Exhibit 10.4

 

August 25, 2004

   

J. Anthony Clarkson

 

Dennis N. Cavender

Vice President and Market Manager

 

Chief Financial Officer

Silicon Valley Bank

 

Essential Group, Inc.

230 West Monroe, Suite 720

 

1325 Tri-State Parkway, Suite 300

Chicago, IL 60606

 

Gurnee, IL 60031

 

  RE: Asset Based Line of Credit between Essential Group, Inc. and Silicon
Valley Bank

 

Dear Mr. Clarkson:

 

We have been advised that Silicon Valley Bank (“SVB”) is providing an asset
based line of credit with a maximum credit limit of $6,000,000 (the “Loan
Facility”) to Essential Group, Inc. (the “Company”) pursuant to a Loan and
Security Agreement (together with any related documents or any other borrowing
facility in place at SVB, the “Loan Documents”).

 

In order to induce SVB to provide the Loan Facility to the Company and to enter
into the Loan Documents, each of the undersigned hereby agrees, that during the
term of the Loan Facility and at any time any amount is outstanding under the
Loan Facility or owed to SVB by the Company under any of the Loan Documents, and
for a period of 30 days thereafter, the undersigned shall not vote any shares of
Series A-2, A-3, A-4, A-5 or A-6 Preferred Stock of the Company, beneficially
owned or controlled by them, directly or indirectly, now or hereafter (the
“Shares”), to require the Company to redeem any shares of the Company’s
preferred stock pursuant to the Company’s Amended and Restated Certificate of
Incorporation and the Certificates of Designation, Preferences and Rights of the
Company’s preferred stock or otherwise conduct or cause any action which may
result in such redemption. Each of the undersigned further agrees that if it
sells, assigns or transfers its Shares, prior thereto it shall legend its Shares
with evidence of the restrictions created by this letter agreement and, as a
condition to such sale, assignment or transfer, the undersigned shall require
the purchaser, assignee or transferee to unconditionally agree in writing to be
bound by the terms hereof.

 

Galen Partners III, L.P.

By: Claudius L.L.C.

 

Tullis-Dickerson Capital Focus II, L.P.

By: Tullis Dickerson Partners II, L.L.C.

By:

 

/S/ Bruce F. Wesson

--------------------------------------------------------------------------------

 

By:

 

/S/ Joan P. Neuscheler

--------------------------------------------------------------------------------

Name:

 

Bruce F. Wesson

 

Name:

 

Joan P. Neuscheler

Title:

 

Senior Managing Member

 

Title:

 

Principal

Galen Partners International III, L.P.

 

TD Javelin Capital Fund, L.P.

By: Claudius L.L.C.

 

By: JVP, L.P.

By: JVP, Inc.

       

By:

 

/S/ Bruce F. Wesson

--------------------------------------------------------------------------------

 

By:

 

/S/ Joan P. Neuscheler

--------------------------------------------------------------------------------

Name:

 

Bruce F. Wesson

 

Name:

 

Joan P. Neuscheler

Title:

 

Senior Managing Member

 

Title:

 

President

Galen Employee Fund III, L.P.

By: Wesson Enterprises, Inc.

 

TD Origen Capital Fund, L.P.

By: TD II Regional Partners, Inc.

By:

 

/S/ Bruce F. Wesson

--------------------------------------------------------------------------------

 

By:

 

/S/ Joan P. Neuscheler

--------------------------------------------------------------------------------

Name:

 

Bruce F. Wesson

 

Name:

 

Joan P. Neuscheler

Title:

 

President

 

Title:

 

President