Document:

exv10w70

 

Exhibit 10.70

     INCREMENTAL TERM LOAN ASSUMPTION AGREEMENT AND AMENDMENT NO. 3
dated as of June 30, 2006 (this “Assumption Agreement and Amendment”),
related to the CREDIT AGREEMENT dated as of August 2, 2004, as amended
pursuant to that certain Incremental Term Loan Assumption Agreement and
Amendment No. 1 dated as of April 1, 2005, and that certain Incremental
Term Loan Assumption Agreement and Amendment No. 2 (“Amendment No. 2”)
dated as of March 24, 2006, as amended as of April 21, 2006 (as amended,
the “Credit Agreement”), among ALION SCIENCE AND TECHNOLOGY CORPORATION
(the “Borrower”), the Subsidiary Guarantors listed on the signature pages
hereto (solely with respect to Sections 8, 10, 12 and 13 hereof), the
lenders from time to time party to the Credit Agreement (the “Lenders”)
and CREDIT SUISSE (formerly known as Credit Suisse First Boston), as
administrative agent (in such capacity, the “Administrative Agent”) and as
collateral agent for the Lenders.

     A. Pursuant to the Asset Purchase Agreement dated as of June 4, 2006 (the “Anteon
Asset Purchase Agreement”), among Anteon Corporation (“Anteon”), Alion Technical Services
Corporation (“ATSC”) and the Borrower, ATSC intends to acquire from Anteon the Purchased Assets and
to assume the Assumed Liabilities (in each case, as defined in the Anteon Asset Purchase Agreement)
for aggregate consideration of $225,000,000 in cash, subject to adjustment as provided for in the
Anteon Asset Purchase Agreement (the “Anteon Asset Purchase”).

     B. The Borrower has informed the Administrative Agent that it intends to finance the
Anteon Asset Purchase by borrowing (i) $21,000,000 of delayed draw Incremental Term Loans under and
as defined in Amendment No. 2 (the “Delayed Draw Incremental Term Loans”), (ii) $50,000,000 of
Incremental Term Loans hereunder and (iii) $170,000,000 of senior unsecured loans (the “Bridge
Loans”) having terms substantially as set forth in Exhibit A hereto (the “Bridge Loan Term Sheet”).

     C. The Borrower has requested that the persons set forth on Schedule I hereto (the
“Incremental Term Lenders”) make Incremental Term Loans to the Borrower pursuant to Section 2.24 of
the Credit Agreement.

     D. The Incremental Term Lenders are willing to make Incremental Term Loans to the
Borrower on the Amendment No. 3 Effective Date (as defined below), on the terms and subject to the
conditions set forth herein and in the Credit Agreement.

     E. The Borrower has also requested certain amendments to the Credit Agreement as set
forth herein, and the Required Lenders have agreed to such request on and subject to the terms and
conditions of this Assumption Agreement and Amendment.

     F. The Borrower has entered into that certain Seller Note Securities Purchase
Agreement dated as of December 20, 2002 (the “Seller Note Securities Purchase Agreement”) with IIT
Research Institute (who subsequently assigned all of its right, title and interest in certain debt
securities (the “Seller Subordinated Notes”) issued pursuant to the Seller Note Securities Purchase
Agreement to its Affiliate, Illinois Institute of Technology).

     Accordingly, in consideration of the mutual agreements herein contained and other good and
valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties
hereto agree as follows:

 

 
 2

     SECTION 1. Defined Terms; Interpretation; Etc. Capitalized terms used and not
defined herein shall have the meanings assigned to such terms in the Credit Agreement. The rules
of construction set forth in Section 1.02 of the Credit Agreement shall apply equally to this
Assumption Agreement and Amendment. This Assumption Agreement and Amendment shall be a “Loan
Document” and, to the extent it relates to the making of Incremental Term Loans, an “Incremental
Term Loan Assumption Agreement” for all purposes of the Credit Agreement and the other Loan
Documents.

     SECTION
2. Incremental Term Loans. (a) Each Incremental Term Lender hereby agrees,
severally and not jointly, to make an Incremental Term Loan to the Borrower on the Amendment No. 3
Effective Date in a principal amount equal to the Incremental Term Loan amount set forth next to
such Incremental Term Lender’s name on Schedule I hereto.

     (b) All such Incremental Term Loans shall constitute “Term Loans” for all purposes
of the Credit Agreement and the other Loan Documents.

     (c) The proceeds of the Incremental Term Loans are to be used by the Borrower solely
(i) to finance the Anteon Asset Purchase, (ii) to pay related fees and expenses, (iii) to prepay
any outstanding Revolving Loans and Swingline Loans and (iv) for other general corporate purposes
of the Borrower and the Subsidiaries.

     SECTION 3. Conditions Precedent to Incremental Term Loans. The obligation of the
Incremental Term Lenders to make Incremental Term Loans on the Amendment No. 3 Effective Date shall
be subject to the satisfaction of the following conditions precedent:

     (a) On the Amendment No. 3 Effective Date, each of the conditions set forth in
paragraphs (b) and (c) of Section 4.01 of the Credit Agreement shall be satisfied and the
Administrative Agent shall have received a certificate to that effect dated as of the Amendment No.
3 Effective Date and executed by a Financial Officer of the Borrower.

     (b) The Administrative Agent shall have received (with sufficient copies for each
Incremental Term Lender) such legal opinions, board resolutions and other closing certificates and
documentation as shall be reasonably required by the Incremental Term Lenders, in each case
consistent with those delivered on the Closing Date under clauses (a), (c) and (d) of Section 4.02
of the Credit Agreement.

     (c) The Administrative Agent shall have received a certificate, dated the Amendment
No. 3 Effective Date and executed by a Financial Officer of the Borrower, confirming that the
Borrower will be in Pro Forma Compliance after giving effect to the Anteon Asset Purchase, the
making of the Incremental Term Loans on the Amendment No. 3 Effective Date and the application of
the proceeds therefrom.

     (d) The Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Amendment No. 3 Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by
the Borrower hereunder or under any other Loan Document.

     (e) The Anteon Asset Purchase shall be consummated simultaneously with the borrowing
of the Incremental Term Loans in accordance with applicable law and on the terms

 

3

described in the
Anteon Asset Purchase Agreement, and no provision of the Anteon Asset Purchase Agreement shall have
been waived, amended, supplemented or otherwise modified in any material respect adverse to the
Lenders without the consent of the Administrative Agent.

     (f) The Borrower shall have borrowed not more than $170,000,000 aggregate principal
amount of Bridge Loans substantially on the terms set forth in the Bridge Loan Term Sheet.

     (g) All requisite Governmental Authorities and material third parties shall have
approved or consented to the Anteon Asset Purchase and the other transactions contemplated hereby
to the extent required and all applicable appeal periods shall have expired, and there shall be no
litigation, governmental, administrative or judicial action, actual or known by the Borrower to be
threatened, that could reasonably be expected to prevent, materially restrain or impose materially
burdensome conditions on the Anteon Asset Purchase or the other transactions contemplated hereby.

     (h) The holder of the Seller Subordinated Notes shall have entered into an amendment
to the subordination agreement relating thereto to provide, among other things, that the
Obligations under and as defined in the Credit Agreement up to an aggregate amount of $465,000,000
(after giving effect to this Assumption Agreement and Amendment) shall constitute “Senior Debt” for
all purposes of the Seller Note Securities Purchase Agreement and otherwise in form and substance
reasonably satisfactory to the Administrative Agent.

     SECTION 4. Eurodollar Borrowings. To facilitate the inclusion of the Delayed Draw
Incremental Term Loans and the Incremental Term Loans, when made, in each outstanding Term
Borrowing, the Borrower and the Required Lenders hereby agree that (a) the outstanding Eurodollar
Term Borrowing with an Interest Period ending on June 19, 2006 will be continued on such date as a
Eurodollar Borrowing with an Interest Period ending on June 30, 2006 (but will bear interest from
June 19, 2006 through and including June 30, 2006 at a rate determined by reference to the Adjusted
LIBO Rate for a one-month Interest Period), and (b) the Incremental Term Loans made hereunder will
be allocated ratably to each outstanding Eurodollar Term Borrowing for purposes of determining the
initial interest rate thereon, in each case notwithstanding any contrary provision of the Credit
Agreement.

     SECTION 5. Amendments to Credit Agreement. Effective as of the Amendment No. 3
Effective Date:

          (a) The definition of the term “Applicable Percentage” set forth in Section 1.01 of
the Credit Agreement is hereby amended as follows:

	 	(i)	 	by deleting “2.50%” at the end of clause (a) therein and
substituting therefor “2.75%”; and
	 
	 	(ii)	 	by deleting “1.50%” at the end of clause (b) therein
and substituting therefor “1.75%”.

     (b) The definition of the term “Incremental Term Loan Amount” set forth in Section
1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

     “Incremental Term Loan Amount” shall mean, at any time after the
Amendment No. 3 Effective Date (any such time referred to as the
“Measuring Date”), the excess, if any, of (a) $150,000,000 over (b) the

 

4

aggregate amount of all Incremental Term Commitments established after the
Amendment No. 3 Effective Date (but prior to the Measuring Date) pursuant
to Section 2.24.”

     (c) The definition of the term “Permitted Acquisition” set forth in Section 1.01 of
the Credit Agreement is hereby amended by adding the following at the end thereof:

“; provided that the Anteon Asset Purchase shall be deemed to be a
Permitted Acquisition for all purposes of this Agreement and the other
Loan Documents”

     (d) Section 1.01 of the Credit Agreement is hereby further amended by adding the
following defined terms in appropriate alphabetical order therein:

     “Amendment No. 3 Effective Date” shall have the meaning set forth in
Amendment No. 3.

     “Amendment No. 3” shall mean the Incremental Term Loan Assumption
Agreement and Amendment No. 3 to this Agreement dated as of June 30, 2006.

     “Anteon Asset Purchase” shall have the meaning assigned to such term
in Amendment No. 3.

     “Available Restricted Payment Amount” shall mean, at any date of
determination, an amount equal to the excess, if any, of (a) the sum of
(i) Excess Cash Flow for all preceding full fiscal years of the Borrower
commencing on or after September 30, 2005, and ending prior to the date of
determination that was not or is not required to be applied to the
prepayment of Term Loans as described in Section 2.13(d) and (ii) the Net
Cash Proceeds of all Equity Issuances consummated after the Amendment No.
3 Effective Date over (b) the amount of Restricted Payments made prior to
the date of determination pursuant to Section 6.06(iv)(E).

     “Bridge Loans” shall have the meaning assigned to such term in
Amendment No. 3.

     “Delayed Draw Incremental Term Loans” shall have the meaning assigned
to such term in Amendment No. 3.

     “Senior Secured Leverage Ratio” shall mean, on any date, the ratio of
Total Debt that is secured by Liens incurred under Section 6.02(b), (c),
(i) or (o) on such date to Consolidated EBITDA for
the period of four consecutive fiscal quarters most recently ended on or
prior to such date.”

     (e) To give effect to the making of the Incremental Term Loans hereunder and
the Delayed Draw Incremental Term Loans and the treatment thereof as “Term Loans” for all

 

5

purposes of the Credit Agreement, Section 2.11(a) of the Credit Agreement is hereby amended
and restated in its entirety to read as follows:

“(a) The Borrower shall pay to the Administrative Agent, for the accounts
of the Term Lenders, on the dates set forth below, or if any such date is
not a Business Day, on the immediately preceding Business Day (each such
date being called a “Repayment Date”), a principal amount of the Term
Loans (as adjusted from time to time pursuant to Sections 2.12, 2.13(f)
and 2.24(d)) equal to the amount set forth below for such date (it being
understood that (i) the amounts set for June 30, 2006 and each date
thereafter assume that (x) $21,000,000 of Delayed Draw Incremental Term
Loans are funded to the Borrower on or prior to June 30, 2006, and (y)
$50,000,000 of Incremental Term Loans under Amendment No. 3 are funded to
the Borrower on or prior to July 15, 2006, and, to the extent not so
funded, such amounts will be adjusted downward accordingly, and (ii) no
principal in respect of the Incremental Term Loans made pursuant to
Amendment No. 3 will be paid on June 30, 2006, the holder of such Loans on
the Amendment No. 3 Effective Date hereby agreeing that the first
scheduled payment of principal thereof shall be on September 30, 2006),
together in each case with accrued and unpaid interest on the principal
amount to be paid to but excluding the date of such payment:

	 	 	 	 	 
	Repayment Date	 	Amount
	December 31, 2004
	 	$	180,000	 
	March 31, 2005
	 	$	180,000	 
	June 30, 2005
	 	$	360,000	 
	September 30, 2005
	 	$	360,000	 
	December 31, 2005
	 	$	360,000	 
	March 31, 2006
	 	$	360,000	 
	June 30, 2006
	 	$	530,000	 
	September 30, 2006
	 	$	655,000	 
	December 31, 2006
	 	$	655,000	 
	March 31, 2007
	 	$	655,000	 
	June 30, 2007
	 	$	655,000	 
	September 30, 2007
	 	$	655,000	 
	December 31, 2007
	 	$	655,000	 
	March 31, 2008
	 	$	655,000	 
	June 30, 2008
	 	$	655,000	 
	September 30, 2008
	 	$	655,000	 
	December 31, 2008
	 	$	63,443,750	 
	March 31, 2009
	 	$	63,443,750	 
	June 30, 2009
	 	$	63,443,750	 
	Term Loan Maturity Date
	 	$	63,443,750	 

 

6

     (f) Section 2.13(c) (Equity Sweep) of the Credit Agreement is hereby deleted and the
words “[Intentionally Omitted]” substituted therefor.

     (g) Section 2.23(b) (Issuance of Letters of Credit) of the Credit Agreement is
hereby amended by deleting the amount “$5,000,000” set forth in clause (i) thereof and substituting
therefor the amount “$40,000,000”. The preliminary statement to the Credit Agreement is hereby
amended by deleting the reference in the second sentence thereof to “an aggregate face amount at
any time outstanding not in excess of $5,000,000” and substituting therefor the words “an aggregate
face amount at any time outstanding not in excess of $40,000,000”.

     (h) Section 6.01 (Indebtedness) of the Credit Agreement is hereby amended by (i)
deleting the amount “$15,000,000” set forth in each of paragraphs (e) (purchase money indebtedness)
and (f) (capitalized lease obligations) thereof and substituting therefor the amount “$20,000,000”,
(ii) deleting the amount “$5,000,000” set forth in paragraph (h) (acquired indebtedness) thereof
and substituting therefor the amount “$7,500,000”, (iii) deleting the amount “$10,000,000” set
forth in paragraph (n) (general basket) thereof and substituting therefor the amount “$30,000,000”,
(iv) deleting the word “and” at the end of paragraph (p) thereof and (v) deleting the period at the
end of paragraph (q) thereof and substituting therefor the following:

“; and

     (r) Bridge Loans in an aggregate principal amount not to exceed
$170,000,000 at any time outstanding and Refinancing Indebtedness (as
defined in Section 6.01(d)) (“Bridge Loan Refinancing Indebtedness”);
provided that, notwithstanding the requirements of Section 6.01(d), the
aggregate principal amount of any Bridge Loan Refinancing Indebtedness
outstanding at any time may exceed the aggregate outstanding principal
amount of the Bridge Loans to be refinanced, but the aggregate principal
amount of all Bridge Loan Refinancing Indebtedness and Bridge Loans
outstanding at any time shall not exceed $200,000,000.”

     (i) Section 6.04 (Investments, Loans and Advances) of the Credit Agreement is hereby
amended by (i) deleting the reference to “Section 6.14” in paragraph (g) (acquired entity) thereof
and substituting therefor “Section 6.13” and (ii) deleting each reference to the amount
“$10,000,000” set forth in paragraph (k) (general basket) thereof and substituting therefor the
amount “$15,000,000”.

     (j) Section 6.06(a) (Restricted Payments) of the Credit Agreement is hereby amended
by (i) deleting the amount “$10,000,000” set forth in clause (iii) (certain employee payments)
thereof and substituting therefor the amount “$20,000,000”, (ii) deleting the word “or” at the end
of
clause (iv)(C) thereof, (iii) deleting the period at the end of clause (iv)(D) and (iv)
inserting at the end of clause (iv)(D) thereof the following:

“, (E) to redeem or otherwise acquire for value the Warrants issued in
connection with the Seller Subordinated Notes so long as, after giving
effect thereto, the Senior Secured Leverage Ratio would be less than 2.50
to 1.00 and there would be at least $10,000,000 of unused and available
Revolving Credit Commitments, or (F) so long as, after giving effect
thereto, the Senior Secured Leverage Ratio would be less than 2.50 to 1.00
and there would be at least $10,000,000 of unused and available

 

7

Revolving
Credit Commitments, in an amount not to exceed the Available Restricted
Payment Amount”.

     (k) Section 6.09(c) (Other Indebtedness and Agreements) of the Credit Agreement is
hereby amended by adding the following at the end thereof:

“Notwithstanding the foregoing, so long as at the time thereof and after
giving effect thereto, (x) no Default or Event of Default shall have
occurred and be continuing, (y) the Senior Secured Leverage Ratio would be
less than 2.50 to 1.00 and (z) there would be at least $10,000,000 of
unused and available Revolving Credit Commitments, the Borrower may
prepay, redeem, retire or otherwise acquire for consideration the Seller
Subordinated Notes in whole or in part.”

     (l) Section 6.15(b)(iii) (Earnout Obligations) of the Credit Agreement is hereby
amended by deleting the amount “$5,000,000” set forth therein and substituting therefor the amount
“$10,000,000”.

     (m) Section 6.12 (Interest Coverage Ratio) of the Credit Agreement is hereby amended
by deleting the table set forth therein and substituting therefor the following table:

	 	 	 
	Period	 	Ratio
	Amendment No. 3 Effective Date through September 30, 2007

	 	1.65 to 1.00
	October 1, 2007 through September 30, 2008

	 	1.75 to 1.00
	Thereafter

	 	2.00 to 1.00

     (n) Section 6.13 (Leverage Ratio) of the Credit Agreement is hereby amended by
deleting the table set forth therein and substituting therefor the following table:

	 	 	 
	Period	 	Ratio
	Amendment No. 3 Effective Date through September 30, 2007

	 	6.50 to 1.00
	October 1, 2007 through June 30, 2008

	 	6.00 to 1.00
	July 1, 2008 through June 30, 2009

	 	5.75 to 1.00
	Thereafter

	 	5.25 to 1.00

     SECTION 6. Waiver. The Required Lenders hereby waive compliance by the Borrower
with the provisions of Section 6.01 (Indebtedness), Section 6.07 (Transactions with Affiliates) and
clause (a) of Section 6.09 (Other Indebtedness and Agreements) to the extent (but only to the
extent) required to permit the Borrower to modify the terms of the Seller Subordinated Notes to
permit any non-cash pay interest payable under the Seller Subordinated Notes in 2007 and 2008 to
compound in such years.

 

8

     SECTION 7. Representations and Warranties. To induce the other parties hereto to
enter into this Assumption Agreement and Amendment, the Borrower represents and warrants to the
Administrative Agent and each of the Lenders that, as of the Amendment No. 3 Effective Date:

     (a) This Assumption Agreement and Amendment has been duly authorized, executed and
delivered by each Loan Party party hereto, and constitutes a legal, valid and binding obligation of
such Loan Party in accordance with its terms. The Credit Agreement (as amended hereby) constitutes
a legal, valid and binding obligation of the Borrower in accordance with its terms.

     (b) The representations and warranties set forth in Article III of the Credit
Agreement are true and correct in all material respects on and as of the Amendment No. 3 Effective
Date with the same effect as though made on and as of the Amendment No. 3 Effective Date, except to
the extent such representations and warranties expressly relate to an earlier date (in which case
such representations and warranties were true and correct in all material respects as of such
earlier date).

     (c) No Default or Event of Default has occurred and is continuing.

     SECTION 8. Effectiveness. This Assumption Agreement and Amendment shall become
effective as of the date (the “Amendment No. 3 Effective Date”) occurring on or prior to July 15,
2006 that (a) the Administrative Agent shall have received counterparts of this Assumption
Agreement and Amendment that, when taken together, bear the signatures of (i) the Borrower, (ii)
each Subsidiary Guarantor, (iii) the Administrative Agent, (iv) the Required Lenders and (v) each
Incremental Term Lender and (b) each of the conditions precedent set forth in Section 3 hereof
shall have been satisfied (or waived in writing by the Required Lenders and the Incremental Term
Lenders).

     SECTION 9. Effect of Amendment. Except as expressly set forth herein, this
Assumption Agreement and Amendment shall not by implication or otherwise limit, impair, constitute
a waiver of, or otherwise affect the rights and remedies of the Lenders, the Administrative Agent,
the Collateral Agent or the Borrower under the Credit Agreement or any other Loan Document, and
shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations,
covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which
are ratified and affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement or any other Loan Document in similar or different circumstances.
This Assumption Agreement and Amendment shall apply and be effective only with respect to the
provisions of the Credit Agreement specifically referred to herein. After the date hereof, any
reference to the Credit Agreement shall mean the Credit Agreement, as modified hereby.

     SECTION 10. Consent and Reaffirmation. Each Subsidiary Guarantor hereby consents to
this Assumption Agreement and Amendment and the transactions contemplated hereby, and each Loan
Party hereby (a) agrees that, notwithstanding the effectiveness of this Assumption Agreement and
Amendment, the Guarantee and Collateral Agreement and each of the other Security Documents continue
to be in full force and effect, (b) confirms its guarantee of the Obligations (with respect to each
Subsidiary Guarantor) and its grant of a security interest in

 

9

its assets as Collateral therefor,
all as provided in the Loan Documents as originally executed and (c) acknowledges that such
guarantee and/or grant continue in full force and effect in respect of, and to secure, the
Obligations under the Credit Agreement (as amended hereby) and the other Loan Documents, including
the Incremental Term Loans.

     SECTION 11. Expenses. The Borrower agrees to reimburse the Administrative Agent for
all reasonable out-of-pocket expenses incurred in connection with this Assumption Agreement and
Amendment in accordance with the Credit Agreement, including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent.

     SECTION 12. Counterparts. This Assumption Agreement and Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when
so executed and delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same contract. Delivery of an executed counterpart of a signature page
of this Assumption Agreement and Amendment by facsimile or electronic transmission shall be as
effective as delivery of a manually executed counterpart hereof.

     SECTION 13. Applicable Law. THIS ASSUMPTION AGREEMENT AND AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 14. Headings. The headings of this Assumption Agreement and Amendment are
for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

[Remainder of this page intentionally left blank]

 

10

     IN WITNESS WHEREOF, the parties hereto have caused this Assumption Agreement and Amendment to
be duly executed by their respective authorized officers as of the day and year first above
written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	ALION SCIENCE AND TECHNOLOGY CORPORATION,	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ John M. Hughes	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	John M. Hughes	 	 
	 

	 	 	 	 	 	Title:
	 	Executive VP and CFO	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	HUMAN FACTORS APPLICATIONS, INC.,	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ John M. Hughes	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	John M. Hughes	 	 
	 

	 	 	 	 	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ALION-METI CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ John M. Hughes	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	John M. Hughes	 	 
	 

	 	 	 	 	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ALION-CATI CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ John M. Hughes	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	John M. Hughes	 	 
	 

	 	 	 	 	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ALION-JJMA CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ John M. Hughes	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	John M. Hughes	 	 
	 

	 	 	 	 	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ALION-BMH CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ John M. Hughes	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	John M. Hughes	 	 
	 

	 	 	 	 	 	Title:
	 	Treasurer	 	 

 

 

11

	 	 	 	 	 	 	 	 	 	 	 
	 	 	WASHINGTON CONSULTING, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ John M. Hughes	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	John M. Hughes	 	 
	 

	 	 	 	 	 	Title:
	 	Treasure	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ALION-MA&D CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ Stacy J. Mendler	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Stacy J. Mendler	 	 
	 

	 	 	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,	 	 
	 	 	individually and as Administrative Agent,	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ Robert Hetu	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Robert Hetu	 	 
	 

	 	 	 	 	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ Cassandra Droogan	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Cassandra Droogan	 	 
	 

	 	 	 	 	 	Title:
	 	Vice President	 	 

 

 

SIGNATURE PAGE TO

INCREMENTAL TERM LOAN

ASSUMPTION AGREEMENT AND AMENDMENT NO. 3

DATED AS OF JUNE 30, 2006,

TO THE ALION SCIENCE AND

TECHNOLOGY CORPORATION

CREDIT AGREEMENT DATED AS OF

AUGUST 2, 2004, AS AMENDED

Name of Lender:                                         

	 	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

SCHEDULE I

Incremental Term Lenders

	 	 	 	 	 
	 	 	Incremental Term Loan
	Incremental Term Lender	 	Amount
	Credit Suisse, Cayman Islands Branch
	 	$	50,000,000.00	 
	TOTAL COMMITMENT
	 	$	50,000,000.00exv10w71

 

Exhibit 10.71

EXECUTION COPY

 

BRIDGE LOAN AGREEMENT

dated as of June 30, 2006,

among

ALION SCIENCE AND TECHNOLOGY CORPORATION,

the Subsidiaries of ALION SCIENCE AND TECHNOLOGY CORPORATION

identified herein,

THE LENDERS PARTY HERETO,

and

CREDIT SUISSE,

as Administrative Agent

 

CREDIT SUISSE SECURITIES (USA) LLC,

as Sole Bookrunner and Sole Lead Arranger,

 

[CS&M Ref No. 5865-259]

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE I	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 Definitions	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.01.
	 	Defined Terms	 	 	1	 
	SECTION 1.02.
	 	Terms Generally	 	 	21	 
	SECTION 1.03.
	 	Pro Forma Calculations	 	 	22	 
	SECTION 1.04.
	 	Senior Debt	 	 	22	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE II	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	The Loans	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.01.
	 	Commitment	 	 	22	 
	SECTION 2.02.
	 	Notice of Borrowing	 	 	22	 
	SECTION 2.03.
	 	Disbursement of Funds	 	 	23	 
	SECTION 2.04.
	 	Initial Maturity Date; Final Maturity Date; Evidence of Debt	 	 	24	 
	SECTION 2.05.
	 	Interest	 	 	24	 
	SECTION 2.06.
	 	Repayment of Extended Loans	 	 	25	 
	SECTION 2.07.
	 	Fees	 	 	25	 
	SECTION 2.08.
	 	Voluntary Reduction of Initial Loan Commitments	 	 	25	 
	SECTION 2.09.
	 	Voluntary Prepayments	 	 	26	 
	SECTION 2.10.
	 	Mandatory Prepayments	 	 	26	 
	SECTION 2.11.
	 	Reserve Requirements; Change in Circumstances	 	 	27	 
	SECTION 2.12.
	 	Change in Legality	 	 	28	 
	SECTION 2.13.
	 	Indemnity	 	 	28	 
	SECTION 2.14.
	 	Pro Rata Treatment	 	 	29	 
	SECTION 2.15.
	 	Sharing of Setoffs	 	 	29	 
	SECTION 2.16.
	 	Payments	 	 	29	 
	SECTION 2.17.
	 	Taxes	 	 	30	 
	SECTION 2.18.
	 	Assignment of Commitments Under Certain Circumstances; Duty to Mitigate	 	 	31	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE III	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Representations and Warranties	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.01.
	 	Organization; Powers	 	 	32	 
	SECTION 3.02.
	 	Authorization	 	 	33	 
	SECTION 3.03.
	 	Enforceability	 	 	33	 
	SECTION 3.04.
	 	Governmental Approvals	 	 	33	 
	SECTION 3.05.
	 	Financial Statements	 	 	33	 
	SECTION 3.06.
	 	No Material Adverse Change	 	 	34	 
	SECTION 3.07.
	 	Title to Properties; Possession Under Leases	 	 	34	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 3.08.
	 	Subsidiaries	 	 	35	 
	SECTION 3.09.
	 	Litigation; Compliance with Laws	 	 	35	 
	SECTION 3.10.
	 	Agreements	 	 	35	 
	SECTION 3.11.
	 	Federal Reserve Regulations	 	 	35	 
	SECTION 3.12.
	 	Investment Company Act; Public Utility Holding Company Act	 	 	36	 
	SECTION 3.13.
	 	Use of Proceeds	 	 	36	 
	SECTION 3.14.
	 	Tax Returns	 	 	36	 
	SECTION 3.15.
	 	No Material Misstatements	 	 	36	 
	SECTION 3.16.
	 	Employee Benefit Plans	 	 	36	 
	SECTION 3.17.
	 	Environmental Matters	 	 	36	 
	SECTION 3.18.
	 	Insurance	 	 	37	 
	SECTION 3.19.
	 	Labor Matters	 	 	37	 
	SECTION 3.20.
	 	Solvency	 	 	37	 
	SECTION 3.21.
	 	Subchapter S Corporation Status; ESOT Tax-Exempt Status	 	 	37	 
	SECTION 3.22.
	 	ESOP	 	 	38	 
	SECTION 3.23.
	 	Subordinated Indebtedness	 	 	39	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IV	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 Conditions of Lending	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.01.
	 	Closing Date Conditions	 	 	40	 
	 
	 	 	 	 	 	 
	 
	 	 ARTICLE V	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 Affirmative Covenants	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.01.
	 	Existence; Businesses and Properties	 	 	41	 
	SECTION 5.02.
	 	Insurance	 	 	42	 
	SECTION 5.03.
	 	Obligations and Taxes	 	 	42	 
	SECTION 5.04.
	 	Financial Statements, Reports, etc.	 	 	42	 
	SECTION 5.05.
	 	Litigation and Other Notices	 	 	44	 
	SECTION 5.06.
	 	Certain Information	 	 	45	 
	SECTION 5.07.
	 	Maintaining Records; Access to Properties and Inspections; Maintenance of Ratings	 	 	45	 
	SECTION 5.08.
	 	Use of Proceeds	 	 	46	 
	SECTION 5.09.
	 	Further Assurances; Future Guarantors	 	 	46	 
	SECTION 5.10.
	 	Change of Control	 	 	46	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VI	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 Negative Covenants	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.01.
	 	Indebtedness	 	 	47	 
	SECTION 6.02.
	 	Liens	 	 	50	 
	SECTION 6.03.
	 	Sale and Lease-Back Transactions	 	 	51	 
	SECTION 6.04.
	 	Investments, Loans and Advances	 	 	52	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 6.05.
	 	Mergers, Consolidations, Sales of Assets and Acquisitions	 	 	53	 
	SECTION 6.06.
	 	Restricted Payments; Restrictive Agreements	 	 	54	 
	SECTION 6.07.
	 	Transactions with Affiliates	 	 	55	 
	SECTION 6.08.
	 	Business of the Borrower and Subsidiaries	 	 	55	 
	SECTION 6.09.
	 	Other Indebtedness and Agreements	 	 	55	 
	SECTION 6.10.
	 	Assets as Plan Assets	 	 	56	 
	SECTION 6.11.
	 	Prohibited Transaction	 	 	56	 
	SECTION 6.12.
	 	Interest Coverage Ratio	 	 	56	 
	SECTION 6.13.
	 	Maximum Leverage Ratio	 	 	56	 
	SECTION 6.14.
	 	Fiscal Year	 	 	57	 
	SECTION 6.15.
	 	Earn-Out Obligations	 	 	57	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VII	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Events of Default	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VIII	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 The Administrative Agent	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IX	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 Guarantee	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.01.
	 	Guarantee	 	 	63	 
	SECTION 9.02.
	 	Guarantee of Payment	 	 	63	 
	SECTION 9.03.
	 	No Limitations, Etc.	 	 	63	 
	SECTION 9.04.
	 	Reinstatement	 	 	64	 
	SECTION 9.05.
	 	Agreement To Pay; Subrogation	 	 	64	 
	SECTION 9.06.
	 	Information	 	 	64	 
	SECTION 9.07.
	 	Indemnity and Subrogation	 	 	65	 
	SECTION 9.08.
	 	Contribution and Subrogation	 	 	65	 
	SECTION 9.09.
	 	Subordination	 	 	65	 
	SECTION 9.10.
	 	Release	 	 	65	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE X	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 10.01.
	 	Notices	 	 	66	 
	SECTION 10.02.
	 	Survival of Agreement	 	 	66	 
	SECTION 10.03.
	 	Binding Effect	 	 	67	 
	SECTION 10.04.
	 	Successors and Assigns	 	 	67	 
	SECTION 10.05.
	 	Expenses; Indemnity	 	 	70	 
	SECTION 10.06.
	 	Right of Setoff	 	 	71	 
	SECTION 10.07.
	 	APPLICABLE LAW	 	 	71	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 10.08.
	 	Waivers; Amendment	 	 	71	 
	SECTION 10.09.
	 	Interest Rate Limitation	 	 	72	 
	SECTION 10.10.
	 	Entire Agreement	 	 	73	 
	SECTION 10.11.
	 	WAIVER OF JURY TRIAL	 	 	73	 
	SECTION 10.12.
	 	Severability	 	 	73	 
	SECTION 10.13.
	 	Counterparts	 	 	73	 
	SECTION 10.14.
	 	Headings	 	 	73	 
	SECTION 10.15.
	 	Jurisdiction; Consent to Service of Process	 	 	74	 
	SECTION 10.16.
	 	Confidentiality	 	 	74	 
	SECTION 10.17.
	 	USA Patriot Act Notice	 	 	75	 

SCHEDULES

	 	 	 	 	 
	Schedule 1.01(a)

	 	-
	 	ESOP Plan Documents
	Schedule 1.01(c)

	 	-
	 	Subsidiary Guarantors
	Schedule 2.01

	 	-
	 	Lenders and Commitments
	Schedule 3.04(b)

	 	-
	 	Material Contracts
	Schedule 3.08

	 	-
	 	Subsidiaries
	Schedule 3.09

	 	-
	 	Material Litigation
	Schedule 3.17

	 	-
	 	Material Environmental Matters
	Schedule 3.18

	 	-
	 	Insurance
	Schedule 3.22

	 	-
	 	Certain ESOP Plan Documents Exceptions
	Schedule 6.01

	 	-
	 	Indebtedness Existing on the Closing Date
	Schedule 6.02

	 	-
	 	Liens Existing on the Closing Date
	Schedule 6.04

	 	-
	 	Investments on Closing Date

EXHIBITS

	 	 	 	 	 
	Exhibit A

	 	-
	 	Form of Administrative Questionnaire
	Exhibit B

	 	-
	 	Form of Assignment and Acceptance
	Exhibit C

	 	-
	 	Form of Borrowing Request
	Exhibit D

	 	-
	 	Form of Supplemental Guarantee
	Exhibit E

	 	-
	 	Notice of Prepayment
	Exhibit F

	 	-
	 	Form of Opinion of Baker & McKenzie
	Exhibit G

	 	-
	 	Form of Promissory Note

iv

 

     BRIDGE LOAN AGREEMENT dated as of June 30, 2006, among ALION
SCIENCE AND TECHNOLOGY CORPORATION, a Delaware corporation (the
“Borrower”), the Subsidiaries of the Borrower identified herein, the
LENDERS (as defined in Article I) and CREDIT SUISSE, as administrative
agent (in such capacity, the “Administrative Agent”) for the Lenders.

     The Borrower has entered into a Purchase Agreement dated as of June 4, 2006 (the “Acquisition
Agreement”) with Anteon Corporation (the “Seller”), pursuant to which the Borrower will acquire
(the “Acquisition”) all of the Seller’s rights, and assume certain of the Seller’s obligations,
under certain government contracts (the “Anteon Contracts”) in consideration of the payment by the
Borrower to the Seller of approximately $225,000,000 in cash (the “Acquisition Consideration”). In
connection with the foregoing, (a) the Borrower will obtain senior unsecured increasing rate term
loans in an aggregate amount of $170,000,000, (b) the Existing Credit Agreement (such term and each
other capitalized term used but not defined in this introductory statement having the meaning given
it in Article I) will be amended to, among other things, permit the Acquisition and the financing
therefor and the Borrower will (x) obtain an incremental term facility under the Existing Credit
Agreement, as so amended, in the aggregate amount of $50,000,000, and (y) borrow $21,000,000 of
delayed draw term loans thereunder and (c) fees and expenses incurred in connection with the
foregoing will be paid. Each Subsidiary Guarantor is an affiliate of the Borrower, will derive
substantial benefits from the extension of credit to the Borrower pursuant to this Agreement and is
willing to execute and deliver this Agreement in order to induce the Lenders to extend such credit.

     The Borrower has requested the Lenders to extend credit in the form of (a) senior unsecured
increasing rate term loans on the Closing Date in an aggregate principal amount not in excess of
$170,000,000. The proceeds of the Initial Loans to be made on the Closing Date may be used on the
Closing Date solely (a) to pay the Acquisition Consideration, (b) to prepay loans outstanding under
the Existing Credit Agreement and (c) to pay related fees and expenses.

     The Lenders are willing to extend such credit to the Borrower on the terms and subject to the
conditions set forth herein. Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

     SECTION 1.01. Defined Terms. As used in this Agreement, the following terms shall have the
meanings specified below:

     “Acquired Entity” shall have the meaning assigned to such term in Section 6.04(g).

 

 

2

     “Acquisition” is defined in the recitals.

     “Acquisition Agreement” is defined in the recitals.

     “Acquisition Consideration” is defined in the recitals.

     “Adjusted LIBO Rate” shall mean, for any Interest Period, an interest rate per annum equal to
the product of (a) the LIBO Rate in effect for such Interest Period and (b) Statutory Reserves.

     “Administrative Agent” is defined in the recitals.

     “Administrative Agent Fees” shall have the meaning specified in Section 2.07.

     “Administrative Questionnaire” shall mean an Administrative Questionnaire in the form of
Exhibit A, or such other form as may be supplied from time to time by the Administrative Agent.

     “Affiliate” shall mean, when used with respect to a specified 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; provided, however, that, for purposes of Section
6.07, the term “Affiliate” shall also include any person that directly or indirectly owns 5% or
more of any class of Equity Interests of the person specified or that is an officer or director of
the person specified.

     “Agent” shall have the meaning specified in Article VIII.

     “Agreement” shall mean this Bridge Loan Agreement, as it may be amended, restated,
supplemented or otherwise modified from time to time, including the Schedules and Exhibits hereto.

     “Anteon Contracts” is defined in the recitals.

     “Applicable Initial Loan Margin” shall mean (a) 550 basis points during the six-month period
commencing on the Closing Date, (b) 625 basis points for the six-month period commencing on the
six-month anniversary of the Closing Date, and (c) 700 basis points for the six-month period
commencing on the first anniversary of the Closing Date.

     “Applicable Premium” shall mean, with respect to any prepayment pursuant to Section 2.09 or
2.10 or any payment of Extended Loans on the Final Maturity Date, the applicable premium (expressed
as a percentage of the principal amount being prepaid) set forth below based on the date such
prepayment is made.

 

 

3

	 	 	 
	Months after Closing Date	 	Percentage of Par
	0-6
	 	0%
	 
	 	 
	7-12
	 	1.00%
	 
	 	 
	13 to Initial Maturity Date
	 	2.00%
	 
	 	 
	After Initial Maturity Date to 30
	 	1.00%
	 
	 	 
	31-42
	 	2.00%
	 
	 	 
	Thereafter
	 	3.00%

     “Asset Sale” shall mean the sale, transfer or other disposition (by way of merger, casualty,
condemnation or otherwise) by the Borrower or any of the Subsidiaries to any person other than the
Borrower or any Subsidiary Guarantor of (a) any Equity Interests of any of the Subsidiaries (other
than directors’ qualifying shares) or (b) any other assets of the Borrower or any of the
Subsidiaries (other than (i) inventory, damaged, obsolete or worn out assets, scrap and Permitted
Investments, in each case disposed of in the ordinary course of business, (ii) non-exclusive
licenses of intellectual property and sale or discount of overdue accounts receivable in connection
with collections, in each case made in the ordinary course of business, and (iii) dispositions
between or among Foreign Subsidiaries); provided that any transaction or series of related
transactions described in clause (b) above having a value not in excess of $350,000 shall be deemed
not to be an “Asset Sale” for purposes of this Agreement.

     “Asset Sale Prepayment Event” shall mean the consummation of any Asset Sale.

     “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a Lender
and an assignee, and accepted by the Administrative Agent, in the form of Exhibit B or such other
form as shall be approved by the Administrative Agent.

     “Available Restricted Payment Amount” shall mean, at any date of determination, an amount
equal to the excess, if any, of (a) the sum of (i) Excess Cash Flow for all preceding full fiscal
years of the Borrower commencing on or after September 30, 2005, and ending prior to the date of
determination that was not or is not required to be applied to the prepayment of Term Loans (as
defined in the Existing Credit Agreement) and (ii) the Net Cash Proceeds of all Equity Issuances
consummated after the Closing Date over (b) the amount of Restricted Payments made prior to the
date of determination pursuant to Section 6.06(a)(iii)(E).

     “Board” shall mean the Board of Governors of the Federal Reserve System of the United States
of America.

     “Borrower” is defined in the recitals.

     “Borrowing” shall mean the incurrence of the Initial Loans.

 

 

4

     “Borrowing Request” shall mean a request by the Borrower in accordance with the terms of
Section 2.02 and substantially in the form of Exhibit C, or such other form as shall be approved by
the Administrative Agent.

     “Breakage Event” shall have the meaning specified in Section 2.13.

     “Business Day” shall mean any day other than (a) a Saturday, Sunday or day on which banks in
New York City are authorized or required by law to close and (b) any day on which banks are not
open for dealings in dollar deposits in the London interbank market.

     “Capital Expenditures” shall mean, for any period, without duplication, (a) the additions to
property, plant and equipment and other capital expenditures of the Borrower and its consolidated
Subsidiaries that are (or should be) set forth in a consolidated statement of cash flows of the
Borrower for such period prepared in accordance with GAAP and (b) Capital Lease Obligations or
Synthetic Lease Obligations incurred by the Borrower and its consolidated Subsidiaries during such
period, but excluding in each case any such expenditure made to restore, replace or rebuild
property to the condition of such property immediately prior to any damage, loss, destruction or
condemnation of such property, to the extent such expenditure is made with insurance proceeds,
condemnation awards or damage recovery proceeds relating to any such damage, loss, destruction or
condemnation.

     “Capital Lease Obligations” of any person shall mean the obligations of such person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

     A “Change of Control” shall be deemed to have occurred if (a) prior to a Qualified Public
Offering, the ESOT shall fail to own, directly or indirectly, beneficially and of record, shares
representing at least 51% of each of the aggregate ordinary voting power and aggregate equity value
represented by the issued and outstanding Equity Interests of the Borrower, (b) after a Qualified
Public Offering, any “person” or “group” (within the meaning of the Securities Exchange Act of 1934
and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof)
other than IIT or the ESOT becomes, directly or indirectly, the beneficial owner of Equity
Interests in the Borrower representing more than 37.5% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Borrower, (c) a majority of the
seats (other than vacant seats) on the board of directors of the Borrower shall at any time be
occupied by persons who were neither (i) nominated by the board of directors of the Borrower nor
(ii) appointed by directors so nominated, or (d) any change in control (or similar event, however
denominated) with respect to the Borrower shall occur under and as defined in (i) any indenture or
agreement in respect of Material Indebtedness to which the Borrower or any Subsidiary is a party or
(ii) any of the then existing and effective Securities Purchase Agreement, Warrants or Rights
Agreement.

 

 

5

     “Change of Control Offer” shall have the meaning specified in Section 5.10.

     “Change of Control Payment” shall have the meaning specified in Section 5.10.

     “Change in Law” shall mean (a) the adoption of any law, rule or regulation after the date of
this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender (or, for purposes of Section 2.11(b), by any lending office of such Lender
or by such Lender’s holding company, if any) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after the date of this
Agreement.

     “Charges” shall have the meaning specified in Section 10.09.

     “Claiming Guarantor” shall have the meaning specified in Section 9.08.

     “Closing Date” shall mean June 30, 2006, or such later date as shall be agreed by the Borrower
and the Administrative Agent, which in no event will be later than July 14, 2006.

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

     “Commitment” shall mean, with respect to any Lender the commitment of such Lender to make an
Initial Loan hereunder as set forth on Schedule 2.0.

     “Confidential Information Memorandum” shall mean the Confidential Information Memorandum dated
June 2006.

     “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period
plus (a) without duplication and to the extent deducted in determining such Consolidated
Net Income, the sum of (i) Consolidated Interest Expense for such period, (ii) consolidated income
tax expense for such period, (iii) all amounts attributable to depreciation and amortization,
including amortization of goodwill and other intangible assets, for such period, (iv) cash
contributions to the ESOP during such period in respect of the repurchase liability of the Borrower
under the ESOP Plan Documents, (v) any non-cash charges or expenses (other than the write-down of
current assets) for such period, including (A) non-cash expenses associated with the recognition of
the difference between the fair market value of the Warrants and the exercise price of such
Warrants, (B) non-cash expenses with respect to stock appreciation rights, phantom stock plans, the
Warrants and accretion of the Warrants and (C) non-cash contributions to the ESOP, (vi) any
extraordinary losses for such period and (vii) any non-recurring charges and adjustments for such
period treated as such by the independent third-party valuation firm that prepares valuation
reports in connection with the ESOP and minus (b) without duplication (i) all cash payments
made during such period on account of reserves, restructuring charges and other non-cash charges
added to Consolidated Net Income pursuant to clause (a)(v) above in a previous period and (ii) to
the extent included in determining such Consolidated Net Income, any extraordinary gains and all
non-cash

 

 

6

items of income for such period, all determined on a consolidated basis in accordance with
GAAP.

     “Consolidated Interest Expense” shall mean, for any period, the sum of (a) the interest
expense (excluding fees but including imputed interest expense in respect of Capital Lease
Obligations and Synthetic Lease Obligations) of the Borrower and the Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP, plus (b) any interest accrued during
such period in respect of Indebtedness of the Borrower or any Subsidiary that is required to be
capitalized rather than included in consolidated interest expense for such period in accordance
with GAAP. For purposes of the foregoing, interest expense shall be determined after giving effect
to any net payments made or received by the Borrower or any Subsidiary with respect to interest
rate Hedging Agreements.

     “Consolidated Net Income” shall mean, for any period, the net income or loss of the Borrower
and the Subsidiaries for such period determined on a consolidated basis in accordance with GAAP;
provided that there shall be excluded (a) the income of any Subsidiary to the extent that the
declaration or payment of dividends or similar distributions by the Subsidiary of that income is
not at the time permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, statute, rule or governmental regulation applicable to such Subsidiary, (b) the
income or loss of any person accrued prior to the date it becomes a Subsidiary or is merged into or
consolidated with the Borrower or any Subsidiary or the date that such person’s assets are acquired
by the Borrower or any Subsidiary and (c) any gains or losses attributable to sales of assets out
of the ordinary course of business and the transaction costs in connection with such sales.

     “Contributing Guarantor” shall have the meaning specified in Section 9.08.

     “Control” shall mean 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 ownership of voting
securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall have
meanings correlative thereto.

     “Controlled Group” shall mean the group consisting of (a) any corporation which is a member of
the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as the
Borrower, (b) a partnership or other trade or business (whether or not incorporated) which is under
common control (within the meaning of Section 414(c) of the Code) with the Borrower, and (c) a
member of the same affiliated service group (within the meaning of Section 414(m) of the Code) as
the Borrower, any corporation described in clause (a) above or any partnership or trade or business
described in clause (b) above.

     “Current Assets” shall mean, at any time, the consolidated current assets (other than cash and
Permitted Investments) of the Borrower and the Subsidiaries.

 

 

7

     “Current Liabilities” shall mean, at any time, the consolidated current liabilities of the
Borrower and the Subsidiaries at such time, but excluding, without duplication, (a) the current
portion of any long-term Indebtedness and (b) outstanding Revolving Loans and Swingline Loans (as
defined in the Existing Credit Agreement).

     “Debt Incurrence Prepayment Event” shall mean the occurrence of any issuance or incurrence by
the Borrower or any Subsidiary of the Borrower of any debt obligations after the Closing Date
(other than debt obligations incurred pursuant to the Existing Credit Agreement).

     “Deemed Dividend Problem” shall mean, with respect to any Foreign Subsidiary, such Foreign
Subsidiary’s accumulated and undistributed earnings and profits being deemed to be repatriated to
the Borrower or the applicable parent Domestic Subsidiary for U.S. federal income tax purposes and
the effect of such repatriation causing adverse tax consequences to the Borrower or such parent
Domestic Subsidiary, in each case as determined by the Borrower in its commercially reasonable
judgment acting in good faith and in consultation with its legal and tax advisors.

     “Default” shall mean any event or condition which upon notice, lapse of time or both would
constitute an Event of Default.

     “dollars” or “$” shall mean lawful money of the United States of America.

     “Domestic Subsidiaries” shall mean all Subsidiaries incorporated or organized under the laws
of the United States of America, any State thereof or the District of Columbia.

     "Earn-Out Obligation” shall mean an obligation to pay the seller in a Permitted Acquisition a
future payment that is contingent upon the financial performance of the Acquired Entity.

     “Environmental Laws” shall mean all former, current and future Federal, state, local and
foreign laws (including common law), treaties, regulations, rules, ordinances, codes, decrees,
judgments, directives, orders (including consent orders), and agreements in each case, relating to
protection of the environment, natural resources, human health and safety or the presence, Release
of, or exposure to, Hazardous Materials, or the generation, manufacture, processing, distribution,
use, treatment, storage, transport, recycling or handling of, or the arrangement for such
activities with respect to, Hazardous Materials.

     “Environmental Liability” shall mean all liabilities, obligations, damages, losses, claims,
actions, suits, judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation costs), whether contingent
or otherwise, arising out of or relating to (a) compliance or non-compliance with any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release of any Hazardous
Materials or (e) any contract,

 

 

 8 

agreement or other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

     “Equity Interests” shall mean shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust, including the ESOT, or
other equity interests in any person.

     “Equity Issuance” shall mean any issuance or sale by the Borrower or any Subsidiary of any
Equity Interests of the Borrower or any such Subsidiary, as applicable, except in each case for (a)
any issuance or sale to the Borrower or any Subsidiary, (b) any issuance of directors’ qualifying
shares, and (c) sales or issuances of common stock, options, warrants, stock appreciation rights,
phantom stock, or other incentive agreements of the Borrower (i) to the ESOT Trustee (for the
benefit of the ESOP) or (ii) to management or employees of the Borrower or any Subsidiary under any
employee stock option or stock purchase plan, stock appreciation rights plan, phantom stock plan or
arrangement or employee benefit plan or arrangement in existence from time to time.

     “Equity Issuance Prepayment Event” means the occurrence of any Equity Issuance.

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

     “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the
Code, or solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

     “ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder, with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan or the withdrawal or partial withdrawal of the Borrower or any of its
ERISA Affiliates from any Plan or Multiemployer Plan; (e) the receipt by the Borrower or any of its
ERISA Affiliates from the PBGC or a plan administrator of any notice relating to the intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the adoption of any
amendment to a Plan that would require the provision of security pursuant to Section 401(a)(29) of
the Code or Section 307 of ERISA; (g) the receipt by the Borrower or any of its ERISA Affiliates of
any notice, or the receipt by any Multiemployer Plan from the Borrower or any of its ERISA
Affiliates of any notice, concerning the imposition of Withdrawal Liability or a determination that
a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning
of Title IV of ERISA; (h) the occurrence of a “prohibited transaction” with

 

9

respect to which the Borrower or any of the Subsidiaries is a “disqualified person” (within
the meaning of Section 4975 of the Code) or with respect to which the Borrower or any such
Subsidiary could otherwise be liable; or (i) any other event or condition with respect to a Plan or
Multiemployer Plan that could result in liability of the Borrower or any Subsidiary.

     “ESOP” shall mean the employee benefit plan entitled “The Alion Science and Technology
Corporation Employee Ownership, Savings and Investment Plan” adopted and maintained by the
Borrower.

     “ESOP Fiduciary” shall mean the named fiduciary of the ESOP under ERISA. As of the Closing
Date, the ESOP Fiduciary is the ESOP Committee of the Borrower.

     “ESOP Plan Documents” shall mean collectively, the documents listed on Schedule 1.01(a), each
as may be amended, supplemented or modified from time to time as permitted by Section 6.09.

     “ESOT” shall mean the trust entitled “The Alion Science and Technology Corporation Employee
Ownership, Savings and Investment Trust” and adopted and maintained by the Borrower pursuant to the
applicable ESOP Plan Documents.

     “ESOT Trustee” shall mean the trustee of the ESOT. As of the Closing Date, the ESOT Trustee
is State Street Bank and Trust Company.

     “Event of Default” shall have the meaning assigned to such term in Article VII.

     “Excess Cash Flow” shall mean, for any fiscal year of the Borrower, the excess of (a) the sum,
without duplication, of (i) Consolidated EBITDA for such fiscal year and (ii) reductions to noncash
working capital of the Borrower and the Subsidiaries for such fiscal year (i.e., the decrease, if
any, in Current Assets minus Current Liabilities from the beginning to the end of such fiscal year)
over (b) the sum, without duplication, of (i) the amount of any Taxes payable in cash by the
Borrower and the Subsidiaries with respect to such fiscal year, (ii) Consolidated Interest Expense
for such fiscal year, (iii) Capital Expenditures made in cash during such fiscal year, except to
the extent financed with the proceeds of Indebtedness, equity issuances, casualty proceeds,
condemnation proceeds or other proceeds that would not be included in Consolidated EBITDA, (iv)
permanent repayments of Indebtedness (except any mandatory prepayments of Loans under Section 2.10)
made by the Borrower and the Subsidiaries during such fiscal year, but only to the extent that such
prepayments by their terms cannot be reborrowed or redrawn and do not occur in connection with a
refinancing of all or any portion of such Indebtedness, (v) additions to noncash working capital
for such fiscal year (i.e., the increase, if any, in Current Assets minus Current Liabilities from
the beginning to the end of such fiscal year), (vi) the purchase price of all Permitted
Acquisitions paid in cash during such fiscal year, (vii) cash contributions made to the ESOP
during such fiscal year and included in Consolidated EBITDA pursuant to clause (a)(iv) of the
definition of the term “Consolidated EBITDA”, and (viii) extraordinary losses and non-recurring
charges and adjustments during such fiscal year, in each case to the extent included in
Consolidated

 

10

EBITDA pursuant to clauses (a)(vi) and (a)(vii), respectively, of the definition of the term
“Consolidated EBITDA”.

     “Excluded Taxes” shall mean, with respect to the Administrative Agent, any Lender, or any
other recipient of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United
States of America, or by the jurisdiction 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 of America or
any similar tax imposed by any other jurisdiction described in clause (a) above and (c) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section
2.18(a)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time
such Foreign Lender becomes a party to this Agreement (or designates a new lending office) or is
attributable to such Foreign Lender’s failure to comply with Section 2.17(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 2.17(a).

     “Existing Credit Agreement” shall mean the Credit Agreement dated as of August 4, 2004, by and
among the Borrower, the institutions from time to time party thereto as lenders and Credit Suisse,
as administrative agent and collateral agent, as the same may be amended, extended, renewed,
restated, supplemented or otherwise modified (in whole or in part, and without limitation as to
amount, terms, conditions, covenants and other provisions) from time to time, and any agreement
(and related document), including an indenture, governing Indebtedness incurred to refinance or
replace, in whole or in part, the borrowings and commitments then outstanding or permitted to be
outstanding under such Credit Agreement or successor Credit Agreement (excluding this Agreement),
whether by the same or any other lender, investor or group of lenders or investors.

     “Extended Loans” shall have the meaning specified in Section 2.01(c).

     “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day that is a Business Day, the average of the
quotations for the day for such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by it.

     “Final Maturity Date” shall mean the date that is 66 months after the Closing Date.

     “Financial Assistance Problem” shall mean, with respect to any Foreign Subsidiary, the
inability of such Foreign Subsidiary to become a Subsidiary Guarantor on

 

11

account of legal or financial limitations imposed by the jurisdiction of organization of such
Foreign Subsidiary or other relevant jurisdictions having authority over such Foreign Subsidiary,
in each case as determined by the Borrower in its commercially reasonable judgment acting in good
faith and in consultation with its legal and tax advisors.

     “Financial Officer” of any person shall mean the chief financial officer, principal accounting
officer, treasurer or controller of such person.

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

     “Foreign Ownership Control or Influence” shall have the meaning given to such phrase in the
Federal National Industrial Security Program Operating Manual and any successor documentation or
program thereto.

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

     “GAAP” shall mean United States generally accepted accounting principles applied on a basis
consistent with the practices the Borrower has employed historically in preparing its financial
statements.

     “Government” shall mean the United States government or any department or agency thereof.

     “Governmental Authority” shall mean any Federal, state, local or foreign court or governmental
agency, authority, instrumentality or regulatory body.

     “Government Contracts” shall mean written contracts between the Borrower or any Subsidiary
Guarantor and the Government.

     “Granting Lender” shall have the meaning assigned to such term in Section 10.04(i).

     “Guarantee” of or by any person shall mean any obligation, contingent or otherwise, of such
person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation of any other person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such person, direct or indirect, (a) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation
or to purchase (or to advance or supply funds for the purchase of) any security for the payment of
such Indebtedness or other obligation, (b) to purchase or lease property, securities or services
for the purpose of assuring the owner of such Indebtedness or other obligation of the payment of
such Indebtedness or other obligation or (c) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor so as to enable the

 

12

primary obligor to pay such Indebtedness or other obligation; provided, however, that the term
“Guarantee” shall not include endorsements for collection or deposit in the ordinary course of
business.

     “Hazardous Materials” shall mean (a) any petroleum products or byproducts and all other
hydrocarbons, coal ash, radon gas, asbestos, urea formaldehyde foam insulation, polychlorinated
biphenyls, chlorofluorocarbons and all other ozone-depleting substances and (b) any chemical,
material, substance or waste that is prohibited, limited or regulated by or pursuant to any
Environmental Law.

     “Hedging Agreement” shall mean any interest rate protection agreement, foreign currency
exchange agreement, commodity price protection agreement or other interest or currency exchange
rate or commodity price hedging arrangement.

     “IIT” shall mean Illinois Institute of Technology, an Illinois not-for-profit corporation.

     “IITRI” shall mean IIT Research Institute, a not-for-profit Illinois corporation controlled by
IIT.

     “Indebtedness” of any person shall mean, without duplication, (a) all obligations of such
person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such person upon which interest charges are customarily paid, (d) all obligations of such person
under conditional sale or other title retention agreements relating to property or assets purchased
by such person (excluding trade accounts payable and accrued obligations incurred in the ordinary
course of business), (e) all obligations of such person issued or assumed as the deferred purchase
price of property or services (excluding trade accounts payable, accrued obligations incurred in
the ordinary course of business and Earn-Out Obligations), (f) all Indebtedness of others secured
by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to
be secured by) any Lien on property owned or acquired by such person, whether or not the
obligations secured thereby have been assumed, (g) all Guarantees by such person of Indebtedness of
others, (h) all Capital Lease Obligations and Synthetic Lease Obligations of such person, (i) all
obligations of such person as an account party in respect of letters of credit and (j) all
obligations of such person in respect of bankers’ acceptances. The Indebtedness of any person
shall include the Indebtedness of any partnership in which such person is a general partner.

     “Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

     “Indemnitee” shall have the meaning specified in Section 10.05(b).

     “Information” shall have the meaning specified in Section 10.16.

     “Initial Loans” shall have the meaning specified in Section 2.01(a).

 

13

     “Initial Maturity Date” shall mean the date that is eighteen months after the Closing Date.

     “Insignificant Subsidiary” shall mean any Subsidiary that either (a)(i) does not conduct any
business operations, (ii) has assets with a total book value not in excess of $100,000 and (iii)
does not have any Indebtedness outstanding, or (b) is a direct or indirect Subsidiary of the
Borrower formed for purposes of effecting a Permitted Acquisition which Subsidiary is formed with
the intention of meeting, and within one year after the consummation of such Permitted Acquisition
meets, the criteria set forth in clause (a) above; provided that at no time shall any Subsidiary
otherwise satisfying the criteria of this clause (b) be considered an “Insignificant Subsidiary” if
such Subsidiary and all other such Subsidiaries hold 5% or more of the consolidated assets of the
Borrower.

     “Interest Coverage Ratio” shall mean, for any period, the ratio of (a) Consolidated EBITDA for
such period minus Capital Expenditures for such period to (b) Consolidated Interest Expense
for such period payable in cash.

     “Interest Payment Date” means, with respect to any Loan, the last day of the Interest Period
applicable to such Loan, the Initial Maturity Date and the day on which any Loan is repaid or
prepaid.

     “Interest Period” means the period commencing on the Closing Date and ending on the
numerically corresponding day (or, if there is no numerically corresponding day, on the last day)
in the calendar month that is three months thereafter, and each successive three-month period
commencing on the last day of the preceding interest period and ending on the numerically
corresponding day (or, if there is no numerically corresponding day, on the last day) in the
calendar month that is three months thereafter; provided, however, that if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day. Interest
shall accrue from and including the first day of an Interest Period to but excluding the last day
of such Interest Period.

     “JJMA Stock Purchase Agreement” shall mean that certain Stock Purchase Agreement dated as of
April 1, 2005, among the Borrower, John J. McMullen Associates, Inc. (“JJMA”), a New York
corporation, M & I Marshall & Ilsley Trust Company, as trustee of the John J. McMullen Associates,
Inc. Employee Stock Ownership Trust, and certain holders of JJMA stock options and/or stock
appreciation rights, pursuant to which the Borrower acquired all of the issued and outstanding
capital stock of JJMA.

     “Lenders” shall mean (a) the persons listed on Schedule 2.01 (other than any such person that
has ceased to be a party hereto pursuant to an Assignment and Acceptance) and (b) any person that
has become a party hereto pursuant to an Assignment and Acceptance.

 

14

     “Leverage Ratio” shall mean, on any date, the ratio of Total Debt on such date to Consolidated
EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such
date.

     “LIBO Rate” shall mean, with respect to any Interest Period, the rate per annum determined by
the Administrative Agent at approximately 11:00 a.m., London time, on the date that is two Business
Days prior to the commencement of such Interest Period by reference to the British Bankers’
Association Interest Settlement Rates for deposits in dollars (as set forth by any service selected
by the Administrative Agent that has been nominated by the British Bankers’ Association as an
authorized information vendor for the purpose of displaying such rates) for a period equal to such
Interest Period; provided that, to the extent that an interest rate is not ascertainable pursuant
to the foregoing provisions of this definition, the “LIBO Rate” shall be the interest rate per
annum determined by the Administrative Agent to be the average of the rates per annum at which
deposits in dollars are offered for such relevant Interest Period to major banks in the London
interbank market in London, England by the Administrative Agent at approximately 11:00 a.m., London
time, on the date that is two Business Days prior to the beginning of such Interest Period.

     “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
encumbrance, charge or security interest in or on such asset, (b) the interest of a vendor or a
lessor under any conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the foregoing) relating to
such asset and (c) in the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

     “Loan Documents” shall mean this Agreement and the promissory notes, if any, executed and
delivered pursuant to Section 2.04(f), as the same may be amended, restated, supplemented or
otherwise modified from time to time.

     “Loan Parties” shall mean the Borrower and the Subsidiary Guarantors.

     “Loans” shall mean the Initial Loans and the Extended Loans.

     “Margin Stock” shall have the meaning assigned to such term in Regulation U.

     “Material Adverse Effect” shall mean (a) a materially adverse effect on the business, assets,
liabilities, operations or financial condition of the Borrower and the Subsidiaries, taken as a
whole, (b) a material impairment of the ability of the Borrower or any other Loan Party to perform
any of its obligations under any Loan Document to which it is or will be a party or (c) a material
impairment of the rights of or benefits available to the Lenders under any Loan Document.

     “Material Contract” shall mean each Government Contract that has a remaining value of at least
$5,000,000.

     “Material Indebtedness” shall mean Indebtedness (other than the Loans), or obligations in
respect of one or more Hedging Agreements, of any one or more of the

 

15

Borrower and the Subsidiaries in an aggregate principal amount exceeding $10,000,000. For
purposes of determining Material Indebtedness, the “principal amount” of the obligations of the
Borrower or any Subsidiary in respect of any Hedging Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary
would be required to pay if such Hedging Agreement were terminated at such time.

     “Maximum Rate” shall have the meaning specified in Section 10.09.

     “Moody’s” shall mean Moody’s Investors Service, Inc., or any successor thereto.

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

     “Net Cash Proceeds” shall mean (a) with respect to any Asset Sale, the cash proceeds
(including cash proceeds subsequently received (as and when received) in respect of noncash
consideration initially received), net of (i) selling expenses (including reasonable broker’s fees
or commissions, legal fees, transfer and similar taxes and the Borrower’s good faith estimate of
income taxes paid or payable in connection with such sale), (ii) amounts provided as a reserve, in
accordance with GAAP, against any liabilities under any indemnification obligations or purchase
price adjustment associated with such Asset Sale; provided that, to the extent and at the time any
such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds, and
(iii) the principal amount, premium or penalty, if any, interest and other amounts on any
Indebtedness for borrowed money (other than Indebtedness hereunder) which is secured by the asset
sold in such Asset Sale and which is required to be repaid with such proceeds (other than any such
Indebtedness assumed by the purchaser of such asset); provided, however, that, if (x) the Borrower
shall deliver a certificate of a Financial Officer of the Borrower to the Administrative Agent
within five Business Days after receipt of any such Net Cash Proceeds setting forth the Borrower’s
intent to reinvest such proceeds in productive assets of a kind then used or usable in the business
of the Borrower and the Subsidiaries within one-year of receipt of such proceeds and (y) no Default
or Event of Default shall have occurred and be continuing at the time such certificate is
delivered, such proceeds shall not constitute Net Cash Proceeds except to the extent not so used at
the end of such one-year period, at which time such proceeds shall be deemed to be Net Cash
Proceeds; and (b) with respect to any issuance or disposition of Indebtedness or any Equity
Issuance, the cash proceeds thereof, net of all taxes and customary fees, commissions, costs and
other expenses (including repurchase obligations to the extent reserved in accordance with GAAP)
incurred in connection therewith.

     “Obligations” shall mean (a) the due and punctual payment of (i) the principal of and interest
(including interest accruing during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the
Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for
prepayment or otherwise and (ii) all other monetary obligations of the Borrower to any of the
Lenders under any of the Loan Documents, including fees, costs, expenses and indemnities, whether
primary, secondary,

 

16

direct, contingent, fixed or otherwise (including monetary obligations incurred during the
pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding), (b) the due and punctual performance of all other
obligations of the Borrower under or pursuant to each of the Loan Documents, and (c) the due and
punctual payment and performance of all the obligations of each other Loan Party under or pursuant
to each of the Loan Documents.

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

     “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

     “Permitted Acquisition” shall have the meaning assigned to such term in Section 6.04(g);
provided that the Acquisition shall be deemed to be a Permitted Acquisition for all purposes of
this Agreement and the other Loan Documents.

     “Permitted Investments” shall mean:

     (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States of America), in each
case maturing within one year from the date of acquisition thereof;

     (b) investments in commercial paper maturing within 270 days from the date of acquisition
thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or
from Moody’s;

     (c) investments in certificates of deposit, banker’s acceptances and time deposits maturing
within one year from the date of acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, the Administrative Agent or any domestic office
of any commercial bank organized under the laws of the United States of America or any State
thereof that has a combined capital and surplus and undivided profits of not less than
$500,000,000;

     (d) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution satisfying
the criteria of clause (c) above;

     (e) investments in “money market funds” within the meaning of Rule 2a-7 of the Investment
Company Act of 1940, as amended, substantially all of whose assets are invested in investments of
the type described in clauses (a) through (d) above;

     (f) investments in so-called “auction rate” securities rated AAA or higher by S&P or Aaa or
higher by Moody’s and which have a reset date not more than 90 days from the date of acquisition
thereof; and

 

17

     (g) other short-term investments utilized by Foreign Subsidiaries in accordance with normal
investment practices for cash management in investments of a type analogous to the foregoing.

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

     “PIK Interest Amount” means, for any Interest Period, the aggregate amount equal to the amount
of interest borne by an Extended Loan in excess of the sum of the Adjusted LIBO Rate for such
Interest Period plus 700 basis points.

     “Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan) subject
to the provisions of Title IV of ERISA or Section 412 of the Code or Section 307 of ERISA, and in
respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

     “Prepayment Amount” shall have the meaning specified in Section 2.09(b).

     “Prepayment Event” shall mean any Debt Incurrence Prepayment Event, any Asset Sale Prepayment
Event or any Equity Issuance Prepayment Event.

     “Pro Forma Basis” shall mean, with respect to compliance with any test or covenant herein,
compliance with such covenant or test after giving effect to (a) any proposed Permitted Acquisition
or (b) any Asset Sale of a Subsidiary or operating entity for which historical financial statements
for the relevant period are available (including (i) pro forma adjustments arising out of events
which are directly attributable to the proposed Permitted Acquisition or Asset Sale, are factually
supportable and are expected to have a continuing impact, in each case as determined on a basis
consistent with Article 11 of Regulation S-X of the Securities Act of 1933, as amended, as
interpreted by the Staff of the Securities and Exchange Commission, and (ii) such other adjustments
as are satisfactory to the Administrative Agent, in each case as certified by a Financial Officer
of the Borrower) using, for purposes of determining such compliance, the historical financial
statements of all entities or assets so acquired or sold and the consolidated financial statements
of the Borrower and the Subsidiaries which shall be reformulated as if such Permitted Acquisition
or Asset Sale, and all other Permitted Acquisitions and Asset Sales that have been consummated
during the period, and any Indebtedness or other liabilities incurred in connection with any such
Permitted Acquisitions had been consummated and incurred at the beginning of such period.

     “Pro Forma Compliance” shall mean, at any date of determination, that the Borrower shall be in
pro forma compliance with the covenants set forth in Sections 6.12 and 6.13 as of the date of such
determination or the last day of the most recently completed fiscal quarter, as the case may be
(computed on the basis of (a) balance sheet amounts as of such date and (b) income statement
amounts for the most recently completed period of four consecutive fiscal quarters for which
financial statements shall

 

18

have been delivered to the Administrative Agent and calculated on a Pro Forma Basis in respect
of the event giving rise to such determination).

     “Qualified Public Offering” shall mean an underwritten public offering of common stock of the
Borrower pursuant to an effective registration statement filed with the Securities and Exchange
Commission in accordance with the Securities Act of 1933, as amended, that results in at least
$30,000,000 of Net Cash Proceeds to the Borrower and results in the listing of the common stock of
the Borrower on a national securities exchange.

     “Refinancing Indebtedness” shall have the meaning specified in Section 6.01(d).

     “Register” shall have the meaning specified in Section 10.04(d).

     “Regulation T” shall mean Regulation T of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Regulation U” shall mean Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Regulation X” shall mean Regulation X of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Related Fund” shall mean, with respect to any Lender that is a fund that invests in bank
loans, any other fund that invests in bank loans and is administered, advised or managed by the
same investment advisor as such Lender or by an Affiliate of such investment advisor.

     “Related Parties” shall mean, with respect to any specified person, such person’s Affiliates
and the respective directors, officers, employees and agents of such person and such person’s
Affiliates.

     “Release” shall mean any release, spill, emission, leaking, dumping, injection, pouring,
deposit, disposal, discharge, dispersal, leaching or migration into or through the environment or
within or upon any building, structure, facility or fixture.

     “Required Lenders” shall mean, at any time, Lenders having Loans representing more than 50% of
the sum of all Loans outstanding.

     “Restricted Indebtedness” shall mean Indebtedness of the Borrower or any Subsidiary, the
payment, prepayment, repurchase or defeasance of which is restricted under Section 6.09(c).

     “Restricted Payment” shall mean any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the Borrower or any
Subsidiary, or any payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of or otherwise with respect to any Equity

 

19

Interests in the Borrower or any Subsidiary or any option, warrant or other right to acquire
any such Equity Interests in the Borrower or any Subsidiary. For the avoidance of doubt, any
payment made in respect of an Earn-Out Obligation is not a Restricted Payment.

     “Rights Agreement” means the Rights Agreement dated as of December 20, 2002, by and among the
Borrower, the ESOT and the other holders of Equity Interests (or warrants or options therefor)
issued by the Borrower.

     “Securities Purchase Agreement” shall mean the Seller Note Securities Purchase Agreement dated
as of December 20, 2002, by and between the Borrower and IITRI (as subsequently assigned to IIT),
as the same may be amended, supplemented or modified from time to time as permitted by Section
6.09.

     “Seller” is defined in the recitals.

     “Seller Subordinated Notes” shall mean the Borrower’s 6% Seller Subordinated Notes due
December 20, 2010 in an initial outstanding aggregate principal amount of approximately
$39,900,000, together with additional Seller Subordinated Notes issued in lieu of cash interest
thereon in accordance with the terms thereof.

     “Senior Secured Leverage Ratio” shall mean, on any date, the ratio of Total Debt that is
secured by Liens incurred under Section 6.02(b), (c), (i) or (o) on such date to Consolidated
EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such
date.”

     “SPC” shall have the meaning assigned to such term in Section 10.04(i).

     “S&P” shall mean Standard & Poor’s Ratings Service, or any successor thereto.

     “Statutory Reserves” shall mean a fraction (expressed as a decimal), the numerator of which is
the number one and the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board and any other banking authority, domestic or foreign, to
which the Administrative Agent or any Lender (including any branch, Affiliate or other fronting
office making or holding a Loan) is subject for Eurodollar Liabilities (as defined in Regulation D
of the Board). Loans shall be deemed to constitute Eurodollar Liabilities as defined in Regulation
D of the Board) and to be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any Lender under such
Regulation D. Statutory Reserves shall be adjusted automatically on and as of the effective date
of any change in any reserve percentage.

     “subsidiary” shall mean, with respect to any person (herein referred to as the “parent”), any
corporation, partnership, association or other business entity (a) of which securities or other
ownership interests representing more than 50% of the equity or more than 50% of the ordinary
voting power or more than 50% of the general partnership interests are, at the time any
determination is being made, owned, Controlled or held, or

 

20

(b) that is, at the time any determination is made, otherwise Controlled, by the parent or one
or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

     “Subsidiary” shall mean any subsidiary of the Borrower.

     “Subsidiary Guarantor” shall mean each Subsidiary listed on Schedule 1.01(c), and each other
Subsidiary that is or becomes a party to this Agreement by executing a Supplemental Guarantee.

     “Supplemental Guarantee” shall mean an instrument executed by a Subsidiary of the Borrower in
the form of Exhibit D.

     “Synthetic Lease” shall mean, as to any Person, any lease (including leases that may be
terminated by the lessee at any time) of any property (whether real, personal or mixed) having a
value in excess of $100,000 (a) that is accounted for as an operating lease under GAAP and (b) in
respect of which the lessee retains or obtains ownership of the property so leased for U.S. federal
income tax purposes, other than any such lease under which such Person is the lessor.

     “Synthetic Lease Obligations” shall mean, as to any person, an amount equal to the capitalized
amount of the remaining lease payments under any Synthetic Lease that would appear on a balance
sheet of such person in accordance with GAAP if such obligations were accounted for as Capital
Lease Obligations.

     “Synthetic Purchase Agreement” shall mean any swap, derivative or other agreement or
combination of agreements pursuant to which the Borrower or any Subsidiary is or may become
obligated to make (a) any payment in connection with a purchase by any third party from a person
other than the Borrower or any Subsidiary of any Equity Interest or Restricted Indebtedness or (b)
any payment (other than on account of a permitted purchase by it of any Equity Interest or
Restricted Indebtedness) the amount of which is determined by reference to the price or value at
any time of any Equity Interest or Restricted Indebtedness; provided that no phantom stock plan,
stock appreciation right plan or similar plan providing for payments only to current or former
directors, officers or employees of the Borrower or the Subsidiaries (or to their heirs or estates)
shall be deemed to be a Synthetic Purchase Agreement.

     “Taxes” shall mean any and all present or future taxes, levies, imposts, duties, deductions,
charges, liabilities or withholdings imposed by any Governmental Authority.

     “Total Debt” shall mean, at any time, the total Indebtedness of the Borrower and the
Subsidiaries at such time (excluding (i) the Seller Subordinated Notes and (ii) Indebtedness of the
type described in clause (i) of the definition of such term, except to the extent of any
unreimbursed drawings thereunder).

     “Transactions” shall mean, collectively, (a) the execution, delivery and performance by the
Loan Parties of the Loan Documents to which they are a party and, in

 

21

the case of the Borrower, the making of the Borrowings hereunder, (b) the consummation of the
Acquisition, and (c) the payment of related fees and expenses.

     “USA Patriot Act” shall mean The Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56
(signed into law October 26, 2001)).

     “Warrants” shall mean an aggregate of 1,080,437 detachable redeemable common stock warrants
issued to the holders of the Seller Subordinated Notes.

     “wholly owned subsidiary” of any person shall mean a subsidiary of such person of which
securities (except for directors’ qualifying shares) or other ownership interests representing 100%
of the Equity Interests are, at the time any determination is being made, owned, Controlled or held
by such person or one or more wholly owned subsidiaries of such person or by such person and one or
more wholly owned subsidiaries of such person.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.

     SECTION 1.02. Terms Generally. The definitions in Section 1.01 shall apply equally to both
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”; and the
words “asset” and “property” shall be construed as having 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. All references herein to Articles, Sections, Exhibits and Schedules shall be
deemed references to Articles and Sections of, and Exhibits and Schedules to, this Agreement unless
the context shall otherwise require. Except as otherwise expressly provided herein, (a) any
reference in this Agreement to any Loan Document shall mean such document as amended, restated,
supplemented or otherwise modified from time to time and (b) all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from time to time;
provided, however, that if the Borrower notifies the Administrative Agent that the Borrower wishes
to amend any covenant in Article VI or any related definition to eliminate the effect of any change
in GAAP occurring after the date of this Agreement on the operation of such covenant (or if the
Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article VI or
any related definition for such purpose), then the Borrower’s compliance with such covenant shall
be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Required Lenders.

 

22

     SECTION 1.03. Pro Forma Calculations. With respect to any period during which any Permitted
Acquisition or Asset Sale of the type described in clause (b) of the definition of the term “Pro
Forma Basis” occurs as permitted pursuant to the terms hereof, the Leverage Ratio and the Interest
Coverage Ratio shall be calculated with respect to such period and such Permitted Acquisition or
Asset Sale on a Pro Forma Basis.

     SECTION 1.04. Senior Debt. The Loans and other Obligations are hereby designated as “Senior
Debt” for all purposes of the Securities Purchase Agreement.

ARTICLE II

The Loans

     SECTION 2.01. Commitment. (a) Subject to and upon the terms and conditions herein set
forth, each Lender agrees, severally and not jointly, to make to the Borrower a loan (the “Initial
Loans”), which Initial Loans (i) shall be made on the Closing Date, (ii) may be repaid in
accordance with the provisions hereof, but once repaid, may not be reborrowed, (iii) shall not
exceed for any such Lender that aggregate principal amount that equals the Commitment of such
Lender at such time and (iv) shall not, after giving effect thereto and the application of the
proceeds thereof, exceed for all Lenders at any time outstanding the aggregate principal amount
that equals the sum of the Commitments then in effect. Each Lender may at its option make any
Loan by causing a domestic or foreign branch or an Affiliate of such Lender to make such Loan,
provided that (A) any exercise of such option shall not affect the obligation of the Borrower to
repay such Loan and (B) if it exercises such option, the Borrower shall not be required to pay any
increased costs resulting therefrom.

     (b) The Commitments shall terminate on the earliest of (i) the making of the Initial Loans on
the Closing Date, (ii) the consummation of the transactions contemplated by the Acquisition
Agreement without any borrowing under this Agreement, (iii) the termination of the Acquisition
Agreement, (iv) any date on which the Borrower provides notice to the Lenders that the transactions
contemplated by the Acquisition Agreement will not be consummated and (v) 5:00 p.m., New York City
time, on July 15, 2006, in each case if the Initial Loans are not made on or before such date.

     (c) Subject to the terms and conditions hereof, each Lender severally agrees, if the Initial
Loans have not been repaid on or prior to the Initial Maturity Date, that the maturity of such
Initial Loans shall automatically be extended to the Final Maturity Date (such extended Initial
Loans, collectively, the “Extended Loans”). Amounts repaid in respect of Extended Loans may not be
reborrowed.

     SECTION 2.02. Notice of Borrowing. (a) In order to request the Borrowing to be made on the
Closing Date, the Borrower shall give the Administrative Agent written notice (or telephonic notice
promptly confirmed in writing) at the location set forth in Section 10.01 prior to 12:00 noon (New
York City time) at least one Business Day prior to the Closing Date. Such notice (a “Borrowing
Request”) shall be irrevocable and shall

 

 

23

specify (i) the Closing Date (which shall be a Business Day), (ii) the amount of such
Borrowing, and (iii) remittance instructions. The Administrative Agent shall promptly give each
Lender written notice (or telephonic notice promptly confirmed in writing) of the Borrowing of
Initial Loans, of such Lender’s proportionate share thereof and of the other matters covered by the
related Notice of Borrowing.

     (a) Without in any way limiting the obligation of the Borrower to confirm in writing any
notice it may give hereunder by telephone, the Administrative Agent may act prior to receipt of
written confirmation without liability upon the basis of such telephonic notice believed by the
Administrative Agent in good faith to be from an Financial Officer of the Borrower. In each such
case the Borrower hereby waives the right to dispute the Administrative Agent’s record of the terms
of any such telephonic notice.

     SECTION 2.03. Disbursement of Funds. (a) Subject to and upon the terms and conditions herein
set forth, each Lender agrees, severally and not jointly, no later than 12:00 noon (Local Time) on
the Closing Date to make available its pro rata portion of the Borrowing requested to be made on
such date in the manner provided below.

     (a) Each Lender shall make available all amounts it is to fund under the Borrowing in
immediately available funds to the Administrative Agent at its office specified in Section 10.01
and the Administrative Agent will make available to the Borrower by depositing to the Borrower’s
account as designated in the Notice of Borrowing the aggregate of the amounts so made available.
Unless the Administrative Agent shall have been notified by any Lender prior to the date of the
Borrowing that such Lender does not intend to make available to the Administrative Agent its
portion of the Borrowing or Borrowings to be made on such date, the Administrative Agent may assume
that such Lender has made such amount available to the Administrative Agent on such date of
Borrowing, and the Administrative Agent, in reliance upon such assumption, may (in its sole
discretion and without any obligation to do so) make available to the Borrower a corresponding
amount. If such corresponding amount is not in fact made available to the Administrative Agent by
such Lender and the Administrative Agent has made available same to the Borrower, the
Administrative Agent shall be entitled to recover such corresponding amount from such Lender and
the Borrower. If such Lender does not pay such corresponding amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the
Borrower, and the Borrower shall immediately pay such corresponding amount to the Administrative
Agent. The Administrative Agent shall also be entitled to recover from such Lender or the
Borrower, as the case may be, interest on such corresponding amount in respect of each day from the
date such corresponding amount was made available by the Administrative Agent to the Borrower to
the date such corresponding amount is recovered by the Administrative Agent, at a rate per annum
equal to the then-applicable rate of interest, calculated in accordance with Section 2.05, for the
Loans.

     (b) Nothing in this Section 2.03 shall be deemed to relieve any Lender from its obligation to
fulfill its commitments hereunder or to prejudice any rights that the Borrower may have against any
Lender as a result of any default by such Lender hereunder (it being understood, however, that no
Lender shall be responsible for the

 

 

24

failure of any other Lender or the Administrative Agent to fulfill its commitments hereunder).

     SECTION 2.04. Initial Maturity Date; Final Maturity Date; Evidence of Debt. (a) The Initial
Loans will mature on the Initial Maturity Date and, to the extent then unpaid in cash, the maturity
of the Initial Loans will automatically be extended to the Final Maturity Date pursuant to Section
2.01(c).

     (b) Any Extended Loan shall bear interest as described in Section 2.05 from the Initial
Maturity Date until such Loan shall be paid in full in cash.

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

     (d) The Administrative Agent shall maintain the Register pursuant to Section 10.04(d), and a
subaccount for each Lender, in which Register and subaccounts (taken together) shall be recorded
(i) the amount of each Loan made hereunder and the Interest Period applicable thereto, (ii) the
amount of any principal or interest due and payable or to become due and payable (including any PIK
Interest Amount and any interest payable thereon) from the Borrower to each Lender and (iii) the
amount of any sum received by the Administrative Agent hereunder from the Borrower and each
Lender’s share thereof.

     (e) The entries made in the Register and accounts and subaccounts maintained pursuant to
paragraphs (c) and (d) of this Section 2.04 shall, to the extent permitted by applicable law, be
prima facie evidence of the existence and amounts of the obligations of the Borrower therein
recorded; provided, however, that the failure of any Lender or the Administrative Agent to maintain
such account, such Register or such subaccount, as applicable, or any error therein, shall not in
any manner affect the obligations of the Borrower hereunder, including obligations to repay (with
applicable interest) the Loans made to the Borrower by such Lender in accordance with the terms of
this Agreement.

     (f) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower shall prepare, execute and deliver to the Administrative Agent a promissory
note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in the form of Exhibit G. Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after assignment pursuant to
Section 10.04) be represented by one or more promissory notes in such form payable to the order of
the payee named therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

     SECTION 2.05. Interest. (a) The unpaid principal amount of each Initial Loan shall bear
interest from the Closing Date until maturity (whether by acceleration or

 

 

25

otherwise) at a rate per annum equal to the Applicable Initial Loan Margin plus the Adjusted
LIBO Rate in effect from time to time.

     (b) The unpaid principal amount of each Extended Loan shall bear interest for the period from
and including the Initial Maturity Date to, but excluding, the maturity thereof (whether by
acceleration or otherwise) at a rate per annum equal to 900 basis points plus the Adjusted LIBO
Rate in effect from time to time. In respect of each Extended Loan, in lieu of paying the PIK
Interest Amount in cash, the Borrower may elect to add such PIK Interest Amount to the principal
amount of such Extended Loan.

     (c) If all or a portion of (i) the principal amount of any Loan or (ii) any interest payable
thereon shall not be paid when due (whether at the stated maturity, by acceleration or otherwise),
such overdue amount shall bear interest, to the extent permitted by applicable law, at a rate per
annum equal to the then applicable interest rate on the Loans plus 2% from and including the date
of such non-payment to but excluding the date on which such amount is paid in full (after as well
as before judgment).

     (d) Interest shall be payable in arrears (either in cash or, to the extent required by clause
(f) below, by adding to the then outstanding principal amount of the Loans) on each Interest
Payment Date; provided that additional interest accruing pursuant to Section 2.05(c) shall be
payable from time to time upon demand.

     (e) All computations of interest hereunder shall be made on the basis of a 360-day year for
the actual days elapsed.

     (f) The Administrative Agent, upon determining the interest rate for each Interest Period,
shall promptly notify the Borrower and the Lenders thereof and of any PIK Interest Amount. Each
such determination shall, absent clearly demonstrable error, be final and conclusive and binding on
all parties hereto.

     SECTION 2.06. Repayment of Extended Loans. To the extent not previously paid, the principal
amount of all Extended Loans shall be due and payable on the Final Maturity Date, together in each
case with accrued and unpaid interest on the principal amount to be paid to but excluding the date
of payment, plus the Applicable Premium.

     SECTION 2.07. Fees. The Borrower agrees to pay to the Administrative Agent, for its own
account, the Administrative Agent Fees (the
“Administrative Agent Fees”) at the times, in the
amounts and on the terms previously agreed by them.

     SECTION 2.08. Voluntary Reduction of Initial Loan Commitments. Upon at least one Business
Day’s prior written notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent at the Administrative Agent’s Office (which notice the Administrative Agent
shall promptly transmit to each of the Lenders), the Borrower shall have the right, without premium
or penalty, on any day, permanently to terminate or reduce the Commitments in whole or in part,
provided that (a) any such reduction shall apply proportionately and permanently to reduce the
Commitments of each of the Lenders, and (b) any partial reduction pursuant to this Section 2.08
shall be in the amount of at least $1,000,000.

 

 

26

     SECTION 2.09. Voluntary Prepayments. The Borrower shall have the right to prepay the Loans in
whole or in part from time to time on the following terms and conditions: (a) the Borrower shall
give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing)
stating (i) its intent to make such prepayment and (ii) the amount of such prepayment including the
Applicable Premium, which notice shall be given by the Borrower no later than 10:00 A.M. (New York
City time) three Business Days prior to the date of such prepayment; (b) as promptly as practicable
after receipt of such notice, the Administrative Agent shall give notice to each Lender of (i) the
pro rata amount payable to such Lender in respect of its Loans (with respect to each Lender, such
Lender’s “Prepayment Amount”) and (ii) the expected date of such payment; (c) the Prepayment
Amounts payable to the Lenders shall be paid by the Borrower to the Administrative Agent for
application pursuant to Section 2.10(b); (d) each partial prepayment of any Loans shall be in an
amount that is a multiple of $100,000 and in an aggregate principal amount of at least $1,000,000;
and (e) any prepayment of Loans pursuant to this Section 2.09 on any day other than the last day of
an Interest Period applicable thereto shall be subject to compliance by the Borrower with the
applicable provisions of Section 2.13.

     SECTION 2.10. Mandatory Prepayments.

     (a) Sources of Prepayments. On each occasion that a Prepayment Event occurs (but
subject to Section 2.10(d) and, with respect to an Asset Sale Prepayment Event only, Section
2.10(c)), the Borrower shall, within one Business Day after the occurrence of such Prepayment
Event, notify the Administrative Agent of a pending prepayment of the Loans in an aggregate amount
equal to (1) in the case of a Debt Incurrence Prepayment Event, 100% of the Net Cash Proceeds
therefrom plus the Applicable Premium, (2) in the case of an Asset Sale Prepayment Event, 100% of
the Net Cash Proceeds therefrom plus the Applicable Premium, and (3) in the case of an Equity
Issuance Prepayment Event, 100% of the Net Cash Proceeds therefrom plus the Applicable Premium. As
promptly as practicable after receipt of such notice, (x) the Administrative Agent shall give
notice to each Lender of (i) the pro-rata amount that would be payable to such Lender in respect of
its Loans and (ii) the expected date of such payment and (y) Prepayment Amounts payable to the
Lenders shall be paid by the Borrower to the Administrative Agent for application pursuant to
Section 2.10(b).

     (b) Application to Loans. Upon receipt of the amount payable to the Lenders pursuant
to Section 2.09, 2.10(a) or 10.05, the Administrative Agent shall distribute such amount in the
following order: First, to the payment of all expenses due and payable to the Administrative Agent
under Section 10.05; Second, to the payment of all expenses due and payable to the Lenders under
Section 10.05, ratably among the Lenders in accordance with the aggregate amount of such payments
owed to each such Lender; Third, to the payment of interest (other than PIK Interest Amount added
to the principal amount of the Extended Loans) then due and payable on the Loans, ratably among the
Lenders in accordance with the aggregate amount of interest owed to each such Lenders; and Fourth,
to the payment of the principal amount of the Loans that is then due and payable, ratably among
such Lenders in accordance with the aggregate principal amount owed to each such Lender.

 

 

27

     (c) Application to Senior Indebtedness. Notwithstanding anything to the contrary in
this Agreement, the Borrower is not obligated to apply Net Cash Proceeds attributable to an Asset
Sale Prepayment Event to the prepayment of the Loans to the extent that such Net Cash Proceeds are
required to be and are applied pursuant to the Existing Credit Agreement in satisfaction of
obligations thereunder.

     (d) Temporary Investment. Pending the final application of any Net Cash Proceeds
pursuant to this Section 2.10, the Borrower or the applicable Restricted Subsidiary may apply such
Net Cash Proceeds temporarily to reduce Indebtedness outstanding under a revolving credit facility
or otherwise invest such Net Cash Proceeds in Permitted Investments.

     SECTION 2.11. Reserve Requirements; Change in Circumstances. (a) Notwithstanding any other
provision of this Agreement, if any Change in Law shall impose, modify or deem applicable any
reserve, special deposit or similar requirement against assets of, deposits with or for the account
of or credit extended by any Lender (except any such reserve requirement which is reflected in the
Adjusted LIBO Rate) or shall impose on such Lender or the London interbank market any other
condition affecting this Agreement or Loans made by such Lender 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 Loan or purchasing or maintaining a participation therein or to reduce the amount
of any sum received or receivable by such Lender hereunder (whether of principal, interest or
otherwise) by an amount deemed by such Lender to be material, then the Borrower will pay to such
Lender, as the case may be, upon demand such additional amount or amounts as will compensate such
Lender, as the case may be, for such additional costs incurred or reduction suffered.

     (b) If any Lender shall have determined that any Change in Law regarding capital adequacy has
or would have the effect of reducing the rate of return on such Lender’s capital or on the capital
of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans made by
such Lender pursuant hereto to a level below that which such Lender or such Lender’s holding
company could have achieved but for such Change in Law (taking into consideration such Lender’s
policies and the policies of such Lender’s holding company with respect to capital adequacy) by an
amount deemed by such Lender to be material, then from time to time the Borrower shall pay to such
Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding
company for any such reduction suffered.

     (c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender or its holding company, as applicable, as specified in paragraph (a) or (b) of this Section
shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower
shall pay such Lender the amount shown as due on any such certificate delivered by it within 10
Business Days after its receipt of the same.

     (d) Failure or delay on the part of any Lender to demand compensation for any increased costs
or reduction in amounts received or receivable or reduction in return on

 

 

28

capital shall not constitute a waiver of such Lender’s right to demand such compensation;
provided that the Borrower shall not be under any obligation to compensate any Lender under
paragraph (a) or (b) of this Section with respect to increased costs or reductions with respect to
any period prior to the date that is 120 days prior to such request if such Lender knew or could
reasonably have been expected to know of the circumstances giving rise to such increased costs or
reductions and of the fact that such circumstances would result in a claim for increased
compensation by reason of such increased costs or reductions; provided further that the foregoing
limitation shall not apply to any increased costs or reductions arising out of the retroactive
application of any Change in Law within such 120-day period. The protection of this Section shall
be available to each Lender regardless of any possible contention of the invalidity or
inapplicability of the Change in Law that shall have occurred or been imposed.

     SECTION 2.12. Change in Legality. Notwithstanding any other provision of this Agreement, if
any Change in Law shall make it unlawful for any Lender to make or maintain any Loan or to give
effect to its obligations as contemplated hereby with respect to any Loan, then such Lender shall
within a reasonable time thereafter give written notice to the Borrower and to the Administrative
Agent of such determination. If the foregoing notice shall have been given, then (i) within 15
days thereafter, the Administrative Agent and the Borrower shall enter into negotiations in good
faith with a view to agreeing to an alternative interest rate acceptable to the Borrower to make,
fund or maintain affected Loans and (ii) if, at the expiration of 20 days from the giving of such
notice by the Administrative Agent, the Administrative Agent and the Borrower shall not have
reached an agreement, such Loans will bear interest at a rate per annum specified by each such
Lender to represent its cost of funds therefor plus either the Applicable Initial Loan Margin or,
if after the Initial Maturity Date, 900 basis points.

     SECTION 2.13. Indemnity. The Borrower shall indemnify each Lender against any loss or expense
that such Lender may sustain or incur as a consequence (other than as a result of the gross
negligence or willful misconduct of such Lender) of (a) any event, other than a default by such
Lender in the performance of its obligations hereunder, which results in (i) such Lender receiving
or being deemed to receive any amount on account of the principal of any Loan prior to the end of
the Interest Period in effect therefor, other than on the last day of the Interest Period in effect
therefor, or (ii) any Loan to be made by such Lender not being made after notice of such Loan
shall have been given by the Borrower hereunder (any of the events referred to in this clause (a)
being called a “Breakage Event”) or (b) any default in the making of any payment or prepayment
required to be made hereunder. In the case of any Breakage Event, such loss shall include an
amount equal to the excess, as reasonably determined by such Lender, of (i) its cost of obtaining
funds for the Loan that is the subject of such Breakage Event for the period from the date of such
Breakage Event to the last day of the Interest Period in effect (or that would have been in effect)
for such Loan over (ii) the amount of interest likely to be realized by such Lender in redeploying
the funds released or not utilized by reason of such Breakage Event for such period. A certificate
of any Lender setting forth any amount or amounts which such Lender is entitled to receive pursuant
to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.

 

 

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     SECTION 2.14. Pro Rata Treatment. The Borrowing, each payment or prepayment of principal of
any Loan and each payment of interest on the Loans shall be allocated pro rata among the Lenders in
accordance with their respective applicable Commitments (or, if such Commitments shall have expired
or been terminated, in accordance with the respective principal amounts of their outstanding
Loans). Each Lender agrees that in computing such Lender’s portion of the Borrowing to be made
hereunder, the Administrative Agent may, in its discretion, round each Lender’s percentage of such
Borrowing to the next higher or lower whole dollar amount.

     SECTION 2.15. Sharing of Setoffs. Each Lender agrees that if it shall, through the exercise
of a right of banker’s lien, setoff or counterclaim against the Borrower or any other Loan Party,
or pursuant to a secured claim under Section 506 of Title 11 of the United States Code or other
security or interest arising from, or in lieu of, such secured claim, received by such Lender under
any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means,
obtain payment (voluntary or involuntary) in respect of any Loan or Loans as a result of which the
unpaid principal portion of its Loans shall be proportionately less than the unpaid principal
portion of the Loans of any other Lender, it shall be deemed simultaneously to have purchased from
such other Lender at face value, and shall promptly pay to such other Lender the purchase price
for, a participation in the Loans of such other Lender, so that the aggregate unpaid principal
amount of the Loans and participations in Loans held by each Lender shall be in the same proportion
to the aggregate unpaid principal amount of all Loans then outstanding as the principal amount of
its Loans prior to such exercise of banker’s lien, setoff or counterclaim or other event was to the
principal amount of all Loans outstanding prior to such exercise of banker’s lien, setoff or
counterclaim or other event; provided, however, that if any such purchase or purchases or
adjustments shall be made pursuant to this Section and the payment giving rise thereto shall
thereafter be recovered, such purchase or purchases or adjustments shall be rescinded to the extent
of such recovery and the purchase price or prices or adjustment restored without interest. The
Borrower expressly consents to the foregoing arrangements and agrees that any Lender holding a
participation in a Loan deemed to have been so purchased may exercise any and all rights of
banker’s lien, setoff or counterclaim in accordance with the terms and conditions of this Agreement
and applicable law with respect to any and all moneys owing by the Borrower to such Lender by
reason thereof as fully as if such Lender had made a Loan directly to the Borrower in the amount of
such participation.

     SECTION 2.16. Payments. (a) The Borrower shall make each payment (including principal of or
interest on any Loan or any Administrative Agent Fees or other amounts) hereunder and under any
other Loan Document not later than 12:00 noon (New York City time) on the date when due in
immediately available dollars, without setoff, defense or counterclaim. Each such payment shall be
made to the Administrative Agent at its offices at Eleven Madison Avenue, New York, New York 10010.
The Administrative Agent shall distribute any such payments received by it for the account of any
other person to the appropriate recipient promptly following receipt thereof.

     (b) Except as otherwise expressly provided herein, whenever any payment (including principal
of or interest on any Loan or any Administrative Agent Fees or other

 

 

30

amounts) hereunder or under any other Loan Document shall become due, or otherwise would
occur, on a day that is not a Business Day, such payment may be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the computation of
interest or Administrative Agent Fees, if applicable, up to but excluding the day of payment.

     SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of the
Borrower or any other Loan Party hereunder or under any other Loan Document shall be made free and
clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower or any other Loan Party shall be required to deduct any Indemnified Taxes or 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, or Lender (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 or such Loan Party
shall make such deductions and (iii) the Borrower or such Loan Party shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

     (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

     (c) The Borrower shall indemnify the Administrative Agent and each Lender, within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Administrative Agent or such Lender, as the case may be, on or with respect to any payment by
or on account of any obligation of the Borrower or any other Loan Party hereunder or under any
other Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) 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. A
certificate as to the amount of such payment or liability delivered to the Borrower by a Lender, or
by the Administrative Agent on behalf of itself or a Lender, shall be conclusive absent manifest
error.

     (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower or any other Loan Party 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) 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 located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed

 

 

31

documentation prescribed by applicable law or reasonably requested by the Borrower as will
permit such payments to be made without withholding or at a reduced rate.

     (f) If the Administrative Agent or a Lender determines 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 2.17, it shall pay over such
refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts
paid, by the Borrower under this Section 2.17 with respect to the Taxes or Other Taxes giving rise
to such refund), net of all reasonable out-of-pocket expenses of the Administrative Agent or such
Lender 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 or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority unless the Governmental
Authority assessed such penalties, interest or other charges due to the gross negligence or willful
misconduct of the Administrative Agent or such Lender) to the Administrative Agent or such Lender
in the event the Administrative Agent or such Lender is required to repay such refund to
Governmental Authority. This Section shall not be construed to require the Administrative Agent or
any Lender to make available its tax returns (or any other information relating to its taxes which
it deems confidential) to the Borrower or any other person.

     SECTION 2.18. Assignment of Commitments Under Certain Circumstances; Duty to Mitigate. (a)
In the event (i) any Lender delivers a certificate requesting compensation pursuant to Section
2.11, (ii) any Lender delivers a notice described in Section 2.12, (iii) the Borrower is required
to pay any additional amount to any Lender or any Governmental Authority on account of any Lender
pursuant to Section 2.17 or (iv) any Lender refuses to consent to any amendment, waiver or other
modification of any Loan Document requested by the Borrower that requires the consent of a greater
percentage of the Lenders than the Required Lenders and such amendment, waiver or other
modification is consented to by the Required Lenders, the Borrower may, at its sole expense and
effort upon notice to such Lender and the Administrative Agent, require such Lender to transfer and
assign, without recourse, all of its interests, rights and obligations under this Agreement to an
assignee that shall assume such assigned obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (x) such assignment shall not conflict with any law,
rule or regulation or order of any court or other Governmental Authority having jurisdiction, (y)
the Borrower shall have received the prior written consent of the Administrative Agent, which
consent shall not unreasonably be withheld, and (z) the Borrower or such assignee shall have paid
to the affected Lender in immediately available funds an amount equal to the sum of the principal
of and interest accrued to the date of such payment on the outstanding Loans of such Lender plus
all other amounts accrued for the account of such Lender hereunder (including any amounts under
Sections 2.11 and 2.13); provided further that, if prior to any such transfer and assignment the
circumstances or event that resulted in such Lender’s claim for compensation under Section 2.11,
notice under Section 2.12 or the amounts paid pursuant to Section 2.17, as the case may be, cease
to

 

 

32

cause such Lender to suffer increased costs or reductions in amounts received or receivable or
reduction in return on capital, cease to have the consequences specified in Section 2.12 or cease
to result in amounts being payable under Section 2.17, as the case may be (including as a result of
any action taken by such Lender pursuant to paragraph (b) of this Section), or if such Lender shall
waive its right to claim further compensation under Section 2.11 in respect of such circumstances
or event, shall withdraw its notice under Section 2.12 or shall waive its right to further payments
under Section 2.17 in respect of such circumstances or event or shall consent to the proposed
amendment, waiver, consent or other modification, as the case may be, then such Lender shall not
thereafter be required to make any such transfer and assignment hereunder. Each Lender hereby
grants to the Administrative Agent an irrevocable power of attorney (which power is coupled with an
interest) to execute and deliver, on behalf of such Lender as assignor, any Assignment and
Acceptance necessary to effectuate any assignment of such Lender’s interests hereunder in the
circumstances contemplated by this paragraph.

     (b) If (i) any Lender shall request compensation under Section 2.11, (ii) any Lender delivers
a notice described in Section 2.12 or (iii) the Borrower is required to pay any additional amount
to any Lender or any Governmental Authority on account of any Lender pursuant to Section 2.17,
then such Lender shall use reasonable efforts (which shall not require such Lender to incur an
unreimbursed loss or unreimbursed cost or expense or otherwise take any action inconsistent with
its internal policies or legal or regulatory restrictions or suffer any disadvantage or burden
deemed by it to be significant) (x) to file any certificate or document reasonably requested in
writing by the Borrower or (y) to assign its rights and delegate and transfer its obligations
hereunder to another of its offices, branches or affiliates, if such filing or assignment would
reduce its claims for compensation under Section 2.11, enable it to withdraw its notice pursuant to
Section 2.12 or would reduce amounts payable pursuant to Section 2.17, as the case may be, in the
future. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender
in connection with any such filing or assignment, delegation and transfer.

ARTICLE III

Representations and Warranties

     The Borrower represents and warrants to the Administrative Agent and each Lender that:

     SECTION 3.01. Organization; Powers. The Borrower and each of the Subsidiaries (a) is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has all requisite power and authority to own its property and assets and to carry
on its business as now conducted and as proposed to be conducted, (c) is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is required, except
where the failure so to qualify could not reasonably be expected to result in a Material Adverse
Effect, and (d) has the power and authority to execute, deliver and perform its obligations under
each of the Loan

 

 

33

Documents and each other agreement or instrument contemplated thereby to which it is or will
be a party and, in the case of the Borrower, to borrow hereunder.

     SECTION 3.02. Authorization. The Transactions (a) have been duly authorized by all requisite
corporate and, if required, stockholder action and (b) will not (i) violate (A) any provision of
law, statute, rule or regulation, or of the certificate or articles of incorporation or other
constitutive documents or by-laws of the Borrower or any Subsidiary Guarantor, (B) any order of any
Governmental Authority or (C) any provision of any indenture, agreement or other instrument to
which the Borrower or any Subsidiary is a party or by which any of them or any of their property is
or may be bound, (ii) be in conflict with, result in a breach of or constitute (alone or with
notice or lapse of time or both) a default under, or give rise to any right to accelerate or to
require the prepayment, repurchase or redemption of any obligation under any such indenture,
agreement or other instrument or (iii) result in the creation or imposition of any Lien upon or
with respect to any property or assets now owned or hereafter acquired by the Borrower or any
Subsidiary (other than Liens created in respect of loans and other obligations outstanding under
the Existing Credit Agreement and the agreements and instruments related thereto).

     SECTION 3.03. Enforceability. This Agreement has been duly executed and delivered by the
Borrower and the Subsidiary Guarantors and constitutes, and each other Loan Document when executed
and delivered by each Loan Party thereto will constitute, a legal, valid and binding obligation of
such Loan Party enforceable against such Loan Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting generally the enforcement of creditors’ rights and except to
the extent that availability of the remedy of specific performance or injunctive relief is subject
to the discretion of the court before which any proceeding thereof may be brought.

     SECTION 3.04. Governmental Approvals. (a) No action, consent or approval of, registration or
filing with or any other action by any Governmental Authority is or will be required in connection
with the Transactions, except for those necessary to assign, assume and novate certain of the
Anteon Contracts and such as have been made or obtained and are in full force and effect.

     (b) No notice of suspension, debarment or termination for default has been received by the
Borrower or any Subsidiary and no cure notice has been received by the Borrower or any Subsidiary
in connection with any Government Contract or other contract pursuant to which the Borrower or any
Subsidiary is directly or indirectly acting as a subcontractor under or in connection with a
Government Contract. Each Material Contract existing on the Closing Date is listed on Schedule
3.04(b).

     SECTION 3.05. Financial Statements. (a) The Borrower has heretofore furnished to the Lenders
(i) the consolidated balance sheets and related statements of operations, shareholders’ equity and
cash flows of the Borrower and its consolidated subsidiaries as of and for the fiscal years ended
September 30, 2004 and 2005, each audited by and accompanied by the unqualified opinion of KPMG
LLP, independent public accountants, (ii) the unaudited consolidated balance sheet and related
statements of

 

34

operations and cash flows of the Borrower and its consolidated subsidiaries as of and for (A)
each fiscal quarter subsequent to September 30, 2005 ended at least 45 days before the Closing Date
and (B) each fiscal month subsequent to the date of the most recent unaudited quarterly financial
statements furnished under clause (A) ended at least 30 days before the Closing Date. Such
financial statements were prepared in accordance with GAAP and present fairly in all material
respects the financial condition and results of operations and cash flows of the Borrower and its
consolidated subsidiaries as of such dates and for such periods, subject to normal year-end
adjustments in the case of the documents provided pursuant to clause (ii). Such balance sheets and
the notes thereto disclose all material liabilities, direct or contingent, of the Borrower and its
consolidated Subsidiaries as of the dates thereof.

     (b) The Borrower has heretofore delivered to the Lenders its unaudited pro forma consolidated
balance sheet and related statements of operations, shareholders’ equity and cash flows as of and
for the 12-month period ended March 31, 2006, prepared giving effect to the Transactions as if they
had occurred, with respect to such balance sheet, as of such date and, with respect to such other
financial statements, as of the first day of the 12-month period ending on such date. Such pro
forma financial statements have been prepared in good faith by the Borrower, based on the
assumptions used to prepare the pro forma financial information contained in the Confidential
Information Memorandum (which assumptions were, at the time made and at the time such financial
statements were delivered, believed by the Borrower to be reasonable), are based on information
available to the Borrower as of the date of delivery thereof, accurately reflect in all material
respects adjustments required to be made to give effect to the Transactions and present fairly in
all material respects on a pro forma basis the estimated consolidated financial position of the
Borrower and its consolidated Subsidiaries as of such date and for such period, assuming that the
Transactions had actually occurred at such date or at the beginning of such period, as the case may
be.

     SECTION 3.06. No Material Adverse Change. No event, change or condition has occurred that,
individually or in the aggregate, has caused, or could reasonably be expected to cause, a material
adverse effect on the business, assets, liabilities, operations or financial condition of the
Borrower and the Subsidiaries, taken as a whole, since September 30, 2005.

     SECTION 3.07. Title to Properties; Possession Under Leases. (a) Each of the Borrower and the
Subsidiaries has good and marketable title to, or valid leasehold interests in, all its material
properties and assets, except for minor defects in title that do not interfere with its ability to
conduct its business as currently conducted or to utilize such properties and assets for their
intended purposes. All such material properties and assets are free and clear of Liens, other than
Liens expressly permitted by Section 6.02.

     (b) Each of the Borrower and the Subsidiaries has complied with all obligations under all
material leases to which it is a party and all such leases are in full force and effect. Each of
the Borrower and the Subsidiaries enjoys peaceful and undisturbed possession under all such
material leases, subject to rights reserved by lessors under such leases.

 

35

     SECTION 3.08. Subsidiaries. Schedule 3.08 sets forth as of the Closing Date a list of all
Subsidiaries and the percentage ownership interest of the Borrower or any Subsidiary therein. The
shares of capital stock or other ownership interests so indicated on Schedule 3.08 are fully paid
and non-assessable and are owned by the Borrower or any Subsidiary, directly or indirectly, free
and clear of all Liens (other than Liens created in respect of loans and other obligations
outstanding under the Existing Credit Agreement and the agreements and instruments related
thereto).

     SECTION 3.09. Litigation; Compliance with Laws. (a) Except as set forth on Schedule 3.09,
there are no actions, suits or proceedings at law or in equity or by or before any Governmental
Authority now pending or, to the knowledge of the Borrower, threatened against or affecting the
Borrower or any Subsidiary or any business, property or rights of any such person (i) that involve
any Loan Document or the Transactions or (ii) as to which there is a reasonable possibility of an
adverse determination and that, if adversely determined, could reasonably be expected, individually
or in the aggregate, to result in a Material Adverse Effect.

     (b) None of the Borrower or any of the Subsidiaries or any of their respective material
properties or assets is in violation of, nor will the continued operation of their material
properties and assets as currently conducted violate, any law, rule or regulation (including any
zoning, building, Environmental Law, ordinance, code or approval or any building permits), or is in
default with respect to any judgment, writ, injunction, decree or order of any Governmental
Authority, where such violation or default could reasonably be expected to result in a Material
Adverse Effect.

     (c) To the Borrower’s knowledge, neither the ESOP Fiduciary nor the ESOT Trustee has made any
assertion with respect to the ESOP or the ESOT contrary to or inconsistent with the accuracy of any
representation or warranty set forth herein that could reasonably be expected to result in a
Material Adverse Effect.

     SECTION 3.10. Agreements. Neither the Borrower nor any Subsidiary is in default in any manner
under any provision of any indenture or other agreement or instrument evidencing Material
Indebtedness, or any other material agreement or instrument to which it is a party or by which it
or any of its properties or assets are or may be bound, where such default could reasonably be
expected to result in a Material Adverse Effect.

     SECTION 3.11. Federal Reserve Regulations. (a) Neither the Borrower nor any Subsidiary is
engaged principally, or as one of its important activities, in the business of extending credit for
the purpose of buying or carrying Margin Stock.

     (b) No part of the proceeds of any Loan will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, for any purpose that entails a violation of, or
that is inconsistent with, the provisions of the Regulations of the Board, including Regulation T,
U or X.

 

36

     SECTION 3.12. Investment Company Act. Neither the Borrower nor any Subsidiary is an
“investment company” as defined in, or subject to regulation under, the Investment Company Act of
1940.

     SECTION 3.13. Use of Proceeds. The Borrower will use the proceeds of the Initial Loans only
for the purposes specified in the preliminary statement to this Agreement.

     SECTION 3.14. Tax Returns. Each of the Borrower and the Subsidiaries has filed or caused to
be filed all Federal, state, local and foreign tax returns or materials required to have been filed
by it and has paid or caused to be paid all taxes due and payable by it and all assessments
received by it, except for immaterial filings and amounts and taxes that are being contested in
good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable,
shall have set aside on its books adequate reserves.

     SECTION 3.15. No Material Misstatements. None of the Confidential Information Memorandum or
reports, financial statements, exhibits and schedules, taken as a whole, furnished by or on behalf
of the Borrower to the Administrative Agent or any Lender in connection with the negotiation of any
Loan Document or included therein or delivered pursuant thereto contained, contain or will contain
any material misstatement of fact or omitted, omit or will omit to state any material fact
necessary to make the statements therein, in the light of the circumstances under which they were,
are or will be made, not misleading; provided that to the extent any such information, report,
financial statement, exhibit or schedule was based upon or constitutes a forecast or projection,
the Borrower represents only that it acted in good faith and utilized reasonable assumptions and
due care in the preparation of such information, report, financial statement, exhibit or schedule.

     SECTION 3.16. Employee Benefit Plans. Each of the Borrower and its ERISA Affiliates is in
compliance in all material respects with the applicable provisions of ERISA and the Code and the
regulations and published interpretations thereunder. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events, could reasonably be
expected to result in material liability of the Borrower or any of its ERISA Affiliates. The
present value of all benefit liabilities under each Plan (based on the assumptions used for
purposes of Statement of Financial Accounting Standards No. 87) did not, as of the last annual
valuation date applicable thereto, exceed by more than $1,000,000 the fair market value of the
assets of such Plan, and the present value of all benefit liabilities of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87)
did not, as of the last annual valuation dates applicable thereto, exceed by more than $1,000,000
the fair market value of the assets of all such underfunded Plans.

     SECTION 3.17. Environmental Matters. (a) Except as set forth in Schedule 3.17 and except
with respect to any other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, neither the Borrower nor any Subsidiary (i) has
failed to comply with any Environmental

 

37

Law or to obtain, maintain or comply with any permit, license or other approval required under
any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received
notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any
Environmental Liability.

     (b) Since the date of this Agreement, there has been no change in the status of the matters
disclosed on Schedule 3.17 that, individually or in the aggregate, has resulted in, or materially
increased the likelihood of, a Material Adverse Effect.

     SECTION 3.18. Insurance. Schedule 3.18 sets forth a true, complete and correct description of
all insurance maintained by the Borrower or by the Borrower for its Subsidiaries as of the date
hereof and the Closing Date. As of each such date, such insurance is in full force and effect and
all premiums have been duly paid. The Borrower and the Subsidiaries have insurance in such amounts
and covering such risks and liabilities as are in accordance with normal industry practice.

     SECTION 3.19. Labor Matters. As of the date hereof and the Closing Date, there are no
strikes, lockouts or slowdowns against the Borrower or any Subsidiary pending or, to the knowledge
of the Borrower, threatened. The hours worked by and payments made to employees of the Borrower
and the Subsidiaries have not been in material violation of the Fair Labor Standards Act or any
other applicable Federal, state, local or foreign law dealing with such matters. All material
payments due from the Borrower or any Subsidiary, or for which any claim may be made against the
Borrower or any Subsidiary, on account of wages and employee health and welfare insurance and other
benefits, have been paid or accrued as a liability on the books of the Borrower or such Subsidiary.
The consummation of the Transactions will not give rise to any right of termination or right of
renegotiation on the part of any union under any collective bargaining agreement to which the
Borrower or any Subsidiary is bound.

     SECTION 3.20. Solvency. Immediately after the consummation of the Transactions to occur on
the Closing Date, (a) the fair value of the assets of each Loan Party, at a fair valuation, will
exceed its debts and liabilities, subordinated, contingent or otherwise; (b) the present fair
saleable value of the property of each Loan Party will be greater than the amount that will be
required to pay the probable liability of its debts and other liabilities, subordinated, contingent
or otherwise, as such debts and other liabilities become absolute and matured; (c) each Loan Party
will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts
and liabilities become absolute and matured; and (d) each Loan Party will not have unreasonably
small capital with which to conduct the business in which it is engaged as such business is now
conducted and is proposed to be conducted following the Closing Date.

     SECTION 3.21. Subchapter S Corporation Status; ESOT Tax-Exempt Status. As of the Closing
Date, the Borrower is taxable as a Subchapter S corporation. The ESOT is not subject to tax
imposed under the Code with respect to any item of income or loss of the Borrower or any Subsidiary
of the Borrower.

 

38

     SECTION 3.22. ESOP. (a) As of the Closing Date and, to the best of Borrower’s knowledge at
all times thereafter, the ESOT has been duly organized and is a validly existing trust. Except as
set forth on Schedule 3.22, each of the ESOP Plan Documents is in full force and effect and no term
or condition thereof has been amended, modified or waived from the terms and conditions contained
in the ESOP Plan Documents delivered to the Administrative Agent without the consent of the
Administrative Agent (which consent shall not be unreasonably withheld), except to the extent such
amendment, modification or waiver could not reasonably be anticipated to have a material adverse
effect upon the Administrative Agent or any of the Lenders or otherwise have a Material Adverse
Effect. As of the Closing Date and, to the best of Borrower’s knowledge at all times thereafter,
the ESOT has performed and complied with all the material terms, provisions, agreements and
conditions set forth therein and required to be performed or complied with by the ESOT, and no
unmatured default, default or breach of any covenant by any such party exists thereunder.

     (b) As of the Closing Date and, to the best of the Borrower’s knowledge at all times
thereafter, the execution, delivery and performance of each of the ESOP Plan Documents to which the
ESOT is a party do not (i) conflict with the ESOP Plan Documents, (ii) conflict with any
requirement of law, or (iii) other than with respect to ordinary course ESOP operations, require a
registration with, consent or approval of, or notices to, or other action to, with or by any
Governmental Authority.

     (c) As of the Closing Date and, to the best of the Borrower’s knowledge, at all times
thereafter, none of the assets of the Borrower constitute, for any purpose of ERISA or Section 4975
of the Code, assets of the ESOP or any other “plan” as defined in Section 3(3) of ERISA or Section
4975 of the Code.

     (d) As of the Closing Date and, to the best of the Borrower’s knowledge, at all times
thereafter, no non-exempt prohibited transaction described in Section 406 of ERISA or Section 4975
of the Code has occurred with respect to the ESOP, and no Loan hereunder constitutes or shall
constitute or give rise to any such non-exempt prohibited transaction.

     (e) The ESOP is qualified under Section 401(a) of the Code, and the ESOP includes two
components, one of which is a stock bonus plan that constitutes an employee stock ownership plan as
defined in Section 4975(e)(7) of the Code, and the other is a profit sharing plan that includes a
cash or deferred arrangement under Section 401(k) of the Code.

     (f) The Borrower has provided the Administrative Agent with a complete and true copy of each
of the ESOP Plan Documents pursuant to which the ESOP and the ESOT are maintained by the Borrower,
or which concern the Borrower’s obligations with respect to the ESOP and ESOT, as of the Closing
Date and has not subsequently amended or in any other way modified or replaced such ESOP Plan
Documents in any material manner without the prior written consent of the Administrative Agent,
except for any amendment, modification or replacement required by the Internal Revenue Service or
by applicable law (and the Borrower shall use its best efforts to deliver a copy of any such

 

39

amendment, modification or replacement to the Administrative Agent prior to the execution
thereof).

     (g) To the Borrower’s knowledge, no Loan hereunder is (for any purpose of Section 406 of ERISA
or Section 4975 of the Code) a direct or indirect loan or other transaction between the
Administrative Agent or any of the Lenders and the ESOT which, if it is assumed that the
Administrative Agent and the Lenders are “parties in interest” and “disqualified persons” (as
defined in Section 3(14) of ERISA and Section 4975 of the Code), is a non-exempt prohibited
transaction described in Section 406 of ERISA or Section 4975 of the Code.

     (h) Neither the Borrower nor any of its Subsidiaries is or shall be subject to the tax imposed
by Section 4978 of the Code with respect to any “disposition” by the ESOT of any shares of Equity
Interests of the Borrower.

     (i) To the Borrower’s knowledge, there is no investigation or review by any Governmental
Authority, or action, suit, proceeding or arbitration, pending or concluded, concerning any matter
with respect to the ESOP or the ESOT relevant as to whether any representation set forth herein
was, or has or will at any time become, inaccurate or breached or, if it were to be made at any
time prior to the satisfaction of all Obligations, would be inaccurate when made (other than in
respect of (i) periodic requests to the IRS to issue a favorable determination letter to the effect
that the ESOP is and continues to be a qualified plan and an employee stock ownership plan, (ii)
Annual Reports (IRS Form 5500 Series) for the ESOP and (iii) routine claims for ESOP benefits), and
neither the ESOP Fiduciary nor, to the best of the Borrower’s knowledge, the ESOT Trustee has made
any assertion with respect to the ESOP or the ESOT contrary to or inconsistent with the accuracy of
any such representation which assertion could reasonably be expected to have a Material Adverse
Effect.

     SECTION 3.23. Subordinated Indebtedness. (a) The Loans and other Obligations constitute
“Senior Debt” for all purposes of the Seller Subordinated Notes and the Securities Purchase
Agreement, and the subordination provisions the Seller Subordinated Notes and the Securities
Purchase Agreement are enforceable by the Lenders against the holders thereof, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting generally the enforcement of creditors’ rights and except to
the extent that availability of the remedy of specific performance or injunctive relief is subject
to the discretion of the court before which any proceeding thereof may be brought.

     (b) On the Closing Date, to the Borrower’s knowledge, IIT is the sole holder of the Seller
Subordinated Notes.

ARTICLE IV

Conditions of Lending

 

40

     SECTION 4.01. Closing Date Conditions. The obligations of the Lenders to make the Initial
Loans hereunder on the Closing Date are subject to the satisfaction of the following conditions:

     (a) The Administrative Agent shall have received a notice of such Borrowing as required by
Section 2.02 (or such notice shall have been deemed given in accordance with Section 2.02).

     (b) The representations and warranties set forth in Article III and in each other Loan
Document shall be true and correct in all material respects on the Closing Date, except to the
extent such representations and warranties expressly relate to an earlier date.

     (c) The Borrower and each other Loan Party shall be in compliance with all the terms and
provisions set forth herein and in each other Loan Document on its part to be observed or
performed, and at the time of and immediately after such Loan, no Default or Event or Default shall
have occurred and be continuing.

     (d) The Administrative Agent shall have received, on behalf of itself and the Lenders, a
favorable written opinion of Baker & McKenzie LLP, counsel for the Borrower, substantially to the
effect set forth in Exhibit F, which opinion shall be (i) dated the Closing Date and (ii) addressed
to the Administrative Agent and the Lenders. The Borrower hereby requests such counsel to deliver
such opinions.

     (e) All legal matters incident to this Agreement, the Borrowing and extensions of credit
hereunder and the other Loan Documents shall be satisfactory to the Lenders and to the
Administrative Agent.

     (f) The Administrative Agent shall have received (i) a copy of the certificate or articles of
incorporation, including all amendments thereto, of each Loan Party, certified as of a recent date
by the Secretary of State of the State of its organization, and a certificate as to the good
standing of each Loan Party as of a recent date, from such Secretary of State; (ii) a certificate
of the Secretary or Assistant Secretary of each Loan Party dated the Closing Date and certifying
(A) that attached thereto is a true and complete copy of the by-laws of such Loan Party as in
effect on the Closing Date and at all times since a date prior to the date of the resolutions
described in clause (B) below, (B) that attached thereto is a true and complete copy of resolutions
duly adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents to which such person is a party and, in the case of the Borrower,
the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended
and are in full force and effect, (C) that the certificate or articles of incorporation of such
Loan Party have not been amended since the date of the last amendment thereto shown on the
certificate of good standing furnished pursuant to clause (i) above, and (D) as to the incumbency
and specimen signature of each officer executing any Loan Document or any other document delivered
in connection herewith on behalf of such Loan Party; and (iii) a certificate of another officer as
to the incumbency and specimen signature of the Secretary or Assistant Secretary executing the
certificate pursuant to clause (ii) above.

 

41

     (g) The Administrative Agent shall have received a certificate, dated the Closing Date and
signed by a Financial Officer of the Borrower, confirming compliance with the conditions precedent
set forth in paragraphs (b) and (c) of this Section 4.01.

     (h) The Lenders shall have received a certificate from the chief financial officer of the
Borrower certifying that the Borrower and the Subsidiaries, on a consolidated basis after giving
effect to the Transactions to occur on the Closing Date, are solvent.

     (i) All Indebtedness in respect of the Seller Subordinated Notes shall have been fully
subordinated to the Obligations and each obligee in respect of Seller Subordinated Notes shall have
entered into subordination agreements in form and substance reasonably acceptable to the
Administrative Agent effecting such subordination.

     (j) All requisite governmental authorities and material third parties shall have approved or
consented to the Transactions and the other transactions contemplated hereby to the extent required
and all applicable appeal periods shall have expired or been earlier terminated; and there shall
not be any pending or threatened litigation, governmental, administrative or judicial action that
could reasonably be expected to restrain, prevent or impose burdensome conditions on the
Transactions or the other transactions contemplated hereby.

     (k) The Lenders shall have received, to the extent requested, all documentation and other
information required by regulatory authorities under applicable “know your customer” and anti-money
laundering rules and regulations, including the USA Patriot Act.

ARTICLE V

Affirmative Covenants

     The Borrower covenants and agrees with each Lender that so long as this Agreement shall remain
in effect and until the Commitments have been terminated and the principal of and interest on each
Loan and all other expenses or amounts payable under any Loan Document shall have been paid in
full, unless the Required Lenders shall otherwise consent in writing, the Borrower will, and will
cause each Subsidiary to:

     SECTION 5.01. Existence; Businesses and Properties. (a) Do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal existence, except as
otherwise expressly permitted under clause (b) below or Section 6.05; provided that, subject to
Sections 5.06 and 5.09, the Borrower and any Subsidiary may convert the form of legal entity and
change the jurisdiction of incorporation or formation to any other jurisdiction within the United
States except that the Borrower shall not effect any conversion which would prevent the Borrower
from retaining the tax benefits associated with being a disregarded entity for U.S. federal income
tax purposes.

     (b) Do or cause to be done all things necessary to obtain, preserve, renew, extend and keep in
full force and effect the rights, licenses, permits, franchises, authorizations,

 

42

patents, copyrights, trademarks and trade names material to the conduct of its business;
maintain and operate such business in substantially the manner in which it is presently conducted
and operated (provided that nothing herein shall prevent the Board of Directors of the Borrower or
any Subsidiary from expanding or reducing a line of business that it deems in its business judgment
to be in the best interest of the Borrower or such Subsidiary); comply in all material respects
with all applicable laws, rules, regulations and decrees and orders of any Governmental Authority,
whether now in effect or hereafter enacted; and at all times maintain and preserve all property
material to the conduct of such business and keep such property in good repair, working order and
condition and from time to time make, or cause to be made, all needful and proper repairs,
renewals, additions, improvements and replacements thereto necessary in order that the business
carried on in connection therewith may be properly conducted at all times; provided, however, that
the foregoing shall not prevent the Borrower from dissolving a Subsidiary or discontinuing the
operation or maintenance of any of its or any Subsidiary’s property if such discontinuance is, in
the judgment of the Borrower, desirable in the conduct of its business and could not reasonably be
expected to result in a Material Adverse Effect.

     SECTION 5.02. Insurance. Keep its insurable properties adequately insured at all times by
financially sound and reputable insurers; maintain such other insurance, to such extent and against
such risks, including fire and other risks insured against by extended coverage, as is customary
with companies in the same or similar businesses operating in the same or similar locations,
including public liability insurance against claims for personal injury or death or property damage
occurring upon, in, about or in connection with the use of any properties owned, occupied or
controlled by it; and maintain such other insurance as may be required by law.

     SECTION 5.03. Obligations and Taxes. Pay its Material Indebtedness and other material
obligations promptly and in accordance with their terms and pay and discharge promptly when due all
taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits
or in respect of its property, before the same shall become delinquent or in default, as well as
all lawful claims for labor, materials and supplies or otherwise that, if unpaid, might give rise
to a Lien upon such properties or any part thereof; provided, however, that such payment and
discharge shall not be required with respect to any such tax, assessment, charge, levy or claim so
long as the validity or amount thereof shall be contested in good faith by appropriate proceedings
and the Borrower shall have set aside on its books adequate reserves with respect thereto in
accordance with GAAP and such contest operates to suspend collection of the contested obligation,
tax, assessment or charge and enforcement of a Lien.

     SECTION 5.04. Financial Statements, Reports, etc. In the case of the Borrower, furnish to the
Administrative Agent for each Lender:

     (a) within 90 days after the end of each fiscal year, its consolidated balance sheet
and related statements of operations, shareholders’ equity and cash flows showing the
financial condition of the Borrower and its consolidated Subsidiaries as of the close of
such fiscal year and the results of its operations and

 

43

the operations of such Subsidiaries during such year, together with comparative
figures for the immediately preceding fiscal year, all audited by Deloitte & Touche LLP or
other independent public accountants of recognized national standing and accompanied by an
opinion of such accountants (which shall not be qualified in any material respect) to the
effect that such consolidated financial statements fairly present in all material respects
the financial condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP;

     (b) within 45 days after the end of each of the first three fiscal quarters of each
fiscal year, its unaudited consolidated balance sheet and related statements of operations
and cash flows showing the financial condition of the Borrower and its consolidated
Subsidiaries as of the close of such fiscal quarter and the results of its operations and
the operations of such Subsidiaries during such fiscal quarter and the then elapsed portion
of the fiscal year, and comparative figures for the same periods in the immediately
preceding fiscal year, all certified by a Financial Officer of the Borrower as fairly
presenting the financial condition and results of operations of the Borrower and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP, subject to
normal year-end audit adjustments;

     (c) concurrently with any delivery of financial statements under paragraph (a) or (b)
of this Section, a certificate of a Financial Officer of the Borrower (i) certifying that
no Default or Event of Default has occurred or, if such a Default or an Event of Default
has occurred, specifying the nature and extent thereof and any corrective action taken or
proposed to be taken with respect thereto and (ii) setting forth computations in reasonable
detail satisfactory to the Administrative Agent demonstrating compliance with the covenants
contained in Sections 6.12 and 6.13 and, in the case of a certificate delivered with the
financial statements required by paragraph (a) of this Section, setting forth the
Borrower’s calculation of Excess Cash Flow;

     (d) within 90 days after the beginning of each fiscal year of the Borrower, a detailed
consolidated budget for such fiscal year (including a projected consolidated balance sheet
and related statements of projected operations and cash flows as of the end of and for such
fiscal year and setting forth the assumptions used for purposes of preparing such budget)
and, promptly when available, any significant revisions of such budget;

     (e) promptly after the same become publicly available, copies of all periodic and
other reports, proxy statements and other materials filed by the Borrower or any Subsidiary
with the Securities and Exchange Commission, or any Governmental Authority succeeding to
any or all of the functions of said Commission, or with any national securities exchange,
or distributed to its shareholders, as the case may be;

     (f) as soon as practicable and in any event (i) within 10 Business Days after the
receipt by the Borrower of the annual valuation report prepared for the

 

44

ESOP for each fiscal year, commencing with the fiscal year ending September 30, 2004,
deliver to the Administrative Agent a copy of such report, and (ii) on the date that is the
earlier of (x) 180 days after the date of any Permitted Acquisition with a purchase price
in excess of $20,000,000 or for which the Acquired Entity shall have 300 or more employees
and (y) the second anniversary of the delivery of the most recent repurchase liability
study of the Borrower prepared for the ESOP, deliver to the Administrative Agent (with
sufficient copies for each of the Lenders) copies of a repurchase liability study of the
Borrower prepared for the ESOP as of a recent date, in each case in form and substance
reasonably acceptable to the Administrative Agent. 

     (g) within 45 days after the end of the first and third fiscal quarters of the
Borrower, a certificate of a Financial Officer of the Borrower listing each new Material
Contract entered into since the Closing Date;

     (h) promptly after the request by any Lender, all documentation and other information
that such Lender reasonably requests in order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and regulations, including
the USA Patriot Act; and

     (i) promptly, from time to time, such other information regarding the operations,
business affairs and financial condition of the Borrower or any Subsidiary, or compliance
with the terms of any Loan Document, as the Administrative Agent or any Lender (acting
through the Administrative Agent) may reasonably request.

     SECTION 5.05. Litigation and Other Notices. Furnish to the Administrative Agent and each
Lender prompt written notice of the following:

     (a) any Default or Event of Default, specifying the nature and extent thereof and the
corrective action, if any, taken or proposed to be taken with respect thereto;

     (b) the filing or commencement of, or any threat or notice of intention of any person
to file or commence, any action, suit or proceeding, whether at law or in equity or by or
before any Governmental Authority, against the Borrower or any Affiliate thereof that could
reasonably be expected to result in a Material Adverse Effect;

     (c) the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the
Borrower and the Subsidiaries in an aggregate amount exceeding $1,000,000, together with a
statement of a Financial Officer of the Borrower setting forth the details of such ERISA
Event and the corrective action, if any, taken or proposed to be taken with respect
thereto;

     (d) the occurrence of a material non-exempt prohibited transaction (defined in Section
406 of ERISA and Section 4975 of the Code) with respect to

 

45

the ESOP or to any other Plan, or knowledge that the IRS or any other Governmental
Authority is investigating whether any such material non-exempt prohibited transaction
might have occurred, and a statement of a Financial Officer of the Borrower describing such
transaction and the corrective action, if any, taken or proposed to be taken with respect
thereto;

     (e) the receipt of written notice (whether preliminary, final or otherwise but
excluding any notice of any proposed amendments) of any unfavorable determination letter
from the IRS regarding the qualification of a Plan under Section 401(a) of the Code or the
status of the ESOP as an employee stock ownership plan (as defined in Section 4975(e)(7) of
the Code), together with copies of each such letter;

     (f) the receipt by the Borrower or any of its Subsidiaries of notice of any audit,
investigation, litigation or inquiry by the IRS or any other Governmental Authority
relating to the ESOP or the ESOT, which could reasonably be expected to subject the
Borrower or any of its Subsidiaries to liability, individually or in the aggregate, in
excess of $1,000,000, together with copies of each such notice and copies of all subsequent
correspondence relating thereto;

     (g) the occurrence of any amendment to any of the ESOP Plan Documents;

     (h) the Borrower’s knowledge that at any time on or after the Closing Date the
Borrower is not taxable as a Subchapter S corporation as such term is defined in Section
1361 of the Code or that the ESOT is subject to tax imposed under the Code with respect to
any item of income or loss of the Borrower or any Subsidiary of the Borrower; and

     (i) any development that has resulted in, or could reasonably be expected to result
in, a Material Adverse Effect.

For purposes of this Section 5.05, the Borrower and the Subsidiaries shall be deemed to know all
facts known by the administrator of any Plan of which the Borrower or any Subsidiary is the plan
sponsor.

     SECTION 5.06. Certain Information. Furnish to the Administrative Agent prompt written notice
of any change in (i) any Loan Party’s corporate name, (ii) the jurisdiction of organization or
formation of any Loan Party, (iii) any Loan Party’s identity or corporate structure or (iv) any
Loan Party’s Federal Taxpayer Identification Number.

     SECTION 5.07. Maintaining Records; Access to Properties and Inspections; Maintenance of
Ratings. (a) Keep proper books of record and account in which full, true and correct entries in
conformity with GAAP and all requirements of law are made of all dealings and transactions in
relation to its business and activities. Each Loan Party will, and will cause each of its
subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender to
visit and inspect the financial records and the properties of such person at reasonable times and
as often as reasonably requested (but no

 

 

46

more than twice per fiscal year of the Borrower, unless an
Event of Default has occurred and is continuing) and to make extracts from and copies of such financial records, and permit
any representatives designated by the Administrative Agent or any Lender to discuss the affairs,
finances and condition of such person with the officers thereof and independent accountants
therefor.

     (b) In the case of the Borrower, use commercially reasonable efforts to cause the Loans to be
continuously rated by S&P and Moody’s.

     SECTION 5.08. Use of Proceeds. Use the proceeds of the Loans only for the purposes set forth
in the preliminary statement to this Agreement.

     SECTION 5.09. Further Assurances; Future Guarantors. Execute any and all further documents,
agreements and instruments, and take all further action that may be required under applicable law,
or that the Required Lenders or the Administrative Agent may reasonably request, in order to
effectuate the transactions contemplated by the Loan Documents. The Borrower shall cause each
Domestic Subsidiary (other than a Domestic Subsidiary that is an Insignificant Subsidiary) that (i)
was not in existence or not a Subsidiary on the Closing Date or (ii) is a Domestic Subsidiary that
has ceased being an Insignificant Subsidiary, to enter into this Agreement as a Subsidiary
Guarantor upon becoming such a Subsidiary or ceasing to be an Insignificant Subsidiary, as the case
may be. Upon execution and delivery by the Administrative Agent such Domestic Subsidiary of a
Supplemental Guarantee, such Domestic Subsidiary shall become a Subsidiary Guarantor hereunder with
the same force and effect as if originally named as a Subsidiary Guarantor herein. The execution
and delivery of any such instrument shall not require the consent of any other Loan Party
hereunder. The rights and obligations of each Subsidiary Guarantor hereunder shall remain in full
force and effect notwithstanding the addition of any new Loan Party as a party to this Agreement.
The Borrower shall cause each Foreign Subsidiary to execute and deliver a Supplemental Guarantee if
such execution and delivery would not cause a Deemed Dividend Problem or a Financial Assistance
Problem with respect to such Foreign Subsidiary.

     SECTION 5.10. Change of Control. (a) Upon a Change of Control, the Borrower shall offer to
prepay each Lender’s Loans at par (if such Change of Control occurs on or prior to the Initial
Maturity Date) or at 101% of par (if such Change of Control occurs thereafter), plus accrued and
unpaid interest, if any, to the date of prepayment (the “Change of Control Payment”), in accordance
with the terms contemplated in this Section 5.10.

     (b) If at the time of a Change of Control, the prepayment of the Loans under this Section 5.10
would be prohibited by the Existing Credit Agreement, then prior to complying with the provisions
of this Section 5.10, but in any event within 30 days following a Change of Control, the Borrower
shall either repay all outstanding Indebtedness under the Existing Credit Agreement or obtain the
requisite consents, if any, under the Existing Credit Agreement necessary to permit the prepayment
of the Loans required by this Section 5.10, provided that the failure to repay such Indebtedness or

 

47

obtain such consent shall not affect the obligation of the Borrower pursuant to subsection 5.10(a).

     (c) Within 30 days following any Change of Control, the Borrower shall mail a notice to the
Administrative Agent and each Lender (the “Change of Control Offer”) stating:

     (i) that a Change of Control has occurred and that the Borrower is offering to prepay
such Lender’s Loans at a prepayment price in cash set forth in Section 5.10(a) on the date
of prepayment, plus accrued and unpaid interest, if any, to the date of prepayment;

     (ii) the prepayment date (which shall be no earlier than 30 days nor later than 60
days from the date such notice is mailed); and

     (iii) the instructions, as determined by the Borrower, consistent with this Section,
that a Lender must follow in order to have its Loan prepaid.

     (d) Lenders electing to have a Loan prepaid will be entitled to withdraw their election if the
Administrative Agent or the Borrower receives not later than one Business Day prior to the
prepayment date, a written notice setting forth the name of the Lender, the principal amount of the
Loan and a statement that such Lender is withdrawing his election to have such Loan prepaid.

     (e) On the prepayment date, the Borrower shall pay the prepayment price plus accrued and
unpaid interest, if any, to the Lenders entitled thereto.

ARTICLE VI

Negative Covenants

     The Borrower covenants and agrees with each Lender that, so long as this Agreement shall
remain in effect and until the Commitments have been terminated and the principal of and interest
on each Loan and all other expenses or amounts payable under any Loan Document have been paid in
full unless the Required Lenders shall otherwise consent in writing, the Borrower will not, nor
will it cause or permit any Subsidiary to:

     SECTION 6.01. Indebtedness. Incur, create, assume or permit to exist any Indebtedness,
except:

     (a) Indebtedness existing on the date hereof and set forth in Schedule 6.01;

     (b) Indebtedness created under the Existing Credit Agreement (including pursuant to
the $150,000,000 incremental term loan facility provided for therein) in an aggregate
amount from time to time outstanding not to exceed $465,000,000 and Indebtedness created
hereunder and under the other Loan Documents;

 

48

     (c) intercompany Indebtedness of the Borrower and the Subsidiaries to the extent
permitted by Section 6.04(a);

     (d) Indebtedness incurred to extend, renew or refinance any Indebtedness described in
Section 6.01(a), (b) (to the extent such Indebtedness was created hereunder or under the
other Loan Documents), (d), (e), (f), (h), (j) or (m) (“Refinancing Indebtedness”);
provided, however, that (i) such Refinancing Indebtedness is in an aggregate principal
amount not greater than the aggregate principal amount of the Indebtedness being extended,
renewed or refinanced, plus the amount of any interest, premiums or penalties required to
be paid thereon plus fees and expenses associated therewith, (ii) such Refinancing
Indebtedness has a later or equal final maturity and a longer or equal weighted average
life to maturity than the Indebtedness being extended, renewed or refinanced, (iii) if the
Indebtedness being extended, renewed or refinanced is subordinated to the Obligations, the
Refinancing Indebtedness is subordinated to the Obligations on terms no less favorable to
the Lenders than the Indebtedness being extended, renewed or refinanced, (iv) neither the
Borrower nor any Subsidiary Guarantor may become obligated in respect of such Refinancing
Indebtedness unless it was obligated in respect of the Indebtedness being extended, renewed
or refinanced and (v) the non-economic covenants, events of default, remedies and other
provisions of the Refinancing Indebtedness, when taken as a whole, shall be materially no
less favorable to the Lenders than those contained in the Indebtedness being extended,
renewed or refinanced;

     (e) Indebtedness of the Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets, and extensions,
renewals and replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof; provided that (i) such Indebtedness is incurred prior to or
within 90 days after such acquisition or the completion of such construction or improvement
and (ii) the aggregate principal amount of Indebtedness permitted by this paragraph, when
combined with the aggregate principal amount of all Capital Lease Obligations and Synthetic
Lease Obligations incurred pursuant to paragraph (f) of this Section shall not exceed
$40,000,000 at any time outstanding;

     (f) Capital Lease Obligations and Synthetic Lease Obligations in an aggregate
principal amount, when combined with the aggregate principal amount of all Indebtedness
incurred pursuant to paragraph (e) of this Section, not in excess of $40,000,000 at any
time outstanding;

     (g) Indebtedness of the Borrower or any Subsidiary incurred under any Hedging
Agreement of the Borrower or any Subsidiary to the extent relating to Indebtedness of the
Borrower or such Subsidiary, as the case may be (which Indebtedness (i) bears interest at
fluctuating interest rates and (ii) is otherwise permitted to be incurred pursuant to this
Agreement);

 

49

     (h) Indebtedness of any person that becomes a Subsidiary after the date hereof;
provided that (i) such Indebtedness exists at the time such person becomes a Subsidiary and
is not created in contemplation of or in connection with such person becoming a Subsidiary
and (ii) the aggregate principal amount of Indebtedness permitted by this paragraph shall not exceed $15,000,000 at any time
outstanding;

     (i) endorsements for collection, deposit or negotiation and warranties of products or
services, in each case incurred in the ordinary course of business;

     (j) unsecured subordinated Indebtedness of the Borrower (which may be Guaranteed by
any Loan Party on a subordinated basis) the proceeds of which are used to finance the cash
consideration payable in a Permitted Acquisition (including the refinancing of Indebtedness
of the Acquired Entity and the payment of related fees and expenses) in an aggregate
principal amount, when combined with the aggregate principal amount of all Indebtedness
incurred pursuant to Section 6.01(f), but not including amounts outstanding pursuant to the
Seller Subordinated Notes, not in excess of $200,000,000 at any time outstanding; provided
that such Indebtedness (i) matures after the first anniversary of the Final Maturity
Date (other than Indebtedness in the form of deferred purchase price and SAR
termination payments incurred pursuant to the JJMA Stock Purchase Agreement in effect on
the April 1, 2005), (ii) requires no scheduled payment of principal prior to its maturity,
(iii) does not require the Borrower to maintain any specified financial condition (other
than as a condition to the taking of certain actions) and (iv) contains subordination
provisions, non-economic covenants, events of default, remedies and other provisions, and
is in form and substance, reasonably satisfactory to the Administrative Agent;

     (k) Indebtedness under performance bonds or with respect to workers’ compensation
claims, in each case incurred in the ordinary course of business;

     (l) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument inadvertently drawn against insufficient funds in the
ordinary course of business, so long as such Indebtedness is extinguished within three
Business Days of the Borrower’s knowledge of such incurrence; and

     (m) Indebtedness arising as a result of (i) the redemption or repurchase of any Equity
Interests of the Borrower as a result of distributions by the ESOT to participants in the
ESOP pursuant to the ESOP Plan Documents subsequent to their termination of employment with
the Borrower or any Controlled Group member or (ii) the requirements of Section 401(a)(28)
of the Code or any substantially similar requirement of law;

     (n) other unsecured Indebtedness of the Borrower or the Subsidiaries in an aggregate
principal amount not exceeding $50,000,000 at any time outstanding; .

 

50

     (o) the Seller Subordinated Notes;

     (p) Indebtedness of Foreign Subsidiaries in an aggregate principal amount not to
exceed $5,000,000 at any time outstanding; and

     (q) Borrower’s deferred compensation agreements.

     SECTION 6.02. Liens. Create, incur, assume or permit to exist any Lien on any property or
assets (including Equity Interests or other securities of any person, including any Subsidiary) now
owned or hereafter acquired by it or on any income or revenues or rights in respect of any thereof,
except:

     (a) Liens on property or assets of the Borrower and its Subsidiaries existing on the
date hereof and set forth in Schedule 6.02; provided that such Liens shall secure only
those obligations which they secure on the date hereof;

     (b) any Lien created under the Existing Credit Agreement and the Loan Documents (as
such term is defined in the Existing Credit Agreement);

     (c) any Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any Subsidiary or existing on any property or asset of any person that becomes
a Subsidiary after the date hereof prior to the time such person becomes a Subsidiary, as
the case may be; provided that (i) such Lien is not created in contemplation of or in
connection with such acquisition or such person becoming a Subsidiary, as the case may be,
(ii) such Lien does not apply to any other property or assets of the Borrower or any
Subsidiary and (iii) such Lien secures only those obligations which it secures on the date
of such acquisition or the date such person becomes a Subsidiary, as the case may be;

     (d) Liens for taxes not yet due or which are being contested in compliance with
Section 5.03;

     (e) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business and securing obligations that are not due
and payable or which are being contested in compliance with Section 5.03;

     (f) pledges and deposits made in the ordinary course of business in compliance with
workmen’s compensation, unemployment insurance and other social security laws or
regulations;

     (g) deposits to secure the performance of bids, trade contracts (other than for
Indebtedness), leases (other than Capital Lease Obligations), statutory obligations, surety
and appeal bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

     (h) zoning restrictions, easements, rights-of-way, restrictions on use of real
property and other similar encumbrances incurred in the ordinary course of

 

51

business which,
in the aggregate, do not materially detract from the value of the property subject thereto
or interfere with the ordinary conduct of the business of the Borrower or any Subsidiary;

     (i) purchase money security interests in real property, improvements thereto or
equipment and other personal property hereafter acquired (or, in the case of improvements,
constructed) by the Borrower or any Subsidiary; provided that (i) such security interests
secure Indebtedness permitted by Section 6.01, (ii) such security interests are incurred,
and the Indebtedness secured thereby is created, within 90 days after such acquisition (or
construction), (iii) the Indebtedness secured thereby does not exceed 90% of the lesser of
the cost or the fair market value of such real property, improvements or equipment at the
time of such acquisition (or construction) and (iv) such security interests do not apply to
any other property or assets of the Borrower or any Subsidiary;

     (j) Liens arising out of judgments or awards in respect of which the Borrower or any
Subsidiary shall in good faith be prosecuting an appeal or proceedings for review in
respect of which there shall be secured a subsisting stay of execution pending such appeal
or proceedings; provided that the aggregate amount of all such judgments or awards (and any
cash and the fair market value of any property subject to such Liens) does not exceed
$10,000,000 at any time outstanding;

     (k) any interest or title of a licensor, lessor or sublessor under any license or
lease agreement pursuant to which rights are granted to the Borrower or any Subsidiary;

     (l) licenses, leases or subleases granted by the Borrower or any Subsidiary to third
persons in the ordinary course of business not interfering in any material respect with the
business of the Borrower or any Subsidiary;

     (m) Liens in favor of customs or revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;

     (n) Liens in favor of any Governmental Authority in respect of (i) any liability under
Environmental Law or (ii) damages arising from, or costs incurred by such Governmental
Authority in response to, a Release or a threatened Release of a Hazardous Material into
the environment; provided that the aggregate amount of such liabilities secured by such
Liens does not exceed $2,000,000 at any one time; and

     (o) Liens that do not, individually or in the aggregate, secure obligations (or
encumber property with a fair market value) in excess of $5,000,000 at any one time.

     SECTION 6.03. Sale and Lease-Back Transactions. Enter into any arrangement, directly or
indirectly, with any person whereby it shall sell or transfer any

 

52

property, real or personal, used
or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease
such property or other property which it intends to use for substantially the same purpose or
purposes as the property being sold or transferred unless (a) the sale of such property is permitted by Section 6.05 and (b) any
Capital Lease Obligations, Synthetic Lease Obligations or Liens arising in connection therewith are
permitted by Sections 6.01 and 6.02, as the case may be.

     SECTION 6.04. Investments, Loans and Advances. Purchase, hold or acquire any Equity
Interests, evidences of indebtedness or other securities of, make or permit to exist any loans or
advances to, or make or permit to exist any investment or any other interest in, any other person,
except:

     (a) (i) investments by the Borrower and the Subsidiaries existing on the date hereof
in the Equity Interests of the Subsidiaries and (ii) additional investments by the Borrower
and the Subsidiaries in the Equity Interests of the Subsidiaries; provided that the
aggregate amount of investments by Loan Parties in, and loans and advances by Loan Parties
to, Subsidiaries that are not Loan Parties (determined without regard to any write-downs or
write-offs of such investments, loans and advances) shall not exceed $5,000,000 at any time
outstanding;

     (b) Permitted Investments;

     (c) loans or advances made by the Borrower to any Subsidiary and made by any
Subsidiary to the Borrower or any other Subsidiary; provided that the amount of such loans
and advances made by Loan Parties to Subsidiaries that are not Loan Parties shall be
subject to the limitation set forth in paragraph (a) of this Section;

     (d) 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;

     (e) to the extent permitted by applicable law, the Borrower and the Subsidiaries may
make loans and advances in the ordinary course of business to their respective directors,
officers and employees so long as the aggregate principal amount thereof at any time
outstanding (determined without regard to any write-downs or write-offs of such loans and
advances) shall not exceed $2,000,000;

     (f) the Borrower may enter into Hedging Agreements that are not speculative in nature;

     (g) the Borrower or any Subsidiary may acquire all or substantially all the assets of
a person or line of business or division of such person, or not less than 100% of the
Equity Interests of a person (referred to herein as the “Acquired Entity”); provided that
(i) such acquisition was not preceded by an unsolicited tender offer for such Equity
Interests by, or proxy contest initiated by, the

 

53

Borrower or any Subsidiary; (ii) the
Acquired Entity shall be a going concern, shall be in a similar line of business as that of
the Borrower and the Subsidiaries as conducted during the current and most recent calendar
year; (iii) the Acquired Entity is located, and substantially all of its operations are conducted, in the
United States of America; (iv) at the time of such transaction (A) both before and after
giving effect thereto, no Default or Event of Default shall have occurred and be continuing
and, (B) the Borrower would be in Pro Forma Compliance (assuming, for purposes of making
such determination with respect to the covenant set forth in Section 6.13, that the maximum
Leverage Ratio then permitted by such covenant is 0.25 to 1.00 lower than the Leverage
Ratio actually set forth therein and in effect at the time such determination is made), and
(v) the Borrower shall have delivered to the Administrative Agent a certificate of a
Financial Officer of the Borrower confirming compliance with clauses (i) through (iv)
above, together with all relevant financial information for the Acquired Entity and
reasonably detailed calculations demonstrating satisfaction of the requirements set forth
in clause (v) above (any acquisition of an Acquired Entity meeting all the criteria of this
paragraph being referred to herein as a “Permitted Acquisition”);

     (h) the Borrower and its Subsidiaries may acquire and hold non-cash consideration
issued by the purchaser of assets in connection with a sale of such assets to the extent
permitted by Section 6.05;

     (i) investments, loans and advances existing on the date hereof and set forth in
Schedule 6.04; and

     (j) in addition to investments permitted by paragraphs (a) through (i) of this
Section, additional investments, loans and advances by the Borrower and the Subsidiaries so
long as the aggregate amount invested, loaned or advanced pursuant to this clause
(determined without regard to any write-downs or write-offs of such investments, loans and
advances) does not exceed $30,000,000 in the aggregate, and none of (i) any investment
specifically consented to by the Required Lenders, (ii) any investment in a person that
subsequently becomes a wholly-owned Subsidiary in a transaction constituting a Permitted
Acquisition or (iii) any investment that is subsequently sold (to the extent of the net
cash proceeds of such sale) shall count toward such $30,000,000 amount.

     SECTION 6.05. Mergers, Consolidations, Sales of Assets and Acquisitions. (a) Merge into or
consolidate with any other person, or permit any other person to merge into or consolidate with it,
or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of
transactions) all or substantially all the assets (whether now owned or hereafter acquired) of the
Borrower or less than all the Equity Interests of any Subsidiary, or purchase, lease or otherwise
acquire (in one transaction or a series of transactions) all or any substantial part of the assets
of any other person, except that (i) the Borrower and any Subsidiary may purchase and sell
inventory in the ordinary course of business and (ii) if at the time thereof and immediately after
giving effect thereto no Default or Event of Default shall have occurred and be continuing (x) any

 

54

wholly owned Subsidiary may merge into the Borrower in a transaction in which the Borrower is the
surviving corporation, (y) any wholly owned Subsidiary may merge into or consolidate with any other
wholly owned Subsidiary in a transaction in which the surviving entity is a wholly owned Subsidiary and no person other than the Borrower or a wholly owned Subsidiary
receives any consideration (provided that if any party to any such transaction is a Loan Party, the
surviving entity of such transaction shall be a Loan Party) and (z) the Borrower and the
Subsidiaries may make Permitted Acquisitions and investments and acquisitions permitted under
Section 6.04.

     (b) Engage in any Asset Sale otherwise permitted under paragraph (a) of this Section unless
(i) such Asset Sale is for consideration at least 75% of which is cash and, (ii) such consideration
is at least equal to the fair market value of the assets being sold, transferred, leased or
disposed of.

     SECTION 6.06. Restricted Payments; Restrictive Agreements. (a) Declare or make, or agree to
declare or make, directly or indirectly, any Restricted Payment (including pursuant to any
Synthetic Purchase Agreement), or incur any obligation (contingent or otherwise) to do so;
provided, however, that (i) any Subsidiary may declare and pay dividends or make other
distributions ratably to its equity holders, (ii) so long as no Default or Event of Default shall
have occurred and be continuing or would result therefrom, the Borrower may repurchase its Equity
Interests owned by directors, officers and employees of the Borrower or the Subsidiaries or make
payments to directors, officers and employees of the Borrower or the Subsidiaries in connection
with Warrants, stock options, stock appreciation rights, “phantom” stock plans or similar equity
incentives or equity based incentives pursuant to management or other incentive plans or in
connection with the death or disability of such directors, officers and employees in an aggregate
amount not to exceed $25,000,000 and (iii) so long as no Default or Event of Default shall have
occurred and be continuing or would result therefrom (except with respect to subclauses (A), (B)
and (D) below), Restricted Payments may be made (A) in connection with the redemption or repurchase
for value of any Equity Interests of the Borrower as a result of distributions by the ESOT of such
Equity Interests to participants in the ESOP pursuant to the ESOP Plan Documents subsequent to
their termination of employment with the Borrower or any Controlled Group member, (B) as required
by Section 401(a)(28) of the Code or any substantially similar requirement of law, (C) in the form
of administrative fees or expenses of the ESOP or the ESOT, including the fees of the ESOT Trustee,
(D) as contributions to the ESOT as required under the ESOP Plan Documents, (E) to redeem or
otherwise acquire for value the Warrants issued in connection with the Seller Subordinated Notes so
long as, after giving effect thereto, the Senior Secured Leverage Ratio would be less than 2.50 to
1.00, or (F) so long as, after giving effect thereto, the Senior Secured Leverage Ratio would be
less than 2.50 to 1.00, in an amount not to exceed the Available Restricted Payment Amount.

     (b) Enter into, incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (i) the ability of the Borrower or any Subsidiary to
create, incur or permit to exist any Lien upon any of its property or assets to secure the
Obligations, or (ii) the ability of any Subsidiary to pay dividends or other

 

55

distributions with
respect to any of its Equity Interests or to make or repay loans or advances to any Loan Party or
to Guarantee Indebtedness of any Loan Party; provided that (A) the foregoing shall not apply to
restrictions and conditions imposed by law or by any Loan Document, the Securities Purchase Agreement, the Warrants or the Rights Agreement,
(B) the foregoing shall not apply to customary restrictions and conditions contained in agreements
relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions
apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (C) clause
(i) of the foregoing shall not apply to restrictions or conditions imposed by any agreement
relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness, and (D) clause (i) of the
foregoing shall not apply to customary provisions in leases and other contracts restricting the
assignment thereof.

     SECTION 6.07. Transactions with Affiliates. Except for transactions by or among Loan Parties,
sell or transfer any property or assets to, or purchase or acquire any property or assets from, or
otherwise engage in any other transactions with, any of its Affiliates, except that (a) the
Borrower or any Subsidiary may engage in any of the foregoing transactions in the ordinary course
of business at prices and on terms and conditions not less favorable to the Borrower or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b)
Restricted Payments may be made to the extent provided in Section 6.06, (c) loans, investments and
advances may be made to the extent permitted by Sections 6.01(c) and 6.04(a), (c) and (e), (d)
officers may be compensated as and in the manner they historically have been compensated and
officers hired after the Closing Date may be compensated in a manner commensurate with the office
held, (e) so long as no Default or Event of Default shall have occurred and be continuing or would
result therefrom, reasonable and customary fees may be paid to non-officer directors of the
Borrower in an aggregate amount not to exceed $1,000,000 in any fiscal year, it being understood
that payments to non-officer directors in connection with stock options, stock appreciation rights,
“phantom” stock plans or similar equity incentives or equity based incentives shall not count
toward such $1,000,000 limitation, and (f) the Borrower may make deferred purchase price and SAR
termination payments to Affiliates pursuant to the terms of the JJMA Stock Purchase Agreement in
effect on April 1, 2005. For the avoidance of doubt, the Borrower may make payments in respect of
Earn-Out Obligations to the extent permitted by Section 6.15.

     SECTION 6.08. Business of the Borrower and Subsidiaries. Engage at any time in any business
or business activity other than the business currently conducted by the Borrower and the
Subsidiaries and business activities reasonably related thereto.

     SECTION 6.09. Other Indebtedness and Agreements. (a) Permit any waiver, supplement,
modification, amendment, termination or release of any indenture, instrument or agreement pursuant
to which any Material Indebtedness of the Borrower or any Subsidiary is outstanding if the effect
of such waiver, supplement, modification, amendment, termination or release would materially
increase the obligations of the obligor or confer additional material rights on the holder of such
Indebtedness in a manner materially adverse to the Borrower, any of the Subsidiaries or the
Lenders.

 

56

     (b) Permit any waiver, supplement, modification or amendment of any ESOP Plan Document in a
manner materially adverse to the Lenders.

     (c) (i) Make any distribution, whether in cash, property, securities or a combination
thereof, other than regular scheduled payments of principal and interest as and when due (to the
extent not prohibited by applicable subordination provisions), in respect of, or pay, or offer or
commit to pay, or directly or indirectly (including pursuant to any Synthetic Purchase Agreement)
redeem, repurchase, retire or otherwise acquire for consideration, or set apart any sum for the
aforesaid purposes, any subordinated Indebtedness or (ii) pay in cash any amount in respect of any
Indebtedness or preferred Equity Interests that may at the obligor’s option be paid in kind or in
other securities. Notwithstanding the foregoing, so long as at the time thereof and after giving
effect thereto, (x) no Default or Event of Default shall have occurred and be continuing and (y)
the Senior Secured Leverage Ratio would be less than 2.50 to 1.00, the Borrower may prepay, redeem,
retire or otherwise acquire for consideration the Seller Subordinated Notes in whole or in part.

     SECTION 6.10. Assets as Plan Assets. Permit any of the assets of the Borrower or any
Subsidiary to constitute, for any purpose of ERISA or Section 4975 of the Code, assets of the ESOP
or any other “plan” as defined in Section 3(3) of ERISA or Section 4975 of the Code.

     SECTION 6.11. Prohibited Transaction. Permit any material non-exempt prohibited transaction
described in Section 406 of ERISA or Section 4975 of the Code to occur with respect to the ESOP.

     SECTION 6.12. Interest Coverage Ratio. Permit the Interest Coverage Ratio for any period of
four consecutive fiscal quarters, in each case taken as one accounting period, ending during any
period set forth below to be less than the ratio set forth opposite such date or period below:

	 	 	 	 	 
	Period	 	Ratio	 
	Closing Date through September 30, 2007
	 	 	1.40 to 1.00	 
	October 1, 2007 through September 30, 2008
	 	 	1.50 to 1.00	 
	October 1, 2008 through September 30, 2009
	 	 	1.75 to 1.00	 
	October 1, 2009 through September 30, 2010
	 	 	1.90 to 1.00	 
	Thereafter
	 	 	2.00 to 1.00	 

     SECTION 6.13. Maximum Leverage Ratio. Permit the Leverage Ratio at the end of any fiscal
quarter during a period set forth below to be greater than the ratio set forth opposite such period
below:

 

57

	 	 	 	 	 
	Period	 	Ratio	 
	Closing Date through September 30, 2007
	 	 	7.00 to 1.00	 
	October 1, 2007 through June 30, 2008
	 	 	6.50 to 1.00	 
	July 1, 2008 through June 30, 2009
	 	 	6.25 to 1.00	 
	July 1, 2009 through September 30, 2010
	 	 	5.75 to 1.00	 
	Thereafter
	 	 	4.75 to 1.00	 

     SECTION 6.14. Fiscal Year. With respect to the Borrower, change its fiscal year-end to a date
other than September 30.

     SECTION 6.15. Earn-Out Obligations. Make or agree to make, directly or indirectly, any payment
in respect of an Earn-Out Obligation; provided, however, that the Borrower may make a payment in
respect of any Earn-Out Obligation so long as (a) at the time thereof and after giving effect
thereto, (i) no Default or Event of Default shall have occurred and be continuing or result
therefrom, and (ii) the Borrower would be in Pro Forma Compliance (assuming, for purposes of making
such determination with respect to the covenant set forth in Section 6.13, that the maximum
Leverage Ratio then permitted by such covenant is 0.25 to 1.00 lower than the Leverage Ratio
actually set forth therein and in effect at the time such determination is made) and (b) the
aggregate amount of payments made in respect of Earn-Out Obligations does not exceed (i)
$20,000,000 during the fiscal year ending September 30, 2006, (ii) an aggregate amount of
$42,000,000 for the two-fiscal-year period ending September 30, 2008 and (iii) $20,000,000 in any
fiscal year thereafter

ARTICLE VII

Events of Default

     In case of the happening of any of the following events (“Events of Default”):

     (a) any representation or warranty made or deemed made in or in connection with any
Loan Document or the borrowings hereunder, or any representation, warranty, statement or
information contained in any report, certificate, financial statement or other instrument
furnished in connection with or pursuant to any Loan Document, shall prove to have been
false or misleading in any material respect when so made, deemed made or furnished;

     (b) default shall be made in the payment of any principal of any Loan when and as the
same shall become due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or by acceleration thereof or otherwise;

 

58

     (c) default shall be made in the payment of any interest on any Loan or any
Administrative Agent Fee or any other amount (other than an amount referred to in paragraph
(b) of this Article) due under any Loan Document, when and as the same shall become due and
payable, and such default shall continue
unremedied for a period of three Business Days with regard to interest and ten
Business Days with regard to Administrative Agent Fees and other amounts;

     (d) default shall be made in the due observance or performance by the Borrower or any
Subsidiary of any covenant, condition or agreement contained in Section 5.01(a), 5.05, or
5.08 or in Article VI;

     (e) default shall be made in the due observance or performance by the Borrower or any
Subsidiary of any covenant, condition or agreement contained in any Loan Document (other
than those specified in paragraph (b), (c) or (d) of this Article) and such default shall
continue unremedied for a period of 30 days after notice thereof from the Administrative
Agent or any Lender to the Borrower;

     (f) (i) the Borrower or any Subsidiary shall fail to pay any principal or interest,
regardless of amount, due in respect of any Material Indebtedness, when and as the same
shall become due and payable, or (ii) any other event or condition occurs that results in
any Material Indebtedness becoming due prior to its scheduled maturity or that requires the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity;
provided that this clause (ii) shall not apply to secured Indebtedness that becomes due as
a result of the voluntary sale or transfer of the property or assets securing such
Indebtedness;

     (g) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed in a court of competent jurisdiction seeking (i) relief in respect of the Borrower or
any Subsidiary (other than an Insignificant Subsidiary), or of a substantial part of the
property or assets of the Borrower or any Subsidiary (other than an Insignificant
Subsidiary), under Title 11 of the United States Code, as now constituted or hereafter
amended, or any other Federal, state or foreign bankruptcy, insolvency, receivership or
similar law, (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower or any Subsidiary (other than an
Insignificant Subsidiary) or for a substantial part of the property or assets of the
Borrower or a Subsidiary (other than an Insignificant Subsidiary) or (iii) the winding-up
or liquidation of the Borrower or any Subsidiary (other than an Insignificant Subsidiary);
and such proceeding or petition shall continue undismissed for 60 days or an order or
decree approving or ordering any of the foregoing shall be entered;

     (h) the Borrower or any Subsidiary (other than an Insignificant Subsidiary) shall (i)
voluntarily commence any proceeding or file any petition seeking relief under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other Federal,
state or foreign bankruptcy, insolvency, receivership or similar law, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any proceeding or
the filing of any petition

 

59

described in paragraph (g) of this Article, (iii) apply for or
consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Borrower or any Subsidiary (other than an Insignificant
Subsidiary) or for a substantial part of the property or assets of the Borrower or
any Subsidiary (other than an Insignificant Subsidiary), (iv) file an answer admitting
the material allegations of a petition filed against it in any such proceeding, (v) make a
general assignment for the benefit of creditors, (vi) become unable, admit in writing its
inability or fail generally to pay its debts as they become due or (vii) take any action
for the purpose of effecting any of the foregoing;

     (i) one or more judgments shall be rendered against the Borrower, any Subsidiary
(other than an Insignificant Subsidiary) or any combination thereof and the same shall
remain undischarged for a period of 30 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor to levy
upon assets or properties of the Borrower or any Subsidiary (other than an Insignificant
Subsidiary) to enforce any such judgment and such judgment either (i) is for the payment of
money in an aggregate amount in excess of $10,000,000 or (ii) is for injunctive relief and
could reasonably be expected to result in a Material Adverse Effect;

     (j) an ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other such ERISA Events, could reasonably be expected to
result in liability of the Borrower and its ERISA Affiliates in an aggregate amount
exceeding $10,000,000;

     (k) any Guarantee under this Agreement for any reason shall cease to be in full force
and effect (other than in accordance with its terms), or any Subsidiary Guarantor shall
deny in writing that it has any further liability under this Agreement (other than as a
result of the discharge of such Subsidiary Guarantor in accordance with the terms of the
Loan Documents);

     (l) the Indebtedness under the Seller Subordinated Notes or any Guarantees thereof
shall cease, for any reason other than the repayment thereof as permitted by this
Agreement, to be validly subordinated to the Obligations, as provided in the relevant
agreements, or any Loan Party or any Affiliate of any Loan Party shall so assert;

     (m) (i) a notice of debarment, notice of suspension or notice of termination for
default shall have been issued under any Material Contract; (ii) the Borrower is barred or
suspended from contracting with any part of the Government; (iii) a Government
investigation shall have resulted in a criminal or civil liability of the Borrower or any
Subsidiary in excess of $10,000,000; (iv) the actual termination of any Material Contract
due to alleged fraud, willful misconduct, neglect, default or any other wrongdoing; or (v)
a cure notice issued under any Material Contract shall remain uncured (subject to
expiration of extensions that may have been received) beyond (A) the expiration of the time

 

60

period available to the Borrower pursuant to such Material Contract and/or such cure notice
to cure the noticed default or (B) the date on which the other contracting party exercises
its rights and remedies under the Material Contract as a consequence of such default;

     (n) The ESOT shall be subject to tax imposed under the Code with respect to any item
of income or loss of the Borrower or any Subsidiary of the Borrower at any time on or after
the Closing Date that could reasonably be expected to result in tax liability to the ESOT,
the Borrower or any of its Subsidiaries in an amount in excess of $10,000,000;

     (o) Any Loan hereunder shall, for any purpose of Section 406 of ERISA or Section 4975
of the Code, be found to be a direct or indirect loan or other transaction between the
Administrative Agent or any of the Lenders and the ESOT which, if it is assumed that the
Administrative Agent and the Lenders are “parties in interest” and “disqualified persons”
(as defined in Section 3(14) of ERISA and Section 4975 of the Code), is a non-exempt
prohibited transaction described in Section 406 of ERISA or Section 4975 of the Code;

     (p) There shall be a finding, holding, ruling or other determination not subject to
cure made by any court or Governmental Authority, or an assertion by the ESOP Fiduciary or
the ESOT Trustee, concerning any matter with respect to the ESOP or the ESOT contrary to or
inconsistent with any representation, warranty or covenant set forth herein, which holding,
ruling, determination or assertion could reasonably be expected to have a Material Adverse
Effect;

     (q) the IRS shall notify the Borrower in writing that it has made a final
determination not subject to cure that the ESOP is not a qualified plan and an employee
stock ownership plan within the meanings of Section 401(a) and 4975(e)(7), respectively, of
the Code; or

     (r) the Borrower shall fail to be qualified as a Subchapter S corporation, as such
term is defined in Section 1361 of the Code.

then, and in every such event (other than an event with respect to the Borrower described in
paragraph (g) or (h) of this Article), and at any time thereafter during the continuance of such
event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to
the Borrower, take either or both of the following actions, at the same or different times: (i)
terminate forthwith the Commitments and (ii) declare the Loans then outstanding to be forthwith due
and payable in whole or in part, whereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and any unpaid accrued Administrative Agent Fees
and all other liabilities of the Borrower accrued hereunder and under any other Loan Document,
shall become forthwith due and payable, without presentment, demand, protest or any other notice of
any kind, all of which are hereby expressly waived by the Borrower, anything contained herein or in
any other Loan Document to the contrary notwithstanding; and in any event with respect to the
Borrower described in paragraph (g) or (h) of this Article, the

 

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Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued interest thereon
and any unpaid accrued Administrative Agent Fees and all other liabilities of the Borrower accrued
hereunder and under any other Loan Document, shall automatically become due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the Borrower, anything contained herein or in any other Loan Document to the
contrary notwithstanding.

ARTICLE VIII

The Administrative Agent

     Each of the Lenders hereby irrevocably appoints the Administrative Agent (for purposes of this
Article, the Administrative Agent is referred to as the “Agent”) its agent and authorizes the Agent
to take such actions on its behalf and to exercise such powers as are delegated to such Agent by
the terms of the Loan Documents, together with such actions and powers as are reasonably incidental
thereto.

     The bank 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 an
Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if
it were not an Agent hereunder.

     The Agent shall not have any duties or obligations except those expressly set forth in the
Loan Documents. Without limiting the generality of the foregoing, (a) the Agent shall not be
subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and
is continuing, (b) the Agent shall not have any duty to take any discretionary action or exercise
any discretionary powers, except discretionary rights and powers expressly contemplated hereby that
the Agent is instructed in writing to exercise by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
10.08), and (c) except as expressly set forth in the Loan Documents, the Agent shall not have any
duty to disclose, nor shall it be liable for the failure to disclose, any information relating to
the Borrower or any Subsidiary that is communicated to or obtained by the bank serving as
Administrative Agent or any of its Affiliates in any capacity. The Agent shall not be liable for
any action taken or not taken by it with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 10.08) or in the absence of its own gross negligence or willful misconduct.
The Agent shall not be deemed to have knowledge of any Default unless and until written notice
thereof is given to the Agent by the Borrower or a Lender, and the 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 any Loan Document, (ii) the contents of any certificate, report or
other document delivered thereunder or in connection therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth in

 

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any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other
agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV
or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be
delivered to the Agent.

     The 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
believed by it to be genuine and to have been signed or sent by the proper person. The Agent may
also 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. The 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.

     The Agent may perform any and all its duties and exercise its rights and powers by or through
any one or more sub-agents appointed by it. The Agent and any such sub-agent may perform any and
all its duties and exercise its rights and powers by or through their respective Related Parties.
The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the
Related Parties of the 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 Agent.

     Subject to the appointment and acceptance of a successor Agent as provided below, the Agent
may resign at any time by notifying the Lenders and the Borrower. Upon any such resignation, the
Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor.
If no successor shall have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Agent gives notice of its resignation, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent which shall be a bank with
an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Agent hereunder by a successor, such successor shall succeed to and become vested
with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent
shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to
a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the Agent’s resignation hereunder, the provisions
of this Article shall continue in effect for the benefit of such retiring 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 acting as Agent.

     Each Lender acknowledges that it has, independently and without reliance upon the Agent or any
other Lender 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 also acknowledges that it
will, independently and without reliance upon the Agent or any other Lender 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 or any other

 

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Loan Document, any related agreement or any document furnished hereunder or thereunder.

     Without limiting the foregoing, none of the Lenders or other persons so identified shall have
or be deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders or other persons
so identified in deciding to enter into this Agreement or in taking or not taking action hereunder.

ARTICLE IX

Guarantee

     SECTION 9.01. Guarantee. Each Subsidiary Guarantor unconditionally guarantees, jointly with
the other Subsidiary Guarantors and severally, as a primary obligor and not merely as a surety, the
due and punctual payment and performance of the Obligations. Each Subsidiary Guarantor further
agrees that the Obligations may be extended or renewed, in whole or in part, without notice to or
further assent from it, and that it will remain bound upon its guarantee notwithstanding any
extension or renewal of any Obligation. Each Subsidiary Guarantor waives presentment to, demand of
payment from and protest to the Borrower or any other Loan Party of any Obligation, and also waives
notice of acceptance of its guarantee and notice of protest for nonpayment.

     SECTION 9.02. Guarantee of Payment. Each Subsidiary Guarantor further agrees that its
guarantee hereunder constitutes a guarantee of payment when due and not of collection, and waives
any right to require that any resort be had by any Lender to any balance or credit on the books of
such Lender in favor of the Borrower or any other person.

     SECTION 9.03. No Limitations, Etc. (a) Except for the release of a Subsidiary Guarantor’s
obligations hereunder as expressly provided in Section 9.10, the obligations of each Subsidiary
Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination
for any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever
by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise.
Without limiting the generality of the foregoing, the obligations of each Subsidiary Guarantor
hereunder shall not be discharged or impaired or otherwise affected by (i) the failure of any
Lender to assert any claim or demand or to enforce any right or remedy under the provisions of any
Loan Document or otherwise, (ii) any rescission, waiver, amendment or modification of, or any
release from any of the terms or provisions of, any Loan Document, including with respect to any
other Subsidiary Guarantor under this Agreement, (iii) any default, failure or delay, willful or
otherwise, in the performance of the Obligations, or (iv) any other act or omission that may or
might in any manner or to any extent operate as a discharge of any Subsidiary Guarantor as a matter
of law or equity (other than the indefeasible payment in full in cash of all the Obligations).
Each Subsidiary Guarantor expressly authorizes the Administrative Agent to release or substitute
any one or more other

 

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guarantors or obligors upon or in respect of the Obligations, all without
affecting the obligations of any Subsidiary Guarantor hereunder.

     (b) To the fullest extent permitted by applicable law, each Subsidiary Guarantor waives any
defense based on or arising out of any defense of the Borrower or
any other Loan Party or the unenforceability of the Obligations or any part thereof from any
cause, or the cessation from any cause of the liability of the Borrower or any other Loan Party,
other than the indefeasible payment in full in cash of all the Obligations. The Administrative
Agent and the other Lenders may, at their election, compromise or adjust any part of the
Obligations, make any other accommodation with the Borrower or any other Loan Party or exercise any
other right or remedy available to them against the Borrower or any other Loan Party, without
affecting or impairing in any way the liability of any Subsidiary Guarantor hereunder except to the
extent the Obligations have been fully and indefeasibly paid in full in cash. To the fullest
extent permitted by applicable law, each Subsidiary Guarantor waives any defense arising out of any
such election even though such election operates, pursuant to applicable law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy of such Subsidiary
Guarantor against the Borrower or any other Loan Party, as the case may be, or any security.

     SECTION 9.04. Reinstatement. Each Subsidiary Guarantor agrees that its guarantee hereunder
shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any Obligation is rescinded or must otherwise be restored by the Administrative
Agent or any other Lender upon the bankruptcy or reorganization of the Borrower, any other Loan
Party or otherwise.

     SECTION 9.05. Agreement To Pay; Subrogation. In furtherance of the foregoing and not in
limitation of any other right that the Administrative Agent or any other Lender has at law or in
equity against any Subsidiary Guarantor by virtue hereof, upon the failure of the Borrower or any
other Loan Party to pay any Obligation when and as the same shall become due, whether at maturity,
by acceleration, after notice of prepayment or otherwise, each Subsidiary Guarantor hereby promises
to and will forthwith pay, or cause to be paid, to the Administrative Agent for distribution to the
applicable Lenders in cash the amount of such unpaid Obligation. Upon payment by any Subsidiary
Guarantor of any sums to the Administrative Agent as provided above, all rights of such Subsidiary
Guarantor against the Borrower or any other Subsidiary Guarantor arising as a result thereof by way
of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects
be subject to Sections 9.07, 9.08 and 9.09.

     SECTION 9.06. Information. Each Subsidiary Guarantor assumes all responsibility for being and
keeping itself informed of the Borrower’s and each other Loan Party’s financial condition and
assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and
the nature, scope and extent of the risks that such Subsidiary Guarantor assumes and incurs
hereunder, and agrees that neither the Administrative Agent nor any other administrative party will
have any duty to advise

 

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such Subsidiary Guarantor of information known to it or any of them
regarding such circumstances or risks.

     SECTION 9.07. Indemnity and Subrogation. In addition to all such rights of indemnity and
subrogation as the Subsidiary Guarantors may have under applicable law (but subject to Section
9.09), the Borrower agrees that in the event a payment shall be
made by any Subsidiary Guarantor under this Agreement, the Borrower shall indemnify such
Subsidiary Guarantor for the full amount of such payment and such Subsidiary Guarantor shall be
subrogated to the rights of the person to whom such payment shall have been made to the extent of
such payment.

     SECTION 9.08. Contribution and Subrogation. Each Subsidiary Guarantor (a “Contributing
Guarantor”) agrees (subject to Section 9.09) that, in the event a payment shall be made by any
other Subsidiary Guarantor hereunder in respect of any Obligation and such other Subsidiary
Guarantor (the “Claiming Guarantor”) shall not have been fully indemnified by the Borrower as
provided in Section 9.07, the Contributing Guarantor shall indemnify the Claiming Guarantor in an
amount equal to the amount of such payment multiplied by a fraction of which the numerator shall be
the net worth of the Contributing Guarantor on the date hereof and the denominator shall be the
aggregate net worth of all the Subsidiary Guarantors on the date hereof (or, in the case of any
Subsidiary Guarantor becoming a party hereto pursuant to Section 5.09, the date of the Supplemental
Guarantee hereto executed and delivered by such Subsidiary Guarantor). Any Contributing Guarantor
making any payment to a Claiming Guarantor pursuant to this Section 9.08 shall be subrogated to the
rights of such Claiming Guarantor under Section 9.09 to the extent of such payment.

     SECTION 9.09. Subordination. (a) Notwithstanding any provision of this Agreement to the
contrary, all rights of the Subsidiary Guarantors under Sections 9.07 and 9.08 and all other rights
of indemnity, contribution or subrogation under applicable law or otherwise shall be fully
subordinated to the indefeasible payment in full in cash of the Obligations. No failure on the
part of the Borrower or any Subsidiary Guarantor to make the payments required by Sections 9.07 and
9.08 (or any other payments required under applicable law or otherwise) shall in any respect limit
the obligations and liabilities of any Subsidiary Guarantor with respect to its obligations
hereunder, and each Subsidiary Guarantor shall remain liable for the full amount of its obligations
hereunder.

     (b) The Borrower and each Subsidiary Guarantor hereby agree that all Indebtedness and other
monetary obligations owed by it to the Borrower or any Subsidiary shall be fully subordinated to
the indefeasible payment in full in cash of the Obligations.

     SECTION 9.10. Release. A Subsidiary Guarantor shall automatically be released from its
obligations hereunder upon the consummation of any transaction permitted by this Agreement as a
result of which such Subsidiary Guarantor ceases to be a Subsidiary of the Borrower.

 

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ARTICLE X

Miscellaneous

     SECTION 10.01. Notices. 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 fax, as follows:

     (a) if to the Borrower, to it at 1750 Tysons Boulevard, Suite 1300, McLean, Virginia
22102, Attention of John M. Hughes (Fax No. (703) 714-6508 or (703) 714-6511);

     (b) if to the Administrative Agent, to Credit Suisse, Eleven Madison Avenue, New York,
New York 10010, Attention of Agency Group (Fax No. (212) 325-8304); and

     (c) if to a Lender, to it at its address (or fax number) set forth in its
Administrative Questionnaire or in the Assignment and Acceptance pursuant to which such
Lender shall have become a party hereto.

     All notices and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered
by hand or overnight courier service or sent by fax or on the date five Business Days after
dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such party as provided in this Section or in accordance with the latest
unrevoked direction from such party given in accordance with this Section. As agreed to among the
Borrower, the Administrative Agent and the applicable Lenders from time to time, notices and other
communications may also be delivered by e-mail to the e-mail address of a representative of the
applicable person provided from time to time by such person.

     SECTION 10.02. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the Lenders and shall survive the making by the Lenders of
the Loans, regardless of any investigation made by the Lenders or on their behalf, and shall
continue in full force and effect as long as the principal of or any accrued interest on any Loan
or any Administrative Agent Fee or any other amount payable under this Agreement or any other Loan
Document is outstanding and unpaid and so long as the Commitments have not been terminated. The
provisions of Sections 2.11, 2.13, 2.17 and 10.05 shall remain operative and in full force and
effect regardless of the expiration of the term of this Agreement, the consummation of the
transactions contemplated hereby, the repayment of any of the Loans, the expiration of the
Commitments, the invalidity or unenforceability of any term or provision of this Agreement or any
other Loan Document, or any investigation made by or on behalf of the Administrative Agent or any
Lender.

 

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     SECTION 10.03. Binding Effect. This Agreement shall become effective when it shall have been
executed by the Borrower and the Administrative Agent and when the Administrative Agent shall have
received counterparts hereof which, when taken together, bear the signatures of each of the other
parties hereto.

     SECTION 10.04. Successors and Assigns. (a) Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the permitted successors and
assigns of such party; and all covenants, promises and
agreements by or on behalf of the Borrower, the Administrative Agent or the Lenders that are
contained in this Agreement shall bind and inure to the benefit of their respective successors and
assigns.

     (b) Each Lender may assign to one or more assignees all or a portion of its interests, rights
and obligations under this Agreement (including all or a portion of its Commitments and the Loans
at the time owing to it), with the prior written consent of the Administrative Agent (not to be
unreasonably withheld or delayed); provided, however, that (i) the parties to each such assignment
shall (A) electronically execute and deliver to the Administrative Agent an Assignment and
Acceptance via an electronic settlement system acceptable to the Administrative Agent (which
initially shall be ClearPar, LLC) or (B) if no such system shall then be specified by the
Administrative Agent, manually execute and deliver to the Administrative Agent an Assignment and
Acceptance, together with a processing and recordation fee of $3,500 (unless such fee is waived at
the discretion of the Administrative Agent and no more than one such fee shall be payable in
connection with simultaneous assignments to or by two or more Related Funds) and (ii) the assignee,
if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire and all applicable tax forms. Upon acceptance and recording pursuant to paragraph
(e) of this Section, from and after the effective date specified in each Assignment and Acceptance,
(A) the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by
such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement
and (B) the assigning Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case
of an Assignment and Acceptance covering all or the remaining portion of an 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 2.11, 2.13, 2.17 and 10.05).

     (c) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder
and the assignee thereunder shall be deemed to confirm to and agree with each other and the other
parties hereto as follows: (i) such assigning Lender warrants that it is the legal and beneficial
owner of the interest being assigned thereby free and clear of any adverse claim, and that the
outstanding balances of its Loans are as set forth in such Assignment and Acceptance, (ii) except
as set forth in clause (i) above, such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or representations made in or
in connection with this Agreement, or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement, any other Loan Document or any

 

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other instrument or document furnished pursuant hereto, or the financial condition of the Borrower or any
Subsidiary or the performance or observance by the Borrower or any Subsidiary of any of its
obligations under this Agreement, any other Loan Document or any other instrument or document
furnished pursuant hereto; (iii) such assignee represents and warrants that it is legally
authorized to enter into such Assignment and Acceptance; (iv) such assignee confirms that it has
received a copy of this Agreement, together with copies of the most recent financial statements
referred to in Section 3.05(a) or delivered pursuant to Section 5.04 and such other documents and
information as it has
deemed appropriate to make its own credit analysis and decision to enter into such Assignment
and Acceptance; (v) such assignee will independently and without reliance upon the Administrative
Agent, such assigning Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under this Agreement; (vi) such assignee appoints and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers under this Agreement
as are delegated to the Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.

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

     (e) Upon its receipt of, and consent to, a duly completed Assignment and Acceptance executed
by an assigning Lender and an assignee, an Administrative Questionnaire completed in respect of the
assignee (unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section, if applicable, the written consent of the
Administrative Agent and, if required, the Borrower to such assignment and any applicable tax
forms, the Administrative Agent shall (i) accept such Assignment and Acceptance and (ii) record the
information contained therein in the Register. No assignment shall be effective unless it has been
recorded in the Register as provided in this paragraph.

     (f) Each Lender may without the consent of the Borrower or the Administrative Agent sell
participations to one or more banks or other entities in all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment and the Loans owing
to it); provided, however, that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible

 

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to the other parties hereto for the
performance of such obligations, (iii) the participating banks or other entities shall be entitled
to the benefit of the cost protection provisions contained in Sections 2.11, 2.13 and 2.17 to the
same extent as if they were Lenders (but, with respect to any particular participant, to no greater
extent than the Lender that sold the participation to such participant) and (iv) the Borrower, the
Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement, and such Lender shall
retain the sole right to enforce the obligations of the Borrower relating to the Loans and to
approve any amendment, modification or waiver of any provision of this Agreement (other than
amendments, modifications or waivers decreasing the amount of principal of or the rate at which
interest is payable on the Loans, extending any scheduled principal payment date or date fixed for
the payment of interest on the Loans, increasing or extending the Commitments or releasing any
Subsidiary Guarantor.

     (g) Any Lender or participant may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section, subject to Section 10.16(b),
disclose to the assignee or participant or proposed assignee or participant any information
relating to the Borrower furnished to such Lender by or on behalf of the Borrower; provided that,
prior to any such disclosure of information designated by the Borrower as confidential, each such
assignee or participant or proposed assignee or participant shall execute an agreement whereby such
assignee or participant shall agree (subject to customary exceptions) to preserve the
confidentiality of such confidential information on terms no less restrictive than those applicable
to the Lenders pursuant to Section 10.16.

     (h) Any Lender may at any time assign all or any portion of its rights under this Agreement to
secure extensions of credit to such Lender or in support of obligations owed by such Lender;
provided that no such assignment shall release a Lender from any of its obligations hereunder or
substitute any such assignee for such Lender as a party hereto.

     (i) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing
from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option
to provide to the Borrower all or any part of any Loan that such Granting Lender would otherwise be
obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein
shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC elects not to exercise
such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall
be obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an SPC
hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such
Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be
liable for any indemnity or similar payment obligation under this Agreement (all liability for
which shall remain with the Granting Lender). In furtherance of the foregoing, each party hereto
hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the
date that is one year and one day after the payment in full of all outstanding commercial paper or
other senior

 

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indebtedness of any SPC, it will not institute against, or join any other person in
instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under the laws of the United States of America or any State thereof. In
addition, notwithstanding anything to the contrary contained in this Section, any SPC may (i) with
notice to, but without the prior written consent of, the Borrower and the Administrative Agent and
without paying any processing fee therefor, assign all or a portion of its interests in any Loans
to the Granting Lender or to any financial institutions (consented to by the Borrower and
Administrative Agent) providing liquidity
and/or credit support to or for the account of such SPC to support the funding or maintenance
of Loans and (ii) subject to Section 10.16(b), disclose on a confidential basis any non-public
information relating to its Loans to any rating agency, commercial paper dealer or provider of any
surety, guarantee or credit or liquidity enhancement to such SPC.

     (j) The Borrower shall not assign or delegate any of its rights or duties hereunder without
the prior written consent of the Administrative Agent and each Lender, and any attempted assignment
without such consent shall be null and void.

     SECTION 10.05. Expenses; Indemnity. (a) The Borrower agrees to pay all out-of-pocket
expenses incurred by the Administrative Agent in connection with the syndication of the Loans and
the preparation and administration of this Agreement and the other Loan Documents or in connection
with any amendments, modifications or waivers of the provisions hereof or thereof (whether or not
the transactions hereby or thereby contemplated shall be consummated) or incurred by the
Administrative Agent or any Lender in connection with the enforcement or protection of its rights
in connection with this Agreement and the other Loan Documents or in connection with the Loans made
hereunder, in each case including the reasonable fees, charges and disbursements of Cravath, Swaine
& Moore LLP, counsel for the Administrative Agent and, in connection with any such enforcement or
protection, the reasonable fees, charges and disbursements of any other counsel for the
Administrative Agent or any Lender.

     (b) The Borrower agrees to indemnify the Administrative Agent, each Lender and each Related
Party of any of the foregoing persons (each such person being called an “Indemnitee”) against, and
to hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related
expenses, including reasonable counsel fees, charges and disbursements, incurred by or asserted
against any Indemnitee arising out of, in any way connected with, or as a result of (i) the
execution or delivery of this Agreement or any other Loan Document or any agreement or instrument
contemplated thereby, the performance by the parties thereto of their respective obligations
thereunder or the consummation of the Transactions and the other transactions contemplated thereby,
(ii) the use of the proceeds of the Loans, (iii) any claim, litigation, investigation or proceeding
relating to any of the foregoing, whether or not any Indemnitee is a party thereto, or (iv) any
actual or alleged presence or Release of Hazardous Materials on any property currently or formerly
owned or operated by the Borrower or any Subsidiary, or any Environmental Liability related in any
way to the Borrower or the Subsidiaries; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses are determined by a court

 

71

of competent jurisdiction by final and nonappealable judgment to
have resulted primarily from the gross negligence or willful misconduct of such Indemnitee.

     (c) To the extent that the Borrower fails to pay any amount required to be paid by them to the
Administrative Agent under paragraph (a) or (b) of this Section, each Lender severally agrees to
pay to the Administrative Agent such Lender’s pro rata share (determined, in the manner provided
below, 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 in its
capacity as such. For purposes hereof, a Lender’s “pro rata share” shall be determined based upon
its share of the outstanding Loans at the time.

     (d) To the 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 or any agreement or instrument contemplated
hereby, the Transactions, any Loan or the use of the proceeds thereof.

     (e) The provisions of this Section shall remain operative and in full force and effect
regardless of the expiration of the term of this Agreement, the consummation of the transactions
contemplated hereby, the repayment of any of the Loans, the expiration of the Commitments, the
invalidity or unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Administrative Agent or any Lender. All
amounts due under this Section shall be payable on written demand therefor.

     SECTION 10.06. Right of Setoff. If an Event of Default shall have occurred and be continuing,
each Lender is hereby authorized at any time and from time to time, except to the extent prohibited
by law, to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other indebtedness at any time owing by such Lender to or for the
credit or the account of the Borrower against any of and all the obligations of the Borrower now or
hereafter existing under this Agreement and other Loan Documents held by such Lender, irrespective
of whether or not such Lender shall have made any demand under this Agreement or such other Loan
Document and although such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of setoff) which such
Lender may have.

     SECTION 10.07. APPLICABLE LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE CONSTRUED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     SECTION 10.08. Waivers; Amendment. (a) No failure or delay of the Administrative Agent or
any Lender in exercising any power or right hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial

 

72

exercise of any such right or power,
or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other
or further exercise thereof or the exercise of any other right or power. The rights and remedies
of the Administrative Agent and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would otherwise have. No
waiver of any provision of this Agreement or any other Loan Document or consent to any departure by
the Borrower or any other Loan Party therefrom shall in any event be effective unless the same
shall be permitted by paragraph (b) of this Section, and then
such waiver or consent shall be effective only in the specific instance and for the purpose
for which given. No notice or demand on the Borrower in any case shall entitle the Borrower to any
other or further notice or demand in similar or other circumstances.

     (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Borrower and the Required
Lenders; provided, however, that (i) no such agreement shall (A) decrease the principal amount of,
or extend the maturity of or any scheduled principal payment date or date for the payment of any
interest on any Loan or waive or excuse any such payment or any part thereof, or decrease the rate
of interest on any Loan, without the prior written consent of each Lender affected thereby, (B)
increase or extend the Commitment of any Lender without the prior written consent of such Lender,
(C) amend or modify the pro rata requirements of Section 2.14, the provisions of Section 10.04(j)
or the provisions of this Section or release any Subsidiary Guarantor, without the prior written
consent of each Lender, (D) modify the protections afforded to an SPC pursuant to the provisions of
Section 10.04(i) without the written consent of such SPC, or (E) reduce the percentage contained in
the definition of the term “Required Lenders” without the prior written consent of each Lender and
(ii) any waiver, amendment or other modification referred to in subclauses (i)(A) or (B) above with
respect to the Loans or Commitments of any Lender may be made with the prior written consent of
such Lender; provided further that no such agreement shall amend, modify or otherwise affect the
rights or duties of the Administrative Agent hereunder or under any other Loan Document without the
prior written consent of the Administrative Agent.

     SECTION 10.09. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if
at any time the interest rate applicable to any Loan, together with all fees, charges and other
amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan or participation in accordance
with applicable law, the rate of interest payable in respect of such Loan or participation
hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum
Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of
such Loan or participation but were not payable as a result of the operation of this Section shall
be cumulated and the interest and Charges payable to such Lender in respect of other Loans or
participations or periods shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

 

73

     SECTION 10.10. Entire Agreement. This Agreement and the other Loan Documents constitute the
entire contract between the parties relative to the subject matter hereof. Any other previous
agreement among the parties with respect to the subject matter hereof is superseded by this
Agreement and the other Loan Documents. Nothing in this Agreement or in the other Loan Documents,
expressed or implied, is intended to confer upon any person (other than the parties hereto and
thereto, their respective successors and assigns permitted hereunder and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any
rights, remedies, obligations or liabilities under or by reason of this Agreement or the other
Loan Documents.

     SECTION 10.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS,
AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     SECTION 10.12. Severability. In the event any one or more of the provisions contained in this
Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein and
therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect
the validity of such provision in any other jurisdiction). The parties shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

     SECTION 10.13. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become effective as
provided in Section 10.03. Delivery of an executed signature page to this Agreement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart of this Agreement.

     SECTION 10.14. Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

 

74

     SECTION 10.15. Jurisdiction; Consent to Service of Process. The Borrower hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or Federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby 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 or, to the extent
permitted by 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 shall
affect any right that the Administrative Agent or any Lender may otherwise have to bring any action
or proceeding relating to this Agreement or the other Loan Documents against the Borrower or its
properties in the courts of any jurisdiction.

     (a) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement or the other
Loan Documents in any New York State or Federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

     (b) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 10.01. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

     SECTION 10.16. Confidentiality. (a) Each of the Administrative Agent and the Lenders agrees
to maintain the confidentiality of the Information (as defined below), except that Information may
be disclosed (a) to its and its Affiliates’ officers, directors, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any regulatory authority or
quasi-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) in connection with the exercise of any remedies hereunder or under the other Loan Documents or
any suit, action or proceeding relating to the enforcement of its rights hereunder or thereunder,
(e) subject to an agreement containing provisions substantially the same as those of this Section,
to (i) any actual or prospective assignee of, pledgee of or participant in any of its rights or
obligations under this Agreement and the other Loan Documents or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower or
any Subsidiary or any of their respective obligations, (f) with the consent of the Borrower or (g)
to the extent such Information becomes publicly available other than as a result of a breach of
this Section.

 

75

For the purposes of this Section, “Information” shall mean all information received
from the Borrower and related to the Borrower or its business, other than any such information that
was available to the Administrative Agent or any Lender on a nonconfidential basis prior to its
disclosure by the Borrower; provided that, in the case of Information received from the Borrower
after the date hereof, such information is clearly identified at the time of delivery as
confidential.

     (b) The Administrative Agent, the Lenders and all other persons who are or who may become
party to this Agreement or who may participate in the Loans pursuant to Section 10.04(f) or are
SPCs acknowledge that the Borrower and its Subsidiaries perform classified contracts funded by or
for the benefit of the United States Federal government, and, accordingly, notwithstanding any
other provision of this Agreement, neither the Borrower nor any Subsidiary will be obligated to
release, disclose or otherwise make available: (i) any classified information to any person
including the Administrative Agent, the Lenders or any other person not in possession of a valid
security clearance and authorized by the appropriate agency of the United States Federal government
to receive such material, or (ii) any material whatsoever to any person including the
Administrative Agent, the Lenders or any other person if such release, disclosure or availability
would not comply with the National Industrial Security Program Operating Manual and associated laws
and regulations. The Administrative Agent and the Lenders agree that, in connection with any
exercise of a right or remedy, the United States Federal government may remove classified
information or government-issued property prior to any remedial action implicating such classified
information or government-issued property. Upon notice from the Borrower, the Administrative Agent
and the Lenders shall take such steps in accordance with this Agreement as may reasonably be
requested by the Borrower to enable the Borrower or any Subsidiary to comply with the Foreign
Ownership Control or Influence requirements of the United States government imposed from time to
time.

     SECTION 10.17. USA Patriot Act Notice. Each Lender 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, 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 USA Patriot Act.

[Remainder of page intentionally blank]

 

76

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

	 	 	 	 	 	 	 
	 	 	ALION SCIENCE AND TECHNOLOGY CORPORATION,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ John M. Hughes
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John M. Hughes

Title: Executive VP and CFO
	 
	 	 	 	 	 	 
	 	 	HUMAN FACTORS APPLICATIONS, INC.,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ John M. Hughes
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John M. Hughes

Title: Treasurer
	 
	 	 	 	 	 	 
	 	 	ALION-METI CORPORATION,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ John M. Hughes
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John M. Hughes

Title: Treasurer
	 
	 	 	 	 	 	 
	 	 	ALION-CATI CORPORATION,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ John M. Hughes
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John M. Hughes

Title: Treasurer
	 
	 	 	 	 	 	 
	 	 	ALION-JJMA CORPORATION,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ John M. Hughes
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John M. Hughes

Title: Treasurer

 

77

	 	 	 	 	 	 	 
	 	 	ALION-BMH CORPORATION,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ John M. Hughes
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John M. Hughes

Title: Treasurer
	 
	 	 	 	 	 	 
	 	 	WASHINGTON CONSULTING, INC.,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ John M. Hughes
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John M. Hughes

Title: Treasurer
	 
	 	 	 	 	 	 
	 	 	ALION-MA&D CORPORATION,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ Stacy J. Mendler
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Stacy J. Mendler

Title: President
	 
	 	 	 	 	 	 
	 	 	CREDIT SUISSE individually and as Administrative Agent,
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ Robert Hetu
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Robert Hetu

Title: Managing Director
	 
	 	 	 	 	 	 
	 

	 	 	 	by
	 	/s/ Cassandra Droogan
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Cassandra Droogan

Title: Vice President

 

SIGNATURE PAGE TO

ALION SCIENCE AND

TECHNOLOGY CORPORATION

BRIDGE LOAN AGREEMENT

	 	 	 	 	 	 	 
	 

	 	Name of Institution:	 	 	 	 
	 	 	 	 	 
	 
	 

	 	 	 	by
	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:

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