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INTERMEDIX HOLDINGS INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2010 (a) Revolving Credit Facility The Revolving Credit Facility provides for borrowings up to $40.0 million, $10.0 million of which was borrowed to facilitate the Merger. Revolving Credit Facility proceeds are used for working capital, capital expenditures and general corporate purposes. Advances under the Revolving Credit Facility are unrestricted as long as such advances would not result in the Company exceeding the Total Leverage Ratio (TLR), as defined in the Senior Credit Facility. Borrowings under the Revolver (including swing line borrowings) bear interest, as discussed above, plus a fixed bank margin based upon the Company's TLR, as of the most recent compliance certificate filed with the lender, ranging from 4.25% to 4.50% for base rate loans and from 5.25% to 5.50% for LIBOR rate loans. When the TLR exceeds 3.75:1.00, interest accrues at the high end of the range verses a TLR equal to or less than 3.75:1.00 wherein interest accrues at the low end of the range. Interest rates on the Revolver Credit Facility ranged from 7.25% to 7.75% during the Successor Period. Interest is payable quarterly in arrears for base rate loans including swing line borrowings. Interest on LIBOR rate loans is payable on the last day of each interest period as determined by the disbursement, conversion or continuation of such loan and its duration. Interest is due on each quarterly anniversary of LIBOR rate loans with terms in excess of three months. An unused commitment fee ranging from 0.50% to 0.75% (based on the most recent TLR) of the unused portion of the revolving line of the credit facility is due quarterly in arrears. During the Successor Period, the Company recognized unused commitment fees at a rate of 0.75 %. LOC fees accrue at the applicable rate for revolving credit loans and are paid quarterly in arrears. In addition, fronting fees (not to exceed 1.0% per annum) and customary administrative and processing fees are assessed with respect to each LOC. See discussion below under "Refinancing of Senior Credit Facility in March 2011" for discussion of revisions to interest rates pursuant to the refinancing. (b) Term Loans Term Loans bear interest, as discussed above, plus a fixed bank margin of 5.5% and 4.5% for LIBOR and base rate borrowings, respectively. Interest rates on the Tenn Loans ranged from 7.25% to 7.75% during the Successor Period. The repayment terns under the Senior Credit Facility require quarterly principal payments on the Tenn Loans of approximately $0.5 million with a balloon payment of approximately $183.8 million on August 23, 2016. Refinancing of Senior Credit Facility in March 2011 On March 14, 2011, the Company refinanced its borrowing under its Senior Credit Facility with the same lender. The new Agreement (the 2011 Credit Facility) provides interest rate structures favorable to that of the Senior Credit Facility and less restrictive financial ratio covenants. Borrowings under the revolving component of the 2011 Credit Facility bear interest at rates ranging from 3.50% to 3.75% for base rate loans and from 4.50% to 4.75% for LIBOR rate loans. Tenn loan borrowings under the 2011 Credit Facility bear interest at the Company's option, at an applicable fixed margin over the lender's base rate or LIBOR. Term loan margins are 4.75% and 3.75% for LIBOR and base rate borrowings, respectively. The rate at which the Company can borrow under LIBOR was also amended to be the greater of the quoted 22 (Continued)