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Exhibit 10.6    
    

 
 

SECOND AMENDMENT TO
  AMENDED RESTATED CREDIT AGREEMENT    
    

        THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (the "Amendment") is made and entered into
effective as of June 10, 2004 by and among COMFORT SYSTEMS USA, INC., Delaware corporation ("Borrower"); BANK OF TEXAS NA, individually and as Administrative Agent ("Administrative
Agent"); HIBERNIA NATIONAL BANK, as Documentation Agent; and the Lenders ("Lenders") and Guarantors ("Guarantors") set forth on the signature pages hereto,. 

R E C I T A L S:  

        WHEREAS, Borrower, the Administrative Agent, the Document Agent and the Lenders entered into an Amended and Restated Credit Agreement dated December 31,
2003, as amended by the First Amendment to Amended and Restated Credit Agreement dated as of May 12, 2004 (the "Credit Agreement"), pursuant to
which Borrower amended and restated the Prior Credit Documents; and 

        WHEREAS,
Borrower, Administrative Agent, Document Agent, Lenders and Guarantors desire to amend the Credit Agreement as herein set forth to reflect a scheduled partial repayment of the
Term Loan in the amount of $500,000 and to permit Lenders to make assignments that are not pro rata between the revolving and term facilities and to increase the revolving facility by $5,000,000. 

        NOW
THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows: 

        1.     Definitions.    Except as otherwise provided below, unless the context hereof indicates otherwise, all
capitalized terms used herein shall have the same meaning as such capitalized terms are defined in the Credit Agreement. 

        2.     Amendments to the Credit Agreement.    The Credit Agreement is, subject to the satisfaction of the conditions
precedent set forth in Section 3 hereof, hereby amended as follows: 

        (a)   Definitions.    Article I of the Credit Agreement is hereby amended by: 

	(i)
	deleting
the definition of the term "Percentage Share";

	(ii)
	amending
the definitions of the following terms to read as follows: 

        "Required
Lenders" means Lenders having Aggregate Percentage Shares that equal or exceed sixty-six and two-thirds percent (662/3%)." 

        "'Revolving
Loan Commitment' means as to any Lender the commitment to make its Revolving Loan Percentage Share of Revolving Credit Advances or incur its Revolving Loan Percentage Share
of Letter of Credit Obligations as set forth on the signature pages hereto, or in the most recent Assignment and Acceptance, if any, executed by such Lender, as such amount may be adjusted, if at all,
from time to time in accordance with this Agreement." 

        "'Term
Loan Commitment' means as to any Term Lender the commitment of such Term Lender to makes its Term Loan Percentage Share of the Term Loans as set forth on the signature pages
hereto or in the most recent Assignment and Acceptance, if any, executed by such Lender, as such amount may be adjusted from time to time in accordance with this Agreement."; and 

 

	(iii)
	by
adding the following new defined terms and their definitions in proper alphabetical sequence as follows: 

"'Aggregate
Percentage Share' means as to any Lender the percentage obtained by dividing (i) the sum of the unpaid principal balance of such Lender's Loans at the time in question plus the
Matured LC Obligations which such Lender has funded pursuant to Section 2.11(c) plus the portion of the Maximum Drawing Amount which such Lender might be obligated to fund under
Section 2.11(c), by (ii) the sum of the aggregate unpaid principal balance of all Loans at such time plus the aggregate amount of LC Obligations outstanding at such time. 

"'Revolving
Loan Percentage Share' means as to any Lender the percentage set forth opposite such Lender's name on the signature pages hereto, or in the most recent Assignment and Acceptance, if any,
executed by such Lender, under the heading 'Revolving Loan Percentage Share."' 

"'Term
Loan Percentage Share' means as to any Lender the percentage set forth opposite such Lender's name on the signature pages hereto, or in the most recent Assignment and Acceptance, if any,
executed by such Lender, under the heading 'Term Loan Percentage Share."' 

        (b)   Cover Page.    The Cover Page of the Credit Agreement is hereby amended by deleting the number "$50,000,000"
and inserting "$54,500,000" in lieu thereof. 

        (c)   Section 2.1(a)
is amended by inserting the words "Term Loan" immediately preceding the words "Percentage Share" in each instance in which such words appear
therein. 

        (d)   Section 2.1(b)
is amended by inserting the words "Revolving Loan" immediately preceding the words "Percentage Shares" in each instance in which such words appear
therein. 

        (e)   Section 2.5(c))
is amended by inserting the words "Revolving Loan" immediately preceding the words "Percentage Share" in each instance in which such words appear
therein. 

        (f)    Section 2.11(c)
is amended by inserting the words "Revolving Loan" immediately preceding the words "Percentage Share" in each instance in which such words appear
therein. 

        (g)   Section 2.11(d)
is amended by inserting the words "Revolving Loan" immediately preceding the words "Percentage Share" in each instance in which such words appear
therein. 

        (h)   Section 2.12
is amended by inserting the words "Revolving Loan" immediately preceding the words "Percentage Shares" in each instance in which such words appear
therein. 

        (i)    Section 9.4
is amended by inserting the word "Aggregate" immediately preceding the words "Percentage Share" in each instance in which such words appear therein. 

        (j)    Section 10.1(a)
is amended by inserting the word "Aggregate" immediately preceding the words "Percentage Shares" in each instance in which such words appear
therein. 

        (k)   Section 10.5(a)
is amended by inserting the word "Aggregate" immediately preceding the words "Percentage Shares" in each instance in which such words appear
therein. 

        (l)    Section 10.5(c)(i) is
amended to read as follows: 

        "(i) Any
assignment of Revolving Loans owing to the assignor Lender shall also apply to the unused portion of the assignor Lender's Revolving Loan Commitments, and any assignment
of Revolving Loan Commitments of the assignor Lender shall also apply to the Revolving Loans owing to such assignor Lender, so that after such assignment is made (A) the assignor Lender shall
hold Revolving Loans in amount equal to its Revolving Loan Percentage Share (as specified in the relevant Assignment and Acceptance) of all outstanding Revolving Loans and shall be 

2

 

committed
to make its Revolving Loan Percentage Share (as specified in the relevant Assignment and Acceptance) of all future Revolving Loans, (B) the assignee shall hold Revolving Loans in an
amount equal to its Revolving Loan Percentage Share (as specified in the relevant Assignment and Acceptance) of all outstanding Revolving Loans and shall be committed to make its Revolving Loan
Percentage Share (as specified in the relevant Assignment and Acceptance) of all future Revolving Loans, and (C) except in the case of an assignment of the entire remaining amount of the
assignor's Revolving Loan Percentage Share of the aggregate Revolving Loan Commitments, both assignor's and assignee's Revolving Loan Percentage Share of the aggregate Revolving Loan Commitments after
giving effect to such assignment shall equal or exceed $2,500,000." 

        (m)  Section 10.5(c)(ii) is
amended by inserting the words "Term Loan Percentage Shares and Revolving Loan" immediately preceding the words "Percentage Shares"
in each instance in which such words appear therein. 

        (n)   Section 10.5(f)
is amended by inserting the words "Term Loan Percentage Shares and Revolving Loan" immediately preceding the words "Percentage Shares" in each
instance in which such words appear therein. 

        (o)   Section 10.14
is amended by: 

        (i)    deleting
the phrase "shall be in the form attached hereto as Exhibit 10.14 and" in the second sentence thereof; and 

        (ii)   deleting
the term "Percentage Shares" in the penultimate sentence of Section 10.14 and adding the following in lieu thereof: 

        "Term
Loan Percentage Shares and Revolving Loan Percentage Shares, as the case may be." 

3

 

        (p)   Schedule 3.1,
Lenders Schedule, is hereby amended in its entirety to read as follows: 

 
 

"SCHEDULE 3.1
  
  LENDERS SCHEDULE    
    

	Domestic Lending Office
 
	 	Term Loan

Percentage

Share
	 	Revolving Loan

Percentage

Share
	 	Term Loan

Commitment
	 	Revolving Loan

Commitment
	 	Total Commitment

	Bank of Texas NA

5 Houston Center

1401 McKinney, Suite 1650

Houston, Texas 77010

Telephone: (713) 289-5823

Fax: (713) 289-5825	 	29.7368	%	26.6667	%	$	2,825,000	 	$	12,000,000	 	$	14,825,000
	

Hibernia National Bank

1800 Bering Drive, Suite 510,

Houston, Texas 77057

Telephone: (713) 706-5420

Fax: (713) 706-499	
 	

19.4737	
%	

17.7778	
%	
$	

1,850,000	
 	
$	

8,000,000	
 	
$	

9,850,000
	

Bank of Scotland

565 Fifth Avenue

New York, NY 10017

Telephone: (212) 450-0837

Fax: (212) 479-2806	
 	

20.0000	
%	

17.7778	
%	
$	

1,900,000	
 	
$	

8,000,000	
 	
$	

9,900,000
	

FirstCapital Bank, ssb

5433 Westheimer, Suite 100

Houston, Texas 77056

Telephone: (713) 386-2460

Fax: (713) 840-1332	
 	

15.0000	
%	

13.3333	
%	
$	

1,425,000	
 	
$	

6,000,000	
 	
$	

7,425,000
	

First Bank & Trust

8820 Westheimer

Houston, Texas 77063

Telephone:

Fax:	
 	

7.3684	
%	

15.1111	
%	
$	

700,000	
 	
$	

6,800,000	
 	
$	

7,500,000
	

RZB Finance LLC

1133 Avenue of the Americas

16th Floor

New York, NY 10036

Telephone:

Fax:	
 	

8.4211	
%	

9.3333	
%	
$	

800,000	
 	
$	

4,200,000	
 	
$	

5,000,000

"

        3.     Conditions Precedent to Effectiveness of Amendment.    This Amendment shall become effective when, and only
when, the Administrative Agent shall have received all of the following documents, 

4

 

each
document (unless otherwise indicated) being dated the date hereof, in form and substance reasonably satisfactory to the Administrative Agent: 

        (a)   Counterparts
of this Amendment duly executed by Borrower, Guarantors and Lenders; 

        (b)   A
copy of the resolutions approving the Credit Agreement as amended by this Amendment, and authorizing the transactions contemplated herein or therein duly adopted by
the Board of Directors of the Borrower, accompanied by a certificate of the duly authorized Secretary of Borrower, that such copy is a true and correct copy of the resolutions duly adopted by the
Board of Directors of the Borrower and have not been amended, modified or revoked in any respect and are in full force and effect as of the date hereof; 

        (c)   A
copy of the resolutions approving the Credit Agreement as amended by this Amendment, and authorizing the transactions contemplated herein or therein duly adopted by
the Board of Directors of each Guarantor, accompanied by a certificate of the duly authorized Secretary of Guarantor, that such copy is a true and correct copy of the resolutions duly adopted by the
Board of Directors of such Guarantor and have not been amended, modified or revoked in any respect and are in full force and effect as of the date hereof; 

        (d)   Replacement
Notes made and duly executed by the Borrower in favor of Bank of Texas NA and Hibernia National Bank to reflect the new Revolving Loan Commitments of and the
new amounts of the Term Loans held by said Lenders; 

        (e)   Notes
made and duly executed by the Borrower in favor of First Bank & Trust and RZB Finance LLC to reflect the new Revolving Loan Commitments of and the new
amounts of Term Loans held by said Lenders; 

        (f)    Payment
by Borrower of the reasonable fees and expenses of counsel to the Administrative Agent connection with the preparation and negotiation of this Amendment and all
documents and instruments contemplated hereby; and 

        (g)   The
legal opinion of counsel to Borrower and Guarantors, in form and substance reasonably satisfactory to the Administrative Agent and its counsel. 

        4.     Representations and Warranties of Borrower.    Borrower represents and warrants as follows: 

        (a)   Borrower
and Guarantors are each duly authorized and empowered to execute, deliver and perform this Amendment and all other instruments referred to or mentioned herein
to which it is a party, and all action on its part requisite for the due execution, delivery and the performance of this Amendment has been duly and effectively taken. 

        (b)   After
giving affect to this Amendment, the representations and warranties contained in the Credit Agreement, as amended hereby, and any other Loan Documents executed in
connection herewith or therewith are true in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that such representation or warranty
was made as of a specific date, in which case such representation or warranty was true in all material respects when made; 

        (c)   After
giving affect to this Amendment, no event has occurred and is continuing which constitutes a Default; and 

        (d)   When
duly executed and delivered, each of this Amendment and the Credit Agreement will be legal and binding obligations of Borrower, enforceable in accordance with their
respective terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors' rights and by equitable principles of general
application. 

5

 

        5.     Reference to and Effect on the Loan Documents. 

        (a)   Upon
the effectiveness of this Amendment, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import, and each
reference in the Loan Documents shall mean and be a reference to the Credit Agreement as amended hereby. 

        (b)   Except
as specifically amended above, the Credit Agreement, the Notes, and all other Loan Documents shall remain in full force and effect and are hereby ratified and
confirmed. Without limiting the generality of the foregoing, the Security Documents and all collateral described therein do and shall continue to secure the payment of all obligations of Borrower
under the Credit Agreement as amended hereby, the Notes, and under the Security Documents. 

        (c)   The
execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of Lender
under any of the Security Documents, nor constitute a waiver of any provision of any of the Security Documents. 

        6.     Costs and Expenses.    Borrower agrees to pay on demand all costs and expenses of Lenders in connection with the
preparation, reproduction, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, including the reasonable fees and
out-of-pocket expenses of counsel for Lenders. In addition, Borrower shall pay any and all fees payable or determined to be payable in connection with the execution and
delivery, filing or recording of this Amendment and the other instruments and documents to be delivered hereunder, and agrees to save Lenders harmless from and against any and all liabilities with
respect to or resulting from any delay in paying or omission to pay such fees. 

        7.     Execution in Counterparts.    This Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same
instrument. 

        8.     Governing Law.    This Amendment shall be governed by and construed in accordance with the laws of the State of
Texas. 

        9.     Final Agreement.    THIS WRITTEN AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

        IN
WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed in multiple counterparts, each of which is an original instrument for all purposes, all as of the
day and year first above written. 

	 	 	 	 	 	BORROWER:
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA, INC.
	

 	
 	
 	

 	
 	

By:	
 	

/s/  J. GORDON BEITTENMILLER      
 J. Gordon Beittenmiller

Executive Vice President and

Chief Financial Officer
	 	 	 	 	 	 	 	 

6

 

	

 	
 	
 	

 	
 	
LENDERS:
	

Term Loan Commitment:	
 	
$	

2,825,000	
 	

BANK OF TEXAS NA,
	Revolving Loan Commitment:	 	$	12,000,000	 	Administrative Agent and Lender
	Term Loan Percentage Share:	 	 	29.7368	%	 	 	 
	Revolving Loan Percentage Share:	 	 	26.6667	%	 	 	 
	 	 	 	 	 	By:	 	/s/  H. GALE SMITH, JR.      
 H. Gale Smith, Jr.

Senior Vice President
	

Term Loan Commitment:	
 	
$	

1,850,000	
 	

HIBERNIA NATIONAL BANK,
	Revolving Loan Commitment:	 	$	8,000,000	 	 	 	Documentation Agent,
	Term Loan Percentage Share:	 	 	19.4737	%	 	 	LC Issuer and Lender
	Revolving Loan Percentage Share:	 	 	17.7778	%	 	 	 
	

 	
 	
 	

 	
 	

By:	
 	

/s/  MICHAEL MEISS      
 Michael Meiss

Senior Vice President
	

Term Loan Commitment:	
 	
$	

1,900,000	
 	

BANK OF SCOTLAND, Lender
	Revolving Loan Commitment:	 	$	8,000,000	 	 	 	 
	Term Loan Percentage Share:	 	 	20.0000	%	 	 	 
	Revolving Loan Percentage Share:	 	 	17.7778	%	 	 	 
	 	 	 	 	 	By:	 	/s/  JOSEPH FRATUS      
 Joseph Fratus

First Vice President
	

Term Loan Commitment:	
 	
$	

1,425,000	
 	

FirstCapital Bank, ssb, Lender
	Revolving Loan Commitment:	 	$	6,000,000	 	 	 	 
	Term Loan Percentage Share:	 	 	15.0000	%	 	 	 
	Revolving Loan Percentage Share:	 	 	13.3333	%	 	 	 
	 	 	 	 	 	By:	 	/s/  WILLIAM H. FOWLER      
 William H. Fowler

Senior Vice President
	

Term Loan Commitment:	
 	
$	

800,000	
 	

RZB FINANCE LLC, Lender
	Revolving Loan commitment:	 	$	4,200,000	 	 	 	 
	Term Loan Percentage Share:	 	 	8.4211	%	 	 	 
	Revolving Loan Percentage Share:	 	 	9.3333	%	 	 	 
	 	 	 	 	 	By:	 	/s/            

	

 	
 	
 	

 	
 	

By:	
 	

/s/            

7

 

	

Term Loan Commitment:	
 	
$	

700,000	
 	

FIRST BANK & TRUST, Lender
	Revolving Loan Commitment:	 	$	6,800,000	 	 	 	 
	Term Loan Percentage Share:	 	 	7.3684	%	 	 	 
	Revolving Loan Percentage Share:	 	 	15.1111	%	 	 	 
	 	 	 	 	 	By:	 	/s/  MICHAEL S. MARTIN      
 Michael S. Martin

Vice President
	

 	
 	
 	

 	
 	
GUARANTORS:
	

 	
 	
 	

 	
 	

ACI MECHANICAL, INC.
	

 	
 	
 	

 	
 	

ACI MECHANICAL USA, INC.
	

 	
 	
 	

 	
 	

ARC COMFORT SYSTEMS USA, INC.
	

 	
 	
 	

 	
 	

ACCURATE AIR SYSTEMS, L.P.,

by Atlas-Accurate Holdings, L.L.C.,

as general partner
	

 	
 	
 	

 	
 	

ACCU-TEMP GP, INC.

ACCU-TEMP LP, INC.
	

 	
 	
 	

 	
 	

AIR TEMP, INC.
	

 	
 	
 	

 	
 	

ATLAS-ACCURATE HOLDINGS, L.L.C.,

by CS53 Acquisition Corp.,

as acting member
	

 	
 	
 	

 	
 	

ATLAS AIR CONDITIONING COMPANY, L.P., by

Atlas-Accurate Holdings, L.L.C. as general partner
	

 	
 	
 	

 	
 	

BATCHELOR'S MECHANICAL CONTRACTORS, INC.
	

 	
 	
 	

 	
 	

BCM CONTROLS CORPORATION
	

 	
 	
 	

 	
 	

CALIFORNIA COMFORT SYSTEMS USA, INC.
	

 	
 	
 	

 	
 	

CEL, INC.
	

 	
 	
 	

 	
 	

CENTRAL MECHANICAL, INC.
	

 	
 	
 	

 	
 	

CLIMATE CONTROL, INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (ARKANSAS), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (BALTIMORE), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (BOWLING GREEN), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (BRISTOL), INC.
	 	 	 	 	 	 	 	 

8

 

	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (CLEVELAND), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (FLORIDA), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA G.P., INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (HARTFORD), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (INTERMOUNTAIN), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA NATIONAL ACCOUNTS, LLC,

by Accu-Temp LP, Inc., as acting member
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (SYRACUSE), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (TEXAS), L.P.,

by Comfort Systems USA G.P., Inc.,

as general partner
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (TWIN CITIES), INC.
	

 	
 	
 	

 	
 	

COMFORT SYSTEMS USA (WESTERN MICHIGAN), INC.
	

 	
 	
 	

 	
 	

CS44 ACQUISITION CORP.
	

 	
 	
 	

 	
 	

CS53 ACQUISITION CORP.
	

 	
 	
 	

 	
 	

DESIGN MECHANICAL INCORPORATED
	

 	
 	
 	

 	
 	

EASTERN HEATING & COOLING, INC.
	

 	
 	
 	

 	
 	

ESS ENGINEERING, INC.
	

 	
 	
 	

 	
 	

GULFSIDE MECHANICAL, INC.
	

 	
 	
 	

 	
 	

H & M MECHANICAL, INC.
	

 	
 	
 	

 	
 	

HELM CORPORATION
	

 	
 	
 	

 	
 	

HESS MECHANICAL CORPORATION
	

 	
 	
 	

 	
 	

INDUSTRIAL COOLING INC.
	

 	
 	
 	

 	
 	

J & J MECHANICAL, INC.
	

 	
 	
 	

 	
 	

JAMES AIR CONDITIONING ENTERPRISE INC.
	

 	
 	
 	

 	
 	

MARTIN HEATING, INC.
	

 	
 	
 	

 	
 	

MECHANICAL SERVICE GROUP, INC.
	 	 	 	 	 	 	 	 

9

 

	

 	
 	
 	

 	
 	

MECHANICAL TECHNICAL SERVICES, L.P.,

by Atlas-Accurate Holdings, L.L.C.,

as general partner
	

 	
 	
 	

 	
 	

MJ MECHANICAL SERVICES, INC.
	

 	
 	
 	

 	
 	

NEEL MECHANICAL CONTRACTORS, INC.
	

 	
 	
 	

 	
 	

NORTH AMERICAN MECHANICAL, INC.
	

 	
 	
 	

 	
 	

QUALITY AIR HEATING & COOLING, INC.
	

 	
 	
 	

 	
 	

S&K AIR CONDITIONING CO., INC.
	

 	
 	
 	

 	
 	

S. I. GOLDMAN COMPANY, INC.
	

 	
 	
 	

 	
 	

S.M. LAWRENCE COMPANY, INC.
	

 	
 	
 	

 	
 	

SA ASSOCIATES, INC.
	

 	
 	
 	

 	
 	

SALMON & ALDER, LLC,

by SA Associates, Inc. as acting member
	

 	
 	
 	

 	
 	

SEASONAIR, INC.
	

 	
 	
 	

 	
 	

SHEREN PLUMBING & HEATING, INC.
	

 	
 	
 	

 	
 	

TARGET CONSTRUCTION, INC.
	

 	
 	
 	

 	
 	

TEMP-RIGHT SERVICE, INC.
	

 	
 	
 	

 	
 	

THE CAPITAL REFRIGERATION COMPANY
	

 	
 	
 	

 	
 	

TRI-CITY MECHANICAL, INC.
	

 	
 	
 	

 	
 	

UNITED ENVIRONMENTAL SERVICES, L.P.,

by Atlas-Accurate Holdings, L.L.C.,

as general partner
	

 	
 	
 	

 	
 	

WESTERN BUILDING SERVICES, INC.
	

 	

 	

 	

 	

 	

By:	

 	

/s/  J. GORDON BEITTENMILLER      
 J. GORDON BEITTENMILLER,

Vice President and Assistant Secretary

10

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Exhibit 10.6

SECOND AMENDMENT TO AMENDED RESTATED CREDIT AGREEMENT

"SCHEDULE 3.1 LENDERS SCHEDULEQuickLinks
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Exhibit 10.7    
    

 
 

THIRD AMENDMENT TO
  AMENDED RESTATED CREDIT AGREEMENT    
    

        THIS THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (the "Amendment") is made and entered into effective
as of June 23, 2004, by and among COMFORT SYSTEMS USA, INC., a Delaware corporation ("Borrower"); BANK OF TEXAS NA, as a Lender and as Administrative Agent ("Administrative Agent");
HIBERNIA NATIONAL BANK, as a Lender and as Documentation Agent; and the Lenders ("Lenders") and Guarantors ("Guarantors") set forth on the signature pages hereto. 

R E C I T A L S:  

        WHEREAS, Borrower, the Administrative Agent, the Document Agent and the Lenders entered into an Amended and Restated Credit Agreement dated December 31,
2003, as amended by the First Amendment to Amended and Restated Credit Agreement dated as of May 12, 2004, and the Second Amendment to Amended and Restated Credit Agreement dated as of
June 10, 2004 (the "Credit Agreement"), pursuant to which Borrower amended and restated the Prior Credit Documents; and 

        WHEREAS,
Borrower, Administrative Agent, Document Agent, Lenders and Guarantors desire to amend the Credit Agreement as herein set forth to correct a typographical error and to clarify
that certain changes, amendments, or modifications to the terms of the Indemnity Agreement will not constitute a change, amendment or modification which could reasonably be expected to adversely
affect a Lender Party. 

        NOW
THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows: 

        1.     Definitions.    Except as otherwise provided below, unless the context hereof indicates otherwise, all
capitalized terms used herein shall have the same meaning as such capitalized terms are defined in the Credit Agreement. 

        2.     Amendments to the Credit Agreement.    The Credit Agreement is, subject to the satisfaction of the conditions
precedent set forth in Section 3 hereof, hereby amended as follows: 

        (a)   Definitions.    Article I of the Credit Agreement is hereby amended by adding the following new defined
terms and their definitions in proper alphabetical sequence as follows: 

        "'Bonded Contract Ratio' means the percentage determined by dividing Bonded Receivables as of the end of the applicable Fiscal Quarter by
the sum of Bonded Receivables plus Eligible Receivables as of the end of such Fiscal Quarter. 

        'Bonded Contract Ratio Certificate' means a report in the form attached hereto as Exhibit 6.2(e), appropriately completed, which
reflects the Bonded Contract Ratio as of the end of the preceding Fiscal Quarter." 

        (b)   To
correct a typographical error, Section 4.2(c) is amended in its entirety to read as follows: 

        "The
making of such Loan or the issuance of such Letter of Credit shall not be prohibited by any Law and shall not subject any Lender or any LC Issuer to any penalty or other onerous
condition under or pursuant to any such Law." 

        (c)   Section 6.2
is amended by adding a new Section 6.2(e) immediately following Section 6.2 (d) to read as follows: 

        "(e)
As soon as available, and in any event within twenty (20) days after the end of each Fiscal Quarter in each Fiscal Year, a Bonded Contract Ratio Certificate substantially in
the 

 

form
of Exhibit 6.2(e), duly completed by an authorized officer of Borrower, with information required therein completed to reflect the Bonded Contract Ratio as of the end of the preceding
Fiscal Quarter." 

        (d)   Section 7.12
is amended in its entirety to read as follows: 

        "Section 7.12
Indemnity Agreement. 

        (a)   Borrower
will not and will not permit any Restricted Person to, directly or indirectly, change, amend, or otherwise modify the terms of the Indemnity Agreement if such
change, amendment or modification could reasonably be expected to adversely affect a Lender Party. 

        (b)   For
purposes of this Section an amendment to the Indemnity Agreement which provides for bonding capacity as of the end of any Fiscal Quarter (i) in an amount
equal to or less than $145,000,000 (without regard to the Bonded Contract Ratio) or (ii) in an amount greater than $145,000,000 but not in excess of (x) the amount which will cause the
Bonded Contract Ratio as of the end of such Fiscal Quarter to exceed 30 percent or (y) $225,000,000, whichever is less, shall not be considered a direct or indirect change, amendment, or
modification which could reasonably be expected to adversely affect a Lender Party. 

        (c)   Notwithstanding
the provisions of subsection (a) of this Section, a Restricted Person which has executed a Guaranty and such other documentation as may be
required by the Administrative Agent, may become an additional "Principal" and "Indemnitor" (as those terms are defined in the Indemnity Agreement) under the Indemnity Agreement." 

        (e)   The
Credit Agreement is hereby amended by adding the following new exhibit in proper numerical sequence as follows: 

"EXHIBIT 6.2(e)

BONDED CONTRACT RATIO CERTIFICATE

        FOR THE FISCAL QUARTER BEGINNING                        ,
200           

AND ENDING                        , 200            

To:    BANK
OF TEXAS NA, ADMINISTRATIVE AGENT 

From:    COMFORT
SYSTEMS USA, INC. 

Date:                        ,
200            

	Re:
	Amended
and Restated Credit Agreement dated December 31, 2003, (including any amendments or modifications thereof, the "Credit
Agreement"), among Comfort Systems USA, Inc. (the "Company"); Bank of Texas NA, as Administrative Agent, Hibernia National Bank, as Documentation Agent; and Certain
Financial Institutions, as Lenders 

        This
Bonded Contract Ratio Certificate is delivered pursuant to the Credit Agreement. All capitalized terms used but not defined herein shall have the respective meanings specified in
the Credit Agreement. 

2

 

        For
the purpose of determining the Bonded Contract Ratio, the undersigned does hereby certify that as of                        ,
200            , as follows:
 

	A.	 	Bonded Receivables:	 	 	 
	 	 	 	 	
	 
	B.	 	Eligible Receivables:	 	 	 
	 	 	 	 	
	 
	C.	 	Total:	 	 	 
	 	 	 	 	
	 
	D.	 	Bonded Contract Ratio

(line A divided by line C):	 	 	"
	 	 	 	 	
	 

        3.     Conditions Precedent to Effectiveness of Amendment.    This Amendment shall become effective when, and only
when, the Administrative Agent shall have received all of the following documents, each document (unless otherwise indicated) being dated the date hereof, in form and substance reasonably satisfactory
to the Administrative Agent: 

        (a)   Counterparts
of this Amendment duly executed by Borrower, Guarantors and Lenders; 

        (b)   Payment
by Borrower of the reasonable fees and expenses of counsel to the Administrative Agent connection with the preparation and negotiation of this Amendment and all
documents and instruments contemplated hereby. 

        4.     Representations and Warranties of Borrower.    Borrower represents and warrants as follows: 

        (a)   Borrower
and Guarantors are each duly authorized and empowered to execute, deliver and perform this Amendment and all other instruments referred to or mentioned herein
to which it is a party, and all action on its part requisite for the due execution, delivery and the performance of this Amendment has been duly and effectively taken. 

        (b)   After
giving affect to this Amendment, the representations and warranties contained in the Credit Agreement, as amended hereby, and any other Loan Documents executed in
connection herewith or therewith are true in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that such representation or warranty
was made as of a specific date, in which case such representation or warranty was true in all material respects when made; 

        (c)   After
giving affect to this Amendment, no event has occurred and is continuing which constitutes a Default; and 

        (d)   When
duly executed and delivered, each of this Amendment and the Credit Agreement will be legal and binding obligations of Borrower, enforceable in accordance with their
respective terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors' rights and by equitable principles of general
application. 

        5.     Reference to and Effect on the Loan Documents. 

        (a)   Upon
the effectiveness of this Amendment, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import, and each
reference in the Loan Documents shall mean and be a reference to the Credit Agreement as amended hereby. 

        (b)   Except
as specifically amended above, the Credit Agreement, the Notes, and all other Loan Documents shall remain in full force and effect and are hereby ratified and
confirmed. Without limiting the generality of the foregoing, the Security Documents and all collateral described therein do and shall continue to secure the payment of all obligations of Borrower
under the Credit Agreement as amended hereby, the Notes, and under the Security Documents. 

3

 

        (c)   The
execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of Lender
under any of the Security Documents, nor constitute a waiver of any provision of any of the Security Documents. 

        6.     Costs and Expenses.    Borrower agrees to pay on demand all costs and expenses of Lenders in connection with the
preparation, reproduction, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, including the reasonable fees and
out-of-pocket expenses of counsel for Lenders. In addition, Borrower shall pay any and all fees payable or determined to be payable in connection with the execution and
delivery, filing or recording of this Amendment and the other instruments and documents to be delivered hereunder, and agrees to save Lenders harmless from and against any and all liabilities with
respect to or resulting from any delay in paying or omission to pay such fees. 

        7.     Execution in Counterparts.    This Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same
instrument. 

        8.     Governing Law.    This Amendment shall be governed by and construed in accordance with the laws of the State of
Texas. 

        9.     Final Agreement.    THIS WRITTEN AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

        IN
WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed in multiple counterparts, each of which is an original instrument for all purposes, all as of the
day and year first above written. 

	 	 	BORROWER:
	

 	
 	

COMFORT SYSTEMS USA, INC.
	

 	
 	

By:	

/s/  J. GORDON BEITTENMILLER      
 J. Gordon Beittenmiller

Executive Vice President and

Chief Financial Officer
	

 	
 	
LENDERS:
	

 	
 	

BANK OF TEXAS NA,

Administrative Agent and Lender
	

 	
 	

By:	

/s/  GALE SMITH, JR.      
 H. Gale Smith, Jr.

Senior Vice President
	 	 	 	 

4

 

	

 	
 	

HIBERNIA NATIONAL BANK,

    Documentation Agent,

    LC Issuer and Lender
	

 	
 	

By:	

/s/  MICHAEL MEISS      
 Michael Meiss

Senior Vice President
	

 	
 	

BANK OF SCOTLAND, Lender
	

 	
 	

By:	

/s/        
 First Vice President
	

 	
 	

FirstCapital Bank, ssb, Lender
	

 	
 	

By:	

/s/  WILLIAM H. FOWLER      
 William H. Fowler

Senior Vice President
	

 	
 	

RZB FINANCE LLC, Lender
	

 	
 	

By:	

/s/        

	

 	
 	

By:	

/s/        

	

 	
 	

FIRST BANK & TRUST, Lender
	

 	
 	

By:	

/s/  MICHAEL S. MARTIN      
 Michael S. Martin

Vice President
	

 	
 	
GUARANTORS:
	

 	
 	

ACI MECHANICAL, INC.
	

 	
 	

ACI MECHANICAL USA, INC.
	 	 	 	 

5

 

	

 	
 	

ARC COMFORT SYSTEMS USA, INC.
	

 	
 	

ACCURATE AIR SYSTEMS, L.P.,

by Atlas-Accurate Holdings, L.L.C.,

as general partner
	

 	
 	

ACCU-TEMP GP, INC.

ACCU-TEMP LP, INC.
	

 	
 	

AIR TEMP, INC.
	

 	
 	

ATLAS-ACCURATE HOLDINGS, L.L.C.,

by CS53 Acquisition Corp.,

as acting member
	

 	
 	

ATLAS AIR CONDITIONING COMPANY, L.P., by

Atlas-Accurate Holdings, L.L.C. as general partner
	

 	
 	

BATCHELOR'S MECHANICAL

CONTRACTORS, INC.
	

 	
 	

BCM CONTROLS CORPORATION
	

 	
 	

CALIFORNIA COMFORT SYSTEMS USA, INC.
	

 	
 	

CEL, INC.
	

 	
 	

CENTRAL MECHANICAL, INC.
	

 	
 	

CLIMATE CONTROL, INC.
	

 	
 	

COMFORT SYSTEMS USA (ARKANSAS), INC.
	

 	
 	

COMFORT SYSTEMS USA (BALTIMORE), INC.
	

 	
 	

COMFORT SYSTEMS USA (BOWLING GREEN), INC.
	 	 	 	 

6

 

	

 	
 	

COMFORT SYSTEMS USA (BRISTOL), INC.
	

 	
 	

COMFORT SYSTEMS USA (CLEVELAND), INC.
	

 	
 	

COMFORT SYSTEMS USA (FLORIDA), INC.
	

 	
 	

COMFORT SYSTEMS USA G.P., INC.
	

 	
 	

COMFORT SYSTEMS USA (HARTFORD), INC.
	

 	
 	

COMFORT SYSTEMS USA (INTERMOUNTAIN), INC.
	

 	
 	

COMFORT SYSTEMS USA NATIONAL

ACCOUNTS, LLC,

by Accu-Temp LP, Inc., as acting member
	

 	
 	

COMFORT SYSTEMS USA (SYRACUSE), INC.
	

 	
 	

COMFORT SYSTEMS USA (TEXAS), L.P.,

by Comfort Systems USA G.P., Inc., as general partner
	

 	
 	

COMFORT SYSTEMS USA (TWIN CITIES), INC.
	

 	
 	

COMFORT SYSTEMS USA (WESTERN MICHIGAN), INC.
	

 	
 	

CS44 ACQUISITION CORP.
	

 	
 	

CS53 ACQUISITION CORP.
	

 	
 	

DESIGN MECHANICAL INCORPORATED
	

 	
 	

EASTERN HEATING & COOLING, INC.
	

 	
 	

ESS ENGINEERING, INC.
	 	 	 	 

7

 

	

 	
 	

GULFSIDE MECHANICAL, INC.
	

 	
 	

H & M MECHANICAL, INC.
	

 	
 	

HELM CORPORATION
	

 	
 	

HESS MECHANICAL CORPORATION
	

 	
 	

INDUSTRIAL COOLING INC.
	

 	
 	

J & J MECHANICAL, INC.
	

 	
 	

JAMES AIR CONDITIONING ENTERPRISE INC.
	

 	
 	

MARTIN HEATING, INC.
	

 	
 	

MECHANICAL SERVICE GROUP, INC.
	

 	
 	

MECHANICAL TECHNICAL SERVICES, L.P.,

by Atlas-Accurate Holdings, L.L.C., as general partner
	

 	
 	

MJ MECHANICAL SERVICES, INC.
	

 	
 	

NEEL MECHANICAL CONTRACTORS, INC.
	

 	
 	

NORTH AMERICAN MECHANICAL, INC.
	

 	
 	

QUALITY AIR HEATING & COOLING, INC.
	

 	
 	

S&K AIR CONDITIONING CO., INC.
	

 	
 	

S. I. GOLDMAN COMPANY, INC.
	

 	
 	

S.M. LAWRENCE COMPANY, INC.
	 	 	 	 

8

 

	

 	
 	

SA ASSOCIATES, INC.
	

 	
 	

SALMON & ALDER, LLC,

by SA Associates, Inc. as acting member
	

 	
 	

SEASONAIR, INC.
	

 	
 	

SHEREN PLUMBING & HEATING, INC.
	

 	
 	

TARGET CONSTRUCTION, INC.
	

 	
 	

TEMP-RIGHT SERVICE, INC.
	

 	
 	

THE CAPITAL REFRIGERATION COMPANY
	

 	
 	

TRI-CITY MECHANICAL, INC.
	

 	
 	

UNITED ENVIRONMENTAL SERVICES, L.P.,

by Atlas-Accurate Holdings, L.L.C., as general partner
	

 	
 	

WESTERN BUILDING SERVICES, INC.
	

 	
 	

By:	

/s/  J. GORDON BEITTENMILLER      
J. GORDON BEITTENMILLER,

Vice President and Assistant Secretary

9

QuickLinks

Exhibit 10.7

THIRD AMENDMENT TO AMENDED RESTATED CREDIT AGREEMENT

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