Document:

exv4w3

Exhibit 4.3

STOCKHOLDERS’ AGREEMENT

     This Stockholders’ Agreement (“Agreement”) made as of the _______________by and among CBS
Personnel Holdings, Inc., a Delaware corporation (the “Company”), Compass Group Diversified
Holdings LLC, a Delaware limited liability company (together with its successors and assigns,
“Compass”), and __________ (“Stockholder”), an individual owning options to purchase shares of the
Company.

WITNESSETH:

     WHEREAS, the Company has adopted an Amended 1999 Stock Option Plan (the “Plan”) and entered
into a Stock Option Agreement with Stockholder dated as of ________________ (the “Stock Option
Agreement”) pursuant to which Compass has granted options to purchase shares of its common stock to
Stockholder;

     WHEREAS, the Company Common Stock offered to Stockholder is Class C Common Stock.

     WHEREAS, pursuant to the Stock Option Agreement, Stockholder has executed and delivered a
Notice of Exercise dated _______________ to the Company exercising its option to purchase
___________ shares of Class C Common Stock of the Company.

     WHEREAS, Compass, the Company and Stockholder wish to enter into this Agreement to establish
procedures for the transfer of the Shares (defined below);

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and promises
hereinafter contained, the parties hereto agree as follows:

     1. Definitions. Whenever used in this Agreement, the following terms shall have the
following respective meanings:

          1.1. “Permitted Transferee” has the meaning assigned to it in Section 3.3 (a).

          1.2. “Shares” means any and all outstanding shares of Class C Common Stock of the Company,
$.001 par value, at any time issued to and held by Stockholder.

     2. Management of the Company.

          2.1. Directors. Stockholder hereby agrees to vote all Shares held by Stockholder in
favor of Compass’ nominees as a directors of the Company.

     3. Shares Subject to Agreement: Restrictions.

          3.1. Shares Subject to Agreement. All Shares, whether currently outstanding or
hereafter issued, at any time held or owned by Stockholder or by any successor in

 

 

interest to Stockholder shall be subject to this Agreement and to all the obligations and
restrictions hereof.

          3.2. No Transfers. Except as provided in Sections 3.3, 3.4 and 3.5, neither
Stockholder nor any successor in interest to Stockholder shall sell, assign, convey, transfer,
encumber or in any other manner dispose of any or all of the Shares held or owned by Stockholder or
such successor except in accordance with the provisions of this Agreement. Any such sale,
assignment, conveyance, transfer, encumbrance or disposition of the Shares in violation of this
Agreement is void ab initio.

          3.3. Transfers to Permitted Transferees.

               (a) Stockholder may, during life or pursuant to will, transfer Shares to Stockholder’s spouse
or lineal descendants or a trust for Stockholder’s benefit and/or for the benefit of any one or
more of them. Any person receiving Shares pursuant to this Section 3.3 (a) is herein referred to as
a “Permitted Transferee.”

               (b) If any Shares are transferred to a Permitted Transferee, such Permitted Transferee shall
take and hold such Shares, and such Shares shall be, subject to this Agreement and to the rights,
obligations and restrictions provided herein, including, without limitation, the provision that
such Permitted Transferee shall not thereafter transfer any such Shares pursuant to this Section
3.3 other than to a person who is a Permitted Transferee of Stockholder. Every Permitted Transferee
shall observe and comply with this Agreement and with all obligations and restrictions imposed
hereby and shall, upon demand made at any time by Compass or any Stockholder, execute appropriate
instruments to that effect.

          3.4. First Refusal Rights. If Stockholder shall receive a bona fide
written cash offer (“Offer”) from a non-affiliated third party (“Offeror”) which Stockholder
desires to accept, Compass shall have the right (“First Refusal Right”) to purchase the Shares
subject to such Offer (“Offered Shares”) at the same price and on the same terms and conditions as
follows:

               (a) Stockholder shall provide notice to Compass setting forth the identity of the Offeror, the
number of Shares proposed to be purchased, the proposed purchase price and all material terms and
conditions of the Offer.

               (b) For a period of 30 days (“Option Period”), Compass shall have the First Refusal Right to
purchase the Offered Shares. Such option shall be exercisable by a written notice to Stockholder no
later than the expiration of the Option Period.

               (c) If the First Refusal Right has not been exercised with respect to all of the Offered
Shares within the Option Period, then Stockholder shall have the right to sell all of the Offered
Shares to the Offeror pursuant to the Offer within the period of 90 days following the expiration
of the Option Period. If the Offered Shares are not so sold within such 90 day period, such Offered
Shares shall continue to be subject to the provisions of this Agreement.

2

 

               (d) The closing of the purchase of the Offered Shares by Compass pursuant to this Section
shall be held at 11:00 a.m. (New York City time) at the principal office of Compass within 30 days
after the expiration of the Option Period. At the closing, Stockholder shall deliver the
certificate(s) representing the Offered Shares in accordance with, and subject to, the terms and
conditions of the accepted Offer.

          3.5. Drag Along Rights.

               (a) If Compass proposes to sell more than 5% of the then outstanding shares of any class of
the Company’s Common Stock in a bona fide transaction to a non-affiliated third
party at any time, Compass shall have the right to require Stockholder to sell such percentage of
Stockholder’s Shares to the same purchaser as proposed to be sold by the Company, upon the same
terms and conditions on which, and at the same time, as the Company sells its shares. The rights
referred to in this Section 3.5 shall be exercised by written notice to Stockholder (“Disposition
Notice”) from Compass proposing the sale or other disposition contemplated herein. The Disposition
Notice shall specify the number of shares to be sold, the price, terms and conditions of such
proposed sale and a description of the proposed purchaser. The Disposition Notice shall be deemed
effective with respect to Stockholder upon receipt.

               (b) Promptly following receipt of such Disposition Notice, Stockholder shall deliver to
Compass (or such other person as may be agreed upon between Compass and Stockholder) to be held by
Compass (or such other person) for sale or return upon the terms of this Section 3.5, the
certificate or certificates representing the Shares to be sold or otherwise disposed of pursuant to
this Section, duly endorsed, together with a limited power-of-attorney authorizing Compass to sell
or otherwise dispose of such Shares in accordance with the terms of this Section.

               (c) Promptly after the consummation of the sale or other disposition of the shares of Compass
and the Shares of Stockholder to the third party, and in any event not later than 2 business days
after such consummation, Compass shall remit to Stockholder the total sale price of Stockholder’s
Shares sold or otherwise disposed of pursuant hereto (after deduction of Stockholder’s
proportionate share of the out-of-pocket expenses associated with such sale based on the number of
shares or Shares, as applicable, sold by Stockholder, Compass and any other stockholder of the
Company) and shall furnish such other evidence of the expenses associated with and the completion
and time of completion of such sale or other disposition and the terms thereof, as may reasonably
be requested by Stockholder.

               (d) Compass shall have 90 days from the date of Stockholder’s receipt of the Disposition
Notice in which to sell such Shares to the third party at the price and on the terms not less
favorable to Stockholder than will be received by Compass. If, at the end of such 90 day period
Compass has not completed the sale or other disposition of its shares and the Shares of
Stockholder, all certificates representing Shares delivered for sale or other disposition pursuant
to this Section shall be returned to Stockholder. Thereafter, Compass may complete its sale or
other disposition to such non-affiliated third parties; provided, however, that Stockholder shall
not be bound by the provisions of this Section with respect to such sale. This Section shall,
however, apply to any other proposed sale or other disposition.

3

 

     4. Miscellaneous.

          (a) Legend on Certificates. Each certificate representing Shares shall be inscribed
with substantially the following legend:

“This certificate and the securities represented by this certificate and all rights
therein are subject to and transferable (including without limitation by way of
pledge or other grant of a security interest therein) only in accordance with the
provisions of a certain Stockholders’ Agreement dated as of ________ __, 200__,
among the Company and certain Stockholders of the Company. A copy of such
Stockholders’ Agreement, as may be amended from time to time, is on file and
available for inspection at the principal office of the Company. Any sale, pledge,
gift, bequest, transfer, assignment, encumbrance or other disposition of this
certificate and the securities represented thereby in violation of said
Stockholders’ Agreement shall be invalid.”

          (b) Effectiveness of Transfers. No Shares shall be transferred on the
Company’s books and records and transfer of Shares shall be otherwise ineffective unless such
transfer is made pursuant to and in accordance with the terms and conditions of this Agreement.

          (c) Notices. Any and all notices or consents required or permitted to be given under
any of the provisions of this Agreement shall be in writing and shall be deemed to have been
received (i) on the date of delivery if delivered in person or by facsimile copy and confirmed or
on the second date after it is given if sent by Federal Express or other similar overnight delivery
service which requires a signed receipt or (ii) upon three days after the date of mailing, if
mailed first class by registered or certified mail, return receipt requested, to the party entitled to receive the same at the following addresses:

(i)   If to Company:

CBS Personnel Holdings, Inc.

24422 Avenida de la Carlota

Suite 370

Laguna Hills, California 92563

Attn: Elias J. Sabo

with a copy to:

Squire, Sanders & Dempsey L.L.P.

221 E. Fourth Street, Suite 2900

Cincinnati, Ohio 45202-4095

Attn: Stephen C. Mahon, Esq.

4

 

(ii)    If to Compass:

Compass Group Diversified Holdings LLC

61 Wilton Road

2nd Floor

Westport, Connecticut 06880

Attn: I. Joseph Massoud

with a copy to:

Squire, Sanders & Dempsey L.L.P.

221 E. Fourth Street, Suite 2900

Cincinnati, Ohio 45202-4095

Attn: Stephen C. Mahon, Esq.

and

(iii)    If to Stockholder:

                                        

c/o CBS Personnel Services

435 Elm Street, Suite 300

Cincinnati, Ohio 45202

Any party hereto may change its address by giving notice to the other parties stating its new
address, all in the manner provided herein. Commencing on the fifth day after giving such notice,
such newly designated address shall be such parties address for the purpose of all notices or other
communications required or permitted to be given pursuant to this Agreement.

          (d) Specific Performance. Due to the fact that the Shares cannot be readily purchased
or sold in the open market, and for other reasons, the parties will be irreparably damaged in the
event that this Agreement is not specifically enforced. In the event of a breach or threatened
breach of any of the terms, covenants and conditions of this Agreement by any of the parties
hereto, the other parties shall, in addition to all other remedies, be entitled to a temporary or
permanent injunction, without showing any actual damage, and/or a decree for specific performance
in accordance with the provisions hereof.

          (e) Arbitration. Any controversy arising out of or relating to this Agreement (except
controversies pursuant to or arising under Section 3 of this Agreement) or any modification,
extension or termination thereof, including any claim for damages and/or rescission, shall be
resolved by arbitration in the State of Ohio, in accordance with the commercial arbitration rules
then obtaining of the American Arbitration Association. The parties consent to the jurisdiction of
the Courts of the State of Ohio for all purposes in connection with said arbitration and further
consent that any process or notice of motion or other application to the Court or any judge thereof
and any paper in connection with such arbitration may be served in or out of the State of Ohio by
certified or registered mail or personal service or in such other manner as may be

5

 

permissible under the rules of the applicable Court or arbitration tribunal, provided a
reasonable time for appearance is allowed. Any provisional remedy which, but for this Agreement to
arbitrate disputes, would be available at law, shall be available to the parties hereto pending
arbitration. Each party shall pay its own attorneys’ fees and other expenses of such arbitration
and related proceedings, except that the costs assessed by the American Arbitration Association or
the said Court shall be shared equally by the parties.

          (f) Entire Agreement. This Agreement cancels and supersedes any and all oral or
written agreements and understandings made between the parties relating to the subject matter
hereof, and contains the entire agreement of the parties with respect to the subject matter hereof.

          (g) Amendments; Termination. This Agreement may not be modified, amended or, except as
herein provided, terminated except by a written agreement signed by all of the parties hereto.

          (h) Waiver. No waiver of any breach or default hereunder shall be considered valid
unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default
of the same or similar nature.

          (i) Assignment. Except as otherwise expressly provided herein, this Agreement shall be
binding upon and inure to the benefit of Compass and its successors and assigns, and Stockholder
and Stockholder’s heirs, personal representatives and assigns; provided, however, that nothing
contained herein shall be construed as granting Stockholder the right to transfer Shares except as
expressly provided in this Agreement.

          (j) Headings. The headings contained herein are for the purposes of convenience only
and are not intended to define or limit the contents hereof.

          (k) Further Assurances. Each party hereto shall cooperate and shall take such further
action and shall execute and deliver such further documents as may be reasonably requested by any
other party in order to carry out the provisions and purposes of this Agreement.

          (1) Use of Pronouns. Whenever any pronoun (e.g., “he”, “she”, “his”, “her” or
“him”) is used herein, it shall be deemed to mean such other pronoun as may be necessary or
appropriate in the context in which used. Words in the singular shall be read and construed as
though in the plural and words in the plural shall be read and construed as though in the singular
in all cases where they would so apply.

          (m) Counterparts. This Agreement may be executed in one or more counterparts, all of
which taken together shall be deemed one original.

          (n) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Ohio without regard to the principles of conflicts of law of such
State.

6

 

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

	 	 	 	 	 
	 	CBS PERSONNEL HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	Printed Name:  	Frederick L. Kohnke 	 
	 	Title:  	President 	 
	 
	 	COMPASS GROUP DIVERSIFIED HOLDINGS LLC

 	 
	 	By:  	 	 
	  	Printed Name: 	 
	 	Title:  	 	 
	 
	 	[Stockholder]
 	 
	 	 	 
	 	 	 
	 	 	 
	 

7exv10w1

Exhibit 10.1

Execution Copy

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

dated as of March 31, 2009

among

CBS PERSONNEL HOLDINGS, INC.,

as Borrower,

and

COMPASS GROUP DIVERSIFIED HOLDINGS LLC,

as Lender

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	SECTION 1.
	 	DEFINITIONS; INTERPRETATION	 	 	1	 
	1.1
	 	Definitions	 	 	1	 
	1.2
	 	Interpretation	 	 	18	 
	SECTION 2.
	 	CREDIT FACILITIES	 	 	19	 
	2.1
	 	Commitments; Loans	 	 	19	 
	2.2
	 	Loan Procedures	 	 	19	 
	2.3
	 	[Reserved]	 	 	20	 
	2.4
	 	Certain Conditions	 	 	20	 
	2.5
	 	Loan Accounting	 	 	21	 
	2.6
	 	Interest	 	 	21	 
	2.7
	 	Fees	 	 	22	 
	2.8
	 	Commitment Reduction	 	 	23	 
	2.9
	 	Prepayment	 	 	23	 
	2.10
	 	Repayment	 	 	25	 
	2.11
	 	Payment	 	 	25	 
	2.12
	 	Letters of Credit	 	 	27	 
	SECTION 3.
	 	YIELD PROTECTION	 	 	29	 
	3.1
	 	Taxes	 	 	29	 
	3.2
	 	Increased Cost	 	 	30	 
	3.3
	 	Inadequate or Unfair Basis	 	 	30	 
	3.4
	 	Change in Law	 	 	31	 
	3.5
	 	Funding Losses	 	 	31	 
	3.6
	 	Conclusiveness of Statements; Survival	 	 	31	 
	SECTION 4.
	 	CONDITIONS PRECEDENT	 	 	32	 
	4.1
	 	Conditions Precedent to Execution of this Agreement	 	 	32	 
	4.2
	 	Additional Credit Extensions	 	 	33	 
	SECTION 5.
	 	REPRESENTATIONS AND WARRANTIES	 	 	33	 
	5.1
	 	Organization	 	 	33	 
	5.2
	 	Authorization; No Conflict	 	 	33	 

i 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	5.3
	 	Validity; Binding Nature	 	 	34	 
	5.4
	 	Financial Condition	 	 	34	 
	5.5
	 	No Material Adverse Change	 	 	34	 
	5.6
	 	Litigation	 	 	35	 
	5.7
	 	Ownership of Properties; Liens	 	 	35	 
	5.8
	 	Capitalization	 	 	35	 
	5.9
	 	Pension Plans	 	 	35	 
	5.10
	 	Investment Company Act	 	 	36	 
	5.11
	 	Public Utility Holding Company Act	 	 	36	 
	5.12
	 	Margin Stock	 	 	36	 
	5.13
	 	Taxes	 	 	36	 
	5.14
	 	Solvency	 	 	36	 
	5.15
	 	Environmental Matters	 	 	37	 
	5.16
	 	Insurance	 	 	37	 
	5.17
	 	Information	 	 	37	 
	5.18
	 	Intellectual Property	 	 	38	 
	5.19
	 	Restrictive Provisions	 	 	38	 
	5.20
	 	Labor Matters	 	 	38	 
	5.21
	 	No Default	 	 	38	 
	5.22
	 	Compliance with Law	 	 	38	 
	5.23
	 	Permits, etc.	 	 	39	 
	SECTION 6.
	 	AFFIRMATIVE COVENANTS	 	 	39	 
	6.1
	 	Information	 	 	39	 
	6.2
	 	Books; Records; Inspections	 	 	42	 
	6.3
	 	Maintenance of Property; Insurance	 	 	42	 
	6.4
	 	Compliance with Laws; Payment of Taxes and Liabilities	 	 	43	 
	6.5
	 	Maintenance of Existence	 	 	44	 
	6.6
	 	Employee Benefit Plans	 	 	44	 
	6.7
	 	Environmental Matters	 	 	44	 
	6.8
	 	Obtaining of Permits, Etc.	 	 	44	 
	6.9
	 	Collateral Access Agreements	 	 	44	 

ii 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	6.10
	 	Blocked Accounts	 	 	45	 
	6.11
	 	Further Assurances; Post-Closing Items	 	 	46	 
	SECTION 7.
	 	NEGATIVE COVENANTS	 	 	46	 
	7.1
	 	Debt	 	 	46	 
	7.2
	 	Liens	 	 	47	 
	7.3
	 	[Reserved]	 	 	48	 
	7.4
	 	Restricted Payments	 	 	48	 
	7.5
	 	Mergers; Consolidations; Asset Sales	 	 	49	 
	7.6
	 	Modification of Organizational Documents	 	 	49	 
	7.7
	 	Use of Proceeds	 	 	49	 
	7.8
	 	Transactions with Affiliates	 	 	49	 
	7.9
	 	Inconsistent Agreements	 	 	49	 
	7.10
	 	Business Activities	 	 	50	 
	7.11
	 	Investments	 	 	50	 
	7.12
	 	Restriction of Amendments to Certain Documents	 	 	51	 
	7.13
	 	Fiscal Year	 	 	51	 
	7.14
	 	Financial Covenants	 	 	51	 
	7.15
	 	Bank Accounts	 	 	53	 
	7.16
	 	Subsidiaries	 	 	53	 
	SECTION 8.
	 	EVENTS OF DEFAULT; REMEDIES	 	 	53	 
	8.1
	 	Events of Default	 	 	53	 
	8.2
	 	Remedies	 	 	56	 
	SECTION 9.
	 	MISCELLANEOUS	 	 	56	 
	9.1
	 	Waiver; Amendments	 	 	56	 
	9.2
	 	Notices	 	 	56	 
	9.3
	 	Computations	 	 	57	 
	9.4
	 	Costs; Expenses	 	 	57	 
	9.5
	 	Indemnification by Borrower	 	 	57	 
	9.6
	 	Marshaling; Payments Set Aside	 	 	58	 
	9.7
	 	Nonliability of Lender	 	 	58	 
	9.8
	 	Assignments; Participations	 	 	58	 

iii 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	9.9
	 	Confidentiality	 	 	60	 
	9.10
	 	Captions	 	 	60	 
	9.11
	 	Nature of Remedies	 	 	61	 
	9.12
	 	Counterparts	 	 	61	 
	9.13
	 	Severability	 	 	61	 
	9.14
	 	Entire Agreement	 	 	61	 
	9.15
	 	Successors; Assigns	 	 	61	 
	9.16
	 	Governing Law	 	 	61	 
	9.17
	 	Forum Selection; Consent to Jurisdiction	 	 	62	 
	9.18
	 	Waiver of Jury Trial	 	 	62	 

	 	 	 

	Annexes
	 	 
	Annex I

	 	Commitments and Pro Rata Shares
	Annex II

	 	Addresses
	 
	 	 
	Exhibits
	 	 
	Exhibit A

	 	Form of Assignment Agreement
	Exhibit B

	 	Form of Compliance Certificate
	Exhibit C

	 	Form of Borrowing Base Certificate
	Exhibit D

	 	Form of Note
	Exhibit E

	 	Form of Borrowing Notice
	Exhibit F

	 	Conversion/Continuation Notice
	Exhibit G

	 	Form of Maintenance Agreement
	 
	 	 
	Schedules
	 	 
	Schedule 5.6

	 	Litigation
	Schedule 5.8

	 	Capitalization
	Schedule 5.16

	 	Insurance
	Schedule 5.18

	 	Intellectual Property
	Schedule 5.20

	 	Labor Matters
	Schedule 6.11

	 	Post-Closing Items
	Schedule 7.1

	 	Existing Debt
	Schedule 7.2

	 	Existing Liens
	Schedule 7.11

	 	Existing Investments
	Schedule 7.15

	 	Bank Accounts

iv 

 

AMENDED AND RESTATED CREDIT AGREEMENT

                    This Amended and Restated Credit Agreement, dated as of March 31, 2009 (as amended, restated
or otherwise modified from time to time, this “Agreement”), by and between CBS Personnel
Holdings, Inc., a Delaware corporation (“Borrower”), and Compass Group Diversified Holdings
LLC, (together with its successors and assigns, “Lender”), as lender.

                    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 Commitments; or (iii) any other Event of Default under Section 8.1 and
the election by the Lender to declare the Obligations to be due and payable or to terminate the
Revolving Loan Commitment.

                    Account has the meaning set forth in the Guarantee and Collateral Agreement.

                    Account Debtor means any Person who is obligated to Borrower or any Subsidiary with
respect to any Account, Chattel Paper or General Intangible.

                    Accrued Cash Income Tax Expense means income tax expense (benefit) recorded for any
period within the consolidated financial statements less any deferred tax expense (benefit)
included in such income tax expense (benefit).

                    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).

                    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) any officer or
director of such Person and (c) with respect to Lender, any entity administered or managed by
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

1

 

directors or managers or power to direct or cause the direction of the management and policies
of such Person whether by contract or otherwise. Unless expressly stated otherwise herein, Lender
shall not be deemed an Affiliate of Borrower or of any Subsidiary.

                    Agreement has the meaning set forth in the Preamble.

                    Amendment Fee has the meaning set forth in Section 4.1.4.

                    Applicable Margin means the applicable rate per annum as set forth in the following
table:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total Debt	 	Revolving Loans	 	Term A Loans	 	Term B Loans	 	 
	 	 	to EBITDA	 	Base	 	 	 	 	 	Base	 	 	 	 	 	Base	 	 	 	 	 	Commitment
	Level	 	Ratio	 	Rate	 	LIBOR	 	Rate	 	LIBOR	 	Rate	 	LIBOR	 	Fee
	1
	 	>4.5:1.0	 	 	 	2.75	%	 	 	4.25	%	 	 	3.75	%	 	 	5.25	%	 	 	8.50	%	 	 	10.00	%	 	 	0.50	%
	 
	 	>3.5:1.0 
but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	≤ 4.5:1.0	 	 	 	1.75	%	 	 	3.25	%	 	 	1.75	%	 	 	3.25	%	 	 	6.50	%	 	 	8.00	%	 	 	0.50	%
	 
	 	>3.0:1.0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	≤ 3.5:1.0	 	 	 	1.50	%	 	 	3.00	%	 	 	1.50	%	 	 	3.00	%	 	 	6.00	%	 	 	7.50	%	 	 	0.50	%
	 
	 	>2.5:1.0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	≤ 3.0:1.0	 	 	 	1.25	%	 	 	2.75	%	 	 	1.25	%	 	 	2.75	%	 	 	5.50	%	 	 	7.00	%	 	 	0.375	%
	 
	 	>2.0:1.0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	≤ 2.5:1.0	 	 	 	1.00	%	 	 	2.50	%	 	 	1.00	%	 	 	2.50	%	 	 	5.00	%	 	 	6.50	%	 	 	0.375	%
	6
	 	≤2.0:1.0	 	 	 	0.75	%	 	 	2.25	%	 	 	0.75	%	 	 	2.25	%	 	 	5.00	%	 	 	6.50	%	 	 	0.25	%

                    Initially, each Applicable Margin shall be that percentage set forth above for Level 1 in
the table above. On and after July 1, 2009, each Applicable Margin shall be equal to the
applicable rate per annum set forth in the table above opposite the applicable Total Debt to EBITDA
Ratio.

                    Assignee has the meaning set forth in Section 9.8.1.

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

                    Balance Sheet Date has the meaning set forth in Section 5.4.

                    Bankruptcy Code means the United States Bankruptcy Code (11 U.S.C. 101 et. seq.), as
amended, and any successor statute.

                    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

2

 

available and recognizable source as Lender may select) or (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.

                    Borrowing Availability means, at the time of determination, an amount equal to the
lesser of (a) the Revolving Loan Commitment and (b) the sum of (i) 85% of the unpaid amount of all
Eligible Accounts and (ii) and 75% of the aggregate face amount of all Eligible Unbilled Accounts
as of such date which are listed (or which in accordance with GAAP should be listed) on the books
of Borrower or any Domestic Subsidiary as of such date.

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

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

                    Business Day means any day other than any Saturday and Sunday on which commercial
banks are open for commercial banking business in New York, New York, and, in the case of a
Business Day which relates to a LIBOR Loan, any day on which dealings are carried out in the London
interbank Eurodollar market.

                    Capital Expenditures means all expenditures (other than for leasehold improvements not
to exceed $750,000 per year ) which, in accordance with GAAP, would be required to be capitalized
and shown on the consolidated balance sheet of Borrower, but excluding 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 Section 2.9.2(a)(i).

                    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, (i) in conformity
with GAAP, is accounted for as a capital lease on the balance sheet of such Person or (ii) is a
transaction of a type commonly known as a “synthetic lease” (i.e. a lease transaction that is
treated as an operating lease for accounting purposes but with respect to which payments of rent
are intended to be treated as payments of principal and interest on a loan for Federal income tax
purposes).

                    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

3

 

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
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 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 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 Lender.

                    Chattel Paper has the meaning set forth in the Guarantee and Collateral Agreement.

                    Closing Date means the date on which all conditions precedent set forth in Section
4.1 have been satisfied or waived in writing by Lender.

                    Collateral has the meaning set forth in the Guarantee and Collateral Agreement.

                    Collateral Access Agreement means an agreement in form and substance reasonably
satisfactory to Lender pursuant to which a mortgagee or lessor of real property on which Collateral
is stored or otherwise located, or a warehouseman, processor or other bailee of Inventory or other
property owned by Borrower or any Subsidiary, acknowledges the Liens of Lender and waives (or, if
approved by Lender, subordinates) any Liens held by such Person on such property, and, in the case
of any such agreement with a mortgagee or lessor, permits Lender reasonable access to and use of
such real property during the continuance of an Event of Default to assemble, complete and sell any
Collateral stored or otherwise located thereon.

                    Collateral Documents means, collectively, the Guarantee and Collateral Agreement, each
Mortgage, each Collateral Access Agreement, and each other agreement or instrument pursuant to or
in connection with which Borrower, any Subsidiary or any other Person grants a security interest in
any Collateral to Lender, each as amended, restated or otherwise modified from time to time.

                    Commitment means the Revolving Loan Commitment, the Term A Loan Commitment and the
Term B Loan Commitment.

                    Commitment Fee means the fee payable by Borrower to Lender pursuant to Section
2.7.1.

                    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.

4

 

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

                    Debt of any Person means, without duplication, (a) all indebtedness of such Person for
borrowed money, whether or not evidenced by bonds, debentures, notes or similar instruments, (b)
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, (c) 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), (d) 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), (e) all obligations,
contingent or otherwise, with respect to the face amount of all letters of credit (whether or not
drawn) and banker’s acceptances issued for the account of such Person, (f) all Hedging Obligations
of such Person, (g) all Contingent Obligations of such Person, (h) all indebtedness of any
partnership of which such Person is a general partner, (i) all monetary obligations under any
receivables factoring, receivable sales or similar transactions and 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 and (j) all reimbursement, payment or other obligations and liabilities of such Person
created or arising under any conditional sales or other title retention agreement with respect to
property used or acquired by such Person, even though the rights and remedies of the lessor, seller
or lender thereunder may be limited to repossession or sale of such property.

                    Debt to be Repaid means Term B Loans in the principal amount of $35,000,000.

5

 

                    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 Subsidiary, (a) any
sale, lease, assignment or other transfer (other than to Borrower or any Subsidiary), (b) any loss,
destruction or damage thereof or (c) any actual or threatened condemnation, confiscation,
requisition, seizure or taking thereof, excluding, however, with respect to each of (a), (b) and
(c) above, (i) assets subject to a Disposition which are replaced within 180 days with assets
performing the same or a similar function, (ii) Dispositions in any Fiscal Year, the Net Cash
Proceeds of which do not in the aggregate exceed $150,000 and (iii) the sale or other transfer of
Inventory in the ordinary course of business.

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

                    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. Unless the
context otherwise requires, each reference to Domestic Subsidiary or Domestic Subsidiaries herein
shall be a reference to Subsidiary or Subsidiaries of Borrower.

                    EBITDA means, for any period, Consolidated Net Income for such period plus, to the
extent deducted in determining such Consolidated Net Income, (i) Interest Expense, income tax
expense, non-cash stock option expense, depreciation and amortization for such period, (ii)
management fees paid to or accrued for the benefit of Manager and Staffing Holding LLC in such
period to the extent permitted pursuant to Section 7.4, and (iii) the first $12,500,000.00
in Staffmark Integration Costs and other non-recurring restructuring charges, provided such
Staffmark Integration Costs and non-recurring restructuring charges were incurred both (A) during
the period from December 19, 2007 up to and including January 21, 2010 and (B) during such period
of calculation under this definition.

                    ECF Percentage means, for any fiscal year, 90%.

                    Eligible Account means all Accounts owing to Borrower or any Domestic Subsidiary other
than: (a) Accounts which remain unpaid for more than ninety (90) days after their invoice dates and
Accounts which are not due and payable within ninety (90) days after their invoice dates; (b)
Accounts owing by a single Account Debtor, including a current Account, if Twenty-Five Percent
(25%) or more of the balance owing by said Account Debtor upon said Accounts is ineligible pursuant
to clause (a) above; (c) Accounts with respect to which the Account Debtor is an officer, director,
shareholder or partner of the Borrower or of any Subsidiary or is an Affiliate; (d) Accounts with
respect to which payment by the Account Debtor is or may be conditional and Accounts commonly known
as bill and hold Accounts or Accounts of a similar or like arrangement; (e) Accounts with respect
to which the Account Debtor is located outside the continental United States of America, unless
such Accounts are backed in full by an irrevocable letter of credit in form and substance
satisfactory to Lender issued by a domestic commercial bank acceptable to Lender; (f) Accounts with
respect to which the Account Debtor is the United States of America, any state of the United States
or any other governmental body or any department, agency or instrumentality of any of the
foregoing, unless such Accounts are duly assigned to Lender in accordance with all applicable
governmental and regulatory rules and regulations

6

 

(including, without limitation, the Federal
Assignment of Claims Act of 1940, as amended, if applicable) so that Lender is recognized by the
Account Debtor to have all of the rights of an assignee of such Accounts; (g) Accounts with respect
to which the Borrower or any Subsidiary is
or may become liable to the Account Debtor for goods sold or services rendered by such Account
Debtor to Borrower or such Subsidiary, but only to the extent of Borrower’s and its Subsidiaries’
then aggregate liability to such Account Debtor (i.e. the excess of the aggregate face amount of
Accounts of such Account Debtor over the aggregate liability of Borrower and its Subsidiaries to
such Account Debtor shall constitute an Eligible Account unless otherwise excepted under this
definition of Eligible Accounts); (h) Accounts with respect to which the goods giving rise thereto
have not been shipped and delivered to and accepted as satisfactory by the Account Debtor thereof
or with respect to which the services performed giving rise thereto have not been completed and
accepted as satisfactory by the Account Debtor thereof; (i) Accounts which are not invoiced (and
dated as of such date) and sent to the Account Debtor thereof concurrently with or not later than
ten (10) Business Days after the shipment and delivery to said Account Debtor of the goods giving
rise thereto or the performance of the services giving rise thereto; (j) Accounts with respect to
which possession and/or control of the goods sold giving rise thereto is held, maintained or
retained by Borrower or any Subsidiary (or by any agent or custodian of Borrower or any Subsidiary)
for the account of or subject to further and/or future direction from the Account Debtor thereof;
(k) Accounts arising from a consignment sale, a “guaranteed sale”, a “sale on approval” or a “sale
or return”; (l) Accounts as to which Lender, at any time or times hereafter, determines, in good
faith, that the prospects of payment or performance by the Account Debtor is or will be impaired in
any material respect; (m) [intentionally omitted]; (n) Accounts which are subject to any dispute,
offset, counterclaim, discount (except for prompt payment discounts that do not exceed Two Percent
(2%) of the invoice amount) or other claim or defense on the part of the Account Debtor or to any
claim on the part of the Account Debtor contesting or denying liability under such Account; (o)
Accounts with respect to which the Account Debtor is located in the State of New Jersey, the State
of Minnesota or the State of West Virginia; provided, however, that such restriction shall not
apply if the Borrower or the Subsidiary Guarantor, as applicable for such Accounts, (i) has filed
and has effective (A) in respect of Account Debtors located in the State of New Jersey, a Notice of
Business Activities Report with the State of New Jersey Division of Taxation for the then current
year, (B) in respect of Account Debtors located in the State of Minnesota, a Minnesota Business
Activity Report with the Minnesota Department of Revenue for the then current year or (C) in
respect of Account Debtors located in the State of West Virginia, a West Virginia Business Activity
Report with the West Virginia Department of Tax and Revenue for the then current year, as
applicable, or (ii) is otherwise exempt from such reporting requirements under the laws of such
State(s); (p) Accounts which are not subject to a first priority perfected security interest in
favor of Lender; (q) Accounts which are Eligible Unbilled Accounts; and (r) Accounts which are not
lawfully owned by the Borrower free and clear of any Lien (other than the Lien granted by Borrower
in favor of Lender) and otherwise continues to be in full conformity with all representations and
warranties made by Borrower to Lender with respect thereto in the Loan Documents.

                    Eligible Institution means (a) any Person that (i) is organized for the purpose of
making equity or debt investments in one or more other Persons and (ii) is an Affiliate of Lender
or Manager, (b) any Person that invests in, or extends credit pursuant to, commercial loans in the
ordinary course of business or (c) any finance company, insurance company or other financial

7

 

institution which temporarily warehouses Loans for Lender or any Person described in clauses (a) or
(b) above.

                    Eligible Unbilled Accounts shall mean all Accounts owing to owing to Borrower or any
Domestic Subsidiary which are less than ten (10) Business Days old following the shipment and
delivery to the Account Debtor thereof of the goods giving rise thereto or the performance of the
services giving rise thereto and for which an invoice has yet to be issued by Borrower or the
applicable Domestic Subsidiary to such Account Debtor, but which otherwise meet all of the
requirements of an Eligible Account (other than clauses (i) and (p) of the definition of Eligible
Account).

                    Environmental Claims means all claims, however asserted, by any governmental,
regulatory or judicial authority or other Person alleging potential liability or responsibility for
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.

                    Excess Cash means, with respect to Borrower and its Subsidiaries, the excess of (i)
the combined cash and Cash Equivalent Investments of Borrower and such Subsidiaries (exclusive of
cash required to cover then outstanding checks) over (ii) $2,000,000.

                    Excess Cash Flow means, with respect to each Fiscal Year, the EBITDA for such Fiscal
Year, minus the sum, without duplication, of (i) scheduled repayments of principal of Term Loans
and other Debt (other than Revolving Loans) of Borrower and the Subsidiaries (in respect of Debt
permitted in accordance with Section 7.1) made during such Fiscal Year, (ii) voluntary
prepayments of the Term Loans pursuant to Section 2.9.1 during such Fiscal Year, (iii) cash
payments (not financed with the proceeds of Debt other than Revolving Loans) made in such Fiscal
Year with respect to Capital Expenditures permitted under Section 7.14.4, (iv) all federal,
state, local and foreign income taxes paid in cash by Borrower and the subsidiaries during such
Fiscal Year or payable with respect to such Fiscal Year by any of them within 75 days after the
last day of such Fiscal Year, (v) all Interest Expense in respect of such Debt permitted in
accordance with Section 7.1 paid in cash by Borrower and the Subsidiaries during such
Fiscal Year or payable with respect to such Fiscal Year by any of them within 30 days after the
last day of such Fiscal Year, (vi) to the extent permitted under Section 7.4, management
fees

8

 

paid in cash to Manager and Staffing Holding LLC during such Fiscal Year or payable to Manager
and Staffing Holding LLC with respect to such Fiscal Year within 30 days of the last day of such
Fiscal Year, and (vii) the first $12,500,000.00 in Staffmark Integration Costs and
other non-recurring restructuring charges, provided such Staffmark Integration Costs and
non-recurring fees, expenses were incurred during the period from December 19, 2007 up to and
including January 21, 2010.

                    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
Lender, quoted for overnight Federal Funds transactions last arranged prior to such day.

                    Fiscal Quarter means a fiscal quarter of a Fiscal Year.

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

                    Fixed Charge Coverage Ratio means, for any Computation Period, the ratio of (a) the
total for such period of EBITDA minus the sum for such period of (i) all income taxes and tax
distributions described in Section 7.4 paid by Borrower and the Subsidiaries within 75 days
of the end of such period, (ii) all Capital Expenditures and (iii) management fees paid in cash to
Manager and Staffing Holding LLC during such period or payable to Manager and Staffing Holding LLC
within 30 days of the end of such period (other than management fees paid concurrent with either
the Closing Date or the Staffmark Acquisition Date or, if in connection with the Closing or the
Staffmark Acquisition, within 15 days after either such date) to (b) the sum for such
period of (i) Interest Expense paid in cash by Borrower and the Subsidiaries, plus (ii) required
payments of principal of Debt (including the Term Loans but excluding the Revolving Loans).

                    Foreign Subsidiary means any Subsidiary that is not incorporated or organized under
the laws of a State within the United States of America or the District of Columbia.

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

                    Funded Debt means, as to any Person, all Debt of such Person that matures more than
one year from the date of its creation (or is renewable or extendible, at the option of such
Person, to a date more than one year from such date).

                    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.

9

 

                    General Intangible has the meaning set forth in the Guarantee and Collateral
Agreement.

                    Governmental Authority means any nation or government, any Federal, state, city, town,
municipality, county, local or other political subdivision thereof or thereto and any department,
commission, board, bureau, instrumentality, agency or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government.

                    Guarantee and Collateral Agreement means the Amended and Restated Guarantee and
Collateral Agreement, dated as of the Closing Date, by each Loan Party (other than Borrower) in
favor of Lender, as amended, restated or otherwise modified from time to time.

                    Hazardous Substances means (a) any element, compound or chemical that is defined,
listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous
substance, extremely hazardous substance or chemical, hazardous waste, special waste, or solid
waste under Environmental Laws or that is likely to cause immediately, or at some future time, harm
to or have an adverse effect on, the environment or risk to human health or safety, including any
pollutant, contaminant, waste, hazardous waste, toxic substance or dangerous good which is defined
or identified in any Environmental Law and which is present in the environment in such quantity or
state that it contravenes any Environmental Law; (b) petroleum and its refined products; (c)
polychlorinated biphenyls; (d) any substance exhibiting a hazardous waste characteristic, including
corrosivity, ignitability, toxicity or reactivity as well as any radioactive or explosive
materials; and (e) any raw materials, building components (including asbestos-containing materials)
and manufactured products containing hazardous substances listed or classified as such under
Environmental Laws.

                    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.

                    Interest Expense means for any period the consolidated interest expense of Borrower
and the Subsidiaries for such period (including all imputed interest on Capital Leases) and any
additional payments required to be made under Section 2.6.2.

                    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
or three 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

10

 

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; (c) Borrower may not select any Interest
Period for a Revolving Loan which would extend beyond the scheduled Termination Date; and (d)
Borrower may not select any Interest Period for a Term Loan if, after giving effect to such selection,
the aggregate principal amount of all Term Loans having Interest Periods ending after any date on
which an installment of the Term Loans is scheduled to be repaid would exceed the aggregate
principal amount of the Term Loans scheduled to be outstanding after giving effect to such
repayment.

                    Inventory has the meaning set forth in the Guarantee and 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.

                    Legal Costs means, with respect to any Person, (a) all reasonable fees and charges of
any counsel (including counsel employed by such Person), accountants, auditors, appraisers,
consultants and other professionals to such Person, and (b) all court costs and similar legal
expenses.

                    Lender has the meaning set forth in the Preamble.

                    Letters of Credit has the meaning set forth in Section 2.12.1.

                    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 1/10,000 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 Lender) 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).

11

 

                    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, pledge, encumbrance, charge or other security interest of any kind, whether arising by
contract, as a matter of law, by judicial process or otherwise.

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

                    Loan Party means Borrower and each Subsidiary.

                    Loans means Revolving Loans and Term Loans.

                    Madison Credit Facility means that certain Credit Agreement, originally dated as of
November 21, 2006 and as amended through the date hereof, among Lender, as borrower, Madison
Capital Funding LLC, as agent and lender, and the other lenders party thereto (as may from time to
time be further amended, restated, supplemented or otherwise modified from time to time).

                    Maintenance Agreement means a Maintenance Agreement by and among each of Compass Group
Diversified Holdings, LLC, as sponsor, the Borrower and the Lender, in the form attached hereto as
Exhibit G, as the same may from time to time be amended, modified, extended, renewed or
restated.

                    Maintenance Fixed Charge Coverage Ratio means, for any Fiscal Quarter, the ratio of:
(a) the total of EBITDA for such Fiscal Quarter minus the sum of (i) all Accrued Cash Income Tax
Expense during such Fiscal Quarter, (ii) all Capital Expenditures paid in cash during such Fiscal
Quarter, (iii) management fees paid under the Management Agreements in cash during such Fiscal
Quarter, (iv) Staffmark Integration Costs and other non-recurring restructuring charges paid in
cash during such Fiscal Quarter, (v) capitalized costs paid in cash during such Fiscal Quarter
incurred by or in respect of the services of the Special Committee of the Board of Directors of
Borrower, and (vi) that portion, if any, of the Amendment Fee paid in cash during such Fiscal
Quarter, plus any Sponsor Investments required to be made in respect of such Fiscal Quarter and
paid in cash within 50 days after the last day of such Fiscal Quarter to (b) the sum of (i)
Interest Expense paid in cash by Borrower and the Subsidiaries in such Fiscal Quarter (net of
interest income received in cash during such Fiscal Quarter), plus (ii) required payments during
such Fiscal Quarter of principal of the Term Loans under Sections 2.10.2 and 2.10.3 plus (iii)
payments during such Fiscal Quarter of any Term Loan Voluntary Paydown Amounts; provided, however,
the amount calculated for clause (a) above shall be increased by the excess, if any, of the
cumulative amounts calculated under clause (a) of this definition for each prior Fiscal Quarter
commencing with the Fiscal Quarter ending June 30, 2009 over the cumulative amounts calculated
under clause (b) of this definition for each prior Fiscal Quarter commencing with the Fiscal
Quarter ending June 30, 2009.

                    Management Agreements means (i) that certain Management Services Agreement, dated as
of October 13, 2000 and as amended through the Closing Date, by and

12

 

between Borrower (f/k/a Compass
CS Inc.) and Compass Group Management LLC, as successor-in-interest to Kilgore Consulting II LLC
pursuant to that certain Assignment and Assumption Agreement, dated as of May 16, 2006, by and
between Kilgore Consulting II LLC
and Compass Group Management LLC, and (ii) that certain Management Services Agreement, dated
as of January 21, 2008, by and between Borrower and Staffing Holding LLC.

                    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 Loan
Parties taken as a whole, (b) a material impairment of the ability of any Loan Party to perform any
of its Obligations under any Loan Document or (c) a material adverse effect upon the rights and
remedies of Lender under any Loan Document, the validity, perfection or priority of any Lien in
favor of Lender on any substantial portion of the Collateral under the Collateral Documents or upon
the legality, validity, binding effect or enforceability against any Loan Party of any Loan
Document.

                    Minimum EBITDA means, for each period set forth in the table set forth in Section
7.14.5, the amount set forth opposite such period under the heading Minimum EBITDA.

                    Mortgage means a mortgage, deed of trust, leasehold mortgage or similar instrument
granting Lender a Lien on a real property interest of any Loan Party, each 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 any Loan Party pursuant to such Disposition net of (i) the reasonable
direct costs relating to such Disposition (including sales commissions and legal, accounting
and investment banking fees, commissions and expenses and, in the case of a Disposition of
any asset, costs of preparing such asset for sale), (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 the applicable Loan Party), (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 the Lien of Lender on the asset
subject to such Disposition and

13

 

(v) with respect to any Disposition, 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, all of the costs and expenses reasonably incurred in connection with the collection of such proceeds, award
or other payments, and any amounts retained by or paid to parties having superior rights to
such proceeds, awards or other payments; and

                         (b) with respect to any issuance of equity securities, the aggregate cash proceeds in
excess of $250,000 per Fiscal Year received by Borrower or any Subsidiary pursuant to such
issuance, net of the reasonable direct costs relating to such issuance (including reasonable
sales and underwriter’s commission).

                    Non-Senior Debt means the Term B Loans plus any unsecured Debt of Borrower or a
Subsidiary which has subordination terms, covenants, pricing and other terms which have been
approved in writing by Lender.

                    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 any Loan Party 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
Lender or its Affiliates, in each case howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, liquidated or unliquidated, disputed or undisputed, legal or
equitable, secured or unsecured, now or hereafter existing, or due or to become due, and whether or
not a claim for any of the foregoing is allowed in whole or in part in any proceeding under the
Bankruptcy Code with respect to any Loan Party.

                    Operating Lease means any lease of (or other agreement conveying the right to use) any
real or personal property by Borrower or any Subsidiary, as lessee, other than any Capital Lease.

                    Paid in Full means, with respect to any Obligations, (a) the payment in full in cash
and performance of all such Obligations, and (b) the termination of all Commitments relating to
such Obligations.

                    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.

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                    Permitted Management Fees means management or consulting fees payable pursuant to the
terms of the Management Agreements in an aggregate amount not to exceed the amount equal to .15% of
“gross revenues” (as such term is described in the Management Agreements) in any fiscal year
provided that, for the Computation Period ending on the last day
of the Fiscal Quarter immediately preceding payment of such fees, (i) the Senior Debt to
EBITDA Ratio is not greater than 3.0:1.0 and (ii) the Total Debt to EBITDA Ratio is not greater
than 4.0:1.0.

                    Permitted Transaction Services Fees means management or consulting fees payable to the
Manager pursuant to the terms of transaction services agreements, if any, between Borrower and the
Manager relating to the performance by the Manager of certain transaction-related services in
connection with the acquisitions of target businesses by the Borrower or its Subsidiaries or
dispositions of the Borrower’s or its Subsidiaries’ property or assets, which transaction services
agreements shall contain market terms and conditions and will be approved by the Board of Directors
of the Borrower and the nominating and corporate governance committee of Lender.

                    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.

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

                    Pro Rata Share means, with respect to Lender or any Assignee, the applicable
percentage (as adjusted from time to time in accordance with the terms hereof) obtained by dividing
(a) the sum of (i) such Person’s Pro Rata Revolving Share of the Revolving Loan Commitment (or if
the Revolving Loan Commitment has terminated, such Person’s Pro Rata Revolving Share of the
Revolving Loans outstanding), (ii) such Person’s Pro Rata Term A Loan Share of the Term A Loans)
and (iii) such Person’s Pro Rata Term B Loan Share of the Term B Loans, by (b) the Total Loan
Commitment.

                    Pro Rata Term A Loan Share means, with respect to Lender or any Assignee, the
applicable percentage (as adjusted from time to time in accordance with the terms hereof) specified
opposite such Person’s name on Annex I which corresponds to the Term A Loans.

                    Pro Rata Term B Loan Share means, with respect to Lender or any Assignee, the
applicable percentage (as adjusted from time to time in accordance with the terms hereof) specified
opposite such Person’s name on Annex I which corresponds to the Term B Loans.

                    Required Equity Contributions means equity contributions from one or more of the
stockholders of Borrower aggregating not less than $35,000,000.

                    Revolving Loan Commitment means, as reduced from time to time pursuant to the terms
hereof, as of the Closing Date, $67,500,000 plus such additional amounts, if any, that

15

 

Lender may,
in its sole discretion, from time to time commit to advance as Revolving Loans in connection with
one or more Acquisitions; provided, however, that no advance in respect of any such additional
Revolving Loan Commitment shall exceed that amount that would cause either the Senior Debt to
EBITDA Ratio to be greater than 3.5:1.0 or the Total Debt to EBITDA Ratio
to be greater than 4.5:1.0, with both such ratios being calculated as of the last day of the
Fiscal Quarter immediately proceeding the Fiscal Quarter in which such additional amount is to be
advanced and on a pro forma basis based on EBITDA for the Computation Period as if the applicable
Acquisition had been consummated on the calculation date, with such adjustments thereto as may be
determined necessary or appropriate by Lender.

                    Revolving Loans has the meaning set forth in Section 2.1.1.

                    Senior Debt means, as of any day, the Revolving Loans, to the extent outstanding at
the end of such day, plus the aggregate principal amount of the Term A Loans outstanding at the end
of such day, plus all obligations, contingent or otherwise, with respect to the face amount of all
letters of credit (whether or not drawn) and banker’s acceptances, if any, issued for the account
of Borrower and outstanding at the end of such day.

                    Senior Debt to EBITDA Ratio means, as of the last day of any Fiscal Quarter, the ratio
of (i) Senior Debt as of such day to (ii) EBITDA for the Computation Period ending on such day.

                    Sponsor Investments means equity contributions required to be made to the Borrower
under the Maintenance Agreement.

                    Staffmark Acquisition means the acquisition by Borrower of Staffmark Investment LLC
and its Subsidiaries pursuant to the Staffmark Acquisition Agreement.

                    Staffmark Acquisition Agreement means that certain Purchase Agreement, dated as of
December 19, 2007, by and among Staffing Holding LLC, as seller, Staffmark Investment LLC, CBS
Personnel Holdings, Inc., as buyer, and the other Persons party thereto.

                    Staffmark Acquisition Date means January 21, 2008.

                    Staffmark Integration Costs means those non-recurring fees, costs and expenses
incurred by Borrower and its Subsidiaries in order to integrate the business and operations of
Staffmark Investment LLC and its Subsidiaries into Borrower’s business and operation, relocate the
corporate headquarters functions of Staffmark Investment LLC and consolidate certain offices and
operations, including consulting and professional fees, travel expenses, duplicative payroll costs,
retention bonuses, severance payments and leases expenses incurred to close offices.

                    Stock Subscription Agreements means subscription agreements by one or more
stockholders of the Company pursuant to which such stockholders subscribe for, in the aggregate,
not less than $35,000,000 of equity capital of Borrower and otherwise reasonably acceptable to
Lender with a commitment to close thereon on or before May 30, 2009.

16

 

                    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
Subsidiary or Subsidiaries herein shall be a reference to Subsidiary or Subsidiaries of Borrower.

                    Target EBITDA Amount means, for each period set forth in the table set forth in
Section 7.14.5, the amount set forth opposite such period under the heading Target EBITDA
Amount.

                    Term A Loan Commitment means, as of the Closing Date, $47,535,620, plus such
additional amounts, if any, that Lender may, in its sole discretion, from time to time advance as
Term A Loans in connection with one or more Acquisitions; provided, however, that no such
additional Term A Loan Commitment shall exceed that amount that would cause either the Senior Debt
to EBITDA Ratio to be greater than 3.5:1.0 or the Total Debt to EBITDA Ratio to be greater than
4.5:1.0, with both such ratios being calculated as of the last day of the Fiscal Quarter
immediately proceeding the Fiscal Quarter in which such additional amount is to be advanced and on
a pro forma basis based on EBITDA for the Computation Period as if the applicable Acquisition had
been consummated on the calculation date, with such adjustments thereto as may be determined
necessary or appropriate by Lender.

                    Term A Loan Maturity Date means January 21, 2014 or such earlier date on which the
Commitments terminate pursuant to Section 8.

                    Term A Loans means the principal amount outstanding from time to time of loans from
Lender to Borrower pursuant to the Term A Loan Commitment.

                    Term B Loan Commitment means $40,000,000, plus such additional amounts, if any, that
Lender may, in its sole discretion, from time to time advance as Term B Loans in connection with
one or more Acquisitions; provided, however, that no such additional Term B Loan Commitment shall
exceed that amount that would cause either the Senior Debt to EBITDA Ratio to be greater than
3.5:1.0 or the Total Debt to EBITDA Ratio to be greater than 4.5:1.0, with both such ratios being
calculated as of the last day of the Fiscal Quarter immediately proceeding the Fiscal Quarter in
which such additional amount is to be advanced and on a pro forma basis based on EBITDA for the
Computation Period as if the applicable Acquisition had been consummated on the calculation date,
with such adjustments thereto as may be determined necessary or appropriate by Lender.

                    Term B Loan Maturity Date means January 21, 2014 or such earlier date on which the
Commitments terminate pursuant to Section 8.

                    Term B Loans means the principal amount outstanding from time to time of loans from
Lender to Borrower pursuant to the Term B Loan Commitment.

                    Term Loan Voluntary Paydown Amount means the aggregate of all voluntary prepayments,
if any, made after the Closing Date pursuant to Section 2.9.1 with respect to which

17

 

Borrower requests in the applicable Voluntary Prepayment Notice that such prepayment increase the
maximum Stated Amount of Letters of Credit.

                    Term Loans means the Term A Loans and the Term B Loans, collectively.

                    Termination Date means January 21, 2014 or such earlier date on which the Revolving
Loan Commitment terminates pursuant to Section 2.9 or Section 8.

                    Total Debt means, as of any day, all Debt (other than Debt described in clause (g) of
the definition thereof and Debt of any Loan Party to another Loan Party) of Borrower and the
Subsidiaries at the end of such day, determined on a consolidated basis.

                    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) EBITDA for the Computation Period ending on such day.

                    Total Loan Commitment means at any date of determination, the sum of (i) the Revolving
Loan Commitment (or if the Revolving Loan Commitment has terminated, the Revolving Loans then
outstanding) at the end of such date plus (ii) the outstanding principal balance of the Term Loans
at the end of such date.

                    Voluntary Prepayment Notice has the meaning set forth in Section 2.9.1.

                    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. Unless the context
otherwise requires, each reference to Wholly-Owned Subsidiary or Wholly-Owned Subsidiaries herein
shall be a reference to Wholly-Owned Subsidiary or Wholly-Owned Subsidiaries of Borrower.

     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; (g) this Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel

18

 

to Lender, Borrower and the other parties
thereto and are the products of all parties; accordingly, they shall not be construed against
Lender merely because of Lender’s involvement in their preparation; and (h) the term “or” has,
except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.”

Section 2. Credit Facilities.

     2.1 Commitments; Loans.

                    On and subject to the terms and conditions of this Agreement, Lender agrees as follows:

          2.1.1 Revolving Loan Commitments.

                    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
amounts as Borrower may request from Lender; provided, that after giving effect to such Revolving
Loans, the Revolving Loans outstanding will not at any time exceed the Revolving Loan Commitment
or, if less, the Borrowing Availability.

          2.1.2 Term Loans.

                    As of the Closing Date, (a) the principal amount of Term A Loans outstanding is the Term A
Loan Commitment amount, and (b) the principal amount of Term B Loans outstanding is the Term B Loan
Commitment amount. The Lender shall have no obligation to make Term Loans after the Closing Date.
Term Loans which are repaid or prepaid by Borrower, in whole or in part, may not be re-borrowed.

     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 three
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 Lender and each
Assignee will have a ratable share (according to its Pro Rata Revolving 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 make, and Lender shall not be obligated to fund, more
than two (2) Revolving Loan borrowings during any single calendar week; provided, however, Borrower
may from time to time request additional Revolving Loan borrowings for emergency funding purposes
and Lender shall use its best efforts to fund such emergency Revolving Loan borrowings.

19

 

          2.2.2 Borrowing.

                    Borrower shall give written notice or telephonic notice (followed immediately by written
confirmation thereof) to Lender of each proposed borrowing of a Revolving Loan not later than (a)
in the case of a Base Rate borrowing, 1:00 p.m. New York City time at least two (2) Business Days
prior to the proposed date of such borrowing, and (b) in the case of a LIBOR borrowing, 1:00 p.m.
New York City time at least four (4) Business Days prior to the proposed date of such borrowing.
Each such notice shall be effective upon receipt by Lender, 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 LIBOR borrowing, the initial Interest Period therefor. So long
as Borrower’s request is timely made and the conditions precedent set forth in Section 4
with respect to such borrowing have been satisfied, Lender shall pay over the proceeds of such
borrowing request 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 $250,000 or of any
integral multiple of $50,000 in excess thereof, and each LIBOR borrowing shall be in an aggregate
amount of $250,000 or of any integral multiple of $50,000 in excess thereof.

          2.2.3 Conversion; Continuation.

               (a) Subject to Section 2.2.1, Borrower may, upon irrevocable written notice to Lender
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 $250,000 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 $250,000 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.

               (b) Borrower shall give written or telephonic notice (followed immediately by written
confirmation thereof) to Lender of each proposed conversion or continuation not later than (i) in
the case of conversion into Base Rate Loans, 1:00 p.m. New York City time at least one Business Day
prior to the proposed date of such conversion and (ii) in the case of conversion into or
continuation of LIBOR Loans, 1:00 p.m. New York City time at least four Business Days prior to the
proposed date of such conversion or continuation, specifying in each case in the form of a
Conversion/Continuation Notice: (A) the proposed date of conversion or continuation; (B) the
aggregate amount of Loans to be converted or continued; (C) the type of Loans resulting from the
proposed conversion or continuation; and (D) 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.

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     2.3 [Reserved]

     2.4 Certain Conditions.

                    Notwithstanding any other provision of this Agreement, Lender shall not have an obligation to
make any Loan, or to permit the continuation of any expiring LIBOR Loan as a LIBOR Loan, or to
permit any conversion into any LIBOR Loans, if an Event of Default or Default exists.

     2.5 Loan Accounting.

          2.5.1
Recordkeeping.

                    Lender shall record in its records the date and amount of each Loan made and 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 Interest.

          2.6.1 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
which 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; and (b) at all times while such Loan is a LIBOR
Loan, at a rate per annum equal to the LIBOR Rate applicable to each Interest Period for such Loan
plus the Applicable Margin; provided, that (i) at any time an Event of Default exists, if requested
by Lender, 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
Lender, 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 Lender 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.

          2.6.2 Additional Interest.

                    Subject to the last sentence of Section 2.6.1, Borrower promises to pay for each
period during which the financial covenant set forth in Section 7.14.5 applies, promptly
upon determining the amount of any such payment, that amount, if any, that is equal to the greater
of

21

 

(i) the excess of the Target EBITDA Amount for such period over actual EBITDA for such period
multiplied by 0.25, and (ii) $50,000; provided, however, no such payment shall be required for a
period unless actual EBITDA for such period is equal to or greater than Minimum EBITDA for such
period but less than the Target EBITDA Amount for such period.

          2.6.3 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 in cash. Accrued interest on each LIBOR Loan shall
be payable (a) on the last day of each Interest Period relating to such Loan, (b) upon a
prepayment of such Loan in accordance with Section 2.9 and (c) 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 2.6.1.

          2.6.4 Setting and Notice of LIBOR Rates.

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

          2.6.5 Computation of Interest.

                    Interest shall be computed by Lender for the actual number of days elapsed on the basis of a
year of (a) 365/366 days for interest calculated at the Base Rate and (b) 360 days for interest
calculated at the LIBOR Rate. The applicable interest rate for each Base Rate Loan shall change
simultaneously with each change in the Base Rate. Lender shall determine each interest rate
applicable to the Loans and its determination thereof, and its computation of interest thereon,
shall be conclusive in the absence of manifest error.

     2.7 Fees.

          2.7.1 Commitment Fee.

                    For the period from the Closing Date to the Termination Date, Borrower agrees to pay to Lender
a Commitment Fee equal to the Applicable Margin multiplied by the amount by which the Revolving
Loan Commitment exceeds the average daily Revolving Loans outstanding. 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 by Lender for the actual number of days elapsed on the basis of a
year of 360 days.

          2.7.2 Additional Commitment Fees.

                    Borrower agrees to pay to Lender on each date, if any, on which (i) additional Term A Loan
commitments are made (or additional Term A Loans advanced) or Revolving Loan

22

 

commitments are made
after the Closing Date an amount equal to 1.0% multiplied by the amount of each such post-Closing
Date advance or commitment, and (ii) additional Term B Loan commitments are made) after the Closing
Date an amount equal to 2.0% multiplied by the amount of each such post-Closing Date commitment.

          2.7.3 [Reserved]

          2.7.4 Letter of Credit Fee.

                    Borrower agrees, promptly upon being invoiced by Lender (but no more frequently than
quarterly), to reimburse Lender for all fees and expenses paid by Lender under the Madison Credit
Facility in respect of letters of credit issued thereunder for the benefit and at the request of
Borrower; provided, however, such fees and expenses shall not exceed the sum of (i) that amount
that equals the “Applicable Margin” in effect from time to time under the Madison Credit Facility
for Revolving Loans under the Madison Credit Facility which are LIBOR rate loans multiplied by the
aggregate stated amount of all such letters of credit then outstanding, where such fee is computed
for the actual number of days elapsed on the basis of a year of 360 days, plus (ii) with respect to
each such letter of credit, (a) such fees and expenses as the issuing lender customarily requires
in connection with the issuance, negotiation, processing and/or administration of letters of credit
in similar situations and (b) a letter of credit fronting fee in the amount and at the times agreed
to by Lender and the issuing lender not to exceed 0.25% per annum; and provided further, however,
that Borrower’s reimbursement obligation with respect to clauses (i) and (ii)(b) above shall not
exceed 4.25% of the aggregate stated amount of all letters of credit outstanding.

     2.8 Commitment Reduction.

          2.8.1 Voluntary Reduction or Termination of Revolving Loan Commitment.

                    Borrower may from time to time on at least five Business Days’ prior written notice received
by Lender permanently reduce the Revolving Loan Commitment to an amount not less than the Revolving
Loans. Any such reduction shall be in an amount not less than $500,000 or a higher integral
multiple of $100,000. Concurrently with any reduction of the Revolving Loan Commitment to zero,
Borrower shall pay all interest on the Revolving Loans and all commitment fees.

     2.9 Prepayment.

          2.9.1 Voluntary Prepayment.

                    Borrower may from time to time, on at least one Business Day’s written notice or telephonic
notice (if a telephonic notice, followed immediately by written confirmation thereof), which notice
and confirmation (each a “Voluntary Prepayment Notice”) shall specify that Borrower is
electing to voluntarily prepay the Term Loans pursuant to this Section 2.9.1 and that portion, if
any, of such prepayment that will constitute a Term Loan Voluntary Paydown Amount, to Lender not
later than 1:00 p.m. New York City time on such day, prepay the Term Loans in whole or in part;
provided that Borrower may not prepay all or any portion of the Term B Loans if, either immediately
prior to or after giving effect to any such prepayment, any portion

23

 

of the Revolving Loans or Term A Loans are outstanding. Such notice to Lender shall
specify the Loans to be prepaid and the date and amount of prepayment. Any such partial prepayment
shall be in an amount equal to $500,000 or a higher integral multiple of $100,000. All prepayments
of Term Loans pursuant to this Section 2.9.1 shall be applied pursuant to Section
2.9.3. No such prepayments shall reduce or otherwise be applied to the repayments required to
be made pursuant to Section 2.10.2 or Section 2.10.3.

          2.9.2 Mandatory Prepayment.

               (a) Subject to Section 2.9.2(c), Borrower shall prepay, first, the Term A Loans until
Paid in Full, second, the Term B Loans until Paid in Full (in each case in the inverse order of
maturity to the remaining installments thereof), and third, the Revolving Loans until Paid in Full,
at the following times and in the following amounts:

          (i) within ten (10) Business Days of the receipt by Borrower or any Subsidiary of any
Net Cash Proceeds from any Disposition, in an amount equal to such Net Cash Proceeds;

          (ii) within ten (10) Business Days of the receipt by Borrower or any Subsidiary of any
Net Cash Proceeds from any issuance of its equity securities (other than equity securities
that are issued pursuant to Section 7.11(a)) or the issuance of Debt (other than
Debt permitted by Section 7.1), in an amount equal to such Net Cash Proceeds; and

          (iii) within 90 days after the end of each Fiscal Year (commencing with Fiscal Year
2006), in an amount equal to the ECF Percentage of Excess Cash Flow for such Fiscal Year.

               (b) If on any day the Revolving Loans then outstanding exceed Borrowing Availability, whether
pursuant to a reduction of the Revolving Loan Commitment pursuant to Section 2.8.1 or
otherwise, Borrower shall immediately prepay Revolving Loans in an amount sufficient to eliminate
such excess.

               (c) Notwithstanding Section 2.9.2(a), on each Monday during the term of the Revolving
Loan Commitment and for so long as there are Revolving Loans outstanding, Borrower shall prepay the
Revolving Loans until the outstanding amount thereof is reduced to zero in an amount equal to the
Excess Cash at the time of such payment. Payments pursuant to this Section 2.9.2(c) shall
not result in a reduction in the Revolving Loan Commitment.

               (d) If upon receipt of any Sponsor Investment there are Revolving Loans then outstanding,
Borrower shall immediately prepay Revolving Loans with the proceeds of such Sponsor Investment
until the outstanding amount of Revolving Loans is reduced to zero.

          2.9.3 All Prepayments.

               (a) 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. All prepayments of a Loan shall be applied first to that portion of such

24

 

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. All prepayments of Term Loans shall be
applied first to Term A Loans until Paid in Full and then to Term B Loans and, in each case, in the
inverse order of maturity to the remaining installments thereof.

               (b) Borrower shall give written notice or telephonic notice (followed immediately by written
confirmation thereof) to Lender not later than 1:00 p.m. New York City time at least one Business
Day prior to each mandatory prepayment pursuant to clause (a) of Section 2.9.2.

     2.10 Repayment.

          2.10.1 Revolving Loans.

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

          2.10.2 Term A Loans.

                    The Term A Loans shall be subject to quarterly amortization in the principal amount of
$2,000,000, with each such quarterly amount being due and payable on the last day of each Fiscal
Quarter, commencing June 30, 2009 and continuing to the Term A Loan Maturity Date, on which date
the then outstanding Term A Loans shall be paid in full.

          2.10.3 Term B Loans.

                    The Term B Loans shall be subject to quarterly amortization in the principal amount of
$250,000, with each such quarterly amount being due and payable on the last day of each Fiscal
Quarter, commencing June 30, 2009 and continuing to the Term B Loan Maturity Date, on which date
the then outstanding Term B Loans shall be paid in full.

     2.11 Payment.

          2.11.1 Making Payments.

                    All payments of principal of or interest on the Notes, and of all fees, shall be made by
Borrower to Lender without setoff, recoupment or counterclaim and in immediately available funds by
wire transfer initiated by Borrower by not later than 1:00 p.m. New York City time on the date due.
Any such wire of funds not received by Lender prior to 2:00 p.m. New York City time shall be
deemed to have been received by Lender on the following Business Day.

          2.11.2 Application of Payments and Proceeds.

               (a) Except as set forth in Section 2.9.2 and Section 2.9.3, and subject to the
provisions of Sections 2.11.2(b) and 2.11.2(c) below, each payment of principal
shall be applied to such Loans as Borrower shall direct by notice to be received by Lender on or
before the date of such payment or, in the absence of such notice, as Lender shall determine in its
discretion.

25

 

               (b) If an Acceleration Event shall have occurred and be continuing, notwithstanding anything
herein or in any other Loan Document to the contrary, Lender shall apply all or any part of
payments in respect of the Obligations and proceeds of Collateral, in each case as received by
Lender, 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
Lender under this Agreement or any other Loan Document, and any other Obligations owing to
Lender in respect of sums advanced by Lender 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 Lender), until Paid in Full;

          (ii) SECOND, to the payment of all fees, costs, expenses and indemnities due and owing
to Lender, other than in respect of Term B Loans, until Paid in Full;

          (iii) THIRD, to the payment of all accrued and unpaid interest due and owing to Lender,
other than in respect of Term B Loans, until Paid in Full;

          (iv) FOURTH, to the payment of all principal of the Loans, other than Term B Loans, due
and owing until Paid in Full;

          (v) FIFTH, to the payment of all other Obligations owing to Lender, other than
Obligations owing in respect of Term B Loans, until Paid in Full;

          (vi) SIXTH, to the payment of all fees, costs, expenses and indemnities due and owing
to Lender in respect of Term B Loans until Paid in Full;

          (vii) SEVENTH, to the payment of all accrued and unpaid interest due and owing to
Lender in respect of Term B Loans until Paid in Full;

          (viii) EIGHTH, to the payment of all principal of Term B Loans due and owing until Paid
in Full; and

          (ix) NINTH, to the payment of all other Obligations owing to Lender in respect of Term
B Loans 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,
Lender shall apply all or any part of payments in respect of the obligations and proceeds of
Collateral, in each case as received by Lender, to the payment of the Obligations in such order as
Lender may elect. In the absence of a specific determination by Lender, payments in respect of the
Obligations and proceeds of Collateral received by Lender shall be applied in the following order:

          (i) FIRST, to the payment of all fees, costs, expenses and indemnities due and owing to
Lender under this Agreement or any other Loan Document, and any other Obligations owing to
Lender in respect of sums advanced by Lender 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 Lender), until Paid in Full;

26

 

          (ii) SECOND, to the payment of all fees, costs, expenses and indemnities due and owing
to Lender, other than in respect of Term B Loans, until Paid in Full;

          (iii) THIRD, to the payment of all accrued and unpaid interest due and owing to Lender,
other than in respect of Term B Loans, until Paid in Full;

          (iv) FOURTH, to the payment of all principal of the Loans, other than Term B Loans,
then due and owing until Paid in Full;

          (v) FIFTH, to the payment of Revolving Loans not then due and owing until Paid in Full;

          (vi) SIXTH, to the payment of all other Obligations owing to Lender, other than
Obligations owing in respect of Term B Loans, until Paid in Full;

          (vii) SEVENTH, to the payment of all fees, costs, expenses and indemnities due and
owing to Lender in respect of Term Loans until Paid in Full;

          (viii) EIGHTH, to the payment of all accrued and unpaid interest due and owing to
Lender in respect of Term B Loans until Paid in Full;

          (ix) NINTH, to cash collateralize Obligations consisting of Term B Loans not yet due
and owing until Paid in Full; and

          (x) TENTH, to the payment of all other Obligations owing to Lender in respect of Term B
Loans until Paid in Full.

          2.11.3 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.

          2.11.4 Set-off.

                    Borrower agrees that 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, 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 Lender.

     2.12 Letters of Credit.

          2.12.1 At the request of Borrower, Lender will issue (or will cause to be issued under the
Madison Credit Facility) from time to time before the date which is 30 days prior to the

27

 

Termination Date either (at Lender’s election) (a) letters of credit and/or (b) participation
agreements confirming payment to issuers (reasonably acceptable to 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 Lender (each
such participation agreement, a “Letter of Credit”). After giving effect to each such issuance,
the aggregate Stated Amount of all Letters of Credit (whether issued pursuant to this Agreement or
under the Madison Credit Facility) shall not at any time exceed $70,000,000 plus the aggregate Term
Loan Voluntary Paydown Amount, if any, as of such time. “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.

          2.12.2 Borrower shall give notice to Lender of the proposed issuance of each Letter of Credit
on a Business Day which is at least fifteen (15) Business Days (or such lesser number of days as
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 form acceptable to Lender, duly
executed by Borrower, together with such other documentation as Lender may request in support
thereof, it being understood that each Letter of Credit application 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 the 30 days prior to the scheduled Termination
Date). So long as Lender has not received written notice that the conditions precedent set forth
in Section 4.2 have not been satisfied, Lender shall issue (or cause to be issued) such Letter of
Credit on the requested issuance date.

          2.12.3 Borrower hereby unconditionally and irrevocably agrees to reimburse Lender for each
payment or disbursement made by 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. Lender shall
promptly notify Borrower whenever any demand for payment is made under any Letter of Credit;
provided, that the failure of Lender to so notify Borrower shall not affect the rights of Lender in
any manner whatsoever. Any amount not reimbursed on the date of such payment or disbursement
shall bear interest from the date of such payment or disbursement to the date that 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.

          2.12.4 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 other right which any Loan Party 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), 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 any Loan Party and the
beneficiary named in any Letter of Credit), (iii) the validity, sufficiency or genuineness of any
document which 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

28

 

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.

          2.12.5 If an Event of Default has occurred and is continuing, if requested in writing by
Lender, Borrower shall immediately cash collateralize in full all the Letters of Credit in a manner
acceptable to Lender.

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
taxes imposed on or measured by Lender’s net income by the jurisdiction under which Lender is
organized or conducts business (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 Lender an official receipt or other documentation satisfactory to Lender
evidencing such payment to such authority; and (iii) pay to Lender such additional amount or
amounts as is necessary to ensure that the net amount actually received by Lender will equal the
full amount Lender would have received had no such withholding or deduction been required. If any
Taxes are directly asserted against Lender with respect to any payment received by Lender
hereunder, 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 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 Lender the required receipts or other required documentary evidence, Borrower shall
indemnify Lender for any incremental Taxes, interest or penalties that may become payable by Lender
as a result of any such failure.

               (c) Each Assignee that (i) is organized under the laws of a jurisdiction other than the United
States of America and (ii) becomes an assignee of an interest under this Agreement under
Section 9.8.1 after the Closing Date (unless such Person was already a Lender hereunder
immediately prior to such assignment) shall execute and deliver to Borrower and Lender one or more
(as Borrower or Lender 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 Person’s entitlement to exemption from withholding or deduction of
Taxes. Borrower shall not be required to pay additional amounts to

29

 

any Person 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 Person or Lender to comply
with this paragraph.

     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 Lender with any request or directive
(whether or not having the force of law) of any such authority, central bank or comparable agency
shall impose on Lender any other condition affecting its LIBOR Loans, its Note or its obligation to
make LIBOR Loans; and the result of anything described above is to increase the cost to (or to
impose a cost on) Lender of making or maintaining any LIBOR Loan, or to reduce the amount of any
sum received or receivable by Lender under this Agreement or under its Note with respect thereto,
then upon demand by 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), Borrower shall
pay directly to Lender such additional amount as will compensate 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 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 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 Lender or
any Person controlling 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 Lender’s or such controlling Person’s capital as
a consequence of Lender’s obligations hereunder to a level below that which Lender or such
controlling Person could have achieved but for such change, adoption, phase-in or compliance
(taking into consideration Lender’s or such controlling Person’s policies with respect to capital
adequacy) by an amount deemed by Lender or such controlling Person to be material, then from time
to time, upon demand by 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), Borrower shall
pay to Lender such additional amount as will compensate 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 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 Lender reasonably determines (which determination shall be binding and conclusive on
Borrower) that, by reason of circumstances affecting the interbank Eurodollar

30

 

market, adequate and reasonable means do not exist for ascertaining the applicable LIBOR Rate,
then Lender shall promptly notify the Borrower thereof and, so long as such circumstances shall
continue, (a) Lender shall be under no 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.

     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 Lender
cause a substantial question as to whether it is) unlawful for Lender to make, maintain or fund
LIBOR Loans, then Lender shall promptly notify each of the other parties hereto and, so long as
such circumstances shall continue, (a) Lender shall have no obligation to make or convert any Base
Rate Loan into a LIBOR Loan (but shall make Base Rate Loans in each case in an amount equal to the
amount of LIBOR Loans which would be made or converted into by 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 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 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 Lender (which demand shall be accompanied by a
statement setting forth the basis for the amount being claimed), Borrower will indemnify Lender for
any loss, cost, liability, funding loss, or expense (in each case whether by reason of any
reduction in yield, the liquidation or reemployment of any deposit or other funds acquired by the
Lender, the fixing of any interest rate payable on LIBOR Loans, or otherwise) incurred directly or
indirectly as a result of (a) any payment of any Obligation bearing a rate based upon the LIBOR
Rate other than on the last day of the applicable LIBOR Interest Period for such Obligation, (b)
any failure by Borrower to borrow an Obligation on the date specified in Borrower’s written notice
of intention to borrow such Obligation at a rate based upon the LIBOR Rate, (c) any failure by
Borrower to pay an Obligation bearing a rate based upon the LIBOR Rate on any date for payment
specified in Borrower’s written notice of intention to pay such Obligation, or (d) other event
pursuant to which a LIBOR Rate Loan is converted to a Base Rate Loan.

     3.6 Conclusiveness of Statements; Survival.

                    Determinations and statements of Lender pursuant to this Section 3 shall be conclusive
absent demonstrable error. Lender may use reasonable averaging and attribution methods in
determining compensation under this Sections 3 and the provisions of such Sections shall
survive repayment of the Loans, cancellation of the Notes and termination of this Agreement.

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Section 4.
Conditions Precedent.

     4.1
Conditions Precedent to Execution of this Agreement.

                    Execution of this Agreement by Lender is subject to the following conditions precedent, each
of which shall be satisfactory in all respects to Lender:

          4.1.1 Availability.

                    Assuming the Required Equity Contributions and payment of the Debt to be Repaid were to occur
on the Closing Date, Borrowing Availability shall exceed the Revolving Loans outstanding on the
Closing Date by at least $10,000,000.

          4.1.2 Required Equity Contributions; Debt to be Repaid.

                    The Required Equity Contributions, or commitments with respect thereto satisfactory to Lender,
have been (or concurrently with the Closing will be) received and the Debt to be Repaid, upon
receipt of the Required Equity Contributions, will be Paid in full.

          4.1.3 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, including an amendment fee payable to the Lender in
the amount of $250,000 (the “Amendment Fee”).

          4.1.4 Delivery of Loan Documents.

                    Borrower shall have delivered the following documents in form and substance satisfactory to
Lender (and, as applicable, duly executed by each Loan Party a party thereto and dated the Closing
Date or an earlier date satisfactory to Lender):

               (a) Agreement. This Agreement.

               (b) Note. The Note in favor of Lender representing the Loans.

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

               (d) Maintenance Agreement. A fully-executed copy of the Maintenance Agreement and of
any pledge agreement, guaranty or other document, instrument or agreement delivered in connection
with the Maintenance Agreement.

               (e) Subscription Agreements. A fully-executed copy of each Stock Subscription
Agreement.

               (f) Authorization Documents. For each Loan Party and sponsor-party to the Maintenance
Agreement, such Person’s (i) charter (or similar formation document), certified by

32

 

the appropriate Governmental Authority, (ii) good standing certificates in its state of
incorporation (or formation) and in each other state requested by Lender, (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
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, all certified by its secretary or
an assistant secretary (or similar officer) as being in full force and effect without modification.

               (g) Borrowing Base Certificate. Borrowing Base Certificate reflecting required
information as of March 31, 2009.

               (h) Other Documents. Such other certificates, documents and agreements as Lender may
reasonably request.

     4.2 Additional Credit Extensions.

                    The obligation of Lender to make each additional Loan is subject to the additional conditions
precedent that (unless such conditions are waived by Lender), both before and after giving effect
to any borrowing, (a) the representations and warranties of Borrower and each other Loan Party 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 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.

Section 5. Representations and Warranties.

                    To induce Lender to enter into this Agreement and to induce Lender to make Loans hereunder,
Borrower represents and warrants to Lender that:

     5.1 Organization.

                    Borrower is a corporation validly existing and in good standing under the laws of the State of
Delaware; each other Loan Party is validly existing and in good standing under the laws of the
jurisdiction of its organization; and each Loan Party 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 other Loan Party is duly authorized to execute and deliver each Loan
Document and each agreement memorializing the Required Equity Contributions to which it is a party,
Borrower is duly authorized to borrow monies hereunder, and each of Borrower and each other Loan
Party is duly authorized to perform its Obligations

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under each Loan Document to which it is a party. The execution, delivery and performance by
Borrower of this Agreement and by each of Borrower and each other Loan Party of each Loan Document
to which it is a party, and the borrowings by Borrower hereunder, 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 Loan Party or (iii) any agreement, indenture, instrument or other document, or any judgment,
order or decree, which is binding upon Borrower or any other Loan Party or any of their respective
properties or (c) require, or result in, the creation or imposition of any Lien on any asset of
Borrower, any Subsidiary or any other Loan Party (other than Liens in favor of Lender created
pursuant to the Collateral Documents).

     5.3 Validity; Binding Nature.

                    Each of this Agreement and each other Loan Document to which Borrower or any other Loan Party
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 financial statements of Borrower and the Subsidiaries as at the
Fiscal Year ending December 31, 2007, and the unaudited consolidated financial statements of
Borrower and the Subsidiaries as at the Fiscal Year ending December 31, 2008 (the “Balance
Sheet Date”) and the period ending March 31, 2009, copies of each of which have been delivered
pursuant hereto, were prepared in accordance with GAAP (subject, 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 financial projections (including an operating budget and a cash flow
budget) of Borrower and the Subsidiaries for the three (3) year period commencing January 1, 2009
delivered to Lender 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 pro forma balance sheet of Borrower and the Subsidiaries as at the
Closing Date, adjusted to give effect to the consummation of the Required Equity Contributions and
the repayment of the Debt to be Repaid as if such transactions had occurred on such date, is
consistent in all material respects with such projections.

     5.5 No Material Adverse Change.

                    As of the Closing Date, since the Balance Sheet Date, no event has occurred that could
reasonably be expected to result in a Material Adverse Effect with respect to the Loan Parties.

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     5.6 Litigation.

                    No litigation (including derivative actions), arbitration proceeding or governmental
investigation or proceeding is pending or, to Borrower’s knowledge, threatened against any Loan
Party which, if adversely determined, 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, neither
Borrower nor any other Loan Party has any material Contingent Obligations not listed on
Schedule 7.1.

     5.7 Ownership of Properties; Liens.

                    Each of Borrower and each other Loan Party 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 Borrower and the other Loan Parties are duly
authorized and validly issued, fully paid, non-assessable, and free and clear of all Liens other
than those in favor of Lender, and such securities were issued in compliance with all applicable
state and federal laws concerning the issuance of securities. Schedule 5.8 sets forth the
authorized equity securities of each Loan Party as of the Closing Date immediately after
consummation of the transactions contemplated by the Stock Subscription Agreements. All of the
issued and outstanding equity of Borrower is owned as set forth on Schedule 5.8 as of the
Closing Date, and all of the issued and outstanding equity of each Subsidiary is, directly or
indirectly, owned by Borrower. 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 other Loan Party.

     5.9 Pension Plans.

                    (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 Loan Party of any
material liability, fine or penalty. All contributions (if any) have been made to any
Multiemployer Pension Plan that are required to be made by any Loan Party 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 any Loan Party 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

35

 

occurred which, if continued, could result in a withdrawal or partial withdrawal from any such
plan, and neither any Loan Party 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.

                    Neither Borrower nor any other Loan Party is an “investment company” within the meaning of the
Investment Company Act of 1940.

     5.11 Public Utility Holding Company Act.

                    Neither Borrower nor any other Loan Party is a “holding company”, or a “subsidiary company” of
a “holding company”, or an “affiliate” of a “holding company” or of a “subsidiary company” of a
“holding company”, within the meaning of the Public Utility Holding Company Act of 1935.

     5.12 Margin Stock.

                    Neither Borrower nor any other Loan Party 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 is secured directly or indirectly by Margin Stock.

     5.13 Taxes.

                    Each of Borrower and each other Loan Party 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 which stay the imposition of any penalty, fine or Lien resulting from the
non-payment thereof 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 each borrowing
hereunder and the use of the proceeds thereof, with respect to each of Borrower and each other Loan
Party, individually, (a) the fair 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 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.

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     5.15 Environmental Matters.

                    The on-going operations of Borrower and each other Loan Party 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
other Loan Party 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 other Loan Party are in compliance
with all material terms and conditions thereof, except where the failure to do so could not
reasonably be expected to result in material liability to Borrower or any other Loan Party and
could not reasonably be expected to result in a Material Adverse Effect. None of Borrower, any
other Loan Party 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. 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 other Loan Party that could reasonably be expected to result in a
Material Adverse Effect. Neither Borrower nor any other Loan Party 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 other Loan Party 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
other Loan Party operates. A true and complete listing of such insurance as of the Closing Date,
including issuers, coverages and deductibles, is set forth on Schedule 5.16.

     5.17 Information.

                    Borrower has disclosed to Lender all agreements, instruments and corporate or other
restrictions to which any Loan Party is subject, and all other matters known to any Loan Party,
that, individually or in the aggregate, could reasonably be expected to result in a Material
Adverse Effect. All information heretofore or contemporaneously herewith furnished in writing by
Borrower or any other Loan Party to 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 Borrower or any Loan Party to 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 Lender 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).

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     5.18 Intellectual Property.

                    Borrower and each other Loan Party 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 and the other Loan Parties, without any infringement upon rights of others which could
reasonably be expected to have a Material Adverse Effect. Set forth on Schedule 5.18 is a
complete and accurate list as of the Closing Date of all such material licenses, permits, patents,
patent applications, trademarks, trademark applications, service marks, tradenames, copyrights,
copyright applications, franchises, authorizations, non-governmental licenses and permits and other
intellectual property rights of each Loan Party. No slogan or other advertising device, product,
process, method, substance, part or other material now employed, or now contemplated to be
employed, by any Loan Party infringes upon or conflicts with any rights owned by any other Person,
and no claim or litigation regarding any of the foregoing is pending or threatened, except for such
infringements and conflicts which could not reasonably be expected to result in, individually or in
the aggregate, a Material Adverse Effect. To the knowledge of each Loan Party, no patent,
invention, device, application, principle or any statute, law, rule, regulation, standard or code
is pending or proposed, which, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.

     5.19 Restrictive Provisions.

                    Neither Borrower nor any other Loan Party 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, neither Borrower nor any other Loan Party is
subject to any labor or collective bargaining agreement. There are no existing or threatened
strikes, lockouts or other labor disputes involving Borrower or any other Loan Party that singly or
in the aggregate could reasonably be expected to have a Material Adverse Effect. Hours worked by
and payment made to employees of Borrower and the other Loan Parties are not in any material
respect 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 any Loan Party of
any Debt hereunder or under any other Loan Document.

     5.22 Compliance with Law.

                    No Loan Party is in violation of its organizational documents, any material law, rule,
regulation, judgment or order of any Governmental Authority applicable to it or any of its property
or assets, or any material term of any material agreement or instrument binding on or otherwise
affecting it or any of its properties.

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     5.23 Permits, etc.

                    Each Loan Party has, and is in compliance with, all material permits, licenses,
authorizations, approvals, entitlements and accreditations required for such Person lawfully to
own, lease, manage or operate, or to acquire, each business currently owned, leased, managed or
operated, or to be acquired, by such Person. No condition exists or event has occurred which, in
itself or with the giving of notice or lapse of time or both, would result in the suspension,
revocation, impairment, forfeiture or non-renewal of any such material permit, license,
authorization, approval, entitlement or accreditation, and there is no claim that any thereof is
not in full force and effect.

Section 6. Affirmative Covenants.

                    Until the expiration or termination of the Commitments and thereafter until all Obligations
(other than contingent indemnification obligations to the extent no claim giving rise thereto has
been asserted) of Borrower and the other Loan Parties hereunder and under the other Loan Documents
are Paid in Full, Borrower agrees that, unless at any time Lender shall otherwise expressly consent
in writing, it will:

     6.1
Information.

                    Furnish to Lender:

          6.1.1
Annual Report.

                    As soon as available and in any event within ninety (90) days after the end of each fiscal
year of Borrower (except with respect to the fiscal year of Borrower ending December 31, 2008,
which shall be furnished as soon as available but on or before May 15, 2009), consolidated balance
sheets of Borrower and its Subsidiaries as of the end of such fiscal year and the related
consolidated statements of income, retained earnings and cash flows for such fiscal year, setting
forth in each case, in comparative form, the figures for the previous fiscal year, all such
financial statements to be prepared in accordance with GAAP consistently applied and audited by and
accompanied by the unqualified opinion of Grant Thornton or other independent certified public
accountants selected by Borrower and reasonably acceptable to the Lender (which opinion shall be
without (a) a “going concern” or like qualification or exception, (b) any qualification or
exception as to the scope of such audit, or (c) any qualification which relates to the treatment or
classification of any item and which, as a condition to the removal of such qualification, would
require an adjustment to such item, the effect o which would be to cause any noncompliance with the
provisions of Section 7.14) together with (A) a certificate from such accountants to the effect
that, in making the examination necessary for the signing of such annual audit report, such
accountants have not become aware of any Default or Event of Default that has occurred and is
continuing, or, if such accountants have become aware of any such event, describing it and the
steps, if any, being taken to cure it and (B) if requested by Lender, promptly upon such request,
the computations of such accountants evidencing Borrower’s compliance with the financial covenants
contained in Section 7.14 of this Agreement.

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          6.1.2 Interim Reports.

                    As soon as available and in any event within thirty (30) days after the end of each month of
each Fiscal Year of Borrower, the consolidated balance sheet of Borrower and its Subsidiaries as of
the end of such fiscal month and the related consolidated statements of income, retained earnings
and cash flows for the portion of Borrower’s fiscal year ended at the end of such fiscal month,
setting forth in each case in comparative form, (A) the figures for the corresponding fiscal month
and the corresponding portion of Borrower’s previous fiscal year and (b) Borrower’s budgeted
projections for such fiscal month and for the portion of Borrower’s fiscal year ended at the end of
such fiscal month, all in reasonable detail and satisfactory in form to the Lender and, if
requested by Lender, certified, except as to projections (subject to normal year-end adjustments
and footnote disclosures) as to fairness of presentation, GAAP and consistency by the President or
the chief financial officer or controller of Borrower.

          6.1.3 Compliance Certificate.

                    Simultaneously with the delivery of each set of financial statements referred to in Section
6.1.1 above and simultaneously with the delivery of each set of financial statements referred to in
Sections 6.1.2 above with respect to the last fiscal month of a Fiscal Quarter of Borrower, a
certificate of the President or the chief financial officer or controller of Borrower in the form
attached hereto as Exhibit B and incorporated herein by reference, accompanied by
supporting financial work sheets where appropriate, (A) evidencing Borrower’s compliance with the
financial covenants contained in Section 7.14 of this Agreement, (B) stating whether there exists
on the date of such certificate any Default or Event of Default and, if any Default or Event of
Default then exists, setting forth the details thereof and the action which Borrower is taking or
proposes to take with respect thereto and (C) certifying that all of the representations and
warranties of Borrower and/or any other Loan Party contained in this Agreement and/or in any of the
other Loan Documents are true and correct in all material respects on and as of the date of such
certificate as if made on and as of the date of such certificate.

          6.1.4 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 Loan Party 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 Lender which has been instituted or, to the knowledge of Borrower, is
threatened against Borrower or any other Loan Party 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

40

 

taking of any action with respect to a Pension Plan which could result in the requirement
that Borrower or any other Loan Party 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 other Loan Party 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 other
Loan Party; 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.

          6.1.5 Management Report.

                    Promptly upon receipt thereof, any reports (including, without limitation, any management
letters) submitted to Borrower or any Subsidiary (other than reports previously delivered pursuant
to Sections 6.1.1 and 6.1.2 above) by independent accountants in connection with any annual,
interim or special audit made by them of the books of Borrower or any Subsidiary.

          6.1.6 Accounts Trial Balance.

                    Within fifteen (15) days after the end of each fiscal month of Borrower, (A) an Accounts trial
balance of Borrower indicating which Accounts are up to 30, 30 to 60, 60 to 90 and 90 days or more
past the invoice date and including, if requested by the Lender, a listing of the names and
addresses of all applicable Account Debtors and (B) a summary of accounts payable of Borrower
showing which accounts payable are current, up to 30, 30 to 60, 60 to 90 and 90 days or more past
due and including, if requested by the Lender, a listing of the names and addresses of applicable
creditors, all in form and detail reasonably satisfactory to the Lender and certified as being
true, correct and complete by the President or the chief financial officer or controller of
Borrower.

          6.1.7 Budgets.

                    As soon as available and in any event within thirty (30) days after the beginning of each
Fiscal Year of Borrower, consolidated balance sheet, budgeted income statement and cash flow
projections for Borrower for such fiscal year on a month-by-month basis, all in form and detail
reasonably acceptable to the Lender.

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          6.1.8 Non-Senior Debt Notices.

                    Promptly following receipt, copies of any notices (including notices of default or
acceleration) received from any holder or trustee of, under or with respect to any Non-Senior Debt.

          6.1.9 Other Information.

                    Promptly from time to time, such other information concerning Borrower and any other Loan
Party as Lender may reasonably request.

          6.1.10 Borrowing Base Certificate.

                    On or before the fifteenth (15th) day of each month, commencing with the next such delivery on
or before June 15, 2009, a Borrowing Base Certificate (together with such supporting information as
the Lender may reasonably request in connection therewith).

     6.2 Books; Records; Inspections.

                    Keep, and cause each other Loan Party 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 other Loan Party to permit, Lender or any representative thereof to
inspect the properties and operations of Borrower or such other Loan Party; and permit, and cause
each other Loan Party to permit, at any reasonable time and with reasonable notice (or at any time
without notice if an Event of Default exists), 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
Lender or any representative thereof), and to examine (and, at the expense of Borrower or the
applicable Loan Party, photocopy extracts from) any of its books or other records; and permit, and
cause each other Loan Party to permit, Lender and its representatives to inspect the Collateral and
other tangible assets of Borrower or such Loan Party, to perform appraisals of the assets of
Borrower or such Loan Party, and 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 Collateral. All such inspections or audits by Lender shall be at (i)
Lender’s expense provided that no Default or Event of Default has occurred and is then continuing,
or (ii) Borrower’s expense if an Event of Default or Default has occurred and is then continuing.

     6.3 Maintenance of Property; Insurance.

               (a) Keep, and cause each other Loan Party to keep, all property useful and necessary in the
business of Borrower or such other Loan Party in good working order and condition, ordinary wear
and tear excepted, and cause each of its Subsidiaries to comply, at all times with the material
provisions of all leases to which it is a party as lessee or under which it occupies property, so
as to prevent any loss or forfeiture thereof or thereunder.

               (b) Maintain, and cause each other Loan Party to maintain, with responsible insurance
companies, such insurance coverage as shall be required by all laws, governmental

42

 

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 Lender, Borrower shall furnish to Lender a certificate setting forth in reasonable
detail the nature and extent of all insurance maintained by Borrower and each other Loan Party.
Borrower shall cause each issuer of an insurance policy to provide Lender with an endorsement (i)
showing Lender as a loss payee with respect to each policy of property or casualty insurance and
naming Lender as an additional insured with respect to each policy of liability insurance, (ii)
providing that 30 days’ notice will be given to Lender prior to any cancellation of, or reduction
or change in coverage provided by or other material modification to such policy and (iii)
reasonably acceptable in all other respects to Lender. Borrower shall execute and deliver to
Lender a collateral assignment, in form and substance satisfactory to Lender, of each business
interruption insurance policy maintained by the Loan Parties.

               (c) Unless Borrower provides Lender with evidence of the continuing insurance coverage
required by this Agreement, Lender may purchase insurance at Borrower’s expense to protect Lender’s
interests in the Collateral. This insurance may, but need not, protect Borrower’s and each other
Loan Party’s interests. The coverage that Lender purchases may, but need not, pay any claim that
is made against Borrower or any other Loan Party in connection with the Collateral. Borrower may
later cancel any insurance purchased by Lender, but only after providing Lender with evidence that
Borrower has obtained the insurance coverage required by this Agreement. If Lender 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.

                    Comply, and cause each other Loan Party 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 each other Loan Party to ensure, that no person who
owns a controlling interest in or otherwise controls a Loan Party 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 each other Loan Party to comply, with all applicable Bank Secrecy Act and
anti-money laundering laws and regulations and (d) pay, and cause each other Loan Party 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 Borrower or any other Loan Party to pay any such tax
or charge so long as it shall contest the validity thereof

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in good faith by
appropriate proceedings which stay the imposition of any penalty, fine or Lien resulting from
the non-payment thereof and shall set aside on its books adequate reserves with respect thereto in
accordance with GAAP.

     6.5 Maintenance of Existence.

                    Maintain and preserve, and (subject to Section 7.5) cause each other Loan Party 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, and cause each other Loan Party to 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 other Loan Party, cause, or direct the
applicable Loan Party 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 with all
Environmental Laws and to preserve the value of such real property or other assets. Without
limiting the generality of the foregoing, Borrower shall, and shall cause each other Loan Party to,
comply with each valid Federal or state judicial or administrative order requiring the performance
at any real property by Borrower or any other Loan Party of activities in response to the release
or threatened release of a Hazardous Substance.

     6.8 Obtaining of Permits, Etc.

                    Obtain, maintain and preserve, and cause each of its Subsidiaries to obtain, maintain and
preserve, and take all necessary action to timely renew, all material permits, licenses,
authorizations, approvals, entitlements and accreditations which are necessary or useful in the
proper conduct of its business.

     6.9 Collateral Access Agreements.

                    Notify Lender at least on a calendar quarter basis of any location of Borrower or any other
Loan Party at which Collateral with a book value in excess of $100,000 is placed or otherwise
maintained located (whether such location is now existing or created or acquired after the
Effective Date) and, with respect to each such location the real property for which is not owned by
a Loan Party, if requested by Lender, promptly obtain written subordinations or waivers, in form
and substance satisfactory to Lender, of all present and future Liens to which the owner or lessor
of such premises may be entitled to assert against the Collateral.

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     6.10 Blocked Accounts.

               (a) After the occurrence and during the continuance of an Event of Default, the Lender may
send a notice of assignment or notice of security interest to any and all of the Borrower’s Account
Debtors and, thereafter, the Lender shall have the sole right to collect the Accounts and Payment
Intangibles (as that term is defined in the UCC, as defined in the Guarantee and Collateral
Agreement) of the Borrower or take possession of the Collateral and the books and records relating
thereto. After the occurrence and during the continuation of an Event of Default, the Borrower and
its Subsidiaries shall not, without prior written consent of the Lender, grant any extension of
time of payment of any Account or Payment Intangible, compromise or settle any Accounts or Payment
Intangible for less than the full amount thereof, release, in whole or in part, any Person or
property liable for the payment thereof, or allow any credit or discount whatsoever thereon.

               (b) The Borrower hereby appoints Lender as the Borrower’s attorney-in-fact with power
exercisable during the continuance of an Event of Default to (i) endorse the Borrower’s name upon
any notes, acceptances, checks, drafts, money orders or other evidences of payment relating to the
Accounts or Payment Intangibles of the Borrower, (ii) sign the Borrower’s name on any invoice or
bill of lading relating to any of the Accounts or Payment Intangibles of the Borrower, drafts
against Account Debtors with respect to Accounts or Payment Intangibles of the Borrower,
assignments and verifications of Accounts or Payment Intangibles and notices to Account Debtors
with respect to Accounts or Payment Intangibles of the Borrower, (iii) send verification of
Accounts of the Borrower, and (iv) notify the U.S. Postal Service authorities to change the address
for delivery of mail addressed to the Borrower to such address as Lender may designate and to do
all other acts and things necessary to carry out this Agreement. All acts of said attorney or
designee are hereby ratified and approved, and said attorney or designee shall not be liable for
any acts of omission or commission (other than acts of omission or commission constituting gross
negligence or willful misconduct as determined by a final judgment of a court of competent
jurisdiction), or for any error of judgment or mistake of fact or law; this power being coupled
with an interest is irrevocable until all of the Obligations are paid in full and all of the
Commitments are terminated.

               (c) Nothing herein contained shall be construed to constitute Lender as agent of the Borrower
for any purpose whatsoever, and Lender shall not be responsible or liable for any shortage,
discrepancy, damage, loss or destruction of any part of the Collateral wherever the same may be
located and regardless of the cause thereof (other than from acts of omission or commission
constituting gross negligence or willful misconduct as determined by a final judgment of a court of
competent jurisdiction). Lender shall not, under any circumstance or in any event whatsoever, have
any liability for any error or omission or delay of any kind occurring in the settlement,
collection or payment of any of the Accounts of the Borrower or any instrument received in payment
thereof or for any damage resulting therefrom (other than acts of omission or commission
constituting gross negligence or willful misconduct as determined by a final judgment of a court of
competent jurisdiction). The Lender, by anything herein or in any assignment or otherwise, does
not assume any of the obligations under any contract or agreement assigned to Lender and shall not
be responsible in any way for the performance by the Borrower of any of the terms and conditions
thereof.

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               (d) If any Account or Payment Intangible of the Borrower includes a charge for any tax payable
to any governmental agency or authority, Lender is hereby authorized (but in no event obligated) in
its discretion to pay the amount thereof to the proper taxing authority for the Borrower’s account
and to charge the Borrower therefor. The Borrower shall notify Lender if any Account or Payment
Intangible of the Borrower includes any taxes due to any such governmental agency or authority and,
in the absence of such notice, Lender shall have the right to retain the full proceeds of such
Account or Payment Intangible and shall not be liable for any taxes that may be due by reason of
such Account or Payment Intangible.

     6.11 Further Assurances; Post-Closing Items.

               (a) Take, and cause each other Loan Party to take, such actions as are necessary or as Lender
may reasonably request from time to time to ensure that the Obligations of Borrower and each other
Loan Party under the Loan Documents are secured by substantially all of the assets of Borrower and
each Loan Party (as well as all equity interests of Borrower and each Subsidiary) and guaranteed by
each Loan Party (including, promptly upon the acquisition or creation thereof, any Subsidiary
acquired or created after the Closing Date), in each case including (a) the execution and delivery
of guaranties, 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 of certificated securities and other Collateral with respect to which perfection is
obtained by possession.

               (b) Execute and/or deliver, and/or cause to be executed and/or delivered, as applicable, to
the Lender each of the items, if any, listed on Schedule 6.11 attached hereto
(collectively, the “Post-Closing Items”) on or before the applicable due date listed after each
such Post-Closing Item, each of which Post-Closing Items must be in form, substance and content
reasonably satisfactory to the Lender.

Section 7. Negative Covenants.

                    Until the expiration or termination of the Commitments and thereafter until all Obligations
(other than contingent indemnification obligations to the extent no claim giving rise thereto has
been asserted) of Borrower and the other Loan Parties hereunder and under the other Loan Documents
are Paid in Full, Borrower agrees that, unless at any time Lender shall otherwise expressly consent
in writing, it will:

     7.1 Debt.

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

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

               (b) Debt secured by Liens permitted by Section 7.2(d), and extensions, renewals and
refinancings thereof; provided that the aggregate amount of all such Debt at any time outstanding
shall not exceed $250,000;

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               (c) Debt of Borrower to any domestic Wholly-Owned Subsidiary or Debt of any domestic
Wholly-Owned Subsidiary to Borrower or another domestic Wholly-Owned Subsidiary; provided that such
Debt shall be evidenced by a demand note in form and substance reasonably satisfactory to Lender
and pledged and delivered to Lender pursuant to the Guarantee and Collateral Agreement as
additional collateral security for the Obligations, and the obligations under such demand note
shall be subordinated to the Obligations hereunder in a manner reasonably satisfactory to Lender;

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

               (e) an aggregate outstanding amount of unsecured Non-Senior Debt not at any time exceeding
$200,000 (exclusive of Debt permitted under Section 7.1(c));

               (f) Contingent Obligations arising with respect to customary indemnification obligations in
favor of purchasers in connection with Dispositions permitted under Section 7.5; and

               (g) obligations not to exceed $3,000,000 to U.S. Bank National Association in respect of
daylight overdraft activity.

     7.2 Liens.

                    Not, and not permit any other Loan Party 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) subject to the limitation set forth in Section 7.1(b), (i) Liens arising in
connection with Capital Leases (and attaching only to the property being leased), (ii) Liens
existing on property at the time of the acquisition thereof by Borrower or any Subsidiary (and not
created in contemplation of such acquisition) and (iii) Liens that constitute purchase money

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security interests on any property securing debt 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
$100,000 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 that do not (i) secure obligations for the payment of money or (ii) interfere 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 on Accounts and securing the Indebtedness permitted under Section 7.1(g);

               (i) 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 [Reserved]

     7.4 Restricted Payments.

                    Not, and not permit any other Loan Party 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) except for Permitted Management Fees and Permitted
Transaction Services Fees, 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 Non-Senior Debt or (e) set aside
funds for any of the foregoing. Notwithstanding the foregoing, (i) any Subsidiary may pay
dividends or make other distributions to Borrower or to a domestic Wholly-Owned Subsidiary; (ii) in
each case to the extent due and payable on a non-accelerated basis and permitted under any
applicable subordination provisions thereof, Borrower may make regularly scheduled payments of
interest in respect of Non-Senior Debt; (iii) any Loan Party may make repurchases of capital stock
deemed to occur upon the exercise of options or warrants (i.e., a cashless exercise); and (iv) any
Loan Party may repurchase or redeem capital stock from any former officers, directors and employees
(or their estates, spouses or former spouses) of any Loan Party in connection with the termination
of such Person’s employment (or such directors’ directorship) with the Loan Party; provided that,
in connection with such transactions, the total cash payments under
this Section shall not
exceed $500,000 in the aggregate during any Fiscal Year; provided, further, that all Term B Loans
shall be paid in accordance with the terms of this Agreement and any restriction imposed on
Non-Senior Debt by this Section 7.4 shall not apply to the Term B Loans.

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     7.5 Mergers; Consolidations; Asset Sales.

               (a) Not, and not permit any other Loan Party to, be a party to any merger or consolidation,
except for any such merger or consolidation of any Subsidiary into Borrower or any domestic
Wholly-Owned Subsidiary.

               (b) Not, and not permit any other Loan Party 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 in the ordinary course of business and (ii) sales and
dispositions of assets (excluding any equity interests of Borrower or any Subsidiary) for at least
fair market value so long as the net book value of all assets sold or otherwise disposed of in any
Fiscal Year does not exceed 10% of the net book value of the consolidated assets of Borrower and
the Subsidiaries as of the last day of the preceding Fiscal Year.

     7.6 Modification of Organizational Documents.

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

     7.7 Use of Proceeds.

                    Use the proceeds of the Loans solely for working capital, for Capital Expenditures and for
other general business purposes of Borrower and the Subsidiaries; 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 for the Loan Documents and as otherwise expressly contemplated by this Agreement, not,
and not permit any other Loan Party to, enter into, or cause, suffer or permit to exist any
transaction, arrangement or contract with any of its other Affiliates, which is on terms which are
less favorable than are obtainable from any Person which is not one of its Affiliates.

     7.9 Inconsistent Agreements.

                    Not, and not permit any other Loan Party 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 or any other Loan Party of any of its Obligations hereunder or under any
other Loan Document, (b) prohibit Borrower or any other Loan Party from granting to Lender a Lien
on any of its assets or (c) create or permit to exist or become effective any encumbrance or
restriction on the ability of any other Loan Party 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 Loan Party or (iii) transfer any of its assets or
properties to Borrower or any other Loan Party other than (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

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hereunder (B) 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 (C) customary provisions in
leases and other contracts restricting the assignment thereof.

     7.10 Business Activities.

                    Not, and not permit any other Loan Party to, engage in any line of business other than the
businesses engaged in on the Closing Date and businesses reasonably related thereto or acquire any
properties or assets that are not reasonably related to the conduct of such business activities.
Not, and not permit any other Loan Party to, issue any equity interest other than (a) any issuance
of shares of Borrower’s common equity securities pursuant to any employee or director option or
stock purchase program, benefit plan or compensation program, or (b) any issuance by a Subsidiary
to Borrower or another Subsidiary in accordance with Section 7.4.

     7.11 Investments.

                    Not, and not permit any other Loan Party to, make or permit to exist any Investment in any
other Person or create or establish any Subsidiary (other than any Subsidiary formed in compliance
with Section 7.16), except the following:

               (a) contributions by Borrower to the capital of any Wholly-Owned Subsidiary in existence on
the Closing Date that is also a Domestic Subsidiary, or by any Subsidiary to the capital of any
other Wholly-Owned Subsidiary in existence on the Closing Date that is also a Domestic Subsidiary,
so long as the recipient of any such capital contribution has guaranteed the Obligations and such
guaranty is secured by a pledge of all of its equity interests and substantially all of its real
and personal property, in each case in accordance with Section 6.11(a);

               (b) Investments constituting Debt permitted by Section 7.1(c);

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

               (d) Cash Equivalent Investments;

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

               (f) 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;

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

               (h) any purchase or other acquisition by Borrower or any Wholly-Owned Subsidiary that is also
a Domestic Subsidiary of the assets or equity interests of any Domestic Subsidiary.

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     7.12 Restriction of Amendments to Certain Documents.

                    Not amend or otherwise modify, or waive any rights under (a) the Staffmark Acquisition
Agreement or any other agreement pursuant to which an Acquisition is consummated, other than
immaterial amendments, modifications and waivers not adverse to the interests of Lender, (b) any
provisions of any Non-Senior Debt (other than Term B Loans, which amendment, modification or waiver
of rights shall be governed by this Agreement), (c) the Management Agreements or (d) the
Maintenance Agreement, other than immaterial amendments, modifications and waivers not adverse to
the interests of Lender.

     7.13 Fiscal Year.

                    Not change its Fiscal Year.

     7.14 Financial Covenants.

          7.14.1 Maintenance Fixed Charge Coverage Ratio and Fixed Charge Coverage Ratio.

                    For each Computation Period commencing with the Computation Period ending June 30, 2009 and
continuing up to and including the Computation Period ending December 31, 2011, not permit the
Maintenance Fixed Charge Coverage Ratio to be less than 1.0:1.0 and, for each Computation Period
ending thereafter, not permit the Fixed Charge Coverage Ratio to be less than 1.1:1.0.

          7.14.2 Senior Debt to EBITDA Ratio.

                    Not permit the Senior Debt to EBITDA Ratio for (i) the Computation Period ending on March 31,
2012 to exceed 4.0 to 1.0, (ii) the Computation Period ending on June 30, 2012 to exceed 3.75 to
1.0, (iii) the Computation Period ending on September 30, 2012 to exceed 3.5 to 1.0, and (iv) any
Computation Period ending on or after December 31, 2012 to exceed 3.0 to 1.0.

          7.14.3 Total Debt to EBITDA Ratio.

                    Not permit the Total Debt to EBITDA Ratio for any Computation Period ending on or after March
31, 2012 to exceed 4.0 to 1.0.

          7.14.4 Capital Expenditures.

                    Not permit the aggregate amount of all Capital Expenditures made by Borrower and the
Subsidiaries (i) during the Fiscal Year ending December 31, 2009 to exceed $1,400,000, (ii) during
the Fiscal Year ending December 31, 2010 to exceed $2,500,000, or (iii) during any Fiscal Year
thereafter to exceed $2,200,000.

                    If Borrower does not utilize the entire amount of Capital Expenditures permitted in any Fiscal
Year or other period, so long as no Default or Event of Default exists or would be caused thereby,
Borrower may carry forward to the immediately succeeding Fiscal Year only,

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50% of such un-utilized amount (with Capital Expenditures made by Borrower in such succeeding
Fiscal Year applied last to such unutilized amount).

          7.14.5 Minimum EBITDA.

          Have EBITDA for each period set forth below of not less than the amount set forth below
opposite such period under the heading Minimum EBITDA (notwithstanding that Target EBITDA Amount
exceeds Minimum EBITDA):

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	 	 	Minimum	 	Target EBITDA
	Fiscal Quarter	 	EBITDA	 	Amount
	January 1, 2009 through March 31, 2009
	 	$	(4,500,000	)	 	 	N/A	 
	January 1, 2009 through June 30, 2009
	 	$	(8,191,000	)	 	$	(7,191,000	)
	January 1, 2009 through September 30, 2009
	 	$	(8,441,000	)	 	$	(6,941,000	)
	Computation Period ending December 31, 2009
	 	$	(5,000,000	)	 	$	(3,000,000	)
	Computation Period ending March 31, 2010
	 	$	(4,000,000	)	 	$	(2,000,000	)
	Computation Period ending June 30, 2010
	 	$	(4,000,000	)	 	$	(2,000,000	)
	Computation
Period ending September 30, 2010
	 	$	(1,000,000	)	 	$	1,000,000	 
	Computation Period ending December 31, 2010
	 	$	3,000,000	 	 	$	5,000,000	 
	Computation Period ending March 31, 2011
	 	$	8,000,000	 	 	$	10,000,000	 
	Computation Period ending June 30, 2011
	 	$	13,500,000	 	 	$	15,500,000	 
	Computation
Period ending September 30, 2011
	 	$	17,500,000	 	 	$	19,500,000	 
	Computation Period ending December 31, 2011
	 	$	20,800,000	 	 	$	22,800,000	 

     7.15 Bank Accounts.

                    Not, and not permit any other Loan Party, to maintain or establish any new bank accounts other
than the bank accounts set forth on Schedule 7.15 without prior written notice to Lender
and unless Lender, Borrower or such other Loan Party 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 Lender in such bank account and

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agrees to limit
its set-off rights on terms satisfactory to Lender and otherwise acceptable to Lender.

     7.16 Subsidiaries.

                    Not, and not permit any other Loan Party, to establish or acquire any Subsidiary unless the
Loan Parties shall have caused such new Subsidiary to take all actions pursuant to Section
6.11(a) hereof with respect to such Subsidiary and such other actions as reasonably requested
by Lender, including (a) execution by such Subsidiary of a joinder to the Guarantee and Collateral
Agreement and, if applicable, a mortgage or deed of trust, (b) a pledge to Lender of the capital
securities of such Subsidiary, (c) such opinions, amendments to this Agreement and the other Loan
Documents related to the addition of such Subsidiary as may be requested by Lender, and (d) such
certificates, resolutions, instruments, copies of filings and notices, and other materials relating
to such Subsidiary as Lender may reasonably request.

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 or other amount payable by any
Loan Party hereunder or under any other Loan Document.

          8.1.2 Default Under Other Debt.

                    Any default shall occur and continue until the termination of any applicable cure period under
the terms applicable to any other Debt of any Loan Party in an aggregate amount (for all such Debt
so affected and including un-drawn committed or available amounts and amounts owing to all
creditors under any combined or syndicated credit arrangement) exceeding $250,000, and, in each
case, 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 or any other Loan Party to purchase or redeem such Debt or
post cash collateral in respect thereof) prior to its expressed maturity.

          8.1.3 Bankruptcy; Insolvency.

                    Any Loan Party becomes insolvent or generally fails to pay, or admits in writing its inability
or refusal to pay, debts as they become due; or any Loan Party applies for, consents to, or
acquiesces in the appointment of a trustee, receiver or other custodian for such Loan Party 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
any Loan Party 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

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proceeding
under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is commenced
in respect of any Loan Party, and if such case or proceeding is not commenced by such Loan Party,
it is consented to or acquiesced in by such Loan Party, or
remains for 60 days un-dismissed; or any Loan Party 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, 6.1.4, 6.1.6, 6.1.8,
6.1.10, 6.2, 6.3(b), 6.3(c), 6.4(d), 6.5, 6.7.
6.10, 6.11 and Section 7; or (b) failure by any Loan Party to comply with
or to perform any other provision of this Agreement or any other Loan Document (other than the
Maintenance Agreement) 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 any Loan Party 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 any Loan Party to Lender in connection
herewith is 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.

                    Institution of any steps by any Person to terminate a Pension Plan if as a result of such
termination any Loan Party 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 $100,000; (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 other Loan Party or any member
of the Controlled Group have incurred on the date of such withdrawal) exceeds $100,000.

          8.1.7 Judgments.

                    Final judgments, awards, or orders (or any settlement of any claim that, if breached, could
result in a judgment, order, or award) which exceed an aggregate of $250,000 shall be rendered
against any Loan Party and remain unsatisfied, and shall not have been vacated or had execution
thereof stayed pending appeal within 30 days after entry or filing of such judgments;
provided, however, that any such judgment, order, award or settlement shall not
give rise to an Event of Default under this subsection if and for so long as (A) the amount of such
judgment, order, award or settlement is covered by a valid and binding policy of insurance between
the defendant and the insurer covering full payment thereof and (B) such insurer has been notified,
and has not disputed the claim made for payment, of the amount of such judgment, order, award or
settlement.

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          8.1.8 Invalidity of Collateral Documents.

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

          8.1.9 Invalidity of Maintenance Agreement or Subordination Provisions.

                    The Maintenance Agreement or any provision therein or any subordination provision in any
document or instrument governing Non-Senior Debt, or any subordination provision in any
subordination agreement that relates to any Non-Senior Debt or any subordination provision in any
guaranty by any Loan Party of any Non-Senior Debt, shall cease to be in full force and effect, or
any Person (including the holder of any applicable Non-Senior Debt, but excluding Lender and any of
its Affiliates) shall contest in any manner the validity, binding nature or enforceability of any
such agreement or provision.

          8.1.10 Change of Control.

                    (a) Compass Group Management LLC and its Investment Affiliates shall collectively cease to,
directly or indirectly, (i) own and control at least 51% of the outstanding equity interests of
Borrower owned by them on the Closing Date (after giving effect to the Required Equity
Contributions) or (ii) possess the right to elect (through contract, ownership of voting securities
or otherwise) at all times a majority of the board of directors (or similar governing body) of
Borrower and to direct the management policies and decisions of Borrower, or (b) a “Change of
Control” or other similar event shall occur, as defined in, or under, any documentation evidencing
or otherwise relating to any Non-Senior Debt.

          8.2 Remedies.

                    If any Event of Default described in Section 8.1.3 shall occur, the Commitments shall
immediately terminate and the Loans and all other Obligations shall become immediately due and
payable, all without presentment, demand, protest or notice of any kind; and, if any other Event of
Default shall occur and be continuing, Lender may declare the 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,
whereupon the 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), all without presentment, demand, protest or notice of any kind. Lender 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 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 Lender. Any cash collateral delivered hereunder shall be held by
Lender (without liability for interest thereon) and applied to the Obligations and any excess shall
be delivered to Borrower or as a court of competent jurisdiction may elect.

56

 

Section 9.
Miscellaneous.

     9.1
Waiver; Amendments.

                    No delay on the part of Lender in the exercise of any right, power or remedy shall operate as
a waiver thereof, nor shall any single or partial exercise by it 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 Non-Senior Debt) shall in any event be
effective unless the same shall be in writing and approved by Lender, 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.

     9.2 Notices.

                    Except as otherwise provided in Sections 2.2.2, 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, Lender shall be entitled to
rely on telephonic instructions from any person that Lender in good faith believes is an authorized
officer or employee of Borrower, and Borrower shall hold Lender harmless from any loss, cost or
expense resulting from any such reliance. Each of Borrower and Lender hereby agree that Lender
may, in its discretion, deliver information and notices to such financial institutions as may be a
party hereto from time to time using the internet service “Intralinks.”

     9.3 Computations.

                    Unless otherwise specifically provided herein, any accounting term used in this Agreement
shall have the meaning customarily given such term in accordance with GAAP, and all financial
computations hereunder shall be computed in accordance with GAAP consistently applied. The
explicit qualification of terms or computations by the phrase “in accordance with GAAP” shall in no
way be construed to limit the foregoing.

     9.4 Costs; Expenses.

                    Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses of Lender
(including Legal Costs) incurred in connection with this Agreement and for 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 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 Lender harmless from
all liability for, any fees of Borrower’s auditors in connection with any reasonable exercise by
Lender of their rights pursuant to Section 6.4. All

57

 

Obligations provided for in this Section 9.4 shall survive repayment of the Loans,
cancellation of the Notes and termination of this Agreement).

     9.5 Indemnification by Borrower.

                    In consideration of the execution and delivery of this Agreement by Lender and the agreement
to extend the Commitments provided hereunder, Borrower hereby agrees to indemnify, exonerate and
hold Lender, and each of the officers, directors, employees, Affiliates and agents of 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 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 other Loan Party, (c) any violation of any
Environmental Laws with respect to conditions at any property owned or leased by any Loan Party or
the operations conducted thereon, (d) the investigation, cleanup or remediation of offsite
locations at which any Loan Party 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 Lender, 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 9.5
shall survive repayment of the Loans, cancellation of the Notes, any foreclosure under, or any
modification, release or discharge of, any or all of the Collateral Documents and termination of
this Agreement.

     9.6 Marshaling; Payments Set Aside.

                    Lender shall be under no 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 Lender, or 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 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 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.

     9.7 Nonliability of Lender.

                    The relationship between Borrower on the one hand and Lender on the other hand shall be solely
that of borrower and lender. Lender shall have no fiduciary responsibility to

58

 

Borrower. Lender undertakes no 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.
Lender shall not 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.

     9.8
Assignments; Participations.

          9.8.1
Assignments.

               (a) Lender may at any time assign to one or more Persons (any such Person, an
“Assignee”) all or any portion of Lender’s Loans and Commitments; provided that, subject to
Section 9.8.1(d) below, Borrower’s prior written consent, which consent shall not be
unreasonably withheld or delayed, shall be required unless an Event of Default shall have occurred
and is then continuing. Borrower shall be entitled to continue to deal solely and directly with
Lender in connection with the interests so assigned to an Assignee until Lender shall have received
and accepted an effective Assignment Agreement executed, delivered and fully completed by the
applicable parties thereto. No assignment may be made to any Person if at the time of such
assignment Borrower would be obligated to pay any greater amount under Section 3 to the
Assignee than Borrower is then obligated to pay to the assigning Lender under such Section
3 (and if any assignment is made in violation of the foregoing, Borrower will not be required
to pay such greater amounts). Any attempted assignment not made in accordance with this
Section 9.8.1 shall be treated as the sale of a participation under Section 9.8.2.
Borrower shall be deemed to have granted its consent to any assignment hereunder unless Borrower
has expressly objected to such assignment within ten (10) 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. For the avoidance of doubt, upon Lender’s assignment of any or
all of its Loans and/or Commitments to an Assignee, such Assignee shall have all of the rights and
obligations of Lender in respect of such assigned Loans and/or Commitments, and shall be deemed to
be “Lender” hereunder, as if such Person were an original party hereto. Upon the request of the
Assignee (and, as applicable, the assigning Lender) pursuant to an effective Assignment Agreement,
Borrower shall execute and deliver to Lender 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 Commitment plus the principal amount of the Assignee’s Term Loans (and, as applicable, a Note
in the principal amount of the Pro Rata Share of the Revolving Loan Commitment retained by the
assigning Lender plus the principal amount of the Term Loans retained by the assigning Lender).
Each such Note shall be

59

 

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) Notwithstanding the provisions of Section 9.8.1(a), the Borrower hereby authorizes and
directs the Lender, for and on behalf of the Borrower, to maintain a record of ownership of the
Notes and any interest therein, which record, or “book-entry system”, shall identify the owner or
owners of the Notes and any such interests therein. The right to the principal of, and stated
interest on, the Notes may be transferred only through such book-entry system.

               (d) Notwithstanding the foregoing provisions of this Section 9.8.1 or any other
provision of this Agreement, Lender may at any time assign all or any portion of its Loans and its
Notes (i) as collateral security to a Federal Reserve Bank to Lender’s trustee for the benefit of
its investors or to any other Person (but no such assignment shall release Lender from any of its
obligations hereunder) and (ii) to (x) an Affiliate of Lender or (y) an Eligible Institution.

          9.8.2 Participations.

                    Lender may at any time sell to one or more Persons participating interests in its Loans,
Commitments or other interests hereunder (any such Person, a “Participant”). In the event
of a sale by Lender of a participating interest to a Participant, (a) Lender’s obligations
hereunder shall remain unchanged for all purposes, (b) Borrower shall continue to deal solely and
directly with Lender in connection with Lender’s rights and obligations hereunder and (c) all
amounts payable by Borrower shall be determined as if Lender had not sold such participation and
shall be paid directly to Lender. No Participant shall have any direct or indirect voting rights
hereunder. 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 such amounts to the same extent as if the
amount of its participating interest were owing directly to it as Lender under this Agreement;
provided that such right of set-off shall be subject to the obligation of each Participant to share
with Lender, and Lender agrees to share with each Participant, as provided in Section
2.11.4. 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 Lender if no participation
had been sold).

     9.9 Confidentiality.

                    Lender agrees to use commercially reasonable efforts (equivalent to the efforts Lender applies
to maintain the confidentiality of its own confidential information) to maintain as confidential
all information provided to them by any Loan Party and designated as confidential, except that
Lender may disclose such information (a) to Persons employed or engaged by Lender or any of its
Affiliates (including collateral managers of Lender) in evaluating, approving, structuring or
administering the Loans and the Commitments; (b) to any assignee or participant or potential
assignee or participant that has agreed to comply with the covenant contained in this Section
9.9 (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

60

 

any insurance industry association, or as reasonably believed by Lender to be compelled by any
court decree, subpoena or legal or administrative order or process; (d) as, on the advice of
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 Lender is a party; (f) to
any nationally recognized rating agency or investor of Lender that requires access to information
about Lender’s investment portfolio in connection with ratings issued or investment decisions with
respect to Lender; (g) that ceases to be confidential through no fault of Lender; (h) to a Person
that is an investor or prospective investor in a Securitization that agrees that its access to
information regarding the Borrower and the Loans and 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 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 Commitments. Notwithstanding the
foregoing, Borrower consents to the publication by Lender of a tombstone or similar advertising
material relating to the financing transactions contemplated by this Agreement, and Lender reserves
the right to provide to industry trade organizations information necessary and customary for
inclusion in league table measurements.

     9.10 Captions.

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

     9.11 Nature of Remedies.

                    All Obligations of Borrower and rights of Lender expressed herein or in any other Loan
Document shall be in addition to and not in limitation of those provided by applicable law. No
failure to exercise and no delay in exercising, on the part of 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.

     9.12 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.

     9.13 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

61

 

enforceability of the remaining provisions of this Agreement or any instrument or agreement
required hereunder.

     9.14 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 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 Lender.

     9.15 Successors; Assigns.

                    This Agreement shall be binding upon Borrower and Lender and their respective successors and
assigns, and shall inure to the benefit of Borrower and Lender and the successors and assigns of
Lender. 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 Lender.

     9.16 Governing Law.

                    THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS
OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES TO THE EXTENT THAT SUCH PRINCIPLES WOULD
REQUIRE THE APPLICATION OF LAWS OF ANOTHER JURISDICTION.

     9.17 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
NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH
CASE, SITTING IN THE BOROUGH OF MANHATTAN); PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT LENDER’S OPTION, IN THE COURTS OF ANY 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 NEW YORK AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK 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 NEW YORK. BORROWER HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE

62

 

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.

     9.18 Waiver of Jury Trial.

                    EACH OF BORROWER AND 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]

63

 

                    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.

	 	 	 	 	 
	 	CBS Personnel Holdings, Inc., as Borrower

 	 
	 	By:  	/s/ William E. Aglinsky 	 
	 	 	Name:  	William E. Aglinsky 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	COMPASS GROUP DIVERSIFIED HOLDINGS LLC,

as Lender

 
	 	By:  	/s/ James J. Bottiglieri 	 
	 	 	Name:  	James J. Bottiglieri 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signature Page

Credit Agreement

64

 

ANNEX I

Commitments and Pro Rata Shares

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Commitment	 	 	Pro Rata	 	 	Term A Loan	 	 	Pro Rata	 	 	Term B Loan	 	 	Pro Rata	 
	Lender	 	Amount	 	 	Share	 	 	Amounts	 	 	Share	 	 	Amounts	 	 	Share	 
	Compass Group Diversified
Holdings LLC
	 	$	67,500,000	 	 	 	100	%	 	$	47,535,620	 	 	 	100	%	 	$	40,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTALS
	 	$	67,500,000	 	 	 	100	%	 	$	47,535,620	 	 	 	100	%	 	$	40,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Annex

I

 

 

Annex II

Addresses

CBS Personnel Holdings, Inc., as Borrower

435 Elm Street., Suite 300

Cincinnati, Ohio 45202

Attention:   William E. Aglinsky, Chief Financial Officer

Telephone:   (513) 852-4610

Telecopy:     (866) 728-8889

Compass Group Diversified Holdings LLC,

as Lender

Address for Notices:

Sixty One Wilton Road, Second Floor

Westport, Connecticut 06880

Attention:   Chief Financial Officer

Telephone: (203) 221-1703

Telecopy:   (203) 221-8253

Address for Payments:

	 	 	 

	Bank:

	 	Bank of America
	Bank Address:

	 	 126 Post Road East Westport, CT 06880
	ABA #:

	 	 026009593
	Account Name:

	 	Compass Group Diversified Holdings LLC
	Account #:

	 	 003852504395
	Reference:

	 	CBS Personnel Holdings, Inc.

Annex

II

 

 

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
Amended and Restated Credit Agreement dated as of March 31, 2009 (as amended or otherwise modified
from time to time, the “Credit Agreement”) by and between CBS Personnel Holdings, Inc.
(“Borrower”) and Compass Group Diversified Holdings LLC, as lender (together with any
successors or assigns, the “Lender”). 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, 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
any Loan Party or any other Person or the performance or observance by any Loan Party 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 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) 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

A-1

 

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.

                    4. The effective date for this Assignment Agreement shall be as set forth on the schedule
attached hereto (the “Effective Date”).

                    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, Borrower 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 NEW YORK, 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:

CBS Personnel Holdings, Inc.,

as Borrower

 	 
	 	By:  	 	 
	 	 	Title: 	]
	 	 	 	 

A-3

 

	 	 	 	 	 

Schedule to Assignment Agreement

	 	 	 

	Assignor:

	 	____________________
	Assignee:

	 	____________________
	Effective Date:

	 	____________________

	 	 	 	Credit Agreement dated as of March 31, 2009 (as amended or otherwise
modified from time to time, the “Credit Agreement”) between CBS
Personnel Holdings, Inc. (“Borrower”) and Compass Group Diversified
Holdings LLC, as Lender

Interests Assigned:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Loan	 	 	Term A Loan	 	 	Term B Loan	 
	Commitment/Loan	 	Commitment	 	 	Commitment	 	 	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 Amended and Restated Credit Agreement dated as of March 31, 2009 (as
amended or otherwise modified from time to time, the “Credit Agreement”) between the
undersigned (“Borrower”) and Compass Group Diversified Holdings LLC, as lender (together
with any successors or assigns, the “Lender”). This certificate (this “Certificate”),
together with supporting calculations attached hereto, is delivered to Lender 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] report of Borrower as at
[______, 200__] (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.

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

                    Borrower further certifies that all representations and warranties of Borrower contained in
the Credit Agreement are true and correct in all material respects on and as of the date of this
Certificates as if made on and as of the date of this Certificate.

                    Borrower has caused this Certificate to be executed and delivered by its officer thereunto
duly authorized on [______, 200__].

CBS Personnel Holdings, Inc.

By:

       Title:

B-1

 

Schedule to Compliance Certificate

Dated as of [______, 200__]

	 	 	 	 	 	 	 	 	 	 	 

	A.	 	Section 7.14.1 - Minimum Fixed Charge Coverage Ratio	 	 
	 	 	 	1.	 	 	Consolidated Net Income (per books)	 	$________
	 

	 	 	2.	 	 	Plus:
	 	Interest Expense
	 	$________
	 

	 	 	 	 	 	 	 	income tax expense
	 	$________
	 

	 	 	 	 	 	 	 	depreciation
	 	$________
	 

	 	 	 	 	 	 	 	amortization
	 	$________
	 

	 	 	 	 	 	 	 	non-cash stock compensation expense
	 	$________
	 

	 	 	 	 	 	 	 	management fees paid or accrued
	 	$________
	 

	 	 	 	 	 	 	 	non-recurring restructuring charges
	 	$________
	 	 	 	3.	 	 	EBITDA	 	$________
	 	 	 	4.	 	 	Income taxes paid	 	$________
	 	 	 	5.	 	 	N/A	 	 
	 	 	 	6.	 	 	Management fees paid or accrued	 	$________
	 	 	 	7.	 	 	Sum of (4), (5) and (6)	 	$________
	 	 	 	8.	 	 	Remainder of (3) minus (7)	 	$________
	 	 	 	9.	 	 	Interest Expense paid in cash	 	$________
	 	 	 	10.	 	 	Required payments of principal of Debt (including Term Loans but excluding
Revolving Loans)	 	$________
	 	 	 	11.	 	 	N/A	 	$________
	 	 	 	12.	 	 	Sum of (9), (10) and (11)	 	$________
	 	 	 	13.	 	 	Ratio of (8) to (12)	 	____ to 1
	 	 	 	14.	 	 	Minimum Required	 	____ to 1
	B.	 	Section 7.14.1 — Maintenance Fixed Charge Coverage Ratio	 	 
	 	 	 	1.	 	 	EBITDA(from A(3) above)	 	$________
	 

	 	 	2.	 	 	Minus:
	 	Accrued Cash Income Tax Expense
	 	$________
	 

	 	 	 	 	 	 	 	capital expenditures
	 	$________
	 

	 	 	 	 	 	 	 	management fees
	 	$________
	 

	 	 	 	 	 	 	 	non-recurring restructuring charges
	 	$________
	 

	 	 	 	 	 	 	 	Amendment Fee
	 	$________
	 

	 	 	 	 	 	 	 	capitalized special committee costs
	 	$________
	 	 	 	3.	 	 	Plus: Sponsor Investments	 	$________
	 	 	 	4.	 	 	Plus: Carryover of Cumulative Prior Quarter Excess	 	$________
	 	 	 	5.	 	 	Sum of (1) minus (2) plus (3) plus (4)	 	$________

B-2

 

	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	6.	 	 	Interest Expense paid in cash	 	$________
	 	 	 	7.	 	 	Required quarterly amortization of the Term Loans and Term Loan Voluntary
Paydown Amounts	 	$________
	 	 	 	8.	 	 	Sum of (6) and (7)	 	$________
	 	 	 	9.	 	 	Ratio of (5) to (8)	 	____ to 1
	 	 	 	14.	 	 	Minimum Required	 	1 to 1
	C.	 	Section 7.14.2 — Maximum Senior Debt to EBITDA Ratio	 	 
	 	 	 	1.	 	 	Senior Debt	 	$________
	 	 	 	2.	 	 	EBITDA (from Item A(3) above)	 	$________
	 	 	 	3.	 	 	Ratio of (1) to (2)	 	____ to 1
	 	 	 	4.	 	 	Maximum allowed	 	____ to 1
	D.	 	Section 7.14.3 — Maximum Total Debt to EBITDA Ratio	 	 
	 	 	 	1.	 	 	Total Debt	 	$________
	 	 	 	2.	 	 	EBITDA (from Item A(3) above)	 	$________
	 	 	 	3.	 	 	Ratio of (1) to (2)	 	____ to 1
	 	 	 	4.	 	 	Maximum allowed	 	____ to 1
	E.	 	Section 7.14.4 — Capital Expenditures	 	 
	 	 	 	1.	 	 	Capital Expenditures for the Fiscal Year	 	$________
	 	 	 	2.	 	 	Maximum Permitted Capital Expenditures	 	$________
	F.	 	Section 7.14.5 — Minimum EBITDA	 	 
	 	 	 	1.	 	 	EBITDA (from Item A(3) above)	 	$________
	 	 	 	2.	 	 	Minimum EBITDA	 	$________
	 	 	 	3.	 	 	Target EBITDA Amount	 	$________
	 	 	 	4.	 	 	Excess of (3) over (1)	 	$________
	 	 	 	5.	 	 	25% of (4)	 	$________
	 	 	 	6.	 	 	Add’l Interest Payment, if applicable (greater of (5) or $50,000)	 	$________

B-3

 

Exhibit C

Form of Borrowing Base Certificate

          Please refer to the Amended and Restated Credit Agreement dated as of March 31, 2009 (as
amended or otherwise modified from time to time, the “Credit Agreement”) between the
undersigned (“Borrower”) and Compass Group Diversified Holdings LLC, as lender (together
with any successors or assigns, the “Lender”). This certificate (this “Certificate”),
together with supporting calculations attached hereto, is delivered to Lender 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 represents and warrants to the Lender that the following information is true,
correct and complete in all material respects as of _______ ___, 20__:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	1	 	A/R-Temporary	 	 	 	$______	 	 	 	 	 	 	 	 
	2	 	 	 	Less Ineligibles	 	 	 	 	 	 	 	 	 	 	 	 
	3

	 	 
	 	 	 	Over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	4

	 	 
	 	 	 	Credits over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	5

	 	 
	 	 	 	Cross Age (25%)
	 	$______	 	 	 	 	 	 	 	 	 	 
	6

	 	 
	 	 	 	Contras
	 	$______	 	 	 	 	 	 	 	 	 	 
	7

	 	 
	 	 	 	Other
	 	$______	 	 	 	 	 	 	 	 	 	 
	8	 	 	 	Total Ineligibles [sum of 3 thr 7]	 	 	 	$______	 	 	 	 	 	 	 	 
	9	 	Eligible A/R-Temporary [1 minus 8]	 	 	 	 	 	$	______	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10	 	A/R-Permanent	 	 	 	$______	 	 	 	 	 	 	 	 
	11	 	 	 	Less Ineligibles	 	 	 	 	 	 	 	 	 	 	 	 
	12

	 	 	 	 	 	Over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	13

	 	 	 	 	 	Credits over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	14

	 	 	 	 	 	Cross Age (25%)
	 	$______	 	 	 	 	 	 	 	 	 	 
	15

	 	 	 	 	 	Contras
	 	$______	 	 	 	 	 	 	 	 	 	 
	16

	 	 	 	 	 	Other
	 	$______	 	 	 	 	 	 	 	 	 	 
	17	 	 	 	Total Ineligibles [sum of 12 thr 16]	 	 	 	$______	 	 	 	 	 	 	 	 
	18	 	Eligible A/R-Permanent [10 minus 17]	 	 	 	 	 	$	______	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	19	 	A/R-Leasing	 	 	 	$______	 	 	 	 	 	 	 	 
	20	 	 	 	Less Ineligibles	 	 	 	 	 	 	 	 	 	 	 	 
	21

	 	 	 	 	 	Over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	22

	 	 	 	 	 	Credits over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	23

	 	 	 	 	 	Cross Age (25%)
	 	$______	 	 	 	 	 	 	 	 	 	 
	24

	 	 	 	 	 	Contras
	 	$______	 	 	 	 	 	 	 	 	 	 
	25

	 	 	 	 	 	Other
	 	$______	 	 	 	 	 	 	 	 	 	 
	26	 	 	 	Total Ineligibles [sum of 21 thr 25]	 	 	 	$______	 	 	 	 	 	 	 	 
	27	 	Eligible A/R-Leasing [19 minus 26]	 	 	 	 	 	$	______	 	 	 	 	 

C-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	28	 	Unbilled A/R-Temporary	 	 	 	$______	 	 	 	 	 	 	 	 
	29	 	 	 	Less Ineligibles	 	 	 	 	 	 	 	 	 	 	 	 
	30

	 	 	 	 	 	Over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	31

	 	 	 	 	 	Credits over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	32

	 	 	 	 	 	Cross Age (25%)
	 	$______	 	 	 	 	 	 	 	 	 	 
	33

	 	 	 	 	 	Contras
	 	$______	 	 	 	 	 	 	 	 	 	 
	34

	 	 	 	 	 	Other
	 	$______	 	 	 	 	 	 	 	 	 	 
	35	 	 	 	Total Ineligibles [sum of 30 thr 34]	 	 	 	$______	 	 	 	 	 	 	 	 
	36	 	Eligible Unbilled A/R-Temporary [28 minus 35]	 	 	 	 	 	$	______	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	37	 	Uniblled A/R-Permanent	 	 	 	$______	 	 	 	 	 	 	 	 
	38	 	 	 	Less Ineligibles	 	$______	 	 	 	 	 	 	 	 	 	 
	39

	 	 	 	 	 	Over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	40

	 	 	 	 	 	Credits over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	41

	 	 	 	 	 	Cross Age (25%)
	 	$______	 	 	 	 	 	 	 	 	 	 
	42

	 	 	 	 	 	Contras
	 	$______	 	 	 	 	 	 	 	 	 	 
	43

	 	 	 	 	 	Other
	 	$______	 	 	 	 	 	 	 	 	 	 
	44	 	 	 	Total Ineligibles [sum of 39 thr 43]	 	 	 	$______	 	 	 	 	 	 	 	 
	45	 	Eligible Unbilled A/R-Permanent [37 minus 44]	 	 	 	 	 	$	______	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	46	 	Unbilled A/R-Leasing	 	 	 	$______	 	 	 	 	 	 	 	 
	47	 	 	 	Less Ineligibles	 	$______	 	 	 	 	 	 	 	 	 	 
	48

	 	 	 	 	 	Over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	49

	 	 	 	 	 	Credits over 90 days
	 	$______	 	 	 	 	 	 	 	 	 	 
	50

	 	 	 	 	 	Cross Age (25%)
	 	$______	 	 	 	 	 	 	 	 	 	 
	51

	 	 	 	 	 	Contras
	 	$______	 	 	 	 	 	 	 	 	 	 
	52

	 	 	 	 	 	Other
	 	$______	 	 	 	 	 	 	 	 	 	 
	53	 	 	 	Total Ineligibles [sum of 48 thr 52]	 	 	 	$______	 	 	 	 	 	 	 	 
	54	 	Eligible Unbilled A/R-Leasing [46 minus 53]	 	 	 	 	 	$	______	 	 	 	 	 

C-2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	55	 	Total Eligible A/R [ 9 plus 18 plus 27]	 	 	 	 	 	$	______	 	 	 	 	 
	56	 	Rate of Advance	 	 	 	 	 	 	85	%	 	 	 	 
	57	 	Availability-A/R	 	 	 	 	 	 	 	 	 	$	______	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	58	 	Total Eligible Uniblled A/R [ 36 plus 45 plus 54]	 	 	 	 	 	$	______	 	 	 	 	 
	59	 	Rate of Advance	 	 	 	 	 	 	75	%	 	 	 	 
	60	 	Availability-Unbilled	 	 	 	 	 	 	 	 	 	$	______	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	61	 	Total Borrowing Base [57 plus 60]	 	 	 	 	 	 	 	 	 	$	______	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	62	 	Total Revolving Credit Commitments of all of the Banks	 	 	 	 	 	 	 	 	 	$	67,500,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	63	 	Borrower’s Maximum Revolving Credit Availability

(Lesser of Borrowing Base or Credit Commitments of all of the Banks)	 	 	 	 	 	 	 	 	 	$	______	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	64	 	Aggregate principal amount of outstanding Revolving Credit Loans	 	 	 	 	 	 	 	 	 	$	______	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	65	 	Unused Revolving Credit Availability [64 minus 63]

(Borrower’s Maximum Revolving Credit Availability Less Outstanding
Revolving Loans)	 	 	 	 	 	 	 	 	 	$	______	 

     If Item 65 above is negative, this Certificate is accompanied by the mandatory repayment
required by Section 2.9.2(b) of the Credit Agreement.

     This Borrowing Base Certificate is dated the ______ day of _______________, ____.

	 	 	 	 	 
	 	CBS PERSONNEL HOLDINGS, INC.
 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 
	 

C-3

 

Exhibit D

Form of 

Amended and Restated Promissory Note

			
	$155,035,620
	 	April 30, 2009

Westport, Connecticut

                    The undersigned, for value received, promise to pay to the order of Compass Group Diversified
Holdings LLC (“Lender”) at its principal office of 61 Wilton Road, Westport, Connecticut
06880, the aggregate unpaid amount of all Loans made to the undersigned 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.

                    The undersigned further promise to pay, jointly and severally, 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 Amended and Restated Promissory Note (“Note”) evidences indebtedness incurred
under, and is subject to the terms and provisions of, that certain Amended and Restated Credit
Agreement, dated as of March 31, 2009 as amended prior to the date hereof and further amended as of
the date hereof (as amended and as may be further 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 the undersigned and Lender, 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 evidences indebtedness of the undersigned previously evidenced by (i) that certain
Promissory Note dated January 21, 2008 in the original principal amount of $169,102,010 (the
“Prior Note”), which Prior Note is replaced by this Note; provided, however, that this Note
shall not be construed as evidence of repayment or readvance of the indebtedness evidenced by the
Prior Note, it being the intention of the undersigned, and, by its acceptance, Lender, that the
indebtedness evidenced by this Note is the indebtedness evidenced by the Prior Note. This Note
shall not be construed as a novation or be construed in any manner as an extinguishment of the
obligations arising under the Prior Note or to affect the priority of the security interests, liens
or mortgages granted in connection with the Prior Note.

{Remainder of page blank; execution page follows}

D-1

 

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

	 	 	 	 	 
	 	CBS Personnel Holdings, Inc.

 	 
	 	By:  	 	 
	 	 	William E. Aglinsky, Chief Financial Officer 	 
	 	 	 	 

D-2

 

	 	 	 	 	 

Exhibit E

Form of Notice of Borrowing

                    Please refer to the Amended and Restated Credit Agreement dated as of March 31, 2009 (as
amended or otherwise modified from time to time, the “Credit Agreement”) between the
undersigned (“Borrower”) and Compass Group Diversified Holdings LLC, as Lender.
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 [________, 200__]. 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 or 3 months).

                    Borrower has caused this Notice to be executed and delivered by its officer or designee
thereunto duly authorized on [______, 200__].

	 	 	 	 	 
	 	CBS Personnel Holdings, Inc.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 

E-1

 

	 	 	 	 	 

Exhibit F

Form of Notice of Conversion/Continuation

                    Please refer to the Amended and Restated Credit Agreement dated as of March 31, 2009 (as
amended or otherwise modified from time to time, the “Credit Agreement”) between the
undersigned (“Borrower”) and Compass Group Diversified Holdings LLC, as Lender.
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 2.2.3 of the Credit
Agreement. Borrower hereby requests a [conversion][continuation] of [Term A Loans][Term B
Loans][Revolving Loans] as follows:

                    The date of the proposed [conversion] [continuation] is [______, 200__] (which shall be a
Business Day). The aggregate amount of the [Term [A][B] Loans] [Revolving 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 or 3
months).

                    Borrower has caused this Notice to be executed and delivered by its officer thereunto duly
authorized on [______, 200__].

	 	 	 	 	 
	 	CBS Personnel Holdings, Inc.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 

F-1

 

	 	 	 	 	 

Exhibit G

Form of 

Maintenance Agreement

(see attached)

G-1

 

Execution Copy

AMENDED AND RESTATED MAINTENANCE AGREEMENT

          THIS AMENDED AND RESTATED MAINTENANCE AGREEMENT (as amended, supplemented or modified from
time to time, this “Agreement”), entered into as of May 27, 2009 and effective as of March 31,
2009, by and among CBS PERSONNEL HOLDINGS, INC., a Delaware corporation (the “Borrower”), COMPASS
GROUP DIVERSIFIED HOLDINGS, LLC, a Delaware limited liability company, in its capacity as
stockholder of the Borrower (“CODI”), STAFFING HOLDING LLC, a Delaware limited liability company
(“Stephens” and, together with CODI, the “Sponsors”), and COMPASS GROUP DIVERSIFIED HOLDINGS, LLC,
a Delaware limited liability company, in its capacity as lender to the Borrower (the “Bank”).

WITNESSETH:

          WHEREAS, Borrower and Bank have entered into that certain Amended and Restated Credit
Agreement dated as of March 31, 2009 (as may be amended, modified, restated or otherwise
supplemented from time to time, the “Credit Agreement”);

          WHEREAS, as a condition precedent to the effectiveness of the Credit Agreement, CODI executed
and delivered to Bank that certain Maintenance Agreement, entered into as of April 30, 2009 (the
“Original Agreement”);

          WHEREAS, Stephens has exercised certain preemptive rights and, pursuant thereto, will,
concurrently herewith, subscribe to 810,818 shares of Class D Common Stock (as defined below) at an
issue price per share of $6.00, such subscription representing 13.90% of the total number of shares
of Class D Common Stock to be issued on or about the date hereof;

          WHEREAS, CODI and Stephens desire that Stephens be added as a Sponsor-party to the Original
Agreement and have requested that the Bank agree to Stephens becoming a Sponsor-party; and

          WHEREAS, the Bank is agreeable to Stephens becoming a Sponsor-party to the Original Agreement
on the terms and conditions set forth herein.

          NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein and in the Credit Agreement, the parties agree as follows:

          SECTION 1.1 Definitions. Except as otherwise defined herein, all capitalized terms
used herein and defined in the Credit Agreement are used herein as therein defined. As used
herein, the following terms shall have the following meanings:

          Class D Common Stock means the Borrower’s Class D Common Stock, $.001 par value per
share.

 

 

          Ratable Share means, with respect to CODI, 86.10% and, with respect to Stephens,
13.90%.

          Sponsor Investment means an investment in Borrower by Sponsor of cash in exchange for
such class or classes of equity securities of Borrower, and in such manner and on such terms and
subject to such conditions, as CODI and Borrower shall agree.

          Sponsor Investment Amount means, for each Sponsor, with respect to each Sponsor
Investment Event at any Fiscal Quarter-end, an amount (not less than zero) which, when included in
the computation of the Maintenance Fixed Charge Coverage Ratio for such Fiscal Quarter, would
result in such Maintenance Fixed Charge Coverage Ratio being equal to 1.0 to 1.0 for such
Computation Period multiplied by such Sponsor’s Ratable Share.

          Sponsor Investment Event means the occurrence at any Fiscal Quarter-end of a
Maintenance Fixed Charge Coverage Ratio determined for such Fiscal Quarter (without consideration
of any Sponsor Investment to be made in respect of such Fiscal Quarter absent this Agreement) which
is less than 1.0:1.0, and such Sponsor Investment Event shall have occurred on or before the
earlier of (a) December 31, 2011 and (b) the date on which (i) all of the Obligations shall have
been Paid in Full, (ii) no Letter of Credit shall remain outstanding, and (iii) there shall be no
remaining Commitment or obligation of the Bank to advance funds, make loans, issue Letters of
Credit or extend credit to or for the account of the Borrower under the Credit Agreement or
otherwise.

          Sponsor Bankruptcy Event shall mean, with respect to each Sponsor, the occurrence of
any of the events described in Section 8.1.3 of the Credit Agreement, except that instead of any
such event occurring with respect to the Borrower, such event shall have occurred with respect to
such Sponsor.

          Sponsor Event of Default means any of the events specified in Section 8;
provided that any requirement for passage of time, giving of notice or any other condition
has been satisfied.

          SECTION 1.2 Interpretations. In the case of this Agreement, (a) the meanings of
defined terms are equally applicable to the singular and plural forms of the defined terms; (b) the
term “including” is not limiting and means “including but not limited to”; (c) 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”; (d) unless otherwise expressly provided herein, 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; (e) this Agreement is the result of negotiations among and have been reviewed by
counsel to Bank, each Sponsor and Borrower and the other parties thereto and is the product of all
such parties; accordingly, they shall not be construed against any party merely because of such
party’s involvement in its preparation; and (f) the term “or” has, except where otherwise
indicated, the inclusive meaning represented by the phrase “and/or”.

-3-

 

          SECTION 2. Required Sponsor Investments in Borrower.

                    (a) Each Sponsor hereby absolutely, irrevocably and unconditionally agrees that on or before
the date that is forty-five (45) days after each Fiscal Quarter-end for which a Sponsor Investment
Event has occurred (as evidenced by the Compliance Certificate for such Fiscal Quarter-end, a copy
of which shall be delivered to each Sponsor by Borrower concurrently with its delivery to Bank),
such Sponsor shall make or cause to be made, via wire transfer of immediately available funds to
such account as may from time to time be designated by Borrower, a Sponsor Investment in an amount
equal to its Ratable Share of the applicable Sponsor Investment Amount.

                    (b) From the date of the occurrence of the Sponsor Investment Event and until the required
Sponsor Investment Amount has been invested as a Sponsor Investment, the Sponsor Investment Amount
shall be deemed to be held in trust by the applicable Sponsor for and as the property of the
Borrower.

                    (c) In the event of the occurrence of a Sponsor Event of Default described in Section 8(b)
with respect to a Sponsor Investment Event by a Sponsor (the “Defaulting Sponsor”), in
addition to and without limiting the remedies of any party set forth in Section 9, the other
Sponsor (provided a Sponsor Event of Default has not occurred and is continuing with respect to
such other Sponsor) (the “Non-Defaulting Sponsor”) may, in addition to investing its
Ratable Portion of the applicable Sponsor Investment Amount, invest an additional amount equal to
the Defaulting Sponsor’s unpaid Sponsor Investment Amount in equity securities of Borrower, in each
case in such class or classes of shares, in such manner and on such terms and subject to such
conditions as the Non-Defaulting Sponsor and Borrower may agree.

                    (d) Stephens hereby agrees that its preemptive rights under Section 3 of that certain
Stockholders’ Agreement, dated as of February 1, 2008 and as may be amended from time to time,
among the Company, CODI, Stephens and the other Restricted Stockholders party thereto, shall not
apply to any investment in the Company made by CODI pursuant to this Section 2 in Class D Common
Stock at an issue price of not less than $6 per share, and hereby waives all notice provisions
contained in such Section 3 with respect to such investments. For the avoidance of doubt, Stephens
does not hereby waive its preemptive rights with respect to any investment by CODI other than
investments pursuant to this Agreement in Class D Common Stock at an issue price of not less than
$6 per share.

          SECTION 3. Representations and Warranties. Each Sponsor hereby represents and
warrants to the Bank that as of the date hereof:

                    (a) Organization; Power; Qualification. Such Sponsor is a limited liability company
duly organized, validly existing and in good standing under the laws of the State of Delaware, and
has all power and authority under such laws required to carry on its business as now conducted.

-4-

 

                    (b) Authorization. Such Sponsor has the power and authority to enter into this
Agreement, to perform its obligations hereunder and to consummate the
transactions contemplated hereby, and has by proper partnership action duly authorized the execution, delivery
and performance of this Agreement.

                    (c) Enforceable Obligations. This Agreement has been duly executed and delivered by
such Sponsor and constitutes the legal, valid and binding obligation of such Sponsor, enforceable
in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditor’s rights generally and by equitable principles relating to enforceability.

                    (d) No Conflicts or Consents. Neither the execution and delivery of this Agreement,
nor the consummation of the transactions contemplated therein, nor performance of and compliance
with the terms and provisions thereof will (i) violate or conflict with any provision of such
Sponsor’s limited liability company agreement, (ii) violate any law, rule or regulation binding on
such Sponsor, or any order, writ, judgment, injunction, decree, award or permit applicable to such
Sponsor, (iii) violate in any material respect or materially conflict with any or cause any default
or event of default under, any of the provisions of any indenture, agreement, document, instrument
or undertaking to which such Sponsor is a party or subject, or by which such Sponsor or any
Property of such Sponsor is or may be bound, or (iv) result in or require the creation or
imposition of any Lien, security interest or other charge or encumbrance (other than those
contemplated in or in connection with this Agreement) upon or with respect to any of the assets of
such Sponsor.

                    (e) Consents. No consent, approval, license, authorization, order or validation of,
or filing, registration, recording or qualification with, or exemption by, any court or any
governmental, regulatory, administrative or public body or authority, or any subdivision thereof,
or any other Person is required in connection with the execution, delivery or performance of this
Agreement by such Sponsor.

          SECTION 4. Sponsor Covenants. Each Sponsor hereby covenants and agrees with Bank
that so long as this Agreement is in effect:

                    (a) Preservation of Existence and Related Matters. Such Sponsor will preserve and
maintain its separate partnership existence and all rights, franchises, licenses and privileges
necessary to the conduct of its business, and qualify and remain qualified as a limited liability
company and authorized to do business in each jurisdiction in which the failure to so qualify could
reasonably be expected to have a material adverse effect on the Sponsor.

                    (b) Compliance With Law. Such Sponsor will observe and remain in compliance in all
material respects with all laws, rules, regulations, orders, writs, judgments, injunctions,
decrees, awards or permits binding on or applicable to such Sponsor and maintain in full force and
effect all governmental licenses, authorizations, consents and approvals, in each case applicable
to and necessary for the conduct of its business as then being conducted, except

-5-

 

to the extent the failure to so comply and/or maintain could not reasonably be expected to have a material adverse
effect on such Sponsor.

                    (c) Books, Records and Inspections. Such Sponsor will keep complete and accurate
books and records of its transactions in accordance with good accounting practices (including the
establishment and maintenance of appropriate reserves).

                    (d) Consolidation or Merger. Such Sponsor will not dissolve, liquidate or wind up its
affairs. Such Sponsor also will not be a party to any transaction of merger or consolidation in
which it merges or consolidates with or into another Person, unless (i) the net worth of the
resulting entity is at least equal to the net worth of such Sponsor immediately preceding such
merger or consolidation, and (ii) the resulting entity, if not such Sponsor, shall assume all of
such Sponsor’s duties and obligations under this Agreement and all other agreements executed by
such Sponsor concerning its obligations in respect of this Agreement in a manner and pursuant to
such documentation as the Bank may require.

          SECTION 5. Assignment For the Benefit of the Bank.

                    (a) As collateral security for the prompt payment in full when due (whether at stated
maturity, by acceleration or otherwise) of the Obligations, Borrower hereby pledges, grants and
collaterally assigns to the Bank a security interest in all (i) right, title and interest of
Borrower in and to this Agreement and to all funds paid and to be paid by the Sponsors or one or
more of their designees, as the case may be, pursuant to this Agreement, and (ii) all other claims,
rights, powers, privileges, interests and remedies of Borrower arising under this Agreement and
resulting from any failure by the Sponsors or one or more of their designees, as the case may be,
to perform their obligations hereunder, together in each case with the full power and authority to
demand payment of, enforce, collect, receive and deliver receipt for any and all of the foregoing.

                    (b) Each Sponsor hereby consents to the foregoing pledge and assignment.

          SECTION 6. Obligations Independent. The obligations of each Sponsor and Borrower
hereunder are independent of the obligations of the other Sponsor and Borrower, any other
guarantor(s) of any or all of the Obligations or any other party, and a separate action or actions
may be brought and prosecuted against one or both of the Sponsors whether or not an action is
brought against the Borrower, any other such guarantor(s) of any or all of the Obligations or any
other party and whether or not any Sponsor, the Borrower, any other such guarantor(s) of any or all
of the Obligations or any other party shall be joined in any such action or actions.

          SECTION 7. Actions Relating to Obligations Under Credit Agreement. Subject to
limitations under the Credit Agreement, the Credit Agreement may be amended, restated or otherwise
modified by the Bank and Borrower at any time and from time to time without the consent of, or
notice to, the Sponsors, without incurring responsibility to the Sponsors, without impairing or
releasing the obligations of the Sponsors hereunder, upon or without any terms or conditions and in
whole or in part to, among other things:

-6-

 

                    (a) change the manner, place or terms of payment of, increase or decrease the amount of,
change the interest rates on, and/or change or extend the time of payment of, renew or alter any of
the Obligations, any security therefor, or any liability incurred directly or indirectly in respect
thereof;

                    (b) take and hold security for the payment of the Obligations and sell, exchange, release,
impair, surrender, realize upon or otherwise deal with in any manner and in any order any property
by whomsoever at any time pledged or mortgaged to secure, or howsoever securing, the Obligations or
any liabilities (including any of those hereunder) incurred directly or indirectly in respect
thereof or hereof, and/or any offset there against;

                    (c) exercise or refrain from exercising any rights against the Borrower and/or any
guarantor(s) of any or all of the Obligations, and otherwise act or refrain from acting with
respect to any of the Borrowers and/or any other such guarantor(s) of any or all of the
Obligations;

                    (d) settle or compromise any of the Obligations, any security therefor or any liability
(including any of those hereunder) incurred directly or indirectly in respect thereof or hereof,
and may subordinate the payment of all or any part thereof to the payment of any liability (whether
due or not) of the Borrower and/or any guarantor(s) of any or all of the Obligations, to creditors
of the Borrower or any such guarantor other than the Bank;

                    (e) except as otherwise expressly provided herein, apply any sums by whomever paid or however
realized to any liability or liabilities of the Borrower and/or any guarantor(s) of the Obligations
regardless of what liability or liabilities of the Sponsors, the Borrower and/or any guarantor(s)
of any or all of the Obligations remain unpaid;

                    (f) Release, substitute or otherwise deal with any one or more endorsers or guarantor(s) of
any or all of the Obligations;

                    (g) act or fail to act in any manner referred to in this Agreement which may deprive the
Sponsors of any right of subrogation against Borrower and/or any guarantor(s) of any or all of the
Obligations to recover any payments made pursuant to this Agreement;

                    (h) pursue its rights and remedies under this Agreement, and/or any guaranty of all or any
part of the Obligations in whatever order, or collectively, and the Bank shall be entitled to the
each Sponsor’s performance hereunder, notwithstanding any action taken (or not taken) by the Bank
to enforce any of its rights or remedies against the Sponsors or any other Person, for all or any
part of the Obligations or any payment received under this Agreement, any guaranty; and/or

                    (i) take any other action which would, under otherwise applicable principles of common law,
give rise to a legal or equitable discharge of the Sponsors from their liabilities under this
Agreement.

-7-

 

          SECTION 8. Sponsor Events of Default. With respect to each Sponsor, each of the
following shall constitute a Sponsor Event of Default, whatever the reason for such event and
whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any
judgment or order of any court or any order, rule or regulation of any governmental, regulatory,
administrative or public body or authority, or any subdivision thereof, or otherwise:

                    (a) Effectiveness of Agreement. This Agreement or any provision hereof shall cease to
be in full force and effect with respect to such Sponsor, or such Sponsor or any Person acting by
or on behalf of such Sponsor shall deny or disaffirm such Sponsor’s obligations under this
Agreement.

                    (b) Payment. Such Sponsor shall default in the payment when due of any Sponsor
Investment Amount and such default shall continue unremedied after the date that is two (2)
Business Days after Borrower notifies such Sponsor in writing of such default in payment.

                    (c) Representations. Any representation, warranty or statement made or deemed to be
made by such Sponsor herein (which such representations and warranties are made only as of the date
hereof) or in any statement or certificate delivered or required to be delivered pursuant hereto or
thereto shall prove untrue in any material respect on the date as of which it was deemed to have
been made.

                    (d) Covenants. Such Sponsor shall default in the due performance or observance of any
term, covenant or agreement:

          (i) contained in Section 4(d); or

          (ii) contained in Section 4(a) and such default shall continue
unremedied for a period of fifteen (15) days after the earlier of the day on
which an officer of Borrower first obtains knowledge of such event or the
day on which written notice of such default is given to the Sponsor by
either the Bank or the Borrower; or

          (iii) contained in any Section of this Agreement (other than those
Sections specifically referred to in Section 8(a), Section 8(b), Section
8(c) Section 8(d)(i) or (ii) or Section 8(e)), and such
default shall continue unremedied for a period of thirty (30) days after
notice thereof by the Bank.

                    (e) Sponsor Bankruptcy Event. A Sponsor Bankruptcy Event shall occur.

          SECTION 9. Exercise of Remedies. Upon the occurrence and during the continuance of a
Sponsor Event of Default by a Sponsor, the Bank, the Borrower and the other Sponsor (provided a
Sponsor Event of Default has not occurred and is then continuing with respect to such other
Sponsor) shall have all rights and remedies available to them under applicable law and/or as
provided in this Agreement; provided, however, that neither Sponsor shall have any

-8-

 

obligation or liability to either the Bank or the Borrower in respect of a Sponsor Event of Default of the other
Sponsor.

          SECTION 10. Invalidity, Etc. of Obligations. No invalidity, irregularity or
unenforceability of all or any of the Loans and/or any of the other Obligations or of any security
therefor shall affect, impair or be a defense to this Agreement, and the obligations of each
Sponsor hereunder shall be absolute and unconditional notwithstanding the occurrence of any event
or the existence of any circumstance, including, without limitation, any bankruptcy or insolvency
proceeding with respect to any Sponsor, the Borrower, any of Borrower’s Subsidiaries and/or any
other guarantor(s) of any or all of the Obligations, if any, or any event or circumstance which
would constitute a legal or equitable discharge, except payment in full in cash of all Obligations
in accordance with the Credit Agreement.

          SECTION 11. Waivers of Failures; Delays; Etc. No failure or delay on the part of the
Bank, the Borrower or any Sponsor in exercising any right, power or privilege hereunder and no
course of dealing between the Bank, the Sponsors or the Borrower shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
rights, powers and remedies herein expressly provided are cumulative and not exclusive of any
rights, powers or remedies which either the Borrower or the Bank would otherwise have. No notice
to or demand on either Sponsor in any case shall entitle the Sponsors to any other further notice
or demand in similar or other circumstances or constitute a waiver of the rights of either of the
Borrower or the Bank to any other or further action in any circumstances without notice or demand.
Notice of the incurrence of any of Obligations, and presentment, demand for payment, notice of
dishonor, protest, notice of protest and of default by the Borrower are hereby waived by the
Sponsors.

          SECTION 12. Benefit of Agreement. This Agreement shall be binding upon the Sponsors,
the Borrower and their respective successors and assigns and shall inure to the benefit of the
Borrower and the Bank and their successors and assigns. Each of the Sponsors and the Borrower
acknowledges and agrees that this Agreement is made for the benefit of the Borrower and the Bank
and that either the Borrower and/or the Bank may enforce all of the obligations of one or both of
the Sponsors hereunder directly against it. Except as provided in Section 5 ̧ none of the Sponsors
or the Borrower may assign any of its respective rights or obligations hereunder without the
consent of the Bank. This Agreement is not being made for the benefit of any persons other than
those identified above, and no person other than those identified above shall have any rights
hereunder.

          SECTION 13. Amendments; Waivers. Neither this Agreement nor any provision hereof may
be changed, modified, amended or waived except with the written consent of both Sponsors, the
Borrower and the Bank.

          SECTION 14. Notices. Any notice, request, demand, consent, confirmation or other
communication under this Agreement shall be in writing and delivered in person or sent by telecopy,
recognized overnight courier or registered or certified mail, return receipt requested

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and postage prepaid, to the applicable party at its address or telecopy number set forth on the signature pages
hereof, or at such other address or telecopy number as any party hereto may designate as its
address or telecopy number for communications hereunder by notice so given. Such notices shall be
deemed effective on the day on which delivered or sent if delivered in person or sent by telecopy
(with answerback confirmation received), on the first (1st) Business Day after the day on which
sent, if sent by recognized overnight courier or on the third (3rd) Business Day after the day on
which mailed, if sent by registered or certified mail.

          SECTION 15. Termination of Agreement; Rescission.

                    (a) This Agreement shall terminate and be of no further force and effect upon the earliest of
(i) the date on which no further Sponsor Investment Events can occur under this Agreement and all
Sponsor Payment Amounts have been paid in full, and (ii) the date on which (A) all of the
Obligations shall have been Paid in Full, (B) no Letters of Credit shall remain outstanding, and
(C) there shall be no remaining commitment or obligation of the Bank to advance funds, make loans,
issue letters of credit or extend credit to or for the account of the Borrower under the Credit
Agreement or otherwise.

                    (b) To the fullest extent permitted by law, this Agreement shall continue to be effective or
shall be reinstated, as the case may be, if at any time any payment (or part thereof) made or
caused to be made by any Sponsor pursuant to this Agreement, is rescinded or must otherwise be
restored or returned by any beneficiary of this Agreement upon the insolvency, bankruptcy or
reorganization of any Person or otherwise, all as though such payment had not been made.

          SECTION 16. Costs of Enforcement; Indemnity. The Borrower hereby agrees to pay all
out-of-pocket costs and expenses (including, without limitation, in each case, the reasonable fees
and disbursements of counsel) of the Bank in connection with the enforcement of this Agreement.
The Borrower hereby agrees to pay all out-of-pocket costs and expenses of the Bank in connection
with any amendment, waiver or consent relating hereto (including, without limitation, in each case,
the reasonable fees and disbursements of counsel employed by the Bank).

          SECTION 17. Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement and any number of separate counterparts, each of which when so executed,
shall be deemed an original and all said counterparts when taken together shall be deemed to
constitute but one and the same instrument.

          SECTION 18. Successors and Assigns. This Agreement shall be binding upon and inure
to the parties hereto and their successors and permitted assigns (as determined in accordance with
the Credit Agreement.) Neither Sponsor may assign or otherwise transfer any of its rights or
delegate any of its obligations or duties under this Agreement without the prior written consent of
the Borrower, the Bank and the other Sponsor.

-10-

 

          SECTION 19. Further Assurance. Each Sponsor hereby agrees from time to time, as and
when requested by the Bank, to execute and deliver or cause to be executed and delivered, all such
documents, instruments and agreements and to take or cause to be taken such further or other action
as the Bank may reasonably deem necessary or desirable in order to carry out the intent and
purposes of this Agreement.

          SECTION 20. Consent to Jurisdiction; Waiver of Jury Trial. EACH OF BORROWER AND EACH
SPONSOR IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF ANY OF THE COURTS OF THE STATE OF
NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE, SITTING IN THE
BOROUGH OF MANHATTAN) AS THE BANK MAY ELECT, IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT. EACH OF BORROWER AND EACH SPONSOR HEREBY IRREVOCABLY AGREES THAT ALL
CLAIMS IN RESPECT TO SUCH SUIT, ACTION OR PROCEEDING MAY BE HELD AND DETERMINED IN ANY OF SUCH
COURTS. EACH OF BORROWER AND EACH SPONSOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY OBJECTION WHICH EACH SUCH BORROWER OR SPONSOR MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT, AND EACH OF THE BORROWER
AND EACH SPONSOR FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE BORROWER AND THE EACH
SPONSOR AUTHORIZES THE SERVICE OF PROCESS UPON IT BY REGISTERED MAIL SENT TO SUCH BORROWER OR
SPONSOR, AS THE CASE MAY BE, AT ITS ADDRESS DETERMINED PURSUANT TO SECTION 14. EACH OF THE
BORROWER, THE SPONSORS AND THE BANK HEREBY IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY WITH
RESPECT TO ANY ACTION IN WHICH THE BANK AND/OR BORROWER AND/OR EITHER OF THE SPONSORS ARE PARTIES
RELATING TO OR ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

          SECTION 21. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.

          SECTION 22. Severability. Wherever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under such law, such provision shall
be ineffective to the extent of such prohibition or invalidity without invalidating the remainder
of such provision or the remaining provisions of this Agreement.

          SECTION 23. Headings. The various headings of this Agreement are inserted for
convenience only and shall not affect the meaning or interpretation of this Agreement or any
provisions hereof.

-11-

 

          IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	COMPASS GROUP DIVERSIFIED HOLDINGS, LLC,

as a Sponsor

 
	 	By:  	 /s/
I. Joseph Massoud	 
	 	 	I. Joseph Massoud, CEO 	 

	 	 	 	 	 
	 	Address: 2010 Main Street, Suite 1020

                  Irvine, CA 92614

Attention: Elias J. Sabo

Telecopy No.: (949) 333-5043

STAFFING HOLDING LLC,

as a Sponsor

 	 
	 	By:  	SF Holding Corp.
 	 
	 	Its: 	Manager 	 
	 	 	 
	 	By:  	

 /s/ Jackson Farrow, Jr.	 
	 	 	Jackson Farrow, Jr. 	 
	 	Its: 	Senior Vice President 

 	 
	 	Address: c/o Stephens Capital Partners LLC

                111 Center Street, Suite 2500

                Little Rock, AR 72201

	 
	 	Attention:        Jackson Farrow, Jr.
	 
	 	Telecopy No.: (501) 210-4615

    	 
	 	

COMPASS GROUP DIVERSIFIED HOLDINGS, LLC,

as the Bank

 
	 	By:  	 /s/
James J. Bottiglieri	 
	 	 	James J. Bottliglieri, CFO
 	 
	 	Address: Sixty One Wilton Road, Second Floor 

                Westport, CT 06880

-12-

 

	 	 	 	 	 
	 	Attention: 
      
James J. Bottiglieri
	 
	 	Telecopy No.: (203) 221-8253
 	 
	 	CBS PERSONNEL HOLDINGS, INC.

 	 
	 	By:  	 /s/
William Aglinsky	 
	 	 	William Aglinsky, CFO

 	 
	 	Address: 435 Elm Street

                Cincinnati, Ohio  45202

	 
	 	Attention:        William Aglinsky, Chief Financial Officer
	 	Telecopy No.:  866.728.8889 
	 

-13-

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