Document:

exv4w6

Exhibit 4.6

FORM OF INTERCREDITOR AGREEMENT

     Intercreditor Agreement (this “Agreement”), dated as of October [•] 2010, among THE BANK OF
NEW YORK MELLON, as Collateral Agent (in such capacity, with its successors and assigns, and as
more specifically defined below, the “First Priority Representative”) for the First Priority
Secured Parties (as defined below), WILMINGTON TRUST FSB, as Collateral Trustee (in such capacity,
with its successors and assigns, and as more specifically defined below, the “Second Priority
Representative”) for the Second Priority Secured Parties (as defined below), GeoEye, Inc. (the
“Company”) and each of the other Grantors (as defined below) party hereto.

     WHEREAS, the Company has issued its 9.625% Senior Secured Notes due 2015 pursuant to the
Indenture, dated as of October 9, 2009, with The Bank of New York Mellon, as Trustee and Collateral
Agent (as amended, amended and restated, modified, supplemented or waived, the “Existing First
Priority Agreement”); and

     WHEREAS, the Company has issued its [•] Senior Secured Notes due 2016 pursuant to the
Indenture, dated as of October [•], 2010 (as amended, amended and restated, modified, supplemented
or waived, the “Existing Second Priority Agreement”); and

     WHEREAS, the Company and the other Grantors have granted to the First Priority Representative
security interests in the Common Collateral as security for payment and performance of the First
Priority Obligations; and

     WHEREAS, the Company and the other Grantors propose to grant to the Second Priority
Representative junior security interests in the Common Collateral as security for payment and
performance of the Second Priority Obligations; and

     NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and
other good and valuable consideration, the existence and sufficiency of which are expressly
recognized by all of the parties hereto, the parties agree as follows:

     SECTION 1. Definitions.

     1.1. Defined Terms. The following terms, as used herein, have the following meanings:

     “Additional First Priority Agreement” means any agreement evidencing indebtedness permitted to
be designated by the First Priority Agreement and the Second Priority Agreement as pari passu with
the First Priority Obligations and senior to the Second Priority Obligations.

     “Additional Second Priority Agreement” means any agreement evidencing indebtedness permitted
to be designated by the First Priority Agreement and the Second Priority Agreement as pari passu
with the Second Priority Obligations.

     “Agreement” has the meaning set forth in the introductory paragraph hereof.

     “Bankruptcy Code” means the United States Bankruptcy Code (11 U.S.C. §101 et seq.), as amended
from time to time.

     “Company” has the meaning set forth in the introductory paragraph hereof.

 

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     “Common Collateral” means all assets that are both First Priority Collateral and Second
Priority Collateral.

     “Comparable Second Priority Security Document” means, in relation to any Common Collateral
subject to any First Priority Security Document, that Second Priority Security Document that
creates a security interest in the same Common Collateral, granted by the same Grantor, as
applicable.

     “DIP Financing” has the meaning set forth in Section 5.2.

     “Enforcement Action” means, with respect to the First Priority Obligations or the Second
Priority Obligations, the exercise of any rights and remedies with respect to any Common Collateral
securing such obligations or the commencement or prosecution of enforcement of any of the rights
and remedies with respect to the Common Collateral under, as applicable, the First Priority
Documents or the Second Priority Documents, or applicable law, including without limitation the
exercise of any rights of set-off or recoupment, and the exercise of any rights or remedies of a
secured creditor under the Uniform Commercial Code of any applicable jurisdiction or under the
Bankruptcy Code.

     “Existing First Priority Agreement” has the meaning set forth in the first WHEREAS clause of
this Agreement.

     “Existing Second Priority Agreement” has the meaning set forth in the second WHEREAS clause of
this Agreement.

     “First Priority Agreement” means the collective reference to (a) the Existing First Priority
Agreement, (b) any Additional First Priority Agreement and (c) any other credit agreement, loan
agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing
or governing the terms of any indebtedness or other financial accommodation that has been incurred
to extend, increase, renew, refund, replace (whether upon or after termination or otherwise) or
refinance (including by means of sales of debt securities to institutional investors) in whole or
in part from time to time the indebtedness and other obligations outstanding under the Existing
First Priority Agreement, any Additional First Priority Agreement or any other agreement or
instrument referred to in this clause (c) unless such agreement or instrument expressly provides
that it is not intended to be and is not a First Priority Agreement hereunder (a “Replacement First
Priority Agreement”). Any reference to the First Priority Agreement hereunder shall be deemed a
reference to any First Priority Agreement then extant.

     “First Priority Collateral” means all assets, whether now owned or hereafter acquired by the
Company or any other Grantor, in which a Lien is granted or purported to be granted to any First
Priority Secured Party as security for any First Priority Obligation.

     “First Priority Documents” means the First Priority Agreement, each First Priority Security
Document and each First Priority Guarantee.

     “First Priority Guarantee” means any guarantee by any Grantor of any or all of the First
Priority Obligations.

     “First Priority Lien” means any Lien created by the First Priority Security Documents.

 

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     “First Priority Obligations” means (a) with respect to the Existing First Priority Agreement,
all “Secured Obligations” of each Grantor as defined in the “Security Agreement” referred to in the
First Priority Agreement and (b) with respect to each other First Priority Agreement, (i) all
principal of and interest (including without limitation any Post-Petition Interest) and premium (if
any) on all loans made or other indebtedness issued or incurred pursuant to the First Priority
Agreement, (ii) all reimbursement obligations (if any) and interest thereon (including without
limitation any Post-Petition Interest) with respect to any letter of credit or similar instruments
issued pursuant to the First Priority Agreement, and (iii) all guarantee obligations, fees,
expenses and other amounts payable from time to time pursuant to the First Priority Documents, in
each case whether or not allowed or allowable in an Insolvency Proceeding. To the extent any
payment with respect to any First Priority Obligation (whether by or on behalf of any Grantor, as
proceeds of security, enforcement of any right of setoff or otherwise) is declared to be a
fraudulent conveyance or a preference in any respect, set aside or required to be paid to a debtor
in possession, any Second Priority Secured Party, receiver or similar Person, then the obligation
or part thereof originally intended to be satisfied shall, for the purposes of this Agreement and
the rights and obligations of the First Priority Secured Parties and the Second Priority Secured
Parties, be deemed to be reinstated and outstanding as if such payment had not occurred.

     “First Priority Obligations Payment Date” means the first date on which (a) the First Priority
Obligations (other than those that constitute Unasserted Contingent Obligations) have been paid in
full (or cash collateralized, discharged or defeased in accordance with the terms of the First
Priority Documents), (b) all commitments to extend credit under the First Priority Documents have
been terminated, (c) there are no outstanding letters of credit or similar instruments issued under
the First Priority Documents (other than such as have been cash collateralized, back-stopped or
defeased in accordance with the terms of the First Priority Documents), and (d) the First Priority
Representative has delivered a written notice to the Second Priority Representative stating that
the events described in clauses (a), (b) and (c) have occurred to the satisfaction of the First
Priority Secured Parties, which notice shall be delivered by the First Priority Representative
promptly after the occurrence of the events described in clauses (a), (b) and (c).

     “First Priority Representative” has the meaning set forth in the introductory paragraph
hereof. In the case of any Replacement First Priority Agreement, the First Priority Representative
shall be the Person identified as such in such Agreement.

     “First Priority Secured Parties” means the First Priority Representative and any other holders
of the First Priority Obligations.

     “First Priority Security Documents” means the “Security Documents” as defined in the First
Priority Agreement, and any other documents that are designated under the First Priority Agreement
as “First Priority Security Documents” for purposes of this Agreement.

     “Insolvency Proceeding” means any proceeding in respect of bankruptcy, insolvency, winding up,
receivership, dissolution or assignment for the benefit of creditors, in each of the foregoing
events whether under the Bankruptcy Code or any similar federal, state or foreign bankruptcy,
insolvency, reorganization, receivership or similar law.

     “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any agreement to give any of the foregoing, any conditional sale or other title
retention agreement or any lease in the nature thereof).

 

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     “Grantor” means the Company and each direct or indirect subsidiary, affiliate or shareholder
(or equivalent) of the Company or any of its affiliates that is now or hereafter becomes a party to
any First Priority Document or Second Priority Document. All references in this Agreement to any
Grantor shall include such Grantor as a debtor-in-possession and any receiver or trustee for such
Grantor in any Insolvency Proceeding.

     “Person” means any individual, partnership, joint venture, firm, corporation, association,
trust or other enterprise or any government or political subdivision or any agency, department or
instrumentality thereof.

     “Post-Petition Interest” means any interest or entitlement to fees or expenses or other
charges that accrues after the commencement of any Insolvency Proceeding, whether or not allowed or
allowable in any such Insolvency Proceeding.

     “Replacement First Priority Agreement” has the meaning set forth in the definition of “First
Priority Agreement”.

     “Second Priority Agreement” means the collective reference to (a) the Existing Second Priority
Agreement, (b) any Additional Second Priority Agreement and (c) any other credit agreement, loan
agreement, note agreement, promissory note, indenture, or other agreement or instrument evidencing
or governing the terms of any indebtedness or other financial accommodation that has been incurred
to extend, increase, renew, refund, replace (whether upon or after termination or otherwise) or
refinance (including by means of sales of debt securities to institutional investors) in whole or
in part from time to time the indebtedness and other obligations outstanding under the Existing
Second Priority Agreement, any Additional Second Priority Agreement or any other agreement or
instrument referred to in this clause (c). Any reference to the Second Priority Agreement
hereunder shall be deemed a reference to any Second Priority Agreement then extant.

     “Second Priority Collateral” means all assets, whether now owned or hereafter acquired by the
Company or any other Grantor, in which a Lien is granted or purported to be granted to any Second
Priority Secured Party as security for any Second Priority Obligation.

     “Second Priority Creditors” means the “[Lenders]” as defined in the Second Priority Agreement,
or any Persons that are designated under the Second Priority Agreement as the “Second Priority
Creditors” for purposes of this Agreement.

     “Second Priority Documents” means each Second Priority Agreement, each Second Priority
Security Document and each Second Priority Guarantee.

     “Second Priority Guarantee” means any guarantee by any Grantor of any or all of the Second
Priority Obligations.

     “Second Priority Lien” means any Lien created by the Second Priority Security Documents.

     “Second Priority Obligations” means (a) with respect to the Existing Second Priority
Agreement, all “Secured Obligations” of each Grantor as defined in the [“Security Agreement”]
referred to in the Second Priority Agreement and (b) with respect to each other Second Priority
Agreement, (i) all principal of and interest (including without limitation any Post-Petition
Interest) and premium (if any) on

 

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all indebtedness under the Second Priority Agreement, and (ii) all guarantee obligations,
fees, expenses and other amounts payable from time to time pursuant to the Second Priority
Documents, in each case whether or not allowed or allowable in an Insolvency Proceeding. To the
extent any payment with respect to any Second Priority Obligation (whether by or on behalf of any
Grantor, as proceeds of security, enforcement of any right of setoff or otherwise) is declared to
be a fraudulent conveyance or a preference in any respect, set aside or required to be paid to a
debtor in possession, any First Priority Secured Party, receiver or similar Person, then the
obligation or part thereof originally intended to be satisfied shall, for the purposes of this
Agreement and the rights and obligations of the First Priority Secured Parties and the Second
Priority Secured Parties, be deemed to be reinstated and outstanding as if such payment had not
occurred.

     “Second Priority Representative” has the meaning set forth in the introductory paragraph
hereof, but shall also include any Person identified as a “Second Priority Representative” in any
Second Priority Agreement other than the Existing Second Priority Agreement.

     “Second Priority Secured Party” means the Second Priority Representative, the Second Priority
Creditors and any other holders of the Second Priority Obligations.

     “Second Priority Security Documents” means the [“Security Documents”] as defined in the Second
Priority Agreement and any documents that are designated under the Second Priority Agreement as
“Second Priority Security Documents” for purposes of this Agreement.

     “Secured Parties” means the First Priority Secured Parties and the Second Priority Secured
Parties.

     “Unasserted Contingent Obligations” shall mean, at any time, First Priority Obligations for
taxes, costs, indemnifications, reimbursements, damages and other liabilities (excluding (a) the
principal of, and interest and premium (if any) on, and fees and expenses relating to, any First
Priority Obligation and (b) contingent reimbursement obligations in respect of amounts that may be
drawn under outstanding letters of credit) in respect of which no assertion of liability (whether
oral or written) and no claim or demand for payment (whether oral or written) has been made (and,
in the case of First Priority Obligations for indemnification, no notice for indemnification has
been issued by the indemnitee) at such time.

     “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect from time to
time in the applicable jurisdiction.

     1.2 Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (i) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, restated, supplemented or otherwise modified, (ii) any reference herein
to any Person shall be construed to include such Person’s successors or permitted assigns, (iii)
the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any

 

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particular provision hereof, (iv) all references herein to Sections shall be construed to
refer to Sections of this Agreement and (v) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

     SECTION 2. Lien Priorities.

     2.1 Subordination of Liens. (a) Any and all Liens now existing or hereafter
created or arising in favor of any Second Priority Secured Party securing the Second Priority
Obligations, regardless of how acquired, whether by grant, statute, operation of law, subrogation
or otherwise are expressly junior in priority, operation and effect to any and all Liens now
existing or hereafter created or arising in favor of the First Priority Secured Parties securing
the First Priority Obligations, notwithstanding (i) anything to the contrary contained in any
agreement or filing to which any Second Priority Secured Party may now or hereafter be a party, and
regardless of the time, order or method of grant, attachment, recording or perfection of any
financing statements or other security interests, assignments, pledges, deeds, mortgages and other
liens, charges or encumbrances or any defect or deficiency or alleged defect or deficiency in any
of the foregoing, (ii) any provision of the Uniform Commercial Code or any applicable law or any
First Priority Document or Second Priority Document or any other circumstance whatsoever and (iii)
the fact that any such Liens in favor of any First Priority Secured Party securing any of the First
Priority Obligations are (x) subordinated to any Lien securing any obligation of any Grantor other
than the Second Priority Obligations or (y) otherwise subordinated, voided, avoided, invalidated or
lapsed.

     (b) No First Priority Secured Party or Second Priority Secured Party shall object to or
contest, or support any other Person in contesting or objecting to, in any proceeding (including
without limitation, any Insolvency Proceeding), the validity, extent, perfection, priority or
enforceability of any security interest in the Common Collateral granted to the other.
Notwithstanding any failure by any First Priority Secured Party or Second Priority Secured Party to
perfect its security interests in the Common Collateral or any avoidance, invalidation or
subordination by any third party or court of competent jurisdiction of the security interests in
the Common Collateral granted to the First Priority Secured Parties or the Second Priority Secured
parties, the priority and rights as between the First Priority Secured Parties and the Second
Priority Secured Parties with respect to the Common Collateral shall be as set forth herein.

     2.2 Nature of First Priority Obligations. The Second Priority Representative on
behalf of itself and the other Second Priority Secured Parties acknowledges that a portion of the
First Priority Obligations may represent debt that is revolving in nature and that the amount
thereof that may be outstanding at any time or from time to time may be increased or reduced and
subsequently reborrowed, and that the terms of the First Priority Obligations may be modified,
extended or amended from time to time, and that the aggregate amount of the First Priority
Obligations may be increased, replaced or refinanced, in each event, without notice to or consent
by the Second Priority Secured Parties and without affecting the provisions hereof, but only so
long as, except in the case of any DIP Financing, any such obligations are permitted to be incurred
pursuant to the Second Priority Documents as in effect on the date of this Agreement. The lien
priorities provided in Section 2.1 shall not be altered or otherwise affected by any such
amendment, modification, supplement, extension, repayment, reborrowing, increase, replacement,
renewal, restatement or refinancing of either the First Priority Obligations or the Second Priority
Obligations, or any portion thereof.

 

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     2.3 Agreements Regarding Actions to Perfect Liens. (a) The Second Priority
Representative on behalf of itself and the other Second Priority Secured Parties agrees that UCC-1
financing statements, patent, trademark or copyright filings or other filings or recordings filed
or recorded by or on behalf of the Second Priority Representative shall be in form reasonably
satisfactory to the First Priority Representative.

     (b) The Second Priority Representative agrees on behalf of itself and the other Second
Priority Secured Parties that all mortgages, deeds of trust, deeds and similar instruments
(collectively, “mortgages”) now or hereafter filed against real property in favor of or for the
benefit of the Second Priority Representative and the other Second Priority Secured Parties shall
be in form reasonably satisfactory to the First Priority Representative and shall contain the
following notation: “The lien created by this mortgage on the property described herein is junior
and subordinate to the lien on such property created by any mortgage, deed of trust or similar
instrument now or hereafter granted to the First Priority Representative, and its successors and
assigns, in such property, in accordance with the provisions of the Intercreditor Agreement dated
as of ___________, 20__ among The Bank of New York Mellon., as Collateral Agent, _______________,
as ___________________, ___________________, as the Company, and the other Grantors referred to
therein, as amended from time to time.”

     (c) The First Priority Representative hereby acknowledges that, to the extent that it holds,
or a third party holds on its behalf, physical possession of or “control” (as defined in the
Uniform Commercial Code) over Common Collateral pursuant to the First Priority Security Documents,
such possession or control is also for the benefit of, and the First Priority Representative or
such third party holds such possession or control as bailee and agent for, the Second Priority
Representative and the other Second Priority Secured Parties solely to the extent required to
perfect their security interest in such Common Collateral (such bailment and agency for perfection
being intended, among other things, to satisfy the requirements of Sections 8-301(a)(2) and
9-313(c) of the Uniform Commercial Code). Nothing in the preceding sentence shall be construed to
impose any duty on the First Priority Representative (or any third party acting on its behalf) with
respect to such Common Collateral or provide the Second Priority Representative or any other Second
Priority Secured Party with any rights with respect to such Common Collateral beyond those
specified in this Agreement and the Second Priority Security Documents, provided that
subsequent to the occurrence of the First Priority Obligations Payment Date, the First Priority
Representative shall (i) deliver to the Second Priority Representative, at the Company’s sole cost
and expense, the Common Collateral in its possession or control together with any necessary
endorsements to the extent required by the Second Priority Documents or (ii) direct and deliver
such Common Collateral as a court of competent jurisdiction otherwise directs, and
provided, further, that the provisions of this Agreement are intended solely to
govern the respective Lien priorities as between the First Priority Secured Parties and the Second
Priority Secured Parties and shall not impose on the First Priority Secured Parties any obligations
in respect of the disposition of any Common Collateral (or any proceeds thereof) that would
conflict with prior perfected Liens or any claims thereon in favor of any other Person that is not
a Secured Party.

     2.4 No New Liens. So long as the First Priority Obligations Payment Date has not
occurred, the parties hereto agree that (a) there shall be no Lien, and no Grantor shall have any
right to create any Lien, on any assets of any Grantor securing any Second Priority Obligation if
these same assets are not subject to, and do not become subject to, a Lien securing the First
Priority Obligations and (b) if any Second Priority Secured Party shall acquire or hold any Lien on
any assets of any Grantor securing any Second Priority Obligation which assets are not also subject
to the first-priority Lien of the First Priority

 

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Representative under the First Priority Documents, then the Second Priority Representative,
upon demand by the First Priority Representative, will without the need for any further consent of
any other Second Priority Secured Party, notwithstanding anything to the contrary in any other
Second Priority Document either (i) release such Lien or (ii) assign it to the First Priority
Representative as security for the First Priority Obligations (in which case the Second Priority
Representative may retain a junior lien on such assets subject to the terms hereof). To the extent
that the foregoing provisions are not complied with for any reason, without limiting any other
rights and remedies available to the First Priority Secured Parties, the Second Priority
Representative and the other Second Priority Secured Parties agree that any amounts received by or
distributed to any of them pursuant to or as a result of Liens granted in contravention of this
Section 2.4 shall be subject to Section 4.1.

     SECTION 3. Enforcement Rights.

     3.1 Exclusive Enforcement. Until the First Priority Obligations Payment Date has
occurred, whether or not an Insolvency Proceeding has been commenced by or against any Grantor, the
First Priority Secured Parties shall have the exclusive right to take and continue any Enforcement
Action with respect to the Common Collateral, without any consultation with or consent of any
Second Priority Secured Party, but subject to the provisos set forth in Sections 3.2 and 5.1. Upon
the occurrence and during the continuance of a default or an event of default under the First
Priority Documents, subject to the provisions of such documents, the First Priority Representative
and the other First Priority Secured Parties may take and continue any Enforcement Action with
respect to the First Priority Obligations and the Common Collateral in such order and manner as
they may determine in their sole discretion.

     3.2 Standstill and Waivers. The Second Priority Representative, on behalf of itself
and the other Second Priority Secured Parties, agrees that, until the First Priority Obligations
Payment Date has occurred, subject to the proviso set forth in Section 5.1:

     (a) they will not take or cause to be taken any Enforcement Action;

     (b) they will not take or cause to be taken any action, the purpose or effect of which
is to make any Lien in respect of any Second Priority Obligation pari passu with or senior
to, or to give any Second Priority Secured Party any preference or priority relative to, the
Liens with respect to the First Priority Obligations or the First Priority Secured Parties
with respect to any of the Common Collateral;

     (c) they will not contest, oppose, object to, interfere with, hinder or delay, in any
manner, whether by judicial proceedings (including without limitation the filing of an
Insolvency Proceeding) or otherwise, any foreclosure, sale, lease, exchange, transfer or
other disposition of the Common Collateral by any First Priority Secured Party or any other
Enforcement Action taken (or any forbearance from taking any Enforcement Action) by or on
behalf of any First Priority Secured Party;

     (d) they have no right to (i) direct either the First Priority Representative or any
other First Priority Secured Party to exercise any right, remedy or power with respect to
the Common Collateral or pursuant to the First Priority Security Documents or (ii) consent
or object to the exercise by the First Priority Representative or any other First Priority
Secured Party of any right, remedy or power with respect to the Common Collateral or
pursuant to the First Priority Security

 

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Documents or to the timing or manner in which any such right is exercised or not
exercised (or, to the extent they may have any such right described in this clause (d),
whether as a junior lien creditor or otherwise, they hereby irrevocably waive such right);

     (e) they will not institute any suit or other proceeding or assert in any suit,
Insolvency Proceeding or other proceeding any claim against any First Priority Secured Party
seeking damages from or other relief by way of specific performance, instructions or
otherwise, with respect to, and no First Priority Secured Party shall be liable for, any
action taken or omitted to be taken by any First Priority Secured Party with respect to the
Common Collateral or pursuant to the First Priority Documents; and

     (f) they will not seek, and hereby waive any right, to have the Common Collateral or
any part thereof marshaled upon any foreclosure or other disposition of the Common
Collateral.

provided that in any Insolvency Proceeding commenced by or against any Grantor, the Second
Priority Representative and the Second Priority Secured Parties may take any action expressly
permitted by Section 5.

     3.3 Judgment Creditors. In the event that any Second Priority Secured Party becomes a
judgment lien creditor as a result of its enforcement of its rights as an unsecured creditor, such
judgment lien shall be subject to the terms of this Agreement for all purposes (including in
relation to the First Priority Liens and the First Priority Obligations) to the same extent as all
other Liens securing the Second Priority Obligations are subject to the terms of this Agreement.

     3.4 Cooperation. The Second Priority Representative, on behalf of itself and the
other Second Priority Secured Parties, agrees that each of them shall take such actions as the
First Priority Representative shall reasonably request in connection with the exercise by the First
Priority Secured Parties of their rights set forth herein (at the sole cost and expense of the
Grantors).

     3.5 No Additional Rights For the Grantors Hereunder. Except as provided in Section
3.6, if any First Priority Secured Party or Second Priority Secured Party shall enforce its rights
or remedies in violation of the terms of this Agreement, no Grantor shall be entitled to use such
violation as a defense to any action by any First Priority Secured Party or Second Priority Secured
Party, nor to assert such violation as a counterclaim or basis for set off or recoupment against
any First Priority Secured Party or Second Priority Secured Party.

     3.6 Actions Upon Breach. (a) If any Second Priority Secured Party, contrary to this
Agreement, commences or participates in any action or proceeding against any Grantor or the Common
Collateral, such Grantor, with the prior written consent of the First Priority Secured
Representative, may interpose as a defense or dilatory plea the making of this Agreement, and any
First Priority Secured Party may intervene and interpose such defense or plea in its or their name
or in the name of such Grantor.

     (b) Should any Second Priority Secured Party, contrary to this Agreement, in any way take,
attempt to or threaten to take any action with respect to the Common Collateral (including, without
limitation, any attempt to realize upon or enforce any remedy with respect to this Agreement), or
fail to take any action required by this Agreement, any First Priority Secured Party (in its own
name or in the name of the relevant Grantor) or the relevant Grantor may obtain relief against such
Second Priority Secured Party by injunction, specific performance and/or other appropriate
equitable relief, it being

 

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understood and agreed by the Second Priority Representative on behalf of each Second Priority
Secured Party that (i) the First Priority Secured Parties’ damages from its actions may at that
time be difficult to ascertain and may be irreparable, and (ii) each Second Priority Secured Party
waives any defense that the Grantors and/or the First Priority Secured Parties cannot demonstrate
damage and/or be made whole by the awarding of damages.

     SECTION 4. Application of Proceeds of Common Collateral; Dispositions and Releases
of Common Collateral; Inspection and Insurance.

     4.1 Application of Proceeds; Turnover Provisions. All proceeds of Common Collateral
(including without limitation any interest earned thereon) resulting from the sale, collection or
other disposition of Common Collateral in connection with an Enforcement Action, whether or not
pursuant to an Insolvency Proceeding, shall be distributed as follows: first to the First
Priority Representative for application to the First Priority Obligations in accordance with the
terms of the First Priority Documents, until the First Priority Obligations Payment Date has
occurred and thereafter, to the Second Priority Representative for application in
accordance with the Second Priority Documents. Until the occurrence of the First Priority
Obligations Payment Date, any Common Collateral, including without limitation any such Common
Collateral constituting proceeds, that may be received by any Second Priority Secured Party in
violation of this Agreement shall be segregated and held in trust and promptly paid over to the
First Priority Representative, for the benefit of the First Priority Secured Parties, in the same
form as received, with any necessary endorsements, and each Second Priority Secured Party hereby
authorizes the First Priority Representative to make any such endorsements as agent for the Second
Priority Representative (which authorization, being coupled with an interest, is irrevocable).

     4.2 Releases of Second Priority Lien. (a) Upon any release, sale or disposition of
Common Collateral permitted pursuant to the terms of the First Priority Documents that results in
the release of the First Priority Lien on any Common Collateral (excluding any sale or other
disposition that is expressly prohibited by the Second Priority Agreement as in effect on the date
hereof unless such sale or disposition is consummated in connection with an Enforcement Action or
consummated after the institution of any Insolvency Proceeding), the Second Priority Lien on such
Common Collateral (excluding any portion of the proceeds of such Common Collateral remaining after
the First Priority Obligations Payment Date occurs) shall be automatically and unconditionally
released with no further consent or action of any Person.

     (b) The Second Priority Representative shall promptly execute and deliver such release
documents and instruments and shall take such further actions as the First Priority Representative
shall reasonably request to evidence any release of the Second Priority Lien described in paragraph
(a). The Second Priority Representative hereby appoints the First Priority Representative and any
officer or duly authorized person of the First Priority Representative, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power of attorney in
the place and stead of the Second Priority Representative and in the name of the Second Priority
Representative or in the First Priority Representative’s own name, from time to time, in the First
Priority Representative’s reasonable discretion, for the purposes of carrying out the terms of this
Section 4.2, to take any and all appropriate action and to execute and deliver any and all
documents and instruments as may be necessary or desirable to accomplish the purposes of this
Section 4.2, including, without limitation, any financing statements, endorsements, assignments,
releases or other documents or instruments of transfer (which appointment, being coupled with an
interest, is irrevocable).

 

11

     4.3 Inspection Rights and Insurance. (a) Any First Priority Secured Party and its
representatives and invitees may at any time inspect, repossess, remove and otherwise deal with the
Common Collateral, and the First Priority Representative may advertise and conduct public auctions
or private sales of the Common Collateral, in accordance with the terms of the First Priority
Documents, in each case without notice to, the involvement of or interference by any Second
Priority Secured Party or liability to any Second Priority Secured Party.

     (b) As between the First Priority Representative and the Second Priority Representative,
until the First Priority Obligations Payment Date has occurred, the First Priority Representative
will have the sole and exclusive right (i) to be named as additional insured and loss payee under
any insurance policies maintained from time to time by any Grantor (except that the Second Priority
Representative shall have the right to be named as additional insured and loss payee so long as its
second lien status is identified in a manner satisfactory to the First Priority Representative);
(ii) to adjust or settle any insurance policy or claim covering the Common Collateral in the event
of any loss thereunder and (iii) to approve any award granted in any condemnation or similar
proceeding affecting the Common Collateral.

	 	 	SECTION 5. Insolvency Proceedings.

     5.1 Filing of Motions. Until the First Priority Obligations Payment Date has
occurred, the Second Priority Representative agrees on behalf of itself and the other Second
Priority Secured Parties that no Second Priority Secured Party shall, in or in connection with any
Insolvency Proceeding, file any pleadings or motions, take any position at any hearing or
proceeding of any nature, or otherwise take any action whatsoever, in each case that (a) violates,
or is prohibited by, this Section 5 (or, in the absence of an Insolvency Proceeding, otherwise
would violate or be prohibited by this Agreement), (b) asserts any right, benefit or privilege that
arises in favor of the Second Priority Representative or Second Priority Secured Parties, in whole
or in part, as a result of their interest in the Common Collateral or in the Second Priority Lien
(unless the assertion of such right is expressly permitted by this Agreement) or (c) challenges the
validity, priority, enforceability or voidability of any Liens or claims held by the First Priority
Representative or any other First Priority Secured Party, or the extent to which the First Priority
Obligations constitute secured claims under Section 506(a) of the Bankruptcy Code or otherwise;
provided that the Second Priority Representative may file a proof of claim in an Insolvency
Proceeding, subject to the limitations contained in this Agreement and only if consistent with the
terms and the limitations on the Second Priority Representative imposed hereby.

     5.2 Financing Matters. If any Grantor becomes subject to any Insolvency Proceeding,
and if the First Priority Representative or the other First Priority Secured Parties desire to
consent (or not object) to the use of cash collateral under the Bankruptcy Code or to provide
financing to any Grantor under the Bankruptcy Code or to consent (or not object) to the provision
of such financing to any Grantor by any third party (any such financing, “DIP Financing”), then the
Second Priority Representative agrees, on behalf of itself and the other Second Priority Secured
Parties, that each Second Priority Secured Party (a) will be deemed to have consented to, will
raise no objection to, nor support any other Person objecting to, the use of such cash collateral
or to such DIP Financing, (b) will not request or accept adequate protection or any other relief in
connection with the use of such cash collateral or such DIP Financing except as set forth in
paragraph 5.4 below and (c) will subordinate (and will be deemed hereunder to have subordinated)
the Second Priority Liens (i) to such DIP Financing on the same terms as the First Priority Liens
are subordinated thereto (and such subordination will not alter in any manner the terms of this
Agreement), (ii) to any adequate protection provided to the First Priority Secured Parties and
(iii) to any

 

12

“carve-out” agreed to by the First Priority Representative or the other First Priority Secured
Parties, and (d) agrees that notice received five calendar days prior to the entry of an order
approving such usage of cash collateral or approving such financing shall be adequate notice.

     5.3 Relief From the Automatic Stay. The Second Priority Representative agrees, on
behalf of itself and the other Second Priority Secured Parties, that none of them will seek relief
from the automatic stay or from any other stay in any Insolvency Proceeding or take any action in
derogation thereof, in each case in respect of any Common Collateral, without the prior written
consent of the First Priority Representative.

     5.4 Adequate Protection. The Second Priority Representative, on behalf of itself and
the other Second Priority Secured Parties, agrees that none of them shall object, contest, or
support any other Person objecting to or contesting, (a) any request by the First Priority
Representative or the other First Priority Secured Parties for adequate protection or any adequate
protection provided to the First Priority Representative or the other First Priority Secured
Parties or (b) any objection by the First Priority Representative or any other First Priority
Secured Parties to any motion, relief, action or proceeding based on a claim of a lack of adequate
protection or (c) the payment of interest, fees, expenses or other amounts to the First Priority
Representative or any other First Priority Secured Party under Section 506(b) or 506(c) of the
Bankruptcy Code or otherwise. Notwithstanding anything contained in this Section and in Section
5.2(b) (but subject to all other provisions of this Agreement, including, without limitation,
Sections 5.2(a) and 5.3), in any Insolvency Proceeding, (i) if the First Priority Secured Parties
(or any subset thereof) are granted adequate protection consisting of additional collateral (with
replacement liens on such additional collateral) and superpriority claims in connection with any
DIP Financing or use of cash collateral, and the First Priority Secured Parties do not object to
the adequate protection being provided to them, then in connection with any such DIP Financing or
use of cash collateral the Second Priority Representative, on behalf of itself and any of the
Second Priority Secured Parties, may seek or accept adequate protection consisting solely of (x) a
replacement Lien on the same additional collateral, subordinated to the Liens securing the First
Priority Obligations and such DIP Financing on the same basis as the other Liens securing the
Second Priority Obligations are so subordinated to the First Priority Obligations under this
Agreement and (y) superpriority claims junior in all respects to the superpriority claims granted
to the First Priority Secured Parties, provided, however, that the Second Priority
Representative shall have irrevocably agreed, pursuant to Section 1129(a)(9) of the Bankruptcy
Code, on behalf of itself and the Second Priority Secured Parties, in any stipulation and/or order
granting such adequate protection, that such junior superpriority claims may be paid under any plan
of reorganization in any combination of cash, debt, equity or other property having a value on the
effective date of such plan equal to the allowed amount of such claims and (ii) in the event the
Second Priority Representative, on behalf of itself and the Second Priority Secured Parties, seeks
or accepts adequate protection in accordance with clause (i) above and such adequate protection is
granted in the form of additional collateral, then the Second Priority Representative, on behalf of
itself or any of the Second Priority Secured Parties, agrees that the First Priority Representative
shall also be granted a senior Lien on such additional collateral as security for the First
Priority Obligations and any such DIP Financing and that any Lien on such additional collateral
securing the Second Priority Obligations shall be subordinated to the Liens on such collateral
securing the First Priority Obligations and any such DIP Financing (and all Obligations relating
thereto) and any other Liens granted to the First Priority Secured Parties as adequate protection,
with such subordination to be on the same terms that the other Liens securing the Second Priority
Obligations are subordinated to such First Priority Obligations under this Agreement. The Second
Priority Representative, on behalf of itself and the other Second Priority Secured Parties, agrees

 

13

that except as expressly set forth in this Section none of them shall seek or accept adequate
protection without the prior written consent of the First Priority Representative.

     5.5 Avoidance Issues. If any First Priority Secured Party is required in any
Insolvency Proceeding or otherwise to disgorge, turn over or otherwise pay to the estate of any
Grantor, because such amount was avoided or ordered to be paid or disgorged for any reason,
including without limitation because it was found to be a fraudulent or preferential transfer, any
amount (a “Recovery”), whether received as proceeds of security, enforcement of any right of
set-off or otherwise, then the First Priority Obligations shall be reinstated to the extent of such
Recovery and deemed to be outstanding as if such payment had not occurred and the First Priority
Obligations Payment Date shall be deemed not to have occurred. If this Agreement shall have been
terminated prior to such Recovery, this Agreement shall be reinstated in full force and effect, and
such prior termination shall not diminish, release, discharge, impair or otherwise affect the
obligations of the parties hereto. The Second Priority Secured Parties agree that none of them
shall be entitled to benefit from any avoidance action affecting or otherwise relating to any
distribution or allocation made in accordance with this Agreement, whether by preference or
otherwise, it being understood and agreed that the benefit of such avoidance action otherwise
allocable to them shall instead be allocated and turned over for application in accordance with the
priorities set forth in this Agreement.

     5.6 Asset Dispositions in an Insolvency Proceeding. In an Insolvency Proceeding,
neither the Second Priority Representative nor any other Second Priority Secured Party shall oppose
any sale or disposition of any assets of any Grantor that is supported by the First Priority
Secured Parties, and the Second Priority Representative and each other Second Priority Secured
Party will be deemed to have consented under Section 363 of the Bankruptcy Code (and otherwise) to
any sale supported by the First Priority Secured Parties and to have released their Liens on such
assets.

     5.7 Separate Grants of Security and Separate Classification. Each Secured Party
acknowledges and agrees that (a) the grants of Liens pursuant to the First Priority Security
Documents and the Second Priority Security Documents constitute two separate and distinct grants of
Liens and (b) because of, among other things, their differing rights in the Common Collateral, the
First Priority Obligations and the Second Priority Obligations are fundamentally different from
each other and must be separately classified in any plan of reorganization proposed or adopted in
an Insolvency Proceeding. To further effectuate the intent of the parties as provided in the
immediately preceding sentence, if it is held that the claims of the First Priority Secured Parties
and Second Priority Secured Parties in respect of the Common Collateral constitute only one secured
claim (rather than separate classes of senior and junior secured claims), then the Second Priority
Secured Parties hereby acknowledge and agree that all distributions shall be made as if there were
separate classes of senior and junior secured claims against the Grantors in respect of the Common
Collateral, with the effect being that, to the extent that the aggregate value of the Common
Collateral is sufficient (for this purpose ignoring all claims held by the Second Priority Secured
Parties), the First Priority Secured Parties shall be entitled to receive, in addition to amounts
distributed to them in respect of principal, pre-petition interest and other claims, all amounts
owing in respect of Post-Petition Interest before any distribution is made in respect of the claims
held by the Second Secured Priority Secured Parties. The Second Priority Secured Parties hereby
acknowledge and agree to turn over to the First Priority Secured Parties amounts otherwise received
or receivable by them to the extent necessary to effectuate the intent of the preceding sentence,
even if such turnover has the effect of reducing the claim or recovery of the Second Priority
Secured Parties.

 

14

     5.8 No Waivers of Rights of First Priority Secured Parties. Nothing contained herein
shall prohibit or in any way limit the First Priority Representative or any other First Priority
Secured Party from objecting in any Insolvency Proceeding or otherwise to any action taken by any
Second Priority Secured Party not expressly permitted hereunder, including the seeking by any
Second Priority Secured Party of adequate protection (except as provided in Section 5.4).

     5.9 Other Matters. To the extent that the Second Priority Representative or any
Second Priority Secured Party has or acquires rights under Section 363 or Section 364 of the
Bankruptcy Code with respect to any of the Common Collateral, the Second Priority Representative
agrees, on behalf of itself and the other Second Priority Secured Parties not to assert any of such
rights without the prior written consent of the First Priority Representative unless expressly
permitted to do so hereunder.

     5.10 Effectiveness in Insolvency Proceedings. This Agreement, which the parties
hereto expressly acknowledge is a “subordination agreement” under section 510(a) of the Bankruptcy
Code, shall be effective before, during and after the commencement of an Insolvency Proceeding.

     SECTION 6. Security Documents.

     (a) Each Grantor and the Second Priority Representative, on behalf of itself and the Second
Priority Secured Parties, agrees that it shall not at any time execute or deliver any amendment or
other modification to any of the Second Priority Documents inconsistent with or in violation of
this Agreement.

     (b) Each Grantor and the First Priority Representative, on behalf of itself and the First
Priority Secured Parties, agrees that it shall not at any time execute or deliver any amendment or
other modification to any of the First Priority Documents inconsistent with or in violation of this
Agreement.

     (c) In the event the First Priority Representative enters into any amendment, waiver or
consent in respect of any of the First Priority Security Documents for the purpose of adding to, or
deleting from, or waiving or consenting to any departures from any provisions of, any First
Priority Security Document or changing in any manner the rights of any parties thereunder, then
such amendment, waiver or consent shall apply automatically to any comparable provision of the
Comparable Second Priority Security Document without the consent of or action by any Second
Priority Secured Party (with all such amendments, waivers and modifications subject to the terms
hereof); provided that (other than with respect to amendments, modifications or waivers
that secure additional extensions of credit and add additional secured creditors and do not violate
the express provisions of the Second Priority Agreements), (i) no such amendment, waiver or consent
shall have the effect of removing assets subject to the Lien of any Second Priority Security
Document, except to the extent that a release of such Lien is permitted by Section 4.2, (ii) any
such amendment, waiver or consent that materially and adversely affects the rights of the Second
Priority Secured Parties and does not affect the First Priority Secured Parties in a like or
similar manner shall not apply to the Second Priority Security Documents without the consent of the
Second Priority Representative, (iii) no such amendment, waiver or consent with respect to any
provision applicable to the collateral agent under the Second Priority Documents shall be made
without the prior written consent of such collateral agent and (iv) notice of such amendment,
waiver or consent shall be given to the Second Priority Representative no later than 10 days after
its effectiveness, provided that the failure to give such notice shall not affect the
effectiveness and validity thereof.

 

15

	 	 	SECTION 7. Reliance; Waivers; etc.

     7.1 Reliance. The First Priority Documents are deemed to have been executed and
delivered, and all extensions of credit thereunder are deemed to have been made or incurred, in
reliance upon this Agreement. The Second Priority Representative, on behalf of it itself and the
Second Priority Secured Parties, expressly waives all notice of the acceptance of and reliance on
this Agreement by the First Priority Secured Parties. The Second Priority Documents are deemed to
have been executed and delivered and all extensions of credit thereunder are deemed to have been
made or incurred, in reliance upon this Agreement. The First Priority Representative expressly
waives all notices of the acceptance of and reliance by the Second Priority Representative and the
Second Priority Secured Parties.

     7.2 No Warranties or Liability. The Second Priority Representative and the First
Priority Representative acknowledge and agree that neither has made any representation or warranty
with respect to the execution, validity, legality, completeness, collectibility or enforceability
of any other First Priority Document or any Second Priority Document. Except as otherwise provided
in this Agreement, the Second Priority Representative and the First Priority Representative will be
entitled to manage and supervise their respective extensions of credit to any Grantor in accordance
with law and their usual practices, modified from time to time as they deem appropriate.

     7.3 No Waivers. No right or benefit of any party hereunder shall at any time in any
way be prejudiced or impaired by any act or failure to act on the part of such party or any other
party hereto or by any noncompliance by any Grantor with the terms and conditions of any of the
First Priority Documents or the Second Priority Documents.

     SECTION 8. Obligations Unconditional.

     8.1 First Priority Obligations Unconditional. All rights and interests of the First
Priority Secured Parties hereunder, and all agreements and obligations of the Second Priority
Secured Parties (and, to the extent applicable, the Grantors) hereunder, shall remain in full force
and effect irrespective of:

     (a) any lack of validity or enforceability of any First Priority Document;

     (b) any change in the time, place or manner of payment of, or in any other term of,
all or any portion of the First Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any First Priority Document;

     (c) prior to the First Priority Obligations Payment Date, any exchange, release,
voiding, avoidance or non-perfection of any security interest in any Common Collateral or
any other collateral, or any release, amendment, waiver or other modification, whether by
course of conduct or otherwise, or any refinancing, replacement, refunding or restatement of
all or any portion of the First Priority Obligations or any guarantee or guaranty thereof;
or

     (d) any other circumstances that otherwise might constitute a defense available to, or
a discharge of, any Grantor in respect of the First Priority Obligations, or of any of the
Second Priority Representative, or any Grantor, to the extent applicable, in respect of this
Agreement.

 

16

     8.2 Second Priority Obligations Unconditional. All rights and interests of the Second
Priority Secured Parties hereunder, and all agreements and obligations of the First Priority
Secured Parties (and, to the extent applicable, the Grantors) hereunder, shall remain in full force
and effect irrespective of:

     (a) any lack of validity or enforceability of any Second Priority Document;

     (b) any change in the time, place or manner of payment of, or in any other term of,
all or any portion of the Second Priority Obligations, or any amendment, waiver or other
modification, whether by course of conduct or otherwise, or any refinancing, replacement,
refunding or restatement of any Second Priority Document;

     (c) any exchange, release, voiding, avoidance or non-perfection of any security
interest in any Common Collateral or any other collateral, or any release, amendment, waiver
or other modification, whether by course of conduct or otherwise, or any refinancing,
replacement, refunding or restatement of all or any portion of the Second Priority
Obligations or any guarantee or guaranty thereof; or

     (d) any other circumstances that otherwise might constitute a defense available to, or
a discharge of, any Grantor in respect of the Second Priority Obligations or any First
Priority Secured Party in respect of this Agreement.

	 	 	SECTION 9. Miscellaneous.

     9.1 Conflicts. In the event of any conflict between the provisions of this Agreement
and the provisions of any First Priority Document or any Second Priority Document, the provisions
of this Agreement shall govern. Notwithstanding the foregoing, the parties hereto acknowledge that
the terms of this Agreement are not intended to and shall not, as between the Grantors and the
Secured Parties, negate, waive or cancel any rights granted to, or carry liability or obligation
of, any Grantor in the First Priority Documents and the Second Priority Documents or impose any
additional obligations on the Grantors (other than as expressly set forth herein).

     9.2 Continuing Nature of Provisions. This Agreement shall continue to be effective,
and shall not be revocable by any party hereto, until the First Priority Obligation Payment Date
shall have occurred. This is a continuing agreement and the First Priority Secured Parties and the
Second Priority Secured Parties may continue, at any time and without notice to the other parties
hereto, to extend credit and other financial accommodations, lend monies and provide indebtedness
to, or for the benefit of, Company or any other Grantor on the faith hereof.

     9.3 Amendments; Waivers. (a) No amendment or modification of any of the provisions
of this Agreement shall be effective unless the same shall be in writing and signed by the First
Priority Representative (with the consent of the necessary parties under the First Priority
Agreement) and the Second Priority Representative (with the consent of the necessary parties under
the Second Priority Agreement), and, in the case of amendments or modifications of Sections 3.5,
3.6, 5.2, 5.4, 9.3, 9.5 or 9.6, the Grantors and each waiver, if any, shall be a waiver only with
respect to the specific instance involved and shall in no way impair the rights of the parties
making such waiver or the obligations of the other parties to such party in any other respect or at
any other time. Anything herein to the contrary notwithstanding, no consent of any Grantor shall
be required for amendments, modifications or waivers of any other provisions of this Agreement
other than those that (i) directly affect any obligation or right of

 

17

the Grantors hereunder or under the First Priority Documents or the Second Priority Documents
or that would impose any additional obligations on the Grantors or (ii) change the rights of the
Grantors to refinance the First Priority Obligations or the Second Priority Obligations.

     (b) Notwithstanding the foregoing, without the consent of any First Priority Secured Party or
Second Priority Secured Party, the representative under any Additional First Priority Agreement or
Additional Second Priority Agreement may, by executing a Joinder Agreement in the form of Annex II
hereto, cause such Additional First Priority Agreement or Additional Second Priority Agreement to
be treated as a First Priority Agreement or Second Priority Agreement, respectively, hereunder, and
the obligations evidenced by such Additional First Priority Agreement or Additional Second Priority
Agreement shall be subject to the terms hereof.

     9.4 Information Concerning Financial Condition of the Company and the other Grantors.
The Second Priority Representative and the First Priority Representative hereby agree that no party
shall have any duty to advise any other party of information known to it regarding the financial
condition of the Company and each of the other Grantors or of any such circumstances bearing upon
the risk of nonpayment of the First Priority Obligations or the Second Priority Obligations. In
the event the Second Priority Representative or the First Priority Representative, in its sole
discretion, undertakes at any time or from time to time to provide any information to any other
party to this Agreement, it shall be under no obligation (a) to provide any such information to
such other party or any other party on any subsequent occasion, (b) to undertake any investigation
not a part of its regular business routine, or (c) to disclose any other information.

     9.5 Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York, except as otherwise required by mandatory provisions of law
and except to the extent that remedies provided by the laws of any jurisdiction other than the
State of New York are governed by the laws of such jurisdiction.

     9.6 Submission to Jurisdiction. (a) Each First Priority Secured Party, each Second
Priority Secured Party and each Grantor hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment, and each such party
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 such party 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
any First Priority Secured Party or Second Priority Secured Party may otherwise have to bring any
action or proceeding against any Grantor or its properties in the courts of any jurisdiction.

     (b) Each First Priority Secured Party, each Second Priority Secured Party and each Grantor
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively
do so (i) any objection 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 in any court referred to in paragraph (a)
of this Section and (ii) the defense of an inconvenient forum to the maintenance of such action or
proceeding.

 

18

     (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.7. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

     9.7 Notices. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and may be personally
served, telecopied, or sent by overnight express courier service or United States mail and shall be
deemed to have been given when delivered in person or by courier service, upon receipt of a
telecopy or five days after deposit in the United States mail (certified, with postage prepaid and
properly addressed). For the purposes hereof, the addresses of the parties hereto (until notice of
a change thereof is delivered as provided in this Section) shall be as set forth below each party’s
name on the signature pages hereof, or, as to each party, at such other address as may be
designated by such party in a written notice to all of the other parties.

     9.8 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and each of the First Priority Secured Parties and Second
Priority Secured Parties and their respective successors and permitted assigns, and nothing herein
is intended, or shall be construed to give, any other Person any right, remedy or claim under, to
or in respect of this Agreement or any Common Collateral.

     9.9 Headings. Section headings used herein are for convenience of reference only, are
not part of this Agreement and shall not affect the construction of, or be taken into consideration
in interpreting, this Agreement.

     9.10 Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     9.11 Counterparts; Integration; Effectiveness. 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.
Delivery of an executed counterpart of a signature page of this Agreement by email or telecopy
shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement
shall become effective when it shall have been executed by each party hereto.

     9.12 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

     9.13 Additional Grantors. Each Person that becomes a Grantor after the date hereof
shall become a party to this Agreement upon execution and delivery by such Person of a Joinder
Agreement in the form of Annex 1 hereto.

 

19

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

	 	 	 	 	 	 	 

	 	 	THE BANK OF NEW YORK MELLON, as First Priority Representative
for and on behalf of the First Priority Secured Parties	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 
	 
	 	 	 	 	 	 
	 	 	WILMINGTON TRUST FSB, as Second Priority Representative 

for
and on behalf of the Second Priority Secured Parties	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 
	 
	 	 	 	 	 	 
	 	 	GEOEYE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 

 

20

	 	 	 	 	 	 	 

	 	 	GEOEYE IMAGERY
COLLECTION SYSTEMS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 
	 
	 	 	 	 	 	 
	 	 	GEOEYE SOLUTIONS HOLDCO
INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 
	 
	 	 	 	 	 	 
	 	 	GEOEYE SOLUTIONS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 
	 
	 	 	 	 	 	 
	 	 	I5, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 

 

21

	 	 	 	 	 	 	 

	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 
	 
	 	 	 	 	 	 
	 	 	MJ HARDEN ASSOCIATES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 
	 
	 	 	 	 	 	 
	 	 	GEOEYE LICENSE CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	Attention:	 	 
	 	 	Telecopy No.:	 	 

 

22

ANNEX I

Form of Joinder to Junior Lien Intercreditor Agreement

     The undersigned,                    , a                     , hereby joins in the execution of that certain Junior Lien Intercreditor
Agreement dated as of ___________, 20__ (the “Intercreditor Agreement”), issued and
executed by each Person that is or becomes a Grantor, as applicable, thereunder on and/or after the
date and pursuant to the terms thereof. By executing this Joinder, the undersigned hereby agrees
that it is a Grantor thereunder with the same force and effect as if originally named therein as a
Grantor. The undersigned agrees to be bound by all of the terms and provisions of the
Intercreditor Agreement. Each reference to a Grantor in the Intercreditor Agreement shall be deemed
to include the undersigned. Capitalized terms used but not defined herein shall have the meanings
set forth in the Intercreditor Agreement.

     IN WITNESS WHEREOF, the undersigned has executed this Joinder this ___ day of                                         , 20___.

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address: 	 	 
	 

 

23

ANNEX II

          [FORM OF] JOINDER AGREEMENT dated as of [     ], 20[ ] to the JUNIOR LIEN INTERCREDITOR
AGREEMENT dated as of [     ], 20[ ] (the “Intercreditor Agreement”), among GeoEye, Inc., a
Delaware corporation (“the Company”), certain subsidiaries of the Company (each a “Grantor”), The
Bank of New York Mellon, as First Priority Representative, and __________________, as Second
Priority Representative.

          A. Capitalized terms used herein but not otherwise defined herein shall have the meanings
assigned to such terms in the Intercreditor Agreement.

          B. As a condition to the ability of the Company to incur indebtedness under an [Additional
First Priority Agreement/Additional Second Priority Agreement] and to have such indebtedness
treated as [First Priority Obligations/Second Priority Obligations], pursuant to 

Section 9.3(b)
____________, as representative (the “Additional Representative”) under the [Additional First
Priority Agreement/Additional Second Priority Agreement] is required to execute this Joinder
Agreement in accordance with the requirements of the Intercreditor Agreement.

          Accordingly, the Additional Representative agrees as follows:

          SECTION 1. In accordance with Section 9.3(b) of the Intercreditor Agreement, the Additional
Representative by its signature below hereby agrees that it, on its own behalf and the behalf of
the holders of any indebtedness under the [Additional First Priority Agreement/Additional Second
Priority Agreement] is subject to and bound by, the Intercreditor Agreement, and the Additional
Representative hereby agrees to all the terms and provisions of the Intercreditor Agreement
applicable to any [Additional First Priority Agreement/Additional Second Priority Agreement]. The
Intercreditor Agreement is hereby incorporated herein by reference.

          SECTION 2. The Additional Representative represents and warrants to the First Priority
Representative, the Second Priority Representative, the other First Priority Secured Parties and
the other Second Priority Secured Parties that (i) it has full power and authority to enter into
this Joinder Agreement, in its capacity as [agent] [trustee], (ii) this Joinder Agreement has been
duly authorized, executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with the terms of such Agreement and (iii) the
holders of any indebtedness under the [Additional First Priority Agreement/Additional Second
Priority Agreement] for which it is representative, upon the Additional Representative’s entry into
this Joinder Agreement, will be subject to and bound by the provisions of the Intercreditor
Agreement as [First Lien Secured Parties/Second Lien Secured Parties].

          SECTION 3. This Joinder Agreement may be executed in counterparts, each of which shall
constitute an original, but all of which when taken together shall constitute a single

 

24

contract. This Joinder Agreement shall become effective when the First Priority
Representative and the Second Priority Representative shall have received a counterpart of this
Joinder Agreement that bears the signature of the Additional Representative. Delivery of an
executed signature page to this Joinder Agreement by facsimile transmission shall be effective as
delivery of a manually signed counterpart of this Joinder Agreement.

          SECTION 4. Except as expressly supplemented hereby, the Intercreditor Agreement shall remain
in full force and effect.

          SECTION 5. THIS REPRESENTATIVE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

          SECTION 6. In case any one or more of the provisions contained in this Joinder Agreement
should be held invalid, illegal or unenforceable in any respect, no party hereto shall be required
to comply with such provision for so long as such provision is held to be invalid, illegal or
unenforceable, but the validity, legality and enforceability of the remaining provisions contained
herein and in the Intercreditor Agreement shall not in any way be affected or impaired. The
parties hereto 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.

          IN WITNESS WHEREOF, the parties hereto have duly executed this Joinder Agreement to the
Intercreditor Agreement as of the day and year first above written.

	 	 	 	 	 	 	 

	 	 	[NAME OF ADDITIONAL REPRESENTATIVE],

as [      ] for the holders of	 	 
	 
	 	 	 	 	 	 
	 	 	[                    
                              ],	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Address for notices:exv10w1

Exhibit 10.1

EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT

     This Executive Employment and Severance Agreement (“Agreement”) is entered into as of
September 29, 2010 between Antony Mitchell, an individual residing in the State of Florida (the
“Executive”) and Imperial Holdings, LLC (the “Company”).

     WHEREAS, the Executive is employed by the Company in a key employee capacity and the
Executive’s services are valuable and integral to the conduct of the business of the Company; and

     WHEREAS, the Company intends to convert to a corporation (and following such conversion, the
term “Company” when used herein shall refer to such corporation), and thereafter intends to sell
its common stock to the public pursuant to an effective registration statement filed under the
Securities Act of 1933, as amended (the “IPO”);

     WHEREAS, the Company and the Executive desire to specify the terms and conditions on which the
Executive will continue employment on and after the date of the IPO, and under which the Executive
will receive severance in the event that the Executive separates from service with the Company;

     WHEREAS, the parties intend that this Agreement shall supersede any and all other agreements,
either oral or in writing, between the parties with respect to the employment of the Executive by
the Company, and all such agreements shall be void and of no effect as of the effective date of
this Agreement;

     NOW, THEREFORE, for good and valuable consideration, the parties agree as follows:

     1. Effective Date; Term. This Agreement shall become effective on the closing date of
the Company’s IPO. This Agreement shall remain in effect until December 31, 2013; provided that,
each January 1 , beginning January 1, 2012, this Agreement shall automatically renew for successive
three-year periods unless (a) either party gives the other notice of non-renewal at least ninety
(90) days prior to the beginning of any such three-year renewal period, in which event the
Agreement shall terminate at the end of such three-year renewal period, or (b) the Agreement is
terminated as provided in Section 4. Termination of this Agreement will not affect the rights or
obligations of the parties hereunder arising out of, or relating to, circumstances occurring prior
to the expiration of this Agreement, which rights and obligations will survive the termination of
this Agreement and the termination of Executive’s employment with the Company. Termination of this
Agreement as a result of non-renewal shall not automatically result in the Executive’s termination
of employment from the Company; such Executive’s employment on and after the date of such
termination of this Agreement shall be considered at-will.

     2. Definitions. For purposes of this Agreement, the following terms shall have the
meanings ascribed to them. Additional defined terms are included throughout this Agreement.

     (a) “409A Affiliate” shall mean each entity that is required to be included in the
Company’s controlled group of corporations within the meaning of Code

 

 

Section 414(b), or that is under common control with the Company within the meaning of Code
Section 414(c); provided, however, that the phrase “at least 50 percent” shall be used in
place of the phrase “at least 80 percent” each place it appears therein or in the
regulations thereunder.

     (b) “Accrued Benefits” shall mean the following amounts, payable as described herein:
(i) all base salary for the time period ending with the date of the Executive’s Termination
of Employment; (ii) reimbursement for any and all monies advanced in connection with the
Executive’s employment for reasonable and necessary expenses incurred by the Executive on
behalf of the Company for the time period ending with the date of the Executive’s
Termination of Employment; (iii) except in the event of termination for Cause, a pro rata
portion (determined by dividing the number of days the Executive is employed during the year
through the date of termination by 365) of any annual performance bonus (excluding the Cash
Bonus described in Section 3(c)) payable with respect to the year in which the termination
occurs, based on actual performance results; (iv) any and all other cash earned and vested
through the date of the Executive’s Termination of Employment and deferred at the election
of the Executive or pursuant to any deferred compensation plan then in effect; and (v) all
other payments and benefits to which the Executive (or in the event of the Executive’s
death, the Executive’s surviving spouse or other beneficiary) is entitled on the date of the
Executive’s Termination of Employment under the terms of any benefit plan of the Company,
excluding severance payments under any Company severance policy, practice or agreement in
effect on such date. Payment of Accrued Benefits shall be made promptly in accordance with
the Company’s prevailing practice with respect to clauses (i) and (ii) or, with respect to
clauses (iii), (iv) and (v), pursuant to the terms of the benefit plan or practice
establishing such benefits.

     (c) “Base Salary” shall mean the Executive’s annual base salary from the Company as in
effect from time to time.

     (d) “Board” shall mean the board of directors of the Company or a committee of such
Board authorized to act on its behalf in certain circumstances, including the Compensation
Committee of the Board.

     (e) “Cause” shall mean a good faith finding by the Board that the Executive has done
any of the following: (i) committed any willful, intentional, or grossly negligent act
having the effect of materially injuring the business of the Company; (ii) convicted of or
pled nolo contendere or its equivalent to a felony involving moral turpitude, fraud, theft,
or dishonesty; or (iii) misappropriated or embezzled any property of a material nature of
the Company (whether or not an act constituting a felony or misdemeanor). For purposes of
this subsection (e), no act, or failure to act, on the part of the Executive shall be
considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith
or without reasonable belief that the Executive’s action or omission was in the best
interests of the Company. Any act, or failure to act, based upon authority given pursuant
to a resolution duly adopted by the Board or based upon the advice of counsel for the
Company (or any act which the Executive omits to do because of the Executive’s reasonable
belief that such act would violate law or the Company’s standards of ethical

2

 

conduct in its corporate policies) shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of the Company.
The termination of employment of the Executive shall not be deemed to be for Cause unless
and until (A) within a reasonable period of time prior to the Board meeting at which the
Board will determine whether Cause exists, the Executive is provided written notice of such
meeting and, unless prohibited by law, a reasonable opportunity to review prior to such
meeting all information to be presented to the Board with respect to whether Cause exists,
(B) the Executive is afforded the opportunity, together with counsel for the Executive, to
be heard before the Board, (C) there shall have been delivered to the Executive a copy of a
resolution duly adopted by the affirmative vote of not less than three-quarters of the
entire membership of the Board at a meeting of the Board called and held for such purpose
finding that, in the good faith opinion of the Board, the Executive committed the conduct
that constitutes Cause and specifying the particulars thereof in detail, and (D) if the
conduct or act alleged to provide grounds for the Executive’s termination for Cause is
curable in the discretion of the Board, the Executive has not cured such conduct within
thirty (30) days from the date of receiving a copy of the resolution adopted by the Board.

     (f) “Code” shall mean the Internal Revenue Code of 1986, as interpreted by rules and
regulations issued pursuant thereto, all as amended and in effect from time to time. Any
reference to a specific provision of the Code shall be deemed to include reference to any
successor provision thereto.

     (g) “Confidential Information” shall mean ideas, information, knowledge and
discoveries, whether or not patentable, that are not generally known in the trade or
industry and about which the Executive has knowledge as a result of his or her past, present
or future participation in the business of the Company and/or his or her past, present or
future employment with or other relationship with the Company , including without
limitation: products engineering information; marketing, sales, distribution, pricing and
bid process information; product specifications; manufacturing procedures; methods; business
plans; strategic plans; marketing plans; internal memoranda; formulae; trade secrets;
know-how; research and development programs and data; inventions; improvements; designs;
sales methods; customer or prospective customer, supplier, sales representative, distributor
and licensee lists; mailing lists; customer usages and requirements; computer programs;
employee compensation information; employee performance evaluations and employment-related
personnel information; and other confidential technical or business information and data.

     (h) “Competing Organization” shall mean any person (including, without limitation, the
Executive as a sole proprietor) or entity engaged in or planning or attempting to become
engaged in any business that engages in premium finance of life insurance, life settlements
or structured settlements within the United States of America and/or within 100 miles of any
offices of the Company or client of the Company, in each case, established at the time of
Executive’s termination of employment.

     (i) “Disability” shall mean any medically determinable physical or mental impairment
that (i) renders the Executive unable to perform the duties of his position with

3

 

the Company, and (ii) can be expected to result in death or can be expected to last for
a continuous period of not less than 12 months, all as certified by a physician reasonably
acceptable to the Company.

     (j) “Company” shall mean Imperial Holdings, LLC, its subsidiaries, its affiliates, its
successors, and its parents.

     (k) “General Release” shall mean a release of all claims that the Executive, and anyone
who may succeed to any claims of the Executive, has or may have against the Company, its
board of directors, any of its subsidiaries or affiliates, or any of their employees,
directors, officers, employees, agents, plan sponsors, administrators, successors,
fiduciaries, or attorneys, arising out of the Executive’s employment with, and termination
of employment from, the Company, but excluding claims for (i) severance payments and
benefits due pursuant to Section 5 of this Agreement, (ii) Accrued Benefits, (iii) any and
all rights the Executive has to be indemnified and held harmless as an officer of the
Company under law, the Company’s charter, bylaws, or other governing instruments or this
Agreement, and related rights as an insured under any insurance policies obtained by an
Company in connection therewith, and (iv) any and all rights the Executive may have in a
capacity other than as an employee, officer or director. The General Release shall be in a
form that is reasonably acceptable to the Company or the Board.

     (l) “Good Reason” shall mean the occurrence of any of the following without the consent
of the Executive: (i) a material diminution in the Executive’s Base Salary; (ii) a material
diminution in the Executive’s authority, duties or responsibilities; (iii) a material
diminution in the authority, duties or responsibilities of the supervisor to whom the
Executive is required to report, including a requirement that the Executive report to a
corporate officer or employee instead of reporting directly to the board of directors of the
Company; (iv) a material change in the geographic location at which the Executive is
primarily performing services; or (v) a breach by the Company of any material provision of
this Agreement. Notwithstanding the foregoing, the Company’s non-renewal of this Agreement
pursuant to Section 1(a) shall not constitute Good Reason.

     (m) “Separation from Service” shall mean the Executive’s Termination of Employment, or
if the Executive continues to provide services to the Company or its 409A Affiliates
following his or her Termination of Employment, such later date as is considered a
separation from service from the Company and its 409A Affiliates within the meaning of Code
Section 409A. Specifically, if the Executive continues to provide services to the Company
or a 409A Affiliate in a capacity other than as an employee, such shift in status is not
automatically a Separation from Service.

     (n) “Severance Payment” shall mean an aggregate amount equal to three times (3x) the
sum of (i) the Executive’s Base Salary in effect at the time of the Executive’s Termination
of Employment (or the Base Salary in effect immediately prior to reduction if such reduction
was a Good Reason for the Executive’s termination) and (ii) the average of the annual cash
bonuses earned by the Executive with respect to each

4

 

of the three completed fiscal years of the Company preceding the year in which the
Executive’s Termination of Employment occurs (or, in the event the Executive’s Termination
of Employment occurs prior to the completion of three fiscal years following the Effective
Date, the Executive’s Base Salary in effect at the time of the Executive’s termination of
employment).

     (o) “Severance Period” shall mean a twenty-four (24) month period.

     (p) “Termination of Employment” shall be presumed to occur when the Company and the
Executive reasonably anticipate that no further services will be performed by the Executive
for the Company and its 409A Affiliates or that the level of bona fide services the
Executive will perform as an employee of the Company and its 409A Affiliates will
permanently decrease to no more than twenty percent (20%) of the average level of bona fide
services performed by the Executive (whether as an employee or independent contractor) for
the Company and its 409A Affiliates over the immediately preceding 36-month period (or such
lesser period of services). Whether the Executive has experienced a Termination of
Employment shall be determined by the Company in good faith and consistent with Code Section
409A. Notwithstanding the foregoing, if the Executive takes a leave of absence for purposes
of military leave, sick leave or other bona fide reason, the Executive will not be deemed to
have experienced a Termination of Employment for the first six (6) months of the leave of
absence, or if longer, for so long as the Executive’s right to reemployment is provided
either by statute or by contract, including this Agreement; provided that if the leave of
absence is due to a medically determinable physical or mental impairment that can be
expected to result in death or last for a continuous period of not less than six (6) months,
where such impairment causes the Executive to be unable to perform the duties of his or her
position of employment or any substantially similar position of employment, the leave may be
extended by the Company for up to twenty-nine (29) months without causing a Termination of
Employment.

     3. Employment of the Executive

     (a) Position.

     (i) The Executive shall serve in the position of Chief Executive Officer of the
Company in a full-time capacity. In such position, the Executive shall have such
duties and authority as is customarily associated with such position and shall have
such other titles and duties, consistent with the Executive’s position, as may be
assigned from time to time by the Board.

     (ii) The Executive will devote the Executive’s best efforts to the performance
of the Executive’s duties hereunder and will not engage in any other business,
profession or occupation for compensation or otherwise which would materially
interfere with the rendition of such services, either directly or indirectly,
without the prior written consent of the Board; provided that nothing herein shall
preclude the Executive, subject to the approval of the Board, from accepting
appointment to or continue to serve on any board of directors or trustees of any
business, profession, or occupation or any charitable organization; further

5

 

provided in each case, and in the aggregate, that such activities do not
materially interfere with the performance of the Executive’s services, either
directly or indirectly, or conflict with Section 6.

     (iii) The Executive warrants and represents to the Company that, to the best of
Executive’s knowledge and belief, the Executive is not subject to any employment,
consulting or services agreement, or any restrictive covenants or agreements of any
type, including, without limitation, any non-solicit and/or non-compete agreements,
which would prohibit the Executive from properly carrying out the Executive’s duties
as described under the terms of this Agreement.

     (b) Base Salary. The Company shall pay the Executive a Base Salary at the annual rate
of Five Hundred Twenty-Five Thousand Dollars ($525,000), payable in regular installments in
accordance with the Company’s usual payroll practices. The Executive shall be entitled to
such increases in the base salary, if any, as may be determined from time to time by the
Board. At no time, shall Executive’s Base Salary be less than Five Hundred Twenty-Five
Thousand Dollars ($525,000).

     (c) Bonus Incentives. The Executive shall be entitled to participate in such long-term
cash and equity incentive plans and programs of the Company, and effective for 2014 and
later calendar years, in such annual incentive plans, as are generally provided to the
senior executives of the Company as determined by the Board from time to time. With respect
to the 2011 through 2013 calendar years only, and in lieu of any annual cash incentive plan
for which Executive would otherwise be entitled during such period, the Executive shall
receive a cash bonus equal to 0.6% of the Company’s pre-tax income (i.e., the Company’s net
revenues determined on a consolidated basis, also known as earnings before taxes) (the “Cash
Bonus”) if the Company’s pre-tax income thresholds with respect to the relevant year as set
forth on Exhibit A are met. Notwithstanding the foregoing, the maximum Cash Bonus payable
with respect to any year shall not exceed an amount equal to three times (3x) Executive’s
Base Salary as in effect on the last day of such year. Such Cash Bonus shall be paid no
earlier than January 1 and no later than March 15th of the calendar year
following the calendar year in which it was earned. The Executive shall be entitled to the
Cash Bonus so long as the Executive was employed on December 31st of the calendar
year in which the Cash Bonus was earned. The provisions of this subsection (c) regarding
the Cash Bonus shall be considered a material provision of this Agreement.

     (d) Employee Benefits. The Executive shall be entitled to participate in the Company’s
employee benefit plans as in effect from time to time on the same basis as those benefits
are generally made available to other salaried employees of the Company.

     (e) Business Expenses. The reasonable business expenses incurred by the Executive in
the performance of the Executive’s duties hereunder shall be reimbursed by the Company in
accordance with the Company policies. Any reimbursements by the Company to the Executive of
any eligible expenses under this Agreement that are not excludable from the Executive’s
income for Federal income tax purposes (the “Taxable Reimbursements”) shall be made by no
later than the earlier of the date on which they

6

 

would be paid under the Company’s normal policies and the last day of the taxable year
of the Executive following the year in which the expense was incurred. The amount of any
Taxable Reimbursements during any taxable year of the Executive shall not affect the
expenses eligible for reimbursement, or in-kind benefits to be provided, in any other
taxable year of the Executive (except for any life-term or other aggregate limitation
applicable to medical expenses). The right to Taxable Reimbursement shall not be subject to
liquidation or exchange for another benefit.

     4. Termination of Employment. The Executive’s employment with the Company will
terminate during the term of the Agreement, and this Agreement will terminate on the date of such
termination, as follows:

     (a) Death. The Executive’s employment will terminate upon the Executive’s death.

     (b) Disability. If the Executive is Disabled, and if within thirty (30) days after the
Company notifies the Executive in writing that it intends to terminate the Executive’s
employment, the Executive shall not have returned to the performance of the Executive’s
duties hereunder on a full-time basis, the Company may terminate the Executive’s employment,
effective immediately following the end of such thirty-day period.

     (c) By Company. The Company may terminate the Executive’s employment with or without
Cause (other than as a result of Disability which is governed by subsection (b)). If the
termination is without Cause, the Executive’s employment will terminate on the date
specified in the written notice of termination. If the termination is for Cause, then the
Executive’s employment will terminate on the date that the all of the conditions set forth
in Section 2(e) have been satisfied. Unless otherwise directed by the Company, from and
after the date of the written notice of proposed termination, the Executive shall be
immediately relieved of his or her duties and responsibilities and shall be considered to be
on a paid leave of absence pending any final action by the Board confirming such proposed
termination.

     (d) By Executive. The Executive may terminate his or her employment with the Company
for or without Good Reason by providing written notice of termination to the Company as
follows:

     (i) If the Executive is alleging a termination for Good Reason, the Executive
must provide written notice to the Company specifying in reasonable detail the
existence of the condition constituting Good Reason (or the cumulative conditions
constituting Good Reason) within ninety (90) days of the existence of such condition
(or the existence of the final condition that, on a cumulative basis, results in
Good Reason), and the Company must have a period of at least ten (10) days (the
“Cure Period”) following receipt of such notice to cure such condition. If such
condition is not cured by the Company within such ten (10)day period, the
Executive’s termination of employment from the Company shall be effective on the
date immediately following the end of such cure period, unless the Executive

7

 

elects to rescind his or her notice of termination prior to the end of such ten
(10)day period, in which case the Executive shall be deemed to waive his or her
right to terminate employment for Good Reason with respect to such specific
condition. If such condition is cured by the Company within such ten (10)day
period, the Executive may rescind such notice of termination by providing written
notice thereof to the Company prior to the five (5)day period following the Cure
Period; provided that if the Executive does not timely rescind such notice of
termination, then the Executive’s termination will be deemed to be without Good
Reason.

     (ii) If the Executive is not alleging a termination for Good Reason, the
Executive must provide written notice to the Company at least thirty (30) days prior
to the effective date of such termination.

     5. Payments upon Termination.

     (a) Entitlement to Severance. Subject to the other terms and conditions of this
Agreement, the Executive shall be entitled to the Accrued Benefits, and to the Severance
Payment described in subsection (c), in either of the following circumstances while this
Agreement is in effect:

     (i) The Executive’s employment is terminated by the Company without Cause
(except in the case of death or Disability); or

     (ii) The Executive terminates his or her employment for Good Reason.

If the Executive dies after receiving a notice by the Company that the Executive is being
terminated without Cause, or after providing notice of termination for Good Reason, then the
Executive’s estate, heirs and beneficiaries shall be entitled to the Accrued Benefits and
the severance benefits described in subsection (c) at the same time such amounts would have
been paid or benefits provided to the Executive had he or she lived.

     (b) General Release Requirement. As an additional prerequisite for receipt of the
severance benefits described in subsection (c), the Executive must execute, deliver to the
Company, and not revoke (to the extent the Executive is allowed to do so) a General Release
within forty-five (45) days of the date of the Executive’s Termination of Employment.

     (c) Severance Benefit; Timing and Form of Payment.

     (i) Subject to the limitations imposed by paragraph (ii) hereof and Section 5,
if the Executive is entitled to the Severance Payment, then the Company shall pay
the Executive the Severance Payment in equal installments in accordance with the
Company’s usual payroll practices during the Severance Period starting forty-six
(46) days following the Executive’s Separation from Service.

8

 

     (ii) Notwithstanding the foregoing, if the Executive is considered a “specified
employee” within the meaning of Code Section 409A as of the date of his Separation
from Service, then any installment payments that would have been paid during first
six months following the Executive’s Separation from Service shall be delayed and
paid in a single sum (without interest thereon) on the first day of the seventh
month following the Executive’s Separation from Service. Thereafter, payment of the
Severance Payment shall continue pursuant to the payment scheduled described in
paragraph (i).

This paragraph (ii) shall not apply, however, if on the date of the Executive’s
Separation from Service, the Executive is either not considered a “specified
employee” within the meaning of Code Section 409A or the Company is not considered a
public company within the meaning of Code Section 409A.

     (d) Other Termination of Employment. If the Executive’s employment terminates for any
reason other than those described in subsection (a), the Executive (or the Executive’s
estate in the event of his or her death), shall be entitled to receive only the Accrued
Benefits.

     6. Limitations on Severance Payment and Other Payments or Benefits.

     (a) Limitation on Payments. Notwithstanding any provision of this Agreement, if any
portion of the Severance Payment or any other payment under this Agreement, or under any
other agreement with the Executive or plan of the Company or its affiliates (in the
aggregate, “Total Payments”), would constitute an “excess parachute payment” and would, but
for this Section 6, result in the imposition on the Executive of an excise tax under Code
Section 4999, then the Total Payments to be made to the Executive shall either be (i)
delivered in full, or (ii) delivered in such amount so that no portion of such Total Payment
would be subject to the Excise Tax, whichever of the foregoing results in the receipt by the
Executive of the greatest benefit on an after-tax basis (taking into account the applicable
federal, state and local income taxes and the Excise Tax).

     (b) Determination of Limit. Within forty (40) days following a termination of
employment or notice by one party to the other of its belief that there is a payment or
benefit due the Executive that will result in an excess parachute payment, the Executive and
the Company, at the Company’s expense, shall obtain the opinion (which need not be
unqualified) of a nationally recognized tax counsel (“National Tax Counsel”) selected by the
Company (which may be regular outside counsel to the Company), which opinion sets forth (i)
the amount of the Base Period Income (as defined below), (ii) the amount and present value
of the Total Payments, (iii) the amount and present value of any excess parachute payments
determined without regard to any reduction of Total Payments pursuant to subsection (a), and
(iv) the net after-tax proceeds to the Executive, taking into account the tax imposed under
Code Section 4999 if (x) the Total Payments were reduced in accordance with subsection (a)
or (y) the Total Payments were not so reduced. The opinion of National Tax Counsel shall be
addressed to the Company and the Executive and shall be binding upon the Company and the
Executive. If such National Tax Counsel

9

 

opinion determines that subsection (a)(ii) above applies, then the Termination Payment
hereunder or any other payment or benefit determined by such counsel to be includable in
Total Payments shall be reduced or eliminated so that under the bases of calculations set
forth in such opinion there will be no excess parachute payment. In such event, payments or
benefits included in the Total Payments shall be reduced or eliminated by applying the
following principles, in order: (1) the payment or benefit with the higher ratio of the
parachute payment value to present economic value (determined using reasonable actuarial
assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio;
(2) the payment or benefit with the later possible payment date shall be reduced or
eliminated before a payment or benefit with an earlier payment date; and (3) cash payments
shall be reduced prior to non-cash benefits; provided that if the foregoing order of
reduction or elimination would violate Code Section 409A, then the reduction shall be made
pro rata among the payments or benefits included in the Termination Payments (on the basis
of the relative present value of the parachute payments).

     (c) Definitions and Assumptions. For purposes of this Agreement: (i) the terms “excess
parachute payment” and “parachute payments” shall have the meanings assigned to them in Code
Section 280G and such “parachute payments” shall be valued as provided therein; (ii) present
value shall be calculated in accordance with Code Section 280G(d)(4); (iii) the term “Base
Period Income” means an amount equal to the Executive’s “annualized includible compensation
for the base period” as defined in Code Section 280G(d)(1); (iv) for purposes of the opinion
of National Tax Counsel, the value of any noncash benefits or any deferred payment or
benefit shall be determined by the Company’s independent auditors in accordance with the
principles of Code Sections 280G(d)(3) and (4), which determination shall be evidenced in a
certificate of such auditors addressed to the Company and the Executive; and (v) the
Executive shall be deemed to pay federal income tax and employment taxes at the highest
marginal rate of federal income and employment taxation, and state and local income taxes at
the highest marginal rate of taxation in the state or locality of the Executive’s domicile
(determined in both cases in the calendar year in which the termination of employment or
notice described in subsection (b) above is given, whichever is earlier), net of the maximum
reduction in federal income taxes that may be obtained from the deduction of such state and
local taxes.

     (d) Reasonableness of Compensation. If such National Tax Counsel so requests in
connection with the opinion required by this Section 6, the Executive and the Company shall
obtain, at the Company’s expense, and the National Tax Counsel may rely on, the advice of a
firm of recognized executive compensation consultants as to the reasonableness of any item
of compensation to be received by the Executive solely with respect to its status under Code
Section 280G.

     (e) Indemnification. The Company agrees to bear all costs associated with, and to
indemnify and hold harmless, the National Tax Counsel of and from any and all claims,
damages, and expenses resulting from or relating to its determinations pursuant to this
Section 6, except for claims, damages or expenses resulting from the gross negligence or
willful misconduct of such firm.

10

 

     (f) Changes to Code Section. This Section 6 shall be amended to comply with any
amendment or successor provision to Sections 280G or 4999 of the Code. If such provisions
are repealed without successor, then this Section 5 shall be cancelled without further
effect.

     7. Covenants by the Executive.

     (a) Confidential Information. All Confidential Information shall be deemed to have
been received by the Executive as an employee of the Company. During the term of
Executive’s employment, Executive will not directly or indirectly use or disclose any
Confidential Information or trade secret (as defined under applicable law) of the Company
except in the interest and for the benefit of the Company. After the end, for whatever
reason, of Executive’s employment with the Company, Executive will not directly or
indirectly use or disclose any trade secret of the Company. If Executive is entitled to
the Severance Payment hereunder, then for the Severance Period beginning on the date of the
Executive’s termination, Executive will not directly or indirectly (i) disclose any
Confidential Information to any person or entity, (ii) use any Confidential Information for
any purpose, (iii) duplicate any Confidential Information for any purpose or (iv) remove any
Confidential Information from the facilities or premises of the Company for any purpose,
except to the extent such action is for the exclusive benefit of the Company, as applicable,
and as it or they may direct or is necessary to fulfill the Executive’s continuing duties as
an employee of or consultant to the Company. Notwithstanding the foregoing, the Executive
may disclose Confidential Information at such times, in such manner and to the extent such
disclosure is required by court order or lawful non-collusive subpoena, provided that the
Executive (x) provides the Company with prior ten (10) day written notice of such
anticipated disclosure so as to permit the affected Company to seek a protective order or
other appropriate remedy, (y) limits such disclosure to what is strictly required and (z)
attempts to preserve the confidentiality of any such Confidential Information so disclosed.

     (b) Return of Property. All memoranda, notes, records, papers, tapes, disks, programs
or other property of any nature whatsoever and all copies thereof relating to the operations
or business of the Company, some of which may be prepared by the Executive, and all objects
associated therewith in any way obtained by him shall be, unless otherwise agreed to in
writing, the sole property of the Company. Upon his or her termination of employment, the
Executive shall deliver to the Company all of the aforementioned documents and objects, if
any, that may be in his or her possession, and cooperate with the Company to destroy and/or
delete any electronically stored copies of the aforementioned documents and objects, if any,
at any time at the request of the Company.

     (c) Noncompetition. During the term of the Executive’s employment with the Company,
and if Executive is entitled to the Severance Payment then for the Severance Period
beginning on the date of the Executive’s termination of employment from the Company, the
Executive shall not directly or indirectly, without the prior written consent of the Board:

11

 

     (i) own or control, whether as a shareholder (other than a less than five
percent (5%) shareholder in a corporation or other entity whose securities are
traded on a recognized stock exchange or traded on the over the counter market),
member, partner, director or otherwise, or manage, operate, be employed or
compensated by, or consult with (whether or not compensated), whether as an officer,
executive, consultant or otherwise, any Competing Organization, in any capacity
where the Executive’s knowledge of Confidential Information or involvement with or
knowledge of relationships with customers of the Company would be useful or
beneficial, or where the goodwill of the Company would be considered useful or
beneficial to such Competing Organization or would be affected; or

     (ii) undertake any action, on behalf of any Competing Organization relating to
the sale or marketing of products or services that compete with products or services
researched, developed, designed, manufactured, assembled, produced, marketed,
distributed, sold, repaired or provided by the Company, or, to the extent the
Executive has or receives notice or knowledge of such plans, within the active
research, development, expansion or business plans of the Company, to any customers
or prospective customers of the Company which the Executive had knowledge, or with
respect to which the Executive obtained Confidential Information, or with whom the
Executive had personal contact or communications in his capacity as an employee of
the Company, at any time during his period of employment with the Company.

     (d) Nonsolicitation. During the Executive’s employment with the Company, and if
Executive is entitled to the Severance Payment then for the Severance Period beginning on
the date of the Executive’s termination of employment from the Company, the Executive shall
not directly or indirectly, without the prior written consent of the Company, solicit,
induce or otherwise offer employment or engagement as an independent contractor to, or
engage in discussions regarding employment or engagement as an independent contractor with,
any person who served as an employee, commissioned salesperson or consultant of, or who
performed similar services for, the Company during the Executive’s employment with the
Company prior to or during the Executive’s period of employment, unless such person has been
separated from his or her employment, engagement or other relationship with the Company for
a period of six (6) consecutive months.

     (e) Nonsolicitation of Clients and Vendors. During the Executive’s employment with the
Company and if Executive is entitled to the Severance Payment then for the Severance Period
beginning on the date of the Executive’s termination of employment from the Company, the
Executive shall not directly or indirectly, without the prior written consent of the
Company, solicit any existing client of the Company (at the time of the Executive’s
termination of employment) to terminate and/or cancel the client’s relationship with the
Company. Further, during the Executive’s employment with the Company and if Executive is
entitled to the Severance Payment then for the Severance Period beginning on the date of the
Executive’s termination of employment from the Company, the Executive shall not directly or
indirectly, without the prior written

12

 

consent of the Company, solicit any existing vendor of the Company (at the time of the
Executive’s termination of employment) to terminate and/or cancel the vendor’s relationship
with the Company.

     (f) Remedies Not Exclusive. In the event that either the Company or the Executive
breaches any terms of this Agreement, the Company and Executive acknowledge and agree that
said breach may result in immediate and irreparable harm and that damages, if any, and
remedies of law for such breach may be inadequate and indeterminable. The Company or the
Executive, shall therefore be entitled (in addition to and without limiting any other
remedies that may be sought under this Agreement or otherwise at law or in equity) to seek
from any court of competent jurisdiction equitable relief by way of temporary or permanent
injunction and without being required to post a bond, and for such further relief as the
court may deem just or proper in law or equity. Further, in the event of litigation related
to or arising under this Agreement, and subject to Sections 8 and 9 of this Agreement, the
prevailing party shall recover from the other his/its attorneys fees and costs and other
expenses in adjudicating and/or enforcing his/its rights under this Agreement (including any
appeals) .

     (g) Severability of Provisions. If any restriction, limitation, or provision of this
Section 7 is deemed to be unreasonable, onerous, or unduly restrictive by a court of
competent jurisdiction, it shall not be stricken in its entirety and held totally void and
unenforceable, but shall remain effective to the maximum extent possible within the bounds
of the law. If any phrase, clause or provision of this Section 7 is declared invalid or
unenforceable by a court of competent jurisdiction, such phrase, clause, or provision shall
be deemed severed from this Section 7, but will not affect any other provision of this
Section 7, which shall otherwise remain in full force and effect. The provisions of this
Section 7 are each declared to be separate and distinct covenants by the Executive.

     (h) Payment by Company. If the Executive is not entitled to the Severance Payment
hereunder, the Company may elect to pay the Executive such Severance Payment at the times
otherwise contemplated herein, and in such event the Executive will be bound by the
covenants contained herein for so long as the Company makes such payments; provided that the
Executive’s compliance with Section 7(b) is not conditioned on the Executive’s receipt of
the Severance Payment. If the Company ceases to make any Severance Payments under this
subsection (g), the Executive shall cease to be obligated to comply with the covenants
contained in this Section 7 (other than Section 7(b)); provided that in all cases, Executive
shall continue to be prohibited from directly or indirectly using or disclosing any trade
secret of the Company.

     8. Indemnification. With respect to the Executive’s acts or failures to act during his
or her employment in his or her capacity as an officer, employee or agent of the Company or any of
its affiliates, the Executive shall be entitled to indemnification from the Company, and to
liability insurance coverage (if any) on the same basis as other officers of the Company. Executive
shall be fully indemnified by Company, and Company shall pay Executive’s related expenses
(including attorneys’ fees and expert costs) when and as incurred, all to the fullest extent
permitted by law. Notwithstanding the foregoing, Executive shall not be entitled to any
indemnification if a final judgment or other final adjudication establishes that any act or

13

 

omission of Executive was material to the cause of action so adjudicated and that such act or
omission constituted: (a) a criminal violation, unless Executive had reasonable cause to believe
that Executive’s conduct was lawful or had no reasonable cause to believe that such conduct was
unlawful, (b) a transaction from which Executive personally derived an improper financial benefit
that was not disclosed to the Company, or (c) willful misconduct or a conscious and reckless
disregard for the best interests of the Company. In addition, if the Executive is adjudged not
entitled to indemnification, then he shall repay to the Company the aggregate of all expenses paid
by the Company on his behalf under this Section 8 with respect to the act or omission for which
indemnification is not available. The termination of any action, suit, or proceeding by judgment,
order, settlement, conviction or plea of nolo contendre or its equivalent, shall not of itself,
create a presumption that the Executive had no reasonable cause to believe that his conduct was
lawful. The indemnification provided in this Section shall not be deemed exclusive and shall be in
addition to any other indemnification rights and/or remedies to which the Executive might be
entitled to under the law, another agreement or otherwise.

     9. Reimbursement and Advancement of Fees. The Company agrees to pay, to the fullest
extent permitted by law, all legal fees and expenses which the Executive may incur as a result of
any action, suit, or proceeding (regardless of the outcome thereof) by the Company, the Executive
or others of the validity or enforceability of, or liability under, any provision of this Agreement
or any guarantee of performance thereof (including as a result of any contest by the Executive
about the amount of any payment due pursuant to this Agreement), plus in each case interest on any
delayed payment at the Prime Rate, compounded quarterly. Any legal fees and expenses incurred by
the Executive shall be paid by the Company in advance of the final disposition of any such suit,
action or proceeding. The advancement of legal fees and expenses must be timely paid by the
Company directly to the Executive’s attorneys or other vendors within thirty (30) days of having
received an invoice from an attorney or vendor and shall be based on the following conditions:

     (a) The Company will not be provided with detailed invoices regarding the legal fees
and expenses incurred by the Executive. With respect to legal fees, any invoice provided to
the Company will only include the number of hours worked by each attorney, the hourly
billable rate for each attorney and a general description of the work being performed during
each month. With respect to vendors, including but not limited to experts, the Company
shall not be entitled to the names of any vendor but only a general description of the work
being performed by the vendor during each month. Any invoices submitted to the Company will
not include any information that the Executive’s attorneys consider in their sole discretion
to be confidential, including but not limited to information protected by the
attorney-client privilege and/or the work product privilege. The Company agrees that any
information provided by the Executive regarding legal fees and expenses shall be kept
strictly confidential and shall not be disclosed without the Executive’s written consent;

     (b) The Executive will be entitled to receive advances until the Executive has
exhausted every right to appeal. The Company will be required to pay the full expenses
associated with “fees on fees” in the event the Executive is required to enforce the
indemnification rights contained in Sections 8 and 9 of this Agreement;

14

 

     (c) The indemnification and advancement obligations contained within Sections 8 and 9
shall apply to any civil, administrative, or criminal suit, action or proceeding, regardless
of whether such suit, action or proceeding occurs in a court, administrative, or arbitral
forum; and

     (d) The advancement obligations shall apply even if the Company institutes a suit,
action or proceeding against the Executive, including but not limited to any shareholders’
derivative action.

If the Company is the prevailing party, then the Executive must repay the Company the aggregate of
all expenses advanced or reimbursed by the Company on his behalf under this Section 9.

     10. Compliance with Code Section 409A.

     (a) The Company and the Executive intend the terms of this Agreement to be in
compliance with Code Section 409A. The Company does not guarantee the tax treatment or tax
consequences associated with any payment or benefit, including but not limited to
consequences related to Code Section 409A. To the maximum extent permissible, any ambiguous
terms of this Agreement shall be interpreted in a manner that avoids a violation of Code
Section 409A.

     (b) If the Executive believes he or she is entitled to a payment or benefit pursuant to
the terms of this Agreement that was not timely paid or provided, and such payment or
benefit is considered deferred compensation subject to the requirements of Code Section
409A, the Executive acknowledges that to avoid an additional tax on such payment or benefit
pursuant to the provisions of Code Section 409A, the Executive must make a reasonable, good
faith effort to collect such payment or benefit no later than ninety (90) days after the
latest date upon which the payment could have been timely made or benefit timely provided
without violating Code Section 409A, and if not paid or provided, must take further
enforcement measures within one hundred eighty (180) days after such latest date.

     (c) Neither the Company nor the Executive, individually or in combination, may
accelerate any payment or benefit that is subject to Code Section 409A, except in compliance
with Code Section 409A and the provisions of this Agreement, and no amount that is subject
to Code Section 409A shall be paid prior to the earliest date on which it may be paid
without violating Code Section 409A.

     (d) For purposes of applying the provisions of Section Code 409A to this Agreement,
each separately identified amount to which the Executive is entitled under this Agreement
shall be treated as a separate payment. In addition, to the extent permissible under Code
Section 409A, any series of installment payments under this Agreement shall be treated as a
right to a series of separate payments. Whenever a payment under this Agreement specifies a
payment period with reference to a number of days, the actual date of payment within the
specified period shall be within the sole discretion of the Company.

15

 

     11. Withholding. The Company shall be entitled to withhold from amounts to be paid to
the Executive hereunder any federal, state or local withholding or other taxes or charges which it
is from time to time required to withhold; provided that the amount so withheld shall not exceed
the minimum amount required to be withheld by law unless otherwise elected by the Executive in
writing. In addition, if prior to the date of payment of the Severance Payment, the Federal
Insurance Contributions Act (FICA) tax imposed under Sections 3101, 3121(a) and 3121(v)(2) of the
Code, where applicable, becomes due with respect to such payment, the Company may provide for an
immediate payment of the amount needed to pay the Executive’s portion of such tax (plus an amount
equal to the taxes that will be due on such amount) and the Executive’s Severance Payment shall be
reduced accordingly. The Company shall be entitled to rely on an opinion of the National Tax
Counsel if any question as to the amount or requirement of any such withholding shall arise.

     12. Notice. Any notice, request, demand or other communication required or permitted
herein will be deemed to be properly given when personally served in writing or when deposited in
the United States mail, postage prepaid, addressed to the Executive at his or her latest home
address on file with the Company and to the Company addressed to its headquarters with attention to
the Chief Executive Officer of the Company and the General Counsel of the Company. Either party
may change its address by written notice in accordance with this section.

     13. No Set Off; No Mitigation. The Company’s obligation to pay the Executive the
amounts and to provide the benefits hereunder shall not be subject to set-off, counterclaim or
recoupment of amounts owed by the Executive to the Company. Further, the Executive shall not be
required to mitigate the amount of any payment provided for pursuant to this Agreement by seeking
other employment or otherwise.

     14. Benefit of Agreement. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective executors, administrators, successors and assigns. If
Company sells, assigns or transfers all or substantially all of its business and assets to any
person or if the Company merges into or consolidates or otherwise combines (where the Company does
not survive such combination) with any person (any such event, a “Sale of Business”), then the
Company shall assign all of its right, title and interest in this Agreement as of the date of such
event to such person, and the Company shall cause such person, by written agreement in form and
substance reasonably satisfactory to the Executive, to expressly assume and agree to perform from
and after the date of such assignment all of the terms, conditions and provisions imposed by this
Agreement upon the Company. The assignment of this Agreement to, and the Executive’s employment
by, such person shall not constitute a termination of employment hereunder. Failure of the Company
to obtain such agreement as of the effective date of such Sale of Business shall be a breach of
this Agreement constituting “Good Reason” hereunder. In case of such assignment by the Company and
of assumption and agreement by such person, as used in this Agreement, the “Company” shall
thereafter mean the person which executes and delivers the agreement provided for in this Section
14 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation
of law, and this Agreement shall inure to the benefit of, and be enforceable by, such person. The
Executive shall, in his or her discretion, be entitled to proceed against any or all of such
persons, any person which theretofore was such a successor to the Company, and the Company (as
originally defined herein) in any action to enforce any rights of the Executive hereunder. Except
as provided in this

16

 

Section 14, this Agreement shall not be assignable by the Company. This Agreement shall not
be terminated by the voluntary or involuntary dissolution of the Company.

     15. Survival. The provisions of Sections 5 through 21 shall survive the termination
of this Agreement to the extent necessary to enforce the rights and obligations described therein.

     16. Applicable Law, Exclusive Venue and Jurisdiction. This Agreement is to be
governed by and construed under the laws of the State of Florida without resort to Florida’s choice
of law rules. Each party hereby agrees that the forum and exclusive venue for any legal or
equitable action or proceeding arising out of, or in connection with, this Agreement will lie in
the appropriate federal or state courts in Palm Beach County, Florida , and specifically waives any
and all objections to personal jurisdiction and venue.

     17. Captions and Section Headings. Captions and section headings used herein are for
convenience only and are not a part of this Agreement and will not be used in construing it.

     18. Invalid Provisions. Subject to Section 7(f), should any provision of this
Agreement for any reason be declared invalid, void, or unenforceable by a court of competent
jurisdiction, the validity and binding effect of any remaining portion will not be affected, and
the remaining portions of this Agreement will remain in full force and effect as if this Agreement
had been executed with said provision eliminated.

     19. No Waiver. The failure of a party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive
such party of the right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

     20. Application of Company’s Recoupment Policy. Notwithstanding anything herein to
the contrary, all performance-based compensation payments made to Executive hereunder are subject
to recoupment by the Company pursuant to the recoupment policy approved by the Board, as it may be
amended from time to time.

     21. Entire Agreement. This Agreement contains the entire agreement of the parties
with respect to the subject matter of this Agreement except where other agreements are specifically
noted, adopted, or incorporated by reference. This Agreement otherwise supersedes any and all
other agreements, either oral or in writing, between the parties hereto with respect to the
employment of the Executive by the Company, and all such agreements shall be void and of no effect.
Each party to this Agreement acknowledges that no representations, inducements, promises, or
agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any
party, which are not embodied herein, and that no other agreement, statement, or promise not
contained in this Agreement will be valid or binding.

     22. Modification. This Agreement may not be modified or amended by oral agreement,
but only by an agreement in writing signed by both the Company and the Executive.

17

 

     23. Counterparts. This Agreement may be signed in counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

[signatures appear on following page]

18

 

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

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ Antony Mitchell
 	 
	 	Antony Mitchell 	 
	 	 	 
	 
	 	IMPERIAL HOLDINGS, LLC

 	 
	 	By:  	/s/ Jonathan L. Neuman
 	 
	 	 	Name:  	Jonathan L. Neuman 	 
	 	 	Title:  	President 	 

19

 

	 	 	 	 	 

EXHIBIT A

	1.	 	For the Company’s fiscal year ending December 31, 2011, the threshold is $60,000,000 pre-tax
income (i.e., the Company’s net revenues determined on a consolidated basis, also known as
earnings before taxes).

	2.	 	For the Company’s fiscal year ending December 31, 2012, the threshold is $67,500,000 pre-tax
income (i.e., the Company’s net revenues determined on a consolidated basis, also known as
earnings before taxes).

	3.	 	For the Company’s fiscal year ending December 31, 2013, the threshold is $75,000,000 pre-tax
income (i.e., the Company’s net revenues determined on a consolidated basis, also known as
earnings before taxes).

20

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