Document:

exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of January 1, 2011, by and among M&F
Worldwide Corp., a Delaware Corporation (“MFW”), Harland Clarke Holdings Corp., a Delaware
corporation (the “Company”), and Charles Dawson (the “Executive”).

     WHEREAS, MFW, the Company and the Executive wish to restate in its entirety the terms of the
Executive’s employment agreement, by and between the Company, Harland Clarke Corp. (“Harland
Clarke”), and the Executive, dated May 2, 2007, as amended on February 13, 2008, and as further
amended as of December 30, 2008 and as of February 2, 2010 (the “Prior Employment
Agreement”).

     Accordingly, MFW, the Company and the Executive hereby agree as follows:

     1. Employment, Duties and Acceptance.

          1.1 Employment, Duties. The Company hereby employs the Executive for the Term (as
defined in Section 2.1), to render exclusive and full-time services to the Company as President and
Chief Executive Officer of the Company and Chief Executive Officer of the “Harland Clarke
Business”, or in such other executive position as may be mutually agreed upon by MFW, the Company
and the Executive, and to perform such other duties consistent with such position as may be
assigned to the Executive by the Board of Directors of MFW (the “Board”) or the Chief
Executive Officer of MFW. During the Term, the Executive shall report solely to the Board and to
the Chief Executive Officer of MFW.

          1.2 Acceptance. The Executive hereby accepts such employment and agrees to render the
services described above. During the Term, the Executive agrees to serve the Company faithfully
and to the best of the Executive’s ability, to devote the Executive’s entire business time, energy
and skill to such employment, and to use the Executive’s best efforts, skill and ability to promote
the Company’s interests. The Executive further agrees to accept election, and to serve during all
or any part of the Term, as an officer or director of the Company and of any subsidiary or
affiliate of the Company, without any compensation therefor other than that specified in this
Agreement, if elected to any such position by the shareholders or by the Board or of any subsidiary
or affiliate, as the case may be.

          1.3 Location. The duties to be performed by the Executive hereunder shall be
performed primarily at the offices of the Company in San Antonio, Texas, subject to reasonable
travel requirements on behalf of the Company.

     2. Term of Employment; Certain Post-Term Benefits.

          2.1 The Term. This Agreement and the term of the Executive’s employment under this
Agreement (the “Term”) shall become effective as of January 1,

 

 

2011 (the “Effective Date”) and will continue until December 31, 2013 (the
“Termination Date”), subject to earlier termination pursuant to Section 4.

          2.2 End-of-Term Provisions. Prior to the end of the Term, the Company and the
Executive shall meet to discuss whether the Term should be extended. The Company shall have the
right at any time, however, to give written notice of non-renewal of the Term. In the event of
non-renewal of the Term by the Company and the Executive’s employment is terminated by the Company
after the end of the Term, other than for (i) Cause (as defined below), (ii) Disability (as
defined below) or (iii) death, in each case following such Company notice of non-renewal, then such
termination shall be treated as a termination without Cause and the Restricted Period (as defined
below) shall be reduced to a period of one year post termination of employment (the “Reduced
Restricted Period”). During such Restricted Period, the Executive shall receive as severance
pay, an amount equal to the greater of (A) 50% of the payments set forth in Sections 4.4(i) and
4.4(ii) or (B) severance and benefits in accordance with Company policy as in effect at that time,
in each case payable in installments in accordance with the Company’s normal payroll practices,
subject to Executive’s signing and not revoking the release of claims as set forth in Section 4.6.
For the avoidance of doubt, if the Executive’s employment is terminated by the Company after the
end of the Term (x) for Cause, the Executive will not be entitled to receive any severance or other
benefits, or (y) for death or Disability, the Executive will receive severance and benefits in
accordance with Company policy as in effect at that time. For the avoidance of doubt, if the
Company is willing to extend the Term and Executive does not agree to extend the Term, then upon
termination of employment at or after the end of the Term, the Executive shall be bound by the
restrictive covenants set forth in Section 5 below, the Restricted Period shall not be reduced and
Executive shall not be entitled to receive any severance benefits with respect to such termination.
Notwithstanding the foregoing, the terms of this Section 2.2 will not impact any payments or
other benefits to which the Executive would then be entitled under normal Company policies or the
LTIP (as defined below) pursuant to the terms thereof.

     3. Compensation; Benefits.

          3.1 Salary. As compensation for all services to be rendered pursuant to this
Agreement, the Company agrees to pay the Executive a base salary, payable in accordance with the
Company’s normal payroll practices, at the annual rate of not less than $1,050,000 (effective
January 1, 2011) less such deductions or amounts to be withheld as required by applicable law and
regulations (the “Base Salary”). In the event that MFW or the Company, from time to time
determines to increase the Base Salary, such increased amount shall, from and after the effective
date of the increase, constitute “Base Salary” for purposes of this Agreement.

          3.2 Incentive Compensation.

               3.2.1 Annual Bonus. Commencing with the 2011 fiscal year, the Executive will be
eligible to receive a bonus with respect to 2011 and each later fiscal year ending during the
Term computed in accordance with the

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provisions hereafter. If, with respect to any such fiscal year, the Company achieves
“Consolidated EBITDA” (as defined below) of at least the percentage set forth in the table
below of its business plan for such fiscal year, such bonus shall be the percentage set forth
in the table below of Base Salary with respect to the fiscal year for which the bonus (any such
bonus, an “Annual Bonus”) was earned:

	 	 	 
	Percentage of Consolidated	 	Percentage of Base
	EBITDA in Business Plan	 	Salary
	89.9% and below
	 	Nil
	90 — 94.9
	 	90
	95 — 99.9
	 	107.5
	100 — 105
	 	125
	105.1 — 110
	 	130.56
	110.1 — 115
	 	136.11
	115.1 — 120
	 	141.67
	120.1 — 125
	 	147.22
	125.1 — 130
	 	152.78
	130.1 — 135
	 	158.33
	135.1 — 140
	 	163.89
	140.1 — 145
	 	169.44
	145.1 and over
	 	175

An Annual Bonus if earned in accordance with this Agreement shall be paid no later than the
fifteenth day of the third month next following the year with respect to which such bonus was
earned, provided that, except as otherwise specifically provided in this Agreement (including,
without limitation, Section 4.4), as a condition precedent to any bonus entitlement the Executive
must remain in employment with the Company at the time that the Annual Bonus is paid.
Notwithstanding the foregoing, to the extent that Section 162(m) of the Internal Revenue Code of
1986, as amended (the “Code”), may be applicable, such Annual Bonus shall be subject to,
and contingent upon, such shareholder approval as is necessary to cause the Annual Bonus to qualify
as “performance-based compensation” under Section 162(m) of the Code and the regulations
promulgated thereunder as well as approval of this Section 3.2.1 by the MFW Compensation Committee
and any other required committees.

For the purposes of this Agreement, “Consolidated EBITDA” means for any fiscal year of the
Company, consolidated net income for such fiscal year of the Company plus, without duplication and
to the extent reflected as a charge in the statement of such consolidated net income for such
fiscal year, the sum of (i) income tax expense, (ii) interest expense, amortization or write-off of
debt discount and debt issuance costs and commissions (to the extent not already captured in
interest expense), discounts and other fees and charges associated with indebtedness, (iii)
depreciation and amortization expense (excluding amounts of prepaid incentives under customer
contracts), (iv) any extraordinary non-cash expenses or losses, (v) allocation of fees charged by
MFW or a subsidiary to the Company relating to the operation of the Company, (vi) all restructuring
costs, (vii) fees paid to the Company’s external advisors in connection with acquisitions

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(whether or not consummated) and (viii) effects of changes in accounting policy and U.S. generally
accepted accounting principles (“ GAAP”),and minus (x) to the extent included in the
statement of such consolidated net income for such period, the sum of (a) interest income, (b) any
extraordinary or non-recurring non-cash income or gains (including, whether or not otherwise
includable as a separate item in the statement of such consolidated net income for such period,
gains on the sales of assets outside of the ordinary course of business), (c) effects of changes in
accounting policy and GAAP, and (d) income tax credits (to the extent not netted from income tax
expense) and (y) any cash payments made during such period in respect of items described in clause
(iv) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were
reflected as a charge in the statement of consolidated net income, all as determined on a
consolidated basis, all of the foregoing to be determined by the Board or the MFW Compensation
Committee, as applicable. For the purposes of determining compensation milestones for any fiscal
year, Consolidated EBITDA will be adjusted by the Board or the MFW Compensation Committee, as
applicable, as appropriate for material acquisitions or dispositions of any business or assets of
or by the Company or its subsidiaries for such fiscal year and thereafter.

               3.2.2 Long Term Incentive Plan. During the Term, the Executive shall participate
in the M&F Worldwide Corp. 2011 Long Term Incentive Plan (the “LTIP”). The specific terms of
award or awards under the LTIP shall be set forth in one or more Award Agreements entered into
with the Executive on or about the date hereof. If the Term is extended, the Executive shall
participate in a new Long Term Incentive Plan that shall commence after the LTIP ends.
Notwithstanding the foregoing, to the extent that Section 162(m) of the Code may be applicable,
the LTIP (and any subsequent Long Term Incentive Plan) shall be subject to, and contingent
upon, such shareholder approval as is necessary to cause the LTIP to qualify as
“performance-based compensation” under Section 162(m) of the Code and the regulations
promulgated thereunder.

          3.3 Business Expenses. The Company shall pay or reimburse the Executive for all
reasonable expenses actually incurred or paid by the Executive during the Term in the performance
of the Executive’s services under this Agreement, upon presentation of expense statements or
vouchers or such other supporting information as the Company customarily may require of its
officers; provided, however, that the maximum amount available for such expenses
during any period may be fixed in advance by the Board.

          3.4 Vacation. During the Term, the Executive shall be entitled to a vacation period
or periods of four (4) weeks during any fiscal year taken in accordance with the vacation policy of
the Company during each year of the Term.

          3.5 Fringe Benefits. During the Term, the Executive shall be entitled to all benefits
for which the Executive shall be eligible under any qualified pension plan, 401(k) plan, group
insurance or other so-called “fringe” benefit plan which the Company provides to its executive
employees generally, which benefits may be amended, modified or terminated in MFW’s or the
Company’s discretion.

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     4. Termination.

          4.1 Death. If the Executive dies during the Term, the Term shall terminate forthwith
upon the Executive’s death. The Company shall pay to the Executive’s estate: (i) any Base Salary
earned but not paid; (ii) a pro rated Annual Bonus based on the number of days of the fiscal year
worked by the Executive, which pro-rated Annual Bonus will be paid at the time and in the manner
such Annual Bonus is paid to other executives receiving such bonus payment; (iii) amounts payable
under the LTIP in accordance with the terms thereof and (iv) Annual Bonus for the year prior to the
year in which the Executive dies if at the time of death the Executive has earned an Annual Bonus
payment for such prior year and has not yet been paid such Annual Bonus, which prior year Annual
Bonus will be paid at the time and in the manner such prior year Annual Bonus is paid to other
executives receiving such prior year Annual Bonus. The Executive shall have no further rights to
any compensation (including any Base Salary or Annual Bonus) or any other benefits under this
Agreement, except to the extent already earned and vested as of the day immediately prior to his
death, or as earned, vested, or accrued by virtue of his death.

          4.2 Disability. If, during the Term the Executive is unable to perform his duties
hereunder due to a physical or mental incapacity for a period of 6 months within any 12 month
period (hereinafter a “Disability”), the Company shall have the right at any time
thereafter to terminate the Term upon sending written notice of termination to the Executive. If
the Company elects to terminate the Term by reason of Disability, the Company shall pay to the
Executive promptly after the notice of termination: (i) any Base Salary earned but not paid, (ii) a
pro rated Annual Bonus based on the number of days of the fiscal year worked by the Executive until
the date of the notice of termination, which pro-rated Annual Bonus will be paid at the time and in
the manner such Annual Bonus is paid to other executives receiving such bonus payment; (iii)
amounts payable under the LTIP in accordance with the terms thereof, and (iv) Annual Bonus for the
year prior to the year in which the Executive is terminated if at the time of termination the
Executive has earned an Annual Bonus payment for such prior year and has not yet been paid such
Annual Bonus, which prior year Annual Bonus will be paid at the time and in the manner such prior
year Annual Bonus is paid to other executives receiving such prior year Annual Bonus, in each case
less any other benefits payable to the Executive under any disability plan provided for hereunder
or otherwise furnished to the Executive by the Company. The Executive shall have no further rights
to any compensation (including any Base Salary or Annual Bonus) or any other benefits under this
Agreement except to the extent already earned and vested as of the day immediately prior to his
termination by reason of Disability, or as earned, vested, or accrued by virtue of his Disability.

          4.3 Cause. The Company may at any time by written notice to the Executive terminate
the Term for “Cause” (as defined below) and, upon such termination, this Agreement shall terminate
and the Executive shall be entitled to receive no further amounts or benefits hereunder, except for
any Base Salary earned but not paid prior to such termination. For the purposes of this Agreement,
“Cause” means: (i) continued neglect by the Executive of the Executive’s duties hereunder,
(ii) continued

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incompetence or unsatisfactory attendance, (iii) conviction of any felony, (iv) violation of
the rules, regulations, procedures or instructions relating to the conduct of employees,
directors, officers and/or consultants of the Company, (v) willful misconduct by the Executive in
connection with the performance of any material portion of the Executive’s duties hereunder, (vi)
breach of fiduciary obligation owed to the Company or commission of any act of fraud, embezzlement,
disloyalty or defalcation, or usurpation of a Company opportunity, (vii) breach of any provision of
this Agreement, including any non-competition, non-solicitation and/or confidentiality provisions
hereof, (viii) any act that has a material adverse effect upon the reputation of and/or the public
confidence in the Company, (ix) failure to comply with a reasonable order, policy or rule that
constitutes material insubordination, (x) engaging in any discriminatory or sexually harassing
behavior, or (xi) using, possessing or being impaired by or under the influence of illegal drugs or
the abuse of controlled substances or alcohol on the premises of the Company or any of its
subsidiaries or affiliates or while working or representing the Company or any of its subsidiaries
or affiliates. A termination for Cause by the Company of any of the events described in clauses
(i), (ii), (iv), (ix), (x) and (xi) shall only be effective on 15 days advance written
notification, providing Executive the opportunity to cure, if reasonably capable of cure within
said 15-day period; provided, however, that no such notification is required if the Cause event is
not reasonably capable of cure or the Board determines that its fiduciary obligation requires it to
effect a termination of Executive for Cause immediately.

          4.4 Termination by Company without Cause or by the Executive for Good Reason. If the
Executive’s employment is terminated by the Company without Cause (other than by reason of death or
Disability) or by the Executive for Good Reason (as defined below), the Executive shall receive:
(i) as severance pay, an amount equal to two times the Base Salary payable in installments in
accordance with the Company’s normal payroll practices, (ii) continuation for a 12-month period
following the date of termination of group health plan benefits to the extent authorized by and
consistent with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”), with the cost of the regular
premium for such benefits shared in the same relative proportion by the Company and the Employee as
in effect on the date of termination (provided that the Company shall not be required to pay any
portion of the premium if such payment would result in penalty taxes imposed on the Company), (iii)
Annual Bonus for the year in which termination occurred if the Executive would have been eligible
to receive such bonus hereunder (including due to satisfaction by the Company of performance
milestones) had the Executive been employed at the time such Annual Bonus is normally paid, which
Annual Bonus will be paid at the time and in the manner such Annual Bonus is paid to other
executives receiving such bonus payment, (iv) Annual Bonus for the year prior to the year in which
the Executive is so terminated if at the time of termination the Executive has earned an Annual
Bonus payment for such prior year and has not yet been paid such due to such termination, which
prior year Annual Bonus will be paid at the time and in the manner such prior year Annual Bonus is
paid to other executives receiving such prior year Annual Bonus and (v) amounts payable, if any,
under the LTIP in accordance with the terms thereof. The Executive shall have no further rights to
any compensation (including any Base Salary or Annual Bonus) or any other benefits under this
Agreement. For purposes of this Agreement, “Good Reason” means, without the

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advance written consent of the Executive: (i) a reduction in Base Salary or (ii) a material
and continuing reduction in the Executive’s responsibilities, provided, that a termination
by the Executive for Good Reason shall be effective only if the Executive provides the Company with
written notice specifying the event which constitutes Good Reason within thirty (30) days following
the occurrence of such event or date Executive became aware or should have become aware of such
event and the Company fails to cure the circumstances giving rise to Good Reason within 30 days
after such notice.

          4.5 Termination by Executive other than for Good Reason. The Executive is required to
provide the Company with 30 days’ prior written notice of termination to the Company. Subject to
Section 4.4, upon termination of employment by the Executive, the Executive shall receive any Base
Salary earned but not paid prior to such termination and shall have no further rights to any
compensation (including any Base Salary or Annual Bonus) or any other benefits under this
Agreement, except to the extent already earned and vested as of the day immediately prior to such
termination.

          4.6 Release. Notwithstanding any other provision of this Agreement to the contrary,
the Executive acknowledges and agrees that any and all payments, other than payment of any accrued
and unpaid Base Salary to which the Executive is entitled under this Section 4 are conditioned upon
and subject to the Executive’s execution of a general waiver and release (for the avoidance of
doubt, the restrictive covenants contained in Section 5 of this Agreement shall survive the
termination of this Agreement), in such form as may be prepared by the Company or MFW, of all
claims, except for such matters covered by provisions of this Agreement which expressly survive the
termination of this Agreement. Notwithstanding anything to the contrary, the severance payments
and benefits are conditioned on the Executive’s execution, delivery and nonrevocation of the
general waiver and release of claims within fifty-five days following the Executive’s termination
of employment (the “Release Condition”). Payments and benefits of amounts which do not
constitute nonqualified deferred compensation and are not subject to Section 409A (as defined
below) shall commence five (5) days after the Release Condition is satisfied and payments and
benefits which are subject to Section 409A shall commence on the 60th day after termination of
employment (subject to further delay, if required pursuant to Section 4.7.2 below) provided that
the Release Condition is satisfied.

          4.7 Section 409A.

               4.7.1 This Agreement is intended to satisfy the requirements of Section 409A of the Code
(“Section 409A”) with respect to amounts, if any, subject thereto and shall be
interpreted and construed and shall be performed by the parties consistent with such intent.
If either party notifies the other in writing that one or more or the provisions of this
Agreement contravenes any Treasury Regulations or guidance promulgated under Section 409A or
causes any amounts to be subject to interest, additional tax or penalties under Section 409A,
the parties shall agree to negotiate in good faith to make amendments to this Agreement as the
parties mutually agree, reasonably and in good faith are necessary or desirable, to (i)
maintain to the maximum extent reasonably practicable the original intent of the

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applicable provisions without violating the provisions of Section 409A or increasing the
costs to the Company of providing the applicable benefit or payment and (ii) to the extent
possible, to avoid the imposition of any interest, additional tax or other penalties under
Section 409A upon the parties.

               4.7.2 To the extent the Executive would otherwise be entitled to any payment or benefit
under this Agreement, or any plan or arrangement of the Company or its affiliates, that
constitutes a “deferral of compensation” subject to Section 409A and that if paid during the
six (6) months beginning on the date of termination of the Executive’s employment would be
subject to the Section 409A additional tax because the Executive is a “specified employee”
(within the meaning of Section 409A and as determined by the Company), the payment or benefit
will be paid or provided to the Executive on the earlier of the first day following the six (6)
month anniversary of the Executive’s termination of employment or death.

               4.7.3 Any payment or benefit due upon a termination of the Executive’s employment that
represents a “deferral of compensation” within the meaning of Section 409A shall be paid or
provided to the Executive only upon a “separation from service” as defined in Treas. Reg. §
1.409A-1(h). Each payment made under this Agreement shall be deemed to be a separate payment
for purposes of Section 409A. Amounts payable under this Agreement shall be deemed not to be a
“deferral of compensation” subject to Section 409A to the extent provided in the exceptions in
Treasury Regulation §§ 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay
plans,” including the exception under subparagraph (iii)) and other applicable provisions of
Treasury Regulation § 1.409A-1 through A-6.

               4.7.4 Notwithstanding anything to the contrary in Agreement, any payment or benefit under
this Agreement or otherwise that is exempt from Section 409A pursuant to Treasury Regulation §
1.409A-1(b)(9)(v)(A) or (C) (relating to certain reimbursements and in-kind benefits) shall be
paid or provided to the Executive only to the extent that the expenses are not incurred, or the
benefits are not provided, beyond the last day of the second calendar year following the
calendar year in which the Executive’s “separation from service” occurs; and provided further
that such expenses are reimbursed no later than the last day of the third calendar year
following the calendar year in which the Executive’s “separation from service” occurs. To the
extent any expense reimbursement or the provision of any in-kind benefit is determined to be
subject to Section 409A (and not exempt pursuant to the prior sentence or otherwise), the
amount of any such expenses eligible for reimbursement, or the provision of any in-kind
benefit, in one calendar year shall not affect provision of in-kind benefits or expenses
eligible for reimbursement in any other calendar year (except for any life-time or other
aggregate limitation applicable to medical expenses), and in no event shall any expenses be
reimbursed after the last day of the calendar year following the calendar year in which the
Executive incurred such expenses, and in no event shall any right to reimbursement or the
provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

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     5. Protection of Confidential Information; Restrictive Covenants.

          5.1 Prior to the Effective Date, the Company has shared confidential and trade secret
information of the Company and its subsidiaries and affiliates with the Executive. From the
Effective Date, the Company will share with the Executive confidential and trade secret information
regarding not only the Company but also its subsidiaries and affiliates. In view of the fact that
the Executive’s work for the Company will bring the Executive into close contact with many
confidential affairs of the Company not readily available to the public, trade secret information
and plans for future developments, the Executive agrees:

               5.1.1 To keep and retain in the strictest confidence all confidential matters of the
Company, including, without limitation, “know how”, trade secrets, customer lists, pricing
policies, operational methods, technical processes, formulae, inventions and research projects,
other business affairs of the Company, and any material confidential information whatsoever
concerning any director, officer, employee, shareholder, partner, customer or agent of the
Company or their respective family members learned by the Executive heretofore or hereafter,
and not to disclose them to anyone outside of the Company, either during or after the
Executive’s employment with the Company, except in the course of performing the Executive’s
duties hereunder or with the Company’s express written consent. The foregoing prohibitions
shall include, without limitation, directly or indirectly publishing (or causing, participating
in, assisting or providing any statement, opinion or information in connection with the
publication of) any diary, memoir, letter, story, photograph, interview, article, essay,
account or description (whether fictionalized or not) concerning any of the foregoing,
publication being deemed to include any presentation or reproduction of any written, verbal or
visual material in any communication medium, including any book, magazine, newspaper,
theatrical production or movie, or television or radio programming or commercial; and

               5.1.2 To deliver promptly to the Company on termination of the Executive’s employment by
the Company, or at any time the Company may so request, all memoranda, notes, records, reports,
manuals, drawings, blueprints and other documents (and all copies thereof), including data
stored in computer memories or on other media used for electronic storage or retrieval,
relating to the Company’s business and all property associated therewith, which the Executive
may then possess or have under the Executive’s control, and not retain any copies, notes or
summaries; provided Executive shall be entitled to keep a copy of this Agreement and
compensation and benefit plans to which Executive is entitled to receive benefits thereunder.

          5.2 In support of Executive’s commitments to maintain the confidentiality of the Company’s
confidential and trade secret information, (i) during the Term and for any period the Executive is
employed by the Company after the Term, and (ii) for a period of two years following termination of
the Executive’s employment for any reason (the “Restricted Period”), the Executive shall
not in the United States and in any non-US jurisdiction where the Company may then do business: (a)
directly or

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indirectly, enter the employ of, or render any services to, any person, firm or entity engaged
in any business competitive with any business of the Company or of any of its subsidiaries or
affiliates; (b) engage in such business on the Executive’s own account; and the Executive shall not
become interested in any such business, directly or indirectly, as an individual, partner,
shareholder, director, officer, principal, agent, employee, trustee, consultant, or in any other
relationship or capacity; (c)directly or indirectly, solicit or encourage (or cause to be solicited
or encouraged) or cause any client, customer or supplier of the Company to cease doing business
with the Company, or to reduce the amount of business such client, customer or supplier does with
the Company or (d) directly or indirectly, solicit or encourage (or cause to be solicited or
encouraged) to cease to work with the Company, or hire (or cause to be hired), any person who is an
employee of or consultant then under contract with the Company or who was an employee of or
consultant then under contract with the Company within the six month period preceding such activity
without the Company’s written consent, provided however that this clause (d) shall not apply during
the Restricted Period to a consulting or advisory firm which is also then currently engaged or
under a retainer relationship (in each case, without any action by the Executive, whether directly
or indirectly) by a subsequent employer of the Executive.

          5.3 If the Executive commits a breach, or poses a serious and objective threat to commit a
breach, of any of the provisions of Sections 5.1 or 5.2 hereof, the Company shall have the
following rights and remedies:

               5.3.1 The right and remedy to have the provisions of this Agreement specifically enforced
by any court having equity jurisdiction, it being acknowledged and agreed that any such breach
or threatened breach will cause irreparable injury to the Company and that money damages will
not provide an adequate remedy to the Company;

               5.3.2 The right and remedy to require the Executive to account for and pay over to the
Company all compensation, profits, monies, accruals, increments or other benefits derived or
received by the Executive as the result of any transactions constituting a breach of any of the
provisions of the preceding paragraph, and the Executive hereby agrees to account for and pay
over such benefits to the Company. Each of the rights and remedies enumerated above shall be
independent of the other, and shall be severally enforceable, and all of such rights and
remedies shall be in addition to, and not in lieu of, any other rights and remedies available
to the Company under law or in equity; and

               5.3.3 In addition to any other remedy which may be available (i) at law or in equity, or
(ii) pursuant to any other provision of this Agreement, the payments by the Company of Base
Salary and the regular premium for group health benefits pursuant to Section 4.4 will cease as
of the date on which such violation first occurs. In addition, if the Executive breaches any
of the covenants contained in Sections 5.1 and 5.2 and the Company obtains injunctive relief
with respect thereto (that is not later reversed or otherwise terminated or vacated by judicial
order), the period during which the Executive is required to

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comply with that particular covenant shall be extended by the same period that the
Executive was in breach of such covenant prior to the effective date of such injunctive relief.

          5.4 If any of the covenants contained in Sections 5.1 or 5.2, or any part thereof, hereafter
are held by a court to be invalid or unenforceable, the same shall not affect the remainder of the
covenant or covenants, which shall be given full effect, without regard to those portions found
invalid.

          5.5 If any of the covenants contained in Sections 5.1 or 5.2, or any part thereof, are held to
be unenforceable because of the duration of such provision or the area covered thereby, the parties
agree that the court making such determination shall have the power to reduce the duration and/or
area of such provision and, in its reduced form, said provision shall then be enforceable.

          5.6 The Executive agrees (whether during or after the Executive’s employment with the Company)
not to issue, circulate, publish or utter any false or disparaging statements, remarks or rumors
about the Company or its affiliates or the officers, directors, managers, customers, partners, or
shareholders of the Company or its affiliates, provided that nothing herein shall prohibit the
Executive from providing truthful testimony if such testimony is required by law.

          5.7 For purposes of this Section 5 only, the term “Company” includes the Company and its
subsidiaries and affiliates.

     6. Inventions and Patents.

          6.1 The Executive agrees that all processes, technologies and inventions (collectively,
“Inventions”), including new contributions, improvements, ideas and discoveries, whether
patentable or not, conceived, developed, invented or made by him during the Term shall belong to
the Company, provided that such Inventions grew out of the Executive’s work with the
Company or any of its subsidiaries or affiliates, are related in any manner to the business
(commercial or experimental) of the Company or any of its subsidiaries or affiliates or are
conceived or made on the Company’s time or with the use of the Company’s facilities or materials.
The Executive shall further: (a) promptly disclose such Inventions to the Company; (b) assign to
the Company, without additional compensation, all patent and other rights to such Inventions for
the United States and foreign countries; (c) sign all papers necessary to carry out the foregoing;
and (d) give testimony in support of the Executive’s inventorship.

          6.2 If any Invention is described in a patent application or is disclosed to third parties,
directly or indirectly, by the Executive within two years after the termination of the Executive’s
employment by the Company, it is to be presumed that the Invention was conceived or made during the
Term.

          6.3 The Executive agrees that the Executive will not assert any rights to any Invention as
having been made or acquired by the Executive prior to the

11

 

date of this Agreement, except for Inventions, if any, disclosed to the Company in writing prior to the date hereof.

          7. Intellectual Property.

          The Company shall be the sole owner of all the products and proceeds of the Executive’s
services hereunder, including, but not limited to, all materials, ideas, concepts, formats,
suggestions, developments, arrangements, packages, programs and other intellectual properties that
the Executive may acquire, obtain, develop or create in connection with and during the Term, free
and clear of any claims by the Executive (or anyone claiming under the Executive) of any kind or
character whatsoever (other than the Executive’s right to receive payments hereunder). The
Executive shall, at the request of the Company, execute such assignments, certificates or other
instruments as the Company may from time to time deem necessary or desirable to evidence,
establish, maintain, perfect, protect, enforce or defend its right, title or interest in or to any
such properties.

          8. Notices.

          All notices, requests, consents and other communications required or permitted to be given
hereunder shall be in writing and shall be deemed to have been duly given if delivered personally,
sent by overnight courier or mailed first class, postage prepaid, by registered or certified mail
(notices mailed shall be deemed to have been given on the date mailed), as follows (or to such
other address as either party shall designate by notice in writing to the other in accordance
herewith):

If to the Company, to:

Harland Clarke Holdings Corp.

10931 Laureate Drive

San Antonio, TX 78249

Attention: General Counsel

With a copy to:

c/o M&F Worldwide Corp.

35 E. 62nd Street

New York, NY 10065

Attention: Chief Legal Officer

If to the Executive, to:

Such address as shall most currently appear on the records of the
Company.

12

 

     9. Governing Law; Dispute Resolution.

          9.1 It is the intent of the parties hereto that all questions with respect to the construction
of this Agreement and the rights and liabilities of the parties hereunder shall be determined in
accordance with the laws of the State of Delaware,
without regard to principles of conflicts of laws thereof that would call for the application
of the substantive law of any jurisdiction other than the State of Delaware.

          9.2 Each party irrevocably agrees for the exclusive benefit of the other that any and all
suits, actions or proceedings relating to Section 5 of this Agreement (a “Proceeding”)
shall be maintained in either the courts of the State of Delaware or the federal District Courts
sitting in Bexar County, Texas or Wilmington, Delaware (collectively, the “Chosen Courts”)
and that the Chosen Courts shall have exclusive jurisdiction to hear and determine or settle any
such Proceeding and that any such Proceedings shall only be brought in the Chosen Courts. Each
party irrevocably waives any objection that it may have now or hereafter to the laying of the venue
of any Proceedings in the Chosen Courts and any claim that any Proceedings have been brought in an
inconvenient forum and further irrevocably agrees that a judgment in any Proceeding brought in the
Chosen Courts shall be conclusive and binding upon it and may be enforced in the courts of any
other jurisdiction.

          9.3 Each of the parties hereto agrees that this Agreement involves at least $100,000 and that
this Agreement has been entered into in express reliance on Section 2708 of Title 6 of the Delaware
Code. Each of the parties hereto irrevocably and unconditionally agrees (i) that, to the extent
such party is not otherwise subject to service of process in the State of Delaware, it will appoint
(and maintain an agreement with respect to) an agent in the State of Delaware as such party’s agent
for acceptance of legal process and notify the other parties hereto of the name and address of said
agent, (ii) that service of process may also be made on such party by pre-paid certified mail with
a validated proof of mailing receipt constituting evidence of valid service sent to such party at
the address set forth in Section 8 of this Agreement, as such address may be changed from time to
time pursuant hereto, and (iii) that service made pursuant to clause (i) or (ii) above shall, to
the fullest extent permitted by applicable law, have the same legal force and effect as if served
upon such party personally within the State of Delaware.

          9.4 Any controversy or claim arising out of or related to any other provision of this
Agreement shall be settled by final, binding and non-appealable arbitration in Bexar County, Texas
or Wilmington, Delaware by a single arbitrator. Subject to the following provisions, the
arbitration shall be conducted in accordance with the applicable rules of JAMS then in effect. Any
award entered by the arbitrator shall be final, binding and nonappealable and judgment may be
entered thereon by either party in accordance with applicable law in any court of competent
jurisdiction. This arbitration provision shall be specifically enforceable. The arbitrator shall
have no authority to modify any provision of this Agreement or to award a remedy for a dispute
involving this Agreement other than a benefit specifically provided under or by virtue of the
Agreement. Each party shall be responsible for its own expenses relating to the conduct

13

 

of the
arbitration or litigation (including reasonable attorneys’ fees and expenses) and shall share the
fees of JAMS and the arbitrator, if applicable, equally.

     10. General.

          10.1 JURY TRIAL WAIVER. THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY
TRIAL IN THE EVENT ANY ACTION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE EXECUTIVE’S
EMPLOYMENT WITH THE COMPANY IS LITIGATED OR HEARD IN ANY COURT.

          10.2 Continuation of Employment. Unless the parties otherwise agree in writing,
continuation of the Executive’s employment with the Company beyond the expiration of the Term shall
be deemed an employment at will and shall not be deemed to extend any of the provisions of this
Agreement, and Executive’s employment may thereafter be terminated “at will” by the Executive or
the Company and Executive will be entitled to fringe benefits which the Executive is eligible to
receive for so long as the Executive continues to be employed with the Company and the Executive
shall be eligible for severance in accordance with the terms of the Company’s severance policy then
in effect. Notwithstanding the foregoing, the Executive shall be subject to the restrictive
covenants set forth in Section 5.2 for the Restricted Period or if applicable, the Reduced
Restricted Period in accordance with Section 2.2.

          10.3 Headings. The section headings contained herein are for reference purposes only
and shall not in any way affect the meaning or interpretation of this Agreement.

          10.4 Entire Agreement. This Agreement sets forth the entire agreement and
understanding of the parties relating to the Executive’s employment by the Company, and supersedes
all prior agreements, arrangements and understandings, written or oral, relating to the Executive’s
employment by the Company and its affiliates including, without limitation, effective as of the
Effective Date, the Prior Employment Agreement and any severance, retention, change in control or
similar types of benefits. Notwithstanding the preceding sentence, to the extent not yet paid, the
Executive will be entitled to receive payment of (i) his Annual Bonus, if any, for 2010 and (ii)
amounts payable in accordance with the LTIP, if any with respect to 2008-2010, in each case in
accordance with the terms of (and at the times provided for in) the Prior Employment Agreement. No
representation, promise or inducement has been made by either party that is not embodied in this
Agreement, and neither party shall be bound by or liable for any alleged representation, promise or
inducement not so set forth.

          10.5 Assignment. This Agreement, and the Executive’s rights and obligations
hereunder, may not be assigned by the Executive. The Company and MFW may assign their respective
rights, together with their respective obligations, hereunder (i) to any affiliate or (ii) to third
parties in connection with any sale, transfer or other disposition of all or substantially all of
the business or assets of MFW or the Company; in any event the obligations of the Company
hereunder shall be binding on its

14

 

successors or assigns, whether by merger, consolidation or
acquisition of all or substantially all of its business or assets.

          10.6 Waiver. This Agreement may be amended, modified, superseded, canceled, renewed
or extended and the terms or covenants hereof may be waived, only by a written instrument executed
by all of the parties hereto, or in the case of a waiver, by the party waiving compliance. The
failure of either party at any time or times to require performance of any provision hereof shall
in no manner affect the right at a later time to enforce the same. No waiver by either party of
the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in
any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver
of any such breach, or a waiver of the breach of any other term or covenant contained in this
Agreement.

          10.7 Withholding Taxes. The Company may withhold from any amounts payable under this
Agreement such federal, state, local and other taxes as may be required to be withheld pursuant to
any applicable law or regulation.

     11. Subsidiaries and Affiliates.

          11.1 As used herein, the term “subsidiary” shall mean any corporation or other
business entity controlled directly or indirectly by the corporation or other business entity in
question, and the term “affiliate” shall mean and include any corporation or other business
entity directly or indirectly controlling, controlled by or under common control with the
corporation or other business entity in question.

[Remainder of Page Intentionally Left Blank]

15

 

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	HARLAND CLARKE HOLDINGS CORP.

 	 
	 	By:  	

/s/ Peter Fera
 	 
	 	 	Name:  	Peter Fera 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	M&F WORLDWIDE CORP.

 	 
	 	By:  	

/s/ Barry F. Schwartz
 	 
	 	 	Name:  	Barry F. Schwartz 	 
	 	 	Title:  	President and Chief Executive
Officer 	 

	 	 	 	 	 
	 	                                                       /s/ Charles Dawson
 	 
	 	Charles Dawsonexv10w1

Exhibit 10.1

 

REIMBURSEMENT AGREEMENT

Dated as of January 4, 2011

between

iRobot Corporation

and

BANK OF AMERICA, N.A.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page	 
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	1.01 Defined Terms
	 	 	1	 
	1.02 Other Interpretive Provisions
	 	 	12	 
	1.03 Accounting Terms
	 	 	12	 
	1.04 Rounding
	 	 	13	 
	1.05 References to Agreements and Laws
	 	 	13	 
	1.06 Times of Day
	 	 	13	 
	1.07 Letter of Credit Amounts
	 	 	13	 
	 
	 	 	 	 
	ARTICLE II.
THE COMMITMENT AND L/C CREDIT EXTENSIONS
	 	 	13	 
	2.01 Letters of Credit
	 	 	13	 
	2.02 Termination or Reduction of Commitment
	 	 	18	 
	2.03
Repayment of L/C Obligations
	 	 	20	 
	2.04 Fees
	 	 	20	 
	2.05 Computation of Interest and Fees
	 	 	20	 
	2.06 Payments Generally
	 	 	20	 
	 
	 	 	 	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	22	 
	3.01 Taxes
	 	 	22	 
	3.02 Increased Cost and Reduced Return; Capital Adequacy
	 	 	23	 
	3.03 Requests for Compensation
	 	 	23	 
	3.04 Survival
	 	 	23	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	24	 
	4.01
Conditions of Initial L/C Credit Extension
	 	 	24	 
	4.02
Conditions to all L/C Credit Extensions
	 	 	25	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES
	 	 	25	 
	5.01 Existence, Qualification and Power; Compliance with Laws
	 	 	26	 
	5.02 Authorization; No Contravention
	 	 	26	 
	5.03 Governmental Authorization; Other Consents
	 	 	26	 
	5.04 Binding Effect
	 	 	26	 
	5.05 Financial Statements; No Material Adverse Effect
	 	 	26	 
	5.06 Litigation
	 	 	27	 
	5.07 No Default
	 	 	27	 
	5.08 Ownership of Property; Liens
	 	 	27	 
	5.09 Environmental Compliance
	 	 	27	 
	5.10 Insurance
	 	 	27	 
	5.11 Taxes
	 	 	28	 
	5.12 ERISA Compliance
	 	 	28	 
	5.13 Subsidiaries
	 	 	28	 
	5.14 Margin Regulations; Investment Company Act
	 	 	29	 
	5.15 Disclosure
	 	 	29	 
	5.16 Compliance with Laws
	 	 	29	 
	5.17 Intellectual Property; Licenses, Etc.
	 	 	29	 
	 
	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS
	 	 	30	 

-i-

 

	 	 	 	 	 
	6.01 Financial Statements
	 	 	30	 
	6.02 Certificates; Other Information
	 	 	31	 
	6.03 Notices
	 	 	31	 
	6.04 Payment of Obligations
	 	 	32	 
	6.05 Preservation of Existence, Etc.
	 	 	32	 
	6.06 Maintenance of Properties
	 	 	32	 
	6.07 Maintenance of Insurance
	 	 	32	 
	6.08 Compliance with Laws
	 	 	33	 
	6.09 Books and Records
	 	 	33	 
	6.10 Inspection Rights
	 	 	33	 
	6.11 Use of Proceeds
	 	 	34	 
	 
	 	 	 	 
	ARTICLE VII. NEGATIVE COVENANTS
	 	 	34	 
	7.01 Liens
	 	 	34	 
	7.02 Investments
	 	 	35	 
	7.03 Indebtedness
	 	 	35	 
	7.04 Fundamental Changes
	 	 	36	 
	7.05 Dispositions
	 	 	36	 
	7.06 Restricted Payments
	 	 	37	 
	7.07 Change in Nature of Business
	 	 	37	 
	7.08 Transactions with Affiliates
	 	 	37	 
	7.09 Burdensome Agreements
	 	 	37	 
	7.10 Use of Proceeds
	 	 	38	 
	7.11 Financial Covenants
	 	 	38	 
	7.12 Accounts. Borrower shall maintain the Lender as the Borrower’s primary
depositing account
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	 	 	38	 
	8.01 Events of Default
	 	 	38	 
	8.02 Remedies Upon Event of Default
	 	 	40	 
	8.03 Application of Funds
	 	 	41	 
	 
	 	 	 	 
	ARTICLE IX. MISCELLANEOUS
	 	 	41	 
	9.01 Amendments; Etc.
	 	 	41	 
	9.02 Notices and Other Communications; Facsimile Copies
	 	 	41	 
	9.03 No Waiver; Cumulative Remedies
	 	 	42	 
	9.04 Attorney Costs, Expenses and Taxes
	 	 	42	 
	9.05 Indemnification by the Borrower
	 	 	43	 
	9.06 Payments Set Aside
	 	 	43	 
	9.07 Successors and Assigns
	 	 	44	 
	9.08 Confidentiality
	 	 	46	 
	9.09 Set-off
	 	 	46	 
	9.10 Interest Rate Limitation
	 	 	47	 
	9.11 Counterparts
	 	 	48	 
	9.12 Integration
	 	 	48	 
	9.13 Survival of Representations and Warranties
	 	 	48	 
	9.14 Severability
	 	 	48	 
	9.15 Governing Law
	 	 	48	 
	9.16 Waiver of Right to Trial by Jury
	 	 	49	 
	9.17 Dispute Resolution Provision
	 	 	49	 
	9.18 USA Patriot Act Notice
	 	 	51	 
	9.19 Time of the Essence
	 	 	51	 

-ii-

 

	 	 	 	 	 
	9.20 Entire Agreement
	 	 	51	 
	SIGNATURES
	 	 	S-1	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	5.05 Supplement to Interim Financial Statements
	 	 	 	 
	5.06 Litigation
	 	 	 	 
	5.09 Environmental Matters
	 	 	 	 
	5.13 Subsidiaries and Other Equity Investments
	 	 	 	 
	5.18 Intellectual Property Matters
	 	 	 	 
	7.01 Existing Liens
	 	 	 	 
	7.03 Existing Indebtedness
	 	 	 	 
	9.02 Lending Office, Addresses for Notices
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Form of
	 	 	 	 
	 
	 	 	 	 
	C            Compliance Certificate
	 	 	 	 

-iii-

 

REIMBURSEMENT AGREEMENT

     This REIMBURSEMENT AGREEMENT (“Agreement”) is entered into as of January 4, 2011
by and between iRobot Corporation, a Delaware corporation (the “Borrower”) and BANK OF
AMERICA, N.A. (the “Lender”).

     The Borrower has requested that the Lender provide a revolving letter of credit facility, and
the Lender is willing to do so on the terms and conditions set forth herein.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

     1.01 Defined Terms.

     As used in this Agreement, the following terms shall have the meanings set forth below:

     “Adjusted EBITDA” means, for any period, for the Borrower and its Subsidiaries on a
consolidated basis, an amount equal to Net Income for such period plus (a) the following to the
extent deducted in calculating such Net Income: (i) interest charges for such period, (ii) the
provision for Federal, state, local and foreign income taxes payable by the Borrower and its
Subsidiaries for such period, (iii) depreciation and amortization expense, (iv) any extraordinary
losses, expenses or charges, including asset impairment charges and non-cash restructuring charges
(v) non-cash charges related to compensation expense, including stock based compensation, and (vi)
all expenses associated with merger and acquisition transactions completed within the applicable
period up to a maximum of $500,000 of expenses per transaction minus (b) the following: (i) any
extraordinary gains to the extent increasing Net Income and (ii) all non-cash items increasing Net
Income for such period.

     “Affiliate” means, with respect to any Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified. “Control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise. “Controlling” and
“Controlled” have meanings correlative thereto. Without limiting the generality of the
foregoing, a Person shall be deemed to be Controlled by another Person if such other Person
possesses, directly or indirectly, power to vote 10% or more of the securities having ordinary
voting power for the election of directors, managing general partners or the equivalent.

     “Agreement” means this Credit Agreement.

     “Applicable Rate” means a per annum rate equal to:

     (a) with respect to Letters of Credit, 2.0%; and

1

 

     (b) with respect to Base Rate Loans,0%.

     “Attorney Costs” means and includes all reasonable documented fees, expenses and
disbursements of any law firm or other external counsel and, without duplication, the allocated
cost of internal legal services and all expenses and disbursements of internal counsel.

     “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease.

     “Audited Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended December 31, 2009, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of the Borrower and its Subsidiaries, including the notes thereto.

     “Availability Period” means the period from and including the Closing Date to the
earlier of (a) the Maturity Date and (b) the date of termination of the Commitment.

     “Base Rate Loan” means a L/C Borrowing that bears interest based on the Prime Rate.

     “Borrower” has the meaning specified in the introductory paragraph hereto.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Lending Office is located.

     “Cash Collateralize” has the meaning specified in Section 2.01(f).

     “Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived by the Lender.

     “Code” means the Internal Revenue Code of 1986.

     “Commitment” means the obligation of the Lender to make L/C Credit Extensions
hereunder in an aggregate amount at any one time not to exceed Five Million ($5,000,000) Dollars,
as such amount may be adjusted from time to time in accordance with this Agreement.

     “Compliance Certificate” means a certificate substantially in the form of Exhibit
C.

     “Consolidated Tangible Net Worth” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, Shareholders’ Equity of the Borrower and its
Subsidiaries on that date minus the Intangible Assets of the Borrower and its Subsidiaries on that
date.

2

 

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

     “Control” has the meaning specified in the definition of “Affiliate.”

     “Credit Extension” means borrowing of a L/C Credit Extension.

     “Current Assets” means the aggregate of cash plus short term marketable securities
plus accounts receivable plus auction rate securities held on Borrower’s balance sheet.

     “Current Liabilities” means the current portion of the Borrower’s obligations for
borrowed money (including Obligations hereunder).

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

     “Default Rate” means an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per annum; in each case
to the fullest extent permitted by applicable Laws.

     “Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by any Person, including
any sale, assignment, transfer or other disposal, with or without recourse, of any notes or
accounts receivable or any rights and claims associated therewith.

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

     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

     “EBIT” means earnings before interest and taxes all as determined in accordance with
GAAP, consistently applied.

     “Eligible Assignee” has the meaning specified in Section 9.07(f).

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including

3

 

those related to hazardous substances or wastes, air emissions and discharges to waste or
public systems.

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

     “ERISA” means the Employee Retirement Income Security Act of 1974.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the
Code).

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing
of a notice of intent to terminate, the treatment of a Plan amendment as a termination under
Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA,
other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower
or any ERISA Affiliate.

     “Event of Default” has the meaning specified in Section 8.01.

     “Existing Credit Agreement” means the Credit Agreement dated June 5, 2007 between the
Borrower and the Lender, as amended.

     “Existing Letters of Credit” means Letter of Credit No. 68018099 in the amount of One
Million Seven Hundred Fifty Thousand Dollars ($1,750,000.00) issued on April 6, 2007 on behalf of
the Borrower for the benefit of Boston Properties, Inc., Letter of Credit No. 68051729 in the
amount of Eighty Two Thousand Eight Hundred Twenty Four Dollars ($82,824.00) issued on July 22,
2010 on behalf of the Borrower for the benefit of MCB Bank, Pakistan, Letter of Credit No. 68054204
in the amount Ten Thousand Dollars ($10,000.00) issued on November 17, 2010 on behalf of the
Borrower for the benefit of UZKDB Bank, Uzbekistan, and Letter of

4

 

Credit No. 68054205 in the amount of Sixty Five Thousand Dollars ($65,000.00) issued on
November 17, 2010 on behalf of the Borrower for the benefit of UZKDB Bank, Uzbekistan.

     “Federal Funds Rate” means, for any day, the 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 by the Federal Reserve
Bank of New York on the Business Day next succeeding such day; provided that (a) if such
day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole
multiple of 1/100 of 1%) charged to the Lender on such day on such transactions as determined by
the Lender.

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

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

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

     “Guarantee” means, as to any Person, any (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person. The amount of any Guarantee
shall be deemed to be an amount equal to the stated or determinable amount of the related primary
obligation, or portion thereof, in respect of which such Guarantee is made or, if

5

 

not stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning.

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

     “Honor Date” has the meaning specified in Section 2.01(c)(i).

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) all direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and
similar instruments;

     (c) net obligations of such Person under any Swap Contract;

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

     (f) capital leases and Synthetic Lease Obligations; and

     (g) all Guarantees of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such
date. The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable Indebtedness in respect thereof as of such date.

     “Indemnified Liabilities” has the meaning specified in Section 9.05.

6

 

     “Indemnitees” has the meaning specified in Section 9.05.

     “Intangible Assets” means assets that are considered to be intangible assets under
GAAP, including customer lists, goodwill, computer software, copyrights, trade names, trademarks,
patents, franchises, licenses, unamortized deferred charges, unamortized debt discount and
capitalized research and development costs.

     “Interest Coverage” means the ratio of EBIT to interest expense.

     “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or
assumption of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other
Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions)
of assets of another Person that constitute a business unit. For purposes of covenant compliance,
the amount of any Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment.

     “IP Rights” has the meaning specified in Section 5.18.

     “IRS” means the United States Internal Revenue Service.

     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998: published by the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance).

     “Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case whether or not having the
force of law.

     “L/C Borrowing” has the meaning specified in Section 2.01 (c) (i).

     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the renewal or increase of the amount thereof.
For purposes of computing the amount available to be drawn under any Letter of Credit, the amount
of such Letter of Credit shall be determined in accordance with Section 1.07. For all purposes of
this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such
Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be
drawn.

7

 

     “L/C Obligations” means, as at any date of determination, the aggregate undrawn amount
of all outstanding Letters of Credit plus the aggregate of all unreimbursed drawings under
all Letters of Credit.

     “Lending Office” means the office or offices of the Lender described as such on
Schedule 9.02, or such other office or offices as the Lender may from time to time notify
the Borrower.

     “Letter of Credit” means any letter of credit issued hereunder and shall include the
Existing Letters of Credit.

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the Lender.

     “Letter of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, and any financing lease having substantially the same economic
effect as any of the foregoing).

     “Loan Documents” means this Agreement and the Letter of Credit Application.

     “London Banking Day” is a day on which banks in London are open for business and
dealing in offshore dollars.

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business or, condition (financial or otherwise) of the
Borrower or the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the
ability of the Borrower to perform its obligations under any Loan Document to which it is a party;
or (c) a material adverse effect upon the legality, validity, binding effect or enforceability
against the Borrower of the Loan Documents to which it is a party.

     “Maturity Date” means June 5, 2012.

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Net Income” shall mean net income as determined in accordance with GAAP.

     “Obligations” means all advances to, and debts, liabilities, obligations (including,
without limitation, for reimbursement in connection with guaranties and Letters of Credit, L/C
Obligations, or in connection with any depository, cash management and/or treasury

8

 

management
services or products provided by the Lender or any of its affiliates to the Borrower
including ePayables Solution), agreements, undertakings, covenants and duties of, the Borrower
arising under any Loan Document, Swap Contract, or otherwise with respect to Letter of Credit, or
under the Lender’s Treasury Services Terms and Conditions, or under any other agreements or
documents of every kind relating to any depository, treasury services products or cash management
services provided by the Lender for the benefit of or otherwise in respect of the Borrower
(including all renewals, extensions, amendments), including with limitation all interest, fees,
charges, and amounts chargeable to Borrower, whether direct or indirect (including those acquired
by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against the Borrower or any
Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor
in such proceeding, regardless of whether such interest and fees are allowed claims in such
proceeding.

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

     “Outstanding Amount” means on any date, the amount of L/C Obligations on such date
after giving effect to any L/C Credit Extension occurring on such date and any other changes in the
aggregate amount of the L/C Obligations as of such date, including as a result of any
reimbursements by Borrower of Unreimbursed Amounts.

     “Participant” has the meaning specified in Section 9.07(c).

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

     “Permitted Acquisition” means an acquisition of the capital stock or the property of
another Person, whether or not involving a merger or consolidation with such other Person by the
Borrower (so long as the Borrower is the surviving entity) or any Subsidiary of the Borrower,
provided that (i) any Person acquired is in substantially the same field of business as the
Borrower or any Subsidiary of the Borrower (or any reasonable extensions or expansions thereof) and
any property acquired (or the property of the Person acquired) in such acquisition is

9

 

used or useful in the same business as the Borrower or its Subsidiaries were engaged in on the
Closing Date (or any reasonable extensions or expansions thereof), (ii) no Indebtedness is
assumed or incurred in connection with the acquisition other than Indebtedness permitted under
clause (iv) hereof or Section 7.03, (iii) the acquisition is “friendly” or non-hostile in nature,
(iv) the total purchase price for all such acquisitions in the aggregate during the term of this
Agreement not exceed $15,000,000.00 inclusive of any unsecured indebtedness assumed in connection
with such acquisitions; and (v) the Borrower shall have delivered to the Lender a pro forma
compliance certificate demonstrating compliance with Section 7.11, inclusive (after giving effect
to such acquisition on a pro forma basis) and certifying that no Default or Event of Default would
exist after giving effect to such acquisition.

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

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by the Borrower or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate.

     “Prime Rate” shall mean, on any day, the rate of interest per annum then most recently
established by Lender as its “prime rate.” Any such rate is a general reference rate of interest,
may not be related to any other rate, and may not be the lowest or best rate actually charged by
Lender to any customer or a favored rate and may not correspond with future increases or decreases
in interest rates charged by other lenders or market rates in general, and Lender may make various
business or other loans at rates of interest having no relationship to such rate.”

     “Quick Ratio” means the ratio of Current Assets to Current Liabilities.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means with respect to an L/C Credit Extension, a
Letter of Credit Application.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of the Borrower. Any document delivered hereunder that
is signed by a Responsible Officer of the Borrower shall be conclusively presumed to have been
authorized by all necessary corporate, partnership and/or other action on the part of such Borrower
and such Responsible Officer shall be conclusively presumed to have acted on behalf of the
Borrower.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other equity interest of the
Borrower or any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such capital stock or other equity

10

 

interest or of
any option, warrant or other right to acquire any such capital stock or other equity interest.

     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Borrower and its Subsidiaries as of that date determined in accordance
with GAAP.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Borrower.

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

     “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts (which may include
the Lender or any Affiliate of the Lender).

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or

11

 

possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

     “Threshold Amount” means Two Million Five Hundred Thousand Dollars ($2,500,000.00).

     “Total Outstandings” means the aggregate Outstanding Amount of all L/C Obligations.

     “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets,
determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section
412 of the Code for the applicable plan year.

     “United
States” and “U.S.” mean the United States of America.

     “Umreimbursed
Amount” has the meaning specified in Section 2.01(c)(i).

     1.02 Other Interpretive Provisions.

     With reference to this Agreement and each other Loan Document, unless otherwise specified
herein or in such other Loan Document:

     (a) The meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

     (b) (i) The words “herein,” “hereto,” “hereof” and
“hereunder” and words of similar import when used in any Loan Document shall refer
to such Loan Document as a whole and not to any particular provision thereof.

     (ii) Article, Section, Exhibit and Schedule references are to the Loan Document in
which such reference appears.

     (iii) The term “including” is by way of example and not limitation.

     (iv) The term “documents” includes any and all instruments, documents,
agreements, certificates, notices, reports, financial statements and other writings,
however evidenced, whether in physical or electronic form.

     (c) In the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including;” the words “to” and
“until” each mean “to but excluding;” and the word “through” means
“to and including.”

     (d) Section headings herein and in the other Loan Documents are included for
convenience of reference only and shall not affect the interpretation of this Agreement or
any other Loan Document.

12

 

     1.03
Accounting Terms.

     (a) All accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial ratios and other
financial calculations) required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the Audited Financial
Statements, except as otherwise specifically prescribed herein.

     (b) If at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Loan Document, and either the Borrower or the Lender
shall so request, the Lender and the Borrower shall negotiate in good faith to amend such
ratio or requirement to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Lender), provided that, until so amended, (i) such ratio or
requirement shall continue to be computed in accordance with GAAP prior to such change
therein and (ii) the Borrower shall provide to the Lender financial statements and other
documents required under this Agreement or as reasonably requested hereunder setting forth a
reconciliation between calculations of such ratio or requirement made before and after
giving effect to such change in GAAP.

     1.04
Rounding.

     Any financial ratios required to be maintained by the Borrower pursuant to this Agreement
shall be calculated by dividing the appropriate component by the other component, carrying the
result to one place more than the number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a rounding-up if there is no nearest
number).

     1.05 References to Agreements and Laws.

     Unless otherwise expressly provided herein, (a) references to Organization Documents,
agreements (including the Loan Documents) and other contractual instruments shall be deemed to
include all subsequent amendments, restatements, extensions, supplements and other modifications
thereto, but only to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Loan Document; and (b) references to any Law shall
include all statutory and regulatory provisions consolidating, amending, replacing, supplementing
or interpreting such Law.

     1.06 Times of Day.

     Unless otherwise specified, all references herein to times of day shall be references to
Eastern time (daylight or standard, as applicable).

     1.07
Letter of Credit Amounts.

     Unless otherwise specified, all references herein to the amount of a Letter of Credit at any
time shall be deemed to mean the maximum face amount of such Letter of Credit after giving

13

 

effect
to all increases thereof contemplated by such Letter of Credit or the Letter of Credit Application
therefor, whether or not such maximum face amount is in effect at such time.

ARTICLE II.

THE COMMITMENT AND L/C CREDIT EXTENSIONS

     2.01
Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, the Lender agrees (A)
from time to time on any Business Day during the period from the Closing Date until
the Letter of Credit Expiration Date, to issue Letters of Credit for the account of
the Borrower, and to amend or renew Letters of Credit previously issued by it, in
accordance with subsection (b) below, and (B) to honor drafts under the Letters of
Credit; provided that the Lender shall not be obligated to make any L/C Credit
Extension with respect to any Letter of Credit if as of the date of such L/C Credit
Extension, the Total Outstandings would exceed the Commitment. Within the foregoing
limits, and subject to the terms and conditions hereof, the Borrower’s ability to
obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may,
during the foregoing period, obtain Letters of Credit to replace Letters of Credit
that have expired or that have been drawn upon and reimbursed. All Existing Letters
of Credit shall be deemed to have been issued pursuant hereto, and from and after the
Closing Date shall be subject to and governed by the terms and conditions hereof.

     (ii) The Lender shall be under no obligation to issue any Letter of Credit if:

     (A) The expiration date of such requested Letter of Credit will occur
after the Letter of Credit Expiration Date;

     (B) any order, judgment or decree of any Governmental Authority or
arbitrator shall by its terms purport to enjoin or restrain the Lender from
issuing such Letter of Credit, or any Law applicable to the Lender or any
request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over the Lender shall prohibit, or
request that the Lender refrain from, the issuance of letters of credit
generally or such Letter of Credit in particular or shall impose upon the
Lender with respect to such Letter of Credit any restriction, reserve or
capital requirement (for which the Lender is not otherwise compensated
hereunder) not in effect on the Closing Date, or shall impose upon the
Lender any unreimbursed loss, cost or expense which was not applicable on
the Closing Date and which the Lender in good faith deems material to it;

14

 

     (C) subject to Section 2.01(b)(iii), the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of
issuance or last renewal;

     (D) the issuance of such Letter of Credit would violate one or more
policies of the Lender;

     (E) such Letter of Credit is in an initial amount less than $100,000,
or is to denominated in a currency other than Dollars; or

     (F) UNLESS SPECIFICALLY PROVIDED FOR IN THIS AGREEMENT, SUCH LETTER OF
CREDIT CONTAINS ANY PROVISIONS FOR AUTOMATIC REINSTATEMENT OF THE STATED
AMOUNT AFTER ANY DRAWING THEREUNDER.

     (iii) The Lender shall be under no obligation to amend any Letter of Credit if
(A) the Lender would have no obligation at such time to issue such Letter of Credit in
its amended form under the terms hereof, or (B) the beneficiary of such Letter of
Credit does not accept the proposed amendment to such Letter of Credit.

     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Renewal Letters of
Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon
the request of the Borrower delivered to the Lender in the form of a Letter of Credit
Application, appropriately completed and signed by a Responsible Officer of the
Borrower. Such L/C Application must be received by the Lender not later than 1:00
p.m., at least two Business Days (or such later date and time as the Lender may agree
in a particular instance in its sole discretion) prior to the proposed issuance date
or date of amendment, as the case may be. In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify in
form and detail reasonably satisfactory to the Lender: (A) the proposed issuance date
of the requested Letter of Credit (which shall be a Business Day); (B) the amount
thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary
thereof; (E) the documents to be presented by such beneficiary in case of any drawing
thereunder; (F) the full text of any certificate to be presented by such beneficiary
in case of any drawing thereunder; and (G) such other matters as the Lender may
require. In the case of a request for an amendment of any outstanding Letter of
Credit, such Letter of Credit Application shall specify in form and detail reasonably
satisfactory to the Lender (A) the Letter of Credit to be amended; (B) the proposed
date of amendment thereof (which shall be a Business Day); (C) the nature of the
proposed amendment; and (D) such other matters as the Lender may require.

     (ii) Upon the Lender’s determination that the requested issuance or amendment is
permitted in accordance with the terms hereof, then, subject to the

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terms and conditions hereof, the Lender shall, on the requested date, issue a Letter of Credit
for the account of the Borrower or enter into the applicable amendment, as the case
may be, in each case in accordance with the Lender’s usual and customary business
practices.

     (iii) If the Borrower so requests in any applicable Letter of Credit Application,
the Lender may, in its sole and absolute discretion, agree to issue a Letter of Credit
that has (A) automatic renewal provisions (each, an “Auto-Renewal Letter of
Credit”) or (B) an expiry date of more than twelve months after the date of
issuance; provided that any such Auto-Renewal Letter of Credit must permit the
Lender to prevent any such renewal at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior notice
to the beneficiary thereof not later than a day in each such twelve-month period to be
agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by
the Lender, the Borrower shall not be required to make a specific request to the
Lender for any such renewal. Once an Auto-Renewal Letter of Credit has been issued,
the Lender shall, subject to the terms and conditions set forth herein, permit the
renewal of such Letter of Credit to an expiry date not later than the Letter of Credit
Expiration Date; provided, however, that the Lender shall have no
obligation to permit the renewal of any Auto-Renewal Letter of Credit at any time if
it has determined that it would have no obligation at such time to issue such Letter
of Credit in its renewed form under the terms hereof (by reason of the provisions of
Section 2.01(a)(ii) or otherwise).

     (iv) Promptly after its delivery of any Letter of Credit or any amendment to a
Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the Lender will also deliver to the Borrower a true and complete copy of such
Letter of Credit or amendment.

     (c) Drawings and Reimbursements.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the Lender shall notify the Borrower thereof.
Not later than 1:00 p.m. on the date of any payment by the Lender under a Letter of
Credit (each such date, an “Honor Date”), of which payment the Lender has
provided notice to the Borrower, the Borrower shall reimburse the Lender in an amount
equal to the amount of such drawing. If the Borrower fails to so reimburse the
Lender, the Borrower shall be deemed to have requested a borrowing (the “L/C
Borrowing”) of a Base Rate Loan to be disbursed on the Honor Date in an amount equal
to the amount of such unreimbursed drawing, subject to the amount of the unutilized
portion of the Commitment and the conditions set forth in Section 4.02 .

     (ii) If the Borrower fails to reimburse the Lender for any drawing under any
Letter of Credit (whether by means of a borrowing or otherwise), such

16

 

unreimbursed amount shall be due and payable on demand (together with
interest) and shall bear interest at the Default Rate.

     (d) Obligations Absolute. The obligation of the Borrower to reimburse the
Lender for each drawing under each Letter of Credit shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under
all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this
Agreement, or any other agreement or instrument relating thereto;

     (ii) the existence of any claim, counterclaim, set-off, defense or other
right that the Borrower may have at any time against any beneficiary or any transferee
of such Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the Lender or any other Person, whether in connection with
this Agreement, the transactions contemplated hereby or by such Letter of Credit or
any agreement or instrument relating thereto, or any unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect; or any
loss or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit;

     (iv) any payment by the Lender under such Letter of Credit against
presentation of a draft or certificate that does not strictly comply with the terms of
such Letter of Credit; or any payment made by the Lender under such Letter of Credit
to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee
for the benefit of creditors, liquidator, receiver or other representative of or
successor to any beneficiary or any transferee of such Letter of Credit, including any
arising in connection with any proceeding under any Debtor Relief Law, in each such
case, other than any such payment resulting from the gross negligence or willful
misconduct of the Lender; or

     (v) any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing, including any other circumstance that might otherwise constitute
a defense available to, or a discharge of, the Borrower.

     The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s
instructions or other irregularity, the Borrower will promptly notify the Lender. The Borrower
shall be conclusively deemed to have waived any such claim against the Lender and its
correspondents unless such notice is given as aforesaid.

17

 

     (e) Role of Lender. The Borrower agrees that, in paying any drawing under
a Letter of Credit, the Lender shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by the Letter of
Credit) or to ascertain or inquire as to the validity or accuracy of any such document
or the authority of the Person executing or delivering any such document. The Borrower
hereby assumes all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights
and remedies as it may have against the beneficiary or transferee at law or under any other
agreement. None of the Lender, any of its Affiliates, any of the respective officers,
directors, employees, agents or attorneys-in-fact of the Lender and its Affiliates, nor any
of the respective correspondents, participants or assignees of the Lender shall be liable or
responsible for any of the matters described in clauses (i) through (v) of Section
2.01(d); provided, however, that anything in such clauses to the
contrary notwithstanding, the Borrower may have a claim against the Lender, and the Lender
may be liable to the Borrower, to the extent, but only to the extent, of any direct, as
opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower
proves were caused by the Lender’s willful misconduct or gross negligence or the Lender’s
willful failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the terms and
conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing,
the Lender may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the
contrary, and the Lender shall not be responsible for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a Letter of Credit
or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may
prove to be invalid or ineffective for any reason.

     (f) Cash Collateral. Upon the request of the Lender, (i) if the Lender has
honored any full or partial drawing request under any Letter of Credit and such drawing has
not been reimbursed on the applicable Honor Date in accordance with Section 2.01(c), or (ii)
if, as of the Letter of Credit Expiration Date, any Letter of Credit may for any reason
remain outstanding and partially or wholly undrawn, the Borrower shall promptly Cash
Collateralize the then Outstanding Amount of all L/C Obligations (in an amount equal to such
Outstanding Amount determined as of the applicable Honor Date or the Letter of Credit
Expiration Date, as the case may be). For purposes hereof, “Cash Collateralize”
means to pledge and deposit with or deliver to the Lender, as collateral for the L/C
Obligations, cash or deposit account balances pursuant to documentation in form and
substance reasonably to the Lender. Derivatives of such term have corresponding meanings.
The Borrower hereby grants to the Lender a security interest in all such cash, deposit
accounts and all balances therein and all proceeds of the foregoing. Cash collateral shall
be maintained in blocked, non-interest bearing deposit accounts at the Lender.

     (g) Applicability of ISP98 and UCP. Unless otherwise expressly agreed by
the Lender and the Borrower when a Letter of Credit is issued (including any such

18

 

agreement
applicable to an Existing Letter of Credit) (i) the rules of the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance) shall apply to each
standby Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for
Documentary Credits, as most recently published by the International Chamber of
Commerce (the “ICC”) at the time of issuance (including the ICC decision published
by the Commission on Banking Technique and Practice on April 6, 1998 regarding the European
single currency (euro)) shall apply to each commercial Letter of Credit.

     (h) Letter of Credit Fees. The Borrower shall pay to the Lender a Letter
of Credit fee for each Letter of Credit equal to the Applicable Rate times the daily
maximum amount available to be drawn under such Letter of Credit (whether or not such
maximum amount is then in effect under such Letter of Credit). Such letter of credit fees
shall be computed on a quarterly basis in arrears. Such letter of credit fees shall be due
and payable on the first Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the issuance of such Letter of
Credit, on the Letter of Credit Expiration Date and thereafter on demand. If there is any
change in the Applicable Rate during any quarter, the daily maximum amount of each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.

     (i) Documentary and Processing Charges Payable to Lender. The Borrower
shall pay to the Lender the customary issuance, presentation, amendment and other processing
fees, and other standard costs and charges, of the Lender relating to letters of credit as
from time to time in effect. Such customary fees and standard costs and charges are due and
payable on demand and are nonrefundable.

     (j) Conflict with Letter of Credit Application. In the event of any
conflict between the terms hereof and the terms of any Letter of Credit Application, the
terms hereof shall control.

     2.02 Termination or Reduction of Commitment.

     The Borrower may, upon notice to the Lender, terminate the Commitment, or from time to time
permanently reduce the Commitment; provided that (i) any such notice shall be received by
the Lender not later than 1:00 p.m., five Business Days prior to the date of termination or
reduction, (ii) any such partial reduction shall be in an aggregate amount of $250,000 or any whole
multiple of $50,000 in excess thereof, and (iii) the Borrower shall not terminate or reduce the
Commitment if, after giving effect thereto and to any concurrent prepayments hereunder, the total
L/C Obligations would exceed the Commitment.

19

 

     2.03 Repayment of L/C Obligations.

     Each L/C Borrowing is due and payable on demand. Each L/C Borrowing and any other amount
payable by Borrower under any Loan Document that is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, upon demand, by acceleration or otherwise,
shall bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate
to the fullest extent permitted by applicable Laws. Accrued and unpaid interest as set forth above
(including interest on past due interest) shall be due and payable upon demand. Interest hereunder
shall be due and payable in accordance with the terms hereof before and after judgment, and before
and after the commencement of any proceeding under any Debtor Relief Law.

     2.04 Fees.

     (a) Unused Fee. Borrower shall pay to Lender in accordance with its, an
used fee equal to .25% times the actual daily amount by which the Commitment exceeds
the L/C Obligations. The unused fee shall accrue at all times from the Closing Date until
the Maturity Date, including at any time during which one or more of the conditions in
Article IV is not met, and shall be due and payable quarterly in arrears on the last
Business Day of each March, June, September and December, commencing with the first such
date to occur after the Closing Date, and on the Maturity Date. The unused fee shall be
calculated quarterly in arrears.

     (b) Commitment Fee. Upon the issuance of a Letter of Credit, Borrower
shall pay to Lender a commitment fee equal to the Applicable Rate times the Total
Outstandings of such Letter of Credit.

     2.05 Computation of Interest and Fees.

     All computations of fees and interest shall be made on the basis of a 360-day year and
actual days elapsed (which results in more fees or interest, as applicable, being paid than
if computed on the basis of a 365-day year). Interest shall accrue on each L/C Borrowing
for the day on which the L/C Borrowing is made, and shall not accrue on a L/C Borrowing, or
any portion thereof, for the day on which the L/C Borrowing or such portion is paid,
provided that any L/C Borrowing that is repaid on the same day on which it is made
shall, subject to Section 2.03(a), bear interest for one day.”

     2.06 Payments Generally.

     (a) All payments to be made by the Borrower shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise
expressly provided herein, all payments by the Borrower hereunder shall be made to the
Lender at the applicable Lending Office in Dollars and in immediately available funds not
later than 3:00 p.m. on the date specified herein. All payments received by the Lender
after 3:00 p.m. shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue.

20

 

     (b) If any payment to be made by the Borrower shall come due on a day other than a
Business Day, payment shall be made on the next following Business Day, and such extension
of time shall be reflected in computing interest or fees, as the case may be.

     (c) Nothing herein shall be deemed to obligate the Lender to obtain the funds for
any L/C Borrowing in any particular place or manner or to constitute a representation by the
Lender that it has obtained or will obtain the funds for any L/C Borrowing in any particular
place or manner.

21

 

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01 Taxes.

     (a) Any and all payments by the Borrower to or for the account of the Lender under
any Loan Document shall be made free and clear of and without deduction for any and all
present or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto, excluding
taxes imposed on or measured by its overall net income, and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof)
under the Laws of which the Lender is organized or maintains a lending office (all such
non-excluded taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or
similar charges, and liabilities being hereinafter referred to as “Taxes”). If the
Borrower shall be required by any Laws to deduct any Taxes from or in respect of any sum
payable under any Loan Document to the Lender, (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section), the Lender receives an amount equal to the sum
it would have received had no such deductions been made, (ii) the Borrower shall make such
deductions, (iii) the Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable Laws, and (iv) within 30 days
after the date of such payment, the Borrower shall furnish to the Lender the original or a
certified copy of a receipt evidencing payment thereof.

     (b) In addition, the Borrower agrees to pay any and all present or future stamp,
court or documentary taxes and any other excise or property taxes or charges or similar
levies which arise from any payment made under any Loan Document or from the execution,
delivery, performance, enforcement or registration of, or otherwise with respect to, any
Loan Document (hereinafter referred to as “Other Taxes”).

     (c) If the Borrower shall be required to deduct or pay any Taxes or Other Taxes
from or in respect of any sum payable under any Loan Document to the Lender, the Borrower
shall also pay to the Lender, at the time interest is paid, such additional amount that the
Lender reasonably specifies is necessary to preserve the after-tax yield (after factoring in
all taxes, including taxes imposed on or measured by net income) that the Lender would have
received if such Taxes or Other Taxes had not been imposed.

     (d) The Borrower agrees to indemnify the Lender for (i) the full amount of Taxes
and Other Taxes (including any Taxes or Other Taxes imposed or asserted by any jurisdiction
on amounts payable under this Section) paid by the Lender, (ii) amounts payable under
Section 3.01(c) and (iii) any liability (including additions to tax, penalties,
interest and expenses) arising therefrom or with respect thereto, in each case whether or
not such Taxes or Other Taxes were correctly or legally imposed or asserted by the

22

 

relevant
Governmental Authority, other than Taxes or liability resulting from the
Lender’s gross negligence or willful misconduct. Payment under this subsection (d)
shall be made within 30 days after the date the Lender makes a
demand therefor.

     3.02 Increased Cost and Reduced Return; Capital Adequacy.

     (a) If the Lender determines that as a result of the introduction of or any change
in or in the interpretation of any Law, or the Lender’s compliance therewith, there shall be
any increase in the cost to the Lender of agreeing to make or making, funding or issuing
Letters of Credit, or a reduction in the amount received or receivable by the Lender in
connection with any of the foregoing (excluding for purposes of this subsection (a) any such
increased costs or reduction in amount resulting from (i) Taxes or Other Taxes (as to which
Section 3.01 shall govern), (ii) changes in the basis of taxation of overall net
income or overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which the Lender is organized or
has its Lending Office, and (iii) any other condition, cost or expense affecting this
Agreement or any Letter of Credit or participation therein, then from time to time upon
demand of the Lender, the Borrower shall pay to the Lender such additional amounts as will
compensate the Lender for such increased cost or reduction.

     (b) If the Lender determines that the introduction of any Law regarding capital
adequacy or any change therein or in the interpretation thereof, or compliance by the Lender
(or its Lending Office) therewith, has the effect of reducing the rate of return on the
capital of the Lender or any corporation controlling the Lender as a consequence of the
Lender’s obligations hereunder (taking into consideration its policies with respect to
capital adequacy and the Lender’s desired return on capital), then from time to time upon
demand of the Lender, the Borrower shall pay to the Lender such additional amounts as will
compensate the Lender for such reduction.

     3.03 Requests for Compensation.

     A certificate of the Lender claiming compensation under this Article III and setting
forth in reasonable detail the additional amount or amounts to be paid to it hereunder shall be
conclusive in the absence of demonstrable error. In determining such amount, the Lender may use
any reasonable averaging and attribution methods. Any claim for compensation under this Article
III shall be made by the Lender within a reasonable time after it becomes aware of the
circumstances giving rise to such claim.

     3.04 Survival.

     All of the Borrower’s obligations under this Article III shall survive termination of
the Commitment and repayment of all other Obligations hereunder.

23

 

ARTICLE IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     4.01 Conditions of Initial L/C Credit Extension.

     The obligation of the Lender to make its initial L/C Credit Extension hereunder is subject to
satisfaction of the following conditions precedent:

     (a) The Lender’s receipt of the following, each of which shall be originals or
facsimiles (followed promptly by originals) unless otherwise specified, each properly
executed by a Responsible Officer of the Borrower, each dated the Closing Date (or, in the
case of certificates of governmental officials, a recent date before the Closing Date) and
each in form and substance reasonably satisfactory to the Lender and its legal counsel:

     (i) executed counterparts of this Agreement, sufficient in number for
distribution to the Lender and the Borrower;

     (ii) such certificates of resolutions or other action, incumbency
certificates and/or other certificates of Responsible Officers of the Borrower as the
Lender may reasonably require evidencing the identity, authority and capacity of each
Responsible Officer thereof authorized to act as a Responsible Officer in connection
with this Agreement and the other Loan Documents to which the Borrower is a party;

     (iii) such documents and certifications as the Lender may reasonably require
to evidence that the Borrower is duly organized or formed, and that the Borrower is
validly existing, in good standing and qualified to engage in business in each
jurisdiction where its ownership, lease or operation of properties or the conduct of
its business requires such qualification, except to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect;

     (iv) a favorable opinion of Goodwin Procter LLP, counsel to the Borrower,
addressed to the Lender, as to such matters concerning the Borrower and the Loan
Documents as the Lender may reasonably request; 

     (v) a certificate of a Responsible Officer of the Borrower either (A)
attaching copies of all consents, licenses and approvals required in connection with
the execution, delivery and performance by the Borrower and the validity against the
Borrower of the Loan Documents to which it is a party, and such consents, licenses and
approvals shall be in full force and effect, or (B) stating that no such consents,
licenses or approvals are so required;

     (vi) a certificate signed by a Responsible Officer of the Borrower certifying
(A) that the conditions specified in Sections 4.02(a) and (b) have
been

24

 

satisfied, and (B) that there has been no event or circumstance since the date of
the
Audited Financial Statements that has had or could be reasonably expected to
have, either individually or in the aggregate, a Material Adverse Effect;;

     (vii) evidence that all insurance required to be maintained pursuant to the
Loan Documents has been obtained and is in effect;

     (viii) such other assurances, certificates, documents, consents or opinions
as the Lender reasonably may require.

     (b) Any fees required to be paid on or before the Closing Date shall have been
paid.

     (c) The Borrower shall have paid all Attorney Costs of the Lender to the extent
invoiced prior to the Closing Date, plus such additional amounts of Attorney Costs as shall
constitute its reasonable estimate of Attorney Costs incurred or to be incurred by it
through the closing proceedings (provided that such estimate shall not thereafter preclude a
final settling of accounts between the Borrower and the Lender).

     4.02 Conditions to all L/C Credit Extensions.

     The obligation of the Lender to honor any request for a L/C Credit Extension is subject to the
following conditions precedent:

     (a) The representations and warranties of the Borrower contained in Article
V or any other Loan Document, or which are contained in any document furnished at any
time under or in connection herewith or therewith, shall be true and correct in all material
respects on and as of the date of such L/C Credit Extension, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they
shall be true and correct in all material respects as of such earlier date, and except that
for purposes of this Section 4.02, the representations and warranties contained in
subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01.

     (b) No Default shall exist, or would result from such proposed L/C Credit Extension
or from the application of the proceeds thereof.

     (c) The Lender shall have received a Request for L/C Credit Extension in accordance
with the requirements hereof.

     Each Request for L/C Credit Extension submitted by the Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 4.02(a) and
(b) have been satisfied on and as of the date of the applicable L/C Credit Extension.

25

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Lender that:

     5.01 Existence, Qualification and Power; Compliance with Laws.

     Borrower (a) is a corporation duly organized or formed, validly existing and in good standing
under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite
power and authority and all requisite governmental licenses, authorizations, consents and approvals
to (i) own its assets and carry on its business and (ii) execute, deliver and perform its
obligations under the Loan Documents to which it is a party, (c) is duly qualified and is licensed
and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or license, and (d) is in
compliance with all Laws; except in each case referred to in clause (b)(i), (c) or (d), to the
extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

     5.02 Authorization; No Contravention.

     The execution, delivery and performance by the Borrower of each Loan Document to which such
Person is party, have been duly authorized by all necessary corporate or other organizational
action, and do not and will not (a) contravene the terms of any of such Person’s Organization
Documents; (b) conflict with or result in any breach or contravention of, or the creation of any
Lien under, (i) any Contractual Obligation to which such Person is a party or (ii) any order,
injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person
or its property is subject; or (c) violate any Law; except in each case referred to in clause
(b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect.

     5.03 Governmental Authorization; Other Consents.

     No approval, consent, exemption, authorization, or other action by, or notice to, or filing
with, any Governmental Authority or any other Person is necessary or required in connection with
the execution, delivery or performance by, or enforcement against, the Borrower of this Agreement
or any other Loan Document.

     5.04 Binding Effect.

     This Agreement has been, and each other Loan Document, when delivered hereunder, will have
been, duly executed and delivered by the Borrower that is party thereto. This Agreement
constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and
binding obligation of the Borrower, enforceable against the Borrower that is party thereto in
accordance with its terms.

26

 

     5.05 Financial Statements; No Material Adverse Effect.

     (a) The Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein; (ii) fairly present the financial condition of the Borrower and its
Subsidiaries as of the date thereof and their results of operations for the period covered
thereby in accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein; and (iii) show all material
indebtedness and other liabilities, direct or contingent, of the Borrower and its
Subsidiaries as of the date thereof, including liabilities for taxes, material commitments
and Indebtedness.

     (b) The unaudited consolidated financial statements of the Borrower and its
Subsidiaries dated September 30, 2010, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for the fiscal quarter ended on that date
(i) were prepared in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein, and (ii) fairly present in all
material respects the financial condition of the Borrower and its Subsidiaries as of the
date thereof and their results of operations for the period covered thereby, subject, in the
case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit
adjustments. Schedule 5.05 sets forth all material indebtedness and other
liabilities, direct or contingent, of the Borrower and its consolidated Subsidiaries as of
the date of such financial statements as required by SEC guidelines.

     (c) Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could reasonably be
expected to have a Material Adverse Effect.

     5.06 Litigation.

     Except as specifically disclosed in Schedule 5.06, there are no actions, suits, proceedings,
claims or disputes pending or, to the knowledge of the Borrower, threatened in writing, at law, in
equity, in arbitration or before any Governmental Authority, by or against the Borrower or any of
its Subsidiaries or against any of their properties or revenues that (a) purport to prevent, hinder
or dalay this Agreement or any other Loan Document, or any of the transactions contemplated hereby,
or (b) either individually or in the aggregate, if determined adversely, could reasonably be
expected to have a Material Adverse Effect.

     5.07 No Default.

     Neither the Borrower nor any Subsidiary is in default under or with respect to any Contractual
Obligation that could, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. No Default has occurred and is continuing or would result from the
consummation of the transactions contemplated by this Agreement or any other Loan Document.

27

 

     5.08 Ownership of Property; Liens.

     Each of the Borrower and each Subsidiary has good record and marketable title in fee simple
to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of
its business, except for such defects in title as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. The property of the Borrower and its
Subsidiaries is subject to no Liens, other than Liens permitted by Section 7.01.

     5.09 Environmental Compliance.

     The Borrower and its Subsidiaries conduct in the ordinary course of business a review of the
effect of existing Environmental Laws and claims alleging potential liability or responsibility for
violation of any Environmental Law on their respective businesses, operations and properties, and
as a result thereof the Borrower has reasonably concluded that, except as specifically disclosed in
Schedule 5.09, such Environmental Laws and claims could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     5.10 Insurance.

     The properties of the Borrower and its Subsidiaries are insured with financially sound and
reputable insurance companies not Affiliates of the Borrower, in such amounts (after giving effect
to any self-insurance compatible with the following standards), with such deductibles and covering
such risks as are customarily carried by companies engaged in similar businesses and owning similar
properties in localities where the Borrower or the applicable Subsidiary operates.

     5.11 Taxes.

     The Borrower and its Subsidiaries have filed all Federal, state and other material tax returns
and reports required to be filed, and have paid all Federal, state and other material taxes,
assessments, fees and other governmental charges levied or imposed upon them or their properties,
income or assets otherwise due and payable, except those which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves have been provided in
accordance with GAAP. There is no proposed tax assessment against the Borrower or any Subsidiary
that would, if made, have a Material Adverse Effect.

     5.12 ERISA Compliance.

     (a) Each Plan is in compliance in all material respects with the applicable
provisions of ERISA, the Code and other Federal or state Laws. Each Plan that is intended
to qualify under Section 401(a) of the Code has received a favorable determination letter
from the IRS or an application for such a letter is currently being processed by the IRS
with respect thereto and, to the knowledge of the Borrower, nothing has occurred which would
prevent, or cause the loss of, such qualification. The Borrower and each ERISA Affiliate
have made all required contributions to each Plan subject to Section 412 of the Code, and no
application for a funding waiver or an extension of any amortization period pursuant to
Section 412 of the Code has been made with respect to any Plan.

28

 

     (b) There are no pending or, to the best knowledge of the Borrower, threatened (in
writing) claims, actions or lawsuits, or action by any Governmental Authority, with respect
to any Plan that could be reasonably be expected to have a Material Adverse Effect. There
has been no prohibited transaction or violation of the fiduciary responsibility rules with
respect to any Plan that has resulted or could reasonably be expected to result in a
Material Adverse Effect.

     (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no
Pension Plan has any Unfunded Pension Liability; (iii) neither the Borrower nor any ERISA
Affiliate has incurred, or reasonably expects to incur, any liability under Title IV
of ERISA with respect to any Pension Plan (other than premiums due and not delinquent
under Section 4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in such liability) under
Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the
Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to
Sections 4069 or 4212(c) of ERISA.

     5.13 Subsidiaries.

     The Borrower has no Subsidiaries other than those specifically disclosed in Part (a) of
Schedule 5.13 and has no equity investments in any other corporation or entity other than
those specifically disclosed in Part(b) of Schedule 5.13.

     5.14 Margin Regulations; Investment Company Act.

     (a) The Borrower is not engaged and will not engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock (within the
meaning of Regulation U issued by the FRB), or extending credit for the purpose of
purchasing or carrying margin stock.

     (b) None of the Borrower, any Person Controlling the Borrower, or any Subsidiary is
or is required to be registered as an “investment company” under the Investment Company Act
of 1940.

     5.15 Disclosure.

     The Borrower has disclosed to the Lender all agreements and instruments to which it or any of
its Subsidiaries is subject that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect. No report, financial statement, certificate or other
information furnished (in writing) by or on behalf of the Borrower to the Lender in connection with
the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder
(as modified or supplemented by or when taken together with other information so furnished)
contains any material misstatement of fact or omits to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected financial

29

 

information, the Borrower
represents only that such information was prepared in good faith based upon assumptions believed to
be reasonable at the time.

     5.16 Compliance with Laws.

     Each of the Borrower and each Subsidiary is in compliance in all material respects with the
requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its
properties, except in such instances in which (a) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings diligently
conducted or (b) the failure to comply therewith, either individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.

     5.17 Intellectual Property; Licenses, Etc.

     The Borrower and its Subsidiaries own, or possess the right to use, all of the trademarks,
service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other
intellectual property rights (collectively, “IP Rights”) that are reasonably necessary for the
operation of their respective businesses, without conflict with the rights of any other Person. To
the knowledge of the Borrower, no slogan or other advertising device, product, process, method,
substance, part or other material now employed, or now contemplated to be employed, by the Borrower
or any Subsidiary infringes upon any rights held by any other Person. Except as specifically
disclosed in Schedule 5.18, no claim or litigation regarding any of the foregoing is
pending or, to the knowledge of the Borrower, threatened in writing, which, either individually or
in the aggregate, could reasonably be expected to have a Material Adverse Effect.

ARTICLE VI.

AFFIRMATIVE COVENANTS

     So long as the Commitment shall be in effect, any L/C Obligation or other Obligation hereunder
(other than unasserted contingent indemnification obligations) shall remain unpaid or unsatisfied,
or any Letter of Credit shall remain outstanding, the Borrower shall, and shall (except in the case
of the covenants set forth in Sections 6.01, 6.02, 6.03 and 6.11)
cause each Subsidiary to:

     6.01 Financial Statements.

     Deliver to the Lender, in form and detail reasonably satisfactory to the Lender:

     (a) as soon as available, but in any event within 120 days after the end of each
fiscal year of the Borrower, a consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such fiscal year, and the related consolidated statements of
income or operations, shareholders’ equity and cash flows for such fiscal year, setting
forth in each case in comparative form the figures for the previous fiscal year, all in
reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report
and opinion of PriceWaterhouseCoopers or another independent certified public accountant of
nationally recognized standing reasonably acceptable to the Lender, which

30

 

report and opinion
shall be prepared in accordance with generally accepted auditing standards and shall not be
subject to any “going concern” or like qualification or exception or any qualification or
exception as to the scope of such audit;

     (b) as soon as available, but in any event within 45 days after the end of each of
the first three fiscal quarters of each fiscal year of the Borrower, a consolidated balance
sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, and the
related consolidated statements of income or operations, shareholders’ equity and cash flows
for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended,
setting forth in each case in comparative form the figures for the corresponding fiscal
quarter of the previous fiscal year and the corresponding portion of the previous fiscal
year, all in reasonable detail and certified by a Responsible Officer of the Borrower as
fairly presenting in all material respects the financial condition, results of operations,
shareholders’ equity and cash flows of the Borrower and its Subsidiaries in accordance
with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes;
and

     (c) as soon as available, but in any event within 90 days after the end of such
fiscal year of the Borrower, a budget for the then current year, in form and substance
reasonably satisfactory to the Lender.

As to any information contained in materials furnished pursuant to Section 6.02, the
Borrower shall not be separately required to furnish such information under clause (a) or (b)
above, but the foregoing shall not be in derogation of the obligation of the Borrower to furnish
the information and materials described in subsections (a) and (b) above at the times specified
therein.

     6.02 Certificates; Other Information.

     Deliver to the Lender, in form and detail reasonably satisfactory to the Lender:

     (a) [Reserved];

     (b) concurrently with the delivery of the financial statements referred to in
Sections 6.01(a) and (b), a duly completed Compliance Certificate signed by
a Responsible Officer of the Borrower;

     (c) promptly after any request by the Lender, copies of any detailed audit reports,
management letters or recommendations submitted to the board of directors (or the audit
committee of the board of directors) of the Borrower by independent accountants in
connection with the accounts or books of the Borrower or any Subsidiary, or any audit of any
of them;

     (d) promptly after the same are available, copies of each annual report, proxy or
financial statement or other report or communication sent to the stockholders of the
Borrower, and copies of all annual, regular, periodic and special reports and registration
statements which the Borrower may file or be required to file with the SEC under Section

31

 

13
or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered
to the Lender pursuant hereto; and

     (e) promptly, such additional information regarding the business, financial or
corporate affairs of the Borrower or any Subsidiary, or compliance with the terms of the
Loan Documents, as the Lender may from time to time reasonably request.

     Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(d) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date on which the Borrower posts such documents, or provides a link thereto on the
Borrower’s website on the Internet at the website address listed on Schedule 9.02;
provided that: (i) if the Lender so requests, the Borrower shall deliver paper copies of
such documents to the Lender until a written request to cease delivering paper copies is given by
the Lender and (ii) the Borrower shall notify (which may be by facsimile or electronic mail) the
Lender of the posting of
any such documents. Notwithstanding anything contained herein, in every instance the Borrower
shall be required to provide paper copies of the Compliance Certificates required by Section
6.02(b) to the Lender.

     6.03 Notices.

     Promptly notify the Lender:

     (a) of the occurrence of any Event of Default;

     (b) of any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (i) breach or non-performance of, or any default under, a
Contractual Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation,
investigation, proceeding or suspension between the Borrower or any Subsidiary and any
Governmental Authority; or (iii) the commencement of, or any material development in, any
litigation or proceeding affecting the Borrower or any Subsidiary, including pursuant to any
applicable Environmental Laws;

     (c) of the occurrence of any ERISA Event; and

     (d) of any material change in accounting policies or financial reporting practices
by the Borrower or any Subsidiary;

     Each notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence referred to
therein and stating what action the Borrower has taken and proposes to take with respect
thereto. Each notice pursuant to Section 6.03(a) shall describe with particularity
any and all provisions of this Agreement and any other Loan Document that have been
breached.

     6.04 Payment of Obligations.

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     Pay and discharge as the same shall become due and payable, all its obligations and
liabilities, including (a) all tax liabilities, assessments and governmental charges or levies upon
it or its properties or assets; (b) all lawful claims which, if unpaid, would by law become a Lien
upon its property; and (c) all Indebtedness, as and when due and payable, but subject to any
subordination provisions contained in any instrument or agreement evidencing such Indebtedness;
except in each case referred to in clause (a), (b) or (c), unless the same are being contested in
good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with
GAAP are being maintained by the Borrower or such Subsidiary.

     6.05 Preservation of Existence, Etc.

     Preserve, renew and maintain in full force and effect its legal existence and good standing
under the Laws of the jurisdiction of its organization except in a transaction permitted by
Section 7.04 or 7.05; (b) take all reasonable action to maintain all rights,
privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its
business, except to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (c)
preserve or renew all of its registered patents, trademarks, trade names and service marks,
the non-preservation of which could reasonably be expected to have a Material Adverse Effect.

     6.06 Maintenance of Properties.

     Maintain, preserve and protect all of its material properties and equipment necessary in the
operation of its business in good working order and condition, ordinary wear and tear excepted; (b)
make all necessary repairs thereto and renewals and replacements thereof except where the failure
to do so could not reasonably be expected to have a Material Adverse Effect; and (c) use the
standard of care typical in the industry in the operation and maintenance of its facilities.

     6.07 Maintenance of Insurance.

     Maintain with financially sound and reputable insurance companies not Affiliates of the
Borrower, insurance with respect to its properties and business against loss or damage of the kinds
customarily insured against by Persons engaged in the same or similar business, of such types and
in such amounts as are customarily carried under similar circumstances by such other Persons and
providing for not less than 30 days’ prior notice to the Lender of termination, lapse or
cancellation of such insurance.

     6.08 Compliance with Laws.

     Comply in all material respects with the requirements of all Laws and all orders, writs,
injunctions and decrees applicable to it or to its business or property, except in such instances
in which (a) such requirement of Law or order, write, injunction or decree is being contested in
good faith by appropriate proceedings diligently conducted; or (b) the failure to comply therewith
could not reasonably be expected to have a Material Adverse Effect.

     6.09 Books and Records.

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     Maintain proper books of record and account, in which full, true and correct entries in
conformity with GAAP consistently applied shall be made of all financial transactions and matters
involving the assets and business of the Borrower or such Subsidiary, as the case may be; and (b)
maintain such books of record and account in material conformity with all applicable requirements
of any Governmental Authority having regulatory jurisdiction over the Borrower or such Subsidiary,
as the case may be.

     6.10 Inspection Rights.

     Permit representatives and independent contractors of the Lender to visit and inspect any of
its properties, to examine its corporate, financial and operating records, and make copies thereof
or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors,
officers, and independent public accountants, all at the expense of the Borrower and at such
reasonable times during normal business hours and as often as may be reasonably desired, upon
reasonable advance notice to the Borrower; provided, however, that when an Event of
Default exists the Lender (or any of its representatives or independent contractors) may do any of
the
foregoing at the expense of the Borrower at any time during normal business hours and without
advance notice.

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     6.11 Use of Proceeds.

     Use the proceeds of the Credit Extensions for general corporate purposes not in contravention
of any Law or of any Loan Document.

ARTICLE VII.

NEGATIVE COVENANTS

     So long as the Commitment shall be in effect, any L/C Obligation or other Obligation hereunder
(other than unasserted contingent indemnification obligations) shall remain unpaid or unsatisfied,
or any Letter of Credit shall remain outstanding, the Borrower shall not, nor shall it permit any
Subsidiary to, directly or indirectly:

     7.01 Liens.

     Create, incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following:

     (a) Liens pursuant to any Loan Document;

     (b) Liens existing on the date hereof and listed on Schedule 7.01 and any
renewals or extensions thereof, provided that the property covered thereby is not
increased and any renewal or extension of the obligations secured or benefited thereby is
permitted by Section 7.03(b);

     (c) Liens for taxes not yet due or which are being contested in good faith and by
appropriate proceedings diligently conducted, if adequate reserves with respect thereto are
maintained on the books of the applicable Person in accordance with GAAP;

     (d) 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 30 days or which are being contested in good faith and by appropriate proceedings
diligently conducted, if adequate reserves with respect thereto are maintained on the books
of the applicable Person;

     (e) pledges or deposits in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other social security legislation, other
than any Lien imposed by ERISA;

     (f) deposits to secure the performance of bids, trade contracts and leases (other
than Indebtedness), statutory obligations, surety bonds (other than bonds related to
judgments or litigation), performance bonds and other obligations of a like nature incurred
in the ordinary course of business;

     (g) easements, rights-of-way, restrictions and other similar encumbrances affecting
real property which, in the aggregate, are not substantial in amount, and which

35

 

do not in any case materially detract from the value of the property subject thereto or
materially interfere with the ordinary conduct of the business of the applicable Person;

     (h) Liens securing judgments for the payment of money not constituting an Event of
Default under Section 8.01(h) or securing appeal or other surety bonds related to
such judgments;

     (i) Liens securing Indebtedness permitted under Section 7.03(e);
provided that (i) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness and (ii) the Indebtedness secured thereby does not
exceed the cost or fair market value, whichever is lower, of the property being acquired on
the date of acquisition.

     7.02 Investments.

     Make any Investments, except:

     (a) Investments held by the Borrower or such Subsidiary in the form of cash
equivalents, short-term marketable securities or intermediate term government bonds;

     (b) advances to officers, directors and employees of the Borrower and Subsidiaries
in an aggregate amount not to exceed $1,000,000.00 at any time outstanding, for travel,
entertainment, relocation and analogous ordinary business purposes;

     (c) Investments of the Borrower in any wholly-owned Subsidiary and Investments of
any wholly-owned Subsidiary in the Borrower or in another wholly-owned Subsidiary;

     (d) Investments consisting of extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the ordinary course
of business, and Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in order to prevent
or limit loss;

     (e) Guarantees permitted by Section 7.03; and

     (f) Permitted Acquisitions.

     7.03 Indebtedness.

     Create, incur, assume or suffer to exist any Indebtedness, except:

     (a) Indebtedness under the Loan Documents;

     (b) Indebtedness outstanding on the date hereof and listed on Schedule 7.03
and any refinancings, refundings, renewals or extensions thereof; provided that the
amount of such Indebtedness is not increased at the time of such refinancing, refunding,

36

 

renewal or extension except by an amount equal to a reasonable premium or other
reasonable amount paid, and fees and expenses reasonably incurred, in connection with such
refinancing and by an amount equal to any existing commitments unutilized thereunder;

     (c) Guarantees of the Borrower in respect of Indebtedness otherwise permitted hereunder
of the Borrower;

     (d) obligations (contingent or otherwise) of the Borrower or any Subsidiary existing or
arising under any Swap Contract, provided that (i) such obligations are (or were)
entered into by such Person in the ordinary course of business for the purpose of directly
mitigating risks associated with liabilities, commitments, investments, assets, or property
held or reasonably anticipated by such Person, or changes in the value of securities issued
by such Person, and not for purposes of speculation or taking a “market view;” and (ii) such
Swap Contract does not contain any provision exonerating the non-defaulting party from its
obligation to make payments on outstanding transactions to the defaulting party;

     (e) Indebtedness in respect of capital leases, Synthetic Lease Obligations and purchase
money obligations for fixed or capital assets within the limitations set forth in
Section 7.01(i); provided, however, that the aggregate amount of all
such Indebtedness at any one time outstanding shall not exceed $17,000,000.00; and

     (f) unsecured Indebtedness in an aggregate principal amount not to exceed $500,000.00
at any time outstanding exclusive of unsecured Indebtedness permitted to be assumed in
connection with Permitted Acquisitions.

     7.04 Fundamental Changes.

     Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in
one transaction or in a series of transactions) all or substantially all of its assets (whether now
owned or hereafter acquired) to or in favor of any Person, except that, so long as no Default
exists or would result therefrom:

     (a) any Subsidiary may merge with (i) the Borrower, provided that the Borrower
shall be the continuing or surviving Person, or (ii) any one or more other Subsidiaries,
provided that when any wholly-owned Subsidiary is merging with another Subsidiary,
the wholly-owned Subsidiary shall be the continuing or surviving Person; and

     (b) any Subsidiary may Dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise) to the Borrower or to another Subsidiary;
provided that if the transferor in such a transaction is a wholly-owned Subsidiary,
then the transferee must either be the Borrower or a wholly-owned Subsidiary.

     7.05 Dispositions.

     Make any Disposition or enter into any agreement to make any Disposition, except:

37

 

     (a) Dispositions of obsolete, worn out or surplus property, whether now owned or
hereafter acquired, in the ordinary course of business;

     (b) Dispositions of inventory in the ordinary course of business;

     (c) Dispositions of equipment or real property to the extent that (i) such property is
exchanged for credit against the purchase price of similar replacement property or (ii) the
proceeds of such Disposition are reasonably promptly applied to the purchase price of such
replacement property;

     (d) Dispositions of property by any Subsidiary to the Borrower or to a wholly-owned
Subsidiary; provided that if the transferor of such property is a Guarantor, the
transferee thereof must either be the Borrower or a Guarantor;

     (e) Dispositions permitted by Section 7.04;

     (f) Licenses of IP Rights of similar assets of the Borrower in the ordinary course of
its business.

     provided, however, that any Disposition pursuant to clauses (a) through (e)
shall be for fair market value.

     7.06 Restricted Payments.

     Declare or make, directly or indirectly, any Restricted Payment, or incur any obligation
(contingent or otherwise) to do so, except that:

     (a) each Subsidiary may make Restricted Payments to the Borrower and to wholly-owned
Subsidiaries (and, in the case of a Restricted Payment by a non-wholly-owned Subsidiary, to
the Borrower and any Subsidiary and to each other owner of capital stock or other equity
interests of such Subsidiary on a pro rata basis based on their relative ownership
interests);

     (b) the Borrower and each Subsidiary may declare and make dividend payments or other
distributions payable solely in the common stock or other common equity interests of such
Person; and

     (c) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire shares
of its common stock or other common equity interests or warrants or options to acquire any
such shares with the proceeds received from the substantially concurrent issue of new shares
of its common stock or other common equity.

     7.07 Change in Nature of Business.

     Engage in any material line of business substantially different from those lines of business
conducted by the Borrower and its Subsidiaries on the date hereof or any business substantially
related or incidental thereto.

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     7.08 Transactions with Affiliates.

     Enter into any transaction of any kind with any Affiliate of the Borrower, whether or not in
the ordinary course of business, other than on fair and reasonable terms substantially as favorable
to the Borrower or such Subsidiary as would be obtainable by the Borrower or such Subsidiary at the
time in a comparable arm’s length transaction with a Person other than an Affiliate.

     7.09 Burdensome Agreements.

     Enter into any Contractual Obligation (other than this Agreement or any other Loan Document)
that (a) limits the ability (i) of any Subsidiary to make Restricted Payments to the Borrower or
any Guarantor or to otherwise transfer property to the Borrower or any Guarantor, (ii) of any
Subsidiary to Guarantee the Indebtedness of the Borrower or (iii) of the Borrower or any Subsidiary
to create, incur, assume or suffer to exist Liens on property of such Person; provided,
however, that this clause (iii) shall not prohibit any negative pledge incurred or provided
in favor of any holder of Indebtedness permitted under Section 7.03(e) solely to the extent
any such negative pledge relates to the property financed by or the subject of such Indebtedness;
or (b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to
secure another obligation of such Person.

     7.10 Use of Proceeds.

     Use the proceeds of any Credit Extension, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of
Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying
margin stock or to refund indebtedness originally incurred for such purpose.

     7.11 Financial Covenants.

     (a) Consolidated Tangible Net Worth. Permit Consolidated Tangible Net Worth at
any time to be less than Ninety-Five Million ($95,000,000.00) Dollars.

     (b) Adjusted EBITDA. Permit Adjusted EBITDA to be less than Eight Million
($8,000,000.00) Dollars to be measured quarterly, on a trailing four quarters basis.

     (c) Interest Coverage. Permit the Interest Coverage ratio to be less than
2.5:1.0 measured quarterly, on a trailing four quarters basis.”

     7.12 Accounts. Borrower shall maintain the Lender as the Borrower’s primary depositing
account.

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ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

     8.01 Events of Default.

     Any of the following shall constitute an Event of Default:

     (a) Non-Payment. The Borrower fails to pay (i) within three days after the
same becomes due as required to be paid herein, any drawing under as Letter of Credit, any
amount of principal of any L/C Obligation, or (ii) within three days after the same becomes
due, any interest on any drawing or on any L/C Obligation, or any fee due hereunder, or
(iii) within five days after the same becomes due, any other amount payable hereunder or
under any other Loan Document; or

     (b) Specific Covenants. The Borrower fails to perform or observe any term,
covenant or agreement contained in any of Section 6.01, 6.02,
6.03, 6.05, 6.10 or 6.11 or Article VII; or

     (c) Other Defaults. The Borrower fails to perform or observe any other
covenant or agreement (not specified in subsection (a) or (b) above) contained in any Loan
Document on its part to be performed or observed and such failure continues for 30 days; or

     (d) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of the Borrower
herein, in any other Loan Document, or in any document delivered in connection herewith or
therewith shall be incorrect or misleading in any material respect when made or deemed made;
or

     (e) Cross-Default. (i) The Borrower or any Subsidiary (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment, acceleration, demand,
or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder
and Indebtedness under Swap Contracts) having an aggregate principal amount (including
undrawn committed or available amounts and including amounts owing to all creditors under
any combined or syndicated credit arrangement) of more than the Threshold Amount, or (B)
fails to observe or perform any other agreement or condition relating to any such
Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event occurs, the effect of which default or other event
is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of such Guarantee (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 be demanded or to become due or to be repurchased, prepaid, defeased or
redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem
such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become
payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any
Swap Contract an Early

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Termination Date (as defined in such Swap Contract) resulting from (A) any event of
default under such Swap Contract as to which the Borrower or any Subsidiary is the
Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so
defined) under such Swap Contract as to which the Borrower or any Subsidiary is an Affected
Party (as so defined) and, in either event, the Swap Termination Value owed by the Borrower
or such Subsidiary as a result thereof is greater than the Threshold Amount; or

     (f) Insolvency Proceedings, Etc. The Borrower or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor Relief Law, or
makes an assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or
similar officer for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed
without the application or consent of such Person and the appointment continues undischarged
or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to
any such Person or to all or any material part of its property is instituted without the
consent of such Person and continues undismissed or unstayed for 60 calendar days, or an
order for relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) The Borrower or any Subsidiary
becomes unable or admits in writing its inability or fails generally to pay its debts as
they become due, or (ii) any writ or warrant of attachment or execution or similar process
is issued or levied against all or any material part of the property of any such Person and
is not released, vacated or fully bonded within 30 days after its issue or levy; or

     (h) Judgments. There is entered against the Borrower or any Subsidiary (i) a
final judgment or order for the payment of money in an aggregate amount exceeding the
Threshold Amount (to the extent not covered by independent third-party insurance as to which
the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments
that have, or could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by
any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days
during which a stay of enforcement of such judgment, by reason of a pending appeal or
otherwise, is not in effect; or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result in liability
of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC
in an aggregate amount in excess of the Threshold Amount, or (ii) the Borrower or any ERISA
Affiliate fails to pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201 of ERISA
under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or

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     (j) Invalidity of Loan Documents. Any Loan Document, at any time after its
execution and delivery and for any reason other than as expressly permitted hereunder or
satisfaction in full of all the Obligations (other than unasserted contingent
indemnification obligations), ceases to be in full force and effect; or the Borrower in
writing contests in any manner the validity or enforceability of any Loan Document; or the
Borrower denies that it has any or further liability or obligation under any Loan Document,
or purports to revoke, terminate or rescind any Loan Document.

     (k) Existing Credit Agreement. The occurrence of an Event of Default (as
defined therein) or termination of the Existing Credit Agreement.

     8.02 Remedies Upon Event of Default.

     If any Event of Default occurs and is continuing, the Lender may take any or all of the
following actions:

     (a) declare any obligation of the L/C Issuer to make L/C Credit Extensions to be
terminated, whereupon such commitments and obligation shall be terminated;

     (b) declare the unpaid principal amount of all outstanding L/C Borrowings and any
reimbursement obligations arising from drawing under any Letter of Credit, all interest
accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment, demand, protest
or other notice of any kind, all of which are hereby expressly waived by Borrower;

     (c) require that the Borrower Cash Collateralize the aggregate undrawn amount of all
outstanding Letters of Credit; and

     (d) exercise all rights and remedies available to it under the Loan Documents or
applicable law;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to Borrower under the Bankruptcy Code of the United States, any
obligation of the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the
unpaid principal amount of all outstanding L/C Borrowings and any unpaid reimbursement obligations
arising from drawing under any Letter of Credit and all interest and other amounts as aforesaid
shall automatically become due and payable, and the obligation of Borrower to Cash Collateralize
the aggregate undrawn amount of all outstanding Letters of Credit as aforesaid shall automatically
become effective, in each case without further act of Lender.

     8.03 Application of Funds

     After the exercise of remedies provided for in Section 8.02 (or after the L/C
Borrowings and unreimbursed drawings have automatically become immediately due and payable and the
aggregate undrawn amount of all outstanding Letters of Credit has automatically been required to be
Cash Collateralized as set forth in the proviso to Section 8.02), any amounts received on

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account of the Obligations shall be applied by the Lender to the Obligations in such order as it
elects in its sole discretion.

ARTICLE IX.

MISCELLANEOUS

     9.01 Amendments; Etc.

     No amendment or waiver of any provision of this Agreement or any other Loan Document, and no
consent to any departure by the Borrower therefrom, shall be effective unless in writing signed by
the Lender and the Borrower, as the case may be, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

     9.02 Notices and Other Communications; Facsimile Copies.

     (a) General. Unless otherwise expressly provided herein, all notices and other
communications provided for hereunder shall be in writing (including by facsimile
transmission). All such written notices shall be mailed, faxed or delivered to the address,
facsimile number or electronic mail address specified for notices to the applicable party on
Schedule 9.02; or to such other address, facsimile number or electronic mail address
as shall be designated by such party in a notice to the other party. All notices and other
communications expressly permitted hereunder to be given by telephone shall be made to the
telephone number specified for notices to the applicable party on Schedule 9.02, or
to such other telephone number as shall be designated by such party in a notice to the other
party. All such notices and other communications shall be deemed to be given or made upon
the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if
delivered by hand or by courier, when signed for by or on behalf of the relevant party
hereto; (B) if delivered by mail, four Business Days after deposit in the mails, postage
prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by
telephone; and (D) if delivered by electronic mail when delivered; provided,
however, that notices and other communications to the Lender pursuant to Article
II shall not be effective until actually received by the Lender. In no event shall a
voicemail message be effective as a notice, communication or confirmation hereunder.

     (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents may be
transmitted and/or signed by facsimile. The effectiveness of any such documents and
signatures shall, subject to applicable Law, have the same force and effect as
manually-signed originals and shall be binding on the Borrower and the Lender. The Lender
may also require that any such documents and signatures be confirmed by a manually-signed
original thereof; provided, however, that the failure to request or deliver
the same shall not limit the effectiveness of any facsimile document or signature.

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     (c) Reliance by Lender. The Lender shall be entitled to rely and act upon any
notices purportedly given by or on behalf of the Borrower even if (i) such notices were not
made in a manner specified herein, were incomplete or were not preceded or followed by any
other form of notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof. The Borrower shall indemnify the Lender,
its Affiliates, and their respective officers, directors, employees, agents and
attorneys-in-fact from all losses, costs, expenses and liabilities resulting from the
reliance by such Person on each notice purportedly given by or on behalf of the Borrower,
other than any such losses, costs, expenses and liabilities resulting from the Lender’s
gross negligence or willful misconduct. All telephonic notices to and other communications
with the Lender may be recorded by the Lender, and the Borrower hereby consents to such
recording.

     9.03 No Waiver; Cumulative Remedies.

     No failure by the Lender to exercise, and no delay by the Lender in exercising, 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.

     9.04 Attorney Costs, Expenses and Taxes.

     The Borrower agrees (a) to pay or reimburse the Lender for all costs and expenses reasonably
incurred in connection with the development, preparation, negotiation and execution of this
Agreement and the other Loan Documents and any amendment, waiver, consent or other modification of
the provisions hereof and thereof (whether or not the transactions contemplated hereby or thereby
are consummated), and the consummation and administration of the transactions contemplated hereby
and thereby, including all Attorney Costs, and (b) to pay or reimburse the Lender for all costs and
expenses incurred in connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including all such costs and
expenses incurred during any “workout” or restructuring in respect of the Obligations and during
any legal proceeding, including any proceeding under any Debtor Relief Law), including all Attorney
Costs. The foregoing costs and expenses shall include all search, filing, recording, title
insurance and appraisal charges and fees and taxes related thereto, and other out-of-pocket
expenses reasonably incurred by the Lender and the cost of independent public accountants and
other outside experts retained by the Lender. All amounts due under this Section 9.04
shall be payable within thirty days after demand therefor. The agreements in this Section shall
survive the termination of the Commitment and repayment, satisfaction or discharge of all other
Obligations.

     9.05 Indemnification by the Borrower.

     Whether or not the transactions contemplated hereby are consummated, the Borrower shall
indemnify and hold harmless the Lender, its Affiliates, and their respective directors,

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officers, employees, counsel, agents and attorneys-in-fact (collectively the
“Indemnitees”) from and against any and all liabilities, obligations, losses, damages,
penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including
Attorney Costs) of any kind or nature whatsoever which may at any time be imposed on, incurred by
or asserted against any such Indemnitee in any way relating to or arising out of or in connection
with (a) the execution, delivery, enforcement, performance or administration of any Loan Document
or any other agreement, letter or instrument delivered in connection with the transactions
contemplated thereby or the consummation of the transactions contemplated thereby, (b) the
Commitment, any Letter of Credit or the use or proposed use of the proceeds therefrom (including
any refusal by the Lender to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms of such Letter of
Credit), (c) any actual or alleged presence or release of Hazardous Materials on or from any
property currently or formerly owned or operated by the Borrower or, any Subsidiary or any
Environmental Liability related in any way to the Borrower or, any Subsidiary, or (d) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory (including any investigation of, preparation
for, or defense of any pending or threatened claim, investigation, litigation or proceeding) and
regardless of whether any Indemnitee is a party thereto (all the foregoing, collectively, the
“Indemnified Liabilities”) provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such liabilities, obligations, losses, damages,
penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements are
determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee. No Indemnitee shall
have any liability for any indirect or consequential damages relating to this Agreement or any
other Loan Document or arising out of its activities in connection herewith or therewith (whether
before or after the Closing Date). All amounts due under this Section 9.05 shall be
payable within ten Business Days after demand therefor. The agreements in this Section shall
survive the termination of the Commitment and the repayment, satisfaction or discharge of all the
other Obligations.

     9.06 Payments Set Aside.

     To the extent that any payment by or on behalf of the Borrower is made to the Lender, or the
Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or
required (including pursuant to any settlement entered into by the Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any proceeding under any
Debtor Relief Law or otherwise, then, to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such set-off had not occurred.

     9.07 Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby, except that
the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of the Lender and the Lender may

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not assign or otherwise transfer any of its rights or obligations hereunder except (i)
to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section,
(ii) by way of participation in accordance with the provisions of subsection (c) of this
Section, or (iii) by way of pledge or assignment of a security interest subject to the
restrictions of subsection (e) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed
or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the extent
provided in subsection (c) of this Section and, to the extent expressly contemplated hereby,
the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this
Agreement.

     (b) The Lender may at any time assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including all or a portion of
the L/C Obligations at the time owing to it) pursuant to documentation acceptable to the
Lender and the assignee, it being understood and agreed that with respect to any Letters of
Credit outstanding at the time of any such assignment, the Lender may sell to the assignee a
ratable participation in such Letters of Credit. From and after the effective date
specified in such documentation, such Eligible Assignee shall be a party to this Agreement
and, to the extent of the interest assigned by the Lender, have the rights and obligations
of the Lender under this Agreement, and the Lender shall, to the extent of the interest so
assigned, be released from its obligations under this Agreement (and, in the case of an
assignment of all of the Lender’s rights and obligations under this Agreement, shall cease
to be a party hereto but shall continue to be entitled to the benefits of Sections
3.01, 3.02, 9.04 and 9.05 with respect to facts and
circumstances occurring prior to the effective date of such assignment, and shall continue
to have all of the rights provided hereunder to the Lender in its capacity as issuer of any
Letters of Credit outstanding at the time of such assignment). Upon request, the Borrower
(at its expense) shall execute and deliver any documents reasonably necessary or appropriate
to give effect to such assignment and to provide for the administration of this Agreement
after giving effect thereto.

     (c) The Lender may at any time, without the consent of, or notice to, the Borrower,
sell participations to any Person (other than a natural person or the Borrower or any of the
Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion
of the Lender’s rights and/or obligations under this Agreement (including all or a portion
of the outstanding Letters of Credit and/or the reimbursement obligations in respect of
Letters of Credit); provided that (i) the Lender’s obligations under this Agreement
shall remain unchanged, (ii) the Lender shall remain solely responsible to the Borrower for
the performance of such obligations and (iii) the Borrower shall continue to deal solely and
directly with the Lender in connection with the Lender’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which the Lender sells such a
participation shall provide that the Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide that the Lender
will not, without the consent of the Participant, agree to any amendment,

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waiver or other modification that would (i) postpone any date upon which any payment of
money is scheduled to be made to such Participant, or (ii) reduce the principal, interest,
fees or other amounts payable to such Participant. Subject to subsection (d) of this
Section, the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.01 and 3.02 to the same extent as if it were the Lender and had
acquired its interest by assignment pursuant to subsection (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the benefits of
Section 9.09 as though it were the Lender.

     (d) A Participant shall not be entitled to receive any greater payment under
Section 3.01 and 3.02 than the Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written consent. A
Participant that is not a “United States person” within the meaning of Section 7701(a)(30)
of the Code shall not be entitled to the benefits of Section 3.01 unless the
Borrower is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to provide to the Lender such tax forms prescribed
by the IRS as are necessary or desirable to establish an exemption from, or reduction of,
U.S. withholding tax.

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

     (f) As used herein, the following terms have the following meanings:

     “Eligible Assignee” means (a) an Affiliate of the Lender; (b)
an Approved Fund; and (c) any other Person (other than a natural person)
approved by the Borrower (such approval not to be unreasonably withheld or
delayed); provided that no such approval shall be required if an
Event of Default has occurred and is continuing.

     “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.

     “Approved Fund” means any Fund that is administered or managed
by (a) the Lender or (b) an Affiliate of the Lender.

     9.08 Confidentiality.

     The Lender agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates’ directors, officers,

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

     9.09 Set-off.

     In addition to any rights and remedies of the Lender provided by law, upon the occurrence and
during the continuance of any Event of Default, the Lender is authorized at any time and from time
to time, without prior notice to the Borrower, any such notice being waived by the Borrower to the
fullest extent permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held by, and other indebtedness at any time owing
by, the Lender to or for the credit or the account of the Borrower against any and all Obligations
then due and owing to the Lender hereunder or under any other Loan Document, now or hereafter
existing, irrespective of whether or not the Lender shall have made demand under this Agreement or
any other Loan Document and although such Obligations may be denominated in a currency different
from that of the applicable deposit or indebtedness. The Lender agrees promptly to notify the
Borrower after any such set-off and application; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and application.

     9.10 Interest Rate Limitation.

     Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the “Maximum Rate”). If the Lender shall receive
interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied

48

 

to the principal of the L/C Borrowings or, if it exceeds such unpaid principal, refunded to
the Borrower. In determining whether the interest contracted for, charged, or received by the
Lender exceeds the Maximum Rate, the Lender may, to the extent permitted by applicable Law, (a)
characterize any payment that is not principal as an expense, fee, or premium rather than interest,
(b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the contemplated term of
the Obligations hereunder.

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     9.11 Counterparts.

     This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

     9.12 Integration.

     This Agreement, together with the other Loan Documents, comprises the complete and integrated
agreement of the parties on the subject matter hereof and thereof and supersedes all prior
agreements, written or oral, on such subject matter. In the event of any conflict between the
provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement
shall control; provided that the inclusion of supplemental rights or remedies in favor of
the Lender in any other Loan Document shall not be deemed a conflict with this Agreement. Each
Loan Document was drafted with the joint participation of the respective parties thereto and shall
be construed neither against nor in favor of any party, but rather in accordance with the fair
meaning thereof.

     9.13 Survival of Representations and Warranties.

     All representations and warranties made hereunder and in any other Loan Document or other
document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive
the execution and delivery hereof and thereof. Such representations and warranties have been or
will be relied upon by the Lender, regardless of any investigation made by the Lender or on its
behalf and notwithstanding that the Lender may have had notice or knowledge of any Default at the
time of any L/C Credit Extension, and shall continue in full force and effect as long as any
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain
outstanding.

     9.14 Severability.

     If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid
or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the
parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of
the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

     9.15 Governing Law.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE COMMONWEALTH OF MASSACHUSETTS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH STATE; PROVIDED THAT THE LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER
FEDERAL LAW.

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     (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS SITTING IN THE
CITY OF BOSTON OR OF THE UNITED STATES FOR THE EASTERN DISTRICT OF SUCH STATE, AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER AND THE LENDER EACH CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.
THE BORROWER AND THE LENDER EACH IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION
TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT
OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. THE BORROWER AND THE LENDER EACH
WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY
OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

     9.16 Waiver of Right to Trial by Jury.

     EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN
DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     9.17 Dispute Resolution Provision.

     This paragraph, including the subparagraphs below, is referred to as the “Dispute Resolution
Provision.” This Dispute Resolution Provision is a material inducement for the parties entering
into this agreement.

     (a) This Dispute Resolution Provision concerns the resolution of any controversies or claims
between the parties, whether arising in contract, tort or by statute, including but not limited to
controversies or claims that arise out of or relate to: (i) this agreement (including any renewals,
extensions or modifications); or (ii) any document related to this agreement (collectively a
“Claim”). For the purposes of this Dispute Resolution Provision only, the term “parties” shall
include any parent corporation, subsidiary or affiliate of the Lender involved in

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the servicing, management or administration of any obligation described or evidenced by this
agreement.

     (b) At the request of any party to this agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the “Act”). The
Act will apply even though this agreement provides that it is governed by the law of a specified
state.

     (c) Arbitration proceedings will be determined in accordance with the Act, the then-current
rules and procedures for the arbitration of financial services disputes of the American Arbitration
Association or any successor thereof (“AAA”), and the terms of this Dispute Resolution Provision.
In the event of any inconsistency, the terms of this Dispute Resolution Provision shall control.
If AAA is unwilling or unable to (i) serve as the provider of arbitration or (ii) enforce any
provision of this arbitration clause, the Lender may designate another arbitration organization
with similar procedures to serve as the provider of arbitration.

     (d) The arbitration shall be administered by AAA and conducted, unless otherwise required by
law, in any U.S. state where real or tangible personal property collateral for this credit is
located or if there is no such collateral, in the state specified in the governing law section of
this agreement. All Claims shall be determined by one arbitrator; however, if Claims exceed Five
Million Dollars ($5,000,000), upon the request of any party, the Claims shall be decided by three
arbitrators. All arbitration hearings shall commence within ninety (90) days of the demand for
arbitration and close within ninety (90) days of commencement and the award of the arbitrator(s)
shall be issued within thirty (30) days of the close of the hearing. However, the arbitrator(s),
upon a showing of good cause, may extend the commencement of the hearing for up to an additional
sixty (60) days. The arbitrator(s) shall provide a concise written statement of reasons for the
award. The arbitration award may be submitted to any court having jurisdiction to be confirmed and
have judgment entered and enforced.

     (e) The arbitrator(s) will give effect to statutes of limitation in determining any Claim and
may dismiss the arbitration on the basis that the Claim is barred. For purposes of the application
of any statutes of limitation, the service on AAA under applicable AAA rules of a notice of Claim
is the equivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision or
whether a Claim is arbitrable shall be determined by the arbitrator(s), except as set forth at
subparagraph (h) of this Dispute Resolution Provision. The arbitrator(s) shall have the power to
award legal fees pursuant to the terms of this agreement.

     (f) This paragraph does not limit the right of any party to: (i) exercise self-help remedies,
such as but not limited to, setoff; (ii) initiate judicial or non-judicial foreclosure against any
real or personal property collateral; (iii) exercise any judicial or power of sale rights, or (iv)
act in a court of law to obtain an interim remedy, such as but not limited to, injunctive relief,
writ of possession or appointment of a receiver, or additional or supplementary remedies.

     (g) The filing of a court action is not intended to constitute a waiver of the right of any
party, including the suing party, thereafter to require submittal of the Claim to arbitration.

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     (h) Any arbitration or trial by a judge of any Claim will take place on an individual basis
without resort to any form of class or representative action (the “Class Action Waiver”).
Regardless of anything else in this Dispute Resolution Provision, the validity and effect of the
Class Action Waiver may be determined only by a court and not by an arbitrator. The parties to
this Agreement acknowledge that the Class Action Waiver is material and essential to the
arbitration of any disputes between the parties and is nonseverable from the agreement to arbitrate
Claims. If the Class Action Waiver is limited, voided or found unenforceable, then the parties’
agreement to arbitrate shall be null and void with respect to such proceeding, subject to the right
to appeal the limitation or invalidation of the Class Action Waiver. The Parties acknowledge and
agree that under no circumstances will a class action be arbitrated.

     (i) By agreeing to binding arbitration, the parties irrevocably and voluntarily waive any
right they may have to a trial by jury in respect of any Claim. Furthermore, without intending in
any way to limit this agreement to arbitrate, to the extent any Claim is not arbitrated, the
parties irrevocably and voluntarily waive any right they may have to a trial by jury in respect of
such Claim. This waiver of jury trial shall remain in effect even if the Class Action Waiver is
limited, voided or found unenforceable. WHETHER THE CLAIM IS DECIDED BY ARBITRATION OR BY TRIAL BY
A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS AGREEMENT IS THAT THEY ARE GIVING
UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW.

     9.18 USA Patriot Act Notice.

     The Lender hereby notifies the Borrower that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is
required to obtain, verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow the Lender to
identify the Borrower in accordance with the Act.

     9.19 Time of the Essence.

     Time is of the essence of the Loan Documents.

     9.20 Entire Agreement.

     This Agreement and the other Loan Documents represent the final agreement between the parties
and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of
the parties. There are no unwritten oral agreements between the parties.

53

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	iROBOT CORPORATION

 	 
	 	By:  	/s/ John Leahy
 	 
	 	 	Name:  	John Leahy 	 
	 	 	Title:  	EVP/CFO 	 

54

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Richard MacDonald
 	 
	 	 	Name:  	Richard MacDonald 	 
	 	 	Title:  	Senior Vice President 	 
	 

55

 

SCHEDULE 5.05

SUPPLEMENT TO INTERIM FINANCIAL STATEMENTS

NONE

S\2026672ntSchedule

 

 

SCHEDULE 5.06

LITIGATION

NONE

Schedule 5.06

 

 

SCHEDULE 5.09

ENVIRONMENTAL MATTERS

NONE

Schedule 5.09

 

 

SCHEDULE 5.13

SUBSIDIARIES

AND OTHER EQUITY INVESTMENTS

Part (a). Subsidiaries.

	 	a.	 	iRobot Securities Corporation, a Massachusetts securities corporation (FID:
203-911-125)
	 
	 	b.	 	iRobot US Holdings, Inc., a Delaware corporation (FID: 20-3635237)
	 
	 	c.	 	iRobot Holdings LLC, a Delaware corporation (FID: 20-3635307)
	 
	 	d.	 	iRobot (India) Private Limited, an Indian corporation (No.:
U72200KA2005PTC037429)
	 
	 	e.	 	iRobot Corporation a registered office in Hong Kong (No. 33844790-000-08-05-3)
	 
	 	f.	 	Shenzhen iRobot Robot Technology Consulting Company Limited

Part (b). Other Equity Investments.

NONE

Schedule 5.13

 

 

SCHEDULE 5.18

INTELLECTUAL PROPERTY MATTERS

NONE

Schedule 5.18

 

 

SCHEDULE 7.01

EXISTING LIENS

     Security interest in accounts arising from the Borrower’s sales of good or performance of
services to Brookstone Purchasing, Inc., granted to The CIT Group Commercial Services, Inc.
pursuant to UCC financing statement no. 61164292 filed with the Delaware Secretary of State on
April 6, 2006.

Schedule 7.01

 

 

SCHEDULE 7.03

EXISTING INDEBTEDNESS

NONE

Schedule 7.03

 

 

SCHEDULE 9.02

NOTICE ADDRESSES AND LENDING OFFICE

BORROWER:

iRobot Corporation

63 South Avenue

Burlington, Massachusetts 01803

Attention: Joseph P. Mullin

Telephone: (781) 418-3187

Facsimile: (781) 345-0201

Electronic Mail: jmulin@irobot.com

Website Address: www.irobot.com

with a copy to:

Goodwin Procter LLP

53 State Street

Boston, Massachusetts 02109

Attention: Mark D. Smith

Telephone: (617) 570-1740

Facsimile: (617) 523-1231

Electronic Mail: marksmith@goodwinprocter.com

Website Address: www.goodwinprocter.com

LENDER

Lending Office for Loans, payments with
respect thereto and payments of fees other than
Letter of Credit fees:

BANK OF AMERICA, N.A.

100 Federal Street

Boston, Massachusetts 02110

Mail Code: MA5-100-07-07

Attn: M. Fay Green

Telephone: (617) 434-2537

Facsimile: (617) 434-2152

Electronic Mail: myrna.f.green@bankofamerica.com

Account No.1093601001000

Ref: Company No.493

ABA# 026009593

with a copy to:

Goulston & Storrs P.C.

400 Atlantic Avenue

Boston, Massachusetts 02110

Attn: James H. Lerner, Esq.

Telephone: (617) 574-3525

Facsimile: (617) 574-7607

Electronic Mail: jlerner@goulstonstorrs.com

Section 9.02 (i)

 

 

Lending Office for Letters of Credit and
payments with respect thereto, including
Letter of Credit fees:

BANK OF AMERICA, N.A

Attn: Kathy Hudson CT2-515-BB12.

Transaction Processing

70 Batterson Park Road

Farmington, CT 06032

Fax Advance and Payment Requests to:

(888) 841-8160

Section 9.02 (ii)

 

 

Notices (other than Requests for L/C Credit Extensions):

BANK OF AMERICA, N.A.

100 Federal Street

Boston, Massachusetts 02110

Mail Code: MA5-100-07-06

Attn: Mr. Richard J. MacDonald

Telephone: (617) 434-4288

Facsimile: (617) 434-8102

Electronic mail: richard.j.macdonald@bankofamerica.com

Section 9.02 (iii)

 

 

EXHIBIT A

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                             ,

To: Bank of America, N.A.

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement, dated as of January __, 2011 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the
“Agreement;” the terms defined therein being used herein as therein defined), between
iRobot Corporation, a Delaware corporation (the “Borrower”) and Bank of America, N.A. (the
“Lender”).

     The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
_____________________ of the Borrower, and that, as such, he/she is authorized to execute and
deliver this Certificate to the Lender on the behalf of the Borrower, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

     1. Attached hereto as Schedule 1 are the year-end audited financial statements
required by Section 6.01(a) of the Agreement for the fiscal year of the Borrower ended as
of the above date, together with the report and opinion of an independent certified public
accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

     1. Attached hereto as Schedule 1 are the unaudited financial statements required by
Section 6.01(b) of the Agreement for the fiscal quarter of the Borrower ended as of the
above date. Such financial statements fairly present in all material respects the financial
condition, results of operations and cash flows of the Borrower and its Subsidiaries in accordance
with GAAP as at such date and for such period, subject only to normal year-end audit adjustments
and the absence of footnotes.

     2. The undersigned has reviewed and is familiar with the terms of the Agreement and has made,
or has caused to be made under his/her supervision, a detailed review of the transactions and
condition (financial or otherwise) of the Borrower during the accounting period covered by the
attached financial statements.

     3. A review of the activities of the Borrower during such fiscal period has been made under
the supervision of the undersigned with a view to determining whether during such fiscal period the
Borrower performed and observed all its Obligations under the Loan Documents, and

[select one:]

Exhibit C (i)

 

 

     [to the knowledge of the undersigned during such fiscal period, the Borrower performed and
observed each covenant and condition of the Loan Documents applicable to it.]

—or—

     [the following covenants or conditions have not been performed or observed and the following
is a list of each such Default and its nature and status:]

     4. The representations and warranties of the Borrower contained in Article V of the
Agreement, or which are contained in any document furnished at any time under or in connection with
the Loan Documents, are true and correct in all material respects on and as of the date hereof,
except to the extent that such representations and warranties specifically refer to an earlier
date, in which case they are true and correct in all material respects as of such earlier date, and
except that for purposes of this Compliance Certificate, the representations and warranties
contained in subsections (a) and (b) of Section 5.05 of the Agreement shall be deemed to
refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01 of the Agreement, including the statements in connection with which this
Compliance Certificate is delivered.

     5. The financial covenant analyses and information set forth on Schedule 2 attached
hereto are true and accurate on and as of the date specified therein.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of __________, ___.

	 	 	 	 	 
	 	iRobot Corporation

 	 
	 	By:  	 	 
	 
	 	 	Name:  	 	 
	 
	 	 	Title:  	 	 
	 

Exhibit C (ii)

 

 

For the Quarter/Year ended __________________(“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

	 	 	 	 	 

	I. Section 7.11(a) — Consolidated Tangible Net Worth.
	 	 	 	 
	 
	 	 	 	 
	A. Actual Consolidated Tangible Net Worth at Statement Date:
	 	 	 	 
	 
	 	 	 	 
	1. Shareholders’ Equity:
	 	$	 	 
	 
	 	 	 	 
	2. Intangible Assets:
	 	$	 	 
	 
	 	 	 	 
	3. Consolidated Tangible Net Worth (Line I.A1 less
Line I.A.2):
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	B. Minimum required Consolidated Tangible Net Worth
	 	$	95,000,000.00	 
	 
	 	 	 	 
	C. Excess (deficient) for covenant compliance (Line I.A — I.B):
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	II. Section 7.11(b) —Adjusted EBITDA.
	 	 	 	 
	 
	 	 	 	 
	A. Net Income:
	 	 	 	 
	 
	 	 	 	 
	Plus to the extent deducted from Net Income
	 	 	 	 
	1. Interest Charges:
	 	$	 	 
	 
	 	 	 	 
	2. Depreciation and Amortization Expense:
	 	$	 	 
	 
	 	 	 	 
	3. Extraordinary Losses:
	 	$	 	 
	 
	 	 	 	 
	4. Non-Cash Expenses related to compensation:
	 	$	 	 
	 
	 	 	 	 
	5. Expenses associated with merger and acquisition expenses:
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Minus to the extent added to Net Income
	 	 	 	 
	1. Extraordinary Gains:
	 	$	 	 
	 
	 	 	 	 
	2. All Non-cash items:
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Adjusted EBITDA:
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Minimum required:
	 	$	8,000,000.00	 
	 
	 	 	 

Exhibit C (iii)

 

 

	 	 	 	 	 

	III. Section 7.11(c) — Interest Coverage.
	 	 	 	 
	 
	 	 	 	 
	A. EBIT
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	B. Interest coverage
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	C. Minimum Requirement (A/B)
	 	$	2.5 to 1	 

Exhibit C (iv)

 

 

EXHIBIT E

OPINION MATTERS

     The matters contained in the following Sections of the Credit Agreement should be covered
by the legal opinion:

	•	 	Section 5.01(a), (b) (c) and (d)
	 
	•	 	Section 5.02
	 
	•	 	Section 5.03
	 
	•	 	Section 5.04
	 
	•	 	Section 5.06
	 
	•	 	Section 5.14(b)

Exhibit E

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]