December 11, 2006

 

 

Integrated Electrical Services, Inc.

1800 West Loops South, Suite 500

Houston, Texas 77027

Attn: Chief Financial Officer

 

Re:

Amendment to Section 9.3.2 of the Loan Agreement

 

Reference is hereby made to that certain Loan and Security Agreement, dated as
of May 12, 2006, by and among Integrated Electrical Services, Inc., a Delaware
corporation (“Parent”), the other credit parties signatory thereto (the “Credit
Parties”), the financial institutions from time to time party thereto (the
“Lenders”) and Bank of America, N.A., as collateral and administrative agent for
the Lenders (in such capacity, “Agent”) (as amended or otherwise modified from
time to time, the “Loan Agreement”). Unless otherwise indicated, all terms used
herein shall have the same meanings as in the Loan Agreement.

Parent, on behalf of itself and the other Credit Parties, has requested that
Agent and Lenders agree that effective September 30, 2006, Section 9.3.2 of the
Loan Agreement be amended so that the relevant dollar amount for the testing
period October 1, 2005, through September 30, 2006 shall be “ --$22,000,000.”

Subject to the terms and conditions set forth herein, Agent and Lenders hereby
agree to the above-described amendment to Section 9.3.2 of the Loan Agreement so
that the relevant dollar amount for the testing period October 1, 2005 through
September 30, 2006 shall be “ -- $22,000,000.”

Except as expressly set forth herein, all of the other terms, provisions and
conditions of the Loan Agreement, the other Loan Documents and any other
agreements shall remain and continue in full force and effect.

Parent and the other Credit Parties are hereby notified that irrespective of
(i) any waivers previously granted by Agent and Lenders regarding the Loan
Agreement and the other Loan Documents, (ii) any previous failures or delays of
Agent and Lenders in exercising any right, power or privilege under the Loan
Agreement or the other Loan Documents, or (iii) any previous failures or delays
of Agent and Lenders in the monitoring or in the requiring of compliance by
Parent and the other Credit Parties with the duties, obligations, and agreements
of Parent and the other Credit Parties in the Loan Agreement and the other Loan
Documents, hereafter Parent and the other Credit Parties will be expected to
comply strictly with their respective duties, obligations and agreements under
the Loan Agreement and the other Loan Documents.

This letter (i) shall not apply to or constitute a consent to any future
amendment to any other provision of the Loan Agreement or any other Loan
Document or a waiver of any past, present or future violation of any provision
of the Loan Agreement or any other Loan Document, and (ii) shall not directly or
indirectly in any way whatsoever (a) impair, prejudice, or otherwise adversely
affect Agent’s or any Lender’s right at any time to exercise any right,
privilege or remedy in connection with the Loan Agreement, any other Loan
Document; any other agreement or any other contract or instrument, (b) amend or
alter any other provision of the Loan Agreement, any other Loan Document, any
other agreement, or any other contract or instrument, or (c) constitute any
course of dealing or other basis for altering any obligation or right of any
party to the Loan Agreement, any other Loan Document, any other agreement, or
any other contract or instrument.

 

 

The provisions of this letter agreement as to the above-described amendment to
Section 9.3.2 of the Loan Agreement shall take precedence over the comparable
provisions of the October 13, 2006 letter agreement among Agent, Lenders and
Credit Parties dealing with amending such Section 9.3.2.

Notwithstanding any provision of this letter to the contrary, this letter shall
not be directly or indirectly effective against Agent and Lenders for any
purpose unless and until Agent receives a copy of this letter which has been
duly signed by Parent on behalf of itself and the other Credit Parties.

Your very truly,

 

BANK OF AMERICA, N.A., as Agent and a Lender

 

By:______________________________________

 

Name:____________________________________

Title:____________________________________

 

WELLS FARGO FOOTHILL, LLC, as a Lender

 

 

By:______________________________________

 

Name:____________________________________

Title:____________________________________

 

THE CIT GROUP/BUSINESS CREDIT, INC., as a Lender

 

By:______________________________________

Name:____________________________________

Title:____________________________________

 

 

ACCEPTED AND AGREED BY:

 

INTEGRATED ELECTRICAL SERVICES, INC.

ON BEHALF OF ITSELF AND EACH OF ITS SUBSIDIARIES

 

By:______________________________________

Name:____________________________________

Title:_____________________________________