Document:

exv10w1

 

Exhibit 10.1

 

CREDIT AGREEMENT

dated as of November 21, 2006

among

COMPASS GROUP DIVERSIFIED HOLDINGS LLC

as Borrower,

THE FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders,

and

MADISON CAPITAL FUNDING LLC,

as Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 1.

	 	Definitions; Interpretation
	 	 	1	 
	 
	 	 	 	 	 	 
	1.

	1.	Definitions
	 	 	1	 
	1.

	2.	Interpretation
	 	 	19	 
	 
	 	 	 	 	 	 
	Section 2.

	 	Credit Facilities
	 	 	19	 
	 
	 	 	 	 	 	 
	2.

	1.	Commitments 	 	 	19	 
	 

	 	2.1.1. Revolving Loan Commitments
	 	 	19
	 
	 

	 	2.1.2. Request for Increase of Revolving Loan Commitments
	 	 	20	 
	 
	 	 	 	 	 	 
	2.

	2.	Loan Procedures
	 	 	20	 
	 

	 	2.2.1. Loan Types
	 	 	20	 
	 

	 	2.2.2. Borrowing
	 	 	20	 
	 

	 	2.2.3. Conversion; Continuation
	 	 	21	 
	 
	 	 	 	 	 	 
	2.3.

	3.	Letters of Credit
	 	 	21	 
	 

	 	2.3.1. Commitment
	 	 	21	 
	 

	 	2.3.2. Application
	 	 	22	 
	 

	 	2.3.3. Reimbursement Obligations
	 	 	22	 
	 

	 	2.3.4. Participations in Letters of Credit
	 	 	23	 
	 
	 	 	 	 	 	 
	2.

	4.	Commitments Several
	 	 	24	 
	 
	 	 	 	 	 	 
	2.

	5.	Certain Conditions
	 	 	24	 
	 
	 	 	 	 	 	 
	2.

	6.	Loan Accounting
	 	 	24	 
	 

	 	2.6.1. Recordkeeping
	 	 	24	 
	 

	 	2.6.2. Notes
	 	 	24	 
	 
	 	 	 	 	 	 
	2.

	7.	Interest
	 	 	24	 
	 

	 	2.7.1. Interest Rates
	 	 	24	 
	 

	 	2.7.2. Interest Payment Dates
	 	 	25	 
	 

	 	2.7.3. Setting and Notice of LIBOR Rates
	 	 	25	 
	 

	 	2.7.4. Computation of Interest
	 	 	25	 
	 
	 	 	 	 	 	 
	2.

	8.	Fees
	 	 	25	 
	 

	 	2.8.1. Commitment Fee
	 	 	25	 
	 

	 	2.8.2. Letter of Credit Fees
	 	 	25	 
	 

	 	2.8.3. Agent’s Fees
	 	 	26	 
	 
	 	 	 	 	 	 
	2.

	9.	Commitment Reduction
	 	 	26	 
	 

	 	2.9.1. Voluntary Reduction or Termination of Revolving Loan Commitments
	 	 	26	 
	 

	 	2.9.2. Reduction of Revolving Loan Commitments in Connection with
Mandatory Prepayment
	 	 	26	 
	 

	 	2.9.3. All Reductions of Revolving Loan Commitments
	 	 	26	 
	 
	 	 	 	 	 	 
	2.

	10.	Prepayment
	 	 	26	 
	 

	 	2.10.1. [Intentionally Omitted]
	 	 	26	 
	 

	 	2.10.2. Mandatory Prepayment
	 	 	26	 
	 

	 	2.10.3. All Prepayments
	 	 	27	 
	 
	 	 	 	 	 	 
	2.

	11.	Repayment
	 	 	27	 

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	 	 	 	 	Page
	2.

	12.	Payment
	 	 	27	 
	 

	 	2.12.1. Making and Settlement of Payments
	 	 	27	 
	 

	 	2.12.2. Application of Payments and Proceeds
	 	 	28	 
	 

	 	2.12.3. Payment Dates
	 	 	29	 
	 

	 	2.12.4. Set-off
	 	 	29	 
	 

	 	2.12.5. Proration of Payments
	 	 	29	 
	 
	 	 	 	 	 	 
	Section 3.

	 	Yield Protection
	 	 	30	 
	 
	 	 	 	 	 	 
	3.

	1.	Taxes
	 	 	30	 
	 
	 	 	 	 	 	 
	3.

	2.	Increased Cost
	 	 	31	 
	 
	 	 	 	 	 	 
	3.

	3.	Inadequate or Unfair Basis
	 	 	31	 
	 
	 	 	 	 	 	 
	3.

	4.	Change in Law
	 	 	32	 
	 
	 	 	 	 	 	 
	3.

	5.	Funding Losses
	 	 	32	 
	 
	 	 	 	 	 	 
	3.

	6.	Manner of Funding; Alternate Funding Offices
	 	 	32	 
	 
	 	 	 	 	 	 
	3.

	7.	Mitigation of Circumstances; Replacement of Lenders
	 	 	32	 
	 
	 	 	 	 	 	 
	3.

	8.	Conclusiveness of Statements; Survival
	 	 	33	 
	 
	 	 	 	 	 	 
	Section 4.

	 	Conditions Precedent
	 	 	33	 
	 
	 	 	 	 	 	 
	4.

	1.	Initial Credit Extension
	 	 	33	 
	 

	 	4.1.1. Financial Statements; Total Debt to EBITDA Ratio
	 	 	33	 
	 

	 	4.1.2. Initial Loans; Availability
	 	 	34	 
	 

	 	4.1.3. Prior Debt
	 	 	34	 
	 

	 	4.1.4. Fees
	 	 	34	 
	 

	 	4.1.5. Delivery of Loan Documents
	 	 	34	 
	 
	 	 	 	 	 	 
	4.

	2.	All Credit Extensions
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 5.

	 	Representations and Warranties
	 	 	36	 
	 
	 	 	 	 	 	 
	5.

	1.	Organization
	 	 	36	 
	 
	 	 	 	 	 	 
	5.

	2.	Authorization; No Conflict
	 	 	36	 
	 
	 	 	 	 	 	 
	5.

	3.	Validity; Binding Nature
	 	 	36	 
	 
	 	 	 	 	 	 
	5.

	4.	Financial Condition
	 	 	36	 
	 
	 	 	 	 	 	 
	5.

	5.	No Material Adverse Effect
	 	 	37	 
	 
	 	 	 	 	 	 
	5.

	6.	Litigation
	 	 	37	 
	 
	 	 	 	 	 	 
	5.

	7.	Ownership of Properties; Liens
	 	 	37	 
	 
	 	 	 	 	 	 
	5.

	8.	Capitalization
	 	 	37	 
	 
	 	 	 	 	 	 
	5.

	9.	Pension Plans
	 	 	37	 
	 
	 	 	 	 	 	 
	5.

	10.	Investment Company Act
	 	 	38	 
	 
	 	 	 	 	 	 
	5.

	11.	[Intentionally Omitted]
	 	 	38	 
	 
	 	 	 	 	 	 
	5.

	12.	Margin Stock
	 	 	38	 

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	 	 	 	 	Page
	5.

	13.	Taxes
	 	 	38	 
	 
	 	 	 	 	 	 
	5.

	14.	Solvency
	 	 	38	 
	 
	 	 	 	 	 	 
	5.

	15.	Environmental Matters
	 	 	38	 
	 
	 	 	 	 	 	 
	5.

	16.	Insurance
	 	 	39	 
	 
	 	 	 	 	 	 
	5.

	17.	Information
	 	 	39	 
	 
	 	 	 	 	 	 
	5.

	18.	Intellectual Property
	 	 	39	 
	 
	 	 	 	 	 	 
	5.

	19.	Restrictive Provisions
	 	 	39	 
	 
	 	 	 	 	 	 
	5.

	20.	Labor Matters
	 	 	39	 
	 
	 	 	 	 	 	 
	5.

	21.	No Default
	 	 	40	 
	 
	 	 	 	 	 	 
	5.

	22.	Related Agreements
	 	 	40	 
	 
	 	 	 	 	 	 
	Section 6.

	 	Affirmative Covenants
	 	 	40	 
	 
	 	 	 	 	 	 
	6.

	1.	Information
	 	 	40	 
	 

	 	6.1.1. Annual Report
	 	 	40	 
	 

	 	6.1.2. Interim Reports
	 	 	41	 
	 

	 	6.1.3. Compliance Certificate
	 	 	41	 
	 

	 	6.1.4. Reports to SEC and Shareholders
	 	 	41	 
	 

	 	6.1.5. Notice of Default; Litigation; ERISA Matters
	 	 	42	 
	 

	 	6.1.6. Availability Certificate
	 	 	42	 
	 

	 	6.1.7. Management Report
	 	 	42	 
	 

	 	6.1.8. Projections
	 	 	43	 
	 

	 	6.1.9. Notice of an Event of Default under Intercompany Debt Documents
	 	 	43	 
	 

	 	6.1.10. Other Information
	 	 	43	 
	 
	 	 	 	 	 	 
	6.

	2.	Books; Records; Inspections
	 	 	43	 
	 
	 	 	 	 	 	 
	6.

	3.	Maintenance of Property; Insurance
	 	 	43	 
	 
	 	 	 	 	 	 
	6.

	4.	Compliance with Laws; Payment of Taxes and Liabilities
	 	 	44	 
	 
	 	 	 	 	 	 
	6.

	5.	Maintenance of Existence
	 	 	45	 
	 
	 	 	 	 	 	 
	6.

	6.	Employee Benefit Plans
	 	 	45	 
	 
	 	 	 	 	 	 
	6.

	7.	Environmental Matters
	 	 	45	 
	 
	 	 	 	 	 	 
	6.

	8.	Further Assurances
	 	 	45	 
	 
	 	 	 	 	 	 
	Section 7.

	 	Negative Covenants
	 	 	45	 
	 
	 	 	 	 	 	 
	7.

	1.	Debt
	 	 	45	 
	 
	 	 	 	 	 	 
	7.

	2.	Liens
	 	 	46	 
	 
	 	 	 	 	 	 
	7.

	3.	[Intentionally Omitted]
	 	 	47	 
	 
	 	 	 	 	 	 
	7.

	4.	Restricted Payments
	 	 	47	 
	 
	 	 	 	 	 	 
	7.

	5.	Mergers; Consolidations; Asset Sales
	 	 	48	 
	 
	 	 	 	 	 	 
	7.

	6.	Modification of Organizational Documents
	 	 	48	 
	 
	 	 	 	 	 	 
	7.

	7.	Use of Proceeds
	 	 	49	 

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	 	 	 	 	Page
	7.

	8.	Transactions with Affiliates
	 	 	49	 
	 
	 	 	 	 	 	 
	7.

	9.	Inconsistent Agreements
	 	 	49	 
	 
	 	 	 	 	 	 
	7.

	10.	Business Activities
	 	 	49	 
	 
	 	 	 	 	 	 
	7.

	11.	Investments
	 	 	50	 
	 
	 	 	 	 	 	 
	7.

	12.	Restriction of Amendments to Certain Documents
	 	 	50	 
	 
	 	 	 	 	 	 
	7.

	13.	Fiscal Year
	 	 	51	 
	 
	 	 	 	 	 	 
	7.

	14.	Financial Covenants
	 	 	51	 
	 

	 	7.14.1. Fixed Charge Coverage Ratio
	 	 	51	 
	 

	 	7.14.2. Interest Coverage Ratio
	 	 	51	 
	 

	 	7.14.3. Total Debt to EBITDA Ratio
	 	 	51	 
	 
	 	 	 	 	 	 
	7.

	15.	Bank Accounts
	 	 	51	 
	 
	 	 	 	 	 	 
	7.

	16.	Subsidiaries
	 	 	51	 
	 
	 	 	 	 	 	 
	Section 8.

	 	Events of Default; Remedies
	 	 	52	 
	 
	 	 	 	 	 	 
	8.

	1.	Events of Default
	 	 	52	 
	 

	 	8.1.1. Non-Payment of Credit
	 	 	52	 
	 

	 	8.1.2. Default Under Other Debt
	 	 	52	 
	 

	 	8.1.3. Bankruptcy; Insolvency
	 	 	52	 
	 

	 	8.1.4. Non-Compliance with Loan Documents
	 	 	52	 
	 

	 	8.1.5. Representations; Warranties
	 	 	52	 
	 

	 	8.1.6. Pension Plans
	 	 	53	 
	 

	 	8.1.7. Judgments
	 	 	53	 
	 

	 	8.1.8. Invalidity of Collateral Documents
	 	 	53	 
	 

	 	8.1.9. Invalidity of Subordination Provisions
	 	 	53	 
	 

	 	8.1.10. Change of Control
	 	 	53	 
	 

	 	8.1.11. Activities of the Trust or Borrower
	 	 	53	 
	 
	 	 	 	 	 	 
	8.

	2.	Remedies
	 	 	54	 
	 
	 	 	 	 	 	 
	Section 9.

	 	Agent
	 	 	54	 
	 
	 	 	 	 	 	 
	9.

	1.	Appointment; Authorization
	 	 	54	 
	 
	 	 	 	 	 	 
	9.

	2.	Delegation of Duties
	 	 	54	 
	 
	 	 	 	 	 	 
	9.

	3.	Limited Liability
	 	 	55	 
	 
	 	 	 	 	 	 
	9.

	4.	Reliance
	 	 	55	 
	 
	 	 	 	 	 	 
	9.

	5.	Notice of Default
	 	 	55	 
	 
	 	 	 	 	 	 
	9.

	6.	Credit Decision
	 	 	56	 
	 
	 	 	 	 	 	 
	9.

	7.	Indemnification
	 	 	56	 
	 
	 	 	 	 	 	 
	9.

	8.	Agent Individually
	 	 	56	 
	 
	 	 	 	 	 	 
	9.

	9.	Successor Agent
	 	 	57	 
	 
	 	 	 	 	 	 
	9.

	10.	Collateral Matters
	 	 	57	 
	 
	 	 	 	 	 	 
	9.

	11.	Subordinated Debt
	 	 	57	 

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	 	 	 	 	Page
	9.

	12.	Documentation and Syndication Agent
	 	 	57	 
	 
	 	 	 	 	 	 
	Section 10.

	 	Miscellaneous
	 	 	58	 
	 
	 	 	 	 	 	 
	10.

	1.	Waiver; Amendments
	 	 	58	 
	 
	 	 	 	 	 	 
	10.

	2.	Notices
	 	 	58	 
	 
	 	 	 	 	 	 
	10.

	3.	Computations
	 	 	59	 
	 
	 	 	 	 	 	 
	10.

	4.	Costs; Expenses
	 	 	59	 
	 
	 	 	 	 	 	 
	10.

	5.	Indemnification by Borrower
	 	 	59	 
	 
	 	 	 	 	 	 
	10.

	6.	Marshaling; Payments Set Aside
	 	 	60	 
	 
	 	 	 	 	 	 
	10.

	7.	Nonliability of Lenders
	 	 	60	 
	 
	 	 	 	 	 	 
	10.

	8.	Assignments; Participations
	 	 	60	 
	 

	 	10.8.1. Assignments
	 	 	60	 
	 

	 	10.8.2. Participations
	 	 	61	 
	 
	 	 	 	 	 	 
	10.

	9.	Confidentiality
	 	 	62	 
	 
	 	 	 	 	 	 
	10.

	10.	Captions
	 	 	62	 
	 
	 	 	 	 	 	 
	10.

	11.	Nature of Remedies
	 	 	62	 
	 
	 	 	 	 	 	 
	10.

	12.	Counterparts
	 	 	63	 
	 
	 	 	 	 	 	 
	10.

	13.	Severability
	 	 	63	 
	 
	 	 	 	 	 	 
	10.

	14.	Entire Agreement
	 	 	63	 
	 
	 	 	 	 	 	 
	10.

	15.	Successors; Assigns
	 	 	63	 
	 
	 	 	 	 	 	 
	10.

	16.	Governing Law
	 	 	63	 
	 
	 	 	 	 	 	 
	10.

	17.	Forum Selection; Consent to Jurisdiction
	 	 	63	 
	 
	 	 	 	 	 	 
	10.

	18.	Waiver of Jury Trial
	 	 	64	 

-v-

 

	 	 	 
	Annexes
	 	 
	 
	 	 
	Annex I

	 	Commitments and Pro Rata Shares
	Annex II

	 	Addresses
	Annex III

	 	Conditions Precedent to Permitted Eligible Acquisition
	Annex IV

	 	Conditions Precedent to Permitted Ineligible Acquisition
	 
	 	 
	Exhibits
	 	 
	 
	 	 
	Exhibit A

	 	Form of Assignment Agreement
	Exhibit B

	 	Form of Compliance Certificate
	Exhibit C

	 	Form of Availability Certificate
	Exhibit D

	 	Form of Note
	Exhibit E

	 	Form of Borrowing Notice
	Exhibit F

	 	Form of Conversion/Continuation Notice
	 
	 	 
	Schedules
	 	 
	 
	 	 
	Schedule 1.1

	 	Approved Professionals
	Schedule 1.2

	 	Existing US Bank Letters of Credit
	Schedule 4.1.3

	 	Prior Debt
	Schedule 5.6

	 	Litigation
	Schedule 5.8

	 	Capitalization
	Schedule 5.20

	 	Labor Matters
	Schedule 7.1

	 	Existing Debt
	Schedule 7.2

	 	Existing Liens
	Schedule 7.8

	 	Affiliate Transactions
	Schedule 7.11

	 	Existing Investments
	Schedule 7.15

	 	Bank Accounts

-vi-

 

CREDIT AGREEMENT

                     Credit Agreement dated as of November 21, 2006 (as amended, restated or otherwise modified
from time to time, this “Agreement”) among Compass Group Diversified Holdings LLC, a
Delaware limited liability company (“Borrower”), the financial institutions party hereto
from time to time (“Lenders”), and Madison Capital Funding LLC (in its individual capacity,
“Madison”), as Agent for all Lenders.

                     In consideration of the mutual agreements herein contained, the parties hereto agree as
follows:

	Section 1.	 	 Definitions; Interpretation.
	 
	1.	1.	Definitions.

                     When used herein the following terms shall have the following meanings:

                     Acceleration Event means the occurrence of any of the following: (i) an Event of
Default under Section 8.1.3; (ii) an Event of Default under Section 8.1.1 and the
termination of the Revolving Loan Commitments pursuant to Section 8.2; or (iii) any other
Event of Default under Section 8.1 and the election by the Required Lenders to declare the
Obligations to be due and payable or to terminate the Revolving Loan Commitments pursuant to
Section 8.2.

                     Account has the meaning set forth in the Collateral Agreement.

                     Account Debtor means any Person who is obligated to Borrower or any Subsidiary with
respect to any Account.

                     Acquisition means any transaction or series of related transactions for the purpose of
or resulting, directly or indirectly, in (a) the acquisition of all or a substantial portion of the
assets of a Person, or of all or a substantial portion of any business or division of a Person, (b)
the acquisition of in excess of 50% of the capital stock, partnership interests, membership
interests or equity of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a
merger or consolidation or any other combination with another Person (other than a Person that is
already a Subsidiary).

                     Acquisition Subsidiary has the meaning set forth in Section 7.16.

                     Advanced Circuits means Compass AC Holdings, Inc., a Delaware corporation.

                     Affiliate of any Person means (a) any other Person which, directly or indirectly,
controls or is controlled by or is under common control with such Person, (b) with respect to any
Person other than a Lender, any officer or director of such Person and (c) with respect to any
Lender, any entity administered or managed by such Lender or an Affiliate or investment advisor
thereof which is engaged in making, purchasing, holding or otherwise investing in commercial loans.
A Person shall be deemed to be “controlled by” any other Person if such Person possesses, directly
or indirectly, power to vote 10% or more of the securities (on a fully diluted basis) having
ordinary voting power for the election of directors or managers or power to direct or cause the
direction of the management and policies of such Person whether by contract or otherwise;
provided, that the provisions of this sentence shall not apply to CGI and its Subsidiaries
unless and until CGI or any of its Subsidiaries possesses, directly or indirectly, the power to
vote 50% or more of the voting securities (on a fully diluted basis) of the Trust or Borrower.
Unless

-1-

 

expressly stated otherwise herein, neither Agent nor any Lender shall be deemed an Affiliate
of Borrower, the Trust or any Subsidiary.

                     Agent means Madison in its capacity as agent for all Lenders hereunder and any
successor thereto in such capacity.

                     Agreement has the meaning set forth in the Preamble.

                     Allocation Interests has the meaning assigned to such term in the Borrower LLC
Agreement.

                     Allocation Member has the meaning assigned to such term in the Borrower LLC Agreement.

                     Allocation Member Distributions means distributions payable to the Allocation Member
upon a sale of a Subsidiary pursuant to and in accordance with the provisions of Section 5.2 of the
Borrower LLC Agreement.

                     Anodyne means Anodyne Medical Device, Inc., a Delaware corporation.

                     Applicable Margin means the following:

                     With respect to the Revolving Loans, the Applicable Margin shall mean the applicable rate per
annum corresponding to the applicable Total Debt to EBITDA Ratio, as set forth in the following
table:

	 	 	 	 	 	 	 	 	 
	 	 	Revolving Loans
	Total Debt to EBITDA Ratio	 	Base Rate	 	LIBOR Rate
	> 2.00
	 	 	2.50	%	 	 	3.50	%
	> 1.00, but £ 2.00
	 	 	2.00	%	 	 	3.00	%
	£ 1.00
	 	 	1.50	%	 	 	2.50	%

The Applicable Margin in respect of the Revolving Loans shall be adjusted quarterly, to the extent
applicable, on the date financial statements are required to be delivered pursuant to Section
6.1.2 (or, in the case of the last Fiscal Quarter of each Fiscal Year, Section 6.1.1)
after the end of each related Fiscal Quarter based on the Total Debt to EBITDA Ratio as of the last
day of such Fiscal Quarter. Notwithstanding the foregoing, (a) until the date that the financial
statements for the Fiscal Quarter ending June 30, 2007 are required to be delivered pursuant to
Section 6.1.2, the Applicable Margin in respect of the Revolving Loans shall be no less
than the rates corresponding to the middle tier in the foregoing table, (b) if Borrower fails to
deliver the financial statements required by Section 6.1.1 or 6.1.2, as applicable,
and the related Compliance Certificate required by Section 6.1.3, by the respective date
required thereunder after the end of any related Fiscal Quarter, the Applicable Margin in respect
of the Revolving Loans shall be the rates corresponding to the highest tier in the foregoing table
until such financial statements and Compliance Certificate are delivered, and (c) no reduction to
the Applicable Margin in respect of the Revolving Loans shall become effective at any time when an
Event of Default has occurred and is continuing.

                     If, as a result of any restatement of or other adjustment to the financial statements of
Borrower or for any other reason, Agent determines (or Borrower determines with the reasonable
concurrence of Agent) that (a) the Total Debt to EBITDA Ratio as calculated by Borrower as of any
applicable date was inaccurate and (b) a proper calculation of the Total Debt to EBITDA Ratio would

-2-

 

have resulted in different pricing for any period, then if the proper calculation of
the Total Debt to EBITDA Ratio would have resulted in higher or lower pricing for such period,
then, in the case of higher pricing, Borrower shall automatically and retroactively be obligated to
pay to Agent, for the benefit of the applicable Lenders, promptly on demand by Agent, an amount
equal to the excess of the amount of interest and fees that should have been paid for such period
over the amount of interest and fees actually paid for such period, and , in the case of lower
pricing, Borrower shall be credited toward future payments owing hereunder an amount equal to the
amount of interest and fees actually paid for such period over the amount of interest and fees that
should have been paid for such period.

                     With respect to the Commitment Fee, the Applicable Margin shall mean the applicable rate per
annum corresponding to the average Revolving Outstandings for the Fiscal Quarter most recently
completed, as set forth in the following table:

	 	 	 	 	 
	Average Revolving Outstandings	 	Commitment Fee
	£ 33.3% of the Revolving Loan Commitments
	 	 	1.25	%
	> 33.3% of the Revolving Loan Commitments, but £
66.6% of the Revolving Loan Commitments
	 	 	1.00	%
	> 66.6% of the Revolving Loan Commitments
	 	 	0.75	%

                     The Applicable Margin in respect of the Commitment Fee shall be adjusted quarterly, to the
extent applicable, on the same dates that adjustments are made in respect of the Applicable Margin
for Revolving Loans pursuant to the provisions above. Notwithstanding the foregoing, (a) until
June 30, 2007, the Applicable Margin in respect of the Commitment Fee shall be no less than the
rates corresponding to the middle tier in the foregoing table, and (b) no reduction to the
Applicable Margin in respect of the Commitment Fee shall become effective at any time when an Event
of Default has occurred and is continuing.

                     Approval Fee means, with respect to any New Portfolio Company, a fee payable by
Borrower to Agent, for the ratable benefit of the Lenders that have timely approved of the
reclassification of such New Portfolio Company as an Existing Portfolio Company in accordance with
their Pro Rata Shares, upon the reclassification of such New Portfolio Company as an Existing
Portfolio Company in an amount equal to one-quarter of one percent (0.25%) of the product of (i)
the New Portfolio Company EBITDA of such New Portfolio Company for the twelve month period ending
on the last day of the month for which financial statements regarding such New Portfolio Company
have been delivered to Agent in accordance with the terms of this Agreement times (ii) 3.0.

                     Approved Fund means (a) any fund, trust or similar entity that invests in commercial
loans in the ordinary course of business and is advised or managed by (i) a Lender, (ii) an
Affiliate of a Lender, (iii) the same investment advisor that manages a Lender or (iv) an Affiliate
of an investment advisor that manages a Lender or (b) any finance company, insurance company or
other financial institution which temporarily warehouses loans for any Lender or any Person
described in clause (a) above.

                     Approved Professional means any Person identified on Schedule 1.1 or otherwise
approved by Agent in writing.

                     Assignment Agreement means an agreement substantially in the form of Exhibit
A.

-3-

 

                     Availability means (a) with respect to an Existing Portfolio Company, the least of (i)
the product of (x) the Existing Portfolio Company EBITDA of such Existing Portfolio Company for the
twelve month period ending on the last day of the month for which financial statements regarding
such Existing Portfolio Company have been most recently delivered to Agent in accordance with the
terms of this Agreement times (y) 3.0; (ii) the sum of (x) the principal balance of the
Qualified Intercompany Debt owing by such Existing Portfolio Company to Borrower plus (y)
the product of (I) 3.0 minus a fraction, the numerator of which shall be the principal balance of
the Qualified Intercompany Debt owing by such Existing Portfolio Company to Borrower and the
denominator of which shall be the Existing Portfolio Company EBITDA of such Existing Portfolio
Company for the twelve month period ending on the last day of the month for which financial
statements regarding such Existing Portfolio Company have been most recently delivered to Agent in
accordance with the terms of this Agreement times (II) the amount of Compass-Owned EBITDA
with respect to such Existing Portfolio Company; and (iii) for any Existing Portfolio Company that
is a Disqualified Portfolio Company, zero; and (b) with respect to any New Portfolio Company, the
least of (i) the product of (x) the New Portfolio Company EBITDA of such New Portfolio Company for
the twelve month period ending on the last day of the month for which financial statements
regarding such New Portfolio Company have been most recently delivered to Agent in accordance with
the terms of this Agreement times (y) 1.5; (ii) the sum of (x) the principal balance of the
Qualified Intercompany Debt owing by such New Portfolio Company to Borrower plus (y) the
product of (I) 1.5 minus a fraction, the numerator of which shall be the principal balance of the
Qualified Intercompany Debt owing by such New Portfolio Company to Borrower and the denominator of
which shall be the New Portfolio Company EBITDA of such New Portfolio Company for the twelve month
period ending on the last day of the month for which financial statements regarding such New
Portfolio Company have been most recently delivered to Agent in accordance with the terms of this
Agreement times (II) the amount of Compass-Owned EBITDA with respect to such New Portfolio
Company; and (iii) for any New Portfolio Company that is a Disqualified Portfolio Company, zero.
It is agreed and understood that the Availability Amount for any Portfolio Company shall in no
event be less than zero.

                     Availability Certificate means a certificate substantially in the form of Exhibit
C.

                     Base Rate means, for any day, the greater of (a) the rate of interest which is
identified as the “Prime Rate” and normally published in the Money Rates section of The Wall
Street Journal (or, if such rate ceases to be so published, as quoted from such other generally
available and recognizable source as Agent may select) and (b) the sum of the Federal Funds Rate
plus 0.5%. Any change in the Base Rate due to a change in such Prime Rate or the Federal Funds
Rate shall be effective on the effective date of such change in such Prime Rate or the Federal
Funds Rate.

                     Base Rate Loan means any Loan which bears interest at or by reference to the Base
Rate.

                     Borrower has the meaning set forth in the Preamble.

                     Borrower Expenses means all cash expenses of Borrower, and all cash expenses of the
Trust reimbursed or otherwise funded by Borrower, in each case excluding fees paid to Manager and
permitted hereunder.

                     Borrower LLC Agreement means that certain Amended and Restated Operating Agreement of
Borrower dated as of April 25, 2006, as in effect on the date hereof or as modified in compliance
with the provisions hereof.

                     Borrowing Availability means, as of any date of determination, an amount equal to the
lesser of (a) the Revolving Loan Commitments and (b) the result of (i) Combined Eligible
Availability minus (ii) Total Debt.

-4-

 

                     Borrowing Notice means a notice in substantially the form of Exhibit E.

                     Business Day means any day on which commercial banks are open for commercial banking
business in Chicago, Illinois and New York, New York, and, in the case of a Business Day which
relates to a LIBOR Loan, on which dealings are carried on in the London interbank eurodollar
market.

                     Capital Expenditures means all expenditures which, in accordance with GAAP, would be
required to be capitalized and shown on the consolidated balance sheet of the Trust, but excluding
(i) expenditures made in connection with the replacement, substitution or restoration of assets to
the extent financed (a) from insurance proceeds (or other similar recoveries) paid on account of
the loss of or damage to the assets being replaced or restored, (b) with cash awards of
compensation arising from the taking by eminent domain or condemnation of the assets being replaced
or (c) with cash proceeds of Dispositions that are reinvested in accordance with this Agreement and
(ii) expenditures made to fund the purchase price for assets acquired in a Permitted Eligible
Acquisition or a Permitted Ineligible Acquisition.

                     Capital Lease means, with respect to any Person, any lease of (or other agreement
conveying the right to use) any real or personal property by such Person that, in conformity with
GAAP, is accounted for as a capital lease on the balance sheet of such Person.

                     Cash Equivalent Investment means, at any time, (a) any evidence of Debt, maturing not
more than one year after such time, issued or guaranteed by the United States Government or any
agency thereof, (b) commercial paper, or corporate demand notes, in each case (unless issued by a
Lender or its holding company) rated at least A-l by Standard & Poor’s Ratings Group or P-l by
Moody’s Investors Service, Inc., (c) any certificate of deposit (or time deposit represented by a
certificate of deposit) or banker’s acceptance maturing not more than one year after such time, or
any overnight Federal Funds transaction that is issued or sold by any Lender (or by a commercial
banking institution that is a member of the Federal Reserve System and has a combined capital and
surplus and undivided profits of not less than $500,000,000), (d) any repurchase agreement entered
into with any Lender (or commercial banking institution of the nature referred to in clause (c)
above) which (i) is secured by a fully perfected security interest in any obligation of the type
described in any of clauses (a) through (c) above and (ii) has a market value at the time such
repurchase agreement is entered into of not less than 100% of the repurchase obligation of such
Lender (or other commercial banking institution) thereunder, (e) money market accounts or mutual
funds which invest exclusively in assets satisfying the foregoing requirements and (f) other short
term liquid investments approved in writing by Agent.

                     CBS means CBS Personnel Holdings, Inc., a Delaware corporation.

                     CGI means Compass Group Investments, Inc., a Bahamian international business company.

                     Closing Date means the date on which Lenders make the initial Loans hereunder.

                     Collateral has the meaning set forth in the Collateral Agreement.

                     Collateral Agreement means the Collateral Agreement dated as of the Closing Date by
Borrower in favor of Agent and Lenders, as amended, restated or otherwise modified from time to
time.

                     Collateral Assignment means each agreement in form and substance reasonably
satisfactory to Agent between Borrower and Agent pursuant to which Borrower has collaterally
assigned to Agent to secure the Obligations its rights under Existing Portfolio Company Acquisition
Documents,

-5-

 

New Portfolio Company Acquisition Documents, acquisition documents with respect to an
Acquisition of an Outside Company, or Intercompany Debt Documents (as applicable).

                     Collateral Documents means, collectively, the Collateral Agreement, each Mortgage,
each Collateral Assignment, the Management Fee Subordination Agreement, and each other agreement or
instrument pursuant to or in connection with which Borrower, the Trust or any other Person grants a
security interest in any Collateral to Agent for the benefit of Lenders, each as amended, restated
or otherwise modified from time to time.

                     Combined Eligible Availability means, at any time, the lesser of (i) the sum of (x)
the combined total of the Availability for each Existing Portfolio Company at such time
plus (y) the combined total of the Availability for each New Portfolio Company at such time
and (ii) the aggregate principal balance of the Qualified Intercompany Debt then outstanding;
provided, that if the aggregate amount of the Combined Eligible Availability attributable
to any one Portfolio Company, or any group of Portfolio Companies operating in the same business
industry, exceeds 35% (such percentage to be forty percent (40%) in the case of CBS and Advanced
Circuits), then any such excess amounts shall be excluded from the amount of Combined Eligible
Availability.

                     Commitment Fee means the fee payable by Borrower to Lenders pursuant to Section
2.8.1.

                     Compass-Owned EBITDA means, with respect to any Portfolio Company, the product of (i)
the Existing Portfolio Company EBITDA or New Portfolio Company EBITDA (as applicable) of such
Portfolio Company for the twelve month period ending on the last day of the month for which
financial statements regarding such Portfolio Company have been most recently delivered to Agent in
accordance with the terms of this Agreement times (ii) the percentage of the equity
interests in such Portfolio Company that are directly or indirectly owned and controlled by
Borrower (on a fully-diluted basis).

                     Compliance Certificate means a certificate substantially in the form of Exhibit
B.

                     Computation Period means each period of four consecutive Fiscal Quarters ending on the
last day of a Fiscal Quarter; provided, that solely for purposes of calculating the
Interest Coverage Ratio under Section 7.14.2 and the Fixed Charge Coverage Ratio under
Section 7.14.1, the Computation Period for the Fiscal Quarters ending December 31, 2006,
March 31, 2007 and June 30, 2007 shall be the period commencing on July 1, 2006 and ending on the
last day of such Fiscal Quarter.

                     Consolidated EBITDA means the remainder of (i) sum of (x) the combined total of the
Existing Portfolio Company EBITDA for each Existing Portfolio Company plus (y) the combined
total of the New Portfolio Company EBITDA for each New Portfolio Company, minus (ii)
Minority Net Income.

                     Consolidated Net Income means, with respect to any Person for any period, the
consolidated net income (or loss) of such Person for such period, excluding any gains or
non-cash losses from Dispositions, any extraordinary gains or extraordinary non-cash losses and any
gains or non-cash losses from discontinued operations.

                     Contingent Obligation means any agreement, undertaking or arrangement by which any
Person guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or
indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to or
otherwise to invest in a debtor, or otherwise to assure a creditor against loss) any indebtedness,
obligation or other liability of any other Person (other than by endorsements of instruments in the
course of collection), or guarantees the payment of dividends or other distributions upon the
shares of any other Person. The amount of any Person’s obligation in respect of any Contingent
Obligation shall (subject to any limitation

-6-

 

set forth therein) be deemed to be the principal amount of the debt, obligation or other
liability supported thereby.

          Controlled Group means all members of a controlled group of corporations and all
members of a controlled group of trades or businesses (whether or not incorporated) under common
control which, together with Borrower, are treated as a single employer under Section 414 of the
IRC or Section 4001 of ERISA.

          Conversion/Continuation Notice means a notice in substantially the form of Exhibit
F.

          Crosman means Crosman Acquisition Corporation, a Delaware corporation.

          Debt of any Person means, without duplication, (a) all indebtedness of such Person for
borrowed money, (b) all indebtedness evidenced by bonds, debentures, notes or similar instruments,
(c) all obligations of such Person as lessee under Capital Leases which have been or should be
recorded as liabilities on a balance sheet of such Person in accordance with GAAP, (d) all
obligations of such Person to pay the deferred purchase price of property or services (excluding
trade accounts payable in the ordinary course of business), (e) all indebtedness secured by a Lien
on the property of such Person, whether or not such indebtedness shall have been assumed by such
Person (with the amount thereof being measured as the fair market value of such property), (f) all
obligations, contingent or otherwise, with respect to letters of credit (whether or not drawn),
banker’s acceptances and surety bonds issued for the account of such Person (including the Letters
of Credit, but excluding the SES Letter of Credit to the extent that it is covered by an indemnity
obligation from Allied Capital Corporation), (g) all Hedging Obligations of such Person, (h) all
Contingent Obligations of such Person, (i) all non-compete payment obligations and earn-out and
similar obligations, (j) all indebtedness of any partnership of which such Person is a general
partner and (k) all obligations of such Person under any synthetic lease transaction, where such
obligations are considered borrowed money indebtedness for tax purposes but the transaction is
classified as an operating lease in accordance with GAAP.

          Default means any event that, if it continues uncured, will, with the lapse of time or
the giving of notice or both, constitute an Event of Default.

          Disposition means, as to any asset or right of Borrower or any of the Subsidiaries,
(a) any sale, lease, assignment or other transfer (other than among entities that are within the
same Portfolio Company or within the same Outside Company), (b) any loss, destruction or damage
thereof or (c) any condemnation, confiscation, requisition, seizure or taking thereof, in each case
excluding (i) Dispositions in any Fiscal Year, the Net Cash Proceeds of which do not in the
aggregate exceed (x) with respect to a Portfolio Company or with respect to an Outside Company, the
amount (exclusive of amounts received in connection with transfers described in (ii) below) that is
equal to 15% of the net book value of the tangible assets of such Portfolio Company or Outside
Company (as applicable) as of the last day of the most recently ended fiscal year of such Portfolio
Company or Outside Company (as applicable), and (y) with respect to Borrower, $50,000, and (ii) the
sale or other transfer of Inventory in the ordinary course of business.

          Disqualified Portfolio Company means, as of any date, a Portfolio Company (a) that is
not Solvent, (b) in respect of which an Insolvency Event has occurred or (c) that is in payment
default under an Intercompany Debt Document where such payment has continued unremedied for a
period of at least 90 days.

          Dollar and $ mean lawful money of the United States of America.

-7-

 

          Domestic Subsidiary means any Subsidiary that is incorporated or organized under the
laws of a State within the United States of America or the District of Columbia.

          Environmental Claims means all claims, however asserted, by any governmental,
regulatory or judicial authority or other Person alleging liability or responsibility for a
material violation of any Environmental Law, or for release or injury to the environment or any
Person or property.

          Environmental Laws means all present or future federal, state or local laws, statutes,
common law duties, rules, regulations, ordinances and codes, together with all administrative
orders, directed duties, requests, licenses, authorizations and permits of, and agreements with,
any governmental authority, in each case relating to any matter arising out of or relating to
health and safety, or pollution or protection of the environment or workplace, including any of the
foregoing relating to the presence, use, production, generation, handling, transport, treatment,
storage, disposal, distribution, discharge, release, control or cleanup of any Hazardous Substance.

          ERISA means the Employee Retirement Income Security Act of 1974, as amended.

          Event of Default means any of the events described in Section 8.1.

          Exchange Act means the Securities Exchange Act of 1934, as amended.

          Existing Portfolio Companies means (i) Advanced Circuits, together with its
Wholly-Owned Subsidiaries as of the Closing Date, (ii) Anodyne, together with its Wholly-Owned
Subsidiaries as of the Closing Date, (iii) CBS, together with its Wholly-Owned Subsidiaries as of
the Closing Date, (iv) Crosman, together with its Wholly-Owned Subsidiaries as of the Closing Date,
(v) Silvue, together with its Wholly-Owned Subsidiaries as of the Closing Date and (vi) any New
Portfolio Company, together with its Wholly-Owned Subsidiaries, with respect to which a
reclassification as an Existing Portfolio Company has been approved by Required Lenders in their
sole discretion (it being agreed and understood that Lenders shall make reasonable efforts to
indicate their response within 15 days of receiving a request for a reclassification of a New
Portfolio Company as an Existing Portfolio Company) and an Approval Fee for such New Portfolio
Company has been paid, in each case to the extent that any such company remains a Subsidiary of
Borrower.

          Existing Portfolio Company Acquisition Documents means the primary acquisition
documents governing the acquisition of any of the Existing Portfolio Companies.

          Existing Portfolio Company EBITDA means, for any Existing Portfolio Company for any
period, Consolidated Net Income of such Existing Portfolio Company plus, to the extent
deducted in determining such Consolidated Net Income (and without duplication), (i) the
consolidated interest expense of such Existing Portfolio Company (including all imputed interest on
Capital Leases), (ii) income tax expense of such Existing Portfolio Company, (iii) depreciation and
amortization of such Existing Portfolio Company, (iv) Management Fees paid that are permitted under
Section 7.4 and satisfied by or otherwise allocable to such Existing Portfolio Company, (v)
non-cash charges incurred to reflect any in-process research and development acquired by Borrower
at the time of its acquisition of such Existing Portfolio Company, (vi) expense in respect of any
forgiveness of non-cash loans to management of such Existing Portfolio Company, and (vii) other
non-cash expenses (or less gains or income) deducted in the determination of such Consolidated Net
Income and for which no cash outlay (or cash receipt) is foreseeable prior to the Termination Date;
provided, that with respect to an Existing Portfolio Company that was previously a New
Portfolio Company, for periods prior to the acquisition of such Existing Portfolio Company pursuant
to a Permitted Eligible Acquisition, the amount of such Existing Portfolio Company EBITDA shall be
equal to the Pro Forma EBITDA of such Existing Portfolio Company for such period;

-8-

 

          provided, that, notwithstanding anything to the contrary contained herein, for each of
the calendar months preceding the Closing Date set forth below, the Existing Portfolio Company
EBITDA for each Existing Portfolio Company shall be deemed to be the amount set forth below
opposite such month:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	October	 	November	 	December	 	January	 	February	 	March 
	 	 	2005	 	2005	 	2005	 	2006	 	2006	 	2006
	Anodyne
	 	$	410,000	 	 	$	457,000	 	 	$	804,000	 	 	$	310,000	 	 	$	479,000	 	 	$	564,000	 
	Advanced Circuits
	 	$	1,570,000	 	 	$	1,418,000	 	 	$	1,350,000	 	 	$	1,454,000	 	 	$	1,636,000	 	 	$	2,006,000	 
	CBS
	 	$	2,283,000	 	 	$	1,842,000	 	 	$	4,480,000	 	 	$	479,000	 	 	$	1,064,000	 	 	$	2,695,000	 
	Crosman
	 	$	1,981,000	 	 	$	2,158,000	 	 	$	1,575,000	 	 	$	1,957,000	 	 	$	1,018,000	 	 	$	1,776,000	 
	Silvue
	 	$	498,000	 	 	$	517,000	 	 	$	532,000	 	 	$	477,000	 	 	$	298,000	 	 	$	751,000	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	April	 	 	 	 	 	 	 	 	 	 	 	 	 	August	 	September
	 	 	2006	 	May 2006	 	June 2006	 	July 2006	 	2006	 	2006
	Anodyne
	 	$	466,000	 	 	$	514,000	 	 	$	676,000	 	 	$	589,000	 	 	$	595,000	 	 	$	317,000	 
	Advanced Circuits
	 	$	1,709,000	 	 	$	1,850,000	 	 	$	1,897,000	 	 	$	1,602,000	 	 	$	2,001,000	 	 	$	1,628,000	 
	CBS
	 	$	1,840,000	 	 	$	1,597,000	 	 	$	2,829,000	 	 	$	1,404,000	 	 	$	1,911,000	 	 	$	3,192,000	 
	Crosman
	 	$	1,759,000	 	 	$	1,759,000	 	 	$	2,379,000	 	 	$	1,168,000	 	 	$	1,465,000	 	 	$	2,050,000	 
	Silvue
	 	$	630,000	 	 	$	542,000	 	 	$	700,000	 	 	$	645,000	 	 	$	620,000	 	 	$	955,000	 

                     Existing US Bank Letters of Credit means the letters of credit that are specified on
the Schedule 1.2 attached hereto.

                     Federal Funds Rate means, for any day, a rate per annum (rounded upward to the nearest
1/100th of 1%) equal to the rate published by the Federal Reserve Bank of New York on the preceding
Business Day or, if no such rate is so published, the average rate per annum, as determined by
Agent, quoted for overnight Federal Funds transactions last arranged prior to such day.

                     Fee and Syndication Letter means, that certain fee and syndication letter dated as of
even date herewith by Agent and acknowledged by Borrower, as amended, restated or otherwise
modified from time to time.

                     Fiscal Quarter means a fiscal quarter of a Fiscal Year.

                     Fiscal Year means the fiscal year of Borrower, which period shall be the 12-month
period ending on December 31 of each year.

-9-

 

          Fixed Charge Coverage Ratio means, for any Computation Period, the ratio of (a) the
remainder for such period of (i) Consolidated EBITDA minus (ii) the sum of all income
taxes, and tax distributions described in Section 7.4, paid or payable in cash by Borrower
and the Subsidiaries, minus (iii) all Capital Expenditures minus (iv) the aggregate
amount of Management Fees paid in cash by Borrower and/or the Portfolio Companies pursuant to the
Management Fee Documents minus (v) Borrower Expenses to (b) the sum for such period
of (i) Interest Expense accrued for such Computation Period and paid or payable in cash at anytime
(excluding in all instances any interest paid in kind), plus (ii) required payments of principal of
Debt (excluding the Revolving Loans and excluding required payments of principal in respect of
Qualified Intercompany Debt).

          Foreign Subsidiary means any Subsidiary that is not a Domestic Subsidiary.

          FRB means the Board of Governors of the Federal Reserve System or any successor
thereto.

          GAAP means generally accepted accounting principles in effect in the United States of
America set forth from time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements and pronouncements
of the Financial Accounting Standards Board (or agencies with similar functions of comparable
stature and authority within the U.S. accounting profession), which are applicable to the
circumstances as of the date of determination.

          Hazardous Substances means hazardous waste, hazardous substance, pollutant,
contaminant, toxic substance, oil, hazardous material, chemical or other substance regulated by any
Environmental Law.

          Hedging Obligation means, with respect to any Person, any liability of such Person
under any interest rate, currency or commodity swap agreement, cap agreement or collar agreement,
and any other agreement or arrangement designed to protect a Person against fluctuations in
interest rates, currency exchange rates or commodity prices. The amount of any Person’s obligation
in respect of any Hedging Obligation shall be deemed to be the incremental obligation that would be
reflected in the financial statements of such Person in accordance with GAAP.

          Increase Notice has the meaning set forth in Section 2.1.2.

          Insolvency Event means, in respect of any Portfolio Company, such Portfolio Company
becomes insolvent or generally fails to pay, or admits in writing its inability or refusal to pay,
debts as they become due; or such Portfolio Company applies for, consents to, or acquiesces in the
appointment of a trustee, receiver or other custodian for such Portfolio Company or any property
thereof, or makes a general assignment for the benefit of creditors; or, in the absence of such
application, consent or acquiescence, a trustee, receiver or other custodian is appointed for such
Portfolio Company or for a substantial part of the property of any thereof and is not discharged
within 60 days; or any bankruptcy, reorganization, debt arrangement, or other case or proceeding
under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is commenced
in respect of such Portfolio Company, and if such case or proceeding is not commenced by such
Portfolio Company, it is consented to or acquiesced in by such Portfolio Company, or remains for 60
days undismissed; or such Portfolio Company takes any action to authorize, or in furtherance of,
any of the foregoing.

          Intercompany Debt means any Debt owing by a Portfolio Company or an Outside Company to
Borrower.

-10-

 

          Intercompany Debt Document means any agreement that governs, guarantees or secures any
Intercompany Debt.

          Interest Coverage Ratio means, for any Computation Period, the ratio of (a) the
remainder of (i) Consolidated EBITDA for such Computation Period minus (ii) the aggregate
amount of Management Fees paid in cash by Borrower and/or the Portfolio Companies pursuant to the
Management Fee Documents minus (iii) Borrower Expenses to (b) Interest Expense accrued for
such Computation Period and paid or payable in cash at anytime by Borrower and the Subsidiaries
(excluding in all instances any interest paid in kind).

          Interest Expense means, for any period, the consolidated interest expense of the
Trust, Borrower and the Subsidiaries for such period (including all imputed interest on Capital
Leases, but excluding interest expense of the Portfolio Companies in respect of Qualified
Intercompany Debt).

          Interest Period means, as to any LIBOR Loan, the period commencing on the date such
Loan is borrowed or continued as, or converted into, a LIBOR Loan and ending on the date one, two,
three or six months thereafter, as selected by Borrower pursuant to Section 2.2.2 or
2.2.3, as the case may be; provided, that: (a) if any Interest Period would otherwise end
on a day that is not a Business Day, such Interest Period shall be extended to the following
Business Day unless the result of such extension would be to carry such Interest Period into
another calendar month, in which event such Interest Period shall end on the preceding Business
Day; (b) any Interest Period that begins on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period shall end on the last Business Day of
the calendar month at the end of such Interest Period; and (c) Borrower may not select any Interest
Period for a Revolving Loan which would extend beyond the scheduled Termination Date.

          Inventory has the meaning set forth in the Collateral Agreement.

          Investment means, with respect to any Person, (a) the purchase of any debt or equity
security of any other Person, (b) the making of any loan or advance to any other Person, (c)
becoming obligated with respect to a Contingent Obligation in respect of obligations of any other
Person (other than travel and similar advances to employees in the ordinary course of business) or
(d) the making of an Acquisition.

          Investment Affiliate means, with respect to Manager, any fund or investment vehicle
that (a) is organized by Manager for the purpose of making equity or debt investments in one or
more companies and (b) is controlled by Manager. For purposes of this definition “control” means
the power to direct or cause the direction of management and policies of a Person, whether by
contract or otherwise.

          IRC means the Internal Revenue Code of 1986, as amended.

          Issuing Lender means Madison, or such other financial institution approved by Agent
and specified to Borrower by Agent.

          Legal Costs means, with respect to any Person, (a) all reasonable fees and charges of
any counsel, accountants, auditors, appraisers, consultants and other professionals to such Person,
(b) the reasonable allocable cost of internal legal services of such Person and all reasonable
disbursements of such internal counsel and (c) all court costs and similar legal expenses.

          Lenders has the meaning set forth in the Preamble.

          Letter of Credit has the meaning set forth in Section 2.3.1.

-11-

 

          Letter of Credit Fee means the fee payable by Borrower to Lenders pursuant to
Section 2.8.2.

          LIBOR Loan means any Loan which bears interest at a rate determined by reference to
the LIBOR Rate.

          LIBOR Rate means, with respect to any LIBOR Loan for any Interest Period, a rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to (i) the offered rate for
deposits in Dollars for the applicable Interest Period and for the amount of the applicable LIBOR
Loan that appears on Telerate Page 3750 at 11:00 a.m. London time (or, if not so appearing, as
published in the “Money Rates” section of The Wall Street Journal or another national
publication selected by Agent) two Business Days prior to the first day of such Interest Period,
divided by (ii) the sum of one minus the daily average during such Interest Period of the aggregate
maximum reserve requirement (expressed as a decimal) then imposed under Regulation D of the FRB for
“Eurocurrency Liabilities” (as defined therein).

          Lien means, with respect to any Person, any interest granted by such Person in any
real or personal property, asset or other right owned or being purchased or acquired by such Person
which secures payment or performance of any obligation and shall include any mortgage, lien,
encumbrance, charge or other security interest of any kind, whether arising by contract, as a
matter of law, by judicial process or otherwise.

          LLC Agreement means that certain Amended and Restated Operating Agreement of Borrower
dated as of April 25, 2006, as in effect as of the date hereof and as modified in compliance with
the provisions hereof.

          Loan Documents means this Agreement, the Notes, the Letters of Credit, the Collateral
Documents, the Fee and Syndication Letter, and all documents, instruments and agreements delivered
in connection with the foregoing, all as amended, restated or otherwise modified from time to time.

          Loans means Revolving Loans.

          Madison has the meaning set forth in the Preamble.

          Management Fee Agreement means that certain Management Services Agreement, dated as of
May 16, 2006, by and between Borrower and Manager, as amended on November 8, 2006 and as may from
time to time hereafter be amended as permitted hereby.

          Management Fee Documents means collectively, the Management Fee Agreement and each
management services agreement entered into between a Portfolio Company and the Manager or an
Affiliate of the Manager having terms whereby payments made under such management services
agreement by such Portfolio Company reduce on a dollar-for-dollar basis the total payment
obligations of Borrower under the Management Fee Agreement.

          Management Fee Subordination Agreement means an agreement satisfactory to Agent in
form and substance among Agent and the parties to the Management Fee Documents that subordinates
the obligations of the Borrower under the Management Fee Documents to the Obligations upon the
occurrence and continuation of an Acceleration Event and the commencement of an exercise of
remedies against any portion of the Collateral by Agent.

          Management Fees means all fees paid to Manager pursuant to the Management Fee
Documents.

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          Manager means Compass Group Management LLC, a Delaware limited liability company.

          Margin Stock means any “margin stock” as defined in Regulation T, U or X of the FRB.

          Material Adverse Effect means (a) a material adverse change in, or a material adverse
effect upon, the financial condition, operations, assets, business, properties or prospects of (i)
Borrower or (ii) a Portfolio Company, (b) a material impairment of the ability of Borrower to
perform any of its Obligations under any Loan Document or (c) a material adverse effect upon any
substantial portion of the Collateral under the Collateral Documents or upon the legality,
validity, binding effect or enforceability against Borrower of any Loan Document.

          Minority Net Income means, for any period, (x) with respect to any Portfolio Company,
the product of (i) the Consolidated Net Income of such Portfolio Company for such period
times (ii) the percentage of the equity interests in such Portfolio Company that are not
directly or indirectly owned and controlled by Borrower and (y) with respect to the Portfolio
Companies collectively, the combined Minority Net Income for each Portfolio Company for such
period.

          Mortgage means each mortgage, deed of trust, leasehold mortgage or similar instrument,
if any, granting Agent a Lien on a real property interest of Borrower, as amended, restated or
otherwise modified from time to time.

          Multiemployer Pension Plan means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which Borrower or any member of the Controlled Group may have any
liability.

          Net Cash Proceeds means:

     (a) with respect to any Disposition, the aggregate cash proceeds (including cash
proceeds received pursuant to policies of insurance and by way of deferred payment of
principal pursuant to a note, installment receivable or otherwise, but only as and when
received) received by the Trust, Borrower or any Subsidiary pursuant to such Disposition net
of (i) the reasonable direct costs relating to such Disposition (including, without
duplication, sales commissions and legal, accounting and investment banking fees,
commissions and expenses, any Transaction Services Fee required to be paid to Manager as a
result of such Disposition and permitted under Section 7.4, and any Allocation
Member Distributions payable to the Allocation Member as a result of such Disposition), (ii)
any portion of such proceeds deposited in an escrow account pursuant to the documentation
relating to such Disposition (provided that such amounts shall be treated as Net Cash
Proceeds upon their release from such escrow account to Borrower or the applicable
Subsidiary), (iii) taxes paid or reasonably estimated by Borrower to be payable as a result
thereof (after taking into account any available tax credits or deductions and any tax
sharing arrangements), (iv) amounts required to be applied to the repayment of any Debt
secured by a Lien prior to (1) the Lien of Agent, in the case of assets of Borrower, or (2)
the Lien of Borrower pursuant to Qualified Intercompany Debt Documents, in the case of
assets of a Subsidiary, on the asset subject to such Disposition, (v) in the case of a
Disposition by a Subsidiary at a time when the balance of the Intercompany Debt owed by such
Subsidiary is zero, the portion of such proceeds paid to equityholders of such Subsidiary
other than Borrower or another Subsidiary as a pro rata distribution at time of the
distribution of the proceeds of such Disposition by such Subsidiary to its equityholders,
(vi) in the case of a Disposition by an Outside Company, the portion of such proceeds paid
in satisfaction of Outside Debt owing by such Outside Company, and (vii) so long as no Event
of Default exists, (A) with respect to any Disposition described in clause (a) of the
definition thereof, all money actually applied within 180 days to replace such assets with
assets performing the same or similar functions, and (B) with

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respect to any Disposition described in clause (b) or (c) of the definition thereof,
all money actually applied within 180 days to repair, replace or reconstruct damaged
property or property affected by loss, destruction, damage, condemnation, confiscation,
requisition, seizure or taking; and

     (b) with respect to any issuance of equity securities, the aggregate cash proceeds
received by Borrower pursuant to such issuance, net of the reasonable direct costs relating
to such issuance (including reasonable sales and underwriter’s commission).

          New Portfolio Company means (i) a Target acquired after the Closing Date by Borrower
as a new portfolio company pursuant to a Permitted Eligible Acquisition or (ii) a Target acquired
after the Closing Date by an Existing Portfolio Company as an add-on acquisition by such Existing
Portfolio Company in a Permitted Eligible Acquisition, in each case together with the Wholly-Owned
Subsidiaries of such Target and to the extent that any such Target remains a Subsidiary of Borrower
and has not been reclassified as an Existing Portfolio Company. For the avoidance of doubt, the
New Portfolio Companies shall in all instances exclude any Outside Companies.

          New Portfolio Company Acquisition Documents means the primary acquisition documents
governing the acquisition of any of the New Portfolio Companies.

          New Portfolio Company EBITDA means, for any New Portfolio Company for any period, (x)
with respect to periods after the acquisition of such New Portfolio Company pursuant to a Permitted
Eligible Acquisition, Consolidated Net Income of such New Portfolio Company plus, to the
extent deducted in determining such Consolidated Net Income, (i) the consolidated interest expense
of such New Portfolio Company (including all imputed interest on Capital Leases), (ii) income tax
expense of such New Portfolio Company, (iii) depreciation and amortization of such New Portfolio
Company, (iv) Management Fees paid that are permitted under Section 7.4 and satisfied by or
otherwise allocable to such New Portfolio Company, (v) non-cash charges incurred to reflect any
in-process research and development acquired by Borrower at the time of its acquisition of such New
Portfolio Company, (vi) expense in respect of any forgiveness of non-cash loans to management of
such New Portfolio Company, and (vii) other non-cash expenses (or less gains or income) deducted in
the determination of such Consolidated Net Income and for which no cash outlay (or cash receipt) is
foreseeable prior to the Termination Date; and (y) with respect to periods prior to the acquisition
of such New Portfolio Company pursuant to a Permitted Eligible Acquisition, Pro Forma EBITDA for
such New Portfolio Company.

          Note means a promissory note substantially in the form of Exhibit D, as the
same may be amended, restated or otherwise modified from time to time.

          Obligations means all liabilities, indebtedness and obligations (monetary (including
post-petition interest, allowed or not) or otherwise) of the Borrower under this Agreement, any
other Loan Document, any Collateral Document or any other document or instrument executed in
connection herewith or therewith and all Hedging Obligations permitted hereunder which are owed to
any Lender or its Affiliate, in each case howsoever created, arising or evidenced, whether direct
or indirect, absolute or contingent, now or hereafter existing, or due or to become due. It is
agreed and understood that the Obligations shall include any reimbursement obligations of any
Person that are owing to Issuing Lender in respect of the Existing US Bank Letters of Credit.

          Outside Company means a Subsidiary of Borrower (and not of any Portfolio Company)
acquired pursuant to a Permitted Ineligible Acquisition, together with any Subsidiaries of such
Subsidiary and any Acquisition Subsidiary formed to consummate such Permitted Ineligible
Acquisition.

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          Outside Debt means (i) Indebtedness that does not constitute Qualified Intercompany
Indebtedness and is incurred or assumed by an Outside Company in connection with the Acquisition of
such Outside Company pursuant to a Permitted Ineligible Acquisition and (ii) any Indebtedness
incurred by an Outside Company subsequent to the Acquisition of such Outside Company pursuant to a
Permitted Ineligible Acquisition.

          Paid in Full, Pay in Full or Payment in Full means, with respect to
any Obligations, (a) the payment in full in cash of all such Obligations (other than (i) contingent
indemnification obligations to the extent no claim giving rise thereto has been asserted and (ii)
Hedging Obligations that, at the time of determination, are allowed by the Person that such Hedging
Obligations are owing to remain outstanding or are not required to be repaid or cash collateralized
pursuant to the provisions of any document governing the Hedging Obligations), (b) the termination
or expiration of all of the Revolving Loan Commitments and (c) in connection with the termination
or expiration of the Revolving Loan Commitments, either (i) the cancellation and return to Agent of
all Letters of Credit or (ii) the cash collateralization of all Letters of Credit (in an amount
equal to 105% of the Stated Amount of such Letters of Credit) in a manner reasonably acceptable to
Agent.

          PBGC means the Pension Benefit Guaranty Corporation and any entity succeeding to any
or all of its functions under ERISA.

          Pension Plan means a “pension plan”, as such term is defined in Section 3(2) of ERISA,
which is subject to Title IV of ERISA (other than a Multiemployer Pension Plan), and to which
Borrower or any member of the Controlled Group may have any liability, including any liability by
reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any
time during the preceding five years, or by reason of being deemed to be a contributing sponsor
under Section 4069 of ERISA.

          Permitted Eligible Acquisition means any Acquisition by (i) an Acquisition Subsidiary
of Borrower of all or substantially all of the assets of a Person as a New Portfolio Company of
Borrower, or of all or substantially all of any business or division of a Person as a New Portfolio
Company of Borrower, (ii) Borrower of no less than a voting majority of the capital stock,
partnership interests, membership interests or equity of any Person as a New Portfolio Company of
Borrower, (iii) a Portfolio Company (or an Acquisition Subsidiary of such Portfolio Company) of all
or substantially all of the assets of a Person as an add-on acquisition for such Portfolio Company,
or of all or substantially all of any business or division of a Person as an add-on acquisition for
such Portfolio Company or (iv) a Portfolio Company of no less than 100% of the capital stock,
partnership interests, membership interests or equity of any Person as an add-on acquisition for
such Portfolio Company, in each case to the extent that each of the conditions precedent set forth
in Annex III shall have been satisfied. It is agreed and understood that the SES Add-On
Acquisition shall be a Permitted Eligible Acquisition within the foregoing clause (iii) so long as
(x) the SES Add-On Acquisition is consummated on or within 10 Business Days of the date hereof and
(y) no Event of Default exists either before or after giving effect to the SES Add-On Acquisition.

          Permitted Ineligible Acquisition means any Acquisition that is funded in whole or in
part by Outside Debt incurred only after Required Lenders have refused to allow for the treatment
of the applicable Target in such Acquisition as an Existing Portfolio Company in accordance with
the provisions hereof and where (i) an Acquisition Subsidiary of Borrower has acquired all or
substantially all of the assets of a Person as an Outside Company, or of all or substantially all
of any business or division of a Person as an Outside Company or (ii) Borrower has acquired no less
than a voting majority of the capital stock, partnership interests, membership interests or equity
of any Person as an Outside Company, in each case to the extent that each of the conditions
precedent set forth in Annex IV shall have been satisfied.

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          Permitted Trust Merger means a merger of the Trust with and into Borrower, with
Borrower as the surviving company, which is consummated with prior written notice to Agent and in
compliance with the Trust Agreement and applicable law, and otherwise on terms and conditions
reasonably acceptable to Agent.

          Person means any natural person, corporation, partnership, trust, limited liability
company, association, governmental authority or unit, or any other entity, whether acting in an
individual, fiduciary or other capacity.

          Portfolio Companies means the Existing Portfolio Companies and the New Portfolio
Companies, and shall in all instances exclude any Outside Companies.

          Portfolio Company Leverage Ratio means, for any Portfolio Company as of any date of
determination, the ratio of (a) all Debt (other than Debt described in clauses (h) and (i) of the
definition thereof unless such Debt is reflected on the balance sheet of such Portfolio Company as
a liability in accordance with GAAP) of such Portfolio Company, determined on a consolidated basis
for such Portfolio Company to (B) the Existing Portfolio Company EBITDA or New Portfolio Company
EBITDA (as applicable) of such Portfolio Company for the twelve month period ending on the last day
of the month for which financial statements regarding such Portfolio Company have been most
recently delivered to Agent in accordance with the terms of this Agreement.

          Prior Debt means the Debt listed on Schedule 4.1.3.

          Pro Forma EBITDA means, for any Person, EBITDA for such Person as calculated in
accordance with clause (x) of the definition of New Portfolio Company EBITDA for the most recent
period for which financial statements are made available to Agent at the time of determination, and
as adjusted by extraordinary expenses, increased costs, identifiable and verifiable expense
reductions and excess management compensation, if any, in each case calculated by Borrower in
accordance with the requirements of GAAP and Article XI of regulation S-X under the Exchange Act
and verified by an Approved Professional.

          Pro Rata Share means, with respect to any Lender, the applicable percentage (as
adjusted from time to time in accordance with the terms hereof) specified opposite such Lender’s
name on Annex I which corresponds to the Revolving Loan Commitment, which percentage shall
be with respect to Revolving Outstandings if the Revolving Loan Commitments have terminated.

          Public Market means a recognized public market for trading of securities on which
shares of all or substantially all of the issued and outstanding equity interests in the Trust have
been distributed by means of an effective registration statement under the Securities Act of 1933,
as amended.

          Qualified Intercompany Debt means, without duplication, Intercompany Debt that is
owing by a Portfolio Company pursuant to Qualified Intercompany Debt Documents and that has a
maturity date, an interest rate, an amortization schedule for principal, mandatory prepayment
provisions and interest payment dates that are reasonably acceptable to Agent (it being agreed and
understood that such terms as in effect on the Closing Date under the Intercompany Debt Documents
for the Existing Portfolio Companies are acceptable to Agent).

          Qualified Intercompany Debt Documents means, in respect of any Portfolio Company, (i)
a reasonable and customary senior secured loan agreement (that is inclusive of reasonable and
customary representations and warranties, affirmative, negative and financial covenants and events
of default) between Borrower, as the sole lender, and the borrower or co-borrowers thereunder, as
such Intercompany Loan Agreement may be amended from time to time in compliance with the provisions
of

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this Agreement, (ii) guaranty documentation pursuant to which any Subsidiaries of the
borrower, or co-borrowers, as applicable, under such Intercompany Loan Agreement guaranty all of
obligations under such Intercompany Loan Agreement, and (iii) collateral documents pursuant to
which Borrower is provided with a perfected, first-priority Lien in substantially all of the real
and personal property of the borrower, or co-borrowers, as applicable, under such Intercompany Loan
Agreement, and the guarantors under such guaranty documentation to secure all of the obligations
under such Intercompany Loan Agreement and related Intercompany Debt Documents, including without
limitation a security agreement applicable to all of the equity interests in and substantially all
of the assets of such borrowers and guarantors, UCC financing statements covering all of the assets
of such borrowers and guarantors that are properly filed in the respective jurisdictions of
organization for such companies, real estate mortgages for any real estate of such borrowers and
guarantors, control agreements with respect to the deposit accounts of such borrowers and
guarantors and insurance documentation whereby Borrower has been named as loss payee in respect of
all policies of property and casualty insurance of such borrowers and guarantors.

          Related Agreements means the Intercompany Debt Documents, the Management Fee
Documents, the Existing Portfolio Company Acquisition Documents, the New Portfolio Company
Acquisition Documents, the agreements governing payment of the Transaction Services Fees, the
Borrower LLC Agreement, the Trust Agreement, the Supplemental Put Agreement between Borrower and
the Manager, and any contracts listed on Schedule 7.8.

          Related Transactions means the transactions contemplated by the Related Agreements.

          Requested Revolver Increase has the meaning set forth in Section 2.1.2.

          Required Lenders means Lenders having Pro Rata Shares the aggregate Dollar equivalent
amount of which equals or exceeds 50.1% of the Revolving Loan Commitments (or, if the Revolving
Loan Commitments have been terminated, Revolving Outstandings).

          Revolving Loan Commitments means an aggregate amount of $250,000,000, as reduced from
time to time pursuant to the terms hereof or as increased pursuant to the terms of Section
2.1.2 hereof.

          Revolving Loans has the meaning set forth in Section 2.1.1.

          Revolving Outstandings means, at any time, the sum of (a) the aggregate principal
amount of all Revolving Loans then outstanding, plus (b) the Stated Amount of all Letters of Credit
then outstanding.

          SES Add-On Acquisition means the acquisition by Venturi Staffing Partners, Inc., a
Wholly-Owned Subsidiary of CBS, of substantially all of the assets of PMC Staffing Solutions, Inc.,
for a purchase price not to exceed $5,000,000 pursuant to the terms and conditions of that certain
Asset Purchase Agreement dated as of October 31, 2006, among Venturi Staffing Partners, Inc., PMC
Staffing Solutions, Inc. and Staffing Partners Holding Company, Inc.

          SES Letter of Credit means that certain irrevocable letter of credit issued by U.S.
Bank National Association in favor of Susquehanna Bank in the aggregate face amount of $950,998.

          Silvue means Silvue Technologies Group, Inc., a Delaware corporation.

          Solvent means, with respect to any Person on any date, that as of such date, (a) the
fair market value of its assets is greater than the amount of its liabilities (including disputed,
contingent and unliquidated liabilities) as such value is established and liabilities evaluated,
(b) the present fair saleable

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value of its assets is not less than the amount that will be required to pay the probable
liability on its debts as they become absolute and matured, (c) it is able to realize upon its
assets and pay its debts and other liabilities (including disputed, contingent and unliquidated
liabilities) as they mature in the normal course of business, (d) it does not intend to, and does
not believe that it will, incur debts or liabilities beyond its ability to pay as such debts and
liabilities mature and (e) it is not engaged in business or a transaction, and is not about to
engage in business or a transaction, for which its property would constitute unreasonably small
capital.

          Stated Amount means, with respect to any Letter of Credit at any date of
determination, (a) the maximum aggregate amount available for drawing thereunder under any and all
circumstances, plus (b) the aggregate amount of all unreimbursed payments and disbursements under
such Letter of Credit.

          Subordinated Debt means any other unsecured Debt of Borrower which has subordination
terms, covenants, pricing and other terms which have been approved in writing by Agent.

          Subsidiary means, with respect to any Person, a corporation, partnership, limited
liability company or other entity of which such Person owns, directly or indirectly, such number of
outstanding shares or other equity interests as to have more than 50% of the ordinary voting power
for the election of directors or other managers of such corporation, partnership, limited liability
company or other entity. Unless the context otherwise requires, each reference to Subsidiaries
herein shall be a reference to Subsidiaries of Borrower.

          Target means the Person, or business or substantially all of the assets of a Person,
acquired in an Acquisition.

          Termination Date means November 21, 2011 or such earlier date on which the Revolving
Loan Commitments terminate pursuant to Section 2.9 or 8.

          Total Debt means all Debt (other than Qualified Intercompany Debt, Outside Debt and
Debt described in clauses (h) and (i) of the definition thereof unless such Debt is reflected on
the balance sheet of the Trust or Borrower as a liability in accordance with GAAP) of Borrower and
the Subsidiaries, determined on a consolidated basis, net of all cash and cash equivalents of
Borrower on deposit in an account that is subject to a tri-party agreement in favor of Agent that
complies with the requirements of Section 7.15.

          Total Debt to EBITDA Ratio means, as of the last day of any Fiscal Quarter, the ratio
of (a) Total Debt as of such day to (b) Consolidated EBITDA for the Computation Period ending on
such day.

          Total Loan Commitment means at any date of determination, the Revolving Loan
Commitments at such date (or if the Revolving Loan Commitments have terminated, the Revolving
Outstandings).

          Transaction Services Fee means a transaction fee payable by a Portfolio Company or an
Outside Company to Manager (or an Affiliate of Manager) in connection with an acquisition or sale
of such Portfolio Company or Outside Company that is permitted hereunder, or in connection with the
consummation of an add-on acquisition by such Portfolio Company or Outside Company that is
permitted hereunder.

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          Trust means Compass Diversified Trust, a Delaware statutory trust, together with any
other statutory or other trust that hereafter holds Trust Interests (as defined in the Borrower LLC
Agreement).

          Trust Agreement means that certain Amended and Restated Trust Agreement of the Trust
dated as of April, 2006, among Borrower, as Sponsor, The Bank of New York (Delaware), as Delaware
Trustee, and the other trustees named therein, as in effect as of the date hereof or as modified in
compliance with the provisions hereof.

          Wholly-Owned Subsidiary means, as to any Person, another Person all of the equity
interests of which (except directors’ qualifying shares) are at the time directly or indirectly
owned by such Person and/or another Wholly-Owned Subsidiary of such Person.

     1.2. Interpretation.

          In the case of this Agreement and each other Loan Document, (a) the meanings of defined terms
are equally applicable to the singular and plural forms of the defined terms; (b) Annex, Exhibit,
Schedule and Section references are to such Loan Document unless otherwise specified; (c) the term
“including” is not limiting and means “including but not limited to”; (d) in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including”; the words “to” and “until” each mean “to but excluding”, and the word “through” means
“to and including”; (e) unless otherwise expressly provided in such Loan Document, (i) references
to agreements and other contractual instruments shall be deemed to include all subsequent
amendments and other modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of any Loan Document, and (ii) references to any
statute or regulation shall be construed as including all statutory and regulatory provisions
amending, replacing, supplementing or interpreting such statute or regulation; (f) this Agreement
and the other Loan Documents may use several different limitations, tests or measurements to
regulate the same or similar matters, all of which are cumulative and each shall be performed in
accordance with its terms; and (g) this Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel to Agent, Borrower, Lenders and the other
parties hereto and thereto and are the products of all parties; accordingly, they shall not be
construed against Agent or Lenders merely because of Agent’s or Lenders’ involvement in their
preparation.

Section 2. Credit Facilities.

     2.1. Commitments.

          On and subject to the terms and conditions of this Agreement, each Lender, severally and for
itself alone, agrees as follows:

     2.1.1. Revolving Loan Commitments.

          Each Lender will make loans to Borrower on a revolving basis (“Revolving Loans”) from
time to time and Borrower may repay such loans from time to time until the Termination Date in such
Lender’s Pro Rata Share of such aggregate amounts as Borrower may request from all Lenders;
provided, that after giving effect to such Revolving Loans, the Revolving Outstandings will
not at any time exceed Borrowing Availability.

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     2.1.2. Request for Increase of Revolving Loan Commitments.

          The Lenders agree that Borrower may, on any Business Day from time to time after the Closing
Date through November 21, 2008 and so long as no Default or Event of Default has occurred and is
continuing, deliver a written notice to Agent (an “Increase Notice”) requesting an increase
in the Revolving Loan Commitments in an aggregate amount for all such increases collectively of up
to $50,000,000 (a “Requested Revolver Increase”). If Borrower delivers an Increase Notice,
each Lender shall have the option to participate in the Requested Revolver Increase to the extent
of its Pro Rata Share thereof by delivering a written notice to the Agent and Borrower within ten
Business Days of such Lender’s receipt of the Increase Notice (it being agreed and understood that
such Lender shall be deemed to have elected not to participate in the Requested Revolver Increase
if it does not respond to the Increase Notice within ten Business Days of its receipt thereof). If
one or more of the Lenders elect not to participate in the Requested Revolver Increase, then the
Lenders participating in the Requested Revolver Increase may, at their option, elect to participate
in such remaining portion of the Requested Revolver Increase (with such remaining portion to be
allocated ratably among such participating Lenders based on their respective Pro Rata Shares or as
otherwise may be agreed by such participating Lenders). If there is less than full participation
by existing Lenders in the Requested Revolver Increase after the foregoing procedures are
completed, then one or more new Lenders acceptable to Agent and Borrower may be added as parties to
this Agreement pursuant to Assignment Agreements for purposes of participating in such remaining
portion (with allocations among such new Lenders to be determined by Agent in consultation with
Borrower). After giving effect to the procedures described in this Section 2.1.2, each
Lender participating in the Requested Revolver Increase shall have its Revolving Loan Commitment
increased to the extent of its participation and, upon the request of such Lender, Borrower will
execute a replacement Note for such Lender reflecting the increased amount of its Revolving Loan
Commitment. Borrower agrees to execute such amendments and supplements to the Collateral Documents
as Agent reasonably deems necessary in connection with a Requested Revolver Increase. No Increase
Notice may be given unless it relates to a Requested Revolver Increase of at least $10,000,000 and
no more than three Increase Notices in the aggregate may be delivered by Borrower pursuant to this
Section 2.1.2. Any Requested Revolver Increase that occurs pursuant to this Section
2.1.2 shall become part of the Revolving Loan Commitments for all purposes hereunder and under
the Collateral Documents and shall be secured by the Collateral in all respects.

     2.2. Loan Procedures.

     2.2.1. Loan Types.

          Each Loan shall be either a Base Rate Loan or a LIBOR Loan, as Borrower shall specify in the
related notice of borrowing or conversion pursuant to Section 2.2.2 or 2.2.3. Base
Rate Loans and LIBOR Loans may be outstanding at the same time, provided that not more than five
different Interest Periods shall exist among outstanding LIBOR Loans at any one time. All
borrowings, conversions and repayments of Revolving Loans shall be effected so that each Lender
will have a ratable share (according to its Pro Rata Share) of all Revolving Loans and all Interest
Periods of LIBOR Loans. Notwithstanding the foregoing or any other provision of this Agreement,
Borrower may not select any Interest Period for a LIBOR Loan which is longer than one month prior
to the earlier of (a) 90 days after the Closing Date and (b) the date that Agent notifies Borrower
that it has completed its primary syndication of the Loans and the Revolving Loan Commitments.

     2.2.2. Borrowing.

          Borrower shall give written notice or telephonic notice (followed immediately by written
confirmation thereof) to Agent of each proposed borrowing of a Revolving Loan not later than (a) in
the case of a Base Rate borrowing, 11:00 a.m. Chicago time on the proposed date of such borrowing,
and

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(b) in the case of a LIBOR borrowing, 11:00 a.m. Chicago time at least three Business Days
prior to the proposed date of such borrowing. Each such notice shall be effective upon receipt by
Agent, shall be irrevocable, and shall specify, in the form of a Borrowing Notice, the date, amount
and type of borrowing and, in the case of a LIBOR borrowing, the initial Interest Period therefor.
Promptly upon receipt of such notice, Agent shall advise each Lender with a Revolving Loan
Commitment thereof in writing. Not later than 1:00 p.m. Chicago time on the date of a proposed
Revolving Loan borrowing, each Lender with a Revolving Loan Commitment shall provide Agent at the
office specified by Agent with immediately available funds covering such Lender’s applicable Pro
Rata Share of such borrowing and, so long as Agent has not received written notice that the
conditions precedent set forth in Section 4 with respect to such borrowing have not been
satisfied, Agent shall pay over the funds received by Agent to Borrower on the requested borrowing
date. Each borrowing shall be on a Business Day. Each Base Rate borrowing shall be in an
aggregate amount of at least $100,000 and an integral multiple of $50,000, and each LIBOR borrowing
shall be in an aggregate amount of at least $100,000 and an integral multiple of at least $50,000.

     2.2.3. Conversion; Continuation.

          (a) Subject to Section 2.2.1, Borrower may, upon irrevocable written notice to Agent
in accordance with clause (b) below, elect (i) as of any Business Day, to convert any Loans (or any
part thereof in an aggregate amount of not less than $100,000 or a higher integral multiple of
$50,000) into Loans of the other type or (ii) as of the last day of the applicable Interest Period,
to continue any LIBOR Loans having Interest Periods expiring on such day (or any part thereof in an
aggregate amount not less than $100,000 or a higher integral multiple of $50,000) for a new
Interest Period; provided, that any conversion of a LIBOR Loan on a day other than the last day of
an Interest Period therefor shall be subject to Section 3.5.

          (b) Borrower shall give written or telephonic notice (followed in the case of any such
telephonic notice immediately by written confirmation thereof) to Agent of each proposed conversion
or continuation not later than (i) in the case of conversion into Base Rate Loans, 11:00 a.m.
Chicago time on the proposed date of such conversion and (ii) in the case of conversion into or
continuation of LIBOR Loans, 11:00 a.m. Chicago time at least three Business Days prior to the
proposed date of such conversion or continuation, specifying in each case in the form of a
Conversion/Continuation Notice: (i) the proposed date of conversion or continuation; (ii) the
aggregate amount of Loans to be converted or continued; (iii) the type of Loans resulting from the
proposed conversion or continuation; and (iv) in the case of conversion into, or continuation of,
LIBOR Loans, the duration of the requested Interest Period therefor.

          (c) If upon the expiration of any Interest Period applicable to LIBOR Loans, Borrower has
failed to select timely a new Interest Period to be applicable to such LIBOR Loans, Borrower shall
be deemed to have elected to convert such LIBOR Loans into Base Rate Loans effective on the last
day of such Interest Period.

          (d) Agent will promptly notify each applicable Lender of its receipt of a notice of conversion
or continuation pursuant to this Section 2.2.3 or, if no timely notice is provided by
Borrower, of the details of any automatic conversion.

     2.3. Letters of Credit.

     2.3.1. Commitment.

          At the request of Borrower, Issuing Lender will issue from time to time before the date which
is 30 days prior to the Termination Date either (at Issuing Lender’s election) (a) letters of
credit

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and/or (b) participation agreements confirming payment to issuers (reasonably acceptable to
Issuing Lender) of standby letters of credit, in each case for the account of Borrower or any
Subsidiary and containing terms and conditions which are consistent with this Agreement and
reasonably satisfactory to Issuing Lender (each such letter of credit or participation agreement, a
“Letter of Credit”). After giving effect to each such issuance, (i) the aggregate Stated
Amount of all Letters of Credit shall not at any time exceed $50,000,000 and (ii) Revolving
Outstandings will not at any time exceed Borrowing Availability. In addition, it is agreed and
understood (x) that the Existing US Bank Letters of Credit shall be considered “Letters of Credit”
for all purposes hereunder and under the other Loan Documents, (y) that U.S. Bank National
Association shall be the Issuing Lender respect of the Existing US Bank Letters of Credit for all
purposes hereunder and under the other Loan Documents and (z) that Borrower will cause any Letters
of Credit that are issued at Borrower’s request for the benefit of a Portfolio Company to also
constitute a “Letter of Credit” under and as defined in the Intercompany Debt Documents between
Borrower and such Portfolio Company.

     2.3.2. Application.

          Borrower shall give notice to Agent and Issuing Lender of the proposed issuance of each Letter
of Credit on a Business Day which is at least ten Business Days (or such lesser number of days as
Agent and Issuing Lender shall agree) prior to the proposed date of issuance of such Letter of
Credit. Each such notice shall be accompanied by a Letter of Credit application in Issuing
Lender’s form (or, as the case may be, in the form of application of the underlying letter of
credit), duly executed by Borrower and in all respects satisfactory to Agent and Issuing Lender,
together with such other documentation as Agent or Issuing Lender may request in support thereof,
it being understood that each Letter of Credit application (or, as the case may be, form of
application of underlying letter of credit) shall specify, among other things, the date on which
the proposed Letter of Credit is to be issued, and the expiration date of such Letter of Credit
(which shall not be later than 30 days prior to the scheduled Termination Date). So long as
Issuing Lender has not received written notice that the conditions precedent set forth in
Section 4 with respect to the issuance of such Letter of Credit have not been satisfied,
Issuing Lender shall issue such Letter of Credit on the requested issuance date. Issuing Lender
shall promptly advise Agent of the issuance of each Letter of Credit and of any amendment thereto,
extension thereof or event or circumstance changing the amount available for drawing thereunder.
In the event of any inconsistency between the terms of any Letter of Credit application and the
terms of this Agreement, the terms of this Agreement shall control. Issuing Lender shall deliver
to Agent upon its request a list of all outstanding Letters of Credit issued by Issuing Lender,
together with such information related thereto as Agent may reasonably request.

     2.3.3. Reimbursement Obligations.

          (a) Borrower hereby unconditionally and irrevocably agrees to reimburse Issuing Lender for
each payment or disbursement made by Issuing Lender under any Letter of Credit honoring any demand
for payment made thereunder, in each case on the date that such payment or disbursement is made.
Issuing Lender shall promptly notify Borrower and Agent whenever any demand for payment is made
under any Letter of Credit; provided, that the failure of Issuing Lender to so notify Borrower
shall not affect the rights of Issuing Lender or Lenders in any manner whatsoever. Any amount not
reimbursed on the date of such payment or disbursement (whether or not through the making of a Loan
pursuant to Section 2.3.4) shall bear interest from the date of such payment or
disbursement to the date that Issuing Lender is reimbursed by Borrower therefor, payable on demand,
at the interest rate per annum from time to time in effect for Revolving Loans which are Base Rate
Loans.

          (b) Borrower’s reimbursement obligations hereunder shall be irrevocable and unconditional
under all circumstances, including (i) any lack of validity or enforceability of any Letter of
Credit, this Agreement or any other Loan Document, (ii) the existence of any claim, set-off,
defense or

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other right which Borrower or any other Person may have at any time against a beneficiary
named in a Letter of Credit, any transferee of any Letter of Credit (or any Person for whom any
such transferee may be acting), Agent, Issuing Lender, any Lender or any other Person, whether in
connection with any Letter of Credit, this Agreement, any other Loan Document, the transactions
contemplated herein or any unrelated transactions (including any underlying transaction between
Borrower or any other Person and the beneficiary named in any Letter of Credit), (iii) the
validity, sufficiency or genuineness of any document which Issuing Lender (or, as applicable, the
issuer of any underlying letter of credit) has determined complies on its face with the terms of
the applicable Letter of Credit (or, if applicable, underlying letter of credit), even if such
document should later prove to have been forged, fraudulent, invalid or insufficient in any respect
or any statement therein shall have been untrue or inaccurate in any respect, or (iv) the surrender
or impairment of any security for the performance or observance of any of the terms hereof.

     2.3.4. Participations in Letters of Credit.

          (a) Concurrently with the issuance of each Letter of Credit, Issuing Lender shall be deemed to
have sold and transferred to each other Lender with a Revolving Loan Commitment, and each other
Lender with a Revolving Loan Commitment shall be deemed irrevocably and unconditionally to have
purchased and received from Issuing Lender, without recourse or warranty, an undivided interest and
participation, to the extent of such Lender’s Pro Rata Share, in such Letter of Credit and
Borrower’s reimbursement obligations with respect thereto. If Borrower does not pay any
reimbursement obligation when due, then Borrower shall be deemed to have immediately requested that
Lenders with a Revolving Loan Commitment make a Revolving Loan which is a Base Rate Loan in a
principal amount equal to such reimbursement obligation. Agent shall promptly notify Lenders that
have a Revolving Loan Commitment of such deemed request and, without the necessity of compliance
with the requirements of Section 2.2.2 or 4.2, each such Lender shall make
available to Agent its Pro Rata Share of such Loan. The proceeds of such Loan shall be paid over
by Agent to Issuing Lender for the account of Borrower in satisfaction of such reimbursement
obligations.

          (b) If Issuing Lender makes any payment or disbursement under any Letter of Credit and (i)
Borrower has not reimbursed Issuing Lender in full for such payment or disbursement in accordance
with Section 2.3.3, (ii) a Revolving Loan may not be made pursuant to Section
2.3.4(a) or (iii) any reimbursement received by Issuing Lender from Borrower is or must be
returned or rescinded upon or during any bankruptcy or reorganization of Borrower or otherwise,
each other Lender with a Revolving Loan Commitment shall be irrevocably and unconditionally
obligated to pay to Agent for the account of Issuing Lender its Pro Rata Share of such payment or
disbursement (but no such payment shall diminish the Obligations of Borrower under Section
2.3.3). Upon notice from Issuing Lender to Agent that it has not received any such amount,
Agent shall promptly notify each such other Lender thereof. To the extent any such Lender shall
not have made such amount available to Agent by 2:00 p.m. Chicago time on the Business Day on which
such Lender receives notice from Agent of such payment or disbursement (it being understood that
any such notice received after 12:00 noon Chicago time on any Business Day shall be deemed to have
been received on the next following Business Day), such Lender agrees to pay interest on such
amount to Agent for Issuing Lender’s account forthwith on demand, for each day from the date such
amount was to have been delivered to Agent to the date such amount is paid, at a rate per annum
equal to (x) for the first 3 days after demand, the Federal Funds Rate from time to time in effect
and (y) thereafter, the Base Rate from time to time in effect for Revolving Loans. Any such
Lender’s failure to make available to Agent its Pro Rata Share of any such payment or disbursement
shall not relieve any other Lender of its obligation hereunder to make available to Agent such
other Lender’s Pro Rata Share of such payment, but no Lender shall be responsible for the failure
of any other Lender to make available to Agent such other Lender’s Pro Rata Share of any such
payment or disbursement.

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     2.4. Commitments Several.

          The failure of any Lender to make a requested Loan on any date shall not relieve any other
Lender of its obligation (if any) to make a Loan on such date, but no Lender shall be responsible
for the failure of any other Lender to make any Loan to be made by such other Lender.

     2.5. Certain Conditions.

          Notwithstanding any other provision of this Agreement, no Lender shall have an obligation to
make any Loan, or to permit the continuation of or any conversion into any LIBOR Loan, and Issuing
Lender shall not have any obligation to issue any Letter of Credit, if an Event of Default or
Default exists.

     2.6. Loan Accounting.

     2.6.1. Recordkeeping.

          Agent, on behalf of each Lender, shall record in its records the date and amount of each Loan
made by each Lender, each repayment or conversion thereof and, in the case of each LIBOR Loan, the
dates on which each Interest Period for such Loan shall begin and end. The aggregate unpaid
principal amount so recorded shall be rebuttably presumptive evidence of the principal amount of
the Loans owing and unpaid. The failure to so record any such amount or any error in so recording
any such amount shall not, however, limit or otherwise affect the Obligations of Borrower hereunder
or under any Note to repay the principal amount of the Loans hereunder, together with all interest
accruing thereon.

     2.6.2. Notes.

          At the request of any Lender, the Loans of such Lender shall be evidenced by a Note, with
appropriate insertions, payable to the order of such Lender in a face principal amount equal to the
sum of such Lender’s Pro Rata Share of the Total Loan Commitment and payable in such amounts and on
such dates as are set forth herein.

     2.7. Interest.

     2.7.1. Interest Rates.

          Borrower promises to pay interest on the unpaid principal amount of each Loan for the period
commencing on the date of such Loan until such Loan is paid in full as follows: (a) at all times
while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of the Base Rate from
time to time in effect plus the Applicable Margin corresponding to such Loan from time to time in
effect; and (b) at all times while such Loan is a LIBOR Loan, at a rate per annum equal to the sum
of the LIBOR Rate applicable to each Interest Period for such Loan plus the Applicable Margin for
such Loan from time to time in effect; provided, that (i) at any time an Event of Default exists,
if requested by Required Lenders, the Applicable Margin corresponding to each Loan shall be
increased by two percentage points per annum (and, in the case of Obligations not subject to an
Applicable Margin, such Obligations shall bear interest at the Base Rate applicable to Revolving
Loans plus the Applicable Margin plus two percentage points per annum), (ii) any such increase may
thereafter be rescinded by Required Lenders, notwithstanding Section 10.1, and (iii) upon
the occurrence of an Event of Default under Section 8.1.1 or 8.1.3, any such
increase described in the foregoing clause (i) shall occur automatically. In no event shall
interest payable by Borrower to Agent and Lenders hereunder exceed the maximum rate permitted under
applicable law, and if any such provision of this Agreement is in contravention of any such law,
such provision shall be deemed modified to limit such interest to the maximum rate permitted under
such law.

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     2.7.2. Interest Payment Dates.

          Accrued interest on each Base Rate Loan shall be payable in arrears on the first day of each
calendar month and at maturity. Accrued interest on each LIBOR Loan shall be payable on the last
day of each Interest Period relating to such Loan (and, in the case of a LIBOR Loan with an
Interest Period in excess of 3 months, on the last day of each 3-month interval of such Interest
Period), upon a prepayment of such Loan in accordance with Section 2.10 and at maturity in
cash. After maturity and at any time an Event of Default exists, all accrued interest on all Loans
shall be payable in cash on demand at the rates specified in Section 2.7.1.

     2.7.3. Setting and Notice of LIBOR Rates.

          The applicable LIBOR Rate for each Interest Period shall be determined by Agent, and notice
thereof shall be given by Agent promptly to Borrower and each Lender. Each determination of the
applicable LIBOR Rate by Agent shall be conclusive and binding upon the parties hereto, in the
absence of demonstrable error. Agent shall, upon written request of Borrower or any Lender,
deliver to Borrower or such Lender a statement showing the computations used by Agent in
determining any applicable LIBOR Rate hereunder.

     2.7.4. Computation of Interest.

          Interest shall be computed for the actual number of days elapsed on the basis of a year of (a)
360 days for interest calculated at the LIBOR Rate and (b) 365/366 days for interest calculated at
the Base Rate. The applicable interest rate for each Base Rate Loan shall change simultaneously
with each change in the Base Rate.

     2.8. Fees.

     2.8.1. Commitment Fee.

          For the period from the Closing Date to the Termination Date, Borrower agrees to pay to Agent,
for the account of each Lender according to such Lender’s Pro Rata Share (as adjusted from time to
time), a Commitment Fee equal to the Applicable Margin for the Commitment Fee then in effect
multiplied by the amount by which the Revolving Loan Commitments exceed the average daily Revolving
Outstandings. The Commitment Fee shall be payable in arrears on the first day of each calendar
quarter and on the Termination Date for any period then ending for which the Commitment Fee shall
not have previously been paid. The Commitment Fee shall be computed for the actual number of days
elapsed on the basis of a year of 360 days.

     2.8.2. Letter of Credit Fees.

          (a) Borrower agrees to pay to Agent, for the account of each Lender according to such Lender’s
Pro Rata Share (as adjusted from time to time), a Letter of Credit Fee equal to the Applicable
Margin in effect from time to time for Revolving Loans which are LIBOR Loans multiplied by the
Stated Amount of each Letter of Credit. Each Letter of Credit Fee shall be payable in arrears on
the first day of each calendar quarter and on the Termination Date (or such later date on which
such Letter of Credit expires or is terminated) for the period from the date of the issuance (with
the date of issuance for the Existing US Bank Letters of Credit being deemed to be the date hereof)
of each Letter of Credit (or the last day on which the Letter of Credit Fee was paid with respect
thereto) to the date such payment is due or, if earlier, the date on which such Letter of Credit
expired or was terminated. Each Letter of Credit Fee shall be computed for the actual number of
days elapsed on the basis of a year of 360 days.

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          (b) In addition, with respect to each Letter of Credit, Borrower agrees to pay to Issuing
Lender, for its own account, (i) such fees and expenses as Issuing Lender customarily requires (or,
as the case may be, is required to pay to the issuer of the letter of credit) in connection with
the issuance, negotiation, processing and/or administration of letters of credit in similar
situations and (ii) a letter of credit fronting fee in the amount and at the times agreed to by
Borrower and Issuing Lender (with each Issuing Lender that is a signatory hereto agreeing that no
fronting fee charged by any such Issuing Lender signatory hereto shall exceed 0.25% per annum for
any applicable Letter of Credit).

     2.8.3. Agent’s Fees.

          Borrower agrees to pay to Agent, for its accounts, on the Closing Date and on certain other
dates pursuant to the Fee and Syndication Letter and as otherwise agreed to from time to time by
Borrower and Agent, fees in the amounts agreed to between Borrower and Agent.

     2.9. Commitment Reduction.

     2.9.1. Voluntary Reduction or Termination of Revolving Loan Commitments.

          Borrower may from time to time on at least five Business Days’ prior written notice received
by Agent (which shall promptly advise each Lender thereof) permanently reduce the Revolving Loan
Commitments to an amount not less than the Revolving Outstandings. Any such reduction shall be in
an amount not less than $1,000,000 or a higher integral multiple of $500,000. Concurrently with
any reduction of the Revolving Loan Commitments to zero, Borrower shall pay all interest on the
Revolving Loans, all Commitment Fees and all Letter of Credit Fees and shall cash collateralize in
full all Obligations arising with respect to the Letters of Credit in a manner acceptable to Agent.

     2.9.2. Reduction of Revolving Loan Commitments in Connection with Mandatory
Prepayment.

          On the date of any mandatory prepayment pursuant to Section 2.10.2(a), the Revolving
Loan Commitments shall, to the extent elected by Borrower, be permanently reduced by the amount of
such mandatory prepayment applied to prepay the Revolving Loans pursuant to Section
2.10.2(a).

     2.9.3. All Reductions of Revolving Loan Commitments.

          All reductions of the Revolving Loan Commitments shall reduce the Revolving Loan Commitments
pro rata among Lenders according to their respective Pro Rata Shares.

     2.10. Prepayment.

     2.10.1. [Intentionally Omitted].

     2.10.2. Mandatory Prepayment.

          (a) Borrower shall repay the Revolving Loans at the following times and in the following
amounts:

     (i) concurrently with the receipt by Borrower or any Subsidiary of any Net Cash
Proceeds from any Disposition, in an amount equal to such Net Cash Proceeds; and

     (ii) concurrently with the receipt by Borrower of any Net Cash Proceeds from any
issuance of its equity securities (excluding Net Cash Proceeds from equity issuances in an

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aggregate amount of up to $100,000 for each Fiscal Year), in an amount equal to such
Net Cash Proceeds.

          (b) If on any day the Revolving Outstandings exceed Borrowing Availability, whether pursuant
to a reduction of the Revolving Loan Commitments pursuant to Section 2.9.2 or otherwise,
Borrower shall immediately prepay Revolving Loans and/or cash collateralize the outstanding Letters
of Credit in a manner acceptable to Agent, or do a combination of the foregoing, in an amount
sufficient to eliminate such excess.

Borrower shall give written notice or telephonic notice (followed immediately by written
confirmation thereof) to Agent not later than 11:00 a.m. Chicago time at least one Business Day
prior to each mandatory prepayment pursuant to clause (a) of Section 2.10.2, and Agent
shall promptly notify each Lender of such notice.

     2.10.3. All Prepayments.

          Any prepayment of a LIBOR Loan on a day other than the last day of an Interest Period therefor
shall include interest on the principal amount being repaid and shall be subject to Section
3.5. All prepayments of a Loan shall be applied first to that portion of such Loan comprised
of Base Rate Loans and then to that portion of such Loan comprised of LIBOR Loans, in direct order
of Interest Period maturities.

     2.11. Repayment.

          The Revolving Loans shall be paid, for the account of each Lender according to its Pro Rata
Share, in full on the Termination Date.

     2.12. Payment.

     2.12.1. Making and Settlement of Payments.

          All payments of principal of or interest on the Notes, and of all fees, shall be made by
Borrower to Agent without setoff, recoupment or counterclaim and in immediately available funds at
the office specified by Agent not later than 12:00 noon Chicago time on the date due, and funds
received after that hour shall be deemed to have been received by Agent on the following Business
Day. Agent shall promptly remit to each Lender its share of all principal payments received in
collected funds by Agent for the account of such Lender. On the first Business Day of each week or
more frequently as Agent may elect (each such day being a “Settlement Date”), Agent will
notify each Lender with a Revolving Loan Commitment in writing of the amount of such Lender’s
actual share of the Revolving Loans as of the close of business of the Business Day immediately
preceding the Settlement Date. In the event that payments are necessary to adjust the amount of
such Lender’s actual share of the Revolving Loans to equal such Lender’s Pro Rata Share of the
Revolving Loans as of any Settlement Date, such Lender will pay to Agent, or Agent will pay to such
Lender (as applicable) the amount necessary in same day funds by wire transfer to the other’s
account not later than 2:00 p.m. Chicago time on the first Business Day following the Settlement
Date. On the first Business Day of each month (each, an “Interest Settlement Date”), Agent
will notify each Lender in writing of the amount of such Lender’s applicable Pro Rata Share of
interest and fees on the Revolving Outstandings and Revolving Loan Commitments as of the end of the
last day of the immediately preceding month. Provided that such Lender has made all payments
required to be made by it under this Agreement, Agent will pay to such Lender, by wire transfer to
such Lender’s account not later than 2:00 p.m. Chicago time on the next Business Day following the
Interest Settlement Date, such Lender’s Pro Rata Share of interest and fees, in each instance,
received by Agent

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for the immediately preceding month. All payments under Section 3.2 shall be made by
Borrower directly to Lender entitled thereto.

     2.12.2. Application of Payments and Proceeds.

          (a) Except as set forth in Section 2.10.2 and Section 2.10.3, and subject to
the provisions of Sections 2.12.2(b) and 2.12.2(c) below, each payment of principal
shall be applied to such Loans as Borrower shall direct by notice to be received by Agent on or
before the date of such payment or, in the absence of such notice, as Agent shall determine in its
discretion. Concurrently with each remittance to any Lender of its share of any such payment,
Agent shall advise such Lender as to the application of such payment.

          (b) If an Acceleration Event shall have occurred and be continuing, notwithstanding anything
herein or in any other Loan Document to the contrary, Agent shall apply all or any part of payments
in respect of the Obligations and proceeds of Collateral, in each case as received by Agent, to the
payment of the Obligations in the following order:

     (i) FIRST, to the payment of all fees, costs, expenses and indemnities due and owing to
Agent under this Agreement or any other Loan Document, and any other Obligations owing to
Agent in respect of sums advanced by Agent to preserve or protect the Collateral or to
preserve or protect its security interest in the Collateral (whether or not such Obligations
are then due and owing to Agent), until Paid in Full;

     (ii) SECOND, to the payment of all fees, costs, expenses and indemnities due and owing
to Lenders, pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full;

     (iii) THIRD, to the payment of all accrued and unpaid interest due and owing to
Lenders, pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full;

     (iv) FOURTH, pro rata (A) to the payment of the principal balance of the Revolving
Loans, pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full and (B) to
cash collateralize Obligations in respect of outstanding Letters of Credit in a manner
consistent with the provisions of Section 8.2, pro rata based on each Lender’s Pro
Rata Share thereof, until Paid in Full;

     (v) FIFTH, to the payment of all Hedging Obligations due and owing to any Lender or its
Affiliates, pro rata in accordance with each Lender’s (or one of its Affiliate’s) share
thereof, until Paid in Full; and

     (vi) SIXTH, to the payment of all other Obligations owing to each Lender, pro rata
based on each Lender’s Pro Rata Share thereof, until Paid in Full.

          (c) If an Event of Default shall have occurred and be continuing but an Acceleration Event
shall not exist, notwithstanding anything herein or in any other Loan Document to the contrary,
Agent shall apply all or any part of payments in respect of the Obligations and proceeds of
Collateral, in each case as received by Agent, to the payment of the Obligations in such order as
Agent may elect. In the absence of a specific determination by Agent, payments in respect of the
Obligations and proceeds of Collateral received by Agent shall be applied in the following order:

     (i) FIRST, to the payment of all fees, costs, expenses and indemnities due and owing to
Agent under this Agreement or any other Loan Document, and any other Obligations owing to
Agent in respect of sums advanced by Agent to preserve or protect the Collateral or to
preserve or

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protect its security interest in the Collateral (whether or not such Obligations are
then due and owing to Agent), until Paid in Full;

     (ii) SECOND, to the payment of all fees, costs, expenses and indemnities due and owing
to Lenders, pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full;

     (iii) THIRD, to the payment of all accrued and unpaid interest due and owing to
Lenders, pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full;

     (iv) FOURTH, pro rata (A) to the payment of the principal balance of the Revolving
Loans, pro rata based on each Lender’s Pro Rata Share thereof, until Paid in Full and (B) to
cash collateralize Obligations in respect of outstanding Letters of Credit in a manner
consistent with the provisions of Section 8.2, pro rata based on each Lender’s Pro
Rata Share thereof, until Paid in Full;

     (v) FIFTH, to the payment of all Hedging Obligations owing to any Lender or its
Affiliates, pro rata in accordance with each Lender’s (or one of its Affiliate’s) share
thereof, until Paid in Full; and

     (vi) SIXTH, to the payment of all other Obligations owing to each Lender, pro rata
based on each Lender’s Pro Rata Share thereof, until Paid in Full.

     2.12.3. Payment Dates.

          If any payment of principal or interest with respect to any of the Loans, or of any fees,
falls due on a day which is not a Business Day, then such due date shall be extended to the
immediately following Business Day (unless, in the case of a LIBOR Loan, such immediately following
Business Day is the first Business Day of a calendar month, in which case such due date shall be
the immediately preceding Business Day) and, in the case of principal, additional interest shall
accrue and be payable for the period of any such extension.

     2.12.4. Set-off.

          Borrower agrees that Agent and each Lender and its Affiliates have all rights of set-off and
bankers’ lien provided by applicable law, and in addition thereto, Borrower agrees that at any time
an Event of Default has occurred and is continuing, Agent and each Lender may apply to the payment
of any Obligations of Borrower hereunder, whether or not then due, any and all balances, credits,
deposits, accounts or moneys of Borrower then or thereafter with Agent or such Lender.
Notwithstanding the foregoing, no Lender shall exercise any rights described in the preceding
sentence without the prior written consent of Agent.

     2.12.5. Proration of Payments.

          If any Lender shall obtain any payment or other recovery (whether voluntary, involuntary, by
application of set-off or otherwise, on account of (a) principal of or interest on an Loan, but
excluding (i) any payment pursuant to Section 3.1, 3.2, 3.7 or 10.8
and (ii) payments of interest on any Base Rate Loan referred to in the last sentence of Section
3.4, or (b) its participation in any Letter of Credit) in excess of its applicable Pro Rata
Share of payments and other recoveries obtained by all Lenders on account of principal of and
interest on such Loans (or such participation) then held by them, then such Lender shall purchase
from the other Lenders such participations in the Loans or sub-participations in Letters of Credit
held by them as shall be necessary to cause such purchasing Lender to share the excess payment or
other recovery ratably with each of them; provided that if all or any portion

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of the excess payment or other recovery is thereafter recovered from such purchasing Lender,
the purchase shall be rescinded and the purchase price restored to the extent of such recovery.

Section 3. Yield Protection.

     3.1. Taxes.

          (a) All payments of principal and interest on the Loans and all other amounts payable
hereunder shall be made free and clear of and without deduction for any present or future income,
excise, stamp, documentary, property or franchise taxes and other taxes, fees, duties, levies,
withholdings or other charges of any nature whatsoever imposed by any taxing authority, excluding
(i) taxes imposed on or measured by any Lender’s net income by the jurisdiction under which such
Lender is organized or conducts business, (ii) any branch profit taxes imposed by the United States
of America or any similar tax imposed by any other jurisdiction in which a Lender is located and
(iii) in the case of any foreign Lender, any withholding tax that is imposed on amounts payable to
such foreign Lender at the time such foreign Lender becomes a party to this Agreement (all
non-excluded items being called “Taxes”). If any withholding or deduction from any payment
to be made by Borrower hereunder is required in respect of any Taxes pursuant to any applicable
law, rule or regulation, then Borrower will: (i) pay directly to the relevant authority the full
amount required to be so withheld or deducted; (ii) promptly forward to Agent an official receipt
or other documentation satisfactory to Agent evidencing such payment to such authority; and (iii)
pay to Agent for the account of Lenders such additional amount or amounts as is necessary to ensure
that the net amount actually received by each Lender will equal the full amount such Lender would
have received had no such withholding or deduction been required. If any Taxes are directly
asserted against Agent or any Lender with respect to any payment received by Agent or such Lender
hereunder, Agent or such Lender may pay such Taxes and Borrower will promptly pay such additional
amounts (including any penalty, interest or expense) as is necessary in order that the net amount
received by such Person after the payment of such Taxes (including any Taxes on such additional
amount) shall equal the amount such Person would have received had such Taxes not been asserted so
long as such amounts have accrued on or after the day which is 180 days prior to the date on which
Agent or such Lender first made demand therefor; provided, that if the event giving rise to such
costs or reductions has retroactive effect, such 180 day period shall be extended to include the
period of retroactive effect.

          (b) If Borrower fails to pay any Taxes when due to the appropriate taxing authority or fails
to remit to Agent, for the account of the respective Lenders, the required receipts or other
required documentary evidence, Borrower shall indemnify Lenders for any incremental Taxes, interest
or penalties that may become payable by any Lender as a result of any such failure. For purposes
of this Section 3.1, a distribution hereunder by Agent or any Lender to or for the account
of any Lender shall be deemed a payment by Borrower.

          (c) Each Lender that (i) is organized under the laws of a jurisdiction other than the United
States of America and (ii)(A) is a party hereto on the Closing Date or (B) becomes an assignee of
an interest under this Agreement under Section 10.8.1 after the Closing Date (unless such
Lender was already a Lender hereunder immediately prior to such assignment) shall execute and
deliver to Borrower and Agent one or more (as Borrower or Agent may reasonably request) Forms
W-8ECI, W-8BEN, W-8IMY (as applicable) or other applicable form, certificate or document prescribed
by the United States Internal Revenue Service certifying as to such Lender’s entitlement to
exemption from withholding or deduction of Taxes. Borrower shall not be required to pay additional
amounts to any Lender pursuant to this Section 3.1 to the extent that the obligation to pay
such additional amounts would not have arisen but for the failure of such Lender to comply with
this paragraph.

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     3.2. Increased Cost.

          (a) If, after the Closing Date, the adoption of, or any change in, any applicable law, rule or
regulation, or any change in the interpretation or administration of any applicable law, rule or
regulation by any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any request or directive
(whether or not having the force of law) of any such authority, central bank or comparable agency:
(i) shall impose, modify or deem applicable any reserve (including any reserve imposed by the FRB,
but excluding any reserve included in the determination of the LIBOR Rate pursuant to Section
2.7), special deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by any Lender; or (ii) shall impose on any Lender any other
condition affecting its LIBOR Loans, its Note or its obligation to make LIBOR Loans; and the result
of anything described in clauses (i) above and (ii) is to increase the cost to (or to impose a cost
on) such Lender of making or maintaining any LIBOR Loan, or to reduce the amount of any sum
received or receivable by such Lender under this Agreement or under its Note with respect thereto,
then upon demand by such Lender (which demand shall be accompanied by a statement setting forth the
basis for such demand and a calculation of the amount thereof in reasonable detail, a copy of which
shall be furnished to Agent), Borrower shall pay directly to such Lender such additional amount as
will compensate such Lender for such increased cost or such reduction, so long as such amounts have
accrued on or after the day which is 180 days prior to the date on which such Lender first made
demand therefor; provided, that if the event giving rise to such costs or reductions has
retroactive effect, such 180 day period shall be extended to include the period of retroactive
effect.

          (b) If any Lender shall reasonably determine that any change in, or the adoption or phase-in
of, any applicable law, rule or regulation regarding capital adequacy, or any change in the
interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or the compliance by any Lender
or any Person controlling such Lender with any request or directive regarding capital adequacy
(whether or not having the force of law) of any such authority, central bank or comparable agency,
has or would have the effect of reducing the rate of return on such Lender’s or such controlling
Person’s capital as a consequence of such Lender’s obligations hereunder or under any Letter of
Credit to a level below that which such Lender or such controlling Person could have achieved but
for such change, adoption, phase-in or compliance (taking into consideration such Lender’s or such
controlling Person’s policies with respect to capital adequacy) by an amount deemed by such Lender
or such controlling Person to be material, then from time to time, upon demand by such Lender
(which demand shall be accompanied by a statement setting forth the basis for such demand and a
calculation of the amount thereof in reasonable detail, a copy of which shall be furnished to
Agent), Borrower shall pay to such Lender such additional amount as will compensate such Lender or
such controlling Person for such reduction, so long as such amounts have accrued on or after the
day which is 180 days prior to the date on which such Lender first made demand therefor; provided,
that if the event giving rise to such costs or reductions has retroactive effect, such 180 day
period shall be extended to include the period of retroactive effect.

     3.3. Inadequate or Unfair Basis.

          If Agent reasonably determines (which determination shall be binding and conclusive on
Borrower) that, by reason of circumstances affecting the interbank eurodollar market, adequate and
reasonable means do not exist for ascertaining the applicable LIBOR Rate, then Agent shall promptly
notify the Lenders and Borrower thereof and, so long as such circumstances shall continue, (a) no
Lender shall be under any obligation to make or convert any Base Rate Loans into LIBOR Loans and
(b) on the last day of the current Interest Period for each LIBOR Loan, such Loan shall, unless
then repaid in full, automatically convert to a Base Rate Loan.

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     3.4. Change in Law.

          If any change in, or the adoption of any new, law or regulation, or any change in the
interpretation of any applicable law or regulation by any governmental or other regulatory body
charged with the administration thereof, would make it (or in the good faith judgment of any Lender
cause a substantial question as to whether it is) unlawful for any Lender to make, maintain or fund
LIBOR Loans, then such Lender shall promptly notify each of the other parties hereto and, so long
as such circumstances shall continue, (a) such Lender shall have no obligation to make or convert
any Base Rate Loan into a LIBOR Loan (but shall make Base Rate Loans concurrently with the making
of LIBOR Loans or conversion of Base Rate Loans into LIBOR Loans by Lenders which are not so
affected, in each case in an amount equal to the amount of LIBOR Loans which would be made or
converted into by such Lender at such time in the absence of such circumstances) and (b) on the
last day of the current Interest Period for each LIBOR Loan of such Lender (or, in any event, on
such earlier date as may be required by the relevant law, regulation or interpretation), such LIBOR
Loan shall, unless then repaid in full, automatically convert to a Base Rate Loan. Each Base Rate
Loan made by a Lender which, but for the circumstances described in the foregoing sentence, would
be a LIBOR Loan shall remain outstanding for the period corresponding to the Interest Period
originally applicable to such LIBOR Loan absent such circumstances.

     3.5. Funding Losses.

          Borrower hereby agrees that upon demand by any Lender (which demand shall be accompanied by a
statement setting forth the basis for the amount being claimed, a copy of which shall be furnished
to Agent), Borrower will indemnify such Lender against any net loss or expense which such Lender
may sustain or incur (including any net loss or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund or maintain any LIBOR
Loan), as reasonably determined by such Lender, as a result of (a) any payment, prepayment or
conversion of any LIBOR Loan of such Lender on a date other than the last day of an Interest Period
for such Loan (including any conversion pursuant to Section 3.3 or 3.4) or (b) any
failure of Borrower to borrow, convert or continue any Loan on a date specified therefor in a
notice of borrowing, conversion or continuation pursuant to this Agreement. For the purposes of
this Section 3.5, all determinations shall be made as if such Lender had actually funded
and maintained each LIBOR Loan during each Interest Period for such Loan through the purchase of
deposits having a maturity corresponding to such Interest Period and bearing an interest rate equal
to the LIBOR Rate for such Interest Period.

     3.6. Manner of Funding; Alternate Funding Offices.

          Notwithstanding any provision of this Agreement to the contrary, each Lender shall be entitled
to fund and maintain its funding of all or any part of its Loans in any manner it may determine at
its sole discretion. Each Lender may, if it so elects, fulfill its commitment to make any LIBOR
Loan by causing any branch or Affiliate of such Lender to make such Loan; provided that in such
event for the purposes of this Agreement such Loan shall be deemed to have been made by such Lender
and the obligation of Borrower to repay such Loan shall nevertheless be to such Lender and shall be
deemed held by it, to the extent of such Loan, for the account of such branch or Affiliate.

     3.7. Mitigation of Circumstances; Replacement of Lenders.

          (a) Each Lender shall promptly notify Borrower and Agent of any event of which it has
knowledge which will result in, and will use reasonable commercial efforts available to it (and
not, in such Lender’s sole judgment, otherwise disadvantageous to such Lender) to mitigate or
avoid, (i) any obligation by Borrower to pay any amount pursuant to Section 3.1 or
3.2 or (ii) the occurrence of any circumstances described in Section 3.3 or
3.4 (and, if any Lender has given notice of any such event

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described in clause (i) or (ii) above and thereafter such event ceases to exist, such Lender
shall promptly so notify Borrower and Agent). Without limiting the foregoing, each Lender will
designate a different funding office if such designation will avoid (or reduce the cost to Borrower
of) any event described in clause (i) or (ii) above and such designation would not, in such
Lender’s sole judgment, be otherwise disadvantageous to such Lender.

          (b) If (i) Borrower becomes obligated to pay additional amounts to any Lender pursuant to
Section 3.1 or 3.2, or any Lender gives notice of the occurrence of any
circumstances described in Section 3.3 or 3.4, (ii) any Lender does not consent to
any matter requiring its consent under Section 10.1 when the Required Lenders have
otherwise consented to such matter or (iii) any Lender with a Revolving Loan Commitment defaults in
its obligation to make Revolving Loans under Section 2.1.1, then Borrower may within 90
days thereafter designate another bank which is acceptable to Agent and Issuing Lender in their
reasonable discretion (such other bank being called a “Replacement Lender”) to purchase the
Loans of such Lender and such Lender’s rights hereunder (provided, that there shall be a concurrent
purchase of the Loans and rights of any other Lender that then falls within the scope of the
foregoing clauses (i), (ii) or (iii) of this Section 3.7(b)), without recourse to or
warranty by, or expense to, any such Lenders, for a purchase price equal to the outstanding
principal amount of the Loans payable to any such Lenders plus any accrued but unpaid interest on
such Loans and all accrued but unpaid fees owed to any such Lenders and any other amounts payable
to any such Lenders under this Agreement, and to assume all the obligations of any such Lenders
hereunder, and, upon such purchase and assumption (pursuant to an Assignment Agreement), any such
Lenders shall no longer be a party hereto or have any rights hereunder (other than rights with
respect to indemnities and similar rights applicable to any such Lenders prior to the date of such
purchase and assumption) and shall be relieved from all obligations to Borrower hereunder, and the
Replacement Lender shall succeed to the rights and obligations of such Lender hereunder.

     3.8. Conclusiveness of Statements; Survival.

          Determinations and statements of any Lender pursuant to Section 3.1, 3.2,
3.3, 3.4 or 3.5 shall be conclusive absent demonstrable error. Lenders may
use reasonable averaging and attribution methods in determining compensation under Sections
3.1, 3.2 and 3.5, and the provisions of such Sections shall survive repayment
of the Loans, cancellation of the Notes, expiration or termination of the Letters of Credit and
termination of this Agreement.

     Section 4. Conditions Precedent.

          The obligation of each Lender to make its Loans and of Issuing Lender to issue Letters of
Credit is subject to the following conditions precedent:

     4.1. Initial Credit Extension.

          The obligation of Lenders to make the initial Loans and the obligation of Issuing Lender to
issue the initial Letter of Credit hereunder (whichever first occurs) is, in addition to the
conditions precedent specified in Section 4.2, subject to the following conditions
precedent, each of which shall be satisfactory in all respects to Agent:

     4.1.1. Financial Statements; Total Debt to EBITDA Ratio.

          Delivery of financial statements, projections and pro forma balance sheets for Borrower and
each of the Existing Portfolio Companies, which evidence that the Total Debt to EBITDA Ratio for
the twelve month period ending on September 30, 2006, as calculated on a pro forma basis after
giving effect to the funding of the initial Revolving Loans and issuance of initial Letters of
Credit on the Closing

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Date and as adjusted by adjustments satisfactory to Agent, shall not be greater than 3.00 and
which are otherwise satisfactory to Agent and the Lenders in form and content.

     4.1.2. Initial Loans; Availability.

          Not more than $120,000,000 in Revolving Loans and Letters of Credit (inclusive of the Existing
US Bank Letters of Credit) shall be advanced, assumed or issued (as applicable) on the Closing
Date, and after giving effect to the consummation of the Related Transactions and funding of the
initial Loans on the Closing Date, Borrowing Availability shall exceed Revolving Outstandings by at
least $60,000,000.

     4.1.3. Prior Debt.

          The Prior Debt has been (or concurrently with the initial borrowing of Revolving Loans will
be) paid in full.

     4.1.4. Fees.

          Borrower shall have paid all fees, costs and expenses due and payable under this Agreement and
the other Loan Documents on the Closing Date.

     4.1.5. Delivery of Loan Documents.

          Borrower shall have delivered the following documents in form and substance satisfactory to
Agent (and, as applicable, duly executed and dated the Closing Date or an earlier date satisfactory
to Agent):

          (a) Agreement. This Agreement.

          (b) Notes. Notes, for each Lender requesting a Note.

          (c) Collateral Documents. The Collateral Agreement, all other Collateral Documents,
and all instruments, documents, certificates and agreements executed or delivered pursuant thereto
(including pledged Collateral, with undated irrevocable transfer powers executed in blank).

          (d) Financing Statements. Properly completed Uniform Commercial Code financing
statements and other filings and documents required by law or the Loan Documents to provide Agent
perfected, first-priority Liens (subject only to Liens permitted pursuant to Section 7.2)
in the Collateral.

          (e) Lien Searches. Copies of Uniform Commercial Code search reports listing all
effective financing statements filed against Borrower or any Existing Portfolio Company, with
copies of such financing statements.

          (f) Payoff; Release. Payoff letters evidencing repayment in full of all Prior Debt,
termination of all agreements relating thereto and the release of all Liens granted in connection
therewith, with Uniform Commercial Code or other appropriate termination statements and documents
effective to evidence the foregoing.

          (g) Availability Certificate. Availability Certificate reflecting required
information certified as of a date not more than 5 days prior to the Closing Date.

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          (h) Letter of Direction. A letter of direction containing funds flow information,
with respect to the proceeds of the Loans on the Closing Date.

          (i) Authorization Documents. For Borrower and each Existing Portfolio Company, such
Person’s (i) charter (or similar formation document), certified by the appropriate governmental
authority, (ii) good standing certificates in its state of incorporation (or formation) and in each
other state requested by Agent, (iii) bylaws (or similar governing document), (iv) resolutions of
its board of directors (or similar governing body) approving and authorizing such Person’s
execution, delivery and performance of the Loan Documents (in the case of Borrower), and the
Intercompany Debt Documents (in the case of the Existing Portfolio Companies), to which it is party
and the transactions contemplated thereby, and (v) signature and incumbency certificates of its
officers executing any of the Loan Documents (the requirement of this clause (v) to apply only to
Borrower), all certified by its secretary or an assistant secretary (or similar officer) as being
in full force and effect without modification. For the Trust, a true, correct, complete and
current copy of the Trust Agreement.

          (j) Opinion of Counsel. Opinion of counsel for Borrower, and Borrower hereby requests
such counsel to deliver such opinion and authorizes Agent and Lenders to rely thereon.

          (k) Insurance. Certificates or other evidence of insurance in effect as required by
Section 6.3(b), with endorsements naming (i) Agent, with respect to insurance policies of
Borrower and (ii) Borrower, with respect to insurance policies of the Existing Portfolio Companies,
as lenders’ loss payee and/or additional insured, as applicable.

          (l) Financials. The financial statements, projections and pro forma balance sheet
described in Section 5.4.

          (m) Consents. Evidence that all necessary consents, permits and approvals
(governmental or otherwise) required for the execution, delivery and performance by Borrower of the
Loan Documents have been duly obtained and are in full force and effect.

          (n) Certified Documents. To the extent in existence as of the Closing Date, copies of
the Intercompany Debt Documents and the other Related Agreements (together with (x) any Collateral
Assignments and (y) the Management Fee Subordination Agreement) certified by Borrower’s chief
financial officer, secretary or an assistant secretary (or similar officer) as being in true,
accurate and complete.

          (o) Other Documents. Such other certificates, documents and agreements as Agent or
any Lender may reasonably request.

     4.2. All Credit Extensions.

          The obligation of each Lender to make each Loan and of Issuing Lender to issue each Letter of
Credit is subject to the additional conditions precedent that (unless such conditions are waived by
the Agent and Required Lenders), both before and after giving effect to any borrowing and the
issuance of any Letter of Credit, (a) the representations and warranties of Borrower set forth in
this Agreement and the other Loan Documents shall be true and correct in all material respects with
the same effect as if then made (except to the extent stated to relate to a specific earlier date,
in which case such representations and warranties shall be true and correct as of such earlier
date) and (b) no Event of Default or Default shall have then occurred and be continuing. Each
request by Borrower for the making of a Loan or the issuance of a Letter of Credit shall be deemed
to constitute a representation and warranty by Borrower that the conditions precedent set forth in
Section 4.2 will be satisfied at the time of the making of such Loan or the issuance of
such Letter of Credit.

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Section 5. Representations and Warranties.

          To induce Agent and Lenders to enter into this Agreement and to induce Lenders to make Loans
and to issue and participate in Letters of Credit hereunder, Borrower represents and warrants to
Agent and Lenders that, both before and after giving effect to the Related Transactions:

     5.1. Organization.

          Borrower is a limited liability company validly existing and in good standing under the laws
of the State of Delaware; the Trust and each Subsidiary is validly existing and in good standing
under the laws of the jurisdiction of its organization; and each Subsidiary is duly qualified to do
business in each jurisdiction where, because of the nature of its activities or properties, such
qualification is required, except for such jurisdictions where the failure to so qualify could not
reasonably be expected to have a Material Adverse Effect.

     5.2. Authorization; No Conflict.

          Each of Borrower and each Subsidiary is (or was, as applicable with respect to Intercompany
Debt Documents in effect as of the date hereof) duly authorized to execute and deliver, as
applicable, each Loan Document and each Related Agreement to which it is a party, Borrower is duly
authorized to borrow monies hereunder, Borrower is duly authorized to perform its Obligations under
each Loan Document to which it is a party, and each Subsidiary is duly authorized to perform its
Obligations under each Intercompany Debt Document to which it is a party. The execution, delivery
and performance by Borrower of this Agreement, by Borrower of each Loan Document to which it is a
party and by each Subsidiary of each Intercompany Debt Document to which it is a party, and the
borrowings by Borrower hereunder and by each Subsidiary under the Intercompany Debt Documents, do
not and will not (a) require any consent or approval of any governmental agency or authority (other
than any consent or approval which has been obtained and is in full force and effect), (b) conflict
with (i) any provision of applicable law, (ii) the charter, by-laws or other organizational
documents of Borrower or any other such Person or (iii) any agreement, indenture, instrument or
other document, or any judgment, order or decree, which is binding upon Borrower or any of its
properties or (c) require, or result in, the creation or imposition of any Lien on any asset of
Borrower or any Subsidiary (other than Liens in favor of Agent created pursuant to the Collateral
Documents and Liens in favor of Borrower created pursuant to the Intercompany Debt Documents).

     5.3. Validity; Binding Nature.

          Each of this Agreement and each other Loan Document to which Borrower is a party is the legal,
valid and binding obligation of Borrower, enforceable against Borrower in accordance with its
terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of
creditors’ rights generally and to general principles of equity. Each Intercompany Debt Document
to which any Subsidiary is a party is the legal, valid and binding obligation of such Person,
enforceable against such Person in accordance with its terms, subject to bankruptcy, insolvency and
similar laws affecting the enforceability of creditors’ rights generally and to general principles
of equity.

     5.4. Financial Condition.

          (a) The audited consolidated and consolidating financial statements of the Existing Portfolio
Companies (other than Anodyne) as at the last days of their 2 most recently ended respective Fiscal
Years, and the unaudited consolidated and consolidating (by Portfolio Company) financial statements
of the Trust, Borrower and the Existing Portfolio Companies as at September 30, 2006, copies of
each of which have been delivered pursuant hereto, were prepared in accordance with GAAP (subject,

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in the case of such unaudited statements, to the absence of footnotes and to normal year-end
adjustments) and present fairly the consolidated financial condition of such Persons as at such
dates and the results of their operations for the periods then ended.

          (b) The consolidated and consolidating financial projections (including an operating budget
and a cash flow budget) of Borrower and the Existing Portfolio Companies for the 3 year period
commencing December 31, 2006 delivered to Agent and Lenders on or prior to the Closing Date (i)
were prepared by Borrower in good faith and (ii) were prepared in accordance with assumptions for
which Borrower has a reasonable basis, and the accompanying consolidated and consolidating pro
forma balance sheet of Borrower and the Existing Portfolio Companies as at September 30, 2006,
adjusted to give effect to the consummation of the financings contemplated hereby and the repayment
of the Prior Debt as if such transactions had occurred on such date, is consistent in all material
respects with such projections.

     5.5. No Material Adverse Effect.

          Since December 31, 2005, there has been no Material Adverse Effect.

     5.6. Litigation.

          No litigation (including derivative actions), arbitration proceeding or governmental
investigation or proceeding is pending or, to Borrower’s knowledge, threatened against Borrower or
any Portfolio Company which could reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect, except as set forth in Schedule 5.6. As of the
Closing Date, other than any liability incident to such litigation or proceedings, Borrower does
not have any material Contingent Obligations except as listed on Schedule 7.1.

     5.7. Ownership of Properties; Liens.

          Except as would not reasonably be expected to have a Material Adverse Effect, each of Borrower
and each Portfolio Company owns good and, in the case of real property, marketable title to all of
its properties and assets, real and personal, tangible and intangible, of any nature whatsoever
(including patents, trademarks, trade names, service marks and copyrights), free and clear of all
Liens, charges and claims (including infringement claims with respect to patents, trademarks,
service marks, copyrights and the like), except as permitted by Section 7.2.

     5.8. Capitalization.

          All issued and outstanding equity securities of the Subsidiaries are duly authorized and
validly issued, fully paid, non-assessable, and, except as set forth on Schedule 5.8, free
and clear of all Liens. Schedule 5.8 sets forth the authorized equity securities, and the
issued and outstanding equity securities, of Borrower and each Subsidiary as of the Closing Date.
As of the Closing Date, except as set forth on Schedule 5.8, there are no pre-emptive or
other outstanding rights, options, warrants, conversion rights or other similar agreements or
understandings for the purchase or acquisition of any equity interests of Borrower or any
Subsidiary.

     5.9. Pension Plans.

          During the twelve-consecutive-month period prior to the Closing Date or the making of any Loan
or the issuance of any Letter of Credit, (i) no steps have been taken to terminate any Pension Plan
and (ii) no contribution failure has occurred with respect to any Pension Plan sufficient to give
rise to a Lien under Section 302(f) of ERISA. No condition exists or event or transaction has
occurred with respect to any Pension Plan which could result in the incurrence by Borrower or any
other member of the

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Controlled Group of any liability, fine or penalty which could reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect. All contributions (if any)
have been made to any Multiemployer Pension Plan that are required to be made by Borrower or any
other member of the Controlled Group under the terms of the plan or of any collective bargaining
agreement or by applicable law; neither Borrower nor any member of the Controlled Group has
withdrawn or partially withdrawn from any Multiemployer Pension Plan, incurred any withdrawal
liability with respect to any such plan or received notice of any claim or demand for withdrawal
liability or partial withdrawal liability from any such plan, and no condition has occurred which,
if continued, could result in a withdrawal or partial withdrawal from any such plan, and neither
Borrower nor any member of the Controlled Group has received any notice that any Multiemployer
Pension Plan is in reorganization, that increased contributions may be required to avoid a
reduction in plan benefits or the imposition of any excise tax, that any such plan is or has been
funded at a rate less than that required under Section 412 of the IRC, that any such plan is or may
be terminated, or that any such plan is or may become insolvent.

     5.10. Investment Company Act.

          None of the Trust, Borrower or any Subsidiary is an “investment company” or a company
“controlled” by an “investment company” or a “subsidiary” of an “investment company”, within the
meaning of the Investment Company Act of 1940.

     5.11. [Intentionally Omitted].

     5.12. Margin Stock.

          None of the Trust, Borrower or any Subsidiary is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of purchasing or carrying
Margin Stock. No portion of the Obligations or the Intercompany Debt is secured directly or
indirectly by Margin Stock.

     5.13. Taxes.

          Except as would not reasonably be expected to have a Material Adverse Effect, each of Borrower
and each Portfolio Company has filed all tax returns and reports required by law to have been filed
by it and has paid all taxes and governmental charges thereby shown to be owing, except any such
taxes or charges which are being diligently contested in good faith by appropriate proceedings and
for which adequate reserves in accordance with GAAP shall have been set aside on its books.

     5.14. Solvency.

          On the Closing Date, and immediately prior to and after giving effect to the issuance of each
Letter of Credit and each borrowing hereunder and the use of the proceeds thereof, Borrower is
Solvent.

     5.15. Environmental Matters.

          Except as set forth in Schedule 5.15, the on-going operations of Borrower and each Portfolio
Company comply in all respects with all Environmental Laws, except such non-compliance which could
not (if enforced in accordance with applicable law) reasonably be expected to result in a Material
Adverse Effect. Borrower and each Portfolio Company have obtained, and maintained in good
standing, all licenses, permits, authorizations and registrations required under any Environmental
Law and necessary for their respective ordinary course operations, and Borrower and each Portfolio
Company are in compliance with all material terms and conditions thereof, in each case except where
the failure to

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do so could not reasonably be expected to result in a Material Adverse Effect. Except as set
forth in Schedule 5.15, none of Borrower, any Portfolio Company or any of their respective
properties or operations is subject to any outstanding written order from or agreement with any
Federal, state or local governmental authority, nor subject to any judicial or docketed
administrative proceeding, respecting any Environmental Law, Environmental Claim or Hazardous
Substance. Except as set forth in Schedule 5.15, there are no Hazardous Substances or other
conditions or circumstances existing with respect to any property, or arising from operations prior
to the Closing Date, of Borrower or any Portfolio Company that could reasonably be expected to
result in a Material Adverse Effect. Neither Borrower nor any Portfolio Company has any
underground storage tanks that are not properly registered or permitted under applicable
Environmental Laws or that are leaking or disposing of Hazardous Substances.

     5.16. Insurance.

          Borrower and each Portfolio Company and their respective properties are insured with
financially sound and reputable insurance companies which are not Affiliates of Borrower, in such
amounts, with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where Borrower or such
Portfolio Company operates.

     5.17. Information.

          All information heretofore or contemporaneously herewith furnished in writing by Borrower to
Agent or any Lender for purposes of or in connection with this Agreement and the transactions
contemplated hereby is, and all written information hereafter furnished by or on behalf of the
Trust or Borrower to Agent or any Lender pursuant hereto or in connection herewith will be, true
and accurate in every material respect on the date as of which such information is dated or
certified, and none of such information is or will be incomplete by omitting to state any material
fact necessary to make such information not misleading in light of the circumstances under which
made (it being recognized by Agent and Lenders that any projections and forecasts provided by
Borrower are based on good faith estimates and assumptions believed by Borrower to be reasonable as
of the date of the applicable projections or assumptions and that actual results during the period
or periods covered by any such projections and forecasts may differ from projected or forecasted
results).

     5.18. Intellectual Property.

          Except as set forth in Schedule 5.18, Borrower owns and possesses or has a license or other
right to use all patents, patent rights, trademarks, trademark rights, trade names, trade name
rights, service marks, service mark rights and copyrights as are necessary for the conduct of the
business of Borrower, without any infringement upon rights of others which could reasonably be
expected to have a Material Adverse Effect.

     5.19. Restrictive Provisions.

          Neither Borrower nor any Portfolio Company is a party to any agreement or contract or subject
to any restriction contained in its operative documents which could reasonably be expected to have
a Material Adverse Effect.

     5.20. Labor Matters.

          Except as set forth on Schedule 5.20, Borrower is not subject to any labor or
collective bargaining agreement. There are no existing or threatened strikes, lockouts or other
labor disputes involving Borrower that singly or in the aggregate could reasonably be expected to
have a Material

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Adverse Effect. Hours worked by and payment made to employees of Borrower are not in
violation of the Fair Labor Standards Act or any other applicable law, rule or regulation dealing
with such matters.

     5.21. No Default.

          No Event of Default or Default exists or would result from the incurrence by Borrower of any
Debt hereunder or under any other Loan Document. As of the Closing Date, no event of default under
and as defined in any of the Intercompany Debt Documents has occurred and is continuing.

     5.22. Related Agreements.

          Borrower has furnished Agent a true and correct copy of the Related Agreements pursuant
hereto. Each of Borrower and, to Borrower’s knowledge, each other party to the Related Agreements,
has duly taken all necessary organizational action to authorize the execution, delivery and
performance of the Related Agreements and the consummation of transactions contemplated thereby.
As of the Closing Date, the Related Transactions occurring prior to the Closing Date have been
consummated in accordance with the terms of the Related Agreements and applicable law. The
execution and delivery of the Related Agreements in existence as of the Closing Date, and the
consummation of the Related Transactions occurring prior to the Closing Date, did not violate any
statute or regulation of the United States (including any securities law) or of any state or other
applicable jurisdiction, or any order, judgment or decree of any court or governmental body binding
on Borrower or, to Borrower’s knowledge, any other party to the Related Agreements, or result in a
breach of, or constitute a default under, any material agreement, indenture, instrument or other
document, or any judgment, order or decree, to which Borrower is a party or by which Borrower is
bound or, to Borrower’s knowledge, to which any other party to the Related Agreements is a party or
by which any such party is bound. No statement or representation made in the Related Agreements in
existence as of the Closing Date by Borrower or, to Borrower’s knowledge, any other Person,
contains any untrue statement of a material fact or omits to state any material fact required to be
stated therein or necessary in order to make the statements made therein, in light of the
circumstances under which they are made, not misleading as of the time that such statement or
representation is made. As of the Closing Date and any other date on which such representations
and warranties are otherwise remade or deemed remade hereunder, (i) each of the representations and
warranties contained in the Related Agreements in existence as of the Closing Date made by Borrower
is true and correct in all material respects and (ii) to Borrower’s knowledge, each of the
representations and warranties contained in the Related Agreements in existence as of the Closing
Date made by any Person other than Borrower is true and correct in all material respects.

Section 6. Affirmative Covenants.

          Until the expiration or termination of the Revolving Loan Commitments and thereafter until all
Obligations (other than contingent indemnification obligations to the extent no claim giving rise
thereto has been asserted) of Borrower hereunder and under the other Loan Documents are paid in
full and all Letters of Credit have been terminated, Borrower agrees that, unless at any time
Required Lenders shall otherwise expressly consent in writing, it will:

     6.1. Information.

          Furnish to Agent, for further distribution by Agent to Lenders:

     6.1.1. Annual Report.

          (a) Promptly when available and in any event within 90 days after the close of each Fiscal
Year of Borrower or fiscal year of a Portfolio Company (as applicable): (i) for Borrower, a copy of

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the annual audit report of Borrower and the Subsidiaries for such Fiscal Year, including
therein a consolidated balance sheet and statement of earnings and cash flows of Borrower and the
Subsidiaries as at the end of such Fiscal Year, certified without qualification (except for
qualifications relating to changes in accounting principles or practices reflecting changes in
generally accepted principles of accounting and required or approved by Borrower’s independent
certified public accountants) by independent auditors of recognized standing selected by Borrower
and reasonably acceptable to Agent and (ii) for each Portfolio Company, a copy of the annual audit
report of such Portfolio Company for such Fiscal Year, including therein a consolidated balance
sheet and statement of earnings and cash flows of such Portfolio Company as at the end of such
Fiscal Year, certified without qualification (except for qualifications relating to changes in
accounting principles or practices reflecting changes in generally accepted principles of
accounting and required or approved by such Portfolio Company’s independent certified public
accountants) by independent auditors of recognized standing selected by such Portfolio Company and
reasonably acceptable to Agent.

          (b) Promptly when available and in any event within 90 days after the close of each Fiscal
Year: a copy of the consolidating (by Portfolio Company) balance sheet and statement of earnings
and cash flows of Borrower and the Subsidiaries as at the end of such Fiscal Year, certified
without qualification by the chief financial officer of Borrower.

     6.1.2. Interim Reports.

          Promptly when available and in any event within 30 days (or, in the case of month-end dates
corresponding to the end of a Fiscal Quarter, 40 days) after the end of each month, (i)
consolidated and consolidating (by Portfolio Company) balance sheets of the Trust, Borrower and the
Subsidiaries as of the end of such month, together with consolidated and consolidating (by
Portfolio Company) statements of earnings and a consolidated and consolidating statement of cash
flows for such month and for the period beginning with the first day of such Fiscal Year and ending
on the last day of such month, together with a comparison with the corresponding period of the
previous Fiscal Year and a comparison with the budget for such period of the current Fiscal Year,
certified by the chief financial officer of Borrower (except that such monthly financial statements
(a) will reflect a periodic reevaluation or approximation of the “supplemental put” line item only
for such monthly financial statements that correspond to the end of a Fiscal Quarter, (b) will be
subject to normal year-end adjustments and (c) will not contain footnotes), and (ii) for monthly
financial statements that correspond to the end of a Fiscal Quarter, a written statement of
Borrower’s management setting forth a discussion of the financial condition, changes in financial
condition and results of operations for Borrower and for each Portfolio Company.

     6.1.3. Compliance Certificate.

          Contemporaneously with the furnishing of a copy of each annual audit report pursuant to
Section 6.1.1 and each set of quarterly statements pursuant to Section 6.1.2 (and
as required by Section 7.11) a duly completed Compliance Certificate, with appropriate
insertions, dated the date of such annual report or such quarterly statements, and signed by the
chief financial officer of Borrower, containing a computation of each of the financial ratios and
restrictions set forth in Section 7.14 and to the effect that such officer has not become
aware of any Event of Default or Default that has occurred and is continuing or, if there is any
such event, describing it and the steps, if any, being taken to cure it.

     6.1.4. Reports to SEC and Shareholders.

          Promptly upon the filing or sending thereof, copies of (a) all regular, periodic or special
reports of the Trust, Borrower or any Subsidiary filed with the Securities Exchange Commission, (b)
all registration statements of the Trust, Borrower or any Subsidiary filed with the Securities
Exchange

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Commission (other than on Form S-8) and (c) all proxy statements or other communications made
to security holders generally.

     6.1.5. Notice of Default; Litigation; ERISA Matters.

          Promptly upon becoming aware of any of the following, written notice describing the same and
the steps being taken by Borrower or the applicable Subsidiary affected thereby with respect
thereto:

          (a) the occurrence of an Event of Default or a Default;

          (b) any litigation, arbitration or governmental investigation or proceeding not previously
disclosed by Borrower to Lenders which has been instituted or, to the knowledge of Borrower, is
threatened against Borrower or any Subsidiary or to which any of the properties of any thereof is
subject which could reasonably be expected to have a Material Adverse Effect;

          (c) the institution of any steps by any member of the Controlled Group or any other Person to
terminate any Pension Plan, or the failure of any member of the Controlled Group to make a required
contribution to any Pension Plan (if such failure is sufficient to give rise to a Lien under
Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or the taking of any action with
respect to a Pension Plan which could result in the requirement that Borrower or any Subsidiary
furnish a bond or other security to the PBGC or such Pension Plan, or the occurrence of any event
with respect to any Pension Plan or Multiemployer Pension Plan which could result in the incurrence
by any member of the Controlled Group of any material liability, fine or penalty (including any
claim or demand for withdrawal liability or partial withdrawal from any Multiemployer Pension
Plan), or any material increase in the contingent liability of Borrower or any Subsidiary with
respect to any post-retirement welfare plan benefit, or any notice that any Multiemployer Pension
Plan is in reorganization, that increased contributions may be required to avoid a reduction in
plan benefits or the imposition of an excise tax, that any such plan is or has been funded at a
rate less than that required under Section 412 of the IRC, that any such plan is or may be
terminated, or that any such plan is or may become insolvent;

          (d) any cancellation or material change in any insurance maintained by Borrower or any
Subsidiary; or

          (e) any other event (including (i) any violation of any Environmental Law or the assertion of
any Environmental Claim or (ii) the enactment or effectiveness of any law, rule or regulation)
which could reasonably be expected to have a Material Adverse Effect.

     6.1.6. Availability Certificate.

          Concurrent with the delivery of each interim report pursuant to Section 6.1.2, an
Availability Certificate dated as of the end of the most recently ended month and executed by a
chief financial officer of Borrower on behalf of Borrower; provided that at any time an Event of
Default exists, Agent may require Borrower to deliver Availability Certificates more frequently.

     6.1.7. Management Report.

          Promptly upon receipt thereof, copies of all detailed financial and management reports
submitted to Borrower, the Trust or any Subsidiary by independent auditors in connection with each
annual or interim audit made by such auditors of the books of Borrower or any Subsidiary.

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     6.1.8. Projections.

          Commencing with respect to the Fiscal Year ending December 31, 2008, as soon as practicable,
and in any event not later than the last day of the first month of each Fiscal Year, financial
projections for Borrower and the Subsidiaries for such Fiscal Year (including monthly operating and
cash flow budgets) prepared on a consolidated and consolidating (by Portfolio Company) basis and in
a manner consistent with the projections delivered by Borrower to Agent prior to the Closing Date
or otherwise in a manner reasonably satisfactory to Agent, accompanied by a certificate of a chief
financial officer of Borrower on behalf of Borrower to the effect that (a) such projections were
prepared by Borrower in good faith, (b) Borrower has a reasonable basis for the assumptions
contained in such projections and (c) such projections have been prepared in accordance with such
assumptions.

     6.1.9. Notice of an Event of Default under Intercompany Debt Documents.

          Promptly following the Borrower’s knowledge of the occurrence thereof, notice of any event of
default under an Intercompany Debt Document applicable to any Portfolio Company, together with
copies of any written correspondence with the applicable Portfolio Company regarding such event of
default.

     6.1.10. Other Information.

          Promptly from time to time, such other information concerning Borrower and any Subsidiary as
any Lender or Agent may reasonably request.

     6.2. Books; Records; Inspections.

          Keep, and cause each Subsidiary to keep, its books and records in accordance with sound
business practices sufficient to allow the preparation of financial statements in accordance with
GAAP; permit, and cause each Subsidiary to permit, Agent (accompanied by any Lender) or any
representative thereof to inspect, at reasonable times during normal business hours, the properties
and operations of Borrower or such Subsidiary; and permit, and cause each Subsidiary to permit, at
any reasonable time during normal business hours and with reasonable notice (or at any time without
notice if an Event of Default exists), Agent (accompanied by any Lender) or any representative
thereof to visit any or all of its offices, to discuss its financial matters with its officers and
its independent auditors (and Borrower hereby authorizes such independent auditors to discuss such
financial matters with any Lender or Agent or any representative thereof), and to examine (and, at
the expense of Borrower, photocopy extracts from) any of its books or other records; and permit,
and cause each Subsidiary to permit, Agent and its representatives, at reasonable times during
normal business hours, to inspect the assets owned by such Person, to perform appraisals of the
equipment of Borrower or such Subsidiary, and, at reasonable times during normal business hours, to
inspect, audit, check and make copies of and extracts from the books, records, computer data,
computer programs, journals, orders, receipts, correspondence and other data relating to any assets
of Borrower or such Subsidiary. All such inspections or audits by Agent shall be at Borrower’s
expense, provided that so long as no Event of Default or Default exists, Borrower shall not be
required to reimburse Agent for appraisals more frequently than once each Fiscal Year.
Notwithstanding the foregoing, as they relate to any Subsidiary, the inspection and visitation
rights provided for under this Section 6.2 shall only apply if an Event of Default exists hereunder
or if such Subsidiary is in payment default under the Intercompany Debt Documents to which it is a
party.

     6.3. Maintenance of Property; Insurance.

          (a) Keep, and cause each Subsidiary to keep, all property useful and necessary in the business
of such Person in good working order and condition, ordinary wear and tear excepted.

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          (b) Maintain, and cause each Subsidiary to maintain, with responsible insurance companies,
such insurance coverage as shall be required by all laws, governmental regulations and court
decrees and orders applicable to it and such other insurance, to such extent and against such
hazards and liabilities, as is customarily maintained by companies similarly situated; provided
that in any event, such insurance shall insure against all risks and liabilities of the type
insured against as of the Closing Date and shall have insured amounts no less than, and deductibles
no higher than, those amounts provided for as of the Closing Date. Upon request of Agent or any
Lender, Borrower shall furnish to Agent or such Lender a certificate setting forth in reasonable
detail the nature and extent of all insurance maintained by Borrower and each Subsidiary. With
respect to the insurance policies of the Subsidiaries that are party to Intercompany Debt
Documents, Borrower shall, as part of and in connection with such Intercompany Debt Documents, (x)
cause each issuer of an insurance policy to provide Borrower with an endorsement (i) showing
Borrower as a loss payee with respect to each policy of property or casualty insurance and naming
Borrower as an additional insured with respect to each policy of liability insurance and (ii)
providing that 30 days’ notice will be given to Borrower prior to any cancellation of, or reduction
or change in coverage provided by or other material modification to such policy, and (y) obtain a
collateral assignment of each business interruption insurance policy maintained by such
Subsidiaries.

          (c) Unless Borrower provides Agent with evidence of the continuing insurance coverage required
by this Agreement, Agent may purchase insurance at Borrower’s expense to protect the assets of
Borrower (and may require Borrower at its expense to procure insurance to protect the assets of the
Subsidiaries). The coverage that Agent purchases or requires, as applicable, may, but need not,
pay any claim that is made against Borrower (or any Subsidiary, as applicable) in connection with
the assets of such party. Borrower may later cancel any insurance purchased or required by Agent,
but only after providing Agent with evidence that Borrower has obtained the insurance coverage
required by this Agreement. If Agent purchases insurance for the Collateral, as set forth above,
Borrower will be responsible for the costs of that insurance, including interest and any other
charges that may be imposed with the placement of the insurance, until the effective date of the
cancellation or expiration of the insurance and the costs of the insurance may be added to the
principal amount of the Loans owing hereunder.

     6.4. Compliance with Laws; Payment of Taxes and Liabilities.

          (a) Comply, and cause the Trust and each Subsidiary to comply, in all material respects with
all applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except
where failure to comply could not reasonably be expected to have a Material Adverse Effect; (b)
without limiting clause (a) above, ensure, and cause the Trust and each Subsidiary to ensure, that
no person who owns a controlling interest in or otherwise controls the Trust, Borrower or a
Subsidiary is or shall be (i) listed on the Specially Designated Nationals and Blocked Person List
maintained by the Office of Foreign Assets Control (“OFAC”), Department of the Treasury,
and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive
Order or regulation or (ii) a person designated under Section 1(b), (c) or
(d) or Executive Order No. 13224 (September 23, 2001), any related enabling legislation or
any other similar Executive Orders; (c) without limiting clause (a) above, comply and cause the
Trust and each Subsidiary to comply, with all applicable Bank Secrecy Act and anti-money laundering
laws and regulations and (d) pay, and cause each Subsidiary to pay, prior to delinquency, all taxes
and other governmental charges against it or any of its property, as well as claims of any kind
which, if unpaid, could become a Lien on any of its property; provided, that the foregoing
shall not require any Person to pay any such tax or charge so long as it shall contest the validity
thereof in good faith by appropriate proceedings and shall set aside on its books adequate reserves
with respect thereto in accordance with GAAP.

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     6.5. Maintenance of Existence.

          Maintain and preserve, and (subject to Section 7.5) cause the Trust and each
Subsidiary to maintain and preserve, (a) its existence and good standing in the jurisdiction of its
organization and (b) its qualification to do business and good standing in each jurisdiction where
the nature of its business makes such qualification necessary, other than any such jurisdiction
where the failure to be qualified or in good standing could not reasonably be expected to have a
Material Adverse Effect.

     6.6. Employee Benefit Plans.

          Maintain each Pension Plan in substantial compliance with all applicable requirements of law
and regulations.

     6.7. Environmental Matters.

          If any release or disposal of Hazardous Substances shall occur or shall have occurred on any
real property or any other assets of Borrower or any Subsidiary, cause, or direct the applicable
Subsidiary to cause, the prompt containment and removal of such Hazardous Substances and the
remediation of such real property or other assets as is necessary to comply in all material
respects with applicable Environmental Laws and to preserve the value of such real property or
other assets.

     6.8. Further Assurances.

          (a) Take-such actions as are necessary or as Agent or the Required Lenders may reasonably
request from time to time to ensure that the Obligations of Borrower under the Loan Documents are
secured by substantially all of the present and future assets of and equity interests in Borrower,
including (a) the execution and delivery by Borrower of reasonable and customary security
agreements, pledge agreements, mortgages, deeds of trust, financing statements and other documents,
and the filing or recording of any of the foregoing and (b) the delivery by Borrower of
certificated securities and other Collateral with respect to which perfection is obtained by
possession.

          (b) Within ninety (90) days of the date hereof, cause the termination of (i) the intellectual
property lien filings with the federal patent and trademark office in favor of Bank of America,
N.A. against the federally registered intellectual property of Venturi Staffing Partners, Inc. and
(ii) the intellectual property lien filings with the federal patent and trademark office in favor
of, respectively, First Source Financial LLC, Antares Capital Corporation and Bank of America, N.A.
against the federally registered intellectual property of Crosman Corporation.

Section 7. Negative Covenants.

          Until the expiration or termination of the Revolving Loan Commitments and thereafter until all
Obligations (other than contingent indemnification obligations to the extent no claim giving rise
thereto has been asserted) of Borrower hereunder and under the other Loan Documents are paid in
full and all Letters of Credit have been terminated, Borrower agrees that, unless at any time
Required Lenders shall otherwise expressly consent in writing, it will:

     7.1. Debt.

          Not, and not permit any Subsidiary to, create, incur, assume or suffer to exist any Debt,
except:

          (a) Obligations under this Agreement and the other Loan Documents;

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          (b) (i) Debt of the Portfolio Companies that does not exceed in the aggregate at any time
outstanding for any Portfolio Company the lesser of (x) $3,000,000 and (y) the product of (I) the
Existing Portfolio Company EBITDA or New Portfolio Company EBITDA (as applicable) of such Portfolio
Company for the twelve month period ending on the last day of the month for which financial
statements regarding such Portfolio Company have been most recently delivered to Agent in
accordance with the terms of this Agreement times (II) 0.25 (with measurements under this
clause (i) made at the time of incurrence of any such Debt of the Portfolio Companies); and (ii)
Debt of Borrower that does not exceed $500,000 in the aggregate at any time outstanding;

          (c) Qualified Intercompany Debt;

          (d) Hedging Obligations for bona fide hedging purposes and not for speculation;

          (e) Debt described on Schedule 7.1 as of the Closing Date, and any extension, renewal
or refinancing thereof so long as the maximum principal amount thereof is not increased;

          (f) Outside Debt owing solely by Outside Portfolio Companies;

          (g) a $4,000,000 unsecured working capital line of credit facility between SDC Asia Tech. Ltd.
and The Chiba Bank Ltd., with SDA Asia Tech. Ltd. as the only obligor thereunder;

          (h) guarantees of obligations under real property leases and obligations in respect of
severance payments provided by entities within the same Portfolio Company or Operating Company (as
applicable), so long as any such guarantee is provided at the time such obligations are incurred;
and

          (i) Contingent Obligations, if any, arising with respect to customary indemnification
obligations in favor of purchasers in connection with dispositions permitted under Section
7.5.

     7.2. Liens.

          Not, and not permit any Subsidiary to, create or permit to exist any Lien on any of its real
or personal properties, assets or rights of whatsoever nature (whether now owned or hereafter
acquired), except:

          (a) Liens for taxes or other governmental charges not at the time delinquent or thereafter
payable without penalty or being diligently contested in good faith by appropriate proceedings and,
in each case, for which it maintains adequate reserves in accordance with GAAP and the execution or
other enforcement of which is effectively stayed;

          (b) Liens arising in the ordinary course of business (such as (i) Liens of carriers,
warehousemen, mechanics, landlords and materialmen and other similar Liens imposed by law and (ii)
Liens incurred in connection with worker’s compensation, unemployment compensation and other types
of social security (excluding Liens arising under ERISA) or in connection with surety bonds, bids,
performance bonds and similar obligations) for sums not overdue or being diligently contested in
good faith by appropriate proceedings and not involving any deposits or advances or borrowed money
or the deferred purchase price of property or services and, in each case, for which it maintains
adequate reserves in accordance with GAAP and the execution or other enforcement of which is
effectively stayed;

          (c) Liens described on Schedule 7.2 as of the Closing Date;

          (d) to the extent securing Debt that is permitted to be incurred pursuant to Section
7.1(b), (i) Liens on the assets of a Portfolio Company arising in connection with Capital
Leases of such

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Portfolio Company (and attaching only to the property being leased), (ii) Liens on the assets
of a Portfolio Company existing on property at the time of the acquisition thereof by such
Portfolio Company (and not created in contemplation of such acquisition) and (iii) Liens that
constitute purchase money security interests on any property of a Portfolio Company securing debt
of such Portfolio Company incurred for the purpose of financing all or any part of the cost of
acquiring such property, provided that any such Lien attaches to such property within 60 days of
the acquisition thereof and attaches solely to the property so acquired;

          (e) attachments, appeal bonds, judgments and other similar Liens, for sums not exceeding
$500,000 for any Portfolio Company, for any Outside Company, or for Borrower arising in connection
with court proceedings; provided, that the execution or other enforcement of such Liens is
effectively stayed and the claims secured thereby are being actively contested in good faith and by
appropriate proceedings;

          (f) easements, rights of way, restrictions, minor defects or irregularities in title and other
similar Liens not interfering in any material respect with the ordinary conduct of the business of
Borrower or any Subsidiary;

          (g) Liens arising under the Loan Documents;

          (h) Liens in favor of Borrower arising under Qualified Intercompany Debt Documents and
securing Intercompany Debt;

          (i) Liens securing Outside Debt that solely apply to the assets of Outside Portfolio
Companies;

          (j) leases or subleases granted to other Persons not interfering in any material respect with
the conduct of the business of the Borrower or any Subsidiary;

          (k) precautionary financing statement filings regarding operating leases; and

          (l) the replacement, extension or renewal of any Lien permitted by clause (c) above upon or in
the same property subject thereto arising out of the extension, renewal or replacement of the Debt
secured thereby (without increase in the amount thereof).

     7.3. [Intentionally Omitted].

     7.4. Restricted Payments.

          Not, and not permit any Subsidiary to, (a) make any dividend or other distribution to any of
its equity holders, (b) purchase or redeem any of its equity interests or any warrants, options or
other rights in respect thereof, (c) pay any management fees or similar fees to any of its equity
holders or any Affiliate thereof, (d) make any redemption, prepayment (whether mandatory or
optional), defeasance, repurchase or any other payment in respect of any Subordinated Debt or (e)
set aside funds for any of the foregoing. Notwithstanding the foregoing, (i) any Portfolio Company
and any Outside Company may pay pro rata dividends and other distributions to Borrower and to the
other holders of the equity interests of such Portfolio Company or Outside Company; (ii) Borrower
may make distributions to the Trust to permit the Trust to satisfy expenses of the Trust that
relate to Borrower and its Subsidiaries and to pay federal and state income taxes then due and
owing by the Trust (or its equity holders), so long as the amount of such distributions for the
payment of taxes shall not be greater than they would have been had Borrower not filed consolidated
income tax returns with such Person; (iii) Borrower and the Portfolio Companies may pay Management
Fees to Manager, and reimburse Manager for its reasonable expenses

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incurred in connection with its management of Borrower, pursuant to and in accordance with the
terms of the Management Fee Agreement as in effect on the date hereof and the other Management Fee
Documents (provided, that any amounts paid by Borrower under the Management Fee Agreement shall be
net of amounts paid by Portfolio Companies to Manager or its Affiliates pursuant to Management Fee
Documents to which the Portfolio Companies are party); (iv) Subsidiaries may pay Transaction
Services Fees, in each case to the extent that (i) such transaction fee is reasonable and customary
based on the applicable acquisition or sale and (ii) such transaction fee has been approved by the
board of directors of the applicable Portfolio Company or Outside Company and by the compensation
committee of Borrower; (v) Borrower may make Allocation Member Distributions in connection with and
at the time of Dispositions of Subsidiaries that are permitted by Section 7.5(b) and (vi)
Borrower may make distributions to the Trust, for further Distribution to the equityholders of the
Trust, if, after giving effect thereto and the incurrence of any Debt in connection therewith, (x)
no Event of Default exists (and, assuming any such incurrence of Debt in connection therewith had
occurred on the first day of the then most recently ended Computation Period for which financial
statements have been delivered hereunder, would not exist under Section 7.14.3), and (y)
either (1) the amount of Borrowing Availability is not less than the product of Consolidated EBITDA
for the twelve month period ending on the last day of the month for which financial statements have
been most recently delivered to Agent in accordance with this Agreement times 0.25, or (2)
the Fixed Charge Coverage Ratio for the twelve month period (or such shorter period commencing on
July 1, 2006) ending on the last day of the month for which financial statements have been most
recently delivered in accordance with this Agreement, calculated with the amount of any such
distribution by Borrower, together with all other such distributions by Borrower during such period
of measurement, being counted as a charge in the denominator of the Fixed Charge Coverage Ratio, is
greater than 1.00.

     7.5. Mergers; Consolidations; Asset Sales.

          (a) Not, and not permit the Trust or any Subsidiary to, be a party to any merger or
consolidation, except for (i) any such merger or consolidation of any Subsidiary into a domestic
Subsidiary that is the parent company of such Subsidiary, (ii) a Permitted Trust Merger, (iii)
Permitted Eligible Acquisitions and (iv) Permitted Ineligible Acquisitions.

          (b) Not, and not permit any Subsidiary to, sell, transfer, dispose of, convey or lease any of
its assets or equity interests, or sell or assign with or without recourse any receivables, except
for (i) sales of inventory by the Portfolio Companies in the ordinary course of business, (ii) a
sale by Borrower of a Portfolio Company, so long as no Event of Default exists or would result
therefrom and all Intercompany Debt owing by such Portfolio Company is repaid in cash in full at
the time of the closing of such sale, (iii) a sale by Borrower of an Outside Company, (iv) sales
and dispositions of assets by any Outside Company for at least fair market value (as determined by
the Board of Directors of such Outside Company), and (v) sales and dispositions of assets by any
Portfolio Company for at least fair market value (as determined by the Board of Directors of such
Portfolio Company), so long as the net book value of all assets sold or otherwise disposed of by
such Portfolio Company in any Fiscal Year does not exceed the amount that is equal to 15% of the
net book value of the tangible assets of such Portfolio Company as of the last day of the most
recently ended fiscal year of such Portfolio Company.

     7.6. Modification of Organizational Documents.

          Not permit the Trust Agreement or the Borrower LLC Agreement, or the charter, by-laws or other
organizational documents of Borrower or any Subsidiary, to be amended or modified in any way which
could reasonably be expected to materially adversely affect the interests of Agent or any Lender.

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     7.7. Use of Proceeds.

          Use the proceeds of the Loans, and the Letters of Credit, solely to repay the Prior Debt, to
satisfy fees and expenses arising in connection with the closing of the loan facility hereunder, to
fund Permitted Eligible Acquisitions and Permitted Ineligible Acquisitions, to fund distributions
permitted to be made by Borrower under Section 7.4, to fund advances of Qualified
Intercompany Debt by Borrower and to fund other Investments by Borrower permitted to be made
hereunder, and for other permitted general business purposes of Borrower; and not use or permit any
proceeds of any Loan to be used, either directly or indirectly, for the purpose, whether immediate,
incidental or ultimate, of “purchasing or carrying” any Margin Stock.

     7.8. Transactions with Affiliates.

          Except as disclosed on Schedule 7.8 and except for transactions, arrangements and
contracts that are otherwise expressly permitted under the terms of this Agreement, not, and not
permit any Subsidiary to, enter into, or cause, suffer or permit to exist any transaction,
arrangement or contract with any of its other Affiliates, which is not on arm’s-length terms.

     7.9. Inconsistent Agreements.

          Not, and not permit any Subsidiary to, enter into any agreement containing any provision which
would (a) be violated or breached by any borrowing by Borrower hereunder or by the performance by
Borrower of any of its Obligations hereunder or under any other Loan Document, or by any borrowing
by a Portfolio Company under the Intercompany Debt Documents to which it is a party or the
performance by such Portfolio Company of its obligations under the Intercompany Debt Documents to
which it is a party, (b) prohibit Borrower from granting to Agent and Lenders a Lien on any of its
assets, or prohibit a Portfolio Company from granting a Lien on its assets to Borrower pursuant to
the Qualified Intercompany Debt Documents to which such Portfolio Company is a party, or (c) create
or permit to exist or become effective any encumbrance or restriction on the ability of any
Subsidiary to (i) pay dividends or make other distributions to Borrower or any other Subsidiary, or
pay any Debt owed to Borrower or any other Subsidiary, (ii) make loans or advances to Borrower or
any other Subsidiary that is a parent company of such Subsidiary or (iii) transfer any of its
assets or properties to Borrower or any other Subsidiary that is a parent company of such
Subsidiary other than, in the case of each of the foregoing clauses (i) through (iii), (A)
customary restrictions and conditions contained in agreements relating to the sale of all or a
substantial part of the capital stock or assets of any Subsidiary pending such sale, provided such
restrictions and conditions apply only to the Subsidiary to be sold and such sale is permitted
hereunder, (B) restrictions provided for under Qualified Intercompany Debt Documents and
documentation applicable to Outside Portfolio Companies governing Outside Debt, (C) restrictions or
conditions imposed by any agreement relating to purchase money Debt, Capital Leases and other
secured Debt permitted by this Agreement if such restrictions or conditions apply only to the
property or assets securing such Debt and (D) customary provisions in leases and other contracts
restricting the assignment thereof.

     7.10. Business Activities.

          Not act, and not permit the Trust to act, in any capacity other than as a holding company (it
being agreed and understood that the Trust may make Investments in sister companies to Borrower so
long as the Trust does not incur any Debt in connection with any such Investments), and not permit
any Subsidiary to, engage in any line of business other than the businesses engaged in on the
Closing Date, in the case of Existing Portfolio Companies owned as of the Closing Date, or on the
date of the acquisition thereof pursuant to a Permitted Eligible Acquisition or a Permitted
Ineligible Acquisition (as applicable), in the case of New Portfolio Companies and Outside
Portfolio Companies acquired after the Closing

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Date, and businesses reasonably related thereto. Not issue any equity interest other than
equity securities issued to the Trust and not pledged to any Person and Allocation Interests issued
pursuant to the provisions of the Borrower LLC Agreement.

     7.11. Investments.

          Not, and not permit any Subsidiary to, make or permit to exist any Investment in any other
Person, except the following:

          (a) contributions by Borrower to the capital of Portfolio Company or an Outside Company, so
long as all of the equity interests in such Portfolio Company or Outside Company owned by Borrower
have been pledged to Agent to secure the Obligations in accordance with Section 6.8(a);

          (b) Investments in Portfolio Companies constituting Qualified Intercompany Debt; in each case
so long as Agent has received projections and other financial data reasonably acceptable to the
Agent which demonstrates that, after giving effect to the incurrence of any such Qualified
Intercompany Debt by a Portfolio Company, (i) such Portfolio Company is Solvent and (ii) the
Portfolio Company Leverage Ratio for such Portfolio Company is not greater than 5.00;

          (c) Investments of Debt in Outside Companies, so long as the instruments evidencing any such
Debt Investment have been pledged to Agent to secure the Obligations in accordance with Section
6.8(a);

          (d) Contingent Obligations constituting Debt permitted by Section 7.1 or Liens
permitted by Section 7.2;

          (e) Cash Equivalent Investments;

          (f) bank deposits in the ordinary course of business;

          (g) Investments in securities of Account Debtors received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such Account Debtors;

          (h) Investments listed on Schedule 7.11 as of the Closing Date; and

          (i) Permitted Eligible Acquisitions and Permitted Ineligible Acquisitions.

     7.12. Restriction of Amendments to Certain Documents.

          (a) Not amend or otherwise modify, or waive any rights under any Related Agreement other than
the Intercompany Debt Documents, other than immaterial amendments, modifications and waivers not
adverse to the interests of Agent or any Lender; (b) not amend or otherwise modify, or waive any
rights under, any provisions of the Intercompany Debt Documents to the extent that any such
amendment, modification or waiver would have the effect of extending any maturity dates, reducing
any scheduled amounts for repayments of principal, extending any scheduled payment dates for
principal, reducing any interest or fees, reducing any interest rates, reducing or deferring any
mandatory prepayments, waiving any payment defaults or waiving any bankruptcy defaults (provided,
that this clause (b) shall not prohibit amended payments terms that are implemented in connection
with a recapitalization of a Portfolio Company that is permitted hereunder so long as such payments
terms are consistent with the applicable Intercompany Debt Documents as in effect prior to such
amendments and are otherwise reasonably acceptable to Agent); (c) not release, or permit the
release of, any Liens provided for under the Intercompany Debt Documents other than in connection
with a Disposition that is

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permitted by the provisions of Section 7.5; (d) not terminate, or permit the termination of,
any third-party documents and deliveries provided in furtherance of the Liens provided for under
the Intercompany Debt Documents other than in connection with a Disposition that is permitted by
the provisions of Section 7.5; and (e) not administer any of the Intercompany Debt Documents other
than on an arms’-length basis.

     7.13. Fiscal Year.

          Not change its Fiscal Year.

     7.14. Financial Covenants.

     7.14.1. Fixed Charge Coverage Ratio.

          Not permit the Fixed Charge Coverage Ratio for any Computation Period to be less than 1.50.

     7.14.2. Interest Coverage Ratio.

          Not permit the Interest Coverage Ratio for any Computation Period to be less than 3.00.

     7.14.3. Total Debt to EBITDA Ratio.

          Not permit the Total Debt to EBITDA Ratio as of the last day of any Computation Period to
exceed 3.00.

     7.15. Bank Accounts.

          Not to maintain or establish any new bank accounts other than the bank accounts set forth on
Schedule 7.15 without prior written notice to Agent and unless Agent, Borrower and the bank
at which the account is to be opened enter into a tri-party agreement regarding such bank account
pursuant to which such bank acknowledges the security interest and control of Agent in such bank
account and agrees to limit its set-off rights on terms satisfactory to Agent. Regarding the
deposit accounts of Borrower at Bank of America, N.A., Borrower shall use commercially reasonable
efforts to cause a deposit account control agreement that is reasonably satisfactory to Agent in
form and content to be executed and delivered to Agent in respect of such deposit accounts at Bank
of America, N.A. within thirty (30) days of the date hereof. If such a deposit account control
agreement in respect of such deposit accounts at Bank of America, N.A. has not been delivered to
Agent within thirty (30) days of the date hereof, then, within thirty (30) days thereafter,
Borrower shall close such deposit accounts at Bank of America, N.A., open new deposit accounts at
another depositary institution and cause such new deposit accounts to become subject to an executed
deposit account control agreement in favor of Agent that is reasonably acceptable to Agent in form
and content.

     7.16. Subsidiaries.

          Not, and not permit any Subsidiary, to establish or acquire any new Subsidiary except (i) a
Subsidiary that is a Target in a Permitted Eligible Acquisition or a Permitted Ineligible
Acquisition, or that is a Subsidiary formed for the sole purpose of consummating a Permitted
Eligible Acquisition or a Permitted Ineligible Acquisition (“Acquisition Subsidiary”), (ii) a
Domestic Subsidiary of a Portfolio Company that is joined to the Qualified Intercompany Debt
Documents applicable to such Portfolio Company, with such joinder documents, among other things,
causing Borrower to have a perfected, first-priority Lien (subject only to permitted Liens) in
substantially all of the assets of and equity interest in such Domestic Subsidiary, and (iii)
Subsidiaries of Outside Companies.

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Section 8. Events of Default; Remedies.

     8.1. Events of Default.

          Each of the following shall constitute an Event of Default under this Agreement:

     8.1.1. Non-Payment of Credit.

          Default in the payment when due of the principal of any Loan; or default, and continuance
thereof for 2 days, in the payment when due of any interest, fee, reimbursement obligation with
respect to any Letter of Credit or other amount payable by Borrower hereunder or under any other
Loan Document.

     8.1.2. Default Under Other Debt.

          Any default shall occur under the terms applicable to any other Debt of Borrower in an
aggregate amount (for all such Debt so affected and including undrawn committed or available
amounts and amounts owing to all creditors under any combined or syndicated credit arrangement)
exceeding $500,000 and such default shall (a) consist of the failure to pay such Debt when due,
whether by acceleration or otherwise, or (b) accelerate the maturity of such Debt or permit the
holder or holders thereof, or any trustee or agent for such holder or holders, to cause such Debt
to become due and payable (or require Borrower to purchase or redeem such Debt or post cash
collateral in respect thereof) prior to its expressed maturity.

     8.1.3. Bankruptcy; Insolvency.

          Borrower or the Trust becomes insolvent or generally fails to pay, or admits in writing its
inability or refusal to pay, debts as they become due; or the Trust or Borrower applies for,
consents to, or acquiesces in the appointment of a trustee, receiver or other custodian for such
Person or any property thereof, or makes a general assignment for the benefit of creditors; or, in
the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is
appointed for the Trust or Borrower or for a substantial part of the property of any thereof and is
not discharged within 60 days; or any bankruptcy, reorganization, debt arrangement, or other case
or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding,
is commenced in respect of the Trust or Borrower, and if such case or proceeding is not commenced
by such Person, it is consented to or acquiesced in by such Person, or remains for 60 days
undismissed; or the Trust or Borrower takes any action to authorize, or in furtherance of, any of
the foregoing.

     8.1.4. Non-Compliance with Loan Documents.

          (a) Failure by Borrower to comply with or to perform any covenant set forth in Sections
6.1.1, 6.1.2, 6.1.3, 6.1.5(a), 6.1.6, 6.1.8,
6.3(b), 6.5, 6.7, 6.8(b), and 7; or (b) failure by Borrower
to comply with or to perform any other provision of this Agreement or any other Loan Document
applicable to it (and not constituting an Event of Default under any other provision of this
Section 8) and continuance of such failure described in this clause (b) for 30 days.

     8.1.5. Representations; Warranties.

          Any representation or warranty made by Borrower herein or any other Loan Document is breached
or is false or misleading in any material respect, or any schedule, certificate, financial
statement, report, notice or other writing furnished by Borrower to Agent or any Lender in
connection herewith is

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false or misleading in any material respect on the date as of which the facts therein set
forth are stated or certified.

     8.1.6. Pension Plans.

          (a) Institution of any steps by any Person to terminate a Pension Plan if as a result of such
termination Borrower or any member of the Controlled Group could be required to make a contribution
to such Pension Plan, or could incur a liability or obligation to such Pension Plan, in excess of
$250,000; (b) a contribution failure occurs with respect to any Pension Plan sufficient to give
rise to a Lien under Section 302(f) of ERISA; or (c) there shall occur any withdrawal or partial
withdrawal from a Multiemployer Pension Plan and the withdrawal liability (without unaccrued
interest) to Multiemployer Pension Plans as a result of such withdrawal (including any outstanding
withdrawal liability that Borrower or any member of the Controlled Group have incurred on the date
of such withdrawal) exceeds $250,000.

     8.1.7. Judgments.

          Final judgments which exceed an aggregate of $250,000 shall be rendered against Borrower and
shall not have been paid, discharged or vacated or had execution thereof stayed pending appeal
within 30 days after entry or filing of such judgments.

     8.1.8. Invalidity of Collateral Documents.

          Any Collateral Document shall cease to be in full force and effect; or Borrower (or any Person
by, through or on behalf of Borrower) shall contest in any manner the validity, binding nature or
enforceability of any Collateral Document.

     8.1.9. Invalidity of Subordination Provisions.

          Any subordination provision in any document or instrument governing Subordinated Debt or any
subordination provision in any subordination agreement that relates to any Subordinated Debt, or
any subordination provision in any guaranty by Borrower of any Subordinated Debt, shall cease to be
in full force and effect, or any Person (including the holder of any applicable Subordinated Debt)
shall contest in any manner the validity, binding nature or enforceability of any such provision.

     8.1.10. Change of Control.

          (a) Manager ceases to be the manager under the Management Fee Agreement or the Management Fee
Agreement ceases to be in full force and effect in accordance with their terms in effect as of the
Closing Date in any respect, (b) the equity interests in the Trust cease to be registered for
trading on a Public Market, or (c) the Trust shall cease to directly own and control 100% of each
class of the outstanding equity interests of Borrower (other than the Allocation Interests) or
shall pledge the equity interests in Borrower owned by the Trust to any Person.

     8.1.11. Activities of the Trust or Borrower.

          Borrower or the Trust (i) conducts any business other than (x) its ownership of equity
securities of Borrower and the ownership of equity securities in sister companies to Borrower in
respect of which the Trust has not incurred any Debt, in the case of the Trust and (y) the
ownership of its Investments in the Portfolio Companies, in the case of Borrower, together in each
case with activities incidental to the conduct of its business as a holding company.

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     8.2. Remedies.

          If any Event of Default described in Section 8.1.3 shall occur, the Revolving Loan
Commitments shall immediately terminate and the Loans and all other Obligations shall become
immediately due and payable and Borrower shall become immediately obligated to cash collateralize
all Letters of Credit in a manner acceptable to Agent, all without presentment, demand, protest or
notice of any kind; and, if any other Event of Default shall occur and be continuing, Agent (upon
the written request of Required Lenders) shall declare the Revolving Loan Commitments to be
terminated in whole or in part and/or declare all or any part of the Loans and other Obligations to
be due and payable and/or demand that Borrower immediately cash collateralize all or any Letters of
Credit in a manner acceptable to Agent, whereupon the Revolving Loan Commitments shall immediately
terminate (or be reduced, as applicable) and/or the Loans and other Obligations shall become
immediately due and payable (in whole or in part, as applicable) and/or Borrower shall immediately
become obligated to cash collateralize the Letters of Credit (all or any, as applicable) in a
manner acceptable to Agent, all without presentment, demand, protest or notice of any kind. Agent
shall promptly advise Borrower of any such declaration, but failure to do so shall not impair the
effect of such declaration. Notwithstanding the foregoing, the effect as an Event of Default of
any event described in Section 8.1.1 may only be waived by the written concurrence of each
Lender, and the effect as an Event of Default of any other event described in this Section
8 may be waived by the written concurrence of Required Lenders. Any cash collateral delivered
hereunder shall be held by Agent (without liability for interest thereon) and applied to
Obligations arising in connection with any drawing under a Letter of Credit. After the expiration
or termination of all Letters of Credit, such cash collateral shall be applied by Agent to any
remaining Obligations and any excess shall be delivered to Borrower or as a court of competent
jurisdiction may elect.

Section 9. Agent.

     9.1. Appointment; Authorization.

          (a) Each Lender hereby irrevocably appoints, designates and authorizes Agent to take such
action on its behalf under the provisions of this Agreement and each other Loan Document and to
exercise such powers and perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document, together with such powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in
any other Loan Document, Agent shall not have any duty or responsibility except those expressly set
forth herein, nor shall Agent have or be deemed to have any fiduciary relationship with any Lender,
and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be
read into this Agreement or any other Loan Document or otherwise exist against Agent.

          (b) Issuing Lender shall act on behalf of Lenders (according to their Pro Rata Shares) with
respect to any Letters of Credit issued by it and the documents associated therewith. Issuing
Lender shall have all of the benefits and immunities (i) provided to Agent in this Section
9 with respect to any acts taken or omissions suffered by Issuing Lender in connection with
Letters of Credit issued by it or proposed to be issued by it and the applications and agreements
for letters of credit pertaining to such Letters of Credit as fully as if the term “Agent”, as used
in this Section 9, included Issuing Lender with respect to such acts or omissions and (ii)
as additionally provided in this Agreement with respect to Issuing Lender.

     9.2. Delegation of Duties.

          Agent may execute any of its duties under this Agreement or any other Loan Document by or
through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel
concerning

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all matters pertaining to such duties. Agent shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects with reasonable care.

     9.3. Limited Liability.

          None of Agent or any of its directors, officers, employees or agents shall (a) be liable for
any action taken or omitted to be taken by any of them under or in connection with this Agreement
or any other Loan Document or the transactions contemplated hereby (except to the extent resulting
from its own gross negligence or willful misconduct as determined by a court of competent
jurisdiction), or (b) be responsible in any manner to any Lender for any recital, statement,
representation or warranty made by Borrower or any Affiliate of Borrower, or any officer thereof,
contained in this Agreement or in any other Loan Document, or in any certificate, report, statement
or other document referred to or provided for in, or received by Agent under or in connection with,
this Agreement or any other Loan Document, or the validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document (or the creation,
perfection or priority of any Lien or security interest therein), or for any failure of Borrower or
any other party to any Loan Document to perform its Obligations hereunder or thereunder. Agent
shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement or any other
Loan Document, or to inspect the properties, books or records of Borrower or any Affiliate of
Borrower.

     9.4. Reliance.

          Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or
telephone message, statement or other document believed by it to be genuine and correct and to have
been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal
counsel (including counsel to Borrower), independent accountants and other experts selected by
Agent. Agent shall be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document unless it shall first receive such advice or concurrence of
Required Lenders (or all Lenders if expressly required hereunder) as it deems appropriate and, if
it so requests, confirmation from Lenders of their obligation to indemnify Agent against any and
all liability and expense which may be incurred by it by reason of taking or continuing to take any
such action. Agent shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement or any other Loan Document in accordance with a request or consent of Required
Lenders (or all Lenders if expressly required hereunder) and such request and any action taken or
failure to act pursuant thereto shall be binding upon each Lender.

     9.5. Notice of Default.

          Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of
Default or Default except with respect to defaults in the payment of principal, interest and fees
required to be paid to Agent for the account of Lenders, unless Agent shall have received written
notice from a Lender or Borrower referring to this Agreement, describing such Event of Default or
Default and stating that such notice is a “notice of default”. Agent will notify Lenders of its
receipt of any such notice or any such default in the payment of principal, interest and fees
required to be paid to Agent for the account of Lenders. Agent shall take such action with respect
to such Event of Default or Default as may be requested by Required Lenders in accordance with
Section 8; provided that unless and until Agent has received any such request, Agent may
(but shall not be obligated to) take such action, or refrain from taking such action, with respect
to such Event of Default or Default as it shall deem advisable or in the best interest of Lenders.

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     9.6. Credit Decision.

          Each Lender acknowledges that Agent has not made any representation or warranty to it, and
that no act by Agent hereafter taken, including any review of the affairs of Borrower, the Trust
and the Subsidiaries, shall be deemed to constitute any representation or warranty by Agent to any
Lender. Each Lender represents to Agent that it has, independently and without reliance upon Agent
and based on such documents and information as it has deemed appropriate, made its own appraisal of
and investigation into the business, prospects, operations, property, financial and other condition
and creditworthiness of Borrower, the Trust and the Subsidiaries, and made its own decision to
enter into this Agreement and to extend credit to Borrower hereunder. Each Lender also represents
that it will, independently and without reliance upon Agent and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and creditworthiness of
Borrower, the Trust and the Subsidiaries. Except for notices, reports and other documents
expressly herein required to be furnished to Lenders by Agent, Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information concerning the business,
prospects, operations, property, financial or other condition or creditworthiness of Borrower or
the Trust or any Affiliate of Borrower or the Trust which may come into the possession of Agent.

     9.7. Indemnification.

          Whether or not the transactions contemplated hereby are consummated, each Lender shall
indemnify upon demand Agent and its directors, officers, employees and agents (to the extent not
reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so),
based on such Lender’s Pro Rata Share, from and against any and all actions, causes of action,
suits, losses, liabilities, damages and expenses, including Legal Costs, except to the extent any
thereof result from the applicable Person’s own gross negligence or willful misconduct, as
determined by a court of competent jurisdiction. Without limitation of the foregoing, each Lender
shall reimburse Agent upon demand for its ratable share of any costs or out-of-pocket expenses
(including Legal Costs) incurred by Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the
extent that Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking
in this Section 9.7 shall survive repayment of the Loans, cancellation of the Notes,
expiration or termination of the Letters of Credit, any foreclosure under, or modification, release
or discharge of, any or all of the Collateral Documents, termination of this Agreement and the
resignation or replacement of Agent.

     9.8. Agent Individually.

          Madison and its Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with Borrower or the Trust and any
Affiliate of Borrower or the Trust as though Madison were not Agent hereunder and without notice to
or consent of any Lender. Each Lender acknowledges that, pursuant to such activities, Madison or
its Affiliates may receive information regarding Borrower and the Trust or their Affiliates
(including information that may be subject to confidentiality obligations in favor of any such
Person) and acknowledge that Agent shall be under no obligation to provide such information to
them. With respect to their Loans (if any), Madison and its Affiliates shall have the same rights
and powers under this Agreement as any other Lender and

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may exercise the same as though Madison were not Agent, and the terms “Lender” and “Lenders”
include Madison and its Affiliates, to the extent applicable, in their individual capacities.

     9.9. Successor Agent.

          Agent may resign as Agent at any time upon 30 days’ prior notice to Lenders. If Agent resigns
under this Agreement, Required Lenders shall, with (so long as no Event of Default exists) the
consent of Borrower (which shall not be unreasonably withheld or delayed), appoint from among
Lenders a successor agent for Lenders. If no successor agent is appointed prior to the effective
date of the resignation of Agent, Agent may appoint, on behalf after consulting with Lenders and
(so long as no Event of Default exists) Borrower, a successor agent from among Lenders. Upon the
acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to
all the rights, powers and duties of the retiring Agent and the term “Agent” shall mean such
successor agent, and the retiring Agent’s appointment, powers and duties as Agent shall be
terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this
Section 9 and Sections 10.4 and 10.5 shall continue to inure to its benefit
as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. If
no successor agent has accepted appointment as Agent by the date which is 30 days following a
retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless
thereupon become effective and Lenders shall perform all of the duties of Agent hereunder until
such time, if any, as Required Lenders appoint a successor agent as provided for above.

     9.10. Collateral Matters.

          Lenders irrevocably authorize Agent, at its option and in its discretion, (a) to release any
Lien granted to or held by Agent under any Collateral Document (i) when all Obligations have been
Paid in Full; (ii) constituting property sold or to be sold or disposed of as part of or in
connection with any sale or other disposition permitted hereunder (it being agreed and understood
that Agent may conclusively rely without further inquiry on a certificate of an officer of Borrower
as to the sale or other disposition of property being made in compliance with this Agreement); or
(iii) subject to Section 10.1, if approved, authorized or ratified in writing by Required
Lenders; or (b) to subordinate its interest in any Collateral to any holder of a Lien on such
Collateral which is permitted by clause (d)(i) or (d)(iii) of Section 7.2 (it being
understood that Agent may conclusively rely on a certificate from Borrower in determining whether
the Debt secured by any such Lien is permitted by Section 7.1(b)). Upon request by Agent
at any time, Lenders will confirm in writing Agent’s authority to release, or subordinate its
interest in, particular types or items of Collateral pursuant to this Section 9.10.

     9.11. Subordinated Debt.

          Each Lender hereby irrevocably appoints, designates and authorizes Agent to enter into any
subordination or intercreditor agreement pertaining to any Subordinated Debt, on its behalf and to
take such action on its behalf under the provisions of any such agreement (subject to the last
sentence of this Section 9.11). Each Lender further agrees to be bound by the terms and
conditions of any subordination or intercreditor agreement pertaining to any Subordinated Debt.
Each Lender hereby authorizes Agent to issue blockages notices in connection with any Subordinated
Debt at the direction of Required Lenders (it being agreed and understood that Agent will not act
unilaterally to issue such blockage notices).

     9.12. Documentation and Syndication Agent.

          Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any
other Loan Document, any Documentation Agent or Syndication Agent designated by Agent and Borrower
shall have no duties or responsibilities, and such Documentation Agent or Syndication Agent

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shall not have or be deemed to have any fiduciary relationship with any Lender, and no implied
responsibilities, duties or obligations shall be construed to exist with respect to any such
Documentation Agent or Syndication Agent in this Agreement or any other Loan Document.

Section 10. Miscellaneous.

     10.1. Waiver; Amendments.

          No delay on the part of Agent or any Lender in the exercise of any right, power or remedy
shall operate as a waiver thereof, nor shall any single or partial exercise by any of them of any
right, power or remedy preclude other or further exercise thereof, or the exercise of any other
right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any
provision of this Agreement, the Notes or any of the other Loan Documents (or any subordination and
intercreditor agreement or other subordination provisions relating to any Subordinated Debt) shall
in any event be effective unless the same shall be in writing and approved by Lenders having
aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares expressly designated
herein with respect thereto or, in the absence of such designation as to any provision of this
Agreement, by Required Lenders, and then any such amendment, modification, waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given. No
amendment, modification, waiver or consent shall increase any Revolving Loan Commitment (other than
pursuant to the provisions of Section 2.1.2 as in effect on the date hereof), extend the date
scheduled for payment of any principal of (except as set forth below) or interest on the Loans or
any fees or other amounts payable hereunder or under the other Loan Documents or reduce the
principal amount of any Loan, the amount or rate of interest thereon (provided, that Required
Lenders may rescind an imposition of default interest pursuant to Section 2.7.1) or any
fees or other amounts payable hereunder or under the other Loan Documents, without, in each case,
the consent of each Lender affected thereby. No amendment, modification, waiver or consent shall
release any party from its obligations under the Collateral Agreement or all or any substantial
part of the Collateral granted under the Collateral Documents, change any of the definitions of
Availability, Combined Eligible Availability, Borrowing Availability, Required Lenders, change any
provision of this Section 10.1, amend the provisions of Section 2.12.2 or reduce
the aggregate Pro Rata Share required to effect any amendment, modification, waiver or consent,
without, in each case, the consent of all Lenders. No provision of Section 9 or other
provision of this Agreement affecting Agent in its capacity as such shall be amended, modified or
waived without the consent of Agent. No provision of this Agreement relating to the rights or
duties of Issuing Lender in its capacity as such shall be amended, modified or waived without the
consent of Issuing Lender.

     10.2. Notices.

          Except as otherwise provided in Sections 2.2.2 and 2.2.3, all notices
hereunder shall be in writing (including facsimile transmission) and shall be sent to the
applicable party at its address shown on Annex II or at such other address as such party
may, by written notice received by the other parties, have designated as its address for such
purpose. Notices sent by facsimile transmission shall be deemed to have been given when sent;
notices sent by mail shall be deemed to have been given three Business Days after the date when
sent by registered or certified mail, postage prepaid; and notices sent by hand delivery or
overnight courier service shall be deemed to have been given when received. For purposes of
Sections 2.2.2 and 2.2.3, Agent shall be entitled to rely on telephonic
instructions from any person that Agent in good faith believes is an authorized officer or employee
of Borrower, and Borrower shall hold Agent and each other Lender harmless from any loss, cost or
expense resulting from any such reliance. Borrower and Lenders each hereby acknowledge that, from
time to time, Agent may deliver information and notices to Lenders using the internet service
“Intralinks”. Each of Borrower and each Lender hereby agree that Agent may, in its discretion,
utilize Intralinks for such purpose.

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     10.3. Computations.

          (a) Unless otherwise specifically provided herein, any accounting term used in this Agreement
(including in Section 7.14 or any related definition) shall have the meaning customarily
given such term in accordance with GAAP, and all financial computations (including pursuant to
Section 7.14 and the related definitions, and with respect to the character or amount of
any asset or liability or item of income or expense, or any consolidation or other accounting
computation) hereunder shall be computed in accordance with GAAP consistently applied; provided
that if Borrower notifies Agent that Borrower wishes to amend any covenant in Section 7.14
(or any related definition) to eliminate or to take into account the effect of any change in GAAP
on the operation of such covenant (or if Agent notifies Borrower that Required Lenders wish to
amend Section 7.14 (or any related definition) for such purpose), then Borrower’s
compliance with such covenant shall be determined on the basis of GAAP in effect immediately before
the relevant change in GAAP became effective, until either such notice is withdrawn or such
covenant (or related definition) is amended in a manner satisfactory to Borrower and Required
Lenders. The explicit qualification of terms or computations by the phrase “in accordance with
GAAP” shall in no way be construed to limit the foregoing.

          (b) For all purposes of calculating Borrowing Availability and any financial tests hereunder,
the results of any Outside Companies and any Portfolio Companies that no longer constitute
Subsidiaries of Borrower as of the applicable date of measurement shall be excluded in their
entirety.

     10.4. Costs; Expenses.

          Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses of Agent
(including Legal Costs) in connection with the preparation, execution, syndication, delivery and
administration (including perfection and protection of Collateral) of this Agreement, the other
Loan Documents and all other documents provided for herein or delivered or to be delivered
hereunder or in connection herewith (including any proposed or actual amendment, supplement or
waiver to any Loan Document), and all reasonable out-of-pocket costs and expenses (including Legal
Costs) incurred by Agent and each Lender after an Event of Default in connection with the
collection of the Obligations and enforcement of this Agreement, the other Loan Documents or any
such other documents. In addition, Borrower agrees to pay, and to save Agent and Lenders harmless
from all liability for, any fees of Borrower’s auditors in connection with any reasonable exercise
by Agent and Lenders of their rights pursuant to Section 6.2. All Obligations provided for
in this Section 10.4 shall survive repayment of the Loans, cancellation of the Notes,
expiration or termination of the Letters of Credit and termination of this Agreement).

     10.5. Indemnification by Borrower.

          In consideration of the execution and delivery of this Agreement by Agent and Lenders and the
agreement to extend the Revolving Loan Commitments provided hereunder, Borrower hereby agrees to
indemnify, exonerate and hold Agent, each Lender and each of the officers, directors, employees,
Affiliates and agents of Agent and each Lender (each a “Lender Party”) free and harmless
from and against any and all actions, causes of action, suits, losses, liabilities, damages and
expenses, including Legal Costs (collectively, the “Indemnified Liabilities”), incurred by
Lender Parties or any of them as a result of, or arising out of, or relating to (a) any tender
offer, merger, purchase of equity interests, purchase of assets (including the Related
Transactions) or other similar transaction financed or proposed to be financed in whole or in part,
directly or indirectly, with the proceeds of any of the Loans, (b) the use, handling, release,
emission, discharge, transportation, storage, treatment or disposal of any Hazardous Substance at
any property owned or leased by Borrower or any Subsidiary, (c) any violation of any Environmental
Laws with respect to conditions at any property owned or leased by Borrower or any Subsidiary or
the operations conducted thereon, (d) the investigation, cleanup or remediation of offsite

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locations at which Borrower or any Subsidiary or their respective predecessors are alleged to
have directly or indirectly disposed of Hazardous Substances or (e) the execution, delivery,
performance or enforcement of this Agreement or any other Loan Document by any Lender Party, except
to the extent any such Indemnified Liabilities result from the applicable Lender Party’s own gross
negligence or willful misconduct as determined by a court of competent jurisdiction. If and to the
extent that the foregoing undertaking may be unenforceable for any reason, Borrower hereby agrees
to make the maximum contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law. All Obligations provided for in this
Section 10.5 shall survive repayment of the Loans, cancellation of the Notes, expiration or
termination of the Letters of Credit, any foreclosure under, or any modification, release or
discharge of, any or all of the Collateral Documents and termination of this Agreement.

     10.6. Marshaling; Payments Set Aside.

          Neither Agent nor any Lender shall be under any obligation to marshal any assets in favor of
Borrower or any other Person or against or in payment of any or all of the Obligations. To the
extent that Borrower makes a payment or payments to Agent or any Lender, or Agent or any Lender
enforces its Liens or exercises its rights of set-off, and such payment or payments or the proceeds
of such enforcement or set-off or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any settlement entered
into by Agent or any Lender in its discretion) to be repaid to a trustee, receiver or any other
party in connection with any bankruptcy, insolvency or similar proceeding, or otherwise, then (a)
to the extent of such recovery, the obligation hereunder or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred and (b) each Lender severally agrees to pay to
Agent upon demand its ratable share of the total amount so recovered from or repaid by Agent to the
extent paid to such Lender.

     10.7. Nonliability of Lenders.

          The relationship between Borrower on the one hand and Lenders and Agent on the other hand
shall be solely that of borrower and lender. Neither Agent nor any Lender shall have any fiduciary
responsibility to Borrower. Neither Agent nor any Lender undertakes any responsibility to Borrower
to review or inform Borrower of any matter in connection with any phase of Borrower’s business or
operations. Execution of this Agreement by Borrower constitutes a full, complete and irrevocable
release of any and all claims which Borrower may have at law or in equity in respect of all prior
discussions and understandings, oral or written, relating to the subject matter of this Agreement
and the other Loan Documents. Neither Agent nor any Lender shall have any liability with respect
to, and Borrower hereby waives, releases and agrees not to sue for, any special, indirect, punitive
or consequential damages or liabilities.

     10.8. Assignments; Participations.

     10.8.1. Assignments.

          (a) Any Lender may at any time assign to one or more Persons (any such Person, an
“Assignee”) all or any portion of such Lender’s Loans and Revolving Loan Commitments, with
the prior written consent of Agent, Issuing Lender and, so long as no Event of Default exists,
Borrower (which consents shall not be unreasonably withheld or delayed and shall not be required
for an assignment by a Lender to a Lender or an Affiliate of a Lender or an Approved Fund). Except
as Agent may otherwise agree, any such assignment (other than any assignment by a Lender to a
Lender or an Affiliate of a Lender or an Approved Fund) shall be in a minimum aggregate amount
equal to $5,000,000 or, if less, the Revolving Loan Commitment or the principal amount of the Loan
being assigned. Borrower and Agent

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shall be entitled to continue to deal solely and directly with such Lender in connection with
the interests so assigned to an Assignee until Agent shall have received and accepted an effective
Assignment Agreement executed, delivered and fully completed by the applicable parties thereto and
a processing fee of $3,500 to be paid by the Lender to whom such interest is assigned; provided,
that no such fee shall be payable in connection with any assignment by a Lender to a Lender or an
Affiliate of a Lender or an Approved Fund. Any attempted assignment not made in accordance with
this Section 10.8.1 shall be treated as the sale of a participation under Section
10.8.2. Borrower shall be deemed to have granted its consent to any assignment requiring its
consent hereunder unless Borrower has expressly objected to such assignment within three Business
Days after notice thereof.

          (b) From and after the date on which the conditions described above have been met, (i) such
Assignee shall be deemed automatically to have become a party hereto and, to the extent that rights
and obligations hereunder have been assigned to such Assignee pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder and (ii) the assigning
Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to
such Assignment Agreement, shall be released from its rights (other than its indemnification
rights) and obligations hereunder. Upon the request of the Assignee (and, as applicable, the
assigning Lender) pursuant to an effective Assignment Agreement, Borrower shall execute and deliver
to Agent for delivery to the Assignee (and, as applicable, the assigning Lender) a Note in the
principal amount of the Assignee’s Pro Rata Share of the Revolving Loan Commitments (and, as
applicable, a Note in the principal amount of the Pro Rata Share of the Revolving Loan Commitments
retained by the assigning Lender). Each such Note shall be dated the effective date of such
assignment. Upon receipt by the assigning Lender of such Note, the assigning Lender shall return
to Borrower any prior Note held by it.

          (c) Agent, acting solely for this purpose as an agent of Borrower, shall maintain at one of
its offices in the United States a copy of each Assignment Agreement delivered to it and a register
for the recordation of the names and addresses of each Lender, and the Revolving Loan Commitments
of, and principal amount of the Loans owing to, such Lender pursuant to the terms hereof. The
entries in such register shall be conclusive, and Borrower, Agent and Lenders may treat each Person
whose name is recorded therein pursuant to the terms hereof as a Lender hereunder for all purposes
of this Agreement, notwithstanding notice to the contrary. Such register shall be available for
inspection by Borrower and any Lender, at any reasonable time upon reasonable prior notice to
Agent.

          (d) Notwithstanding the foregoing provisions of this Section 10.8.1 or any other
provision of this Agreement, any Lender may at any time assign all or any portion of its Loans and
its Note (i) as collateral security to a Federal Reserve Bank or, as applicable, to such Lender’s
trustee for the benefit of its investors (but no such assignment shall release any Lender from any
of its obligations hereunder) and (ii) to (w) an Affiliate of such Lender which is at least 50%
owned (directly or indirectly) by such Lender or by its direct or indirect parent company, (x) its
direct or indirect parent company, (y) to one or more other Lenders or (z) to a Approved Fund.

     10.8.2. Participations.

          Any Lender may at any time sell to one or more Persons participating interests in its Loans,
Revolving Loan Commitments or other interests hereunder (any such Person, a “Participant”).
In the event of a sale by a Lender of a participating interest to a Participant, (a) such Lender’s
obligations hereunder shall remain unchanged for all purposes, (b) Borrower and Agent shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations hereunder and (c) all amounts payable by Borrower shall be determined as if such Lender
had not sold such participation and shall be paid directly to such Lender. No Participant shall
have any direct or indirect voting rights hereunder except with respect to any event described in
Section 10.1 expressly requiring the unanimous vote of all Lenders or, as applicable, all
affected Lenders. Each Lender agrees to incorporate the

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requirements of the preceding sentence into each participation agreement which such Lender
enters into with any Participant. Borrower agrees that if amounts outstanding under this Agreement
are due and payable (as a result of acceleration or otherwise), each Participant shall be deemed to
have the right of set-off in respect of its participating interest in amounts owing under this
Agreement and with respect to any Letter of Credit to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this Agreement; provided that
such right of set-off shall be subject to the obligation of each Participant to share with Lenders,
and Lenders agree to share with each Participant, as provided in Section 2.12.5. Borrower
also agrees that each Participant shall be entitled to the benefits of Section 3 as if it
were a Lender (provided that no Participant shall receive any greater compensation pursuant to
Section 3 than would have been paid to the participating Lender if no participation had
been sold).

     10.9. Confidentiality.

          Agent and each Lender agree to use commercially reasonable efforts (equivalent to the efforts
Agent or such Lender applies to maintain the confidentiality of its own confidential information)
to maintain as confidential all information provided to them by Borrower and designated as
confidential, except that Agent and each Lender may disclose such information (a) to Persons
employed or engaged by Agent or such Lender or any of their Affiliates (including collateral
managers of Lenders) in evaluating, approving, structuring or administering the Loans and the
Revolving Loan Commitments; (b) to any assignee or participant or potential assignee or participant
that has agreed to comply with the covenant contained in this Section 10.9 (and any such
assignee or participant or potential assignee or participant may disclose such information to
Persons employed or engaged by them as described in clause (a) above); (c) as required or requested
by any federal or state regulatory authority or examiner, or any insurance industry association, or
as reasonably believed by Agent or such Lender to be compelled by any court decree, subpoena or
legal or administrative order or process; (d) as, on the advice of Agent’s or such Lender’s
counsel, is required by law; (e) in connection with the exercise of any right or remedy under the
Loan Documents or in connection with any litigation to which Agent or such Lender is a party; (f)
to any nationally recognized rating agency or investor of a Lender that requires access to
information about a Lender’s investment portfolio in connection with ratings issued or investment
decisions with respect to such Lender; (g) that ceases to be confidential through no fault of Agent
or any Lender; (h) to a Person that is an investor or prospective investor in a Securitization that
agrees that its access to information regarding Borrower and the Loans and Revolving Loan
Commitments is solely for purposes of evaluating an investment in such Securitization and who
agrees to treat such information as confidential; or (i) to a Person that is a trustee, collateral
manager, servicer, noteholder or secured party in a Securitization in connection with the
administration, servicing and reporting on the assets serving as collateral for such
Securitization. For purposes of this Section, “Securitization” means a public or private
offering by a Lender or any of its Affiliates or their respective successors and assigns, of
securities which represent an interest in, or which are collateralized, in whole or in part, by the
Loans or the Revolving Loan Commitments. Notwithstanding the foregoing, Borrower consents to the
publication by Agent or any Lender of a tombstone or similar advertising material relating to the
financing transactions contemplated by this Agreement, and Agent reserves the right to provide to
industry trade organizations information necessary and customary for inclusion in league table
measurements.

     10.10. Captions.

          Captions used in this Agreement are for convenience only and shall not affect the construction
of this Agreement.

     10.11. Nature of Remedies.

          All Obligations of Borrower and rights of Agent and Lenders expressed herein or in any other
Loan Document shall be in addition to and not in limitation of those provided by applicable law.

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No failure to exercise and no delay in exercising, on the part of Agent or any Lender, any
right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or privilege.

     10.12. Counterparts.

          This Agreement may be executed in any number of counterparts and by the different parties
hereto on separate counterparts and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Agreement. Receipt by
telecopy of any executed signature page to this Agreement or any other Loan Document shall
constitute effective delivery of such signature page.

     10.13. Severability.

          The illegality or unenforceability of any provision of this Agreement or any instrument or
agreement required hereunder shall not in any way affect or impair the legality or enforceability
of the remaining provisions of this Agreement or any instrument or agreement required hereunder.

     10.14. Entire Agreement.

          This Agreement, together with the other Loan Documents, embodies the entire agreement and
understanding among the parties hereto and supersedes all prior or contemporaneous agreements and
understandings of such Persons, verbal or written, relating to the subject matter hereof and
thereof (except as relates to the fees described in Section 2.8.3) and any prior
arrangements made with respect to the payment by Borrower of (or any indemnification for) any fees,
costs or expenses payable to or incurred (or to be incurred) by or on behalf of Agent or Lenders.

     10.15. Successors; Assigns.

          This Agreement shall be binding upon Borrower, Lenders and Agent and their respective
successors and assigns, and shall inure to the benefit of Borrower, Lenders and Agent and the
successors and assigns of Lenders and Agent. No other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in connection with, this
Agreement or any of the other Loan Documents. Borrower may not assign or transfer any of its
rights or Obligations under this Agreement without the prior written consent of Agent and each
Lender.

     10.16. Governing Law.

          THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS
OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

     10.17. Forum Selection; Consent to Jurisdiction.

          ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF
ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT
AGENT’S OPTION, IN THE COURTS OF ANY

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JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER HEREBY EXPRESSLY
AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH
LITIGATION AS SET FORTH ABOVE. BORROWER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY
REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS.
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT
IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

     10.18. Waiver of Jury Trial.

          EACH OF BORROWER, AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN
DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE
BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING
IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE
TRIED BEFORE A COURT AND NOT BEFORE A JURY.

[signature pages follow]

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          The parties hereto have caused this Agreement to be duly executed and delivered by their duly
authorized officers as of the date first set forth above.

	 	 	 	 	 
	 	 	COMPASS DIVERSIFIED HOLDINGS LLC
	 
	 	 	 	 
	 

	 	By:
	 	/I. Joseph Massoud/
	 

	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 
	 	 	MADISON CAPITAL FUNDING LLC,
	 	 	as Agent and a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/Craig Lacy/
	 

	 	Title:
	 	Managing Director
	 
	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION,
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/Karen D. Myers/
	 

	 	Title:
	 	Senior Vice President
	 
	 	 	 	 
	 	 	THE CIT GROUP/BUSINESS CREDIT, INC.,
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/Susan Williams/
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 	 	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA,
	 	 	as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/Yvonne Guajardo/
	 

	 	Title:
	 	Vice President

 

 

ANNEX I

Revolving Loan Commitments and Pro Rata Shares

	 	 	 	 	 	 	 	 	 
	 	 	Revolving Commitment	 	 	 	 
	Lender	 	Amount	 	 	Pro Rata Share	 
	Madison Capital Funding LLC
	 	$	165,000,000	 	 	 	66	%
	U.S. Bank National
Association
	 	$	25,000,000	 	 	 	10	%
	The CIT Group/Business
Credit, Inc.
	 	$	25,000,000	 	 	 	10	%
	The Prudential Insurance
Company of America
	 	$	35,000,000	 	 	 	14	%
	 
	 	 	 	 	 	 
	TOTALS
	 	$	250,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 

I-1

 

 

Annex II

Addresses

	 	 	 
	Compass Diversified Holdings LLC
	61 Wilton Road
	2nd Floor
	Westport, Connecticut 06880
	Attention:

	 	Chief Financial Officer 
	Telephone:

	 	(203) 221-1703 
	Telecopy:

	 	(203) 221-8253 
	 
	 	 
	Madison Capital Funding LLC,
	as Agent and a Lender
	 
	 	 
	Address for Notices:
	 
	 	 
	30 South Wacker Drive
	Suite 3700
	Chicago, Illinois 60606
	Attention:

	 	Account Manager for Compass Group 
	Telephone:

	 	(312) 596-6900 
	Telecopy:

	 	(312) 596-6950 
	 
	 	 
	Address for Payments:
	 
	 	 
	Bank:

	 	LaSalle Bank National Association 
	ABA #:

	 	071000505 
	Account #:

	 	5800299108 
	Reference:

	 	Madison Capital Funding LLC 
	Address:

	 	Chicago, Illinois 60603 

II-1

 

	 	 	 
	U.S. Bank National Association,
	as a Lender
	 
	 	 
	Address for Notices:
	 
	 	 
	1420 Fifth Avenue
	7th Floor
	Seattle, Washington 98101
	Attention:

	 	Jason C. Nadler 
	Telephone:

	 	(206) 587-5266 
	Telecopy:

	 	(206) 344-3646 
	 
	 	 
	Address for Payments:
	 
	 	 
	Bank:

	 	U.S. Bank National Association 
	ABA #:

	 	081000210 
	Account #:

	 	00018641540800 
	Reference:

	 	CODI 
	 
	 	 
	The CIT Group/Business Credit, Inc.,
	as a Lender
	 
	 	 
	Address for Notices:
	 
	 	 
	900 Ashwood Parkway
	Suite 610
	Atlanta, Georgia 30338
	Attention:

	 	Ken Butler 
	Telephone:

	 	(770) 522-7685 
	Telecopy:

	 	(770) 522-7673 
	 
	 	 
	Address for Payments:
	 
	 	 
	Bank:

	 	JPMorgan Chase Bank 
	ABA #:

	 	021000021 
	Account #:

	 	144064425 
	Reference:

	 	Compass Diversified Holdings LLC 
	Address:

	 	New York, New York 

II-2

 

	 	 	 
	The Prudential Insurance Company of America,
	as a Lender
	 	 
	 
	 	 
	Address for Notices:
	 
	 	 
	1114 Avenue of the Americas
	30th Floor
	New York, New York 10036
	Attention:

	 	Yvonne Guajardo 
	Telephone:

	 	(212) 626-2050 
	Telecopy:

	 	(212) 626-2077 
	 
	 	 
	Address for Payments:
	 
	 	 
	Bank:

	 	JPMorgan Chase Bank 
	ABA #:

	 	021000021 
	Account #:

	 	P86188 
	Reference:

	 	Prudential Managed 
	Address:

	 	New York, New York 

II-3

 

Annex III

Conditions Precedent to Permitted Eligible Acquisitions

     (1) Agent and Lenders shall receive not less than fifteen Business Days’ prior written notice
of such Acquisition, which notice shall include a reasonably detailed description of the proposed
terms of such Acquisition, and shall receive not less than 5 Business Days’ prior to the
consummation of such Acquisition substantially final versions of the primary acquisition documents
(including the purchase agreement and any Intercompany Debt Documents) to be executed in connection
with such Acquisition;

     (2) such Acquisition shall not be hostile and shall have been approved by the board of
directors (or other similar body) and/or the stockholders or other equityholders of the Target;

     (3) no Default or Event of Default is in existence or would occur after giving effect to such
Acquisition;

     (4) (i) Agent shall have received an updated Availability Certificate prepared on a pro forma
basis after giving effect to the consummation of the Acquisition and the incurrence of any Loans,
other Debt or Contingent Obligations in connection therewith, and (ii) Borrowing Availability
immediately after consummation of the Acquisition and the incurrence of any Loans, other Debt or
Contingent Obligations in connection therewith, shall be an amount equal to or greater than the
product of (x) Consolidated EBITDA for the twelve month period ending on the last day of the most
recently ended month for which financial statements have been delivered to Agent in accordance with
the provisions of this Agreement (calculated on a pro forma basis after giving effect to the Pro
Forma EBITDA of the Target) times (y) 0.25;

     (5) after giving effect to such Acquisition and the incurrence of any Loans, other Debt or
Contingent Obligations in connection therewith, Borrower shall be in compliance on a pro forma
basis with the covenants set forth in Section 7.14 recomputed for the most recently ended
month of Borrower for which information is available regarding the business being acquired;

     (6) such Acquisition shall only involve a Target organized within the United States or Canada
(excluding the province of Quebec) and/or business and assets located in the United States or
Canada (excluding the province of Quebec); provided, that (i) with respect to any such
Target, business or assets located in Canada (excluding the province of Quebec), Agent shall be
reasonably satisfied that the Liens granted by such Target, or in such business or assets, as
applicable, in satisfaction of the requirements of clause (14) below, are valid and enforceable in
all respects and (ii) the provisions of this paragraph shall not apply to add-on Acquisitions of
Targets and/or businesses and assets outside of the United States or Canada (excluding the province
of Quebec) so long as Agent has received financial data that is reasonably acceptable to Agent
which demonstrates that, after giving effect to any such add-on Acquisition, no more than 10% of
the aggregate amount of Existing Portfolio Company EBITDA or New Portfolio Company EBITDA (as
applicable) of such Portfolio Company is attributable to Subsidiaries, businesses and assets
outside of the United States and Canada (excluding the province of Quebec);

     (7) the business of the Target would not subject Agent or any Lender to regulatory or third
party approvals in connection with the exercise of its rights and remedies under this Agreement or
any other Loan Documents other than approvals applicable to the exercise of such rights and
remedies with respect to Borrower prior to such Acquisition;

     (8) Agent and Lenders shall have received (w) a general description of (i) the Target’s
business, (ii) the Target’s competitive position within the Target’s industry, (iii) material

III-1

 

agreements binding upon the Target or any of its personal or real property and, if requested
by Agent, copies of such material agreements and (iv) pending material litigation involving the
Target; (x) background checks with respect to the management of the Target, (y) environmental
reports and related information regarding any property owned, leased or otherwise used by the
Target; and (z) any other material due diligence information or investigation with respect to the
Target that is reasonably required by Agent, which, in the case of the foregoing clauses (x) and
(y), shall be prepared by Acceptable Professionals and in form and substance reasonably satisfying
Agent that no Material Adverse Effect would be caused by, or would exist after giving effect to,
the proposed Acquisition;

     (9) with respect to any Acquisition that is an add-on acquisition by a Portfolio Company, the
Target in such Acquisition shall comprise a business of the type engaged in by such acquiring
Portfolio Company;

     (10) Agent and Lenders shall have received a financial due diligence report with respect to
the Target from an Approved Professional, inclusive of a quality of earnings assessment and a
calculation of the Pro Forma EBITDA for the Target;

     (11) the Target must have had a positive Pro Forma EBITDA on a cumulative basis for the
immediately preceding four fiscal quarters;

     (12) Agent and Lenders shall receive evidence that the Target has in place, with financially
sound and reputable insurers, public liability, property damage and business interruption insurance
with respect to its business and properties against loss or damage of the kinds customarily carried
or maintained by Persons of established reputation engaged in similar businesses and in commercial
reasonable amounts;

     (13) the acquisition documents governing such Acquisition shall permit the collateral
assignment by Borrower of its rights under such acquisition documents to Agent as security for the
Obligations and for Agent’s reliance on any legal opinions rendered in connection with such
Acquisition, and Borrower shall have executed and delivered to Agent a collateral assignment of its
rights under such acquisition documents to Agent that is reasonably satisfactory to Agent in form
and content;

     (14) there shall be no Debt incurred or assumed in connection with such Acquisition other than
Revolving Loans funded to Borrower under this Agreement, Qualified Intercompany Debt incurred by
the applicable Target and Indebtedness permitted under Section 7.1(b);

     (15) to the extent that any investments of Qualified Intercompany Debt are made in the Target
in connection with such Acquisition, (i) such Debt shall be evidenced by Qualified Intercompany
Debt Documents pursuant to which, among other things, a perfected, first-priority Lien has been
granted to Borrower in substantially all of the assets of and equity interests in such Target
(regardless of where such Target is organized) in accordance with the definition of the term
Qualified Intercompany Debt Documents; and (ii) Agent shall have received projections and other
financial data reasonably acceptable to Agent which demonstrates that, after giving effect to such
Debt investments, (x) such Target is Solvent and (y) the Portfolio Company Leverage Ratio for such
Target would not be greater than 5.00;

     (16) all material consents necessary for such Acquisition (including such consents as the
Agent deems reasonably necessary) have been acquired and such Acquisition is consummated in
accordance with the applicable acquisition documents and applicable law; and

     (17) promptly after obtaining knowledge thereof, Borrower shall provide notice of any material
change to any of the documents or information previously provided pursuant to clauses (1)
through (16) above.

III-2

 

Annex IV

Conditions Precedent to Permitted Ineligible Acquisitions

     (1) Agent and Lenders shall receive not less than fifteen Business Days’ prior written notice
of such Acquisition, which notice shall include a reasonably detailed description of the proposed
terms of such Acquisition, and shall receive not less than 5 Business Days’ prior to the
consummation of such Acquisition substantially final versions of the primary acquisition documents
(including the purchase agreement and any Intercompany Debt Documents) to be executed in connection
with such Acquisition;

     (2) such Acquisition shall not be hostile and shall have been approved by the board of
directors (or other similar body) and/or the stockholders or other equityholders of the Target;

     (3) no Default or Event of Default is in existence or would occur after giving effect to such
Acquisition;

     (4) (i) Agent shall have received an updated Availability Certificate prepared on a pro forma
basis after giving effect to the consummation of the Acquisition and the incurrence of any Loans,
other Debt or Contingent Obligations in connection therewith, and (ii) Borrowing Availability
immediately after consummation of the Acquisition and the incurrence of any Loans, other Debt or
Contingent Obligations in connection therewith, shall be an amount equal to or greater than the
product of (x) Consolidated EBITDA for the twelve month period ending on the last day of the most
recently ended month for which financial statements have been delivered to Agent in accordance with
the provisions of this Agreement (calculated on a pro forma basis after giving effect to the Pro
Forma EBITDA of the Target) times (y) 0.25;

     (5) after giving effect to such Acquisition and the incurrence of any Loans, other Debt or
Contingent Obligations in connection therewith, Borrower shall be in compliance on a pro forma
basis with the covenants set forth in Section 7.14 recomputed for the most recently ended
month of Borrower for which information is available regarding the business being acquired;

     (6) the business of the Target would not subject Agent or any Lender to regulatory or third
party approvals in connection with the exercise of its rights and remedies under this Agreement or
any other Loan Documents other than approvals applicable to the exercise of such rights and
remedies with respect to Borrower prior to such Acquisition;

     (7) Agent and Lenders shall have received (w) a general description of (i) the Target’s
business, (ii) the Target’s competitive position within the Target’s industry, (iii) material
agreements binding upon the Target or any of its personal or real property and, if requested by
Agent, copies of such material agreements and (iv) pending material litigation involving the
Target; (x) background checks with respect to the management of the Target, (y) environmental
reports and related information regarding any property owned, leased or otherwise used by the
Target; and (z) any other material due diligence information or investigation with respect to the
Target that is reasonably required by Agent, which, in the case of the foregoing clauses (x) and
(y), shall be prepared by Acceptable Professionals;

     (8) Agent and Lenders shall have received a financial due diligence report with respect to the
Target from an Approved Professional, inclusive of a quality of earnings assessment and a
calculation of the Pro Forma EBITDA for the Target;

III-1

 

     (9) the acquisition documents governing such Acquisition, and the loan documents governing any
Debt investments made by Borrower in the applicable Target, shall permit the collateral assignment
by Borrower of its rights under such acquisition documents to Agent as security for the
Obligations, and for Agent’s reliance on any legal opinions rendered in connection with such
Acquisition, and Borrower shall have executed and delivered to Agent a collateral assignment of its
rights under such documents to Agent that is reasonably satisfactory to Agent in form and content;

     (10) all material consents necessary for such Acquisition (including such consents as the
Agent deems reasonably necessary) have been acquired and such Acquisition is consummated in
accordance with the applicable acquisition documents and applicable law; and

     (11) promptly after obtaining knowledge thereof, Borrower shall provide notice of any material
change to any of the documents or information previously provided pursuant to clauses (1)
through (10) above.

III-2

 

Exhibit A

Form of Assignment Agreement

     This Assignment Agreement (this “Assignment Agreement”) is entered into as of
                     by and between the Assignor named on the signature page hereto (“Assignor”) and
the Assignee named on the signature page hereto (“Assignee”). Reference is made to the
Credit Agreement dated as of November 21, 2006 (as amended or otherwise modified from time to time,
the “Credit Agreement”) among Compass Diversified Holdings LLC, a Delaware limited
liability company (“Borrower”), the financial institutions party thereto from time to time,
as Lenders, and Madison Capital Funding LLC, as Agent. Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to them in the Credit Agreement.

Assignor and Assignee agree as follows:

1. Assignor hereby sells and assigns to Assignee, and Assignee hereby purchases and assumes from
Assignor the interests set forth on the schedule attached hereto, in and to Assignor’s rights and
obligations under the Credit Agreement and the other Loan Documents as of the Effective Date (as
defined below). Such purchase and sale is made without recourse, representation or warranty except
as expressly set forth herein.

2. Assignor (i) represents that as of the Effective Date, that it is the legal and beneficial owner
of the interests assigned hereunder free and clear of any adverse claim, (ii) makes no other
representation or warranty and assumes no responsibility with respect to any statement, warranties
or representations made in or in connection with the Credit Agreement or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit Agreement, any Loan
Documents or any other instrument or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
Borrower or any other Person or the performance or observance by Borrower or any other Person of
its Obligations under the Credit Agreement or the Loan Documents or any other instrument or
document furnished pursuant thereto.

3. Assignee (i) represents and warrants that it is legally authorized to enter into this Assignment
Agreement; (ii) confirms that it has received a copy of the Credit Agreement, together with copies
of the most recent financial statements delivered pursuant thereto and such other documents and
information as it has deemed appropriate to make its own credit analysis and decision to enter into
this Assignment Agreement; (iii) agrees that it will, independently and without reliance upon
Agent, Assignor or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement; (iv) appoints and authorizes Agent to take such action as agent on its
behalf and to exercise such powers under the Credit Agreement as are delegated to Agent by the
terms thereof, together with such powers as are reasonably incidental thereto; (v) agrees that it
will perform in accordance with their terms all obligations which by the terms of the Credit
Agreement are required to be performed by it as a Lender; (vi) represents that on the date of this
Assignment Agreement it is not presently aware of any facts that would cause it to make a claim
under the Credit Agreement; and (vii) if organized under the laws of a jurisdiction outside the
United States, attaches the forms prescribed by the Internal Revenue Service of the United States,
which have been duly executed, certifying as to Assignee’s exemption from United States withholding
taxes with respect to all payments to be made to Assignee under the Agreement or such other
documents as are necessary to indicate that all such payments are subject to such tax at a rate
reduced by an applicable tax treaty.

A-1

 

4. The effective date for this Assignment Agreement shall be as set forth on the schedule attached
hereto (the “Effective Date”). Following the execution of this Assignment Agreement, it
will be delivered to Agent for acceptance and recording by Agent pursuant to the Credit Agreement.

5. Upon such acceptance and recording, from and after the Effective Date, (i) Assignee shall be a
party to the Credit Agreement and, to the extent provided in this Assignment Agreement, have the
rights and obligations of a Lender thereunder and (ii) Assignor shall, to the extent provided in
this Assignment Agreement, relinquish its rights (other than indemnification rights) and be
released from its obligations under the Credit Agreement.

6. Upon such acceptance and recording, from and after the Effective Date, Agent shall make all
payments in respect of the interest assigned hereby (including payments of principal, interest,
fees and other amounts) to Assignee. Assignor and Assignee shall make all appropriate adjustments
in payments for periods prior to the Effective Date with respect to the making of this assignment
directly between themselves.

7. THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

8. This Assignment may be executed in any number of counterparts and by the different parties
hereto on separate counterparts and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same Assignment. Receipt by
telecopy of any executed signature page to this Assignment shall constitute effective delivery of
such signature page.

A-2

 

     The parties hereto have caused this Agreement to be executed and delivered as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	[Consented to:	 	 
	 
	 	 	 	 	 	 
	 	 	[Madison Capital Funding LLC,

as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	]
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	[[Compass Group Diversified Holdings LLC]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	]
	 

	 	 	 	 

	 	 

A-3

 

Schedule to Assignment Agreement

	 	 	 
	Assignor:

	 	                    
	Assignee:

	 	                    
	Effective Date:

	 	                    

Credit Agreement dated as of November 21, 2006 among Compass Group
Diversified Holdings LLC, as Borrower, the financial institutions party
thereto from time to time, as Lenders, and Madison Capital Funding LLC, as
Agent

Interests Assigned:

	 	 	 	 	 
	 	 	Revolving Loan	 
	Commitment/Loan	 	Commitment	 
	Assignor Amounts
	 	$	 	 
	Amounts Assigned
	 	$	 	 
	Assignee Amounts
(post-assignment)
	 	$	 	 

Assignee Information:

	 	 	 	 	 	 	 	 	 	 	 
	Address for Notices:	 	 	 	Address for Payments:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Bank:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Attention:

	 	 	 	 	 	ABA #:	 	 	 	 
	Telephone:

	 	 

	 	 	 	Account #:
	 	 

	 	 
	Telecopy:

	 	 

	 	 	 	Reference:
	 	 

	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

A-4

 

Exhibit B

Form of Compliance Certificate

     Please refer to the Credit Agreement dated as of November 21, 2006 (as amended or otherwise
modified from time to time, the “Credit Agreement”) among the undersigned
(“Borrower”), the financial institutions party thereto and Madison Capital Funding LLC, as
Agent. This certificate (this “Certificate”), together with supporting calculations
attached hereto, is delivered to Agent and Lenders pursuant to the terms of the Credit Agreement.
Terms used but not otherwise defined herein are used herein as defined in the Credit Agreement.

     [Enclosed herewith is a copy of the [annual audited/quarterly/monthly] report of Borrower as
at                      (the “Computation Date”), which report fairly presents in all material
respects the financial condition and results of operations [(subject to the absence of footnotes
and to normal year-end adjustments)] of Borrower as of the Computation Date and has been prepared
in accordance with GAAP consistently applied.]

     Borrower hereby certifies and warrants that the computations set forth on the schedule
attached hereto correspond to the ratios and/or financial restrictions contained in the Credit
Agreement and such computations are true and correct as at the [Computation Date] [date hereof,
after giving pro forma effect to the Acquisition (and related Loans) pursuant to which this
certificate is delivered].

     Borrower further certifies that no Event of Default or Default has occurred and is continuing.

     Borrower has caused this Certificate to be executed and delivered by its officer thereunto
duly authorized on                     .

	 	 	 	 	 	 	 
	 	 	COMPASS GROUP DIVERSIFIED HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

B-1

 

Schedule to Compliance Certificate

Dated as of ___

	 	 	 	 	 	 	 	 	 
	A.	 	Section 7.14.1 - Minimum Fixed Charge Coverage Ratio	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Consolidated EBITDA (per calculation

below)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Income taxes and tax distributions
paid
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Capital Expenditures
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Management Fees paid in cash
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	Borrower Expenses
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	6.	 	 	Sum of (2), (3), (4) and (5)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	7.	 	 	Remainder of (1) minus (6)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	8.	 	 	Interest Expense accrued for such
period and paid or payable in cash
(excluding interest on Qualified
Intercompany Debt and interest paid in
kind)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	9.	 	 	Required payments of principal of
Debt (excluding Revolving Loans and
excluding required payments of principal
in respect of Qualified Intercompany
Debt))
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	11.	 	 	Sum of (8) and (9)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	12.	 	 	Ratio of (7) to (10)
	 	___to 1 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	13.	 	 	Minimum Required
	 	1.50 to 1 
	 
	 	 	 	 	 	 	 	 
	B.	 	Section 7.14.2 – Minimum Interest Coverage Ratio	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Consolidated EBITDA (per calculation

below)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Management Fees paid in cash
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Borrower Expenses
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Sum of (2) and (3)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	Remainder of (1) minus (4)
	 	$                    

B-2

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	6.	 	 	Interest Expense accrued for such
period and paid or payable in cash
(excluding interest on Qualified
Intercompany Debt and interest paid in
kind)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	7.	 	 	Ratio of (5) to (6)
	 	___to 1 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	8.	 	 	Minimum required
	 	3.00 to 1 
	 
	 	 	 	 	 	 	 	 
	C.	 	Section 7.14.4 - Maximum Total Debt to Consolidated EBITDA Ratio	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Total Debt (excluding principal
balance of Qualified Intercompany Debt)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Consolidated EBITDA (per calculation

below)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Ratio of (1) to (2)
	 	___to 1 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Maximum allowed
	 	3.00 to 1 

B-3

 

Existing Portfolio Company EBITDA for each Existing Portfolio Company

	 	 	 	 	 	 	 
	1.	 	Consolidated Net Income for such Existing
Portfolio Company	 	$                    
	 
	 	 	 	 	 	 
	2.

	 	Plus:
	 	Interest Expense
	 	$                    
	 

	 	 	 	income tax expense
	 	$                    
	 

	 	 	 	depreciation
	 	$                    
	 

	 	 	 	amortization
	 	$                    
	 

	 	 	 	Management Fees satisfied
by or otherwise allocable to such Existing
Portfolio Company
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	 	 	Non-cash charges reflecting
in-process
research and development
	 	$                    
	 

	 	 	 	Expense due to forgiveness
of non-cash loans to
management
	 	$                    
	 

	 	 	 	Other non-cash expenses (or
less gains or income)
for which no cash outlay
(or receipt) is
foreseeable
	 	$                    
	 
	 	 	 	 	 	 
	For periods prior to the acquisition of such
Portfolio Company:	 	 
	 
	 	 	 	 	 	 
	Pro Forma EBITDA for such Portfolio Company	 	$                    

New Portfolio Company EBITDA for each New Portfolio Company

	 	 	 	 	 	 	 
	For periods after the acquisition of such New
Portfolio Company:	 	 
	 
	 	 	 	 	 	 
	1.	 	Consolidated Net Income for such New Portfolio Company	 	$                    
	 
	 	 	 	 	 	 
	2.

	 	Plus:
	 	Interest Expense
	 	$                    
	 

	 	 	 	income tax expense
	 	$                    
	 

	 	 	 	depreciation
	 	$                    
	 

	 	 	 	amortization
	 	$                    
	 

	 	 	 	Management Fees satisfied
by or otherwise allocable to such New
Portfolio Company
	 	$                    
	 	 	 	 	Non-cash charges reflecting in-process
research and development	 	$                    
	 

	 	 	 	Expense due to forgiveness of non-cash loans to
management
	 	$                    
	 	 		 	 

B-4

 

	 	 	 	 	 	 	 
	 

	 	 	 	Other non-cash expenses (or
less gains or income)
for which no cash outlay
(or receipt) is
foreseeable
	 	$                    
	 
	 	 	 	 	 	 
	For periods prior to the acquisition of such
Portfolio Company:	 	 
	 
	 	 	 	 	 	 
	Pro Forma EBITDA for such Portfolio Company	 	$                    

B-5

 

Calculation of Consolidated EBITDA

	 	 	 	 	 
	1.

	 	The combined total of the Existing Portfolio
Company EBITDA for each Existing Portfolio Company
	 	$                    
	 
	 	 	 	 
	2.

	 	The combined total of the New Portfolio Company
EBITDA for each New Portfolio Company
	 	$                    
	 
	 	 	 	 
	3.

	 	Sum of (1) and (2)
	 	$                    
	 
	 	 	 	 
	4.

	 	Minority Income
	 	$                    
	 
	 	 	 	 
	5.

	 	Consolidated EBITDA (remainder of (3) minus (4))
	 	$                    

B-6

 

Exhibit C

Form of Availability Certificate

     Please refer to the Credit Agreement dated as of November 21, 2006 (as amended or otherwise
modified from time to time, the “Credit Agreement”) among the undersigned
(“Borrower”), the financial institutions party thereto from time to time, as Lenders, and
Madison Capital Funding LLC, as Agent. This certificate (this “Certificate”), together
with supporting calculations attached hereto, is delivered to Agent and Lenders pursuant to the
terms of the Credit Agreement. Capitalized terms used but not otherwise defined herein shall have
the same meanings herein as in the Credit Agreement.

     Borrower hereby certifies and warrants that at the close of business on                     
(the “Calculation Date”), Borrowing Availability was $                    , computed as set forth
on the schedule attached hereto.

     Borrower has caused this Certificate to be executed and delivered by its officer thereunto
duly authorized on                     .

	 	 	 	 	 	 	 
	 	 	COMPASS GROUP DIVERSIFIED HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

C-1

 

Schedule to Availability Certificate

Dated as of ___

Availability for each Existing Portfolio Company

	 	 	 	 	 
	1.

	 	Existing Portfolio Company EBITDA
	 	$                    
	 
	 	 	 	 
	2.

	 	Item 1 multiplied by 3.00
	 	$                    
	 
	 	 	 	 
	3.

	 	Principal balance of Qualified Intercompany Debt
	 	$                    
	 
	 	 	 	 
	4.

	 	Ratio of principal balance of Qualified Intercompany Debt
over Existing Portfolio Company EBITDA
	 	                    
	 
	 	 	 	 
	5.

	 	3.0 minus Item 4
	 	                    
	 
	 	 	 	 
	6.

	 	Compass-Owned EBITDA with respect to such Existing Portfolio
Company
	 	$                    
	 
	 	 	 	 
	7.

	 	Product of Item 5 and Item 6
	 	$                    
	 
	 	 	 	 
	8.

	 	Sum of Item 3 plus Item 7
	 	$                    
	 
	 	 	 	 
	9.

	 	Least of (a) Item 2, (b) Item 8 and (c) 0, if such Existing
Portfolio Company is a Disqualified Portfolio Company
	 	$                    
	 
	 	 	 	 
	10.

	 	Availability for such Existing Portfolio Company
	 	$                    
	 
	 	 	 	 
	Availability for each New Portfolio Company

	 
	 	 	 	 
	1.

	 	New Portfolio Company EBITDA
	 	$                    
	 
	 	 	 	 
	2.

	 	Item 1 multiplied by 1.50
	 	$                    
	 
	 	 	 	 
	3.

	 	Principal balance of Qualified Intercompany Debt
	 	$                    
	 
	 	 	 	 
	4.

	 	Ratio of principal balance of Qualified Intercompany Debt over
New Portfolio Company EBITDA
	 	$                    
	 
	 	 	 	 
	5.

	 	1.5 minus Item 4
	 	$                    
	 
	 	 	 	 
	6.

	 	Compass – Owned EBITDA with respect to such New Portfolio
Company
	 	$                    
	 
	 	 	 	 
	7.

	 	Product of Item 5 and 6
	 	$                    
	 
	 	 	 	 
	8.

	 	Sum of Item 3 plus Item 7
	 	$                    
	 
	 	 	 	 
	9.

	 	Least of (a) Item 2, (b) Item 8 and (c) 0, if such New
Portfolio Company is a Disqualified Portfolio Company
	 	$                    
	 
	 	 	 	 
	10.

	 	Availability for such New Portfolio Company
	 	$                    

C-2

 

	 	 	 	 	 
	Borrowing Availability

	 
	 	 	 	 
	1.

	 	Combined total of the Availability for each Existing Portfolio
Company
	 	$                    
	 
	 	 	 	 
	2.

	 	Combined total of the Availability for each New Portfolio Company
	 	$                    
	 
	 	 	 	 
	3.

	 	Item 1 plus Item 2
	 	$                    
	 
	 	 	 	 
	4.

	 	Aggregate principal balance of Qualified Intercompany Debt
	 	$                    
	 
	 	 	 	 
	5.

	 	Lesser of Item 3 and Item 4
	 	$                    
	 
	 	 	 	 
	6.

	 	Excluded amounts where the aggregate amount of the Combined Eligible
Availability attributable to any one Portfolio Company, or any group of
Portfolio Companies operating in the same business industry, exceeds
35% (such percentage to be forty percent (40%) in the case of CBS and
Advanced Circuits), to the extent of any such excess amounts
	 	$                    
	 
	 	 	 	 
	7.

	 	Combined Eligible Availability [Item 5 minus Item 6]
	 	$                    
	 
	 	 	 	 
	8.

	 	Total Debt
	 	$                    
	 
	 	 	 	 
	9.

	 	Combined Eligible Availability minus Total Debt [Item 7 minus Item 8]
	 	$                    
	 
	 	 	 	 
	10.

	 	Borrowing Availability [Lesser of Item 9 and Revolving Loan
Commitments]
	 	$                    
	 
	 	 	 	 
	11.

	 	Revolving Outstandings
	 	$                    
	 
	 	 	 	 
	12.

	 	Net Availability [Excess of Item 10 over Item 11]
	 	$                    
	 
	 	 	 	 
	13.

	 	Required Prepayment [Excess of Item 11 over Item 10]
	 	$                    

C-3

 

Exhibit D

Form of Note

			
	 	 	 
	 
	 	                    
	$                    
	 	Chicago, Illinois

     The undersigned (“Borrower”), for value received, promises to pay to the order of
                     (“Lender”) at the principal office of Madison Capital Funding LLC (the
“Agent”) in Chicago, Illinois the aggregate unpaid amount of all Loans made to Borrower by
Lender pursuant to the Credit Agreement referred to below, such principal amount to be payable on
the dates set forth in the Credit Agreement.

     Borrower further promises to pay interest on the unpaid principal amount of each Loan from the
date of such Loan until such Loan is paid in full, payable at the rate(s) and at the time(s) set
forth in the Credit Agreement. Payments of both principal and interest are to be made in lawful
money of the United States of America.

     This Note evidences indebtedness incurred under, and is subject to the terms and provisions
of, the Credit Agreement, dated as of November 21, 2006 (as amended or otherwise modified from time
to time, the “Credit Agreement”; terms not otherwise defined herein are used herein as
defined in the Credit Agreement), among Borrower, the financial institutions (including Lender)
party thereto from time to time and Agent, to which Credit Agreement reference is hereby made for a
statement of the terms and provisions under which this Note may or must be paid prior to its due
date or its due date accelerated.

     This Note is made under and governed by the laws of the State of Illinois applicable to
contracts made and to be performed entirely within such State.

	 	 	 	 	 	 	 
	 	 	COMPASS GROUP DIVERSIFIED HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

D-1

 

 

Exhibit E

Form of Notice of Borrowing

     Please refer to the Credit Agreement dated as of November 21, 2006 (as amended or otherwise
modified from time to time, the “Credit Agreement”) among the undersigned
(“Borrower”), the financial institutions party thereto from time to time, as Lenders, and
Madison Capital Funding LLC, as Agent. Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed thereto in the Credit Agreement. This notice is given pursuant to
Section 2.2.2 of the Credit Agreement. Borrower hereby requests a borrowing under the
Credit Agreement as follows:

     The aggregate amount of the proposed borrowing is $                    . The requested borrowing
date for the proposed borrowing (which is a Business Day) is                     , ___. The Revolving
Loans comprising the proposed Borrowing are [Base Rate] [LIBOR] Loans. The duration of the
Interest Period for each LIBOR Loan made as part of the proposed Borrowing, if applicable, is
                     months (which shall be 1, 2, 3 or 6 [or, with each Lender’s consent, 9 or 12 months)].

     Borrower has caused this Notice to be executed and delivered by its officer thereunto duly
authorized on                     .

	 	 	 	 	 	 	 
	 	 	COMPASS GROUP DIVERSIFIED HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

E-1

 

 

Exhibit F

Form of Notice of Conversion/Continuation

     Please refer to the Credit Agreement, dated as of November 21, 2006 as amended or otherwise
modified from time to time, the “Credit Agreement”), among the undersigned
(“Borrower”), the financial institutions party thereto from time to time, as Lenders, and
Madison Capital Funding LLC, as Agent. This notice is given pursuant to Section 2.2.3 of
the Credit Agreement. Capitalized terms used herein but not otherwise defined shall have the
meanings ascribed thereto in the Credit Agreement. Borrower hereby requests a
[conversion][continuation] of Loans as follows:

     The date of the proposed [conversion] [continuation] is                     , ___(which shall be a
Business Day). The aggregate amount of the Loans proposed to be [converted] [continued] is
$                    . [Specify which part is to be converted and which part is to be continued, if
appropriate.] The Loans to be [continued] [converted] are [Base Rate Loans] [LIBOR Loans] and the
Loans resulting from the proposed [conversion] [continuation] will be [Base Rate Loans] [LIBOR
Loans]. The duration of the requested Interest Period for each LIBOR Loan made as part of the
proposed [conversion] [continuation] is                      months (which shall be 1, 2, 3 or 6 [or, with
each Lender’s consent, 9 or 12 months)].

     Borrower has caused this Notice to be executed and delivered by its officer thereunto duly
authorized on                     .

	 	 	 	 	 	 	 
	 	 	COMPASS GROUP DIVERSIFIED HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

G-1exv10w1

 

Exhibit 10.1

ESB FINANCIAL CORPORATION

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), is made and entered into as
of the 21st day of November 2006, between ESB Financial Corporation (the “Corporation”), a
Pennsylvania corporation, and Charlotte A. Zuschlag (the “Executive”).

WITNESSETH:

     WHEREAS, the Executive is currently employed as President and Chief Executive Officer of the
Corporation pursuant to an amended employment agreement between the Corporation and the Executive
entered into as of December 1, 2002 and which is being further amended and restated as of the date
hereof (the “Corporation Employment Agreement”);

     WHEREAS, the Executive is currently employed as President and Chief Executive Officer of ESB
Bank, a Pennsylvania chartered savings bank and a wholly owned subsidiary of the Corporation (the
“Bank”) (the Corporation and the Bank are referred to together herein as the “Employers”) pursuant
to an amended employment agreement entered into as of December 1, 2002, and which is being further
amended and restated as of the date hereof;

     WHEREAS, the Corporation desires to amend and restate the Corporation Employment Agreement in
order to make changes to comply with Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), as well as certain other changes;

     WHEREAS, the Corporation desires to assure itself of the continued availability of the
Executive’s services as provided in this Agreement; and

     WHEREAS, the Executive is willing to serve the Corporation on the terms and conditions
hereinafter set forth;

     NOW THEREFORE, in consideration of the mutual agreements herein contained, and upon the other
terms and conditions hereinafter provided, the Corporation and the Executive hereby agree as
follows:

     1. Definitions. The following words and terms shall have the meanings set forth below for the
purposes of this Agreement:

     (a) Average Annual Compensation. The Executive’s “Average Annual Compensation” for purposes
of this Agreement shall be deemed to mean the average level of compensation paid to the Executive
by the Employers or any subsidiary thereof during the most recent five taxable years preceding the
Date of Termination and included in the Executive’s gross

 

 

income for tax purposes and any income earned and deferred by the Executive pursuant to any plan or
arrangement of the Employers.

     (b) Base Salary. “Base Salary” shall have the meaning set forth in Section 3(a) hereof.

     (c) Cause. Termination of the Executive’s employment for “Cause” shall mean termination
because of personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties, willful violation of any
law, rule or regulation (other than traffic violations or similar offenses) or final
cease-and-desist order or material breach of any provision of this Agreement.

     (d) Change in Control. “Change in Control” shall mean a change in the ownership of the
Corporation or the Bank, a change in the effective control of the Corporation or the Bank or a
change in the ownership of a substantial portion of the assets of the Corporation or the Bank, in
each case as provided under Section 409A of the Code and the regulations thereunder.

     (e) Code. “Code” shall mean the Internal Revenue Code of 1986, as amended.

     (f) Date of Termination. “Date of Termination” shall mean (i) if the Executive’s employment
is terminated for Cause, the date on which the Notice of Termination is given, and (ii) if the
Executive’s employment is terminated for any other reason, the date specified in such Notice of
Termination.

     (g) Disability. “Disability” shall mean the Executive (i) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, or (ii) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a period of not less
than three months under an accident and health plan covering employees of the Employers.

     (h) Good Reason. Termination by the Executive of the Executive’s employment for “Good Reason”
shall mean termination by the Executive following a Change in Control based on:

          (i) Without the Executive’s express written consent, the failure to elect or to re-elect or to
appoint or to re-appoint the Executive to the offices of President and Chief Executive Officer of
the Employers or a material adverse change made by the Employers in the Executive’s functions,
duties or responsibilities as President and Chief Executive Officer of the Employers;

          (ii) Without the Executive’s express written consent, a reduction by either of the Employers
in the Executive’s Base Salary as the same may be increased from time to time or,

2

 

except to the extent permitted by Section 3(b) hereof, a reduction in the package of fringe
benefits provided to the Executive, taken as a whole;

          (iii) The principal executive office of either of the Employers is relocated outside of the
Ellwood City, Pennsylvania area or, without the Executive’s express written consent, either of the
Employers require the Executive to be based anywhere other than an area in which the Employers’
principal executive office is located, except for required travel on business of the Employers to
an extent substantially consistent with the Executive’s present business travel obligations; or

          (iv) The failure by the Corporation to obtain the assumption of and agreement to perform this
Agreement by any successor as contemplated in Section 9 hereof.

     (i) IRS. IRS shall mean the Internal Revenue Service.

     (j) Notice of Termination. Any purported termination of the Executive’s employment by the
Corporation for any reason, including without limitation for Cause, Disability or Retirement, or by
the Executive for any reason, including without limitation for Good Reason, shall be communicated
by written “Notice of Termination” to the other party hereto. For purposes of this Agreement, a
“Notice of Termination” shall mean a dated notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated, (iii) specifies a Date of Termination, which shall be not less than thirty
(30) nor more than ninety (90) days after such Notice of Termination is given, except in the case
of the Corporation’s termination of the Executive’s employment for Cause, which shall be effective
immediately, and (iv) is given in the manner specified in Section 10 hereof.

     (k) Retirement. “Retirement” shall mean voluntary termination by the Executive in accordance
with the Employers’ retirement policies, including early retirement, generally applicable to their
salaried employees.

     2. Term of Employment.

     (a) The Corporation hereby employs the Executive as President and Chief Executive Officer and
the Executive hereby accepts said employment and agrees to render such services to the Corporation
on the terms and conditions set forth in this Agreement. The term of employment under this
Agreement shall be for three years from December 1, 2006 and, upon approval of the Board of
Directors of the Corporation, shall extend for an additional year on December 1st of each
subsequent calendar year such that at any time after December 1, 2006 the remaining term of this
Agreement shall be from two to three years, absent notice of non-renewal as set forth below. Prior
to December 1, 2007 and each December 1st thereafter, the Board of Directors of the Corporation
shall consider and review (with appropriate corporate documentation thereof, and after taking into
account all relevant factors, including the Executive’s performance hereunder) an extension of the
term of this Agreement, and the term shall continue to extend each year if the Board of Directors
approves such extension unless the

3

 

Executive gives written notice to the Employers of the Executive’s election not to extend the term,
with such written notice to be given not less than thirty (30) days prior to any such December 1st.
If the Board of Directors elects not to extend the term, it shall give written notice of such
decision to the Executive not less than thirty (30) days prior to any such December 1st. If any
party gives timely notice that the term will not be extended as of December 1st of any
year, then this Agreement shall terminate at the conclusion of its remaining term. References
herein to the term of this Agreement shall refer both to the initial term and successive terms.

     (b) During the term of this Agreement, the Executive shall perform such executive services for
the Corporation as may be consistent with her titles and from time to time assigned to her by the
Corporation’s Board of Directors.

     3. Compensation and Benefits.

     (a) The Employers shall compensate and pay the Executive for her services during the term of
this Agreement at a minimum base salary of $364,104 per year (“Base Salary”), which may be
increased from time to time in such amounts as may be determined by the Boards of Directors of the
Employers and may not be decreased without the Executive’s express written consent. In addition to
her Base Salary, the Executive shall be entitled to receive during the term of this Agreement such
bonus payments as may be determined by the Boards of Directors of the Employers.

     (b) During the term of this Agreement, the Executive shall be entitled to participate in and
receive the benefits of any pension or other retirement benefit plan, profit sharing, stock option,
employee stock ownership, or other plans, benefits and privileges given to employees and executives
of the Employers, to the extent commensurate with her then duties and responsibilities, as fixed by
the Boards of Directors of the Employers. The Corporation shall not make any changes in such
plans, benefits or privileges which would adversely affect the Executive’s rights or benefits
thereunder, unless such change occurs pursuant to a program applicable to all executive officers of
the Corporation and does not result in a proportionately greater adverse change in the rights of or
benefits to the Executive as compared with any other executive officer of the Corporation. Nothing
paid to the Executive under any plan or arrangement presently in effect or made available in the
future shall be deemed to be in lieu of the salary payable to the Executive pursuant to Section
3(a) hereof.

     (c) During the term of this Agreement, the Executive shall be entitled to paid annual vacation
in accordance with the policies as established from time to time by the Boards of Directors of the
Employers, which shall in no event be less than five weeks per annum. The Executive shall not be
entitled to receive any additional compensation from the Employers for failure to take a vacation,
nor shall the Executive be able to accumulate unused vacation time from one year to the next,
except to the extent authorized by the Boards of Directors of the Employers.

     (d) During the term of this Agreement, in keeping with past practices, the Employers shall
continue to provide the Executive with the automobile she presently drives. The Employers

4

 

shall be responsible and shall pay for all costs of insurance coverage, repairs, maintenance and
other incidental expenses, including license, fuel and oil.

     (e) In the event the Executive’s employment is terminated by the Corporation due to the
Executive’s Disability, Retirement or death, the Employers shall provide continued life, medical,
dental and disability coverage substantially identical to the coverage maintained by the Employers
for the Executive immediately prior to her termination. The medical and dental coverage shall
continue until the earlier of (a) the Executive’s death, except for coverage of any beneficiaries
pursuant to Section 3(f) below, or (b) the date on which the Executive is entitled to receive
benefits from a subsequent employer which are substantially similar to the medical and dental
coverage provided by the Corporation. The life and disability coverage shall cease upon the
earlier of the expiration of the remaining term of this Agreement or the Executive’s death. During
the period that the Executive receives medical and dental coverage and/or life and disability
coverage, the Executive shall pay the employee share of the costs of such coverages as if she was
still an employee. Notwithstanding the foregoing, if the provision of any of the benefits covered
by this Section 3(e) would trigger the 20% tax and interest penalties under Section 409A of the
Code either due to the nature of such benefit or the length of time it is being provided, then the
benefit(s) that would trigger such tax and interest penalties due to the nature of such benefit
shall not be provided at all and the benefit(s) that would trigger the tax and interest penalties
if provided beyond the “limited period of time” set forth in the regulations under Section 409A
shall not be provided beyond such limited period of time (the “Excluded Benefits”), and in lieu of
the Excluded Benefits the Employers shall pay to the Executive, in a lump sum within 30 days
following termination of employment or within 30 days after such determination should it occur
after termination of employment, a cash amount equal to the cost to the Employers of providing the
Excluded Benefits.

     (f) In the event of the Executive’s death during the term of this Agreement, her spouse,
estate, legal representative or named beneficiaries (as directed by the Executive in writing) shall
be paid on a monthly basis the Executive’s annual compensation from the Employers at the rate in
effect at the time of the Executive’s death for the remainder of the term of this Agreement, as
well as the medical and dental benefits specified in Section 3(e) above to any dependents of the
Executive who were covered by the Employers at the time of the Executive’s death. In the event the
Executive’s employment is terminated due to Disability during the term of this Agreement, the
Executive shall be paid on a monthly basis (i) the Executive’s annual compensation from the
Employers at the rate in effect at the time of termination due to Disability for the remainder of
the term of this Agreement, as well as the benefits specified in Section 3(e) hereof, and (ii) upon
the expiration of the term of this Agreement, two-thirds (66.67%) of the Executive’s Base Salary at
the time of termination due to Disability until the Executive reaches the normal retirement age of
65; provided however, there shall be deducted from the amounts paid the Executive pursuant to this
Section 3(f) any amounts actually paid to the Executive pursuant to any disability insurance or
similar plan or program which the Employers have instituted or may institute on behalf of the
Executive or their employees for the purpose of compensating employees in the event of disability,
the Social Security Act, the Workers Compensation or Occupational Disease Act or any state
disability benefit law; and provided further however, that such payments shall be delayed until the
first business day of the month following the lapse of six months from the date of termination of

5

 

employment if deemed necessary by the Employers to avoid the tax and interest penalties imposed by
Section 409A of the Code. If the payments are delayed pursuant to the last proviso clause in the
preceding sentence, then the payments that would have been provided to the Executive in the absence
of such six-month delay shall be paid to the Executive on the first business day of the month
following the lapse of six months from the date of termination of employment. Notwithstanding the
foregoing, if the provision of any of the benefits covered by this Section 3(f) would trigger the
20% tax and interest penalties under Section 409A of the Code either due to the nature of such
benefit or the length of time it is being provided, then the benefit(s) that would trigger such tax
and interest penalties due to the nature of such benefit shall not be provided at all and the
benefit(s) that would trigger the tax and interest penalties if provided beyond the “limited period
of time” set forth in the regulations under Section 409A shall not be provided beyond such limited
period of time (the “Excluded Benefits”), and in lieu of the Excluded Benefits the Employers shall
pay to the Executive, in a lump sum within 30 days following termination of employment or within 30
days after such determination should it occur after termination of employment, a cash amount equal
to the cost to the Employers of providing the Excluded Benefits.

     (g) The Executive’s compensation, benefits and expenses shall be paid by the Corporation and
the Bank in the same proportion as the time and services actually expended by the Executive on
behalf of each respective Employer.

     4. Expenses. The Employers shall reimburse the Executive or otherwise provide for or pay for
all reasonable expenses incurred by the Executive in furtherance of or in connection with the
business of the Employers, including, but not by way of limitation, automobile expenses described
in Section 3(d) hereof, and traveling expenses, and all reasonable entertainment expenses (whether
incurred at the Executive’s residence, while traveling or otherwise), subject to such reasonable
documentation and other limitations as may be established by the Boards of Directors of the
Employers. If such expenses are paid in the first instance by the Executive, the Employers shall
reimburse the Executive therefor.

     5. Termination.

     (a) The Corporation shall have the right, at any time upon prior Notice of Termination, to
terminate the Executive’s employment hereunder for any reason, including without limitation
termination for Cause, Disability or Retirement, and the Executive shall have the right, upon prior
Notice of Termination, to terminate her employment hereunder for any reason.

     (b) In the event that (i) the Executive’s employment is terminated by the Corporation for
Cause or (ii) the Executive terminates her employment hereunder other than for Disability,
Retirement, death or Good Reason, the Executive shall have no right pursuant to this Agreement to
compensation or other benefits for any period after the applicable Date of Termination.

     (c) In the event that the Executive’s employment is terminated as a result of Disability,
Retirement or the Executive’s death during the term of this Agreement, the Executive

6

 

shall have no right pursuant to this Agreement to compensation or other benefits for any period
after the applicable Date of Termination, except as provided for in Sections 3(e) and 3(f) hereof.

     (d) In the event that (i) the Executive’s employment is terminated by the Corporation for
other than Cause, Disability, Retirement or the Executive’s death or (ii) such employment is
terminated by the Executive (a) due to a material breach of this Agreement by the Corporation,
which breach has not been cured within fifteen (15) days after a written notice of non-compliance
has been given by the Executive to the Employers, or (b) for Good Reason, then the Corporation
shall:

     (A) pay to the Executive, in a lump sum as of the Date of Termination, a cash severance amount
equal to three (3) times that portion of the Executive’s Average Annual Compensation paid by the
Corporation,

     (B) maintain and provide for a period ending at the earlier of (i) thirty-six (36) months
after the Date of Termination or (ii) the date of the Executive’s full-time employment by another
employer (provided that the Executive is entitled under the terms of such employment to benefits
substantially similar to those described in this subparagraph (B)), at no cost to the Executive,
the Executive’s continued participation in all group insurance, life insurance, health and
accident, disability and other employee benefit plans, programs and arrangements offered by the
Corporation in which the Executive was entitled to participate immediately prior to the Date of
Termination (other than retirement plans or stock compensation plans of the Employers), subject to
subparagraphs (D) and (E) below,

     (C) if the Executive is still receiving medical and dental coverage pursuant to Section
5(d)(B) above upon the expiration of thirty-six (36) months after the Date of Termination, maintain
and provide medical and dental coverage for the Executive for a period ending at the earlier of (i)
the Executive’s death or (ii) the date on which the Executive is entitled to receive benefits from
a subsequent employer which are substantially similar to the medical and dental coverage provided
by the Corporation, subject to subparagraphs (D) and (E) below, provided that during the period
that the Executive receives medical and dental coverage pursuant to this Section 5(d)(C), the
Executive shall pay the employee share of the costs of such coverage as if she was still an
employee,

     (D) in the event that the Executive’s participation in any plan, program or arrangement as
provided in subparagraph (B) or (C) of this Section 5(d) is barred, or during such period any such
plan, program or arrangement is discontinued or the benefits thereunder are materially reduced, the
Corporation shall arrange to provide the Executive with benefits substantially similar to those
which the Executive was entitled to receive under such plans, programs and arrangements immediately
prior to the Date of Termination, and

     (E) if the provision of any of the benefits covered by this Section 5(d)(B), (C) or (D) would
trigger the 20% tax and interest penalties under Section 409A of the Code either due to the nature
of such benefit or the length of time it is being provided, then the benefit(s) that would trigger
such tax and interest penalties due to the nature of such benefit shall not be provided at all and
the benefit(s) that would trigger the tax and interest penalties if provided beyond the “limited

7

 

period of time” set forth in the regulations under Section 409A shall not be provided beyond such
limited period of time (the “Excluded Benefits”), and in lieu of the Excluded Benefits the
Employers shall pay to the Executive, in a lump sum within 30 days following termination of
employment or within 30 days after such determination should it occur after termination of
employment, a cash amount equal to the cost to the Employers of providing the Excluded Benefits.

     6. Payment of Additional Benefits under Certain Circumstances.

     (a) If the payments and benefits pursuant to Section 5 hereof, either alone or together with
other payments and benefits which the Executive has the right to receive from the Employers
(including, without limitation, the payments and benefits which the Executive would have the right
to receive from the Bank pursuant to Section 5 of the Agreement between the Bank and the Executive
dated as of the date hereof (“Bank Agreement”), before giving effect to any reduction in such
amounts pursuant to Section 6 of the Bank Agreement), would constitute a “parachute payment” as
defined in Section 280G(b)(2) of the Code (the “Initial Parachute Payment,” which includes the
amounts paid pursuant to clause (A) below), then the Corporation shall pay to the Executive, in a
lump sum within five business days after the Date of Termination, a cash amount equal to the sum of
the following:

     (A) the amount by which the payments and benefits that would have otherwise been paid by the
Bank to the Executive pursuant to Section 5 of the Bank Agreement are reduced by the provisions of
Section 6 of the Bank Agreement;

     (B) twenty (20) percent (or such other percentage equal to the tax rate imposed by Section
4999 of the Code) of the amount by which the Initial Parachute Payment exceeds the Executive’s
“base amount” from the Employers, as defined in Section 280G(b)(3) of the Code, with the difference
between the Initial Parachute Payment and the Executive’s base amount being hereinafter referred to
as the “Initial Excess Parachute Payment”; and

     (C) such additional amount (tax allowance) as may be necessary to compensate the Executive for
the payment by the Executive of state and federal income and excise taxes on the payment provided
under clause (B) above and on any payments under this clause (C). In computing such tax allowance,
the payment to be made under clause (B) above shall be multiplied by the “gross up percentage”
(“GUP”). The GUP shall be determined as follows:

	 	 	 	 	 
	 

	 	GUP =
	 	Tax Rate 
	 

	 	 	 	1-Tax Rate

The Tax Rate for purposes of computing the GUP shall be the highest marginal federal and state
income and employment-related tax rate (including Social Security and Medicare taxes), including
any applicable excise tax rate, applicable to the Executive in the year in which the payment under
clause (B) above is made, and shall also reflect the phase-out of deductions and the ability to
deduct certain of such taxes.

8

 

     (b) Notwithstanding the foregoing, if it shall subsequently be determined in a final judicial
determination or a final administrative settlement to which the Executive is a party that the
actual excess parachute payment as defined in Section 280G(b)(1) of the Code is different from the
Initial Excess Parachute Payment (such different amount being hereafter referred to as the
“Determinative Excess Parachute Payment”), then the Corporation’s independent tax counsel or
accountants shall determine the amount (the “Adjustment Amount”) which either the Executive must
pay to the Corporation or the Corporation must pay to the Executive in order to put the Executive
(or the Corporation, as the case may be) in the same position the Executive (or the Corporation, as
the case may be) would have been if the Initial Excess Parachute Payment had been equal to the
Determinative Excess Parachute Payment. In determining the Adjustment Amount, the independent tax
counsel or accountants shall take into account any and all taxes (including any penalties and
interest) paid by or for the Executive or refunded to the Executive or for the Executive’s benefit.
As soon as practicable after the Adjustment Amount has been so determined, the Corporation shall
pay the Adjustment Amount to the Executive or the Executive shall repay the Adjustment Amount to
the Corporation, as the case may be.

     (c) In each calendar year that the Executive receives payments of benefits that constitute a
parachute amount, the Executive shall report on her state and federal income tax returns such
information as is consistent with the determination made by the independent tax counsel or
accountants of the Corporation as described above. The Corporation shall indemnify and hold the
Executive harmless from any and all losses, costs and expenses (including without limitation,
reasonable attorneys’ fees, interest, fines and penalties) which the Executive incurs as a result
of so reporting such information. The Executive shall promptly notify the Corporation in writing
whenever the Executive receives notice of the institution of a judicial or administrative
proceeding, formal or informal, in which the federal tax treatment under Section 4999 of the Code
of any amount paid or payable under this Section 6 is being reviewed or is in dispute. The
Corporation shall assume control at its expense over all legal and accounting matters pertaining to
such federal tax treatment (except to the extent necessary or appropriate for the Executive to
resolve any such proceeding with respect to any matter unrelated to amounts paid or payable
pursuant to this Section 6) and the Executive shall cooperate fully with the Corporation in any
such proceeding. The Executive shall not enter into any compromise or settlement or otherwise
prejudice any rights the Corporation may have in connection therewith without the prior consent of
the Corporation.

     7. Mitigation; Exclusivity of Benefits.

     (a) The Executive shall not be required to mitigate the amount of any benefits hereunder by
seeking other employment or otherwise, nor shall the amount of any such benefits be reduced by any
compensation earned by the Executive as a result of employment by another employer after the Date
of Termination or otherwise, except as set forth in Section 5(d)(B) and (C) above.

     (b) The specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to the Executive upon a termination of employment with the
Employers pursuant to employee benefit plans of the Employers or otherwise.

9

 

     8. Withholding. All payments required to be made by the Corporation hereunder to the
Executive shall be subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Corporation may reasonably determine should be withheld pursuant to any
applicable law or regulation.

     9. Assignability. The Corporation may assign this Agreement and its rights and obligations
hereunder in whole, but not in part, to any corporation, bank or other entity with or into which
the Corporation may hereafter merge or consolidate or to which the Corporation may transfer all or
substantially all of its assets, if in any such case said corporation, bank or other entity shall
by operation of law or expressly in writing assume all obligations of the Corporation hereunder as
fully as if it had been originally made a party hereto, but may not otherwise assign this Agreement
or its rights and obligations hereunder. The Executive may not assign or transfer this Agreement
or any rights or obligations hereunder.

     10. Notice. For the purposes of this Agreement, notices and all other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below:

	 	 	 	 	 
	 

	 	To the Corporation:
	 	Secretary

ESB Financial Corporation

600 Lawrence Avenue

Ellwood City, Pennsylvania 16117
	 
	 	 	 	 
	 

	 	To the Bank:
	 	Secretary

ESB Bank, F.S.B.

600 Lawrence Avenue

Ellwood City, Pennsylvania 16117
	 
	 	 	 	 
	 

	 	To the Executive:
	 	Charlotte A. Zuschlag

At the address last appearing on

the personnel records of the Employers

     11. Amendment; Waiver. No provisions of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing signed by the Executive and
such officer or officers as may be specifically designated by the Board of Directors of the
Corporation to sign on its behalf. No waiver by any party hereto at any time of any breach by any
other party hereto of, or compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. In addition, notwithstanding anything
in this Agreement to the contrary, the Corporation may amend in good faith any terms of this
Agreement, including retroactively, in order to comply with Section 409A of the Code.

10

 

     12. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the United States where applicable and otherwise by the
substantive laws of the Commonwealth of Pennsylvania.

     13. Nature of Obligations. Nothing contained herein shall create or require the Corporation
to create a trust of any kind to fund any benefits which may be payable hereunder, and to the
extent that the Executive acquires a right to receive benefits from the Corporation hereunder, such
right shall be no greater than the right of any unsecured general creditor of the Corporation.

     14. Headings. The section headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement.

     15. Validity. The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provisions of this Agreement, which shall remain
in full force and effect.

     16. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original but all of which together will constitute one and the same
instrument.

     17. Regulatory Prohibition. Notwithstanding any other provision of this Agreement to the
contrary, any payments made to the Executive pursuant to this Agreement, or otherwise, are subject
to and conditioned upon their compliance with Section 18(k) of the FDIA (12 U.S.C. §1828(k)) and 12
C.F.R. Part 359.

     18. Entire Agreement. This Agreement embodies the entire agreement between the Corporation
and the Executive with respect to the matters agreed to herein. All prior agreements between the
Corporation and the Executive with respect to the matters agreed to herein, including without
limitation the Agreement between the Employers and the Executive dated June 13, 1990 and the
Agreements between the Corporation and the Executive dated November 16, 1999, December 1, 2000,
December 1, 2001, and December 1, 2002 are hereby superseded and shall have no force or effect.
Notwithstanding the foregoing, nothing contained in this Agreement shall affect the agreement of
even date being entered into between the Bank and the Executive.

[Signature page follows]

11

 

     IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written.

	 	 	 	 	 	 	 
	Attest:	 	ESB FINANCIAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Frank D. Martz

	 	By:
	 	/s/ William B. Salsgiver	 	 
	 

	 	 	 	 	 	 
	Frank D. Martz

	 	 	 	William B. Salsgiver	 	 
	Group Senior Vice President of Operations
and Secretary

	 	 	 	Chairman of the Board of Directors	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charlotte A. Zuschlag	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Charlotte A. Zuschlag	 	 

12

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