Document:

EX-10.1

 

Exhibit 10.1

 

 

CREDIT AGREEMENT

Dated as of August 23, 2007

among

POWERSECURE INTERNATIONAL, INC.,

as the Borrower,

CITIBANK, N.A.,

as Administrative Agent,

and

The Other Lenders Party Hereto

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Defined Terms
	 	 	1	 
	Section 1.02. Other Interpretive Provisions
	 	 	26	 
	Section 1.03. Accounting Terms
	 	 	27	 
	Section 1.04. Rounding
	 	 	28	 
	Section 1.05. Times of Day
	 	 	28	 
	Section 1.06. Letter of Credit Amounts
	 	 	28	 
	Section 1.07. References to Agreements and Laws
	 	 	28	 
	 
	 	 	 	 
	ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	28	 
	 
	 	 	 	 
	Section 2.01. Revolving Loans
	 	 	28	 
	Section 2.02. Term Loans
	 	 	28	 
	Section 2.03. Borrowings, Conversions and Continuations of Loans
	 	 	29	 
	Section 2.04. Letters of Credit
	 	 	30	 
	Section 2.05. Prepayments
	 	 	39	 
	Section 2.06. Termination or Reduction of Commitments
	 	 	40	 
	Section 2.07. Repayment of Loans
	 	 	41	 
	Section 2.08. Interest
	 	 	41	 
	Section 2.09. Fees
	 	 	42	 
	Section 2.10. Computation of Interest and Fees
	 	 	42	 
	Section 2.11. Evidence of Debt
	 	 	42	 
	Section 2.12. Payments Generally
	 	 	43	 
	Section 2.13. Sharing of Payments
	 	 	45	 
	 
	 	 	 	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	45	 
	 
	 	 	 	 
	Section 3.01. Taxes
	 	 	45	 
	Section 3.02. Illegality
	 	 	47	 
	Section 3.03. Inability to Determine Rates
	 	 	48	 
	Section 3.04. Increased Costs; Reserves on Eurodollar Rate Loans
	 	 	48	 
	Section 3.05. Compensation For Losses
	 	 	50	 
	Section 3.06. Mitigation Obligations; Replacement of Lenders
	 	 	50	 
	Section 3.07. Survival
	 	 	51	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	51	 
	 
	 	 	 	 
	Section 4.01. Conditions of Initial Credit Extension
	 	 	51	 
	Section 4.02. Conditions to all Credit Extensions
	 	 	53	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES
	 	 	53	 
	 
	 	 	 	 
	Section 5.01. Existence, Qualification and Power; Compliance with Laws
	 	 	54	 
	Section 5.02. Authorization; No Contravention
	 	 	54	 
	Section 5.03. Governmental Authorization; Other Consents
	 	 	54	 
	Section 5.04. Binding Effect
	 	 	54	 
	Section 5.05. Financial Statements; No Material Adverse Effect
	 	 	54	 
	Section 5.06. Litigation
	 	 	55	 

i 

 

	 	 	 	 	 
	Section 5.07. No Default
	 	 	55	 
	Section 5.08. Ownership of Property; Liens
	 	 	56	 
	Section 5.09. Hazardous Materials
	 	 	56	 
	Section 5.10. Insurance
	 	 	56	 
	Section 5.11. Taxes
	 	 	56	 
	Section 5.12. ERISA Compliance
	 	 	56	 
	Section 5.13. Subsidiaries
	 	 	57	 
	Section 5.14. Margin Regulations; Investment Company Act
	 	 	57	 
	Section 5.15. Disclosure
	 	 	57	 
	Section 5.16. Compliance with Laws
	 	 	58	 
	Section 5.17. Intellectual Property; Licenses, Etc.
	 	 	58	 
	Section 5.18. Businesses
	 	 	58	 
	Section 5.19. Common Enterprise
	 	 	58	 
	Section 5.20. Solvent
	 	 	59	 
	Section 5.21. Taxpayer Identification Number
	 	 	59	 
	Section 5.22. Employment and Labor Agreements
	 	 	59	 
	Section 5.23. Labor Matters
	 	 	59	 
	 
	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS
	 	 	59	 
	 
	 	 	 	 
	Section 6.01. Financial Statements
	 	 	59	 
	Section 6.02. Certificates; Other Information
	 	 	60	 
	Section 6.03. Notices
	 	 	61	 
	Section 6.04. Payment of Obligations
	 	 	62	 
	Section 6.05. Preservation of Existence, Etc.
	 	 	62	 
	Section 6.06. Maintenance of Properties
	 	 	62	 
	Section 6.07. Maintenance of Insurance
	 	 	62	 
	Section 6.08. Compliance with Laws
	 	 	63	 
	Section 6.09. Books and Records
	 	 	63	 
	Section 6.10. Inspection Rights
	 	 	63	 
	Section 6.11. Compliance with ERISA
	 	 	63	 
	Section 6.12. Use of Proceeds
	 	 	63	 
	Section 6.13. Further Assurances
	 	 	63	 
	Section 6.14. Subsidiaries and Other Assets
	 	 	64	 
	Section 6.15. [Post-Closing Deliveries
	 	 	64	 
	 
	 	 	 	 
	ARTICLE VII. NEGATIVE COVENANTS
	 	 	64	 
	 
	 	 	 	 
	Section 7.01. Liens
	 	 	64	 
	Section 7.02. Investments
	 	 	66	 
	Section 7.03. Indebtedness
	 	 	67	 
	Section 7.04. Fundamental Changes
	 	 	68	 
	Section 7.05. Dispositions
	 	 	68	 
	Section 7.06. Restricted Payments
	 	 	69	 
	Section 7.07. ERISA
	 	 	69	 
	Section 7.08. Change in Nature of Business
	 	 	69	 
	Section 7.09. Transactions with Affiliates
	 	 	69	 
	Section 7.10. Burdensome Agreements
	 	 	70	 
	Section 7.11. Use of Proceeds
	 	 	70	 

ii 

 

	 	 	 	 	 
	Section 7.12. Financial Covenants
	 	 	70	 
	Section 7.13. Capital Expenditures
	 	 	70	 
	Section 7.14. Fiscal Year and Accounting Methods
	 	 	70	 
	Section 7.15. Limitation on Restrictive Agreements
	 	 	70	 
	Section 7.16. Issuance of Equity Interests
	 	 	70	 
	 
	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	 	 	71	 
	 
	 	 	 	 
	Section 8.01. Events of Default
	 	 	71	 
	Section 8.02. Remedies Upon Event of Default
	 	 	73	 
	Section 8.03. Application of Funds
	 	 	74	 
	 
	 	 	 	 
	ARTICLE IX. ADMINISTRATIVE AGENT
	 	 	75	 
	 
	 	 	 	 
	Section 9.01. Appointment and Authority
	 	 	75	 
	Section 9.02. Rights as a Lender
	 	 	75	 
	Section 9.03. Exculpatory Provisions
	 	 	75	 
	Section 9.04. Reliance by Administrative Agent
	 	 	76	 
	Section 9.05. Delegation of Duties
	 	 	76	 
	Section 9.06. Resignation of Administrative Agent
	 	 	76	 
	Section 9.07. Non-Reliance on Administrative Agent and Other Lenders
	 	 	77	 
	Section 9.08. Administrative Agent May File Proofs of Claim
	 	 	78	 
	Section 9.09. Collateral and Guaranty Matters
	 	 	78	 
	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS
	 	 	79	 
	 
	 	 	 	 
	Section 10.01. Amendments, Etc.
	 	 	79	 
	Section 10.02. Notices; Effectiveness; Electronic Communication
	 	 	80	 
	Section 10.03. No Waiver; Cumulative Remedies
	 	 	82	 
	Section 10.04. Expenses; Indemnity; Damage Waiver
	 	 	82	 
	Section 10.05. Payments Set Aside
	 	 	84	 
	Section 10.06. Successors and Assigns
	 	 	84	 
	Section 10.07. Treatment of Certain Information; Confidentiality
	 	 	88	 
	Section 10.08. Set-off
	 	 	88	 
	Section 10.09. Interest Rate Limitation
	 	 	89	 
	Section 10.10. Counterparts; Integration; Effectiveness
	 	 	89	 
	Section 10.11. Survival of Representations and Warranties
	 	 	89	 
	Section 10.12. Severability
	 	 	89	 
	Section 10.13. Replacement of Lenders
	 	 	90	 
	Section 10.14. Exceptions to Covenants
	 	 	90	 
	Section 10.15. Governing Law; Jurisdiction; Etc.
	 	 	90	 
	Section 10.16. Waiver of Right to Trial by Jury
	 	 	91	 
	Section 10.17. USA PATRIOT Act Notice
	 	 	92	 
	Section 10.18. Time of the Essence
	 	 	92	 
	Section 10.19. ENTIRE AGREEMENT
	 	 	92	 

iii 

 

SCHEDULES

	 	 	 	 	 	 	 
	 

	 	 	1.01	 	 	Inactive Subsidiaries
	 

	 	 	2.01	 	 	Revolving Commitments and Revolving Pro Rata Shares
	 

	 	 	2.02	 	 	Term Commitments and Term Pro Rata Shares
	 

	 	 	5.05	 	 	Supplement to Interim Financial Statements
	 

	 	 	5.08	 	 	Fee Property
	 

	 	 	5.09	 	 	Environmental Matters
	 

	 	 	5.13	 	 	Subsidiaries and Other Equity Investments
	 

	 	 	5.22	 	 	Labor Agreements
	 

	 	 	5.23	 	 	Labor Matters
	 

	 	 	7.01	 	 	Existing Liens
	 

	 	 	7.02	 	 	Existing Investments
	 

	 	 	7.03	 	 	Existing Indebtedness
	 

	 	 	10.02	 	 	Administrative Agent’s Office, Certain Addresses for Notices

EXHIBITS

	 	 	 	 	 
	 

	 	 	 	Form of
	 
	 	 	 	 
	 

	 	A
	 	Revolving Loan Notice
	 

	 	B
	 	Term Loan Notice
	 

	 	C
	 	Revolving Loan Note
	 

	 	D
	 	Term Loan Note
	 

	 	E
	 	Compliance Certificate
	 

	 	F
	 	Assignment and Assumption
	 

	 	G
	 	Guaranty
	 

	 	H
	 	Security Agreement
	 

	 	I
	 	Deed of Trust

iv 

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT (this “Agreement”) is entered into as of August 23, 2007, among
POWERSECURE INTERNATIONAL, INC., a Delaware corporation (the “Borrower”), each lender from
time to time party hereto (collectively, the “Lenders” and individually, a
“Lender”), and CITIBANK, N.A., as Administrative Agent.

     The Borrower has requested that the Lenders provide a revolving and term credit facility, and
the Lenders are 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

     Section 1.01. Defined Terms. As used in this Agreement, the following terms shall have the
meanings set forth below:

     “Account” has the meaning set forth in the UCC.

     “Acquisition” means the acquisition by any Person of (a) a majority of the Equity
Interests of another Person, (b) all or substantially all of the assets of another Person or any
operating division of another Person or (c) all or substantially all of a line of business of
another Person, in each case whether or not involving a merger or consolidation with such other
Person.

     “Acquisition Consideration” means the consideration given by the Borrower or any of
its Subsidiaries for an Acquisition, including but not limited to the sum of (without duplication)
(a) the fair market value of any cash, property (including Equity Interests issued in respect of
such Acquisition) or services given, plus (b) the amount of any Indebtedness assumed, incurred or
guaranteed (to the extent not otherwise included) in connection with such Acquisition by the
Borrower or any of its Subsidiaries.

     “Act” has the meaning specified in Section 10.17.

     “Administrative Agent” means Citibank in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent, and may include any Affiliate of
Citibank that performs administrative functions with respect to fundings and notices and similar
matters under the Loan Documents.

     “Administrative Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other address or account as
the Administrative Agent may from time to time notify the Borrower and the Lenders.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

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     “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. 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 twenty percent (20%) or more of the Equity Interests having ordinary
voting power for the election of directors, managing general partners or the equivalent.

     “Agent Parties” has the meaning specified in Section 10.02(c).

     “Aggregate Commitments” means the Aggregate Revolving Commitments and the Aggregate
Term Commitments.

     “Aggregate Revolving Commitments” means the Revolving Commitments of all Lenders.

     “Aggregate Term Commitments” means the Term Commitments of all Lenders.

     “Alternate Base Rate” means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such
day as publicly announced from time to time by Citibank. as its “prime rate.” The “prime rate” is
a rate set by Citibank based upon various factors including Citibank’s costs and desired return,
general economic conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate. Any change in such rate
announced by Citibank shall take effect at the opening of business on the day specified in the
public announcement of such change.

     “Alternate Base Rate Loan” means a Loan that bears interest based on the Alternate
Base Rate.

     “April 8-K” means the Form 8-K of the Borrower filed with the SEC on April 20, 2007.

     “Applicable Law” means (a) in respect of any Person, all provisions of Laws applicable
to such Person, and all orders and decrees of all courts and determinations of arbitrators
applicable to such Person and (b) in respect of contracts made or performed in the State of New
York, “Applicable Law” shall also mean the Laws of the United States of America, including,
without limitation in addition to the foregoing, 12 USC Sections 85 and 86, as amended to the date
hereof and as the same may be amended at any time and from time to time hereafter, and any other
statute of the United States of America now or at any time hereafter prescribing the maximum rates
of interest on loans and extensions of credit, and the Laws of the State of New York.

     “Applicable Rate” means the following percentages per annum, based upon the Leverage
Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent
pursuant to Section 6.02(a):

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Alternate Base
	 	 	 	 	 	 	 	 	Eurodollar Rate	 	Rate for
	Pricing	 	 	 	Revolving Commitment	 	for Revolving	 	Revolving and
	Level	 	Leverage Ratio	 	Fee	 	and Term Loans	 	Term Loans
	I

	 	Less than 1.25 to 1.00
	 	 	0.200	 	 	 	1.250	 	 	 	(0.250	)
	II

	 	Greater than or equal to 1.25 to
1.00 but less than 1.75 to 1.00
	 	 	0.250	 	 	 	1.500	 	 	 	0.000	 
	III

	 	Greater than or equal to 1.75 to
1.00 but less than 2.25 to 1.00
	 	 	0.275	 	 	 	1.750	 	 	 	0.250	 
	IV

	 	Greater than or equal to 2.25 to 1.00
	 	 	0.300	 	 	 	2.000	 	 	 	0.500	 

     Any increase or decrease in the Applicable Rate resulting from a change in the Leverage
Ratio shall become effective as of the first Business Day immediately following the date a
Compliance Certificate is delivered for any Fiscal Quarter pursuant to Section 6.02(a);
provided, however, that if a Compliance Certificate is not delivered when due in accordance with
such Section 6.02(a), then Pricing Level IV shall apply as of the first Business Day after
the date on which such Compliance Certificate was required to have been delivered and shall remain
in effect until the first Business Day immediately following the date such Compliance Certificate
is actually delivered to the Administrative Agent. Notwithstanding the foregoing, the Applicable
Rate in effect from and after the Closing Date through and including the date the Compliance
Certificate is delivered pursuant to Section 6.02(a) for the Fiscal Quarter ending June 30,
2007 shall be Level 1.

     In the event that any financial statement delivered pursuant to Section 6.01(a) or
6.01(b) or any Compliance Certificate delivered pursuant to Section 6.02(a) is
shown to be inaccurate (regardless of whether this Agreement or the Commitments are in effect when
such inaccuracy is discovered), and such inaccuracy, if corrected, would have lead to a higher
Applicable Rate for any period (an “Applicable Period”) than the Applicable Rate applied
for such Applicable Period, then (i) the Borrower shall immediately deliver to the Administrative
Agent a correct Compliance Certificate for such Applicable Period, (ii) the Applicable Rate shall
be determined using the Pricing Level applicable for such Applicable Period based upon the
corrected Compliance Certificate, and (iii) the Borrower shall immediately pay to the
Administrative Agent the accrued additional interest and fees owing as a result of such increased
Applicable Rate for such Applicable Period, which payment shall be promptly applied by the
Administrative Agent in accordance with the terms hereof. This paragraph shall not limit the
rights of the Administrative Agent and the Lenders under Section 2.08 and Article
VIII and other provisions of this Agreement. The obligations of the Borrower under this
paragraph shall survive termination of the Commitments and the repayment of all other Obligations
hereunder.

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

3

 

     “Asset Coverage Ratio”, as of any date of determination, for the Borrower and its
Subsidiaries, on a consolidated basis in accordance with GAAP, the ratio of (a) the sum of
(i) 80% of Book Value of Accounts as of such date, (ii) 60% of Book Value of Inventory as of
such date and (iii) 50% of Book Value of Net Fixed Assets as of such date to (b) the sum of (i)
Consolidated Funded Indebtedness as of such date minus (ii) any outstanding Term Loans on such
date.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of
Exhibit F or any other form approved by the Administrative Agent.

     “Attorney Costs” means and includes all reasonable fees, expenses and disbursements of
any external 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; provided, however, Attributable
Indebtedness shall not include any vehicle lease, whether accounted for as a Capital Lease or an
operating lease.

     “Audited Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the Fiscal Year ended December 31, 2006, and the related audited
consolidated statements of income or operations, shareholders’ equity and cash flows for such
Fiscal Year, including the notes thereto.

     “Auto-Extension Letter of Credit” has the meaning specified in Section
2.04(b)(iii).

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

     “Borrower Materials” means material and/or information provided by or on behalf of the
Borrower hereunder or under any other Loan Document.

     “Borrowing” means a Revolving Borrowing or a Term Borrowing, as the context may
require.

     “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 Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate
Loan, means any such day on which dealings in Dollar deposits are conducted by and between banks in
the London interbank eurodollar market.

     “Capital Expenditures” means, for any period, with respect to any Person, the
aggregate of all expenditures by such Person and its Subsidiaries for the acquisition or leasing
(pursuant to a Capital Lease) of fixed or capital assets that are required to be capitalized under
GAAP on a

4

 

consolidated balance sheet of such Person and its Subsidiaries, excluding, without
duplication, any such expenditures to the extent constituting (a) expenditures of insurance
proceeds to acquire
or repair any asset, (b) leasehold improvement expenditures for which the Borrower or a
Subsidiary is reimbursed by the lessor, sublessor or sublessee, (c) vehicle leases, or (d)
PowerSecure Shared Savings Projects.

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

     “Cash and Cash Equivalents” means (a) cash; (b) marketable obligations issued or
unconditionally guaranteed by the U.S. Government or issued by any of its agencies and backed by
the full faith and credit of the U.S., in each case maturing within one year from the date of
acquisition (and investments in mutual funds investing primarily in those obligations); (c)
short-term investment grade domestic and eurodollar certificates of deposit or time deposits that
are fully insured by the Federal Deposit Insurance Corporation or are issued by commercial banks
having combined capital, surplus, and undivided profits of not less than $500,000,000 (as shown on
its most recently published statement of condition); (d) commercial paper and similar obligations
rated “P-1” by Moody’s or “A-1” by S&P; (e) readily marketable tax-free municipal bounds of a
domestic issuer rated “Aaa” by Moody’s, or “AAA” by S&P, and maturing within one year from the date
of issuance (and investments in mutual funds investing primarily in those bonds); (f) demand
deposit accounts maintained in the ordinary course of business; and (g) money market mutual funds
at least 95% of the assets of which constitute the items described in clauses (a) through (f) of
this definition or a money market fund or a qualified investment fund given one of the two
highest-long-term ratings available from S&P or Moody’s.

     “Cash Collateralize” has the meaning specified in Section 2.04(g).

     “Cash Management Document” means any agreement between or among the Borrower or any
Affiliate of Borrower and any Lender or, with the Borrower’s consent, any Affiliate of such Lender
related to treasury management, deposit accounts, cash management, custodial services, automated
clearinghouse or funds transfer services or arrangements or similar services or arrangement or
otherwise related to or evidencing any Cash Management Obligations.

     “Cash Management Obligations” means all obligations and liabilities of the Borrower or
any of its Subsidiaries owed to any Lender or any Affiliate thereof arising under or in connection
with any Cash Management Document.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any Law, rule, regulation or treaty, (b) any
change in any Law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance of any request,
guideline or directive (whether or not having the force of Law) by any Governmental Authority.

     “Change of Control” means, with respect to any Person, an event or series of events by
which:

5

 

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries,
and any person or entity acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan), other than the Equity Investors, becomes
the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except
that a person or group shall be deemed to have “beneficial ownership” of all securities that
such person or group has the right to acquire (such right, an “option right”),
whether such right is exercisable immediately or only after the passage of time), directly
or indirectly, of 50% or more of the Voting Equity Interests of such Person (and taking into
account all such securities that such person or group has the right to acquire pursuant to
any option right); or

     (b) during any period of 12 consecutive months, a majority of the members of the board
of directors or other equivalent governing body of such Person ceases to be composed of
individuals (i) who were members of that board or equivalent governing body on the first day
of such period, (ii) whose election or nomination to that board or equivalent governing body
was approved by individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent governing body or
(iii) whose election or nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of that board or equivalent governing
body (excluding, in the case of both clause (ii) and clause (iii), any individual whose
initial nomination for, or assumption of office as, a member of that board or equivalent
governing body occurs as a result of an actual or threatened solicitation of proxies or
consents for the election or removal of one or more directors by any person or group other
than a solicitation for the election of one or more directors by or on behalf of the board
of directors); or

     (c) any Person or two or more Persons acting in concert shall have acquired by contract
or otherwise, or shall have entered into a contract or arrangement that, upon consummation
thereof, will result in its or their acquisition of the power to exercise, directly or
indirectly, a controlling influence over the management or policies of the Borrower, or
control over the Voting Equity Interests of the Borrower on a fully-diluted basis (and
taking into account all such Interests that such Person or group has the right to acquire
pursuant to any option right) representing 50% or more of the combined voting power of such
Interests.

     “Citibank” means Citibank, N.A., and its successors and assigns.

     “Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 4.01 (or, in the case of
Section 4.01(b), waived by the Person entitled to receive the applicable payment).

     “Code” means the Internal Revenue Code of 1986.

     “Collateral” means any collateral in which a Lien is granted by any Person to the
Administrative Agent to secure the Secured Obligations pursuant to the Collateral Documents.

6

 

     “Collateral Documents” means each Deed of Trust and each Security Agreement and any
document related thereto.

     “Commitment” means, as to each Lender, any obligation it may have to (a) make Loans to
the Borrower pursuant to Section 2.01 and Section 2.02 and (b) purchase
participations in L/C Obligations, in an aggregate principal amount at any one time outstanding not
to exceed the respective amounts set forth opposite such Lender’s name on Schedule 2.01 and
Schedule 2.02, or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, or in any amendment hereto, as applicable, 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
E, with such changes, or in such other form, as agreed to by the Administrative Agent.

     “Consolidated EBITDA” means, for any period, for the Borrower and its Subsidiaries on
a consolidated basis, an amount equal to the sum of (a) Consolidated Net Income, (b) Consolidated
Interest Charges, (c) the amount of taxes, based on or measured by income, deducted in determining
such Consolidated Net Income, (d) the amount of depreciation and amortization expense deducted in
determining such Consolidated Net Income, (e) all non-cash charges or losses which do not represent
a cash charge or loss in such period or in a future period, and (f) without duplication,
non-recurring charges consisting of Founders Severance Payments and relocation expenses not to
exceed $14,200,000 in aggregate amount (in each case with respect to the items set forth in clauses
(b) through (f) above, only to the extent included in calculating such Consolidated Net Income and
without duplication), minus the following to the extent included in calculating such
Consolidated Net Income: (a) Federal, state, local and foreign income tax credits of the Borrower
and its Subsidiaries for such period, (b) Consolidated Interest Income, and (c) all non-cash items
increasing Consolidated Net Income for such period.

     “Consolidated Funded Indebtedness” means, on any date of determination, the
outstanding principal amount of all Indebtedness of the Borrower and its Subsidiaries of the type
described in clauses (a), (b), (d), (e) and (f) of the definition of “Indebtedness”, and,
without duplication, any Guarantees of the foregoing, in each case, determined on a consolidated
basis in accordance with GAAP.

     “Consolidated Interest Charges” means, with respect to any period, total interest
expense, whether paid or accrued (including the interest component of Capital Leases), of the
Borrower and Subsidiaries, including, without limitation, all commissions, discounts and other fees
and charges owed with respect to letters of credit and net costs under interest rate contracts and
foreign exchange contracts.

     “Consolidated Interest Income” means, with respect to any period, total interest
income of the Borrower and its Subsidiaries, determined on a consolidated basis in accordance with
GAAP for such period.

     “Consolidated Net Income” means, for any period, for the Borrower and its Subsidiaries
on a consolidated basis, the net income of the Borrower and its Subsidiaries (excluding
extraordinary gains and extraordinary losses) for that period in accordance with GAAP,
provided

7

 

that there shall be excluded (a) the income (or loss) of any Person (other than a
Subsidiary of the Borrower whose net income is consolidated into the net income of the Borrower in
accordance with GAAP) in which the Borrower or any of its Subsidiaries has an ownership interest,
except
to the extent that any such income is actually received by the Borrower or such Subsidiary in
the form of dividends or similar distributions, and (b) the net income of any Subsidiary of the
Borrower to the extent that the declaration or payment of Dividends or similar distributions by
such Subsidiary is at the time restricted or not permitted by the terms of any Contractual
Obligation (other than under any Loan Document) or requirement of Law applicable to such
Subsidiary.

     “Consolidated Lease Expense” means, for any period, the aggregate amount of fixed and
contingent rentals payable by the Borrower and its Subsidiaries for such period with respect to
lease of real and personal property, determined on a consolidated basis in accordance with GAAP.

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

     “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C
Extension.

     “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.

     “Deed of Trust” means any fee deed of trust executed by any Loan Party, substantially
in the form of Exhibit I.

     “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 (a) when used with respect to Obligations other than the Letter
of Credit Fees, an interest rate per annum equal to the lesser of (i) the Highest Lawful Rate and
(ii) the sum of (x) the Alternate Base Rate plus (y) the Applicable Rate, if any,
applicable to Alternate Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate per annum equal to the lesser of (i) the Highest Lawful Rate and (ii) the sum of (x) the
interest rate (including any Applicable Rate) otherwise applicable to such Loan plus (y) 2%
per annum and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable
Rate plus 2% per annum.

8

 

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Loans, participations in L/C Obligations required to be funded by it hereunder within one Business
Day of the date required to be funded by it hereunder, (b) has otherwise failed to pay
over to the Administrative Agent or any other Lender any other amount required to be paid by
it hereunder within one Business Day of the date when due, unless the subject of a good faith
dispute, or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency
proceeding.

     “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.

     “Disqualified Equity Interests” means any Equity Interests of the Borrower or any of
its Subsidiaries that, either by their terms or by the terms of any security into which they are
convertible or for which they are exchangeable, or upon the happening of any event or condition
(including the passage of time), (a) matures or is mandatorily redeemable (other than solely for
Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result
of a change of control or asset sale so long as any rights of the holders thereof upon the
occurrence of a change of control or asset sale event shall be subject to the prior repayment in
full of the Loans and all other Obligations that are accrued and payable and the termination of the
Commitments), (b) is redeemable at the option of the holder thereof (other than solely for
Qualified Equity Interests), in whole or in part, (c) provides for the scheduled payments of
dividends in cash, or (d) is or becomes convertible into or exchangeable for Indebtedness, or any
other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to
the date which is six months after the Revolving Maturity Date and the Term Maturity Date.

     “Dividends” 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.

     “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.

     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved
Fund; and (d) any other Person (other than a natural person) approved by (i) the Administrative
Agent, and the L/C Issuer, and (ii) unless an Event of Default has occurred and is continuing, the
Borrower (each such approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include any Loan Party, the Sponsor or
any of their respective Affiliates or Subsidiaries.

     “Environmental Complaint” has the meaning specified in Section 5.09.

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, licenses, agreements
with any

9

 

Governmental Authority or governmental restrictions relating to pollution and the
protection of the environment or the release of any Hazardous Materials into the environment.

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the warrants, options or
other rights for the purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are outstanding on any date of
determination.

     “Equity Issuance” means the sale or issuance by the Borrower or any of its
Subsidiaries of any of its Equity Interests in a public offering or in a private placement or sale.

     “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.

     “Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate
Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”),
as published by Reuters (or other commercially available source providing quotations of BBA LIBOR
as designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to such Interest Period.
If such rate is not available at such time for any reason, then the “Eurodollar Rate” for such
Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate
at which deposits in Dollars for delivery on the first day of such Interest Period in same day
funds in the approximate amount of the Eurodollar Rate Loan

10

 

being made, continued or converted by
Citibank, N.A. and with a term equivalent to such Interest Period would be offered by Citibank,
N.A.’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 4:00 p.m. (London time)
two Business Days prior to the commencement of such Interest Period.

     “Eurodollar Rate Loan” means a Loan that bears interest at a rate based on the
Eurodollar Rate.

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

     “Exchange Act” means the Securities Exchange Act of 1934.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), 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 such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar
tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section
10.13), any withholding tax that is imposed on amounts payable to such Foreign Lender at the
time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or is
attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in
Law) to comply with Section 3.01(e), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment),
to receive additional amounts from the Borrower with respect to such withholding tax pursuant to
Section 3.01(a).

     “Extraordinary Receipt” means any cash received by or paid to or for the account of
any Person not in the ordinary course of business, including tax refunds, pension plan reversions,
proceeds of insurance (other than proceeds of business interruption insurance to the extent such
proceeds constitute compensation for lost earnings), condemnation awards (and payments in lieu
thereof), indemnity payments and any purchase price adjustments; provided, however, that an
Extraordinary Receipt shall not include cash receipts from proceeds of insurance, condemnation
awards (or payments in lieu thereof) or indemnity payments to the extent that such proceeds, awards
or payments (a) in respect of loss or damage to equipment, fixed assets or real property are
applied (or in respect of which expenditures were previously incurred) to replace or repair the
equipment, fixed assets or real property in respect of which such proceeds were received in
accordance with the terms of Section 2.05(f) or (b) are received by any Person in respect
of any third party claim against such Person and applied to pay (or to reimburse such Person for
its prior payment of) such claim and the costs and expenses of such Person with respect thereto.

     “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 on the Business Day next succeeding such day; provided that (a) if such day is not

11

 

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 Citibank, N.A. on such day on such transactions as determined by the Administrative
Agent.

     “Fiscal Quarter(s)” means the three-calendar-month periods ending on March 31, June
30, September 30, and December 31 of each calendar year.

     “Fiscal Year” means the twelve-calendar-month period beginning January 1 of each year
and ending December 31 of each year.

     “Fixed Charge Coverage Ratio” means, as of the date of determination, for the Borrower
and its Subsidiaries on a consolidated basis in accordance with GAAP, the ratio of (a) the sum of
(i) Consolidated EBITDA, plus (ii) Consolidated Lease Expense minus (iii) cash Taxes to (b) the sum
of (i) Consolidated Interest Charges, (ii) scheduled payments of principal of Consolidated Funded
Indebtedness, (iii) Consolidated Lease Expense, and (iv) Restricted Payments, in each case for the
period of four consecutive Fiscal Quarters ending on such date.

     “Foreign Lender” means any Lender that is organized under the Laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes. For purposes of this
definition, the United States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

     “Foreign Subsidiary” means each Subsidiary of the Borrower that is not a Domestic
Subsidiary

     “Founders Severance Payments” means the payments to be made to W. Phillip Marcum and
A. Bradly Gabbard pursuant to the Separation Agreement and Release and Employment Agreements.

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

     “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.

     “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 the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,

12

 

instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European
Central Bank).

     “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 (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien). 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 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.

     “Guarantors” means each Domestic Subsidiary other than any Inactive Subsidiary.

     “Guaranty” means any Guaranty executed by any Guarantor in favor of the Administrative
Agent, substantially in the form of Exhibit G.

     “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.

     “Highest Lawful Rate” means at the particular time in question the maximum rate of
interest which, under Applicable Law, any Lender is then permitted to charge on the Obligations.
If the maximum rate of interest which, under Applicable Law, any Lender is permitted to charge on
the Obligations shall change after the date hereof, the Highest Lawful Rate shall be automatically
increased or decreased, as the case may be, from time to time as of the effective time of each
change in the Highest Lawful Rate without notice to the Borrower.

     “Honor Date” has the meaning specified in Section 2.04(c)(i).

13

 

     “Inactive Subsidiaries” means those Subsidiaries of the Borrower listed on
Schedule 1.01.

     “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) Attributable Indebtedness in respect of Capital Leases and Synthetic Lease
Obligations;

     (g) Disqualified Equity Interests;

     (h) Founders Severance Payments; and

     (i) 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 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.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Information” has the meaning specified in Section 10.07.

     “Interest Payment Date” means, (a) as to any Loan other than a Alternate Base Rate
Loan, the last day of each Interest Period applicable to such Loan and the Revolving Maturity Date
or Term Maturity Date, as applicable; provided, however, that if any Interest
Period for a Eurodollar Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as
to any

14

 

Alternate Base Rate Loan, the last Business Day of each August, November, February and May
and the Revolving Maturity Date or Term Maturity Date, as applicable.

     “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan
and ending on the date one, two, three or six (or nine or twelve, if consented to by all Lenders)
months thereafter, as selected by the Borrower in its Revolving Loan Notice or Term Loan Notice, as
the case may be; provided that:

     (a) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the immediately
preceding Business Day;

     (b) any Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month at the end
of such Interest Period) shall end on the last Business Day of the calendar month at the end
of such Interest Period; and

     (c) no Interest Period shall extend beyond the Revolving Maturity Date or Term Maturity
Date, as applicable.

     “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 and any arrangement pursuant to which the investor guarantees Indebtedness of 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 5.17.

     “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).

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
the Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to such Letter of
Credit.

     “Laws” means, collectively, all international, foreign, federal, state and local
statutes, treaties, rules, regulations, ordinances, codes and applicable administrative or judicial
precedents

15

 

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 and enforceable duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Revolving Pro Rata Share. All L/C
Advances shall be denominated in Dollars.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Revolving
Borrowing.

     “L/C Cash Collateral Account” has the meaning specified in Section 2.04(g).

     “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.

     “L/C Issuer” means Citibank. (or any Affiliate thereof) in its capacity as issuer of
Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

     “L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. 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 1.06. 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.

     “Lender” has the meaning specified in the introductory paragraph hereto, and as the
context requires, may include the L/C Issuer.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Borrower and the Administrative Agent.

     “Letter of Credit” means any standby letter of credit issued hereunder.

     “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 L/C Issuer.

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

     “Letter of Credit Fee” has the meaning specified in Section 2.04(i).

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     “Letter of Credit Sublimit” means an amount equal to $5,000,000. The Letter of Credit
Sublimit is part of, and not in addition to, the Aggregate Revolving Commitments.

     “Leverage Ratio” means, as of the date of determination, for the Borrower and its
Subsidiaries on a consolidated basis in accordance with GAAP, the ratio of (a) Consolidated Funded
Indebtedness as of such date to (b) Consolidated EBITDA for the period of four consecutive Fiscal
Quarters ending on such date. For purposes of calculating the Leverage Ratio as at any date,
Consolidated EBITDA shall be calculated on a pro forma basis (as certified by the
Borrower to the Administrative Agent and as approved by an Administrative Agent) assuming that all
Acquisitions and Dispositions completed during the period of four consecutive Fiscal Quarters
ending on such date had been made on the first day of such period.

     “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).

     “Litigation” means any proceeding, claim, lawsuit, arbitration and/or investigation by
or before any Governmental Authority or arbitrator, including, without limitation, proceedings,
claims, lawsuits, and/or such investigations conducted by or before any Governmental Authority or
arbitrator or pursuant to any environmental, occupational, safety and health, antitrust, unfair
competition, securities, tax or other Law, or under or pursuant to any contract, agreement or other
instrument.

     “Loan” means an extension of credit by a Lender to the Borrower under Article
II in the form of a Revolving Loan or a Term Loan.

     “Loan Documents” means this Agreement, the Notes, each Issuer Document, the
Guaranties, each Request for Credit Extension, each Compliance Certificate, each Collateral
Document, and any other agreement executed, delivered or performable by any Loan Party in
connection herewith or as security for the Obligations, excluding any Swap Contract.

     “Loan Parties” means, collectively, the Borrower and each Guarantor.

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities, condition (financial or
otherwise) or prospects of the (i) the Acquired Business or (ii) the Borrower and its Subsidiaries,
taken as a whole; (b) a material adverse effect upon the legality, validity, binding effect or
enforceability against any Loan Party of any Loan Document to which it is a party; (c) a material
adverse effect upon the Collateral or upon the Liens granted in the Collateral; (d) a material
adverse effect on the ability of the Borrower or any other Loan Party to perform its obligations
under the Loan Documents; or (e) a material adverse effect on the rights and remedies of the
Administrative Agent, the L/C Issuer or the Lenders under the Loan Documents.

     “Moody’s” means Moody’s Investors Service, Inc., or any successor rating agency.

17

 

     “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 Cash Proceeds” means, with respect to a Disposition or issuance of any
Indebtedness by any Person, the cash proceeds received by such Person in connection with such
transaction (including any cash received in respect of non-cash proceeds, but only and as when
received) after deducting therefrom the aggregate, without duplication, of the following amounts to
the extent properly attributable to such transaction or to any asset that may be the subject
thereof: (a) all reasonable and customary legal, investment banking, brokerage and accounting fees
and expenses incurred in connection with such Disposition or issuance, (b) all taxes paid or
payable by such Person to be payable in cash in connection with such Disposition or issuance, (c)
payments made by such Person to retire Indebtedness (other than the Credit Extensions) where
payment of such Indebtedness is required in connection with such Disposition or issuance, (d) any
amounts required to be deposited into escrow in connection with the closing of such Disposition or
issuance (until any such amounts are released therefrom to such Person) and (e) the amount of any
reserve for adjustments in respect of the sale price of such asset or assets established in
accordance with GAAP (until any such reserve is reversed).

     “Net Equity Proceeds” means, with respect to the sale or issuance after the Closing
Date by the Borrower or any of its Subsidiaries of any of its Equity Interests, the excess of: (a)
the gross cash proceeds received by the Borrower or such other entity from such sale, exercise or
issuance over (b) all reasonable and customary underwriting commissions and legal, investment
banking, brokerage and accounting and other professional fees, sales commissions and disbursements
actually incurred in connection with such sale, issuance or exercise.

     “Net Fixed Assets” means, as of any date of determination, the cost of fixed assets of
the Borrower and its Subsidiaries minus depreciation expense incurred with respect thereto as of
such date of determination, determined on a consolidated basis in accordance with GAAP.

     “Net Recovery Proceeds” means, with respect to any Recovery Event or Extraordinary
Receipts, the gross cash proceeds (net of reasonable fees, costs and taxes actually incurred and
paid in connection with such Recovery Event or Extraordinary Receipt and any required permanent
payment of Indebtedness (other than Indebtedness secured pursuant to the Collateral Documents)
which is secured by the property that is the subject of such Recovery Event) received by the
respective Person in connection with such Recovery Event or Extraordinary Receipt.

     “Non-Extension Notice Date” has the meaning specified in Section 2.04(b)(iii).

     “Notes” means collectively, the Revolving Loan Notes and the Term Loan Notes.

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any
Loan, under any treasury management arrangements with any Lender, whether direct or indirect
(including those acquired by assumption), absolute or contingent, due or to become due, now

18

 

existing or hereafter arising and including interest and fees that accrue after the commencement by
or against any Loan Party 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.

     “Off-Balance Sheet Liabilities” means with respect to any Person as of any date of
determination thereof, without duplication and to the extent not included as a liability on the
consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP: (a) with
respect to any asset securitization transaction (including any accounts receivable purchase
facility) (i) the unrecovered investment of purchasers or transferees of assets so transferred, and
(ii) any other payment, recourse, repurchase, hold harmless, indemnity or similar obligation of
such Person or any of its Subsidiaries in respect of assets transferred or payments made in respect
thereof, other than limited recourse provisions that are customary for transactions of such type
and that neither (x) have the effect of limiting the loss or credit risk of such purchasers or
transferees with respect to payment or performance by the obligors of the assets so transferred nor
(y) impair the characterization of the transaction as a true sale under applicable Laws (including
Debtor Relief Laws); (b) the monetary obligations under any financing lease or so-called
“synthetic,” tax retention or off-balance sheet lease transaction which, upon the application of
any Debtor Relief Law to such Person or any of its Subsidiaries, would be characterized as
indebtedness; (c) any other monetary obligation arising with respect to any other transaction which
(i) upon the application of any Debtor Relief Law to such Person or any of its Subsidiaries, would
be characterized as indebtedness or (ii) is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the consolidated balance sheet of such
Person and its Subsidiaries (for purposes of this clause (c), any transaction structured to provide
tax deductibility as interest expense of any dividend, coupon or other periodic payment will be
deemed to be the functional equivalent of a borrowing).

     “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 certificate or 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.

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

     “Outstanding Amount” means (a) with respect to Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any borrowings and prepayments or
repayments of Loans occurring on such date, and (b) with respect to any L/C Obligations on any
date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit

19

 

Extension occurring on such date and any other changes in the aggregate amount of L/C Obligations
as of such date, including as a result of any reimbursement by the Borrower of Unreimbursed
Amounts.

     “Participant” has the meaning specified in Section 10.06(d).

     “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 any Acquisition that satisfied each of the following
requirements:

     (a) both before and after giving effect to such Acquisition and the Term Loan (if any)
requested to be made in connection therewith, no Default exists or will exist or would
result therefrom;

     (b) such Acquisition shall not be opposed by the board of directors or governing body
of the Person or assets being acquired;

     (c) no Loan Party shall, as a result of or in connection with any such acquisition,
assume or incur any direct or contingent liabilities (whether relating to environmental,
tax, litigation, or other matters) that could reasonably be expected, as of the date of such
acquisition, to result in the existence or occurrence of a Material Adverse Effect;

     (d) the applicable requirements set forth in Section 6.14 are satisfied within
the time required therein; and

     (e) the Person or assets subject to such Acquisition is or are (i) in the same or
related line of business as that conducted by the Borrower and its Subsidiaries on the date
hereof or (ii) in a business that is ancillary and in furtherance of the line of business as
that conducted by the Borrower and its Subsidiaries on the date hereof.

     “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.

     “Post-Closing Letter” means that certain letter agreement of even date herewith,
executed by Borrower and Administrative Agent, and setting forth the required time of delivery of
certain

20

 

items otherwise required under Section 4.01 to be delivered to the Administrative
Agent on the Closing Date.

     “PowerSecure” means PowerSecure, Inc., a Delaware corporation and wholly-owned
Subsidiary of the Borrower.

     “PowerSecure Shared Savings Projects” means projects whereby PowerSecure builds and
provides on-site power units and equipment on property of its customers, and PowerSecure retains
ownership of such units and equipment, which projects shall be approved by the Required Lenders
(such approval not to be unreasonably withheld or delayed).

     “Premises” has the meaning set forth in Section 5.09.

     “Pro Rata Share” means either a Revolving Pro Rata Share or a Term Pro Rata Share, as
the context requires.

     “Qualified Equity Interests” means any Equity Interests that are not Disqualified
Equity Interests.

     “Recovery Event” means any settlement of or payment in respect of any property
insurance or casualty insurance claim or any condemnation proceeding in or deed in lieu thereof
relating to any Collateral.

     “Register” has the meaning specified in Section 10.06(c).

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

     “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 (a) with respect to a Revolving Borrowing or a
conversion or continuation of Revolving Loans, a Revolving Loan Notice, (b) with respect to the
Term Borrowing or a conversion or continuation of Term Loans, a Term Loan Notice and (c) with
respect to an L/C Credit Extension, a Letter of Credit Application.

     “Required Lenders” means, as of any date of determination, (a) when there is only one
Lender, Citibank or its successor and assigns, and (b) where there is more than one Lender, two or
more Lenders having at least 66-2/3% of the Aggregate Commitments or, if the commitment of each
Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been
terminated pursuant to Section 8.02, Lenders holding in the aggregate more than 66-2/3% of
the Total Outstandings (with the aggregate amount of each Lender’s risk participation and funded
participation in L/C Obligations being deemed “held” by such Lender for purposes of this
definition); provided that the Commitments of, and the portion of the Total Outstandings
held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders; provided, further, in no event shall Required

21

 

Lenders include less than those Lenders who collectively hold more than 50% of the Aggregate
Revolving Commitments.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer, assistant treasurer or controller of the Borrower and, solely for purposes of
notices given pursuant to Article II, any other officer or employee of the Borrower so
designated by any of the foregoing officers in a notice to the Administrative Agent. 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 the Borrower and such Responsible Officer shall be conclusively presumed to have acted on
behalf of the Borrower.

     “Restricted Payment” means, collectively, (a) Dividends, (b) 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 Interest or on account of any return of capital to the Borrower’s
stockholders, partners or members (or the equivalent Person thereof), and (c) any payment of
principal, interest, premium or penalty on any Indebtedness or any defeasance, redemption,
purchase, repurchase, or other acquisition or retirement for value, in whole or in part, of any
Indebtedness (including, without limitation, the setting aside of assets or the deposit of funds
therefor).

     “Revolving Availability Period” means the period from and including the Closing Date
to the earliest of (a) the Revolving Maturity Date, (b) the date of termination of the Aggregate
Revolving Commitments pursuant to Section 2.06, and (c) the date of termination of the
commitment of each Lender to make Revolving Loans pursuant to Section 8.02.

     “Revolving Borrowing” means a borrowing consisting of simultaneous Revolving Loans of
the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by
each of the Lenders pursuant to Section 2.01.

     “Revolving Commitment” means, as to each Lender, its obligation to (a) make Revolving
Loans to the Borrower pursuant to Section 2.01 and (b) purchase participations in L/C
Obligations, in an aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite such Lender’s name on Schedule 2.01 or in any Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted
from time to time in accordance with this Agreement, including any automatic reduction thereof as a
result of a Term Loan pursuant to Section 2.02.

     “Revolving Commitment Fee” has the meaning specified in Section 2.09.

     “Revolving Loan” has the meaning specified in Section 2.01.

     “Revolving Loan Note” means a promissory note made by the Borrower in favor of a
Lender evidencing Revolving Loans made by such Lender, substantially in the form of Exhibit
C.

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     “Revolving Loan Notice” means a notice of (a) a Revolving Borrowing, (b) a conversion
of Revolving Loans from one Type to the other, or (c) a continuation of Revolving Loans, pursuant
to Section 2.03(a), which, if in writing, shall be substantially in the form of Exhibit
A.

     “Revolving Maturity Date” means (a) August 23, 2010 or (b) such earlier date as the
(i) the Obligations become due and payable pursuant to this Agreement (whether by acceleration,
prepayment in full, scheduled reduction or otherwise) or (ii) there shall exist an Event of Default
under Section 8.01(f) of this Agreement.

     “Revolving Pro Rata Share” means, with respect to each Lender at any time, a fraction
(expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the
amount of the Revolving Commitment of such Lender at such time and the denominator of which is the
amount of the Aggregate Revolving Commitments at such time; provided that if the commitment
of each Lender to make Revolving Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02, then the Revolving Pro Rata Share
of each Lender shall be determined based on the Revolving Pro Rata Share of such Lender immediately
prior to such termination and after giving effect to any subsequent assignments made pursuant to
the terms hereof. The initial Revolving Pro Rata Share of each Lender is set forth opposite the
name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which
such Lender becomes a party hereto, as applicable.

     “S&P” means Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc., or any
successor rating agency.

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

     “Secured Creditor” has the meaning given to such term in each Security Agreement.

     “Secured Obligations” means, collectively, (a) the Obligations, (b) all Swap
Obligations owed to any Lender or an Affiliate of such Lender (provided at the time of execution of
the Swap Contract related to such Swap Obligations or prior thereto such Lender is a party to the
Credit Agreement), (c) all Cash Management Obligations, (d) any and all out-of-pocket expenses
(including, without limitation, expenses and reasonable counsel fees and expenses of any Secured
Creditor) incurred by any Secured Creditor in enforcing its rights under this Agreement or under
any other Loan Document, and (e) all present and future amounts in respect of the foregoing that
would become due but for the operation of any provision of Debtor Relief Laws, and all present and
future accrued and unpaid interest, including, without limitation, post-petition interest if any
Loan Party voluntarily or involuntarily becomes subject to any Debtor Relief Laws.

     “Securities Act” means the Securities Act of 1933.

     “Security Agreement” means any Security Agreement executed by one or more of the Loan
Parties, substantially in the form of Exhibit H.

     “Solvent” means, with respect to any Person, as of any date of determination, that the
fair value of the assets (tangible and intangible) of such Person (at fair valuation) is, on the
date of

23

 

determination, greater than the total amount of liabilities (including contingent and
unliquidated liabilities) of such Person as of such date, that the present fair saleable value of
such assets of such Person will, as of such date, be greater than the amount that will be required
to pay the probable liability of such Person on its debts as such debts become absolute and matured
considering all financing alternatives and potential asset sales reasonably available to such
Person, and that, as of such date, such Person will be able to pay all liabilities of such Person
as such liabilities mature and such Person does not have unreasonably small capital with which to
carry on its business. In computing the amount of contingent or unliquidated liabilities at any
time, such liabilities will be computed at the amount which, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability discounted to present value at rates believed to be
reasonable by such Person.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the Voting Equity Interests
(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; provided, however, for
purposes hereof, the Trust shall not be a Subsidiary.

     “Subsidiary Loan Party” means any Loan Party that is a Subsidiary.

     “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 Obligations” means any and all obligations under or in connection with or
otherwise owed by the Borrower to any Lender or any Affiliate of a Lender in respect of a Swap
Contract.

     “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

24

 

termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in subsection (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 a
Lender or any Affiliate of a 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
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).

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

     “Term Borrowing” means a borrowing by the Borrower consisting of Term Loans of the
same Type and having the same Interest Period made by each of the Lenders pursuant to Section
2.02.

     “Term Commitment” means, as to each Lender, its obligation to make a Term Loan to the
Borrower pursuant to Section 2.02(a), in aggregate principal amount not to exceed the
amount set forth opposite such Lender’s name on Schedule 2.02.

     “Term Loan” has the meaning specified in Section 2.02.

     “Term Loan Note” means a promissory note made by the Borrower in favor of a Lender
evidencing Term Loans made by such Lender, substantially in the form of Exhibit D.

     “Term Loan Notice” means a notice of (a) a Term Borrowing, (b) a conversion of Term
Loans from one Type to the other, or (c) a continuation of Term Loans as the same Type, pursuant to
Section 2.03(a), which, if in writing, shall be substantially in the form of Exhibit
B.

     “Term Maturity Date” means (a)(i) with respect to a Term Loan made prior to August 23,
2008, August 23, 2015, and (ii) with respect to a Term Loan made on or after August 23, 2008,
August 23, 2016, or (b) such earlier date as (i) the Obligations become due and payable pursuant to
this Agreement (whether by acceleration, prepayment in full, scheduled reduction or otherwise) or
(ii) there shall exist an Event of Default under Section 8.01(f).

     “Term Pro Rata Share” means, with respect to each Lender at any time, a fraction
(expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the
amount of the Term Commitment of such Lender at such time and the denominator of which is the
amount of the Aggregate Term Commitments at such time; provided that if the commitment of
each Lender to make Term Loans have been terminated pursuant to Section 8.02, then the Term
Pro Rata Share of each Lender shall be a fraction (expressed as a percentage, carried out to the
ninth decimal place), the numerator of which is the Outstanding Amount of Term Loans owed to such
Lender and the denominator of which is the Outstanding Amount of Term Loans owed to all Lenders.
The initial Term Pro Rata Share of each Lender is set forth opposite the

25

 

name of such Lender on
Schedule 2.02 or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

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

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

     “Trust” means Marcum Midstream 1995-2 Business Trust, a Delaware statutory trust.

     “Type” means, with respect to a Revolving Loan or a Term Loan, its character as a
Alternate Base Rate Loan or a Eurodollar Rate Loan.

     “UCC” means the Uniform Commercial Code of Texas or, where applicable to specific
Collateral, any other relevant state.

     “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.

     “Unreimbursed Amounts” has the meaning specified in Section 2.04(c)(i).

     “Unused Revolver Portion” means, at any time, an amount equal to (a) the Aggregate
Revolving Commitment on such date minus (b) the Total Revolving Outstandings on such date.

     “Voting Equity Interests” of any Person means Equity Interests of any class or classes
having ordinary voting power for the election of at least a majority of the members of the board of
directors, managing general partners or the equivalent governing body of such Person, irrespective
of whether, at the time, Equity Interests of any other class or classes or such entity shall have
or might have voting power by reason of the happening of any contingency.

     Section 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 definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word
“will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein or in any other Loan Document), (ii) any reference herein to any

26

 

Person shall be
construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any Law shall
include all statutory and regulatory provisions consolidating, amending replacing or interpreting
such Law and any reference to any Law or regulation shall, unless otherwise specified, refer to
such Law or regulation as amended, modified or supplemented from time to
time, and (vi) the words “asset” and “property” shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

     (b) 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.”

     (c) 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.

     (d) For purposes of Section 8.01, a breach of a financial covenant contained in
Section 7.12 shall be deemed to have occurred as of any date of determination thereof by
the Administrative Agent or as of the last date of any specified measuring period, regardless of
when the financial statements or the Compliance Certificate reflecting such breach are delivered to
the Administrative Agent and the Lenders.

     Section 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 Required Lenders shall
so request, the Administrative Agent, the Lenders 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 Required Lenders); 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 Administrative Agent and the
Lenders 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.

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     Section 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).

     Section 1.05. Times of Day. Unless otherwise specified, all references herein to times of day
shall be references to Central time (daylight or standard, as applicable).

     Section 1.06. Letter of Credit Amounts. Unless otherwise specified herein, the amount of a
Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in
effect at such time; provided, however, that with respect to any Letter of Credit that, by its
terms or the terms of any Issuer Document related thereto, provides for one or more automatic
increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be
the maximum stated amount of such Letter of Credit after giving effect to all such increases,
whether or not such maximum stated amount is in effect at such time.

     Section 1.07. 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
and rulings consolidating, amending, replacing, supplementing or interpreting such Law.

ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

     Section 2.01. Revolving Loans. Subject to the terms and conditions set forth herein, each
Lender with a Revolving Commitment severally agrees to make loans (each such loan, a “Revolving
Loan”) to the Borrower from time to time, on any Business Day during the Revolving Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s
Revolving Commitment; provided, however, that after giving effect to any Revolving
Borrowing, (a) the Total Revolving Outstandings shall not exceed the Aggregate Revolving
Commitments, and (b) the aggregate Outstanding Amount of the Revolving Loans of any Lender,
plus such Lender’s Revolving Pro Rata Share of the Outstanding Amount of all L/C
Obligations, shall not exceed such Lender’s Revolving Commitment. Within the limits of each
Lender’s Revolving Commitment, and subject to the other terms and conditions hereof, the Borrower
may borrow under this Section 2.01, prepay under Section 2.06, and reborrow under
this Section 2.01. Revolving Loans may be Alternate Base Rate Loans and/or Eurodollar Rate
Loans, as further provided herein.

     Section 2.02. Term Loans. If at any time after the Closing Date the Borrower desires to make
an Acquisition and to borrow hereunder to fund all or any part of such Acquisition, the Borrower
shall notify the Administrative Agent (which shall promptly notify the Lenders) of its

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request to
fund such Acquisition by requesting a term loan (each such loan, a “Term Loan”) to be made
by the Lenders, the proceeds of which will be used by the Borrower to fund such Acquisition;
provided that (a) any Term Loan shall be in a minimum principal amount of $1,000,000, or a
whole multiple of $50,000 in excess thereof, (b) the Borrower may make a maximum request for three
Term Loans, (c) the Aggregate Revolving Commitments shall be automatically reduced by the amount of
any Term Loan made and the Revolving Commitment of each Lender shall be automatically reduced pro
rata by the amount of any Term Loan made, (d) all conditions precedent to any Credit Extension set
forth in Section 4.02 must be satisfied prior to and after giving effect to any Term Loan,
and (e) the proceeds of Term Loans may only
be used to fund Permitted Acquisitions. Subject to the terms and conditions herein, each
Lender with a Term Commitment severally agrees to make Term Loans to the Borrower in the amount of
its Term Commitment. Term Loans may not be repaid and then reborrowed.

     Section 2.03. Borrowings, Conversions and Continuations of Loans.

     (a) Each Borrowing, each conversion of Loans from one Type to the other, and each continuation
of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to the Administrative
Agent, which may be given by telephone. Each such notice must be received by the Administrative
Agent not later than 11:00 a.m. (i) three Business Days prior to the requested date of any
Borrowing of, conversion to or from, or continuation of, Eurodollar Rate Loans, and (ii) on the
requested date of any Borrowing of Alternate Base Rate Loans. Each telephonic notice by the
Borrower pursuant to this Section 2.03(a) must be confirmed promptly by delivery to the
Administrative Agent of a written Revolving Loan Notice or Term Loan Notice, as applicable,
appropriately completed and signed by a Responsible Officer of the Borrower. Each Borrowing of,
conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $500,000
or a whole multiple of $50,000 in excess thereof. Each Borrowing of or conversion to Alternate
Base Rate Loans shall be in a principal amount of $100,000 or a whole multiple of $50,000 in excess
thereof. Each Revolving Loan Notice or Term Loan Notice, as applicable (whether telephonic or
written), shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans
from one Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date of
the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day),
(iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans
to be borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration
of the Interest Period with respect thereto. If the Borrower fails to specify a Type of Loan in a
Revolving Loan Notice or Term Loan Notice, as applicable, or if the Borrower fails to give a timely
notice requesting a conversion or continuation, then the applicable Loans shall be made as, or
converted to, Alternate Base Rate Loans. Any such automatic conversion to Alternate Base Rate
Loans shall be effective as of the last day of the Interest Period then in effect with respect to
the applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing of, conversion to, or
continuation of Eurodollar Rate Loans in any such Revolving Loan Notice or Term Loan Notice, as
applicable, but fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month.

     (b) Following receipt of a Revolving Loan Notice or Term Loan Notice, as applicable, the
Administrative Agent shall promptly notify each Lender of the amount of its Revolving Pro Rata
Share or Term Pro Rata Share of the applicable Loans, and if no timely

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notice of a conversion or
continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the
details of any automatic conversion to Alternate Base Rate Loans described in the preceding
subsection. In the case of a Revolving Borrowing or the Term Borrowing, each Lender shall make the
amount of its Loan available to the Administrative Agent in immediately available funds at the
Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the
applicable Loan Notice. Upon satisfaction of the applicable conditions set forth in Section
4.02 (and, if such Borrowing is the initial Credit Extension, Section 4.01), the
Administrative Agent shall make all funds so received available to the Borrower in like funds as
received by the Administrative Agent either by (i) crediting the
account of the Borrower on the books of Citibank with the amount of such funds or (ii) wire
transfer of such funds, in each case in accordance with instructions provided to (and reasonably
acceptable to) the Administrative Agent by the Borrower.

     (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of an Interest Period for such Eurodollar Rate Loan. During the existence of
a Default, no Loans may be requested as, converted to or continued as Eurodollar Rate Loans without
the consent of the Required Lenders.

     (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of
such interest rate. The determination of the Eurodollar Rate by the Administrative Agent shall be
conclusive in the absence of manifest error. At any time that Alternate Base Rate Loans are
outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in
Citibank’s prime rate used in determining the Alternate Base Rate promptly following the public
announcement of such change.

     (e) After giving effect to all Borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more than five Interest
Periods in effect at any one time with respect to all Loans.

     Section 2.04. Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the other Lenders set forth in this Section 2.04,
(1) 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 in Dollars for the account of
the Borrower or certain Subsidiaries, and to amend or extend Letters of Credit previously
issued by it, in accordance with subsection (b) below, and (2) to honor drawings under the
Letter of Credit; and (B) the Lenders severally agree to participate in Letters of Credit
issued for the account of the Borrower and any drawings thereunder; provided that
the L/C Issuer shall not be obligated to make any L/C Credit Extension with respect to any
Letter of Credit, and no Lender shall be obligated to participate in any Letter of Credit if
as of the date of such L/C Credit Extension, (x) the Total Revolving Outstandings would
exceed the Aggregate Revolving Commitments, (y) the aggregate Outstanding Amount of the
Revolving Loans of any Lender, plus such Lender’s

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Revolving Pro Rata Share of the
Outstanding Amount of all L/C Obligations would exceed such Lender’s Revolving Commitment,
or (z) the Outstanding Amount of the L/C Obligations would exceed the Letter of Credit
Sublimit. Each request by the Borrower for the issuance or amendment of a Letter of Credit
shall be deemed to be a representation by the Borrower that the L/C Credit Extension so
requested complies with the conditions set forth in the proviso to the preceding sentence.
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.

     (ii) The L/C Issuer shall not issue any Letter of Credit, if:

     (A) subject to Section 2.04(b)(iii), the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of issuance or
last extension, unless the Required Lenders have approved such expiry date; or

     (B) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date, unless all the Lenders have approved such expiry
date.

     (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

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

     (B) the issuance of such Letter of Credit would violate one or more policies of
the L/C Issuer applicable to letters of credit generally;

     (C) except as otherwise agreed by the Administrative Agent and the L/C Issuer,
such Letter of Credit is in an initial stated amount less than $100,000;

     (D) such Letter of Credit is to be denominated in a currency other than
Dollars; or

     (E) a default of any Lender’s obligation to fund under Section 2.04(c)
exists or any Lender is at such time a Defaulting Lender hereunder, unless the L/C

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Issuer has entered into a satisfactory arrangement with the Borrower or such Lender
to eliminate the L/C Issuer’s risk with respect to such Lender.

     (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms
hereof.

     (v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A)
the L/C Issuer 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.

     (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer shall have
all of the benefits and immunities (A) provided to the Administrative Agent in Article
IX with respect to any acts taken or omissions suffered by the L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents
pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used
in Article IX included the L/C Issuer with respect to such acts or omissions, and
(B) as additionally provided herein with respect to the L/C Issuer.

(b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension 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 L/C Issuer (with a copy to the Administrative
Agent) in the form of a Letter of Credit Application, appropriately completed and signed by
a Responsible Officer of the Borrower. Such Letter of Credit Application must be received
by the L/C Issuer and the Administrative Agent not later than 10:00 a.m. at least two
Business Days (or such later date and time as the Administrative Agent and the L/C Issuer
may agree in a particular instance in their 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 satisfactory to the L/C Issuer: (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 L/C Issuer 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 satisfactory to the L/C Issuer (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 L/C Issuer may require. Additionally,
the Borrower shall furnish to the L/C Issuer and the Administrative Agent such other
documents and information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may
require.

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     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the Borrower and, if
not, the L/C Issuer will provide the Administrative Agent with a copy thereof. Unless the
L/C Issuer has received written notice from any Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested
date of issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Article IV shall not then be satisfied, then,
subject to the terms and conditions hereof, the L/C Issuer 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 L/C Issuer’s usual and
customary business practices. Immediately upon the issuance of each Letter of Credit, each
Lender with a Revolving Commitment shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter
of Credit in an amount equal to the product of such Lender’s Revolving Pro Rata Share
times the amount of such Letter of Credit. Promptly after the end of each calendar
quarter, the Administrative Agent shall deliver to each Lender a summary of the Letters of
Credit issued during such calendar quarter.

     (iii) If the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that
has automatic extension provisions (each, an “Auto-Extension Letter of Credit”);
provided that any such Auto-Extension Letter of Credit must permit the L/C Issuer to
prevent any such extension 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 (the “Non-Extension Notice Date”) in each such twelve-month
period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise
directed by the L/C Issuer, the Borrower shall not be required to make a specific request to
the L/C Issuer for any such extension. Once an Auto-Extension Letter of Credit has been
issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer
to permit the extension of such Letter of Credit at any time to an expiry date not later
than the Letter of Credit Expiration Date; provided, however, that the L/C
Issuer shall not permit any such extension if (A) the L/C Issuer has determined that it
would not be permitted, or would have no obligation, at such time to issue such Letter of
Credit in its revised form (as extended) under the terms hereof (by reason of the provisions
of clause (ii) or (iii) of Section 2.04(a) or otherwise), or (B) it has received
notice (which may be by telephone or in writing) on or before the day that is two Business
Days before the Non-Extension Notice Date (1) from the Administrative Agent that the
Required Lenders have elected not to permit such extension or (2) from the Administrative
Agent, any Lender or the Borrower that one or more of the applicable conditions specified in
Section 4.02 is not then satisfied, and in each such case directing the L/C Issuer
not to permit such extension.

     (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 L/C
Issuer will also deliver to the Borrower and the Administrative Agent a true and complete
copy of such Letter of Credit or amendment.

33

 

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) Promptly upon receipt from the beneficiary of any Letter of Credit of any notice of
a drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof. Not later than 10:00 a.m. on the date of any
payment by the L/C Issuer under a Letter of Credit (each such date, an “Honor
Date”), the Borrower shall reimburse the L/C Issuer through the Administrative Agent in
an amount equal to the amount of such drawing. If the Borrower fails to so reimburse the
L/C Issuer by such time, the Administrative Agent shall promptly notify each Lender of the
Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and
the amount of such Lender’s Revolving Pro Rata Share thereof. In such event, the Borrower
shall be deemed to have requested a Borrowing of Alternate Base Rate Loans to be disbursed
on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the
minimum and multiples specified in Section 2.02 for the principal amount of
Alternate Base Rate Loans, but subject to the amount of the unutilized portion of the
Aggregate Revolving Commitments and the conditions set forth in Section 4.02 (other
than the delivery of a Revolving Loan Notice). Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section 2.04(c)(i) may be given by telephone
if immediately confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such notice.

     (ii) Each Lender (including the Lender acting as L/C Issuer) shall upon any notice
pursuant to Section 2.04(c)(i) make funds available to the Administrative Agent for
the account of the L/C Issuer at the Administrative Agent’s Office in an amount equal to its
Revolving Pro Rata Share of the Unreimbursed Amount not later than 12:00 p.m. on the
Business Day specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.04(c)(iii), each such Lender that so makes funds available
shall be deemed to have made a Alternate Base Rate Loan to the Borrower in such amount. The
Administrative Agent shall remit the funds so received to the L/C Issuer.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Borrowing of Alternate Base Rate Loans because the conditions set forth in Section
4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have
incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that
is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with
interest) and shall bear interest at the Default Rate. In such event, each such Lender’s
payment to the Administrative Agent for the account of the L/C Issuer pursuant to
Section 2.04(c)(ii) shall be deemed payment in respect of its participation in such
L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.04.

     (iv) Until each Lender funds its Loan or L/C Advance pursuant to this Section
2.04(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Revolving Pro Rata Share of such amount shall be solely
for the account of the L/C Issuer.

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     (v) Each Lender’s obligation to make Revolving Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section
2.04(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the L/C Issuer, the Borrower or any other Person for
any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Loans pursuant to
this Section 2.04(c) is subject to the conditions set forth in Section 4.02
(other than delivery by the Borrower of a Revolving Loan Notice). No such making of an L/C
Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the
L/C Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit,
together with interest as provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.04(c) by the time specified in Section
2.04(c)(ii), the L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to the L/C Issuer at a rate per annum equal to the greater of the
Federal Funds Rate and a rate determined by the L/C Issuer in accordance with banking
industry rules on interbank compensation, plus any administrative, processing or similar
fees customarily charged by the L/C Issuer in connection with the foregoing. If such Lender
pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute
such Lender’s Revolving Loan included in the relevant Borrowing or L/C Advance in respect of
the relevant L/C Borrowing, as the case may be. A certificate of the L/C Issuer submitted
to any Lender (through the Administrative Agent) with respect to any amounts owing under
this clause (vi) shall be conclusive absent manifest error.

     (d) Repayment of Participations.

     (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.04(c), if the Administrative Agent receives for the
account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the Borrower or otherwise, including proceeds of
Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Revolving Pro Rata Share thereof in the same funds as those
received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.04(c)(i) is required to be returned under any of the
circumstances described in Section 10.05 (including pursuant to any settlement
entered into by the L/C Issuer in its discretion), each such Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Revolving Pro Rata Share thereof
on demand of the Administrative Agent, plus interest thereon from the date of such demand to
the

35

 

date such amount is returned by such Lender, at a rate per annum equal to the Federal
Funds Rate from time to time in effect. The obligations of the Lenders under this clause
shall survive the payment in full of the Obligations and the termination of this Agreement.

     (e) Obligations Absolute. The obligation of the Borrower to reimburse the L/C Issuer
for each drawing under each Letter of Credit and to repay each L/C Borrowing 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 Loan Document;

     (ii) the existence of any claim, counterclaim, setoff, defense or other right that the
Borrower or any Subsidiary 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 L/C Issuer 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 L/C Issuer 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 L/C Issuer 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; 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 immediately notify the L/C
Issuer. The Borrower shall be conclusively deemed to have waived any such claim against the
L/C Issuer and its correspondents unless such notice is given as aforesaid.

     (f) Role of L/C Issuer. Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter

36

 

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. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the Required
Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or
willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or Issuer 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 L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.04(e); provided, however, that
anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against the
L/C Issuer, and the L/C Issuer 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 L/C Issuer’s willful misconduct or gross negligence or
the L/C Issuer’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 L/C
Issuer 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 L/C Issuer
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.

     (g) Cash Collateral. Upon the request of the Administrative Agent, (i) if an Event of
Default occurs and is continuing, 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, in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations (in an amount equal to such Outstanding Amount determined as of the date of such Event
of Default or the Letter of Credit Expiration Date, as the case may be). For purposes of this
Section 2.04 and Section 8.02(c), “Cash Collateralize” means to pledge and
deposit with or deliver to the Administrative Agent, for the benefit of the L/C Issuer and the
Lenders, as collateral for the L/C Obligations, cash or deposit account balances pursuant to
documentation in form and substance satisfactory to the Administrative Agent and the L/C Issuer
(which documents are hereby consented to by the Lenders). Derivatives of such term have
corresponding meanings. The Borrower hereby grants to the Administrative Agent, for the benefit of
the L/C Issuer and the Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing. Cash Collateral shall be initially maintained
in blocked, non-interest bearing deposit accounts at Citibank (the “L/C Cash Collateral
Account”). The Borrower, no more than once in any calendar month, may direct the
Administrative Agent to invest the funds held in the L/C Cash Collateral Account (so long as the
aggregate amount of such funds exceeds any relevant minimum investment requirement) in (i) direct
obligations of the United States or any agency thereof, or obligations guaranteed by the

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United States or any agency thereof and (ii) one or more other types of investments permitted by the
Administrative Agent, in each case with such maturities as the Borrower, with the consent of the
Administrative Agent, may specify, pending application of such funds on account of the L/C
Obligations or on account of other Obligations, as the case may be. In the absence of any such
direction form the Borrower, the Administrative Agent shall invest the funds held in the L/C
Cash Collateral Account (so long as the aggregate amount of such funds exceeds any relevant minimum
investment requirement) in one or more types of investments with such maturities as the
Administrative Agent may specify, pending application of such funds on account of the L/C
Obligations or on account of other Obligations, as the case may be. All such investments shall be
made in the Administrative Agent’s name for the account of the Lenders, subject to the ownership
interest therein of the Borrower. The Borrower recognizes that any losses or taxes with respect to
such investments shall be borne solely by the Borrower, and the Borrower agrees to hold the
Administrative Agent and the Lenders harmless from any and all such losses and taxes. The
Administrative Agent may liquidate any investment held in the L/C Cash Collateral Account in order
to apply the proceeds of such investment on account of the L/C Obligations (or on account of any
other Obligation then due and payable, as the case may be) without regard to whether such
investment has matured and without liability for any penalty or other fee incurred (with respect to
which the Borrower hereby agrees to reimburse the Administrative Agent) as a result of such
application. Upon reimbursement of the outstanding L/C Obligations in full by the Borrower and
provided no Event of Default is continuing, the Administrative Agent shall promptly distribute any
Cash Collateral to the Borrower.

     (h) Applicability of ISP. Unless otherwise expressly agreed by the L/C Issuer and the
Borrower when a Letter of Credit is issued the rules of the ISP shall apply to each Letter of
Credit.

     (i) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Revolving Pro Rata Share a Letter of Credit fee (the
“Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Rate for
Eurodollar Rate Loans times the daily amount available to be drawn under such Letter of
Credit. For purposes of computing the daily amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance with Section
1.06. Letter of Credit Fees shall be (i) 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 and (ii) computed on a quarterly basis in arrears. If there is any change in the Applicable
Rate during any quarter, the daily amount available to be drawn under 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. Notwithstanding anything to the contrary contained
herein, upon the request of the Required Lenders, while any Event of Default exists, all Letter of
Credit Fees shall accrue at the Default Rate.

     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. At any
time there is more than one Lender under this Agreement, the Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee (i) with respect to each Letter of Credit, at the rate
equal to 1/8 of 1% per annum of the amount of such Letter of Credit (but in no event less than
$500), due and payable on the issuance thereof, and (ii) with respect to any amendment of a

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commercial Letter of Credit increasing the amount of such Letter of Credit, at a rate separately
agreed between the Borrower and the L/C Issuer, computed on the amount of such increase, and
payable upon the effectiveness of such amendment. The Borrower shall pay directly to the L/C
Issuer for its own account the customary issuance, presentation, amendment and other processing
fees, and other standard costs and charges, of the L/C Issuer 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.

     (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

     Section 2.05. Prepayments.

     (a) The Borrower may, upon notice to the Administrative Agent, at any time or from time to
time voluntarily prepay Revolving Loans or Term Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the Administrative Agent not
later than 12:00 noon (A) three Business Days prior to any date of prepayment of Eurodollar Rate
Loans and (B) on the date of prepayment of Alternate Base Rate Loans; (ii) any prepayment of
Eurodollar Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof; and (iii) any prepayment of Alternate Base Rate Loans shall be in a principal
amount of $300,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the
entire principal amount thereof then outstanding. Each such notice shall specify the date and
amount of such prepayment and the Type(s) of Loans to be prepaid and whether such Loan is a
Revolving Loan or a Term Loan. The Administrative Agent will promptly notify each Lender of its
receipt of each such notice, and of the amount of such Lender’s Pro Rata Share of such prepayment.
If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified therein. Each such
prepayment shall be applied to the Revolving Loans or the Term Loans, as the case may be, of the
Lenders in accordance with their respective Pro Rata Shares of such Loan. Any voluntary
prepayments of the Term Loans shall be made and applied as provided in Section 2.05(i).

     (b) If for any reason the Total Revolving Outstandings at any time exceed the Aggregate
Revolving Commitments then in effect, the Borrower shall immediately prepay Revolving Loans and/or
Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess;
provided, however, that the Borrower shall not be required to Cash Collateralize
the L/C Obligations pursuant to this Section 2.05(c) unless, after the prepayment in full
of the Revolving Loans referred to in the preceding clause, the Total Revolving Outstandings exceed
the Aggregate Revolving Commitment then in effect.

     (c) Concurrently with the receipt of Net Cash Proceeds from the issuance by the Borrower or
any of its Subsidiaries of any Indebtedness pursuant to Section 7.03(h), the Borrower shall
prepay the Loans in an aggregate principal amount of 100% of such Net Cash Proceeds. Each such
mandatory prepayment shall be made and applied as provided in Section 5.01(g).

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     (d) Concurrently with the receipt of Net Cash Proceeds from the Disposition by the Borrower or
any of its Subsidiaries pursuant to Section 7.05(g), the Borrower shall prepay the Loans in
an aggregate principal amount equal to 100% of such Net Cash Proceeds (or, if appropriate, 100% of
the Net Cash Proceeds that remain after deducting any amount reinvested by the Borrower or any of
its Subsidiaries during the 120-day period described in
Section 7.05(g)). Each such mandatory prepayment shall be made and applied as
provided in Section 2.05(g).

     (e) Concurrently with the receipt of Net Equity Proceeds from any Equity Issuance by the
Borrower or any of its Subsidiaries other than Equity Issuance permitted under clauses (a) and (b)
of Section 7.16, the Borrower shall prepay the Loans in an aggregate principal amount equal
to 100% of such Net Equity Proceeds. Each such mandatory prepayment shall be made and applied as
provided in Section 2.05(g).

     (f) The Borrower shall make mandatory prepayments of the Loans in an amount equal to 100% of
the Net Recovery Proceeds of any Recovery Event or Extraordinary Receipt; provided,
however, in the event the Borrower or one of its Subsidiaries receives Net Recovery
Proceeds on account of a Recovery Event, (A) the Borrower or such Subsidiary may apply such
proceeds to the purchase price of replacement property or other property used by the Borrower or
its Subsidiaries in its line of business within 120 days of such Recovery Event to the extent
required pursuant to Section 7.05(g). Each such mandatory prepayment shall be made and
applied as provided in Section 2.05(g).

     (g) Any mandatory prepayment required pursuant to Section 2.05(c), (d),
(e) or (f) and any such mandatory prepayment or voluntary prepayment of Term Loans
made pursuant to Section 2.05(a) shall (i) in addition include any additional amounts
required pursuant to Section 3.05, (ii) not be subject to any notice and minimum payment
provisions, and (iii) be applied first to the Term Loans, (A) pro rata, in the case
of a voluntary prepayment pursuant to Section 2.05(a), to all of the unpaid scheduled
installments and (B) in the inverse order of maturity, in the case of any mandatory prepayment
pursuant to Section 2.05(c), (d), (e) or (f), and, second,
if the Term Loans have been repaid in full, then to the Revolving Loans, and, third, if the
Revolving Loans have been repaid in full, to Cash Collateralize the L/C Obligations.

     Section 2.06. Termination or Reduction of Commitments. The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Revolving Commitments, or from time to time
permanently reduce the Aggregate Revolving Commitments; provided that (i) any such notice
shall be received by the Administrative Agent not later than 11:00 a.m. two Business Days prior to
the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate
amount of $2,000,000 or any whole multiple of $1,000,000 in excess thereof, and (iii) the Borrower
shall not terminate or reduce the Aggregate Revolving Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Total Revolving Outstandings would exceed the
Aggregate Revolving Commitments. The Administrative Agent will promptly notify the Lenders of any
such notice of termination or reduction of the Aggregate Revolving Commitments. Any reduction of
the Aggregate Revolving Commitments shall be applied to the Revolving Commitment of each Lender
according to its Revolving Pro Rata Share. All Revolving Commitment Fees accrued until the
effective date of any termination of the Aggregate Revolving Commitments shall be paid on the
effective date of such termination. The

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Aggregate Revolving Commitment shall be automatically and
permanently reduced by (a) the amount of any mandatory prepayment of any Revolving Loan or any
amount of Cash Collateral provided pursuant to Section 2.05(i) and (b) the amount of any
Term Loan made pursuant to Section 2.02.

     Section 2.07. Repayment of Loans.

     (a) The Borrower shall repay to the Lenders on the Revolving Maturity Date the aggregate
principal amount of Revolving Loans outstanding on such date.

     (b) To the extent not otherwise required to be paid earlier as provided herein, the Borrower
shall repay the principal of each Term Loan, if any, on each March 31, June 30, September 30 and
December 31 after each such Term Loan is made, with the amount of each installment payment on each
such date being equal to the product of (i) the initial total outstanding principal amount of such
Term Loan (without giving effect to any payments made on such Term Loan) and (ii) 1/28. The
Borrower shall repay all remaining outstanding principal amount of each Term Loan on such Term
Loan’s Term Maturity Date.

     Section 2.08. Interest.

     (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the lesser of (y) the Highest Lawful Rate and (z) the Eurodollar Rate for such
Interest Period plus the Applicable Rate for Eurodollar Rate Loans; and (ii) each Alternate
Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the lesser of (y) the Highest Lawful Rate and (z) the
Alternate Base Rate plus the Applicable Rate for Alternate Base Rate Loans.

(b) (i) If any amount of principal of any Loan is not paid when due (without regard
to any applicable grace periods), whether at stated maturity, by acceleration or
otherwise, such amount shall thereafter bear interest at a fluctuating interest rate
per annum at all times equal to the lesser of (y) the Default Rate and (z) the Highest
Lawful Rate, to the fullest extent permitted by Applicable Laws.

     (ii) If any amount (other than principal of any Loan) payable by the Borrower under any
Loan Document is not paid when due (after giving effect to any applicable grace periods),
whether at stated maturity, by acceleration or otherwise, then upon the request of the
Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate
per annum at all times equal to the lesser of (y) the Default Rate and (z) the Highest
Lawful Rate, to the fullest extent permitted by Applicable Laws.

     (iii) Upon the request of the Required Lenders, while any Event of Default exists, the
Borrower shall pay interest on the principal amount of all outstanding Loans at a
fluctuating interest rate per annum at all times equal to the lesser of (y) the Default Rate
and (z) the Highest Lawful Rate, to the fullest extent permitted by Applicable Laws.

     (iv) Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

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     (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. 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.

     Section 2.09. Fees. The Borrower shall pay to the Administrative Agent for the account of
each Lender with a Revolving Commitment in accordance with its Revolving Pro Rata Share, a
commitment fee (the “Revolving Commitment Fee”) equal to the Applicable Rate for the
Revolving Commitment Fee times the actual daily amount by which the Aggregate Revolving
Commitments exceed the sum of (i) the Outstanding Amount of Revolving Loans and (ii) the
Outstanding Amount of L/C Obligations. The Revolving Commitment Fee shall accrue at all times
during the Revolving Availability Period, 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 Revolving Maturity Date. The Revolving Commitment
Fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate
during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate was in effect.

     Section 2.10. Computation of Interest and Fees. All computations of interest for Alternate
Base Rate Loans when the Alternate Base Rate is determined by Citibank, N.A.’s “prime rate” shall
be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.
Subject to Section 10.09, all other 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 Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided that any Loan that
is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear
interest for one day. Each determination by the Administrative Agent of an interest rate or fee
hereunder shall be conclusive and binding for all purposes, absent manifest error.

     Section 2.11. Evidence of Debt.

     (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary course of
business. The accounts or records maintained by the Administrative Agent and each Lender shall be
conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the
Borrower and the interest and payments thereon. Any failure to so record or any error in doing so
shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict between the accounts
and records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error. Upon the request of any Lender made through the Administrative Agent,
the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note
which shall evidence such Lender’s Loans in addition

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to such accounts or records. Each Lender may
attach schedules to its Notes and endorse thereon the date, Type (if applicable), amount and
maturity of its Loans and payments with respect thereto.

     (b) In addition to the accounts and records referred to in subsection (a), each Lender and the
Administrative Agent shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters of Credit. In the
event of any conflict between the accounts and records maintained by the Administrative Agent and
the accounts and records of any Lender in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error.

     Section 2.12. Payments Generally.

     (a) General. 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 Administrative Agent,
for the account of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein. The Administrative Agent will promptly distribute to each Lender its applicable
Pro Rata Share (or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office. All payments received by the
Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day
and any applicable interest or fee shall continue to accrue. 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.

(b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless
the Administrative Agent shall have received notice from a Lender prior to the proposed
date of any Borrowing of Eurodollar Rate Loans (or, in case of any Borrowing of
Alternate Base Rate Loans, prior to 12:00 noon on the date of such Borrowing) that such
Lender will not make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.03 (or, in the case of a
Borrowing of Alternate Base Rate Loans, that such Lender has made such share available
in accordance with and at the time required by Section 2.03) and may, in
reliance upon such assumption, make available to the Borrower a corresponding amount.
In such event, if a Lender has not in fact made its share of the applicable Borrowing
available to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount in immediately available funds with interest thereon, for each day
from and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (A) in the case of a
payment to be made by such Lender, the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation and (B) in the case of a payment to be made by the Borrower, the
interest rate applicable to Alternate Base Rate Loans. If the Borrower and such Lender
shall pay such interest to the

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Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the amount of
such interest paid by the Borrower for such period. If such Lender pays its share of
the applicable Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender’s Loan
included in such Borrowing. Any payment by the Borrower shall be without prejudice to any
claim the Borrower may have against a Lender that shall have failed to make such payment to
the Administrative Agent.

     (ii) Payments by Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Administrative Agent for the account of the Lenders or the L/C
Issuer hereunder that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as the case
may be, the amount due. In such event, if the Borrower has not in fact made such payment,
then each of the Lenders or the L/C Issuer, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such Lender or the
L/C Issuer, in immediately available funds with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment to
the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by
the Administrative Agent in accordance with banking industry rules on interbank
compensation.

     A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (b) shall be conclusive, absent manifest error.

     (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing
provisions of this Article II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Credit Extension set forth in
Article IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

     (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Loans, to fund participations in Letters of Credit, and to make payments pursuant to Section
10.04(c) are several and not joint. The failure of any Lender to make any Revolving Loan, to
fund any such participation or to make any payment under Section 10.04(c) on any date
required hereunder shall not relieve any other Lender of its corresponding obligation to do so on
such date, and no Lender shall be responsible for the failure of any other Lender to so make its
Loan, to purchase its participation or to make its payment under Section 10.04(c).

     (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

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     Section 2.13. Sharing of Payments. If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the
Loans made by it or the participations in L/C Obligations held by it resulting in such
Lender’s receiving payment of a proportion of the aggregate amount of such Loans or
participations and accrued interest thereon greater than its applicable Pro Rata Share thereof as
provided herein, then the Lender receiving such greater proportion shall (a) notify the
Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the
applicable Loans and subparticipations in L/C Obligations of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and other amounts owing them, provided that:

     (a) if any such participations or subparticipations are purchased and all or any portion of
the payment giving rise thereto is recovered, such participations or subparticipations shall be
rescinded and the purchase price restored to the extent of such recovery, without interest; and

     (b) the provisions of this Section shall not be construed to apply to (x) any payment made by
the Borrower pursuant to and in accordance with the express terms of this Agreement or (y) any
payment obtained by a Lender as consideration for the assignment of or sale of a participation in
any of its Loans or subparticipations in L/C Obligations to any assignee or participant, other than
to the Borrower or any Subsidiary thereof (as to which the provisions of this Section shall apply).

     Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so
under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

     Section 3.01. Taxes.

     (a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Borrower hereunder or under any other Loan Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that if the
Borrower shall be required by Applicable Law to deduct any Indemnified Taxes (including any Other
Taxes) from such payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower
shall make such deductions and (iii) the Borrower shall timely pay the full amount deducted to the
relevant Governmental Authority in accordance with Applicable Law.

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     (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with Applicable Law.

     (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent, each Lender and the L/C Issuer, within 10 days after demand therefor, for the full amount of
any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender or the L/C Issuer, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority, except to the extent that such penalties, interest or expenses are determined by a court
of competent jurisdiction by final judgment to have resulted from the Administrative Agent’s or
such Lender’s gross negligence or willful misconduct. A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender or the L/C Issuer (with a copy to the
Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender of
the L/C Issuer, shall be conclusive absent manifest error.

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

     (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the Law of the jurisdiction in which the Borrower is resident
for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by Applicable Law or reasonably requested by
the Borrower or the Administrative Agent, such properly completed and executed documentation
prescribed by Applicable Law as will permit such payments to be made without withholding or at a
reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or
reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to backup withholding or
information reporting requirements.

     Without limiting the generality of the foregoing, in the event that the Borrower is resident
for tax purposes in the United States, any Foreign Lender shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to
time thereafter upon the request of the Borrower or the Administrative Agent, but only if such
Foreign Lender is legally entitled to do so), whichever of the following is applicable:

     (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a party,

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     (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

     (iii) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that
such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of the Borrower within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form
W-8BEN, or

     (iv) any other form prescribed by Applicable Law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together with such
supplementary documentation as may be prescribed by Applicable Law to permit the Borrower to
determine the withholding or deduction required to be made.

     (f) Treatment of Certain Refunds. If the Administrative Agent, any Lender or the L/C
Issuer determines, in its reasonable discretion, that it has received a refund of any Taxes or
Other Taxes as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower an
amount equal to such refund (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative Agent, such Lender or
the L/C Issuer, as the case may be, and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund), provided that the Borrower,
upon the request of the Administrative Agent, such Lender or the L/C Issuer, agrees to repay the
amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent, such Lender or the L/C Issuer in the
event the Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This subsection shall not be construed to require the Administrative Agent, any Lender
or the L/C Issuer to make available its tax returns (or any other information relating to its taxes
that it deems confidential) to the Borrower or any other Person.

     Section 3.02. Illegality. If any Lender determines that any Law has made it unlawful, or that
any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable
Lending Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest
rates based upon the Eurodollar Rate or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars
in the London interbank market, then, on notice thereof by such Lender to the Borrower through the
Administrative Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to
convert Alternate Base Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender
notifies the Administrative Agent and the Borrower that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, the Borrower shall, upon demand from
such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all
Eurodollar Rate Loans of such Lender to Alternate Base Rate Loans, either on the last day of the
Interest Period therefor, if such Lender may Lawfully continue to maintain such Eurodollar Rate
Loans to such day, or immediately, if such Lender may not

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Lawfully continue to maintain such
Eurodollar Rate Loans. Upon any such prepayment or conversion, the Borrower shall also pay accrued
interest on the amount so prepaid or converted.

     Section 3.03. Inability to Determine Rates. If the Required Lenders reasonably determine that
for any reason in connection with any request for a Eurodollar Rate Loan or a conversion to or
continuation thereof that (a) Dollar deposits are not being offered to banks in the London
interbank Eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate
Loan, (b) adequate and reasonable means do not exist for determining the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan, or (c) the Eurodollar
Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does not
adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative
Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the
Lenders to make or maintain Eurodollar Rate Loans shall be suspended until the Administrative Agent
(upon the instruction of the Required Lenders) revokes such notice. Upon receipt of such notice,
the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of
Eurodollar Rate Loans or, failing that, will be deemed to have converted such request into a
request for a Borrowing of Alternate Base Rate Loans in the amount specified therein.

     Section 3.04. Increased Costs; Reserves on Eurodollar Rate Loans.

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

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except any reserve requirement
contemplated by Section 3.04(e)) or the L/C Issuer;

     (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any Eurodollar Loan made by it hereunder, or change the basis of taxation of payments to
such Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other
Taxes covered by Section 3.01 and the imposition of, or any change in the rate of,
any Excluded Tax payable by such Lender or the L/C Issuer); or

     (iii) impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Loans made by such Lender
hereunder or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan hereunder (or of maintaining its obligation to make any such Loan),
or to increase the cost to such Lender or the L/C Issuer of participating in, issuing or
maintaining any Letter of Credit (or of maintaining its obligation to participate in or issue any
Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or the
L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of
such Lender or the L/C Issuer, the Borrower will pay to such Lender or the L/C Issuer, as the

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case may be, such additional amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.

     (b) Capital Requirements. If any Lender or the L/C Issuer determines that any Change
in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such
Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on
the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below
that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the
L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or
the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

     (c) Certificate for Reimbursement. A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its
holding company, as the case may be, as specified in subsection (a) or (b) of this Section and
delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such
Lender or the L/C Issuer the amount shown as due on any such certificate within 30 days after
receipt thereof.

     (d) Delay in Request. Failure or delay on the part of any Lender or the L/C Issuer to
demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or reductions suffered more
than nine months prior to the date that such Lender or the L/C Issuer, as the case may be, notifies
the Borrower of the Change in Law giving rise to such increased costs or reductions and of such
Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period
referred to above shall be extended to include the period of retroactive effect thereof).

     (e) Reserves on Eurodollar Rate Loans. The Borrower shall pay to each Lender, as long
as such Lender shall be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan
equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by
such Lender in good faith, which determination shall be conclusive), which shall be due and payable
on each date on which interest is payable on such Loan, provided the Borrower shall have
received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such
additional interest from such Lender. If a Lender fails to give notice 10 days prior to the
relevant Interest Payment Date, such additional interest shall be due and payable 10 days from
receipt of such notice.

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     Section 3.05. Compensation For Losses. Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate such
Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a
result of:

     (a) any continuation, conversion, payment or prepayment of any Eurodollar Loan on a day other
than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by
reason of acceleration, or otherwise);

     (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a
Loan) to prepay, borrow, continue or convert any Eurodollar Loan on the date or in the amount
notified by the Borrower; or

     (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest
Period therefor as a result of a request by the Borrower pursuant to Section 10.13;

including any loss or expense arising from the liquidation or reemployment of funds obtained by it
to maintain such Loan or from fees payable to terminate the deposits from which such funds were
obtained. The Borrower shall also pay any customary administrative fees charged by such Lender in
connection with the foregoing.

For purposes of calculating amounts payable by the Borrower to the Lenders under this Section
3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the
Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded.

     Section 3.06. Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 3.04, or the Borrower is required to pay any additional amount to any Lender
or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if
any Lender gives a notice pursuant to Section 3.02, then such Lender shall use reasonable
efforts to designate a different Lending Office for funding or booking its Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches or affiliates, if,
in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the
future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and
(ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable
costs and expenses incurred by any Lender in connection with any such designation or assignment.

     (b) Replacement of Lenders. If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01, the Borrower
may replace such Lender in accordance with Section 10.13.

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     Section 3.07. Survival. All of the Borrower’s obligations under this Article III
shall survive termination of the Aggregate Commitments and repayment of all other Obligations
hereunder.

ARTICLE IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     Section 4.01. Conditions of Initial Credit Extension. The obligation of each Lender to make
its initial Credit Extension hereunder is subject to satisfaction of the following conditions:

     (a) The Administrative Agent’s receipt of the following, each of which shall be originals or
telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date), unless otherwise
specified in the Post-Closing Letter, and each in form and substance satisfactory to the
Administrative Agent and each of the Lenders:

     (i) executed counterparts of this Agreement, each Guaranty, the Deed of Trust, and each
Security Agreement, together with related UCC-1 financing statements, intellectual property
filings and stock or other appropriate certificates, if applicable, for 100% of all Equity
Interests of each Domestic Subsidiary and for 66% of all Equity Interests of any Foreign
Subsidiary and stock or other appropriate powers, sufficient in number for distribution to
the Administrative Agent, each Lender and the Borrower;

     (ii) a Revolving Loan Note executed by the Borrower in favor of the Lender, in a
principal amount equal to the Lender’s Revolving Commitment;

     (iii) a Term Loan Note executed by the Borrower in favor of the Lender, in a principal
amount equal to the Lender’s Term Commitment (to be held by the Administrative Agent,
pending the funding of any Term Loan);

     (iv) certificates showing the existence of all insurance policies required by
Section 6.07, naming the Administrative Agent as loss payee and additional insured.

     (v) such certificates of resolutions or other similar action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party which is not a natural
Person as the Administrative Agent may 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 such Loan Party is a
party;

     (vi) such documents and certifications as the Administrative Agent may require to
evidence that each Loan Party is duly organized or formed, and that each such Loan Party 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;

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     (vii) favorable opinions of counsel to the Loan Parties addressed to the Administrative
Agent and each Lender, as to such matters concerning the Loan Parties and the Loan Documents
as the Required Lenders may request;

     (viii) a certificate of a Responsible Officer or Secretary of each Loan Party either
(A) attaching copies of all consents, licenses and approvals required in connection with the
execution, delivery and performance by such Loan Party and the validity against such Loan
Party 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;

     (ix) a certificate signed by a Responsible Officer of the Borrower certifying that the
conditions specified in Sections 4.02(a) and (b) have been satisfied, and
that to the knowledge of the Responsible Officer 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;

     (x) a solvency certificate signed by the treasurer of the Borrower, in form and
substance satisfactory to the Administrative Agent;

     (xi) a duly completed pro forma Compliance Certificate as of the Closing Date signed by
a Responsible Officer of the Borrower;

     (xii) executed landlord’s waivers with respect to Collateral which is located in or
about property leased by the Borrower or its Subsidiaries, in form and substance
satisfactory to the Administrative Agent;

     (xiii) delivery of the letter referred to in Section 7.05(h); and

     (xiv) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent or the Required Lenders reasonably may require.

     (b) The Administrative Agent shall have received on or before the Closing Date a fee in the
amount of the product of (A) 0.250% and (B) the Aggregate Revolving Commitments. Any fees required
to be paid on or before the Closing Date shall have been paid.

     (c) Unless waived by the Administrative Agent, the Borrower shall have paid all Attorney Costs
of the Administrative Agent 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 Administrative
Agent).

     (d) The Closing Date shall have occurred on or before August 31, 2007.

     Without limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be

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satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

     Section 4.02. Conditions to all Credit Extensions. The obligation of each Lender to honor any
Request for Credit Extension (other than a Revolving Loan Notice requesting only a conversion of
Revolving Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the
following conditions precedent:

     (a) The representations and warranties of the Borrower and each other Loan Party 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 that are subject to materiality or Material
Adverse Effect qualifications shall be true and correct in all respects and the representations and
warranties of the Borrower and each other Loan Party contained in Article V or any other
Loan Documents, or which are contained in any document furnished at any time under or in connection
herewith or therewith that are not subject to materiality or Material Adverse Effect
qualifications, shall be true and correct in all material respects on and as of the date of such
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 subsections (a) and (b), respectively, of
Section 6.01.

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

     (c) The proposed Credit Extension will not violate any restriction on the authority to incur
such Indebtedness under the Borrower’s Organization Documents and is permitted under the terms of
the Borrower’s Organization Documents pursuant to authority granted the manager of the Borrower
with respect thereto prior to the Closing Date.

     (d) The Administrative Agent shall have received a Request for Credit Extension in accordance
with the requirements hereof.

     Each Request for Credit Extension (other than a Loan Notice requesting only a conversion of
Loans to the other Type or a continuation of Eurodollar Rate Loans) 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 Credit
Extension.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Administrative Agent and the Lenders that:

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     Section 5.01. Existence, Qualification and Power; Compliance with Laws. Each Loan Party (a)
is a corporation, partnership or limited liability company duly organized or formed, validly
existing and in good standing (to the extent applicable) 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 own its assets and
carry on its business and 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 (c) or this clause (d), to the extent that failure to do
so could not reasonably be expected to have a Material Adverse Effect.

     Section 5.02. Authorization; No Contravention. The execution, delivery and performance by
each Loan Party of each Loan Document to which such Person is party, have, to the extent
applicable, 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, or
require any payment to be made under (i) any Contractual Obligation to which such Person is a party
or affecting such Person or the properties of such Person or any of its Subsidiaries 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 the case of clauses (b) and
(c) above to the extent that such conflict, breach, contravention, Lien, payment or violation could
not reasonably be expected to have a Material Adverse Effect.

     Section 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 not already obtained is necessary or required in connection with the execution,
delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other
Loan Document other than (a) those necessary to perfect the Liens in the Collateral for the benefit
of the Lenders, (b) those necessary to release the current Liens in favor of First National Bank of
Colorado, (c) those otherwise obtained, taken, given or made prior to or as of the Closing Date,
and (d) filing of Form 8-K with the SEC as required to disclose the existence and terms of this
Agreement and the transactions contemplated hereby.

     Section 5.04. Binding Effect. This Agreement has been, and each other Loan Document, when
delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party
thereto. This Agreement constitutes, and each other Loan Document when so delivered will
constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan
Party that is party thereto in accordance with its terms, subject as to enforcement to any Debtor
Relief Laws and to general equitable principles.

     Section 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 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

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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, as and to the extent required to be
reported in connection with GAAP.

     (b) The unaudited quarterly consolidated balance sheet of the Borrower and its Subsidiaries
dated June 30, 2007, and the related statements of income or operations, shareholders’ equity and
cash flows for the period 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 Subsidiaries not disclosed on the
financial statements referred to in this subsection (b), including liabilities for taxes, material
commitments and indebtedness.

     (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, except as set forth in the Borrower’s Form 8-K filed with the
SEC on April 20, 2007.

     (d) The consolidated forecasted balance sheet and statements of income and cash flows of the
Borrower and its Subsidiaries previously delivered to the Administrative Agent were prepared in
good faith on the basis of the assumptions stated therein, which assumptions were believed to be
reasonable in light of the conditions known to be existing at the time of delivery of such
forecasts, and represented, at the time of delivery, the Borrower’s good faith and reasonable
estimate of its future financial performance. The aforementioned forecast is not a guaranty of
future performance, and actual results may differ from those in the forecast.

     (e) Neither the Borrower nor any other Loan Party has any Off-Balance Sheet Liabilities.

     Section 5.06. Litigation. There is no Litigation pending or, to the knowledge of the
Borrower, threatened, at Law, in equity, in arbitration or before any Governmental Authority, by or
against the Borrower or any other Loan Party or against any of their properties or revenues that
(a) purport to affect or pertain to 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.

     Section 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.

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     Section 5.08. Ownership of Property; Liens. Except as provided in Schedule 5.08,
neither the Borrower nor any Subsidiary owns fee simple title to any real property. The Borrower
and each Subsidiary has valid leasehold interests in all real property necessary or used in the
ordinary conduct of its business. The property of the Borrower and its Subsidiaries is subject to
no Liens, other than Liens permitted by Section 7.01.

     Section 5.09. Hazardous Materials. Neither the Borrower nor any of its Subsidiaries has used
Hazardous Materials on or affecting any premises at which the Borrower or any of its Subsidiaries
has a place of business (collectively and singly the “Premises”) in any manner which
violates any Environmental Laws governing the use, storage, treatment, handling, manufacture,
transportation or disposal of Hazardous Materials, which violation could reasonably be expected to
have a Material Adverse Effect. Except as disclosed on Schedule 5.09, the Borrower has not
received any notice of any violations of Environmental Laws which could reasonably be expected to
have a Material Adverse Effect (“Environmental Complaint”) (and, within five (5) days of
receipt of any Environmental Complaint the Borrower shall give the Administrative Agent a copy
thereof), and to the best of Borrower’s knowledge, after due inquiry, there have been no actions
commenced or threatened by any Person for non-compliance with any Environmental Laws which could
reasonably be expected to have a Material Adverse Effect.

     Section 5.10. Insurance. The properties and businesses of the Borrower and its Subsidiaries
are insured with financially sound and reputable insurance companies not Affiliates of the
Borrower, in such amounts, with such deductibles and covering such risks as are customarily carried
by companies of similar size engaged in similar businesses and owning similar properties in
localities where the Borrower or the applicable Subsidiary operates.

     Section 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. Neither any
Loan Party nor any Subsidiary thereof is party to any tax sharing agreement.

     Section 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 best 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.

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     (b) There are no pending or, to the best knowledge of the Borrower, threatened claims, actions
or other Litigation, 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.

     Section 5.13. Subsidiaries. As of the Closing Date, the Borrower has no Subsidiaries other
than those specifically disclosed in Part (a) of Schedule 5.13, and all of the outstanding
Equity Interests in such Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by a Loan Party in the amounts specified on Part (a) of Schedule 5.13. The
Borrower has no equity investments in any other corporation or entity other than those specifically
disclosed in Part (b) of Schedule 5.13. All of the outstanding Equity Interests in the
Borrower have been validly issued and are fully paid and nonassessable.

     Section 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.

     Section 5.15. Disclosure. Other than as described in the April 8-K, the Borrower has
disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or
other restrictions to which it or any of its Subsidiaries is subject, and all other matters known
to it, that, individually or in the aggregate, could reasonably be expected to result in a Material
Adverse Effect. No report, financial statement, certificate or other information furnished
(whether in writing or orally) by or on behalf of any Loan Party to the Administrative Agent or any
Lender in connection with the transactions contemplated hereby and the negotiation of this
Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or
supplemented by other information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to
projected financial information, the Borrower represents only that such information was prepared

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in good faith based upon assumptions believed to be reasonable at the time in light of the
facts, circumstances and conditions then known to the Borrower, and are not intended to be a
guaranty of future financial performance.

     Section 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.

     Section 5.17. Intellectual Property; Licenses, Etc. The Borrower and its Subsidiaries own, or
possess the right to use, all of the material trademarks, service marks, trade names, copyrights,
patents, patent rights, franchises, licenses and other intellectual property rights (collectively,
“IP Rights”) that are necessary for the operation of their respective businesses, without
conflict with the rights of any other Person. To the best 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. No claim or Litigation regarding any of the foregoing is pending or, to
the best knowledge of the Borrower, threatened, which, either individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

     Section 5.18. Businesses. The Borrower is presently engaged directly or through wholly-owned
Subsidiaries in the business of providing energy management and conservation solutions through (a)
the design and installation of power generation systems and services that manage load curtailment
and peak demand conditions, enhance system reliability and provide customers with energy power and
(b) providing utilities with legal and regulatory consulting, energy system engineering and
construction, and energy conservation services..

     Section 5.19. Common Enterprise. The Borrower and its Subsidiaries are engaged in the
businesses set forth in Section 5.18 as of the Closing Date. These operations require
financing on a basis such that the credit supplied can be made available from time to time to the
Borrower and various of its Subsidiaries, as required for the continued successful operation of the
Borrower and its Subsidiaries as a whole. The Borrower has requested the Lender to make credit
available hereunder primarily for the purposes set forth in Section 6.12 and generally for
the purposes of financing the operations of the Borrower and its Subsidiaries. The Borrower and
each of its Subsidiaries expects to derive benefit (and the Board of Directors (or other similar
governing body) of the Borrower and each of its Subsidiaries has determined that such Subsidiary
may reasonably be expected to derive benefit), directly or indirectly, from a portion of the credit
extended by the Lenders hereunder, both in its separate capacity and as a member of the group of
companies, since the successful operation and condition of the Borrower and each of its
Subsidiaries is dependent on the continued successful performance of the functions of the group as
a whole. The Borrower acknowledges that, but for the agreement by each of the Guarantors to
execute and deliver the Guaranty, the Administrative Agent and the Lenders would not have made
available the credit facilities established hereby on the terms set forth herein.

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     Section 5.20. Solvent. The Borrower is, and the Borrower and its Subsidiaries are on a
consolidated basis, Solvent.

     Section 5.21. Taxpayer Identification Number. The Borrower’s true and correct U.S. taxpayer
identification number is set forth on Schedule 10.02.

     Section 5.22. Employment and Labor Agreements. Except as listed on Schedule 5.22,
there are no collective bargaining agreements covering any employees of the Borrower or any of its
Subsidiaries.

     Section 5.23. Labor Matters. Except as disclosed on Schedule 5.23, there are no
strikes or other labor disputes against the Borrower or any of its Subsidiaries or, to the best of
Borrower’s knowledge, after due inquiry, threatened against the Borrower or any of its
Subsidiaries, which could reasonably be expected to have a Material Adverse Effect. Hours worked
by and payment made to employees of the Borrower or, to the best of the Borrower’s knowledge, after
due inquiry, any of the Borrower’s Subsidiaries have not been in violation of the Fair Labor
Standards Act or any other applicable law dealing with such matters which could reasonably be
expected to have a Material Adverse Effect. all payments due from the Borrower on account of
employee health and welfare insurance which could reasonably be expected to have a Material Adverse
Effect if not paid have been paid or, if not due, accrued as a liability on the books of the
Borrower.

ARTICLE VI.

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, 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:

     Section 6.01. Financial Statements. Deliver to the Administrative Agent, in form and detail
reasonably satisfactory to the Administrative Agent and the Required Lenders:

     (a) as soon as available, but in any event within 90 days after the end of each Fiscal Year of
the Borrower (commencing with the Fiscal Year ended 2007), 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 the case in comparative form the figures for the previous Fiscal Year, all in
reasonable detail and prepared in accordance with GAAP, such consolidated statements to be audited
and accompanied by a report and opinion of an independent certified public accountant of nationally
recognized standing reasonably acceptable to the Required Lenders (and the Lenders hereby confirm
that Hein & Associates LLP, the Borrower’s current independent certified public accountant, is
acceptable to the Required Lenders), which report and opinion shall be prepared in accordance with
generally accepted auditing standards and shall not be subject to any “going concern” or like
qualifications or exceptions as to the scope of such audit or with respect to the absence of any
material misstatement;

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     (b) as soon as available, but in any event within 45 days after the end of each Fiscal Quarter
of each Fiscal Year of the Borrower (commencing with the Fiscal Quarter ended June 30, 2007), a
consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as at the end of
such Fiscal Quarter, and the related consolidated and consolidating statements of income or
operations, and consolidated cash flows for such Fiscal Quarter (other than consolidated cash
flows, which shall be on a year-to-date basis) and for the portion of the Borrower’s Fiscal Year
then ended, setting forth, to the extent the information is available to the Borrower, 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, such
consolidated statements to be certified by a Responsible Officer of the Borrower as fairly
presenting the financial condition, results of operations 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 such consolidating statements to be certified by a Responsible Officer of
the Borrower to the effect that such statements are fairly stated in all material respects when
considered in relation to the consolidated financial statements of the Borrower and its
Subsidiaries;

     (c) as soon as available, and in any event within 45 days after the end of each Fiscal Quarter
of each Fiscal Year, a listing and aging of the Borrower’s Accounts (other than unbilled Accounts)
as of the end of such Fiscal Quarter, with aging of Accounts on the basis of current, 30, 60 and
over 90 days from the due date thereof.

     (d) as soon as available, but in any event within 30 days after the end of each Fiscal Year of
the Borrower, forecasts prepared by management of the Borrower, in form satisfactory to the
Administrative Agent, of consolidated balance sheets and statements of income or operations of the
Borrower and its Subsidiaries on a quarterly basis for the immediately following Fiscal Year
(including the Fiscal Year in which the Revolving Maturity Date and Term Maturity Date occur).

     As to any information contained in materials furnished pursuant to Section 6.02(d),
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 clauses (a) and (b) above at the times specified
therein.

     Section 6.02. Certificates; Other Information. Deliver to the Administrative Agent, in form
and detail satisfactory to the Administrative Agent:

     (a) 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;

     (b) promptly after any request by the Administrative Agent or any Lender, copies of any
detailed and final 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;

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     (c) 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 13 or 15(d) of the Exchange Act, and not
otherwise required to be delivered to the Administrative Agent pursuant hereto;

     (d) promptly, and in any event within five Business Days after receipt thereof by any Loan
Party or any Subsidiary thereof, copies of each notice or other correspondence received from the
SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or
possible investigation or other inquiry by such agency regarding financial or other operational
results of any Loan Party or any Subsidiary thereof; 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 Administrative Agent, at the request of any 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(c) (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 (i) 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 10.02; or
(ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative Agent); provided
that: (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent if
it or any Lender requests the Borrower to deliver such paper copies until a written request to
cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) the
Borrower shall notify the Administrative Agent (by telecopier or electronic mail) of the posting of
any such documents and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of 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(a) to the Administrative Agent. Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the delivery or to
maintain copies of the documents referred to above, and in any event shall have no responsibility
to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be
solely responsible for requesting from the Administrative Agent delivery to it of such documents.

     Section 6.03. Notices. Notify the Administrative Agent and each Lender:

     (a) promptly of the occurrence of any Default;

     (b) promptly of any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (i) any breach or non-performance of, or any default under, a
material Contractual Obligation of the Borrower or any Subsidiary; (ii) any dispute,

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Litigation, or suspension between the Borrower or any Subsidiary and any Governmental
Authority; or (iii) the commencement of, or any material development in, any Litigation affecting
the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws;

     (c) of the occurrence of any ERISA Event within 10 Business Days after the Borrower or an
ERISA Affiliate is notified or otherwise becomes aware of such ERISA Event; and

     (d) promptly 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.

     Section 6.04. Payment of Obligations. 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, 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; (b) all lawful claims
which, if unpaid, would by Law become a Lien upon any material portion of its property; and (c) all
Indebtedness (other than Indebtedness, individually or in the aggregate, not exceeding $200,000 in
principal amount), as and when due and payable, but subject to any applicable grace and/or cure
periods and further subject to any subordination provisions contained in any instrument or
agreement evidencing such Indebtedness.

     Section 6.05. Preservation of Existence, Etc. (a) 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 in the normal conduct of its business, except in a transaction permitted by Section
7.04 or 7.05; 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.

     Section 6.06. Maintenance of Properties. (a) 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.

     Section 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

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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 as otherwise required
pursuant to the Collateral Documents, and providing for not less than 30 days’ prior notice to the
Administrative Agent of termination, lapse or cancellation of such insurance.

     Section 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, writ, injunction
or decree is being contested in good faith by appropriate proceedings diligently conducted or a
bona fide dispute exists with respect thereto; or (b) the failure to comply therewith could not
reasonably be expected to have a Material Adverse Effect.

     Section 6.09. Books and Records. (a) 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 material requirements of any Governmental Authority having
regulatory jurisdiction over the Borrower or such Subsidiary, as the case may be.

     Section 6.10. Inspection Rights. Permit representatives and independent contractors of the
Administrative Agent 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, at
the expense of the Borrower, and at such reasonable times during normal business hours, upon no
less than two Business Days advance notice to the Borrower; provided, however, that
when an Event of Default exists and while the same is continuing the Administrative Agent or any
Lender (or any of their respective representatives or independent contractors) may do any of the
foregoing at any time during normal business hours and without advance notice.

     Section 6.11. Compliance with ERISA. Do, and cause each of its ERISA Affiliates to do, each
of the following: (a) maintain each Plan in compliance in all material respects with the
applicable provisions of ERISA, the Code and other Federal or state Law; (b) cause each Plan which
is qualified under Section 401(a) of the Code to maintain such qualification; unless the failure to
maintain such qualification would not violate the applicable provisions of ERISA, the Code and
other Federal or state Law to the extent, individually or in the aggregate, such violations could
not reasonably be expected to have a Material Adverse Effect, and (c) make all required
contributions to any Plan subject to Section 412 of the Code.

     Section 6.12. Use of Proceeds. Use the proceeds of the Credit Extensions for working capital,
Capital Expenditures to the extent permitted hereunder, and for other general corporate purposes
not in contravention of any Law or of any Loan Document; provided, however,
notwithstanding the foregoing, the proceeds of the Term Loans may only be used for Permitted
Acquisitions.

     Section 6.13. Further Assurances. Within five Business Days of a request by the
Administrative Agent, the Borrower shall or shall cause any of the Guarantors or other Subsidiaries
whose Equity Interests are being pledged hereunder to execute and deliver such

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further documents and do such other acts and things as the Administrative Agent may reasonably
request in order to effect fully the purposes of this Agreement and the other Loan Documents and to
provide for payment of the Obligations in accordance with the terms of this Agreement and the other
Loan Documents.

     Section 6.14. Subsidiaries and Other Assets. Within ten Business Days after the time that any
Person becomes a Domestic Subsidiary as a result of an Acquisition, the creation of such Subsidiary
or otherwise, then, unless such Domestic Subsidiary is merged into the Borrower or a Subsidiary
Loan Party (with the Borrower or such Subsidiary Loan Party being the surviving Person) prior to
the expiration of such ten Business Day period, (a) such Subsidiary shall execute a Guaranty of the
Obligations, a Security Agreement, and any related Collateral Documents reasonably required by the
Administrative Agent, to secure the Secured Obligations, and (b) 100% of such Subsidiary’s Equity
Interest shall be pledged to secure the Secured Obligations, and (c) the Lenders shall receive such
board resolutions, officer’s certificates, corporate and other documents and opinions of counsel as
the Administrative Agent shall reasonably request in connection with the actions described in
subsections (a) and (b) above. Within thirty days after the time that any Person becomes a Foreign
Subsidiary as a result of the creation of such Subsidiary or otherwise, (a) 65% of such
Subsidiary’s Equity Interest shall be pledged to secure the Obligations and (b) the Lenders shall
receive such board resolutions, officer’s certificates, corporate and other documents and opinions
of counsel as the Administrative Agent shall reasonably request in connection with such pledge.

     Section 6.15. Post-Closing Deliveries. Without limiting the generality of Section 6.13
of this Agreement, deliver to the Administrative Agent the items described in the Post-Closing
Letter on or before the applicable date set forth in the Post-Closing Letter.

ARTICLE VII.

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, the Borrower shall not, nor shall it permit any
Subsidiary to, directly or indirectly, without the prior written consent of the Required Lenders:

     Section 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 (i) the property covered thereby is not supplemented,
(ii) the amount secured or benefited thereby is not increased, and (iii) 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 and payable 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;

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     (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, 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 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) judgment Liens which would not constitute an Event of Default;

     (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;

     (j) licenses (with respect to intellectual property Collateral and other property), leases or
subleases granted to third parties in accordance with any applicable terms of the Loan Documents
and not interfering in any material respect with the ordinary conduct of the business of the
Borrower or any of its Subsidiaries or resulting in a material diminution in the value of any
Collateral as security for the Secured Obligations;

     (k) any (i) interest or title of a lessor or sublessor under any lease not prohibited by this
Agreement, (ii) Lien or restriction that the interest or title of such lessor or sublessor may be
subject to, or (iii) subordination of the interest of the lessee or sublessee under such lease to
any Lien or restriction referred to in the preceding clause (ii), so long as the holder of such
Lien or restriction agrees to recognize the rights of such lessee or sublessee under such lease;

     (l) Liens arising from filing UCC financing statements relating solely to leases not
prohibited by this Agreement;

     (m) any zoning or similar law or right reserved to or vested in any Governmental Authority to
control or regulate the use of any real property;

     (n) Liens arising out of conditional sale or title retention, consignment or similar
arrangements for the sale of good entered into by the Borrower or any of its Subsidiaries in the
ordinary course of business and not prohibited by this Agreement;

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     (o) Liens in favor of Caterpillar Financial Services Corporation related to generators and
related equipment for PowerSecure Shared Savings Projects and sold to the Borrower or any of its
Subsidiaries and any renewals and extensions thereof, provided that the aggregate principal amount
of Indebtedness secured thereby does not exceed $7,500,000;

     (p) Liens with respect to vehicle leases of the Borrower and its Subsidiaries entered into in
the ordinary course of business; and

     (q) Liens with respect to operating leases of copiers, fax machines and similar office
equipment in the ordinary course of business.

     Section 7.02. Investments. Make any Investments, except:

     (a) Investments not otherwise permitted by subsections (b) through (l) below existing on the
date hereof and listed on Schedule 7.02;

     (b) Investments held by the Borrower or such Subsidiary in the form of Cash and Cash
Equivalents and Investments by the Borrower or such Subsidiary in accounts at Citibank;

     (c) Investments received in connection with the bankruptcy or reorganization of, or settlement
of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary
course of business;

     (d) Investments as Capital Expenditures;

     (e) Investments of any Subsidiary in the Borrower or any Subsidiary Loan Party or Investments
by the Borrower in any Subsidiary Loan Party;

     (f) Investments constituting (i) accounts receivable arising, (ii) trade debt granted, or
(iii) deposits made in connection with the purchase price of goods or services, in each
case, in the ordinary course of business;

     (g) Investments consisting of (i) any deferred portion of the sales price or (ii) non-cash
consideration, in each case, received by the Borrower or any Subsidiary in connection with any
Disposition permitted under Section 7.05;

     (h) Investments in respect of loans and advances made by the Borrower and its Subsidiaries in
the ordinary course of business to their respective directors, officers and employees, so long as
the aggregate principal amount thereof at any one time outstanding does not exceed $50,000 in the
aggregate for all such Persons;

     (i) Investments pursuant to Swap Contracts permitted pursuant to Section 7.03(d);

     (j) Investments in the ordinary course of business consisting of endorsements for collection
or deposit;

     (k) Investments in the form of Permitted Acquisitions; and

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     (l) Investments not otherwise permitted pursuant to clauses (a) through (k) above made by the
Borrower and its Subsidiaries in an aggregate amount not to exceed $100,000 at any time
outstanding.

     Section 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, 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 (each a “Permitted Refinancing”);

     (c) Guarantees of the Borrower or any Subsidiary Loan Party in respect of Indebtedness of the
Borrower or any Subsidiary Loan Party otherwise permitted hereunder;

     (d) obligations (contingent or otherwise) of the Borrower or any Subsidiary existing or
arising under any Swap Contract with any Lender (or Affiliate thereof) for the purpose of directly
mitigating risks associated with respect to the Loans outstanding under this Agreement;

     (e) Indebtedness (i) evidencing the deferred purchase price of newly acquired property or
incurred to finance the acquisition of other assets of the Borrower or its Subsidiaries (pursuant
to purchase money mortgages or otherwise, whether owed to the seller or a third party) used in the
ordinary course of business of the Borrower or its Subsidiaries and any Indebtedness assumed in
connection with such acquisition (provided that such Indebtedness is incurred within 180
days of the acquisition of such property other assets) and contingent obligations of the borrower
and its Subsidiaries in respect of such Indebtedness, (ii) in respect of Capital Leases and
contingent obligations of the Borrower and its Subsidiaries in respect of such Indebtedness and
(iii) any Permitted Refinancing of Indebtedness referred to in clauses (i) and (ii);
provided that the aggregate principal amount of all Indebtedness outstanding pursuant to
this Section 7.03(e) shall not at any time exceed $100,000;

     (f) Indebtedness of (i) the Borrower or any Subsidiary Loan Party owing to the Borrower or any
Subsidiary Loan Party and (ii) the Borrower or any of its Subsidiaries owing to a Subsidiary which
is not a Loan Party so long as the repayment obligations of the Borrower or any Subsidiary Loan
Party are subordinated to the repayment in full of the Obligations on terms and conditions that are
reasonably satisfactory to the Administrative Agent;

     (g) the Founders Severance Payments; and

     (h) other unsecured Indebtedness, either (i) the Net Cash Proceeds of which are applied in
accordance with Section 2.06(c) or (ii) not otherwise permitted pursuant to clauses (a)
through (g) above incurred by the Borrower and its Subsidiaries not to exceed $100,000 in aggregate
amount at any time outstanding.

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     Section 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 Subsidiary Loan Party is merging with another Subsidiary, the Subsidiary Loan Party
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 Subsidiary Loan Party, then the transferee must either be the
Borrower or a Subsidiary Loan Party.

     Section 7.05. Dispositions. Make any Disposition or enter into any agreement to make any
Disposition, except:

     (a) Dispositions of inventory or obsolete, damaged, worn out or surplus property in the
ordinary course of business;

     (b) Dispositions by the Borrower or any Subsidiary to the Borrower or any Subsidiary Loan
Party (including any Disposition effected pursuant to a merger, consolidation, liquidation or
dissolution permitted under Section 7.04);

     (c) Dispositions to the extent constituting a Restricted Payment permitted by Section
7.06;

     (d) Dispositions of overdue accounts receivable arising in the ordinary course of business,
but only in connection with the collection or compromise thereof;

     (e) Dispositions of Cash and Cash Equivalents in the ordinary course of business;

     (f) Dispositions not otherwise permitted in clauses (a) through (e) above, provided,
that (i) at the time of such Disposition no Default exists or would result from such Disposition
and (ii) the aggregate Book Value of all property disposed of in reliance on this clause (f) in any
Fiscal Year shall not exceed $150,000;

     (g) so long as there exists no Default immediately before and after giving effect to any such
transaction, Dispositions not otherwise permitted in clauses (a) through (f) above, the Net Cash
Proceeds of which are used within 120 days of such Disposition to purchase assets useful in the
business of the Borrower and its Subsidiaries, provided that (i) the aggregate amount of Net Cash
Proceeds outstanding and pending reinvestment pursuant to this clause (g) shall not exceed $50,000
and (ii) if such Net Cash Proceeds are not used within such 120 days to purchase assets useful in
the business of the Borrower and its Subsidiaries, then such Net Cash Proceeds shall be applied in
accordance with Section 2.05(d); and

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     (h) Disposition by the Borrower of assets and Equity Interests as disclosed to the
Administrative Agent in writing prior to the Closing Date;

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

     Section 7.06. Restricted Payments. Declare or make, directly or indirectly, any Restricted
Payment, or incur any obligation (contingent or otherwise) to do so, except so long as no Default
shall have occurred and be continuing at the time of any action described below or would result
therefrom:

     (a) each Subsidiary may declare and pay Dividends to the Borrower or any Subsidiary Loan
Party;

     (b) the Borrower and each Subsidiary may declare and make Dividends payable solely in the
common stock or other common Equity Interests of such Person;

     (c) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity
Interests issued by it with the proceeds received from the substantially concurrent issue of new
shares of its common stock or other common Equity Interests;

     (d) the Borrower and each Subsidiary may make regularly scheduled payments of principal and
interest on Indebtedness;

     (e) the Borrower may declare and pay Dividends; and

     (f) the Borrower may repurchase its common Equity Interests pursuant to stock option plans
approved by its Board of Directors.

     Section 7.07. ERISA. At any time engage in a transaction which could be subject to Section
4069 or 4212(c) of ERISA, or permit any Plan to (a) engage in any non-exempt “prohibited
transaction” (as defined in Section 4975 of the Code); (b) fail to comply with ERISA or any other
Applicable Laws; or (c) incur any material “accumulated funding deficiency” (as defined in Section
302 of ERISA), which, with respect to each event listed above, could be reasonably expected to have
a Material Adverse Effect.

     Section 7.08. 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 and business activities that are ancillary or related thereto; provided
that the Borrower shall not conduct any business other than performance of its obligations under
the Loan Documents or own any material assets other than (a) Equity Interests in Subsidiaries, (b)
Cash and Cash Equivalents, and (c) other supplies, equipment and similar assets not in excess of
$250,000.

     Section 7.09. Transactions with Affiliates. Enter into any transaction of any kind with any
Affiliate of the Borrower (other than a Subsidiary Loan Party), other than arm’s-length
transactions with Affiliates that are otherwise permitted hereunder and which are on fair and
reasonable terms substantially as favorable to the Borrower or any Subsidiary as would be

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obtainable by the Borrower or such Subsidiary in a comparable arm’s-length transaction with a
Person other than an Affiliate.

     Section 7.10. 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 to otherwise transfer property to the Borrower, (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.

     Section 7.11. Use of Proceeds. Use the proceeds of (a) 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 Board) or to extend credit to others for the
purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for
such purpose or (b) any Term Loan for other than a Permitted Acquisition.

     Section 7.12. Financial Covenants.

     (a) Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage Ratio as of the end
of any Fiscal Quarter of the Borrower to be less than 1.75 to 1.00.

     (b) Leverage Ratio. Permit the Leverage Ratio as of the end of any Fiscal Quarter of
the Borrower to exceed 2.75 to 1.00.

     (c) Asset Coverage Ratio. Permit the Asset Coverage Ratio at any time to be less than
1.25 to 1.00.

     Section 7.13. Capital Expenditures. Make or become legally obligated to make any Capital
Expenditure in an aggregate amount during any Fiscal Year in excess of $2,000,000.

     Section 7.14. Fiscal Year and Accounting Methods. Change its Fiscal Year or its method of
accounting other than (a) changes as required by GAAP or (b) changes required by Applicable Law.

     Section 7.15. Limitation on Restrictive Agreements. Enter into any agreement or instrument
that prohibits the Borrower from entering into any amendment, supplement, modification or
restatement of this Agreement.

     Section 7.16. Issuance of Equity Interests. Make any Equity Issuance except:

     (a) Equity Interests in respect of any initial capitalization of a Subsidiary;

     (b) Qualified Equity Interests of Subsidiaries issued to the Borrower and, if required under
this Agreement or any other Loan Document, pledged to the Administrative Agent;

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     (c) an Equity Issuance in which the Net Equity Proceeds thereof are applied as required
pursuant to Section 2.05(e);

     (d) Equity Interests under the Borrower’s 1998 Stock Incentive Plan, as amended and restated,
including but not limited to granting stock options, issuing restricted stock and restricted stock
units, and issuing shares of common Equity Interests underlying stock options and restricted stock
units; and

     (e) shares of common Equity Interests underlying outstanding warrants.

     Notwithstanding anything in this Article VII or elsewhere in this Agreement to the
contrary, in no event shall the Borrower permit (a) any Inactive Subsidiary to conduct any business
and (b) the Inactive Subsidiaries to own assets in excess of $100,000 in aggregate value.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

     Section 8.01. Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. The Borrower or any other Loan Party fails to pay (i) when due and
payable and as required to be paid herein, any amount of principal of any Loan or any L/C
Obligation, or (ii) within three Business Days after the same becomes due, any interest on any Loan
or on any L/C Obligation, or any commitment or other fee due hereunder, or (iii) within five days
after the Borrower receives written notice from the Administrative Agent specifying the amount is
due and payable, any other amount payable hereunder or under any other Loan Document; or

     (b) Specific Covenants. Any Loan Party fails to perform or observe any term, covenant
or agreement contained in (i) any of Section 6.03(a), 6.10, 6.12, or
Article VII (other than Section 7.01) required to be performed or observed by it or
(ii) Section 7.01 required to be performed or observed by it, and, in the case of clause
(ii) only, such failure continues for 15 days after the earlier of (A) the Borrower’s knowledge and
(B) the Borrower receives written notice thereof specifying such default from the Administrative
Agent; or

     (c) Other Defaults. The Borrower or any other Loan Party 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 after
the earlier of (i) the Borrower’s knowledge and (ii) the Borrower receives written notice thereof
specifying the default from the Administrative Agent; or

     (d) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party
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

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     (e) Cross-Default. (i) The Borrower or any other Loan Party (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,
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 $200,000 after the giving of any required notice and
the expiration of any applicable grace period, 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, in
each case, 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, after the
giving of any required notice and the expiration of any applicable grace period, 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; (ii) there occurs under any Swap Contract an Early 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 other Loan Party 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 other Loan Party as a result thereof is greater than
$100,000 and the amount of the Swap Termination Value remains unpaid for a period of 10 days; or
(iii) the Borrower or any other Loan Party shall default in the payment when due, or in the
performance or observance, of any material obligation or material condition of any Contractual
Obligation (other than any Indebtedness) the result of which could reasonably be expected to have a
Material Adverse Effect, unless, but only as long as, the existence of any such default is being
contested by the Borrower or such other Loan Party in good faith by appropriate proceedings and
adequate reserves in respect thereof have been established on the books of the Borrower or such
other Loan Party to the extent required by GAAP; or

     (f) Insolvency Proceedings, Etc. The Borrower or any other Loan Party institutes or
consents to the institution of any proceeding under any Debtor Relief Law in which such Person is
the debtor, 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 other Loan Party
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

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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 other Loan Party (i) a
final judgment or order for the payment of money in an aggregate amount exceeding $200,000 (to the
extent not covered by independent third-party insurance or surety bond as to which the insurer or
surety 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) such judgment or order shall continue unsatisfied, undischarged and
unstayed for a period of 30 days; 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, 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 $100,000; or

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

     (k) Change of Control. There occurs any Change of Control.

     Section 8.02. Remedies Upon Event of Default. If any Event of Default occurs and is
continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the
Required Lenders, take any or all of the following actions:

     (a) declare the commitment of each Lender to make Loans and 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 Loans, 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 the Borrower;

     (c) require that the Borrower Cash Collateralize the L/C Obligations in an amount equal to the
then Outstanding Amount thereof; and

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     (d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and remedies
available to it, the Lenders and the L/C Issuer 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 the Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and
all interest and other amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall
automatically become effective, in each case without further act of the Administrative Agent or any
Lender.

     Section 8.03. Application of Funds. After the exercise of remedies provided for in
Section 8.02 (or after the Loans have automatically become immediately due and payable and
the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the
proviso to Section 8.02), any amounts received on account of the Obligations shall be
applied by the Administrative Agent in the following order:

     First, to payment of that portion of the Secured Obligations constituting fees,
indemnities, expenses and other amounts (including Attorney Costs and amounts payable under
Article III) payable to the Administrative Agent in its capacity as such;

     Second, to payment of that portion of the Secured Obligations constituting fees,
indemnities and other amounts (other than principal and interest) payable to the Lenders (including
Attorney Costs and amounts payable under Article III), ratably among them in proportion to
the amounts described in this clause Second payable to them;

     Third, to payment of that portion of the Secured Obligations constituting accrued and
unpaid interest on the Loans, ratably among the Lenders in proportion to the respective amounts
described in this clause Third payable to them;

     Fourth, to payment of that portion of the Secured Obligations constituting unpaid
principal of the Loans and Swap Obligations, ratably among the Guarantied Parties (as defined in
the Guaranties) and the Secured Creditors (as defined in the Security Agreement) in proportion to
the respective amounts described in this clause Fourth held by them;

     Fifth, to payment of Cash Management Obligations, ratably among the Guarantied Parties
and the Secured Creditors in proportion to the respective amounts described in this clause
Fifth held by them;

     Sixth, to payment of any other Secured Obligations, ratably among the Guarantied
Parties and the Secured Creditors in proportion to the respective amounts described in this clause
Sixth  held by them; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly paid in
full, to the Borrower or as otherwise required by Law.

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ARTICLE IX.

ADMINISTRATIVE AGENT

     Section 9.01. Appointment and Authority. Each of the Lenders and the L/C Issuer hereby
irrevocably appoints Citibank to act on its behalf as the Administrative Agent hereunder and under
the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf
and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and
the L/C Issuer, and neither the Borrower nor any other Loan Party shall have rights as a third
party beneficiary of any of such provisions.

     Section 9.02. Rights as a Lender. The Person serving as the Administrative Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise requires, include the
Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with the Borrower or any
Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder
and without any duty to account therefor to the Lenders.

     Section 9.03. Exculpatory Provisions. The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan Documents. Without
limiting the generality of the foregoing, the Administrative Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan
Documents that the Administrative Agent is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided
for herein or in the other Loan Documents), provided that the Administrative Agent shall
not be required to take any action that, in its opinion or the opinion of its counsel, may expose
the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law;
and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as
the Administrative Agent or any of its Affiliates in any capacity.

     The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in

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good faith shall be necessary, under the circumstances as provided in Sections 10.01 and
8.02) or (ii) in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to the Administrative Agent by the Borrower, a Lender or the L/C
Issuer.

     The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Administrative Agent.

     Section 9.04. Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the
Administrative Agent may presume that such condition is satisfactory to such Lender unless the
Administrative Agent shall have received notice to the contrary from such Lender or the L/C Issuer
prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative
Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

     Section 9.05. Delegation of Duties. The Administrative Agent may perform any and all of its
duties and exercise its rights and powers hereunder or under any other Loan Document by or through
any one or more sub-agents (which may be other Affiliates of Citibank) appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of
its duties and exercise its rights and powers by or through their respective Related Parties. The
exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties
of the Administrative Agent and any such sub-agent, and shall apply to their respective activities
in connection with the syndication of the credit facilities provided for herein as well as
activities as Administrative Agent.

     Section 9.06. Resignation of Administrative Agent. The Administrative Agent may at any time
give notice of its resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of
any such notice of resignation, the Required Lenders shall have the right, with approval of the
Borrower so long as no Event of Default is in existence (which approval shall not

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be unreasonably withheld or delayed), to appoint a successor, which shall be a bank with an
office in the United States, or an Affiliate of any such bank with an office in the United States.
If no such successor shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may on behalf of the Lenders and the L/C Issuer
and, so long as no Event of Default is in existence, with approval of the Borrower (which approval
shall not be unreasonably withheld or delayed), appoint a successor Administrative Agent meeting
the qualifications set forth above; provided that if the Administrative Agent shall notify
the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents (except that in the case of any Collateral held by the Administrative Agent on
behalf of the Lenders under any of the Loan Documents, the retiring Administrative Agent shall
continue to hold such Collateral until such time as a successor Administrative Agent is appointed)
and (2) all payments, communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the L/C Issuer directly, until
such time as the Required Lenders appoint a successor Administrative Agent as provided for above in
this Section. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder,
such successor shall succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent
shall be discharged from all of its duties and obligations hereunder or under the other Loan
Documents (if not already discharged therefrom as provided above in this Section). The fees
payable by the Borrower to a successor Administrative Agent shall be the same as those payable to
its predecessor unless otherwise agreed between the Borrower and such successor. After the
retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the
provisions of this Article and Section 10.04 shall continue in effect for the benefit of
such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect
of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent
was acting as Administrative Agent.

     Any resignation by Citibank as Administrative Agent pursuant to this Section shall also
constitute its resignation as L/C Issuer. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring L/C Issuer, (b) the retiring L/C Issuer
shall be discharged from all of their respective duties and obligations hereunder or under the
other Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of
the retiring L/C Issuer with respect to such Letters of Credit.

     Section 9.07. Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the L/C
Issuer acknowledges that it has, independently and without reliance upon the Administrative Agent
or any other Lender or any of their Related Parties and based on such documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.
Each Lender and the L/C Issuer also acknowledges that it will, independently and without reliance
upon the Administrative Agent or any other Lender or

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any of their Related Parties and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not taking action under
or based upon this Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

     Section 9.08. Administrative Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether the Administrative
Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention
in such proceeding or otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to have the claims of
the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other amounts due the Lenders
and the Administrative Agent under Sections 2.04(i) and (j), 2.09 and
10.04) allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, in the event that the Administrative Agent shall consent
to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.09 and 10.04.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the
L/C Issuer or to authorize the Administrative Agent to vote in respect of the claim of any Lender
or the L/C Issuer in any such proceeding.

     Section 9.09. Collateral and Guaranty Matters. The Lenders and the L/C Issuer irrevocably
authorize the Administrative Agent, at its option and in its discretion,

     (a) to release any Lien on any property granted to or held by the Administrative Agent under
any Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all
Obligations (other than contingent indemnification obligations) and the expiration or termination
of all Letters of Credit, (ii) that is sold or to be sold as part of or in

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connection with any sale permitted hereunder or under any other Loan Document, or (iii)
subject to Section 10.01, if approved, authorized or ratified in writing by the Required
Lenders;

     (b) to subordinate any Lien on any property granted to or held by the Administrative Agent
under any Loan Document to the holder of any Lien on such property that is permitted by Section
7.01(i); and

     (c) to release on behalf of the Administrative Agent and the Lenders any Guarantor from its
obligations under its Guaranty and under the other Loan Documents (i) upon termination of the
Aggregate Commitments and payment in full of all Secured Obligations (other than contingent
indemnification obligations) and the expiration or termination of all Letters of Credit, (ii) if
such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder or (iii)
subject to Section 10.01, if approved, authorized or ratified in writing, by the Lenders
required for such action.

     Upon request by the Administrative Agent at any time, the Required Lenders will confirm in
writing the Administrative Agent’s authority to release or subordinate its interest in particular
types or items of property, or to release any Guarantor from its obligations under its Guaranty
pursuant to this Section 9.09.

ARTICLE X.

MISCELLANEOUS

     Section 10.01. 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 or any other Loan Party
therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or
the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and
each such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such amendment, waiver or
consent shall:

     (a) waive any condition set forth in Section 4.01(a) without the written consent of
each Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment
(excluding mandatory prepayments) of principal, interest, fees or other amounts due to the Lenders
(or any of them) hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees
or other amounts payable hereunder or under any other Loan Document without the written consent of
each Lender directly affected thereby; provided, however, that only the consent of
the Required Lenders shall be necessary (i) to amend the definition of “Default Rate” or to waive

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any obligation of the Borrower to pay interest at the Default Rate or (ii) to amend the
Leverage Ratio (or any defined term used therein) even if the effect of such amendment would be to
reduce the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable hereunder;

     (e) change Section 2.13 or Section 8.03 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Lender directly
affected thereby;

     (f) change any provision of this Section, the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder,
without the written consent of each Lender;

     (g) release any Guarantor from its Guaranty without the written consent of each Lender, unless
otherwise permitted pursuant to clause (i) or (ii) of Section 9.09(c); or

     (h) release all or substantially all of the Collateral without the written consent of each
Lender, unless otherwise permitted by Section 9.09(a);

and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed
by the L/C Issuer in addition to the Lenders required above, affect the rights or duties of the L/C
Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to be
issued by it; and (ii) no amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Lenders required above, affect the rights or duties of the
Administrative Agent under this Agreement or any other Loan Document. Notwithstanding anything to
the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any
amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be
increased or extended without the consent of such Lender.

     Section 10.02. Notices; Effectiveness; Electronic Communication.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (b) below), all
notices and other communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as
follows, and all notices and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Borrower, the Administrative Agent or the L/C Issuer to the address,
telecopier number, electronic mail address or telephone number specified for such Person on
Schedule 10.02; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire; and

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have

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been given when sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next Business Day for the
recipient). Notices delivered through electronic communications to the extent provided in
subsection (b) below, shall be effective as provided in such subsection (b).

     (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuer hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C
Issuer pursuant to Article II if such Lender or the L/C Issuer has notified the
Administrative Agent that it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications.

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

     (c) In no event shall the Administrative Agent or any of its Related Parties (collectively,
the “Agent Parties”) have any liability to the Borrower, any Lender, the L/C Issuer or any
other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort,
contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of
Borrower Materials through the Internet, except to the extent that such losses, claims, damages,
liabilities or expenses are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence or willful misconduct of such
Agent Party; provided, however, that in no event shall any Agent Party have any
liability to the Borrower, any Lender, the L/C Issuer or any other Person for indirect, special,
incidental, consequential or punitive damages (as opposed to direct or actual damages).

     (d) Change of Address, Etc. Each of the Borrower, the Administrative Agent and the
L/C Issuer may change its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto. Each other Lender may change its
address, telecopier or telephone number for notices and other communications hereunder by notice to
the Borrower, the Administrative Agent and the L/C Issuer. In addition, each Lender agrees to
notify the Administrative Agent from time to time to ensure that the Administrative Agent has on
record (i) an effective address, contact name, telephone number, telecopier number and electronic
mail address to which notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

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     (e) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including
telephonic Revolving Loan 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
Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of them 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. All telephonic notices to and other telephonic
communications with the Administrative Agent may be recorded by the Administrative Agent, and each
of the parties hereto hereby consents to such recording.

     Section 10.03. No Waiver; Cumulative Remedies. No failure by any Lender, the L/C Issuer or
the Administrative Agent to exercise, and no delay by any such Person 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.

     Section 10.04. Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. The Borrower shall pay within 30 days after demand thereof
(i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates
(including the reasonable fees, charges and disbursements of counsel for the Administrative Agent),
in connection with the syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the other Loan Documents
or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder, and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, any Lender or the L/C Issuer
(including the reasonable fees, charges and disbursements of any counsel for the Administrative
Agent, any Lender or the L/C Issuer), in connection with the enforcement or protection of its
rights (A) in connection with this Agreement and the other Loan Documents, including its rights
under this Section or (B) in connection with the Loans made or Letters of Credit issued hereunder,
including all such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

     (b) INDEMNIFICATION BY THE BORROWER. THE BORROWER SHALL INDEMNIFY THE ADMINISTRATIVE
AGENT (AND ANY SUB-AGENT THEREOF), EACH LENDER AND THE L/C ISSUER, AND EACH RELATED PARTY OF ANY OF
THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD
EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED
EXPENSES (INCLUDING THE REASONABLE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY
INDEMNITEE), INCURRED BY ANY INDEMNITEE OR ASSERTED AGAINST ANY

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INDEMNITEE BY ANY THIRD PARTY OR BY THE BORROWER OR ANY OTHER LOAN PARTY ARISING OUT OF, IN
CONNECTION WITH, OR AS A RESULT OF (I) THE EXECUTION OR DELIVERY OF THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE PERFORMANCE BY THE
PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THEREUNDER, THE CONSUMMATION OF THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR, IN THE CASE OF THE ADMINISTRATIVE AGENT (AND ANY
SUB-AGENT THEREOF) AND ITS RELATED PARTIES ONLY, THE ADMINISTRATION OF THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS, (II) ANY LOAN OR LETTER OF CREDIT OR THE USE OR PROPOSED USE OF THE PROCEEDS
THEREFROM (INCLUDING ANY REFUSAL BY THE L/C ISSUER TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF
CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE
TERMS OF SUCH LETTER OF CREDIT), (III) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS
MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS SUBSIDIARIES, OR
ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR ANY OF ITS SUBSIDIARIES, OR (IV)
ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE
FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER BROUGHT BY A THIRD PARTY OR
BY THE BORROWER OR ANY OTHER LOAN PARTY, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY
THERETO, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; PROVIDED THAT SUCH
INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS,
DAMAGES, LIABILITIES OR RELATED EXPENSES (X) ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY
FINAL JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE
OR (Y) RESULT FROM A CLAIM BROUGHT BY THE BORROWER OR ANY OTHER LOAN PARTY AGAINST AN INDEMNITEE
FOR BREACH IN BAD FAITH OF SUCH INDEMNITEE’S OBLIGATIONS HEREUNDER OR UNDER ANY OTHER LOAN
DOCUMENT, IF THE BORROWER OR SUCH LOAN PARTY HAS OBTAINED A FINAL JUDGMENT IN ITS FAVOR ON SUCH
CLAIM AS DETERMINED BY A COURT OF COMPETENT JURISDICTION.

     (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it
to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party of any
of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the L/C Issuer, or such Related Party, as the case may be, such Lender’s applicable Pro
Rata Share (determined as of the time that the applicable unreimbursed expense or indemnity payment
is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified
loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity as such,
or against any Related Party of any of the foregoing acting for the

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Administrative Agent (or any
such sub-agent) or the L/C Issuer in connection with such capacity.
The obligations of the Lenders under this subsection (c) are subject to the provisions of
Section 2.13(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
Applicable Law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee,
on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.
No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the
use by unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby or thereby unless
such damages are determined by a court of competent jurisdiction by final judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee.

     (e) Payments. All amounts due under this Section shall be payable not later than 30
days after demand therefor.

     (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the L/C Issuer, the replacement of any Lender, the termination of the
Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

     Section 10.05. Payments Set Aside. To the extent that any payment by or on behalf of the
Borrower is made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative
Agent, the L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds
of such setoff 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
Administrative Agent, the L/C Issuer or such 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 (a) 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 setoff had not occurred, and (b) each Lender and the L/C Issuer severally
agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of
any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the
date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds
Rate from time to time in effect. The obligations of the Lenders and the L/C Issuer under clause
(b) of the preceding sentence shall survive the payment in full of the Obligations and the
termination of this Agreement.

     Section 10.06. Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and

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assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign
or otherwise transfer any of its rights or obligations hereunder or under any other Loan
Document (except as expressly contemplated by Section 7.04) without the prior written
consent of the Administrative Agent and each Lender and no Lender may 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 (d) of this Section, or (iii) by way of pledge or assignment of a
security interest subject to the restrictions of subsection (f) 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 (d) of this Section and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any 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 its Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations) at the time owing to it); provided that

     (i) except in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to
a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal outstanding balance
of the Loans of the assigning Lender subject to each such assignment, determined as of the
date the Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as
of the Trade Date, shall not be less than $1,000,000 unless each of the Administrative Agent
and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed);

     (ii) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations with respect to its Revolving Commitment
and its portion of the Term Loan;

     (iii) any assignment of a Commitment must be approved by the Administrative Agent and
the L/C Issuer unless the Person that is the proposed assignee is itself a Lender (whether
or not the proposed assignee would otherwise qualify as an Eligible Assignee); and

     (iv) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500
(which fee shall not be reimburseable by any Loan Party), and the Eligible Assignee, if it
shall not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

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Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04
with respect to facts and circumstances occurring prior to the effective date of such assignment).
Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this subsection shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with subsection (d) of
this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by each of the Borrower and the L/C Issuer at any reasonable time
and from time to time upon reasonable prior notice. In addition, at any time that a request for a
consent for a material or substantive change to the Loan Documents is pending, any Lender wishing
to consult with other Lenders in connection therewith may request and receive from the
Administrative Agent a copy of the Register.

     (d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, 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 such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations) owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such 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 such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to
Section 10.01 that directly affects such Participant. Subject to subsection (e) of this
Section,

86

 

the Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05 to the same extent as if it were a 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 10.08 as though it
were a Lender, provided such Participant agrees to be subject to Section 2.13 as
though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable 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 would be a Foreign Lender if it were a Lender 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 comply with
Section 3.01(e) as though it were a Lender.

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

     (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state Laws based on
the Uniform Electronic Transactions Act.

     (h) Resignation as L/C Issuer after Assignment. Notwithstanding anything to the
contrary contained herein, if at any time Citibank assigns all of its Commitment and Loans pursuant
to subsection (b) above, Citibank may, upon 30 days’ notice to the Borrower and the Lenders, resign
as L/C Issuer. In the event of any such resignation as L/C Issuer, the Borrower shall be entitled
to appoint from among the Lenders a successor L/C Issuer hereunder provided such Lender has
consented to such appointment; provided, however, that no failure by the Borrower
to appoint any such successor shall affect the resignation of Citibank as L/C Issuer. If Citibank
resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of the L/C
Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its
resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to
require the Lenders to make Alternate Base Rate Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.04(c)). Upon the appointment of a successor L/C Issuer, (a)
such successor shall succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring L/C Issuer, and (b) the successor L/C Issuer shall issue letters of credit
in substitution for the Letters of Credit, if any, outstanding at the time of such

87

 

succession or make other arrangements satisfactory to Citibank to effectively assume the
obligations of Citibank with respect to such Letters of Credit.

     Section 10.07. Treatment of Certain Information; Confidentiality. Each of the Administrative
Agent, the Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its Affiliates’ and to its
Affiliates’ respective partners, directors, officers, employees, agents, advisors and
representatives who are, or are expected to be, engaged in evaluating, approving, structuring or
administering the credit facility provided herein (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 purporting to have jurisdiction over it (including any self-regulatory authority, such as
the National Association of Insurance Commissioners), (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 Administrative Agent, any Lender, the L/C Issuer or any of their
respective Affiliates on a nonconfidential basis from a source other than the Borrower.

     For purposes of this Section, “Information” means all information received from the
Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of their respective
businesses, other than any such information that is available to the Administrative Agent or any
Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by the Borrower or any
Subsidiary, provided that, in the case of information received from the Borrower or any
Subsidiary after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

     Section 10.08. Set-off. If an Event of Default shall have occurred and be continuing, each
Lender, the L/C Issuer and each of their Affiliates is hereby authorized at any time and from time
to time, without prior notice to the Borrower or any other Loan Party, to the fullest extent
permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final, in whatever currency) at any time held and other obligations (in
whatever currency) at any time owing by such Lender, the L/C Issuer or any such Affiliate to or for
the credit or the account of the Borrower or any other Loan Party against any and all of the
obligations of the Borrower or such Loan Party now or hereafter existing under this Agreement or
any other Loan Document to such Lender or the L/C Issuer, irrespective of whether or not such
Lender or the L/C Issuer shall have made any demand under this Agreement or any other

88

 

Loan Document
and although such obligations of the Borrower or such Loan Party may be
contingent or unmatured or are owed to a branch or office of such Lender or the L/C Issuer
different from the branch or office holding such deposit or obligated on such indebtedness. The
rights of each Lender, the L/C Issuer and their Affiliates under this Section are in addition to
other rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer or
their Affiliates may have. Each Lender and the L/C Issuer agrees to notify the Borrower and the
Administrative Agent promptly after any such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and application.

     Section 10.09. 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 Highest Lawful Rate. If the Administrative Agent or any Lender shall receive interest
in an amount that exceeds the Highest Lawful Rate, the excess interest shall be applied to the
principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In
determining whether the interest contracted for, charged, or received by the Administrative Agent
or a Lender exceeds the Highest Lawful Rate, such Person 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.

     Section 10.10. Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

     Section 10.11. 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
Administrative Agent and each Lender, regardless of any investigation made by the Administrative
Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any
Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied.

     Section 10.12. 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

89

 

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.

     Section 10.13. Replacement of Lenders. If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01, if any
Lender is a Defaulting Lender or if any other circumstance exists hereunder that gives the Borrower
the right to replace a Lender as a party hereto, then the Borrower may, at its sole expense and
effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 10.06), all of its interests, rights and obligations under
this Agreement and the related Loan Documents to an assignee that shall assume such obligations
(which assignee may be another Lender, if a Lender accepts such assignment), provided that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee specified in
Section 10.06(b), unless the assignment is to replace a Defaulting Lender;

     (b) such Lender shall have received payment of an amount equal to the outstanding principal of
its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter; and

     (d) such assignment does not conflict with Applicable Laws.

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

     Section 10.14. Exceptions to Covenants. Neither the Borrower nor any Subsidiary shall be
deemed to be permitted to take any action or fail to take any action which is permitted as an
exception to any of the covenants contained herein or which is within the permissible limits of any
of the covenants contained herein if such action or omission would result in the breach of any
other covenant contained herein.

     Section 10.15. Governing Law; Jurisdiction; Etc.

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

90

 

     (b) THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF
AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING
IN NEW YORK, NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES
HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER
LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF
AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) THE PARTIES HERETO AND EACH OTHER LOAN PARTY AGREE THAT N.Y. GEN. OBLIG. LAWS §5-1401 AND
§5-1402 SHALL APPLY TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

     Section 10.16. 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

91

 

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.

     Section 10.17. USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any 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 such Lender or the Administrative Agent, as
applicable, to identify the Borrower in accordance with the Act.

     Section 10.18. Time of the Essence. Time is of the essence of the Loan Documents.

     Section 10.19. ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT AMONG 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 AMONG THE PARTIES.

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

92

 

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

	 	 	 	 	 
	 	POWERSECURE INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Sidney Hinton 	 
	 	 	Sidney Hinton 	 
	 	 	President and Chief Executive Officer 	 
	 

Signature Page

 

 

	 	 	 	 	 
	 	CITIBANK, N.A., as Administrative Agent

 	 
	 	By:  	/s/ Gary D. Pitcock 	 
	 	 	Gary D. Pitcock 	 
	 	 	Vice President 	 
	 
	 	CITIBANK, N.A., as a Lender

 	 
	 	By:  	/s/ Gary D. Pitcock 	 
	 	 	Gary D. Pitcock 	 
	 	 	Vice President 	 
	 

Signature Page

 

 

SCHEDULE 2.01

REVOLVING COMMITMENTS

AND REVOLVING PRO RATA SHARES

	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	Revolving
	Lender	 	Commitment	 	Pro Rata Share
	 
	Citibank, N.A.
	 	$	25,000,000	 	 	 	100.000000000	%
	Total
	 	$	25,000,000	 	 	 	100.000000000	%

Schedule 2.01

 

 

SCHEDULE 2.02

TERM COMMITMENTS

AND TERM PRO RATA SHARES

	 	 	 	 	 	 	 	 	 
	 	 	Term	 	Term Pro Rata
	Lender	 	Commitment	 	Share
	 
	Citibank, N.A.
	 	$	5,000,000	*	 	 	100.000000000	%

 

			
	*	 	The Term Commitment is only available to fund Acquisitions and results in a dollar-for-dollar
reduction in the Revolving Commitment if and when utilized.

Schedule 2.01

 

 

SCHEDULE 1.01

INACTIVE SUBSIDIARIES

Metretek Contract Manufacturing Company, Inc. (Florida corporation)

PowerSpring, Inc. (Delaware corporation)

Mercator Energy Incorporated (Colorado corporation)

Marcum Denver, Inc. (Colorado corporation)

Schedule 5.05

 

 

SCHEDULE 5.05

SUPPLEMENT TO INTERIM FINANCIAL STATEMENTS

Schedule 5.05

 

 

SCHEDULE 5.08

FEE PROPERTY

4011 Shilling Way

Dallas, Texas 75266

Schedule 5.05

 

 

SCHEDULE 5.09

ENVIRONMENTAL MATTERS

None

Schedule 5.09

 

 

SCHEDULE 5.13

SUBSIDIARIES AND OTHER EQUITY INVESTMENTS

Part (a): Subsidiaries

Southern Flow Companies, Inc.

PowerSecure, Inc.

UtilityEngineering, Inc.

PowerServices, Inc.

EnergyLite, Inc.

Reid’s Trailer, Inc.

UtilityDesign, Inc.

Metretek, Incorporated

Marcum Gas Transmission, Inc.

Note: Does not include Inactive Subsidiaries listed on Schedule 1.01

Part (b): Other Equity Investments

Marcum Midstream 1995-2 Business Trust

Schedule 5.13

 

 

SCHEDULE 5.22

LABOR AGREEMENTS

None

Schedule 5.22

 

 

SCHEDULE 5.23

LABOR MATTERS

None

Schedule 5.23

 

 

SCHEDULE 7.01

EXISTING LIENS

Caterpillar Financial Services Corporation (PowerSecure equipment)

Copelco Capital, Inc. (Metretek, Incorporated equipment)

Citicapital Commercial Corporation (Metretek, Incorporated equipment)

De Lage Landen Financial Services, Inc.; Solarcom LLC (Metretek, Incorporated equipment lease)

First National Bank of Colorado:

Currently holds a blanket lien and first priority security interest on the assets of the Borrower,
Southern Flow, PowerSecure, Metretek, Incorporated and Metretek Contract Manufacturing Company,
Inc. in connection with the Borrower’s current credit facility with First National Bank of
Colorado. These liens and security interest will be extinguished and terminated in connection
with the Closing of the Loan with Lender.

Schedule 7.01

 

 

SCHEDULE 7.02

EXISTING INVESTMENTS

None other than listed on Part (b) of Schedule 5.13

Schedule 7.02

 

 

SCHEDULE 7.03

EXISTING INDEBTEDNESS

Credit Facility with First National Bank of Colorado (to be terminated at Closing)

Caterpillar Financial Services Corporation (up to $7.5 million from time to time)

Borrower:

GE Capital —  Konica C350 Digital Imager (copier/scanner)

P.O. Box 3083

Cedar Rapids, IA 52406

Southern Flow:

Xerox Capital Services, LLC —  Xerox Copier and Scanner Model WCP 45-DADF-HCF

Building 300

1301 Ridgeview Drive

Lewisville, TX 75057

Schedule 7.03

 

 

SCHEDULE 10.02

ADMINISTRATIVE AGENT’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

POWERSECURE INTERNATIONAL, INC.

1609 Heritage Commerce Ct.

Wake Forest, North Carolina, 27587

	 	 	 
	Attention:

	 	Linda Koch
	Telephone:

	 	(919) 556-3056 ext. 246
	Facsimile:

	 	(919) 453-1768
	E-mail:

	 	lkoch@powersecure.com and gzuiderveen@powersecure.com

U.S. Taxpayer Identification No.: 84-1169358

ADMINISTRATIVE AGENT:

Administrative Agent’s Office

(for payments and Requests for Credit Extensions):

CITIBANK, N.A.

One Lincoln Park

8401 North Central Expressway

Dallas, Texas 75225

	 	 	 
	Attention:

	 	Gary D. Pitcock
	Telephone:

	 	(972) 419-3352
	E-mail:

	 	gary.d.pitcock@citigroup.com

Other Notices as Administrative Agent:

CITIBANK, N.A.

One Lincoln Park

8401 North Central Expressway

Dallas, Texas 75225

	 	 	 
	Attention:

	 	Gary D. Pitcock
	Telephone:

	 	(972) 419-3352
	E-mail:

	 	gary.d.pitcock@citigroup.com

Schedule 10.02 - 1

 

 

L/C ISSUER:

CITIBANK, N.A.

One Lincoln Park

8401 North Central Expressway

Dallas, Texas 75225

	 	 	 
	Attention:

	 	Gary D. Pitcock
	Telephone:

	 	(972) 419-3352
	E-mail:

	 	gary.d.pitcock@citigroup.com

Schedule 10.02 - 2EX-10.2

 

Exhibit 10.2

SECURITY AGREEMENT

     SECURITY AGREEMENT (this agreement, together with all amendments and restatements, this
“Agreement”), dated as of August 23, 2007, made by ___, a ___ (“Grantor”), in
favor of Citibank, N.A., as Administrative Agent, as secured party (Administrative Agent in such
capacity, “Secured Party”), for Secured Party and the benefit of each Secured Creditor.

BACKGROUND.

     Citibank, N.A., as Administrative Agent, the Lenders party thereto, and [Grantor][Metretek
Technologies, Inc., a Delaware corporation (“Borrower”)], entered into the Credit Agreement dated
as of August 23, 2007 (such agreement, together with all amendments and restatements thereto, the
“Credit Agreement”).

     It is the intention of the parties hereto that this Agreement create a first priority security
interest in property of Grantor in favor of Secured Party for Secured Party and the benefit of
Secured Creditors securing the payment and performance of the Secured Obligations.

     It is a condition precedent to effectiveness of the Credit Agreement that Grantor shall have
executed and delivered this Agreement.

AGREEMENT.

     NOW, THEREFORE, in consideration of the premises set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order
to induce Secured Creditors to (a) make the Loans and issue Letters of Credit under the Credit
Agreement and to extend other credit and financial accommodations under the Loan Documents, and (b)
make financial accommodations under Swap Contracts and Cash Management Documents, Grantor hereby
agrees with the Secured Party, for its benefit and the benefit of Secured Creditors, and each
Secured Creditor as follows:

ARTICLE I

DEFINITIONS

     1.1. Definitions. For purposes of this Agreement:

     “Accession” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to an accession (as defined in the UCC),
and (whether or not included in that definition), a good that is physically united with another
good in such a manner that the identity of the original good is not lost.

     “Account” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to an account (as defined in the UCC), and
(whether or not included in such definition), a right to payment of a monetary obligation, whether
or not earned by performance for property that has been or is to be sold, leased, licensed,
assigned, or otherwise disposed of, and for service rendered or to be rendered, and all right,
title, and interest in any returned property, together with all rights, titles, securities, and
guarantees

1

 

with respect thereto, including any rights to stoppage in transit, replevin, reclamation, and
resales, and all related Liens whether voluntary or involuntary.

     “Account Grantor” means any Person who is or who may become obligated to Grantor under, with
respect to or on account of an Account.

     “Acquisition Rights” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to each warrant, option, instrument,
subscription right, redemption right and other right (including any instrument or right convertible
into an Equity Interest) to acquire or sell any Equity Interest in any Person.

     “Chattel Paper” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to chattel paper (as defined in the UCC),
and (whether or not included in such definition), a Record or Records that evidence both a monetary
obligation and a security interest in specific Goods, a security interest in specific Goods and
Software used in the Goods, or a lease of specific Goods.

     “Collateral” means all (a) Accounts, (b) Accessions, (c) Chattel Paper, (d) Collateral
Records, (e) Commercial Tort Claims, including but not limited to the specific Commercial Tort
Claims described on Schedule 12, (f) Commodity Accounts, (g) Commodity Contracts, (h)
Deposit Accounts, (i) Documents, (j) Equipment, (k) Financial Assets, (l) Fixtures, (m) General
Intangibles, (n) Goods, (o) Insurance, (p) Intellectual Property, (q) Instruments, (r) Inventory,
(s) Investment Property, (t) Letters of Credit, (u) Letter-of-Credit Rights, (v) Licenses, (w)
Money, (x) Payment Intangibles, (y) Permits, (z) Pledged Equity Interest, (aa) Securities, (ab)
Securities Accounts, (ac) Security Entitlements, (ad) Software, (ae) Supporting Obligations, and
(ag) Proceeds.

     “Collateral Records” means books, records, ledger cards, files, correspondence, customer
lists, blueprints, technical specifications, manuals, computer software, computer printouts, tapes,
disks and related data processing software and similar items that at any time evidence or contain
information relating to any of the Collateral or are otherwise necessary or helpful in the
collection thereof or realization thereupon.

     “Commercial Tort Claim” means all right, title, and interest of Grantor (in each case whether
now or hereafter existing, owned, arising, or acquired) in and to a commercial tort claim (as
defined in the UCC), and (whether or not included in such definition), all claims arising in tort
with respect to which the claimant (a) is an organization, or (b) an individual and the claim (i)
arose in the course of the claimant’s business or profession, and (ii) does not include damages
arising out of personal injury to or the death of an individual.

     “Commodity Account” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a commodity account (as defined in
the UCC), and (whether or not included in such definition), an account maintained by a Commodity
Intermediary in which a Commodity Contract is carried for Grantor.

     “Commodity Contract” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a commodity futures contract, an
option on a commodity futures contract, a commodity option, or any other contract if the contract
or option is (a) traded on or subject to the rules of a board of trade that has been

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designated as a contract market for such a contract pursuant to the federal commodities Laws,
or (b) traded on a foreign commodity board of trade, exchange, or market, and is carried on the
books of a Commodity Intermediary for Grantor.

     “Commodity Intermediary” means (a) a Person that is registered as a futures commission
merchant under the federal commodities Laws or (b) a Person that in the ordinary course of its
business provides clearance or settlement services for a board of trade that has been designated as
a contract market pursuant to federal commodities Laws.

     “Copyright License” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to any written agreement, now or
hereafter in effect, granting any right to any third party under any Copyright now or hereafter
owned by Grantor or which Grantor otherwise has the right to license, or granting any right to
Grantor under any Copyright now or hereafter owned by any third party, and all rights of Grantor
under any such agreement.

     “Copyrights” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to (a) all copyright rights in any work
subject to the copyright Laws of any Governmental Authority, whether as author, assignee,
transferee, or otherwise, (b) all registrations and applications for registration of any such
copyright in any Governmental Authority, including registrations, recordings, supplemental
registrations, and pending applications for registration in any jurisdiction, and (c) all rights to
use and/or sell any of the foregoing.

     “Deposit Account” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to a deposit account (as defined in the
UCC), and (whether or not included in such definition), a demand, time, savings, passbook, or
similar account maintained at a bank (as defined in the UCC).

     “Document” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to a document (as defined in the UCC), and
(whether or not included in such definition), a document of title, bill of lading, dock warrant,
dock receipt, warehouse receipt, or order for the delivery of Goods.

     “Electronic Chattel Paper” means all right, title, and interest of Grantor (in each case
whether now or hereafter existing, owned, arising, or acquired) in and to electronic chattel paper
(as defined in the UCC), and (whether or not included in such definition), chattel paper evidenced
by a Record or Records consisting of information stored in electronic medium.

     “Entitlement Holder” means a Person identified in the records of a Securities Intermediary as
the Person having a Security Entitlement against the Securities Intermediary. If a Person acquires
a Security Entitlement by virtue of Section 8-501(b)(2) or (3) of the UCC, such
Person is the Entitlement Holder.

     “Equipment” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to equipment (as defined in the UCC), and
(whether or not included in such definition), all Goods other than Inventory or consumer goods, and
all improvements, accessions, or appurtenances thereto. The term Equipment shall include Fixtures.

3

 

     “Equity Interests” means, with respect to any Person, all of the shares of capital stock of
(or other ownership or profit interests, other than a net profits based bonus program solely for
the benefit of employees, in) such Person, all of the warrants, options or other rights for the
purchase or acquisition from such Person of shares of capital stock of (or other ownership or
profit interests in) such Person, all of the securities convertible into or exchangeable for shares
of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or
options for the purchase or acquisition from such Person of such shares (or such other interests),
and all of the other ownership or profit interests in such Person (including partnership, member or
trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants,
options, rights or other interests are outstanding on any date of determination.

     “Financial Asset” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to a financial asset (as defined in the
UCC), and (whether or not included in such definition), (a) a Security, (b) an obligation of a
Person or a share, participation or other interest in a Person or in property or an enterprise of a
Person, that is, or is of a type, dealt in or traded on financial markets or that is recognized in
any area in which it is issued or dealt in as a medium for investment, or (c) any property that is
held by a Securities Intermediary for another Person in a Securities Account if the Securities
Intermediary has expressly agreed with the other Person that the property is to be treated as a
financial asset under Article 8 of the Uniform Commercial Code. As the context requires, “Financial
Asset” means either the interest itself or the means by which a Person’s claim to it is evidenced,
including a certificated or uncertificated Security, a certificate representing a Security, or a
Security Entitlement.

     “Fixtures” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to fixtures (as defined in the UCC), and
(whether or not included in such definition), all Goods that have become so related to particular
real property that an interest in them arises under the real property Law of the state in which the
real property is situated.

     “General Intangible” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a general intangible (as defined in
the UCC, and (whether or not included in such definition), all personal property, including things
in action, other than Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents,
Goods, Instruments, Investment Property, Letter-of-Credit Rights, Letters of Credit, money, and
oil, gas or other minerals before extraction.

     “Goods” means all right, title, and interest of Grantor (in each case whether now or hereafter
existing, owned, arising, or acquired) in and to goods (as defined in the UCC), and (whether or not
included in such definition), all things that are movable when a security interest attaches.

     “Instrument” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to an instrument (as defined in the UCC),
and (whether or not included in such definition), a negotiable instrument or any other writing that
evidences a right to the payment of a monetary obligation, is not itself a security agreement or
lease, and is of a type that in ordinary course of business is transferred by delivery with any
necessary endorsement or assignment.

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     “Insurance” means all insurance policies covering any or all of the Collateral (regardless of
whether the Secured Party is the loss payee thereof).

     “Intellectual Property” means all right, title, and interest of Grantor (in each case whether
now or hereafter existing, owned, arising, or acquired) in and to all intellectual and similar
property of every kind and nature, including inventions, designs, Patents, Copyrights, Licenses,
Trademarks, Trade Secrets, confidential or proprietary technical and business information,
know-how, show-how or other data or information, Software and databases and all embodiments or
fixations thereof and related documentation, registrations and franchises, and all additions,
improvements and accessions to, and books and records describing or used in connection with, any of
the foregoing.

     “Inventory” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to inventory (as defined in the UCC), and
(whether or not included in such definition), Goods that (a) are leased by a Person as lessor, (b)
are held by a Person for sale or lease or to be furnished under a contract of service, (c) are
furnished by a Person under a contract of service, or (d) consist of raw materials, work in
process, or materials used or consumed in a business, including packaging materials, scrap
material, manufacturing supplies and spare parts, and all such Goods that have been returned to or
repossessed by or on behalf of such Person.

     “Investment Property” means all right, title, and interest of Grantor (in each case whether
now or hereafter existing, owned, arising, or acquired) in and to investment property (as defined
in the UCC), and (whether or not included in such definition), a Security (whether certificated or
uncertificated), a Commodity Contract, a Commodity Account, a Security Entitlement, Securities
Account, and Pledged Debt.

     “Letter of Credit” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a letter of credit (as defined in the
UCC).

     “Letter-of-Credit Right” means all right, title, and interest of Grantor (in each case whether
now or hereafter existing, owned, arising, or acquired) in and to a letter-of-credit right (as
defined in the UCC), and (whether or not included in such definition), (a) a right to payment or
performance under a letter of credit, whether or not the beneficiary has demanded or is at the time
entitled to demand payment or performance, and (b) the right of a beneficiary to demand payment or
performance under a letter of credit.

     “License” means any Patent License, Trademark License, Copyright License, or other similar
license or sublicense.

     “Money” means “money” as defined in the UCC.

     “Patent License” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to any written agreement, now or hereafter
in effect, granting to any third party any right to make, use or sell any invention on which a
Patent, now or hereafter owned by Grantor or which Grantor otherwise has the right to license, is
in existence, or granting to Grantor any right to make, use or sell any invention on

5

 

which a Patent, now or hereafter owned by any third party, is in existence, and all rights of
Grantor under any such agreement.

     “Patents” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to (a) all letters patent of any
Governmental Authority, all registrations and recordings thereof, and all applications for letters
patent of any Governmental Authority, and (b) all reissues, continuations, divisions,
continuations-in-part, renewals, or extensions thereof, and the inventions disclosed or claimed
therein, including the right to make, use and/or sell the inventions disclosed or claimed therein.

     “Payment Intangible” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to a payment intangible (as defined in
the UCC), and (whether or not included in such definition), a General Intangible under which the
Account Grantor’s principal obligation is a monetary obligation.

     “Permit” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to any authorization, consent, approval,
permit, license or exemption of, registration or filing with, or report or notice to, any
Governmental Authority.

     “Pledged Debt” means all indebtedness owed to Grantor, the instruments evidencing such
indebtedness, and all interest, cash, instruments and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of such
indebtedness.

     “Pledged Equity Interests” means all Acquisition Rights, Pledged Stock, Pledged LLC Interests,
Pledged Partnership Interests and Pledged Trust Interests; provided, however, notwithstanding
anything herein to the contrary, the amount of pledged Equity Interests of any Foreign Subsidiary
shall be limited to 65% of the issued and outstanding Equity Interests of such Foreign Subsidiary.

     “Pledged LLC Interests” means, with respect to Grantor, all interests of Grantor in any
limited liability company and the certificates, if any, representing such limited liability company
interests and any interest of Grantor on the books and records of such limited liability company or
on the books and records of any securities intermediary pertaining to such interest and all
dividends, distributions, cash, warrants, rights, options, instruments, securities and other
property or proceeds from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of such limited liability company interests; provided, however,
notwithstanding anything herein to the contrary, the amount of pledged limited liability company
interests of any Foreign Subsidiary shall be limited to 65% of the issued and outstanding limited
liability company interests of such Foreign Subsidiary.

     “Pledged Partnership Interests” means, with respect to Grantor, all interests of Grantor in
any general partnership, limited partnership, limited liability partnership or other partnership
and the certificates, if any, representing such partnership interests and any interest of Grantor
on the books and records of such partnership or on the books and records of any securities
intermediary pertaining to such interest and all dividends, distributions, cash, warrants, rights,
options, instruments, securities and other property or proceeds from time to time received,
receivable or

6

 

otherwise distributed in respect of or in exchange for any or all of such partnership
interests; provided, however, notwithstanding anything herein to the contrary, the amount of
pledged general partnership, limited partnership, limited liability partnership or other
partnership interests of any Foreign Subsidiary shall be limited to 65% of the issued and
outstanding general partnership, limited partnership, limited liability partnership or other
partnership interests of such Foreign Subsidiary.

     “Pledged Stock” means, with respect to Grantor, all shares of capital stock owned by Grantor
and the certificates, if any, representing such shares and any interest of Grantor in the entries
on the books of the issuer of such shares or on the books of any securities intermediary pertaining
to such shares, and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such shares; provided, however,
notwithstanding anything herein to the contrary, the amount of pledged capital stock of any Foreign
Subsidiary shall be limited to 65% of the issued and outstanding capital stock of such Foreign
Subsidiary; provided, further, treasury stock of Grantor shall not be Pledged Stock.

     “Pledged Trust Interests” means, with respect to Grantor, all interests of Grantor in a
business trust or other trust and the certificates, if any, representing such trust interests and
any interest of Grantor on the books and records of such trust or on the books and records of any
securities intermediary pertaining to such interest and all dividends, distributions, cash,
warrants, rights, options, instruments, securities and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of such
trust interests.

     “Proceeds” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to proceeds (as defined in the UCC), and
(whether or not included in such definition), (a) whatever is acquired upon the sale, lease,
license, exchange, or other disposition of the Collateral, (b) whatever is collected on, or
distributed on account of, the Collateral, (c) rights arising out of the Collateral, (d) claims
arising out of the loss, nonconformity, or interference with the use of, defects or infringement of
rights in, or damage to the Collateral, (e) proceeds of Insurance, including insurance payable by
reason of the loss or nonconformity of, defects or infringement of rights in, or damage to the
Collateral, and (f) any and all other amounts from time to time paid or payable under or in
connection with any of the Collateral.

     “Record” means information that is inscribed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable form.

     “Release Date” means the date on which (a) all of the Secured Obligations are fully,
indefeasibly, absolutely and unconditionally paid and performed, (b) the Revolving Commitment, the
Term Commitment of each Lender are terminated, (c) all Letters of Credit have expired, been
terminated or secured on terms that are reasonably satisfactory to L/C Issuer, and (d) all Swap
Contracts with respect to all Swap Obligations have expired, been terminated or secured on terms
that are reasonably satisfactory to the parties to such Swap Contract.

     “Secured Creditor” or “Secured Creditors” means (a) Secured Party, (b) Administrative Agent,
(c) Lenders, (d) any Lender or Affiliate of any Lender that is a party to any Swap

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Contract (provided that such Lender was a Lender at the time such Swap Contract was entered
into) with Borrower or any Affiliate of Borrower, (e) any Lender or Affiliate of any Lender that is
owed any Cash Management Obligation (provided that such Lender was a Lender at the time such Cash
Management Obligation arose), and (f) the beneficiaries of each indemnification obligation
undertaken by any Loan Party under any Loan Document.

     “Securities Account” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to an account to which a Financial Asset
is or may be credited in accordance with an agreement under which the Person maintaining the
account undertakes to treat the Person for whom the account is maintained as entitled to exercise
rights that comprise the Financial Asset.

     “Securities Intermediary” means (a) a clearing corporation, or (b) a Person, including a bank
or broker, that in the ordinary course of its business maintains securities accounts for others and
is acting in that capacity.

     “Security” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to any obligations of an issuer or any
shares, participations or other interests in an issuer or in property or an enterprise of an issuer
which (a) are represented by a certificate representing a security in bearer or registered form, or
the transfer of which may be registered upon books maintained for that purpose by or on behalf of
the issuer, (b) are one of a class or series or by its terms is divisible into a class or series of
shares, participations, interests or obligations, and (c)(i) are, or are of a type, dealt with or
traded on securities exchanges or securities markets or (ii) are a medium for investment and by
their terms expressly provide that they are a security governed by Article 8 of the UCC.

     “Security Entitlements” means all right, title, and interest of Grantor (in each case whether
now or hereafter existing, owned, arising, or acquired) in and to the rights and property interests
as and of an Entitlement Holder with respect to a Financial Asset.

     “Software” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to software (as defined in the UCC), and
(whether or not included in such definition), a computer program (including both source and object
code) and any supporting information provided in connection with a transaction relating to the
program.

     “Supporting Obligations” means all right, title, and interest of Grantor (in each case whether
now or hereafter existing, owned, arising, or acquired) in and to a supporting obligation (as
defined in the UCC), and whether or not included in such definition, a Letter-of-Credit Right or
secondary obligation that supports the payment or performance of an Account, Chattel Paper, a
Document, a General Intangible, an Instrument, or Investment Property.

     “Swap Contracts” means each Swap Contract and each related agreement.

     “Tangible Chattel Paper” means all right, title, and interest of Grantor (in each case whether
now or hereafter existing, owned, arising, or acquired) in and to tangible chattel paper (as
defined in the UCC), and (whether or not included in such definition), chattel paper evidenced by a
Record or Records consisting of information that is inscribed on a tangible medium.

8

 

     “Trade Secrets” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to trade secrets, all know-how, inventions,
processes, methods, information, data, plans, blueprints, specifications, designs, drawings,
engineering reports, test reports, materials standards, processing standards and performance
standards, and all Software directly related thereto, and all Licenses or other agreements to which
Grantor is a party with respect to any of the foregoing.

     “Trademark License” means all right, title, and interest of Grantor (in each case whether now
or hereafter existing, owned, arising, or acquired) in and to any written agreement, now or
hereafter in effect, granting to any third party any right to use any Trademark now or hereafter
owned by Grantor or which Grantor otherwise has the right to license, or granting to Grantor any
right to use any Trademark now or hereafter owned by any third party, and all rights of Grantor
under any such agreement.

     “Trademarks” means all right, title, and interest of Grantor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to (a) all trademarks, service marks, trade
names, corporate names, company names, business names, fictitious business names, trade styles,
trade dress, logos, other source or business identifiers, designs and general intangibles of like
nature, all registrations and recordings thereof, and all registration and recording applications
filed with any Governmental Authority in connection therewith, and all extensions or renewals
thereof, (b) all goodwill associated therewith or symbolized thereby, (c) all other assets, rights
and interests that uniquely reflect or embody such goodwill, (d) all rights to use and/or sell any
of the foregoing, and (e) the portion of the business to which each trademark pertains.

     “UCC” means Chapters 8 and 9 of the Uniform Commercial Code as in effect from time to time in
the State of New York or, where applicable as to specific items or types of Collateral, any other
relevant state.

     1.2. Other Definitional Provisions. Capitalized terms not otherwise defined herein have the
meaning specified in the Credit Agreement, and, to the extent of any conflict, terms as defined
herein shall control (provided, that a more expansive or explanatory definition shall not be deemed
a conflict).

     1.3. Construction. Unless otherwise expressly provided in this Agreement or the context
requires otherwise, (a) the singular shall include the plural, and vice versa, (b) words of a
gender include the other gender, (c) monetary references are to Dollars, (d) time references are to
Dallas time, (e) references to “Articles,” “Sections,” “Exhibits,” and “Schedules” are to the
Articles, Sections, Exhibits, and Schedules of and to this Agreement, (f) headings used in this
Agreement are for convenience only and shall not be used in connection with the interpretation of
any provision hereof, (g) references to any Person include that Person’s heirs, personal
representatives, successors, trustees, receivers, and permitted assigns, that Person as a debtor-in
possession, and any receiver, trustee, liquidator, conservator, custodian, or similar party
appointed for such Person or all or substantially all of its assets, (h) references to any Law
include every amendment or restatement to it, rule and regulation adopted under it, and successor
or replacement for it, (i) references to a particular Loan Document include each amendment or
restatement to it made in accordance with the Credit Agreement and such Loan Document, (j)
references to a particular Swap Contract include each amendment or restatement to it made in

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accordance with such Swap Contract, (k) references to a particular Cash Management Document
includes each amendment or restatement to it made in accordance with such Cash Management Document,
and (l) the inclusion of Proceeds in the definition of “Collateral” shall not be deemed a consent
by Secured Party or any other Secured Creditor to any sale or other disposition of any Collateral
not otherwise specifically permitted by the terms of the Credit Agreement or this Agreement. This
Agreement is a Loan Document.

ARTICLE II

GRANT OF SECURITY INTEREST

     2.1. Assignment and Grant of Security Interest. As security for the payment and performance,
as the case may be, in full of the Secured Obligations, Grantor hereby assigns to, and pledges and
grants to Secured Party, for it and the benefit of Secured Creditors, a security interest in the
entire right, title, and interest of Grantor in and to all property (except as otherwise set forth
herein) of Grantor, whether now or hereafter existing, owned, arising or acquired, including but
not limited to all Collateral (provided, the amount of Equity Interests of any Foreign Subsidiary
pledged by Grantor hereunder shall be limited to 65% of the issued and outstanding Equity Interests
of such Foreign Subsidiary).

     2.2. Grantor Remains Liable. Anything herein to the contrary notwithstanding, (a) Grantor
shall remain liable with respect to and under all Collateral, (b) the exercise by Secured Party or
any other Secured Creditor of any of the rights hereunder shall not release Grantor from any of its
duties or obligations with respect to or under any Collateral or under this Agreement, and (c)
neither Secured Party nor any other Secured Creditor shall have any obligation or liability with
respect to or under any Collateral by reason of this Agreement, nor shall Secured Party or any
other Secured Creditor be obligated to perform any of the obligations or duties of Grantor
thereunder or to take any action to collect or enforce any claim for payment assigned or in which a
security interest is granted hereunder.

     2.3. Delivery of Security and Instrument Collateral. All certificates, if any, or Instruments
constituting or evidencing the Collateral shall be delivered to and held by or on behalf of Secured
Party pursuant hereto and shall be in suitable form for transfer by delivery, or shall be
accompanied by undated and duly executed instruments of transfer or assignment in blank, all in
form and substance reasonably satisfactory to Secured Party. If an Event of Default exists,
Secured Party has the right to transfer to or to register in the name of Secured Party or any of
its nominees any or all of such Collateral. Secured Party shall endeavor to provide Grantor with
notice of such transfer and registration; provided, any failure to provide any such notice shall
not impair any right or action of Secured Party or any Secured Creditor. In addition, Secured
Party has the right, if Secured Party reasonably determines that the exercise of such right is
necessary to protect its rights, at any time to exchange certificates or instruments representing
or evidencing Collateral for certificates or instruments of smaller or larger denominations.

     2.4. Agreement With Respect to Collateral. Grantor and Secured Party agree that to the extent
that any of the Collateral may be deemed to be a Fixture as opposed to Equipment, Inventory, or any
other form of Collateral that may be perfected by the filing of a UCC financing statement, it is
the intention of Grantor, Secured Party and Secured Creditors that such Collateral be deemed to be
Equipment, Inventory, or any other form of Collateral that, to the extent not

10

 

prohibited by Law, may be perfected by the filing of a UCC financing statement and such
Collateral not be deemed to be a Fixture.

     2.5. Future Advances. Grantor acknowledges that the Loan Documents provide for future
advances and financial accommodations and this Agreement secures performance of such future
advances and financial accommodations.

     2.6. Limited Exclusions. (a) Notwithstanding anything herein to the contrary, in no event
shall the security interest granted in Section 2.1(a) attach to any lease, license,
contract, property rights or agreement to which Grantor is a party or any of its rights or
interests thereunder if and for so long as the grant of such security interest shall constitute or
result in the abandonment, termination pursuant to the terms of, or a breach or default under, any
such lease, license, contract, property rights or agreement (other than to the extent that any such
term would be rendered ineffective pursuant to Sections 9.406, 9.407, 9.408 or 9.409 of the UCC (or
any successor provision or provisions) of any relevant jurisdiction or any other applicable Law
(including any Grantor Relief Law) or principles of equity); provided, however, that such security
interest shall attach immediately at such time as the condition causing such abandonment,
invalidation or unenforceability shall be remedied and to the extent severable, shall attach
immediately to any portion of such lease, license, contract, property rights or agreement that does
not result in any of the consequences specified above. So long any property of Grantor is excluded
from the security interest granted in Section 2.1(a) pursuant to the immediately preceding
sentence, such property shall be excluded from the term “Collateral” for all purposes hereunder.

     (b) The security interest granted in Section 2.1(a) shall not attach to any (i) equity
interest in any Foreign Subsidiary which is not directly owned by Grantor, or (ii) any treasury
stock of Grantor.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     3.1. Representations and Warranties. Grantor represents and warrants to Secured Party and
each Secured Creditor with respect to itself and the Collateral that:

     (a) This Agreement and the grant of the security interest pursuant to this Agreement in the
Collateral create a valid first priority security interest (other than such Collateral that would
require the execution of a control agreement for such first priority security interest or the
notation of the Lien in favor of Secured Party on vehicle certificates of title) in favor of
Secured Party for the benefit of Secured Creditors in (i) the Collateral other than Pledged Equity
Interests (subject to Permitted Liens), and (ii) Pledged Equity Interests, securing the payment and
performance of the Secured Obligations. All filings and other actions necessary to perfect and
protect such security interest and such priority have been duly taken (or will be taken upon
Grantor obtaining rights in Collateral after the date hereof) and, upon the filing of UCC-1
financing statements for Grantor, in the form delivered by Grantor to Secured Party on or prior to
the date of this Agreement and in the filing offices listed on Schedule 1, Section
(g), and delivery to and continuing possession by Secured Party of all certificates evidencing
the Pledged Equity Interests (together with undated stock powers executed in blank), if any, all
filings and other actions necessary to perfect and protect such security interest and such priority
have been duly

11

 

taken (or will be taken upon Grantor obtaining rights in Collateral after the date hereof);
subject, however, with respect to Proceeds, to the provisions of Section 9.315 of the UCC.

     (b) The execution, delivery and performance by Grantor of this Agreement have been duly
authorized by all necessary organizational action, and do not and will not (i) contravene the terms
of any of Grantor’s Organization Documents; (ii) conflict with or result in any breach or
contravention of, or the creation of any Lien under, or require any payment to be made under (A)
any Contractual Obligation to which Grantor is a party or affecting Grantor or the properties of
Grantor or any of its Subsidiaries or (B) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which Grantor or its property is subject; or (C) violate any
Law.

     (c) This Agreement has been, and each other Loan Document to which Grantor is a party, when
delivered hereunder, will have been, duly executed and delivered by Grantor. This Agreement
constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and
binding obligation of Grantor, enforceable against Grantor in accordance with its terms, subject as
to enforcement of remedies to any Grantor Relief Laws and to general equitable principles.

     (d) Grantor has good and indefeasible title to, or a valid leasehold interest in, all of the
Collateral free and clear of any Lien, except for Permitted Liens. Grantor has not granted a
security interest or other Lien in or made an assignment of any of the Collateral (except for
Permitted Liens). Grantor has neither entered into nor is it or of its property subject to any
agreement limiting the ability of Grantor to grant a Lien in any of the Collateral, or the ability
of Grantor to agree to grant or not grant a Lien in any of the Collateral. None of the Collateral
is consigned Goods, subject to any agreement of repurchase, or subject to any dispute, defense, or
counterclaim. No effective financing statement or other similar effective document used to perfect
and preserve a security interest or other Lien under the Laws of any jurisdiction covering all or
any part of the Collateral is on file in any recording office, except such as may have been filed
(i) pursuant to this Agreement or other Loan Document, or (ii) relating to Permitted Liens.
Grantor has not sold any interest in any of its Accounts, Chattel Paper, promissory notes, or
Payment Intangibles, or consigned any of its Goods. No control agreement in favor of anyone other
than Secured Party exists with respect to any Collateral.

     (e) All of the Pledged Equity Interests have been duly and validly issued, and the Pledged
Stock, if any, is fully paid and nonassessable. None of the Pledged Equity Interests were issued
in violation of the preemptive rights of any Person or any agreement to which Grantor or the issuer
thereof is a party or the Pledged Equity Interest is subject. All capital contributions required
to be made by the terms of each partnership agreement for each partnership any interest in which is
a Pledged Partnership Interest have been made. All of the Pledged Equity Interests consisting of
certificated securities, if any, have been delivered to Secured Party. Other than Pledged
Partnership Interests and Pledged LLC Interests constituting General Intangibles, there are no
Pledged Equity Interests other than that represented by certificated securities in the possession
of Secured Party. The Pledged Equity Interests include (i) 100% of the issued and outstanding
Equity Interests of each Domestic Subsidiary of Grantor, and (ii) 65% of the issued and outstanding
capital stock and other Equity Interests of each first-tier Foreign Subsidiary, if any, of Grantor.
There are no restrictions in any Organization Document governing any Pledged Equity Interest or
any other document related thereto which

12

 

would limit or restrict (i) the grant of a Lien in the Pledged Equity Interests, (ii) the
perfection of such Lien or (iii) the exercise of remedies in respect of such perfected Lien in the
Pledged Equity Interests as contemplated by this Agreement or (iv) the admission of any transferee
of the Collateral as a shareholder, member, partner or equity holder of the issuer of such
Collateral. The Organization Documents of each issuer which is a partnership or limited liability
company do not provide that any interest in such issuer is a security governed by Chapter 8 of the
UCC and no equity interest of such issuer is evidenced by a certificate or other instrument.
Grantor has delivered to Secured Party complete and correct copies of all Organization Documents
for each issuer of Collateral. Upon the exercise of remedies in respect of Pledged Partnership
Interests and Pledged LLC Interests, a transferee or assignee of a partnership interest or
membership interest, as the case may be, of such partnership or limited liability company, as the
case may be, shall become a partner or member, as the case may be, of such partnership or limited
liability company, as the case may be, entitled to participate in the management thereof and, upon
the transfer of the entire interest of Grantor, Grantor ceases to be a partner or member, as the
case may be.

     (f) Schedule 1 states the exact name of Grantor, as such name appears in its currently
effective Organization Documents as filed with the appropriate authority of the jurisdiction of
Grantor’s organization. Schedule 1, Section (a) states the jurisdiction of
organization of Grantor. Grantor is not organized in more than one jurisdiction. Schedule
1, Section (b) sets forth the current type of entity of Grantor. Schedule 1,
Section (c) states each other entity type, jurisdiction of organization and name Grantor
has had in the past five years, together with the date of the relevant change. Except as set forth
in Schedule 1, Section (c), Grantor has not changed its identity or type of entity,
jurisdiction of organization or name in any way within the past five years. Changes in identity or
type of entity include mergers, consolidations, acquisitions (including both equity and asset
acquisitions), and any change in the form, nature, or jurisdiction of organization. Schedules
1 and 2 contain the information required by this Section as to each acquiree or
constituent party to a merger, consolidation, or acquisition. Schedule 1, Section
(d) states all other names (including trade, assumed, and similar names) used by Grantor or any
of its divisions or other business units at any time during the past five years. Schedule
1, Section (e) states the Federal Taxpayer Identification Number of Grantor.
Schedule 1, Section (f) states the corporate or other organizational number of
Grantor issued by Grantor’s jurisdiction of organization (or “N/A” if such jurisdiction does not
issue an organizational number for Grantor’s entity type).

     (g) The chief executive office of Grantor is located at the address stated on Schedule
2, Section (a). The chief executive officer of Grantor has not been located at any
other address. Schedule 2, Section (b) states all locations where Grantor
maintains originals or copies of all books or records relating to all Accounts (with each location
at which Chattel Paper, if any, is kept being indicated by an “*”). All Tangible Chattel Paper,
promissory notes, and other Instruments evidencing the Accounts have been delivered and pledged to
Secured Party duly endorsed and accompanied by such duly executed instruments of transfer or
assignment as are necessary for such pledge, to be held as pledged collateral. Schedule 2,
Section (c) states all locations where Grantor maintains any tangible personal property
(including Equipment and Inventory). Schedule 2, Section (d) states all real
property owned or leased by Grantor. Schedule 2, Section (e) states all the places
of business of Grantor or other locations of Collateral not identified in Schedule 2,
Sections 2(a), (b), (c), or (d). Schedule 2, Section
(f) states the

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names and addresses of all Persons other than Grantor who have possession of any of the
Collateral or other property of Grantor.

     (h) All Accounts have been originated by Grantor and all Inventory has been acquired by
Grantor in the ordinary course of business.

     (i) Grantor has exclusive possession and control of the Equipment and Inventory pledged by it
hereunder.

     (j) Schedule 3 is a complete and correct list of all stock, partnership interests,
limited liability company membership interests, or other Equity Interests in which Grantor has a
direct ownership interest. Except as described on Schedule 3, Grantor does not have any
equity investment that represents 50% or less of the equity of the entity in which such investment
was made.

     (k) Schedule 4 is a complete and correct list of all promissory notes and other
instruments evidencing indebtedness held by Grantor, including all intercompany notes and other
instruments between Grantor and each Subsidiary, and each Subsidiary and each other Subsidiary.

     (l) Schedule 5(a) is a complete and correct list of each Trademark registration in
which Grantor has any interest (whether as owner, licensee, or otherwise), including the name of
the registered owner and the nature of Grantor’s interest if not owned by Grantor, the registered
Trademark, the Trademark serial and/or registration number, the date of Trademark registration, and
the country or state registering the Trademark.

     (m) Schedule 5(b) is a complete and correct list of each Trademark application in
which Grantor has any interest (whether as owner, licensee, or otherwise), including the name of
the Person applying to be the registered owner and the nature of Grantor’s interest if Grantor is
not the Person applying to be the registered owner, the applied for Trademark, the Trademark
application serial and/or registration number, the date of Trademark application, and the country
or state with which the Trademark application was filed.

     (n) Schedule 5(c) is a complete and correct list of each Patent in which Grantor has
any interest (whether as owner, licensee, or otherwise), including the name of the registered owner
and the nature of Grantor’s interest if not owned by Grantor, the Patent number, the date of Patent
issuance, and the country issuing the Patent.

     (o) Schedule 5(d) is a complete and correct list of each Patent application in which
Grantor has any interest (whether as owner, licensee, or otherwise), including the name of the
Person applying to be the registered owner and the nature of Grantor’s interest if Grantor is not
the Person applying to be the registered owner, the Patent application number, the date of Patent
application filing, and the country with which the Patent application was filed.

     (p) Schedule 5(e) is a complete and correct list of each Copyright registration in
which Grantor has any interest (whether as owner, licensee, or otherwise), including the name of
the registered owner and the nature of Grantor’s interest if Grantor is not the owner, the title of
the work which is the subject of the registered Copyright, the date of Copyright issuance, the
registration number (if applicable) and the country issuing the Copyright.

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     (q) Schedule 5(f) is a complete and correct list of each Copyright application in
which Grantor has any interest (whether as owner, licensee, or otherwise), including the name of
the Person applying to be the registered owner and the nature of Grantor’s interest if Grantor is
not the Person applying to be the registered owner, the title of the work which is the subject of
the applied for Copyright, the date of Copyright application, the registration number (if
applicable) and the country with which the Copyright application was filed.

     (r) Schedule 6 is a complete and correct list of all Deposit Accounts maintained by or
in which Grantor has any interest and correctly describes the bank in which such account is
maintained (including the specific branch), the street address (including the specific branch) and
ABA number of such bank, the account number, and account type.

     (s) Schedule 7 is a complete and correct list of all Securities Accounts in which
Grantor has any interest, including the complete name and identification number of the account, the
jurisdiction the Law of which governs such account, and the name and street address of the
Securities Intermediary maintaining the account.

     (t) Schedule 8 is a complete and correct list of all Commodity Accounts in which
Grantor has any interest, including the complete name and identification number of the account, the
jurisdiction the Law of which governs such account, and the name and street address of the
Commodity Intermediary maintaining the account.

     (u) Schedule 9 is a complete and correct list of all letters of credit in which
Grantor has any interest (other than solely as an applicant) and correctly describes the bank which
issued the letter of credit, and the letter of credit’s number, issue date, expiry, and face
amount.

     (v) Except as set forth on Schedule 10, no consent of any other Person and no
authorization, approval or other action by, and no notice to or filing (other than filings required
by the UCC) with, any Governmental Authority is required (i) for the pledge by Grantor of the
Collateral pledged by it hereunder, for the grant by Grantor of the security interest granted
hereby, or for the execution, delivery, or performance of this Agreement by Grantor, (ii) for the
perfection or maintenance of the pledge, assignment, and security interest created hereby
(including the first priority nature of such pledge, assignment, and security interest) or (iii)
for the enforcement of remedies by Secured Party or any other Secured Creditor.

     (w) Schedule 11 is a complete and correct list of all insurance policies owned by
Grantor, or for which Grantor is a named insured, additional insured, loss payee, or beneficiary.

     (x) Schedule 12 is a complete and correct list of all Commercial Tort Claims in which
Grantor has any interest, including the complete case name or style, the case number, and the court
or other Governmental Authority in which the case is pending.

     (y) 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 Secured Party and each Secured Creditor, regardless of any investigation
made by Secured Party or any Secured Creditor or on their behalf and notwithstanding that Secured
Party or any Secured Creditor may have had notice or

15

 

knowledge of any Default at the time of any Credit Extension, and shall continue in full force
and effect as long as any Secured Obligation shall remain unpaid or unsatisfied.

ARTICLE IV

COVENANTS

     4.1. Further Assurances.

     (a) Grantor will, from time to time and at Grantor’s expense, promptly execute and deliver all
further instruments and documents (including the delivery of certificated securities, if any, and
supplements to all schedules), authenticate and execute and file such financing or continuation
statements, or amendments thereto, and such other instruments or notices, as may be reasonably
necessary, or as Secured Party may reasonably request, in order to perfect and preserve the pledge,
assignment, and security interest granted or purported to be granted hereby, and take all further
action that Secured Party may reasonably request, in order to perfect and protect any pledge,
assignment, or security interest granted or purported to be granted hereby, and the priority
thereof, or to enable Secured Party to exercise and enforce Secured Party’s and other Secured
Creditors’ rights and remedies hereunder with respect to any Collateral.

     (b) In addition to such other information as shall be specifically provided for herein,
Grantor shall furnish to Secured Party such other information with respect to Grantor and the
Collateral as Secured Party may reasonably request.

     (c) Grantor authorizes Secured Party to file one or more financing or continuation statements,
and amendments thereto, relating to all or any part of the Collateral without the authentication of
Grantor where permitted by Law and that (i) indicate the Collateral (A) as all assets of Grantor
(or words of similar effect), regardless of whether any particular asset included in the Collateral
is within the scope of UCC Article 9 of the state or such jurisdiction or whether such assets are
included in the Collateral, or (B) as being of an equal or lesser scope or with greater detail, and
(ii) contain any other information required by UCC Article 9 of the state or such jurisdiction for
the sufficiency or filing office acceptance of any financing statement, continuation or amendment,
including (A) whether Grantor is an organization, the type of organization, and any organization
identification number issued to Grantor and, (B) in the case of a financing statement filed as a
fixture filing or indicating Collateral to be as-extracted collateral or timber to be cut, a
sufficient description of real property to which the Collateral relates. Grantor agrees to furnish
any such information to Secured Party promptly upon request. A photocopy or other reproduction of
this Agreement or any financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by Law. Grantor ratifies its execution and
delivery of, and the filing of, any financing statement or amendment thereto describing any of the
Collateral which was filed prior to the date of this Agreement.

     (d) Grantor will not, and will not permit any Person to, revise, modify, amend or restate the
Organization Documents of any Person the Equity Interests in which is Pledged Equity Interests in a
manner that adversely affects the security interest of the Secured Party therein except as
permitted by the Loan Documents, or terminate, cancel, or dissolve any such Person except as
permitted by the Loan Documents.

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     (e) Grantor shall cooperate to determine what may or shall be required to satisfy the Laws or
regulations throughout the world with respect to the recordation and validation of the license of
and Lien in Intellectual Property as Secured Party may reasonably require, or otherwise to render
this Agreement and the Intellectual Property effective, and shall execute all documents which may
be necessary or desirable to implement this subsection, including registered user statements or
other documents suitable for filing with the appropriate Governmental Authorities.

     4.2. Place of Perfection; Records; Collection of Accounts, Chattel Paper and Instruments.

     (a) Grantor shall not change the jurisdiction of its organization from the jurisdiction
specified in Schedule 1, Section (a), its type of entity from the type of entity
specified in Schedule 1, Section (b), its name from the name specified in
Schedule 1, or its organizational identification number from the organizational number
specified in Scheduled 1, Section (f), unless Grantor has delivered to Secured
Party 10 days prior written notice and taken such actions as Secured Party may reasonably require
with respect to such change. Grantor shall keep its chief executive office at the address
specified in Schedule 2, Section (a), and the office where it keeps its records
concerning the Accounts, and the originals of all Chattel Paper and Instruments, at the address
specified in Schedule 2, Section (b), unless Grantor has delivered to Secured Party
30 days prior written notice and taken such actions as Secured Party may reasonably require with
respect to such change. Grantor will hold and preserve such records and Chattel Paper and
Instruments in a commercially reasonable manner and will permit representatives of Secured Party at
any time (or, if no Default exists, upon two Business Days prior notice) during normal business
hours to inspect and make abstracts from and copies of such records and Chattel Paper and
Instruments. Grantor shall bear all costs associated with (a) each inspection that occurs during
the existence of a Default or Event of Default, and (b) one inspection in each calendar year if no
Default or Event of Default exists during such inspection, such costs being part of the Secured
Obligation and payable in accordance with Section 5.6.

     (b) Except as otherwise provided in this Section 4.2(b), Grantor shall continue to
collect, in accordance with commercially reasonable procedures and at its own expense, all amounts
due or to become due Grantor under the Accounts, Chattel Paper, and Instruments. In connection
with such collections, Grantor may take (and, at Secured Party’s direction, shall take) such action
as Grantor or Secured Party may deem necessary or advisable to enforce collection of the Accounts,
Chattel Paper, and Instruments; provided, however, that Secured Party shall have the right, if an
Event of Default exists, without notice to Grantor, to notify the Account Grantors or obligors
under any Accounts, Chattel Paper, and Instruments of the assignment of such Accounts, Chattel
Paper, and Instruments to Secured Party and to direct such Account Grantors or obligors to make
payment of all amounts due or to become due to Grantor thereunder directly to Secured Party and, at
the expense of Grantor, to enforce collection of any such Accounts, Chattel Paper, and Instruments,
and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the
same extent as Grantor might have done or as Secured Party reasonably deems appropriate. Secured
Party shall endeavor to provide notice to Grantor of any action by Secured Party described in the
preceding sentence; provided, any failure to provide any such notice shall not impair any right or
action of Secured Party or any Secured Creditor. If any Event of Default exists, all amounts and
proceeds (including Instruments) received by Grantor in respect of the Accounts, Chattel Paper, and
Instruments shall

17

 

be received in trust for the benefit of Secured Party hereunder, shall be segregated from
other funds and property of Grantor and shall be forthwith paid or delivered over to Secured Party
in the same form as so received (with any necessary endorsement) to be held as cash collateral,
thereafter to be applied as provided in the Credit Agreement. Grantor shall not adjust, settle, or
compromise the amount or payment of any Account, Chattel Paper, or Instrument, release wholly or
partly any Account Grantor or obligor thereof, or allow any credit or discount thereon, except in
the ordinary course of business.

     4.3. Chattel Paper and Instruments. (a) Grantor will: (i) mark conspicuously each item of
Tangible Chattel Paper in the original amount of $10,000 or greater and all Tangible Chattel Paper
if the aggregate original amount of all Tangible Chattel Paper is $50,000 or greater and each of
its Records pertaining to the Collateral with the following legend:

THIS *[INSTRUMENT]*[OTHER RECORD]* IS SUBJECT TO THE SECURITY INTEREST AND LIEN PURSUANT TO
THE SECURITY AGREEMENT DATED ______ ___, 20___ (AS THE SAME MAY BE AMENDED OR RESTATED) MADE
BY *[DEBTOR]*, IN FAVOR OF CITIBANK, N.A., AS SECURED PARTY.

or such other legend, in form and substance reasonably satisfactory to and as specified by Secured
Party, indicating that such Tangible Chattel Paper or Collateral is subject to the pledge,
assignment, and security interest granted hereby; and (ii) if any Collateral shall be or be
evidenced by a promissory note or other Instrument or be Tangible Chattel Paper, and is, in each
case, in the original amount of $10,000 or greater or the aggregate original amount of all
promissory notes, other Instruments and Tangible Chattel Paper is $50,000 or greater, pledge to
Secured Party hereunder and deliver to Secured Party such note, Instrument, or Chattel Paper duly
indorsed and accompanied by duly executed instruments of transfer or assignment, all in form and
substance satisfactory to Secured Party.

     (b) Grantor shall not have any rights in any Electronic Chattel Paper unless Grantor has taken
all actions reasonably necessary to establish in Secured Party control (as that term is defined in
the UCC) of such Electronic Chattel Paper and Secured Party (and no other Person) has control of
each item of Electronic Chattel Paper in the original amount of $10,000 or greater and all
Electronic Chattel Paper if the aggregate original amount of all Electronic Chattel Paper is
$50,000 or greater.

     4.4. Deposit Accounts, Securities Accounts, Commodity Accounts and Letter-of-Credit Rights.
Grantor shall not establish or maintain any (a) Deposit Account or similar bank account not listed
on Schedule 6, (b) Securities Account not listed on Schedule 7 or (c) any Commodity
Account not listed on Schedule 8, unless prior to the establishment of such new Deposit
Account, Securities Account, or Commodity Account Grantor delivers to Secured Party an updated
Schedule as required by the first sentence of Section 4.17 and executes and delivers to
Secured Party assignments of, and control agreements with respect to, such new Deposit Account,
Securities Account, or Commodity Account in such form as Secured Party may reasonably request, and
cause the bank, Securities Intermediary or Commodity Intermediary, as appropriate, in which such
account is or will be maintained, to deliver to Secured Party acknowledgments of the assignment of,
and control agreements with respect to, such account, in form and substance satisfactory to Secured
Party, and take all actions necessary to establish in Secured Party control (as that term is
defined in the UCC) with respect to such Deposit Account,

18

 

Securities Account, and Commodity Account. Contemporaneously with the acquisition by Grantor
of any rights in a Letter of Credit (other than rights as an account party), Grantor shall deliver
to Secured Party an updated Schedule 9 as required by the first sentence of Section
4.17 and shall execute and deliver to Secured Party assignments of, and control agreements with
respect to, such Letter of Credit and Letter-of-Credit Right in such form as Secured Party may
reasonably request, and cause the bank or other Person that is the issuer of such Letter of Credit
to deliver to Secured Party acknowledgments of the assignment of, and control agreements with
respect to, such Letter of Credit and Letter-of-Credit Right in form and substance satisfactory to
Secured Party, and take all actions necessary to establish in Secured Party control (as that term
is defined in the UCC) with respect to such Letter of Credit and Letter-of-Credit Right. Grantor
shall not obtain or maintain any interest in any Securities Entitlement other than Securities
Entitlements held in and subject to a Securities Account described in Schedule 7 with
respect to which Grantor has complied with this Section 4.4. Grantor shall not obtain or
maintain any interest in any Commodity Contract other than Commodity Contracts held in and subject
to a Commodity Account described in Schedule 8 with respect to which Grantor has complied
with this Section 4.4.

     4.5. Transferable Record. Grantor shall, upon acquisition by Grantor of any transferable
record, as that term is defined in the federal Electronic Signatures in Global and National
Commerce Act, or in the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction, promptly notify Secured Party thereof and take such action as Secured Party may
reasonably request to vest in Secured Party control (as that term is defined in the UCC) of such
transferable record or control under the federal Electronic Signatures in Global and National
Commerce Act or, as the case may be, the Uniform Electronic Transactions Act, as so in effect in
such jurisdiction, of such transferable record.

     4.6. Vehicles. Upon the written request of Secured Party, Grantor shall cause the Lien in
favor of Secured Party to be noted on all certificates of title included in or issued with respect
to Collateral.

     4.7. Rolling Stock, Aircraft. Grantor has no interest in any rolling stock or other railroad
equipment or aircraft or aircraft parts (including engines and avionics).

     4.8. Real Property and Leases. With respect to any real or personal property (including
leased real and personal property) in which Grantor has an interest, if required by Secured Party,
Grantor shall use commercially reasonable efforts to cause each lessor and mortgagee and other
lienholder of any such property to execute and deliver subordination and non-disturbance agreements
in form and substance satisfactory to Secured Party.

     4.9. Patents, Trademarks, and Copyrights.

     (a) Grantor shall ensure that an acknowledgment (approved in form and substance by Secured
Party) containing a description of all Collateral consisting of Intellectual Property shall have
been received and recorded by the United States Patent and Trademark Office within one month after
the execution of this Agreement with respect to United States Patents and Trademarks and by the
United States Copyright Office within one month after the execution of this Agreement with respect
to United States registered Copyrights pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. §
205, and otherwise as may be required pursuant to the Laws of

19

 

any other necessary jurisdiction, to protect the validity of and to establish a legal, valid,
and perfected security interest in favor of Secured Party in respect of all Collateral consisting
of Patents, Trademarks, and Copyrights in which a security interest may be perfected by filing,
recording, or registration in the United States and its territories and possessions, or in such
other jurisdictions as may be required by Secured Party, and no further or subsequent filing,
refiling, recording, rerecording, registration, or reregistration is necessary (other than such
actions as are necessary to perfect the security interest with respect to any Collateral consisting
of Patents, Trademarks, and Copyrights (or registration or application for registration thereof)
acquired or developed after the date hereof).

     (b) Except as permitted pursuant to the Loan Documents and where an act or failure to act
could not reasonably be expected to result in a Material Adverse Effect, Grantor (either itself or
through licensees or sublicensees) will not do any act, or omit to do any act, whereby any Patent
may become invalidated or dedicated to the public, and shall continue to mark any products covered
by a Patent with the relevant patent number as necessary and sufficient to establish and preserve
its maximum rights under Applicable Laws.

     (c) Except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect, Grantor (either itself or through licensees or sublicensees) will, for each
Trademark, (i) maintain such Trademark in full force free from any claim of abandonment or
invalidity for non-use, except as permitted pursuant to the Loan Documents; (ii) maintain the
quality of products and services offered under such Trademark, except products and services offered
under Trademarks Disposed of as permitted pursuant to the Loan Documents, (iii) display such
Trademark with notice of United States federal or foreign registration to the extent necessary and
sufficient to establish and preserve its maximum rights under Applicable Law, except as to
Trademarks Disposed of as permitted pursuant to the Loan Documents, and (iv) not use or permit the
use of such Trademark in violation of any third party rights.

     (d) Except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect, Grantor (either itself or through licensees or sublicensees) will, for each work
covered by a Copyright, continue to publish, reproduce, display, adopt, and distribute the work
with appropriate copyright notice as necessary and sufficient to establish and preserve its maximum
rights under Applicable Laws.

     (e) Grantor shall notify Secured Party immediately if it knows or has reason to know that any
Intellectual Property may become abandoned, lost, or dedicated to the public, or of any adverse
determination or development (including the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office, United States
Copyright Office, or any Governmental Authority in any jurisdiction) regarding Grantor’s ownership
of any Intellectual Property, its right to register the same, or its rights with respect to a
License, or to keep and maintain the same, except to the extent that the abandonment, loss, or
dedication to the public, or any adverse determination or development regarding Grantor’s ownership
of any Intellectual Property its right to register the same, or to keep and maintain the same, is
permitted pursuant to the Loan Documents and could not reasonably be expected to have a Material
Adverse Effect.

     (f) In no event shall Grantor, either itself or through any agent, employee, licensee, or
designee, file an application for any Patent, Trademark, or Copyright (or for the registration of

20

 

any Trademark or Copyright) with the United States Patent and Trademark Office, United States
Copyright Office, or any Governmental Authority in any jurisdiction, unless it informs Secured
Party within 5 Business Days of such filing, and, upon request of Secured Party, executes and
delivers any and all agreements, instruments, documents, and papers as Secured Party may reasonably
request to evidence Secured Party’s and Secured Creditors’ security interest in such Patent,
Trademark, or Copyright, and Grantor hereby appoints Secured Party as its attorney-in-fact to
execute and file such writings for the foregoing purposes.

     (g) Except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect, Grantor will take all necessary steps that are consistent with the practice in any
proceeding before the United States Patent and Trademark Office, United States Copyright Office, or
any Governmental Authority in any other jurisdiction as may be reasonably required by Secured
Party, to maintain and pursue each application relating to the Patents, Trademarks, and/or
Copyrights (and to obtain the relevant grant or registration), and to maintain each issued Patent
and each registration of the Trademarks and Copyrights, including timely filings of applications
for renewal, affidavits of use, affidavits of incontestability and payment of maintenance fees,
and, if consistent with good business judgment, to initiate opposition, interference, and
cancellation proceedings against third parties.

     (h) If Grantor has reason to believe that any Collateral consisting of a Patent, Trademark, or
Copyright has been or is about to be infringed, misappropriated, or diluted by a third party,
Grantor promptly shall notify Secured Party and shall, if consistent with good business judgment,
unless Grantor shall reasonably determine that such Patent, Trademark or Copyright is not material
to the conduct of its business or operations, promptly sue for infringement, misappropriation, or
dilution and to recover any and all damages for such infringement, misappropriation, or dilution,
and take such other actions as are appropriate under the circumstances to protect such Collateral.

     (i) If an Event of Default exists, upon the request of Secured Party, Grantor shall use
commercially reasonable efforts to obtain all requisite consents or approvals by the licensor of
each Copyright License, Patent License, or Trademark License to effect the assignment of all of
Grantor’s right, title, and interest thereunder to Secured Party or its designee.

     (j) In no event shall Grantor acquire or purchase any Patent, Trademark, or Copyright unless
it informs Secured Party within 30 Business Days of such purchase or acquisition, and, upon request
of Secured Party, executes and delivers any and all agreements, instruments, documents, and papers
as Secured Party may request to evidence Secured Party’s and Secured Creditors’ security interest
in such purchased or acquired Patent, Trademark, or Copyright. Grantor hereby appoints Secured
Party as its attorney-in-fact to execute and file any application for any Patent, Trademark, or
Copyright (or for the registration of any Trademark or Copyright) with the United States Patent and
Trademark Office, United States Copyright Office, or any Governmental Authority in any other
jurisdiction as may be required by Secured Party, in connection with such purchase or acquisition
of any Patent, Trademark, or Copyright.

     (k) The parties acknowledge and agree that the Intellectual Property is the sole and exclusive
property of Grantor, subject to the terms and conditions stated in this Agreement. Other than in
connection with any security interest in the Intellectual Property that Grantor has granted to
Secured Party, or any rights and remedies of Secured Party and Secured Creditors

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under Laws, Secured Party shall not challenge Grantor’s ownership of the Intellectual
Property. Grantor expressly retains all rights, at such times when no Event of Default exists, to
license third parties to use the Intellectual Property for any purpose whatsoever not in violation
of the Loan Documents and which are not exclusive as to prevent Secured Party from using any of the
Intellectual Property.

     (l) The license granted to Secured Party hereunder shall include the right of Secured Party to
grant sublicenses to others to use the Intellectual Property if an Event of Default exists, and to
enable such sublicensees to exercise any rights and remedies of Secured Party with respect to the
Collateral, as Secured Party reasonably deems necessary or appropriate in the exercise of the
rights and remedies of Secured Party. In any country where sublicenses are incapable of
registration or where registration of a sublicense will not satisfactorily protect the rights of
Grantor and Secured Party, Secured Party shall also have the right to designate other parties as
direct licensees of Grantor to use the Intellectual Property if an Event of Default exists and to
enable such direct licensees to exercise any rights and remedies of Secured Party as such licensees
reasonably deem necessary or appropriate and Grantor agrees to enter into direct written licenses
with the parties as designated on the same terms as would be applicable to a sublicense, and any
such direct license may, depending on the relevant local requirements, be either (a) in lieu of a
sublicense or (b) supplemental to a sublicense. In either case, the parties hereto shall cooperate
to determine what shall be necessary or appropriate in the circumstances. For each sublicense to a
sublicensee and direct license to a licensee, Grantor appoints Secured Party its agent for the
purpose of exercising quality control over the sublicensee. Grantor shall execute this Agreement
and each other agreement necessary to effect the purposes of this Agreement in any form, content
and language suitable for recordation, notice and/or registration in all available and appropriate
agencies of foreign countries as Secured Party may reasonably require.

     (m) In connection with the assignment or other transfer (in whole or in part) of its
obligations to any other Person, Secured Party may assign the license granted herein without
Grantor’s consent (other than any consent required by the Credit Agreement) and upon such
assignment or transfer such other Person shall thereupon become vested with all rights and benefits
in respect thereof granted to Secured Party under this Agreement (to the extent of such assignment
or transfer).

     (n) The parties hereto shall take reasonable action to preserve the confidentiality of the
Intellectual Property; provided, that Secured Party shall not have any liability to any Person for
any disclosure of the Intellectual Property in connection with Secured Party’s enforcement of its
rights under this Agreement or Laws.

     (o) With respect to each franchisee of Grantor who has been granted a license or other right
to use any Intellectual Property of Grantor, Grantor shall use commercially reasonable efforts to
cause to be maintained, at all times that such franchisee has any right to use such Intellectual
Property, an effective license agreement between Grantor and such franchisee.

     4.10. Rights to Dividends and Distributions. With respect to any certificates, bonds, or
other Instruments or Securities constituting a part of the Collateral, Secured Party shall have
authority if an Event of Default exists either to have the same registered in Secured Party’s name
or in the name of a nominee, and, with or without such registration, to demand of the issuer

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thereof, and to receive and receipt for, any and all dividends and distributions (including
any stock or similar dividend or distribution) payable in respect thereof, whether they be ordinary
or extraordinary. Secured Party shall endeavor to provide Grantor with notice of any such action
by Secured Party pursuant to the preceding sentence; provided, any failure to provide any such
notice shall not impair any right or action of Secured Party or any Secured Creditor. If Grantor
shall become entitled to receive or shall receive any interest in or certificate (including,
without limitation, any interest in or certificate representing a dividend or a distribution in
connection with any reclassification, increase, or reduction of capital, or issued in connection
with any reorganization), or any option or rights arising from or relating to any of the
Collateral, whether as an addition to, in substitution of, as a conversion of, or in exchange for
any of the Collateral, or otherwise, Grantor agrees to accept the same as Secured Party’s agent and
to hold the same in trust on behalf of and for the benefit of Secured Party, and to deliver the
same immediately to Secured Party in the exact form received, with appropriate undated stock or
similar powers, duly executed in blank, to be held by Secured Party, subject to the terms hereof,
as Collateral. Unless an Event of Default exists or will result therefrom and subject to the
Credit Agreement, Grantor shall be entitled to receive all cash dividends distributions not
representing a return of capital or liquidating dividend paid or distributed with respect to the
Pledged Equity Interest, other than dividends or distributions or interests payable in Equity
Interests of the issuer of such Pledged Equity Interest which, if evidenced by certificated
securities, shall be delivered to Secured Party as set forth in the immediately preceding sentence,
whether or not an Event of Default exists). Secured Party shall be entitled to all dividends and
distributions, and to any sums paid upon or in respect of any Collateral, upon the liquidation,
dissolution, or reorganization of the issuer thereof which shall be paid to Secured Party to be
held by it as additional collateral security for and application to the Secured Obligations as
provided in the Credit Agreement and other Loan Documents. All dividends, distributions and
Proceeds paid or distributed in respect of the Collateral which are received by Grantor in
violation of this Agreement shall, until paid or delivered to Secured Party, be held by Grantor in
trust as additional Collateral for the Secured Obligations.

     4.11. Right of Secured Party to Notify Issuers. If an Event of Default exists and at such
other times as Secured Party is entitled to receive dividends, distributions and other property in
respect of or consisting of any Collateral which is or represents a Security or Equity Interest,
Secured Party may notify issuers of such Security or Equity Interest to make payments of all
dividends and distributions directly to Secured Party and Secured Party may take control of all
Proceeds of any Securities and Equity Interests. Until Secured Party elects to exercise such
rights, if an Event of Default exists, Grantor, as agent of Secured Party, shall collect, segregate
and hold in trust all dividends and other amounts paid or distributed with respect to Securities
and Equity Interests.

     4.12. Insurance. Grantor shall, at its own expense, maintain insurance in accordance with the
terms set forth in the Credit Agreement. All such policies of insurance shall be written for the
benefit of Secured Party for itself and Secured Creditors and Grantor, as their interests may
appear, and shall provide for at least thirty Business Days’ prior written notice of cancellation
to Secured Party. Upon reasonable request by Secured Party, Grantor shall promptly furnish to
Secured Party evidence of such insurance in form and content reasonably satisfactory to Secured
Party. If Grantor fails to perform or observe any applicable covenants as to insurance, Secured
Party may at its option obtain insurance on only Secured Party’s and Secured Creditors’ interest in
the Collateral, any premium thereby paid by Secured Party to

23

 

become part of the Secured Obligations, bear interest prior to the existence of an Event of
Default, at the then applicable Base Rate, and during the existence of an Event of Default, at the
Default Rate. If Secured Party maintains such substitute insurance, the premium for such insurance
shall be due on demand and payable by Grantor to Secured Party. Grantor grants and appoints
Secured Party its attorney-in-fact to endorse any check or draft that may be payable to Grantor in
order to collect any payments in respect of insurance, including any refunds of unearned premiums
in connection with any cancellation, adjustment, or termination of any policy of insurance.
Secured Party shall endeavor to provide Grantor with a copy of each such item endorsed by Secured
Party; provided, any failure to provide any such copy shall not impair any right or action of
Secured Party or any Secured Creditor. Any such sums collected by Secured Party shall be credited,
except to the extent applied to the purchase by Secured Party of similar insurance, to any amounts
then owing on the Secured Obligations in accordance with the Credit Agreement.

     4.13. Transfers and Other Liens. Except as permitted by the Credit Agreement, Grantor shall
not (a) sell, assign (by operation of Law or otherwise) or otherwise dispose of, or grant any
option with respect to, any of the Collateral, except as permitted under the Credit Agreement and
the other Loan Documents, or (b) create or permit to exist any Lien, option, or other charge or
encumbrance upon or with respect to any of (i) the Pledged Equity Interests, or (ii) the Collateral
(other than the Pledged Equity Interests), except for Permitted Liens.

     4.14. Secured Party Appointed Attorney-in-Fact. Grantor hereby irrevocably appoints Secured
Party Grantor’s attorney-in-fact, with full authority in the place and stead of Grantor and in the
name of Grantor or otherwise to take any action and to execute any instrument which Secured Party
may deem necessary or advisable to accomplish the purposes of this Agreement, including, without
limitation (provided, Secured Party shall not have any duty to take any such action or execute any
instrument):

     (a) to obtain and adjust insurance required to be paid to Secured Party pursuant to
Section 4.12;

     (b) to ask, demand, collect, sue for, recover, compromise, receive, and give acquittance and
receipts for moneys due and to become due under or in connection with the Collateral;

     (c) to receive, indorse, and collect any drafts or other Instruments, Documents, and Chattel
Paper, in connection therewith; and

     (d) to file any claims or take any action or institute any proceedings which Secured Party may
deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce
compliance with the terms and conditions of any Collateral or the rights of Secured Party with
respect to any of the Collateral.

     DEBTOR HEREBY IRREVOCABLY GRANTS TO SECURED PARTY DEBTOR’S PROXY (EXERCISABLE IF AN EVENT OF
DEFAULT EXISTS) TO VOTE ANY SECURITIES INCLUDED IN COLLATERAL (INCLUDING ANY PLEDGED EQUITY
INTEREST) AND APPOINTS SECURED PARTY DEBTOR’S ATTORNEY-IN-FACT (EXERCISABLE IF AN EVENT OF DEFAULT
EXISTS) TO PERFORM ALL

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OBLIGATIONS OF DEBTOR UNDER THIS AGREEMENT AND TO EXERCISE ALL OF SECURED PARTY’S AND EACH
OTHER SECURED CREDITOR’S RIGHTS HEREUNDER. THE PROXY AND EACH POWER OF ATTORNEY HEREIN GRANTED,
AND EACH STOCK POWER AND SIMILAR POWER NOW OR HEREAFTER GRANTED (INCLUDING ANY EVIDENCED BY A
SEPARATE WRITING), ARE COUPLED WITH AN INTEREST AND ARE IRREVOCABLE PRIOR TO THE RELEASE DATE.

     Secured Party shall endeavor to provide Grantor with notice of any action by Secured Party
pursuant to this Section 4.14; provided, any failure to provide any such notice shall not
impair any right or action of Secured Party or any Secured Creditor.

     4.15. Dilution of Ownership. As to any Pledged Equity Interests, Grantor will not consent to
or approve of the issuance of (a) any additional shares or units of any class of Equity Interests
of such issuer (unless promptly upon issuance additional Equity Interests are pledged and delivered
to Secured Party pursuant to the terms hereof to the extent necessary to give Secured Party a
security interest after such issuance in at least the same percentage of such issuer’s outstanding
securities or other Equity Interest as Secured Party had before such issuance), (b) any instrument
convertible voluntarily by the holder thereof or automatically upon the occurrence or
non-occurrence of any event or condition into, or exchangeable for, any such securities or other
Equity Interests, or (c) any warrants, options, contracts or other commitments entitling any third
party to purchase or otherwise acquire any such securities or other Equity Interests.

     4.16. Waiver. To the extent not prohibited by Applicable Law, Grantor agrees that any
provision of any Organization Document of any issuer of any Collateral, any Applicable Law, any
certificate or instrument evidencing Collateral or any other governance document that in any manner
restricts, prohibits or provides conditions to (a) the grant of a Lien on any interest in such
issuer or any other Collateral, (b) any transfer of any interest in such issuer or any other
Collateral, (c) any change in management or control of such issuer or any other Collateral, (d) the
admission of any transferee of any Collateral as a shareholder, member, partner or other equity
holder of the issuer of such Collateral, or (e) any other exercise by Secured Party or any other
Secured Creditor of any rights pursuant to this Agreement, any other Loan Document or Law shall not
apply to (i) the grant of any Lien hereunder, (ii) the execution, delivery and performance of this
Agreement by Grantor, or (iii) the foreclosure or other realization upon any interest in any
Collateral. Furthermore, Grantor will not permit any amendment to or restatement of any
Organization Document or any other governance document or enter into or permit to exist any
agreement that in any manner adversely affects Secured Party’s ability to foreclose on any
Collateral or which conflicts with the provisions of this Section 4.16 without the prior
written consent of Secured Party.

     4.17. Restrictions on Securities. No issuer of any Pledged Equity Interests which is either a
partnership or limited liability company shall amend or restate its Organization Documents to
provide that any Equity Interest of such issuer is a security governed by Chapter 8 of the UCC or
permit any Equity Interest of such issuer to be evidenced by a certificate or other instrument. No
certificate or other instrument evidencing or constituting any Pledged Equity Interest shall
contain any restriction on transfer or other legend not acceptable to Secured Party. With respect
to each certificate that contains any such legend that is not acceptable to Secured

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Party, Grantor shall cause the issuer of each such certificate to be reissued in a form
acceptable to Secured Party.

     4.18. Changes to Representations, Schedules. Not later than 30 days after the last day of
each fiscal quarter of Borrower during which any information disclosed on any Schedule to this
Agreement changed and at such other times as required by this Agreement, Grantor shall deliver to
Secured Party any updated Schedule (provided, the delivery of any updated Schedule shall not be
deemed a waiver of any obligation of Grantor under any Loan Document and such updated Schedule
shall not be effective until it is accepted by Secured Party). Grantor shall promptly notify
Secured Party of any change in any representation herein and any information on any Schedule hereto
if such change could reasonably be expected to have a Material Adverse Effect.

ARTICLE V

RIGHTS AND POWERS OF SECURED PARTY.

     5.1. Secured Party May Perform. If Grantor fails to perform any agreement contained herein,
Secured Party may itself perform, or cause performance of, such agreement, and the expenses of
Secured Party incurred in connection therewith shall be payable by each Grantor under Section
5.6. Secured Party shall endeavor to provide Grantor with notice of any action by Secured
Party pursuant to the preceding sentence; provided, any failure to provide any such notice shall
not impair any right or action of Secured Party or any Secured Creditor.

     5.2. Secured Party’s Duties. The powers conferred on Secured Party hereunder are solely to
protect Secured Party’s and Secured Creditors’ interest in the Collateral and shall not impose any
duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its
possession and the accounting for moneys actually received by Secured Party and Secured Creditors
hereunder, neither Secured Party nor any other Secured Creditor shall have any duty as to any
Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders, or other matters relative to any Collateral, whether or not Secured Party or
any other Secured Creditor has or is deemed to have knowledge of such matters, or as to the taking
of any necessary steps to preserve rights against prior parties or any other rights pertaining to
any reasonable care in the custody and preservation of any Collateral in its possession if such
Collateral is accorded treatment substantially equal to that which Secured Party accords its own
property. Except as provided in this Section 5.2, neither Secured Party nor any other
Secured Creditor shall have any duty or liability to protect or preserve any Collateral or to
preserve rights pertaining thereto. Nothing contained in this Agreement shall be construed as
requiring or obligating Secured Party or any other Secured Creditor, and neither Secured Party nor
any other Secured Creditor shall be required or obligated, to (a) present or file any claim or
notice or take any action, with respect to any Collateral or in connection therewith or (b) notify
Grantor of any decline in the value of any Collateral.

     5.3. Events of Default. The occurrence of any one or more of the following events shall
constitute an Event of Default (each, an “Event of Default”):

     (a) Any representation or warranty made by or on behalf of Grantor under or in connection with
this Agreement shall be false as of the date on which made.

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     (b) The breach by Grantor of any of the terms or provisions of Article IV or
Article V.

     (c) The breach by Grantor (other than a breach which constitutes an Event of Default under
Section 5.3(a) or (b)) of any of the terms or provisions of this Agreement which is
not remedied within 10 days after first to occur of (i) the giving of written notice to Grantor by
Secured Party, and (ii) Grantor having knowledge of the existence of such breach.

     (d) The existence of an Event of Default (as defined in the Credit Agreement).

     5.4. Remedies. If an Event of Default exists:

     (a) Secured Party may exercise in respect of the Collateral, in addition to other rights and
remedies provided for herein or otherwise available to it or any other Secured Creditor pursuant to
any Applicable Law, all the rights and remedies of a secured party on default under the Uniform
Commercial Code in effect in the State of Texas at that time (whether or not the Uniform Commercial
Code applies to the affected Collateral), and also may require Grantor to, and Grantor will at its
expense and upon request of Secured Party forthwith, assemble all or part of the Collateral as
directed by Secured Party and make it available to Secured Party at a place to be designated by
Secured Party which is reasonably convenient to both parties at public or private sale, at any of
Secured Party’s offices or elsewhere, for cash, on credit or for future delivery, and upon such
other terms as Secured Party may deem commercially reasonable. Grantor agrees that, to the extent
notice of sale shall be required by Law, ten days’ notice to Grantor of the time and place of any
public sale or the time after which any private sale is to be made shall constitute reasonable
notification. Secured Party shall not be obligated to make any sale of Collateral regardless of
notice of sale having been given. Secured Party may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned.

     (b) All cash proceeds received by Secured Party upon any sale of, collection of, or other
realization upon, all or any part of the Collateral shall be applied as set forth in the Credit
Agreement.

     (c) All payments received by Grantor under or in connection with any Collateral shall be
received in trust for the benefit of Secured Party, shall be segregated from other funds of
Grantor, and shall be forthwith paid or delivered over to Secured Party in the same form as so
received (with any necessary endorsement).

     (d) Because of the Securities Act of 1933, as amended (“Securities Act”), and other Laws,
including without limitation state “blue sky” Laws, or contractual restrictions or agreements,
there may be legal restrictions or limitations affecting Secured Party in any attempts to dispose
of the Collateral and the enforcement of rights under this Agreement. For these reasons, Secured
Party is authorized by Grantor, but not obligated, if any Event of Default exists, to sell or
otherwise dispose of any of the Collateral at private sale, subject to an investment letter, or in
any other manner which will not require the Collateral, or any part thereof, to be registered in
accordance with the Securities Act, or any other Law. Secured Party is also hereby authorized by
Grantor, but not obligated, to take such actions, give such notices, obtain such consents, and

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do such other things as Secured Party may deem required or appropriate under the Securities
Act or other securities Laws or other Laws or contractual restrictions or agreements in the event
of a sale or disposition of any Collateral. Grantor understands that Secured Party may in its
discretion approach a restricted number of potential purchasers and that a sale under such
circumstances may yield a lower price for the Collateral than would otherwise be obtainable if same
were registered and/or sold in the open market. No sale so made in good faith by Secured Party
shall be deemed to be not “commercially reasonable” because so made. Grantor agrees that if an
Event of Default exists, and Secured Party sells the Collateral or any portion thereof at any
private sale or sales, Secured Party shall have the right to rely upon the advice and opinion of
appraisers and other Persons, which appraisers and other Persons are acceptable to Secured Party,
as to the best price reasonably obtainable upon such a private sale thereof. In the absence of
actual fraud or gross negligence, such reliance shall be conclusive evidence that Secured Party and
the other Secured Creditors handled such matter in a commercially reasonable manner under
Applicable Law. To the extent required by applicable Law, Secured Party shall provide notice to
Grantor of an action taken by Secured Party pursuant to this Section 5.4(d).

     (e) After notice to Grantor, Secured Party and such Persons as Secured Party may reasonably
designate shall have the right, at Grantor’s own cost and expense, to verify under reasonable
procedures, the validity, amount, quality, quantity, value, condition, and status of, or any other
matter relating to, the Collateral, including, in the case of Accounts or Collateral in the
possession of any third person, by contacting Account Grantors or the third person possessing such
Collateral for the purpose of making such a verification. Secured Party shall have the absolute
right to share any information it gains from such inspection or verification with any Secured
Creditor.

     (f) For purposes of enabling Secured Party to exercise rights and remedies under this
Agreement, Grantor grants (to the extent not otherwise prohibited by a license with respect
thereto) to Secured Party an irrevocable, nonexclusive license (exercisable without payment of
royalty or other compensation to Grantor or any other Person; provided, that if the license granted
to Secured Party is a sublicense, Grantor shall be solely responsible for, and indemnify Secured
Party against, any royalty or other compensation payable to Grantor’s licensor or other Person) to
use all of Grantor’s Software, and including in such license reasonable access to all media in
which any of the licensed items may be recorded and all related manuals. The use of such license
by Secured Party shall be exercised, at the option of Secured Party, if an Event of Default exists;
provided, that any license, sub-license, or other transaction entered into by Secured Party in
accordance herewith shall be binding upon Grantor notwithstanding any subsequent cure or waiver of
an Event of Default. Secured Party shall endeavor to provide Grantor with notice of exercise of
any rights with respect to such license; provided, any failure to provide any such notice shall not
impair any right or action of Secured Party or any Secured Creditor.

     (g) For the purpose of enabling Secured Party to exercise rights and remedies under this
Agreement, Grantor grants (to the extent not otherwise prohibited by a license with respect
thereto) to Secured Party an irrevocable, nonexclusive license (exercisable without payment of
royalty or other compensation to Grantor or any other Person; provided, that if the license granted
to Secured Party is a sublicense, Grantor shall be solely responsible for, and indemnify Secured
Party against, any royalty or other compensation payable to Grantor’s licensor or other Person) to
use, license, or sub-license any of the Collateral consisting of Intellectual Property and

28

 

wherever the same may be located, and including in such license reasonable access to all media
in which any of the licensed items may be recorded or stored and to all Software used for the use,
compilation, or printout thereof. In connection therewith, Grantor shall execute and deliver a
license agreement to Secured Party to evidence the grant of such license. The use of such license
by Secured Party shall be exercised, at the option of Secured Party, if an Event of Default exists;
provided, that any license, sub-license, or other transaction entered into by Secured Party in
accordance herewith shall be binding upon Grantor notwithstanding any subsequent cure or waiver of
an Event of Default. Secured Party shall endeavor to provide Grantor with notice of exercise of
any rights with respect to such license; provided, any failure to provide any such notice shall not
impair any right or action of Secured Party or any Secured Creditor.

     5.5. Appointment of Receiver or Trustee. In connection with the exercise of Secured Party’s
rights under this Agreement or any other Loan Document, Secured Party may, if an Event of Default
exists, obtain the appointment of a receiver or trustee to assume, upon receipt of any necessary
judicial or other Governmental Authority consents or approvals, control of or ownership of any
Collateral. Such receiver or trustee shall have all rights and powers provided to it by Law or by
court order or provided to Secured Party under this Agreement or any other Loan Document. Upon the
appointment of such trustee or receiver, Grantor shall cooperate, to the extent necessary or
appropriate, in the expeditious preparation, execution, and filing of an application to any
Governmental Authority or for consent to the transfer of control or assignment of such Collateral
to the receiver or trustee. To the extent required by applicable Law, Secured Party shall provide
to Grantor notice of the request for or appointment of such receiver or trustee.

     5.6. Further Approvals Required.

     (a) In connection with the exercise by Secured Party of rights under this Agreement that
affects the disposition of or use of any Collateral (including rights relating to the disposition
of or operation under any Permit), it may be necessary to obtain the prior consent or approval of
Governmental Authorities and other Persons to a transfer or assignment of Collateral. Grantor shall
execute, deliver, and file, and hereby appoints (to the extent not prohibited by Applicable Law)
Secured Party as its attorney (exercisable if an Event of Default exists), to execute, deliver, and
file on Grantor’s behalf and in Grantor’s name, all applications, certificates, filings,
instruments, and other documents (including without limitation any application for an assignment or
transfer of control or ownership) that may be necessary or appropriate, in Secured Party’s
reasonable opinion, to obtain such consents or approvals. Secured Party shall endeavor to provide
Grantor with a copy of each such document executed, delivered or filed by Secured Party; provided,
any failure to provide any such copy shall not impair any right or action of Secured Party or any
Secured Creditor. Grantor shall use commercially reasonable efforts to obtain the foregoing
consents, waivers, and approvals, including receipt of consents, waivers, and approvals under
applicable agreements regardless of whether a Default or Event of Default exists.

     (b) Grantor acknowledges that there is no adequate remedy at Law for failure by it to comply
with the provisions of this Section 5.5 and that such failure would not be adequately
compensable in damages, and therefore agrees that this Section 5.5 may be specifically
enforced.

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     5.7. INDEMNITY AND EXPENSES.

     (a) DEBTOR WILL UPON DEMAND PAY TO SECURED PARTY AND EACH SECURED CREDITOR THE AMOUNT OF ANY
AND ALL EXPENSES, INCLUDING THE FEES AND EXPENSES OF ITS COUNSEL AND OF ANY EXPERTS AND AGENTS,
WHICH SECURED PARTY OR SUCH SECURED CREDITOR MAY INCUR IN CONNECTION WITH (I) THE CUSTODY,
PRESERVATION, USE OR OPERATION OF, OR THE SALE OF, COLLECTION FROM, OR OTHER REALIZATION UPON, ANY
OF THE COLLATERAL, (II) THE EXERCISE OR ENFORCEMENT OF ANY OF THE RIGHTS OF SECURED PARTY OR ANY
SECURED CREDITOR HEREUNDER, OR (III) THE FAILURE BY DEBTOR TO PERFORM OR OBSERVE ANY OF THE
PROVISIONS HEREOF.

     (b) DEBTOR WILL UPON DEMAND PAY TO SECURED PARTY AND EACH SECURED CREDITOR THE AMOUNT OF ANY
AND ALL REASONABLE EXPENSES, INCLUDING THE REASONABLE FEES AND EXPENSES OF ITS COUNSEL AND OF ANY
EXPERTS AND AGENTS, WHICH SECURED PARTY OR SUCH SECURED CREDITOR MAY INCUR IN CONNECTION WITH THE
ADMINISTRATION OF THIS AGREEMENT.

     (c) DEBTOR SHALL INDEMNIFY SECURED PARTY AND SECURED CREDITORS, AND EACH RELATED PARTY OF ANY
OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD EACH
INDEMNITEE HARMLESS FROM, AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES
(INCLUDING THE REASONABLE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY INDEMNITEE),
INCURRED BY ANY INDEMNITEE OR ASSERTED AGAINST ANY INDEMNITEE BY ANY THIRD PARTY OR BY DEBTOR OR
ANY OTHER LOAN PARTY ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF THE EXECUTION OR
DELIVERY OF THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED
HEREBY OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER
OR THEREUNDER, THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR, IN THE CASE
OF SECURED PARTY (AND ANY SUB-AGENT THEREOF) AND ITS RELATED PARTIES ONLY, THE ADMINISTRATION OF
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

ARTICLE VI

MISCELLANEOUS

     6.1. Waiver of Subrogation. Until the Release Date, Grantor shall not assert, enforce, or
otherwise exercise (a) any right of subrogation to any of the rights or Liens of Secured Party, any
other Secured Creditor or any Person acting for the benefit of Secured Party or any other Secured
Creditor against any other Loan Party or any Collateral or other security, or (b) any right of
recourse, reimbursement, contribution, indemnification, or similar right against any other Loan
Party on all or any part of the Secured Obligations or any other Loan Party, and Grantor

30

 

hereby waives any and all of the foregoing rights and the benefit of, and any right to
participate in, and Collateral or other security given to Secured Party or any other Secured
Creditor or any other Person acting for the benefit of Secured Party or any other Secured Creditor,
to secure payment of the Secured Obligations. This Section 6.1 shall survive the
termination of this Agreement, and any satisfaction and discharge of Grantor by virtue of any
payment, court order, or Law.

     6.2. Cumulative Rights. All rights of Secured Party and each other Secured Creditor under the
Loan Documents, Swap Contracts and Cash Management Documents are cumulative of each other and of
every other right which Secured Party and each other Secured Creditor may otherwise have at Law or
in equity or under any other agreement. The exercise of one or more rights shall not prejudice or
impair the concurrent or subsequent exercise of other rights.

     6.3. Amendments; Waivers. No amendment or waiver of any provision of this Agreement, and no
consent to any departure by the Grantor, shall be effective unless in writing signed by the Secured
Party and Grantor and acknowledged by the Administrative Agent and, if required, by Required
Lenders, and each such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given.

     6.4. Continuing Security Interest. This Agreement creates a continuing security interest in
the Collateral and shall (a) remain in full force and effect until the Release Date, (b) be binding
upon Grantor, its successors and assigns permitted hereby, and (c) inure to the benefit of, and be
enforceable by, Secured Party and its successors, transferees and assigns. Upon the occurrence of
the Release Date, this Agreement and all obligations (other than those expressly stated to survive
such termination) of Secured Party and Grantor hereunder shall terminate, all without delivery of
any instrument or performance of any act by any party, and all rights to the Collateral shall
revert to the granting parties and Secured Party will, at Grantor’ expense, execute and deliver to
Grantor such documents (including without limitation UCC termination statements) as Grantor shall
reasonably request to evidence such termination and shall deliver to Grantor any Collateral held by
Secured Party hereunder. Grantor agrees that to the extent that Secured Party or any other Secured
Creditor receives any payment or benefit and such payment or benefit, or any part thereof, is
subsequently invalidated, declared to be fraudulent or preferential, set aside or is required to be
repaid to a trustee, receiver, or any other Person under any Grantor Relief Law, common law or
equitable cause, then to the extent of such payment or benefit, the Secured Obligations or part
thereof intended to be satisfied shall be revived and continued in full force and effect as if such
payment or benefit had not been made and, further, any such repayment by Secured Party or any other
Secured Creditor, to the extent that Secured Party or any other Secured Creditor did not directly
receive a corresponding cash payment, shall be added to and be additional Secured Obligations
payable upon demand by Secured Party or any other Secured Creditor and secured hereby, and, if the
Lien and security interest hereof shall have been released, such Lien and security interest shall
be reinstated with the same effect and priority as on the date of execution hereof all as if no
release of such Lien or security interest had ever occurred.

31

 

     6.5. GOVERNING LAW; WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION AND SERVICE OF PROCESS.

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

     (b) DEBTOR, SECURED PARTY AND EACH SECURED CREDITOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW
YORK SITTING IN NEW YORK, NEW YORK AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT
OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND DEBTOR, SECURED PARTY AND EACH SECURED CREDITOR IRREVOCABLY AND UNCONDITIONALLY
AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW, IN SUCH
FEDERAL COURT. DEBTOR, SECURED PARTY AND EACH SECURED CREDITOR, AGREES THAT A FINAL JUDGMENT IN
ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY
OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT SECURED PARTY OR ANY SECURED CREDITOR MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST DEBTOR OR ITS PROPERTIES IN THE COURTS OF OR ANY JURISDICTION.

     (c) DEBTOR, SECURED PARTY AND EACH SECURED CREDITOR, IRREVOCABLY AND UNCONDITIONALLY WAIVES,
TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN SECTION 6.5(b). DEBTOR,
SECURED PARTY AND EACH SECURED CREDITOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT NOT
PROHIBITED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT.

     6.6. Waiver of Right to Trial by Jury. DEBTOR, SECURED PARTY AND EACH SECURED CREDITOR HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING
UNDER THIS AGREEMENT OR ANY OTHER 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

32

 

TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND DEBTOR, SECURED PARTY AND EACH SECURED
CREDITOR 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.

     6.7. Secured Party’s Right to Use Agents. Secured Party may exercise its rights under this
Agreement through an agent or other designee.

     6.8. No Interference, Compensation or Expense. Secured Party may exercise its rights under
this Agreement (a) without resistance or interference by Grantor and (b) without payment of any
rent, license fee, or compensation of any kind to Grantor.

     6.9. Waivers of Rights Inhibiting Enforcement. Grantor waives (a) any claim that, as to any
part of the Collateral, a private sale, should Secured Party elect so to proceed, is, in and of
itself, not a commercially reasonable method of sale for such Collateral, (b) except as otherwise
provided in this Agreement, TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW, NOTICE OR
JUDICIAL HEARING IN CONNECTION WITH SECURED PARTY’S DISPOSITION OF ANY OF THE COLLATERAL INCLUDING
ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH RIGHT THAT
EACH GRANTOR WOULD OTHERWISE HAVE UNDER ANY LAW AND ALL OTHER REQUIREMENTS AS TO THE TIME, PLACE
AND TERMS OF SALE OR OTHER REQUIREMENTS WITH RESPECT TO THE ENFORCEMENT OF SECURED PARTY’S OR
SECURED CREDITORS’ RIGHTS HEREUNDER and (c) all rights of redemption, appraisement or valuation.

     6.10. Waiver. To the fullest extent permitted by Applicable Law, Grantor, which is a partner
in any partnership in which any Pledged Partnership Interests are being pledged hereunder, a member
in any limited liability company in which any Pledged LLC Interests are being pledged hereunder, an
equity holder in any corporation in which any Pledged Stock is being pledged hereunder, or a
trustee, settlor or beneficiary of any trust in which any Pledged Trust Interests are being pledged
hereunder, hereby agrees that any provision of any Organization Document, any Applicable Law or any
other governance document that in any manner restricts, prohibits or provides conditions to (a) the
grant of a Lien on any interest in such partnership, limited liability company, corporation or
trust, (b) any transfer of any interest in such partnership, limited liability company, corporation
or trust, (c) any change in management or control of such partnership, limited liability company,
corporation or trust, or (d) any other exercise by Secured Party or any other Secured Creditor of
any rights pursuant to this Agreement, any other Loan Document or Law shall not apply to (i) the
grant of any Lien hereunder, (ii) the execution, delivery and performance of this Agreement by
Grantor, or (iii) the foreclosure or other realization upon any interest in any Pledged Equity
Interest. Furthermore, Grantor agrees that it will not permit any amendment to or restatement of
any Organization Document or any other governance document in any manner to adversely affect
Secured Party’s

33

 

ability to foreclose on any Pledged Equity Interest or which conflicts with the provisions of
this Section 6.10 without the prior written consent of Secured Party.

     6.11. Obligations Not Affected. To the fullest extent not prohibited by Applicable Law, the
obligations of Grantor under this Agreement shall remain in full force and effect without regard
to, and shall not be impaired or affected by:

     (a) any amendment, addition, or supplement to, or restatement of any Loan Document, Swap
Contract, Cash Management Document or any instrument delivered in connection therewith or any
assignment or transfer thereof;

     (b) any exercise, non-exercise, or waiver by Secured Party or any other Secured Creditor of
any right, remedy, power, or privilege under or in respect of, or any release of any guaranty, any
collateral, or the Collateral or any part thereof provided pursuant to, this Agreement, any Loan
Document, any Swap Contract or any Cash Management Document;

     (c) any waiver, consent, extension, indulgence, or other action or inaction in respect of this
Agreement, any other Loan Document, any Swap Contract or any Cash Management Document or any
assignment or transfer of any thereof;

     (d) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation, or the like of any Loan Party or any other Person, whether or not Grantor shall have
notice or knowledge of any of the foregoing; or

     (e) any other event which may give Grantor or any other Loan Party a defense to, or a
discharge of, any of its obligations under any Loan Document, any Swap Contract or any Cash
Management Document.

     6.12. Notices and Deliveries. All notices and other communications provided for herein shall
be effectuated in the manner provided for in Section 10.02 of the Credit Agreement;
provided, that notices to Grantor shall be addressed to Grantor’s address in Schedule 2,
Section(a), to the attention of President.

     6.13. Severability. If any provision of this Agreement 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.

     6.14. Successors and Assigns. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns (including,
as to Grantor, all Persons who may become bound as a debtor or a new debtor to this Agreement);
provided, Grantor may not assign any of its rights or obligations under this Agreement.

34

 

     6.15. Counterparts. This Agreement may be executed in any number of counterparts (and by
different parties hereto in different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract.

     6.16. [Maximum Liability. Anything in this Agreement to the contrary notwithstanding, the
obligations of Grantor hereunder shall be limited to a maximum aggregate amount equal to the
largest amount that would not render its obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States Code or any applicable
provisions of comparable Law (collectively, the “Fraudulent Transfer Laws”), in each case after
giving effect to all other liabilities of Grantor, contingent or otherwise, that are relevant under
the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of Grantor in
respect of intercompany indebtedness to other Loan Parties or Affiliates of other Loan Parties to
the extent that such indebtedness would be discharged in an amount equal to the amount paid or
property conveyed by Grantor under the Loan Documents) and after giving effect as assets, subject
to Section 6.2, to the value (as determined under the applicable provisions of the
Fraudulent Transfer Laws) of any rights to subrogation or contribution of Grantor pursuant to (a)
Applicable Law or (b) any agreement providing for an equitable allocation among Grantor and other
Loan Parties of obligations arising under the Loan Documents, Swap Contracts and Cash Management
Documents.]

     6.17. ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT AMONG 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 AMONG THE
PARTIES.

The Remainder of This Page Is Intentionally Left Blank.

35

 

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

	 	 	 	 	 	 	 	 	 
	 	 	DEBTOR:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	Print Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Security Agreement Signature Page

 

 

	 	 	 	 	 	 	 	 	 
	 	 	SECURED PARTY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CITIBANK, N.A., as Secured Party	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	Print Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Security Agreement Signature Page

 

 

	 	 	 
	STATE OF __________________
	 	§
	COUNTY OF
	 	§

     This instrument
 was acknowledged before me on the _________ day of __________,
20__________, by __________,
_________ of __________, a __________,
 on behalf of said __________.

[S E A L]

	 	 	 	 	 	 	 	 	 
	 

	 	Notary Public:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Printed Name:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	My commission expires:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 
	STATE OF __________________
	 	§
	COUNTY OF
	 	§

     This instrument was
 acknowledged before me on the _________ day of ___,
20__________, by _________,
_________ of CITIBANK, N.A., a national banking association, on behalf of said association.

[S E A L]

	 	 	 	 	 	 	 	 	 
	 

	 	Notary Public:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Printed Name:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	My commission expires:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Security Agreement Signature Page

 

 

SCHEDULE 1

ORGANIZATION AND NAMES

	(a)	 	Jurisdiction of organization:
	 
	(b)	 	Entity type:
	 
	(c)	 	Changes in jurisdiction of organization, name or entity type:
	 
	(d)	 	Trade names:
	 
	(e)	 	Federal Taxpayer Identification Number:
	 
	(f)	 	Corporate or other organizational number:
	 
	(g)	 	UCC Filing Office:

 

 

SCHEDULE 2

Addresses

(a) Chief Executive Office:

	 	 	 	 	 	 	 	 	 
	Street Address and Zip or	 	Mailing Address and Zip	 	 	 	 	 	 
	Postal Code	 	or Postal Code	 	County/ Independent City	 	State	 	Country
	 	 	 	 	 	 	 	 	 

(b) Locations where books and records are kept:

	 	 	 	 	 	 	 	 	 
	Street Address and Zip or	 	Mailing Address and Zip	 	 	 	 	 	 
	Postal Code	 	or Postal Code	 	County/ Independent City	 	State	 	Country
	 	 	 	 	 	 	 	 	 

(c) Locations where tangible personal property are kept:

	 	 	 	 	 	 	 	 	 
	Street Address and Zip or	 	Mailing Address and Zip	 	 	 	 	 	 
	Postal Code	 	or Postal Code	 	County/Independent City	 	State	 	Country
	 	 	 	 	 	 	 	 	 

(d) Locations of owned and leased real property:

	 	 	 	 	 	 	 	 	 
	Street Address and Zip or	 	Mailing Address and Zip	 	County/Independent	 	 	 	 
	Postal Code	 	or Postal Code	 	City	 	State	 	Country
	 	 	 	 	 	 	 	 	 

 

 

(e) All other places of business not listed above:

	 	 	 	 	 	 	 	 	 
	Street Address and	 	Mailing Address and	 	County/ Independent	 	 	 	 
	Zip or Postal Code	 	Zip or Postal Code	 	City	 	State	 	Country
	 	 	 	 	 	 	 	 	 

(f) Persons (other than the Grantor) who have possession of Collateral or other property:

	 	 	 	 	 	 	 
	 	 	 	 	Collateral	 	 
	Name	 	Address	 	possessed	 	Country
	 	 	 	 	 	 	 

 

 

SCHEDULE 3

Equity Interests

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SCHEDULE 4

Indebtedness Evidenced By Instruments

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SCHEDULE 5(a)

Trademarks Registration

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Nature of	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Grantor’s Interest	 	 	 	 	 	 	 	Goods or	 	 	 	 
	Registered	 	(e.g. owner,	 	Registered	 	Registration	 	Int’l Class	 	Services	 	Date	 	Country of
	Owner	 	licensee)	 	Trademark	 	No.	 	Covered	 	Covered	 	Registered	 	Registration
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

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SCHEDULE 5(b)

Trademark Applications

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Nature of	 	Trademark	 	 	 	 	 	 	 	 	 	 
	 	 	Grantor’s	 	Application	 	 	 	 	 	 	 	 	 	 
	 	 	Interest	 	relates to	 	 	 	 	 	Goods or	 	Date	 	Country
	Registered	 	(e.g. owner,	 	following	 	Serial	 	Int’l Class	 	Services	 	of	 	of
	Owner	 	licensee)	 	Trademark	 	No.	 	Covered	 	Covered	 	Application	 	Application
	 	 	 	 	To be Provided By Grantor	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

The Remainder of This Page Is Intentionally Left Blank.

 

 

SCHEDULE 5(c)

Registered Patents

	 	 	 	 	 	 	 	 	 
	 	 	Nature of Grantor’s	 	 	 	 	 	 
	 	 	Interest	 	 	 	 	 	 
	Registered Owner	 	(e.g. owner, licensee)	 	Registered Patent No.	 	Issue Date	 	Country of Issue
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 

The Remainder of This Page Is Intentionally Left Blank.

 

 

SCHEDULE 5(d)

Patent Applications

	 	 	 	 	 	 	 	 	 
	 	 	Nature of Grantor’s	 	 	 	 	 	 
	 	 	Interest	 	 	 	 	 	 
	Registered Owner	 	(e.g. owner, licensee)	 	Serial No.	 	Filing Date	 	Country of Issue
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 

The Remainder of This Page Is Intentionally Left Blank.

 

 

SCHEDULE 5(e)

Copyright Registrations

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Nature of Grantor’s	 	 	 	 	 	 	 	 	 	 
	 	 	Interest	 	 	 	 	 	 	 	 	 	 
	Registered Owner	 	(e.g. owner, licensee)	 	Serial No.	 	Copyright	 	Issue Date	 	Country of Issue	 	 
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 	 	 	 	 

The Remainder of This Page Is Intentionally Left Blank.

 

 

SCHEDULE 5(f)

Copyright Applications

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Nature of Grantor’s	 	 	 	 	 	 	 	 
	 	 	Interest	 	 	 	 	 	 	 	Country of
	Registered Owner	 	(e.g. owner, licensee)	 	Registration No.	 	Copyright	 	Application Date	 	Application
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 	 	 

The Remainder of This Page Is Intentionally Left Blank.

 

 

SCHEDULE 6

Deposit Accounts

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Branch Name,	 	 	 	 	 	 	 	 
	Bank	 	Street Address	 	ABA No.	 	Account No.	 	Account Name	 	Account Type
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 	 	 

The Remainder of This Page Is Intentionally Left Blank.

 

 

SCHEDULE 7

Securities Accounts

	 	 	 	 	 	 	 	 	 
	Securities	 	 	 	 	 	 	 	Securities Contract
	Intermediary	 	Street Address	 	Account Name	 	Account Number	 	Description
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 

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SCHEDULE 8

Commodity Accounts

	 	 	 	 	 	 	 	 	 
	Commodity	 	 	 	 	 	 	 	Commodity Contract
	Intermediary	 	Street Address	 	Account Name	 	Account Number	 	Description
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 

The Remainder of This Page Is Intentionally Left Blank.

 

 

SCHEDULE 9

Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 
	Schedule 12	 	Letters of Credit
	 	 	Branch Name,	 	 	 	 	 	 	 	 
	Bank Issuer	 	Street Address	 	Letter of Credit No.	 	Issue Date	 	Expiry	 	Face Amount
	To be Provided By Grantor
	 	 	 	 	 	 	 	 	 	 	 

The Remainder of This Page Is Intentionally Left Blank.

 

 

SCHEDULE 10

Required Consents

the remainder of this page is intentionally left blank.

 

 

SCHEDULE 11

Insurance

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SCHEDULE 12

Commercial Tort Claims

	 	 	 	 	 
	Case Name or Style	 	Case Number	 	Court in Which Pending
	To be Provided By Grantor
	 	 	 	 	 

the remainder of this page is intentionally left blank.

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