Execution Version

EQUITY REPURCHASE WAIVER AGREEMENT

This EQUITY REPURCHASE WAIVER AGREEMENT (this “Agreement”) is dated as of March
20, 2009, and is entered into by and among Encompass Parts Distribution, Inc., a
Delaware corporation, as issuer (the “Issuer”), any Subsidiary of Parent (as
defined below) from time to time party to that certain Amended and Restated Note
Purchase Agreement dated as of August 1, 2008, as amended (the “Note Purchase
Agreement”), Encompass Group Affiliates, a Florida corporation (the “Parent”),
SpectruCell, Inc., a Delaware corporation (“SpectruCell”), Hudson Street
Investments, Inc., a Delaware corporation (“Hudson Street”), Cyber-Test, Inc., a
Delaware corporation (“Cyber-Test”), Vance Baldwin, Inc., a Florida corporation
(“Vance Baldwin”), and Tritronics, Inc. (“Tritronics”), a Maryland corporation,
as guarantors (the Issuer, Parent, SpectruCell, Hudson Street, Cyber-Test, Vance
Baldwin, Tritronics and any subsidiary of Parent that executes a counterpart or
joinder to the Note Purchase Agreement together being referred to as the “Note
Parties”, and each such Person, a “Note Party”), Sankaty Advisors, LLC, as First
Lien Collateral Agent for the Senior Note Purchasers and Second Lien Collateral
Agent for the Subordinated Note Purchasers, and each Senior Note Purchaser and
Subordinated Note Purchaser listed on Schedule I and Schedule I(A) to the Note
Purchase Agreement, their successors and assignees (together, the “Note
Purchasers”). Capitalized terms note otherwise defined herein shall have the
meanings given such terms in the Note Purchase Agreement.

RECITALS

WHEREAS, Parent desires to repurchase 3,000,000,000 shares of its publicly held
common stock from YA Global Investments, L.P. for the aggregate purchase price
of $300,000 (the “Repurchase”);

WHEREAS, Section 7.16 of the Note Purchase Agreement provides that no Note Party
shall make any Restricted Payments, including, without limitation, any payment
on account of the purchase of such Note Party’s Stock (the “Covenant”); and

WHEREAS, Issuer has requested that the Note Purchasers waive any existing and
future default under the Covenant with regard to the Repurchase (the “Default”).

NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Note Parties and the Note Purchasers agree as follows:

SECTION 1.
WAIVER.  Each of the Note Purchasers hereby waives the Default.

SECTION 2.
NO FURTHER WAIVER.  Except as expressly provided herein, this Agreement shall
not be deemed to be a waiver, release or cure of, or a consent to, any default
other than as set forth in Section 1.

 
 

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SECTION 3.
PREPAYMENT. The Issuer agrees to make a payment, simultaneously upon the closing
of the Repurchase, in the aggregate amount of $303,000 (the “Payment”). The
Payment shall include (a) the prepayment of the Senior Notes in aggregate
principal amount of $300,000 (the "Prepayment"), notwithstanding Section 3.2.3
of the Note Purchase Agreement requiring prepayments to be paid in increments of
$250,000, and (b) the payment of the Applicable Premium in the aggregate amount
of $3,000. Such Payment shall be made in accordance with Section 3.3 of the Note
Purchase Agreement.  The Prepayment and Applicable Premium shall not constitute
any item listed under clause (b) of the definition of “Excess Cash Flow”,
including, without limitation, a prepayment of the Notes.

SECTION 4.
EXPIRATION.  The Note Parties agree to use reasonable efforts to consummate the
Repurchase within thirty (30) days of the date of this Agreement.  If the
Repurchase is not completed within such thirty-day (30) period, the waiver set
forth in Section 1 hereof shall become null and void and the Note Purchasers
shall be entitled to exercise any rights and remedies with respect to future
repurchases of equity as they may have under the Note Purchase Agreement or
otherwise.

SECTION 5.
MISCELLANEOUS.

(a) Modification of Agreement. This Agreement may not be modified, altered or
amended except by an agreement in writing signed by all of the parties hereto.

(b) No Novation, etc. This Agreement is not intended to be, nor shall it be
construed to create, a novation or accord and satisfaction, and, except as
otherwise expressly stated herein, the Note Purchase Agreement and related Note
Documents remain in full force and effect.

(c) Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.
The Note Purchase Agreement and related Note Documents and this Agreement
express the entire understanding of the parties with respect to the subject
matter hereof and thereof and supersede all prior agreements, whether oral or
written, express or implied.

(d) Section Titles. The section titles contained in this Agreement are for
convenience of reference only and are and shall be without substantive meaning
or content of any kind whatsoever and are not a part of the Agreement among the
parties hereto.

(e) Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall constitute an original, but all of which taken together
shall constitute one and the same instrument. Delivery of an executed signature
page of this Agreement by facsimile  or electronic transmission shall be
effective as delivery of a manually executed counterpart hereof.

(f) Governing Law. This Agreement shall be governed by, and shall be construed
and enforced in accordance with, the laws of the State of New York.
 
 
 

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

 
THE ISSUER:
ENCOMPASS PARTS
 
DISTRIBUTION, INC., a Delaware corporation
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer

SUBSIDIARIES:
ENCOMPASS PARTS DISTRIBUTION, S. DE R.L. DE C.V.
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer
     
ENCOMPASS SERVICE SOLUTIONS, INC.
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer

 
[Signature Page to Equity Repurchase Waiver]

 
 

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GUARANTORS:
ENCOMPASS GROUP AFFILIATES, INC., a Florida
 
corporation
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer
       
SPECTRUCELL, INC.
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer
     
HUDSON STREET INVESTMENTS, INC.
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer
     
CYBER-TEST, INC.
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer
     
VANCE BALDWIN, INC.
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer
     
TRITRONICS, INC.
       
By:
/s/ John E. Donahue
   
Name: John E. Donahue
   
Title: Chief Financial Officer

 
[Signature Page to Equity Repurchase Waiver]
 
 
 

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NOTE PURCHASERS:
SANKATY CREDIT OPPORTUNITIES II, L.P.
       
By:
/s/ Michael Ewald
   
Name: Michael Ewald
   
Title: Managing Director
       
SANKATY CREDIT OPPORTUNITIES III, L.P.
       
By:
/s/ Michael Ewald
   
Name: Michael Ewald
   
Title: Managing Director
       
SANKATY CREDIT OPPORTUNITIES IV, L.P.
       
By:
/s/ Michael Ewald
   
Name: Michael Ewald
   
Title: Managing Director
   
-
SANKATY CREDIT OPPORTUNITIES
 
(OFFSHORE MASTER) IV, L.P.
       
By:
/s/ Michael Ewald
   
Name: Michael Ewald
   
Title: Managing Director
      RGIP, LLC        
By:
     
Name:
   
Title: Managing Member
     
FIRST LIEN COLLATERAL AGENT:
SANKATY ADVISORS, LLC
       
By:
/s/ Michael Ewald
   
Name: Michael Ewald
   
Title: Managing Director
     
SECOND LIEN COLLATERAL AGENT:
SANKATY ADVISORS, LLC
       
By:
/s/ Michael Ewald
   
Name: Michael Ewald
   
Title: Managing Director

 
[Signature Page to Equity Repurchase Waiver]

 
 

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NOTE PURCHASERS:
SANKATY CREDIT OPPORTUNITIES II, L.P.
       
By:
     
Name:
   
Title: Managing Director
       
SANKATY CREDIT OPPORTUNITIES III,
 
L.P.
       
By:
     
Name:
   
Title: Managing Director
       
SANKATY CREDIT OPPORTUNITIES IV,
 
L.P.
       
By:
     
Name:
   
Title: Managing Director
       
SANKATY CREDIT OPPORTUNITIES
 
(OFFSHORE MASTER) IV, L.P.
       
By:
     
Name:
   
Title: Managing Director
       
RGIP, LLC
       
By:
/s/ Alfred O. Rose
   
Name: Alfred O. Rose
   
Title: Managing Member
     
FIRST LIEN COLLATERAL AGENT:
SANKATY ADVISORS, LLC
       
By:
     
Name:
   
Title: Managing Director
     
SECOND LIEN COLLATERAL AGENT:
SANKATY ADVISORS, LLC
       
By:
     
Name:
   
Title: Managing Director

 
[Signature Page to Equity Repurchase Waiver]

 
 

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