right, contingent or otherwise, to be secured by) any Lien on, or
payable out of the proceeds of production from, Property owned or acquired by such Person, whether
or not the obligations secured thereby have been assumed, (c) all Guaranty Obligations of such
Person with respect to Funded Debt of the type referred to in clause (a) above of another
Person and (d) Funded Debt of the type referred to in clause (a) above of any partnership
or unincorporated joint venture in which such Person is legally obligated or has a reasonable
expectation of being liable with respect thereto.

“GAAP” shall mean generally accepted accounting principles in effect in the United
States of America applied on a consistent basis, subject, however, in the case of
determination of compliance with the financial covenants set out in Section 5.9 to the
provisions of Section 1.3.

“Government Acts” shall have the meaning set forth in Section 2.18.

“Government Obligations” shall have the meaning set forth in the definition of “Cash
Equivalents.”

“Governmental Authority” shall mean any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

“Guarantor” shall have the meaning set forth in the first paragraph of this Agreement.

“Guaranty” shall mean the guaranty of the Guarantors set forth in Article IX.

“Guaranty Obligations” shall mean, with respect to any Person, without duplication,
any obligations of such Person (other than endorsements in the ordinary course of business of
negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any
Indebtedness of any other Person in any manner, whether direct or indirect, and including without
limitation any obligation, whether or not contingent, (i) to purchase any such Indebtedness or any
property constituting security therefor, (ii) to advance or provide funds or other support for the
payment or purchase of any such Indebtedness or to maintain working capital, solvency or other
balance sheet condition of such other Person (including without limitation keep well agreements,
maintenance agreements, comfort letters or similar agreements or arrangements) for the benefit of
any holder of Indebtedness of such other Person, (iii) to lease or purchase Property, securities or
services primarily

 

8

 

for the purpose of assuring the holder of such Indebtedness, or (iv) to otherwise assure or
hold harmless the holder of such Indebtedness against loss in respect thereof. The amount of any
Guaranty Obligation hereunder shall (subject to any limitations set forth therein) be deemed to be
an amount equal to the outstanding principal amount (or maximum principal amount, if larger) of the
Indebtedness in respect of which such Guaranty Obligation is made.

“Hedging Agreements” shall mean, with respect to any Person, any agreement entered
into to protect such Person against fluctuations in interest rates, or currency or raw materials
values, including, without limitation, any interest rate swap, cap or collar agreement or similar
arrangement between such Person and one or more counterparties, any foreign currency exchange
agreement, currency protection agreements, commodity purchase or option agreements or other
interest or exchange rate or commodity price hedging agreements.

“Indebtedness” shall mean, with respect to any Person, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments, or upon which interest payments are customarily
made, (c) all obligations of such Person under conditional sale or other title retention agreements
relating to Property purchased by such Person (other than customary reservations or retentions of
title under agreements with suppliers entered into in the ordinary course of business), (d) all
obligations of such Person issued or assumed as the deferred purchase price of Property or services
purchased by such Person (other than trade debt and expenses incurred in the ordinary course of
business and due within six months of the incurrence thereof) which would appear as liabilities on
a balance sheet of such Person, (e) all obligations of such Person under take-or-pay or similar
arrangements or under commodities agreements, (f) all Indebtedness of others secured by (or for
which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien on, or payable out of the proceeds of production from, Property owned or acquired by
such Person, whether or not the obligations secured thereby have been assumed, (g) all Guaranty
Obligations of such Person with respect to Indebtedness of another Person, (h) the principal
portion of all obligations of such Person under Capital Leases, (i) all obligations of such Person
under Hedging Agreements, (j) the maximum amount of all standby letters of credit issued or
bankers’ acceptances facilities created for the account of such Person and, without duplication,
all drafts drawn thereunder (to the extent unreimbursed), (k) all preferred Capital Stock issued by
such Person and which by the terms thereof could be (at the request of the holders thereof or
otherwise) subject to mandatory sinking fund payments, redemption or other acceleration, (l) the
principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance
sheet loan or similar off-balance sheet financing product, and (m) the Indebtedness of any
partnership or unincorporated joint venture in which such Person is a general partner or a joint
venturer.

“Insolvency” shall mean, with respect to any Multiemployer Plan, the condition that
such Plan is insolvent within the meaning of such term as used in Section 4245 of ERISA.

“Insolvent” shall mean being in a condition of Insolvency.

“Intellectual Property” shall have the meaning set forth in the Security Agreement.

“Interest Coverage Ratio” means, with respect to the Borrower and its Subsidiaries on
a consolidated basis for the twelve month period ending on the last day of any fiscal quarter of
the

 

9

 

Borrower, the ratio of (a) Pro Forma Consolidated EBITDA minus Consolidated Capital
Expenditures minus Consolidated Cash Taxes minus dividends for such period to (b)
Consolidated Interest Expense.

“Interest Determination Date” shall have the meaning assigned thereto in the
definition of “Applicable Percentage”.

“Interest Payment Date” shall mean (a) as to any Alternate Base Rate Loan or Swingline
Loan, the third Business Day of each April, July, October and January and on the applicable
Maturity Date, (b) as to any LIBOR Rate Loan having an Interest Period of three months or less, the
last day of such Interest Period, and (c) as to any LIBOR Rate Loan having an Interest Period
longer than three months, each day which is three months after the first day of such Interest
Period and the last day of such Interest Period.

“Interest Period” shall mean, with respect to any LIBOR Rate Loan,

(i) initially, the period commencing on the Borrowing Date or conversion date, as the
case may be, with respect to such LIBOR Rate Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in the notice of borrowing or notice of conversion
given with respect thereto; and

(ii) thereafter, each period commencing on the last day of the immediately preceding
Interest Period applicable to such LIBOR Rate Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent
not less than three Business Days prior to the last day of the then current Interest Period
with respect thereto;

provided that the foregoing provisions are subject to the following:

(A) if any Interest Period pertaining to a LIBOR Rate Loan would otherwise end
on a day that is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless the result of such extension would be to carry
such Interest Period into another calendar month in which event such Interest Period
shall end on the immediately preceding Business Day;

(B) any Interest Period pertaining to a LIBOR Rate Loan that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall
end on the last Business Day of the relevant calendar month;

(C) if the Borrower shall fail to give notice as provided above, the Borrower
shall be deemed to have selected a one (1) month LIBOR Rate Loan to replace the
affected LIBOR Rate Loan;

(D) any Interest Period in respect of any Loan that would otherwise extend
beyond the applicable Maturity Date shall end on the Maturity Date; and

 

10

 

(E) no more than twelve (12) LIBOR Rate Loans may be in effect at any time.
For purposes hereof, LIBOR Rate Loans with different Interest Periods shall be
considered as separate LIBOR Rate Loans, even if they shall begin on the same date
and have the same duration, although borrowings, extensions and conversions may, in
accordance with the provisions hereof, be combined at the end of existing Interest
Periods to constitute a new LIBOR Rate Loan with a single Interest Period.

“Issuing Lender” shall mean JPM Chase.

“Issuing Lender Fees” shall have the meaning set forth in Section 2.4(c).

“Joinder Agreement” shall mean a Joinder Agreement substantially in the form of
Schedule 5.10, executed and delivered by an Additional Credit Party in accordance with the
provisions of Section 5.10.

“JPM Chase” shall mean JPMorgan Chase Bank, N.A., a national banking association.

“Lender” shall have the meaning set forth in the first paragraph of this Agreement.

“Letters of Credit” shall mean any letter of credit issued by the Issuing Lender
pursuant to the terms hereof, as such Letters of Credit may be amended, modified, extended, renewed
or replaced from time to time.

“Letter of Credit Fee” shall have the meaning set forth in Section 2.4(b).

“Leverage Ratio” shall mean, with respect to the Borrower and its Subsidiaries on a
consolidated basis for the twelve month period ending on the last day of any fiscal quarter, the
ratio of (a) Funded Debt of the Borrower and its Subsidiaries on a consolidated basis on the last
day of such period to (b) Pro Forma Consolidated EBITDA for such twelve month period.

“LIBOR” means, with respect to a LIBOR Rate Loan for the relevant Interest Period, the
applicable British Bankers’ Association LIBOR rate for deposits in U.S. dollars as reported by any
generally recognized financial information service as of 11:00 a.m. (London time) two Business Days
prior to the first day of such Interest Period, and having a maturity equal to such Interest
Period, provided that, if no such British Bankers’ Association LIBOR rate is available to the
Administrative Agent, the applicable LIBOR for the relevant Interest Period shall instead be the
rate determined by the Administrative Agent to be the rate at which JPM Chase or one of its
Affiliate banks offers to place deposits in U.S. dollars with first class banks in the interbank
market at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, in the approximate amount of JPM Chase’s relevant LIBOR Rate Loan and having a
maturity equal to such Interest Period.

“LIBOR Lending Office” shall mean, initially, the office of each Lender designated as
such Lender’s LIBOR Lending Office shown on Schedule 11.2; and thereafter, such other
office of such Lender as such Lender may from time to time specify to the Administrative Agent and
the Borrower as the office of such Lender at which the LIBOR Rate Loans of such Lender are to
be made.

 

11

 

“LIBOR Rate” means, with respect to a LIBOR Rate Loan for the relevant Interest
Period, a rate per annum (rounded upwards, if necessary, to the next higher 1/100th of 1%) equal
to the quotient of (a) the LIBOR applicable to such Interest Period, divided by (b) one minus the
Eurodollar Reserve Requirement (expressed as a decimal) applicable to such Interest Period.

“LIBOR Rate Loan” shall mean Loans the rate of interest applicable to which is based
on the LIBOR Rate.

“Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security interest or any
preference, priority or other security agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title retention agreement
and any Capital Lease having substantially the same economic effect as any of the foregoing).

“Loan” shall mean a Revolving Loan and/or a Swingline Loan, as appropriate.

“LOC Commitment” shall mean the commitment of the Issuing Lender to issue Letters of
Credit and with respect to each Lender, the commitment of such Lender to purchase participation
interests in the Letters of Credit up to such Lender’s LOC Committed Amount as specified in
Schedule 2.1(a), as such amount may be reduced from time to time in accordance with the
provisions hereof.

“LOC Commitment Percentage” shall mean, for each Lender, the percentage identified as
its LOC Commitment Percentage on Schedule 2.1(a), as such percentage may be modified in
connection with any assignment made in accordance with the provisions of Article X.

“LOC Committed Amount” shall mean, collectively, the aggregate amount of all of the
LOC Commitments of the Lenders to issue and participate in Letters of Credit as referenced in
Section 2.3 and, individually, the amount of each Lender’s LOC Commitment as specified in
Schedule 2.1(a).

“LOC Documents” shall mean, with respect to any Letter of Credit, such Letter of
Credit, any amendments thereto, any documents delivered in connection therewith, any application
therefor, and any agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing for (i) the rights
and obligations of the parties concerned or (ii) any collateral security for such obligations.

“LOC Obligations” shall mean, at any time, the sum of (i) the maximum amount which is,
or at any time thereafter may become, available to be drawn under Letters of Credit then
outstanding, assuming compliance with all requirements for drawings referred to in such Letters of
Credit plus (ii) the aggregate amount of all drawings under Letters of Credit honored by
the Issuing Lender but not theretofore reimbursed.

 

12

 

“Mandatory Borrowing” shall have the meaning set forth in Section 2.2(b)(ii)
or Section 2.3(e), as the context may require.

“Material Adverse Effect” shall mean a material adverse effect on (a) the business,
assets, liabilities (actual or contingent), operations, properties, condition (financial or
otherwise) or prospects of the Borrower or its Subsidiaries taken as a whole, (b) the ability of
the Borrower and the Guarantors taken as a whole to perform their obligations, when such
obligations are required to be performed, under this Agreement, any of the Notes or any other
Credit Document or (c) the validity or enforceability of this Agreement, any of the Notes or any of
the other Credit Documents or the rights or remedies of the Administrative Agent or the Lenders
hereunder or thereunder.

“Material Contract” shall mean any contract or other arrangement, whether written or
oral, to which the Borrower or any of its Subsidiaries is a party as to which the breach,
nonperformance, cancellation or failure to renew by any party thereto could reasonably be expected
to have a Material Adverse Effect.

“Materials of Environmental Concern” shall mean any gasoline or petroleum (including
crude oil or any fraction thereof) or petroleum products or any hazardous or toxic substances,
materials or wastes, defined or regulated as such in or under any Environmental Law, including,
without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

“Maturity Date” shall mean the Revolving Commitment Termination Date.

“Maximum Rate” means, with respect to the Lenders, the maximum nonusurious interest
rate, if any, that at any time or from time to time, may be contracted for, taken, reserved,
charged, or received on the Notes or on other Indebtedness, as the case may be, under the laws
which are presently in effect in the United States of America and the State of Texas applicable to
the Lenders and such indebtedness or, to the extent permitted by law, under such applicable laws of
the United States of America and the State of Texas which may hereafter be in effect and which
allow a higher maximum nonusurious interest rate than applicable laws now allow. To the extent
that Chapter 303 of the Texas Finance Code (the “Code”), is relevant to the Lenders for the
purposes of determining the Maximum Rate, the Lenders elect to determine such applicable legal rate
under the Code pursuant to the “weekly ceiling,” from time to time in effect, as referred to and
defined in Chapter 303 of the Code; subject, however, to the limitations on such applicable ceiling
referred to and defined in Chapter 303 of the Code, and further subject to any right the Lenders
may have subsequently, under applicable law, to change the method of determining the Maximum Rate.
If no Maximum Rate is established by applicable law, then the Maximum Rate shall be equal to
eighteen percent (18%).

“Moody’s” shall mean Moody’s Investors Service, Inc. and any successors thereto.

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

 

13

 

“Net Cash Proceeds” shall mean the aggregate cash proceeds received by any Credit
Party or any Subsidiary in respect of any Asset Disposition, Recovery Event or Debt Issuance,
net of (a) direct costs (including, without limitation, legal, accounting and investment
banking fees, and sales commissions), (b) taxes paid or payable as a result thereof, (c) in the
case of an Asset Disposition or Recovery Event, the amount of all payments required to be made by
the Borrower or any Subsidiary to repay Indebtedness (other than the Loans) as a result of such
Asset Disposition or Recovery Event, and (d) in the case of an Asset Disposition or Recovery Event,
the amount of any reserves established to fund contingent liabilities that are reasonably estimated
to be payable during the two years following such Asset Disposition or Recovery Event and that are
directly attributable to such Asset Disposition or Recovery Event; it being understood that “Net
Cash Proceeds” shall include, without limitation, (i) any cash received upon the sale or other
disposition of any non-cash consideration received by the Borrower or any Subsidiary in any Asset
Disposition, Recovery Event or Debt Issuance and (ii) an amount equal to any reserves previously
taken against contingent liabilities in connection with an Asset Disposition or Recovery Event
immediately upon those reserves being determined by the Borrower to be in excess of such contingent
liabilities.

“Note” or “Notes” shall mean the Revolving Notes and/or the Swingline Note,
collectively, separately or individually, as appropriate.

“Notice of Borrowing” shall mean the written notice of borrowing as referenced and
defined in Section 2.1(b)(i).

“Notice of Conversion” shall mean the written notice of extension or conversion as
referenced in Section 2.9.

“Obligations” shall mean, collectively, Loans and LOC Obligations.

“Participant” shall have the meaning set forth in Section 10.2.

“Participation Interest” shall mean the purchase by a Lender of a participation
interest in Swingline Loans as provided in Section 2.2(b)(ii) or in Letters of Credit as
provided in Section 2.3.

“PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA.

“Permitted Acquisition” shall mean an acquisition permitted under Section
6.6(c) hereof.

“Permitted Investments” shall mean:

(i) cash and Cash Equivalents;

(ii) receivables owing to the Borrower or any of its Subsidiaries or any receivables
and advances to suppliers, in each case if created, acquired or made in the ordinary course
of business and payable or dischargeable in accordance with customary trade terms;

(iii) investments in and loans to any Credit Parties;

 

14

 

(iv) loans and advances to officers, directors, employees and Affiliates in an
aggregate amount not to exceed $500,000 at any time outstanding;

(v) investments (including debt obligations) received in connection with the bankruptcy
or reorganization of suppliers and customers and in settlement of delinquent obligations of,
and other disputes with, customers and suppliers arising in the ordinary course of business;

(vi) investments, acquisitions or transactions permitted under Section 6.6(b)
and (c);

(vii) investments in Foreign Subsidiaries which do not exceed, as of any date, in the
aggregate from and after the date hereof, the greater of (x) $50,000,000 or (y) fifty
percent (50%) of Pro Forma Consolidated EBITDA for the twelve month period ending on the
last day of the most recently ended fiscal quarter; and

(viii) additional loan advances and/or investments of a nature not contemplated by the
foregoing clauses hereof, provided that such loans, advances and/or investments made
pursuant to this clause (viii) shall not exceed an aggregate amount of $10,000,000
at any time.

As used herein, “investment” shall mean all investments, in cash or by delivery of property
made, directly or indirectly in, to or from any Person, whether by acquisition of shares of Capital
Stock, property, assets, indebtedness or other obligations or securities or by loan advance,
capital contribution or otherwise.

“Permitted Liens” shall mean:

(i) Liens created by or otherwise existing, under or in connection with this Agreement
or the other Credit Documents in favor of the Lenders;

(ii) Liens in favor of a Lender hereunder in connection with Hedging Agreements, but
only (A) to the extent such Liens secure obligations under Hedging Agreements with any
Lender, or any Affiliate of a Lender, (B) to the extent such Liens are on the same
collateral as to which the Administrative Agent on behalf of the Lenders also has a Lien and
(C) if such provider and the Lenders shall share pari passu in the
collateral subject to such Liens;

(iii) purchase money Liens securing purchase money Indebtedness to the extent permitted
under Sections 6.1(c) (to the extent that the applicable purchase money Indebtedness
is funded after the date of acquisition of the applicable asset or the date of completion of
construction, as the case may be, Agent shall, upon request by Borrower, execute lien
subordination agreements whereby the Liens under the Credit Documents are subordinated to
the Liens securing the applicable purchase money Indebtedness and otherwise in form and
substance reasonably satisfactory to the Administrative Agent);

 

15

 

(iv) Liens for taxes, assessments, charges or other governmental levies not yet due or
as to which the period of grace (not to exceed 60 days), if any, related thereto has not
expired or which are being contested in good faith by appropriate proceedings;
provided that adequate reserves with respect thereto are maintained on the books of
the Borrower or its Subsidiaries, as the case may be, in conformity with GAAP (or, in the
case of Subsidiaries with significant operations outside of the United States of America,
generally accepted accounting principles in effect from time to time in their respective
jurisdictions of incorporation);

(v) statutory landlord Liens and carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of business which are not
overdue for a period of more than 60 days or which are being contested in good faith by
appropriate proceedings;

(vi) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation and deposits securing liability to insurance
carriers under insurance or self-insurance arrangements;

(vii) deposits to secure the performance of bids, trade contracts, (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business;

(viii) Liens existing on the Closing Date and set forth on Schedule 1.1(b);

(ix) Liens arising in connection with Capital Leases permitted under Section
6.1(c) incurred to provide all or a portion of the purchase price (or finance such
purchase price within ninety (90) days of acquisition) or cost of improvement or
construction of an asset so long as the Indebtedness under such Capital Lease when incurred
shall not exceed the purchase price or cost of construction of the applicable asset; and

(x) any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in the foregoing clauses;
provided that such extension, renewal or replacement Lien shall be limited to all or
a part of the property which secured the Lien so extended, renewed or replaced (plus
improvements on such property). In the case of purchase money indebtedness or Capital
Leases, financing shall be deemed to be given in renewal or replacement of the applicable
purchase money indebtedness or Capital Leases if it is funded within 180 days after the
payment of such purchase money indebtedness or Capital Leases and is designated by the
Borrower as having been given in renewal or replacement of the applicable purchase money
indebtedness or Capital Leases (and in such event, Agent shall, upon request by Borrower,
execute lien subordination agreements whereby the Liens under the Credit Documents are
subordinated to the Liens securing the applicable purchase money indebtedness or Capital
Leases, as the case may, and otherwise in form and substance reasonably satisfactory to the
Administrative Agent).

 

16

 

“Person” shall mean an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

“Plan” shall mean, at any particular time, any employee benefit plan which is covered
by Title IV of ERISA and in respect of which the Borrower or a Commonly Controlled Entity is (or,
if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an
“employer” as defined in Section 3(5) of ERISA.

“Pledge Agreement” shall mean the Pledge Agreement dated December 11, 2000 given by
the Credit Parties to the Administrative Agent (or its predecessor as administrative agent), as the
same may have been or may hereafter from time to time be amended, supplemented or otherwise
modified in accordance with the terms hereof and thereof.

“Prime Rate” means a rate per annum equal to the prime rate of interest announced from
time to time by JPM Chase or its parent (which is not necessarily the lowest rate charged to any
customer), changing when and as said prime rate changes.

“Pro Forma Basis” shall mean, with respect to any Permitted Acquisition or other
transaction permitted hereunder, that such Permitted Acquisition or other transaction shall be
deemed to have occurred as of the first day of the four fiscal-quarter period ending as of the most
recent fiscal quarter end for which financial statements have been delivered pursuant to
Sections 5.1(a) or 5.1(b), as applicable.

“Pro Forma Compliance Certificate” shall mean a certificate of a Responsible Officer
delivered to the Administrative Agent in connection with a Permitted Acquisition and containing
reasonably detailed calculations, upon giving effect to the applicable transaction on a Pro Forma
Basis, of the financial covenants set forth in Section 5.9 as of the closing date for such
Permitted Acquisition utilizing the financial statements most recently delivered pursuant to
Sections 5.1(a) or 5.1(b), as applicable.

“Pro Forma Consolidated EBITDA” shall mean, for any period, as to the Borrower and its
consolidated Subsidiaries, Consolidated EBITDA of the Borrower and its consolidated Subsidiaries
plus (or minus), without duplication, the allocable share of Consolidated EBITDA, for such period
of any Person acquired or divested during such period on a Pro Forma Basis (calculated as if such
Person had been a Subsidiary for all of such period).

“Properties” shall have the meaning set forth in Section 3.10(a).

“Property” shall mean any interest in any kind of property or asset, whether real,
personal or mixed, or tangible or intangible.

“Recovery Event” shall mean the receipt by the Borrower or any of its Subsidiaries of
any cash insurance proceeds or condemnation award payable by reason of theft, loss, physical
destruction or damage, taking or similar event with respect to any of their respective property or
assets.

 

17

 

“Register” shall have the meaning set forth in Section 10.3.

“Remote Sales Office” shall mean any office or other location of the Borrower or any
of its Subsidiaries (i) that is not owned by the Borrower or any of its Subsidiaries, (ii) at which
no manufacturing assets are maintained, (iii) that has square footage of less than 800 square feet
and (iv) at which assets with a book value or fair market value of less than $50,000 in the
aggregate for all such assets at such location are maintained.

“Reorganization” shall mean, with respect to any Multiemployer Plan, the condition
that such Plan is in reorganization within the meaning of such term as used in Section 4241 of
ERISA.

“Reportable Event” shall mean any of the events set forth in Section 4043(c) of ERISA,
other than those events as to which the thirty-day notice period is waived under PBGC Reg. §4043.

“Required Lenders” shall mean Lenders holding in the aggregate more than 50% of all
Revolving Loans and LOC Obligations then outstanding at such time plus the aggregate unused
Revolving Commitments at such time (treating for purposes hereof in the case of Swingline Loans and
LOC Obligations, in the case of the Swingline Lender and the Issuing Lender, only the portion of
the Swingline Loans and the LOC Obligations of the Swingline Lender and the Issuing Lender,
respectively, which is not subject to the Participation Interests of the other Lenders and, in the
case of the Lenders other than the Swingline Lender and the Issuing Lender, the Participation
Interests of such Lenders in Swingline Loans and LOC Obligations hereunder as direct Obligations);
provided, however, that if any Lender shall be a Defaulting Lender at such time,
then there shall be excluded from the determination of Required Lenders, Obligations (including
Participation Interests) owing to such Defaulting Lender and such Defaulting Lender’s Commitments,
or after termination of the Commitments, the principal balance of the Obligations owing to such
Defaulting Lender.

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

“Responsible Officer” shall mean, as to (a) the Borrower, the President, the Chief
Executive Officer, the Chief Financial Officer, the Treasurer or Assistant Treasurer or (b) any
other Credit Party, any duly authorized officer thereof.

“Restricted Payment” shall mean (a) any dividend or other distribution, direct or
indirect, on account of any shares of any class of Capital Stock of the Borrower or any of its
Subsidiaries, now or hereafter outstanding, (b) any redemption, retirement, sinking fund or similar
payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of
Capital Stock of the Borrower or any of its Subsidiaries, now or hereafter outstanding or (c) any
payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other
rights to acquire shares of any class of Capital Stock of the Borrower or any of its
Subsidiaries, now or hereafter outstanding.

 

18

 

“Revolving Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Revolving Loans in an aggregate principal amount at any time outstanding up to such
Lender’s Revolving Committed Amount.

“Revolving Commitment Percentage” shall mean, for each Lender, the percentage
identified as its Revolving Commitment Percentage on Schedule 2.1(a), as such percentage
may be modified in connection with any assignment made in accordance with the provisions of
Article X.

“Revolving Committed Amount” shall mean, collectively, the aggregate amount of all
Revolving Commitments as referenced in Section 2.1(a), as such amount may be reduced or
increased from time to time in accordance with the provisions hereof.

“Revolving Commitment Termination Date” shall mean October 6, 2011.

“Revolving Loans” shall have the meaning set forth in Section 2.1.

“Revolving Note” or “Revolving Notes” shall mean the promissory notes of the
Borrower in favor of each of the Lenders evidencing the Revolving Loans provided pursuant to
Section 2.1(e), individually or collectively, as appropriate, as such promissory notes may
be amended, modified, supplemented, extended, renewed or replaced from time to time.

“S&P” shall mean Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc. and
any successors thereto.

“Security Agreement” shall mean the Security Agreement dated December 11, 2000 given
by the Borrower and the other Credit Parties to the Administrative Agent (or its predecessor as
administrative agent), as the same may have been or may hereafter amended, modified or supplemented
from time to time in accordance with its terms.

“Security Documents” shall mean the Security Agreement, the Pledge Agreement and such
other documents executed and delivered in connection with the attachment and perfection of the
Administrative Agent’s security interests and liens arising thereunder, including, without
limitation, UCC financing statements and patent and trademark filings.

“Single Employer Plan” shall mean any Plan which is not a Multiemployer Plan.

“Specified Sales” shall mean (a) the sale, transfer, lease or other disposition of
inventory, and materials in the ordinary course of business and (b) the sale, transfer or other
disposition of Permitted Investments described in clauses (i) or (v) of the
definition thereof.

“Stock Repurchases” shall mean the purchase by the Borrower of its Capital Stock as
permitted pursuant to Section 6.12 hereof.

 

19

 

“Subordinated Indebtedness” shall mean any and all Indebtedness of the Borrower or any
of its Subsidiaries which is subordinated in right of payment to the prior payment in full of the
Credit Party Obligations.

“Subsidiary” shall mean, as to any Person, a corporation, partnership, limited
liability company or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the time owned, or the management
of which is otherwise controlled, directly or indirectly through one or more intermediaries, or
both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to
“Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

“Swingline Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding up to the Swingline
Committed Amount, and the commitment of the Lenders to purchase participation interests in the
Swingline Loans as provided in Section 2.2(b)(ii), as such amounts may be reduced from time
to time in accordance with the provisions hereof.

“Swingline Committed Amount” shall mean the amount of the Swingline Lender’s Swingline
Commitment as specified in Section 2.2(a).

“Swingline Lender” shall mean JPM Chase, in its capacity as such.

“Swingline Loan” or “Swingline Loans” shall have the meaning set forth in
Section 2.2(a).

“Swingline Note” shall mean the promissory note of the Borrower in favor of the
Swingline Lender evidencing the Swingline Loans provided pursuant to Section 2.2(d), as
such promissory note may be amended, modified, supplemented, extended, renewed or replaced from
time to time.

“Taxes” shall have the meaning set forth in Section 2.17.

“Tranche” shall mean the collective reference to LIBOR Rate Loans whose Interest
Periods begin and end on the same day. A Tranche may sometimes be referred to as a “LIBOR
Tranche”.

“Transfer Effective Date” shall have the meaning set forth in each Commitment Transfer
Supplement.

“2.17 Certificate” shall have the meaning set forth in Section 2.17.

“Type” shall mean, as to any Loan, its nature as an Alternate Base Rate Loan or LIBOR
Rate Loan, as the case may be.

 

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“Voting Stock” shall mean, with respect to any Person, Capital Stock issued by such
Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for
the election of directors (or persons performing similar functions) of such Person, even though the
right so to vote has been suspended by the happening of such a contingency.

Section 1.2 Other Definitional Provisions.

(a) Unless otherwise specified therein, all terms defined in this Agreement shall have
the defined meanings when used in the Notes or other Credit Documents or any certificate or
other document made or delivered pursuant hereto.

(b) The words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section, subsection, Schedule and Exhibit references are to
this Agreement unless otherwise specified.

(c) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

Section 1.3 Accounting Terms.

Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements required to be
delivered hereunder shall be prepared in accordance with GAAP applied on a basis consistent with
the most recent audited consolidated financial statements of the Borrower delivered to the Lenders;
provided that, if the Borrower notifies the Administrative Agent that it wishes to amend
any covenant in Section 5.9 to eliminate the effect of any change in GAAP on the operation
of such covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders
wish to amend Section 5.9 for such purpose), then the Borrower’s compliance with such
covenant shall be determined on the basis of GAAP applied on a basis consistent with the most
recent audited consolidated statements of the Borrower delivered to the Lenders in effect
immediately before the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required
Lenders.

The Borrower shall deliver to the Administrative Agent and each Lender at the same time as the
delivery of any annual or quarterly financial statements given in accordance with the provisions of
Section 5.1, (i) a description in reasonable detail of any material change in the
application of accounting principles employed in the preparation of such financial statements from
those applied in the most recently preceding quarterly or annual financial statements as to which
no objection shall have been made in accordance with the provisions above and (ii) a reasonable
estimate of the effect on the financial statements on account of such changes in application.

Notwithstanding the above, the parties hereto acknowledge and agree that, for purposes of
calculations that are designated herein to be made on a “Pro Forma Basis”, (i) any Indebtedness of
such Person that is acquired during such period which is retired in

 

21

 

connection
with a Permitted Acquisition shall be excluded from such calculations and deemed to have been
retired as of the first day of such applicable period and (ii) income statement items and other
balance sheet items (whether positive or negative) attributable to the such Person acquired in such
transaction shall be included in such calculations to the extent relating to the period for which
the Pro Forma Basis calculations are being made, subject to adjustments mutually acceptable to the
Administrative Agent and the Borrower.

ARTICLE II

THE LOANS; AMOUNT AND TERMS

Section 2.1 Revolving Loans.

(a) Revolving Commitment. During the Commitment Period, subject to the terms
and conditions hereof, each Lender severally agrees to make revolving credit loans
(“Revolving Loans”) to the Borrower from time to time for the purposes hereinafter
set forth; provided, however, that (i) with regard to each Lender
individually, the sum of such Lender’s share of outstanding Revolving Loans plus
such Lender’s Revolving Commitment Percentage of Swingline Loans plus such Lender’s
LOC Commitment Percentage of LOC Obligations shall not exceed such Lender’s Revolving
Commitment Percentage of the aggregate Revolving Committed Amount, and (ii) with regard to
the Lenders collectively, the sum of the aggregate amount of outstanding Revolving Loans
plus Swingline Loans plus LOC Obligations shall not exceed the aggregate
Revolving Committed Amount. For purposes hereof, the aggregate amount available hereunder
shall be ONE HUNDRED FIFTY-FIVE MILLION DOLLARS ($155,000,000) (as such aggregate maximum
amount may be reduced or increased from time to time as provided in Section 2.5, the
“Revolving Committed Amount”). Revolving Loans may consist of Alternate Base Rate
Loans or LIBOR Rate Loans, or a combination thereof, as the Borrower may request, and may be
repaid and reborrowed in accordance with the provisions hereof. LIBOR Rate Loans shall be
made by each Lender at its LIBOR Lending Office and Alternate Base Rate Loans at its
Domestic Lending Office.

(b) Revolving Loan Borrowings.

(i) Notice of Borrowing. The Borrower may request a Revolving Loan
borrowing by written notice (or telephone notice promptly confirmed in writing which
confirmation may be by fax) to the Administrative Agent not later than 1:00 p.m.
(Houston, Texas time) on the Business Day of the requested borrowing in the case of
Alternate Base Rate Loans, and on the third Business Day prior to the date of the
requested borrowing in the case of LIBOR Rate Loans. Each such request for
borrowing shall be irrevocable and shall specify (A) that a Revolving Loan is
requested, (B) the date of the requested borrowing (which shall be a Business Day),
(C) the aggregate principal amount to be borrowed and (D) whether the borrowing
shall be comprised of Alternate Base Rate Loans, LIBOR Rate Loans or a combination
thereof, and if LIBOR Rate Loans are requested, the Interest Period(s) therefor. A
form of Notice of Borrowing (a “Notice of Borrowing”) is attached as
Schedule 2.1(b)(i). If the

 

22

 

Borrower shall fail to specify in any such Notice of Borrowing (I) an
applicable Interest Period in the case of a LIBOR Rate Loan, then such notice shall
be deemed to be a request for an Interest Period of one month, or (II) the type of
Revolving Loan requested, then such notice shall be deemed to be a request for a one
(1) month LIBOR Rate Loan hereunder. The Administrative Agent shall give notice to
each Lender promptly upon receipt of each Notice of Borrowing, the contents thereof
and each such Lender’s share thereof.

(ii) Minimum Amounts. Each Revolving Loan borrowing shall be in a
minimum aggregate amount of (A) for Revolving Loans made as LIBOR Rate Loans,
$1,000,000 and integral multiples of $100,000 in excess thereof or (B) for Revolving
Loans made as Alternate Base Rate Loans, $1,000,000 and integral multiples of
$100,000 in excess thereof (or the remaining amount of the Revolving Committed
Amount, if less).

(iii) Advances. Each Lender will make its Revolving Commitment
Percentage of each Revolving Loan borrowing available to the Administrative Agent
for the account of the Borrower at the office of the Administrative Agent specified
in Schedule 11.2, or at such other office as the Administrative Agent may
designate in writing, by 2:00 p.m. (Houston, Texas time) on the date specified in
the applicable Notice of Borrowing in Dollars and in funds immediately available to
the Administrative Agent. Such borrowing will then be made available to the
Borrower by the Administrative Agent by crediting the account of the Borrower on the
books of such office with the aggregate of the amounts made available to the
Administrative Agent by the Lenders and in like funds as received by the
Administrative Agent.

(c) Repayment. The principal amount of all Revolving Loans shall be due and
payable in full on the Maturity Date.

(d) Interest. Subject to the provisions of Section 2.8, Revolving
Loans shall bear interest as follows:

(i) Alternate Base Rate Loans. During such periods as Revolving Loans
shall be comprised of Alternate Base Rate Loans, each such Alternate Base Rate Loan
shall bear interest at a per annum rate equal to the sum of the Alternate Base Rate
plus the Applicable Percentage; and

(ii) LIBOR Rate Loans. During such periods as Revolving Loans shall be
comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall bear interest at a
per annum rate equal to the sum of the LIBOR Rate plus the Applicable
Percentage.

Interest on Revolving Loans shall be payable in arrears on each Interest Payment Date.

 

23

 

(e) Revolving Notes. Each Lender’s Revolving Commitment Percentage of the
Revolving Loans shall be evidenced by a duly executed promissory note of the Borrower to
such Lender in substantially the form of Schedule 2.1(e).

Section 2.2 Swingline Loan Subfacility.

(a) Swingline Commitment. During the Commitment Period, subject to the terms
and conditions hereof, the Swingline Lender, in its individual capacity, agrees to make
certain revolving credit loans to the Borrower (each a “Swingline Loan” and,
collectively, the “Swingline Loans”) for the purposes hereinafter set forth;
provided, however, (i) the aggregate amount of Swingline Loans outstanding
at any time shall not exceed FIVE MILLION DOLLARS ($5,000,000) (the “Swingline Committed
Amount”), and (ii) the sum of the aggregate amount of outstanding Revolving Loans
plus Swingline Loans plus LOC Obligations shall not exceed the aggregate
Revolving Committed Amount; provided further, however, that the
Swingline Lender shall not make any Swingline Loan during the existence of an Event of
Default of which the Swingline Lender has received written notice from any Lender (which
notice shall include a request that Swingline Lender refrain from making further Swingline
Loans) prior to the funding of such Swingline Loan. Swingline Loans hereunder may be repaid
and reborrowed in accordance with the provisions hereof.

(b) Swingline Loan Borrowings.

(i) Notice of Borrowing and Disbursement. The Swingline Lender will
make Swingline Loans available to the Borrower on any Business Day upon request made
by the Borrower not later than 1:00 p.m. (Houston, Texas time) on such Business Day.
A notice of request for Swingline Loan borrowing shall be made in the form of
Schedule 2.1(b)(i) with appropriate modifications. Swingline Loan
borrowings hereunder shall be made in minimum amounts of $100,000 and in integral
amounts of $50,000 in excess thereof.

(ii) Repayment of Swingline Loans. Each Swingline Loan borrowing shall
be due and payable on the Maturity Date. The Swingline Lender may, at any time, in
its sole discretion, by written notice to the Borrower and the Administrative Agent,
demand repayment of its Swingline Loans by way of a Revolving Loan borrowing, in
which case the Borrower shall be deemed to have requested a Revolving Loan borrowing
comprised entirely of Alternate Base Rate Loans in the amount of such Swingline
Loans; provided, however, that, in the following circumstances, any
such demand shall also be deemed to have been given one Business Day prior to each
of (A) the Maturity Date, (B) the occurrence of any Event of Default described in
Section 7.1(e), (C) upon acceleration of the Credit Party Obligations
hereunder, whether on account of an Event of Default described in Section
7.1(e) or any other Event of Default, and (D) the exercise of remedies in
accordance with the provisions of Section 7.2 hereof (each such Revolving
Loan borrowing made on account of any such deemed request therefor as provided
herein being hereinafter referred to as a “Mandatory Borrowing”). Each
Lender hereby irrevocably agrees to make such

 

24

 

Revolving Loans promptly upon any such request or deemed request on account of
each Mandatory Borrowing in the amount and in the manner specified in the preceding
sentence and on the same such date notwithstanding (I) the amount of
Mandatory Borrowing may not comply with the minimum amount for borrowings of
Revolving Loans otherwise required hereunder, (II) whether any conditions specified
in Section 4.2 are then satisfied, (III) whether a Default or an Event of
Default then exists, (IV) failure of any such request or deemed request for
Revolving Loans to be made by the time otherwise required in Section
2.1(b)(i), (V) the date of such Mandatory Borrowing, or (VI) any reduction in
the Revolving Committed Amount or termination of the Revolving Commitments
immediately prior to such Mandatory Borrowing or contemporaneously therewith. In
the event that any Mandatory Borrowing cannot for any reason be made on the date
otherwise required above (including, without limitation, as a result of the
commencement of a proceeding under the Bankruptcy Code with respect to the
Borrower), then each Lender hereby agrees that it shall forthwith purchase (as of
the date the Mandatory Borrowing would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and prior to such
purchase) from the Swingline Lender such participations in the outstanding Swingline
Loans as shall be necessary to cause each such Lender to share in such Swingline
Loans ratably based upon its respective Revolving Commitment Percentage (determined
before giving effect to any termination of the Commitments pursuant to Section
7.2), provided that (x) all interest payable on the Swingline Loans
shall be for the account of the Swingline Lender until the date as of which the
respective participation is purchased, and (y) at the time any purchase of
participations pursuant to this sentence is actually made, the purchasing Lender
shall be required to pay to the Swingline Lender interest on the principal amount of
such participation purchased for each day from and including the day upon which the
Mandatory Borrowing would otherwise have occurred to but excluding the date of
payment for such participation, at the rate equal to, if paid within two (2)
Business Days of the date of the Mandatory Borrowing, the Federal Funds Effective
Rate, and thereafter at a rate equal to the Alternate Base Rate.

(c) Interest on Swingline Loans. Subject to the provisions of Section
2.8, Swingline Loans shall bear interest at a per annum rate equal to the Alternate Base
Rate plus the Applicable Percentage for Revolving Loans that are Alternate Base Rate
Loans. Interest on Swingline Loans shall be payable in arrears on each Interest Payment
Date.

(d) Swingline Note. The Swingline Loans shall be evidenced by a duly executed
promissory note of the Borrower to the Swingline Lender in the original amount of the
Swingline Committed Amount and substantially in the form of Schedule 2.2(d).

Section 2.3 Letter of Credit Subfacility.

(a) Issuance. Subject to the terms and conditions hereof and of the LOC
Documents, if any, and any other terms and conditions which the Issuing Lender may
reasonably require consistent with customary practice at such time, during the

 

25

 

Commitment Period the Issuing Lender shall issue, and the Lenders shall participate in,
Letters of Credit for the account of the Borrower from time to time upon request in a form
acceptable to the Issuing Lender; provided, however, that (i) the aggregate
amount of LOC Obligations shall not at any time exceed TWENTY MILLION DOLLARS ($20,000,000)
(the “LOC Committed Amount”), (ii) the sum of the aggregate amount of Revolving
Loans plus Swingline Loans plus LOC Obligations shall not at any time exceed
the aggregate Revolving Committed Amount, (iii) all Letters of Credit shall be denominated
in U.S. Dollars and (iv) Letters of Credit shall be issued for the purpose of supporting
tax-advantaged variable rate demand note financing and for other lawful corporate purposes
and may be issued as standby letters of credit, including in connection with workers’
compensation and other insurance programs, and trade letters of credit. Except as otherwise
expressly agreed upon by all the Lenders, no Letter of Credit shall have an original expiry
date more than twelve (12) months from the date of issuance; provided,
however, so long as no Default or Event of Default has occurred and is continuing
and subject to the other terms and conditions to the issuance of Letters of Credit
hereunder, the expiry dates of Letters of Credit may be extended annually or periodically
from time to time on the request of the Borrower or by operation of the terms of the
applicable Letter of Credit to a date not more than twelve (12) months from the date of
extension; provided, further, that no Letter of Credit, as originally issued
or as extended, shall have an expiry date extending beyond the Maturity Date. Each Letter
of Credit shall comply with the related LOC Documents. The issuance and expiry date of each
Letter of Credit shall be a Business Day. Any Letters of Credit issued hereunder shall be
in a minimum original face amount of $10,000 or such other amount as agreed by the
Administrative Agent and the Borrower. JPM Chase shall be the Issuing Lender on all Letters
of Credit issued after the Closing Date.

(b) Notice and Reports. The request for the issuance of a Letter of Credit
shall be submitted to the Issuing Lender at least three (3) Business Days prior to the
requested date of issuance. The Issuing Lender will promptly upon request provide to the
Administrative Agent for dissemination to the Lenders a detailed report specifying the
Letters of Credit which are then issued and outstanding and any activity with respect
thereto which may have occurred since the date of any prior report, and including therein,
among other things, the account party, the beneficiary, the face amount, expiry date as well
as any payments or expirations which may have occurred. The Issuing Lender will further
provide to the Administrative Agent promptly upon request copies of the Letters of Credit.
The Issuing Lender will provide to the Administrative Agent promptly upon request a summary
report of the nature and extent of LOC Obligations then outstanding.

(c) Participations. Each Lender upon issuance of a Letter of Credit, shall be
deemed to have purchased without recourse a risk participation from the Issuing Lender in
such Letter of Credit and the obligations arising thereunder and any collateral relating
thereto, in each case in an amount equal to its LOC Commitment Percentage of the obligations
under such Letter of Credit and shall absolutely, unconditionally and irrevocably assume, as
primary obligor and not as surety, and be obligated to pay to the Issuing Lender therefor
and discharge when due, its LOC Commitment Percentage of the obligations arising under such
Letter of Credit. Without limiting the scope and nature of each Lender’s participation in
any Letter of Credit, to the extent that the Issuing

 

26

 

Lender has not been reimbursed as required hereunder or under any LOC Document, each such
Lender shall pay to the Issuing Lender its LOC Commitment Percentage of such unreimbursed
drawing in same day funds on the day of notification by the Issuing Lender of an
unreimbursed drawing pursuant to the provisions of subsection (d) hereof. The
obligation of each Lender to so reimburse the Issuing Lender shall be absolute and
unconditional and shall not be affected by the occurrence of a Default, an Event of Default
or any other occurrence or event. Any such reimbursement shall not relieve or otherwise
impair the obligation of the Borrower to reimburse the Issuing Lender under any Letter of
Credit, together with interest as hereinafter provided.

(d) Reimbursement. In the event of any drawing under any Letter of Credit, the
Issuing Lender will promptly notify the Borrower and the Administrative Agent. The Borrower
shall reimburse the Issuing Lender on the day of drawing under any Letter of Credit (with
the proceeds of a Swingline Loan or a Revolving Loan obtained hereunder or otherwise) in
same day funds as provided herein or in the LOC Documents. If the Borrower shall fail to
reimburse the Issuing Lender as provided herein, the unreimbursed amount of such drawing
shall bear interest at a rate equal to the Default Rate. Unless the Borrower shall
immediately notify the Issuing Lender and the Administrative Agent of its intent to
otherwise reimburse the Issuing Lender, the Borrower shall be deemed to have requested a
Revolving Loan in the amount of the drawing as provided in subsection (e) hereof,
the proceeds of which will be used to satisfy the reimbursement obligations. Absent the
gross negligence or willful misconduct of any such Person (IT BEING THE INTENTION OF THIS
PROVISION THAT SUCH REIMBURSEMENT OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED
IN WHOLE OR IN PART BY THE ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING REIMBURSED), the
Borrower’s reimbursement obligations hereunder shall be absolute and unconditional under all
circumstances irrespective of any rights of set-off, counterclaim or defense to payment the
Borrower may claim or have against the Issuing Lender, the Administrative Agent, the
Lenders, the beneficiary of the Letter of Credit drawn upon or any other Person, including
without limitation any defense based on any failure of the Borrower to receive consideration
or the legality, validity, regularity or unenforceability of the Letter of Credit. The
Issuing Lender will promptly notify the other Lenders of the amount of any unreimbursed
drawing and each Lender shall promptly pay to the Administrative Agent for the account of
the Issuing Lender in Dollars and in immediately available funds, the amount of such
Lender’s LOC Commitment Percentage of such unreimbursed drawing. Such payment shall be made
on the day such notice is received by such Lender from the Issuing Lender if such notice is
received at or before 3:00 p.m. (Houston, Texas time), otherwise such payment shall be made
at or before 1:00 p.m. (Houston, Texas time) on the Business Day next succeeding the day
such notice is received. If such Lender does not pay such amount to the Issuing Lender in
full upon such request, such Lender shall, on demand, pay to the Administrative Agent for
the account of the Issuing Lender interest on the unpaid amount during the period from the
date of such drawing until such Lender pays such amount to the Issuing Lender in full at a
rate per annum equal to, if paid within two (2) Business Days of the date of drawing, the
Federal Funds Effective Rate and thereafter at a rate equal to the Alternate Base Rate.
Each Lender’s obligation to make such payment to the Issuing Lender, and the right of the
Issuing Lender to receive the

 

27

 

same, shall be absolute and unconditional, shall not be affected by any circumstance
whatsoever and without regard to the termination of this Agreement or the Commitments
hereunder, the existence of a Default or Event of Default or the acceleration of the Credit
Party Obligations hereunder and shall be made without any offset, abatement, withholding or
reduction whatsoever.

(e) Repayment with Revolving Loans. On any day on which the Borrower shall
have requested, or been deemed to have requested, a Revolving Loan to reimburse a drawing
under a Letter of Credit, the Administrative Agent shall give notice to the Lenders that a
Revolving Loan has been requested or deemed requested in connection with a drawing under a
Letter of Credit, in which case a Revolving Loan borrowing comprised entirely of Alternate
Base Rate Loans (each such borrowing, a “Mandatory Borrowing”) shall be immediately
made (without giving effect to any termination of the Commitments pursuant to Section
7.2) pro rata based on each Lender’s respective Revolving Commitment
Percentage (determined before giving effect to any termination of the Commitments pursuant
to Section 7.2) and in the case of both clauses (i) and (ii) the
proceeds thereof shall be paid directly to the Issuing Lender for application to the
respective LOC Obligations. Each Lender hereby irrevocably agrees to make such Revolving
Loans immediately upon any such request or deemed request on account of each Mandatory
Borrowing in the amount and in the manner specified in the preceding sentence and on the
same such date notwithstanding (i) the amount of Mandatory Borrowing may not comply
with the minimum amount for borrowings of Revolving Loans otherwise required hereunder, (ii)
whether any conditions specified in Section 4.2 are then satisfied, (iii) whether a
Default or an Event of Default then exists, (iv) failure for any such request or deemed
request for Revolving Loan to be made by the time otherwise required in Section
2.1(b), (v) the date of such Mandatory Borrowing, or (vi) any reduction in the Revolving
Committed Amount after any such Letter of Credit may have been drawn upon. In the event
that any Mandatory Borrowing cannot for any reason be made on the date otherwise required
above (including, without limitation, as a result of the commencement of a proceeding under
the Bankruptcy Code with respect to the Borrower), then each such Lender hereby agrees that
it shall forthwith fund (as of the date the Mandatory Borrowing would otherwise have
occurred, but adjusted for any payments received from the Borrower on or after such date and
prior to such purchase) its Participation Interests in the outstanding LOC Obligations;
provided, further, that in the event any Lender shall fail to fund its
Participation Interest on the day the Mandatory Borrowing would otherwise have occurred,
then the amount of such Lender’s unfunded Participation Interest therein shall bear interest
payable to the Issuing Lender upon demand, at the rate equal to, if paid within two (2)
Business Days of such date, the Federal Funds Effective Rate, and thereafter at a rate equal
to the Alternate Base Rate.

(f) Modification, Extension. The issuance of any renewal or extension to any
Letter of Credit or any supplement, modification or amendment in the nature of a renewal or
extension thereof, shall, for purposes hereof, be treated in all respects the same as the
issuance of a new Letter of Credit hereunder.

(g) Uniform Customs and Practices. The Issuing Lender shall have the Letters
of Credit be subject to The Uniform Customs and Practice for Documentary
Credits, as published as of the date of issue by the International Chamber of Commerce
(the “UCP”), in which case the UCP may be incorporated therein and deemed in all
respects to be a part thereof.

 

28

 

Section 2.4 Fees.

(a) Commitment Fee. In consideration of the Revolving Commitment, the Borrower
agrees to pay to the Administrative Agent for the ratable benefit of the Lenders (other than
any Defaulting Lender) a commitment fee (the “Commitment Fee”) in an amount equal to
the Applicable Percentage per annum on the average daily unused amount of the aggregate
Revolving Commitments of such Lenders. For purposes of computing the Commitment Fee
hereunder, LOC Obligations shall be considered usage of the Revolving Commitments, but
Swingline Loans shall not be considered usage of the Revolving Commitments. The Commitment
Fee shall be due and payable quarterly in arrears on the 15th day following the last day of
each calendar quarter for the prior calendar quarter.

(b) Letter of Credit Fees. In consideration of the LOC Commitments, the
Borrower agrees to pay to the Issuing Lender a fee (the “Letter of Credit Fee”)
equal to the Applicable Percentage per annum on the average daily maximum amount available
to be drawn under each Letter of Credit from the date of issuance to the date of expiration.
In addition to such Letter of Credit Fee, the Issuing Lender may charge, and retain for its
own account without sharing by the other Lenders, an additional facing fee of one-eighth of
one percent (0.125%) per annum on the average daily maximum amount available to be drawn
under each such Letter of Credit issued by it. The Issuing Lender shall promptly pay over
to the Administrative Agent for the ratable benefit of the Lenders (including the Issuing
Lender, but excluding any Defaulting Lender) the Letter of Credit Fee. The Letter of Credit
Fee shall be due and payable quarterly in arrears on the 15th day following the last day of
each calendar quarter for the prior calendar quarter and on the Revolving Commitment
Termination Date.

(c) Issuing Lender Fees. In addition to the Letter of Credit Fees payable
pursuant to subsection (b) hereof, the Borrower shall pay to the Issuing Lender for
its own account without sharing by the other Lenders the reasonable and customary charges
from time to time of the Issuing Lender with respect to the amendment, transfer,
administration, cancellation and conversion of, and drawings under, such Letters of Credit
(collectively, the “Issuing Lender Fees”).

Section 2.5 Commitment Reductions and Increases.

(a) Voluntary Reductions. The Borrower shall have the right to terminate or
permanently reduce the unused portion of the Revolving Committed Amount at any time or from
time to time upon not less than five Business Days’ prior notice to the Administrative Agent
(which shall notify the Lenders thereof as soon as practicable) of each such termination or
reduction, which notice shall specify the effective date thereof and the amount of any such
reduction which shall be in a minimum amount of $5,000,000 or a whole multiple of $1,000,000
in excess thereof and shall be irrevocable

 

29

 

and effective upon receipt by the Administrative Agent, provided that no such
reduction or termination shall be permitted if after giving effect thereto, and to any
prepayments of the Revolving Loans made on the effective date thereof, the sum of the then
outstanding aggregate principal amount of the Revolving Loans plus Swingline Loans
plus LOC Obligations would exceed the Revolving Committed Amount.

(b) Revolving Commitment Termination Date. The Revolving Commitment, the
Swingline Commitment and the LOC Commitment shall automatically terminate on the Revolving
Commitment Termination Date.

(c) Increase of Revolving Committed Amount. At any time prior to the
expiration of the Revolving Commitment Termination Date, and so long as no Default or Event
of Default shall have occurred which is continuing, Borrower may elect to increase the
Revolving Committed Amount to an amount not exceeding $240,000,000 minus any reductions in
the Revolving Commitments pursuant to Section 2.5(a), provided that (i) Borrower
shall give at least fifteen (15) Business Days’ prior written notice of such increase to the
Administrative Agent and each existing Lender, (ii) each existing Lender shall have the
right (but not the obligation) to subscribe to its pro rata share of the proposed increase
in the Revolving Committed Amount by giving written notice of such election to Borrower and
the Administrative Agent within ten (10) Business Days after receipt of a notice from the
Borrower as above described and only if an existing Lender does not exercise such election
may the Borrower elect to add a new Lender, (iii) no Lender shall be required to increase
its Revolving Commitment unless it shall have expressly agreed to such increase in writing
(but otherwise, no notice to or consent by any Lender shall be required, notwithstanding
anything to the contrary set forth in Article X hereof), (iv) the addition of new
Lenders shall be subject to the terms and provisions of Article X hereof as if such
new Lenders were acquiring an interest in the Loans by assignment from an existing Lenders
(to the extent applicable, i.e. required approvals, minimum amounts and the like), (v)
Borrower shall execute and deliver such additional or replacement Notes and such other
documentation (including evidence of proper authorization) as may be reasonably requested by
the Administrative Agent, any new Lender or any Lender which is increasing its Revolving
Commitment, (vi) no Lender shall have any right to decrease its Revolving Commitment as a
result of such increase of the Revolving Committed Amount, (vii) the Administrative Agent
shall have no obligation to arrange, find or locate any Lender or new bank or financial
institution to participate in any unsubscribed portion of such increase in the Revolving
Committed Amount, and (viii) each such increase shall be in an aggregate amount of at least
$10,000,000. Borrower shall be required to pay (or to reimburse each applicable Lender for)
any breakage costs incurred by any Lender in connection with the need to reallocate existing
Loans among the Lenders following any increase in the Revolving Committed Amount pursuant to
this provision.

Section 2.6 Prepayments.

(a) Optional Prepayments. The Borrower shall have the right to prepay Loans in
whole or in part from time to time; provided, however, that (i) each partial
prepayment of Revolving Loans shall be in a minimum principal amount of $1,000,000 and
integral

 

30

 

multiples of $100,000 in excess thereof (or the remaining unpaid amount) and (ii) each
partial prepayment of Swingline Loans shall be in a minimum principal amount of $100,000 and
integral multiples of $50,000 in excess thereof (or the remaining unpaid amount). The
Borrower shall give three Business Days’ irrevocable notice in the case of LIBOR Rate Loans
and irrevocable notice not later than 1:00 p.m. (Houston, Texas time) on the same Business
Day in the case of Alternate Base Rate Loans, to the Administrative Agent (which shall
notify the Lenders thereof as soon as practicable). Subject to the foregoing terms, amounts
prepaid under this Section 2.6(a) shall be applied as the Borrower elects; provided
that if the Borrower fails to specify the application of an optional prepayment then such
prepayment shall be applied to Revolving Loans, first to Alternate Base Rate Loans and then
to LIBOR Rate Loans in direct order of Interest Period maturities. All prepayments under
this Section 2.6(a) shall be subject to Section 2.16, but otherwise without
premium or penalty. Interest on the principal amount prepaid shall be payable on the next
occurring Interest Payment Date that would have occurred had such loan not been prepaid or,
at the request of the Administrative Agent, interest on the principal amount prepaid shall
be payable on any date that a prepayment is made hereunder through the date of prepayment.
Amounts prepaid on the Revolving Loans and the Swingline Loans may be reborrowed in
accordance with the terms hereof.

(b) Mandatory Prepayments.

(i) Revolving Committed Amount. If at any time after the Closing Date,
the sum of the aggregate principal amount of outstanding Revolving Loans
plus Swingline Loans plus LOC Obligations shall exceed the aggregate
Revolving Committed Amount, the Borrower immediately shall prepay the Revolving
Loans including any Swingline Loans) in the amount of such excess and (after all
Revolving Loans have been repaid) cash collateralize the LOC Obligations, in an
amount sufficient to eliminate such excess.

(ii) Asset Dispositions. Promptly following any Asset Disposition in
excess of $5,000,000 for all such Asset Dispositions occurring during the term of
this Agreement which are not applied to purchase or otherwise acquire replacement
assets or property within 180 days following the receipt by a Credit Party of such
cash proceeds, the Borrowers shall prepay the Loans in an aggregate amount equal to
100% of the Net Cash Proceeds derived from such Asset Disposition that were not
reinvested within such 180 days (such prepayment to be applied as set forth in
clause (v) below).

(iii) Debt Issuances. Promptly, but in any event within three (3)
Business Days, upon receipt by any Credit Party of proceeds from any Debt Issuance,
the Borrower shall prepay the Loans in an aggregate amount equal to one hundred
percent (100%) of the Net Cash Proceeds of such Debt Issuance (such prepayment to be
applied as set forth in clause (v) below).

(iv) Recovery Event. To the extent of cash proceeds received in
connection with a Recovery Event which are in excess of $5,000,000 in the aggregate
and which are not applied to repair or replacement costs in accordance

 

31

 

with Section 6.6(a)(ii), immediately following the 180th day occurring
after the receipt by a Credit Party of such cash proceeds, the Borrower shall prepay
the Loans in an aggregate amount equal to one hundred percent (100%) of such Net
Cash Proceeds (such prepayment to be applied as set forth in clause (v)
below).

(v) Application of Mandatory Prepayments. All amounts required to be
paid pursuant to this Section 2.6(b) shall be applied to Revolving Loans
(including Swingline Loans) and (after all Revolving Loans have been repaid) to a
cash collateral account in respect of LOC Obligations. Within the parameters of the
applications set forth above, prepayments shall be applied first to Alternate Base
Rate Loans and then to LIBOR Rate Loans in direct order of Interest Period
maturities. All prepayments under this Section 2.6(b) shall be subject to
Section 2.16 but otherwise without premium or penalty, and be accompanied by
interest on the principal amount prepaid through the date of prepayment.

Section 2.7 Minimum Principal Amount of Tranches.

All borrowings, payments and prepayments in respect of Revolving Loans (other than mandatory
prepayments) shall be in such amounts and be made pursuant to such elections so that after giving
effect thereto the aggregate principal amount thereof comprising any Tranche shall not be less than
$1,000,000 or a whole multiple of $100,000 in excess thereof.

Section 2.8 Default Rate and Payment Dates.

Upon the occurrence, and during the continuance, of an Event of Default, the principal of and,
to the extent permitted by law, interest on the Loans and any other amounts owing hereunder or
under the other Credit Documents shall bear interest, payable on demand, at a per annum rate 2%
greater than the rate which would otherwise be applicable (or if no rate is applicable, whether in
respect of interest, fees or other amounts, then the Alternate Base Rate plus the
Applicable Percentage plus 2%) (the “Default Rate”).

Section 2.9 Conversion Options.

(a) The Borrower may elect from time to time to convert Alternate Base Rate Loans to
LIBOR Rate Loans, by giving the Administrative Agent at least three Business Days’ prior
irrevocable written notice of such election. A form of Notice of Conversion/ Extension is
attached as Schedule 2.9. If the date upon which an Alternate Base Rate Loan is to
be converted to a LIBOR Rate Loan is not a Business Day, then such conversion shall be made
on the next succeeding Business Day and during the period from such last day of an Interest
Period to such succeeding Business Day such Loan shall bear interest as if it were an
Alternate Base Rate Loan. All or any part of outstanding Alternate Base Rate Loans may be
converted as provided herein, provided that (i) no Loan may be converted into a
LIBOR Rate Loan when any Default or Event of Default has occurred and is continuing and (ii)
partial conversions shall be in an aggregate principal amount of $1,000,000 or a whole
multiple of $100,000 in excess thereof.

 

32

 

(b) Any LIBOR Rate Loans may be continued as such upon the expiration of an Interest
Period with respect thereto by compliance by the Borrower with the notice provisions
contained in Section 2.9(a); provided, that no LIBOR Rate Loan may be
continued as such when any Default or Event of Default has occurred and is continuing, in
which case such Loan shall be automatically converted to an Alternate Base Rate Loan at the
end of the applicable Interest Period with respect thereto. If the Borrower shall fail to
give timely notice of an election to continue a LIBOR Rate Loan, and the continuation of
such LIBOR Rate Loans is permitted hereunder, such LIBOR Rate Loans shall be automatically
continue as a one (1) month LIBOR Rate Loan at the end of the applicable Interest Period
with respect thereto.

Section 2.10 Computation of Interest and Fees.

(a) Interest payable hereunder with respect to Alternate Base Rate Loans and Commitment
Fees shall be calculated on the basis of a year of 365 days (or 366 days, as applicable) for
the actual days elapsed. All other fees, interest and all other amounts payable hereunder
shall be calculated on the basis of a 360 day year for the actual days elapsed. The
Administrative Agent shall as soon as practicable notify the Borrower and the Lenders of
each determination of a LIBOR Rate on the Business Day of the determination thereof. Any
change in the interest rate on a Loan resulting from a change in the Alternate Base Rate
shall become effective as of the opening of business on the day on which such change in the
Alternate Base Rate shall become effective. The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of the effective date and the amount of each
such change.

(b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders
in the absence of manifest error. The Administrative Agent shall, at the request of the
Borrower, deliver to the Borrower a statement showing the computations used by the
Administrative Agent in determining any interest rate.

Section 2.11 Pro Rata Treatment and Payments.

(a) Each borrowing of Revolving Loans and any reduction of the Revolving Commitments
shall be made pro rata according to the respective Commitment Percentages of
the Lenders. Each payment under this Agreement or any Note shall be applied, first, to any
fees then due and owing by the Borrower pursuant to Section 2.4, second, to interest
then due and owing in respect of the Notes of the Borrower and, third, to principal then due
and owing hereunder and under the Notes of the Borrower. Each payment on account of any
fees pursuant to Section 2.4 shall be made pro rata in accordance
with the respective amounts due and owing (except as to the portion of the Letter of Credit
retained by the Issuing Lender and the Issuing Lender Fees). Each payment (other than
prepayments) by the Borrower on account of principal of and interest on the Revolving Loans
shall be made pro rata according to the respective amounts due and owing in
accordance with Section 2.6 hereof. Each optional prepayment on account of
principal of the Loans shall be applied in accordance with Section 2.6(a). Each
mandatory prepayment on account of principal of the Loans shall be

 

33

 

applied in accordance with Section 2.6(b). All payments (including
prepayments) to be made by the Borrower on account of principal, interest and fees shall be
made without defense, set-off or counterclaim (except as provided in Section
2.17(b)) and shall be made to the Administrative Agent for the account of the Lenders at
the Administrative Agent’s office specified on Schedule 11.2 in Dollars and in
immediately available funds not later than 2:00 p.m. (Houston, Texas time) on the date when
due. The Administrative Agent shall distribute such payments to the Lenders entitled
thereto promptly upon receipt in like funds as received. If any payment hereunder (other
than payments on the LIBOR Rate Loans) becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business Day, and, with
respect to payments of principal, interest thereon shall be payable at the then applicable
rate during such extension. If any payment on a LIBOR Rate Loan becomes due and payable on
a day other than a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day unless the result of such extension would be to extend such payment
into another calendar month, in which event such payment shall be made on the immediately
preceding Business Day.

(b) Allocation of Payments After Event of Default. Notwithstanding any other
provisions of this Credit Agreement to the contrary, after the occurrence and during the
continuance of an Event of Default, all amounts collected or received by the Administrative
Agent or any Lender on account of the Credit Party Obligations or any other amounts
outstanding under any of the Credit Documents or in respect of the Collateral shall be paid
over or delivered as follows:

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

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

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

FOURTH, to the payment of all of the Credit Party Obligations consisting of accrued
fees and interest;

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

SIXTH, to all other Credit Party Obligations and other obligations which shall have
become due and payable under the Credit Documents or otherwise and not repaid pursuant to
clauses “FIRST” through “FIFTH” above; and

 

34

 

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

In carrying out the foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (ii) each of
the Lenders shall receive an amount equal to its pro rata share (based on the proportion
that the then outstanding Loans and LOC Obligations held by such Lender bears to the
aggregate then outstanding Loans and LOC Obligations) of amounts available to be applied
pursuant to clauses “THIRD”, “FOURTH”, “FIFTH” and “SIXTH” above; and (iii) to the extent
that any amounts available for distribution pursuant to clause “FIFTH” above are
attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts
shall be held by the Administrative Agent in a cash collateral account and applied (A)
first, to reimburse the Issuing Lender from time to time for any drawings under such Letters
of Credit and (B) then, following the expiration of all Letters of Credit, to all other
obligations of the types described in clauses “FIFTH” and “SIXTH” above in the manner
provided in this Section 2.11(b).

Section 2.12 Non-Receipt of Funds by the Administrative Agent.

(a) Unless the Administrative Agent shall have been notified in writing by a Lender
prior to the date a Loan is to be made by such Lender (which notice shall be effective upon
receipt) that such Lender does not intend to make the proceeds of such Loan available to the
Administrative Agent, the Administrative Agent may assume that such Lender has made such
proceeds available to the Administrative Agent on such date, and the Administrative Agent
may in reliance upon such assumption (but shall not be required to) make available to the
Borrower a corresponding amount. If such corresponding amount is not in fact made available
to the Administrative Agent, the Administrative Agent shall be able to recover such
corresponding amount from such Lender. If such Lender does not pay such corresponding
amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent
will promptly notify the Borrower, and the Borrower shall immediately pay such corresponding
amount to the Administrative Agent. The Administrative Agent shall also be entitled to
recover from the Lender or the Borrower, as the case may be, interest on such corresponding
amount in respect of each day from the date such corresponding amount was made available by
the Administrative Agent to the Borrower to the date such corresponding amount is recovered
by the Administrative Agent at a per annum rate equal to (i) from the Borrower at the
applicable rate for the applicable borrowing pursuant to the Notice of Borrowing and (ii)
from a Lender at the Federal Funds Effective Rate.

(b) Unless the Administrative Agent shall have been notified in writing by the
Borrower, prior to the date on which any payment is due from it hereunder (which notice
shall be effective upon receipt) that the Borrower does not intend to make such payment, the
Administrative Agent may assume that the Borrower has made such payment when due, and the
Administrative Agent may in reliance upon such assumption (but shall not be required to)
make available to each Lender on such payment date an amount equal to the portion of such
assumed payment to which such Lender is entitled hereunder, and if

 

35

 

the Borrower has not in fact made such payment to the Administrative Agent, such Lender
shall, on demand, repay to the Administrative Agent the amount made available to such
Lender. If such amount is repaid to the Administrative Agent on a date after the date such
amount was made available to such Lender, such Lender shall pay to the Administrative Agent
on demand interest on such amount in respect of each day from the date such amount was made
available by the Administrative Agent to such Lender to the date such amount is recovered by
the Administrative Agent at a per annum rate equal to the Federal Funds Effective Rate.

(c) A certificate of the Administrative Agent submitted to the Borrower or any Lender
with respect to any amount owing under this Section 2.12 shall be conclusive in the
absence of manifest error.

Section 2.13 Inability to Determine Interest Rate.

Notwithstanding any other provision of this Agreement, if (i) the Administrative Agent shall
reasonably determine (which determination shall be conclusive and binding absent manifest error)
that, by reason of circumstances affecting the relevant market, reasonable and adequate means do
not exist for ascertaining LIBOR for such Interest Period, or (ii) the Required Lenders shall
reasonably determine (which determination shall be conclusive and binding absent manifest error)
that the LIBOR Rate does not adequately and fairly reflect the cost to such Lenders of funding
LIBOR Rate Loans that the Borrower has requested be outstanding as a LIBOR Tranche during such
Interest Period, the Administrative Agent shall forthwith give telephone notice of such
determination, confirmed in writing, to the Borrower, and the Lenders at least two Business Days
prior to the first day of such Interest Period. Unless the Borrower shall have notified the
Administrative Agent upon receipt of such telephone notice that it wishes to rescind or modify its
request regarding such LIBOR Rate Loans, any Loans that were requested to be made as LIBOR Rate
Loans shall be made as Alternate Base Rate Loans and any Loans that were requested to be converted
into or continued as LIBOR Rate Loans shall remain as or be converted into Alternate Base Rate
Loans. Until any such notice has been withdrawn by the Administrative Agent, no further Loans
shall be made as, continued as, or converted into, LIBOR Rate Loans for the Interest Periods so
affected.

Section 2.14 Illegality.

Notwithstanding any other provision of this Agreement, if the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof by the relevant Governmental
Authority to any Lender shall make it unlawful for such Lender or its LIBOR Lending Office to make
or maintain LIBOR Rate Loans as contemplated by this Agreement, or to obtain in the interbank
eurodollar market through its LIBOR Lending Office the funds with which to make such Loans, (a)
such Lender shall promptly (and in any event within ninety (90) days from the date the Lender knew
or should have known of the facts pertaining thereto) notify the Administrative Agent and the
Borrower thereof, (b) the commitment of such Lender hereunder to make LIBOR Rate Loans or continue
LIBOR Rate Loans as such shall forthwith be suspended until the Administrative Agent shall give
notice that the condition or situation which gave rise to the suspension shall no longer exist, and
(c) such Lender’s Loans then outstanding as LIBOR Rate Loans, if any, shall be converted on the
last day of the Interest Period for such

 

36

 

Loans or within such earlier period as required by law as Alternate Base Rate Loans. The
Borrower hereby agrees promptly to pay any Lender, upon its demand, any additional amounts
necessary to compensate such Lender for actual and direct costs (but not including anticipated
profits or losses sustained by virtue of the Lender’s failure to give the Borrower the aforesaid
notice within the prescribed time period) reasonably incurred by such Lender in making any
repayment in accordance with this Section including, but not limited to, any interest or fees
payable by such Lender to lenders of funds obtained by it in order to make or maintain its LIBOR
Rate Loans hereunder. A certificate as to any additional amounts payable pursuant to this Section
submitted by such Lender, through the Administrative Agent, to the Borrower shall constitute
prima facie evidence as to the accuracy of the facts contained therein. Each
Lender agrees to use reasonable efforts (including reasonable efforts to change its LIBOR Lending
Office) to avoid or to minimize any amounts which may otherwise be payable pursuant to this
Section; provided, however, that such efforts shall not cause the imposition on
such Lender of any additional costs or legal or regulatory burdens deemed by such Lender in its
sole discretion to be material.

Section 2.15 Requirements of Law.

(a) If the adoption of or any change in any Requirement of Law or in the interpretation
or application thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

(i) shall subject such Lender to any tax of any kind whatsoever with respect to
any Letter of Credit or any application relating thereto, any LIBOR Rate Loan made
by it, or change the basis of taxation of payments to such Lender in respect thereof
(except for changes in the rate of tax on the overall net income of such Lender);

(ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of credit
by, or any other acquisition of funds by, any office of such Lender which is not
otherwise included in the determination of the LIBOR Rate hereunder; or

(iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender of making or
maintaining LIBOR Rate Loans or the Letters of Credit or to reduce any amount receivable
hereunder or under any Note, then, in any such case, the Borrower shall promptly pay upon
its demand, any additional amounts necessary to compensate such Lender for such additional
cost or reduced amount receivable which such Lender reasonably deems to be material as
determined by such Lender with respect to its LIBOR Rate Loans or Letters of Credit;
provided, however, such Lender shall promptly (and in any event with ninety
(90) days from the date the Lender knew or should have known of the facts pertaining
thereto) notify the Borrower of the aforesaid facts and the Borrower shall not be
responsible costs or losses sustained by virtue of the Lender’s failure to give

 

37

 

the Borrower the aforesaid notice. A certificate as to any additional amounts payable
pursuant to this Section submitted by such Lender, through the Administrative Agent, to the
Borrower shall constitute prima facie evidence as to the accuracy of the
facts contained therein. Each Lender agrees to use reasonable efforts (including reasonable
efforts to change its Domestic Lending Office or LIBOR Lending Office, as the case may be)
to avoid or to minimize any amounts which might otherwise be payable pursuant to this
paragraph of this Section; provided, however, that such efforts shall not
cause the imposition on such Lender of any additional costs or legal or regulatory burdens
deemed by such Lender to be material.

(b) If any Lender shall have reasonably determined that the adoption of or any change
in any Requirement of Law regarding capital adequacy or in the interpretation or application
thereof or compliance by such Lender or any corporation controlling such Lender with any
request or directive regarding capital adequacy (whether or not having the force of law)
from any central bank or Governmental Authority made subsequent to the date hereof does or
shall have the effect of reducing the rate of return on such Lender’s or such corporation’s
capital as a consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or compliance
(taking into consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount reasonably deemed by such Lender to be material, then from
time to time, within fifteen (15) days after demand by such Lender, the Borrower shall pay
to such Lender such additional amount as shall be certified by such Lender as being required
to compensate it for such reduction; provided, however, such Lender shall
promptly (and in any event with ninety (90) days from the date the Lender knew or should
have known of the facts pertaining thereto) notify the Borrower of the aforesaid facts and
the Borrower shall not be responsible for costs or losses sustained by virtue of the
Lender’s failure to give the Borrower the aforesaid notice within the prescribed time
period. Such a certificate as to any additional amounts payable under this Section
submitted by a Lender (which certificate shall include a description of the basis for the
computation), through the Administrative Agent, to the Borrower shall constitute
prima facie evidence as to the accuracy of the facts contained therein.

(c) The agreements in this Section 2.15 shall survive the termination of this
Agreement and payment of the Notes and all other amounts payable hereunder.

Section 2.16 Indemnity.

The Borrower hereby agrees to indemnify each Lender and to hold such Lender harmless from any
funding loss or expense which such Lender may sustain or incur as a consequence of (a) default by
the Borrower in payment of the principal amount of or interest on any Loan by such Lender in
accordance with the terms hereof, (b) default by the Borrower in accepting a borrowing of Loans
after the Borrower has given a notice in accordance with the terms hereof, (c) default by the
Borrower in making any prepayment of Loans after the Borrower has given a notice in accordance with
the terms hereof, and/or (d) the making by the Borrower of a prepayment of a Loan, or the
conversion thereof, on a day which is not the last day of the Interest Period with respect thereto,
in each case including, but not limited to, any such loss or

 

38

 

expense arising from interest or fees payable by such Lender to lenders of funds obtained by
it in order to maintain its Loans hereunder. A certificate as to any additional amounts payable
pursuant to this Section submitted by any Lender, through the Administrative Agent, to the Borrower
(which certificate must be delivered to the Administrative Agent within thirty days following such
default, prepayment or conversion) shall constitute prima facie evidence as to the
accuracy of the facts contained therein. The agreements in this Section shall survive termination
of this Agreement and payment of the Notes and all other amounts payable hereunder.

Section 2.17 Taxes.

(a) All payments made by the Borrower hereunder or under any Note will be, except as
provided in Section 2.17(b), made free and clear of, and without deduction or
withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or
other charges of whatever nature now or hereafter imposed by any Governmental Authority or
by any political subdivision or taxing authority thereof or therein with respect to such
payments (but excluding any tax imposed on or measured by the net income or profits of a
Lender pursuant to the laws of the jurisdiction in which it is organized or the jurisdiction
in which the principal office or applicable lending office of such Lender is located or any
subdivision thereof or therein) and all interest, penalties or similar liabilities with
respect thereto (all such non-excluded taxes, levies, imposts, duties, fees, assessments or
other charges being referred to collectively as “Taxes”). If any Taxes are so
levied or imposed, the Borrower agrees to pay the full amount of such Taxes, and such
additional amounts as may be necessary so that every payment of all amounts due under this
Agreement or under any Note, after withholding or deduction for or on account of any Taxes,
will not be less than the amount provided for herein or in such Note. The Borrower will
furnish to the Administrative Agent as soon as practicable after the date the payment of any
Taxes is due pursuant to applicable law certified copies (to the extent reasonably available
and required by law) of tax receipts evidencing such payment by the Borrower. The Borrower
agrees to indemnify and hold harmless each Lender, and reimburse such Lender upon its
written request, for the amount of any Taxes so levied or imposed and paid by such Lender.

(b) Each Lender that is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) agrees to deliver to the Borrower and the Administrative Agent on
or prior to the Closing Date, or in the case of a Lender that is an assignee or transferee
of an interest under this Agreement pursuant to Article X (unless the respective
Lender was already a Lender hereunder immediately prior to such assignment or transfer), on
the date of such assignment or transfer to such Lender, (i) if the Lender is a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, two accurate and complete original signed
copies of Internal Revenue Service Form W-8ECI or W-8BEN (or successor forms) certifying
such Lender’s entitlement to a complete exemption from United States withholding tax with
respect to payments to be made under this Agreement and under any Note, or (ii) if the
Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, either
Internal Revenue Service Form W-8ECI or W-8BEN as set forth in clause (i) above, or
(x) a certificate substantially in the form of Schedule 2.17 (any such certificate,
a “2.17 Certificate”) and (y) two accurate and complete original signed copies of
Internal Revenue Service Form W-8ECI or W-

 

39

 

8BEN (or successor form) certifying such Lender’s entitlement to an exemption from
United States withholding tax and backup withholding tax with respect to payments of
interest to be made under this Agreement and under any Note. In addition, each Lender agrees
that it will deliver upon the Borrower’s request updated versions of the foregoing, as
applicable, whenever the previous certification has become obsolete or inaccurate in any
material respect, together with such other forms as may be required in order to confirm or
establish the entitlement of such Lender to a continued exemption from or reduction in
United States withholding tax with respect to payments under this Agreement and any Note.
Notwithstanding anything to the contrary contained in Section 2.17(a), but subject
to the immediately succeeding sentence, (x) the Borrower shall be entitled, to the extent it
is required to do so by law, to deduct or withhold Taxes imposed by the United States (or
any political subdivision or taxing authority thereof or therein) from interest, fees or
other amounts payable hereunder for the account of any Lender which is not a United States
person (as such term is defined in Section 7701(a)(30) of the Code) for U.S. Federal income
tax purposes to the extent that such Lender has not provided to the Borrower U.S. Internal
Revenue Service Forms that establish a complete exemption from such deduction or withholding
and (y) the Borrower shall not be obligated pursuant to Section 2.17(a) hereof to
gross-up payments to be made to a Lender in respect of Taxes imposed by the United States if
(I) such Lender has not provided to the Borrower the Internal Revenue Service Forms required
to be provided to the Borrower pursuant to this Section 2.17(b) or (II) in the case
of a payment, other than interest, to a Lender described in clause (ii) above, to
the extent that such Forms do not establish a complete exemption from withholding of such
Taxes. Notwithstanding anything to the contrary contained in the preceding sentence or
elsewhere in this Section 2.17, the Borrower agrees to pay additional amounts and to
indemnify each Lender in the manner set forth in Section 2.17(a) (without regard to
the identity of the jurisdiction requiring the deduction or withholding) in respect of any
amounts deducted or withheld by it as described in the immediately preceding sentence as a
result of any changes after the Closing Date, in any applicable law, treaty, governmental
rule, regulation, guideline or order, or in the interpretation thereof, relating to the
deducting or withholding of Taxes.

(c) Each Lender agrees to use reasonable efforts (including reasonable efforts to
change its Domestic Lending Office or LIBOR Lending Office, as the case may be) to avoid or
to minimize any amounts which might otherwise be payable pursuant to this Section;
provided, however, that such efforts shall not cause the imposition on such
Lender of any additional costs or legal or regulatory burdens deemed by such Lender in its
sole discretion to be material.

(d) If the Borrower pays any additional amount pursuant to this Section 2.17
with respect to a Lender, such Lender shall use reasonable efforts to obtain a refund of tax
or credit against its tax liabilities on account of such payment; provided that such
Lender shall have no obligation to use such reasonable efforts if either (i) it is in an
excess foreign tax credit position or (ii) it believes in good faith, in its sole
discretion, that claiming a refund or credit would cause adverse tax consequences to it. In
the event that such Lender receives such a refund or credit, such Lender shall pay to the
Borrower an amount that such Lender reasonably determines is equal to the net tax benefit
obtained

 

40

 

by such Lender as a result of such payment by the Borrower. In the event that no
refund or credit is obtained with respect to the Borrower’s payments to such Lender pursuant
to this Section 2.17, then such Lender shall upon request provide a certification
that such Lender has not received a refund or credit for such payments. Nothing contained
in this Section 2.17 shall require a Lender to disclose or detail the basis of its
calculation of the amount of any tax benefit or any other amount or the basis of its
determination referred to in the proviso to the first sentence of this Section 2.17
to the Borrower or any other party.

(e) The agreements in this Section 2.17 shall survive the termination of this
Agreement and the payment of the Notes and all other amounts payable hereunder.

Section 2.18 Indemnification; Nature of Issuing Lender’s Duties.

(a) In addition to its other obligations under Section 2.3, the Borrower hereby
agrees to protect, indemnify, pay and save the Issuing Lender harmless from and against any
and all claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable attorneys’ fees) that the Issuing Lender may incur or be subject to as
a consequence, direct or indirect, of (i) the issuance of any Letter of Credit or (ii) the
failure of the Issuing Lender to honor a drawing under a Letter of Credit as a result of any
act or omission, whether rightful or wrongful, of any present or future de jure or de facto
government or governmental authority (all such acts or omissions, herein called
“Government Acts”).

(b) As between the Borrower and the Issuing Lender, the Borrower shall assume all risks
of the acts, omissions or misuse of any Letter of Credit by the beneficiary thereof. The
Issuing Lender shall not be responsible: (i) for the form, validity, sufficiency, accuracy,
genuineness or legal effect of any document submitted by any party in connection with the
application for and issuance of any Letter of Credit, even if it should in fact prove to be
in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the
validity or sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any Letter of Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, that may prove to be invalid or ineffective for any reason;
(iii) for failure of the beneficiary of a Letter of Credit to comply fully with conditions
required in order to draw upon a Letter of Credit; (iv) for errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or
otherwise, whether or not they be in cipher; (v) for errors in interpretation of technical
terms; (vi) for any loss or delay in the transmission or otherwise of any document required
in order to make a drawing under a Letter of Credit or of the proceeds thereof; and (vii)
for any consequences arising from causes beyond the control of the Issuing Lender,
including, without limitation, any Government Acts. None of the above shall affect, impair,
or prevent the vesting of the Issuing Lender’s rights or powers hereunder.

(c) In furtherance and extension and not in limitation of the specific provisions
hereinabove set forth, any action taken or omitted by the Issuing Lender, under or in
connection with any Letter of Credit or the related certificates, if taken or omitted in
good faith, shall not put the Issuing Lender under any resulting liability to the

 

41

 

Borrower. It is the intention of the parties that this Agreement shall be construed
and applied to protect and indemnify the Issuing Lender against any and all risks involved
in the issuance of the Letters of Credit, all of which risks are hereby assumed by the
Borrower, including, without limitation, any and all risks of the acts or omissions, whether
rightful or wrongful, of any Government Authority. The Issuing Lender shall not, in any
way, be liable for any failure by the Issuing Lender or anyone else to pay any drawing under
any Letter of Credit as a result of any Government Acts or any other cause beyond the
control of the Issuing Lender.

(d) Nothing in this Section 2.18 is intended to limit the reimbursement
obligation of the Borrower contained in Section 2.3(d) hereof. The obligations of
the Borrower under this Section 2.18 shall survive the termination of this
Agreement. No act or omissions of any current or prior beneficiary of a Letter of Credit
shall in any way affect or impair the rights of the Issuing Lender to enforce any right,
power or benefit under this Agreement.

(e) Notwithstanding anything to the contrary contained in this Section 2.18,
the Borrower shall have no obligation to indemnify the Issuing Lender in respect of any
liability incurred by the Issuing Lender arising out of the gross negligence or willful
misconduct of the Issuing Lender (including action not taken by the Issuing Lender), as
determined by a court of competent jurisdiction (IT BEING THE INTENTION OF THIS PROVISION
THAT SUCH INDEMNIFICATION OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED IN
WHOLE OR IN PART BY THE ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING INDEMNIFIED).

ARTICLE III

REPRESENTATIONS AND WARRANTIES

To induce the Lenders to enter into this Agreement and to make the Extensions of Credit herein
provided for, the Credit Parties hereby represent and warrant to the Administrative Agent and to
each Lender that:

Section 3.1 Financial Condition.

The balance sheets and the related statements of income and of cash flows of the Borrower for
fiscal year ending March 31, 2006 audited by KPMG, L.L.P. are complete and correct and present
fairly the financial condition of the Borrower and its Subsidiaries as of such dates.
Additionally, the most recently provided company-prepared projections of income and cash flow for
the fiscal years ending March 31, 2007 and March 31, 2008 have been prepared in good faith based
upon reasonable assumptions. All such financial statements, including the related schedules and
notes thereto, have been prepared in accordance with GAAP applied consistently throughout the
periods involved (except for projections, pro forma statements, and/or as disclosed therein).

 

42

 

Section 3.2 No Change.

Since March 31, 2006 there has been no development or event which has had or could reasonably
be expected to have a Material Adverse Effect.

Section 3.3 Corporate Existence; Compliance with Law.

Except as set forth on Schedule 3.3, each of the Borrower and the other Credit Parties
(a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization, (b) has the requisite corporate power and authority to own and operate all its
material property, to lease the material property it operates as lessee and to conduct the business
in which it is currently engaged, (c) is duly qualified to conduct business and in good standing
under the laws of each jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification except to the extent that the failure to so
qualify or be in good standing could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect and (d) is in compliance with all Requirements of Law except to the extent
that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.

Section 3.4 Corporate Power; Authorization; Enforceable Obligations.

Each of the Borrower and the other Credit Parties has full corporate power and authority and
the legal right to make, deliver and perform the Credit Documents to which it is party and has
taken all necessary corporate action to authorize the execution, delivery and performance by it of
the Credit Documents to which it is party. No consent or authorization of, filing with, notice to
or other act by or in respect of, any Governmental Authority or any other Person is required in
connection with the borrowings hereunder or with the execution, delivery or performance of any
Credit Document by the Borrower or the other Credit Parties (other than those which have been
obtained) or with the validity or enforceability of any Credit Document against the Borrower or the
other Credit Parties (except such filings as are necessary in connection with the perfection of the
Liens created by such Credit Documents). Each Credit Document to which it is a party has been duly
executed and delivered on behalf of the Borrower or the other Credit Parties, as the case may be.
Each Credit Document to which it is a party constitutes a legal, valid and binding obligation of
the Borrower or the other Credit Parties, as the case may be, enforceable against the Borrower or
such other Credit Party, as the case may be, in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
transfer, fraudulent conveyance, or similar laws affecting the enforcement of creditors’ rights
generally and by general equitable principles (whether enforcement is sought by proceedings in
equity or at law).

Section 3.5 No Legal Bar; No Default.

The execution, delivery and performance of the Credit Documents, the borrowings thereunder and
the use of the proceeds of the Loans will not violate any Requirement of Law or any Contractual
Obligation of the Borrower or any other Credit Party (except those as to which waivers or consents
have been obtained), and will not result in, or require, the creation or imposition of any material
Lien on any of its or their respective properties or revenues pursuant

 

43

 

to any Requirement of Law or Contractual Obligation other than the Liens arising under or
contemplated in connection with the Credit Documents. Neither the Borrower nor any other Credit
Party is in default under or with respect to any of its Contractual Obligations in any respect
which could reasonably be expected to have a Material Adverse Effect. No Default or Event of
Default has occurred and is continuing.

Section 3.6 No Material Litigation.

Except as set forth in Schedule 3.6, no litigation, investigation or proceeding of or
before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower,
threatened by or against any Credit Party or any of its Subsidiaries or against any of its or their
respective properties or revenues (a) with respect to the Credit Documents or any Loan or any of
the transactions contemplated hereby, or (b) which could reasonably be expected to be adversely
determined, and if adversely determined, could reasonably be expected to have a Material Adverse
Effect.

Section 3.7 Investment Company Act.

Neither the Borrower nor any Credit Party is an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940,
as amended.

Section 3.8 Margin Regulations.

No part of the proceeds of any Loan hereunder will be used directly or indirectly for any
purpose which violates, or which would be inconsistent with, the provisions of Regulation T, U or X
of the Board of Governors of the Federal Reserve System as now and from time to time hereafter in
effect. The Borrower and its Subsidiaries taken as a group do not own “margin stock” except as
identified in the financial statements referred to in Section 3.1 and the aggregate value
of all “margin stock” owned by the Borrower and its Subsidiaries taken as a group does not exceed
25% of the value of their assets.

Section 3.9 ERISA.

Except as set forth in Schedule 3.9, neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or Section 302 of ERISA) has
occurred during the five-year period prior to the date on which this representation is made or
deemed made with respect to any Plan, and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code, except to the extent that any such occurrence or
failure to comply would not reasonably be expected to have a Material Adverse Effect. No
termination of a Single Employer Plan has occurred resulting in any liability that has remained
underfunded, and no Lien in favor of the PBGC or a Plan has arisen, during such five-year period
which could reasonably be expected to have a Material Adverse Effect. The present value of all
accrued benefits under each Single Employer Plan (based on those assumptions used to fund such
Plans) did not, as of the last annual valuation date prior to the date on which this representation
is made or deemed made, exceed the value of the assets of such Plan allocable to such accrued
benefits by an amount which, as determined in accordance with GAAP, could

 

44

 

reasonably be expected to have a Material Adverse Effect. Neither the Borrower nor any
Commonly Controlled Entity is currently subject to any liability for a complete or partial
withdrawal from a Multiemployer Plan which could reasonably be expected to have a Material Adverse
Effect.

Section 3.10 Environmental Matters.

Except as could not reasonably be expected to have a Material Adverse Effect:

(a) To the knowledge of the Borrower and the other Credit Parties, the facilities and
properties comprising real estate owned, leased or operated by the Borrower and the other
Credit Parties or any of their Subsidiaries (the “Properties”) do not contain any
Materials of Environmental Concern in amounts or concentrations which (i) constitute a
violation of, or (ii) could give rise to liability under, any Environmental Law.

(b) To the knowledge of the Borrower and the other Credit Parties, the Properties and
all operations of the Borrower and the other Credit Parties and/or their Subsidiaries at the
Properties are in compliance, and have in the last five years been in compliance, in all
material respects with all applicable Environmental Laws, and there is no contamination at,
under or about the Properties or violation of any Environmental Law with respect to the
Properties or the business operated by the Borrower and the other Credit Parties or any of
their Subsidiaries (the “Business”).

(c) Neither the Borrower nor any of the other Credit Parties has received any written
or actual notice of violation, alleged violation, non-compliance, liability or potential
liability regarding environmental matters or compliance with Environmental Laws with regard
to any of the Properties or the Business, nor does the Borrower or any of the other Credit
Parties nor any of their Subsidiaries have knowledge or reason to believe that any such
notice will be received or is being threatened.

(d) To the knowledge of the Borrower and the other Credit Parties, Materials of
Environmental Concern have not been transported or disposed of from the Properties in
violation of, or in a manner or to a location which could give rise to liability under any
Environmental Law, nor have any Materials of Environmental Concern been generated, treated,
stored or disposed of at, on or under any of the Properties in violation of, or in a manner
that could give rise to liability under, any applicable Environmental Law.

(e) No judicial proceeding or governmental or administrative action is pending or, to
the knowledge of the Borrower and the other Credit Parties, threatened, under any
Environmental Law to which the Borrower or any other Credit Party or any Subsidiary is or
will be named as a party with respect to the Properties or the Business, nor are there any
consent decrees or other decrees, consent orders, administrative orders or other orders, or
other administrative or judicial requirements outstanding under any Environmental Law with
respect to the Properties or the Business.

(f) To the knowledge of the Borrower and the other Credit Parties, there has been no
release or threat of release of Materials of Environmental Concern at or from the

 

45

 

Properties, or arising from or related to the operations of the Borrower or any other
Credit Party or any Subsidiary in connection with the Properties or otherwise in connection
with the Business, in violation of or in amounts or in a manner that could give rise to
liability under Environmental Laws.

Section 3.11 Purpose of Loans.

The proceeds of the Loans have been or will be used (i) to repay certain existing Indebtedness
of the Borrower, (ii) to finance Permitted Acquisitions, (iii) to finance the repurchase of Capital
Stock of the Borrower as permitted under Section 6.12 and (iv) to provide for working
capital and other general corporate purposes.

Section 3.12 Subsidiaries.

Set forth on Schedule 3.12 is a complete and accurate list of all direct and indirect
Subsidiaries of the Credit Parties as of the Closing Date. Information on the attached Schedule
includes state of incorporation; the number of shares of each class of Capital Stock or other
equity interests outstanding; the number and percentage of outstanding shares of each class of
stock; and the number and effect, if exercised, of all outstanding options, warrants, rights of
conversion or purchase and similar rights. The outstanding Capital Stock and other equity
interests of all such Subsidiaries is validly issued, fully paid and non-assessable and is owned,
free and clear of all Liens (other than those arising under or contemplated in connection with the
Credit Documents).

Section 3.13 Ownership.

Each of the Credit Parties and its Subsidiaries is the owner of, and has transferable title
to, or a valid leasehold interest in, all of its respective assets except as may be permitted
pursuant to Section 6.14 hereof and none of such assets is subject to any Lien other than
Permitted Liens.

Section 3.14 Indebtedness.

Except as otherwise permitted under Section 6.1, the Borrower and its Subsidiaries
have no Indebtedness.

Section 3.15 Taxes.

Each of the Borrower and its Subsidiaries has filed, or caused to be filed, all tax returns
(federal, state, local and foreign) required to be filed and paid (a) all amounts of taxes shown
thereon to be due (including interest and penalties) and (b) all other taxes, fees, assessments and
other governmental charges (including mortgage recording taxes, documentary stamp taxes and
intangibles taxes) owing by it, except for such taxes (i) which are not yet delinquent or (ii) that
are being contested in good faith and by proper proceedings, and against which adequate reserves
are being maintained in accordance with GAAP. Neither the Borrower nor any of its Subsidiaries is
aware as of the Closing Date of any proposed tax assessments against it or any of its Subsidiaries
which could reasonably be expected to have a Material Adverse Effect.

 

46

 

Section 3.16 Intellectual Property.

Each of the Borrower and its Subsidiaries owns, or has the legal right to use, all trademarks,
trade names, copyrights, technology, know-how and processes necessary for each of them to conduct
its business as currently conducted. Set forth on Schedule 3.16 is a list of all material
Intellectual Property owned by each of the Borrower and its Subsidiaries as of the Closing Date (or
as of such later date on which the Borrower may update such schedule) or that the Borrower or any
of its Subsidiaries has the right to use other than corporate names and assumed names. Except as
provided on Schedule 3.16, no claim has been asserted and is pending by any Person
challenging or questioning the use of any such material Intellectual Property or the validity or
effectiveness of any such material Intellectual Property, nor does the Borrower or any of its
Subsidiaries know of any such claim, and, to the knowledge of the Borrower or any of its
Subsidiaries, the use of such material Intellectual Property by the Borrower or any of its
Subsidiaries does not infringe on the rights of any Person, except for such claims and
infringements that in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. Schedule 3.16 may be updated from time to time by the Borrower to include new
material Intellectual Property by giving written notice thereof to the Administrative Agent.

Section 3.17 Solvency.

The fair saleable value of the assets of the Borrower individually, and of the Credit Parties
taken as a whole, measured on a going concern basis, exceeds all probable liabilities, including
those to be incurred pursuant to this Credit Agreement. Neither the Borrower individually, nor the
Credit Parties taken as a whole (a) has unreasonably small capital in relation to the business in
which it is or proposes to be engaged or (b) has incurred, or believes that it will incur after
giving effect to the transactions contemplated by this Credit Agreement, debts beyond its ability
to pay such debts as they become due.

Section 3.18 Investments.

All Investments of each of the Borrower and its Subsidiaries are Permitted Investments.

Section 3.19 Location of Collateral.

Set forth on Schedule 3.19(a) is a list of the real estate of the Borrower and its
Subsidiaries with street address, county and state where located as of the Closing Date (or such
later date on which the Borrower may update such schedule). Set forth on Schedule 3.19(b)
is a list of all locations (other than Remote Sales Offices) where any tangible personal property
of the Borrower and its Subsidiaries is located as of the Closing Date (or such later date on which
the Borrower may update such schedule), including county and state where located. Set forth on
Schedule 3.19(c) is the chief executive office and principal place of business of each of
the Borrower and its Subsidiaries as of the Closing Date (or such later date on which the Borrower
may update such schedule). Schedule 3.19(a), 3.19(b) and 3.19(c) may be
updated from time to time by the Borrower to include new properties or locations by giving written
notice thereof to the Administrative Agent (in which event the Borrower shall use its commercially
reasonable efforts to deliver to the Administrative Agent, promptly after giving such written
notice, a
landlord lien waiver letter in form and substance reasonably acceptable to the Administrative
Agent and the Borrower from each of the landlords of those new locations).

 

47

 

Section 3.20 No Burdensome Restrictions.

None of the Borrower or any of its Subsidiaries is a party to any agreement or instrument or
subject to any other obligation or any charter or corporate restriction or any provision of any
applicable law, rule or regulation which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

Section 3.21 Brokers’ Fees.

None of the Borrower or any of its Subsidiaries has any obligation to any Person in respect of
any finder’s, broker’s, investment banking or other similar fee in connection with any of the
transactions contemplated under the Credit Documents other than the closing and other fees payable
pursuant to this Credit Agreement.

Section 3.22 Labor Matters.

There are no collective bargaining agreements or Multiemployer Plans covering the employees of
the Borrower or any of its Subsidiaries as of the Closing Date, other than as set forth in
Schedule 3.22 hereto, and none of the Borrower or any of its Subsidiaries as of the Closing
Date (i) has suffered any strikes, walkouts, work stoppages or other material labor difficulty
within the last three years or since the date of acquisition of such Subsidiary, whichever is
later, other than as set forth in Schedule 3.22 hereto or (ii) has knowledge of any
potential or pending strike, walkout or work stoppage, which could reasonably be expected to have a
Material Adverse Effect.

Section 3.23 Accuracy and Completeness of Information.

All factual information heretofore or contemporaneously furnished by or on behalf of any
Credit Party or any of its Subsidiaries to the Administrative Agent or any Lender for purposes of
or in connection with this Agreement or any other Credit Document, or any transaction contemplated
hereby or thereby, is true and accurate in all material respects and not incomplete by omitting to
state any material fact necessary to make such information not misleading when taken together with
all other information provided to Lender. There is no fact now known to the Borrower, any other
Credit Party or any of their Subsidiaries which has, or could reasonably be expected to have, a
Material Adverse Effect which fact has not been set forth herein, in the financial statements of
the Borrower and its Subsidiaries furnished to the Administrative Agent and/or the Lenders, or in
any certificate, opinion or other written statement made or furnished by any Credit Party to the
Administrative Agent and/or the Lenders.

Section 3.24 Material Contracts.

Set forth on Schedule 3.24 is a list of the Material Contracts of each of the Credit
Parties. Such contracts are in full force and effect as of the Closing Date.

 

48

 

Section 3.25 Security Documents.

The Security Documents create valid security interests in, and Liens on, the Collateral
purported to be covered thereby, which security interests and Liens are currently (or will be, upon
the filing of appropriate financing statements and the recordation of the applicable Mortgage
Instruments in each case in favor of JPM Chase, as Collateral Administrative Agent for the Lenders)
perfected security interests and Liens, prior to all other Liens other than Permitted Liens.

Section 3.26 Insurance.

As of the Closing Date, the insurance coverage of the Credit Parties is outlined as to
carrier, policy number, expiration date, type and amount on Schedule 5.5(b). The Credit
Parties maintain insurance in accordance in at least such amounts and against at least such risks
as are usually insured against in the same general area by companies engaged in the same or similar
business.

ARTICLE IV

CONDITIONS PRECEDENT

Section 4.1 Conditions to Closing Date and Initial Revolving Loans.

This Agreement shall become effective upon, and the obligation of each Lender to make the
initial Revolving Loans on the Closing Date is subject to, the satisfaction of the following
conditions precedent:

(a) Execution of Agreement. The Administrative Agent shall have received (i)
counterparts of this Agreement executed by a duly authorized officer of each party hereto,
(ii) for the account of each Lender, a Revolving Note, (iii) for the account of the
Swingline Lender, a Swingline Note and (iii) counterparts of the Security Agreement and the
Pledge Agreement, in each case conforming to the requirements of this Agreement and executed
by duly authorized officers of the Credit Parties.

(b) Authority Documents. Except as set forth on Schedule 3.3, the
Administrative Agent shall have received the following:

(i) Articles of Incorporation. Copies of the articles or certificate
of incorporation of each Credit Party certified to be true and complete as of a
recent date by the appropriate governmental authority of the state of its
incorporation.

(ii) Resolutions. Copies of resolutions of the board of directors of
each Credit Party approving and adopting the Credit Documents, the transactions
contemplated therein and authorizing execution and delivery thereof, certified by an
officer of such Credit Party as of the Closing Date to be true and correct and in
force and effect as of such date.

 

49

 

(iii) Bylaws. A copy of the bylaws of each Credit Party certified by
an officer of such Credit Party as of the Closing Date to be true and correct and in
force and effect as of such date.

(iv) Good Standing. Copies of (i) certificates of good standing,
existence or its equivalent with respect to each Credit Party certified as of a
recent date by the appropriate governmental authorities of the state of
incorporation and each other state in which the failure to so qualify and be in good
standing could reasonably be expected to have a Material Adverse Effect on the
business or operations of the Borrower and its Subsidiaries in such state and (ii) a
certificate indicating payment of all corporate franchise taxes certified as of a
recent date by the appropriate governmental taxing authorities.

(v) Incumbency. An incumbency certificate of each Credit Party
certified by a secretary or assistant secretary to be true and correct as of the
Closing Date.

(c) Legal Opinions of Counsel. The Administrative Agent shall have received an
opinion of Winstead Sechrest & Minick P.C., counsel for the Credit Parties, dated the
Closing Date and addressed to the Administrative Agent and the Lenders in the form attached
hereto as Schedule 4.1(c).

(d) Personal Property Collateral. The Administrative Agent shall have
received, in form and substance satisfactory to the Administrative Agent:

(i) searches of Uniform Commercial Code filings in the jurisdiction of the
chief executive office of each Credit Party and each jurisdiction where any
Collateral is located or where a filing would need to be made in order to perfect
the Administrative Agent’s security interest in the Collateral, copies of the
financing statements on file in such jurisdictions and evidence that no Liens exist
other than Permitted Liens;

(ii) duly executed UCC financing statements for each appropriate jurisdiction
as is necessary, in the Administrative Agent’s sole discretion, to perfect the
Administrative Agent’s security interest in the Collateral;

(iii) searches of ownership of intellectual property in the appropriate
governmental offices and such patent/trademark/copyright filings as requested by the
Administrative Agent in order to perfect the Administrative Agent’s security
interest in the Collateral consisting of intellectual property;

(iv) all stock certificates evidencing the Capital Stock pledged to the
Administrative Agent pursuant to the Pledge Agreement, together with duly executed
in blank undated stock powers attached thereto (unless, with respect to the pledged
Capital Stock of any Foreign Subsidiary, such stock powers are deemed unnecessary by
the Administrative Agent in its reasonable discretion under the law of the
jurisdiction of incorporation of such Person);

 

50

 

(v) all instruments and chattel paper evidencing obligations in excess of
$100,000 in the aggregate in the possession of any of the Credit Parties, together
with allonges or assignments as may be necessary or appropriate to perfect the
Administrative Agent’s security interest in such Collateral;

(vi) duly executed consents as are necessary, in the Administrative Agent’s
sole discretion, to perfect the Lenders’ security interest in the Collateral; and

(vii) in the case of any personal property Collateral located at premises
leased by a Credit Party, such estoppel letters, consents and waivers from the
landlords on such real property as may be required by and in form and substance
satisfactory to the Administrative Agent.

(e) Liability and Casualty Insurance. The Administrative Agent shall have
received copies of insurance policies or certificates of insurance evidencing liability and
casualty insurance meeting the requirements set forth herein or in the Security Documents.
The Administrative Agent shall be named as loss payee and additional insured on all such
insurance policies for the benefit of the Lenders.

(f) Intentionally Left Blank.

(g) Litigation. There shall not exist any pending or threatened litigation,
proceeding, injunction, order, claim or investigation affecting or relating to Borrower or
any of its Subsidiaries or the transactions contemplated by this Agreement, or the other
Credit Documents that in the reasonable judgment of the Administrative Agent could
materially adversely affect the Borrower or any of its Subsidiaries or the transactions
contemplated by this Agreement or the other Credit Documents, that has not been settled,
dismissed, vacated, discharged or terminated prior to the Closing Date.

(h) Solvency Evidence. The Administrative Agent shall have received an
officer’s certificate prepared by the chief accounting officer of the Borrower as to the
financial condition, solvency and related matters of the Borrower individually, and the
Credit Parties taken as a whole, in each case after giving effect to the initial borrowings
under the Credit Documents, in substantially the form of Schedule 4.1(h) hereto.

(i) Account Designation Letter. The Administrative Agent shall have received
the executed Account Designation Letter in the form of Schedule 1.1(a) hereto.

(j) Material Contracts. The Administrative Agent shall have received and
reviewed to its satisfaction all Material Contracts of the Credit Parties.

(k) Corporate Structure. The corporate, capital and ownership structure of the
Borrower and the other Credit Parties shall be as described in Schedule 3.12. The
Administrative Agent shall be satisfied with the management structure, legal structure,
voting control, liquidity, total leverage and total capitalization of the Borrower and
the other Credit Parties as of the Closing Date.

 

51

 

(l) Government Consent. The Administrative Agent shall have received evidence
that all governmental, shareholder and material third party consents and approvals necessary
in connection with the transactions contemplated hereby have been obtained and all
applicable waiting periods have expired without any action being taken by any authority that
could restrain, prevent or impose any material adverse conditions on the transactions or
that could seek or threaten any of the foregoing.

(m) Compliance with Laws. The transactions contemplated hereby shall be in
compliance with all applicable laws and regulations (including all applicable securities and
banking laws, rules and regulations).

(n) Bankruptcy. There shall be no bankruptcy or insolvency proceedings with
respect to the Borrower or any of its Subsidiaries.

(o) Financial Information. The Administrative Agent shall have received copies
of the financial information referred to in Section 3.1 hereof, each in form and
substance satisfactory to the Administrative Agent.

(p) Material Adverse Change. Since March 31, 2006, no development or event
which has had or could reasonably be expected to have a Material Adverse Effect shall have
occurred.

(q) Due Diligence. The Administrative Agent and the Arranger shall have
completed, in form and scope satisfactory thereto, their due diligence on the Credit
Parties.

(r) Environmental Reports. The Administrative Agent shall have received
satisfactory environmental reviews of all real property owned by the Credit Parties.

(s) Officer’s Certificates. The Administrative Agent shall have received a
certificate or certificates executed by a responsible officer of the Borrower as of the
Closing Date stating that (i) no action, suit, investigation or proceeding is pending or, to
the knowledge of any Credit Party, threatened in any court or before any arbitrator or
governmental instrumentality that purports to affect any Credit Party or any transaction
contemplated by the Credit Documents, if such action, suit, investigation or proceeding
could reasonably be expected to have a Material Adverse Effect and (ii) immediately after
giving effect to this Credit Agreement, the other Credit Documents and all the transactions
contemplated therein to occur on such date, (A) no Default or Event of Default exists, (B)
all representations and warranties contained herein and in the other Credit Documents are
true and correct in all material respects, and (C) the Credit Parties are in compliance with
each of the financial covenants set forth in Section 5.9.

 

52

 

(t) Financial Covenant Compliance Certificate. The Administrative Agent shall
have received a certificate dated the Closing Date in substantially the form of
Schedule 4.1(t) executed by a responsible officer of the Borrower demonstrating
compliance with the financial covenants set forth in Section 5.9 for the last twelve
consecutive calendar month period ending on June 30, 2006.

(u) Environmental Certificate. The Administrative Agent shall have received a
certificate executed by a Responsible Officer of the Borrower as of the Closing Date stating
that, to the best of his knowledge and except as could not reasonably be expected to have a
Material Adverse Effect, (a) the Properties do not contain any Materials of Environmental
Concern in amounts or concentrations which (i) constitute a violation of, or (ii) would give
rise to liability under, any Environmental Law; (b) the Properties and all operations of the
Borrower and the other Credit Parties and/or their Subsidiaries at the Properties are in
compliance, and have in the last five years or since the date of acquisition of such
Subsidiary, whichever is later, been in compliance, in all material respects with all
applicable Environmental Laws, and there is no contamination at, under or about the
Properties or violation of any Environmental Law with respect to the Properties or Business;
(c) neither the Borrower nor any of the other Credit Parties has received any written notice
of violation, alleged violation, non-compliance, liability or potential liability regarding
compliance with Environmental Laws with regard to any of the Properties or the Business, nor
does the Borrower or any of the other Credit Parties nor any of their Subsidiaries have any
awareness of or reason to believe that any such notice will be received or is being
threatened; (d) Materials of Environmental Concern have not been transported or disposed of
from the Properties in violation of, or in a manner or to a location which would give rise
to liability under any Environmental Law, nor have any Materials of Environmental Concern
been generated, treated, stored or disposed of at, on or under any of the Properties in
violation of, or in a manner that would give rise to liability under, any applicable
Environmental Law; (e) no judicial proceeding or governmental or administrative action is
pending or, to the knowledge of the Borrower and the other Credit Parties, threatened, under
any Environmental Law to which the Borrower or any other Credit Party or any Subsidiary is
or will be named as a party with respect to the Properties or the Business, nor are there
any consent decrees or other decrees, consent orders, administrative orders or other orders,
or other binding and enforceable Requirements of Law outstanding under any Environmental Law
applicable to the Properties or the Business; and (f) there has been no release or threat of
release of Materials of Environmental Concern at or from the Properties, or arising from or
related to the operations of the Borrower or any other Credit Party or any Subsidiary in
connection with the Properties, in violation of or in amounts or in a manner that would give
rise to liability under Environmental Laws.

(v) Additional Matters. All other documents and legal matters in connection
with the transactions contemplated by this Agreement shall be reasonably satisfactory in
form and substance to the Administrative Agent and its counsel.

 

53

 

Section 4.2 Conditions to All Extensions of Credit.

The obligation of each Lender to make any Extension of Credit hereunder is subject to the
satisfaction of the following conditions precedent on the date of making such Extension of Credit:

(a) Representations and Warranties. The representations and warranties made by
the Credit Parties herein, in the Security Documents or which are contained in any
certificate furnished at any time under or in connection herewith shall be true and correct
in all material respects on and as of the date of such Extension of Credit as if made on and
as of such date (except for those which expressly relate to an earlier date).

(b) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the Extension of Credit to
be made on such date unless such Default or Event of Default shall have been waived in
accordance with this Agreement.

(c) Compliance with Commitments. Immediately after giving effect to the making
of any such Extension of Credit (and the application of the proceeds thereof), (i) the sum
of the aggregate principal amount of outstanding Revolving Loans plus Swingline
Loans plus LOC Obligations shall not exceed the aggregate Revolving Committed
Amount, (ii) the Swingline Loans shall not exceed the Swingline Commitment and (iii) the LOC
Obligations shall not exceed the LOC Committed Amount.

(d) Additional Conditions to Revolving Loans. If such Loan is made pursuant to
Section 2.1, all conditions set forth in such Section shall have been satisfied.

(e) Additional Conditions to Swingline Loan. If such Loan is made pursuant to
Section 2.2, all conditions set forth in such Section shall have been satisfied.

(f) Additional Conditions to Letters of Credit. If such Extension of Credit is
made pursuant to Section 2.3, all conditions set forth in such Section shall have
been satisfied.

Each request for an Extension of Credit and each acceptance by the Borrower of any such
Extension of Credit shall be deemed to constitute a representation and warranty by the Borrower as
of the date of such Extension of Credit that the applicable conditions in paragraphs (a)
through (f) of this Section have been satisfied.

 

54

 

ARTICLE V

AFFIRMATIVE COVENANTS

Each Credit Party hereby covenants and agrees that on the Closing Date, and thereafter for so
long as this Agreement is in effect and until the Commitments have terminated, no Note remains
outstanding and unpaid and the Credit Party Obligations, together with interest,
Commitment Fees and all other amounts owing to the Administrative Agent or any Lender
hereunder, are paid in full, the Borrower shall, and shall cause each of its Subsidiaries (other
than in the case of Sections 5.1, 5.2 or 5.7 hereof), to:

Section 5.1 Financial Statements.

Furnish to the Administrative Agent and each of the Lenders:

(a) Annual Financial Statements. 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 consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such fiscal
year and the related consolidated statements of income and retained earnings and of cash
flows of the Borrower and its consolidated Subsidiaries for such year, which consolidated
statements shall be audited by a firm of independent certified public accountants of
nationally recognized standing reasonably acceptable to the Administrative Agent, setting
forth in each case in comparative form the figures for the previous year, reported on
without a “going concern” or like qualification or exception, or qualification indicating
that the scope of the audit was inadequate to permit such independent certified public
accountants to certify such financial statements without such qualification;

(b) Quarterly Financial Statements. As soon as available and in any event
within sixty (60) days after the end of each of the first three fiscal quarters of the
Borrower, a company-prepared consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as at the end of such period and related company-prepared consolidated
statements of income and retained earnings and of cash flows for the Borrower and its
consolidated Subsidiaries for such quarterly period and for the portion of the fiscal year
ending with such period, in each case setting forth in comparative form consolidated figures
for the corresponding period or periods of the preceding fiscal year (subject to normal
year-end audit adjustments);

(c) Annual Budget Plan and Financial Projections. As soon as available, but in
any event within sixty (60) days after the beginning of each fiscal year, a copy of detailed
projections of the income statements, cash flow and balance sheets of the Borrower and its
consolidated Subsidiaries for each fiscal year through the Maturity Date, in form and detail
reasonably acceptable to the Administrative Agent and the Required Lenders, together with a
summary of the material assumptions made in the preparation of such annual budget or plan
and financial projections;

all such financial statements to be complete and correct in all material respects (subject, in the
case of interim statements, to normal recurring year-end audit adjustments) and to be prepared in
reasonable detail and, in the case of the annual and quarterly financial statements provided in
accordance with subsections (a) and (b) above, in accordance with GAAP applied
consistently throughout the periods reflected therein and further accompanied by a description of,
and an estimation of the effect on the financial statements on account of, a change, if any, in the
application of accounting principles as provided in Section 1.3.

 

55

 

Section 5.2 Certificates; Other Information.

Furnish to the Administrative Agent and each of the Lenders:

(a) concurrently with the delivery of the financial statements referred to in
Section 5.1(a) above, a certificate of the independent certified public accountants
reporting on such financial statements stating that in making the examination necessary
therefor no knowledge was obtained of any Default or Event of Default, except as specified
in such certificate;

(b) concurrently with the delivery of the financial statements referred to in
Sections 5.1(a) and 5.1(b) above, a certificate of a Responsible Officer
stating that, to the best of such Responsible Officer’s knowledge, each of the Credit
Parties during such period observed or performed in all material respects all of its
covenants and other agreements, and satisfied in all material respects every condition,
contained in this Agreement to be observed, performed or satisfied by it, and that such
Responsible Officer has obtained no knowledge of any Default or Event of Default except as
specified in such certificate and such certificate shall include the calculations in
reasonable detail required to indicate compliance with Sections 5.9, 6.1 and
6.4(b);

(c) within thirty (30) days after the same are sent, copies of all reports (other than
those otherwise provided pursuant to Section 5.1 and those which are of a
promotional nature) and other financial information which the Borrower sends to its
shareholders or noteholders generally, and within thirty days after the same are filed,
copies of all financial statements and non-confidential reports which the Borrower may make
to, or file with the Securities and Exchange Commission or any successor or analogous
Governmental Authority;

(d) within thirty (30) days after receipt thereof, a copy of any other report or
“management letter” submitted by independent accountants to the Borrower or any of its
Subsidiaries in connection with any annual, interim or special audit of the books of such
Person; and

(e) in connection with the consummation of any Permitted Acquisition, the Borrower
shall satisfy the following requirements:

(i) within thirty (30) days after completion of the acquisition, the Borrower
shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate
dated as of the expected closing date of the acquisition;

(ii) within thirty (30) days after completion of the acquisition, the Borrower
shall have delivered to the Administrative Agent a description of the acquisition
(including, without limitation, a description of the Person or assets to be
acquired, the purchase price, the manner of acquisition and the payment structure;

 

56

 

(iii) within thirty (30) days after completion of the acquisition, the Borrower
shall have delivered to the Administrative Agent all documents required pursuant to
Section 5.10 hereof pursuant to the provisions thereof;

(iv) the Borrower shall have delivered to the Administrative Agent copies of
the purchase agreement, merger agreement or similar governing document (including
schedules thereto to the extent such schedules are then available and relate to the
Borrower’s compliance with this Agreement, but excluding exhibit(s) and all opinions
of counsel to the seller and/or the Person to be acquired) with respect to the
acquisition within sixty (60) days after the closing of the acquisition; and

(v) within thirty (30) days after completion of the acquisition, the Borrower
shall have provided to the Administrative Agent such other documents reasonably
requested by the Administrative Agent in connection with such acquisition.

(f) in connection with the any acquisition other than a Permitted Acquisition, for
which the consent of the Required Lenders is required, the Borrower shall comply with the
following additional requirements:

(i) the Borrower shall have delivered to the Lenders, not less than ten (10)
business days prior to the proposed closing date of the acquisition, a description
of the acquisition (including, without limitation, a description of the Person or
assets to be acquired, the purchase price, the manner of acquisition, the payment
structure and any other terms and conditions reasonably required by the
Administrative Agent) and a draft copy of the purchase agreement, merger agreement
or similar governing document (including schedules thereto to the extent such
schedules are then available and relate to the Borrower’s compliance with this
Agreement, but excluding exhibits) with respect to the acquisition;

(ii) the Borrower shall have delivered to the Lenders, not less than ten (10)
business days prior to the proposed closing date of the acquisition, all due
diligence reports prepared by or on behalf of the Borrower or the applicable
Subsidiary thereof;

(iii) the Borrower shall have delivered to the Lenders, not less than ten (10)
business days prior to the proposed closing date of the acquisition, the historical
financial statements of the Person to be acquired, if applicable, for the most
recent two (2) year period and the most recent interim financial statements of the
Person to be acquired;

(iv) the Borrower shall have delivered to the Lenders, not less than ten (10)
business days prior to the proposed closing date of the acquisition, a projected
income statement, statement of cash flows and balance sheet (including, without
limitation, a summary of assumptions and pro forma adjustments made in
connection therewith) of the Person to be acquired, if applicable, prepared on
a quarterly basis for the ensuing three (3) year period;

 

57

 

(v) the Borrower shall have delivered to the Administrative Agent, on or before
the closing date of the acquisition, a Pro Forma Compliance Certificate;

(vi) the Borrower shall have delivered to the Administrative Agent all
documents required pursuant to Section 5.10 hereof pursuant to the
provisions thereof;

(vii) the Borrower shall deliver to the Administrative Agent, promptly after
the closing date of the acquisition, copies of all opinions of counsel to the
seller and/or the Person to be acquired which are delivered in connection with the
acquisition;

(viii) the Borrower shall have delivered to the Administrative Agent evidence
of the approval of the acquisition by the board of directors or equivalent governing
body (or the shareholders) of the seller and/or or the Person to be acquired within
twenty (20) days after the closing of the acquisition;

(ix) the Borrower shall have delivered to the Administrative Agent a copy of
the final purchase agreement, merger agreement or similar governing document
(including schedules thereto to the extent such schedules are then available and
relate to the Borrower’s compliance with this Agreement, but excluding exhibits)
with respect to the acquisition on the closing of the acquisition within twenty (20)
days after the closing of the acquisition; and

(x) the Borrower shall have provided to the Administrative Agent such other
documents reasonably requested by the Administrative Agent in connection with such
acquisition.

(g) promptly, such additional financial and other information as the Administrative
Agent, on behalf of any Lender, may from time to time reasonably request.

Section 5.3 Payment of Obligations.

Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, in accordance with industry practice (subject, where applicable, to specified
grace periods) all its material obligations of whatever nature and any additional costs that are
imposed as a result of any failure to so pay, discharge or otherwise satisfy such obligations,
except when the amount or validity of such obligations and costs is currently being contested in
good faith by appropriate proceedings and reserves, if applicable, in conformity with GAAP with
respect thereto have been provided on the books of the Borrower or its Subsidiaries as the case may
be.

 

58

 

Section 5.4 Conduct of Business and Maintenance of Existence.

Continue to engage in business of the same general type as now conducted by it on the Closing
Date and preserve, renew and keep in full force and effect its corporate existence (except for
transactions permitted by Section 6.6(b)) and take all reasonable action to maintain all
rights, privileges and franchises necessary or desirable in the normal conduct of its business and
comply with all Contractual Obligations and Requirements of Law applicable to it except to the
extent that failure to comply with this Section 5.4 could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.

Section 5.5 Maintenance of Property; Insurance.

(a) Keep all property useful and necessary in its business in good working order and
condition (immaterial portions of such property and ordinary wear and tear and obsolescence
excepted);

(b) Maintain with financially sound and reputable insurance companies insurance on all
its material property (including without limitation its material tangible Collateral) in at
least such amounts and against at least such risks as are usually insured against in the
same general area by companies engaged in the same or a similar business; and furnish to the
Administrative Agent, upon written request, full information as to the insurance carried;
provided, however, that the Borrower and its Subsidiaries may maintain self
insurance plans to the extent companies of similar size and in similar businesses do so.
The Administrative Agent shall be named as loss payee or mortgagee, as its interest may
appear, with respect to casualty policies and/or additional insured with respect to any
liability insurance providing coverage in respect of any Collateral, and each provider of
any such insurance shall agree, by endorsement upon the policy or policies issued by it or
by independent instruments furnished to the Administrative Agent, that it will give the
Administrative Agent thirty (30) days prior written notice before any such policy or
policies shall be altered or canceled, and that no act or default of the Borrower or any of
its Subsidiaries or any other Person shall affect the rights of the Administrative Agent or
the Lenders under such policy or policies. The insurance coverage of the Borrower and its
Subsidiaries as of the Closing Date is outlined as to carrier, policy number, expiration
date, type and amount on Schedule 5.5(b); and

(c) In case of any loss, damage to or destruction of a material portion of the
Collateral of any Credit Party or any part thereof, such Credit Party shall promptly give
written notice thereof to the Administrative Agent generally describing the nature and
extent of such loss, damage or destruction. In case of any loss, damage to or destruction
of the Collateral of any Credit Party or any part thereof such Credit Party will ensure that
the net insurance proceeds of any such event are collected and applied in accordance with
the applicable provisions of this Agreement.

 

59

 

Section 5.6 Inspection of Property; Books and Records; Discussions.

Keep proper books of records and account in which full, true and correct entries in compliance
with all Requirements of Law shall be made of all dealings and transactions in
relation to its businesses and activities and, in the case of Borrower, sufficient to permit
reporting in accordance with GAAP; and permit, during regular business hours and upon reasonable
notice by the Administrative Agent or any Lender, the Administrative Agent or any Lender to visit
and inspect any of its properties and examine and make abstracts from any of its books and records
(other than materials protected by the attorney-client privilege and materials which the Borrower
may not disclose without violation of a confidentiality obligation binding upon it) at any
reasonable time and as often as may reasonably be desired, and to discuss the business, operations,
properties and financial and other condition of the Borrower and its Subsidiaries with officers and
employees of the Borrower and its Subsidiaries and with their independent certified public
accountants.

Section 5.7 Notices.

Give notice in writing to the Administrative Agent (which shall promptly transmit such notice
to each Lender) of:

(a) promptly but in any event within two (2) Business Days after the Borrower knows or
has reason to know thereof of the occurrence of any Default or Event of Default;

(b) promptly, any default or event of default under any Contractual Obligation of the
Borrower or any of its Subsidiaries or Material Contracts which could reasonably be expected
to have a Material Adverse Effect;

(c) promptly, any litigation, or any investigation or proceeding known to the Borrower,
affecting the Borrower or any of its Subsidiaries which, if adversely determined, could
reasonably be expected to have a Material Adverse Effect;

(d) as soon as possible and in any event within thirty (30) days after the Borrower
knows or has reason to know: (i) the occurrence or expected occurrence of any Reportable
Event with respect to any Plan, a failure to make any required contribution to a Plan the
creation of any Lien in favor of the PBGC (other than a Permitted Lien) or a Plan or any
withdrawal from, or the termination, Reorganization or Insolvency of, any Multiemployer Plan
or (ii) the institution of proceedings or the taking of any other action by the PBGC or the
Borrower or any Commonly Controlled Entity or any Multiemployer Plan with respect to the
withdrawal from, or the terminating, Reorganization or Insolvency of any Plan; and

(e) promptly, any other development or event which could reasonably be expected to have
a Material Adverse Effect.

Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what action the Borrower
proposes to take with respect thereto. In the case of any notice of a Default or Event of Default,
the Borrower shall specify that such notice is a Default or Event of Default notice on the face
thereof.

 

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Section 5.8 Environmental Laws.

(a) Comply in all material respects with, and ensure compliance in all material
respects by all tenants and subtenants, if any, with, all applicable Environmental Laws and
obtain and comply in all material respects with and maintain, and ensure that all tenants
and subtenants obtain and comply in all material respects with and maintain, any and all
licenses, approvals, notifications, registrations or permits required by applicable
Environmental Laws, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect;

(b) Conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and promptly comply in
all material respects with all lawful orders and directives of all Governmental Authorities
regarding Environmental Laws except to the extent that the same are being contested in good
faith by appropriate proceedings and the pendency of such proceedings could not reasonably
be expected to have a Material Adverse Effect; and

(c) Defend, indemnify and hold harmless the Administrative Agent and the Lenders, and
their respective employees, agents, officers and directors, from and against any and all
claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of
whatever kind or nature known or unknown, contingent or otherwise, arising out of, or in any
way relating to the violation of, noncompliance with or liability under, any Environmental
Law applicable to the operations of the Borrower, any of its Subsidiaries or the Properties,
or any orders, requirements or demands of Governmental Authorities related thereto,
including, without limitation, reasonable attorney’s and consultant’s fees, investigation
and laboratory fees, response costs, court costs and litigation expenses, except to the
extent that any of the foregoing arise out of the gross negligence or willful misconduct of
any indemnified person (IT BEING THE INTENTION OF THIS PROVISION THAT SUCH INDEMNIFICATION
OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY THE
ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING INDEMNIFIED). The agreements in this
paragraph shall survive repayment of the Notes and all other amounts payable hereunder.

Section 5.9 Financial Covenants.

Commencing on the day immediately following the Closing Date, the Borrower shall, and shall
cause each other Credit Party to, comply with the following financial covenants:

(a) Leverage Ratio. The Leverage Ratio, as of the last day of each fiscal
quarter of the Borrower and its Subsidiaries, shall be less than or equal to 2.50 to 1.0.

(b) Interest Coverage Ratio. The Interest Coverage Ratio, as of the last day
of each fiscal quarter of the Borrower and its Subsidiaries occurring during the periods
indicated below, shall be greater than or equal to 1.50 to 1.0.

 

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(c) Consolidated Capital Expenditures. As of the end of each fiscal quarter of
the Borrower beginning with the fiscal quarter ending June 30, 2006, Consolidated Capital
Expenditures of the Borrower for the immediately preceding twelve month period shall not
exceed one hundred fifty percent (150%) of the last twelve month depreciation and
amortization of the Borrower and its consolidated Subsidiaries determined on a rolling four
fiscal quarter basis.

Section 5.10 Additional Guarantors.

The Credit Parties will cause each of their Domestic Subsidiaries, whether newly formed, after
acquired or otherwise existing, upon the creation or acquisition thereof, to become a Guarantor
hereunder by way of execution of a Joinder Agreement. The guaranty obligations of any such
Additional Credit Party shall be secured by, among other things, the Collateral of the Additional
Credit Party and a pledge of 100% of the Capital Stock or other equity interest of its Domestic
Subsidiaries and 65% of the Capital Stock or other equity interest of its first tier Foreign
Subsidiaries, and a pledge by the Borrower or other Credit Party which is the owner of the Capital
Stock or other equity interest in such Subsidiary of 100% of the Capital Stock if it is a Domestic
Subsidiary and 65% of its Capital Stock or other equity interest if it is a first tier Foreign
Subsidiary.

Section 5.11 Compliance with Law.

Each Credit Party will, and will cause each of its Subsidiaries to, comply with all laws,
rules, regulations and orders, and all applicable restrictions imposed by all Governmental
Authorities, applicable to it and its Property if noncompliance with any such law, rule,
regulation, order or restriction could reasonably be expected to have a Material Adverse Effect.

Section 5.12 Pledged Assets.

(a) Each Credit Party will cause 100% of the Capital Stock of each of its direct or
indirect Domestic Subsidiaries owned by such Credit Party and its Domestic Subsidiaries and
65% of the Capital Stock in each of the first tier Foreign Subsidiaries owned by such Credit
Party and its Domestic Subsidiaries to be subject at all times to a first priority,
perfected Lien (subject to Permitted Liens and in the case of Foreign Subsidiaries,
applicable foreign laws regarding security interest and perfection matters) in favor of the
Administrative Agent pursuant to the terms and conditions of the Security Documents or such
other security documents as the Administrative Agent shall reasonably request.

(b) If, subsequent to the Closing Date, a Credit Party shall (a) acquire any
Intellectual Property, securities, instruments, chattel paper or other personal property
required to be pledged to the Administrative Agent as Collateral hereunder or under any of
the Security Documents or (b) acquire or lease any real property, the Borrower shall
promptly (and in any event within ten (10) Business Days) after any Responsible Officer of a
Credit Party acquires knowledge of same notify the Administrative Agent of same. Each
Credit Party shall, and shall cause each of its Subsidiaries to, take such action at its own
expense as requested by the Administrative Agent (including, without limitation,

 

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any of the actions described in Section 4.1(d) or (e) hereof) to ensure
that the Administrative Agent has a first priority perfected Lien to secure the Credit Party
Obligations in (i) all personal property of the Credit Parties located in the United States
and (ii) to the extent deemed to be material by the Administrative Agent or the Required
Lenders in its or their sole reasonable discretion, all other personal property of the
Credit Parties, subject in each case only to Permitted Liens. Each Credit Party shall, and
shall cause each of its Subsidiaries to, adhere to the covenants regarding the location of
personal property as set forth in the Security Documents.

ARTICLE VI

NEGATIVE COVENANTS

The Borrower and each other Credit Party hereby covenants and agrees that on the Closing Date,
and thereafter for so long as this Agreement is in effect and until the Commitments have
terminated, no Note remains outstanding and unpaid and the Credit Party Obligations, together with
interest, Commitment Fees and all other amounts owing to the Administrative Agent or any Lender
hereunder, are paid in full that:

Section 6.1 Indebtedness.

The Credit Parties will not, nor will they permit any Subsidiary to, contract, create, incur,
assume or permit to exist any Indebtedness, except:

(a) Indebtedness arising or existing under this Agreement and the other Credit
Documents;

(b) Indebtedness of the Borrower and its Subsidiaries existing as of June 30, 2006 and
set out more specifically in Schedule 6.1(b) hereto and Indebtedness assumed after
June 30, 2006 in connection with acquisitions permitted under Section 6.6(c)
(provided that such Indebtedness was not incurred in connection with such acquisition and
any Liens existing in connection with such Indebtedness shall relate only to the assets
financed thereby), and renewals, refinancings or extensions of any of the above in a
principal amount not in excess of that outstanding as of the date of such renewal,
refinancing or extension;

(c) Indebtedness of the Borrower and its Subsidiaries incurred after June 30, 2006
consisting of purchase money Indebtedness incurred to provide all or a portion of the
purchase price or cost of construction of equipment (which may be funded up to, but not
later than, 180 days after the date of acquisition of the applicable asset or the date of
completion of construction, as the case may be) provided that (i) such Indebtedness when
incurred shall not exceed the purchase price or cost of construction of such equipment; (ii)
no such Indebtedness shall be refinanced for a principal amount in excess of the principal
balance outstanding thereon at the time of such refinancing (provided that separate purchase
money Indebtedness facilities may be aggregated in connection with any refinancing, in which
event the aggregate refinanced amount may be secured by all of the assets that secured such
separate facilities and, in such event, Agent shall, upon

 

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request by Borrower, execute lien subordination agreements whereby the Liens under the
Credit Documents are subordinated to the Liens securing the applicable refinancing and
otherwise in form and substance reasonably satisfactory to the Administrative Agent); and
(iii) the amount of such Indebtedness incurred pursuant to this Section 6.1(c) plus
the amount of the Indebtedness of the type described herein and set forth on Schedule
6.1(b) shall not exceed the greater of (x) $100,000,000 or (y) 100% of Pro Forma
Consolidated EBITDA of the Borrower and its consolidated Subsidiaries for the twelve month
period ending on the last day of the most recently ended fiscal quarter;

(d) Unsecured intercompany Indebtedness among the Borrower and any Credit Party;

(e) Indebtedness and obligations owing under Hedging Agreements relating to the Loans
hereunder and other Hedging Agreements entered into in order to manage existing or
anticipated interest rate, exchange rate or commodity price risks and not for speculative
purposes;

(f) Indebtedness and obligations of the Credit Parties owing under documentary letters
of credit for the purchase of goods or other merchandise (but not under standby, direct pay
or other letters of credit except for the Letters of Credit hereunder) generally;

(g) Indebtedness which may be deemed to exist pursuant to any performance, surety,
statutory, appeal or similar obligations obtained in the ordinary course of business;

(h) Guaranty Obligations permitted by Section 6.3;

(i) Other unsecured Indebtedness of the Borrower and its Subsidiaries incurred after
June 30, 2006 which does not exceed $15,000,000 in the aggregate at any time outstanding.

Section 6.2 Liens.

The Credit Parties will not, nor will they permit any Subsidiary to, contract, create, incur,
assume or permit to exist any Lien with respect to any of its property or assets of any kind
(whether real or personal, tangible or intangible), whether now owned or hereafter acquired, except
for Permitted Liens.

Section 6.3 Guaranty Obligations.

The Credit Parties will not, nor will they permit any Subsidiary to, enter into or otherwise
become or be liable in respect of any Guaranty Obligations (excluding specifically therefrom
endorsements in the ordinary course of business of negotiable instruments for deposit or
collection) except:

 

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(a) those in favor of the Lenders in connection with the Credit Party Obligations;

(b) Guaranty Obligations by the Borrower or its Subsidiaries of Indebtedness and other
obligations referred to in and permitted under Section 6.1 (except, as regards
Indebtedness under subsection (b) thereof, only if and to the extent such Indebtedness was
guaranteed on the Closing Date); and

(c) Other Guaranty Obligations which do not exceed $7,500,000 in the aggregate at any
time outstanding.

Section 6.4 Intentionally Left Blank

Section 6.5 Nature of Business.

Except as otherwise permitted in Section 6.6, the Borrower will not, nor will it
permit any Subsidiary to, alter the character of the business of the Borrower or its Subsidiaries
in any material respect from that conducted as of the Closing Date.

Section 6.6 Consolidation, Merger, Acquisitions, Sale or Purchase of Assets, etc.

The Borrower will not, nor will it permit any Subsidiary to,

(a) dissolve, liquidate or wind up its affairs, sell, transfer, lease (as lessor) or
otherwise dispose of its property or assets or agree to do so at a future time except the
following, without duplication, shall be expressly permitted:

(i) Specified Sales;

(ii) the sale, transfer, lease or other disposition of property or assets to an
unrelated party not in the ordinary course of business (other than Specified Sales),
where and to the extent that they are the result of a Recovery Event, so long as and
the net proceeds therefrom are, to the extent herein required, used to (A) repair or
replace damaged property or to purchase or otherwise acquire replacement assets or
property within 180 days of the receipt of such proceeds or (B) prepay the Loans in
accordance with Section 2.6(b)(iv);

(iii) the sale, lease, transfer or other disposition of machinery, parts,
equipment, land and buildings no longer used or useful in the conduct of the
business of the Borrower or any of its Subsidiaries, as appropriate, in its
reasonable discretion, so long as and the net proceeds therefrom are, to the extent
herein required, used to (A) repair or replace damaged property or to purchase or
otherwise acquire replacement assets or property, provided that such
purchase or acquisition is committed to within 180 days of receipt of the net
proceeds and such purchase or acquisition is consummated within 270 days of receipt
of such proceeds or (B) prepay the Loans in accordance with Section
2.6(b)(ii);

 

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(iv) the sale, lease, transfer or other disposition of assets of an acquired
company or business, provided such disposition is completed within 180 days of the
initial acquisition of such assets;

(v) the sale, lease or transfer of property or assets (at fair value) between
the Borrower and any Guarantor;

(vi) the sale, lease or transfer of property or assets from a Credit Party
other than the Borrower to another Credit Party;

(vii) the sale, lease or transfer of property or assets not otherwise permitted
by clauses (i) through (vi) above, provided the amount of such sale,
lease or transfer does not exceed $10,000,000 in the aggregate in any fiscal year;
and

(viii) the voluntary dissolution, liquidation or winding-up in connection with
a merger or sale of all or substantially all of the assets of a Subsidiary otherwise
permitted hereunder;

provided, that (a) with respect to subclause (vii) above at least 75% of the
consideration received therefor by the Borrower or any such Subsidiary is in the form of
cash or Cash Equivalents and (b) with respect to sales of assets permitted hereunder only,
the Administrative Agent shall be entitled, without the consent of the Required Lenders, to
release its Liens relating to the particular assets sold; or

(b) enter into any transaction of merger or consolidation, except for the merger or
consolidation of a Credit Party with and into another Credit Party, provided that if
the Borrower is a party thereto, the Borrower will be the surviving corporation; or

(c) enter into any transaction or series of transactions for the purposes of acquiring
all or a substantial portion of the assets, property and/or Capital Stock of any Person
other than, so long as no Default or Event of Default shall have occurred and be continuing
or would result therefrom on a Pro Forma Basis, the acquisition by any Credit Party of all
or a majority of the Capital Stock or other ownership interest in (or all or a substantial
portion of the assets, property and/or operations of) any Person provided that (i)
such acquisition is of a Person in the same or a similar line of business, (ii) the Borrower
can demonstrate, on a Pro Forma Basis, after giving effect to such acquisition that the
Leverage Ratio of the Borrower does not exceed 2.75 to 1.00, and (iii) the Borrower shall
comply with the requirements of Section 5.2(e) hereof.

Section 6.7 Advances, Investments and Loans.

The Borrower will not, nor will it permit any Subsidiary to, lend money or extend credit or
make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any
other interest in, or make any capital contribution to, any other Person except for Permitted
Investments.

 

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Section 6.8 Transactions with Affiliates.

Except as permitted in subsection (iv) of the definition of Permitted Investments and
customary compensation arrangements entered into in the ordinary course of business, the Borrower
will not, nor will it permit any Subsidiary to, enter into any transaction or series of
transactions, whether or not in the ordinary course of business, with any officer, director,
shareholder or Affiliate other than on terms and conditions substantially as favorable as would be
obtainable in a comparable arm’s-length transaction with a Person other than an officer, director,
shareholder or Affiliate.

Section 6.9 Ownership of Subsidiaries; Restrictions.

The Borrower will not, nor will it permit any Subsidiary to, create, form or acquire any
Subsidiaries, except for (A) first-tier Foreign Subsidiaries of any Credit Party or (B) Domestic
Subsidiaries which are joined (or those who participate in a merger in which another entity
survives and the survivor joins) as Additional Credit Parties within thirty (30) days in accordance
with the terms hereof. The Borrower will not sell, transfer, pledge or otherwise dispose of any
Capital Stock or other equity interests in any of it Subsidiaries, nor will it permit any of its
Subsidiaries to issue, sell, transfer, pledge or otherwise dispose of any of their Capital Stock or
other equity interests, except in a transaction permitted by Section 6.6.

Section 6.10 Fiscal Year; Organizational Documents; Material Contracts.

The Borrower will not, nor will it permit any of its Subsidiaries to, change its fiscal year
or accounting policies unless permitted by GAAP or, with respect to a Subsidiary, to change so as
to be in conformity with the fiscal year of the Borrower. The Borrower will not, nor will it
permit any Subsidiary to, amend, modify or change its articles of incorporation (or corporate
charter or other similar organizational document) or bylaws (or other similar document) without the
prior written consent of the Required Lenders unless such amendment, modification or change could
not reasonably be expected to materially adversely effect the interests of the Lenders hereunder.
The Borrower will not, nor will it permit any of its Subsidiaries to, without the prior written
consent of the Administrative Agent, amend, modify, waive any default of or breach under, cancel or
terminate or fail to renew or extend or permit the amendment, modification, waiver of any default
of or breach under or cancellation or termination of any of the Material Contracts unless such
amendment, modification, waiver, cancellation, termination or failure to renew or extend could not
reasonably be expected to have a Material Adverse Effect.

Section 6.11 Limitation on Restricted Actions.

The Borrower will not, nor will it permit any Subsidiary to, directly or indirectly, create or
otherwise cause or suffer to exist or become effective any encumbrance or restriction on the
ability of any such Person to (a) pay dividends or make any other distributions to any Credit Party
on its Capital Stock or with respect to any other interest or participation in, or measured by, its
profits, (b) pay any Indebtedness or other obligation owed to any Credit Party, (c) make loans or
advances to any Credit Party, (d) sell, lease or transfer any of its properties or assets to any
Credit Party, or (e) act as a Guarantor and pledge its assets pursuant to the Credit Documents

 

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or any renewals, refinancings, exchanges, refundings or extension thereof, except (in respect
of any of the matters referred to in clauses (a)-(d) above) for such encumbrances or
restrictions existing under or by reason of (i) this Agreement and the other Credit Documents, (ii)
applicable law, (iii) any document or instrument governing Indebtedness incurred pursuant to
Section 6.1(c); provided that any such restriction contained therein relates only
to the asset or assets constructed or acquired in connection therewith, or (iv) any Permitted Lien
or any document or instrument governing any Permitted Lien, provided that any such
restriction contained therein relates only to the asset or assets subject to such Permitted Lien.

Section 6.12 Restricted Payments.

The Borrower will not, nor will it permit any Subsidiary to, directly or indirectly, declare,
order, make or set apart any sum for or pay any Restricted Payment, except (a) to make dividends
payable solely in the same class of Capital Stock of such Person, (b) to make dividends or other
distributions payable to any Credit Party (directly or indirectly through Subsidiaries), (c) as
permitted by Section 6.13 and (d) so long as no Default or Event of Default shall have
occurred and be continuing, or would result therefrom, the Borrower may repurchase shares of its
Capital Stock during the term of this Agreement in any amount, so long as (i) the Borrower can
demonstrate, after giving effect to such purchase (A) compliance on a Pro Forma Basis with the
financial covenants set forth in Section 5.9 hereof, as set forth in a compliance
certificate and (B) the Leverage Ratio of the Borrower after giving effect to any such repurchase
on a Pro Forma Basis shall not exceed 2.00 to 1.00.

Section 6.13 Prepayments of Indebtedness, etc.

The Borrower will not, nor will it permit any Subsidiary to, after the issuance thereof, amend
or modify (or permit the amendment or modification of) any of the terms of any Subordinated
Indebtedness if such amendment or modification would add or change any terms in a manner adverse to
the issuer of such Subordinated Indebtedness, or shorten the final maturity or average life to
maturity or require any payment to be made sooner than originally scheduled or increase the
interest rate applicable thereto or change any subordination provision thereof.

Section 6.14 Sale Leasebacks.

The Borrower will not, nor will it permit any Subsidiary to, directly or indirectly, become or
remain liable as lessee or as guarantor or other surety with respect to any Capital Lease or any
“synthetic” lease or other off-balance sheet financing lease, of any property (whether real,
personal or mixed), whether now owned or hereafter acquired in excess of $2,500,000 in the
aggregate on an annual basis, (a) which the Borrower or any Subsidiary has sold or transferred or
is to sell or transfer to a Person which is not the Borrower or any Subsidiary or (b) which the
Borrower or any Subsidiary intends to use for substantially the same purpose as the property which
has been sold or is to be sold or transferred by the Borrower or any Subsidiary to another Person
in connection with such lease.

 

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Section 6.15 No Further Negative Pledges.

The Borrower will not, nor will it permit any Subsidiary to, enter into, assume or become
subject to any agreement prohibiting or otherwise restricting the creation or assumption of any
Lien upon its properties or assets, whether now owned or hereafter acquired, or requiring the grant
of any security for such obligation if security is given for some other obligation except (a)
pursuant to this Agreement and the other Credit Documents, (b) pursuant to applicable law, (c)
pursuant to any document or instrument governing Indebtedness incurred pursuant to Section
6.1(c); provided that any such restriction contained therein relates only to the asset
or assets constructed or acquired in connection therewith, and (d) in connection with any Permitted
Lien or any document or instrument governing any Permitted Lien; provided that any such
restriction contained therein relates only to the asset or assets subject to such Permitted Lien.

ARTICLE VII

EVENTS OF DEFAULT

Section 7.1 Events of Default.

An Event of Default shall exist upon the occurrence of any of the following specified events
(each an “Event of Default”):

(a) The Borrower shall fail to pay any principal on any Note when due in accordance
with the terms thereof or hereof; or the Borrower shall fail to reimburse the Issuing Lender
for any LOC Obligations when due in accordance with the terms hereof; or the Borrower shall
fail to pay any interest on any Note or any fee or other amount payable hereunder when due
in accordance with the terms thereof or hereof and any such failure shall continue
unremedied for three (3) Business Days (or any Guarantor shall fail to pay on the Guaranty
in respect of any of the foregoing or in respect of any other Guaranty Obligations
thereunder); or

(b) Any representation or warranty made or deemed made herein, in the Security
Documents or in any of the other Credit Documents or which is contained in any certificate,
document or financial or other statement furnished at any time under or in connection with
this Agreement shall prove to have been incorrect, false or misleading in any material
respect on or as of the date made or deemed made; or

(c) (i) Any Credit Party shall fail to perform, comply with or observe any term,
covenant or agreement applicable to it contained in Section 5.7(a), Section
5.9 or Article VI hereof; or (ii) any Credit Party shall fail to comply with any
other covenant, contained in this Credit Agreement or the other Credit Documents or any
other agreement, document or instrument among any Credit Party, the Administrative Agent and
the Lenders or executed by any Credit Party in favor of the Administrative Agent or the
Lenders (other than as described in Sections 7.1(a) or 7.1(c)(i) above), and
in the event such breach or failure to comply is capable of cure, is not cured within thirty
(30) days of its occurrence; or

 

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(d) Any Credit Party or any of its Subsidiaries shall (i) default in any payment of
principal of or interest on any Indebtedness (other than the Notes) in a principal amount
outstanding of at least $2,500,000 for any individual item of Indebtedness and $5,000,000 in
the aggregate for all such Indebtedness for the Borrower and its Subsidiaries beyond the
period of grace (not to exceed 10 days), if any, provided in the instrument or agreement
under which such Indebtedness was created; or (ii) default in the observance or performance
of any other agreement or condition relating to any Indebtedness in a principal amount
outstanding of at least $2,500,000 for any individual item of Indebtedness and $5,000,000 in
the aggregate for all such Indebtedness for the Borrower and its Subsidiaries or contained
in any instrument or agreement evidencing, securing or relating thereto, or any other event
shall occur or condition exist, the effect of which default or other event or condition is
to cause, or to permit the holder or holders of such Indebtedness or beneficiary or
beneficiaries of such Indebtedness (or a trustee or agent on behalf of such holder or
holders or beneficiary or beneficiaries) to cause, with the giving of notice if required,
such Indebtedness to become due prior to its stated maturity; or

(e) (i) The Borrower or any of its Subsidiaries shall commence any case, proceeding or
other action (A) under any existing or future law of any jurisdiction, domestic or foreign,
relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking (x) to have
an order for relief entered with respect to it or (y) to adjudicate it a bankrupt or
insolvent or (z) reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar official for it
or for all or any substantial part of its assets, or the Borrower or any of its Subsidiaries
shall make a general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Borrower or any of its Subsidiaries any case, proceeding or other
action of a nature referred to in clause (i) above which (A) results in the entry of
an order for relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 60 days; or (iii) there shall be commenced against
the Borrower or any of its Subsidiaries any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process against all or
any substantial part of its assets which results in the entry of an order for any such
relief which shall not have been vacated, discharged, or stayed or bonded pending appeal
within 60 days from the entry thereof; or (iv) the Borrower or any of its Subsidiaries shall
take any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clause (i), (ii), or
(iii) above; or (v) the Borrower or any of its Subsidiaries shall generally not, or
shall be unable to, or shall admit in writing its inability to, pay its debts as they become
due; or

(f) One or more judgments or decrees shall be entered against the Borrower or any of
its Subsidiaries involving in the aggregate a liability (to the extent not paid when due or
covered by insurance) of $1,000,000 or more and all such judgments or decrees shall not have
been paid and satisfied, vacated, discharged, stayed or bonded pending appeal within 10 days
from the entry thereof; or

 

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(g) (i) Any Person shall engage in any “prohibited transaction” (as defined in Section
406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated funding
deficiency” (as defined in Section 302 of ERISA), whether or not waived, shall exist with
respect to any Plan or any Lien in favor of the PBGC or a Plan (other than a Permitted Lien)
shall arise on the assets of the Borrower, or any of its Subsidiaries or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with respect to, or proceedings
shall commence to have a trustee appointed, or a trustee shall be appointed, to administer
or to terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the Required
Lenders, likely to result in the termination of such Plan for purposes of Title IV of ERISA,
(iv) any Single Employer Plan shall terminate for purposes of Title IV of ERISA, (v) the
Borrower, any of its Subsidiaries or any Commonly Controlled Entity shall, or in the
reasonable opinion of the Required Lenders is likely to, incur any liability in connection
with a withdrawal from, or the Insolvency or Reorganization of, any Multiemployer Plan or
(vi) any other similar event or condition shall occur or exist with respect to a Plan; and
in each case in clauses (i) through (vi) above, such event or condition,
together with all other such events or conditions, if any, could have a Material Adverse
Effect; or

(h) The Guaranty or any provision thereof shall cease to be in full force and effect or
any Guarantor or any Person acting by or on behalf of any Guarantor shall deny or disaffirm,
or fail to perform, any Guarantor’s obligations under the Guaranty;

(i) There shall occur a Change of Control; or

(j) Any other Credit Document shall fail to be in full force and effect or to give the
Administrative Agent and/or the Lenders the security interests, liens, rights, powers and
privileges purported to be created thereby (except as such documents may be terminated by
the Administrative Agent and/or the Lenders or no longer in force and effect in accordance
with the terms thereof, other than those indemnities and provisions which by their terms
shall survive).

Section 7.2 Acceleration; Remedies.

Upon the occurrence of an Event of Default, then, and in any such event, (a) if such event is
an Event of Default specified in Section 7.1(e) above, automatically the Commitments shall
immediately terminate and the Loans (with accrued interest thereon), and all other amounts under
the Credit Documents (including without limitation the maximum amount of all contingent liabilities
under Letters of Credit) shall immediately become due and payable, and (b) if such event is any
other Event of Default, either or both of the following actions may be taken: (i) with the written
consent of the Required Lenders, the Administrative Agent may, or upon the written request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower declare the Commitments
to be terminated forthwith, whereupon the Commitments shall immediately terminate; and (ii) the
Administrative Agent may, or upon the written request of the Required Lenders, the Administrative
Agent shall, by notice of default to the Borrower, declare the Loans (with accrued interest
thereon) and all other amounts owing under this Agreement and the Notes to be due and payable
forthwith and direct the Borrower to
pay to the Administrative Agent cash collateral as security for the LOC Obligations for subsequent
drawings under then outstanding Letters of Credit in an amount equal to the maximum amount which
may be drawn under Letters of Credit then outstanding, whereupon the same shall immediately become
due and payable.

 

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ARTICLE VIII

THE ADMINISTRATIVE AGENT

Section 8.1 Appointment; Nature of Relationship.

JPMORGAN CHASE BANK, N.A. is hereby appointed by each of the Lenders as its contractual
representative hereunder and under each other Credit Document, and each of the Lenders irrevocably
authorizes the Administrative Agent to act as the contractual representative of such Lender with
the rights and duties expressly set forth herein and in the other Credit Documents. The
Administrative Agent agrees to act as such contractual representative upon the express conditions
contained in this Article. Notwithstanding the use of the defined term “Administrative Agent,” it
is expressly understood and agreed that the Administrative Agent shall not have any fiduciary
responsibilities to any Lender by reason of this Agreement or any other Credit Document and that
the Administrative Agent is merely acting as the contractual representative of the Lenders with
only those duties as are expressly set forth in this Agreement and the other Credit Documents. In
its capacity as the Lenders’ contractual representative, the Administrative Agent (i) does not
hereby assume any fiduciary duties to any of the Lenders, (ii) is a “representative” of the Lenders
within the meaning of the term “secured party” as defined in the Texas Uniform Commercial Code and
(iii) is acting as an independent contractor, the rights and duties of which are limited to those
expressly set forth in this Agreement and the other Credit Documents. Each of the Lenders hereby
agrees to assert no claim against the Administrative Agent on any agency theory or any other theory
of liability for breach of fiduciary duty, all of which claims each Lender hereby waives.

Section 8.2 Powers.

The Administrative Agent shall have and may exercise such powers under the Credit Documents as
are specifically delegated to the Administrative Agent by the terms of each thereof, together with
such powers as are reasonably incidental thereto. The Administrative Agent shall have no implied
duties to the Lenders, or any obligation to the Lenders to take any action thereunder except any
action specifically provided by the Credit Documents to be taken by the Administrative Agent.

Section 8.3 General Immunity.

Neither the Administrative Agent nor any of its directors, officers, agents or employees shall
be liable to the Borrower, the Lenders or any Lender for any action taken or omitted to be taken by
it or them hereunder or under any other Credit Document or in connection herewith or therewith
except to the extent such action or inaction is determined in a final non-appealable judgment by a
court of competent jurisdiction to have arisen from the gross negligence or willful misconduct of
such Person (IT BEING THE INTENTION OF THIS PROVISION THAT
THERE SHALL BE NO LIABILITY ARISING SOLELY OUT OF OR BY REASON OF THE ORDINARY NEGLIGENCE OF
ANY OF THE PARTIES BEING REIMBURSED).

 

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Section 8.4 No Responsibility for Loans, Recitals, etc.

Neither the Administrative Agent nor any of its directors, officers, agents or employees shall
be responsible for or have any duty to ascertain, inquire into, or verify (a) any statement,
warranty or representation made in connection with any Credit Document or any borrowing hereunder;
(b) the performance or observance of any of the covenants or agreements of any obligor under any
Credit Document, including, without limitation, any agreement by an obligor to furnish information
directly to each Lender; (c) the satisfaction of any condition specified in Article IV,
except receipt of items required to be delivered solely to the Administrative Agent; (d) the
existence or possible existence of any Default or Event of Default; (e) the validity,
enforceability, effectiveness, sufficiency or genuineness of any Credit Document or any other
instrument or writing furnished in connection therewith; (f) the value, sufficiency, creation,
perfection or priority of any Lien in any collateral security; or (g) the financial condition of
the Borrower or any guarantor of any of the Obligations or of any of the Borrower’s or any such
guarantor’s respective Subsidiaries. The Administrative Agent shall have no duty to disclose to
the Lenders information that is not required to be furnished by the Borrower to the Administrative
Agent at such time, but is voluntarily furnished by the Borrower to the Administrative Agent
(either in its capacity as Administrative Agent or in its individual capacity).

Section 8.5 Acting on Instructions of Lenders.

The Administrative Agent shall in all cases be fully protected in acting, or in refraining
from acting, hereunder and under any other Credit Document in accordance with written instructions
signed by the Required Lenders, and such instructions and any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders. The Lenders hereby acknowledge that the
Administrative Agent shall be under no duty to take any discretionary action permitted to be taken
by it pursuant to the provisions of this Agreement or any other Credit Document unless it shall be
requested in writing to do so by the Required Lenders. The Administrative Agent shall be fully
justified in failing or refusing to take any action hereunder and under any other Credit Document
unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and
all liability, cost and expense that it may incur by reason of taking or continuing to take any
such action.

Section 8.6 Employment of Agents and Counsel.

The Administrative Agent may execute any of its duties as Administrative Agent hereunder and
under any other Credit Document by or through employees, agents, and attorneys in fact and shall
not be answerable to the Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys in fact selected by it with
reasonable care. The Administrative Agent shall be entitled to advice of counsel concerning the
contractual arrangement between the Administrative Agent and the Lenders and all matters pertaining
to the Administrative Agent’s duties hereunder and under any other Credit Document.

 

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Section 8.7 Reliance on Documents; Counsel.

The Administrative Agent shall be entitled to rely upon any Note, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex, electronic mail message, statement,
paper or document believed by it to be genuine and correct and to have been signed or sent by the
proper person or persons, and, in respect to legal matters, upon the opinion of counsel selected by
the Administrative Agent, which counsel may be employees of the Administrative Agent. For purposes
of determining compliance with the conditions specified in Article IV, each Lender that has
signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied
with, each document or other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice
from such Lender prior to the applicable date specifying its objection thereto.

Section 8.8 Administrative Agent’s Reimbursement and Indemnification.

The Lenders agree to reimburse and indemnify the Administrative Agent ratably in proportion to
their respective Revolving Commitments (or, if the Revolving Commitments have been terminated, in
proportion to their Revolving Commitments immediately prior to such termination) (i) for any
amounts not reimbursed by the Borrower for which the Administrative Agent is entitled to
reimbursement by the Borrower under the Credit Documents, (ii) for any other expenses incurred by
the Administrative Agent on behalf of the Lenders, in connection with the preparation, execution,
delivery, administration and enforcement of the Credit Documents (including, without limitation,
for any expenses incurred by the Administrative Agent in connection with any dispute between the
Administrative Agent and any Lender or between two or more of the Lenders) and (iii) for any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Administrative Agent in any way relating to or arising out of the Credit Documents or
any other document delivered in connection therewith or the transactions contemplated thereby
(including, without limitation, for any such amounts incurred by or asserted against the
Administrative Agent in connection with any dispute between the Administrative Agent and any Lender
or between two or more of the Lenders), or the enforcement of any of the terms of the Credit
Documents or of any such other documents, provided that (i) no Lender shall be liable for any of
the foregoing to the extent any of the foregoing is found in a final non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of
the Administrative Agent (IT BEING THE INTENTION OF THIS PROVISION THAT SUCH INDEMNIFICATION
OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY THE ORDINARY
NEGLIGENCE OF ANY OF THE PARTIES BEING INDEMNIFIED) and (ii) any indemnification required pursuant
to Section 2.16 shall, notwithstanding the provisions of this Section, be paid by the
relevant Lender in accordance with the provisions thereof. The obligations of the Lenders under
this Section shall survive payment of the Obligations and termination of this Agreement.

 

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Section 8.9 Notice of Default.

The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default hereunder unless the Administrative Agent has received written
notice from a Lender or the Borrower referring to this Agreement describing such Default or Event
of Default and stating that such notice is a “notice of default”. In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders.

Section 8.10 Rights as a Lender.

In the event the Administrative Agent is a Lender, the Administrative Agent shall have the
same rights and powers hereunder and under any other Credit Document with respect to its Commitment
and its Loans as any Lender and may exercise the same as though it were not the Administrative
Agent, and the term “Lender” or “Lenders” shall, at any time when the Administrative Agent is a
Lender, unless the context otherwise indicates, include the Administrative Agent in its individual
capacity. The Administrative Agent and its Affiliates may accept deposits from, lend money to, and
generally engage in any kind of trust, debt, equity or other transaction, in addition to those
contemplated by this Agreement or any other Credit Document, with the Borrower or any of its
Subsidiaries in which the Borrower or such Subsidiary is not restricted hereby from engaging with
any other Person. The Administrative Agent, in its individual capacity, is not obligated to remain
a Lender.

Section 8.11 Lender Credit Decision.

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

Section 8.12 Successor Administrative Agent.

The Administrative Agent may resign at any time by giving written notice thereof to the
Lenders and the Borrower, such resignation to be effective upon the appointment of a successor
Administrative Agent or, if no successor Administrative Agent has been appointed, forty-five days
after the retiring Administrative Agent gives notice of its intention to resign. The
Administrative Agent may be removed at any time with or without cause by written notice received by
the Administrative Agent from the Required Lenders, such removal to be effective on the date
specified by the Required Lenders. Upon any such resignation or removal, the Required Lenders
shall have the right to appoint, on behalf of the Borrower and the Lenders, a successor
Administrative Agent. If no successor Administrative Agent shall have been so appointed by the
Required Lenders within thirty days after the resigning Administrative

 

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Agent’s giving notice of its intention to resign, then the resigning Administrative Agent may appoint,
on behalf of the Borrower and the Lenders, a successor Administrative Agent. Notwithstanding the
previous sentence, the Administrative Agent may at any time without the consent of the Borrower or
any Lender, appoint any of its Affiliates which is a commercial bank as a successor Administrative
Agent hereunder. If the Administrative Agent has resigned or been removed and no successor
Administrative Agent has been appointed, the Lenders may perform all the duties of the
Administrative Agent hereunder and the Borrower shall make all payments in respect of the
Obligations to the applicable Lender and for all other purposes shall deal directly with the
Lenders. No successor Administrative Agent shall be deemed to be appointed hereunder until such
successor Administrative Agent has accepted the appointment. Any such successor Administrative
Agent shall be a commercial bank having capital and retained earnings of at least $100,000,000.
Upon the acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the resigning or removed
Administrative Agent. Upon the effectiveness of the resignation or removal of the Administrative
Agent, the resigning or removed Administrative Agent shall be discharged from its duties and
obligations hereunder and under the Credit Documents. After the effectiveness of the resignation
or removal of an Administrative Agent, the provisions of this Article shall continue in effect for
the benefit of such Administrative Agent in respect of any actions taken or omitted to be taken by
it while it was acting as the Administrative Agent hereunder and under the other Credit Documents.
In the event that there is a successor to the Administrative Agent by merger, or the Administrative
Agent assigns its duties and obligations to an Affiliate pursuant to this Section, then the term
“Prime Rate” as used in this Agreement shall mean the prime rate, base rate or other analogous rate
of the new Administrative Agent.

Section 8.13 Administrative Agent and Arranger Fees.

The Borrower agrees to pay to the Administrative Agent and the Arranger, for their respective
accounts, the fees agreed to by the Borrower, the Administrative Agent and the Arranger from time
to time.

Section 8.14 Delegation to Affiliates.

The Borrower and the Lenders agree that the Administrative Agent may delegate any of its
duties under this Agreement to any of its Affiliates. Any such Affiliate (and such Affiliate’s
directors, officers, agents and employees) which performs duties in connection with this Agreement
shall be entitled to the same benefits of the indemnification, waiver and other protective
provisions to which the Administrative Agent is entitled under this Agreement.

Section 8.15 Execution of Collateral Documents.

The Lenders hereby empower and authorize the Administrative Agent to execute and deliver to
the Borrower on their behalf the Security Documents and all related financing statements and any
financing statements, agreements, documents or instruments as shall be necessary or appropriate to
effect the purposes of the Security Documents.

 

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Section 8.16 Collateral Releases.

The Lenders hereby empower and authorize the Administrative Agent to execute and deliver to
the Borrower on their behalf any agreements, documents or instruments as shall be necessary or
appropriate to effect any releases of Collateral or subordinations of liens on the Collateral which
shall be permitted by the terms hereof or of any other Credit Document or which shall otherwise
have been approved by the Required Lenders (or, if required by the terms of this Agreement, all of
the Lenders) in writing.

Section 8.17 Documentation Agent.

The Documentation Agent shall not have any right, power, obligation, liability, responsibility
or duty under this Agreement other than those applicable to all Lenders as such. Without limiting
the foregoing, the Documentation Agent shall not have or be deemed to have a fiduciary relationship
with any Lender. Each Lender hereby makes the same acknowledgments with respect to the
Documentation Agent as it makes with respect to the Administrative Agent in Section 8.11.

ARTICLE IX

GUARANTY

Section 9.1 The Guaranty.

In order to induce the Lenders to enter into this Agreement and to extend credit hereunder and
in recognition of the direct benefits to be received by the Guarantors from the Extensions of
Credit hereunder, each of the Guarantors hereby agrees with the Administrative Agent and the
Lenders as follows: the Guarantor hereby unconditionally and irrevocably jointly and severally
guarantees as primary obligor and not merely as surety the full and prompt payment when due,
whether upon maturity, by acceleration or otherwise, of any and all Credit Party Obligations. If
any or all of the Credit Party Obligations becomes due and payable hereunder, each Guarantor
unconditionally promises to pay such indebtedness to the Administrative Agent and the Lenders, on
order, or demand, together with any and all reasonable expenses which may be incurred by the
Administrative Agent or the Lenders in collecting any of the Credit Party Obligations.

Notwithstanding any provision to the contrary contained herein or in any other of the Credit
Documents, to the extent the obligations of a Guarantor shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers) then the obligations of each such
Guarantor hereunder shall be limited to the maximum amount that is permissible under applicable law
(whether federal or state and including, without limitation, the Bankruptcy Code).

 

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Section 9.2 Bankruptcy.

Additionally, each of the Guarantors unconditionally and irrevocably guarantees jointly and
severally the payment of any and all indebtedness of the Borrower to the Lenders whether or
not due or payable by the Borrower upon the occurrence of any of the events specified in
Section 7.1(e), and unconditionally promises to pay such Credit Party Obligations to the
Administrative Agent for the account of the Lenders, or order, on demand, in lawful money of the
United States. Each of the Guarantors further agrees that to the extent that the Borrower or a
Guarantor shall make a payment or a transfer of an interest in any property to the Administrative
Agent or any Lender, which payment or transfer or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, or otherwise is avoided, and/or required to be repaid to
a Borrower or a Guarantor, the estate of the Borrower or a Guarantor, a trustee, receiver or any
other party under any bankruptcy law, state or federal law, common law or equitable cause, then to
the extent of such avoidance or repayment, the obligation or part thereof intended to be satisfied
shall be revived and continued in full force and effect as if said payment had not been made.

Section 9.3 Nature of Liability.

The liability of each Guarantor hereunder is exclusive and independent of any security for or
other guaranty of the indebtedness of the Borrower whether executed by any such Guarantor, any
other guarantor or by any other party, and no Guarantor’s liability hereunder shall be affected or
impaired by (a) any direction as to application of payment by the Borrower or by any other party,
or (b) any other continuing or other guaranty, undertaking or maximum liability of a guarantor or
of any other party as to the indebtedness of the Borrower, or (c) any payment on or in reduction of
any such other guaranty or undertaking, or (d) any dissolution, termination or increase, decrease
or change in personnel by the Borrower, or (e) any payment made to the Administrative Agent or the
Lenders on the indebtedness which the Administrative Agent or such Lenders repay the Borrower
pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor
relief proceeding, and each of the Guarantors waives any right to the deferral or modification of
its obligations hereunder by reason of any such proceeding.

Section 9.4 Independent Obligation.

The obligations of each Guarantor hereunder are independent of the obligations of any other
guarantor or the Borrower, and a separate action or actions may be brought and prosecuted against
each Guarantor whether or not action is brought against any other guarantor or a Borrower and
whether or not any other Guarantor or the Borrower is joined in any such action or actions.

Section 9.5 Authorization.

Each of the Guarantors authorizes the Administrative Agent and each Lender without notice or
demand (except as shall be required by applicable statute and cannot be waived), and without
affecting or impairing its liability hereunder, from time to time to (a) renew, compromise, extend,
increase, accelerate or otherwise change the time for payment of, or otherwise change the terms of
the indebtedness or any part thereof in accordance with this Agreement, including any increase or
decrease of the rate of interest thereon, (b) take and hold security from any guarantor or any
other party for the payment of this Guaranty or the indebtedness and exchange, enforce waive and
release any such security, (c) apply such security
and direct the order or manner of sale thereof
as the Administrative Agent and the Lenders in
their discretion may determine and (d) release or substitute any one or more endorsers,
guarantors, the Borrower or other obligors.

 

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Section 9.6 Reliance.

It is not necessary for the Administrative Agent or the Lenders to inquire into the capacity
or powers of the Borrower or the officers, directors, partners or agents acting or purporting to
act on their behalf, and any indebtedness made or created in reliance upon the professed exercise
of such powers shall be guaranteed hereunder.

Section 9.7 Waiver.

(a) Each of the Guarantors waives any right (except as shall be required by applicable
statute and cannot be waived) to require the Administrative Agent or any Lender to (i)
proceed against the Borrower, any other guarantor or any other party, (ii) proceed against
or exhaust any security held from the Borrower, any other guarantor or any other party, or
(iii) pursue any other remedy in the Administrative Agent’s or any Lender’s power
whatsoever. Each of the Guarantors waives any defense based on or arising out of any
defense of the Borrower, any other guarantor or any other party other than payment in full
of the indebtedness, including without limitation any defense based on or arising out of the
disability of the Borrower, any other guarantor or any other party, or the unenforceability
of the indebtedness or any part thereof from any cause, or the cessation from any cause of
the liability of the Borrower other than payment in full of the indebtedness. The
Administrative Agent or any of the Lenders may, at their election, foreclose on any security
held by the Administrative Agent or a Lender by one or more judicial or nonjudicial sales
(to the extent such sale is permitted by applicable law), or exercise any other right or
remedy the Administrative Agent and any Lender may have against the Borrower or any other
party, or any security, without affecting or impairing in any way the liability of any
Guarantor hereunder except to the extent the indebtedness has been paid. Each of the
Guarantors waives any defense arising out of any such election by the Administrative Agent
and each of the Lenders, even though such election operates to impair or extinguish any
right of reimbursement or subrogation or other right or remedy of the Guarantors against the
Borrower or any other party or any security.

(b) Each of the Guarantors waives all presentments, demands for performance, protests
and notices, including without limitation notices of nonperformance, notice of protest,
notices of dishonor, notices of acceptance of this Guaranty, and notices of the existence,
creation or incurring of new or additional indebtedness. Each Guarantor assumes all
responsibility for being and keeping itself informed of the Borrower’s financial condition
and assets, and of all other circumstances bearing upon the risk of nonpayment of the
indebtedness and the nature, scope and extent of the risks which such Guarantor assumes and
incurs hereunder, and agrees that neither the Administrative Agent nor any Lender shall have
any duty to advise such Guarantor of information known to it regarding such circumstances or
risks.

 

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(c) Each of the Guarantors hereby agrees it will not exercise any rights of subrogation
which it may at any time otherwise have as a result of this Guaranty
(whether contractual, under Section 509 of the U.S. Bankruptcy Code, or otherwise) to
the claims of the Lenders against the Borrower or any other guarantor of the indebtedness of
the Borrower owing to the Lenders (collectively, the “Other Parties”) and all
contractual, statutory or common law rights of reimbursement, contribution or indemnity from
any Other Party which it may at any time otherwise have as a result of this Guaranty until
such time as the Loans hereunder shall have been paid and the Commitments have been
terminated. Each of the Guarantors hereby further agrees not to exercise any right to
enforce any other remedy which the Administrative Agent and the Lenders now have or may
hereafter have against any Other Party, any endorser or any other guarantor of all or any
part of the indebtedness of the Borrower and any benefit of, and any right to participate
in, any security or collateral given to or for the benefit of the Lenders to secure payment
of the indebtedness of the Borrower until such time as the Loans hereunder shall have been
paid and the Commitments have been terminated.

Section 9.8 Limitation on Enforcement.

The Lenders agree that this Guaranty may be enforced only by the action of the Administrative
Agent acting upon the instructions of the Required Lenders and that no Lender shall have any right
individually to seek to enforce or to enforce this Guaranty, it being understood and agreed that
such rights and remedies may be exercised by the Administrative Agent for the benefit of the
Lenders upon the terms of this Agreement. The Lenders further agree that this Guaranty may not be
enforced against any director, officer, employee, stockholder or other equity holder of the
Guarantors.

Section 9.9 Confirmation of Payment.

The Administrative Agent and the Lenders will, upon request after payment of the indebtedness
and obligations which are the subject of this Guaranty and termination of the commitments relating
thereto, confirm to the Borrower, the Guarantors or any other Person that the such indebtedness and
obligations have been paid and the commitments relating thereto terminated, subject to the
provisions of Section 9.2.

ARTICLE X

BENEFIT OF AGREEMENT; ASSIGNMENT; PARTICIPATIONS

Section 10.1 Successors and Assigns.

The terms and provisions of the Credit Documents shall be binding upon and inure to the
benefit of the Borrower and the Lenders and their respective successors and assigns permitted
hereby, except that (i) the Borrower shall not have the right to assign its rights or obligations
under the Credit Documents without the prior written consent of each Lender, (ii) any assignment by
any Lender must be made in compliance with Section 10.3, and (iii) any transfer by
participation must be made in compliance with Section 10.2. Any attempted assignment or
transfer by any party not made in compliance with this Section 10.1 shall be null and void,

 

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unless such attempted assignment or transfer is treated as a participation in accordance with
Section 10.3(b). The parties to this Agreement acknowledge that clause (ii) of
this Section 10.1
relates only to absolute assignments and this Section 10.1 does not prohibit
assignments creating security interests, including, without limitation, (x) any pledge or
assignment by any Lender of all or any portion of its rights under this Agreement and any Note to a
Federal Reserve Bank or (y) in the case of a Lender which is an Approved Fund, any pledge or
assignment of all or any portion of its rights under this Agreement and any Note to its trustee in
support of its obligations to its trustee; provided, however, that no such pledge or assignment
creating a security interest shall release the transferor Lender from its obligations hereunder
unless and until the parties thereto have complied with the provisions of Section 10.3.
The Administrative Agent may treat the Person which made any Loan or which holds any Note as the
owner thereof for all purposes hereof unless and until such Person complies with Section
10.3; provided, however, that the Administrative Agent may in its discretion (but shall not be
required to) follow instructions from the Person which made any Loan or which holds any Note to
direct payments relating to such Loan or Note to another Person. Any assignee of the rights to any
Loan or any Note agrees by acceptance of such assignment to be bound by all the terms and
provisions of the Credit Documents. Any request, authority or consent of any Person, who at the
time of making such request or giving such authority or consent is the owner of the rights to any
Loan (whether or not a Note has been issued in evidence thereof), shall be conclusive and binding
on any subsequent holder or assignee of the rights to such Loan.

Section 10.2 Participations.

(a) Any Lender may at any time sell to one or more banks or other entities
(“Participants”) participating interests in any Loan owing to such Lender, any Note held by
such Lender, any Commitment of such Lender or any other interest of such Lender under the
Credit Documents. In the event of any such sale by a Lender of participating interests to a
Participant, such Lender’s obligations under the Credit Documents shall remain unchanged,
such Lender shall remain solely responsible to the other parties hereto for the performance
of such obligations, such Lender shall remain the owner of its Loans and the holder of any
Note issued to it in evidence thereof for all purposes under the Credit Documents, all
amounts payable by the Borrower under this Agreement shall be determined as if such Lender
had not sold such participating interests, and the Borrower and the Administrative Agent
shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under the Credit Documents.

(b) Each Lender shall retain the sole right to approve, without the consent of any
Participant, any amendment, modification or waiver of any provision of the Credit Documents
other than any amendment, modification or waiver with respect to any Loan or Commitment in
which such Participant has an interest which would require consent of all of the Lenders
pursuant to the terms of Section 11.1 or of any other Credit Document.

(c) The Borrower agrees that each Participant shall be deemed to have the right of
setoff provided in Section 11.6 in respect of its participating interest in amounts
owing under the Credit Documents to the same extent as if the amount of its participating
interest were owing directly to it as a Lender under the Credit Documents, provided that
each Lender shall retain the right of setoff provided in Section 11.6 with respect
to the

 

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amount of participating interests sold to each Participant. The Lenders agree to
share with each Participant, and each Participant, by exercising the right of setoff
provided in
Section 11.6, agrees to share with each Lender, any amount received pursuant to
the exercise of its right of setoff, such amounts to be shared in accordance with
Section 11.2 as if each Participant were a Lender. The Borrower further agrees that
each Participant shall be entitled to the benefits of Sections 2.15, 2.16
and 2.17 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 10.3, provided that (i) a Participant shall not be
entitled to receive any greater payment under Section 2.15 or 2.17 than the
Lender who sold the participating interest to such Participant would have received had it
retained such interest for its own account, unless the sale of such interest to such
Participant is made with the prior written consent of the Borrower, and (ii) any Participant
not incorporated under the laws of the United States of America or any State thereof agrees
to comply with the provisions of Section 2.17 to the same extent as if it were a
Lender.

Section 10.3 Assignments.

(a) Any Lender may at any time assign to one or more banks or other entities
(“Purchasers”) all or any part of its rights and obligations under the Credit Documents.
Such assignment shall be substantially in the form of Schedule 10.3 or in such other
form as may be agreed to by the parties thereto. Each such assignment with respect to a
Purchaser which is not a Lender or an Affiliate of a Lender or an Approved Fund shall either
be in an amount equal to the entire applicable Commitment and Loans of the assigning Lender
or (unless each of the Borrower and the Administrative Agent otherwise consents) be in an
aggregate amount not less than $5,000,000. The amount of the assignment shall be based on
the Commitment or outstanding Loans (if the Commitment has been terminated) subject to the
assignment, determined as of the date of such assignment or as of the “Trade Date,” if the
“Trade Date” is specified in the assignment.

(b) The consent of the Borrower shall be required prior to an assignment becoming
effective unless the Purchaser is a Lender, an Affiliate of a Lender or an Approved Fund,
provided that the consent of the Borrower shall not be required if a Default has occurred
and is continuing. The consent of the Administrative Agent shall be required prior to an
assignment becoming effective unless the Purchaser is a Lender with a Revolving Commitment
(in the case of an assignment of a Revolving Commitment) or is a Lender, an Affiliate of a
Lender or an Approved Fund (in the case of an assignment of any other Commitment or Loans).
The consent of the Issuing Bank shall be required prior to an assignment of a Revolving
Commitment becoming effective unless the Purchaser is a Lender with a Revolving Commitment.
Any consent required under this Section 10.3(b) shall not be unreasonably withheld
or delayed.

(c) Upon (i) delivery to the Administrative Agent of an assignment, together with any
consents required by Sections 10.2(a) and 10.2(b), and (ii) payment of a
$3,500 fee to the Administrative Agent for processing such assignment (unless such fee is
waived by the Administrative Agent), such assignment shall become effective on the effective
date specified in such assignment. The assignment shall contain a

 

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representation by the
Purchaser to the effect that none of the consideration used to make the purchase of the
Commitment and Loans under the applicable assignment agreement
constitutes “plan assets” as defined under ERISA and that the rights and interests of
the Purchaser in and under the Credit Documents will not be “plan assets” under ERISA. On
and after the effective date of such assignment, such Purchaser shall for all purposes be a
Lender party to this Agreement and any other Credit Document executed by or on behalf of the
Lenders and shall have all the rights and obligations of a Lender under the Credit
Documents, to the same extent as if it were an original party thereto, and the transferor
Lender shall be released with respect to the Commitment and Loans assigned to such Purchaser
without any further consent or action by the Borrower, the Lenders or the Administrative
Agent. In the case of an assignment covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a Lender hereunder but shall
continue to be entitled to the benefits of, and subject to, those provisions of this
Agreement and the other Credit Documents which survive payment of the Obligations and
termination of the applicable agreement. Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this Section 10.3
shall be treated for purposes of this Agreement as a sale by such Lender of a participation
in such rights and obligations in accordance with Section 10.2. Upon the
consummation of any assignment to a Purchaser pursuant to this Section 10.3(c) the
transferor Lender, the Administrative Agent and the Borrower shall, if the transferor Lender
or the Purchaser desires that its Loans be evidenced by Notes, make appropriate arrangements
so that new Notes or, as appropriate, replacement Notes are issued to such transferor Lender
and new Notes or, as appropriate, replacement Notes, are issued to such Purchaser, in each
case in principal amounts reflecting their respective Commitments, as adjusted pursuant to
such assignment.

(d) The Administrative Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at one of its offices in Houston, Texas a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitments of, and principal amounts of the Loans owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.
The Register shall be available for inspection by the Borrower at any reasonable time and
from time to time upon reasonable prior notice.

Section 10.4 Dissemination of Information.

The Borrower authorizes each Lender to disclose to any Participant or Purchaser or any other
Person acquiring an interest in the Credit Documents by operation of law (each a “Transferee”) and
any prospective Transferee any and all information in such Lender’s possession concerning the
creditworthiness of the Borrower and its Subsidiaries, including without limitation any information
contained in any Reports; provided that each Transferee and prospective Transferee agrees in
writing to be bound by Section 11.15 of this Agreement.

 

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Section 10.5 Tax Treatment.

If any interest in any Credit Document is transferred to any Transferee which is not
incorporated under the laws of the United States or any State thereof, the transferor Lender shall
cause such Transferee, concurrently with the effectiveness of such transfer, to comply with the
provisions of Section 2.17.

ARTICLE XI

MISCELLANEOUS

Section 11.1 Amendments, Waivers and Release of Collateral.

Neither this Agreement, nor any of the Notes, nor any of the other Credit Documents, nor any
terms hereof or thereof may be amended, supplemented, waived or modified except in accordance with
the provisions of this Section nor may any Collateral be released except as specifically provided
herein or in the Security Documents or in accordance with the provisions of this Section
11.1. The Required Lenders may, or, with the written consent of the Required Lenders, the
Administrative Agent may, from time to time, (a) enter into with the Borrower written amendments,
supplements or modifications hereto and to the other Credit Documents for the purpose of adding any
provisions to this Agreement or the other Credit Documents or changing in any manner the rights of
the Lenders or of the Borrower hereunder or thereunder or (b) waive, on such terms and conditions
as the Required Lenders may specify in such instrument, any of the requirements of this Agreement
or the other Credit Documents or any Default or Event of Default and its consequences;
provided, however, that no such waiver and no such amendment, waiver, supplement,
modification or release shall:

(i) reduce the amount or extend the scheduled date of maturity of any Loan or
Note or any installment thereon, or reduce the stated rate of any interest or fee
payable hereunder (other than interest at the Default Rate) or extend the scheduled
date of any payment thereof or increase the amount or extend the expiration date of
any Lender’s Commitment, in each case without the written consent of each Lender
directly affected thereby (it being understood and agreed that changes to the
financial definitions and financial covenants herein shall only require the consent
of the Required Lenders and waivers of Events of Default, conditions precedent and
mandatory prepayments of the Loans required pursuant to Section 2.6(b)
hereof shall not constitute increases in the Commitment of any Lender), or

(ii) amend, modify or waive any provision of this Section 11.1 or
reduce the percentage specified in the definition of Required Lenders, without the
written consent of all the Lenders, or

(iii) amend, modify or waive any provision of Article VIII without the
written consent of the then Administrative Agent, or

 

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(iv) release a material portion of the Guarantors from their obligations under
the Guaranty without the written consent of all of the Lenders, or

(v) release a material portion of the Collateral (except in accordance with the
terms of the relevant Security Document), without the written consent of all of the
Lenders, or

(vi) amend, modify or waive the Lender approval requirements of any provision
of the Credit Documents which at such time requires the consent, approval or request
of the Required Lenders or all Lenders, as the case may be, without the written
consent of the Required Lenders or of all of the Lenders, as the case may be, and,
provided, further, that no amendment, waiver or consent affecting
the rights or duties of the Administrative Agent or the Issuing Lender under any
Credit Document shall in any event be effective, unless in writing and signed by the
Administrative Agent and/or the Issuing Lender, as applicable, in addition to the
Lenders required hereinabove to take such action.

Any such waiver, any such amendment, supplement or modification and any such release shall
apply equally to each of the Lenders and shall be binding upon the Borrower, the other Credit
Parties, the Lenders, the Administrative Agent and all future holders of the Notes. In the case of
any waiver, the Borrower, the other Credit Parties, the Lenders and the Administrative Agent shall
be restored to their former position and rights hereunder and under the outstanding Loans and Notes
and other Credit Documents, and any Default or Event of Default waived shall be deemed to be cured
and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

Notwithstanding any of the foregoing to the contrary, the consent of the Borrower shall not be
required for any amendment, modification or waiver of the provisions of Article VIII (other
than the provisions of Section 8.9); provided, however, that the Administrative Agent will
provide written notice to the Borrower of any such amendment, modification or waiver. In addition,
the Borrower and the Lenders hereby authorize the Administrative Agent to modify this Credit
Agreement by unilaterally amending or supplementing Schedule 2.1(a) from time to time in
the manner requested by the Borrower, the Administrative Agent or any Lender in order to reflect
any assignments or transfers of the Loans as provided for hereunder; provided,
however, that the Administrative Agent shall promptly deliver a copy of any such
modification to the Borrower and each Lender.

Notwithstanding the fact that the consent of all the Lenders is required in certain
circumstances as set forth above, (x) each Lender is entitled to vote as such Lender sees fit on
any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the
provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent provisions
set forth herein and (y) the Required Lenders may consent to allow a Credit Party to use cash
collateral in the context of a bankruptcy or insolvency proceeding.

 

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Section 11.2 Notices.

Except as otherwise provided in Article II, all notices, requests and demands to or
upon the respective parties hereto to be effective shall be in writing (including by telecopy),
and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made
(a) when delivered by hand, (b) when transmitted via telecopy (or other facsimile device) to the
number set out herein, (c) the day following the day on which the same has been delivered prepaid
to a reputable national overnight air courier service, or (d) the third Business Day following the
day on which the same is sent by certified or registered mail, postage prepaid, in each case,
addressed as follows in the case of the Borrower, the other Credit Parties and the Administrative
Agent, and as set forth on Schedule 11.2 in the case of the Lenders, or to such other
address as may be hereafter notified by the respective parties hereto and any future holders of the
Notes:

The Borrower and the other Credit Parties:

Consolidated Graphics, Inc.

5858 Westheimer, Suite 200

Houston, Texas 77057

Attention: Chief Financial Officer

Telecopier: (713) 787-5083

Telephone: (713) 787-0977

with copies to:

Winstead, Sechrest & Minick P.C.

2400 Bank One Center

919 Milam, Suite 2400

Houston, Texas 77002-5875

Attention: R. Clyde Parker, Jr.

Telecopier: (713) 650-2400

Telephone: (713) 650-2753

The Administrative Agent:

JPMORGAN CHASE BANK, N.A.

712 Main Street

Houston, Texas 77002

Attention: Steve Krueger

Telecopier: 713-216-1853

Telephone: 713-216-1702

Section 11.3 No Waiver; Cumulative Remedies.

No failure to exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy,
power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and
not exclusive of any rights, remedies, powers and privileges provided by law.

 

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Section 11.4 Survival of Representations and Warranties.

All representations and warranties made hereunder and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the execution and
delivery of this Agreement and the Notes and the making of the Loans, provided that all
such representations and warranties shall terminate on the date upon which the Commitments have
been terminated and all amounts owing hereunder and under any Notes have been paid in full.

Section 11.5 Payment of Expenses and Taxes.

The Borrower agrees (a) to pay or reimburse the Administrative Agent for all its reasonable
out-of-pocket costs and expenses incurred in connection with the development, preparation,
negotiation, printing and execution of, and any amendment, supplement or modification to, this
Agreement and the other Credit Documents and any other documents prepared in connection herewith or
therewith, and the consummation and administration of the transactions contemplated hereby and
thereby, together with the reasonable fees and disbursements of counsel to the Administrative
Agent, (b) to pay or reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in connection with the enforcement or preservation of any rights under this
Agreement, the Notes and any such other documents, including, without limitation, the reasonable
fees and disbursements of counsel to the Administrative Agent and to the Lenders (including
reasonable allocated costs of in house legal counsel), and (c) on demand, to pay, indemnify, and
hold each Lender and the Administrative Agent harmless from, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise
and other similar taxes, if any, which may be payable or determined to be payable in connection
with the execution and delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or
in respect of, the Credit Documents and any such other documents, and (d) to pay, indemnify, and
hold each Lender and the Administrative Agent and their Affiliates and their respective officers,
directors, employees, Administrative Agents, and advisors harmless from and against, any and all
other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of the Credit Documents and any such other documents
and the use, or proposed use, of proceeds of the Loans (all of the foregoing, collectively, the
“indemnified liabilities”); provided, however, that the Borrower shall not
have any obligation hereunder to the Administrative Agent or any Lender or any other indemnified
person with respect to indemnified liabilities arising from the gross negligence or willful
misconduct of the Administrative Agent or any such Lender or any other such indemnified person, as
determined by a court of competent jurisdiction (IT BEING THE INTENTION OF THIS PROVISION THAT SUCH
INDEMNIFICATION OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY
THE ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING
INDEMNIFIED). The agreements in this Section 11.5 shall survive repayment of the
Loans, Notes and all other amounts payable hereunder.

 

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Section 11.6 Adjustments; Set-off.

(a) Each Lender agrees that if any Lender (a “benefited Lender”) shall at any
time receive any payment of all or part of its Loans, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to
events or proceedings of the nature referred to in Section 7.1(e), or otherwise) in
a greater proportion than any such payment to or collateral received by any other Lender, if
any, in respect of such other Lender’s Loans, or interest thereon, such benefited Lender
shall purchase for cash from the other Lenders a participating interest in such portion of
each such other Lender’s Loan, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause such benefited
Lender to share the excess payment or benefits of such collateral or proceeds ratably with
each of the Lenders; provided, however, that if all or any portion of such
excess payment or benefits is thereafter recovered from such benefited Lender, such purchase
shall be rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest. The Borrower agrees that each Lender so purchasing a
portion of another Lender’s Loans may exercise all rights of payment (including, without
limitation, rights of set-off) with respect to such portion as fully as if such Lender were
the direct holder of such portion.

(b) In addition to any rights and remedies of the Lenders provided by law (including,
without limitation, other rights of set-off), each Lender shall have the right, without
prior notice to the Borrower, any such notice being expressly waived by the Borrower to the
extent permitted by applicable law, upon the occurrence of any Event of Default, to setoff
and appropriate and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in
any currency, in each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Lender or any branch or agency thereof to or
for the credit or the account of the Borrower, or any part thereof in such amounts as such
Lender may elect, against and on account of the obligations and liabilities of the Borrower
to such Lender hereunder and claims of every nature and description of such Lender against
the Borrower, in any currency, arising hereunder, under the Notes or under any documents
contemplated by or referred to herein or therein, as such Lender may elect, whether or not
such Lender has made any demand for payment and although such obligations, liabilities and
claims may be contingent or unmatured. The aforesaid right of set-off may be exercised by
such Lender against the Borrower or against any trustee in bankruptcy, debtor in possession,
assignee for the benefit of creditors, receiver or execution, judgment or attachment
creditor of the Borrower, or against anyone else claiming through or against the Borrower or
any such trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver, or execution, judgment or attachment creditor, notwithstanding the fact that such
right of set-off shall not have been exercised by such Lender prior to the occurrence of any
Event of Default. Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such set-off and application made by such Lender; provided,
however,
that the failure to give such notice shall not affect the validity of such set-off and
application.

 

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Section 11.7 Table of Contents and Section Headings.

The table of contents and the Section and subsection headings herein are intended for
convenience only and shall be ignored in construing this Agreement.

Section 11.8 Counterparts.

This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts, and all of said counterparts taken together shall be deemed to constitute
one and the same instrument. A set of the copies of this Agreement signed by all the parties shall
be lodged with the Borrower and the Administrative Agent.

Section 11.9 Effectiveness.

This Credit Agreement shall become effective on the date on which all of the parties have
signed a copy hereof (whether the same or different copies) and shall have delivered the same to
the Administrative Agent pursuant to Section 11.2 or, in the case of the Lenders, shall
have given to the Administrative Agent written, telecopied or telex notice (actually received) at
such office that the same has been signed and mailed to it.

Section 11.10 Severability.

Any provision of this Agreement which is 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 hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

Section 11.11 Integration.

This Agreement and the Notes represent the agreement of the Borrower, the Administrative Agent
and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent, the Borrower or any Lender relative to
the subject matter hereof not expressly set forth or referred to herein or in the Notes.

Section 11.12 Governing Law.

THIS AGREEMENT AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF TEXAS. WITH RESPECT TO USURY LAWS, IF ANY, APPLICABLE TO THE LENDERS (AS SUCH
LAWS MAY HEREAFTER BE IN EFFECT WHICH ALLOW A HIGHER MAXIMUM NONUSURIOUS INTEREST RATE THAN SUCH
LAWS NOW ALLOW AND TO THE EXTENT ALLOWED THEREBY), THE PROVISIONS OF CHAPTER 346 OF THE TEXAS
FINANCE CODE (WHICH REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS AGREEMENT OR THE NOTES.

 

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Section 11.13 Consent to Jurisdiction and Service of Process.

All judicial proceedings brought against the Borrower and/or any other Credit Party with
respect to this Agreement, any Note or any of the other Credit Documents may be brought in any
state or federal court of competent jurisdiction in the courts of the State of Texas and by
execution and delivery of this Agreement the Borrower and the other Credit Parties accept, for
itself and in connection with its properties, generally and unconditionally, the non-exclusive
jurisdiction of the aforesaid courts and irrevocably agrees to be bound by any final judgment
rendered thereby in connection with this Agreement from which no appeal has been taken or is
available. Each of the Borrower and the other Credit Parties irrevocably agrees that all service
of process in any such proceedings in any such court may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at
its address set forth in Section 11.2 or at such other address of which the Administrative
Agent shall have been notified pursuant thereto, such service being hereby acknowledged by the each
of the Borrower and the other Credit Parties to be effective and binding service in every respect.
Each of the Borrower, the other Credit Parties, the Administrative Agent and the Lenders
irrevocably waives any objection, including, without limitation, 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 such action or proceeding in any such jurisdiction. Nothing herein shall affect
the right to serve process in any other manner permitted by law or shall limit the right of any
Lender to bring proceedings against the Borrower or the other Credit Parties in the court of any
other jurisdiction.

Section 11.14 Arbitration.

(a) Notwithstanding the provisions of Section 11.13 to the contrary, upon
demand of any party hereto, whether made before or within three (3) months after institution
of any judicial proceeding, any dispute, claim or controversy arising out of, connected with
or relating to this Agreement and other Credit Documents (“Disputes”) between or
among parties to this Agreement shall be resolved by binding arbitration as provided herein.
Institution of a judicial proceeding by a party does not waive the right of that party to
demand arbitration hereunder. Disputes may include, without limitation, tort claims,
counterclaims, disputes as to whether a matter is subject to arbitration, claims brought as
class actions, claims arising from Credit Documents executed in the future, or claims
arising out of or connected with the transaction reflected by this Agreement.

Arbitration shall be conducted under and governed by the Commercial Arbitration Rules
(the “Arbitration Rules”) of the American Arbitration Association (the
“AAA”) and Title 9 of the U.S. Code. All arbitration hearings shall be conducted in
Houston, Texas. A hearing shall begin within 90 days of demand for arbitration and all
hearings shall be concluded within 120 days of demand for arbitration. These time
limitations may not be extended unless a party shows cause for extension and then no more
than a

 

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total extension of 60 days. The expedited procedures set forth in Rule 51 et
seq. of the Arbitration Rules shall be applicable to claims of less than $1,000,000.
All applicable statutes of limitation shall apply to any Dispute. A judgment upon the
award may be entered in any court having jurisdiction. Arbitrators shall be licensed
attorneys selected from the Commercial Financial Dispute Arbitration Panel of the AAA. The
parties hereto do not waive applicable Federal or state substantive law except as provided
herein. Notwithstanding the foregoing, this arbitration provision does not apply to
disputes under or related to Hedging Agreements.

(b) Notwithstanding the preceding binding arbitration provisions, the Administrative
Agent, the Lenders, the Borrower and the other Credit Parties agree to preserve, without
diminution, certain remedies that the Administrative Agent on behalf of the Lenders may
employ or exercise freely, independently or in connection with an arbitration proceeding or
after an arbitration action is brought. The Administrative Agent on behalf of the Lenders
shall have the right to proceed in any court of proper jurisdiction or by self-help to
exercise or prosecute the following remedies, as applicable (i) all rights to foreclose
against any real or personal property or other security by exercising a power of sale
granted under Credit Documents or under applicable law or by judicial foreclosure and sale,
including a proceeding to confirm the sale; (ii) all rights of self-help including peaceful
occupation of real property and collection of rents, set-off, and peaceful possession of
personal property; (iii) obtaining provisional or ancillary remedies including injunctive
relief, sequestration, garnishment, attachment, appointment of receiver and filing an
involuntary bankruptcy proceeding, and (iv) when applicable, a judgment by confession of
judgment. Preservation of these remedies does not limit the power of an arbitrator to grant
similar remedies that may be requested by a party in a Dispute.

(c) The parties hereto agree that they shall not have a remedy of punitive or exemplary
damages against the other in any Dispute and hereby waive any right or claim to punitive or
exemplary damages they have now or which may arise in the future in connection with any
Dispute whether the Dispute is resolved by arbitration or judicially.

(d) By execution and delivery of this Agreement, each of the parties hereto accepts,
for itself and in connection with its properties, generally and unconditionally, the
non-exclusive jurisdiction relating to any arbitration proceedings conducted under the
Arbitration Rules in Houston, Texas and irrevocably agrees to be bound by any final judgment
rendered thereby in connection with this Agreement from which no appeal has been taken or is
available.

Section 11.15 Confidentiality.

The Administrative Agent and each of the Lenders agrees that it will not disclose without the
prior consent of the Borrower (other than to its employees, affiliates, auditors, counsel or other
Lenders hereunder) any information with respect to the Credit Parties and their Subsidiaries which
is furnished pursuant to this Agreement, any other Credit Document or any documents contemplated by
or referred to herein or therein and which is designated by the Borrower to the Lenders in writing
as confidential or as to which it is otherwise reasonably clear

 

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such information is not public except that any Lender may disclose any such information (a) as
has become generally available to the public other than by a breach of this Section 11.15,
(b) as may be required or appropriate in any report, statement or testimony submitted to any
municipal, state or federal regulatory body having or claiming to have jurisdiction over such
Lender or to the National Association of Insurance Commissioners, the Federal Reserve Board, the
Federal Deposit Insurance Corporation, the OCC or any similar regulatory organizations (whether in
the United States or elsewhere) or their successors, (c) as may be required or appropriate in
response to any summons or subpoena or any law, order, regulation or ruling applicable to such
Lender, (d) to any prospective Participant or assignee in connection with any contemplated transfer
pursuant to Article X, provided that such prospective transferee shall have been
made aware of this Section 11.15 and shall have agreed in writing to be bound by its
provisions as if it were a party to this Agreement, (e) to Gold Sheets and other similar
bank trade publications; such information to consist only of deal terms and other information
regarding the credit facilities evidenced by this Credit Agreement customarily found in such
publications or (f) to a Lender’s representatives, (which shall include, without limitation, any
other bank and company affiliated with a Lender or the parent of a Lender) it being expressly
understood and agreed that such representatives shall be informed of the confidential nature of the
information, shall be required by such Lender to treat the information as confidential in
accordance with the terms and conditions hereof and such representative shall have agreed in
writing to be bound by this provision as if it were a party to this Agreement.

Section 11.16 Acknowledgments.

The Borrower and the other Credit Parties each hereby acknowledges that:

(a) it has been advised by counsel in the negotiation, execution and delivery of each
Credit Document;

(b) neither the Administrative Agent nor any Lender has any fiduciary relationship with
or duty to the Borrower or any other Credit Party arising out of or in connection with this
Agreement and the relationship between Administrative Agent and Lenders, on one hand, and
the Borrower and the other Credit Parties, on the other hand, in connection herewith is
solely that of debtor and creditor; and

(c) no joint venture exists among the Lenders or among the Borrower or the other Credit
Parties and the Lenders.

Section 11.17 Waivers of Jury Trial.

THE BORROWER, THE OTHER CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

 

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Section 11.18 Interest.

It is the intention of the parties hereto to conform strictly to usury laws applicable to the
Lenders. Accordingly, if the transactions contemplated hereby would be usurious under the
applicable law (including the laws of the United States of America and the State of Texas or any
other jurisdiction whose laws may be mandatorily applicable notwithstanding the other provisions of
this Agreement), then, in that event, notwithstanding anything to the contrary in the Notes, this
Agreement or in any other Credit Document or agreement entered into in connection with or as
security for the Notes, it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under law applicable to the Lenders that is contracted for, taken, reserved,
charged or received under the Notes, this Agreement or under any of the other aforesaid Credit
Documents or agreements or otherwise in connection with the Notes shall under no circumstances
exceed the maximum amount allowed by such applicable law, and any excess shall be credited by the
Lenders on the principal amount of the Indebtedness (or, if the principal amount of the
Indebtedness shall have been paid in full, refunded by the Lenders to the Borrower); and (ii) in
the event that the maturity of the Notes is accelerated by reason of an election of the Lenders
resulting from any Event of Default under this Agreement or otherwise, or in the event of any
required or permitted prepayment, then such consideration that constitutes interest under law
applicable to the Lenders may never include more than the maximum amount allowed by such applicable
law, and excess interest, if any, provided for in this Agreement or otherwise shall be cancelled
automatically as of the date of such acceleration or prepayment and, if theretofore paid, shall be
credited by the Lenders on the principal amount of the Indebtedness (or, if the principal amount of
the Indebtedness shall have been paid in full, refunded by the Lenders to the Borrower). Without
limiting the foregoing, all calculations of the rate of interest taken, reserved, contracted for,
charged, received or provided for under the Note or any of the Credit Documents which are made for
the purpose of determining whether the interest rate exceeds the Maximum Rate shall be made, to the
extent allowed by law, by amortizing, prorating, allocating and spreading in equal parts during the
period of the full stated term of the loan evidenced hereby, all interest at any time taken,
reserved, contracted for, charged, received or provided for under the Note or any of the Credit
Documents.

To the extent that Chapter 303 of the Texas Finance Code (Vernon’s Texas Civil Statutes) is
relevant to the Lenders for the purpose of determining the Maximum Rate, the Lenders hereby elect
to determine the applicable rate ceiling under such Chapter by the indicated (weekly) rate ceiling
from time to time in effect, subject to the Lenders’ right subsequently to change such method in
accordance with the applicable law.

If, at any time, the applicable rate exceeds the Maximum Rate, the rate of interest to accrue
on the Notes (or on any of them) shall be limited to the Maximum Rate, but any subsequent
reductions in the applicable rate shall not reduce the interest to accrue on the Notes (or on any
of them) below the Maximum Rate until the total amount of interest accrued on the Notes (or any of
them) equals the amount of interest which would have accrued if a varying rate per annum equal to
the applicable rate had at all times been in effect. If at maturity or final payment of the Notes
(or any of them) the total amount of interest paid or accrued on the Notes (or on any of them)
under the foregoing provisions is less than the total amount of interest which would have accrued
if a varying rate per annum equal to the applicable rate had at all times been in effect, then the
Borrower agrees, to the fullest extent permitted by law, to pay to the Lender

 

93

 

an amount equal to the difference between (a) the lesser of (i) the amount of interest which
would have accrued on the Notes (or on any of them) if the Maximum Rate had at all times been in
effect or (ii) the amount of interest which would have accrued on the Notes (or on any of them) if
a varying rate per annum equal to the applicable rate had at all times been in effect, and (b) the
amount of interest accrued in accordance with the other provisions of the Notes (or any of them).

Section 11.19 Amendment and Restatement; Renewal Notes.

This Agreement amends and restates in its entirety that certain Credit Agreement dated as of
November 10, 2003 executed by and among the Borrower, JPM Chase (or its predecessor in interest),
as Administrative Agent, and certain financial institutions therein set forth (the “Existing
Lenders”), as the may have been amended. The Revolving Notes have been given in renewal,
extension and modification of the revolving credit facility previously provided to the Borrower
pursuant to such Loan Agreement and the Swingline Note has been given in renewal, extension and
modification of the swingline loans previously made to the Borrower pursuant to such Credit
Agreement. All Security Documents shall secure the Indebtedness, as such Indebtedness is effected
by this Credit Agreement, to the extent amended herein and whether or not such Security Documents
shall be supplemented in connection with this Credit Agreement.

Section 11.20 Special Provisions Concerning LOC Documents.

Notwithstanding any other provision in any of the LOC Documents, whether now existing or in
the future, the parties hereto hereby agree as follows:

(a) All LOC Documents will be subject to the provisions of this agreement
notwithstanding the fact that they are now existing or may be executed in the future.

(b) For convenience only, the LOC Documents will be standard forms used by the Issuing
Bank; provided, however, all terms and provisions contained therein shall be superceded by
the terms and the provisions of this Agreement and should there be any conflict between the
terms and provisions of any of the LOC Documents and the terms and provisions of this
Agreement, the terms and provisions of this Agreement shall control.

(c) Without limiting the generality of the foregoing, as an example, any breach or
default of any of the terms or provisions under any of the LOC Documents shall not
constitute a default under any of said LOC Documents or under this Agreement unless a
Default or an Event of Default has specifically occurred under the terms and provisions of
this Agreement.

[Remainder of Page Intentionally Left Blank]

 

94

 

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

	 	 	 	 	 
	BORROWER:	 	CONSOLIDATED GRAPHICS, INC.,
	 	 	a Texas corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ G. Christopher Colville
	 

	 	 	 	 
	 

	 	 	 	G. Christopher Colville,
	 

	 	 	 	Executive Vice President and
	 

	 	 	 	Chief Financial Officer

GUARANTORS:

	 	 	 
	 

	 	A&A AMALGAMATED PRINTING ENTERPRISES, INC.,
	 

	 	     a California corporation,
	 

	 	AGS CUSTOM GRAPHICS, INC.,
	 

	 	     a Maryland corporation,
	 

	 	AMERICAN LITHOGRAPHERS, INC.,
	 

	 	     a California corporation,
	 

	 	APPLE GRAPHICS, INC.,
	 

	 	     a California corporation,
	 

	 	AUSTIN PRINTING COMPANY, INC.,
	 

	 	     a Georgia corporation,
	 

	 	AUTOMATED GRAPHIC IMAGING/COPY
	 

	 	     CENTER, INC., a District of Columbia corporation,
	 

	 	AUTOMATED GRAPHIC SYSTEMS, LLC,
	 

	 	     a Maryland limited liability company,
	 

	 	BIGINK MAILING & FULFILLMENT COMPANY,
	 

	 	     a Kansas corporation,
	 

	 	BRIDGETOWN PRINTING CO.,
	 

	 	     an Oregon corporation,
	 

	 	BYRUM LITHOGRAPHING CO.,
	 

	 	     an Ohio corporation,
	 

	 	CDS PUBLICATIONS, INC.,
	 

	 	     an Oregon corporation,
	 

	 	CGML GENERAL PARTNER, INC.,
	 

	 	     a Delaware corporation,
	 

	 	CGML, LLC,
	 

	 	     a Delaware limited liability company,
	 

	 	CGX CALIFORNIA CONTRACTORS, INC.,
	 

	 	     a California corporation
	 

	 	CGXMEDIA, INC.,
	 

	 	     a Texas corporation

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 
	 

	 	CHAS. P. YOUNG COMPANY,
	 

	 	     a Texas corporation,
	 

	 	CHAS. P. YOUNG COMPANY, INC.,
	 

	 	     a New York corporation,
	 

	 	CLEAR VISIONS, INC.,
	 

	 	     a Texas corporation,
	 

	 	COLUMBIA COLOR, INC.,
	 

	 	     a California corporation,
	 

	 	CONSOLIDATED CARQUEVILLE PRINTING
	 

	 	     COMPANY, an Illinois corporation
	 

	 	CONSOLIDATED GRAPHICS CALIFORNIA,
	 

	 	     a California corporation,
	 

	 	CONSOLIDATED GRAPHICS DEVELOPMENT
	 

	 	     COMPANY, a Delaware corporation,
	 

	 	CONSOLIDATED GRAPHICS SERVICES,
	 

	 	     INC., a Delaware corporation,
	 

	 	CONSOLIDATED GRAPHICS PROPERTIES, INC.,
	 

	 	     a Texas corporation,
	 

	 	CONSOLIDATED GRAPHICS PROPERTIES II,
	 

	 	     INC., a Texas corporation,
	 

	 	COPY-MOR, INC. ,
	 

	 	     an Illinois corporation,
	 

	 	COURIER PRINTING COMPANY,
	 

	 	     a Tennessee corporation,
	 

	 	DIGITAL DIRECT, INC. ,
	 

	 	     a Pennsylvania corporation,
	 

	 	DIRECT COLOR, INC. ,
	 

	 	     a California corporation,
	 

	 	EAGLE PRESS, INC. ,
	 

	 	     a California corporation,
	 

	 	EASTWOOD PRINTING CORPORATION, a
	 

	 	     Colorado corporation,
	 

	 	ELECTRIC CITY PRINTING COMPANY,
	 

	 	     a South Carolina corporation,
	 

	 	EMERALD CITY GRAPHICS, INC. ,
	 

	 	     a Washington corporation,
	 

	 	FITTJE BROS. PRINTING CO. ,
	 

	 	     a Colorado corporation,
	 

	 	FREDERIC PRINTING COMPANY,
	 

	 	     a Colorado corporation,
	 

	 	GARNER PRINTING COMPANY,
	 

	 	     an Iowa corporation,
	 

	 	GEYER PRINTING COMPANY, INC. ,
	 

	 	     a Pennsylvania corporation,
	 

	 	GILLILAND PRINTING, INC.
	 

	 	     a Kansas corporation,

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 
	 

	 	GRAPHCOM LLC,
	 

	 	     a Georgia limited liability company,
	 

	 	GRAPHIC COMMUNICATIONS, INC.,
	 

	 	     a California corporation,
	 

	 	GRAPHIC TECHNOLOGY OF MARYLAND, INC. ,
	 

	 	     a Maryland corporation,
	 

	 	GRAPHION, INC.,
	 

	 	     a California corporation,
	 

	 	GRITZ-RITTER GRAPHICS, INC.,
	 

	 	     a Colorado corporation,
	 

	 	GROVER PRINTING COMPANY,
	 

	 	     a Texas corporation,
	 

	 	GSL FINE LITHOGRAPHERS,
	 

	 	     a California corporation,
	 

	 	GULF PRINTING COMPANY,
	 

	 	     a Texas corporation,
	 

	 	H & N PRINTING & GRAPHICS, INC. ,
	 

	 	     a Maryland corporation,
	 

	 	HEATH PRINTERS, INC.
	 

	 	     a Washington corporation
	 

	 	HERITAGE GRAPHICS, INC. ,
	 

	 	     a Texas corporation,
	 

	 	IMAGE SYSTEMS, INC. ,
	 

	 	     a Wisconsin corporation,
	 

	 	IRONWOOD LITHOGRAPHERS, INC. ,
	 

	 	     an Arizona corporation,
	 

	 	KELMSCOTT COMMUNICATIONS LLC,
	 

	 	     a Delaware limited liability company,
	 

	 	KEYS PRINTING COMPANY,
	 

	 	     a South Carolina corporation,
	 

	 	LINCOLN PRINTING CORPORATION,
	 

	 	     an Indiana corporation,
	 

	 	MARYLAND COMPOSITION.COM, INC. ,
	 

	 	     a Maryland corporation,
	 

	 	MAXIMUM GRAPHICS, INC.,
	 

	 	     a Minnesota corporation,
	 

	 	MAXWELL GRAPHIC ARTS, INC. ,
	 

	 	     a New Jersey corporation,
	 

	 	MCKAY PRESS, INC. ,
	 

	 	     a Michigan corporation,
	 

	 	MERCURY PRINTING COMPANY, INC. ,
	 

	 	      a Tennessee corporation,
	 

	 	MERCURY WEB PRINTING, INC. ,
	 

	 	     a Kansas corporation,
	 

	 	METROPOLITAN PRINTING SERVICES, INC. ,
	 

	 	     an Indiana corporation,

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 
	 

	 	MOBILITY, INC. ,
	 

	 	     a Virginia corporation,
	 

	 	MOUNT VERNON PRINTING COMPANY,
	 

	 	     a Maryland corporation,
	 

	 	MULTIPLE IMAGES PRINTING, INC.,
	 

	 	     an Illinois corporation,
	 

	 	NIES/ARTCRAFT, INC.,
	 

	 	a Missouri corporation,
	 

	 	PICCARI PRESS, INC.,
	 

	 	     a Pennsylvania corporation,
	 

	 	PRECISION LITHO, INC.,
	 

	 	     a California corporation,
	 

	 	PRIDE PRINTERS, INC.,
	 

	 	     a Massachusetts corporation,
	 

	 	PRINTING CONTROL SERVICES, INCORPORATED,
	 

	 	     a Washington corporation,
	 

	 	PRINTING CORPORATION OF AMERICA,
	 

	 	     a Maryland corporation,
	 

	 	PRINTING, INC. ,
	 

	 	     a Kansas corporation,
	 

	 	RUSH PRESS, INC. ,
	 

	 	     a California corporation,
	 

	 	S&S GRAPHICS, LLC,
	 

	 	     a Maryland limited liability company,
	 

	 	S&S GRAPHICS PROPERTY, LLC,
	 

	 	     a Delaware limited liability company,
	 

	 	SPANGLER GRAPHICS, LLC,
	 

	 	     a Kansas limited liability company,
	 

	 	SPANGLER GRAPHICS PROPERTY, LLC,
	 

	 	     a Kansas limited liability company,
	 

	 	STORTERCHILDS PRINTING CO., INC.,
	 

	 	     a Florida corporation,
	 

	 	SUPERB PRINTING COMPANY,
	 

	 	     a Texas corporation,
	 

	 	SUPERIOR COLOUR GRAPHICS, INC.,
	 

	 	     a Michigan corporation,
	 

	 	TEWELL WARREN PRINTING COMPANY,
	 

	 	     a Colorado corporation,
	 

	 	THE ETHERIDGE COMPANY,
	 

	 	     a Michigan corporation,
	 

	 	THE GRAPHICS GROUP, INC.,
	 

	 	     a Texas corporation,
	 

	 	THE JARVIS PRESS, INC.,
	 

	 	     a Texas corporation,
	 

	 	THE JOHN C. OTTO COMPANY, INC.,
	 

	 	     a Massachusetts corporation,

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 
	 

	 	THE PRINTERY, INC.,
	 

	 	     a Wisconsin corporation,
	 

	 	THEO. DAVIS SONS, INCORPORATED,
	 

	 	     a North Carolina corporation,
	 

	 	THOUSAND OAKS PRINTING AND
	 

	 	     SPECIALTIES, INC., a California corporation,
	 

	 	TUCKER PRINTERS, INC.,
	 

	 	     a Texas corporation,
	 

	 	TULSA LITHO COMPANY,
	 

	 	     an Oklahoma corporation,
	 

	 	TURSACK INCORPORATED,
	 

	 	     a Pennsylvania corporation,
	 

	 	VALCOUR PRINTING, INC.,
	 

	 	     a Missouri corporation,
	 

	 	WALNUT CIRCLE PRESS, INC.,
	 

	 	     a North Carolina corporation,
	 

	 	WATERMARK PRESS, LTD.,
	 

	 	     a California limited partnership,
	 

	 	WENTWORTH CORPORATION,
	 

	 	     a South Carolina corporation,
	 

	 	WESTERN LITHOGRAPH COMPANY,
	 

	 	     a Texas corporation,
	 

	 	WESTLAND PRINTERS, INC.,
	 

	 	     a Maryland corporation,
	 

	 	WETZEL BROTHERS, INC.,
	 

	 	     a Wisconsin corporation,
	 

	 	WETZEL BROTHERS, LLC,
	 

	 	     a Wisconsin limited liability company,
	 

	 	WOODRIDGE PRESS, INC.,
	 

	 	     a California corporation,

	 	 	 	 	 
	 

	 	By:
	 	/s/ G. Christopher Colville
	 

	 	 	 	 
	 

	 	 	 	G. Christopher Colville,
	 

	 	 	 	Executive Vice President and
	 

	 	 	 	Chief Financial Officer
	 

	 	 	 	of each of the foregoing

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 
	 

	 	SERCO FORMS, LLC,
	 

	 	     a Kansas limited liability company

	 	 	 	 	 
	 

	 	By:
	 	BIGINK MAILING & FULFILLMENT
	 

	 	 	 	COMPANY, a Kansas corporation, and
	 

	 	 	 	MERCURY WEB PRINTING, INC., a
	 

	 	 	 	Kansas corporation, Members

	 	 	 	 	 
	 

	 	By:
	 	/s/ G. Christopher Colville
	 

	 	 	 	 
	 

	 	 	 	G. Christopher Colville,
	 

	 	 	 	Executive Vice President and
	 

	 	 	 	Chief Financial Officer

	 	 	 
	 

	 	CONSOLIDATED GRAPHICS MANAGEMENT,
	 

	 	     LTD., a Texas limited partnership,

	 	 	 	 	 
	 

	 	By:
	 	CGML GENERAL PARTNER, INC., a
	 

	 	 	 	Delaware corporation, sole general partner
	 

	 	 	 	of Consolidated Graphics Management, Ltd.

	 	 	 	 	 
	 

	 	By:
	 	/s/ G. Christopher Colville
	 

	 	 	 	 
	 

	 	 	 	G. Christopher Colville,
	 

	 	 	 	Executive Vice President and
	 

	 	 	 	Chief Financial Officer

	 	 	 
	 

	 	CONSOLIDATED GRAPHICS DEVELOPMENT
	 

	 	     LLC, a Delaware limited liability company

	 	 	 	 	 
	 

	 	By:
	 	CONSOLIDATED GRAPHICS
	 

	 	 	 	DEVELOPMENT COMPANY,
	 

	 	 	 	a Delaware corporation, Member

	 	 	 	 	 
	 

	 	By:
	 	/s/ G. Christopher Colville
	 

	 	 	 	 
	 

	 	 	 	G. Christopher Colville,
	 

	 	 	 	Executive Vice President and
	 

	 	 	 	Chief Financial Officer

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT

AND LENDERS:	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gail Waggoner
	 

	 	 	 	 
	 

	 	Name:
	 	Gail Waggoner
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Syndication Agent and as

a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ H. Michael Sultanik
	 

	 	 	 	 
	 

	 	Name:
	 	H. Michael Sultanik
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David A. Batson
	 

	 	 	 	 
	 

	 	Name:
	 	David A. Batson
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Charles T. Johnson
	 

	 	 	 	 
	 

	 	Name:
	 	Charles T. Johnson
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ John E. Elam, Jr.
	 
	 	 	 	 
	 
	 	Name:	 	John E. Elam, Jr.
	 
	 	 	 	 
	 
	 	Title:	 	Senior Vice President
	 
	 	 	 	 

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 	 	 
	 	 	AMEGY BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Laif Afseth
	 

	 	 	 	 
	 

	 	Name:
	 	Laif Afseth
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 

 

Credit Agreement

Consolidated Graphics

 

 

 

	 	 	 	 	 
	 	 	BANK OF TEXAS, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Edward H. Braddock
	 

	 	 	 	 
	 

	 	Name:
	 	Edward H. Braddock
	 

	 	 	 	 
	 

	 	Title:
	 	Senior Vice President
	 

	 	 	 	 

 

Credit Agreement

Consolidated Graphics

 

 

 

Schedule 1.1(a)

NOTICE OF ACCOUNT DESIGNATION

Dated                     , 2006

JPMorgan Chase Bank, N.A.

712 Main Street

Houston, TX 77002

Attention: Steve Krueger

Ladies and Gentlemen:

This Notice of Account Designation is delivered to you by Consolidated Graphics, Inc., a Texas
corporation (the “Borrower”) under Section 4.1(i) of the Credit Agreement, dated as of October 6,
2006 (as amended, restated or otherwise modified, the “Credit Agreement”), by and among the
Borrower, the Guarantors party thereto, the Lenders party thereto and JPMorgan Chase Bank, N.A., as
Administrative Agent.

The Administrative Agent is hereby authorized to disburse all Loan proceeds into the following
account, unless the Company shall designate, in writing to the Administrative Agent, one or more
other accounts:

JPMorgan Chase Bank, N.A.

ABA Routing Number 111000614

Account #1890263633

Notwithstanding the foregoing, on the closing date of the Credit Agreement, funds borrowed
under the Credit Agreement shall be sent to the institutions and/or persons designated on the
attached payment instructions.

IN WITNESS WHEREOF, the undersigned has executed this Notice of Account Designation this ___
day of ___, 2006.

	 	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

 

Schedule 1.1(b)

LIENS

	 	 	 	 	 	 	 	 	 
	Date	 	Company	 	Secured Party	 	Equipment Type	 	Jurisdiction
	1-Feb-05

	 	AGS Custom Graphics, Inc.
	 	Komori Leasing Incorporated
	 	LS840 Prefector-Series 4045
	 	Ohio
	13-Aug-02

	 	American Lithographers, Inc.
(Hayward)
	 	Komori Leasing Incorporated
	 	L640-Series 15
	 	California
	20-Aug-02

	 	American Lithographers, Inc.
(Sacramento)
	 	Komori Leasing Incorporated
	 	L640-Series 15
	 	California
	25-Mar-04

	 	Apple Graphics, Inc.
	 	Bank of America Leasing
	 	SM74-6+L
	 	Californa
	12-Mar-04

	 	Automated Graphics Systems, LLC
	 	Amegy Bank
	 	IGEN3 Docucolor
	 	Maryland
	25-Mar-04

	 	Consolidated Carqueville Printing

Company
	 	Bank of America Leasing
	 	Polar Cutter
	 	Illinois
	1-Feb-05

	 	Consolidated Carqueville Printing

Company
	 	Komori Leasing Incorporated
	 	LS640-Series 4045
	 	Illinois
	31-Mar-03

	 	CDS Publications, Inc.
	 	NEC Financial
	 	Phone System
	 	Oregon
	10-Oct-03

	 	CDS Publications, Inc.
	 	Wells Fargo Leasing
	 	Double sided proofer
	 	Oregon
	01-Aug-04

	 	CDS Publications, Inc.
	 	Wells Fargo Leasing
	 	NuTech M120 sheeter
	 	Oregon
	01-Oct-04

	 	CDS Publications, Inc.
	 	Hyster Capital
	 	3 forklifts
	 	Oregon
	23-Dec-05

	 	CDS Publications, Inc
	 	Bank of America Leasing
	 	Nexpress 2100 Digital
	 	Oregon
	31-Mar-06

	 	CDS Publications, Inc
	 	Bank of America Leasing
	 	Nexpress 2100 Digital
	 	Oregon
	31-Dec-03

	 	Chas P. Young Company, Inc.
	 	Bank of America Leasing
	 	iGen3 Digital Press
	 	Texas
	21-May-04

	 	Clear Visions, Inc.
	 	Amegy Bank
	 	IGEN3 Docucolor
	 	Texas
	12-Mar-04

	 	Consolidated Graphics California
	 	Amegy Bank
	 	IGEN3 Docucolor
	 	Texas
	04-Feb-02

	 	Consolidated Graphics, Inc
	 	Smurfit Packaging Corp
	 	Assets of American Litho
	 	California
	25-Jul-05

	 	Consolidated Graphics, Inc.
	 	Bank of Texas
	 	Various Prepress
	 	Various
	10/10/2002

	 	Consolidated Graphics, Inc.
	 	Heidelberg Print Finance Americas,
Inc.
	 	Heidelberg SM102-6P3+L
	 	Texas
	3/3/2003

	 	Consolidated Graphics, Inc.
	 	Creo Americas, Inc.
	 	Trendsetter 800 Quantum

(S Speed) Print Console System

with Standard Workstation

Prinergy 2600 Server 36GB

Hot Plug SCSI Hard Disk

Drive
	 	Texas
	8/19/2003

	 	Consolidated Graphics, Inc.
	 	Fleet Business Credit LLC
	 	02-4301D-11 Trendsetter 800

II Quantum (S Speed)

02-4483A-03 Princonsole

System with standard

workstation Equipment

at Metropolitan
	 	Texas
	4/1/2004

	 	Consolidated Graphics, Inc.
	 	Fleet Business Credit LLC
	 	Equipment under Master Lease
Schedule No. 019 for
American Lithographers, Inc.
	 	Texas
	4/8/2004

	 	Consolidated Graphics, Inc.
	 	Wells Fargo Financial Leasing, Inc.
	 	Lanier 5222 Copier S/N

560030165
	 	Texas
	9/27/2004

	 	Consolidated Graphics, Inc.
	 	Creo Americas, Inc.
	 	Prinergy 3rd Party
Rederstation; Service-Half
Day Onsite Creo Workflow
Server/RAID/Tape Library
Re-Purposing and
Installation Service
	 	Texas
	1/25/2005

	 	Consolidated Graphics, Inc.
	 	INX International Ink Co.
	 	With Rush Press, Inc. as
debtor — Quick Peek Proofer; Pantone
2007; Color Formula
Guide 2003
	 	Texas

 

Schedule 1.1(b) - 1

 

	 	 	 	 	 	 	 	 	 
	Date	 	Company	 	Secured Party	 	Equipment Type	 	Jurisdiction
	11/25/2005

	 	Consolidated Graphics, Inc.
	 	Creo Americas, Inc.
	 	606-00117A Workstation,
GX620, 3.2GHZ, 1.5G RAM,
MPI, CAM602-00531 AMPI 800,
Printer, Brand, Epson 9800,
CAM606-0050D Workstation,
GX280, 3.0G, 1524MB
INTEGRIS, CAM015-00091C MPI
DT/400/800 PROOFING SYSTEM
VER 3.X606-00121A
Workstation, GX620, 3.2GHZ,
512M RAM, VRS606-00009F
Workstation, GX280, 3.0GHZ,
512MB, 80GB,
VRS000-10014-001C VERIS, H/W
KIT, VERISON B,
VRS015-00020B KM-FG, VERIS
SERIES 7 PRINTER, VRS
	 	Texas
	9/7/2006

	 	Consolidated Graphics, Inc.
	 	Heidelberg USA, Inc.
	 	One new Polar Cutter 137XT;
one new Polar Transomat ER
130-5; one Polar Lift LW
1000-4; one new Polar Jogger
RA-4; one Scale for Polar
Joggers
	 	Texas
	25-Mar-04

	 	Copy-Mor Inc
	 	Bank of America Leasing
	 	SM102-6P+L
	 	Illinois
	10-Jun-04

	 	Copy-Mor Inc
	 	Bank of America Leasing
	 	Muller Martini Perfect Binder
	 	Illinois
	8-Jul-05

	 	Copy-Mor Inc.
	 	Amegy Bank
	 	IGEN3 Docucolor
	 	Illinois
	23-Dec-05

	 	Copy-Mor, Inc.
	 	Bank of America Leasing
	 	iGen3 Digital Press
	 	Illinois
	18-Mar-04

	 	Copy-Mor, Inc.
	 	Amegy Bank
	 	Docucolor 6060
	 	Illinois
	1-Jul-03

	 	Courier Printing Company
	 	Bank of America Leasing
	 	M-600 Web Press
	 	Tennessee
	31-Dec-03

	 	Courier Printing Company
	 	Bank of America Leasing
	 	Rotary Trimming Sys
	 	Tennessee
	28-Jun-04

	 	Digital Direct, Inc.
	 	Amegy Bank
	 	IGEN3 Docucolor
	 	Pennsylvania
	1-Jul-00

	 	Emerald City Graphics, Inc.
	 	Komori Leasing Incorporated
	 	L640-III
	 	Washington
	30-Dec-04

	 	Emerald City Graphics, Inc.
	 	Bank of America Leasing
	 	Evoline 102-E Cutter
	 	Washington
	29-Mar-04

	 	Emerald City Graphics, Inc.
	 	Amegy Bank
	 	Docucolor 6060
	 	Washington
	30-Dec-06

	 	Frederic Printing Company
	 	Bank of America Leasing
	 	KBA 8-color Planeta
	 	Colorado
	15-Apr-04

	 	Garner Printing Company
	 	Amegy Bank
	 	Docucolor 6060
	 	Iowa
	10-Jun-04

	 	GSL Fine Lithographers

(f/k/a Georges & Shapiro Lithograph)
	 	Bank of America Leasing
	 	Evoline 102-E Cutter
	 	California
	28-Nov-00

	 	Graphcom LLC
	 	G.E. Capital Corp
	 	Komori L640C
	 	Georgia
	01-Aug-02

	 	Graphcom LLC
	 	G.E. Capital Corp
	 	various prepress
	 	Georgia
	01-Aug-02

	 	Graphcom LLC
	 	G.E. Capital Corp
	 	various prepress
	 	Georgia
	17-Mar-06

	 	Ironwood Lithographers, Inc.
	 	Bank of Texas
	 	Komori LS640
	 	Arizona
	30-Dec-04

	 	Ironwood Lithographers, Inc.
	 	Bank of America Leasing
	 	Evoline 102-E Cutter
	 	Arizona
	28-Jun-04

	 	The Jarvis Press, Inc.
	 	Amegy Bank
	 	IGEN3 Docucolor
	 	Texas
	31-Jan-06

	 	Keys Printing Company
	 	Bank of Texas
	 	Komori LS640
	 	South Carolina
	21-May-04

	 	Keys Printing Company
	 	Amegy Bank
	 	Docucolor 6060/Ikon 9110
	 	South Carolina
	31-Mar-06

	 	Keys Printing Company
	 	Bank of America Leasing
	 	Polar cutting system
	 	South Carolina
	05-Nov-03

	 	Maximum Graphics, Inc.
	 	Loffler Business Systems
	 	Cannon Imagerunner 5000
	 	Minnesota
	29-Sep-04

	 	Maximum Graphics, Inc.
	 	Wells Fargo Leasing
	 	Buskro Inkjet
	 	Minnesota
	11-Dec-04

	 	Maximum Graphics, Inc.
	 	G.E. Capital Corp
	 	hasler Mail Machine
	 	Minnesota
	10-Dec-04

	 	Maximum Graphics, Inc.
	 	Wells Fargo Leasing
	 	Smith water treatment
	 	Minnesota
	31-Mar-06

	 	Maximum Graphics Inc.
	 	Bank of America Leasing
	 	Cannon Micr Station / copiers
	 	Minnesota
	31-Jan-06

	 	McKay Press, Inc.
	 	Bank of Texas
	 	Komori LS640
	 	Michigan

 

Schedule 1.1(b) - 2

 

	 	 	 	 	 	 	 	 	 
	Date	 	Company	 	Secured Party	 	Equipment Type	 	Jurisdiction
	15-Oct-04

	 	McKay Press, Inc.
	 	Amegy Bank
	 	IGEN3 Docucolor
	 	Michigan
	1-Jul-00

	 	Metropolitan Printing Services, Inc.
	 	Komori Leasing Incorporated
	 	L640-III
	 	Indiana
	14-Aug-03

	 	Mount Vernon Printing Company
	 	Komori Leasing Incorporated
	 	LS640-Series 4045
	 	Maryland
	01-Oct-03

	 	Kelmscott Communications LLC
	 	EKCC
	 	Creo CTP
	 	California
	03-Aug-03

	 	Kelmscott Communications LLC
	 	Ikon Financial Services
	 	Cannon Copiers
	 	California
	25-Mar-04

	 	Precision Litho, Inc.
	 	Bank of America Leasing
	 	CD102-6+L
	 	California
	30-Mar-04

	 	Precision Litho, Inc.
	 	Bank of America Leasing
	 	Evoline 102-E Cutter
	 	California
	21-Sep-99

	 	Printing Control Services, Incorporated
	 	US Bank Equipment Finance
	 	CD102-6 Press
	 	Washington
	10-Jun-04

	 	Printing Inc
	 	Bank of America Leasing
	 	Evoline 102-E Cutter
	 	Kansas
	17-Mar-06

	 	Printing, Inc.
	 	Bank of Texas
	 	Komori LS640
	 	Kansas
	31-Jan-06

	 	S&S Graphics, LLC
	 	Bank of Texas
	 	Komori LS640
	 	Maryland
	18-Jun-99

	 	S&S Graphics Property, LLC
	 	Key Bank Real Esatate Capital
	 	Real Estate
	 	Maryland
	30-Dec-04

	 	S&S Graphics, LLC
	 	Bank of America Leasing
	 	Evoline 102-E Cutter & A2

Folder/gluer
	 	Maryland
	01-Apr-03

	 	Spangler Graphics, LLC
	 	SEI
	 	SEI Security System
	 	Kansas
	10-Jun-04

	 	The Graphics Group, Inc.
	 	Bank of America Leasing
	 	Polar Cutter ED115 cutter
	 	Texas
	15-Dec-98

	 	Thousand Oaks Printing and
Specialties, Inc.
	 	G.E. Capital Corp
	 	Komori L628
	 	California
	10-Jun-04

	 	Thousand Oaks Printing and
Specialties, Inc.
	 	Bank of America Leasing
	 	Evoline 102-E Cutter
	 	California
	12-Mar-04

	 	Thousand Oaks Printing and
Specialties, Inc.
	 	Amegy Bank
	 	6060Docucolor/2 Imagerunner 110
	 	California
	12-Mar-04

	 	Tucker Printers, Inc.
	 	Amegy Bank
	 	IGEN3 Docucolor
	 	New York
	10-Jun-04

	 	Walnut Circle Press, Inc.
	 	Bank of America Leasing
	 	Evoline 102-E Cutter
	 	North Carolina
	15-Jan-04

	 	Watermark Press, Ltd.
	 	EKCC
	 	Printergy software & server
	 	California
	18-Aug-03

	 	Watermark Press, Ltd.
	 	EKCC
	 	Integris 800
	 	California
	27-Apr-04

	 	Wentworth Corporation
	 	Amegy Bank
	 	Docucolor 6060
	 	South Carolina
	30-Mar-04

	 	Western Lithograph Company
	 	Bank of America Leasing
	 	Evoline 102-E Cutter
	 	Texas
	1-Jul-00

	 	Western Lithograph Company
	 	Komori Leasing Incorporated
	 	L640-III
	 	Texas
	1-Feb-05

	 	Wetzel Brothers, LLC
	 	Komori Leasing Incorporated
	 	LS640-Series 4045
	 	Wisconsin
	30-Mar-04

	 	Wetzel Brothers, LLC
	 	Bank of America Leasing
	 	Litho Laminator/Mounter
	 	Wisconsin

 

Schedule 1.1(b) - 3

 

Schedule 1.1(c)

EXISTING LETTERS OF CREDIT

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Issue	 	 
	Issue Date	 	Beneficiary	 	Amount	 	Purpose
	February 16, 2004

	 	Davis Forbes Partners L.P.
	 	 	100,000.00	 	 	Lease Deposit-Am
Litho—Hayward
	April 1, 2004

	 	First Citizens Bank, as

Trustee
	 	 	2,074,667.00	 	 	Backup for Keys IRB
	May 3, 2004

	 	Bank of New York, As
Trustee
	 	 	1,990,993.00	 	 	Backup for Etheridge IRB
	July 28, 2004

	 	Bank of New York, As
Trustee
	 	 	3,216,767.00	 	 	Back up for Electric
City IRB Series 2000
	July 28, 2004

	 	First Citizens Bank, as

Trustee
	 	 	1,957,500.00	 	 	Back up for Electric
City IRB Series 1994
	February 6, 2006

	 	St Louis Graphics Arts

Pension
	 	 	1,200,786.00	 	 	Back up for pension
liability—Nies/Artcraft
	February 6, 2006

	 	GCC/IBT Supp Retire &

Disability
	 	 	480,580.53	 	 	Back up for disability
fund—Nies/Artcraft

Schedule 1.1(c) - 1

 

 

Schedule 2.1(a)

SCHEDULE OF LENDERS AND

COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	 	Revolving	 	 	LOC	 	 	LOC	 
	 	 	Committed	 	 	Commitment	 	 	Committed	 	 	Commitment	 
	Lender	 	Amount	 	 	Percentage	 	 	Amount	 	 	Percentage	 
	JPMorgan Chase Bank, N.A.
	 	$	45,000,000.00	 	 	 	29.0322580	 	 	$	5,806,451.60	 	 	 	29.0322580	 
	Wells Fargo Bank, National
Association
	 	$	35,000,000.00	 	 	 	22.5806452	 	 	$	4,516,129.04	 	 	 	22.5806452	 
	Bank of America, N.A
	 	$	35,000,000.00	 	 	 	22.5806452	 	 	$	4,516,129.04	 	 	 	22.5806452	 
	Comerica Bank
	 	$	10,000,000.00	 	 	 	6.4516129	 	 	$	1,290,322.58	 	 	 	6.4516129	 
	Wachovia Bank, National
Association
	 	$	10,000,000.00	 	 	 	6.4516129	 	 	$	1,290,322.58	 	 	 	6.4516129	 
	Amegy Bank National Association
	 	$	10,000,000.00	 	 	 	6.4516129	 	 	$	1,290,322.58	 	 	 	6.4516129	 
	Bank of Texas, N.A.
	 	$	10,000,000.00	 	 	 	6.4516129	 	 	$	1,290,322.58	 	 	 	6.4516129	 
	Total:
	 	$	155,000,000.00	 	 	 	100.000000000	%	 	$	20,000,000.00	 	 	 	100.000000000	%

 

 

 

Schedule 2.1(b)(i)

FORM OF NOTICE OF BORROWING FOR LOANS

                    , 200   

JPMorgan Chase Bank, N.A., as Administrative Agent

   under the Credit Agreement

   referred to below

712 Main Street

Houston, TX 77002

Attention: Steve Krueger

Ladies and Gentlemen:

Pursuant to subsection 2.1(b) of the Credit Agreement (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), dated as of October 6, 2006, among
CONSOLIDATED GRAPHICS, INC., a Texas corporation (the “Borrower”) and the other Credit
Parties identified therein, the banks and other financial institutions from time to time parties
thereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as Administrative Agent for the
Lenders, the Borrower hereby requests that the following:

	I.	 	Revolving Loans be made on [date] as follows (the “Proposed Borrowing”):

	 	 	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	Total Amount of Loans
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(2	)	 	Amount of (1) to be allocated	 	 
	 

	 	 	 	 	 	to LIBOR Rate Loans
	 	$                    

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	(3	)	 	Amount of (1) to be allocated
	 	 	 	 
	 

	 	 	 	 	 	to Alternate Base Rate Loans.
	 	$                    	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	(4	)	 	Interest Periods and amounts	 	 	 	 
	 

	 	 	 	 	 	to be allocated thereto in	 	 	 	 
	 

	 	 	 	 	 	respect of Eurodollar Tranches	 	 	 	 
	 

	 	 	 	 	 	(amounts must total (2)):	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	(i)
	 	one month.
	 	$                    
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	(ii)
	 	two months
	 	$                    	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	(iii)
	 	three months
	 	$                    	 	 

 

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	(iv)
	 	six months
	 	$                    	 	 

	 	 	 	 	 
	 

	 	Total LIBOR Rate Loans
	 	$                    

NOTE:          BORROWINGS MUST BE IN MINIMUM AMOUNTS OF (A) WITH RESPECT TO LIBOR RATE LOANS $2,500,000 AND
$100,000 INCREMENTS IN EXCESS THEREOF AND (B) WITH RESPECT TO ALTERNATE BASE RATE LOANS, $1,000,000
AND $100,000 INCREMENTS IN EXCESS THEREOF.

Terms defined in the Credit Agreement shall have the same meanings when used herein.

	II.	 	Swingline Loans be made on [date] as follows (the “Proposed Borrowing”):
Swingline Loans requested

	 	 	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	Total Amount of Loans
	 	                    

			
	NOTE:          	 	SWINGLINE LOAN BORROWINGS MUST BE IN MINIMUM AGGREGATE AMOUNTS OF $100,000 AND IN INTEGRAL AMOUNTS OF $50,000 IN
EXCESS THEREOF.

The undersigned hereby certifies that the following statements are true on the date hereof and
will be true on the date of the Proposed Borrowing:

(A) the applicable representations and warranties contained in the Credit Agreement and
in the other Credit Documents are and will be true and correct in all material respects,
both before and after giving effect to the Proposed Borrowing and to the application of the
proceeds thereof, with the same effect as though such representations and warranties had
been made on and as of the date of such Proposed Borrowing (it being understood that any
representation or warranty which by its terms is made as of a specified date shall be
required to be true and correct in all material respects only as of such specified date);
and

 

 

 

(B) no Default or Event of Default has occurred and is continuing, or would result from
such Proposed Borrowing or from the application of the proceeds thereof.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

 

Schedule 2.1(e)

[FORM OF REVOLVING NOTE]

REVOLVING NOTE

			
	 	 	 
	$                                        
	 	                    , 20             

FOR VALUE RECEIVED, the undersigned, CONSOLIDATED GRAPHICS, INC., a Texas corporation, hereby
unconditionally promises to pay, on the Maturity Date (as defined in the Credit Agreement referred
to below), to the order of ___(the “Lender”) at the office of JPMorgan Chase Bank,
N.A. located at 712 Main Street, Houston, TX 77002, Attention: Steve Krueger, in lawful money of
the United States of America and in immediately available funds, the principal amount of (a)
___DOLLARS ($___), or, if less, (b) the aggregate unpaid principal amount of
all Revolving Loans made by the Lender to the undersigned pursuant to Section 2.1 of the Credit
Agreement referred to below. The undersigned further agrees to pay interest in like money at such
office on the unpaid principal amount hereof and, to the extent permitted by law, accrued interest
in respect hereof from time to time from the date hereof until payment in full of the principal
amount hereof and accrued interest hereon, at the rates and on the dates set forth in the Credit
Agreement.

The holder of this Note is authorized to endorse the date and amount of each Loan and each
payment of principal and interest with respect thereto and its character as a LIBOR Rate Loan or an
Alternate Base Rate Loan on Schedule I annexed hereto and made a part hereof, or on a
continuation thereof which shall be attached hereto and made a part hereof, which endorsement shall
constitute prima facie evidence of the accuracy of the information endorsed;
provided, however, that the failure to make any such endorsement shall not affect
the obligations of the undersigned under this Note.

This Note is one of the Revolving Notes referred to in the Credit Agreement dated October 6,
2006 among Consolidated Graphics, Inc., a Texas corporation, the other Credit Parties identified
therein, the Lender, the other banks and financial institutions from time to time parties thereto
and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), and is entitled to the benefits
thereof. Terms used but not otherwise defined herein shall have the meanings provided in the
Credit Agreement.

Upon the occurrence of any one or more of the Events of Default specified in the Credit
Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable, all as provided therein. In the event this Note is not paid when due
at any stated or accelerated maturity, the Borrower agrees to pay, in addition to principal and
interest, all costs of collection, including reasonable attorneys’ fees.

 

 

 

All parties now and hereafter liable with respect to this Note, whether maker, principal,
surety, endorser or otherwise, hereby waive presentment, demand, protest and all other notices of
any kind.

Terms defined in the Credit Agreement are used herein with their defined meanings unless
otherwise defined herein. This Note shall be governed by, and construed and interpreted in
accordance with, the law of the State of Texas.

	 	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

 

SCHEDULE 1

to

Revolving Note

LOANS AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Principal	 	 	 	 	 	 	 
	 	 	Amount	 	 	Type	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Paid	 	 	 	 	 	 	 
	 	 	of	 	 	of	 	 	Interest	 	 	Interest	 	 	Maturity	 	 	or	 	 	Principal	 	 	Notation	 
	Date	 	Loan	 	 	Loan1	 	 	Rate	 	 	Period	 	 	Date	 	 	Converted	 	 	Balance	 	 	Made By	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	1	 	The type of Loan may be represented by
“L” for LIBOR Rate Loans or “ABR” for Alternate Base
Rate Loans.

 

 

 

Schedule 2.2(d)

[FORM OF SWINGLINE NOTE]

SWINGLINE NOTE

			
	 	 	 
	$5,000,000
	 	                    , 20   

FOR VALUE RECEIVED, the undersigned, CONSOLIDATED GRAPHICS, INC., a Texas corporation (the
“Borrower”), hereby unconditionally promises to pay, on each date specified for the payment
of principal and on the Maturity Date (as specified and defined in the Credit Agreement referred to
below), to the order of JPMORGAN CHASE BANK, N.A. (the “Swingline Lender”) at the office of
JPMorgan Chase Bank, N.A. located at 712 Main Street, Houston, TX 77002, Attention: Steve Krueger,
in lawful money of the United States of America and in immediately available funds, the principal
amount of (a) FIVE MILLION DOLLARS ($5,000,000), or, if less, (b) the aggregate unpaid principal
amount of all Swingline Loans made by the Swingline Lender to the undersigned pursuant to Section
2.2 of the Credit Agreement referred to below. The undersigned further agrees to pay interest in
like money at such office on the unpaid principal amount hereof from time to time from the date
hereof until payment in full of the principal amount hereof and accrued interest hereon, at the
rates and on the dates set forth in the Credit Agreement.

The holder of this Note is authorized to endorse the date and amount of each Swingline Loan
and each payment of principal and interest with respect thereto and its character as an Alternate
Base Rate Loan or otherwise on Schedule I annexed hereto and made a part hereof, or on a
continuation thereof which shall be attached hereto and made a part hereof, which endorsement shall
constitute prima facie evidence of the accuracy of the information endorsed;
provided, however, that the failure to make any such endorsement shall not affect
the obligations of the undersigned under this Note.

This Note is the Swingline Note referred to in the Credit Agreement dated as of October 6,
2006 among Consolidated Graphics, Inc., the other Credit Parties identified therein, the Lender,
the other banks and financial institutions from time to time parties thereto and JPMorgan Chase
Bank, N.A., as Administrative Agent (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), and is entitled to the benefits thereof. Terms used but not
otherwise defined herein shall have the meanings provided in the Credit Agreement.

Upon the occurrence of any one or more of the Events of Default specified in the Credit
Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable, all as provided therein. In the event this Note is not paid when due
at any stated or accelerated maturity, the Borrower agrees to pay, in addition to principal and
interest, all costs of collection, including reasonable attorneys’ fees, all as contemplated in
Section 11.5 of the Credit Agreement.

 

 

 

All parties now and hereafter liable with respect to this Note, whether maker, principal,
surety, endorser or otherwise, hereby waive presentment, demand, protest and all other notices of
any kind.

Terms defined in the Credit Agreement are used herein with their defined meanings unless
otherwise defined herein. This Note shall be governed by, and construed and interpreted in
accordance with, the law of the State of Texas.

	 	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

 

Schedule 2.9

[FORM OF NOTICE FOR CONVERSION/EXTENSION]

[Date]

JPMorgan Chase Bank, N.A., as Administrative Agent

   under the Credit Agreement

   referred to below

712 Main Street

Houston, TX 77002

Attention: Steve Krueger

Ladies and Gentlemen:

Pursuant to Section 2.9 of the Credit Agreement (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”) dated as of October 6, 2006 among
CONSOLIDATED GRAPHICS, INC., a Texas corporation (the “Borrower”), the other Credit Parties
identified therein, the banks and other financial institutions from time to time parties thereto
(the “Lenders”) and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders, the
Borrower hereby requests conversion or extension of the following Revolving Loans be made on [date]
as follows (the “Proposed Conversion/Extension”):

	 	 	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	Total Amount of Loans to be	 	 
	 

	 	 	 	 	 	converted/extended
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(2	)	 	Amount of (1) to be allocated	 	 
	 

	 	 	 	 	 	to LIBOR Rate Loans
	 	$                    

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	(3	)	 	Amount of (1) to be allocated
	 	 	 	 
	 

	 	 	 	 	 	to Alternate Base Rate Loans
	 	$                    	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	(4	)	 	Interest Periods and amounts	 	 	 	 
	 

	 	 	 	 	 	to be allocated thereto in	 	 	 	 
	 

	 	 	 	 	 	respect of Eurodollar Tranches	 	 	 	 
	 

	 	 	 	 	 	(amounts must total (2)):	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	(i)
	 	one month
	 	$                    
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	(ii)
	 	two months
	 	$                    	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	(iii)
	 	three months
	 	$                    	 	 

 

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	(iv)
	 	six months
	 	$                    	 	 

	 	 	 	 	 
	 

	 	Total LIBOR Rate Loans
	 	$                    

			
	NOTE:          	 	PARTIAL CONVERSIONS OF ALTERNATE BASE RATE LOANS SHALL BE IN AN
AGGREGATE PRINCIPAL AMOUNT OF $2,500,000 AND $100,000 INCREMENTS IN
EXCESS THEREOF

Terms defined in the Credit Agreement shall have the same meanings when used herein.

The undersigned hereby certifies that the following statements are true on the date hereof and
will be true on the-date of the Proposed Conversion/Extension:

(A) the applicable representations and warranties contained in the Credit Agreement and
in the other Credit Documents are and will be true and correct in all material respects,
both before and after giving effect to the Proposed Conversion/Extension and to the
application of the proceeds thereof, with the same effect as though such representations and
warranties had been made on and as of the date of such Proposed Conversion/Extension (it
being understood that any representation or warranty which by its terms is made as of a
specified date shall be required to be true and correct in all material respects only as of
such specified date); and

(B) no Default or Event of Default has occurred and is continuing, or would result from
such Proposed Conversion/Extension or from the application of the proceeds thereof.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

 

Schedule 2.17

Section 2.17 Certificate

Reference is hereby made to the Credit Agreement, dated as of October 6, 2006 among
CONSOLIDATED GRAPHICS, INC., a Texas corporation (the “Borrower”), the other Credit Parties
identified therein, the several banks and other financial institutions from time to time parties
thereto (collectively, the “Lenders”; individually, a “Lender”) and JPMorgan Chase
Bank, N.A., as agent for the Lenders hereunder (in such capacity, the “Administrative
Agent”) (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”). Pursuant to the provisions of Section 2.17 of the Credit Agreement, the
undersigned hereby certifies that it is not a “bank” as such term is used in Section 881(c)(3)(A)
of the Internal Revenue Code of 1986, as amended.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

 

Schedule 3.3

CORPORATE EXISTENCE

None.

 

Schedule 3.3 - 1

 

 

Schedule 3.6

MATERIAL LITIGATION

As of Closing Date

None.

 

Schedule 3.6 - 1

 

 

Schedule 3.9

ERISA — REPORTABLE EVENTS AND OTHER

As of Closing Date

None.

 

 

Schedule 3.9 — 1

 

 

Schedule 3.12

SUBSIDIARIES OF CONSOLIDATED GRAPHICS, INC.

As of Closing Date

(See notes on last page)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	State	 	Shares
	Operating Companies	 	Parent	 	of Inc	 	Outstanding
	A&A Amalgamated Printing Enterprises, Inc.

	 	CGX
	 	CA
	 	 	1,000	 
	AGS Custom Graphics, Inc.

	 	AGS
	 	MD
	 	 	100	 
	American Lithographers, Inc.

	 	CGX
	 	CA
	 	 	1,000	 
	Apple Graphics, Inc.

	 	CGX
	 	CA
	 	 	1,000	 
	Automated Graphic Imaging/Copy Center, Inc.

	 	AGS
	 	DC
	 	 	500	 
	Automated Graphic Systems, LLC

	 	Westland
Printers, Inc.
	 	MD
	 	 	1,000	 
	bigINK Mailing & Fulfillment Company

	 	CGX
	 	KS
	 	 	1,000	 
	Bridgetown Printing Co.

	 	CGX
	 	OR
	 	 	500	 
	CDS Publications, Inc.

	 	CGX
	 	OR
	 	 	1,000	 
	Chas. P. Young Company

	 	CGX
	 	TX
	 	 	100,000	 
	Clear Visions, Inc.

	 	CGX
	 	TX
	 	 	1,000	 
	Consolidated Carqueville Printing Company

	 	CGX
	 	IL
	 	 	1,000	 
	Consolidated Graphic Prague s.r.o.

	 	Consolidated
Graphic Services,
Inc.
	 	Czech

Republic	 	 	 	 
	Consolidated Graphics California

	 	CGX
	 	CA
	 	 	100	 
	Copy-Mor, Inc.

	 	CGX
	 	IL
	 	 	1,000	 
	Courier Printing Company

	 	CGX
	 	TN
	 	 	1,000	 
	Digital Direct, Inc.

	 	CGX
	 	PA
	 	 	10,000	 
	Eagle Press, Inc.

	 	CGX
	 	CA
	 	 	500	 
	Electric City Printing Company

	 	CGX
	 	SC
	 	 	100,000	 
	Emerald City Graphics, Inc.

	 	CGX
	 	WA
	 	 	1,000	 
	Fittje Bros. Printing Co.

	 	CGX
	 	CO
	 	 	1,000	 
	Frederic Printing Company

	 	CGX
	 	CO
	 	 	1,000	 
	Garner Printing Company

	 	CGX
	 	IA
	 	 	1,000	 
	Geyer Printing Company, Inc.

	 	CGX
	 	PA
	 	 	1,000	 
	Graphcom LLC

	 	Austin

Printing

Company
	 	GA
	 	 	100	 
	Graphic Technology of Maryland, Inc.

	 	CGX
	 	MD
	 	 	100,000	 
	Grover Printing Company

	 	CGX
	 	TX
	 	 	100,000	 
	GSL Fine Lithographers

	 	CGX
	 	CA
	 	 	1,000	 
	H&N Printing & Graphics, Inc.

	 	CGX
	 	MD
	 	 	100	 
	Heritage Graphics, Inc.

	 	CGX
	 	TX
	 	 	1,000	 
	Image Systems, Inc.

	 	CGX
	 	WI
	 	 	1,000	 

 

Schedule 3.12 - 1

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	State	 	Shares
	Operating Companies	 	Parent	 	of Inc	 	Outstanding
	Ironwood Lithographers, Inc.

	 	CGX
	 	AZ
	 	 	100,000	 
	Kelmscott Communications LLC

	 	CGX
	 	DE
	 	 	1,000	 
	Keys Printing Company

	 	CGX
	 	SC
	 	 	1,286,840	 
	Lincoln Printing Corporation

	 	CGX
	 	IN
	 	 	100,000	 
	Maryland Composition.com, Inc.

	 	AGS
	 	MD
	 	 	124,000	 
	Maximum Graphics, Inc.

	 	CGX
	 	MN
	 	 	1,000	 
	Maxwell Graphic Arts, Inc.

	 	CGX
	 	NJ
	 	 	1,000	 
	McKay Press, Inc.

	 	CGX
	 	MI
	 	 	100,000	 
	Mercury Printing Company, Inc.

	 	CGX
	 	TN
	 	 	1,000	 
	Mercury Web Printing, Inc.

	 	CGX
	 	KS
	 	 	1,000	 
	Metropolitan Printing Services, Inc.

	 	CGX
	 	IN
	 	 	100,000	 
	Mobility, Inc.

	 	CGX
	 	VA
	 	 	500	 
	Mount Vernon Printing Company

	 	CGX
	 	MD
	 	 	1,000	 
	Multiple Images Printing, Inc.

	 	CGX
	 	IL
	 	 	1,000	 
	Nies/Artcraft, Inc.

	 	CGX
	 	MO
	 	 	1,00	 
	Piccari Press, Inc.

	 	CGX
	 	PA
	 	 	1,000	 
	Precision Litho, Inc.

	 	CGX
	 	CA
	 	 	500	 
	Pride Printers, Inc.

	 	CGX
	 	MA
	 	 	100,000	 
	Printing Control Services, Incorporated

	 	CGX
	 	WA
	 	 	1,000	 
	Printing Corporation of America

	 	CGX
	 	MD
	 	 	100,000	 
	Printing, Inc.

	 	CGX
	 	KS
	 	 	1,000	 
	Rush Press, Inc.

	 	CGX
	 	CA
	 	 	100	 
	S & S Graphics, LLC

	 	Mount

Vernon
	 	MD
	 	 	100	 
	Spangler Graphics, LLC

	 	Gilliand

Printing
	 	KS
	 	 	100	 
	Spangler Graphics Property, LLC

	 	Gilliand

Printing
	 	KS
	 	 	100	 
	StorterChilds Printing Co., Inc.

	 	CGX
	 	FL
	 	 	4,654	 
	Superior Colour Graphics, Inc.

	 	CGX
	 	MI
	 	 	100,000	 
	Tewell Warren Printing Company

	 	CGX.
	 	CO
	 	 	500	 
	The Etheridge Company

	 	CGX
	 	MI
	 	 	1,000	 
	The Graphics Group, Inc.

	 	CGX
	 	TX
	 	 	1,000	 
	The Jarvis Press, Inc.

	 	CGX
	 	TX
	 	 	1,000	 
	The John C. Otto Company, Inc.

	 	CGX
	 	MA
	 	 	100,000	 
	The Printery, Inc.

	 	CGX
	 	WI
	 	 	20,889	 
	Theo. Davis Sons, Incorporated

	 	CGX
	 	NC
	 	 	100,000	 
	Thousand Oaks Printing and Specialties, Inc.

	 	CGX
	 	CA
	 	 	2,625	 
	Tucker Printers, Inc.

	 	CGX
	 	TX
	 	 	1,000	 
	Tulsa Litho Company

	 	Superb
	 	OK
	 	 	500	 
	Tursack Incorporated

	 	CGX
	 	PA
	 	 	10	 

 

Schedule 3.12 - 2

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	State	 	Shares
	Operating Companies	 	Parent	 	of Inc	 	Outstanding
	Valcour Printing, Inc.

	 	CGX
	 	MO
	 	 	1,000	 
	Walnut Circle Press, Inc.

	 	CGX
	 	NC
	 	 	1,000	 
	Watermark Press, Ltd.

	 	CGX
	 	CA
	 	 	1,000	 
	Wentworth Corporation

	 	CGX
	 	SC
	 	 	1,000	 
	Western Lithograph Company

	 	CGX
	 	TX
	 	 	2,500	 
	Westland Printers, Inc.

	 	CGX
	 	MD
	 	 	1,000	 
	Wetzel Brothers, LLC

	 	Image Systems
	 	WI
	 	 	100,100	 
	Woodridge Press, Inc.

	 	CGX
	 	CA
	 	 	2,100	 
	Non-Operating Companies
	 	 	 	 	 	 	 	 
	Consolidated Graphics Development Company

	 	CGX
	 	DE
	 	 	1,000	 
	Consolidated Graphics Development LLC

	 	CGDC
	 	DE
	 	 	1,000	 
	Consolidated Graphics Services, Inc.

	 	CGX
	 	DE
	 	 	1,000	 
	CGML, LLC

	 	CGD-LLC
	 	DE
	 	 	1,000	 
	CGML General Partner, Inc.

	 	CGX
	 	DE
	 	 	1,000	 
	CGX California Contractors, Inc.

	 	CGX
	 	CA
	 	 	40,000	 
	CGXmedia, Inc.

	 	CGX
	 	TX
	 	 	1,000	 
	Consolidated Graphics Management, Ltd.

	 	CGML-GP
	 	TX	 	 	 	 
	Consolidated Graphics Properties, Inc.

	 	CGML-LLC

CGX
	 	TX
	 	 	100,000	 
	Consolidated Graphics Properties II, Inc.

	 	CGX
	 	TX
	 	 	100,000	 
	Columbia Color, Inc.

	 	CGX
	 	CA
	 	 	100,000	 
	Gulf Printing Company

	 	CGX
	 	TX
	 	 	100,000	 
	S & S Graphics Property, LLC

	 	Mount Vernon
	 	DE
	 	 	100	 
	Superb Printing Company

	 	CGX
	 	TX
	 	 	100,000	 
	Inactive or Dormant Companies
	 	 	 	 	 	 	 	 
	Byrum Lithographing Co.

	 	CGX
	 	OH
	 	 	1,000	 
	Austin Printing Company, Inc.

	 	CGX
	 	GA
	 	 	1,000	 
	Chas. P. Young Company, Inc.

	 	CGX
	 	NY
	 	 	1,000	 
	Consolidated Graphics California

	 	CGX
	 	CA
	 	 	100	 
	Direct Color, Inc.

	 	CGX
	 	CA
	 	 	25,000	 
	Eastwood Printing Corporation

	 	CGX
	 	CO
	 	 	1,000	 
	Gilliland Printing, Inc.

	 	CGX
	 	KS
	 	 	1,000	 
	Graphic Communications, Inc.

	 	CGX
	 	CA
	 	 	100,000	 
	Graphion, Inc.

	 	CGX
	 	CA
	 	 	100	 
	Gritz-Ritter Graphics, Inc.

	 	CGX
	 	CO
	 	 	36,000	 
	Heath Printers, Inc.

	 	CGX
	 	WA
	 	 	100,000	 
	Maxwell Graphic Arts, Inc.

	 	CGX
	 	NJ
	 	 	1,000	 

 

Schedule 3.12 - 3

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	State	 	Shares
	Operating Companies	 	Parent	 	of Inc	 	Outstanding
	Serco Forms, LLC

	 	bigINK

Mercury
	 	KS	 	 	 	 

Notes and additional information:

With the exception of the three partnerships, 100% of the outstanding shares of each Subsidiary are
owned by the corporation shown under “Parent”.

The three partnerships and their ownership (or partnership interest) are as follows:

     Serco Forms, LLC, a Kansas limited liability company

          bigINK Mailing and Fulfillment Company  — 50% member

          Mercury Web Printing, Inc. — 50% member

     Consolidated Graphics Management, Ltd., a Texas limited partnership

          CGML General Partner, Inc. — 1% general partner

          CGML, LLC — 99% limited partner

     Veritas Document Solutions, LLC, a Delaware limited liability company

          Superb Printing Company — a 49% member

There are no outstanding options, warrants, or rights of conversion, purchase or similar rights
with respect to any class of Capital Stock or other equity interests any of the Subsidiaries.

Ownership of all corporations is represented by a single share certificate and by a single class of
stock, except for the following:

     Keys Printing Company — two share certificates, one for 1,118,575 shares and the other

          for 168,265 shares (1,286,840 shares in total)

     Theo. Davis Sons, Incorporated — two share certificates, one for 1,000 shares of Class A 

          and the other for 99,000 shares of Class B (100,000 shares in total)

     Wetzel Brothers , LLC — two unit certificates, one for 100,000 units and the other for 100

          units (100,100 units in total)

 

Schedule 3.12 - 4

 

Schedule 3.16

INTELLECTUAL PROPERTY

As of Closing Date

	 	 	 	 	 
	Owner	 	Property Type	 	Property Description
	Consolidated
Graphics, Inc.

	 	Service Mark Application
	 	CrossMedia (words only)

serial # 78953775
	Consolidated
Graphics, Inc.

	 	Trademark Application
	 	Inspire (words only)

serial # 78953745
	Consolidated
Graphics, Inc.

	 	Trademark and
Service Mark
Application
	 	CGXSolutions (words only)

serial # 78953745
	Consolidated Graphics, Inc.

	 	Registered Service Mark
	 	Consolidated Graphics

(words only)

serial # 75943682

Registration # 2,562,963
	Consolidated
Graphics, Inc.

	 	Registered Service Mark
	 	ConsolidatedGraphics

(words, letters, and/or numbers in stylized form)

serial # 75943769

Registration # 2,535,668
	Consolidated
Graphics, Inc.

	 	Registered
Trademark and
Service Mark
	 	OPAL (words only)

serial # 76011854

Registration # 2,535,720
	Consolidated
Graphics, Inc.

	 	Registered
Trademark and
Service Mark
	 	COIN (words only)

serial # 76148738

Registration # 2,597,213
	Consolidated
Graphics, Inc.

	 	Registered Service Mark
	 	CGXMedia (words only)

serial # 76157156

Registration # 2,577,761
	Byrum Lithographing
Co.

	 	Registered Trademark
	 	Bychrome (words only)

serial # 73704452

Registration # 1,550,090

 

Schedule 3.16 - 1

 

	 	 	 	 	 
	Owner	 	Property Type	 	Property Description
	Electric City Printing Company

	 	Registered Service Mark
	 	The Printer (words and design)

serial # 74141796

Registration # 1,716,780
	Electric City Printing Company

	 	Registered Service Mark
	 	(design only)

serial # 73770693

Registration # 1,592,473
	Kelmscott Communications, LLC

	 	Registered Service Mark
	 	Ascentra New Media

(words only)

serial # 76141085

Registration # 2,745,785
	Kelmscott Communications, LLC

	 	Registered Service Mark
	 	Kelmscott Communications

(words only)

serial # 75709806

Registration # 2,418,395
	Kelmscott Communications, LLC

	 	Registered Service Mark
	 	(design only)

serial # 75686947

Registration # 2,518,071
	Wetzel Brothers, Inc.

	 	Registered Trademark
	 	Duocal (words only)

serial # 76634685

Registration # 3,131,707
	Wetzel Brothers, Inc.

	 	Registered Service Mark
	 	(design only)

serial # 76574415

Registration # 2,937,480
	Wetzel Brothers, Inc.

	 	Registered Service Mark
	 	Power Of Persuasion

(words only)

serial # 76574409

Registration # 2,980,563
	Wetzel Brothers, Inc.

	 	Registered Service Mark
	 	Wetzel Brothers (words only)

serial # 76574408

Registration # 2,965,973
	Electric City Printing Company

	 	Patent
	 	Two-Step Metal Salicide
Semiconductor Process
Application # 08/828,428

U.S. Patent # 5,908,314

Filed: March 28, 1997

Issued: June 1, 1999

 

Schedule 3.16 - 2

 

	 	 	 	 	 
	Owner	 	Property Type	 	Property Description
	Copy-Mor, Inc.

	 	Canceled Service Mark
	 	CMI (design plus words, letters, and/or numbers)

serial # 74391265

Registration # 1,820,296
	Copy-Mor, Inc.

	 	Canceled Trademark
	 	CMI The Print Monitor

(design plus words, letters, and/or numbers)

serial # 74646419

Registration # 1,960,147
	Wace (U.S.A.), Inc.

	 	Canceled Service Mark
	 	The Etheridge Company

(words only)

serial # 74725939

Registration # 2,050,358

Due to the nature of its business, the Obligor also holds a variety of non-registered copyrights
(including clip art, marketing brochures, etc.) which are not material to the operation of its
business and which may be licensed to third parties in a variety of agreements (such as web site
user agreements, etc.) which are not material to the operation of its business.

Also due to the nature of its business, the Obligor holds a variety of common law trademarks
(including logos, slogans, etc.) and trade dress rights which are not registered and which are not
material to the operation of its business.

 

Schedule 3.16 - 3

 

Schedule 3.19(a)

LOCATIONS OF REAL PROPERTY

	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	City	 	County	 	State
	Chas. P. Young Company

	 	1616 McGowan
	 	Houston
	 	Harris
	 	TX
	Columbia Color, Inc.

	 	12078 Florence Avenue
	 	Santa Fe Springs
	 	Los Angeles
	 	CA
	Consolidated Carqueville
Printing Company

	 	1541 Bourbon Parkway
	 	Streamwood
	 	Cook
	 	IL
	Consolidated Carqueville
Printing Company

	 	1536 Bourbon Parkway
	 	Streamwood
	 	Cook
	 	IL
	Tulsa Litho Company

	 	4133 S. 72nd East Avenue
	 	Tulsa
	 	Tulsa
	 	OK
	Eagle Press, Inc.

	 	8111 37th Avenue
	 	Sacramento
	 	Sacramento
	 	CA
	Electric City Printing Company

	 	730 Hampton Road
	 	Williamston
	 	Anderson
	 	SC
	Frederic Printing Company

	 	14701 East 38th Ave.
	 	Aurora
	 	Adams
	 	CO
	Garner Printing Company

	 	1697 NE 53rd Ave
	 	Des Moines
	 	Polk
	 	IA
	GSL Fine Lithographers

(f/k/a Georges & Shapiro
Lithograph, Inc.)

	 	8386 Rovana Circle
	 	Sacramento
	 	Sacramento
	 	CA
	Grover Printing Company

	 	5829 Beverly Hill
	 	Houston
	 	Harris
	 	TX
	Heritage Graphics, Inc.

	 	2926 North 33rd Ave
	 	Phoenix
	 	Maricopa
	 	AZ
	Ironwood Lithographers, Inc.

	 	455 S. 52nd St
	 	Tempe
	 	Maricopa
	 	AZ
	Maximum Graphics, Inc.

	 	1245 Lakeview Drive
	 	Chaska
	 	Carver
	 	MN
	Mobility, Inc.

	 	6701 Janway Road
	 	Richmond
	 	Henrico
	 	VA
	Multiple Images Printing, Inc.

	 	767 Industrial Dr
	 	Elmhurst
	 	Dupage
	 	IL
	Nies/Artcraft, Inc.

	 	5900 Berthold Drive
	 	St. Louis
	 	St. Louis
	 	MO
	Precision Litho, Inc.

	 	1185 Joshua Way &

2630 Business Park Drive
	 	Vista
	 	San Diego
	 	CA
	Printing , Inc.

	 	344-356 North St. Francis
	 	Wichita
	 	Sedgwick
	 	KS
	Printing , Inc. (Metro Building)

	 	627 East 3rd
	 	Wichita
	 	Sedgwick
	 	KS
	Printing . Inc. (Swiss Chalet)

	 	622 East 3rd
	 	Wichita
	 	Sedgwick
	 	KS
	S&S Graphics, LLC

	 	14880 Sweitzer Lane
	 	Laurel
	 	Prince Georges
	 	MD
	Spangler Graphics, LLC

	 	2930 & 2950 South 44th
Street
	 	Kansas City
	 	Wyandotte
	 	KS
	StorterChilds Printing Co., Inc.

	 	1540 Waldo Road
	 	Gainesville
	 	Alachua
	 	FL
	Superior Colour Graphics, Inc.

	 	381 South Pitcher Street
	 	Kalamazoo
	 	Kalamazoo
	 	MI
	Tewell Warren Printing Company

	 	4710 Lipan
	 	Denver
	 	Denver
	 	CO

 

Schedule 3.19(a) - 1

 

	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	City	 	County	 	State
	The Graphics Group, Inc.

	 	2801-13 Taylor St
	 	Dallas
	 	Dallas
	 	TX
	The Graphics Group, Inc.

	 	2802-22 Taylor St
	 	Dallas
	 	Dallas
	 	TX
	The Jarvis Press, Inc.

	 	9112 Viscount
	 	Dallas
	 	Dallas
	 	TX
	The Jarvis Press, Inc.

	 	9112 Permier Row
	 	Dallas
	 	Dallas
	 	TX
	The John C. Otto Company, Inc.

	 	341 Shaker Road
	 	East Longmeadow
	 	Hampden
	 	MA
	The Printery, Inc.

	 	2405 S. Moorland
	 	New Berlin
	 	Waukesha
	 	WI
	Theo Davis Sons Incorporated

	 	1415 West Gannon Ave
	 	Zebulon
	 	Wake
	 	NC
	Tursack Incorporated

	 	701 Hemlock Road
	 	Morgantown
	 	Berks
	 	PA
	Walnut Circle Press, Inc.

	 	308 Friendship Drive
	 	Greensboro
	 	Guilford
	 	NC
	bigINK Mailing & Fulfillment
Company
(f/k/a Web Graphics,
Inc.)

	 	625 N. Washington
	 	Wichita
	 	Sedgwick
	 	KS
	Western Lithograph Company

	 	4340 Directors Row
	 	Houston
	 	Harris
	 	TX
	Western Lithograph Company

	 	4335 Directors Row
	 	Houston
	 	Harris
	 	TX
	Woodbridge Press, Inc.

	 	3070 East Ceena Court
	 	Anaheim
	 	Orange
	 	CA

 

Schedule 3.19(a) - 2

 

Schedule 3.19(b)

LOCATIONS OF COLLATERAL

	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	City	 	County	 	State
	A&A Amalgamated Printing Enterprises,
Inc.

	 	855 N. Cahuenga Blvd
	 	Hollywood
	 	Los Angeles
	 	CA
	AGS Custom Graphics, Inc.

	 	8107 Bavaria Road
	 	Macedonia
	 	Summit
	 	OH
	American Lithographers, Inc.

	 	2629 Fifth Street
	 	Sacramento
	 	Sacramento
	 	CA
	American Lithographers, Inc.

	 	21062 Forbes Street
	 	Hayward
	 	Alameda
	 	CA
	Apple Graphics, Inc.

	 	1857 Business Center Dr.
	 	Duarte
	 	Los Angeles
	 	CA
	Apple Graphics, Inc.

	 	1858 Evergreen St.
	 	Duarte
	 	Los Angeles
	 	CA
	Automated Graphic Systems, Inc.

	 	1090 Vermont Avenue NW
	 	Washington, D.C.
	 	District of Columbia
	 	DC
	Automated Graphic Systems, Inc.

	 	2375 Harrisburg Pike
	 	Columbus
	 	Franklin
	 	OH
	Automated Graphic Systems, Inc.

	 	179 Wayland Square
	 	Providence
	 	Providence
	 	RI
	Automated Graphic Systems, Inc.

	 	530 New London Turnpike
	 	Glastonbury
	 	Hartford
	 	CT
	Automated Graphic Systems, Inc.

	 	4590 Graphic Drive
	 	White Plains
	 	Charles
	 	MD
	Automated Graphics Systems, LLC

	 	22001 Loudoun Country Pwky
	 	Ashburn
	 	Loudoun
	 	VA
	bigINK Mailing & Fulfillment Company

	 	2901 S. Madison
	 	Wichita
	 	Sedgwick
	 	KS
	Bridgetown Printing Company

	 	424 NW 14th Avenue
	 	Portland
	 	Mutnomah
	 	OR
	CDS Publications, Inc.

	 	2661 South Pacific Highway
	 	Medford
	 	Jackson
	 	OR
	CDS Publications, Inc.

	 	2603 South Pacific Highway
	 	Medford
	 	Jackson
	 	OR
	CDS Publications, Inc.

	 	2055 Lars Way
	 	Medford
	 	Jackson
	 	OR
	Chas. P. Young Company

	 	1616 McGowen
	 	Houston
	 	Harris
	 	TX
	Clear Visions, Inc.

	 	121 Interpark Blvd, No. 1204
	 	San Antonio
	 	Bexar
	 	TX
	Clear Visions, Inc.

	 	121 Interpark Blvd, No. 801
	 	San Antonio
	 	Bexar
	 	TX
	Columbia Color, Inc.

	 	12078 Florence Avenue
	 	Santa Fe Springs
	 	Los Angeles
	 	CA
	Consolidated Carqueville Printing Company

	 	1541 Bourbon Parkway
	 	Streamwood
	 	Cook
	 	IL
	Consolidated Carqueville Printing Company

	 	1536 Bourbon Parkway
	 	Streamwood
	 	Cook
	 	IL
	Consolidated Graphics California

	 	800 Corporate Way
	 	Fremont
	 	Alameda
	 	CA
	Consolidated Graphics, Inc. (Corporate
Office)

	 	Shell Two Plaza 910 Louisiana
	 	Houston
	 	Harris
	 	TX
	Consolidated Graphics, Inc. (Corporate
Office)

	 	5858 Westheimer Dr, Suite 200
	 	Houston
	 	Harris
	 	TX
	Copy-Mor, Inc.

	 	1716 W. Grand Ave
	 	Chicago
	 	Cook
	 	IL
	Courier Printing Company

	 	1 Courier Place
	 	Smyma
	 	Rutherford
	 	TN
	Eagle Press, Inc.

	 	8131 37th Ave.
	 	Sacramento
	 	Sacramento
	 	CA
	Eagle Press, Inc.

	 	8111 37th Ave
	 	Sacramento
	 	Sacramento
	 	CA
	Eastwood Printing Corporation

	 	2901 Blake Street
	 	Denver
	 	Denver
	 	CO
	Electric City Printing Company

	 	730 Hampton Road
	 	Williamston
	 	Anderson
	 	SC
	Emerald City Graphics, Inc.

	 	23328 66th Ave
	 	Kent
	 	King
	 	WA

 

Schedule 3.19(a) - 1

 

	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	City	 	County	 	State
	Fittje Brothers Printing Company

	 	2668 Durango Drive
	 	Colorado Springs
	 	El Paso
	 	CO
	Fittje Brothers Printing Company

	 	2802-52-Delta Dr.
	 	Colorado Springs
	 	El Paso
	 	CO
	Frederic Printing Company

	 	14701 East 38th Ave.
	 	Aurora
	 	Adams
	 	CO
	Gamer Printing Company

	 	1697 NE 53rd Ave
	 	Des Moines
	 	Polk
	 	IA
	Garner Publishing Company

	 	1672 NE 53rd Ave
	 	Des Moines
	 	Polk
	 	IA
	Georges & Shapiro Lithograph, Inc.

	 	8386 Rovana Circle
	 	Sacramento
	 	Sacramento
	 	CA
	Geyer Printing Company, Inc.

	 	3700 Bigelow Blvd.
	 	Pittsburgh
	 	Allegheny
	 	PA
	Graphcom LLC

	 	2300 Defoor Hills Road
	 	Atlanta
	 	Fulton
	 	GA
	Graphic Technology of Maryland, Inc.

	 	8620 Old Dorsey Run Road
	 	Jessup
	 	Howard
	 	MD
	Grover Printing Company

	 	5829 Beverly Hill
	 	Houston
	 	Harris
	 	TX
	H & N Printing & Graphics, Inc.

	 	1913 Greenspring Dr
	 	Timonium
	 	Baltimore
	 	MD
	Heritage Graphics, Inc.

	 	2926 North 33rd Ave
	 	Phoenix
	 	Maricopa
	 	AZ
	Heritage Graphics, Inc.

	 	3328-30 West Thomas Road
	 	Phoenix
	 	Maricopa
	 	AZ
	Image Systems, Inc.

	 	N94 W14530 Garwin Mace
	 	Menomonee Falls
	 	Milwaukee
	 	WI
	Ironwood Lithographers, Inc.

	 	455 S. 52nd St
	 	Tempe
	 	Maricopa
	 	AZ
	Kelmscott Communications LLC

	 	2485 Da Vinci
	 	Irvine
	 	Orange
	 	CA
	Kelmscott Communications LLC

	 	1621 Browning
	 	Irvine
	 	Orange
	 	CA
	Keys Printing Company

	 	1004 Keys Drive
	 	Greenville
	 	Greenville
	 	SC
	Lincoln Printing Corporation

	 	3310 Congressional Parkway
	 	Fort Wayne
	 	Allen
	 	IN
	Lincoln Printing Corporation

	 	2120 E. Washington Blvd
Ste B
	 	Fort Wayne
	 	Allen
	 	IN
	Maryland Composition.com, Inc.

	 	6711 Dover Rd
	 	Glen Burnie
	 	Anne Arundel
	 	MD
	Maryland Composition.com, Inc.

	 	31 N. Lansdowne Ave
	 	Landsdowne
	 	Delaware
	 	PA
	Maximum Graphics, Inc.

	 	1245 Lakeview Drive
	 	Chaska
	 	Carver
	 	MN
	McKay Press, Inc.

	 	215 State Street
	 	Midland
	 	Midland
	 	MI
	Mercury Printing Company, Inc.

	 	4650 Shelby Air Drive
	 	Memphis
	 	Shelby
	 	TN
	Metropolitan Printing Service, Inc.

	 	728 South Morton
	 	Bloomington
	 	Monroe
	 	IN
	Metropolitan Printing Service, Inc.

	 	720 South Morton
	 	Bloomington
	 	Monroe
	 	IN
	Mobility, Inc.

	 	6701 Janway Road
	 	Richmond
	 	Henrico
	 	VA
	Mount Vernon Printing Company

	 	3229 Hubbard Road
	 	Landover
	 	Prince Georges
	 	MD
	Multiple Images Printing, Inc.

	 	767 Industrial Dr
	 	Elmhurst
	 	Dupage
	 	IL
	Nies/Artcraft, Inc.

	 	5900 Berthold Avenue
	 	St. Louis
	 	St. Louis
	 	MO
	Nies/Artcraft, Inc.

	 	1401 Pierce Avenue
	 	St. Louis
	 	St. Louis
	 	MO
	Piccari Press, Inc.

	 	315 West Street RD.
	 	Warminster
	 	Bucks
	 	PA
	Precision Litho, Inc.

	 	1185 Joshua Way &
	 	Vista
	 	San Diego
	 	CA
	Precision Litho, Inc.

	 	2630 Business Park Drive
	 	Vista
	 	San Diego
	 	CA
	Precision Litho, Inc.

	 	1280 Activity Dr. #A6331
	 	Vista
	 	San Diego
	 	CA
	Pride Printers

	 	215 Salem Street
	 	Woburn
	 	Middlesex
	 	MA

 

Schedule 3.19(a) - 2

 

	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	City	 	County	 	State
	Printing , Inc.

	 	344-356 North St. Francis
	 	Wichita
	 	Sedgwick
	 	KS
	Printing , Inc. (Mercury Web)

	 	2955 South Kansas
	 	Wichita
	 	Sedgwick
	 	KS
	Printing , Inc. (Metro Building)

	 	627 East 3rd
	 	Wichita
	 	Sedgwick
	 	KS
	Printing Control Services Incorporated

	 	1011 Andover Park East
	 	Tukwila
	 	King
	 	WA
	Printing Corporation of America

	 	15 West Aylesbury Rd
	 	Timonium
	 	Baltimore
	 	MD
	Printing, Inc. (Swiss Chalet)

	 	622 East 3rd
	 	Wichita
	 	Sedgwick
	 	KS
	Rush Press, Inc.

	 	3553 California Street
	 	San Diego
	 	San Diego
	 	CA
	Rush Press, Inc.

	 	3554 Kettner Blvd.
	 	San Diego
	 	San Diego
	 	CA
	S&S Graphics, Inc.

	 	14880 Sweitzer
	 	Laurel
	 	Prince Georges
	 	MD
	Spangler Graphics LLC

	 	2930 South 44th Street
	 	Kansas
	 	Wyandotte
	 	KS
	Spangler Graphics LLC

	 	2950 South 44th Street
	 	Kansas
	 	Wyandotte
	 	KS
	StorterChilds Printing Co., Inc.

	 	1540 Waldo Road
	 	Gainesville
	 	Alachua
	 	FL
	Superior Colour Graphics, Inc.

	 	381 South Pitcher Street
	 	Kalamazoo
	 	Kalamazoo
	 	MI
	Tewell Warren Printing Company

	 	4710 Lipan
	 	Denver
	 	Denver
	 	CO
	The Etheridge Company

	 	2450 Oak Industrial NE
	 	Grand Rapids
	 	Kent
	 	MI
	The Graphics Group, Inc.

	 	2802-22 Taylor St
	 	Dallas
	 	Dallas
	 	TX
	The Jarvis Press, Inc.

	 	9112 Viscount
	 	Dallas
	 	Dallas
	 	TX
	The Jarvis Press, Inc.

	 	8939 Premier Row
	 	Dallas
	 	Dallas
	 	TX
	The Jarvis Press, Inc.

	 	9119 Premier Row
	 	Dallas
	 	Dallas
	 	TX
	The Jarvis Press, Inc.

	 	connecting 9112 Viscount &

9109 Premier Row
	 	Dallas
	 	Dallas
	 	TX
	The Jarvis Press. Inc.

	 	9109 Premier Row
	 	Dallas
	 	Dallas
	 	TX
	The John C. Otto Company, Inc.

	 	341 Shaker Road
	 	East Longmeadow
	 	Hampden
	 	MA
	The John C. Otto Company, Inc.

	 	6 Pearson Way
	 	Enfield
	 	Hartford
	 	CT
	The Printery, Inc.

	 	2405 S. Moorland
	 	New Berlin
	 	Waukesha
	 	WI
	The Printery, Inc.

	 	6400 Gisholt Drive
	 	Madison
	 	Dane
	 	WI
	The Printery, Inc.

	 	2646 S.162nd Street
	 	New Berlin
	 	Waukesha
	 	WI
	Theo Davis Sons, Inc.

	 	1415 West Gannon Ave
	 	Zebulon
	 	Wake
	 	NC
	Thousand Oaks Printing & Specialties, Inc.

	 	31333 Agoura Road
	 	Westlake Village
	 	Los Angeles
	 	CA
	Thousand Oaks Printing & Specialties, Inc.

	 	5334 Sterling Center Dr
	 	Westlake Village
	 	Los Angeles
	 	CA
	Tucker Printers, Inc.

	 	270 Middle Road
	 	Henrietta
	 	Monroe
	 	NY
	Tulsa Litho Company

	 	4129-4133 South 72nd East Ave
	 	Tulsa
	 	Tulsa
	 	OK
	Tulsa Litho Company

	 	7601 East 46th Street
	 	Tulsa
	 	Tulsa
	 	OK
	Tulsa Litho Company

	 	2757 South Memorial Drive
	 	Tulsa
	 	Tulsa
	 	OK
	Tursack, Inc.

	 	5064 Horseshoe
	 	Honey Brook
	 	Chester
	 	PA
	Tursack, Inc.

	 	701 Hemlock Road
	 	Morgantown
	 	Berks
	 	PA
	Valcour Printing

	 	400 Valley School Drive
	 	St. Louis
	 	St. Louis
	 	MO
	Walnut Circle Press, Inc.

	 	308 Friendship Drive
	 	Greensboro
	 	Guilford
	 	NC

 

Schedule 3.19(a) - 3

 

	 	 	 	 	 	 	 	 	 
	Company	 	Address	 	City	 	County	 	State
	Watermark Press, Ltd

	 	950 Tennessee Street
	 	San Francisco
	 	San Francisco
	 	CA
	Web Graphics, Inc.

	 	625 N. Washington
	 	Wichita
	 	Sedgwick
	 	KS
	Wentworth Corporation

	 	103 A/B N. 12th Street
	 	West Columbia
	 	Lexington
	 	SC
	Wentworth Printing Corporation

	 	101 N. 12th St
	 	West Columbia
	 	Lexington
	 	SC
	Western Lithograph Company

	 	4340 Directors Row
	 	Houston
	 	Harris
	 	TX
	Western Lithograph Company

	 	4335 Directors Row
	 	Houston
	 	Harris
	 	TX
	Westland Printers

	 	15421 Old Columbia Pike
	 	Burtonsville
	 	Montgomery
	 	MD
	Wetzel Brothers, Inc.

	 	2401 E. Edgerton Ave.
	 	Cudahy
	 	Milwaukee
	 	WI
	Wetzel Brothers, LLC

	 	6221B Ace Industrial Drive
	 	Cudahy
	 	Milwaukee
	 	WI
	Woodridge Press, Inc.

	 	3070 E. Ceena Ct
	 	Anaheim
	 	Orange
	 	CA

In addition, the Borrower and/or its Subsidiaries have tangible personal property located at
Remote Sales Offices (as defined in Credit Agreement)

In addition to the locations above, the Borrower and/or its Subsidiaries have tangible personal
property of the following types and at the following locations:

	 	 	 
	Collateral Type	 	Location
	Cash and Cash Equivalents

	 	Financial institutions and in transit
	Deposit Accounts

	 	Financial institutions and in transit
	Documents

	 	Off-site storage and in transit
	Equipment

	 	Off-site storage for repairs or storage, in
transit between Subsidiaries, in transit to or
from locations listed above related to
purchase, sale, repair or storage, and, in the
case of vehicles, at other locations in the
ordinary course of business

	Instruments

	 	In transit
	Inventory

	 	Customer or supplier locations, off-site
storage, and in transit to or from the sites
listed above

	Books, records, files, etc.

	 	Off-site storage and in transit

 

Schedule 3.19(a) - 4

 

Schedule 3.19(c)

CHIEF EXECUTIVE OFFICES

As of Closing Date

	 	 	 
	Operating Companies	 	Location of Chief Executive Office
	A&A Amalgamated Printing Enterprises, Inc.
	 	855 N. Cahuenga Blvd, Hollywood CA  90038
	American Lithographers, Inc.
	 	2629 Fifth Street, Sacramento, CA 95818
	Apple Graphics, Inc.
	 	1858 Evergreen Street, Duarte, CA 91010
	Automated Graphic Imaging/Copy Center, Inc.
	 	1090 Vermont Avenue NW, Washington DC 20005
	AGS Custom Graphics, LLC
	 	8107 Bavaria Road, Macedonia, OH 44056
	Automated Graphic Systems, Inc.
	 	4590 Graphic Drive, White Plains, MD 20695
	bigINK Mailing & Fulfillment Company
	 	2901 S. Madison,  Wichita  KS  67216
	Bridgetown Printing Co.
	 	424 N.W. 14th Avenue, Portland, OR 97209
	CDS Publications, Inc.
	 	2661 South Pacific Highway, Medford OR  97501
	Chas. P. Young Company
	 	1616 McGowen, Houston, TX 77004
	Clear Visions, Inc.
	 	121 Interpark Blvd., #801, San Antonio, TX 78216
	Consolidated Carqueville Printing Company
	 	1536 Bourbon Parkway, Streamwood, IL 60107
	Copy-Mor, Inc.
	 	1716 West Grand Ave, Chicago, IL 60622
	Courier Printing Company
	 	1 Courier Place, Smyrna, TN 37167
	Digital Direct, Inc.
	 	5064 Horseshoe Pike #100, Honey Brook Ind Cen, Honey Brook, PA 19344
	Eagle Press, Inc.
	 	8111 37th Avenue, Sacramento, CA 95824
	Electric City Printing Company
	 	730 Hampton Road, Williamston SC  29697
	Emerald City Graphics, Inc.
	 	23328 66th Avenue South, Kent, WA 98032
	Fittje Bros. Printing Co.
	 	2822 Delta Drive, Colorado Springs, CO 80910
	Frederic Printing Company
	 	14701 E. 38th Avenue, Aurora, CO 80011
	Garner Printing Company
	 	1697 N.E. 53rd Avenue, Des Moines, IA 50313
	GSL Fine Lithographers
	 	8386 Rovana Circle, Sacramento, CA 95828
	Geyer Printing Company, Inc.
	 	3700 Bigelow Blvd., Pittsburgh, PA 15213
	Graphcom LLC
	 	2300 Defoor Hills Road,  Atlanta  GA  30318
	Graphic Technology of Maryland, Inc.
	 	8620 Old Dorsey Run Road, Jessup, MD 20794
	Grover Printing Company
	 	5829 Beverly Hill, Houston, TX 77057
	H & N Printing & Graphics, Inc.
	 	1913 Greenspring Drive, Timonium, MD 21093
	Heritage Graphics, Inc.
	 	2926 N. 33rd Avenue, Phoenix, AZ 85017
	Image Systems, Inc.
	 	N94 W14530 Garwin Mace Drive, Menomonee Falls, WI 53051
	Ironwood Lithographers, Inc.
	 	455 S. 52nd Street, Tempe, AZ 85281
	Kelmscott Communications LLC
	 	2485 Da Vinci,  Irvine  CA  92614
	Keys Printing Company
	 	1004 Keys Drive, Greenville, SC 29615
	Lincoln Printing Corporation
	 	3310 Congressional Parkway, Fort Wayne, IN 46808

 

Schedule 3.19(c) - 1

 

	 	 	 
	Operating Companies	 	Location of Chief Executive Office
	Maryland Composition.com, Inc.
	 	6711 Dover Road, Baymeadow Ind Park, Glen Burnie, MD 21060
	Maximum Graphics, Inc.
	 	1245 Lakeview Drive,  Chaska  MN  55318
	McKay Press, Inc.
	 	215 State Street, Midland, MI 48640
	Mercury Printing Company, Inc.
	 	4650 Shelby Air Drive, Memphis, TN 38118
	Mercury Web Printing, Inc.
	 	2955 South Kansas, Wichita, KS 67202
	Metropolitan Printing Services, Inc.
	 	720 South Morton, Bloomington, IN 47403
	Mobility, Inc.
	 	6701 Janway Road, Richmond, VA 23228
	Mount Vernon Printing Company
	 	3229 Hubbard Road, Landover, MD 20785
	Multiple Images Printing, Inc.
	 	767 Industrial Drive, Elmhurst, IL 60126
	Nies/Artcraft, Inc.
	 	5900 Berthold Avenue,  St. Louis  MO  63110
	Piccari Press, Inc.
	 	315 West Street Road, Warminster, PA 18974
	Precision Litho, Inc.
	 	1185 Joshua Way, Vista, CA 92083
	Pride Printers, Inc.
	 	215 Salem Street, Woburn, MA 01801
	Printing Control Services Incorporated
	 	1011 Andover Park East,  Tukwila  WA  98188
	Printing Corporation of America
	 	15 West Aylesbury Road, Timonium, MD 21093
	Printing, Inc.
	 	344 North St. Francis, Wichita, KS 67202
	Rush Press, Inc.
	 	3553 California Street, San Diego, CA 92101
	S & S Graphics, LLC
	 	14880 Sweitzer Lane, Laurel, MD 20707
	Spangler Graphics LLC
	 	2930 South 44th Street,  Kansas City  KS  66106
	StorterChilds Printing Co., Inc.
	 	1540 NE Waldo Road, Gainesville, FL 32641
	Superior Colour Graphics, Inc.
	 	381 South Pitcher St, Kalamazoo, MI 49005
	Tewell Warren Printing Company
	 	4710 Lipan Street, Denver, CO 80211
	The Etheridge Company
	 	2450 Oak Industrial Dr, Grand Rapids, MI 49505
	The Graphics Group, Inc.
	 	2800 Taylor Street, Dallas, TX 75226
	The Jarvis Press, Inc.
	 	9112 Viscount Row, Dallas, TX 75247
	The John C. Otto Company, Inc.
	 	341 Shaker Road, East Longmeadow, MA 01028
	The Printery, Inc.
	 	2405 South Moorland Rd, New Berlin, WI 53151
	Theo. Davis Sons, Incorporated
	 	1415 W. Gannon (Hwy 97 W), Zebulon, NC 27597
	Thousand Oaks Printing and Specialties, Inc.
	 	5334 Sterling Center Drive, Westlake Village, CA 91361
	Tucker Printers, Inc.
	 	270 Middle Road, Henrietta, NY 14467
	Tulsa Litho Company
	 	2757 S. Memorial Drive, Tulsa, OK 74129
	Tursack Incorporated
	 	701 Hemlock Road, Morgantown Business Park, Morgantown, PA 19643
	Valcour Printing, Inc.
	 	400 Valley School Drive,  Valley Park  MO  63088
	Walnut Circle Press, Inc.
	 	308 Friendship Drive, Greensboro, NC 27409
	Watermark Press, Ltd
	 	950 Tennessee Street,  San Francisco  CA  94107
	Wentworth Corporation
	 	101 N. 12th Street, West Columbia, SC 29169
	Western Lithograph Company
	 	4335 Directors Row, Houston, TX 77092
	Westland Printers, Inc.
	 	15421 Old Columbia Pike, Burtonsville, MD 20866
	Wetzel Brothers, LLC
	 	2401 E. Edgerton Ave, Cudahy, WI 53110

 

Schedule 3.19(c) - 2

 

	 	 	 
	Operating Companies	 	Location of Chief Executive Office
	Woodridge Press, Inc.
	 	3070 E. Ceena Court, Anaheim, CA 92806
	Non-Operating Companies
	 	 
	Consolidated Graphics, Inc. (the “Borrower”)
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	CGML General Partner, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	CGML, LLC
	 	103 Foulk Road, Suite 202  Wilmington, DE  19803
	CGX California Contractors, Inc.
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Consolidated Graphics Development Company
	 	103 Faulk Road, Suite 202, Wilmington, DE 19803
	Consolidated Graphics Development LLC
	 	103 Faulk Road, Suite 202, Wilmington, DE 19803
	Consolidated Graphics Management, Ltd.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Consolidated Graphics Properties, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Consolidated Graphics Properties II, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Graphion, Inc.
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Gulf Printing Company
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	S&S Graphics Property, LLC
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Spangler Graphics Property, LLC
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Superb Printing Company
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Columbia Color, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Consolidated Graphics Services, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	CGXmedia, Inc
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Inactive or Dormant Companies
	 	 
	Austin Printing Company, Inc.
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Byrum Lithographing Co.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Chas. P. Young Company, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Consolidated Graphics California
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Direct Color, Inc.
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Eastwood Printing Corporation
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Gilliland Printing, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Graphic Communications, Inc.
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Gritz-Ritter Graphics, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Heath Printers, Inc.
	 	5858 Westheimer, Suite 200, Houston, TX 77057
	Maxwell Graphic Arts, Inc.
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Serco Forms, LLC
	 	5858 Westheimer, Suite 200  Houston  TX  77057
	Web Graphics, Inc.
	 	5858 Westheimer, Suite 200  Houston  TX  77057

 

Schedule 3.19(c) - 3

 

Schedule 3.22

Labor Matters

As of Closing Date

Collective Bargaining Agreements

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Expiration
	Company	 	Union	 	Contract Date	 	Date
	Bridgetown Printing Co.

Portand, OR

	 	Graphic Communications

International Union Local 767-M
	 	June 1, 2005
	 	February 29, 2008
	Mount Vernon 

Landover, MD

	 	Graphic Communications

International Union Local 72-C
	 	March 11, 2004
	 	March 10, 2008
	American Lithographers 

Hayward, CA

	 	Graphic Communications
District Council No. 2, Local 388M
	 	May 1, 2004
	 	December 31, 2008
	American Lithographers 

Sacramento, CA

	 	Graphic Communications
District Council No. 2, Local 388M
	 	December 16, 2000
	 	April 30, 2005

In Negotiations
	Consolidated Carqueville Printing 

Streamwood, IL

	 	Graphic Communications

Chicago Local 458M G.C.C./I.B.T.
	 	June 1, 2006
	 	May 31, 2009
	Eagle Press 

Sacramento, CA

	 	Graphic Communications

International Union Local 583-M
	 	December 31, 2005
	 	December 31, 2008
	Eastwood Printing Corporation 

Aurora, CO

	 	Graphic Communications

International Union Local 440
	 	October 10, 2005
	 	October 9, 2007
	Garner Printing Company 

Des Moines, IA

	 	Graphic Communications

International Union Local 157-M
	 	March 1, 2005
	 	February 28, 2008
	Geyer Printing Company (Bindery) 

Pittsburgh, PA

	 	Graphic Communications

International Union Local 24-M
	 	June 30, 2003
	 	May 1, 2007
	Geyer Printing Company (Litho) 

Pittsburgh, PA

	 	Graphic Communications

International Union Local 24-M
	 	June 30, 2003
	 	May 1, 2007
	Lincoln Printing 

Fort Wayne, IN

	 	Graphic Communications

Union No. 19-M
	 	October 1, 2004
	 	September 1, 2008
	Nies/Artcraft Printing (Bindery)

St. Louis, MO

	 	Graphic Communications

Local No. 6-505
	 	July 1, 2003
	 	December 31, 2007
	Nies/Artcraft Printing (Litho)

St. Louis, MO

	 	Graphic Communications

Local No. 6-505
	 	July 1, 2003
	 	December 31, 2007
	Printing, Inc. (Bindery)

Wichita, KS

	 	Graphic Communications

Local No. 575
	 	January 1, 2005
	 	December 31, 2007
	Printing, Inc. (Litho)

Wichita, KS

	 	Graphic Communications

Local No. 575
	 	January 1, 2005
	 	December 31, 2007
	Western Lithograph 

Houston, TX

	 	Graphic Communications

International Union, Local 71-M
	 	July 1, 2004
	 	June 30, 2007

MULTI-EMPLOYER PLANS

Execept for Printing, Inc., all of the companies shown above have employees who participate in Multi-Employer
Plans. As part of collective bargaining agreements, these companies are required to deduct amounts from the
paychecks of specific employees and to pay such amounts to the specified Multi-Employer Plans.

 

 

Schedule 3.24

Material Contracts As

of Closing Date

NONE.

 

 

Schedule 4.1(h)

FORM OF SOLVENCY CERTIFICATE

The undersigned                                          of CONSOLIDATED GRAPHICS, INC., a Texas corporation
(the “Borrower”), is familiar with the properties, businesses, assets and liabilities of the
Borrower individually and the Credit Parties, taken as a whole and is duly authorized to execute
this certificate on behalf of the Borrower.

Reference is made to that Credit Agreement, dated as of October 6, 2006, among the Borrower,
the other Credit Parties identified therein, the Lender, the other banks and financial institutions
from time to time parties thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (as
amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) All
capitalized terms used and not defined herein have the meanings stated in the Credit Agreement.

1. The undersigned certifies that he has made such investigation and inquiries as to the
financial condition of the Borrower, individually, and the Credit Parties, taken as a whole, as he
deems necessary and prudent for the purpose of providing this Certificate. The undersigned
acknowledges that the Administrative Agent and the Lenders are relying on the truth and accuracy of
this Certificate in connection with making of the Loans under the Credit Agreement.

2. The undersigned certifies that the financial information, projections and assumptions
which underlie and form the basis for the representations made in this Certificate were reasonable
when made and were made in good faith and continue to be reasonable as of the date hereof.

BASED ON THE FOREGOING, the undersigned certifies that, both before and after giving effect to
the Loans:

A. The Borrower and its Subsidiaries, on a consolidated basis, are able to pay their debts
and other liabilities, contingent obligations and other commitments as they mature in the
normal course of business.

B. The Borrower and its Subsidiaries, on a consolidated basis, do not intend to, and do not
believe that they will, incur debts or liabilities beyond their ability to pay as such debts
and liabilities mature in their ordinary course.

C. The Borrower and its Subsidiaries, on a consolidated basis, are not engaged in any
business or transaction, and are not about to engage in any business or transaction, for
which the assets of the Borrower and its Subsidiaries, on a consolidated basis, would
constitute unreasonably small capital after giving due consideration to the prevailing
practice in the industry in which the Borrower and its Subsidiaries are engaged or are to
engage.

 

 

 

D. The present fair saleable value of the consolidated assets of the Borrower and its
Subsidiaries is not less than the amount that will be required to pay the probable liability
on the debts of the Borrower and its Subsidiaries, on a consolidated basis, as they become
absolute and matured.

IN WITNESS WHEREOF, the undersigned has executed this Certificate this     day of
                                        , 2006, in his capacity as the                                          of the Borrower.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

 

 

 

STATE OF                     )

                                        )

COUNTY OF                          )

VERIFICATION

The undersigned, being first duly sworn, deposes and says that he is the ___
of Consolidated Graphics, Inc., a Texas corporation, that he has read the foregoing and to his
personal knowledge the matters and statements contained therein are true and accurate.

This the ___day of ___, 2006.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

Sworn to and subscribed before me

this ___day of ___, 2006.

	 	 	 
	 

	 	 
	     Notary Public
	 	 

My Commission Expires:

	 	 	 
	 

	 	 

 

 

 

Schedule 4.1(t)

FORM OF COVENANT COMPLIANCE CERTIFICATE

I,                                         ,                                          [Title] of CONSOLIDATED GRAPHICS, INC., a Texas
corporation (the “Borrower”), hereby certify on behalf of the Borrower that, with respect
to that certain Credit Agreement dated as of October 6, 2006 (as amended, modified, restated or
supplemented from time to time, the “Credit Agreement”; all of the defined terms in the
Credit Agreement are incorporated herein by reference) among the Borrower, the other Credit Parties
identified therein, the Lender, the other banks and financial institutions from time to time
parties thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, (a) delivered herewith are
detailed calculations demonstrating compliance by the Credit Parties with the financial covenants
contained in Sections 5.9, 6.1 and 6.4(b) of the Credit Agreement as of the last day of the fiscal
quarter ending                     , 200    and (b) to the best of my knowledge, each of the Credit
Parties during the period covered by the financial statements delivered in connection with this
Covenant Compliance Certificate observed or performed in all material respects all of its covenants
and other agreements, and satisfied in all material respects every condition, contained in the
Credit Agreement to be observed, performed or satisfied by it, and that I have obtained no
knowledge of any Default or Event of Default except as specified on an attachment hereto.

Executed this         day of                     , 20   .

	 	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS, INC.,	 	 
	 	 	a Texas corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

 

Schedule 5.5(b)

Insurance

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Policy	 	Expiration	 	 	 	 
	Carrier	 	Number	 	Date	 	Type of Coverage	 	Coverage Limits
	Steadfast

	 	MPL9306317-01 
	 	01-Oct-04
	 	Property

Boiler & Machinery

Business Interruption
	 	 	200,000,000

100,000,000

200,000,000	 
	Clarendon/Glenco/

Empire indemnity

	 	30201EQ-1 
	 	01-Oct-04
	 	DIC (Excess Flood &

Earthquake)
	 	 	20,000,000	 
	Great American

	 	CRP268768501 
	 	01-Oct-04
	 	Crime
	 	 	2,000,000	 
	Sentry

	 	900437401,-02 
	 	01-Oct-04
	 	Workers Compensation
	 	Statutory

	Sentry

	 	900437407 
	 	01-Oct-04
	 	General Liability
	 	 	2,000,000	 
	Sentry

	 	900437404,-05,-03 
	 	01-Oct-04
	 	Auto Liability
	 	 	1,000,000	 
	CNA

	 	CUP271046979 
	 	01-Oct-04
	 	Umbrella (Primary)
	 	 	10,000,000	 
	Great American

	 	TUE662778501 
	 	01-Oct-04
	 	Umbrella (Excess)
	 	 	40,000,000	 
	Gulf

	 	GU0450135 
	 	01-Oct-04
	 	Cyber Liability
	 	 	5,000,000	 
	Fireman’s Fund

	 	CDO00085983 
	 	01-Oct-04
	 	D & O Liability
	 	 	5,000,000	 
	AIG

	 	3608505 
	 	01-Oct-04
	 	Fiduciary Liability
	 	 	3,000,000	 
	Gulf

	 	GU6621170 
	 	01-Oct-04
	 	Printer’s E & O
	 	 	10,000,000	 

 

 

Schedule 5.10

FORM OF JOINDER AGREEMENT

THIS JOINDER AGREEMENT (the “Agreement”), dated as of                     ,      , is by and
between                                         , a                                          (the “Subsidiary Guarantor”), and
JPMORGAN CHASE BANK, N.A., in its capacity as Administrative Agent under that certain Second
Amended and Restated Credit Agreement (as it may be amended, modified, extended or restated from
time to time, the “Credit Agreement”), dated as of October 6, 2006, by and among
CONSOLIDATED GRAPHICS, INC., a Texas corporation, as Borrower, and certain Subsidiaries of the
Borrower as Guarantors, the Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (the
“Administrative Agent”). All of the defined terms in the Credit Agreement are incorporated
herein by reference.

The Subsidiary Guarantor is an Additional Credit Party, and, consequently, the Credit Parties
are required by Section 5.10 of the Credit Agreement to cause the Subsidiary Guarantor to become a
“Guarantor” thereunder.

Accordingly, the Subsidiary Guarantor hereby agrees as follows with the Administrative Agent,
for the benefit of the Lenders:

1. The Subsidiary Guarantor hereby acknowledges, agrees and confirms that, by its execution of
this Agreement, the Subsidiary will be deemed to be a party to the Credit Agreement and a
“Guarantor” for all purposes of the Credit Agreement and the other Credit Documents, and shall have
all of the obligations of a Guarantor thereunder as if it had executed the Credit Agreement and the
other Credit Documents. The Subsidiary hereby ratifies, as of the date hereof, and agrees to be
bound by, all of the terms, provisions and conditions contained in the Credit Documents, including
without limitation (i) all of the representations and warranties of the Credit Parties set forth in
Article III of the Credit Agreement and (ii) all of the affirmative and negative covenants set
forth in Articles V and VI of the Credit Agreement. Without limiting the generality of the
foregoing terms of this paragraph 1, the Subsidiary hereby (i) jointly and severally together with
the other Guarantors, guarantees to each Lender, the Administrative Agent and the Issuing Lender as
provided in the Credit Agreement the prompt payment and performance of the Credit Party Obligations
of the Borrower in full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise) strictly in accordance with the
terms thereof and agrees that if any of such Credit Party Obligations are not paid or performed in
full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise), the Subsidiary will, jointly and severally together
with the other Guarantors, promptly pay and perform the same, without any demand or notice
whatsoever, and that in the case of any extension of time of payment or renewal of any of the
Credit Party Obligations of the Borrower, the same will be promptly paid in full when due (whether
at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension or renewal.

 

 

 

2. The Subsidiary Guarantor hereby acknowledges, agrees and confirms that, by its execution of
this Agreement, the Subsidiary Guarantor will be deemed to be a party to each and every Security
Document, and shall have all the obligations of an “Obligor” and a “Pledgor” (as such terms are
defined in the respective Security Documents) thereunder as if it had executed each and every
Security Document. The Subsidiary Guarantor hereby ratifies, as of the date hereof, and agrees to
be bound by, all of the terms, provisions and conditions contained in each and every Security
Document. Without limiting the generality of the foregoing terms of this paragraph 2, the
Subsidiary Guarantor hereby grants to the Administrative Agent, for the benefit of the Lenders, a
continuing security interest in, and a right of set off against any and all right, title and
interest of the Subsidiary Guarantor in and to all Collateral and Pledged Collateral (as such terms
are defined in the respective Security Documents) of the Subsidiary Guarantor.

3. The Subsidiary Guarantor acknowledges and confirms that it has received a copy of the
Credit Agreement and the schedules and exhibits thereto and each Security Document and the
schedules and exhibits thereto. The information on the schedules to the Credit Agreement and the
Security Documents are hereby amended to provide the information shown on the attached Schedule
A.

4. The Borrower confirms that all of its obligations under the Credit Agreement are, and upon
the Subsidiary Guarantor becoming a Guarantor, shall continue to be, in full force and effect. The
parties hereto confirm and agree that immediately upon the Subsidiary Guarantor becoming a
Guarantor the term “Credit Party Obligations,” as used in the Credit Agreement, shall include all
obligations of such Subsidiary Guarantor under the Credit Agreement and under each other Credit
Document.

5. The Subsidiary Guarantor hereby agrees that upon becoming a Guarantor it will assume all
Credit Party Obligations of a Guarantor as set forth in the Credit Agreement.

6. Each of the Borrower and the Subsidiary Guarantor agrees that at any time and from time to
time, upon the written request of the Administrative Agent, it will execute and deliver such
further documents and do such further acts and things as the Administrative Agent may reasonably
request in order to effect the purposes of this Agreement.

7. This Agreement may be executed in two or more counterparts, each of which shall constitute
an original but all of which when taken together shall constitute one contract.

8. This Agreement shall be governed by and construed and interpreted in accordance with the
laws of the State of Texas.

 

 

 

IN WITNESS WHEREOF, each of the Borrower and the Subsidiary Guarantor has caused this Joinder
Agreement to be duly executed by its authorized officer, and the Administrative Agent, for the
benefit of the Lenders, has caused the same to be accepted by its authorized officer, as of the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[SUBSIDIARY GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Acknowledged and accepted:	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,	 	 
	 	 	as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title	 	 	 	 
	 

	 	 	 	 	 	 

 

 

 

SCHEDULE A

to

Joinder Agreement

Schedules to Credit Agreement

 

 

 

Schedule 6.1(b)

INDEBTEDNESS

Indebtedness of Consolidated Graphics, Inc., and Subsidiaries

At October 6, 2006

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date of	 	Maturity	 	Interest	 	Original	 	Balance at
	Lender	 	Obligor	 	Collateral	 	Note	 	Date	 	Rate	 	Amount	 	06/30/06
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Indebtness under Exisiting Revolving Credit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	35,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Purchase Money Indebtness (Section 6.1(c))	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Komori Notes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Emerald City	 	L640-III	 	1-Jul-00	 	1-Mar-11	 	 	6.7700	%	 	 	1,751,655	 	 	 	918,672	 
	Metropolitan	 	L640-III	 	1-Jul-00	 	1-Apr-11	 	 	7.0800	%	 	 	2,035,710	 	 	 	1,086,449	 
	Western Lithograph-1	 	L640-III	 	1-Jul-00	 	1-Apr-11	 	 	7.0800	%	 	 	1,651,834	 	 	 	881,586	 
	American Litho-Hayward	 	L640-Series 15	 	13-Aug-02	 	1-Oct-10	 	 	5.4203	%	 	 	1,477,875	 	 	 	883,411	 
	American Litho-Sacramento	 	L640-Series 15	 	20-Aug-02	 	1-Oct-10	 	 	5.5200	%	 	 	1,520,125	 	 	 	910,212	 
	Mount Vernon Printing	 	LS640-Series 4045	 	14-Aug-03	 	1-Dec-11	 	 	5.8504	%	 	 	1,132,540	 	 	 	837,619	 
	Wetzel Brothers	 	LS640-Series 4045	 	1-Feb-05	 	1-Feb-13	 	 	5.55	%	 	 	2,375,000	 	 	 	2,086,645	 
	AGS Custom Graphics	 	LS840 Prefector-Series 4045	 	1-Feb-05	 	1-Feb-13	 	 	5.55	%	 	 	2,450,000	 	 	 	2,142,631	 
	Consolidated Carqueville	 	LS640-Series 4045	 	1-Feb-05	 	1-Feb-13	 	 	5.55	%	 	 	1,825,000	 	 	 	1,581,374	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	11,328,599	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Amegy Bank	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Automated Graphics 

System,LLC	 	IGEN3 Docucolor	 	12-Mar-04	 	28-Feb-09	 	 	4.1700	%	 	 	539,795.00	 	 	 	287,891	 
	Consolidated Graphics 

California	 	IGEN3 Docucolor	 	12-Mar-04	 	28-Feb-09	 	 	4.1700	%	 	 	546,077.00	 	 	 	291,241	 
	Thousand Oaks Printing	 	6060Docucolor/2 Imagerunner 110	 	12-Mar-04	 	28-Feb-09	 	 	4.1700	%	 	 	624,301.00	 	 	 	332,960	 
	Copy-Mor, Inc.	 	Docucolor 6060	 	18-Mar-04	 	28-Feb-09	 	 	4.1700	%	 	 	151,750.00	 	 	 	80,933	 
	Tucker Printers, Inc.	 	IGEN3 Docucolor	 	12-Mar-04	 	28-Feb-09	 	 	4.1700	%	 	 	486,801.00	 	 	 	259,627	 
	Emerald City Graphics, Inc.	 	Docucolor 6060	 	29-Mar-04	 	28-Feb-09	 	 	4.2200	%	 	 	157,644.00	 	 	 	84,077	 
	Garner Printing Company	 	Docucolor 6060	 	15-Apr-04	 	30-Apr-09	 	 	4.6200	%	 	 	145,494.00	 	 	 	82,447	 
	Wentworth Corporation	 	Docucolor 6060	 	27-Apr-04	 	30-Apr-09	 	 	4.7800	%	 	 	228,593.00	 	 	 	129,536	 
	Keys Printing	 	Docucolor 6060/Ikon 9110	 	21-May-04	 	30-Apr-09	 	 	5.4100	%	 	 	432,644.56	 	 	 	245,165	 
	Clear Visions Inc.	 	IGEN3 Docucolor	 	21-May-04	 	30-Apr-09	 	 	5.4100	%	 	 	519,795.00	 	 	 	294,551	 
	Jarvis Press	 	IGEN3 Docucolor	 	28-Jun-04	 	30-Jun-09	 	 	5.5300	%	 	 	520,697.07	 	 	 	312,418	 
	Digital Direct	 	IGEN3 Docucolor	 	28-Jun-04	 	30-Jun-09	 	 	5.5300	%	 	 	501,065.00	 	 	 	300,639	 
	McKay Press	 	IGEN3 Docucolor	 	15-Oct-04	 	30-Sep-09	 	 	5.1300	%	 	 	585,300.00	 	 	 	380,445	 
	Copy-Mor Inc.	 	IGEN3 Docucolor	 	8-Jul-05	 	30-Jun-10	 	 	6.0200	%	 	 	556,550.00	 	 	 	445,240	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,573,056	 

 

1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date of	 	Maturity	 	Interest	 	Original	 	Balance at
	Lender	 	Obligor	 	Collateral	 	Note	 	Date	 	Rate	 	Amount	 	06/30/06
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank of America	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Courier Printing	 	M600 Web Press	 	1-Jul-03	 	30-Jun-10	 	 	4.6500	%	 	 	6,116,758	 	 	 	4,281,731	 
	Chas P. Young	 	iGen3 Digital Press	 	31-Dec-03	 	31-Dec-08	 	 	4.6100	%	 	 	509,796	 	 	 	254,898	 
	Courier Printing	 	Rotary Trimming Sys	 	31-Dec-03	 	31-Dec-08	 	 	4.6100	%	 	 	187,072	 	 	 	93,536	 
	Carqueville Printing	 	Polar Cutter	 	25-Mar-04	 	31-Mar-09	 	 	3.9400	%	 	 	216,257	 	 	 	118,941	 
	Precision Litho	 	CD102-6+L	 	25-Mar-04	 	31-Mar-11	 	 	4.7200	%	 	 	1,760,810	 	 	 	1,194,834	 
	Copy-Mor Inc	 	SM102-6P+L	 	25-Mar-04	 	31-Mar-11	 	 	4.7200	%	 	 	1,354,145	 	 	 	918,884	 
	Apple Graphics	 	SM74-6+L	 	25-Mar-04	 	31-Mar-11	 	 	4.7200	%	 	 	657,655	 	 	 	446,266	 
	Western Lithograph	 	Evoline 102-E Cutter	 	30-Mar-04	 	31-Mar-09	 	 	3.9400	%	 	 	315,000	 	 	 	173,250	 
	Wetzel Brothers	 	Litho Laminator/Mounter	 	30-Mar-04	 	31-Mar-09	 	 	3.9400	%	 	 	375,000	 	 	 	206,250	 
	Precision Litho	 	Evoline 102-E Cutter	 	30-Mar-04	 	31-Mar-09	 	 	3.9400	%	 	 	339,413	 	 	 	186,677	 
	Printing Inc	 	Evoline 102-E Cutter	 	10-Jun-04	 	31-May-09	 	 	5.1400	%	 	 	315,000	 	 	 	183,750	 
	Thousand Oaks Printing	 	Evoline 102-E Cutter	 	10-Jun-04	 	31-May-09	 	 	5.1400	%	 	 	340,988	 	 	 	198,909	 
	Walnut Circle Press	 	Evoline 102-E Cutter	 	10-Jun-04	 	31-May-09	 	 	5.1400	%	 	 	315,080	 	 	 	183,797	 
	GSL Fine Lithographers
(f/k/a Georges & Shapiro
Lithograph)	 	Evoline 102-E Cutter	 	10-Jun-04	 	31-May-09	 	 	5.1100	%	 	 	339,413	 	 	 	197,991	 
	Copy-Mor Inc	 	Muller Martini Perfect Binder	 	10-Jun-04	 	31-May-09	 	 	5.1100	%	 	 	595,000	 	 	 	347,083	 
	The Graphics Group	 	Polar Cutter ED115 cutter	 	10-Jun-04	 	31-May-09	 	 	5.1100	%	 	 	156,307	 	 	 	91,179	 
	S&S Graphics, LLC	 	Evoline 102-E Cutter & A2 Folder/gluer	 	30-Dec-04	 	31-Dec-09	 	 	5.1400	%	 	 	572,10	 	 	 	0 400,470	 
	Ironwood Lithographers	 	Evoline 102-E Cutter	 	30-Dec-04	 	31-Dec-09	 	 	5.1400	%	 	 	315,000	 	 	 	220,500	 
	Emerald City Graphics	 	Evoline 102-E Cutter	 	30-Dec-04	 	31-Dec-09	 	 	5.1400	%	 	 	315,000	 	 	 	220,500	 
	Copy-Mor, Inc.	 	iGen3 Digital Press	 	23-Dec-05	 	31-Dec-10	 	 	5.9503	%	 	 	572,500	 	 	 	515,250	 
	CDS Publications, Inc	 	Nexpress 2100 Digital	 	23-Dec-05	 	31-Dec-10	 	 	5.9503	%	 	 	445,372	 	 	 	400,835	 
	Frederic Printing Company	 	KBA 8-color Planeta	 	30-Dec-06	 	31-Dec-10	 	 	5.9503	%	 	 	813,324	 	 	 	731,992	 
	CDS Publications, Inc	 	Nexpress 2100 Digital	 	31-Mar-06	 	31-Mar-11	 	 	6.2203	%	 	 	445,372	 	 	 	423,103	 
	Maximum Graphics Inc.	 	Cannon Micr Station / copiers	 	31-Mar-06	 	31-Mar-11	 	 	6.2203	%	 	 	361,306	 	 	 	343,241	 
	Keys Printing Company	 	Polar cutting system	 	31-Mar-06	 	31-Mar-11	 	 	6.2203	%	 	 	313,573	 	 	 	297,894	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12,631,760	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank of Texas Notes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	McKay Press	 	Komori LS640	 	31-Jan-06	 	31-Jan-14	 	 	6.2800	%	 	 	1,829,388	 	 	 	1,754,359	 
	S&S Graphics	 	Komori LS640	 	31-Jan-06	 	31-Jan-14	 	 	6.2800	%	 	 	1,744,021	 	 	 	1,672,493	 
	Keys Printing	 	Komori LS640	 	31-Jan-06	 	31-Jan-14	 	 	6.2800	%	 	 	1,798,755	 	 	 	1,724,982	 
	Ironwood Lithographers	 	Komori LS640	 	17-Mar-06	 	31-Mar-14	 	 	6.6600	%	 	 	1,633,652	 	 	 	1,598,605	 
	Printing, Inc.	 	Komori LS640	 	17-Mar-06	 	31-Mar-14	 	 	6.6600	%	 	 	1,829,149	 	 	 	1,789,907	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8,540,346	 

 

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date of	 	Maturity	 	Interest	 	Original	 	Balance at
	Lender	 	Obligor	 	Collateral	 	Note	 	Date	 	Rate	 	Amount	 	06/30/06
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Equipment Notes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	T/O Printing-GECC	 	Komori L628	 	01-Nov-96	 	1-Sep-03	 	 	6.8750	%	 	 	4,108,643	 	 	 	634,940	 
	Printing Control—US Bank	 	CD102-6+L	 	21-Sep-99	 	1-Nov-07	 	 	7.1330	%	 	 	2,100,000	 	 	 	614,694	 
	CGX—Bank of Texas	 	prepress	 	25-Jul-05	 	31-Jul-10	 	 	6.1500	%	 	 	4,164,164	 	 	 	3,400,734	 
	Graphcom-GECC	 	Komori L640C	 	28-Nov-00	 	2-Feb-09	 	 	8.0590	%	 	 	2,009,830	 	 	 	1,221,638	 
	Graphcom-EKCC	 	prepress	 	01-Aug-02	 	1-Aug-07	 	 	7.0998	%	 	 	322,690	 	 	 	86,083	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,958,089	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Purchase Money Indebtness at 6/30/06	 	 	 	 	 	 	 	 	 	 	 	 	 	 	42,031,851	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Indebtness under Hedging Agreements (Section 6.1(e))	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Indebtness under Letters of Credit (Section 6.1(f))	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	L/C for $1,420,696 supporting Etheridge IRB (see other indebtness below)	 	 	 	 	 	 	 	 
	L/C for $1,452,267 supporting Keys IRB (see other indebtness below)	 	 	 	 	 	 	 	 
	L/C for $2,905,467 supportin Electric City IRB (see other indebtness below)	 	 	 	 	 	 	 	 
	L/C for $1,522,500 supporting Electric City IRB (see other indebtness below)	 	 	 	 	 	 	 	 
	L/C for $100,000 providing deposit on lease for American Litho	 	 	 	 	 	 	 	 
	L/C for $1,200,786 providing support for pension obligations for Nies/Artcraft	 	 	 	 	 	 	 	 
	L/C for $480,580 providing support of supplemental retirement and disablity fund for Nies/Artcraft	 	 	 	 	 	 	1,781,366	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Indebtness under Performance, Surety or Other Bonds (Section 6.1(g))	 	 	 	 	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Guaranty Obligations (Section 6.1(h))	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Indebtness (Section 6.1(b))	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JPMorgan Chase Unsecured Note	 	N/A	 	30-Nov-04	 	30-Nov-06	 	Varible
	 	 	5,000,000	 	 	 	4,473,334	 
	Wells Fargo Unsecured Note	 	N/A	 	30-Nov-05	 	30-Nov-05	 	Varible
	 	 	5,000,000	 	 	 	4,177,033	 
	Etheridge-IRB	 	N/A	 	01-Jun-94	 	1-Jan-09	 	Varible
	 	 	3,645,000	 	 	 	1,395,000	 
	Key IRB	 	N/A	 	01-Nov-95	 	1-Nov-10	 	Varible
	 	 	4,000,000	 	 	 	1,400,000	 
	Electric City-IRB Series 1994	 	N/A	 	28-Jun-94	 	1-Oct-12	 	Varible
	 	 	3,300,000	 	 	 	1,400,000	 
	Electric City-IRB Series 2001	 	N/A	 	09-May-00	 	1-Jul-12	 	Varible
	 	 	4,000,000	 	 	 	2,800,000	 
	Smurfit—Promissory Note	 	AmLitho Purchase	 	4-Feb-02	 	4-Feb-08	 	Varible
	 	 	5,459,137	 	 	 	1,819,712	 

 

3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Date of	 	Maturity	 	Interest	 	Original	 	Balance at
	Lender	 	Obligor	 	Collateral	 	Note	 	Date	 	Rate	 	Amount	 	06/30/06
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	S&S - Mortgage	 	Real Estate
	 	18-Jun-99	 	1-Jul-09	 	 	8.5000	%	 	 	4,623,284	 	 	 	4,447,499	 
	Tewell Warren-Mortgage	 	Real Estate
	 	17-Jan-94	 	1-Dec-08	 	Varible
	 	 	400,000	 	 	 	98,407	 
	Rush—Building Renovations	 	N/A	 	1-Jul-00	 	9-Nov-09	 	 	5.6600	%	 	 	400,000	 	 	 	145,306	 
	Printing Inc—Building Renovations	 	Real Estate
	 	1-Oct-04	 	1-Sep-14	 	 	6.0000	%	 	 	300,000	 	 	 	261,178	 
	CDS-NEC Financial	 	Phone System
	 	31-Mar-03	 	28-Feb-07	 	 	10.2800	%	 	 	38,013	 	 	 	14,067	 
	CDS-Wells Fargo	 	Double sided proofer
	 	10-Oct-03	 	1-Oct-08	 	 	7.5400	%	 	 	30,328	 	 	 	19,719	 
	CDS-Wells Fargo	 	NuTech M120 sheeter
	 	01-Aug-04	 	31-Jul-08	 	 	7.4800	%	 	 	126,478	 	 	 	79,220	 
	CDS-Hyster Sales	 	3 forklifts
	 	01-Oct-04	 	30-Sep-08	 	 	8.4000	%	 	 	15,277	 	 	 	9,867	 
	 

	 	 	 	Cannon Imagerunner
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Maximum-Loffler	 	5000	 	05-Nov-03	 	5-Oct-06	 	 	4.4000	%	 	 	10,516	 	 	 	2,275	 
	Maximum-Wells Fargo	 	Buskro Inkjet
	 	29-Sep-04	 	29-Sep-09	 	 	7.6100	%	 	 	57,697	 	 	 	42,928	 
	Maximum-GECC	 	hasler Mail Machine
	 	11-Dec-04	 	11-Dec-09	 	 	10.1900	%	 	 	11,778	 	 	 	8,780	 
	Maximum-Wells Fargo	 	Smith water treatment
	 	10-Dec-04	 	10-Dec-09	 	 	8.6500	%	 	 	11,227	 	 	 	8,525	 
	Orange County-Fleet Business	 	Creo CTP
	 	01-Oct-03	 	1-Sep-07	 	 	8.3600	%	 	 	73,967	 	 	 	38,908	 
	Orange County-IOS Capital	 	Cannon Copiers
	 	03-Aug-03	 	3-Jul-08	 	 	6.8000	%	 	 	14,564	 	 	 	9,485	 
	Spangler-Security Equipment	 	SEI Security System
	 	01-Apr-03	 	1-Jan-08	 	 	19.5800	%	 	 	11,100	 	 	 	7,231	 
	Watermark-Creo Financial	 	Integris 800
	 	18-Aug-03	 	1-Jun-07	 	 	9.6800	%	 	 	9,716	 	 	 	4,433	 
	Watermark-Fleet Business	 	Printergy software & server
	 	15-Jan-04	 	15-Nov-07	 	 	8.1800	%	 	 	42,276	 	 	 	22,959	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Other Indebtness as of 6/30/06	 	 	 	 	 	 	 	 	 	 	 	 	 	 	22,685,865	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grand Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	101,499,083	 

 

4

 

SCHEDULE 10.3

ASSIGNMENT AND ASSUMPTION AGREEMENT

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Terms and Conditions and the Credit Agreement, as of the Effective Date
inserted by the Administrative Agent as contemplated below, the interest in and to all of the
Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto that represents the amount and percentage
interest identified below of all of the Assignor’s outstanding rights and obligations under the
respective facilities identified below (including without limitation any letters of credit,
guaranties and swingline loans included in such facilities and, to the extent permitted to be
assigned under applicable law, all claims (including without limitation contract claims, tort
claims, malpractice claims, statutory claims and all other claims at law or in equity), suits,
causes of action and any other right of the Assignor against any Person whether known or unknown
arising under or in connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby) (the “Assigned
Interest”). Such sale and assignment is without recourse to the Assignor and, except as
expressly provided in this Assignment and Assumption, without representation or warranty by the
Assignor.

1. Assignor:                                                                 

2. Assignee:                                                                  [and is an Affiliate/Approved Fund of                                         ]

3. Borrower(s):                                                                 

4. Administrative Agent: JPMorgan Chase Bank, N.A., as the Administrative Agent under the Credit
Agreement.

5. Credit Agreement: The Credit Agreement dated as of October 6, 2006 among Consolidated Graphics,
Inc., the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other
agents party thereto.

6. Assigned Interest:

	 	 	 	 	 
	Aggregate Amount of	 	Amount of	 	Percentage Assigned of
	Commitment/Revolving	 	Commitment/Revolving	 	Commitment/Revolving
	Loans for all Lenders	 	Loans Assigned	 	Loans1
	$
	 	$
	 	                    %

 

 

 

Effective Date:                                         , 20      [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER BY THE ADMINISTRATIVE AGENT.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 	 	 
	 	 	ASSIGNOR	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Title:
	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

Consented to and Accepted:

JPMORGAN CHASE BANK, N.A., as Administrative Agent

	 	 	 	 	 
	By:
	 	 	 	 
	Title:

	 	 

	 	 

[Consented to:]2

[NAME OF RELEVANT PARTY]

	 	 	 	 	 
	By:
	 	 	 	 
	Title:

	 	 

	 	 

1 Set forth, to at least 9 decimals, as a percentage of the
Commitment/Revolving Loans of all Lenders thereunder.

2 To be added only if the consent of the Borrower and/or other parties (e.g.
Swingline Lender, L/C Issuer) is required by the terms of the Credit Agreement.

 

 

 

ANNEX 1

TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1 Assignor. The Assignor represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby. Neither the Assignor nor any of its officers, directors,
employees, agents or attorneys shall be responsible for (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other Credit Document,
(ii) the execution, legality, validity, enforceability, genuineness, sufficiency, perfection,
priority, collectibility, or value of the Credit Documents or any collateral thereunder, (iii) the
financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Credit Document, (iv) the performance or observance by the Borrower,
any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations
under any Credit Document, (v) inspecting any of the property, books or records of the Borrower, or
any guarantor, or (vi) any mistake, error of judgment, or action taken or omitted to be taken in
connection with the Revolving Loans or the Credit Documents.

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) from and after the Effective Date, it shall be bound by the provisions of
the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have
the obligations of a Lender thereunder, (iii) agrees that its payment instructions and notice
instructions are as set forth in Schedule 1 to this Assignment and Assumption, (iv) confirms that
none of the funds, monies, assets or other consideration being used to make the purchase and
assumption hereunder are “plan assets” as defined under ERISA and that its rights, benefits and
interests in and under the Credit Documents will not be “plan assets” under ERISA, (v) agrees to
indemnify and hold the Assignor harmless against all losses, costs and expenses (including, without
limitation, reasonable attorneys’ fees) and liabilities incurred by the Assignor in connection with
or arising in any manner from the Assignee’s non-performance of the obligations assumed under this
Assignment and Assumption, (vi) it has received a copy of the Credit Agreement, together with
copies of financial statements and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis
and

 

 

 

decision independently and without reliance on the Administrative Agent or any other Lender, and
(vii) attached as Schedule 1 to this Assignment and Assumption is any documentation required to be
delivered by the Assignee with respect to its tax status pursuant to the terms of the Credit
Agreement, duly completed and executed by the Assignee and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit Documents, and (ii)
it will perform in accordance with their terms all of the obligations which by the terms of the
Credit Documents are required to be performed by it as a Lender.

2. Payments. The Assignee shall pay the Assignor, on the Effective Date, the
amount agreed to by the Assignor and the Assignee. From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for amounts which have
accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from
and after the Effective Date.

3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of Texas.

 

 

 

Schedule 11.2

NOTICES/LENDERS’ LENDING OFFICES

JPMorgan Chase Bank, N.A.

712 Main Street

Houston, Texas 77002

Attention: Steve Krueger

Telecopier: 713-216-1851

Telephone: 713-216-1702

Email: steven.c.krueger@chase.com

Wells Fargo Bank, National Association

1000 Louisiana St.

3rd Floor

MACT5001-031

Houston, TX 77002

Attention: Mike Sultanik

	 	 	 
	Telephone:

	 	713-319-1387
	Facsimile:

	 	713-739-1086
	Email: sultanm@wellsfargo.com

Comerica Bank

One Shell Plaza

910 Louisiana Street

Suite 410

Houston, TX 77002

Attention: Chuck Johnson

	 	 	 
	Telephone:

	 	713-220-5662
	Facsimile:

	 	713-220-5650
	Email: ctjohnson@comerica.com

Wachovia Bank, National Associatioon

John Elam

One Riverway

Houston, TX 77056

Phone 713-402-3603

Fax: 713-402-3636

Email: john.elam@wachovia.com

Bank of Texas, N.A.

Senior Vice President, Commercial Banking

5 Houston Center

1401 McKinney, Suite 1650

Houston, Texas 77010

Phone: 713-289-5855

Fax: 713-289-5825

Email: bbraddock@bankoftexas.com

Amegy Bank National Association

4400 Post Oak Parkway, POP 312

Houston, Texas 77027

Attention: Laif Afseth

Telephone: 713-232-1586

Facsimile: 713-232-8541

Email: laif.afseth@amegybank.com

Bank of America, N.A.

700 Louisiana St.

Houston, Texas 77002

Attention: William Griffin

Telephone: 713-247-7457

Facsimile:713-247-7748

Email: william.griffin@bankofamerica.comExhibit 10.1

 

Exhibit 10.1

RIO VISTA GP LLC

FIRST AMENDMENT TO

AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

THIS FIRST AMENDMENT TO AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT of Rio Vista GP LLC (this “First
Amendment”) is dated as of October 6, 2006. Capitalized terms used, and not otherwise defined, herein shall have the
same meaning as set forth in the Amended and Restated Limited Liability Company Agreement dated as of September 16,
2004 (the “Restated Agreement”) of Rio Vista GP LLC, a Delaware limited liability company (the “Company”).

WHEREAS, in accordance with Section 13.8 of the Restated Agreement, the Board of Managers believes that it is in the
best interests of the Company and the Members to amend the Restated Agreement on the terms set forth herein.

NOW, THEREFORE, the Board of Managers hereby adopts the following amendments to the Restated Agreement:

	 	1.	 	Amendment of Section 2.7 of the Restated Agreement. Section 2.7 of the Restated Agreement is
hereby amended to read, in full, as follows:

“Richard R. Canney, Charles C. Handly and Ian T. Bothwell are hereby designated as authorized persons to execute,
deliver and file any amendments or restatements of the Certificate, and any other certificates and any amendments or
restatements thereof necessary for the Company to qualify to do business in a jurisdiction in which the Company may
wish to conduct business.”

	 	2.	 	Amendment of Section 5.2 of the Restated Agreement. Section 5.2(l) of the Restated Agreement is
hereby amended to read, in full, as follows:

“(l) Compensation of Managers; Reimbursement of Expenses.

The Managers shall receive for their services such compensation as may be determined from time to time by the Board of
Managers. Compensation may include, without limitation, cash, common units of Rio Vista Energy Partners L.P., a
Delaware limited partnership, and/or options to purchase such common units. No Manager who is also an officer or
employee of the Company shall be entitled to receive additional compensation for his services as a Manager. Managers
(including Managers who are also officers or employees of the Company) shall be reimbursed by the Company for their
reasonable travel, food, lodging and other expenses incurred in attending meetings in accordance with policies approved
from time to time by the Board of Managers.”

	 	3.	 	Effect of This Amendment. Except as expressly provided in this Amendment, the Restated Agreement
is reaffirmed and remains in full force and effect.

1

 

1

 

IN WITNESS WHEREOF, the members of the Board of Managers have executed this First Amendment to Amended and
Restated Limited Liability Company Agreement of Rio Vista GP LLC as of the day and year first set forth above.

BOARD OF MANAGERS:

/s/ Richard R. Canney

Richard R. Canney

/s/ Murray J. Feiwell

Murray J. Feiwell

/s/ Douglas G. Manner

Douglas G. Manner

2

 

2

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