Document:

Exhibit 4.3

 

Exhibit 4.3

EXECUTION COPY

 

CREDIT AGREEMENT

dated as of October 27, 2005

among

AMERICAN WHOLESALE INSURANCE GROUP, INC.,

as Borrower,

THE FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders,

and

MADISON CAPITAL FUNDING LLC,

as Agent

 

MADISON CAPITAL FUNDING LLC,

as Lead Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	Section 1. Definitions; Interpretation
	 	 	1	 
	 
	 	 	 	 
	1.1. Definitions
	 	 	1	 
	1.2. Interpretation
	 	 	13	 
	1.3. Accounting Changes
	 	 	14	 
	 
	 	 	 	 
	Section 2. Credit Facilities
	 	 	14	 
	 
	2.1. Commitments
	 	 	14	 
	2.1.1. Revolving Loan Commitments
	 	 	14	 
	2.1.2. Term Loan Commitments
	 	 	14	 
	 
	 	 	 	 
	2.2. Loan Procedures
	 	 	14	 
	2.2.1. Loan Types
	 	 	14	 
	2.2.2. Borrowing
	 	 	15	 
	2.2.3. Conversion; Continuation
	 	 	15	 
	 
	 	 	 	 
	2.3. Letters of Credit
	 	 	16	 
	2.3.1. Commitment
	 	 	16	 
	2.3.2. Application
	 	 	16	 
	2.3.3. Reimbursement Obligations
	 	 	16	 
	2.3.4. Participations in Letters of Credit
	 	 	17	 
	 
	 	 	 	 
	2.4. Commitments Several
	 	 	18	 
	 
	 	 	 	 
	2.5. Certain Conditions
	 	 	18	 
	 
	 	 	 	 
	2.6. Loan Accounting
	 	 	18	 
	2.6.1. Recordkeeping
	 	 	18	 
	2.6.2. Notes
	 	 	18	 
	 
	 	 	 	 
	2.7. Interest
	 	 	18	 
	2.7.1. Interest Rates
	 	 	18	 
	2.7.2. Interest Payment Dates
	 	 	19	 
	2.7.3. Setting and Notice of LIBOR Rates
	 	 	19	 
	2.7.4. Computation of Interest
	 	 	19	 
	 
	 	 	 	 
	2.8. Fees
	 	 	19	 
	2.8.1. Commitment Fee
	 	 	19	 
	2.8.2. Letter of Credit Fees
	 	 	19	 
	2.8.3. Agent’s Fees
	 	 	20	 
	 
	 	 	 	 
	2.9. Commitment Reduction
	 	 	20	 
	2.9.1. Voluntary Reduction or Termination of Revolving Loan Commitment
	 	 	20	 
	2.9.2. Mandatory Reduction of Revolving Loan Commitment
	 	 	20	 
	2.9.3. All Reductions of Revolving Loan Commitment
	 	 	20	 
	 
	 	 	 	 
	2.10. Prepayment
	 	 	20	 
	2.10.1. Voluntary Prepayment
	 	 	20	 
	2.10.2. Mandatory Prepayment
	 	 	21	 
	2.10.3. All Prepayments
	 	 	21	 
	 
	 	 	 	 
	2.11. Repayment
	 	 	22	 
	2.11.1. Revolving Loans
	 	 	22	 
	2.11.2. Term Loan
	 	 	22	 

 

 

	 	 	 	 	 
	 	 	 	Page	 
	2.12. Payment
	 	 	23	 
	2.12.1. Making and Settlement of Payments
	 	 	23	 
	2.12.2. Application of Payments and Proceeds
	 	 	23	 
	2.12.3. Payment Dates
	 	 	24	 
	2.12.4. Set-off
	 	 	24	 
	2.12.5. Proration of Payments
	 	 	24	 
	 
	 	 	 	 
	Section 3. Yield Protection
	 	 	25	 
	 
	 	 	 	 
	3.1. Taxes
	 	 	25	 
	3.2. Increased Cost
	 	 	26	 
	3.3. Inadequate or Unfair Basis
	 	 	27	 
	3.4. Change in Law
	 	 	27	 
	3.5. Funding Losses
	 	 	27	 
	3.6. Manner of Funding; Alternate Funding Offices
	 	 	28	 
	3.7. Mitigation of Circumstances; Replacement of Lenders
	 	 	28	 
	3.8. Conclusiveness of Statements; Survival
	 	 	29	 
	 
	 	 	 	 
	Section 4. Conditions Precedent
	 	 	29	 
	 
	 	 	 	 
	4.1. Initial Credit Extension
	 	 	29	 
	4.1.1. Capitalization; Adjusted EBITDA
	 	 	29	 
	4.1.2. Initial Loans
	 	 	29	 
	4.1.3. Prior Debt
	 	 	29	 
	4.1.4. Related Transactions
	 	 	29	 
	4.1.5. Fees
	 	 	29	 
	4.1.6. Delivery of Loan Documents
	 	 	30	 
	 
	 	 	 	 
	4.2. All Credit Extensions
	 	 	31	 
	 
	 	 	 	 
	Section 5. Representations and Warranties
	 	 	31	 
	 
	 	 	 	 
	5.1. Organization
	 	 	32	 
	5.2. Authorization; No Conflict
	 	 	32	 
	5.3. Validity; Binding Nature
	 	 	32	 
	5.4. Financial Condition
	 	 	32	 
	5.5. No Material Adverse Change
	 	 	33	 
	5.6. Litigation
	 	 	33	 
	5.7. Ownership of Properties; Liens
	 	 	33	 
	5.8. Capitalization
	 	 	33	 
	5.9. Pension Plans
	 	 	33	 
	5.10. Investment Company Act
	 	 	34	 
	5.11. Public Utility Holding Company Act
	 	 	34	 
	5.12. Margin Stock
	 	 	34	 
	5.13. Taxes
	 	 	34	 
	5.14. Solvency
	 	 	34	 
	5.15. Environmental Matters
	 	 	35	 
	5.16. Insurance
	 	 	35	 

-ii-

 

	 	 	 	 	 
	 	 	 	Page	 
	5.17. Information
	 	 	35	 
	5.18. Intellectual Property
	 	 	36	 
	5.19. Restrictive Provisions
	 	 	36	 
	5.20. Labor Matters
	 	 	36	 
	5.21. No Default
	 	 	36	 
	5.22. Related Agreements
	 	 	36	 
	5.23. Retail Brokers and Insurance Companies
	 	 	37	 
	 
	 	 	 	 
	Section 6. Affirmative Covenants
	 	 	37	 
	 
	 	 	 	 
	6.1. Information
	 	 	37	 
	6.1.1. Annual Report
	 	 	37	 
	6.1.2. Interim Reports
	 	 	38	 
	6.1.3. Compliance Certificate
	 	 	38	 
	6.1.4. Reports to SEC and Shareholders
	 	 	38	 
	6.1.5. Notice of Default; Litigation; ERISA Matters
	 	 	38	 
	6.1.6. Management Report
	 	 	39	 
	6.1.7. Projections
	 	 	39	 
	6.1.8. Second Lien Debt and Subordinated Debt Notices
	 	 	39	 
	6.1.9. Subsidiary Formation
	 	 	39	 
	6.1.10. Other Information
	 	 	39	 
	 
	 	 	 	 
	6.2. Books; Records; Inspections
	 	 	40	 
	 
	 	 	 	 
	6.3. Maintenance of Property; Insurance
	 	 	40	 
	 
	 	 	 	 
	6.4. Compliance with Laws; Payment of Taxes and Liabilities
	 	 	41	 
	 
	 	 	 	 
	6.5. Maintenance of Existence
	 	 	41	 
	 
	 	 	 	 
	6.6. Employee Benefit Plans
	 	 	41	 
	 
	 	 	 	 
	6.7. Environmental Matters
	 	 	41	 
	 
	 	 	 	 
	6.8. Further Assurances
	 	 	42	 
	 
	 	 	 	 
	6.9. Interest Rate Protection
	 	 	42	 
	 
	 	 	 	 
	Section 7. Negative Covenants
	 	 	42	 
	 
	 	 	 	 
	7.1. Debt
	 	 	42	 
	 
	 	 	 	 
	7.2. Liens
	 	 	43	 
	 
	 	 	 	 
	7.3. Reserved
	 	 	45	 
	 
	 	 	 	 
	7.4. Restricted Payments
	 	 	45	 
	 
	 	 	 	 
	7.5. Mergers; Consolidations; Asset Sales
	 	 	46	 
	 
	 	 	 	 
	7.6. Modification of Organizational Documents
	 	 	46	 
	 
	 	 	 	 
	7.7. Use of Proceeds
	 	 	47	 
	 
	 	 	 	 
	7.8. Transactions with Affiliates
	 	 	47	 
	 
	 	 	 	 
	7.9. Inconsistent Agreements
	 	 	47	 
	 
	 	 	 	 
	7.10. Business Activities
	 	 	48	 
	 
	 	 	 	 
	7.11. Investments
	 	 	48	 
	 
	 	 	 	 
	7.12. Restriction of Amendments to Certain Documents
	 	 	49	 
	 
	 	 	 	 
	7.13. Fiscal Year; Accounting Method
	 	 	50	 
	 
	 	 	 	 
	7.14. Financial Covenants
	 	 	50	 

-iii-

 

	 	 	 	 	 
	 	 	 	Page	 
	7.14.1. Fixed Charge Coverage Ratio
	 	 	50	 
	7.14.2. Interest Coverage Ratio
	 	 	50	 
	7.14.3. Total Debt to EBITDA Ratio
	 	 	51	 
	7.14.4. Capital Expenditures
	 	 	51	 
	 
	 	 	 	 
	7.15. Bank Accounts
	 	 	51	 
	7.16. Sale and Leaseback
	 	 	52	 
	 
	Section 8. Events of Default; Remedies
	 	 	52	 
	 
	 	 	 	 
	8.1. Events of Default
	 	 	52	 
	8.1.1. Non-Payment of Credit
	 	 	52	 
	8.1.2. Default Under Other Debt
	 	 	52	 
	8.1.3. Bankruptcy; Insolvency
	 	 	52	 
	8.1.4. Non-Compliance with Loan Documents
	 	 	52	 
	8.1.5. Representations; Warranties
	 	 	53	 
	8.1.6. Pension Plans
	 	 	53	 
	8.1.7. Judgments
	 	 	53	 
	8.1.8. Invalidity of Collateral Documents
	 	 	53	 
	8.1.9. Invalidity of Subordination Provisions
	 	 	53	 
	8.1.10. Change of Control
	 	 	54	 
	8.1.11. Activities of Holdings
	 	 	54	 
	 
	 	 	 	 
	8.2. Remedies
	 	 	54	 
	 
	 	 	 	 
	Section 9. Agent
	 	 	55	 
	 
	 	 	 	 
	9.1. Appointment; Authorization
	 	 	55	 
	 
	 	 	 	 
	9.2. Delegation of Duties
	 	 	55	 
	 
	 	 	 	 
	9.3. Limited Liability
	 	 	55	 
	 
	 	 	 	 
	9.4. Reliance
	 	 	56	 
	 
	 	 	 	 
	9.5. Notice of Default
	 	 	56	 
	 
	 	 	 	 
	9.6. Credit Decision
	 	 	56	 
	 
	 	 	 	 
	9.7. Indemnification
	 	 	57	 
	 
	 	 	 	 
	9.8. Agent Individually
	 	 	57	 
	 
	 	 	 	 
	9.9. Successor Agent
	 	 	57	 
	 
	 	 	 	 
	9.10. Collateral Matters; Guaranties
	 	 	58	 
	 
	 	 	 	 
	9.11. Second Lien Debt and Subordinated Debt
	 	 	58	 
	 
	 	 	 	 
	9.12. Limited Application to Loan Parties
	 	 	58	 
	 
	 	 	 	 
	Section 10. Miscellaneous
	 	 	58	 
	 
	 	 	 	 
	10.1. Waiver; Amendments
	 	 	58	 
	 
	 	 	 	 
	10.2. Notices
	 	 	59	 
	 
	 	 	 	 
	10.3. Computations
	 	 	59	 
	 
	 	 	 	 
	10.4. Costs; Expenses
	 	 	60	 
	 
	 	 	 	 
	10.5. Indemnification by Borrower
	 	 	60	 
	 
	 	 	 	 
	10.6. Marshaling; Payments Set Aside
	 	 	61	 
	 
	 	 	 	 
	10.7. Nonliability of Lenders
	 	 	61	 
	 
	 	 	 	 
	10.8. Assignments; Participations
	 	 	61	 

-iv-

 

	 	 	 	 	 
	 	 	 	Page	 
	10.8.1. Assignments
	 	 	61	 
	10.8.2. Participations
	 	 	63	 
	 
	 	 	 	 
	10.9. Confidentiality
	 	 	63	 
	 
	 	 	 	 
	10.10. Captions
	 	 	64	 
	 
	 	 	 	 
	10.11. Nature of Remedies
	 	 	64	 
	 
	 	 	 	 
	10.12. Counterparts
	 	 	64	 
	 
	 	 	 	 
	10.13. Severability
	 	 	64	 
	 
	 	 	 	 
	10.14. Entire Agreement
	 	 	64	 
	 
	 	 	 	 
	10.15. Successors; Assigns
	 	 	64	 
	 
	 	 	 	 
	10.16. Governing Law
	 	 	65	 
	 
	 	 	 	 
	10.17. Forum Selection; Consent to Jurisdiction
	 	 	65	 
	 
	 	 	 	 
	10.18. Waiver of Jury Trial
	 	 	65	 

-v-

 

	 	 	 
	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 Note
	 
	 	 
	Schedules
	 	 
	 
	 	 
	Schedule 1.1

	 	EBITDA and Other Amounts
	Schedule 4.1.3

	 	Prior Debt
	Schedule 5.2

	 	No Conflict
	Schedule 5.6

	 	Litigation
	Schedule 5.8

	 	Capitalization
	Schedule 5.14

	 	Solvency
	Schedule 5.16

	 	Insurance
	Schedule 5.18

	 	Intellectual Property
	Schedule 5.20

	 	Labor Matters
	Schedule 7.1

	 	Existing Debt
	Schedule 7.2

	 	Existing Liens
	Schedule 7.11

	 	Existing Investments
	Schedule 7.15

	 	Bank Accounts

-vi-

 

CREDIT AGREEMENT

     Credit Agreement dated as of October 27, 2005 (as amended, restated or otherwise modified from
time to time, this “Agreement”) among American Wholesale Insurance Group, Inc., a Delaware
corporation (“Borrower”), the financial institutions party hereto from time to time
(together with their respective successors and assigns, “Lenders”) and Madison Capital
Funding LLC (in its individual capacity, “Madison”), as Agent for all Lenders.

RECITALS

     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 Event of Default in respect of which
all or any portion of the Loans or other Obligations have been declared, or have otherwise become,
due and payable, in each case in accordance with the provisions of Section 8.2.

     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.

     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 substantially all of the
assets of a Person, or of all or substantially all 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).

     Adjusted EBITDA means, as of any date of determination, the sum of (a) EBITDA of
Holdings and its Subsidiaries for the twelve month period ending on the last day of the month
ending on or immediately prior to such date of determination, plus (b) without duplication EBITDA
for each Subsidiary, business or division acquired in an Acquisition permitted hereunder during the
relevant measurement period for such measurement period, minus (c) EBITDA of each Subsidiary,
business or division disposed of by the Borrower or any Subsidiary during the relevant measurement
period for the portion of such measurement period prior to such disposition; provided,
that, in each case, such EBITDA is supported by financial statements, tax returns or other
financial data reasonably acceptable to Agent; provided, further, that for the
purposes of clause (b) hereof, EBITDA of each acquired Subsidiary, business or division
shall be adjusted by adjustments that are consistent with Regulation S-X or otherwise approved by
Agent in its reasonable discretion.

     Adjusted Working Capital means the remainder of (a) the consolidated current assets of
Holdings and its Subsidiaries minus the amount of cash and cash equivalents (other than premium
cash held in trust accounts in respect of insurance premiums paid by customers) included in such
consolidated current assets, minus (b) the consolidated current liabilities of Holdings and its
Subsidiaries minus the amount of consolidated short-term Debt (including current maturities of
long-term Debt) of Holdings and its Subsidiaries included in such consolidated current liabilities.

 

 

     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 any Lender, any entity administered or managed by
such Lender or an Affiliate or investment advisor thereof which is engaged in making, purchasing,
holding or otherwise investing in commercial loans. A Person shall be deemed to be “controlled by”
any other Person if such Person possesses, directly or indirectly, power to vote 10% or more of the
securities (on a fully diluted basis) having ordinary voting power for the election of directors or
managers or power to direct or cause the direction of the management and policies of such Person
whether by contract or otherwise. Unless expressly stated otherwise herein, neither Agent nor any
Lender shall be deemed an Affiliate of Borrower or of any Subsidiary.

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

     Agreement has the meaning set forth in the Preamble.

     Applicable Margin means the applicable rate per annum corresponding to the applicable
Total Debt to EBITDA Ratio, all as set forth in the following table:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Loans	 	 
	 	 	and Term Loan	 	Commitment Fee
	Total Debt to	 	Base	 	LIBOR	 	 	 	 
	EBITDA Ratio	 	Rate	 	Rate	 	 	 	 
	> 4.75
	 	 	2.75	%	 	 	3.75	%	 	 	0.50	%
	> 4.00, but
£  4.75
	 	 	2.50	%	 	 	3.50	%	 	 	0.50	%
	> 3.75, but
£  4.00
	 	 	2.25	%	 	 	3.25	%	 	 	0.50	%
	£  3.75
	 	 	2.00	%	 	 	3.00	%	 	 	0.50	%

     The Applicable Margin shall be adjusted quarterly, to the extent applicable, on the date
financial statements are required to be delivered pursuant to Section 6.1.2 (or, in the
case of the last Fiscal Quarter of each Fiscal Year, Section 6.1.1) after the end of each
related Fiscal Quarter based on the Total Debt to EBITDA Ratio as of the last day of such Fiscal
Quarter. Notwithstanding the foregoing, (a) until the date that the financial statements for the
Fiscal Quarter ending June 30, 2006 are required to be delivered pursuant to Section 6.1.2,
the Applicable Margin shall be the rates corresponding to the Total Debt to EBITDA Ratio of >
4.00, but < 4.75 in the foregoing table, (b) if Borrower fails to deliver the financial
statements required by Section 6.1.1 or 6.1.2, as applicable, and the related
Compliance Certificate required by Section 6.1.3, by the date required thereunder after the
end of any related Fiscal Quarter, the Applicable Margin shall be the rates corresponding to the
Total Debt to EBITDA Ratio of > 4.75 in the foregoing table until such financial statements and
Compliance Certificate are delivered, and (c) no reduction to the Applicable Margin shall become
effective at any time when an Event of Default has occurred and is continuing (but such reduction
shall become effective after all existing Events of Default have been cured or waived).

     Notwithstanding the foregoing, if the initial syndication of the Loans and the Commitments
hereunder is oversubscribed within 45 days of the Closing Date as determined by Agent in its sole
discretion, effective as of the date of such determination by Agent and notice thereof to Borrower
and each Lender, the pricing grid set forth above shall be replaced with the following pricing
grid:

-2-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Loans	 	 
	 	 	and Term Loan	 	Commitment Fee
	Total Debt to	 	Base	 	LIBOR	 	 	 	 
	EBITDA Ratio	 	Rate	 	Rate	 	 	 	 
	> 4.75
	 	 	2.50	%	 	 	3.50	%	 	 	0.50	%
	> 4.00, but
£  4.75
	 	 	2.25	%	 	 	3.25	%	 	 	0.50	%
	> 3.75, but
£  4.00
	 	 	2.00	%	 	 	3.00	%	 	 	0.50	%
	£  3.75
	 	 	1.75	%	 	 	2.75	%	 	 	0.50	%

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

     Authorized Officer means any of the (a) chief executive officer, (b) president, (c)
chief financial officer or (d) senior financial officer. 

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

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

     Borrower has the meaning set forth in the Preamble.

     Borrower Stock Option Plan means the American Wholesale Insurance Group, Inc. 2002
Stock Option Plan, as amended.

     Borrowing Availability means, at the time of determination, an amount equal to the
Revolving Loan Commitment, less such reserves and allowances as Agent deems necessary in its
reasonable discretion, subject to Borrower’s consent, not to be unreasonably withheld.

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

     Capital Expenditures means all expenditures which, in accordance with GAAP, would be
required to be capitalized and shown on the consolidated balance sheet of Holdings, but excluding
(a) expenditures made in connection with Acquisitions permitted hereunder and (b) expenditures made
in connection with the purchase, replacement, substitution or restoration of assets to the extent
financed (i) from insurance proceeds (or other similar recoveries) paid on account of the loss of
or damage to the assets being replaced or restored, (ii) with awards of compensation arising from
the taking by eminent domain or condemnation of the assets being replaced, (iii) with proceeds from
the sale of equity securities of the direct or indirect parent company of any Loan Party and the
corresponding equity investment in such Loan Party to fund the acquisition of assets thereby or
(iv) resulting from the exchange or trade of assets (to the extent of the value of the traded or
exchanged asset).

-3-

 

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

     Cash Equivalent Investment means, at any time, (a) any evidence of Debt, maturing not
more than one year after such time, issued or guaranteed by the United States Government or any
agency thereof, (b) commercial paper, or corporate demand notes, in each case (unless issued by a
Lender or its holding company) rated at least A-l by Standard & Poor’s Ratings Group or P-l by
Moody’s Investors Service, Inc., (c) any certificate of deposit (or time deposit represented by a
certificate of deposit) or banker’s acceptance maturing not more than one year after such time, or
any overnight Federal Funds transaction that is issued or sold by any Lender (or by a commercial
banking institution that is a member of the Federal Reserve System and has a combined capital and
surplus and undivided profits of not less than $250,000,000), (d) mutual funds and money market
funds whose assets are at least 95% invested in the foregoing types of investments and (e) any
repurchase agreement entered into with any Lender (or commercial banking institution of the nature
referred to in clause (c) above) which (i) is secured by a fully perfected security interest in any
obligation of the type described in any of clauses (a) through (c) above and (ii) has a market
value at the time such repurchase agreement is entered into of not less than 100% of the repurchase
obligation of such Lender (or other commercial banking institution) thereunder.

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

     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 Agent 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 Agent and waives any Liens
held by such Person on such property, and, in the case of any such agreement with a mortgagee or
lessor, permits Agent 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 securing the Obligations to Agent for the benefit of Lenders, each as amended,
restated or otherwise modified from time to time.

     Commitment means, as to any Lender, such Lender’s Pro Rata Revolving Share of the
Revolving Loan Commitment, and such Lender’s Pro Rata Term Share of the Term Loan Commitment.

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

     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.

     Consolidated Net Income means, with respect to Holdings and its Subsidiaries for any
period, the consolidated net income (or loss) of Holdings and its Subsidiaries for such period.

-4-

 

     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.

     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 (including, without
limitation, Earn-outs and Seller Debt, but excluding accrued expenses as determined in accordance
with GAAP and trade accounts payable, in each case incurred 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, (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 (including, without duplication, the Letters of
Credit), (f) all Contingent Obligations of such Person, (g) all Hedging Obligations of such Person,
(h) all indebtedness of any partnership of which such Person is a general partner, (i) 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 obligations of such Person under conditional
sale or other title retention agreements relating to property or assets purchased by such Person.

     Default means any event that, if it continues uncured, will, with the lapse of any
grace period 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 condemnation, confiscation, requisition, seizure or taking
thereof, in each case excluding (i) assets subject to a Disposition which are replaced within 180
days, (ii) Dispositions, the Net Cash Proceeds of which do not in the aggregate exceed $300,000 in
any Fiscal Year or $1,000,000 since the Closing Date, (iii) the sale or other transfer of Inventory
or the lease or license of real or personal property or of intellectual property (as lessor or
licensor), in each case in the ordinary course of business, (iv) the discount, settlement or write
off of accounts receivable or overdue accounts receivable for collection in the ordinary course of
business, (v) the sale or other disposition of Cash Equivalents and other Investments permitted
under Section 7.11 (other than Investments in Subsidiaries), (vi) the termination,
surrender or sublease of a real estate lease of a Loan Party in the ordinary course of business, or
(vii) the cancellation of any intercompany indebtedness.

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

     Earn-outs means, with respect to any Person, obligations of such Person arising from
an Acquisition which are payable to the seller based on the achievement of specified financial
results over time.

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     EBITDA means, for any period, Consolidated Net Income for such period plus any losses
or minus any gains from Dispositions, extraordinary items (as defined in accordance with GAAP),
discontinued operations, reappraisal, revaluation or write-up or write down of assets or from the
cumulative effect of changes in accounting principles, and plus (a) to the extent deducted in
determining such Consolidated Net Income, cash and non-cash interest expense, income tax expense,
depreciation, amortization and charges for impairment of goodwill and other intangibles for such
period, (b) prepayment and other fees and expenses with regard to the consummation of this
Agreement and the repayment of the Prior Debt, inclusive of fees and expenses permitted by clause
(iv) of Section 7.4, in each case to the extent deducted in determining such Consolidated
Net Income, (c) non-cash expenses in the form of options, profits interests and similar interests
being exercised on the Closing Date or being granted thereafter and other non-cash expense with
respect to deferred compensation and stock options, (d) noncash charges in respect of write-offs of
deferred financing costs and debt issuance costs, to the extent deducted in determining
Consolidated Net Income for such period, (e) the aggregate amount of the Management Fee and the
Advisory Fee paid during such period, (f) the aggregate amount of costs, fees and expenses paid in
such period in connection with an Acquisition permitted hereunder which have not been paid to any
Affiliate of Holdings, but only to the extent the aggregate amount of such costs, fees and expenses
does not exceed (i) with respect to any single Acquisition, the greater of (A) 5% of the total
enterprise value of the target of such Acquisition and (B) $500,000 and (ii) $2,000,000 in the
aggregate with respect to all Acquisitions consummated in any Fiscal Year. Notwithstanding the
foregoing, for the fiscal quarters ending March 31, 2005, June 30, 2005 and September 30, 2005,
EBITDA shall be deemed to be as set forth on Schedule 1.1.

     Environmental Claims means all written claims 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 binding and
enforceable 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 occupational 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 Flow means, for any period, the remainder of (a) the sum of (i) EBITDA for
such period, plus (ii) any net decrease in Adjusted Working Capital during such period, minus (b)
the sum, without duplication, of (i) scheduled repayments of principal of Term Loans (but excluding
other mandatory prepayments thereof) and other Funded Debt of Holdings and its Subsidiaries (in
respect of Debt permitted in accordance with Section 7.1) made during such period, plus
(ii) cash payments (not financed with the proceeds of Debt other than Revolving Loans) made in such
period with respect to Capital Expenditures permitted under Section 7.14.4, plus (iii) all
federal, state, local and foreign income taxes paid in cash by Borrower and the Subsidiaries and
all tax distributions by Holdings to its equity holders permitted under Section 7.4 during
such period, plus (iv) all Interest Expense in respect of Debt permitted in accordance with
Section 7.1 paid in cash by Holdings and its Subsidiaries during such period, plus (v) all
payments in respect of Earn-outs and Seller Debt made in cash by Holdings and its Subsidiaries
during such period and permitted by Section 7.4, as applicable, plus (vi) any net increase
in Adjusted Working Capital during such period, plus (vii) to the extent added to Consolidated Net
Income

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in determining EBITDA for such Fiscal Year, costs, fees and expenses incurred in connection
with an Acquisition permitted hereunder and actually paid in cash by Holdings and its Subsidiaries
during such Fiscal Year to non-Affiliates, plus (viii) to the extent added to Consolidated Net
Income in determining EBITDA for such Fiscal Year, Management Fees and Advisory Fees actually paid
in cash by Holdings and its Subsidiaries during such Fiscal Year, plus (ix) to the extent not
subtracted in determining EBITDA for such Fiscal Year, cash actually paid by Holdings and its
Subsidiaries during such Fiscal Year in respect of any extraordinary cash losses of Holdings and
its Subsidiaries during such Fiscal Year, plus (x) to the extent not subtracted in determining Net
Income for such Fiscal Year, Restricted Payments made in cash during such Fiscal Year pursuant to
Section 7.4(vi) or Section 7.4(ix), which are not financed with the proceeds of
Debt (other than Revolving Loans) or equity. For purposes of determining any increase or decrease
in Adjusted Working Capital for any period in which an Acquisition permitted hereunder has been
consummated, Adjusted Working Capital shall be computed as if the target of such Acquisition had
been acquired by the Borrower as of the first day of such period.

     Excluded Issuance means the sale or issuance of equity securities by Holdings (or,
following a Holdings Transaction and subject to Section 8.1.10, Borrower) (i) to any Person
who holds equity in Holdings as of the Closing Date, (ii) to management or directors of Holdings or
any Subsidiary, or (iii) the proceeds of which are used to (A) make Capital Expenditures or (B) pay
the consideration of any Acquisition permitted under Section 7.11.

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

     Fee Letter means, that certain letter agreement dated as October 27, 2005 by Agent and
Second Lien Agent and acknowledged by Borrower, as amended, restated or otherwise modified from
time to time.

     Fiscal Quarter means a fiscal quarter of a Fiscal Year.

     Fiscal Year means the fiscal year of Holdings and its 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, without duplication, of all income taxes and tax
distributions described in Section 7.4 paid in cash by Holdings and its Subsidiaries and
all unfinanced (other than with the proceeds of Revolving Loans) Capital Expenditures to
(b) the sum for such period of (i) Interest Expense paid in cash by Holdings and its Subsidiaries
plus (ii) scheduled payments of principal of Debt (including the Term Loans, but excluding the
Revolving Loans then due and owing during the Computation Period) plus (iii) other restricted
payments made in cash pursuant to Section 7.4 (other than clause (vi) thereof) plus
(iv) Earn-out payments made in cash. Notwithstanding the foregoing, for the fiscal quarters ending
March 31, 2005, June 30, 2005 and September 30, 2005, income taxes, tax distributions, Capital
Expenditures and all amounts set forth in clause (b) shall be deemed to be as set forth on
Schedule 1.1.

     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), but excluding Hedging Obligations and
Earn-outs.

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     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; provided, that Financial Account Standard
No. 150 shall be disregarded for purposes of this Agreement.

     Guarantee and Collateral Agreement means the Guarantee and Collateral Agreement dated
as of the Closing Date by each Loan Party signatory thereto in favor of Agent and Lenders, as
amended, restated or otherwise modified from time to time.

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

     Hedging Obligation means, with respect to any Person, any liability of such Person
under any interest rate, currency or commodity swap agreement, cap agreement or collar agreement,
and any other agreement or arrangement designed to protect a Person against fluctuations in
interest rates, currency exchange rates or commodity prices.

     Holdings means American Wholesale Insurance Holding Company, LLC, a Delaware limited
liability company.

     Holdings Transaction means (a) the transfer to the Borrower of all assets of Holdings
(other than equity of the Borrower) and all (or less than all) of the liabilities of Holdings
permitted to be outstanding hereunder, together with the subsequent dissolution or complete or
partial liquidation of Holdings and distribution of the equity of the Borrower to the members of
Holdings, (b) the merger of Holdings with and into the Borrower with the Borrower being the
surviving entity, or (c) any other action reasonably acceptable to Agent and reasonably related to
the creation of a Public Market in the equity of the Borrower.

     Interest Coverage Ratio means, for any Computation Period, the ratio of (a) EBITDA for
such Computation Period to (b) Interest Expense paid in cash by Holdings and its Subsidiaries for
such Computation Period. Notwithstanding the foregoing, for the fiscal quarters ending March 31,
2005, June 30, 2005 and September 30, 2005, Interest Expense shall be deemed to be as set forth on
Schedule 1.1.

     Interest Expense means for any period the consolidated cash interest expense of
Holdings and its Subsidiaries for such period (including that portion of payments on Capital Leases
determined in accordance with GAAP to be characterized as interest payments).

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

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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 (a) the purchase of any debt or equity security of any Person, (b)
the making of any loan or advance to any Person (other than trade debt incurred in the ordinary
course of business), (c) becoming obligated with respect to a Contingent Obligation in respect of
obligations of any 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 Sponsor, any fund or investment vehicle
that (a) is organized by Sponsor for the purpose of making equity or debt investments in one or
more companies and (b) is controlled by, or under common control with, Sponsor. For purposes of
this definition “control” means the power to direct or cause the direction of management and
policies of a Person, whether by contract or otherwise.

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

     Issuing Lender means Madison, unless otherwise specified to Borrower by Madison.

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

     Lenders has the meaning set forth in the Preamble.

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

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

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

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

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

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     Loan Documents means this Agreement, the Notes, the Letters of Credit, the Collateral
Documents, the Fee Letter and all documents, instruments and agreements delivered in connection
with the foregoing.

     Loan Party means Holdings, Borrower and each domestic Subsidiary (other than PAUSE
Insurance).

     Loans means the Revolving Loans and the Term Loans.

     Madison has the meaning set forth in the Preamble.

     Management Agreement means that certain Advisory Services Agreement dated as of
October 27, 2005, between Holdings and Manager.

     Manager means PCap, L.P., a Delaware limited partnership.

     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 or properties 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 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.

     Mortgage means a mortgage, deed of trust, leasehold mortgage or similar instrument
granting Agent 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 Borrower or any Subsidiary pursuant to such Disposition net of (i) the
reasonable direct costs relating to such Disposition (including the cost of preparing such
assets for sale, costs incidental to the sale of such assets, sales commissions and legal,
accounting and investment banking fees), (ii) taxes paid or reasonably estimated by Borrower
to be payable as a result thereof (after taking into account any available tax credits or
deductions arising from such sale and any tax sharing arrangements in respect thereof),
(iii) amounts required to be applied to the repayment of any Debt secured by a Lien prior to
the Lien of Agent on the asset subject to such Disposition and (iv) with respect to any
Disposition described in clause (b) or (c) of the definition thereof, all money actually
applied within 180 days to repair, replace or reconstruct damaged property or property
affected by loss, destruction, damage, condemnation, confiscation, requisition, seizure or
taking, 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

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

     Note means a promissory note executed by Borrower in favor of a Lender hereunder
pursuant to this Agreement, substantially in the form of Exhibit C, as the same may be
amended, restated or otherwise modified from time to time.

     Obligations means all 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 any Lender or its
Affiliate, in each case howsoever created, arising or evidenced, whether direct or indirect,
absolute or contingent, now or hereafter existing, or due or to become due.

     Paid in Full means, with respect to any Obligations, (a) the payment in full in cash
and performance of all such Obligations (other than contingent indemnification obligations to the
extent no claim giving rise there to has been asserted), (b) the termination of all Commitments
relating to such Obligations and (c) in connection with the termination of the Revolving Loan
Commitment, either (i) the cancellation and return to Agent of all Letters of Credit or (ii) the
cash collateralization of all Letters of Credit in accordance with the terms of this Agreement.

     PAUSE Insurance means PAUSE Insurance Services, LLC, a California limited liability
company.

     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.

     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.

     Prior Debt means the Debt listed on Schedule 4.1.3.

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

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

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

     Purchase Agreement means the Unit Purchase Agreement dated as of September 12, 2005
(the “Purchase Agreement”), by and among AmWins Holdings, LLC, a Delaware limited liability
company, Holdings and each of the persons identified on Appendix A thereto and all
agreements related thereto.

     Public Market means (a) a public offering of the equity securities of Holdings (or,
following a Holdings Transaction, the Borrower) have been consummated and (b) any equity securities
of Holdings (or, following a Holdings Transaction, the Borrower) have been distributed by means of
an effective registration statement under the Securities Act of 1933, as amended.

     Related Agreements means the Second Lien Debt Documents, the Purchase Agreement and
the Management Agreement.

     Related Transactions means the transactions contemplated by the Related Agreements.

     Required Lenders means Lenders having Pro Rata Shares the aggregate amount of which
exceeds 50% of the Revolving Loan Commitment (or, if the Revolving Loan Commitments have been
terminated, Revolving Outstandings) and outstanding Term Loans, collectively.

     Revolving Loan Commitment means $25,000,000, as reduced from time to time pursuant to
the terms hereof.

     Revolving Loans has the meaning set forth in Section 2.1.1.

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

     Second Lien Agent means Madison, in its capacity as Second Lien Agent, or any
successor thereto in such capacity.

     Second Lien Debt means obligations of Loan Parties under the Second Lien Debt
Documents.

     Second Lien Debt Documents means the Second Lien Credit Agreement, the Second Lien
Subordination Agreement and any agreements, instruments and documents executed from time to time in
connection therewith.

     Second Lien Subordination Agreement means the Intercreditor Agreement dated as of even
date herewith by and among Second Lien Agent, Agent, Holdings, Borrower and the Subsidiaries.

     Seller Debt means unsecured debt owing to the seller in an Acquisition permitted
hereunder.

     Sponsor means collectively Parthenon Investors II, L.P., Parthenon Investors III, L.P.
and AmWINS Holdings, LLC, a Delaware limited partnership.

     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.

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     Subordinated Debt means any unsecured Debt of Holdings or any of its Subsidiaries
which is subordinated to the Obligations and which has subordination terms, covenants, pricing and
other terms which have been approved in writing by Agent in its reasonable discretion.

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

     Term Loan Commitment means $123,000,000.

     Term Loan Maturity Date means the earliest of (i) October 27, 2011, and (ii) the date
on which the Commitments terminate pursuant to Section 8.

     Term Loan has the meaning set forth in Section 2.1.2. When used in the plural,
such term shall mean the several portions of such Loan held by the Lenders.

     Termination Date means the earlier of (i) October 27, 2010, and (ii) the date on which
the Revolving Loan Commitment terminates pursuant to Section 2.9 or 8.

     Total Debt means all Funded Debt of Holdings and its Subsidiaries, 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) Adjusted EBITDA for the Computation Period ending on such
day.

     Total Loan Commitment means $148,000,000, as reduced by (i) any reduction in the
Revolving Loan Commitment from time to time pursuant to the terms hereof and (ii) any reduction in
principal with respect to the Term Loan.

     Wholly-Owned Subsidiary means, as to any Person, another Person all of the equity
interests of which (except directors’ or employees’ qualifying shares or other minimal share
allocations required by the law of the jurisdiction of organization or allocated for tax
considerations) are at the time directly or indirectly owned by such Person and/or another
Wholly-Owned Subsidiary of such Person.

          1.2. Interpretation.

     In the case of this Agreement and each other Loan Document, (a) the meanings of defined terms
are equally applicable to the singular and plural forms of the defined terms; (b) Annex, Exhibit,
Schedule and Section references are to such Loan Document unless otherwise specified; (c) the term
“including” is not limiting and means “including but not limited to”; (d) in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including”; the words “to” and “until” each mean “to but excluding”, and the word “through” means
“to and including”; (e) unless otherwise expressly provided in such Loan Document, (i) references
to agreements and other contractual instruments shall be deemed to include all subsequent
amendments and other modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of any Loan Document, and (ii) references to any
statute or regulation shall be construed as including all statutory and regulatory provisions
amending, replacing, supplementing or interpreting such statute or regulation; (f) this Agreement
and the other Loan Documents may use several different limitations, tests or measurements to
regulate the same or similar matters, all of which are cumulative and each shall be

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performed in accordance with its terms; and (g) this Agreement and the other Loan Documents
are the result of negotiations among and have been reviewed by counsel to Agent, Borrower, Lenders
and the other parties hereto and thereto and are the products of all parties; accordingly, they
shall not be construed against Agent or Lenders merely because of Agent’s or Lenders’ involvement
in their preparation.

          1.3. Accounting Changes.

     It is understood that all financial statements delivered pursuant to Section 6.1 shall be
prepared in accordance with GAAP as in effect on the date of their respective preparation. In the
event that any “Accounting Change” (as defined below) shall occur and such change results in a
change in the method of calculation of financial covenants, standards or terms, Borrower and Agent
shall enter into negotiations in order to amend such provisions of this Agreement so as to
equitably reflect such Accounting Changes with the desired result that the criteria for evaluating
the Borrower’s financial condition shall be the same after such Accounting Changes as if such
Accounting Changes had not been made. Until such time as such an amendment shall have been
executed and delivered by the Borrower, the Agent and the Required Lenders, all financial
covenants, standards and terms in this Agreement shall continue to be calculated or construed as if
such Accounting Changes had not occurred. “Accounting Changes” refers to changes in accounting
principles required by the promulgation of any rule, regulation, pronouncement or opinion by the
Financial Accounting Standards Board of the American Institute of Certified Public Accountants or,
if applicable, the Securities and Exchange Commission (or successors thereto or agencies with
similar functions).

Section 2.
Credit Facilities.

          2.1.
Commitments.

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

          2.1.1. Revolving Loan Commitments.

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

          2.1.2. Term Loan Commitments.

     Each Lender agrees to make a loan to Borrower (each such loan, a “Term Loan”) on the
Closing Date in such Lender’s applicable Pro Rata Term Share of the Term Loan Commitment. The
Commitments of Lenders to make Term Loans shall terminate concurrently with the making of the Term
Loans on the Closing Date. Term Loans which are repaid or prepaid by Borrower, in whole or in
part, may not be reborrowed.

          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;
provided, that Borrower may not request that a Loan be a LIBOR Loan if an Event of Default exists.
Base Rate Loans

-14-

 

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

          2.2.2. Borrowing.

          Borrower shall give written notice or telephonic notice (followed promptly by written
confirmation thereof) to Agent of each proposed borrowing of a Revolving Loan not later than (a) in
the case of a Base Rate borrowing, 1:00 p.m. Chicago time on the proposed date of such borrowing,
and (b) in the case of a LIBOR borrowing, 1:00 p.m. Chicago time at least three Business Days prior
to the proposed date of such borrowing. Each such notice shall be effective upon receipt by Agent,
shall be irrevocable, and shall specify the date, amount and type of borrowing and, in the case of
a LIBOR borrowing, the initial Interest Period therefor. Promptly upon receipt of such notice,
Agent shall advise each Lender with a Revolving Loan Commitment thereof in writing. Not later than
2:00 p.m. Chicago time on the date of a proposed Revolving Loan borrowing, each Lender with a
Revolving Loan Commitment shall provide Agent at the office specified by Agent with immediately
available funds covering such Lender’s applicable Pro Rata Revolving Share of such borrowing and,
so long as Agent has not received written notice that the conditions precedent set forth in
Section 4 with respect to such borrowing have not been satisfied, Agent shall pay over the
funds received by Agent to Borrower on the requested borrowing date. Each borrowing shall be on a
Business Day. Each Base Rate borrowing shall be in an aggregate amount of at least $100,000 and an
integral multiple of $50,000, and each LIBOR borrowing shall be in an aggregate amount of at least
$100,000 and an integral multiple of at least $50,000.

          2.2.3. Conversion; Continuation.

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

          (b) Borrower shall give written or telephonic notice (followed promptly by written
confirmation thereof) to Agent of each proposed conversion or continuation not later than (i) in
the case of conversion into Base Rate Loans, 1:00 p.m. Chicago time on the proposed date of such
conversion and (ii) in the case of conversion into or continuation of LIBOR Loans, 1:00 p.m.
Chicago time at least three Business Days prior to the proposed date of such conversion or
continuation, specifying in each case: (i) the proposed date of conversion or continuation; (ii)
the aggregate amount of Loans to be converted or continued; (iii) the type of Loans resulting from
the proposed conversion or continuation; and (iv) in the case of conversion into, or continuation
of, LIBOR Loans, the duration of the requested Interest Period therefor.

          (c) If upon the expiration of any Interest Period applicable to LIBOR Loans, Borrower has
failed to select timely a new Interest Period to be applicable to such LIBOR Loans, Borrower shall
be

-15-

 

deemed to have elected to convert such LIBOR Loans into Base Rate Loans effective on the last
day of such Interest Period.

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

          2.3. Letters of Credit.

          2.3.1. Commitment.

          At the request of Borrower, Issuing Lender will issue from time to time before the date which
is 30 days prior to the Termination Date either (at Issuing Lender’s election) (a) standby letters
of credit or (b) participation agreements confirming payment to issuers (reasonably acceptable to
Issuing Lender) of standby letters of credit, in each case for the account of Borrower or any
Subsidiary and containing terms and conditions which are consistent with this Agreement and
reasonably satisfactory to Issuing Lender (each such letter of credit or participation agreement, a
“Letter of Credit”). After giving effect to each such issuance, (i) the aggregate Stated
Amount of all Letters of Credit shall not at any time exceed $5,000,000 and (ii) Revolving
Outstandings will not at any time exceed Borrowing Availability.

          2.3.2. Application.

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

          2.3.3. Reimbursement Obligations.

          (a) Borrower hereby unconditionally and irrevocably agrees to reimburse Issuing Lender for
each payment or disbursement made by Issuing Lender under any Letter of Credit honoring any demand
for payment made thereunder, in each case on the date that such payment or disbursement is made.
Issuing Lender shall promptly notify Borrower and Agent whenever any demand for payment is made
under any Letter of Credit; provided that the failure of Issuing Lender to so notify Borrower shall
not affect the rights of Issuing Lender or Lenders in any manner whatsoever. Any amount not
reimbursed on the date of such payment or disbursement (whether or not through the making of a Loan
pursuant to

-16-

 

Section 2.3.4) shall bear interest from the date of such payment or disbursement to
the date that Issuing Lender is reimbursed by Borrower therefor, payable on demand, at the interest
rate per annum from time to time in effect for Revolving Loans which are Base Rate Loans.

          (b) Borrower’s reimbursement obligations hereunder shall be irrevocable and unconditional
under all circumstances, including (i) any lack of validity or enforceability of any Letter of
Credit, this Agreement or any other Loan Document, (ii) the existence of any claim, set-off,
defense or 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), Agent, Issuing Lender, any Lender or any other Person, whether in
connection with any Letter of Credit, this Agreement, any other Loan Document, the transactions
contemplated herein or any unrelated transactions (including any underlying transaction between any
Loan Party and the beneficiary named in any Letter of Credit), (iii) the validity, sufficiency or
genuineness of any document which Issuing Lender (or, as applicable, the issuer of any underlying
letter of credit) has reasonably determined complies on its face with the terms of the applicable
Letter of Credit (or, if applicable, underlying letter of credit), even if such document should
later prove to have been forged, fraudulent, invalid or insufficient in any respect or any
statement therein shall have been untrue or inaccurate in any respect, or (iv) the surrender or
impairment of any security for the performance or observance of any of the terms hereof.

          2.3.4. Participations in Letters of Credit.

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

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

-17-

 

from time to time in effect and (y) thereafter, the Base Rate from time to time in effect for
Revolving Loans. Any Lender’s failure to make available to Agent its Pro Rata Revolving Share of
any such payment or disbursement shall not relieve any other Lender of its obligation hereunder to
make available to Agent such other Lender’s Pro Rata Revolving Share of such payment, but no Lender
shall be responsible for the failure of any other Lender to make available to Agent such other
Lender’s Pro Rata Revolving Share of any such payment or disbursement.

          2.4. Commitments Several.

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

          2.5. Certain Conditions.

     Notwithstanding any other provision of this Agreement, no Lender shall have an obligation to
make any Loan, or to permit the continuation of or any conversion into any LIBOR Loan, and Issuing
Lender shall not have any obligation to issue any Letter of Credit, if (i) an Event of Default or
Default exists or (ii) the funding of such Loan or issuance of such Letter of Credit (as
applicable) would cause the Revolving Outstandings to exceed Borrowing Availability.

          2.6. Loan Accounting.

          2.6.1. Recordkeeping.

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

          2.6.2. Notes.

          At the request of any Lender, the Loans of such Lender shall be evidenced by a Note, payable
to the order of such Lender in a face principal amount equal to the sum of such Lender’s Pro Rata
Share of the Total Loan Commitment.

          2.7. Interest.

          2.7.1. Interest Rates.

          Borrower promises to pay interest on the unpaid principal amount of each Loan for the period
commencing on the date of such Loan until such Loan is paid in full as follows: (a) at all times
while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of the Base Rate from
time to time in effect plus the Applicable Margin for Base Rate Loans; and (b) at all times while
such Loan is a LIBOR Loan, at a rate per annum equal to the sum of the LIBOR Rate applicable to
each Interest Period for such Loan plus the Applicable Margin for LIBOR Loans; provided that (i) at
any time an Event of Default exists, if requested by Required Lenders, the Applicable Margin
corresponding to each Loan shall be increased by 2% (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 for Base

-18-

 

Rate Loans plus 2%), (ii) upon the occurrence of an Event of Default under Section
8.1.1 or 8.1.3, such increase shall occur automatically, and (iii) any such increase
may thereafter be rescinded by Required Lenders, notwithstanding Section 10.1. In no event
shall charges constituting interest payable by Borrower to Agent and Lenders exceed the maximum
amount or the rate permitted under any applicable law or regulation, and if any such part or
provision of this Agreement is in contravention of any such law or regulation, such part or
provision shall be deemed amended to conform thereto.

          2.7.2. Interest Payment Dates.

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

          2.7.3. Setting and Notice of LIBOR Rates.

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

          2.7.4. Computation of Interest.

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

          2.8. Fees.

          2.8.1. Commitment Fee.

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

          2.8.2. Letter of Credit Fees.

          (a) Borrower agrees to pay to Agent, for the account of each Lender according to such Lender’s
Pro Rata Revolving Share (as adjusted from time to time), a Letter of Credit Fee equal to the
Applicable Margin for Revolving Loans which are LIBOR Loans multiplied by the Stated Amount of each
Letter of Credit. Each Letter of Credit Fee shall be payable in arrears on the last day of each
calendar month and on the Termination Date (or such later date on which such Letter of Credit
expires or

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is terminated) for the period from the date of the issuance of each Letter of Credit (or the
last day on which the Letter of Credit Fee was paid with respect thereto) to the date such payment
is due or, if earlier, the date on which such Letter of Credit expired or was terminated. Each
Letter of Credit Fee shall be computed for the actual number of days elapsed on the basis of a year
of 360 days.

          (b) In addition, with respect to each Letter of Credit, Borrower agrees to pay to Issuing
Lender, for its own account, (i) such fees and expenses as Issuing Lender customarily requires (or,
as the case may be, is required to pay to the issuer of the letter of credit) in connection with
the issuance, negotiation, processing and/or administration of letters of credit in similar
situations and (ii) a letter of credit fronting fee in the amount and at the times agreed to by
Borrower and Issuing Lender.

          2.8.3. Agent’s Fees.

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

          2.9. Commitment Reduction.

          2.9.1. Voluntary Reduction or Termination of Revolving Loan Commitment.

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

          2.9.2. Mandatory Reduction of Revolving Loan Commitment.

          On the date of any mandatory prepayment pursuant to Section 2.10.2, the Revolving Loan
Commitment shall be permanently reduced by the amount of such mandatory prepayment applied to
prepay the Revolving Loans pursuant to Section 2.10.2.

          2.9.3. All Reductions of Revolving Loan Commitment.

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

          2.10. Prepayment.

          2.10.1. Voluntary Prepayment.

          Borrower may from time to time, on at least one Business Day’s written notice or telephonic
notice (followed promptly by written confirmation thereof) to Agent (which shall promptly advise
each Lender thereof) not later than 1:00 p.m. Chicago time on such day, prepay the Loans in whole
or in part. Such notice to Agent 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 $100,000 or a higher
integral multiple of $50,000. All prepayments of Term Loans pursuant to this Section
2.10.1 shall be applied pursuant to Section 2.10.3.

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          2.10.2. Mandatory Prepayment.

          (a) Borrower shall (x) prepay the Term Loans until Paid in Full and (y) thereafter repay the
Revolving Loans, in each case at the following times and in the following amounts:

          (i) within 3 Business Days after the receipt by Holdings or any of its Subsidiaries of any Net
Cash Proceeds from any Disposition, in an amount equal to such Net Cash Proceeds;

          (ii) concurrently with the receipt by Holdings or any of its Subsidiaries of any Net Cash
Proceeds from any issuance of its equity securities (excluding equity securities that are issued
pursuant to Section 7.10(a) and (b) or in an Excluded Issuance) in an amount equal
to 50% of such Net Cash Proceeds; provided, however, that if the Total Debt to EBITDA Ratio on the
last day of the most recently completed Fiscal Quarter (after giving pro forma
effect to any mandatory prepayment to be made as a result of such equity issuance (but using a 25%
prepayment percentage)) is less than or equal to 2.75:1.00, then the amount of such prepayment
shall be reduced to an amount equal to 25% of such Net Cash Proceeds; and

          (iii) within 10 Business Days after the date on which the audited financial statements are
required to be delivered under Section 6.1.1 following the end of each Fiscal Year
(commencing with Fiscal Year 2006), in an amount equal to (A) 75% of Excess Cash Flow for such
Fiscal Year (or, if as of the end of such Fiscal Year, the Total Debt to EBITDA Ratio is less than
3.75 to 1.00, 50% of Excess Cash Flow) minus (B) voluntary prepayments of Revolving Loans with a
corresponding permanent reduction of Revolving Loan Commitments pursuant to Section 2.9.1
and voluntary prepayments of the Term Loans pursuant to Section 2.10.1 during such period
minus (C) the lesser of (1) cash consideration paid during such period with respect to Acquisitions
permitted hereunder and (2) 25% of Excess Cash Flow for such Fiscal Year.

          (b) If on any day the Revolving Outstandings exceed Borrowing Availability, whether pursuant
to a reduction of the Revolving Loan Commitment pursuant to Section 2.9.2 or otherwise,
Borrower shall promptly, but in any event within 3 Business Days, prepay Revolving Loans and/or
cash collateralize the outstanding Letters of Credit in a manner acceptable to Agent, or do a
combination of the foregoing, in an amount sufficient to eliminate such excess; provided, that if
the Revolving Outstandings exceed Borrower Availability due to an increase in the reserves imposed
by the Agent, then the Borrower shall promptly pay an amount sufficient to eliminate such excess
within 10 Business Days.

          2.10.3. 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 3.5. All prepayments of a Loan shall be applied first to that portion of such Loan
comprised of Base Rate Loans and then to that portion of such Loan comprised of LIBOR Loans, in
direct order of Interest Period maturities. All prepayments of the Term Loans shall be applied
first in direct order of maturities to all installments thereof due in the next 12 months and then
pro rata to the remaining installments thereof.

          (b) Borrower shall give written notice or telephonic notice (followed promptly by written
confirmation thereof) to Agent not later than 1:00 p.m. Chicago time at least one Business Day
prior to each mandatory prepayment pursuant to clause (a) of Section 2.10.2, and Agent
shall promptly notify each Lender of such notice.

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          2.11. Repayment.

          2.11.1. Revolving Loans.

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

          2.11.2. Term Loan.

          The Term Loan shall be paid, for the account of each Lender according to its Pro Rata Term
Share thereof, in the installments and on the dates set forth below:

	 	 	 	 	 
	Date	 	Installment	 
	December 31, 2005
	 	$	307,500	 
	March 31, 2006
	 	$	307,500	 
	June 30, 2006
	 	$	307,500	 
	September 30, 2006
	 	$	307,500	 
	December 31, 2006
	 	$	307,500	 
	March 31, 2007
	 	$	307,500	 
	June 30, 2007
	 	$	307,500	 
	September 30, 2007
	 	$	307,500	 
	December 31, 2007
	 	$	307,500	 
	March 31, 2008
	 	$	307,500	 
	June 30, 2008
	 	$	307,500	 
	September 30, 2008
	 	$	307,500	 
	December 31, 2008
	 	$	307,500	 
	March 31, 2009
	 	$	307,500	 
	June 30, 2009
	 	$	307,500	 
	September 30, 2009
	 	$	307,500	 
	December 31, 2009
	 	$	307,500	 
	March 31, 2010
	 	$	307,500	 
	June 30, 2010
	 	$	307,500	 
	September 30, 2010
	 	$	307,500	 
	December 31, 2010
	 	$	307,500	 
	March 31, 2011
	 	$	307,500	 
	June 30, 2011
	 	$	307,500	 
	September 30, 2011
	 	$	307,500	 
	October 27, 2011
	Remaining outstanding principal balance of Term Loan

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Notwithstanding the foregoing, the outstanding principal balance of the Term Loan shall be
paid in full on the Term Loan Maturity Date.

          2.12. Payment.

          2.12.1. Making and Settlement of Payments.

          All payments of principal of or interest on the Notes, and of all fees, shall be made by
Borrower to Agent without setoff, recoupment or counterclaim and in immediately available funds at
the office specified by Agent not later than 2:00 p.m. Chicago time on the date due, and funds
received after that hour shall be deemed to have been received by Agent on the following Business
Day. Agent shall promptly remit to each Lender its share of all principal payments received in
collected funds by Agent for the account of such Lender. On the first Business Day of each week,
or more frequently as Agent may elect (each such day being a “Settlement Date”), Agent will
notify each Lender with a Revolving Loan Commitment in writing of the amount of such Lender’s
actual share of the Revolving Loans as of the close of business of the Business Day immediately
preceding the Settlement Date. In the event that payments are necessary to adjust the amount of
such Lender’s actual share of the Revolving Loans to equal such Lender’s Pro Rata Revolving Share
of the Revolving Loans as of any Settlement Date, such Lender will pay to Agent, or Agent will pay
to such Lender (as applicable) the amount necessary in same day funds by wire transfer to the
other’s account not later than 3:00 p.m. Chicago time on the Business Day following the Settlement
Date. On the first Business Day of each month (each, an “Interest Settlement Date”), Agent
will notify each Lender in writing of the amount of such Lender’s applicable (i) Pro Rata Revolving
Share of interest and fees on the Revolving Outstandings and Revolving Loan Commitment and (ii) Pro
Rata Term Share of interest and fees on the Term Loan, in each case as of the end of the last day
of the immediately preceding month. Provided that such Lender has made all payments required to be
made by it under this Agreement, Agent will pay to such Lender, by wire transfer to such Lender’s
account not later than 3:00 p.m. Chicago time on the next Business Day following the Interest
Settlement Date, such Lender’s Pro Rata Revolving Share and Pro Rata Term Share, as applicable, of
interest and fees, in each instance, received by Agent for the immediately preceding month. All
payments under Section 3.2 shall be made by Borrower directly to each Lender entitled
thereto.

          2.12.2. Application of Payments and Proceeds.

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

          (b) If an Event of Default shall have occurred and be continuing but an Acceleration Event
shall not exist, notwithstanding anything herein or in any other Loan Document to the contrary,
Agent shall apply all or any part of payments in respect of the Obligations and proceeds of
Collateral, in each case as received by Agent, to the payment of the Obligations in such order as
directed by Borrower; provided, that notwithstanding such direction, Required Lenders may
direct Agent to apply such payments and/or proceeds in accordance with paragraph (c) below.

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

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

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

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

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

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

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

          2.12.3. Payment Dates.

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

          2.12.4. Set-off.

          Borrower agrees that Agent and each Lender have all rights of set-off and bankers’ lien
provided by applicable law, and in addition thereto, Borrower agrees that at any time an Event of
Default has occurred and is continuing, Agent and each Lender may apply to the payment of any
Obligations of Borrower hereunder then due and owing, any and all balances, credits, deposits,
accounts or moneys of Borrower then or thereafter with Agent or such Lender. Notwithstanding the
foregoing, no Lender shall exercise any rights described in the preceding sentence without the
prior written consent of Agent.

          2.12.5. Proration of Payments.

          If any Lender shall obtain any payment or other recovery (whether voluntary, involuntary, by
application of set-off or otherwise, on account of (a) principal of or interest on the Revolving
Outstandings or the Term Loan, but excluding (i) any payment pursuant to Section 3.1,
3.2, 3.7 or 10.8 and (ii) payments of interest on any Base Rate Loan
referred to in the last sentence of Section 3.4, or (b) its participation in any Letter of
Credit) in excess of its applicable Pro Rata Revolving Share or Pro Rata Term Share, respectively,
of payments and other recoveries obtained by all Lenders on account of

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principal of and interest on such Revolving Loans or Term Loan (or such participation) then
held by them, then such Lender shall purchase from the other Lenders such participations in the
Loans or sub-participations in Letters of Credit held by them as shall be necessary to cause such
purchasing Lender to share the excess payment or other recovery ratably with each of them; provided
that if all or any portion of the excess payment or other recovery is thereafter recovered from
such purchasing Lender, the purchase shall be rescinded and the purchase price restored to the
extent of such recovery.

Section 3.
Yield Protection.

          3.1.
Taxes.

          (a) All payments of principal and interest on the Loans and all other amounts payable
hereunder shall be made free and clear of and without deduction for any present or future income,
excise, stamp, documentary, property or franchise taxes and other taxes, fees, duties, levies,
withholdings or other charges of any nature whatsoever imposed by any taxing authority, excluding
taxes imposed on or measured by any Lender’s net income by the United States, the jurisdiction
under which such Agent or Lender is organized or conducts business or the jurisdiction in which its
principal office or applicable lending office is located (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: (a) pay directly to the relevant authority the full amount required to be so
withheld or deducted; (b) promptly forward to Agent an official receipt or other documentation
reasonably satisfactory to Agent evidencing such payment to such authority; and (c) pay to Agent
for the account of Lenders such additional amount or amounts as is necessary to ensure that the net
amount actually received by each Lender will equal the full amount such Lender would have received
had no such withholding or deduction been required. If any Taxes are directly asserted against
Agent or any Lender with respect to any payment received by Agent or such Lender hereunder, Agent
or such Lender may pay such Taxes and Borrower will promptly pay such additional amounts (including
any penalty, interest or expense) as is necessary in order that the net amount received by such
Person after the payment of such Taxes (including any Taxes on such additional amount) shall equal
the amount such Person would have received had such Taxes not been asserted so long as such amounts
have accrued on or after the day which is 180 days prior to the date on which Agent or such Lender
first made demand therefor; provided, that if the event giving rise to such costs or reductions has
retroactive effect, such 180 day period shall be extended to include the period of retroactive
effect; provided, that if the Borrower reasonably believes that such Taxes were not correctly or
legally asserted, the Agent or such Lender, as the case may be, will use reasonable efforts to
cooperate with the Borrower to obtain a refund of such Taxes as long as such efforts would not
result in any unreimbursed costs or expenses.

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

          (c) Each Lender that (i) is organized under the laws of a jurisdiction other than the United
States of America and (ii)(A) is a party hereto on the Closing Date or (B) becomes an assignee of
an interest under this Agreement under Section 10.8.1 after the Closing Date (unless such
Lender was already a Lender hereunder immediately prior to such assignment) shall execute and
deliver to Borrower and Agent on or prior to the Closing Date (or in the case of such Lender that
becomes a party to this Agreement as a result of an assignment after the Closing Date, on or prior
to the effective date of such assignment) one or more (as Borrower or Agent may reasonably request)
Forms W-8ECI, W-8BEN, W-

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8IMY (as applicable) or other applicable form, certificate or document prescribed by the
United States Internal Revenue Service certifying as to such Lender’s entitlement to exemption from
withholding or deduction of Taxes. Borrower shall not be required to pay additional amounts to any
Lender pursuant to this Section 3.1 to the extent that the obligation to pay such
additional amounts would not have arisen but for the failure of such Lender to comply with this
paragraph. Each such non-U.S. Lender will promptly notify the Agent and the Borrower of any
changes in circumstances that would modify or render invalid any claimed exemption or reduction.

          (d) If the Agent or a Lender determines, in good faith in its sole discretion, that it has
received a refund of any Taxes as to which it has been indemnified by Borrower or with respect to
which Borrower has paid additional amounts pursuant to this Section 3.1, it shall pay over
such refund to Borrower (but only to the extent of indemnity payments made, or additional amounts
paid, by Borrower under this Section 3.1 with respect to the Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Agent or such Lender (including any Taxes imposed
with respect to such refund) as is determined by the Agent or such Lender in good faith in its sole
discretion, and without interest (other than any interest paid by the relevant governmental
authority with respect to such refund); provided, that Borrower, upon the request of the Agent or
such Lender, agrees to repay as soon as reasonably practicable the amount paid over to Borrower
(plus any penalties, interest or other charges imposed by the relevant governmental authority) to
the Agent or such Lender in the event the Agent or such Lender is required to repay such refund to
such governmental authority. This Section shall not be construed to require the Agent or any Lender
to make available its tax returns (or any other information relating to its taxes which it deems
confidential) to Borrower or any other Person.

          3.2. Increased Cost.

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

          (b) If any Lender shall reasonably determine that any change in, or the adoption or phase-in
of, any applicable law, rule or regulation regarding capital adequacy, or any change in the
interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or the compliance by any Lender
or any Person controlling such Lender with any request or directive regarding capital adequacy
(whether or not having the force of law) of any such authority, central bank or comparable agency,
has or would have the

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effect of reducing the rate of return on such Lender’s or such controlling Person’s capital as
a consequence of such Lender’s obligations hereunder or under any Letter of Credit to a level below
that which such Lender or such controlling Person could have achieved but for such change,
adoption, phase-in or compliance (taking into consideration such Lender’s or such controlling
Person’s policies with respect to capital adequacy) by an amount deemed by such Lender or such
controlling Person to be material, then from time to time, upon demand by such Lender (which demand
shall be accompanied by a certificate setting forth the basis for such demand and a calculation of
the amount thereof in reasonable detail, a copy of which shall be furnished to Agent), Borrower
shall pay to such Lender such additional amount as will compensate such Lender or such controlling
Person for such reduction, so long as such amounts have accrued on or after the day which is 180
days prior to the date on which such Lender first made demand therefor; provided, that if the event
giving rise to such costs or reductions has retroactive effect, such 180 day period shall be
extended to include the period of retroactive effect.

          3.3. Inadequate or Unfair Basis.

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

          3.4. Change in Law.

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

          3.5. Funding Losses.

     Borrower hereby agrees that within 3 Business Days following demand by any Lender (which
demand shall be accompanied by a statement setting forth the basis for the amount being claimed, a
copy of which shall be furnished to Agent), Borrower will indemnify such Lender against any net
loss or expense which such Lender may sustain or incur (including any net loss or expense incurred
by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to
fund or maintain any LIBOR Loan), as reasonably determined by such Lender, as a result of (a) any
payment, prepayment or conversion of any LIBOR Loan of such Lender on a date other than the last
day of an Interest Period for such Loan (including any conversion pursuant to Section 3.3
or 3.4) or (b) any failure of Borrower to

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borrow, convert or continue any Loan on a date specified therefor in a notice of borrowing,
conversion or continuation pursuant to this Agreement. For the purposes of this Section
3.5, all determinations shall be made as if such Lender had actually funded and maintained each
LIBOR Loan during each Interest Period for such Loan through the purchase of deposits having a
maturity corresponding to such Interest Period and bearing an interest rate equal to the LIBOR Rate
for such Interest Period.

          3.6. Manner of Funding; Alternate Funding Offices.

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

          3.7. Mitigation of Circumstances; Replacement of Lenders.

          (a) Each Lender shall promptly notify Borrower and Agent of any event of which it has
knowledge which will result in, and will use reasonable commercial efforts available to it (and
not, in such Lender’s reasonable judgment, otherwise disadvantageous to such Lender) to mitigate or
avoid, (i) any obligation by Borrower to pay any amount pursuant to Section 3.1 or
3.2 or (ii) the occurrence of any circumstances described in Section 3.3 or
3.4 (and, if any Lender has given notice of any such event described in clause (i) or (ii)
above and thereafter such event ceases to exist, such Lender shall promptly so notify Borrower and
Agent). Without limiting the foregoing, each Lender will provide to Borrower or file any document
or instrument reasonably requested by Borrower or designate a different funding office if providing
or filing such document or instrument or making such designation will avoid (or reduce the cost to
Borrower of) any event described in clause (i) or (ii) above and such designation would not, in
such Lender’s sole judgment, be otherwise disadvantageous to such Lender.

          (b) If (i) Borrower becomes obligated to pay additional amounts to any Lender pursuant to
Section 3.1 or 3.2, (ii) any Lender gives notice of the occurrence of any
circumstances described in Section 3.3 or 3.4, (iii) any Lender fails to make an
advance when obligated to do so under this Agreement (a “Defaulting Lender”), or (iv) any Lender
(other than Agent) fails to approve any amendment, modification, restatement or waiver under this
Agreement that requires a greater percentage of the Lenders than the Required Lenders and such
amendment, modification, restatement or waiver is otherwise consented to by the Required Lenders,
Borrower may within 90 days thereafter designate another bank or other financial institution which
is acceptable to Agent and Issuing Lender in their reasonable discretion (such other lender being
called a “Replacement Lender”) to purchase the Loans of such Lender and such Lender’s
rights hereunder, without recourse to or warranty by, or expense to, such Lender, for a purchase
price equal to the outstanding principal amount of the Loans payable to such Lender (provided that
no fees shall accrue to a Defaulting Lender) plus any accrued but unpaid interest on such Loans and
all accrued but unpaid fees owed to such Lender and any other amounts payable to such Lender under
this Agreement, and to assume all the obligations of such Lender hereunder, and, upon such purchase
and assumption (pursuant to an Assignment Agreement), such Lender shall no longer be a party hereto
or have any rights hereunder (other than rights with respect to indemnities and similar rights
applicable to such Lender prior to the date of such purchase and assumption) and shall be relieved
from all obligations to Borrower hereunder, and the Replacement Lender shall succeed to the rights
and obligations of such Lender hereunder.

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          3.8. Conclusiveness of Statements; Survival.

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

Section 4. Conditions Precedent.

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

          4.1. Initial Credit Extension.

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

          4.1.1. Capitalization; Adjusted EBITDA

          AmWins Holdings, LLC, a Delaware corporation, has received cash equity contributions from
Sponsor and its Investment Affiliates in an amount not less than $108,000,000 and the Borrower has
received (or concurrently with the initial credit extensions hereunder will receive) net cash
proceeds of not less than $48,000,000 from the issuance of Second Lien Debt. EBITDA, as adjusted
by adjustments satisfactory to Agent, for the 12 month period ending September 30, 2005 shall not
be less than $37,500,000.

          4.1.2. Initial Loans.

          No Revolving Loans or Letters of Credit shall be advanced or issued (as applicable) on the
Closing Date.

          4.1.3. Prior Debt.

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

          4.1.4. Related Transactions.

          Borrower has completed (or concurrently with the initial credit extension hereunder will
complete) the Related Transactions in accordance with the terms of the Related Agreements (without
any amendment thereto or material waiver thereunder unless consented to by Agent).

          4.1.5. 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.

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          4.1.6. Delivery of Loan Documents.

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

          (a) Agreement. This Agreement.

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

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

          (e) Lien Searches. Copies of Uniform Commercial Code search reports listing all
effective financing statements filed against any Loan Party, with copies of such financing
statements.

          (f) Collateral Access Agreements. Collateral Access Agreements reasonably requested
by Agent with respect to the Collateral.

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

          (h) Second Lien Debt. Subordination agreements with respect to all Second Lien Debt.

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

          (j) Authorization Documents. For each Loan Party, such Person’s (i) charter (or
similar formation document), certified by the appropriate governmental authority, (ii) good
standing certificates in its state of incorporation (or formation) and in each other state
requested by Agent, (iii) bylaws (or similar governing document), (iv) resolutions of its board of
directors (or similar governing body) approving and authorizing such Person’s execution, delivery
and performance of the Loan Documents 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.

          (k) Opinions of Counsel. Opinions of counsel for each Loan Party, including local
counsel reasonably requested by Agent, and all other opinions issued pursuant to the Related
Transactions, and Borrower hereby requests such counsel to deliver such opinions and authorizes
Agent and Lenders to rely thereon.

          (l) Insurance. Certificates or other evidence of insurance in effect as required by
Section 6.3(b), with endorsements naming Agent as lenders’ loss payee and/or additional
insured, as applicable.

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

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

          (o) Collateral Assignment of Purchase Agreement. A Collateral Assignment of Contract
Rights from AmWINS Holdings, LLC, a Delaware limited liability company, with respect to the
Purchase Agreement.

          (p) Related Agreements. Copies of the Related Agreements (including a consent to the
collateral assignment of rights and indemnities under the appropriate Related Agreements in favor
of Agent and Lenders).

          (q) Leverage. The Borrower shall have delivered evidence to the reasonable
satisfaction of Agent demonstrating that the ratio of (i) Total Debt as of the Closing Date after
giving effect to the consummation of the Related Transactions and the transactions contemplated by
the Loan Documents, payment of all costs and expenses in connection therewith and funding of the
initial Loans, to (ii) EBITDA of Holdings for the twelve (12) month period ending September 30,
2005 shall not be greater than 4.65:1.00.

          (r) Closing and Solvency Certificate. A certificate executed by an Authorized Officer
of Borrower certifying as to solvency and to the matters set forth in Section 4.2 as of the
Closing Date.

          (s) Non-Compete Agreements. Non-compete agreements duly executed by Borrower and each
of (i) M. Steven DeCarlo and (ii) Scott Purviance.

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

          4.2. All Credit Extensions.

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

Section 5. Representations and Warranties.

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

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          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 would not have a Material
Adverse Effect.

          5.2. Authorization; No Conflict.

     Borrower has the requisite corporate power to, and is duly authorized to, borrow monies
hereunder. Each of Borrower and each other Loan Party has the requisite corporate or equivalent
power to, and is duly authorized, (v) to own, pledge, mortgage and operate its properties, (w) to
lease any properties it operates under lease, (x) to conduct its business as presently conducted,
(y) to execute and deliver each Loan Document and each Related Agreement to which it is a party,
and (z) to perform its Obligations under each Loan Document to which it is a party and its
obligations under each Related Agreement 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 law, (ii) the charter, by-laws or other organizational documents of Borrower or any
other Loan Party or (iii) except as set forth on Schedule 5.2, 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 Agent created pursuant to the Collateral Documents and Liens in favor
of the Second Lien Agent created pursuant to the Second Lien Debt Documents) in each case of the
foregoing clauses (a), (b) and (c), except where the failure to do so could not reasonably be
expected to result in a Material Adverse Effect.

          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 has been duly executed and delivered by such Person and 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 Holdings and its Subsidiaries as at their
Fiscal Year ending December 31, 2004, and the unaudited consolidated financial statements of
Borrower and the Subsidiaries as at September 30, 2005, 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 in
all material respects 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 Holdings for the 5 year period commencing September 30, 2005 delivered to Agent and
Lenders on or prior to the Closing Date (i) were prepared by Borrower in good faith and (ii) were
prepared in accordance with assumptions which Borrower believes to be reasonable at the time of

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preparation and on the Closing Date, and the accompanying consolidated pro forma balance sheet
of Holdings as at the Closing Date, adjusted to give effect to the consummation of the Related
Transactions and the financings contemplated hereby as if such transactions had occurred on such
date, is consistent in all material respects with such projections. The Agent and the Lenders
acknowledge and agree that such projections represent forward looking information, are subject to
certain inherent uncertainties, that actual results might vary from such projections and such
variances might be material.

          5.5. No Material Adverse Change.

     Since December 31, 2004, there has been no material adverse change in the financial condition,
operations, assets, business or properties of the Loan Parties taken as a whole.

          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 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, 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, and, if corporate stock, are fully paid, non-assessable, and all
such securities are free and clear of all Liens other than those permitted by Section 7.2
or in favor of Agent, 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 (after giving effect to the Related
Transactions). All of the issued and outstanding equity of Holdings is owned as set forth on
Schedule 5.8 as of the Closing Date (after giving effect to the Related Transactions), all
of the issued and outstanding equity of Borrower prior to a Holdings Transaction is owned by
Holdings except for equity issued pursuant to the Borrower Stock Option Plan, and, except as set
forth on Schedule 5.8, all of the issued and outstanding equity of each Wholly-Owned
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. Except as set forth on
Schedule 5.8, no Loan Party owns any equity securities or any other interests in any
partnership, joint venture or other entity.

          5.9. Pension Plans.

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

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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 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” or a company “controlled”
by an “investment company” or a “subsidiary” of an “investment company”, within the meaning of the
Investment Company Act of 1940.

          5.11. 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 federal and other material tax
returns and reports required by law to have been filed by it and has paid all taxes and
governmental charges thereby shown to be owing, except any such taxes or charges which are being
diligently contested in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books.

          5.14. Solvency.

     On the Closing Date, immediately prior to and after giving effect to the issuance of each
Letter of Credit and each borrowing hereunder and the use of the proceeds thereof and consummation
of the Related Transactions, and after giving effect to rights of contribution and intercompany
loans and payments permitted hereunder with respect to each of Borrower and each other Loan Party,
individually, (a) the fair value of its assets on a going concern basis 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 on a going
concern basis 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
generally pay its debts and other liabilities (including disputed, contingent and unliquidated
liabilities) as they mature in the normal course of business, (d) it

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does not intend to, and does not believe that it will, incur debts or liabilities beyond its
ability to generally 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 (it being understood that the Subsidiaries listed on
Schedule 5.14 rely on funding from the Borrower to engage in business as currently
conducted by such entities).

          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 would 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.

     All information furnished in writing (including, without limitation, in any schedule,
certificate, financial statement, report or notice) on or prior to the date hereof by Borrower or
any other Loan Party to Agent or any Lender for purposes of or in connection with this Agreement
and the transactions contemplated hereby is (as such information has been supplemented prior to the
date hereof), and all written information (including, without limitation, any information in any
schedule, certificate, financial statement, report or notice) hereafter furnished by or on behalf
of Borrower or any Loan Party to Agent or any Lender pursuant hereto or in connection herewith will
be, true and accurate in every material respect on the date as of which such information is dated
or certified, and, as of the date delivered or certified, 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 is acknowledged and agreed by Agent and Lenders
that (i) any projections and forecasts provided by Borrower are based on good faith estimates and
(ii) projections are by their nature speculative, (iii) 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) and (iv) such differences might be material.

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          5.18. Intellectual Property.

     Except as set forth on Schedule 5.18, 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.

          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 as of the Closing Date. There are no
existing, and no Loan Party has received notice of any 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 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. Related Agreements.

          (a) Borrower has furnished Agent a complete copy of the Related Agreements pursuant hereto.
Each of Borrower and, to Borrower’s knowledge, each other party to the Related Agreements, has duly
taken all necessary organizational action to authorize the execution, delivery and performance of
the Related Agreements and the consummation of transactions contemplated thereby. As of the
Closing Date, the Related Transactions have been consummated (or are being consummated
substantially contemporaneously with the initial credit extension hereunder) in accordance with the
terms of the Related Agreements in all material respects except where Agent has consented
otherwise. The Related Transactions comply in all material respects with all applicable legal
requirements, and all necessary governmental, regulatory, creditor, shareholder, partner and other
material consents, approvals and exemptions required to be obtained by a Loan Party and, to
Borrower’s knowledge, each other party to the Related Agreements in connection with the Related
Transactions have been duly obtained and are in full force and effect. As of the Closing Date, all
applicable waiting periods with respect to the Related Transactions have expired without any action
being taken by any competent governmental authority which restrains, prevents or imposes material
adverse conditions upon the consummation of the Related Transactions. The execution and delivery
of the Related Agreements, and the consummation of the Related Transactions, did not violate any
material statute or regulation of the United States (including any securities law) or of any state
or other applicable jurisdiction, or any order, judgment or decree of any court or governmental
body binding on Borrower or any other Loan Party or, to Borrower’s knowledge, any other party to
the Related Agreements, or result in a material breach of, or constitute a material default under,
any material agreement, indenture, instrument or other document, or any judgment, order or decree,
to which Borrower or any other Loan Party is a party or by which Borrower or any other Loan

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Party is bound or, to Borrower’s knowledge, to which any other party to the Related Agreements
is a party or by which any such party is bound.

          (b) The lien subordination provisions of the Second Lien Subordination Agreement are
enforceable against the holders of the Second Lien Debt. All Obligations constitute first lien
Indebtedness entitled to the benefits of the lien subordination provisions contained in the Second
Lien Subordination Agreement. Borrower acknowledges that Agent and each Lender are entering into
this Agreement and are extending the Commitments and making the Loans in reliance upon the lien
subordination provisions applicable to the Second Lien Debt and this Section 5.22.

          5.23. Retail Brokers and Insurance Companies.

     As of the Closing Date, there exists no actual or, to the knowledge of any Loan Party after
due inquiry, threatened termination or cancellation of, or any material adverse modification or
change in: the business relationship of any Loan Party with any retail broker or group of retail
brokers whose business transactions during the preceding 12 months with Holdings and its
Subsidiaries caused them to be ranked among the ten largest retail brokers of Holdings and its
Subsidiaries, taken as a whole, or the business relationship of any Loan Party with any insurance
company whose business transactions during the preceding 12 months with Holdings and its
Subsidiaries caused it to be ranked among the five largest suppliers of insurance products to
clients of Holdings and its Subsidiaries taken as a whole.

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 and all Letters of Credit have been terminated or cash collateralized in a manner
reasonably satisfactory to Agent, Borrower agrees that, unless at any time Required Lenders shall
otherwise expressly consent in writing, it will:

          6.1.
Information.

     Furnish to Agent and each Lender:

          6.1.1.
Annual Report.

          Promptly when available and in any event within 120 days after the close of each Fiscal Year:
(a) a copy of the annual audit report of Holdings and its Subsidiaries for such Fiscal Year,
including therein a consolidated balance sheet and statements of earnings and cash flows of
Holdings and its Subsidiaries as at the end of and for such Fiscal Year, certified without
qualification by independent auditors of recognized standing selected by Holdings and reasonably
acceptable to Agent, together with (i) a written statement from such accountants to the extent
permitted by and consistent with such accountant’s audit policies, as determined in such
accountant’s sole discretion, to the effect that in making the examination necessary for the
signing of such annual audit report by such accountants, nothing came to their attention that
caused them to believe that Borrower was not in compliance with any provision of Section
7.1, 7.3, 7.4 or 7.14 insofar as such provision relates to accounting
matters or, if something has come to their attention that caused them to believe that Borrower was
not in compliance with any such provision, describing such non-compliance in reasonable detail and
(ii) a comparison with the budget for such Fiscal Year and a comparison with the previous Fiscal
Year; and (b) a consolidating balance sheet of Holdings and its Subsidiaries as of the end of such
Fiscal Year and consolidating statements of earnings and cash flows for Holdings and its
Subsidiaries for such Fiscal Year, certified by an Authorized Officer of Borrower.

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          6.1.2. Interim Reports.

          Promptly when available and in any event within 45 days after (i) the end of each month,
consolidated and consolidating balance sheets of Holdings and its Subsidiaries as of the end of
such month, together with consolidated and consolidating statements of earnings and a consolidated
statement of cash flows for such month and for the period beginning with the first day of such
Fiscal Year and ending on the last day of such month, together with a comparison with the
corresponding period of the previous Fiscal Year and a comparison with the budget for such period
of the current Fiscal Year, certified by an Authorized Officer of Borrower, and (ii) the end of
each Fiscal Quarter a written statement of Borrower’s management setting forth a discussion of
Borrower’s financial condition, changes in financial condition and results of operations as of and
for such period.

          6.1.3. Compliance Certificate.

          Contemporaneously with the furnishing of a copy of each annual audit report pursuant to
Section 6.1.1 and each set of financial statements pursuant to Section 6.1.2 with
respect to the last month of each Fiscal Quarter, a duly completed Compliance Certificate, with
appropriate insertions, dated the date of such annual report or such monthly statements, and signed
by an Authorized Officer of Borrower, containing (i) a computation of each of the financial ratios
and restrictions set forth in Section 7.14 and (ii) a statement to the effect that such
officer has not become aware of any Event of Default or Default that has occurred and is continuing
or, if there is any such event, describing it and the steps, if any, being taken to cure it.

          6.1.4. Reports to SEC and Shareholders.

          Promptly upon the filing or sending thereof, copies of (a) all regular, periodic or special
reports of each Loan Party filed with the Securities and Exchange Commission, (b) all registration
statements of each Loan Party filed with the Securities and Exchange Commission (other than on Form
S-8) and (c) all proxy statements or other communications made to security holders generally.

          6.1.5. Notice of Default; Litigation; ERISA Matters.

          Promptly upon any Authorized Officer of any Loan Party obtaining knowledge 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 Lenders 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 in any such case could reasonably be expected to have a Material Adverse
Effect;

          (c) the institution of any steps by any member of the Controlled Group or any other Person to
terminate any Pension Plan, or the failure of any member of the Controlled Group to make a required
contribution to any Pension Plan (if such failure is sufficient to give rise to a Lien under
Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or the taking of any action with
respect to a Pension Plan which could result in the requirement that Borrower or any 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

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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.

          6.1.6. Management Report.

          Promptly upon receipt thereof, copies of all formal management reports submitted to Borrower
or any other Loan Party by independent auditors in connection with each annual or interim audit
made by such auditors of the consolidated financial statement of Borrower and the other Loan
Parties.

          6.1.7. Projections.

          As soon as practicable, and in any event not later than 30 days after the commencement of each
Fiscal Year, financial projections for Holdings and its Subsidiaries for such Fiscal Year
(including monthly operating and cash flow budgets) prepared in a manner consistent with the
projections delivered by Borrower to Lenders prior to the Closing Date or otherwise in a manner
reasonably satisfactory to Agent, accompanied by a certificate of an Authorized Officer of Borrower
on behalf of Borrower to the effect that (a) such projections were prepared by Borrower in good
faith, (b) Borrower had a reasonable basis for the assumptions contained in such projections when
made and (c) such projections have been prepared in accordance with such assumptions. The Agent
and each Lender acknowledge and agree that any such projections constitute forward-looking
information, are subject to inherent uncertainties, that actual results will vary from the
projections and that such variances may be material.

          6.1.8. Second Lien Debt and Subordinated Debt Notices.

          Promptly following receipt, copies of any notices (including notices of default or
acceleration) received from any agent, holder or trustee of, under or with respect to any Second
Lien Debt or Subordinated Debt.

          6.1.9. Subsidiary Formation.

          Not less than 7 days prior written notice to Agent of the proposed formation by Borrower or
any Subsidiary of any other Subsidiary (which newly-formed Subsidiary shall be a Wholly-Owned
Subsidiary), together with the actions proposed to be taken by Borrower to comply with, or cause
compliance with, the provisions of Section 6.8 in respect of such Subsidiary formation.

          6.1.10. Other Information.

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

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          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, upon reasonable prior written notice
(unless an Event of Default exists) and during such Loan Party’s normal business hours, Agent
(accompanied by any Lender) or any representative thereof to inspect the properties and operations
of Borrower or such other Loan Party not more than twice per year (or at any time that an Event of
Default exists); and permit, and cause each other Loan Party to permit during such Loan Party’s
normal business hours, at any reasonable time and with reasonable notice not more than twice per
year (or at any time without notice if an Event of Default exists), Agent (accompanied by any
Lender) or, subject to the same conditions, any representative thereof to visit any or all of its
offices, to discuss its financial matters with its officers and its independent auditors (and
Borrower hereby authorizes such independent auditors to discuss such financial matters with any
Lender or Agent or any representative thereof, so long as Borrower or its representative is given
the opportunity to the present), 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, Agent and its representatives to inspect the Collateral and other
tangible assets of Borrower or such Loan Party, to perform appraisals of the equipment 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 Agent shall be at Borrower’s
expense, provided that so long as no Event of Default or Default exists, Borrower shall not be
required to reimburse Agent for the conduct of appraisals or audits more frequently than once each
Fiscal Year or in amount in excess of $10,000 in the aggregate in any Fiscal Year.

          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.

          (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 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
not materially higher than, those amounts provided for as of the Closing Date. Upon request of
Agent, Borrower shall furnish to Agent 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 Agent with an endorsement (i) showing Agent as a loss
payee with respect to each policy of property or casualty insurance and naming Agent as an
additional insured with respect to each policy of liability insurance, (ii) providing that 30 days’
notice will be given to Agent 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 Agent. Borrower shall execute and deliver to Agent a collateral assignment, in
form and substance satisfactory to Agent, of each business interruption insurance policy maintained
by the Loan Parties.

          (c) Unless Borrower provides Agent with evidence of the continuing insurance coverage required
by this Agreement following request therefor, Agent may purchase insurance at Borrower’s expense to
protect Agent’s and Lenders’ interests in the Collateral. This insurance may, but need not,

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protect Borrower’s and each other Loan Party’s interests. The coverage that Agent 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 Agent, but
only after providing Agent with evidence that Borrower has obtained the insurance coverage required
by this Agreement. If Agent purchases insurance for the Collateral, as set forth above, Borrower
will be responsible for the costs of that insurance, including interest and any other charges that
may be imposed with the placement of the insurance, until the effective date of the cancellation or
expiration of the insurance and the costs of the insurance may be added to the principal amount of
the Loans owing hereunder.

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

     (a) Comply, and cause each other Loan Party to comply, 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, take reasonable steps to ensure, and cause each other Loan Party to take reasonable steps 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 in all material respects and cause
each other Loan Party to comply in all material respects, 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,
charge or claim so long as it shall contest the validity thereof in good faith by appropriate
proceedings and shall set aside on its books adequate reserves with respect thereto in accordance
with GAAP.

          6.5. Maintenance of Existence.

     Maintain and preserve, and (except as permitted by Section 7.5) cause each other Loan
Party to maintain and preserve, (a) its (i) existence and (ii) good standing in the jurisdiction of
its organization, (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, (c) its licenses, permits, authorizations and registrations, other than
where the failure to do so could not reasonably be expected to have a Material Adverse Effect and
(d) its leases, contracts, agreements and other arrangements other than where the failure to do so
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; except to the extent the
failure to so comply would not reasonably be expected to result in a Material Adverse Effect.

          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

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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. Further Assurances.

     Take, and cause each other Loan Party to take, such actions as are necessary or as Agent or
the Required Lenders may reasonably request from time to time to ensure that the Obligations of
Borrower 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
domestic Subsidiary and 65% of the voting equity interests of first tier foreign Subsidiaries) and
guaranteed by each Loan Party (including, promptly upon the acquisition or creation thereof, any
Subsidiary that is acquired or created after the Closing Date), in each case including (a) the
execution and delivery, if applicable, 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.

          6.9. Interest Rate Protection.

     Enter into, prior to the Closing Date and/or at any time not later than 90 days after the
Closing Date, one or more interest rate protection mechanisms with terms of at least two years,
commencing on the Closing Date, on the ISDA standard form with one or more Lenders or Affiliates
thereof or with counterparties reasonably acceptable to Agent to hedge the interest rate with
respect to not less than 40% of the aggregate principal amount of the Term Loans and the Second
Lien Debt, in form and substance reasonably satisfactory to Agent.

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 and all Letters of Credit have been terminated or cash collateralized in a manner
reasonably satisfactory to Agent, Borrower agrees that, unless at any time Required Lenders shall
otherwise expressly consent in writing, it will:

          7.1. Debt.

     Not, and not permit any other Loan Party to, create, incur, assume or suffer to exist any
Debt, except the following (“Permitted Debt”):

          (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 $4,000,000;

          (c) Debt of Borrower to any domestic Wholly-Owned Subsidiary or Debt of any domestic
Subsidiary (other than PAUSE Insurance) to Borrower or a domestic Wholly-Owned Subsidiary;

-42-

 

          (d) Hedging Obligations incurred to satisfy Borrower’s obligations under Section 6.9;

          (e) 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;

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

          (g) Contingent Obligations (i) by endorsement of instruments for deposit or collection in the
ordinary course of business, or (ii) consisting of guarantees of Debt incurred for the benefit of
any other Loan Party if the primary obligation is permitted elsewhere in this Section 7.1;

          (h) The accrual and capitalization of interest on any Permitted Debt;

          (i) Debt consisting of promissory notes issued by any Loan Party to former officers,
directors, employees (or their estates, spouses or former spouses) of Borrower or Holdings to
purchase or redeem capital stock of Borrower or Holdings upon the termination of employment, in
accordance with Section 7.4(vi);

          (j) Debt incurred in connection with the financing of insurance premiums;

          (k) Debt in respect of netting services, overdraft protections and otherwise in connection
with deposit accounts, so long as such Debt is incurred in the ordinary course of business;

          (l) Debt incurred in connection with Liens permitted under Section 7.2(b);

          (m) Seller Debt incurred in connection with Acquisitions permitted hereunder, provided
that (i) such Debt is subordinated to the Obligations on terms consented to by Agent in its
reasonable discretion and (ii) the aggregate outstanding amount of such Debt does not at any time
exceed $15,000,000;

          (n) Earn-outs incurred in connection with Acquisitions permitted hereunder;

          (o) Subordinated Debt incurred by the Borrower and guarantees thereof by the Subsidiaries;

          (p) The Second Lien Debt;

          (q) Debt of Holdings to the Borrower permitted by Section 7.4; and

          (r) Other Debt, in addition to the Debt listed above, in an aggregate outstanding amount not
at any time exceeding $3,500,000.

          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 any of the following:

          (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;

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          (b) Liens arising in the ordinary course of business (such as (x) Liens of carriers,
warehousemen, mechanics, landlords and materialmen and other similar Liens imposed by law and (y)
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 or pledges or deposits in connection with insurance,
leases, or other contracts or bids) (i) for sums not overdue for more than 10 Business Days (or
more than 60 days with respect to amounts due to trade creditors in the ordinary course of
business) so long as no Person has taken any legal action to enforce such Lien or (ii) being
diligently contested in good faith by appropriate proceedings and not involving any 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;

          (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
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, securing claims not
exceeding $2,500,000 arising in connection with court proceedings; provided that the claims secured
thereby have been paid, discharged or vacated or the execution thereof has been stayed pending
appeal within 30 days after entry or filing of such attachments, appeal bonds, judgments and other
similar Liens;

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

          (g) Liens arising under the Loan Documents and the Second Lien Debt Documents;

          (h) the replacement, extension or renewal of any Lien permitted by clauses (c) and (d) 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);

          (i) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

          (j) Any interest or title of a licensor, sublicensor, lessor or sublessor under any license or
lease agreement;

          (k) Licenses, sublicenses, leases or subleases granted to third Persons in the ordinary course
of business;

          (l) Liens which arise under Article 4 of the UCC on items in collection and documents and
proceeds related thereto;

          (m) Liens deemed to exist in connection with Permitted Investments that constitute repurchase
obligations;

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          (n) Rights of setoff or banker’s liens upon deposits of cash in favor of banks or other
depository institutions to the extent permitted by the tri-party agreements required by Section
7.15;

          (o) Precautionary filings with respect to operating leases; and

          (p) Liens in an amount not to exceed $2,500,000 in the aggregate securing Permitted Debt or
other obligations.

          7.3. Reserved.

          7.4. Restricted Payments.

     Not, and not permit any other Loan Party to, (a) make any dividend or other distribution in
cash or property (but not its own capital stock) 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
(other than redemptions on the Closing Date as set forth in the Purchase Agreement (including
Exhibit F thereto)), (c) pay any management fees or similar fees to any of its equity holders or
any Affiliate thereof, (d) make any redemption, prepayment (whether mandatory or optional),
defeasance, repurchase or any other payment in respect of the Second Lien Debt or any Subordinated
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) at any time prior to a Holdings Transaction, Borrower may make distributions or
advances to Holdings to permit Holdings to pay: (w) federal and state income taxes then due and
owing by Holdings or its equity holders (and Holdings may make such tax distributions to its equity
holders to pay any such taxes) (A) attributable to the income or operations of Borrower and its
Subsidiaries or (B) with respect to roll-over equity as contemplated by the Purchase Agreement not
to exceed, with respect to this clause (B), $1,500,000 in the aggregate, (x) reasonable fees for
audit, legal and similar administrative services not to exceed $200,000 per Fiscal Year, (y)
customary fees to non-officer directors of Holdings who are not Affiliates of Holdings and
out-of-pocket expenses to directors or observers of the board of directors of Holdings, and (z)
payments permitted by clause (vi) of this Section 7.4; (iii) Borrower may make payments to
Sponsor with respect to indemnification obligations so long as no Event of Default then exists or
would result therefrom; (iv) Holdings or the Borrower may, in respect of management and other
advisory services rendered by Manager to Holdings and its Subsidiaries: (x) in the case of an
investment in the equity capital of Holdings or an acquisition or divestiture in which Holdings or
one or more of its Subsidiaries is a primary party and with respect to which Manager has provided
Holdings or one or more of its Subsidiaries advisory services, pay to Manager (or its designee) a
transaction advisory fee (an “Advisory Fee”) equal to 0.75% (or less) of the gross amount
of such transaction after the consummation of such transaction pursuant to the Management
Agreement, provided that (A) such transaction is permitted under this Agreement and (B) at
the time such fee is incurred and at the time such fee is paid, no Event of Default has occurred
and is continuing (including after giving pro forma effect to such transaction and
the payment of such fee), (y) pay to Manager an annual management fee (a “Management Fee”)
equal to 0.75% (or less) of the aggregate amount invested in the equity capital of Holdings by
Sponsor and its Investment Affiliates, whether directly or through an Affiliate, pursuant to the
Management Agreement, provided that at the time any such payment is made, no Event of
Default has occurred and is continuing (including after giving pro forma effect to
such payment) and (z) reimburse Manager for the reasonable out-of-pocket expenses incurred by it in
connection with the performance of such management and advisory services pursuant to the Management
Agreement; provided, however, that in the case of clauses (x) and (y) above, (A)
the conditions to payment shall not apply if the payment is to be made in the form of equity of
Holdings or proceeds of a contemporaneous equity offering or capital contribution, and (B) in the
event that any payment is not made because an Event of Default has occurred and is continuing at
the time of the scheduled payment thereof, such fees may be paid in full after all existing Events
of Default

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have been cured or waived; (v) Holdings or the Borrower may redeem or repurchase equity of
Holdings or the Borrower, respectively, held by former officers, directors, or employees of
Holdings or any of its Subsidiaries following the death or disability of such Person, to the extent
Holdings or the Borrower has received net cash proceeds from insurance covering the death or
disability of such Person in a dollar amount no less than the dollar amount of such redemption or
repurchase; (vi) Holdings, Borrower and/or its Subsidiaries may make other payments or advances to
allow any Loan Party to repurchase equity from former directors, officers or employees of any Loan
Party, their estates, spouses, or former spouses in connection with the termination of such
employee’s employment (or such director’s directorship) not to exceed $4,000,000 in the aggregate
or $1,500,000 to any single such Person, and the Loan Parties may make distributions and advances
to their parent companies to effect such purchases and/or to make payments on any notes issued in
connection with any such repurchase; provided, however, that no Event of Default
shall have occurred and be continuing at the time of such distribution (including after giving
pro forma effect to such distribution); (vii) any of Holdings, Borrower or
Subsidiaries may make repurchases of capital stock of any Loan Party deemed to occur upon the
cashless exercise of options or warrants; (viii) in each case to the extent due and payable on a
non-accelerated basis and permitted under the applicable subordination provisions thereof, Borrower
may make regularly scheduled payments of (A) interest in respect of Second Lien Debt and (B)
principal and interest in respect of Subordinated Debt; and (ix) Holdings or the Borrower may
redeem or repurchase equity of a Subsidiary of the Borrower to the extent required pursuant to the
exercise of a put right by a holder thereof under the agreements listed on Schedule 5.2;
provided, however, no Default or Event of Default shall have occurred and be
continuing at the time of such redemption or repurchase (including after giving pro
forma effect to such redemption or repurchase).

          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 (i) any such merger, consolidation, liquidation or voluntary dissolution of any
Subsidiary into Borrower or any domestic Wholly-Owned Subsidiary, (ii) any such merger or
consolidation to effect a Holdings Transaction and (iii) any such merger or consolidation to effect
an Acquisition permitted hereunder.

          (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 and dispositions of assets (excluding any equity interests of Borrower or any
Subsidiary) for at least fair market value (as determined by the Board of Directors of Borrower) so
long as the net book value of all assets sold or otherwise disposed of in any Fiscal Year does not
exceed $500,000; (ii) sales, licenses or leases of intellectual property in the ordinary course of
business; (iii) obsolete property disposed of in the ordinary course of its business, (iv) the sale
or other transfer of Inventory in the ordinary course of business, (v) the discount, settlement or
write off of accounts receivable or overdue accounts receivable for collection in the ordinary
course of business, (vi) the sale or other disposition of Cash Equivalents and other Investments
permitted under Section 7.11 (other than Investments in Subsidiaries), (vii) the termination,
surrender or sublease of a real estate lease of a Loan Party in the ordinary course of business,
(viii) the cancellation of any intercompany indebtedness (other than amounts owed by a
non-Wholly-Owned Subsidiary to the Borrower or any Wholly-Owned Subsidiary) or (ix) transfers of
assets pursuant to Section 7.11(h).

          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 Agent or any Lender.

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          7.7. Use of Proceeds.

     Use the proceeds of the Loans, and the Letters of Credit, to repay in full, on the Closing
Date, the Prior Debt, to fund on the Closing Date in part the Related Transactions, for working
capital, for Capital Expenditures, to pay transaction expenses, interest and any fees or other
charges arising in connection with the prepayment of any Debt and for other general business
purposes; 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.

     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. It is
acknowledged and agreed by the Agent and the Lenders that the below listed transactions comply with
the provisions of this Section 7.8:

          (a) Any transactions, arrangements or fees, reimbursements and indemnities specifically
permitted under this Agreement;

          (b) Compensation and indemnities to officers and directors;

          (c) Issuances of stock, options and warrants therefor;

          (d) Expense reimbursement and indemnities to Affiliates to the extent permitted in this
Agreement;

          (e) Employment agreements and agreements incidental thereto entered into with officers and
employees of the Loan Parties; and

          (f) Any transaction set forth on Schedule 7.8

          7.9. Inconsistent Agreements.

     Not, and not permit any other Loan Party to, enter into any agreement (other than the Second
Lien Debt Documents) 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 Agent and Lenders a Lien on any of its assets other than restrictions in any
agreement governing any Debt permitted by Section 7.1(b) so long as such restriction is
limited to the assets financed with the proceeds of such Debt and restrictions against assignment
thereof contained in any contract or license entered into in the ordinary course of business 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, in the case of this clause (iii), restrictions in any
agreement governing any Debt permitted by Section 7.1(b) so long as such restriction is
limited to the assets financed with the proceeds of such Debt and restrictions against assignment
thereof contained in any contract or license entered into in the ordinary course of business.

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          7.10. Business Activities.

     Not engage in any line of business other than the businesses engaged in on the Closing Date
provided that such businesses do not generate more than $1,000,000 in revenue during any Fiscal
Year. 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. Not, and not permit any
other Loan Party to, issue any equity interest other than (a) any issuance by a Subsidiary to
Borrower or another Subsidiary in accordance with Section 7.4, (b) any issuance of options
pursuant to the Borrower Stock Option Plan or any issuance of stock upon the exercise of such
options, or (c) any issuance of shares of Holdings’ equity securities (or, following a Holdings
Transaction and subject to Section 8.1.10, Borrower’s equity securities).

          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, except the following (each a “Permitted
Investment”):

          (a) Investments constituting Debt permitted by Section 7.1(c) or Section
7.1(o);

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

          (c) Cash Equivalent Investments;

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

          (e) 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;

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

          (g) Investments in Borrower and any domestic Wholly-Owned Subsidiary and any purchase or other
acquisition by Borrower or any domestic Wholly-Owned Subsidiary of the assets or equity interests
of any other domestic Wholly-Owned Subsidiary;

          (h) Investments in any domestic non-Wholly-Owned Subsidiary existing on the Closing Date
(other than PAUSE Insurance) and any purchase or other acquisition of the assets or equity
interests of any domestic non-Wholly-Owned Subsidiary existing on the Closing Date (other than
PAUSE Insurance);

          (i) the creation or establishment of one or more Wholly-Owned Subsidiaries so long as the
provisions of Section 6.8 are complied with;

          (j) Loans to employees, officers, and directors to buy capital stock of Holdings in an amount
not to exceed $10,000,000 outstanding in the aggregate any time provided that the proceeds of the
issuance of the capital stock of Holdings in connection therewith are contributed to the Borrower
by Holdings;

          (k) Loans to senior executives which are matched by performance based deferred compensation
accounts in lieu of cash bonuses and which are used to purchase stock of Holdings provided that the
proceeds of the issuance of the capital stock of Holdings in connection therewith are contributed
to the Borrower by Holdings;

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          (l) Hedging Obligations;

          (m) a loan or an Investment that could otherwise be made as a distribution permitted under
Section 7.4 (with a commensurate reduction of the ability to make additional distributions
under such section);

          (n) any Acquisition by Borrower or any domestic Wholly-Owned Subsidiary where (i) the business
or division acquired is for use, or the Person acquired is engaged, in the businesses engaged in by
Borrower and the Subsidiaries on the Closing Date, (ii) in the case of the Acquisition of any
Person, the Board of Directors of such Person has approved such Acquisition and all of the equity
interests of such Person are being acquired, (iii) immediately before and after giving effect to
such Acquisition and the Loans made to fund such Acquisition, no Event of Default or Default shall
exist, (iv) immediately after giving effect to such Acquisition and the Loans made to fund such
Acquisition, Borrower is in pro forma compliance with Section 7.14 (provided that for
purposes of determining pro forma compliance with Section 7.14.3, the maximum Total Debt to
EBITDA Ratio shall be deemed to be 0.25 less than the ratio then required to be satisfied as set
forth in Section 7.14.3), as reflected in a Compliance Certificate delivered to Agent at
least three Business Days prior to the consummation of such Acquisition, (v) the aggregate
consideration to be paid by Borrower and the Subsidiaries (including any Debt assumed or issued in
connection therewith, the amount thereof to be calculated in accordance with GAAP, but excluding
(A) any Earn-out obligations or payments, (B) the fair market value of any equity of Holdings
issued in connection with such Acquisition, and (C) any cash consideration which is the proceeds of
equity issued in accordance with Section 7.10) in connection with such Acquisition (or any
series of related Acquisitions) is less than $15,000,000 per Acquisition and less than $50,000,000
in the aggregate for all Acquisitions during the term of this Agreement, (vi) at the time of and
immediately after giving effect to such Acquisition and the related Loans, the sum of (x) the
excess of Borrowing Availability over Revolving Outstandings plus (y) unrestricted cash shall not
be less than $5,000,000, (vii) reasonably prior to any such Acquisition (or, with respect to any
Acquisition with aggregate consideration of less than $3,000,000, within 30 days after consummation
of such Acquisition), with respect to any Acquisition with aggregate consideration of less then
$3,000,000, Agent shall have received complete executed or conformed copies of each material
document, instrument and agreement to be executed in connection with such Acquisition, (viii) not
less than ten (10) Business Days prior to such Acquisition, an acquisition summary with respect to
the Person and/or business or division to be acquired, such summary to include a reasonably
detailed description thereof (including financial information) and operating results (including
financial statements for the most recent 12 month period for which they are available and as
otherwise available), the terms and conditions, including economic terms, of the proposed
Acquisition, and Borrower’s calculation of EBITDA relating thereto adjusted by adjustments that are
consistent with Regulation S-X or otherwise approved by Agent in its reasonable discretion (which
adjusted EBITDA shall be greater than $0), (ix) consents have been obtained in favor of Agent and
Lenders to the collateral assignment of rights and indemnities under the related acquisition
documents and (x) opinions of counsel for the Loan Parties and (if delivered to the Loan Parties)
the selling party in favor of Agent and Lenders (or otherwise permitting Agent and Lenders to rely
thereon) have been delivered;

          (o) other Investments not exceeding $3,000,000 in the aggregate at any time (with the amount
of any Investment being the initial amount of such Investment less all cash repayments, returns,
dividends and distributions received in respect of such Investment); and

          (p) accretions and accruals of value on the above Investments.

          7.12. Restriction of Amendments to Certain Documents.

     Not amend or otherwise modify, or waive any rights under (a) any Related Agreement (other than
any Second Lien Debt Document), other than immaterial amendments, modifications and waivers not

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adverse to the interests of Agent or any Lender or (b) any provisions of any Second Lien Debt
Document or any document relating to Subordinated Debt (except that the terms of the Second Lien
Debt Documents may be amended to the extent permitted under the Second Lien Subordination
Agreement); provided, that amendments, modifications or waivers of any Related Agreement,
any Second Lien Debt Document or any document related to Subordinated Debt to substitute Borrower
for Holdings in connection with a Holdings Transaction are not prohibited by this Section
7.12.

          7.13. Fiscal Year; Accounting Method.

     Not change its Fiscal Year or, except as contemplated by Section 1.3 or as required by
GAAP, its accounting methods.

          7.14. Financial Covenants.

          7.14.1. Fixed Charge Coverage Ratio.

          Not permit the Fixed Charge Coverage Ratio for any Computation Period to be less than 1.25.

          7.14.2. Interest Coverage Ratio.

          Not permit the Interest Coverage Ratio for any Computation Period to be less than the
applicable ratio set forth below for such Computation Period:

	 	 	 	 	 
	Computation	 	Interest
	Period Ending	 	Coverage Ratio
	December 31, 2005
	 	 	2.00	 
	March 31, 2006
	 	 	2.00	 
	June 30, 2006
	 	 	2.00	 
	September 30, 2006
	 	 	2.00	 
	December 31, 2006
	 	 	2.00	 
	March 31, 2007
	 	 	2.00	 
	June 30, 2007
	 	 	2.25	 
	September 30, 2007
	 	 	2.25	 
	December 31, 2007
	 	 	2.25	 
	March 31, 2008
	 	 	2.25	 
	June 30, 2008
	 	 	2.25	 
	September 30, 2008
	 	 	2.25	 
	December 31, 2008
	 	 	2.50	 
	March 31, 2009
	 	 	2.50	 
	June 30, 2009
	 	 	2.50	 
	September 30, 2009
	 	 	2.50	 
	December 31, 2009 and thereafter
	 	 	2.75	 

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          7.14.3. Total Debt to EBITDA Ratio.

          Not permit the Total Debt to EBITDA Ratio as of the last day of any Computation Period to
exceed the applicable ratio set forth below for such Computation Period:

	 	 	 	 	 
	Computation	 	Total Debt to
	Period Ending	 	EBITDA Ratio
	December 31, 2005
	 	 	5.38	 
	March 31, 2006
	 	 	5.38	 
	June 30, 2006
	 	 	5.38	 
	September 30, 2006
	 	 	5.38	 
	December 31, 2006
	 	 	5.38	 
	March 31, 2007
	 	 	5.00	 
	June 30, 2007
	 	 	5.00	 
	September 30, 2007
	 	 	4.75	 
	December 31, 2007
	 	 	4.75	 
	March 31, 2008
	 	 	4.50	 
	June 30, 2008
	 	 	4.50	 
	September 30, 2008
	 	 	4.25	 
	December 31, 2008
	 	 	4.25	 
	March 31, 2009
	 	 	4.00	 
	June 30, 2009
	 	 	4.00	 
	September 30, 2009
	 	 	3.75	 
	December 31, 2009
	 	 	3.75	 
	March 31, 2010 and thereafter
	 	 	3.50	 

          7.14.4. Capital Expenditures.

          Not permit the aggregate amount of all Capital Expenditures made by Borrower and the
Subsidiaries to exceed $3,250,000 in any Fiscal Year, commencing with Fiscal Year 2005; provided,
that if Borrower does not utilize the entire amount of Capital Expenditures permitted in any Fiscal
Year, so long as no Event of Default exists or would be caused thereby, Borrower may carry forward
to the immediately succeeding Fiscal Year only, 50% of such unutilized amount (with Capital
Expenditures made by Borrower in such succeeding Fiscal Year applied last to such unutilized
amount).

          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 and trust accounts) without prior
written notice to Agent, unless Agent, Borrower or such other Loan Party and the bank at which the
account is to be

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opened enter into a tri-party agreement regarding such bank account pursuant to which such
bank acknowledges the security interest and control of Agent in such bank account and agrees to
limit its set-off rights on terms satisfactory to Agent.

          7.16. Sale and Leaseback.

     Not, and not permit any other Loan Party, to engage in any sale-leaseback, synthetic lease or
similar transaction involving any of its assets.

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 three Business Days, in the payment when due of any interest, fee, reimbursement
obligation with respect to any Letter of Credit 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 under the terms of the Second Lien Debt Documents, or any default
shall occur under the terms applicable to any other Debt of any Loan Party in an aggregate amount
(for all such Debt so affected and including undrawn committed or available amounts and amounts
owing to all creditors under any combined or syndicated credit arrangement) exceeding $3,500,000
and such default shall (a) consist of the failure to pay such Debt when due, whether by
acceleration or otherwise or (b) accelerate the maturity of such Debt or permit the holder or
holders thereof, or any trustee or agent for such holder or holders, to cause such Debt to become
due and payable (or require Borrower 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 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 undismissed; 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, 6.1.5(a), 6.3(b), 6.5(a)(i),
6.9 and 7; (b) failure by Borrower to comply with or

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to perform any covenant set forth in Section 6.1.7 and the continuance of such failure
for 5 Business Days after notice thereof by Agent; or (c) any Loan Party to comply with or to
perform any other provision of this Agreement or any other Loan Document applicable to it (and not
constituting an Event of Default under any other provision of this Section 8) and
continuance of such failure described in this clause (c) for 30 days after the earlier of (i)
notice thereof by Agent and (ii) knowledge thereof by an Authorized Officer of the Borrower.

          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 when made or deemed to have been made.

          8.1.6. Pension Plans.

          (a) Institution of any steps by any Person to terminate a Pension Plan if as a result of such
termination 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 $1,000,000; (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 $1,000,000.

          8.1.7. Judgments.

          Final judgments which exceed an aggregate of $2,500,000 (exclusive of any amounts acknowledged
by the applicable insurer to be fully covered by insurance (less any applicable deductible)) shall
be rendered against any Loan Party and shall not have been paid, discharged or vacated or had
execution thereof stayed pending appeal within 30 days after entry or filing of such judgments.

          8.1.8. Invalidity of Collateral Documents.

          Any Collateral Document shall cease to be in full force and effect (other than in accordance
with its terms); or, except as permitted under any Collateral Document, any Lien securing any
Obligation shall cease to be a perfected Lien; 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 Subordination Provisions.

          Any subordination provision in any document or instrument governing Second Lien Debt or
Subordinated Debt or any subordination provision in any subordination agreement that relates to any
Second Lien Debt or Subordinated Debt (including, without limitation, any subordination provision
in the Second Lien Debt Subordination Agreement), or any subordination provision in any guaranty by
any Loan Party of any Second Lien Debt or Subordinated Debt, shall cease to be in full force and
effect, or any Person (including the holder of any applicable Second Lien Debt or Subordinated
Debt) shall contest in any manner the validity, binding nature or enforceability of any such
provision.

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     8.1.10. Change of Control.

     (a) Sponsor and its Investment Affiliates shall collectively cease to, directly or indirectly,
(i) own and control at least 40% of the common equity interests of Holdings (or, following a
Holdings Transaction, the Borrower) or (ii) control that percentage of the outstanding voting
equity interests of Holdings (or, following a Holdings Transaction, the Borrower) necessary at all
times to elect a majority of the board of directors (or similar governing body) of Holdings or
Borrower, as applicable, and to direct the management policies and decisions of Holdings or
Borrower, as applicable; (b) any Person or “group” (within the meaning of Rules 13d-3 and 13d-5
under the Securities Exchange Act of 1934 as in effect on the Closing Date) other than Sponsor or
any of its Investment Affiliates shall have acquired a greater beneficial ownership in Holdings’
(or, following a Holdings Transaction, the Borrower’s) voting equity interests than that held
collectively by Sponsor and its Investment Affiliates; (c) a majority of Holdings’ (or, following a
Holdings Transaction, the Borrower’s) board of directors (or similar governing body) shall cease to
consist of the directors (or similar parties) of Holdings or Borrower, as applicable, on the
Closing Date and other directors (or similar parties) whose nomination for election to Holdings’ or
Borrower’s, as applicable, board of directors (or similar governing body) is recommended by at
least a majority of the foregoing described directors (or similar parties); (d) at any time prior
to a Holdings Transaction, Holdings shall cease to directly own and control 100% of each class of
the outstanding equity interests of Borrower (other than equity interests issued pursuant to the
Borrower Stock Option Plan); (e) Borrower shall cease to, directly or indirectly, own and control
100% of each class of the outstanding equity interests of each Subsidiary (other than PAUSE
Insurance); provided, that no Event of Default shall exist under this clause (e) with
respect to any non-Wholly-Owned Subsidiary (other than PAUSE Insurance) prior to the redemption of
the minority interests of such non-Wholly-Owned Subsidiary so long as Borrower continues to,
directly or indirectly, own and control the percentage of such non-Wholly-Owned Subsidiary that it
owned and controlled on the Closing Date, or (f) a “Change of Control” or other similar event shall
occur, as defined in, or under, the Second Lien Debt or any Subordinated Debt or any documentation
evidencing or otherwise relating to Second Lien Debt or Subordinated Debt.

     8.1.11. Activities of Holdings.

     Holdings (i) conducts any business other than its ownership of equity securities of Borrower,
the issuance of equity of Holdings permitted hereunder, the conducting of audits, and the other
activities of Holdings permitted hereunder, or (ii) incurs any Debt or liabilities other than
liabilities incidental to the conduct of its business as permitted hereunder; provided,
that Holdings may consummate a Holdings Transaction.

     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 and Borrower shall become immediately obligated to cash collateralize all Letters of Credit
in a manner acceptable to Agent, all without presentment, demand, protest or notice of any kind;
and, if any other Event of Default shall occur and be continuing, Agent (upon the written request
of Required Lenders) shall declare the Commitments to be terminated in whole or in part and/or
declare all or any part of the Loans and other Obligations to be due and payable and/or demand that
Borrower immediately cash collateralize all or any Letters of Credit in a manner acceptable to
Agent, whereupon the Commitments shall immediately terminate (or be reduced, as applicable) and/or
the Loans and other Obligations shall become immediately due and payable (in whole or in part, as
applicable) and/or Borrower shall immediately become obligated to cash collateralize the Letters of
Credit (all or any, as applicable) in a manner acceptable to Agent, all without presentment,
demand, protest or notice of any kind. Agent shall

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promptly advise Borrower of any such declaration, but failure to do so shall not impair the
effect of such declaration. Notwithstanding the foregoing, the effect as an Event of Default of
any event described in Section 8.1.1 may only be waived by the written concurrence of each
Lender, and the effect as an Event of Default of any other event described in this Section
8 may be waived by the written concurrence of Required Lenders. Any cash collateral delivered
hereunder shall be held by Agent (without liability for interest thereon) and applied to
Obligations arising in connection with any drawing under a Letter of Credit. After the expiration
or termination of all Letters of Credit, such cash collateral shall be applied by Agent to any
remaining Obligations and any excess shall be delivered to Borrower or as a court of competent
jurisdiction shall order.

Section 9. Agent.

          9.1. Appointment; Authorization.

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

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

          9.2. Delegation of Duties.

     Agent may execute any of its duties under this Agreement or any other Loan Document by or
through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. Agent shall not be responsible for the
negligence or misconduct of any agent or attorney-in-fact that it selects with reasonable care.

          9.3. Limited Liability.

     None of Agent or any of its directors, officers, employees or agents shall (a) be liable for
any action taken or omitted to be taken by any of them under or in connection with this Agreement
or any other Loan Document or the transactions contemplated hereby (except to the extent resulting
from its own gross negligence or willful misconduct as determined by a court of competent
jurisdiction), or (b) be responsible in any manner to any Lender for any recital, statement,
representation or warranty made by any Loan Party or Affiliate of any Loan Party, or any officer
thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by Agent under or in
connection with, this Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan Document (or the
creation, perfection or priority of any Lien or security interest therein),

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or for any failure of any Loan Party or any other party to any Loan Document to perform its
Obligations hereunder or thereunder. Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the agreements contained in,
or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or
records of any Loan Party or Affiliate of any Loan Party.

          9.4. Reliance.

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

          9.5. Notice of Default.

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

          9.6. Credit Decision.

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

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provide any Lender with any credit or other information concerning the business, prospects,
operations, property, financial or other condition or creditworthiness of any Loan Party which may
come into the possession of Agent.

          9.7. Indemnification.

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

          9.8. Agent Individually.

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

          9.9. Successor Agent.

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

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shall perform all of the duties of Agent hereunder until such time, if any, as Required
Lenders appoint a successor agent as provided for above.

          9.10. Collateral Matters; Guaranties.

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

          9.11. Second Lien Debt and Subordinated Debt.

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

          9.12. Limited Application to Loan Parties.

     Except with respect to Borrower’s consent rights under Section 9.9, the provisions of this
Section 9 are solely among the Agent, the Lenders, and the Issuing Lender, and the Borrower
shall not be considered bound thereby or a party thereto.

Section 10. Miscellaneous.

          10.1. Waiver; Amendments.

     No delay on the part of Agent or any Lender in the exercise of any right, power or remedy
shall operate as a waiver thereof, nor shall any single or partial exercise by any of them of any
right, power or remedy preclude other or further exercise thereof, or the exercise of any other
right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any
provision of this Agreement, the Notes or any of the other Loan Documents (or any subordination and
intercreditor agreement or other subordination provisions relating to any Subordinated Debt) shall
in any event be effective unless the same shall be in writing and approved by (i) the Borrower and
(ii) Lenders having aggregate Pro Rata

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Shares of not less than the aggregate Pro Rata Shares expressly designated herein with respect
thereto or, in the absence of such designation as to any provision of this Agreement, by Required
Lenders, and then any such amendment, modification, waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given. No amendment, modification,
waiver or consent shall increase any Commitment, extend the date scheduled for payment of any
principal of (except as set forth below) or interest on the Loans or any fees or other amounts
payable hereunder or under the other Loan Documents or reduce the principal amount of any Loan, the
amount or rate of interest thereon (provided, that Required Lenders may rescind an imposition of
default interest pursuant to Section 2.7.1) or any fees or other amounts payable hereunder or under
the other Loan Documents, without, in each case, the consent of each Lender affected thereby. No
amendment, modification, waiver or consent shall release any party from its guaranty under the
Guarantee and Collateral Agreement or all or any substantial part of the Collateral granted under
the Collateral Documents, the definition of Required Lenders, change any provision of this Section
10.1, amend the provisions of Section 2.12.2 or reduce the aggregate Pro Rata Share required to
effect any amendment, modification, waiver or consent, without, in each case, the consent of all
Lenders. No provision of Sections 2.10.2 or 2.10.3 with respect to the obligation to make, timing
or application of mandatory prepayments of the Loans shall be amended, modified or waived without
the consent of Lenders having a majority of the aggregate Pro Rata Shares of the Term Loans
affected thereby. No provision of Section 9 or other provision of this Agreement affecting Agent
in its capacity as such shall be amended, modified or waived without the consent of Agent. No
provision of this Agreement relating to the rights or duties of Issuing Lender in its capacity as
such shall be amended, modified or waived without the consent of Issuing Lender. Notwithstanding
the foregoing, this Agreement may be amended (or amended and restated) with the written consent of
the Required Lenders, Agent and the Borrower (a) to add one or more additional credit facilities to
this Agreement and to permit the extensions of credit from time to time outstanding thereunder and
the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement
and the other Loan Documents with the Term Loans and the Revolving Loans and the accrued interest
and fees in respect thereof and (b) to include appropriately the Lenders holding such credit
facilities in any determination of the Required Lenders.

          10.2. Notices.

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

          10.3. Computations.

     Unless otherwise specifically provided herein, any accounting term used in this Agreement
(including in Section 7.14 or any related definition) shall have the meaning customarily
given such term in accordance with GAAP, and all financial computations (including pursuant to
Section 7.14 and the related definitions, and with respect to the character or amount of
any asset or liability or item of income

-59-

 

or expense, or any consolidation or other accounting computation) hereunder shall be computed
in accordance with GAAP consistently applied; provided that if Borrower notifies Agent that
Borrower wishes to amend any covenant in Section 7.14 (or any related definition) to
eliminate or to take into account the effect of any change in GAAP on the operation of such
covenant (or if Agent notifies Borrower that Required Lenders wish to amend Section 7.14
(or any related definition) for such purpose), then Borrower’s compliance with such covenant shall
be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant (or related definition) is
amended in a manner satisfactory to Borrower and Required Lenders. The explicit qualification of
terms or computations by the phrase “in accordance with GAAP” shall in no way be construed to limit
the foregoing.

          10.4. Costs; Expenses.

     Borrower agrees to pay promptly after demand all reasonable out-of-pocket costs and expenses
of Agent solely in Agent’s capacity as Agent hereunder (including Legal Costs) in connection with
the preparation, execution, syndication, delivery and administration (including perfection and
protection of Collateral) of this Agreement, the other Loan Documents and all other documents
provided for herein or delivered or to be delivered hereunder or in connection herewith (including
any proposed or actual amendment, supplement or waiver to any Loan Document), and all reasonable
out-of-pocket costs and expenses (including Legal Costs) incurred by Agent and each Lender, solely
in their capacities as Agent or Lenders hereunder, after an Event of Default in connection with the
collection of the Obligations and enforcement of this Agreement, the other Loan Documents or any
such other documents. In addition, Borrower agrees to pay, and to save Agent and Lenders harmless
from all liability for, any fees of Borrower’s auditors in connection with any reasonable exercise
by Agent and Lenders of their rights pursuant to Section 6.2. All Obligations provided for
in this Section 10.4 shall survive repayment of the Loans, cancellation of the Notes,
expiration or termination of the Letters of Credit and termination of this Agreement).
Notwithstanding the foregoing, no Lender (solely in its capacity as a direct or indirect equity
holder of Holdings) shall have any rights under this Section.

          10.5. Indemnification by Borrower.

     In consideration of the execution and delivery of this Agreement by Agent and Lenders and the
agreement to extend the Commitments provided hereunder, Borrower hereby agrees to indemnify,
exonerate and hold Agent, each Lender and each of the officers, directors, employees, Affiliates
and agents of Agent and each Lender, solely in their capacities as Agent or Lender under this
Agreement (in such capacity, each a “Lender Party”) free and harmless from and against any
and all actions, causes of action, suits, losses, liabilities, damages and expenses, including
Legal Costs (collectively, the “Indemnified Liabilities”), incurred by Lender Parties or
any of them as a result of, or arising out of, or relating to (a) any tender offer, merger,
purchase of equity interests, purchase of assets (including the Related Transactions) or other
similar transaction financed or proposed to be financed in whole or in part, directly or
indirectly, with the proceeds of any of the Loans, (b) the use, handling, release, emission,
discharge, transportation, storage, treatment or disposal of any hazardous substance at any
property owned or leased by Borrower or any 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 any Lender Party, except to the extent
any such Indemnified Liabilities result from the applicable Lender Party’s own gross negligence,
bad faith 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

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each of the Indemnified Liabilities which is permissible under applicable law. All
Obligations provided for in this Section 10.5 shall survive repayment of the Loans,
cancellation of the Notes, expiration or termination of the Letters of Credit, any foreclosure
under, or any modification, release or discharge of, any or all of the Collateral Documents and
termination of this Agreement. Notwithstanding the foregoing, no Lender (solely in its capacity as
a direct or indirect equity holder of Holdings) shall have any rights under this Section.

          10.6. Marshaling; Payments Set Aside.

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

          10.7. Nonliability of Lenders.

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

          10.8. Assignments; Participations.

          10.8.1. Assignments.

          (a) Any Lender may at any time assign to one or more Persons (any such Person, an
“Assignee”) all or any portion of such Lender’s Loans and Commitments, with the prior
written consent of Agent and Issuing Lender (for an assignment of the Revolving Loans and the
Revolving Loan Commitment) and, so long as no Event of Default has occurred and is continuing, the
Borrower, such consent not to be unreasonably withheld or delayed by Borrower; provided,
that no such consent shall be required for an assignment (i) in the case of the Term Loans, by a
Lender to a Lender or an Affiliate or Related Fund of a Lender or (ii) in the case of Revolving
Loans and Revolving Loan Commitments, by a Lender to a Lender with a Revolving Loan Commitment.
Except as Agent may otherwise agree, any such assignment (other than any assignment by a Lender to
a Lender or an Affiliate or Related Fund of a Lender) shall be in a minimum aggregate amount equal
to $2,000,000 (or, $1,000,000, in the case of the Term Loan) or, if less, the Commitment or the
principal amount of the Loan being assigned or other amounts acceptable to Agent and Borrower, it
being agreed that concurrent assignments to entities that are Related Funds after giving effect
thereto will be treated as one assignment for purposes of such

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minimum assignment amounts. Borrower and Agent shall be entitled to continue to deal solely
and directly with such Lender in connection with the interests so assigned to an Assignee until
Agent shall have received and accepted an effective Assignment Agreement executed, delivered and
fully completed by the applicable parties thereto and a processing fee of $3,500 to be paid (and
not reimbursed by the Loan Parties) by the Lender to whom such interest is assigned; provided, that
no such fee shall be payable in connection with any assignment by a Lender to a Lender or an
Affiliate or Related Fund of a Lender and further provided that only one such fee shall be payable
in connection with concurrent assignments to two or more entities that are Related Funds after
giving effect 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 Sections (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 10.8.1 shall
be treated as the sale of a participation under Section 10.8.2.

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

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

          (d) Notwithstanding the foregoing provisions of this Section 10.8.1 or any other
provision of this Agreement, any Lender may at any time assign all or any portion of its Loans and
its Note as collateral security to a Federal Reserve Bank or, as applicable, to such Lender’s
trustee or other representative for the benefit of its investors (but no such assignment shall
release any Lender from any of its obligations hereunder).

          (e) For purposes of this Section 10.8.1, a “Related Fund” shall mean, with
respect to any Lender, a fund or other investment vehicle that invests in commercial loans and is
managed by the same investment advisor as such Lender or by an affiliate of such investment
advisor.

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          10.8.2. Participations.

          Any 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 a Lender of a participating interest to a Participant, (a) such Lender’s obligations
hereunder shall remain unchanged for all purposes, (b) Borrower and Agent shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations
hereunder and (c) all amounts payable by Borrower shall be determined as if such Lender had not
sold such participation and shall be paid directly to such Lender. No Participant shall have any
direct or indirect voting rights hereunder except with respect to any event described in
Section 10.1 expressly requiring the unanimous vote of all Lenders or, as applicable, all
affected Lenders. Each Lender agrees to incorporate the requirements of the preceding sentence
into each participation agreement which such Lender enters into with any Participant. Borrower
agrees that if amounts outstanding under this Agreement are due and payable (as a result of
acceleration or otherwise), each Participant shall be deemed to have the right of set-off in
respect of its participating interest in amounts owing under this Agreement and with respect to any
Letter of Credit to the same extent as if the amount of its participating interest were owing
directly to it as a Lender under this Agreement; provided that such right of set-off shall be
subject to the obligation of each Participant to share with Lenders, and Lenders agree to share
with each Participant, as provided in Section 2.12.5. Borrower also agrees that each
Participant shall be entitled to the benefits of Section 3 as if it were a Lender (provided
that no Participant shall receive any greater compensation pursuant to Section 3 than would
have been paid to the participating Lender if no participation had been sold).

          10.9. Confidentiality.

     Agent and each Lender agree to use commercially reasonable efforts (equivalent to the efforts
Agent or such Lender applies to maintain the confidentiality of its own confidential information)
to maintain as confidential all information provided to them by any Loan Party and designated as
confidential, except that Agent and each Lender may disclose such information (a) to Persons
employed or engaged by Agent or such Lender or any of their Affiliates in evaluating, approving,
structuring or administering the Loans and the Commitments; (b) to any pledgee under Section
10.8.1(d), any assignee or participant or potential assignee or participant that has agreed to
comply with the covenant contained in this Section 10.9 (and any such assignee or
participant or potential assignee or participant may disclose such information to Persons employed
or engaged by them as described in clause (a) above); (c) as required or requested by any federal
or state regulatory authority or examiner, or any insurance industry association, or as reasonably
believed by Agent or such Lender to be compelled by any court decree, subpoena or legal or
administrative order or process; (d) as, on the advice of Agent’s or such Lender’s counsel, is
required by law; (e) in connection with the exercise of any right or remedy under the Loan
Documents or in connection with any litigation to which Agent or such Lender is a party; (f) to any
nationally recognized rating agency that requires access to information about a Lender’s investment
portfolio in connection with ratings issued with respect to such Lender; (g) that ceases to be
confidential through no fault of Agent or any Lender; (h) to a Person that is an investor or
prospective investor in a Securitization (as defined below) that agrees that its access to
information regarding 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; (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 and who agrees to treat such information as confidential; or
(j) to a nationally recognized rating agency that requires access to information regarding the
Loans Parties, the Loans and the Loan Documents in connection with ratings issued with respect to a
Securitization. For purposes of this Section 10.9, “Securitization” means a
private offering by a Lender of securities which represent an interest in, or which are
collateralized, in whole or in part, by the Loans. In each case where the Agent or Lender, as
applicable, is compelled to disclose the

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confidential information, such Agent or Lender, as applicable, shall use commercially
reasonable efforts to notify the Borrower prior to such disclosure; provided, that the failure to
provide such notice shall not affect the right of such Agent or Lender, as applicable, to disclose
the confidential information pursuant to clauses (c) or (d) above. Notwithstanding the foregoing,
Borrower consents to the publication by Agent or any Lender of a tombstone or similar advertising
material relating to the financing transactions contemplated by this Agreement, and Agent reserves
the right to provide to industry trade organizations information necessary and customary for
inclusion in league table measurements.

          10.10. Captions.

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

          10.11. Nature of Remedies.

     All Obligations of Borrower and rights of Agent and Lenders expressed herein or in any other
Loan Document shall be in addition to and not in limitation of those provided by applicable law.
No failure to exercise and no delay in exercising, on the part of Agent or any Lender, any right,
remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.

          10.12. Counterparts.

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

          10.13. Severability.

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

          10.14. Entire Agreement.

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

          10.15. Successors; Assigns.

     This Agreement shall be binding upon Borrower, Lenders and Agent and their respective
successors and assigns, and shall inure to the benefit of Borrower, Lenders and Agent and the
successors and assigns of Lenders and Agent. No other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in connection with, this
Agreement or any of the other

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Loan Documents. Borrower may not assign or transfer any of its rights or Obligations under
this Agreement without the prior written consent of Agent and each Lender.

          10.16. Governing Law.

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

          10.17. Forum Selection; Consent to Jurisdiction.

     ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF
ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT
AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE
FOUND. BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE
STATE OF ILLINOIS AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR
THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. BORROWER FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR
WITHOUT THE STATE OF ILLINOIS. BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF
ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

          10.18. Waiver of Jury Trial.

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

[signature pages follow]

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

	 	 	 	 	 
	 	 	AMERICAN WHOLESALE INSURANCE GROUP, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ M. Steven DeCarlo
	 

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

	 	By:
	 	/s/ Trevor J. Clark
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Title: Managing Director

[Signature
Page to
Credit
Agreement]Exhibit 4.4

 

Exhibit 4.4

Execution Copy

 

 

SECOND LIEN CREDIT AGREEMENT

dated as of October 27, 2005

among

AMERICAN WHOLESALE INSURANCE GROUP, INC.,

as Borrower,

THE FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders,

and

MADISON CAPITAL FUNDING LLC,

as Second Lien Agent

 

 

MADISON CAPITAL FUNDING LLC,

as Lead Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	Section 1.	 	Definitions; Interpretation	 	 	1	 
	 
	 	 	 	1.1.	 	 	Definitions	 	 	1	 
	 	 	 	1.2.	 	 	Interpretation	 	 	12	 
	 	 	 	1.3.	 	 	Accounting Changes	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 2.	 	Credit Facilities	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	2.1.	 	 	Commitments	 	 	13	 
	 	 	 	2.2.	 	 	Loan Procedures	 	 	13	 
	 

	 	 	 	 	 	 	2.2.1.	 	 	Loan Types
	 	 	13	 
	 

	 	 	 	 	 	 	2.2.2.	 	 	Reserved
	 	 	13	 
	 

	 	 	 	 	 	 	2.2.3.	 	 	Conversion; Continuation
	 	 	13	 
	 	 	 	2.3.	 	 	Reserved	 	 	14	 
	 	 	 	2.4.	 	 	Commitments Several	 	 	14	 
	 	 	 	2.5.	 	 	Certain Conditions	 	 	14	 
	 	 	 	2.6.	 	 	Loan Accounting	 	 	14	 
	 

	 	 	 	 	 	 	2.6.1.	 	 	Recordkeeping
	 	 	14	 
	 

	 	 	 	 	 	 	2.6.2.	 	 	Notes
	 	 	14	 
	 	 	 	2.7.	 	 	Interest	 	 	14	 
	 

	 	 	 	 	 	 	2.7.1.	 	 	Interest Rates
	 	 	14	 
	 

	 	 	 	 	 	 	2.7.2.	 	 	Interest Payment Dates
	 	 	15	 
	 

	 	 	 	 	 	 	2.7.3.	 	 	Setting and Notice of LIBOR Rates
	 	 	15	 
	 

	 	 	 	 	 	 	2.7.4.	 	 	Computation of Interest
	 	 	15	 
	 	 	 	2.8.	 	 	Fees	 	 	15	 
	 	 	 	2.9.	 	 	Reserved	 	 	16	 
	 	 	 	2.10.	 	 	Prepayment	 	 	16	 
	 

	 	 	 	 	 	 	2.10.1.	 	 	Voluntary Prepayment
	 	 	16	 
	 

	 	 	 	 	 	 	2.10.2.	 	 	Mandatory Prepayment
	 	 	16	 
	 

	 	 	 	 	 	 	2.10.3.	 	 	All Prepayments
	 	 	17	 
	 	 	 	2.11.	 	 	Repayment	 	 	17	 
	 	 	 	2.12.	 	 	Payment	 	 	17	 
	 

	 	 	 	 	 	 	2.12.1.	 	 	Making and Settlement of Payments
	 	 	17	 
	 

	 	 	 	 	 	 	2.12.2.	 	 	Application of Payments and Proceeds
	 	 	17	 
	 

	 	 	 	 	 	 	2.12.3.	 	 	Payment Dates
	 	 	18	 
	 

	 	 	 	 	 	 	2.12.4.	 	 	Set-off
	 	 	18	 
	 

	 	 	 	 	 	 	2.12.5.	 	 	Proration of Payments
	 	 	19	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 3.	 	Yield Protection	 	 	19	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	3.1.	 	 	Taxes	 	 	19	 
	 	 	 	3.2.	 	 	Increased Cost	 	 	20	 
	 	 	 	3.3.	 	 	Inadequate or Unfair Basis	 	 	21	 
	 	 	 	3.4.	 	 	Change in Law	 	 	21	 
	 	 	 	3.5.	 	 	Funding Losses	 	 	22	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	 	 	 	3.6.	 	 	Manner of Funding; Alternate Funding Offices	 	 	22	 
	 	 	 	3.7.	 	 	Mitigation of Circumstances; Replacement of Lenders	 	 	22	 
	 	 	 	3.8.	 	 	Conclusiveness of Statements; Survival	 	 	23	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 4.	 	Conditions Precedent	 	 	23	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	4.1.1.	 	 	Capitalization; Adjusted EBITDA
	 	 	23	 
	 

	 	 	 	 	 	 	4.1.2.	 	 	Reserved
	 	 	23	 
	 

	 	 	 	 	 	 	4.1.3.	 	 	Prior Debt
	 	 	23	 
	 

	 	 	 	 	 	 	4.1.4.	 	 	Related Transactions
	 	 	23	 
	 

	 	 	 	 	 	 	4.1.5.	 	 	Fees
	 	 	23	 
	 

	 	 	 	 	 	 	4.1.6.	 	 	Delivery of Loan Documents
	 	 	24	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 5.	 	Representations and Warranties	 	 	25	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	5.1.	 	 	Organization	 	 	25	 
	 	 	 	5.2.	 	 	Authorization; No Conflict	 	 	26	 
	 	 	 	5.3.	 	 	Validity; Binding Nature	 	 	26	 
	 	 	 	5.4.	 	 	Financial Condition	 	 	26	 
	 	 	 	5.5.	 	 	No Material Adverse Change	 	 	27	 
	 	 	 	5.6.	 	 	Litigation	 	 	27	 
	 	 	 	5.7.	 	 	Ownership of Properties; Liens	 	 	27	 
	 	 	 	5.8.	 	 	Capitalization	 	 	27	 
	 	 	 	5.9.	 	 	Pension Plans	 	 	27	 
	 	 	 	5.10.	 	 	Investment Company Act	 	 	28	 
	 	 	 	5.11.	 	 	Public Utility Holding Company Act	 	 	28	 
	 	 	 	5.12.	 	 	Margin Stock	 	 	28	 
	 	 	 	5.13.	 	 	Taxes	 	 	28	 
	 	 	 	5.14.	 	 	Solvency	 	 	28	 
	 	 	 	5.15.	 	 	Environmental Matters	 	 	29	 
	 	 	 	5.16.	 	 	Insurance	 	 	29	 
	 	 	 	5.17.	 	 	Information	 	 	29	 
	 	 	 	5.18.	 	 	Intellectual Property	 	 	29	 
	 	 	 	5.19.	 	 	Restrictive Provisions	 	 	30	 
	 	 	 	5.20.	 	 	Labor Matters	 	 	30	 
	 	 	 	5.21.	 	 	No Default	 	 	30	 
	 	 	 	5.22.	 	 	Related Agreements	 	 	30	 
	 	 	 	5.23.	 	 	Retail Brokers and Insurance Companies	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 6.	 	Affirmative Covenants	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	6.1.	 	 	Information	 	 	31	 
	 

	 	 	 	 	 	 	6.1.1.	 	 	Annual Report
	 	 	31	 
	 

	 	 	 	 	 	 	6.1.2.	 	 	Interim Reports
	 	 	31	 
	 

	 	 	 	 	 	 	6.1.3.	 	 	Compliance Certificate
	 	 	32	 
	 

	 	 	 	 	 	 	6.1.4.	 	 	Reports to SEC and Shareholders
	 	 	32	 
	 

	 	 	 	 	 	 	6.1.5.	 	 	Notice of Default; Litigation; ERISA Matters
	 	 	32	 

-ii-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
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	 	 	 	 	 	 	6.1.6.	 	 	Management Report
	 	 	33	 
	 

	 	 	 	 	 	 	6.1.7.	 	 	Projections
	 	 	33	 
	 

	 	 	 	 	 	 	6.1.8.	 	 	Second Lien Debt and Subordinated Debt Notices
	 	 	33	 
	 

	 	 	 	 	 	 	6.1.9.	 	 	Subsidiary Formation
	 	 	33	 
	 

	 	 	 	 	 	 	6.1.10.	 	 	Other Information
	 	 	33	 
	 	 	 	6.2.	 	 	Books; Records; Inspections.	 	 	33	 
	 	 	 	6.3.	 	 	Maintenance of Property; Insurance	 	 	34	 
	 	 	 	6.4.	 	 	Compliance with Laws; Payment of Taxes and Liabilities	 	 	35	 
	 	 	 	6.5.	 	 	Maintenance of Existence	 	 	35	 
	 	 	 	6.6.	 	 	Employee Benefit Plans	 	 	35	 
	 	 	 	6.7.	 	 	Environmental Matters	 	 	35	 
	 	 	 	6.8.	 	 	Further Assurances	 	 	36	 
	 	 	 	6.9.	 	 	Interest Rate Protection	 	 	36	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 7.	 	Negative Covenants	 	 	36	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	7.1.	 	 	Debt	 	 	36	 
	 	 	 	7.2.	 	 	Liens	 	 	37	 
	 	 	 	7.3.	 	 	Reserved	 	 	39	 
	 	 	 	7.4.	 	 	Restricted Payments	 	 	39	 
	 	 	 	7.5.	 	 	Mergers; Consolidations; Asset Sales	 	 	40	 
	 	 	 	7.6.	 	 	Modification of Organizational Documents	 	 	40	 
	 	 	 	7.7.	 	 	Use of Proceeds	 	 	40	 
	 	 	 	7.8.	 	 	Transactions with Affiliates	 	 	41	 
	 	 	 	7.9.	 	 	Inconsistent Agreements	 	 	41	 
	 	 	 	7.10.	 	 	Business Activities	 	 	41	 
	 	 	 	7.11.	 	 	Investments	 	 	42	 
	 	 	 	7.12.	 	 	Restriction of Amendments to Certain Documents	 	 	43	 
	 	 	 	7.13.	 	 	Fiscal Year; Accounting Method	 	 	44	 
	 	 	 	7.14.	 	 	Financial Covenants	 	 	44	 
	 

	 	 	 	 	 	 	7.14.1.	 	 	Fixed Charge Coverage Ratio
	 	 	44	 
	 

	 	 	 	 	 	 	7.14.2.	 	 	Interest Coverage Ratio
	 	 	44	 
	 

	 	 	 	 	 	 	7.14.3.	 	 	Total Debt to EBITDA Ratio
	 	 	44	 
	 

	 	 	 	 	 	 	7.14.4.	 	 	Capital Expenditures
	 	 	45	 
	 	 	 	7.15.	 	 	Bank Accounts	 	 	45	 
	 	 	 	7.16.	 	 	Sale and Leaseback	 	 	46	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 8.	 	Events of Default; Remedies	 	 	46	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	8.1.	 	 	Events of Default	 	 	46	 
	 

	 	 	 	 	 	 	8.1.1.	 	 	Non-Payment of Credit
	 	 	46	 
	 

	 	 	 	 	 	 	8.1.2.	 	 	Default Under Other Debt
	 	 	46	 
	 

	 	 	 	 	 	 	8.1.3.	 	 	Bankruptcy; Insolvency
	 	 	46	 
	 

	 	 	 	 	 	 	8.1.4.	 	 	Non-Compliance with Loan Documents
	 	 	46	 
	 

	 	 	 	 	 	 	8.1.5.	 	 	Representations; Warranties
	 	 	47	 
	 

	 	 	 	 	 	 	8.1.6.	 	 	Pension Plans
	 	 	47	 
	 

	 	 	 	 	 	 	8.1.7.	 	 	Judgments
	 	 	47	 

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	 	 	 	 	 	 	8.1.8.	 	 	Invalidity of Collateral Documents
	 	 	47	 
	 

	 	 	 	 	 	 	8.1.9.	 	 	Invalidity of Subordination Provisions
	 	 	47	 
	 

	 	 	 	 	 	 	8.1.10.	 	 	Change of Control
	 	 	47	 
	 

	 	 	 	 	 	 	8.1.11.	 	 	Activities of Holdings
	 	 	48	 
	 	 	 	8.2.	 	 	Remedies.	 	 	48	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 9.	 	Second Lien Agent	 	 	48	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	9.1.	 	 	Appointment; Authorization	 	 	48	 
	 	 	 	9.2.	 	 	Delegation of Duties	 	 	49	 
	 	 	 	9.3.	 	 	Limited Liability	 	 	49	 
	 	 	 	9.4.	 	 	Reliance	 	 	49	 
	 	 	 	9.5.	 	 	Notice of Default	 	 	50	 
	 	 	 	9.6.	 	 	Credit Decision	 	 	50	 
	 	 	 	9.7.	 	 	Indemnification	 	 	50	 
	 	 	 	9.8.	 	 	Second Lien Agent Individually	 	 	51	 
	 	 	 	9.9.	 	 	Successor Second Lien Agent	 	 	51	 
	 	 	 	9.10.	 	 	Collateral Matters; Guaranties	 	 	51	 
	 	 	 	9.11.	 	 	First Lien Debt and Subordinated Debt	 	 	52	 
	 	 	 	9.12.	 	 	Limited Application to Loan Parties	 	 	52	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Section 10.	 	Miscellaneous	 	 	52	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	10.1.	 	 	Waiver; Amendments	 	 	52	 
	 	 	 	10.2.	 	 	Notices	 	 	53	 
	 	 	 	10.3.	 	 	Computations	 	 	53	 
	 	 	 	10.4.	 	 	Costs; Expenses	 	 	53	 
	 	 	 	10.5.	 	 	Indemnification by Borrower	 	 	54	 
	 	 	 	10.6.	 	 	Marshaling; Payments Set Aside	 	 	54	 
	 	 	 	10.7.	 	 	Nonliability of Lenders	 	 	55	 
	 	 	 	10.8.	 	 	Assignments; Participations	 	 	55	 
	 

	 	 	 	 	 	 	10.8.1.	 	 	Assignments
	 	 	55	 
	 

	 	 	 	 	 	 	10.8.2.	 	 	Participations
	 	 	57	 
	 	 	 	10.9.	 	 	Confidentiality	 	 	57	 
	 	 	 	10.10.	 	 	Captions	 	 	58	 
	 	 	 	10.11.	 	 	Nature of Remedies	 	 	58	 
	 	 	 	10.12.	 	 	Counterparts	 	 	58	 
	 	 	 	10.13.	 	 	Severability	 	 	58	 
	 	 	 	10.14.	 	 	Entire Agreement	 	 	58	 
	 	 	 	10.15.	 	 	Successors; Assigns	 	 	58	 
	 	 	 	10.16.	 	 	Governing Law	 	 	59	 
	 	 	 	10.17.	 	 	Forum Selection; Consent to Jurisdiction	 	 	59	 
	 	 	 	10.18.	 	 	Waiver of Jury Trial	 	 	59	 
	 	 	 	10.19.	 	 	Intercreditor Agreement	 	 	59	 

-iv-

 

 

	 	 	 
	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 Note
	 
	 	 
	Schedules
	 	 
	 
	 	 
	Schedule 1.1

	 	EBITDA and Other Amounts
	Schedule 4.1.3

	 	Prior Debt
	Schedule 5.2

	 	No Conflict
	Schedule 5.6

	 	Litigation
	Schedule 5.8

	 	Capitalization
	Schedule 5.14

	 	Solvency
	Schedule 5.16

	 	Insurance
	Schedule 5.18

	 	Intellectual Property
	Schedule 5.20

	 	Labor Matters
	Schedule 7.1

	 	Existing Debt
	Schedule 7.2

	 	Existing Liens
	Schedule 7.11

	 	Existing Investments
	Schedule 7.15

	 	Bank Accounts

-v-

 

 

NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE EXERCISE OF CERTAIN RIGHTS AND REMEDIES
PURSUANT TO THIS AGREEMENT ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT, DATED AS
OF OCTOBER 27, 2005, AS THE SAME MAY BE AMENDED, RESTATED, SUPPLEMENTED, MODIFIED OR REPLACED FROM
TIME TO TIME (THE “INTERCREDITOR AGREEMENT”) AMONG MADISON CAPITAL FUNDING LLC, AS FIRST LIEN
AGENT, MADISON CAPITAL FUNDING LLC, AS SECOND LIEN AGENT, MADISON CAPITAL FUNDING LLC, AS CONTROL
AGENT, AMERICAN WHOLESALE INSURANCE GROUP, INC., AS BORROWER, AMERICAN WHOLESALE INSURANCE HOLDING
COMPANY, LLC, AND THE DIRECT AND INDIRECT SUBSIDIARIES OF BORROWER PARTY THERETO. IN THE EVENT OF
ANY CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE TERMS OF THE
INTERCREDITOR AGREEMENT SHALL GOVERN.

SECOND LIEN CREDIT AGREEMENT

     Second Lien Credit Agreement dated as of October 27, 2005 (as amended, restated or otherwise
modified from time to time, this “Agreement”) among American Wholesale Insurance Group,
Inc., a Delaware corporation (“Borrower”), the financial institutions party hereto from
time to time (together with their respective successors and assigns, “Lenders”) and Madison
Capital Funding LLC (in its individual capacity, “Madison”), as Second Lien Agent for all
Lenders.

RECITALS

     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 Event of Default in respect of which
all or any portion of the Loans or other Obligations have been declared, or have otherwise become,
due and payable, in each case in accordance with the provisions of Section 8.2.

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

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

     Acquisition means any transaction or series of related transactions for the purpose of
or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the
assets of a Person, or of all or substantially all 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).

     Adjusted EBITDA means, as of any date of determination, the sum of (a) EBITDA of
Holdings and its Subsidiaries for the twelve month period ending on the last day of the month
ending on or immediately prior to such date of determination, plus (b) without duplication EBITDA
for each Subsidiary, business or division acquired in an Acquisition permitted hereunder during the
relevant measurement period for such measurement period, minus (c) EBITDA of each Subsidiary,
business or

 

 

division disposed of by the Borrower or any Subsidiary during the relevant measurement period
for the portion of such measurement period prior to such disposition; provided, that, in
each case, such EBITDA is supported by financial statements, tax returns or other financial data
reasonably acceptable to Second Lien Agent; provided, further, that for the
purposes of clause (b) hereof, EBITDA of each acquired Subsidiary, business or division
shall be adjusted by adjustments that are consistent with Regulation S-X or otherwise approved by
Second Lien Agent in its reasonable discretion.

     Adjusted Working Capital means the remainder of (a) the consolidated current assets of
Holdings and its Subsidiaries minus the amount of cash and cash equivalents (other than premium
cash held in trust accounts in respect of insurance premiums paid by customers) included in such
consolidated current assets, minus (b) the consolidated current liabilities of Holdings and its
Subsidiaries minus the amount of consolidated short-term Debt (including current maturities of
long-term Debt) of Holdings and its Subsidiaries included in such consolidated current liabilities.

     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 any Lender, any entity administered or managed by
such Lender or an Affiliate or investment advisor thereof which is engaged in making, purchasing,
holding or otherwise investing in commercial loans. A Person shall be deemed to be “controlled by”
any other Person if such Person possesses, directly or indirectly, power to vote 10% or more of the
securities (on a fully diluted basis) having ordinary voting power for the election of directors or
managers or power to direct or cause the direction of the management and policies of such Person
whether by contract or otherwise. Unless expressly stated otherwise herein, neither Second Lien
Agent nor any Lender shall be deemed an Affiliate of Borrower or of any Subsidiary.

     Agreement has the meaning set forth in the Preamble.

     Applicable Margin means (a) if a Base Rate Loan, six and one half percent (6.50%) per
annum and (b) if a LIBOR Loan, seven and one half percent (7.50%) per annum

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

     Authorized Officer means any of the (a) chief executive officer, (b) president, (c)
chief financial officer or (d) senior financial officer. 

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

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

     Borrower has the meaning set forth in the Preamble.

     Borrower Stock Option Plan means the American Wholesale Insurance Group, Inc. 2002
Stock Option Plan, as amended.

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

-2-

 

     Capital Expenditures means all expenditures which, in accordance with GAAP, would be
required to be capitalized and shown on the consolidated balance sheet of Holdings, but excluding
(a) expenditures made in connection with Acquisitions permitted hereunder and (b) expenditures made
in connection with the purchase, replacement, substitution or restoration of assets to the extent
financed (i) from insurance proceeds (or other similar recoveries) paid on account of the loss of
or damage to the assets being replaced or restored, (ii) with awards of compensation arising from
the taking by eminent domain or condemnation of the assets being replaced, (iii) with proceeds from
the sale of equity securities of the direct or indirect parent company of any Loan Party and the
corresponding equity investment in such Loan Party to fund the acquisition of assets thereby or
(iv) resulting from the exchange or trade of assets (to the extent of the value of the traded or
exchanged asset).

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

     Cash Equivalent Investment means, at any time, (a) any evidence of Debt, maturing not
more than one year after such time, issued or guaranteed by the United States Government or any
agency thereof, (b) commercial paper, or corporate demand notes, in each case (unless issued by a
Lender or its holding company) rated at least A-l by Standard & Poor’s Ratings Group or P-l by
Moody’s Investors Service, Inc., (c) any certificate of deposit (or time deposit represented by a
certificate of deposit) or banker’s acceptance maturing not more than one year after such time, or
any overnight Federal Funds transaction that is issued or sold by any Lender (or by a commercial
banking institution that is a member of the Federal Reserve System and has a combined capital and
surplus and undivided profits of not less than $250,000,000), (d) mutual funds and money market
funds whose assets are at least 95% invested in the foregoing types of investments and (e) any
repurchase agreement entered into with any Lender (or commercial banking institution of the nature
referred to in clause (c) above) which (i) is secured by a fully perfected security interest in any
obligation of the type described in any of clauses (a) through (c) above and (ii) has a market
value at the time such repurchase agreement is entered into of not less than 100% of the repurchase
obligation of such Lender (or other commercial banking institution) thereunder.

     Closing Date means the date on which all conditions precedent set forth in Section
4.1 have been satisfied or waived in writing by Second Lien Agent and Lenders.

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

     Collateral Access Agreement means an agreement in form and substance reasonably
satisfactory to Second Lien Agent 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 Second
Lien Agent and waives any Liens held by such Person on such property, and, in the case of any such
agreement with a mortgagee or lessor, permits Second Lien Agent 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 Second Lien 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 securing the Obligations to Second Lien Agent for the benefit
of Lenders, each as amended, restated or otherwise modified from time to time.

     Commitment means, as to any Lender, such Lender’s Pro Rata Term Share of the Second
Lien Term Loan Commitment.

-3-

 

     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.

     Consolidated Net Income means, with respect to Holdings and its Subsidiaries for any
period, the consolidated net income (or loss) of Holdings and its Subsidiaries for such period.

     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.

     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 (including, without
limitation, Earn-outs and Seller Debt, but excluding accrued expenses as determined in accordance
with GAAP and trade accounts payable, in each case incurred 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, (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 (including, without duplication, the Letters of
Credit), (f) all Contingent Obligations of such Person, (g) all Hedging Obligations of such Person,
(h) all indebtedness of any partnership of which such Person is a general partner, (i) 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 obligations of such Person under conditional
sale or other title retention agreements relating to property or assets purchased by such Person.

     Default means any event that, if it continues uncured, will, with the lapse of any
grace period 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 condemnation, confiscation, requisition, seizure or taking
thereof, in each case excluding (i) assets subject to a Disposition which are replaced within 180
days, (ii) Dispositions, the Net Cash Proceeds of which do not in the aggregate exceed $300,000 in
any Fiscal Year or $1,000,000 since the Closing Date, (iii) the sale or other transfer of Inventory
or the lease or license of real or personal property or of intellectual property (as lessor or
licensor), in each case in the ordinary course of business, (iv) the discount, settlement or write
off of accounts receivable or overdue accounts receivable for collection in the ordinary course of
business, (v) the sale or other disposition of Cash Equivalents and other Investments permitted
under Section 7.11 (other than Investments in Subsidiaries), (vi) the

-4-

 

termination, surrender or sublease of a real estate lease of a Loan Party in the ordinary
course of business, or (vii) the cancellation of any intercompany indebtedness.

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

     Earn-outs means, with respect to any Person, obligations of such Person arising from
an Acquisition which are payable to the seller based on the achievement of specified financial
results over time.

     EBITDA means, for any period, Consolidated Net Income for such period plus any losses
or minus any gains from Dispositions, extraordinary items (as defined in accordance with GAAP),
discontinued operations, reappraisal, revaluation or write-up or write down of assets or from the
cumulative effect of changes in accounting principles, and plus (a) to the extent deducted in
determining such Consolidated Net Income, cash and non-cash interest expense, income tax expense,
depreciation, amortization and charges for impairment of goodwill and other intangibles for such
period, (b) prepayment and other fees and expenses with regard to the consummation of this
Agreement and the repayment of the Prior Debt, inclusive of fees and expenses permitted by clause
(iv) of Section 7.4, in each case to the extent deducted in determining such Consolidated
Net Income, (c) non-cash expenses in the form of options, profits interests and similar interests
being exercised on the Closing Date or being granted thereafter and other non-cash expense with
respect to deferred compensation and stock options, (d) noncash charges in respect of write-offs of
deferred financing costs and debt issuance costs, to the extent deducted in determining
Consolidated Net Income for such period, (e) the aggregate amount of the Management Fee and the
Advisory Fee paid during such period, (f) the aggregate amount of costs, fees and expenses paid in
such period in connection with an Acquisition permitted hereunder which have not been paid to any
Affiliate of Holdings, but only to the extent the aggregate amount of such costs, fees and expenses
does not exceed (i) with respect to any single Acquisition, the greater of (A) 5% of the total
enterprise value of the target of such Acquisition and (B) $500,000 and (ii) $2,000,000 in the
aggregate with respect to all Acquisitions consummated in any Fiscal Year. Notwithstanding the
foregoing, for the fiscal quarters ending March 31, 2005, June 30, 2005 and September 30, 2005,
EBITDA shall be deemed to be as set forth on Schedule 1.1.

     Environmental Claims means all written claims 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 binding and
enforceable 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 occupational 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 Flow means, for any period, the remainder of (a) the sum of (i) EBITDA for
such period, plus (ii) any net decrease in Adjusted Working Capital during such period, minus (b)
the sum, without duplication, of (i) scheduled repayments of principal of First Lien Term Loans
(but excluding other mandatory prepayments thereof) and other Funded Debt of Holdings and its
Subsidiaries (in respect of Debt permitted in accordance with Section 7.1) made during such
period, plus (ii) cash payments (not

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financed with the proceeds of Debt other than First Lien Revolving Loans) made in such period
with respect to Capital Expenditures permitted under Section 7.14.4, plus (iii) all
federal, state, local and foreign income taxes paid in cash by Borrower and the Subsidiaries and
all tax distributions by Holdings to its equity holders permitted under Section 7.4 during
such period, plus (iv) all Interest Expense in respect of Debt permitted in accordance with
Section 7.1 paid in cash by Holdings and its Subsidiaries during such period, plus (v) all
payments in respect of Earn-outs and Seller Debt made in cash by Holdings and its Subsidiaries
during such period and permitted by Section 7.4, as applicable, plus (vi) any net increase
in Adjusted Working Capital during such period, plus (vii) to the extent added to Consolidated Net
Income in determining EBITDA for such Fiscal Year, costs, fees and expenses incurred in connection
with an Acquisition permitted hereunder and actually paid in cash by Holdings and its Subsidiaries
during such Fiscal Year to non-Affiliates, plus (viii) to the extent added to Consolidated Net
Income in determining EBITDA for such Fiscal Year, Management Fees and Advisory Fees actually paid
in cash by Holdings and its Subsidiaries during such Fiscal Year, plus (ix) to the extent not
subtracted in determining EBITDA for such Fiscal Year, cash actually paid by Holdings and its
Subsidiaries during such Fiscal Year in respect of any extraordinary cash losses of Holdings and
its Subsidiaries during such Fiscal Year, plus (x) to the extent not subtracted in determining Net
Income for such Fiscal Year, Restricted Payments made in cash during such Fiscal Year pursuant to
Section 7.4(vi) or Section 7.4(ix), which are not financed with the proceeds of
Debt (other than First Lien Revolving Loans) or equity. For purposes of determining any increase
or decrease in Adjusted Working Capital for any period in which an Acquisition permitted hereunder
has been consummated, Adjusted Working Capital shall be computed as if the target of such
Acquisition had been acquired by the Borrower as of the first day of such period.

     Excluded Issuance means the sale or issuance of equity securities by Holdings (or,
following a Holdings Transaction and subject to Section 8.1.10, Borrower) (i) to any Person who
holds equity in Holdings as of the Closing Date, (ii) to management or directors of Holdings or any
Subsidiary, or (iii) the proceeds of which are used to (A) make Capital Expenditures or (B) pay the
consideration of any Acquisition permitted under Section 7.11.

     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
Second Lien Agent, quoted for overnight Federal Funds transactions last arranged prior to such day.

     Fee Letter means, that certain letter agreement dated as October 27, 2005 by First
Lien Agent and Second Lien Agent and acknowledged by Borrower, as amended, restated or otherwise
modified from time to time.

     First Lien Agent means Madison, in its capacity as First Lien Agent, or any successor
thereto in such capacity.

     First Lien Credit Agreement has the meaning set forth in the First Lien Subordination
Agreement.

     First Lien Debt means obligations of Loan Parties under the First Lien Debt Documents
up to the Maximum Priority Amount (as defined in the First Lien Subordination Agreement).

     First Lien Debt Documents means the First Lien Credit Documents (as defined in the
First Lien Subordination Agreement).

     First Lien Revolving Loans means Revolving Loans under and as defined in the First
Lien Credit Agreement.

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     First Lien Subordination Agreement means the Intercreditor Agreement dated as of even
date herewith by and among Second Lien Agent, First Lien Agent, Holdings, Borrower and the
Subsidiaries.

     First Lien Term Loans means Term Loans under and as defined in the First Lien Credit
Agreement.

     Fiscal Quarter means a fiscal quarter of a Fiscal Year.

     Fiscal Year means the fiscal year of Holdings and its 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, without duplication, of all income taxes and tax
distributions described in Section 7.4 paid in cash by Holdings and its Subsidiaries and
all unfinanced (other than with the proceeds of First Lien Revolving Loans) Capital Expenditures
to (b) the sum for such period of (i) Interest Expense paid in cash by Holdings and its
Subsidiaries plus (ii) scheduled payments of principal of Debt (including the Term Loans, but
excluding the First Lien Revolving Loans then due and owing during the Computation Period) plus
(iii) other restricted payments made in cash pursuant to Section 7.4 (other than clause
(vi) thereof) plus (iv) Earn-out payments made in cash. Notwithstanding the foregoing, for the
fiscal quarters ending March 31, 2005, June 30, 2005 and September 30, 2005, income taxes, tax
distributions, Capital Expenditures and all amounts set forth in clause (b) shall be deemed
to be as set forth on Schedule 1.1.

     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), but excluding Hedging Obligations and
Earn-outs.

     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; provided, that Financial Account Standard
No. 150 shall be disregarded for purposes of this Agreement.

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

     Hedging Obligation means, with respect to any Person, any liability of such Person
under any interest rate, currency or commodity swap agreement, cap agreement or collar agreement,
and any other agreement or arrangement designed to protect a Person against fluctuations in
interest rates, currency exchange rates or commodity prices.

     Holdings means American Wholesale Insurance Holding Company, LLC, a Delaware limited
liability company.

     Holdings Transaction means (a) the transfer to the Borrower of all assets of Holdings
(other than equity of the Borrower) and all (or less than all) of the liabilities of Holdings
permitted to be outstanding hereunder, together with the subsequent dissolution or complete or
partial liquidation of Holdings and

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distribution of the equity of the Borrower to the members of Holdings, (b) the merger of
Holdings with and into the Borrower with the Borrower being the surviving entity, or (c) any other
action reasonably acceptable to Second Lien Agent and reasonably related to the creation of a
Public Market in the equity of the Borrower.

     Interest Coverage Ratio means, for any Computation Period, the ratio of (a) EBITDA for
such Computation Period to (b) Interest Expense paid in cash by Holdings and its Subsidiaries for
such Computation Period. Notwithstanding the foregoing, for the fiscal quarters ending March 31,
2005, June 30, 2005 and September 30, 2005, Interest Expense shall be deemed to be as set forth on
Schedule 1.1.

     Interest Expense means for any period the consolidated cash interest expense of
Holdings and its Subsidiaries for such period (including that portion of payments on Capital Leases
determined in accordance with GAAP to be characterized as interest payments).

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

     Inventory has the meaning set forth in the Second Lien Guarantee and Collateral
Agreement.

     Investment means (a) the purchase of any debt or equity security of any Person, (b)
the making of any loan or advance to any Person (other than trade debt incurred in the ordinary
course of business), (c) becoming obligated with respect to a Contingent Obligation in respect of
obligations of any 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 Sponsor, any fund or investment vehicle
that (a) is organized by Sponsor for the purpose of making equity or debt investments in one or
more companies and (b) is controlled by, or under common control with, Sponsor. 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, accountants, auditors, appraisers, consultants and other professionals to such Person
and (b) all court costs and similar legal expenses.

     Lenders has the meaning set forth in the Preamble.

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

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

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

     Loan Documents means this Agreement, the Notes, the Collateral Documents, the Fee
Letter and all documents, instruments and agreements delivered in connection with the foregoing.

     Loan Party means Holdings, Borrower and each domestic Subsidiary (other than PAUSE
Insurance).

     Loans means the Second Lien Term Loans.

     Madison has the meaning set forth in the Preamble.

     Management Agreement means that certain Advisory Services Agreement dated as of
October 27, 2005, between Holdings and Manager.

     Manager means PCap, L.P., a Delaware limited partnership.

     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 on properties 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 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.

     Mortgage means a mortgage, deed of trust, leasehold mortgage or similar instrument
granting Second Lien Agent 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 Borrower or any Subsidiary pursuant to such Disposition net of (i) the
reasonable direct costs

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relating to such Disposition (including the cost of preparing such assets for sale,
costs incidental to the sale of such assets, sales commissions and legal, accounting and
investment banking fees), (ii) taxes paid or reasonably estimated by Borrower to be payable
as a result thereof (after taking into account any available tax credits or deductions
arising from such sale and any tax sharing arrangements in respect thereof), (iii) amounts
required to be applied to the repayment of any Debt secured by a Lien prior to the Lien of
Second Lien Agent on the asset subject to such Disposition and (iv) with respect to any
Disposition described in clause (b) or (c) of the definition thereof, all money actually
applied within 180 days to repair, replace or reconstruct damaged property or property
affected by loss, destruction, damage, condemnation, confiscation, requisition, seizure or
taking, 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
received by Holdings or any of its Subsidiaries pursuant to such issuance, net of the
reasonable direct costs relating to such issuance (including reasonable sales and
underwriter’s commission).

     Note means a promissory note executed by Borrower in favor of a Lender hereunder
pursuant to this Agreement, substantially in the form of Exhibit C, as the same may be
amended, restated or otherwise modified from time to time.

     Obligations means all 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 any Lender or its
Affiliate, in each case howsoever created, arising or evidenced, whether direct or indirect,
absolute or contingent, now or hereafter existing, or due or to become due.

     Paid in Full means, with respect to any Obligations, (a) the payment in full in cash
and performance of all such Obligations (other than contingent indemnification obligations to the
extent no claim giving rise there to has been asserted), and (b) the termination of all Commitments
relating to such Obligations.

     PAUSE Insurance means PAUSE Insurance Services, LLC, a California limited liability
company.

     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.

     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.

     Prior Debt means the Debt listed on Schedule 4.1.3.

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

     Purchase Agreement means the Unit Purchase Agreement dated as of September 12, 2005
(the “Purchase Agreement”), by and among AmWins Holdings, LLC, a Delaware limited liability
company, Holdings and each of the persons identified on Appendix A thereto and all
agreements related thereto.

     Public Market means (a) a public offering of the equity securities of Holdings (or,
following a Holdings Transaction, the Borrower) have been consummated and (b) any equity securities
of Holdings (or, following a Holdings Transaction, the Borrower) have been distributed by means of
an effective registration statement under the Securities Act of 1933, as amended.

     Related Agreements means the First Lien Debt Documents, the Purchase Agreement and the
Management Agreement.

     Related Transactions means the transactions contemplated by the Related Agreements.

     Required Lenders means Lenders having Pro Rata Term Shares the aggregate amount of
which exceeds 50% of the outstanding Second Lien Term Loans.

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

     Second Lien Guarantee and Collateral Agreement means the Second Lien Guarantee and
Collateral Agreement dated as of the Closing Date by each Loan Party signatory thereto in favor of
Second Lien Agent and Lenders, as amended, restated or otherwise modified from time to time.

     Second Lien Term Loan has the meaning set forth in Section 2.1.2. When used in
the plural, such term shall mean the several portions of such Loan held by the Lenders.

     Second Lien Term Loan Commitment means $48,000,000.

     Second Lien Term Loan Maturity Date means the earliest of (i) April 27, 2012, and (ii)
the date on which the Second Lien Term Loans are required to be repaid pursuant to Section
8.

     Seller Debt means unsecured debt owing to the seller in an Acquisition permitted
hereunder.

     Sponsor means collectively Parthenon Investors II, L.P., Parthenon Investors III, L.P.
and AmWINS Holdings, LLC, a Delaware limited partnership.

     Subordinated Debt means any unsecured Debt of Holdings or any of its Subsidiaries
which is subordinated to the Obligations and which has subordination terms, covenants, pricing and
other terms which have been approved in writing by the Required Lenders.

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

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     Total Debt means all Funded Debt of Holdings and its Subsidiaries, 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) Adjusted EBITDA for the Computation Period ending on such
day.

     Total Loan Commitment means $48,000,000, as reduced by any reduction in principal with
respect to the Second Lien Term Loan.

     Wholly-Owned Subsidiary means, as to any Person, another Person all of the equity
interests of which (except directors’ or employees’ qualifying shares or other minimal share
allocations required by the law of the jurisdiction of organization or allocated for tax
considerations) are at the time directly or indirectly owned by such Person and/or another
Wholly-Owned Subsidiary of such Person.

     1.2. Interpretation.

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

     1.3. Accounting Changes.

     It is understood that all financial statements delivered pursuant to Section 6.1 shall be
prepared in accordance with GAAP as in effect on the date of their respective preparation. In the
event that any “Accounting Change” (as defined below) shall occur and such change results in a
change in the method of calculation of financial covenants, standards or terms, Borrower and Second
Lien Agent shall enter into negotiations in order to amend such provisions of this Agreement so as
to equitably reflect such Accounting Changes with the desired result that the criteria for
evaluating the Borrower’s financial condition shall be the same after such Accounting Changes as if
such Accounting Changes had not been made. Until such time as such an amendment shall have been
executed and delivered by the Borrower, Second Lien Agent and the Required Lenders, all financial
covenants, standards and terms in this Agreement shall continue to be calculated or construed as if
such Accounting Changes had not occurred. “Accounting Changes” refers to changes in accounting
principles required by the promulgation of any rule, regulation, pronouncement or opinion by the
Financial Accounting Standards Board of the American Institute of Certified Public Accountants or,
if applicable, the Securities and Exchange Commission (or successors thereto or agencies with
similar functions).

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Section 2. Credit Facilities.

     2.1. Commitments.

     On and subject to the terms and conditions of this Agreement, each Lender, severally and for
itself alone, agrees to make a loan to Borrower (each such loan, a “Second Lien Term Loan”)
on the Closing Date in such Lender’s applicable Pro Rata Term Share of the Second Lien Term Loan
Commitment. The Commitments of Lenders to make Second Lien Term Loans shall terminate concurrently
with the making of the Second Lien Term Loans on the Closing Date. Second Lien Term Loans which
are repaid or prepaid by Borrower, in whole or in part, may not be reborrowed.

     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 conversion pursuant to Section 2.2.3; provided, that Borrower may not request
that a Loan be a LIBOR Loan if an Event of Default exists. Base Rate Loans and LIBOR Loans may be
outstanding at the same time, provided that not more than five different Interest Periods shall
exist among outstanding LIBOR Loans at any one time. Notwithstanding the foregoing or any other
provision of this Agreement, prior to the earlier of (a) 90 days after the Closing Date and (b) the
date that Second Lien Agent notifies Borrower that it has completed its primary syndication of the
Loans and the Commitments, Borrower may not select any Interest Period for a LIBOR Loan which is
longer than one month.

     2.2.2. Reserved.

     2.2.3. Conversion; Continuation.

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

          (b) Borrower shall give written or telephonic notice (followed promptly by written
confirmation thereof) to Second Lien Agent of each proposed conversion or continuation not later
than (i) in the case of conversion into Base Rate Loans, 1:00 p.m. Chicago time on the proposed
date of such conversion and (ii) in the case of conversion into or continuation of LIBOR Loans,
1:00 p.m. Chicago time at least three Business Days prior to the proposed date of such conversion
or continuation, specifying in each case: (i) the proposed date of conversion or continuation;
(ii) the aggregate amount of Loans to be converted or continued; (iii) the type of Loans resulting
from the proposed conversion or continuation; and (iv) in the case of conversion into, or
continuation of, LIBOR Loans, the duration of the requested Interest Period therefor.

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

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

     2.3. Reserved.

     2.4. Commitments Several.

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

     2.5. Certain Conditions.

     Notwithstanding any other provision of this Agreement, no Lender shall have an obligation to
make any Loan on the Closing Date, or to permit the continuation of or any conversion into any
LIBOR Loan, if an Event of Default or Default exists.

     2.6. Loan Accounting.

     2.6.1. Recordkeeping.

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

     2.6.2. Notes.

          At the request of any Lender, the Loans of such Lender shall be evidenced by a Note, payable
to the order of such Lender in a face principal amount equal to the sum of such Lender’s Pro Rata
Term Share of the Total Loan Commitment.

     2.7. Interest.

     2.7.1. Interest Rates.

          Borrower promises to pay interest on the unpaid principal amount of each Loan for the period
commencing on the date of such Loan until such Loan is paid in full as follows: (a) at all times
while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of the Base Rate from
time to time in effect plus the Applicable Margin for Base Rate Loans; and (b) at all times while
such Loan is a LIBOR Loan, at a rate per annum equal to the sum of the LIBOR Rate applicable to
each Interest Period for such Loan plus the Applicable Margin for LIBOR Loans; provided that (i) at
any time an Event of Default exists, if requested by Required Lenders, the Applicable Margin
corresponding to each Loan shall be increased by 2% (and, in the case of Obligations not subject to
an Applicable Margin, such Obligations shall bear interest at the Base Rate applicable to Loans
plus the Applicable Margin for Base Rate Loans plus 2%), (ii) upon the occurrence of an Event of
Default under Section 8.1.1 or 8.1.3, such increase shall occur automatically, and
(iii) any such increase may thereafter be rescinded by Required Lenders,

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notwithstanding Section 10.1. In no event shall charges constituting interest payable
by Borrower to Second Lien Agent and Lenders exceed the maximum amount or the rate permitted under
any applicable law or regulation, and if any such part or provision of this Agreement is in
contravention of any such law or regulation, such part or provision shall be deemed amended to
conform thereto.

     2.7.2. Interest Payment Dates.

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

     2.7.3. Setting and Notice of LIBOR Rates.

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

     2.7.4. Computation of Interest.

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

     2.8. Fees.

          (a) Second Lien Agent’s Fees. Borrower agrees to pay to Second Lien Agent, on the
Closing Date and on certain other dates pursuant to the Fee Letter and as otherwise agreed to from
time to time by Borrower and Second Lien Agent, fees in the amounts agreed to between Borrower and
Second Lien Agent.

          (b) Prepayment Fee. On the date of any prepayment of the Loan pursuant to
Sections 2.10.1 and 2.10.2, Borrower agrees to pay to Second Lien Agent for the account of
each Lender according to such Lender’s Pro Rata Term Share of the outstanding Loan a prepayment fee
in an amount equal to (i) 2.0% of the principal amount so prepaid if such prepayment is made on or
before the first anniversary of the Closing Date, (ii) 1.0% of the principal amount so prepaid if
such prepayment is made after the first anniversary of the Closing Date, but on or prior to the
second anniversary of the Closing Date and (iii) $0 if such prepayment is made after the second
anniversary of the Closing Date.

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     2.9.
Reserved

     2.10.
Prepayment.

     2.10.1.
Voluntary Prepayment.

          After all “Loans” and other “Obligations” under the First Lien Credit Agreement have been
“Paid in Full”, Borrower may from time to time, on at least one Business Day’s written notice or
telephonic notice (followed promptly by written confirmation thereof) to Second Lien Agent (which
shall promptly advise each Lender thereof) not later than 1:00 p.m. Chicago time on such day,
prepay the Loans in whole or in part. Such notice to Second Lien Agent 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 $100,000 or a higher integral multiple of $50,000. All prepayments of Loans
pursuant to this Section 2.10.1 shall be applied pursuant to Section 2.10.3.

     2.10.2. Mandatory Prepayment.

          (a) After all “Loans” and other “Obligations” under the First Lien Credit Agreement have been
“Paid in Full”, Borrower shall prepay the Loans at the following times and in the following
amounts:

     (i) within 3 Business Days after the receipt by Holdings or any of its Subsidiaries of
any Net Cash Proceeds from any Disposition, in an amount equal to such Net Cash Proceeds;

     (ii) concurrently with the receipt by Holdings or any of its Subsidiaries of any Net
Cash Proceeds from any issuance of its equity securities (excluding equity securities that
are issued pursuant to Section 7.10(a) and (b) or in an Excluded Issuance)
in an amount equal to 50% of such Net Cash Proceeds; provided, however, that if the Total
Debt to EBITDA Ratio on the last day of the most recently completed Fiscal Quarter (after
giving pro forma effect to any mandatory prepayment to be made as a result
of such equity issuance (but using a 25% prepayment percentage)) is less than or equal to
2.75:1.00, then the amount of such prepayment shall be reduced to an amount equal to 25% of
such Net Cash Proceeds; and

     (iii) within 10 Business Days after the date on which the audited financial statements
are required to be delivered under Section 6.1.1 following the end of each Fiscal
Year (commencing with Fiscal Year 2006), in an amount equal to (A) 75% of Excess Cash Flow
for such Fiscal Year (or, if as of the end of such Fiscal Year, the Total Debt to EBITDA
Ratio is less than 3.75 to 1.00, 50% of Excess Cash Flow) minus (B) voluntary prepayments of
the Second Lien Term Loans pursuant to Section 2.10.1 and voluntary prepayments of
the First Lien Term Loans, in each case during such period minus (C) the lesser of (1) cash
consideration paid during such period with respect to Acquisitions permitted hereunder and
(2) 25% of Excess Cash Flow for such Fiscal Year.

          (b) Notwithstanding the prohibition to payments in paragraph (a) above prior to the
“Payment in Full” of all “Loans” and other “Obligations” under the First Lien Credit Agreement, if
First Lien Agent and the lenders under the First Lien Credit Agreement waive all or any portion of
a mandatory prepayment under Section 2.10.2 of the First Lien Credit Agreement, Borrower shall pay
such amount in accordance with the corresponding clause of paragraph (a) above.

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     2.10.3. 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 3.5. All prepayments of a Loan shall be applied first to that portion of such Loan
comprised of Base Rate Loans and then to that portion of such Loan comprised of LIBOR Loans, in
direct order of Interest Period maturities.

          (b) Borrower shall give written notice or telephonic notice (followed promptly by written
confirmation thereof) to Second Lien Agent not later than 1:00 p.m. Chicago time at least one
Business Day prior to each mandatory prepayment pursuant to clause (a) of Section 2.10.2,
and Second Lien Agent shall promptly notify each Lender of such notice.

     2.11. Repayment.

          The Loans shall be paid, for the account of each Lender according to its Pro Rata Term Share
thereof, in full on the Second Lien Term Loan Maturity Date.

     2.12. Payment.

     2.12.1. Making and Settlement of Payments.

          All payments of principal of or interest on the Notes, and of all fees, shall be made by
Borrower to Second Lien Agent without setoff, recoupment or counterclaim and in immediately
available funds at the office specified by Second Lien Agent not later than 2:00 p.m. Chicago time
on the date due, and funds received after that hour shall be deemed to have been received by Second
Lien Agent on the following Business Day. Second Lien Agent shall promptly remit to each Lender
its share of all principal payments received in collected funds by Second Lien Agent for the
account of such Lender. On the first Business Day of each month (each, an “Interest Settlement
Date”), Second Lien Agent will notify each Lender in writing of the amount of such Lender’s
applicable Pro Rata Term Share of interest and fees on the Loans, in each case as of the end of the
last day of the immediately preceding month. Provided that such Lender has made all payments
required to be made by it under this Agreement, Second Lien Agent will pay to such Lender, by wire
transfer to such Lender’s account not later than 3:00 p.m. Chicago time on the next Business Day
following the Interest Settlement Date, such Lender’s Pro Rata Term Share of interest and fees, in
each instance, received by Second Lien Agent for the immediately preceding month. All payments
under Section 3.2 shall be made by Borrower directly to each Lender entitled thereto.

     2.12.2. Application of Payments and Proceeds.

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

          (b) 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,
Second Lien Agent shall apply all or any part of payments in respect of the Obligations and
proceeds of Collateral, in each case as received by Second Lien Agent, to the payment of the
Obligations in such order as directed by Borrower; provided, that notwithstanding such
direction, Required Lenders may

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direct Second Lien Agent to apply such payments and/or proceeds in accordance with paragraph
(c) below.

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

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

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

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

     (iv) FOURTH, to the payment of all principal of the Loans, then due and owing pro rata
based on each applicable Lender’s Pro Rata Term Share thereof, until Paid in Full;

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

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

     2.12.3. Payment Dates.

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

     2.12.4. Set-off.

          Borrower agrees that Second Lien Agent and each Lender 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, Second Lien Agent and each Lender may apply to the
payment of any Obligations of Borrower hereunder then due and owing, any and all balances, credits,
deposits, accounts or moneys of Borrower then or thereafter with Second Lien Agent or such Lender.
Notwithstanding the foregoing, no Lender shall exercise any rights described in the preceding
sentence without the prior written consent of Second Lien Agent.

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     2.12.5. Proration of Payments.

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

Section 3.
Yield Protection.

     3.1.
Taxes.

          (a) All payments of principal and interest on the Loans and all other amounts payable
hereunder shall be made free and clear of and without deduction for any present or future income,
excise, stamp, documentary, property or franchise taxes and other taxes, fees, duties, levies,
withholdings or other charges of any nature whatsoever imposed by any taxing authority, excluding
taxes imposed on or measured by any Lender’s net income by the United States, the jurisdiction
under which such Second Lien Agent or Lender is organized or conducts business or the jurisdiction
in which its principal office or applicable lending office is located (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: (a) pay directly to the relevant authority the full amount required to be so
withheld or deducted; (b) promptly forward to Second Lien Agent an official receipt or other
documentation reasonably satisfactory to Second Lien Agent evidencing such payment to such
authority; and (c) pay to Second Lien Agent for the account of Lenders such additional amount or
amounts as is necessary to ensure that the net amount actually received by each Lender will equal
the full amount such Lender would have received had no such withholding or deduction been required.
If any Taxes are directly asserted against Second Lien Agent or any Lender with respect to any
payment received by Second Lien Agent or such Lender hereunder, Second Lien Agent or such Lender
may pay such Taxes and Borrower will promptly pay such additional amounts (including any penalty,
interest or expense) as is necessary in order that the net amount received by such Person after the
payment of such Taxes (including any Taxes on such additional amount) shall equal the amount such
Person would have received had such Taxes not been asserted so long as such amounts have accrued on
or after the day which is 180 days prior to the date on which Second Lien Agent or such Lender
first made demand therefor; provided, that if the event giving rise to such costs or reductions has
retroactive effect, such 180 day period shall be extended to include the period of retroactive
effect; provided, that if the Borrower reasonably believes that such Taxes were not correctly or
legally asserted, Second Lien Agent or such Lender, as the case may be, will use reasonable efforts
to cooperate with the Borrower to obtain a refund of such Taxes as long as such efforts would not
result in any unreimbursed costs or expenses.

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

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

          (d) If the Second Lien Agent or a Lender determines, in good faith in its sole discretion,
that it has received a refund of any Taxes as to which it has been indemnified by Borrower or with
respect to which Borrower has paid additional amounts pursuant to this Section 3.1, it
shall pay over such refund to Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by Borrower under this Section 3.1 with respect to the Taxes
giving rise to such refund), net of all out-of-pocket expenses of Second Lien Agent or such Lender
(including any Taxes imposed with respect to such refund) as is determined by Second Lien Agent or
such Lender in good faith in its sole discretion, and without interest (other than any interest
paid by the relevant governmental authority with respect to such refund); provided, that Borrower,
upon the request of Second Lien Agent or such Lender, agrees to repay as soon as reasonably
practicable the amount paid over to Borrower (plus any penalties, interest or other charges imposed
by the relevant governmental authority) to Second Lien Agent or such Lender in the event Second
Lien Agent or such Lender is required to repay such refund to such governmental authority. This
Section shall not be construed to require Second Lien Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems confidential) to Borrower or
any other Person.

     3.2. Increased Cost.

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

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first made demand therefor; provided, that if the event giving rise to such costs or
reductions has retroactive effect, such 180 day period shall be extended to include the period of
retroactive effect.

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

     3.3. Inadequate or Unfair Basis.

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

     3.4. Change in Law.

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

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     3.5. Funding Losses.

     Borrower hereby agrees that within 3 Business Days following demand by any Lender (which
demand shall be accompanied by a statement setting forth the basis for the amount being claimed, a
copy of which shall be furnished to Second Lien Agent), Borrower will indemnify such Lender against
any net loss or expense which such Lender may sustain or incur (including any net loss or expense
incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such
Lender to fund or maintain any LIBOR Loan), as reasonably determined by such Lender, as a result of
(a) any payment, prepayment or conversion of any LIBOR Loan of such Lender on a date other than the
last day of an Interest Period for such Loan (including any conversion pursuant to Section
3.3 or 3.4) or (b) any failure of Borrower to convert or continue any Loan on a date
specified therefor in a notice of conversion or continuation pursuant to this Agreement. For the
purposes of this Section 3.5, all determinations shall be made as if such Lender had
actually funded and maintained each LIBOR Loan during each Interest Period for such Loan through
the purchase of deposits having a maturity corresponding to such Interest Period and bearing an
interest rate equal to the LIBOR Rate for such Interest Period.

     3.6. Manner of Funding; Alternate Funding Offices.

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

     3.7. Mitigation of Circumstances; Replacement of Lenders.

          (a) Each Lender shall promptly notify Borrower and Second Lien Agent of any event of which it
has knowledge which will result in, and will use reasonable commercial efforts available to it (and
not, in such Lender’s reasonable judgment, otherwise disadvantageous to such Lender) to mitigate or
avoid, (i) any obligation by Borrower to pay any amount pursuant to Section 3.1 or
3.2 or (ii) the occurrence of any circumstances described in Section 3.3 or
3.4 (and, if any Lender has given notice of any such event described in clause (i) or (ii)
above and thereafter such event ceases to exist, such Lender shall promptly so notify Borrower and
Second Lien Agent). Without limiting the foregoing, each Lender will provide to Borrower or file
any document or instrument reasonably requested by Borrower or designate a different funding office
if providing or filing such document or instrument or making such designation will avoid (or reduce
the cost to Borrower of) any event described in clause (i) or (ii) above and such designation would
not, in such Lender’s sole judgment, be otherwise disadvantageous to such Lender.

          (b) If (i) Borrower becomes obligated to pay additional amounts to any Lender pursuant to
Section 3.1 or 3.2, (ii) any Lender gives notice of the occurrence of any
circumstances described in Section 3.3 or 3.4, (iii) any Lender fails to make an
advance when obligated to do so under this Agreement (a “Defaulting Lender”), or (iv) any Lender
(other than Second Lien Agent) fails to approve any amendment, modification, restatement or waiver
under this Agreement that requires a greater percentage of the Lenders than the Required Lenders
and such amendment, modification, restatement or waiver is otherwise consented to by the Required
Lenders, Borrower may within 90 days thereafter designate another bank or other financial
institution which is acceptable to Second Lien Agent in its reasonable discretion (such other
lender being called a “Replacement Lender”) to purchase the Loans of such Lender and such
Lender’s rights hereunder, without recourse to or warranty by, or expense to, such Lender, for a
purchase price equal to the outstanding principal amount of the Loans payable to such

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Lender (provided that no fees shall accrue to a Defaulting Lender) plus any accrued but unpaid
interest on such Loans and all accrued but unpaid fees owed to such Lender and any other amounts
payable to such Lender under this Agreement, and to assume all the obligations of such Lender
hereunder, and, upon such purchase and assumption (pursuant to an Assignment Agreement), such
Lender shall no longer be a party hereto or have any rights hereunder (other than rights with
respect to indemnities and similar rights applicable to such Lender prior to the date of such
purchase and assumption) and shall be relieved from all obligations to Borrower hereunder, and the
Replacement Lender shall succeed to the rights and obligations of such Lender hereunder.

     3.8. Conclusiveness of Statements; Survival.

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

     Section 4. Conditions Precedent.

     The obligation of each Lender to make its Loans is subject to the following conditions
precedent, each of which shall be satisfactory in all respects to Second Lien Agent:

     4.1.1. Capitalization; Adjusted EBITDA

     AmWins Holdings, LLC, a Delaware corporation, has received cash equity contributions from
Sponsor and its Investment Affiliates in an amount not less than $108,000,000, and the Borrower has
received (or concurrently with the initial credit extensions hereunder will receive) and net cash
proceeds of not less than $148,000,000 from the issuance of First Lien Debt. EBITDA, as adjusted
by adjustments satisfactory to Second Lien Agent, for the 12 month period ending September 30, 2005
shall not be less than $37,500,000.

     4.1.2. Reserved.

     4.1.3. Prior Debt.

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

     4.1.4. Related Transactions.

          Borrower has completed (or concurrently with the credit extension hereunder will complete) the
Related Transactions in accordance with the terms of the Related Agreements (without any amendment
thereto or material waiver thereunder unless consented to by Second Lien Agent).

     4.1.5. 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.

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     4.1.6. Delivery of Loan Documents.

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

          (a) Agreement. This Agreement.

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

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

          (e) Lien Searches. Copies of Uniform Commercial Code search reports listing all
effective financing statements filed against any Loan Party, with copies of such financing
statements.

          (f) Collateral Access Agreements. Collateral Access Agreements reasonably requested
by Second Lien Agent with respect to the Collateral.

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

          (h) First Lien Debt. The First Lien Subordination Agreement.

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

          (j) Authorization Documents. For each Loan Party, such Person’s (i) charter (or
similar formation document), certified by the appropriate governmental authority, (ii) good
standing certificates in its state of incorporation (or formation) and in each other state
requested by Second Lien Agent, (iii) bylaws (or similar governing document), (iv) resolutions of
its board of directors (or similar governing body) approving and authorizing such Person’s
execution, delivery and performance of the Loan Documents 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.

          (k) Opinions of Counsel. Opinions of counsel for each Loan Party, including local
counsel reasonably requested by Second Lien Agent, and all other opinions issued pursuant to the
Related Transactions, and Borrower hereby requests such counsel to deliver such opinions and
authorizes Second Lien Agent and Lenders to rely thereon.

          (l) Insurance. Certificates or other evidence of insurance in effect as required by
Section 6.3(b), with endorsements naming Second Lien Agent as lenders’ loss payee and/or
additional insured, as applicable.

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

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

          (o) Collateral Assignment of Purchase Agreement. A Collateral Assignment of Contract
Rights from AmWINS Holdings, LLC, a Delaware limited liability company, with respect to the
Purchase Agreement.

          (p) Related Agreements. Copies of the Related Agreements (including a consent to the
collateral assignment of rights and indemnities under the appropriate Related Agreements in favor
of Second Lien Agent and Lenders).

          (q) Leverage. The Borrower shall have delivered evidence to the reasonable
satisfaction of Second Lien Agent demonstrating that the ratio of (i) Total Debt as of the Closing
Date after giving effect to the consummation of the Related Transactions and the transactions
contemplated by the Loan Documents, payment of all costs and expenses in connection therewith and
funding of the Loans, to (ii) EBITDA of Holdings for the twelve (12) month period ending September
30, 2005 shall not be greater than 4.65:1.00.

          (r) Closing and Solvency Certificate. A certificate executed by an Authorized Officer
of Borrower certifying as to solvency and to (i) the representations and warranties of Borrower and
each Subsidiary set forth in this Agreement and the other Loan Documents being 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 (ii) no Event of Default or Default has occurred and is
continuing.

          (s) Non-Compete Agreements. Non-compete agreements duly executed by Borrower and each
of (i) M. Steven DeCarlo and (ii) Scott Purviance.

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

Section 5. Representations and Warranties.

     To induce Second Lien Agent and Lenders to enter into this Agreement and to induce Lenders to
make Loans hereunder, Borrower represents and warrants to Second Lien Agent and Lenders that, both
before and after giving effect to the Related Transactions:

     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 would not have a Material
Adverse Effect.

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     5.2. Authorization; No Conflict.

     Borrower has the requisite corporate power to, and is duly authorized to, borrow monies
hereunder. Each of Borrower and each other Loan Party has the requisite corporate or equivalent
power to, and is duly authorized, (v) to own, pledge, mortgage and operate its properties, (w) to
lease any properties it operates under lease, (x) to conduct its business as presently conducted,
(y) to execute and deliver each Loan Document and each Related Agreement to which it is a party,
and (z) to perform its Obligations under each Loan Document to which it is a party and its
obligations under each Related Agreement 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 law, (ii) the charter, by-laws or other organizational documents of Borrower or any
other Loan Party or (iii) except as set forth on Schedule 5.2, 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 Second Lien Agent created pursuant to the Collateral Documents and
Liens in favor of the First Lien Agent created pursuant to the First Lien Debt Documents) in each
case of the foregoing clauses (a), (b) and (c), except where the failure to do so could not
reasonably be expected to result in a Material Adverse Effect.

     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 has been duly executed and delivered by such Person and 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 Holdings and its Subsidiaries as at their
Fiscal Year ending December 31, 2004, and the unaudited consolidated financial statements of
Borrower and the Subsidiaries as at September 30, 2005, 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 in
all material respects 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 Holdings for the 5 year period commencing September 30, 2005 delivered to Second Lien
Agent and Lenders on or prior to the Closing Date (i) were prepared by Borrower in good faith and
(ii) were prepared in accordance with assumptions which Borrower believes to be reasonable at the
time of preparation and on the Closing Date, and the accompanying consolidated pro forma balance
sheet of Holdings as at the Closing Date, adjusted to give effect to the consummation of the
Related Transactions and the financings contemplated hereby as if such transactions had occurred on
such date, is consistent in all material respects with such projections. Second Lien Agent and the
Lenders acknowledge and agree that such projections represent forward looking information, are
subject to certain inherent uncertainties, that actual results might vary from such projections and
such variances might be material.

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     5.5. No Material Adverse Change.

     Since December 31, 2004, there has been no material adverse change in the financial condition,
operations, assets, business or properties of the Loan Parties taken as a whole.

     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 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, 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, and, if corporate stock, are fully paid, non-assessable, and all
such securities are free and clear of all Liens other than those permitted by Section 7.2
or in favor of Second Lien Agent, 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 (after giving effect to the
Related Transactions). All of the issued and outstanding equity of Holdings is owned as set forth
on Schedule 5.8 as of the Closing Date (after giving effect to the Related Transactions),
all of the issued and outstanding equity of Borrower prior to a Holdings Transaction is owned by
Holdings except for equity issued pursuant to the Borrower Stock Option Plan, and, except as set
forth on Schedule 5.8, all of the issued and outstanding equity of each Wholly-Owned
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. Except as set forth on
Schedule 5.8, no Loan Party owns any equity securities or any other interests in any
partnership, joint venture or other entity.

     5.9. Pension Plans.

     During the twelve-consecutive-month period prior to the Closing Date or the making of any
Loan, (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 occurred

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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” or a company “controlled”
by an “investment company” or a “subsidiary” of an “investment company”, within the meaning of the
Investment Company Act of 1940.

     5.11. 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 federal and other material tax
returns and reports required by law to have been filed by it and has paid all taxes and
governmental charges thereby shown to be owing, except any such taxes or charges which are being
diligently contested in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books.

     5.14. Solvency.

     On the Closing Date, immediately prior to and after giving effect to the making of the Loans
hereunder and the use of the proceeds thereof and consummation of the Related Transactions, and
after giving effect to rights of contribution and intercompany loans and payments permitted
hereunder with respect to each of Borrower and each other Loan Party, individually, (a) the fair
value of its assets on a going concern basis 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 on a going concern basis
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 generally 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 generally 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 (it
being understood that the Subsidiaries listed on Schedule 5.14 rely on funding from the
Borrower to engage in business as currently conducted by such entities).

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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 would 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.

     All information furnished in writing (including, without limitation, in any schedule,
certificate, financial statement, report or notice) on or prior to the date hereof by Borrower or
any other Loan Party to Second Lien Agent or any Lender for purposes of or in connection with this
Agreement and the transactions contemplated hereby is (as such information has been supplemented
prior to the date hereof), and all written information (including, without limitation, any
information in any schedule, certificate, financial statement, report or notice) hereafter
furnished by or on behalf of Borrower or any Loan Party to Second Lien Agent or any Lender pursuant
hereto or in connection herewith will be, true and accurate in every material respect on the date
as of which such information is dated or certified, and, as of the date delivered or certified,
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 is
acknowledged and agreed by Second Lien Agent and Lenders that (i) any projections and forecasts
provided by Borrower are based on good faith estimates and (ii) projections are by their nature
speculative, (iii) 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) and (iv)
such differences might be material.

     5.18. Intellectual Property.

     Except as set forth on Schedule 5.18, 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,

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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.

     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 as of the Closing Date. There are no
existing, and no Loan Party has received notice of any 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 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. Related Agreements.

     Borrower has furnished Second Lien Agent a complete copy of the Related Agreements pursuant
hereto. Each of Borrower and, to Borrower’s knowledge, each other party to the Related Agreements,
has duly taken all necessary organizational action to authorize the execution, delivery and
performance of the Related Agreements and the consummation of transactions contemplated thereby.
As of the Closing Date, the Related Transactions have been consummated (or are being consummated
substantially contemporaneously with the credit extension hereunder) in accordance with the terms
of the Related Agreements in all material respects except where Second Lien Agent has consented
otherwise. The Related Transactions comply in all material respects with all applicable legal
requirements, and all necessary governmental, regulatory, creditor, shareholder, partner and other
material consents, approvals and exemptions required to be obtained by a Loan Party and, to
Borrower’s knowledge, each other party to the Related Agreements in connection with the Related
Transactions have been duly obtained and are in full force and effect. As of the Closing Date, all
applicable waiting periods with respect to the Related Transactions have expired without any action
being taken by any competent governmental authority which restrains, prevents or imposes material
adverse conditions upon the consummation of the Related Transactions. The execution and delivery
of the Related Agreements, and the consummation of the Related Transactions, did not violate any
material statute or regulation of the United States (including any securities law) or of any state
or other applicable jurisdiction, or any order, judgment or decree of any court or governmental
body binding on Borrower or any other Loan Party or, to Borrower’s knowledge, any other party to
the Related Agreements, or result in a material breach of, or constitute a material default under,
any material agreement, indenture, instrument or other document, or any judgment, order or decree,
to which Borrower or any other Loan Party is a party or by which Borrower or any other Loan Party
is bound or, to Borrower’s knowledge, to which any other party to the Related Agreements is a party
or by which any such party is bound.

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     5.23. Retail Brokers and Insurance Companies.

     As of the Closing Date, there exists no actual or, to the knowledge of any Loan Party after
due inquiry, threatened termination or cancellation of, or any material adverse modification or
change in: the business relationship of any Loan Party with any retail broker or group of retail
brokers whose business transactions during the preceding 12 months with Holdings and its
Subsidiaries caused them to be ranked among the ten largest retail brokers of Holdings and its
Subsidiaries, taken as a whole, or the business relationship of any Loan Party with any insurance
company whose business transactions during the preceding 12 months with Holdings and its
Subsidiaries caused it to be ranked among the five largest suppliers of insurance products to
clients of Holdings and its Subsidiaries taken as a whole.

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 Required Lenders shall otherwise
expressly consent in writing, it will:

     6.1. Information.

     Furnish to Second Lien Agent and each Lender:

     6.1.1. Annual Report.

          Promptly when available and in any event within 120 days after the close of each Fiscal Year:
(a) a copy of the annual audit report of Holdings and its Subsidiaries for such Fiscal Year,
including therein a consolidated balance sheet and statements of earnings and cash flows of
Holdings and its Subsidiaries as at the end of and for such Fiscal Year, certified without
qualification by independent auditors of recognized standing selected by Holdings and reasonably
acceptable to Second Lien Agent, together with (i) a written statement from such accountants to the
extent permitted by and consistent with such accountant’s audit policies, as determined in such
accountant’s sole discretion, to the effect that in making the examination necessary for the
signing of such annual audit report by such accountants, nothing came to their attention that
caused them to believe that Borrower was not in compliance with any provision of Section
7.1, 7.3, 7.4 or 7.14 insofar as such provision relates to accounting
matters or, if something has come to their attention that caused them to believe that Borrower was
not in compliance with any such provision, describing such non-compliance in reasonable detail and
(ii) a comparison with the budget for such Fiscal Year and a comparison with the previous Fiscal
Year; and (b) a consolidating balance sheet of Holdings and its Subsidiaries as of the end of such
Fiscal Year and consolidating statements of earnings and cash flows for Holdings and its
Subsidiaries for such Fiscal Year, certified by an Authorized Officer of Borrower.

     6.1.2. Interim Reports.

          Promptly when available and in any event within 45 days after (i) the end of each month,
consolidated and consolidating balance sheets of Holdings and its Subsidiaries as of the end of
such month, together with consolidated and consolidating statements of earnings and a consolidated
statement of cash flows for such month and for the period beginning with the first day of such
Fiscal Year and ending on the last day of such month, together with a comparison with the
corresponding period of the previous Fiscal Year and a comparison with the budget for such period
of the current Fiscal Year, certified by an Authorized Officer of Borrower, and (ii) the end of
each Fiscal Quarter a written statement

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of Borrower’s management setting forth a discussion of Borrower’s financial condition, changes
in financial condition and results of operations as of and for such period.

     6.1.3. Compliance Certificate.

          Contemporaneously with the furnishing of a copy of each annual audit report pursuant to
Section 6.1.1 and each set of financial statements pursuant to Section 6.1.2 with
respect to the last month of each Fiscal Quarter, a duly completed Compliance Certificate, with
appropriate insertions, dated the date of such annual report or such monthly statements, and signed
by an Authorized Officer of Borrower, containing (i) a computation of each of the financial ratios
and restrictions set forth in Section 7.14 and (ii) a statement to the effect that such
officer has not become aware of any Event of Default or Default that has occurred and is continuing
or, if there is any such event, describing it and the steps, if any, being taken to cure it.

     6.1.4. Reports to SEC and Shareholders.

          Promptly upon the filing or sending thereof, copies of (a) all regular, periodic or special
reports of each Loan Party filed with the Securities and Exchange Commission, (b) all registration
statements of each Loan Party filed with the Securities and Exchange Commission (other than on Form
S-8) and (c) all proxy statements or other communications made to security holders generally.

     6.1.5. Notice of Default; Litigation; ERISA Matters.

          Promptly upon any Authorized Officer of any Loan Party obtaining knowledge 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 Lenders 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 in any such case could reasonably be expected to have a Material Adverse
Effect;

          (c) the institution of any steps by any member of the Controlled Group or any other Person to
terminate any Pension Plan, or the failure of any member of the Controlled Group to make a required
contribution to any Pension Plan (if such failure is sufficient to give rise to a Lien under
Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or the taking of any action with
respect to a Pension Plan which could result in the requirement that Borrower or any 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

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

     6.1.6. Management Report.

          Promptly upon receipt thereof, copies of all formal management reports submitted to Borrower
or any other Loan Party by independent auditors in connection with each annual or interim audit
made by such auditors of the consolidated financial statement of Borrower and the other Loan
Parties.

     6.1.7. Projections.

          As soon as practicable, and in any event not later than 30 days after the commencement of each
Fiscal Year, financial projections for Holdings and its Subsidiaries for such Fiscal Year
(including monthly operating and cash flow budgets) prepared in a manner consistent with the
projections delivered by Borrower to Lenders prior to the Closing Date or otherwise in a manner
reasonably satisfactory to Second Lien Agent, accompanied by a certificate of an Authorized Officer
of Borrower on behalf of Borrower to the effect that (a) such projections were prepared by Borrower
in good faith, (b) Borrower had a reasonable basis for the assumptions contained in such
projections when made and (c) such projections have been prepared in accordance with such
assumptions. Second Lien Agent and each Lender acknowledge and agree that any such projections
constitute forward-looking information, are subject to inherent uncertainties, that actual results
will vary from the projections and that such variances may be material.

     6.1.8. Second Lien Debt and Subordinated Debt Notices.

          Promptly following receipt, copies of any notices (including notices of default or
acceleration) received from any agent, holder or trustee of, under or with respect to any First
Lien Debt or Subordinated Debt.

     6.1.9. Subsidiary Formation.

          Not less than 7 days prior written notice to Second Lien Agent of the proposed formation by
Borrower or any Subsidiary of any other Subsidiary (which newly-formed Subsidiary shall be a
Wholly-Owned Subsidiary), together with the actions proposed to be taken by Borrower to comply
with, or cause compliance with, the provisions of Section 6.8 in respect of such Subsidiary
formation.

     6.1.10. Other Information.

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

     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, upon reasonable prior written notice
(unless an Event of Default exists) and during such Loan Party’s normal business hours, Second Lien
Agent (accompanied by any Lender) or any representative thereof to inspect the properties and
operations of Borrower or such other Loan Party not more than twice per year (or at any time that
an Event of Default exists); and permit, and cause each other Loan Party to permit during such Loan
Party’s normal business hours, at any

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reasonable time and with reasonable notice not more than twice per year (or at any time
without notice if an Event of Default exists), Second Lien Agent (accompanied by any Lender) or,
subject to the same conditions, any representative thereof to visit any or all of its offices, to
discuss its financial matters with its officers and its independent auditors (and Borrower hereby
authorizes such independent auditors to discuss such financial matters with any Lender or Second
Lien Agent or any representative thereof, so long as Borrower or its representative is given the
opportunity to the present), 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, Second Lien Agent and its representatives to inspect the Collateral and other
tangible assets of Borrower or such Loan Party, to perform appraisals of the equipment 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 Second Lien Agent shall be at
Borrower’s expense, provided that so long as no Event of Default or Default exists, Borrower shall
not be required to reimburse Second Lien Agent for the conduct of appraisals or audits more
frequently than once each Fiscal Year or in amount in excess of $10,000 in the aggregate in any
Fiscal Year.

     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.

          (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 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
not materially higher than, those amounts provided for as of the Closing Date. Upon request of
Second Lien Agent, Borrower shall furnish to Second Lien Agent 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 Second Lien Agent with
an endorsement (i) showing Second Lien Agent as a loss payee with respect to each policy of
property or casualty insurance and naming Second Lien Agent as an additional insured with respect
to each policy of liability insurance, (ii) providing that 30 days’ notice will be given to Second
Lien Agent 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
Second Lien Agent. Borrower shall execute and deliver to Second Lien Agent a collateral
assignment, in form and substance satisfactory to Second Lien Agent, of each business interruption
insurance policy maintained by the Loan Parties.

          (c) Unless Borrower provides Second Lien Agent with evidence of the continuing insurance
coverage required by this Agreement following request therefor, Second Lien Agent may purchase
insurance at Borrower’s expense to protect Second Lien Agent’s and Lenders’ interests in the
Collateral. This insurance may, but need not, protect Borrower’s and each other Loan Party’s
interests. The coverage that Second Lien Agent 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 Second Lien Agent, but only after providing Second Lien
Agent with evidence that Borrower has obtained the insurance coverage required by this Agreement.
If Second Lien Agent purchases insurance for the Collateral, as set forth above, Borrower will be
responsible for the costs of that insurance, including interest and any other charges that may be
imposed with the placement of the

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insurance, until the effective date of the cancellation or expiration of the insurance and the
costs of the insurance may be added to the principal amount of the Loans owing hereunder.

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

     (a) Comply, and cause each other Loan Party to comply, 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, take reasonable steps to ensure, and cause each other Loan Party to take reasonable steps 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 in all material respects and cause
each other Loan Party to comply in all material respects, 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,
charge or claim so long as it shall contest the validity thereof in good faith by appropriate
proceedings and shall set aside on its books adequate reserves with respect thereto in accordance
with GAAP.

     6.5. Maintenance of Existence.

     Maintain and preserve, and (except as permitted by Section 7.5) cause each other Loan
Party to maintain and preserve, (a) its (i) existence and (ii) good standing in the jurisdiction of
its organization, (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, (c) its licenses, permits, authorizations and registrations, other than
where the failure to do so could not reasonably be expected to have a Material Adverse Effect and
(d) its leases, contracts, agreements and other arrangements other than where the failure to do so
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; except to the extent the
failure to so comply would not reasonably be expected to result in a Material Adverse Effect.

     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.

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     6.8. Further Assurances.

     Take, and cause each other Loan Party to take, such actions as are necessary or as Second Lien
Agent or the Required Lenders 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 domestic Subsidiary and 65% of the voting equity interests of first tier foreign
Subsidiaries) and guaranteed by each Loan Party (including, promptly upon the acquisition or
creation thereof, any Subsidiary that is acquired or created after the Closing Date), in each case
including (a) the execution and delivery, if applicable, 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.

     6.9. Interest Rate Protection.

     Enter into, prior to the Closing Date and/or at any time not later than 90 days after the
Closing Date, one or more interest rate protection mechanisms with terms of at least two years,
commencing on the Closing Date, on the ISDA standard form with one or more Lenders or Affiliates
thereof or with counterparties reasonably acceptable to Second Lien Agent to hedge the interest
rate with respect to not less than 40% of the aggregate principal amount of the First Lien Term
Loans and the Second Lien Term Loans, in form and substance reasonably satisfactory to Second Lien
Agent.

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 Required Lenders 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 the following (“Permitted Debt”):

          (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 $4,000,000;

          (c) Debt of Borrower to any domestic Wholly-Owned Subsidiary or Debt of any domestic
Subsidiary (other than PAUSE Insurance) to Borrower or a domestic Wholly-Owned Subsidiary;

          (d) Hedging Obligations incurred to satisfy Borrower’s obligations under Section 6.9;

          (e) 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;

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

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          (g) Contingent Obligations (i) by endorsement of instruments for deposit or collection in the
ordinary course of business, or (ii) consisting of guarantees of Debt incurred for the benefit of
any other Loan Party if the primary obligation is permitted elsewhere in this Section 7.1;

          (h) The accrual and capitalization of interest on any Permitted Debt;

          (i) Debt consisting of promissory notes issued by any Loan Party to former officers,
directors, employees (or their estates, spouses or former spouses) of Borrower or Holdings to
purchase or redeem capital stock of Borrower or Holdings upon the termination of employment, in
accordance with Section 7.4(vi);

          (j) Debt incurred in connection with the financing of insurance premiums;

          (k) Debt in respect of netting services, overdraft protections and otherwise in connection
with deposit accounts, so long as such Debt is incurred in the ordinary course of business;

          (l) Debt incurred in connection with Liens permitted under Section 7.2(b);

          (m) Seller Debt incurred in connection with Acquisitions permitted hereunder, provided
that (i) such Debt is subordinated to the Obligations on terms consented to by Second Lien Agent in
its reasonable discretion and (ii) the aggregate outstanding amount of such Debt does not at any
time exceed $5,000,000;

          (n) Earn-outs incurred in connection with Acquisitions permitted hereunder;

          (o) Subordinated Debt incurred by the Borrower and guarantees thereof by the Subsidiaries;

          (p) The First Lien Debt;

          (q) Debt of Holdings to the Borrower permitted by Section 7.4; and

          (r) Other Debt, in addition to the Debt listed above, in an aggregate outstanding amount not
at any time exceeding $3,500,000.

     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 any of the following:

          (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;

          (b) Liens arising in the ordinary course of business (such as (x) Liens of carriers,
warehousemen, mechanics, landlords and materialmen and other similar Liens imposed by law and (y)
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 or pledges or deposits in connection with insurance,
leases, or other contracts or bids) (i) for sums not overdue for more than 10 Business Days (or
more than 60 days with respect to amounts due to trade creditors in the ordinary course of
business) so long as no Person has

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taken any legal action to enforce such Lien or (ii) being diligently contested in good faith
by appropriate proceedings and not involving any 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;

          (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
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, securing claims not
exceeding $2,500,000 arising in connection with court proceedings; provided that the claims secured
thereby have been paid, discharged or vacated or the execution thereof has been stayed pending
appeal within 30 days after entry or filing of such attachments, appeal bonds, judgments and other
similar Liens;

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

          (g) Liens arising under the Loan Documents and the First Lien Debt Documents;

          (h) the replacement, extension or renewal of any Lien permitted by clauses (c) and (d) 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);

          (i) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

          (j) Any interest or title of a licensor, sublicensor, lessor or sublessor under any license or
lease agreement;

          (k) Licenses, sublicenses, leases or subleases granted to third Persons in the ordinary course
of business;

          (l) Liens which arise under Article 4 of the UCC on items in collection and documents and
proceeds related thereto;

          (m) Liens deemed to exist in connection with Permitted Investments that constitute repurchase
obligations;

          (n) Rights of setoff or banker’s liens upon deposits of cash in favor of banks or other
depository institutions to the extent permitted by the tri-party agreements required by Section
7.15;

          (o) Precautionary filings with respect to operating leases; and

          (p) Liens in an amount not to exceed $2,500,000 in the aggregate securing Permitted Debt or
other obligations.

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     7.3. Reserved.

     7.4. Restricted Payments.

Not, and not permit any other Loan Party to, (a) make any dividend or other distribution in cash or
property (but not its own capital stock) 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 (other than
redemptions on the Closing Date as set forth in the Purchase Agreement (including Exhibit F
thereto)), (c) pay any management fees or similar fees to any of its equity holders or any
Affiliate thereof, (d) make any redemption, prepayment (whether mandatory or optional), defeasance,
repurchase or any other payment in respect of any Subordinated Debt or (e) set aside funds for any
of the foregoing. Notwithstanding the foregoing, (i) any Subsidiary may pay dividends or make
other distributions to Borrower or to a domestic Wholly-Owned Subsidiary; (ii) at any time prior to
a Holdings Transaction, Borrower may make distributions or advances to Holdings to permit Holdings
to pay: (w) federal and state income taxes then due and owing by Holdings or its equity holders
(and Holdings may make such tax distributions to its equity holders to pay any such taxes) (A)
attributable to the income or operations of Borrower and its Subsidiaries or (B) with respect to
roll-over equity as contemplated by the Purchase Agreement not to exceed, with respect to this
clause (B), $1,500,000 in the aggregate, (x) reasonable fees for audit, legal and similar
administrative services not to exceed $200,000 per Fiscal Year, (y) customary fees to non-officer
directors of Holdings who are not Affiliates of Holdings and out-of-pocket expenses to directors or
observers of the board of directors of Holdings, and (z) payments permitted by clause (vi) of this
Section 7.4; (iii) Borrower may make payments to Sponsor with respect to indemnification
obligations so long as no Event of Default then exists or would result therefrom; (iv) Holdings or
the Borrower may, in respect of management and other advisory services rendered by Manager to
Holdings and its Subsidiaries: (x) in the case of an investment in the equity capital of Holdings
or an acquisition or divestiture in which Holdings or one or more of its Subsidiaries is a primary
party and with respect to which Manager has provided Holdings or one or more of its Subsidiaries
advisory services, pay to Manager (or its designee) a transaction advisory fee (an “Advisory
Fee”) equal to 0.75% (or less) of the gross amount of such transaction after the consummation
of such transaction pursuant to the Management Agreement, provided that (A) such
transaction is permitted under this Agreement and (B) at the time such fee is incurred and at the
time such fee is paid, no Event of Default has occurred and is continuing (including after giving
pro forma effect to such transaction and the payment of such fee), (y) pay to
Manager an annual management fee (a “Management Fee”) equal to 0.75% (or less) of the
aggregate amount invested in the equity capital of Holdings by Sponsor and its Investment
Affiliates, whether directly or through an Affiliate, pursuant to the Management Agreement,
provided that at the time any such payment is made, no Event of Default has occurred and is
continuing (including after giving pro forma effect to such payment) and (z)
reimburse Manager for the reasonable out-of-pocket expenses incurred by it in connection with the
performance of such management and advisory services pursuant to the Management Agreement;
provided, however, that in the case of clauses (x) and (y) above, (A) the
conditions to payment shall not apply if the payment is to be made in the form of equity of
Holdings or proceeds of a contemporaneous equity offering or capital contribution, and (B) in the
event that any payment is not made because an Event of Default has occurred and is continuing at
the time of the scheduled payment thereof, such fees may be paid in full after all existing Events
of Default have been cured or waived; (v) Holdings or the Borrower may redeem or repurchase equity
of Holdings or the Borrower, respectively, held by former officers, directors, or employees of
Holdings or any of its Subsidiaries following the death or disability of such Person, to the extent
Holdings or the Borrower has received net cash proceeds from insurance covering the death or
disability of such Person in a dollar amount no less than the dollar amount of such redemption or
repurchase; (vi) Holdings, Borrower and/or its Subsidiaries may make other payments or advances to
allow any Loan Party to repurchase equity from former directors, officers or employees of any Loan
Party, their estates, spouses, or former spouses in connection with the termination of such
employee’s employment (or such director’s directorship) not to exceed $4,000,000 in the aggregate
or $1,500,000 to

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any single such Person, and the Loan Parties may make distributions and advances to their parent
companies to effect such purchases and/or to make payments on any notes issued in connection with
any such repurchase; provided, however, that no Event of Default shall have
occurred and be continuing at the time of such distribution (including after giving pro
forma effect to such distribution); (vii) any of Holdings, Borrower or Subsidiaries may
make repurchases of capital stock of any Loan Party deemed to occur upon the cashless exercise of
options or warrants; (viii) in each case to the extent due and payable on a non-accelerated basis
and permitted under the applicable subordination provisions thereof, Borrower may make regularly
scheduled payments of principal and interest in respect of Subordinated Debt; and (ix) Holdings or
the Borrower may redeem or repurchase equity of a Subsidiary of the Borrower to the extent required
pursuant to the exercise of a put right by a holder thereof under the agreements listed on
Schedule 5.2; provided, however, no Default or Event of Default shall have
occurred and be continuing at the time of such redemption or repurchase (including after giving
pro forma effect to such redemption or repurchase).

     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 (i) any such merger, consolidation, liquidation or voluntary dissolution of any
Subsidiary into Borrower or any domestic Wholly-Owned Subsidiary, (ii) any such merger or
consolidation to effect a Holdings Transaction and (iii) any such merger or consolidation to effect
an Acquisition permitted hereunder.

          (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 and dispositions of assets (excluding any equity interests of Borrower or any
Subsidiary) for at least fair market value (as determined by the Board of Directors of Borrower) so
long as the net book value of all assets sold or otherwise disposed of in any Fiscal Year does not
exceed $500,000; (ii) sales, licenses or leases of intellectual property in the ordinary course of
business; (iii) obsolete property disposed of in the ordinary course of its business, (iv) the sale
or other transfer of Inventory in the ordinary course of business, (v) the discount, settlement or
write off of accounts receivable or overdue accounts receivable for collection in the ordinary
course of business, (vi) the sale or other disposition of Cash Equivalents and other Investments
permitted under Section 7.11 (other than Investments in Subsidiaries), (vii) the termination,
surrender or sublease of a real estate lease of a Loan Party in the ordinary course of business,
(viii) the cancellation of any intercompany indebtedness (other than amounts owed by a
non-Wholly-Owned Subsidiary to the Borrower or any Wholly-Owned Subsidiary) or (ix) transfers of
assets pursuant to Section 7.11(h).

     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 Second Lien Agent or any Lender.

     7.7. Use of Proceeds.

     Use the proceeds of the Loans to repay in full, on the Closing Date, the Prior Debt, to fund
on the Closing Date in part the Related Transactions, for working capital, for Capital
Expenditures, to pay transaction expenses, interest and any fees or other charges arising in
connection with the prepayment of any Debt and for other general business purposes; 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.

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7.8. Transactions with Affiliates.

     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. It is
acknowledged and agreed by the Second Lien Agent and the Lenders that the below listed transactions
comply with the provisions of this Section 7.8:

          (a) Any transactions, arrangements or fees, reimbursements and indemnities specifically
permitted under this Agreement;

          (b) Compensation and indemnities to officers and directors;

          (c) Issuances of stock, options and warrants therefor;

          (d) Expense reimbursement and indemnities to Affiliates to the extent permitted in this
Agreement;

          (e) Employment agreements and agreements incidental thereto entered into with officers and
employees of the Loan Parties; and

          (f) Any transaction set forth on Schedule 7.8

     7.9. Inconsistent Agreements.

     Not, and not permit any other Loan Party to, enter into any agreement (other than the First
Lien Debt Documents) 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 Second Lien Agent and Lenders a Lien on any of its assets other than
restrictions in any agreement governing any Debt permitted by Section 7.1(b) so long as
such restriction is limited to the assets financed with the proceeds of such Debt and restrictions
against assignment thereof contained in any contract or license entered into in the ordinary course
of business 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, in the case of this clause (iii), restrictions
in any agreement governing any Debt permitted by Section 7.1(b) so long as such restriction
is limited to the assets financed with the proceeds of such Debt and restrictions against
assignment thereof contained in any contract or license entered into in the ordinary course of
business.

     7.10. Business Activities.

     Not engage in any line of business other than the businesses engaged in on the Closing Date
provided that such businesses do not generate more than $1,000,000 in revenue during any Fiscal
Year. 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. Not, and not permit any
other Loan Party to, issue any equity interest other than (a) any issuance by a Subsidiary to
Borrower or another Subsidiary in accordance with Section 7.4, (b) any issuance of options
pursuant to the Borrower Stock Option Plan or any issuance of stock upon the exercise of such
options, or (c) any issuance of shares of Holdings’ equity securities (or, following a Holdings
Transaction and subject to Section 8.1.10, Borrower’s equity securities).

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     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, except the following (each a “Permitted
Investment”):

          (a) Investments constituting Debt permitted by Section 7.1(c) or Section
7.1(o);

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

          (c) Cash Equivalent Investments;

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

          (e) 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;

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

          (g) Investments in Borrower and any domestic Wholly-Owned Subsidiary and any purchase or other
acquisition by Borrower or any domestic Wholly-Owned Subsidiary of the assets or equity interests
of any other domestic Wholly-Owned Subsidiary;

          (h) Investments in any domestic non-Wholly-Owned Subsidiary existing on the Closing Date
(other than PAUSE Insurance) and any purchase or other acquisition of the assets or equity
interests of any domestic non-Wholly-Owned Subsidiary existing on the Closing Date (other than
PAUSE Insurance);

          (i) the creation or establishment of one or more Wholly-Owned Subsidiaries so long as the
provisions of Section 6.8 are complied with;

          (j) Loans to employees, officers, and directors to buy capital stock of Holdings in an amount
not to exceed $10,000,000 outstanding in the aggregate any time provided that the proceeds of the
issuance of the capital stock of Holdings in connection therewith are contributed to the Borrower
by Holdings;

          (k) Loans to senior executives which are matched by performance based deferred compensation
accounts in lieu of cash bonuses and which are used to purchase stock of Holdings provided that the
proceeds of the issuance of the capital stock of Holdings in connection therewith are contributed
to the Borrower by Holdings;

          (l) Hedging Obligations;

          (m) a loan or an Investment that could otherwise be made as a distribution permitted under
Section 7.4 (with a commensurate reduction of the ability to make additional distributions
under such section);

          (n) any Acquisition by Borrower or any domestic Wholly-Owned Subsidiary where (i) the business
or division acquired is for use, or the Person acquired is engaged, in the businesses engaged in by
Borrower and the Subsidiaries on the Closing Date, (ii) in the case of the Acquisition of any
Person, the Board of Directors of such Person has approved such Acquisition and all of the equity
interests of such Person are being acquired, (iii) immediately before and after giving effect to
such Acquisition and

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the Loans made to fund such Acquisition, no Event of Default or Default shall exist, (iv)
immediately after giving effect to such Acquisition and the Loans made to fund such Acquisition,
Borrower is in pro forma compliance with Section 7.14 (provided that for purposes of
determining pro forma compliance with Section 7.14.3, the maximum Total Debt to EBITDA
Ratio shall be deemed to be 0.25 less than the ratio then required to be satisfied as set forth in
Section 7.14.3), as reflected in a Compliance Certificate delivered to Second Lien Agent at
least three Business Days prior to the consummation of such Acquisition, (v) the aggregate
consideration to be paid by Borrower and the Subsidiaries (including any Debt assumed or issued in
connection therewith, the amount thereof to be calculated in accordance with GAAP, but excluding
(A) any Earn-out obligations or payments, (B) the fair market value of any equity of Holdings
issued in connection with such Acquisition, and (C) any cash consideration which is the proceeds of
equity issued in accordance with Section 7.10) in connection with such Acquisition (or any
series of related Acquisitions) is less than $15,000,000 per Acquisition and less than $50,000,000
in the aggregate for all Acquisitions during the term of this Agreement, (vi) at the time of and
immediately after giving effect to such Acquisition and the related First Lien Revolving Loans, the
sum of (x) the excess of “Borrowing Availability” over “Revolving Outstandings” under the First
Lien Credit Agreement plus (y) unrestricted cash shall not be less than $5,000,000, (vii)
reasonably prior to any such Acquisition (or, with respect to any Acquisition with aggregate
consideration of less than $3,000,000, within 30 days after consummation of such Acquisition),
Second Lien Agent shall have received complete executed or conformed copies of each material
document, instrument and agreement to be executed in connection with such Acquisition, (viii) not
less than ten (10) Business Days prior to such Acquisition, an acquisition summary with respect to
the Person and/or business or division to be acquired, such summary to include a reasonably
detailed description thereof (including financial information) and operating results (including
financial statements for the most recent 12 month period for which they are available and as
otherwise available), the terms and conditions, including economic terms, of the proposed
Acquisition, and Borrower’s calculation of EBITDA relating thereto adjusted by adjustments that are
consistent with Regulation S-X or otherwise approved by Second Lien Agent in its reasonable
discretion (which adjusted EBITDA shall be greater than $0), (ix) consents have been obtained in
favor of Second Lien Agent and Lenders to the collateral assignment of rights and indemnities under
the related acquisition documents and (x) opinions of counsel for the Loan Parties and (if
delivered to the Loan Parties) the selling party in favor of Second Lien Agent and Lenders (or
otherwise permitting Agent and Lenders to rely thereon) have been delivered;

          (o) other Investments not exceeding $3,000,000 in the aggregate at any time (with the amount
of any Investment being the initial amount of such Investment less all cash repayments, returns,
dividends and distributions received in respect of such Investment); and

          (p) accretions and accruals of value on the above Investments.

     7.12. Restriction of Amendments to Certain Documents.

     Not amend or otherwise modify, or waive any rights under (a) any Related Agreement (other than
any First Lien Debt Document) other than immaterial amendments, modifications and waivers not
adverse to the interests of Second Lien Agent or any Lender or (b) any provisions of any First Lien
Debt Document or any document related to Subordinated Debt (except that the terms of the First Lien
Debt Documents may be amended to the extent permitted under the First Lien Subordination
Agreement); provided, that amendments, modifications or waivers of any Related Agreement,
any First Lien Debt Document or any document relating to Subordinated Debt to substitute Borrower
for Holdings in connection with a Holdings Transaction are not prohibited by this Section
7.12.

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     7.13. Fiscal Year; Accounting Method.

     Not change its Fiscal Year or, except as contemplated by Section 1.3 or as required by
GAAP, its accounting methods.

     7.14. Financial Covenants.

     7.14.1. Fixed Charge Coverage Ratio.

          Not permit the Fixed Charge Coverage Ratio for any Computation Period to be less than 1.125.

     7.14.2. Interest Coverage Ratio.

          Not permit the Interest Coverage Ratio for any Computation Period to be less than the
applicable ratio set forth below for such Computation Period:

	 	 	 	 	 
	Computation	 	Interest
	Period Ending	 	Coverage Ratio
	December 31, 2005
	 	 	1.80	 
	March 31, 2006
	 	 	1.80	 
	June 30, 2006
	 	 	1.80	 
	September 30, 2006
	 	 	1.80	 
	December 31, 2006
	 	 	1.80	 
	March 31, 2007
	 	 	1.80	 
	June 30, 2007
	 	 	2.025	 
	September 30, 2007
	 	 	2.025	 
	December 31, 2007
	 	 	2.025	 
	March 31, 2008
	 	 	2.025	 
	June 30, 2008
	 	 	2.025	 
	September 30, 2008
	 	 	2.025	 
	December 31, 2008
	 	 	2.25	 
	March 31, 2009
	 	 	2.25	 
	June 30, 2009
	 	 	2.25	 
	September 30, 2009
	 	 	2.25	 
	December 31, 2009 and thereafter
	 	 	2.475	 

     7.14.3. Total Debt to EBITDA Ratio.

          Not permit the Total Debt to EBITDA Ratio as of the last day of any Computation Period to
exceed the applicable ratio set forth below for such Computation Period:

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	Computation	 	Total Debt to
	Period Ending	 	EBITDA Ratio
	December 31, 2005
	 	 	5.918	 
	March 31, 2006
	 	 	5.918	 
	June 30, 2006
	 	 	5.918	 
	September 30, 2006
	 	 	5.918	 
	December 31, 2006
	 	 	5.918	 
	March 31, 2007
	 	 	5.50	 
	June 30, 2007
	 	 	5.50	 
	September 30, 2007
	 	 	5.225	 
	December 31, 2007
	 	 	5.225	 
	March 31, 2008
	 	 	4.95	 
	June 30, 2008
	 	 	4.95	 
	September 30, 2008
	 	 	4.675	 
	December 31, 2008
	 	 	4.675	 
	March 31, 2009
	 	 	4.40	 
	June 30, 2009
	 	 	4.40	 
	September 30, 2009
	 	 	4.125	 
	December 31, 2009
	 	 	4.125	 
	March 31, 2010 and thereafter
	 	 	3.85	 

     7.14.4. Capital Expenditures.

          Not permit the aggregate amount of all Capital Expenditures made by Borrower and the
Subsidiaries to exceed $3,575,000 in any Fiscal Year, commencing with Fiscal Year 2005; provided,
that if Borrower does not utilize the entire amount of Capital Expenditures permitted in any Fiscal
Year, so long as no Event of Default exists or would be caused thereby, Borrower may carry forward
to the immediately succeeding Fiscal Year only, 50% of such unutilized amount (with Capital
Expenditures made by Borrower in such succeeding Fiscal Year applied last to such unutilized
amount).

     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 and trust accounts) without prior
written notice to Second Lien Agent, unless Second Lien Agent, 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 Second
Lien Agent in such bank account and agrees to limit its set-off rights on terms satisfactory to
Second Lien Agent.

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     7.16. Sale and Leaseback.

     Not, and not permit any other Loan Party, to engage in any sale-leaseback, synthetic lease or
similar transaction involving any of its assets.

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 three Business 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.

          (a) Any default shall occur under the terms of the First Lien Debt Documents and such default
shall result in the acceleration of the maturity of the First Lien Debt or any “Event of Default”
shall occur under Section 8.1.1 of the First Lien Credit Agreement; or

          (b) Any default shall occur under the terms applicable to any other Debt of any Loan Party in
an aggregate amount (for all such Debt so affected and including undrawn committed or available
amounts and amounts owing to all creditors under any combined or syndicated credit arrangement)
exceeding $3,500,000 and such default shall (a) consist of the failure to pay such Debt when due,
whether by acceleration or otherwise or (b) accelerate the maturity of such Debt or permit the
holder or holders thereof, or any trustee or agent for such holder or holders, to cause such Debt
to become due and payable (or require Borrower 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 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 undismissed; 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, 6.1.5(a), 6.3(b), 6.5(a)(i),
6.9 and 7; (b) failure by Borrower to comply with or to perform any covenant set
forth in Section 6.1.7 and the continuance of such failure for 5 Business Days after notice
thereof by Second Lien Agent; or (c) any Loan Party to comply with or to perform any other

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provision of this Agreement or any other Loan Document applicable to it (and not constituting
an Event of Default under any other provision of this Section 8) and continuance of such
failure described in this clause (c) for 30 days after the earlier of (i) notice thereof by Second
Lien Agent and (ii) knowledge thereof by an Authorized Officer of the Borrower.

     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 when made or deemed to have been made.

     8.1.6. Pension Plans.

          (a) Institution of any steps by any Person to terminate a Pension Plan if as a result of such
termination 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 $1,000,000; (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 $1,000,000.

     8.1.7. Judgments.

          Final judgments which exceed an aggregate of $2,500,000 (exclusive of any amounts acknowledged
by the applicable insurer to be fully covered by insurance (less any applicable deductible)) shall
be rendered against any Loan Party and shall not have been paid, discharged or vacated or had
execution thereof stayed pending appeal within 30 days after entry or filing of such judgments.

     8.1.8. Invalidity of Collateral Documents.

          Any Collateral Document shall cease to be in full force and effect (other than in accordance
with its terms); or, except as permitted under any Collateral Document, any Lien securing any
Obligation shall cease to be a perfected Lien; 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 Subordination Provisions.

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

     8.1.10. Change of Control.

          (a) Sponsor and its Investment Affiliates shall collectively cease to, directly or indirectly,
(i) own and control at least 40% of the common equity interests of Holdings (or, following a
Holdings Transaction, the Borrower) or (ii) control that percentage of the outstanding voting
equity interests of Holdings (or, following a Holdings Transaction, the Borrower) necessary at all
times to elect a majority of

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the board of directors (or similar governing body) of Holdings or Borrower, as applicable, and
to direct the management policies and decisions of Holdings or Borrower, as applicable; (b) any
Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Securities Exchange Act of
1934 as in effect on the Closing Date) other than Sponsor or any of its Investment Affiliates shall
have acquired a greater beneficial ownership in Holdings’ (or, following a Holdings Transaction,
the Borrower’s) voting equity interests than that held collectively by Sponsor and its Investment
Affiliates; (c) a majority of Holdings’ (or, following a Holdings Transaction, the Borrower’s)
board of directors (or similar governing body) shall cease to consist of the directors (or similar
parties) of Holdings or Borrower, as applicable, on the Closing Date and other directors (or
similar parties) whose nomination for election to Holdings’ or Borrower’s, as applicable, board of
directors (or similar governing body) is recommended by at least a majority of the foregoing
described directors (or similar parties); (d) at any time prior to a Holdings Transaction, Holdings
shall cease to directly own and control 100% of each class of the outstanding equity interests of
Borrower (other than equity interests issued pursuant to the Borrower Stock Option Plan); (e)
Borrower shall cease to, directly or indirectly, own and control 100% of each class of the
outstanding equity interests of each Subsidiary (other than PAUSE Insurance); provided,
that no Event of Default shall exist under this clause (e) with respect to any non-Wholly-Owned
Subsidiary (other than PAUSE Insurance) prior to the redemption of the minority interests of such
non-Wholly-Owned Subsidiary so long as Borrower continues to, directly or indirectly, own and
control the percentage of such non-Wholly-Owned Subsidiary that it owned and controlled on the
Closing Date, or (f) a “Change of Control” or other similar event shall occur, as defined in, or
under, the Second Lien Debt or any Subordinated Debt or any documentation evidencing or otherwise
relating to Second Lien Debt or Subordinated Debt.

     8.1.11. Activities of Holdings.

          Holdings (i) conducts any business other than its ownership of equity securities of Borrower,
the issuance of equity of Holdings permitted hereunder, the conducting of audits, and the other
activities of Holdings permitted hereunder, or (ii) incurs any Debt or liabilities other than
liabilities incidental to the conduct of its business as permitted hereunder; provided,
that Holdings may consummate a Holdings Transaction.

     8.2. Remedies.

     If any Event of Default described in Section 8.1.3 shall occur, 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,
Second Lien Agent (upon the written request of Required Lenders) shall declare all or any part of
the Loans and other Obligations to be due and payable, whereupon 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. Second Lien Agent shall promptly advise
Borrower of any such declaration, but failure to do so shall not impair the effect of such
declaration. Notwithstanding the foregoing, the effect as an Event of Default of any event
described in Section 8.1.1 may only be waived by the written concurrence of each Lender,
and the effect as an Event of Default of any other event described in this Section 8 may be
waived by the written concurrence of Required Lenders.

Section 9.
Second Lien Agent.

     9.1.
Appointment; Authorization.

     Each Lender hereby irrevocably appoints, designates and authorizes Second Lien Agent to take
such action on its behalf under the provisions of this Agreement and each other Loan Document and
to exercise such powers and perform such duties as are expressly delegated to it by the terms of
this

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Agreement or any other Loan Document, together with such powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in
any other Loan Document, Second Lien Agent shall not have any duty or responsibility except those
expressly set forth herein, nor shall Second Lien Agent have or be deemed to have any fiduciary
relationship with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against Second Lien Agent.

     9.2. Delegation of Duties.

     Second Lien Agent may execute any of its duties under this Agreement or any other Loan
Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. Second Lien Agent shall not be
responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects with
reasonable care.

     9.3. Limited Liability.

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

     9.4. Reliance.

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

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     9.5. Notice of Default.

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

     9.6. Credit Decision.

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

     9.7. Indemnification.

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

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shall survive repayment of the Loans, cancellation of the Notes, any foreclosure under, or
modification, release or discharge of, any or all of the Collateral Documents, termination of this
Agreement and the resignation or replacement of Second Lien Agent.

     9.8. Second Lien Agent Individually.

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

     9.9. Successor Second Lien Agent.

     Second Lien Agent (a) may resign as Second Lien Agent upon 30 days’ prior notice to Lenders or
(b) may be removed by the Required Lenders upon notice to Second Lien Agent. If Second Lien Agent
resigns or is removed under this Agreement, Required Lenders shall appoint from among Lenders a
successor agent for Lenders. If no successor agent is appointed prior to the effective date of the
resignation or removal of Second Lien Agent, Second Lien Agent may appoint, after consulting with
Lenders and (so long as no Event of Default exists) Borrower, a successor agent from among Lenders.
Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall
succeed to all the rights, powers and duties of the retiring or removed Second Lien Agent and the
term “Second Lien Agent” shall mean such successor agent, and the retiring or removed Second Lien
Agent’s appointment, powers and duties as Second Lien Agent shall be terminated. After any
retiring or removed Second Lien Agent’s resignation or removal hereunder as Second Lien Agent, the
provisions of this Section 9 and Sections 10.4 and 10.5 shall continue to
inure to its benefit as to any actions taken or omitted to be taken by it while it was Second Lien
Agent under this Agreement. If no successor agent has accepted appointment as Second Lien Agent by
the date which is 30 days following a retiring or removed Second Lien Agent’s notice of resignation
or removal, the retiring or removed Second Lien Agent’s resignation or removal shall nevertheless
thereupon become effective and Lenders shall perform all of the duties of Second Lien Agent
hereunder until such time, if any, as Required Lenders appoint a successor agent as provided for
above.

     9.10. Collateral Matters; Guaranties.

     Lenders irrevocably authorize Second Lien Agent, at its option and in its discretion, (a) to
release any Lien granted to or held by Second Lien Agent under any Collateral Document (i) upon
Payment in Full of all Loans and all other Obligations, (ii) constituting property sold or to be
sold or disposed of as part of or in connection with any disposition permitted hereunder (it being
agreed and understood that Second Lien Agent may conclusively rely without further inquiry on a
certificate of an officer of Borrower as to the sale or other disposition of property being made in
compliance with this Agreement), or (iii) subject to Section 10.1, if approved, authorized
or ratified in writing by Required Lenders; (b) to release any party from its guaranty under the
Second Lien Guarantee and Collateral Agreement (i) upon Payment in Full of all Loans and all other
Obligations, or (ii) if such party was sold or is to be sold or disposed of as part of or in
connection with any disposition permitted hereunder (it being agreed and

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understood that Second Lien Agent may conclusively rely without further inquiry on a
certificate of an officer of Borrower as to the sale or other disposition being made in compliance
with this Agreement); or (c) to subordinate its interest in any Collateral to any holder of a Lien
on such Collateral which is permitted by clause (d)(i) or (d)(iii) of Section 7.2 (it being
understood that Second Lien Agent may conclusively rely on a certificate from Borrower in
determining whether the Debt secured by any such Lien is permitted by Section 7.1(b)).
Upon request by Second Lien Agent at any time, Lenders will confirm in writing Second Lien Agent’s
authority to release, or subordinate its interest in, particular types or items of Collateral
pursuant to this Section 9.10.

     9.11. First Lien Debt and Subordinated Debt.

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

     9.12. Limited Application to Loan Parties.

     Except with respect to Borrower’s consent rights under Section 9.9, the provisions of this
Section 9 are solely among the Second Lien Agent and, the Lenders, and the Borrower shall
not be considered bound thereby or a party thereto.

Section 10.
Miscellaneous.

     10.1.
Waiver; Amendments.

     No delay on the part of Second Lien Agent or any Lender in the exercise of any right, power or
remedy shall operate as a waiver thereof, nor shall any single or partial exercise by any of them
of any right, power or remedy preclude other or further exercise thereof, or the exercise of any
other right, power or remedy. No amendment, modification or waiver of, or consent with respect to,
any provision of this Agreement, the Notes or any of the other Loan Documents (or any subordination
and intercreditor agreement or other subordination provisions relating to any Subordinated Debt)
shall in any event be effective unless the same shall be in writing and approved by (i) the
Borrower and (ii) Lenders having aggregate Pro Rata Term Shares of not less than the aggregate Pro
Rata Term Shares expressly designated herein with respect thereto or, in the absence of such
designation as to any provision of this Agreement, by Required Lenders, and then any such
amendment, modification, waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given. No amendment, modification, waiver or consent shall increase
any Commitment, extend the date scheduled for payment of any principal of (other than amendments,
modifications, waivers and consents of Sections 2.10.2 and 2.10.3) or interest on the Loans
or any fees or other amounts payable hereunder or under the other Loan Documents or reduce the
principal amount of any Loan, the amount or rate of interest thereon (provided, that Required
Lenders may rescind an imposition of default interest pursuant to Section 2.7.1) or any fees or
other amounts payable hereunder or under the other Loan Documents, without, in each case, the
consent of each Lender affected thereby. No amendment, modification, waiver or consent shall
release any party from its guaranty under the Second Lien Guarantee and Collateral Agreement or all
or any substantial part of the Collateral granted under the Collateral Documents, the definition of
Required Lenders, change any provision of this Section 10.1, amend the provisions of Section 2.12.2
or reduce the aggregate Pro Rata

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Term Share required to effect any amendment, modification, waiver or consent, without, in each
case, the consent of all Lenders. No provision of Section 9 or other provision of this Agreement
affecting Second Lien Agent in its capacity as such shall be amended, modified or waived without
the consent of Second Lien Agent.

     10.2. Notices.

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

     10.3. Computations.

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

     10.4. Costs; Expenses.

     Borrower agrees to pay promptly after demand all reasonable out-of-pocket costs and expenses
of Second Lien Agent solely in Second Lien Agent’s capacity as Second Lien Agent hereunder
(including Legal Costs) in connection with the preparation, execution, syndication, delivery and
administration (including perfection and protection of Collateral) of this Agreement, the other
Loan Documents and all other documents provided for herein or delivered or to be delivered
hereunder or in connection herewith (including any proposed or actual amendment, supplement or
waiver to any Loan Document), and all reasonable out-of-pocket costs and expenses (including Legal
Costs) incurred by Second Lien Agent and each Lender, solely in their capacities as Second Lien
Agent or Lenders hereunder, 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 Second Lien Agent and Lenders harmless
from all liability for, any fees of Borrower’s auditors in connection with

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any reasonable exercise by Second Lien Agent and Lenders of their rights pursuant to
Section 6.2. All Obligations provided for in this Section 10.4 shall survive
repayment of the Loans, cancellation of the Notes and termination of this Agreement).
Notwithstanding the foregoing, no Lender (solely in its capacity as a direct or indirect equity
holder of Holdings) shall have any rights under this Section.

     10.5. Indemnification by Borrower.

     In consideration of the execution and delivery of this Agreement by Second Lien Agent and
Lenders and the agreement to extend the Commitments provided hereunder, Borrower hereby agrees to
indemnify, exonerate and hold Second Lien Agent, each Lender and each of the officers, directors,
employees, Affiliates and agents of Second Lien Agent and each Lender, solely in their capacities
as Second Lien Agent or Lender under this Agreement (in such capacity, each a “Lender
Party”) free and harmless from and against any and all actions, causes of action, suits,
losses, liabilities, damages and expenses, including Legal Costs (collectively, the
“Indemnified Liabilities”), incurred by Lender Parties or any of them as a result of, or
arising out of, or relating to (a) any tender offer, merger, purchase of equity interests, purchase
of assets (including the Related Transactions) or other similar transaction financed or proposed to
be financed in whole or in part, directly or indirectly, with the proceeds of any of the Loans, (b)
the use, handling, release, emission, discharge, transportation, storage, treatment or disposal of
any hazardous substance at any property owned or leased by Borrower or any 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 any Lender
Party, except to the extent any such Indemnified Liabilities result from the applicable Lender
Party’s own gross negligence, bad faith or willful misconduct as determined by a court of competent
jurisdiction. If and to the extent that the foregoing undertaking may be unenforceable for any
reason, Borrower hereby agrees to make the maximum contribution to the payment and satisfaction of
each of the Indemnified Liabilities which is permissible under applicable law. All Obligations
provided for in this Section 10.5 shall survive repayment of the Loans, cancellation of the
Notes, expiration or termination of the Letters of Credit, any foreclosure under, or any
modification, release or discharge of, any or all of the Collateral Documents and termination of
this Agreement. Notwithstanding the foregoing, no Lender (solely in its capacity as a direct or
indirect equity holder of Holdings) shall have any rights under this Section.

     10.6. Marshaling; Payments Set Aside.

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

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     10.7. Nonliability of Lenders.

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

     10.8. Assignments; Participations.

     10.8.1. Assignments.

          (a) Any Lender may at any time assign to one or more Persons (any such Person, an
“Assignee”) all or any portion of such Lender’s Loans and Commitments, with the prior
written consent of Second Lien Agent and, so long as no Event of Default has occurred and is
continuing, the Borrower, such consent not to be unreasonably withheld or delayed by Borrower;
provided, that no such consent shall be required for an assignment by a Lender to a Lender
or an Affiliate or Related Fund of a Lender. Except as Second Lien Agent may otherwise agree, any
such assignment (other than any assignment by a Lender to a Lender or an Affiliate or Related Fund
of a Lender) shall be in a minimum aggregate amount equal to $1,000,000 or, if less, the Commitment
or the principal amount of the Loan being assigned or other amounts acceptable to Second Lien Agent
and Borrower, it being agreed that concurrent assignments to entities that are Related Funds after
giving effect thereto will be treated as one assignment for purposes of such minimum assignment
amounts. Borrower and Second Lien Agent shall be entitled to continue to deal solely and directly
with such Lender in connection with the interests so assigned to an Assignee until Second Lien
Agent shall have received and accepted an effective Assignment Agreement executed, delivered and
fully completed by the applicable parties thereto and a processing fee of $3,500 to be paid (and
not reimbursed by the Loan Parties) by the Lender to whom such interest is assigned; provided, that
no such fee shall be payable in connection with any assignment by a Lender to a Lender or an
Affiliate or Related Fund of a Lender and further provided that only one such fee shall be payable
in connection with concurrent assignments to two or more entities that are Related Funds after
giving effect 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 Sections (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 10.8.1 shall
be treated as the sale of a participation under Section 10.8.2.

          (b) From and after the date on which the conditions described above have been met, (i) such
Assignee shall be deemed automatically to have become a party hereto and, to the extent that rights
and obligations hereunder have been assigned to such Assignee pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder and (ii) the assigning
Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to
such Assignment Agreement, shall be released from its rights (other than its indemnification
rights) and obligations hereunder. Upon the request of the Assignee (and, as applicable, the
assigning Lender) pursuant to an effective Assignment Agreement and conditioned upon the return of
the existing Note to Borrower marked “Exchanged”, Borrower shall execute and deliver to Second Lien
Agent for delivery to the

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Assignee (and, as applicable, the assigning Lender) a Note in the principal amount of the
Assignee’s Loans (and, as applicable, a Note in the principal amount of the Loans retained by the
assigning Lender). Each such Note shall be dated the effective date of such assignment. Upon
receipt by the assigning Lender of such Note, the assigning Lender shall return to Borrower any
prior Note held by it.

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

          (d) Notwithstanding the foregoing provisions of this Section 10.8.1 or any other
provision of this Agreement, any Lender may at any time assign all or any portion of its Loans and
its Note as collateral security to a Federal Reserve Bank or, as applicable, to such Lender’s
trustee or other representative for the benefit of its investors (but no such assignment shall
release any Lender from any of its obligations hereunder).

          (e) For purposes of this Section 10.8.1, a “Related Fund” shall mean, with
respect to any Lender, a fund or other investment vehicle that invests in commercial loans and is
managed by the same investment advisor as such Lender or by an affiliate of such investment
advisor.

          (f) Upon the first occurrence of an Event of Default under Section 8.1.1 following the
Closing Date, any Lender holding more than 45% of the aggregate outstanding principal amount of the
Second Lien Term Loans on the date of such Event of Default (the “Call Lender”) shall have
the right, exercisable within five (5) Business Days of the occurrence of such Event of Default, to
purchase up to $3 million of the Second Lien Term Loans from Madison and each other Lender that
elects to participate in such purchase in accordance with this Section 10.8.1(f). If the
Call Lender elects to exercise its rights hereunder, the Call Lender shall deliver to Second Lien
Agent and each Lender an irrevocable notice (the “Call Notice”) indicating the principal
amount that the Call Lender intends to purchase pursuant to this Section 10.8.1(f) (the
“Call Transfer”). Thereafter, each Lender (including Madison) shall have the right,
exercisable upon written notice to the Call Lender (such notice to include the aggregate principal
amount such Lender wishes to sell under its right to participate) within five (5) Business Days
after receipt of the Call Notice, to participate in the Call Transfer. Each electing Lender (a
“Participant”) may sell all or any part of the Second Lien Term Loans held by it equal to
the product obtained by multiplying (i) the aggregate principal amount of the Second Lien Term
Loans covered by the Call Notice by (ii) a fraction, the numerator of which is the aggregate
principal amount of the Second Lien Term Loans held by such Participant at the time of the Call
Notice and the denominator of which is the aggregate principal amount of the Second Lien Term Loans
held by all Participants at the time of the Call Notice. The aggregate principal amount of the
Second Lien Term Loans required to be sold by Madison shall be reduced by the aggregate principal
amount of Second Lien Term Loans being sold by the Participants other than Madison. The Call
Lender, Madison, if applicable, and each Participant shall effect its participation in the Call
Transfer by consummating an assignment of the Second Lien Term Loans (the “Transferred
Loans”) in accordance with the other provisions of this Section 10.8.1 for a purchase
price equal to the outstanding principal amount of the Transferred Loans being assigned plus any
accrued but unpaid interest on the Transferred Loans and all accrued but unpaid fees owed to such
Participant with respect to the Transferred Loans and any other amounts payable to such Participant
with respect to the Transferred Loans under this Agreement.

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     10.8.2. Participations.

          Any 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 a Lender of a participating interest to a Participant, (a) such Lender’s obligations
hereunder shall remain unchanged for all purposes, (b) Borrower and Second Lien Agent shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations hereunder and (c) all amounts payable by Borrower shall be determined as if such Lender
had not sold such participation and shall be paid directly to such Lender. No Participant shall
have any direct or indirect voting rights hereunder except with respect to any event described in
Section 10.1 expressly requiring the unanimous vote of all Lenders or, as applicable, all
affected Lenders. Each Lender agrees to incorporate the requirements of the preceding sentence
into each participation agreement which such Lender enters into with any Participant. Borrower
agrees that if amounts outstanding under this Agreement are due and payable (as a result of
acceleration or otherwise), each Participant shall be deemed to have the right of set-off in
respect of its participating interest in amounts owing under this Agreement to the same extent as
if the amount of its participating interest were owing directly to it as a Lender under this
Agreement; provided that such right of set-off shall be subject to the obligation of each
Participant to share with Lenders, and Lenders agree to share with each Participant, as provided in
Section 2.12.5. Borrower also agrees that each Participant shall be entitled to the
benefits of Section 3 as if it were a Lender (provided that no Participant shall receive
any greater compensation pursuant to Section 3 than would have been paid to the
participating Lender if no participation had been sold).

     10.9. Confidentiality.

     Second Lien Agent and each Lender agree to use commercially reasonable efforts (equivalent to
the efforts Second Lien Agent or such 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 Second Lien Agent and each Lender may disclose
such information (a) to Persons employed or engaged by Second Lien Agent or such Lender or any of
their Affiliates in evaluating, approving, structuring or administering the Loans and the
Commitments; (b) to any pledgee under Section 10.8.1(d), any assignee or participant or
potential assignee or participant that has agreed to comply with the covenant contained in this
Section 10.9 (and any such assignee or participant or potential assignee or participant may
disclose such information to Persons employed or engaged by them as described in clause (a) above);
(c) as required or requested by any federal or state regulatory authority or examiner, or any
insurance industry association, or as reasonably believed by Second Lien Agent or such Lender to be
compelled by any court decree, subpoena or legal or administrative order or process; (d) as, on the
advice of Second Lien Agent’s or such Lender’s counsel, is required by law; (e) in connection with
the exercise of any right or remedy under the Loan Documents or in connection with any litigation
to which Second Lien Agent or such Lender is a party; (f) to any nationally recognized rating
agency that requires access to information about a Lender’s investment portfolio in connection with
ratings issued with respect to such Lender; (g) that ceases to be confidential through no fault of
Second Lien Agent or any Lender; (h) to a Person that is an investor or prospective investor in a
Securitization (as defined below) that agrees that its access to information regarding 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; (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 and who agrees to treat such information as confidential; or (j) to a nationally
recognized rating agency that requires access to information regarding the Loans Parties, the Loans
and the Loan Documents in connection with ratings issued with respect to a Securitization. For
purposes of this Section 10.9, “Securitization” means a private offering by a
Lender of securities which represent an interest in, or

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which are collateralized, in whole or in part, by the Loans. In each case where Second Lien
Agent or Lender, as applicable, is compelled to disclose the confidential information, such Second
Lien Agent or Lender, as applicable, shall use commercially reasonable efforts to notify the
Borrower prior to such disclosure; provided, that the failure to provide such notice shall not
affect the right of such Second Lien Agent or Lender, as applicable, to disclose the confidential
information pursuant to clauses (c) or (d) above. Notwithstanding the foregoing, Borrower consents
to the publication by Second Lien Agent or any Lender of a tombstone or similar advertising
material relating to the financing transactions contemplated by this Agreement, and Second Lien
Agent reserves the right to provide to industry trade organizations information necessary and
customary for inclusion in league table measurements.

     10.10. Captions.

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

     10.11. Nature of Remedies.

     All Obligations of Borrower and rights of Second Lien Agent and Lenders expressed herein or in
any other Loan Document shall be in addition to and not in limitation of those provided by
applicable law. No failure to exercise and no delay in exercising, on the part of Second Lien
Agent or any Lender, any right, remedy, power or privilege hereunder, shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege.

     10.12. Counterparts.

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

     10.13. Severability.

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

     10.14. Entire Agreement.

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

     10.15. Successors; Assigns.

     This Agreement shall be binding upon Borrower, Lenders and Second Lien Agent and their
respective successors and assigns, and shall inure to the benefit of Borrower, Lenders and Second
Lien Agent and the successors and assigns of Lenders and Second Lien Agent. No other Person shall
be a

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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 Second Lien Agent and each Lender.

     10.16. Governing Law.

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

     10.17. Forum Selection; Consent to Jurisdiction.

     ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF
ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT
SECOND LIEN AGENT’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 ILLINOIS AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. BORROWER FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS. BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM
THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     10.18. Waiver of Jury Trial.

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

     10.19. Intercreditor Agreement.

     Reference is made herein for all purposes to that certain Intercreditor Agreement dated as of
October 27, 2005 (as amended, restated, supplemented, modified or replaced from time to time, the
“Intercreditor Agreement”), among the Grantors, Madison Capital Funding LLC (“Madison”), as
First Lien Agent (as defined therein), and Second Lien Agent. Notwithstanding anything to the
contrary herein, until such time as the Discharge of the First Lien Obligations (as defined in the
Intercreditor Agreement) has occurred, the provisions of this Agreement are subject to the terms,
covenants, conditions

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and provisions of the Intercreditor Agreement, which, among other things, provide that the
interests of Second Lien Agent in and to the Collateral shall be inferior, and subordinate to the
interests of First Lien Agent in accordance with the Intercreditor Agreement. In the event of any
inconsistency between the terms and provisions of this Agreement and either the Intercreditor
Agreement the terms, covenants, conditions and provisions of the Intercreditor Agreement shall
prevail until such time as the Discharge of the First Lien Obligations has occurred.

[signature pages follow]

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

	 	 	 	 	 	 	 
	 	 	AMERICAN WHOLESALE INSURANCE GROUP, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ M. Steven DeCarlo
 

	 	 
	 
	 

	 	
Title:
	 	
 

Chief Executive Officer and President
	 	 
	 
	 	 	 	 	 	 
	 	 	MADISON CAPITAL FUNDING LLC,

as Second Lien Agent and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Trevor J. Clark
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

[Signature Page to Second Lien Credit Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]