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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         This Employment Agreement dated as of June 24, 2002 (this "Agreement"),
is entered into between Grant Prideco, Inc., a Delaware corporation (the
"Company"), and Michael McShane (the "Executive").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, the Board of Directors of the Company (the "Board") has
previously determined that it is in the best interests of the Company and its
stockholders to retain the Executive and to induce the employment of the
Executive for the long-term benefit of the Company;

         WHEREAS, the Board does not contemplate the termination of the
Executive during the term hereof and the Board and the Executive expect that the
Executive will be retained for at least the three-year period contemplated
herein; and

         WHEREAS, to accomplish these objectives, the Board has caused the
Company to enter into this Agreement.

         NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

         1.       Employment.

                  (a) The Company hereby agrees that the Company or an
affiliated company will continue the Executive in its employ, and the Executive
hereby agrees to remain in the employ of the Company or an affiliate subject to
the terms and conditions of this Agreement, during the Employment Period (as
defined below).

                  (b) The "Employment Period" shall mean the period commencing
on the date hereof (the "Effective Date") and ending on the third anniversary of
the Effective Date; provided, however, that commencing on the date one year
after the Effective Date, and on each annual anniversary of such date (such date
and each annual anniversary thereof shall be hereinafter referred to as the
"Renewal Date"), unless previously terminated, the Employment Period shall be
automatically extended so as to terminate three year(s) after such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Employment Period shall not be so extended.

         2.       Terms of Employment.

                  (a) Position and Duties.

                           (i) During the Employment Period, (A) the Executive's
                  position (including status, offices, titles and reporting
                  requirements, authority, duties and responsibilities) shall be
                  President and Chief Executive Officer and (B) the

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                  Executive's services shall be performed at the Company's
                  principal executive offices in Houston, Texas or other
                  locations less than 35 miles from such location.

                           (ii) During the Employment Period, and excluding any
                  periods of vacation and sick leave to which the Executive is
                  entitled, the Executive agrees to devote reasonable attention
                  and time during normal business hours to the business and
                  affairs of the Company and, to the extent necessary to
                  discharge the responsibilities assigned to the Executive
                  hereunder, to use the Executive's reasonable best efforts to
                  perform faithfully and efficiently such responsibilities.
                  During the Employment Period it shall not be a violation of
                  this Agreement for the Executive to (A) serve on corporate,
                  civic or charitable boards or committees, (B) deliver
                  lectures, fulfill speaking engagements or teach at educational
                  institutions and (C) manage personal investments, so long as
                  such activities do not significantly interfere with the
                  performance of the Executive's responsibilities as an employee
                  of the Company in accordance with this Agreement. It is
                  expressly understood and agreed that to the extent that any
                  such activities have been conducted by the Executive prior to
                  the date hereof, the continued conduct of such activities (or
                  the conduct of activities similar in nature and scope thereto)
                  subsequent to the date hereof shall not thereafter be deemed
                  to interfere with the performance of the Executive's
                  responsibilities to the Company.

                  (b) Compensation.

                           (i) Base Salary. During the Employment Period, the
                  Executive shall receive an annual base salary of $450,000
                  ("Annual Base Salary"), which shall be paid in accordance with
                  the normal payroll practices of the Company. During the
                  Employment Period, the Annual Base Salary shall be reviewed no
                  more than 12 months after the last salary increase awarded to
                  the Executive prior to the date hereof and thereafter at least
                  annually; provided, however, that a salary increase shall not
                  necessarily be awarded as a result of such review. Any
                  increase in Annual Base Salary may not serve to limit or
                  reduce any other obligation to the Executive under this
                  Agreement. Annual Base Salary shall not be reduced after any
                  such increase. The term Annual Base Salary as utilized in this
                  Agreement shall refer to Annual Base Salary as so increased.

                           (ii) Annual Bonus. The Executive shall be eligible
                  for an annual bonus (the "Annual Bonus") for each fiscal year
                  ending during the Employment Period at the highest award level
                  under the Company's executive officer annual incentive
                  program. Each such Annual Bonus shall be paid no later than
                  the end of the third month of the fiscal year next following
                  the fiscal year for which the Annual Bonus is awarded, unless
                  the Executive shall elect to defer the receipt of such Annual
                  Bonus pursuant to a Company sponsored deferred compensation
                  plan in effect.

                           (iii) Incentive, Savings and Retirement Plans. During
                  the Employment Period, the Executive shall be entitled to
                  participate in all incentive, savings and retirement plans,
                  practices, policies and programs applicable generally to the

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                  Executive's peer executives of the Company and its affiliated
                  companies, but in no event shall such plans, practices,
                  policies and programs provide the Executive with incentive
                  opportunities (measured with respect to both regular and
                  special incentive opportunities, to the extent, if any, that
                  such distinction is applicable), savings opportunities and
                  retirement benefit opportunities, in each case, less
                  favorable, in the aggregate, than the most favorable of those
                  provided by the Company and its affiliated companies for the
                  Executive under such plans, practices, policies and programs
                  as in effect on the date hereof. As used in this Agreement,
                  the term "affiliated companies" shall include any company
                  controlled by, controlling or under common control with the
                  Company.

                           (iv) Welfare Benefit Plans. During the Employment
                  Period, the Executive and/or the Executive's family, as the
                  case may be, shall be eligible to participate in and shall
                  receive all benefits under welfare benefit plans, practices,
                  policies and programs provided by the Company and its
                  affiliated companies (including, without limitation, medical,
                  prescription, dental, disability, salary continuance, employee
                  life, group life, accidental death and travel accident
                  insurance plans and programs) to the extent applicable
                  generally to the Executive's peer executives of the Company
                  and its affiliated companies, but in no event shall such
                  plans, practices, policies and programs provide the Executive
                  with benefits which are less favorable, in the aggregate, than
                  such plans, practices, policies and programs in effect for the
                  Executive on the date hereof.

                           (v) Expenses. During the Employment Period, the
                  Executive shall be entitled to receive prompt reimbursement
                  for all reasonable expenses incurred by the Executive in
                  accordance with the most favorable policies, practices and
                  procedures of the Company and its affiliated companies in
                  effect for the Executive on the date hereof.

                           (vi) Fringe Benefits. During the Employment Period,
                  the Executive shall be entitled to fringe benefits (including,
                  without limitation, financial planning services, payment of
                  club dues, a car allowance of $1,000 per month or use of an
                  automobile and payment of related expenses, as appropriate) in
                  accordance with the most favorable plans, practices, programs
                  and policies of the Company in effect on the date hereof.

                           (vii) Vacation. During the Employment Period, the
                  Executive shall be entitled to three weeks of paid vacation or
                  such greater amount as may be applicable under the most
                  favorable plans, policies, programs and practices of the
                  Company and its affiliated companies in effect for the
                  Executive on the date hereof.

                           (viii) Restricted Stock and Options. As of the
                  Effective Date, the Executive was granted 500,000 restricted
                  shares of the Company's Common Stock, $.01 par value ("Common
                  Stock"). Such shares are subject to three year cliff vesting;
                  provided, however, if the employment of the Executive under
                  this Agreement is

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                  terminated prior to the shares being fully vested for any
                  reason other than by the Company for Cause or Disability, the
                  death of the Executive or by the Executive for any reason
                  other than for Good Reason, such shares shall become vested on
                  the termination date. Until the shares of Common Stock are
                  vested, the Executive may not transfer, pledge or dispose of
                  the unvested shares. The Executive, however, may vote any
                  unvested shares and be entitled to receive any dividends or
                  distributions (other than noncash distributions, which shall
                  be subject to the same vesting restrictions as the shares of
                  Common Stock for which such distributions were received). The
                  Company may also hold the unvested shares until they have
                  vested. The Executive may elect to deliver shares of Common
                  Stock (valued at their then current market price) to the
                  Company in satisfaction of any withholding obligation the
                  Company may have on the vesting of such shares. Such shares
                  shall be subject to accelerated vesting as provided in Section
                  4(a). Such shares shall also be subject to accelerated vesting
                  on a change of control as defined in the Company's form of
                  stock option agreement. Within 30 days of the Effective Date,
                  the Executive shall also be granted options under the
                  Company's stock option plan to purchase an aggregate of
                  250,000 shares of Common Stock at an exercise price per share
                  equal to the closing sale price of a share of Common Stock as
                  of the date of the option grant, which options are subject to
                  three year cliff vesting.

                           (ix) Retirement Plan. The Executive will be entitled
                  to a retirement benefit equal to 60% of his Annual Base Salary
                  and target Annual Bonus at age 60 (the "Retirement Plan"). The
                  Retirement Plan will have the following terms:

                                    (A) the Executive will be eligible for early
                           retirement beginning at age 55 with a reduced
                           retirement benefit of 5% per year;

                                    (B) the Retirement Plan may be funded by a
                           Company owned life insurance policy;

                                    (C) upon the death of the Executive, the
                           retirement benefit will be determined as follows:

                                            (1) if death occurs prior to age 55,
                                            the retirement benefit will be
                                            calculated assuming retirement at
                                            age 60 using the Executive's salary
                                            as of his death, then reduced by 25%
                                            and then discounted to present value
                                            at age of death;
                                            (2) if death occurs after age 55,
                                            the retirement benefit will be
                                            reduced by 5% per year for each year
                                            before age 60; and
                                            (3) if death occurs following
                                            retirement, the retirement benefit
                                            will be paid according to the payout
                                            option selected at time of
                                            retirement.

                                    (D) upon the disability of the Executive,
                           the retirement benefit will be determined as follows:

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                                            (1) if disability occurs before age
                                            55, the retirement benefit would
                                            begin at age 55 and be equal to the
                                            normal retirement benefit reduced by
                                            25%;

                                            (2) if disability occurs after age
                                            55 but prior to age 60, the
                                            retirement benefit would begin
                                            immediately and be equal to the
                                            normal retirement benefit reduced by
                                            5% for each year such disability
                                            occurred prior to age 60.

                                    (E) the Executive will select from the
                                    following benefit election options: (1)
                                    Joint and Survivor, (2) single life or (3)
                                    10 year certain. The Executive must make
                                    such election at the time of vesting, which
                                    such election may be changed at any time
                                    prior to one year before the death,
                                    disability or retirement of the Executive.

                                    (F) in the event of the termination of
                                    employment of the Executive (other than by
                                    the Company for Cause or by the Executive
                                    for any reason other than Good Reason) or a
                                    change of control of the Company (as defined
                                    in the Company's stock option agreement),
                                    the Executive would become immediately 100%
                                    vested in his retirement benefit and receive
                                    a lump sum payout, which payment shall be
                                    actuarially calculated in the same manner as
                                    the retirement benefit payable upon the
                                    death of the Executive.

         3.       Termination of Employment.

                  (a) Death or Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Executive written notice in accordance with
Section 10(b) of this Agreement of its intention to terminate the Executive's
employment. In such event, the Executive's employment with the Company shall
terminate effective 30 days after receipt of such notice by the Executive (the
"Disability Effective Date"), provided that within the 30-day period after such
receipt, the Executive shall not have returned to full-time performance of the
Executive's duties. For purposes of this Agreement, "Disability" shall mean the
absence of the Executive from the Executive's duties with the Company on a
full-time basis for 180 calendar days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the
Executive's legal representative.

                  (b) Cause. The Company may terminate the Executive's
employment during the Employment Period for Cause. For purposes of this
Agreement, "Cause" shall mean:

                           (i) the willful and continued failure of the
                  Executive to perform substantially the Executive's duties with
                  the Company or one of its affiliates (other

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                  than any such failure resulting from incapacity due to
                  physical or mental illness), after a written demand for
                  substantial performance is delivered to the Executive by the
                  Board of the Company which specifically identifies the manner
                  in which the Board believes that the Executive has not
                  substantially performed the Executive's duties, or

                           (ii) the willful engaging by the Executive in illegal
                  conduct or gross misconduct which is materially and
                  demonstrably injurious to the Company.

                  For purposes of this provision, no act, or failure to act, on
the part of the Executive shall be considered "willful" unless it is done, or
omitted to be done, by the Executive in bad faith or without reasonable belief
that the Executive's action or omission was in the best interests of the
Company. Any act, or failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board or upon the instructions of a senior
officer of the Company or based upon the advice of counsel for the Company shall
be conclusively presumed to be done, or omitted to be done, by the Executive in
good faith and in the best interests of the Company. The cessation of employment
of the Executive shall not be deemed to be for Cause unless and until there
shall have been delivered to the Executive a copy of a resolution duly adopted
by the affirmative vote of not less than three-quarters of the entire membership
of the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding that,
in the good faith opinion of the Board, the Executive is guilty of the conduct
described in subparagraph (i) or (ii) above, and specifying the particulars
thereof in detail.

                  (c) Good Reason. The Executive's employment may be terminated
by the Executive during the Employment Period for Good Reason. For purposes of
this Agreement, "Good Reason" shall mean:

                           (i) the assignment to the Executive of any duties
                  inconsistent in any respect with the Executive's position
                  (including status, offices, titles and reporting
                  requirements), authority, duties or responsibilities as
                  contemplated by Section 2(a) of this Agreement, or any other
                  action by the Company which results in a diminution in such
                  position, authority, duties or responsibilities, excluding for
                  this purpose an isolated, insubstantial and inadvertent action
                  not taken in bad faith and which is remedied by the Company
                  promptly after receipt of notice thereof given by the
                  Executive;

                           (ii) any failure by the Company to comply with any of
                  the provisions of Section 2(b) of this Agreement, other than
                  an isolated, insubstantial and inadvertent failure not
                  occurring in bad faith and which is remedied by the Company
                  promptly after receipt of notice thereof given by the
                  Executive;

                           (iii) the Company's requiring the Executive to be
                  based at any office or location other than as provided in
                  Section 2(a)(i)(B) hereof or the Company's

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                  requiring the Executive to travel on Company business to a
                  substantially greater extent than required immediately prior
                  to the date hereof;

                           (iv) any purported termination by the Company of the
                  Executive's employment otherwise than as expressly permitted
                  by this Agreement;

                           (v) in the event of a merger, consolidation or other
                  business combination of the Company in which the Company's
                  securities cease to be publicly traded, the assignment to the
                  Executive of any position (including status, offices, titles
                  and reporting requirements), authority, duties or
                  responsibilities that are not (A) at or with the ultimate
                  parent company of the entity surviving or resulting from such
                  merger, consolidation or other business combination and (B)
                  substantially similar to the Executive's position (including
                  status, offices, titles and reporting requirements),
                  authority, duties and responsibilities as contemplated by
                  Section 2(a); or

                           (vi) any failure by the Company to comply with and
                  satisfy Section 9(c) of this Agreement.

                  For purposes of this Section 3(c), any good faith
determination of "Good Reason" made by the Executive shall be conclusive.

                  (d) Notice of Termination. Any termination during the
Employment Period by the Company for Cause, or by the Executive for Good Reason,
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 10(b) of the Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than 30 days after the giving of
such notice). The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

                  (e) Date of Termination.  "Date of Termination" shall mean:

                           (i) if the Executive's employment is terminated by
                  the Company for Cause, or by the Executive for Good Reason,
                  the date of receipt of the Notice of Termination or any later
                  date specified therein, as the case may be;

                           (ii) if the Executive's employment is terminated by
                  the Company other than for Cause, death or Disability, the
                  Date of Termination shall be the date on which the Company
                  notifies the Executive of such termination; and

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                           (iii) if the Executive's employment is terminated by
                  reason of death or Disability, the Date of Termination shall
                  be the date of death of the Executive or the Disability
                  Effective Date, as the case may be.

         4.       Obligations of the Company Upon Termination.

                  (a) Good Reason; Other than For Cause, Death or Disability.
If, during the Employment Period, the Company shall terminate the Executive's
employment other than for Cause, death or Disability, or the Executive shall
terminate employment for Good Reason:

                           (i) The Company shall pay to the Executive in a lump
                  sum in cash within 30 days after the Date of Termination the
                  aggregate of the following amounts:

                                    (A) the sum of (1) the Executive's Annual
                           Base Salary through the Date of Termination to the
                           extent not theretofore paid, (2) the product of (x)
                           the higher of (I) the highest Annual Bonus received
                           by the Executive over the preceding three year period
                           and (II) the Annual Bonus paid or payable, including
                           any bonus or portion thereof which has been earned
                           but deferred (and annualized for any fiscal year
                           consisting of less than 12 full months or during
                           which the Executive was employed for less than 12
                           full months), for the most recently completed fiscal
                           year during the Employment Period, if any (such
                           higher amount being referred to as the "Highest
                           Annual Bonus", it being agreed that for purposes of
                           determining the Highest Annual Bonus, the Executive
                           will be deemed to have received a bonus of 100% of
                           his Annual Base Salary for the year ended December
                           31, 2002) and (y) a fraction, the numerator of which
                           is the number of days in the current fiscal year
                           through the Date of Termination, and the denominator
                           of which is 365, and (3) any compensation previously
                           deferred by the Executive under a plan sponsored by
                           the Company (together with any accrued interest or
                           earnings thereon), and any accrued vacation pay, in
                           each case to the extent not theretofore paid (the sum
                           of the amounts described in clauses (1), (2) and (3)
                           shall be hereinafter referred to as the "Accrued
                           Obligations"), and

                                    (B) an amount equal to three times the sum
                           of (i) the then current Annual Base Salary of the
                           Executive and (ii) the Highest Annual Bonus, and

                                    (C) an amount equal to the total of the
                           employer matching contributions credited to the
                           Executive under the Company's 401(k) Savings Plan
                           (the "401(k) Plan") or any other deferred
                           compensation plan during the 12-month period
                           immediately preceding the month of the Executive's
                           Date of Termination multiplied by three, such amount
                           to be grossed up so that the amount the Executive
                           actually receives after payment of any federal or
                           state taxes payable thereon equals the amount first
                           described above.

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                           (ii) For a period of three years from the Executive's
                  Date of Termination (the "Remaining Contract Term") or such
                  longer period as may be provided by the terms of the
                  appropriate plan, program, practice or policy, the Company
                  shall continue benefits to the Executive and/or the
                  Executive's family equal to those which would have been
                  provided to them in accordance with the plans, programs,
                  practices and policies described in Section 2(b)(iv) of this
                  Agreement if the Executive's employment had not been
                  terminated; provided, however, that with respect to any of
                  such plans, programs, practices or policies requiring an
                  employee contribution, the Executive shall continue to pay the
                  monthly employee contribution for same, and provided further,
                  that if the Executive becomes re-employed by another employer
                  and is eligible to receive medical or other welfare benefits
                  under another employer provided plan, the medical and other
                  welfare benefits described herein shall be secondary to those
                  provided under such other plan during such applicable period
                  of eligibility;

                           (iii) The Company shall, at its sole expense as
                  incurred, provide the Executive with outplacement services,
                  the scope and provider of which shall be selected by the
                  Executive in his sole discretion;

                           (iv) With respect to all options to purchase Common
                  Stock held by the Executive pursuant to a Company stock option
                  plan on or prior to the Date of Termination, irrespective of
                  whether such options are then exercisable, the Executive shall
                  have the right, during the 60-day period after the Date of
                  Termination, to elect to surrender all or part of such options
                  in exchange for a cash payment by the Company to the Executive
                  in an amount equal to the number of shares of Common Stock
                  subject to the Executive's option multiplied by the difference
                  between (x) and (y) where (x) equals the purchase price per
                  share covered by the option and (y) equals the highest
                  reported sale price of a share of Common Stock in any
                  transaction reported on the New York Stock Exchange during the
                  60-day period prior to and including the Executive's Date of
                  Termination. Such cash payments shall be made within 30 days
                  after the date of the Executive's election; provided, however,
                  that if the Executive's Date of Termination is within six
                  months after the date of grant of a particular option held by
                  the Executive and the Executive is subject to Section 16(b) of
                  the Securities Exchange Act of 1934, as amended, any cash
                  payments related thereto shall be made on the date which is
                  six months and one day after the date of grant of such option
                  to the extent necessary to prevent the imposition of the
                  disgorgement provisions under Section 16(b). Notwithstanding
                  the foregoing, if any right granted pursuant to the foregoing
                  would make any change of control transaction ineligible for
                  pooling of interests accounting treatment under APB No. 16
                  that but for this Section 4(a)(iv) would otherwise be eligible
                  for such accounting treatment, the Executive shall receive in
                  substitution for the cash payment a number of shares of Common
                  Stock determined by dividing the amount of cash that would
                  otherwise be payable to the Executive hereunder by the average
                  closing sales price of the Common Stock, as reported by the
                  New York Stock Exchange, for the ten trading days immediately
                  prior to the date such payment is due to be made (rounding up
                  to the

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                  nearest whole number), provided that any such shares of Common
                  Stock so granted to the Executive shall be registered under
                  the Securities Act of 1933, as amended; any options
                  outstanding as of the Date of Termination and not then
                  exercisable shall become fully exercisable as of the
                  Executive's Date of Termination, and to the extent the
                  Executive does not elect to surrender same for a cash payment
                  (or the equivalent number of shares of Common Stock) as
                  provided above, such options shall remain exercisable for one
                  year after the Executive's Date of Termination or until the
                  stated expiration of the stated term thereof, whichever is
                  longer;

                           (v) restrictions applicable to any shares of Common
                  Stock granted to the Executive by the Company shall lapse, as
                  of the date of the Executive's Date of Termination;

                           (vi) All country club memberships, luncheon clubs and
                  other memberships which the Company was providing for the
                  Executive's use at the time Notice of Termination is given
                  shall, to the extent possible, be transferred and assigned to
                  the Executive at no cost to the Executive (other than income
                  taxes owed), the cost of transfer, if any, to be borne by the
                  Company;

                           (vii) The Company shall either transfer to the
                  Executive ownership and title to the Executive's company car
                  at no cost to the Executive (other than income taxes owed) or,
                  if the Executive receives a monthly car allowance in lieu of a
                  Company car, pay the Executive a lump sum in cash within 30
                  days after the Executive's Date of Termination equal to the
                  Executive's annual car allowance multiplied by three;

                           (viii) All benefits under the Company's Executive
                  Deferred Compensation Plan, the 401(k) Plan, the Retirement
                  Plan and any other similar plans, including any stock options
                  or restricted stock held by the Executive, not already vested
                  shall be 100% vested, to the extent such vesting is permitted
                  under the Code (as defined below);

                           (ix) To the extent not theretofore paid or provided,
                  the Company shall timely pay or provide to the Executive any
                  other amounts or benefits required to be paid or provided or
                  which the Executive is eligible to receive under any plan,
                  program, policy or practice or contract or agreement of the
                  Company and its affiliated companies (such other amounts and
                  benefits shall be hereinafter referred to as the "Other
                  Benefits"); and

                           (x) The foregoing payments are intended to compensate
                  the Executive for a breach of the Company's obligations and
                  place Executive in substantially the same position had the
                  employment of the Executive not been so terminated as a result
                  of a breach by the Company.

                  (b) Death. If Executive's employment is terminated by reason
of the Executive's death during the Employment Period, this Agreement shall
terminate without further obligations to

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the Executive's legal representatives under this Agreement, other than for
payment of Accrued Obligations and the timely payment or provision of Other
Benefits. Accrued Obligations shall be paid to the Executive's estate or
beneficiaries, as applicable, in a lump sum in cash within 30 days after the
Date of Termination. With respect to the provision of Other Benefits, the term
Other Benefits as utilized in this Section 4(b) shall include, without
limitation, and the Executive's estate and/or beneficiaries shall be entitled to
receive, benefits at least equal to the most favorable benefits provided by the
Company and affiliated companies to the estates and beneficiaries of the
Executive's peer executives of the Company and such affiliated companies under
such plans, programs, practices and policies relating to death benefits, if any,
in effect on the date hereof or, if more favorable, those in effect on the date
of the Executive's death.

                  (c) Disability. If the Executive's employment is terminated by
reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits. Accrued Obligations shall be paid to the Executive in a lump sum
in cash within 30 days after the Date of Termination. With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this Section
4(c) shall include, without limitation, and the Executive shall be entitled
after the Disability Effective Date to receive, disability and other benefits at
least equal to the most favorable benefits generally provided by the Company and
its affiliated companies to the Executive's disabled peer executives and/or
their families in accordance with such plans, programs, practices and policies
relating to disability, if any, in effect generally on the date hereof or, if
more favorable, those in effect at the time of the Disability.

                  (d) Cause; Other Than for Good Reason. If the Executive's
employment is terminated for Cause during the Employment Period, this Agreement
shall terminate without further obligations to the Executive, other than the
obligation to pay to the Executive (x) his Annual Base Salary through the Date
of Termination, (y) the amount of any compensation previously deferred by the
Executive, and (z) Other Benefits, in each case to the extent theretofore
unpaid. If the Executive voluntarily terminates employment during the Employment
Period, excluding a termination for Good Reason, this Agreement shall terminate
without further obligations to the Executive, other than for Accrued Obligations
and the timely payment or provision of Other Benefits. In such case, all Accrued
Obligations shall be paid to the Executive in a lump sum in cash within 30 days
after the Date of Termination subject to such other options or restrictions as
provided by law.

         5. Other Rights. Except as provided hereinafter, nothing in this
Agreement shall prevent or limit the Executive's continuing or future
participation in any plan, program, policy or practice provided by the Company
or any of its affiliated companies and for which the Executive may qualify, nor,
shall anything herein limit or otherwise affect such rights as the Executive may
have under any contract or agreement with the Company or any of its affiliated
companies. Except as provided hereinafter, amounts which are vested benefits or
which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of
its affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement. It is expressly agreed by the Executive that he shall have no right
to receive, and hereby waives any entitlement to, any severance pay or similar
benefit under any other plan, policy, practice or program of the Company. In
addition,

                                      -11-
<PAGE>

if the Executive has an employment or similar agreement with the Company at the
Date of Termination, he agrees that he shall have the right to receive all of
the benefits provided under this Agreement or such other agreement, whichever
one, in its entirety, the Executive chooses, but not both agreements, and when
the Executive has made such election, the other agreement shall be superseded in
its entirety and shall be of no further force and effect. The Executive also
agrees that to the extent he may be eligible for any severance pay or similar
benefit under any laws providing for severance or termination benefits, such
other severance pay or similar benefit shall be coordinated with the benefits
owed hereunder, such that the Executive shall not receive duplicate benefits.

         6.       Full Settlement.

                  (a) No Rights of Offset. The Company's obligation to make the
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others.

                  (b) No Mitigation Required. In no event shall the Executive be
obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Executive under any of the provisions of this
Agreement and such amounts shall not be reduced whether or not the Executive
obtains other employment.

                  (c) Legal Fees. The Company agrees to pay as incurred, to the
full extent permitted by law, all legal fees and expense which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company or the Executive of the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereto (including as a result of any contest by the Executive about the amount
of any payment pursuant to this Agreement), plus in each case interest on any
delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code").

                                      -12-
<PAGE>

         7.       Certain Additional Payments by the Company.

                  (a) Although this Agreement is not being entered into in
connection with or contingent upon a change of control of the Company, anything
in this Agreement to the contrary notwithstanding and except as set forth below,
in the event it shall be determined that any payment or distribution by the
Company to or for the benefit of the Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 7) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including without limitation, any income taxes (and any interest
and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing
provisions of this Section 7(a), if it shall be determined that the Executive is
entitled to a Gross-Up Payment, but that the Executive, after taking into
account the Payments and the Gross-Up Payment, would not receive a net after-tax
benefit of at least $50,000 (taking into account both income taxes and any
Excise Tax) as compared to the net after-tax proceeds to the Executive resulting
from an elimination of the Gross-Up Payment and a reduction of the Payments, in
the aggregate, to an amount (the "Reduced Amount") such that the receipt of
Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall
be made to the Executive and the Payments, in the aggregate, shall be reduced to
the Reduced Amount.

                  (b) Subject to the provisions of Section 7(c), all
determinations required to be made under this Section 7, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination shall be made
by Arthur Andersen LLP or, as provided below, such other certified public
accounting firm as may be designated by the Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the change of control, the
Executive shall appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 7, shall be paid by the Company to the
Executive within five days after the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm shall be binding upon
the Company and the Executive. As a result of the uncertainty in the application
of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by the Company should have been made ("Underpayment"), consistent
with the calculations required to be made hereunder. In the event that the
Company exhausts its remedies pursuant to Section 7(c) and the Executive
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall

                                      -13-
<PAGE>

determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

                  (c) The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment (or an additional Gross-Up
Payment) in the event the Internal Revenue Service seeks higher payment. Such
notification shall be given as soon as practicable, but no later than ten
business days after the Executive is informed in writing of such claim, and
shall apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. The Executive shall not pay such claim prior to
the expiration of the 30-day period following the date on which he gives such
notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due). If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                           (i) give the Company any information reasonably
                  requested by the Company relating to such claim,

                           (ii) take such action in connection with contesting
                  such claim as the Company shall reasonably request in writing
                  from time to time, including without limitation, accepting
                  legal representation with respect to such claim by an attorney
                  reasonably selected by the Company,

                           (iii) cooperate with the Company in good faith in
                  order effectively to contest such claim, and

                           (iv) permit the Company to participate in any
                  proceedings relating to such claims; provided, however, that
                  the Company shall bear and pay directly all costs and expenses
                  (including additional interest and penalties) incurred in
                  connection with such costs and shall indemnify and hold the
                  Executive harmless, on an after-tax basis, for any Excise Tax
                  or income tax (including interest and penalties with respect
                  thereto) imposed as a result of such representation and
                  payment of costs and expenses. Without limitation on the
                  foregoing provisions of this Section 7(c), the Company shall
                  control all proceedings taken in connection with such contest
                  and, at its sole option, may pursue or forego any and all
                  administrative appeals, proceedings, hearings and conferences
                  with the taxing authority in respect of such claim and may, at
                  its sole option, either direct the Executive to pay the tax
                  claimed and sue for a refund or contest the claim in any
                  permissible manner, and the Executive agrees to prosecute such
                  contest to determination before any administrative tribunal,
                  in a court of initial jurisdiction and in one or more
                  appellate courts, as the Company shall determine; provided,
                  however, that if the Company directs the Executive to pay such
                  claim and sue for a refund, the Company shall advance the
                  amount of such payment to the Executive, on an interest-free
                  basis and shall indemnify and hold the Executive harmless, on
                  an after-tax basis, from any Excise Tax or income tax
                  (including interest or penalties with respect thereto) imposed
                  with respect to such advance or with respect to any imputed
                  income with respect to such advance; and further provided

                                      -14-
<PAGE>

                  that any extension of the statute of limitations relating to
                  payment of taxes for the taxable year of the Executive with
                  respect to which such contested amount is claimed to be due is
                  limited solely to such contested amount. Furthermore, the
                  Company's control of the contest shall be limited to issues
                  with respect to which a Gross-Up Payment would be payable
                  hereunder and the Executive shall be entitled to settle or
                  contest, as the case may be, any other issues raised by the
                  Internal Revenue Service or any other taxing authority.

                  (d) If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 7(c), the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject
to the Company's complying with the requirements of Section 7(c)) promptly pay
to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 7(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

         8. Confidential Information. The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, which shall have been obtained by the Executive
during the Executive's employment by the Company or any of its affiliated
companies, provided that it shall not apply to information which is or shall
become public knowledge (other than by acts by the Executive or representatives
of the Executive in violation of this Agreement), information that is developed
by the Executive independently of such information, or knowledge or data or
information that is disclosed to the Executive by a third party under no
obligation of confidentiality to the Company. After termination of the
Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data to
anyone other than the Company and those designated by it. In no event shall an
asserted violation of the provisions of this Section 8 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

         9. Successors.

                  (a) This Agreement is personal to the Executive and shall not
be assignable by the Executive otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by
the Executive's legal representatives.

                  (b) This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                                      -15-
<PAGE>

                  (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

         10.      Miscellaneous.

                  (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES
OF CONFLICT OF LAWS. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

                  (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

                  If to the Executive:               Michael McShane
                                                     14 Twin Greens
                                                     Kingwood, Texas 77339

                  If to the Company:                 Grant Prideco, Inc.
                                                     1330 Post Oak Blvd.
                                                     Suite 2700
                                                     Houston, Texas  77056
                                                     Attention: General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notices and communications shall be effective
when actually received by the addressee.

                  (c) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                  (d) The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                  (e) The Executive's or the Company's failure to insist upon
strict compliance with any provision of this Agreement or the failure to assert
any right the Executive or the Company may have hereunder, including without
limitation, the right of the Executive to terminate

                                      -16-
<PAGE>

employment for Good Reason pursuant to Section 3(c)(i)-(vi) of this Agreement,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

                  (f) This Agreement constitutes the entire agreement and
understanding between the parties relating to the subject matter hereof and
supersedes all prior agreements between the parties relating to the subject
matter hereof, including, without limitation, the Employment Agreement.

         IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

                                         /s/ Michael McShane
                                         -------------------------------------
                                                   Michael McShane

                                         GRANT PRIDECO, INC.

                                         By  /s/ Bernard J. Duroc-Danner
                                           -----------------------------------
                                                 Bernard J. Duroc-Danner
                                                 Chairman of the Board

                                      -17-<PAGE>
                                                                    EXHIBIT 4.14

                                EIGHTH AMENDMENT
             TO THIRD AMENDED AND RESTATED SECURED CREDIT AGREEMENT

         THIS EIGHTH AMENDMENT TO THIRD AMENDED AND RESTATED SECURED CREDIT
AGREEMENT (this "AMENDMENT") is entered into as of August 12, 2002, among QUANTA
SERVICES, INC., a Delaware corporation ("BORROWER"), the Lenders (defined
below), and BANK OF AMERICA, N.A., f/k/a NationsBank, N.A., as administrative
agent for the Lenders (in such capacity, the "AGENT"). Capitalized terms used
but not defined in this Amendment have the meaning given them in the Credit
Agreement (defined below).

                                    RECITALS

         A. The Borrower is party to that certain Third Amended and Restated
Secured Credit Agreement dated as of June 14, 1999 (as amended by the First
Amendment dated as of September 21, 1999, the Second Amendment dated as of March
21, 2000, the Third Amendment and Consent dated as of June 15, 2000, the Fourth
Amendment dated as of October 27, 2000, the Fifth Amendment dated as of November
9, 2000, the Sixth Amendment dated as of October 17, 2001, the Seventh Amendment
dated as of February 12, 2002, and as it may be further amended, restated or
supplemented from time to time, the "CREDIT AGREEMENT"), among the Borrower,
Agent, and the lenders from time to time party to the Credit Agreement (each a
"LENDER" and collectively, the "LENDERS").

         B. The Borrower, the Agent, and the Lenders have agreed to amend the
Credit Agreement subject to the terms and conditions set out in this Amendment.

         NOW THEREFORE, in consideration of good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the undersigned agree
as follows:

         1. Amendment to Section 1.1 (Definitions). SECTION 1.1 of the Credit
Agreement is hereby amended (a) to delete the defined terms "MANAGEMENT FEE" and
"MANAGEMENT FEE TERMINATION PAYMENT", (b) to amend and restate the defined terms
"ACQUISITION", "APPLICABLE MARGIN", "COMMITMENT AMOUNT", "EBIT", "EBITDA",
"MINIMUM INTEREST COVERAGE RATIO", "NON-CASH Charges", and "UTILICORP", and (c)
to add the following new defined terms "CONSOLIDATED NET ACCOUNTS",
"CONSOLIDATED NET Assets", "CONSOLIDATED NET PP&E", "MINIMUM ASSET COVERAGE
RATIO" and "PERMITTED CHARGES", in each case in their appropriate alphabetical
order:

                  ""ACQUISITION" means, a direct or indirect purchase by the
                  Borrower or any of its Subsidiaries for cash, stock, or other
                  securities or property, whether in one or more related
                  transactions, of all or substantially all of the assets or 50%
                  or more THAN 50% of voting securities or other equity
                  interests of a Person or a business unit, division or group of
                  a Person.

                  "APPLICABLE MARGIN" means, for Base Rate Loans or LIBOR Loans,
                  as applicable, for any day at such times as the relevant
                  Funded Debt to EBITDA Ratio is in one of the following ranges,
                  the percentage per annum set forth opposite such Funded Debt
                  to EBITDA Ratio for such Loans for each tier of the following
                  pricing grid:

<PAGE>

<Table>
<Caption>
                                              Funded Debt to
                     Tier                      EBITDA Ratio                    LIBOR Loans     Base Rate Loans
                     ----                      ------------                    -----------     ---------------
<S>                             <C>                                            <C>             <C>
                      I.        Greater than or equal to 3.5 to 1.0               3.50%             2.00%

                     II.        Greater than or equal to 3.0 to 1.0 but           3.00%             1.50%
                                less than 3.5 to 1.0

                    III.        Greater than or equal to 2.5 to 1.0 but           2.50%             1.00%
                                less than 3.0 to 1.0

                     IV.        Greater than or equal to 2.0 to 1.0 but           2.00%             0.50%
                                less than 2.5 to 1.0

                      V.        Less than 2.0 to 1.0                              1.50%             0.00%
</Table>

                  For the period from August 12, 2002, through the earlier of
                  (a) the date the Compliance Certificate and financial
                  statements required by SECTION 6.6(a)(ii) and SECTION 6.6(b),
                  for the fiscal quarter ended September 30, 2002, are required
                  to be provided to the Agent, and (b) the date such Compliance
                  Certificate and financial statements are provided to the
                  Agent, the Applicable Margin for LIBOR Loans and for Base Rate
                  Loans determined as of such quarter shall be equal to the
                  respective Applicable Margins in tier I on the above pricing
                  grid. Thereafter, the Applicable Margin shall be set according
                  to the tiers on the above pricing grid as determined by the
                  Agent based on the applicable Compliance Certificate and
                  financial statements required by SECTION 6.6(a) and SECTION
                  6.6(b), and any change in the Applicable Margin shall be
                  effective as of the earlier of (a) the date such Compliance
                  Certificate and financial statements are required to be
                  provided to the Agent, and (b) the date such Compliance
                  Certificate and financial statements are provided to the
                  Agent. If Borrower fails to timely provide to the Agent the
                  Compliance Certificate and the financial statements, then from
                  the period beginning the first day after the date such
                  Compliance Certificate and financial statements are required
                  to be provided to the Agent and ending on the date such items
                  are actually provided to the Agent, the respective Applicable
                  Margins for LIBOR Loans and for Base Rate Loans shall be the
                  Applicable Margins in tier I on the above pricing grid."

                  ""COMMITMENT AMOUNT" means, an amount equal to (a) from the
                  Effective Date through August 11, 2002, $350,000,000, (b) from
                  August 12, through March 31, 2003, $275,000,000, (c) from
                  April 1, 2003 through December 31, 2003, $250,000,000, and (d)
                  from January 1, 2004 through the Commitment Termination Date,
                  $225,000,000, in each case as such amount may be reduced from
                  time to time pursuant to the terms of this Agreement."

                  ""CONSOLIDATED NET ACCOUNTS" means, as of any date of
                  determination, accounts receivable set out in the consolidated
                  balance sheet of the Borrower and its Subsidiaries as accounts
                  receivable, net of allowances, and in each case, as determined
                  in accordance with GAAP."

                  ""CONSOLIDATED NET ASSETS" means, as of any date of
                  determination, the sum of (a) Consolidated Net Accounts, plus
                  (b) Consolidated Net PP&E."

                  ""CONSOLIDATED NET PP&E" means, as of any date of
                  determination, the difference of (a) total property, plant and
                  equipment of the Borrower and its Subsidiaries set out in the
                  consolidated balance sheet of the Borrower and its
                  Subsidiaries, minus (b) accumulated depreciation expense
                  attributed to such items, set out in the consolidated balance
                  sheet of the Borrower and its Subsidiaries as "property and
                  equipment, net", and in each case, as determined in accordance
                  with GAAP."

                  ""EBIT" means, for any period, on a trailing four fiscal
                  quarter basis, the sum of Consolidated Net Income plus,
                  without duplication, each of the following to the

                                       2
<PAGE>

                  extent actually deducted in determining Consolidated Net
                  Income: (a) Consolidated Interest Expense; (b) provisions for
                  taxes based on income or revenues; (c) provisions made in
                  accordance with SFAS 142, which taken together with all other
                  charges previously taken in connection with SFAS 142, do not,
                  in the aggregate, exceed $800,000,000; (d) to the extent
                  applicable, Permitted Charges; and (e) non-cash charges
                  related to the Borrower's stock option program or stock
                  compensation plan as required to be taken pursuant to GAAP, in
                  each case calculated on a consolidated basis for the Borrower
                  and its Subsidiaries and as determined in accordance with
                  GAAP."

                  ""EBITDA" means, for any period, on a trailing four fiscal
                  quarter basis (using the historical financial results of any
                  business acquired in an Acquisition through the Effective
                  Date, to the extent applicable, all on a pro forma basis,
                  consistent with SEC regulations), the sum of Consolidated Net
                  Income plus, without duplication, each of the following to the
                  extent actually deducted in determining Consolidated Net
                  Income: (a) Consolidated Interest Expense; (b) provisions for
                  taxes based on income or revenues; (c) the amount of all
                  depreciation and amortization expense deducted in determining
                  Consolidated Net Income; (d) charges taken in accordance with
                  SFAS 142, which when taken together with all other charges
                  previously taken in connection with SFAS 142, do not, in the
                  aggregate, exceed $800,000,000; (e) without duplication,
                  Permitted Charges; and (f) without duplication, Non-Cash
                  Charges, all calculated on a consolidated basis for the
                  Borrower and its Subsidiaries and as determined in accordance
                  with GAAP. Upon the consummation of any Acquisition after the
                  Effective Date, EBITDA may be calculated, subject to the
                  immediately following sentence, using a calculation which (y)
                  includes the historical financial results of the acquired
                  business on a pro forma trailing four fiscal quarter basis
                  (consistent with SEC regulations), and (z) assumes that the
                  consummation of such Acquisition (and the incurrence,
                  refinancing, or assumption of any Indebtedness in connection
                  with such Acquisition) occurred on the first day of the
                  trailing four fiscal quarter period. The foregoing adjustment
                  to EBITDA to take into account an Acquisition may only be made
                  if the balance sheet and statements of income, retained
                  earnings, and cash flows of the acquired Person (or the Person
                  from whom the assets, securities or other equity interests
                  were acquired), are in compliance with SEC regulations and
                  requirements regarding the preparation and presentation of
                  historical financial information and pro forma financial
                  information."

                  ""MINIMUM ASSET COVERAGE RATIO" means, when determined, the
                  ratio of (a) Consolidated Net Assets, to (b) Senior Debt."

                  ""MINIMUM INTEREST COVERAGE RATIO" means, for any period, on a
                  trailing four fiscal quarter basis, the ratio of (a) EBIT, to
                  (b) the sum of Consolidated Interest Expense (excluding any
                  Make-Whole Amount (as defined in the Note Purchase Agreement)
                  or Modified Make-Whole Amount (as defined in the Note Purchase
                  Agreement), as applicable, paid in connection with asset sales
                  which result in a mandatory prepayment on the Senior Notes)),
                  plus the amount of any dividend or distribution recognized in
                  respect of the Preferred Stock during such period."

                  ""NON-CASH CHARGES" means, for any period, the amount of
                  non-cash charges determined in accordance with GAAP; provided
                  that, if any cash outlay is made during such period in respect
                  of such non-cash charge, only the amount of such

                                       3
<PAGE>

                  non-cash charge which exceeds the amount of the cash outlay
                  may be added back to Consolidated Net Income for purposes of
                  calculating EBITDA."

                  ""PERMITTED CHARGES" means, for any period, on a trailing four
                  fiscal quarter basis, expenses, write-offs or losses, which in
                  each case have been (a) paid, incurred or realized on or
                  before June 30, 2003, (b) disclosed to the Agent in such
                  detail as the Agent deems acceptable, and (c) determined in
                  accordance with GAAP, and which relate to:

                           (a) employee terminations, equipment sales, operating
                  lease termination expenses, and real estate lease terminations
                  (including related clean-up and moving charges) which, in the
                  aggregate do not exceed $29,000,000, provided that, cash
                  payments in connection with the items under this clause (a),
                  may not, in the aggregate, exceed $20,000,000,

                           (b) accounts receivable, notes receivable, retainage,
                  costs and earnings in excess of billing, and other amounts
                  which (i) are either (A) set out in the consolidated balance
                  sheet of the Borrower and its Subsidiaries for the fiscal
                  quarter ended June 30, 2002 as net of allowances or (B)
                  disclosed in writing to the Agent on August 12, 2002 or (ii)
                  relate to the contractual obligations of Borrower or its
                  Subsidiaries existing on June 30, 2002 as disclosed in writing
                  to the Agent on August 12, 2002, and which have been charged
                  off as doubtful for collection, provided that, all such
                  amounts under clauses (i) and (ii) may not, in the aggregate,
                  exceed $62,000,000(as adjusted for future recoveries),

                           (c) the proxy contest with Utilicorp, and which do
                  not, in the aggregate, exceed $13,000,000, and

                           (d) (i) advisory, legal, and bank fees and expenses
                  in connection with the negotiation, execution and delivery of
                  the Eighth Amendment to this Agreement (including any related
                  amendment to the Senior Notes in connection therewith) and
                  related third party due diligence conducted on behalf of the
                  Agent in connection therewith, and which do not, in the
                  aggregate, exceed $3,500,000, and (ii) non-cash expenses
                  related to prior financing transaction costs which have been
                  capitalized and are required to be expensed in accordance with
                  GAAP."

                  ""UTILICORP" means Aquila, Inc., a Delaware corporation (f/k/a
                  UtiliCorp United Inc.)."

         2. Amendments to Section 2.10 (Mandatory Prepayments of Loans). SECTION
2.10 of the Credit Agreement is hereby deleted in its entirety and replaced with
the following SECTION 2.10:

                  "Section 2.10  Mandatory Prepayment of Loans.

                  (a) If the aggregate principal amount of outstanding Loans and
                  L/C Obligations shall at any time for any reason exceed the
                  Commitment Amount then in effect, the Borrower shall,
                  immediately and without notice or demand, pay the amount of
                  such excess to the Agent for the ratable benefit of the
                  Lenders as a prepayment of the Loans and, if all Loans have
                  been paid, a pre-funding of Letters of Credit pursuant to the
                  provisions of SECTION 7.4.

                  (b) If, on or after August 12, 2002, the Borrower or any of
                  the Subsidiaries issues any additional Senior Notes under the
                  Note Purchase Agreement, then the

                                       4
<PAGE>

                  Borrower shall promptly, without notice or demand, pay all
                  proceeds from such issuance (net of usual and customary
                  transaction costs and expenses actually incurred in connection
                  with such issuance) to the Agent for the ratable benefit of
                  the Lenders as a prepayment of the Loans and if all Loans have
                  been paid, as a pre-funding of Letters of Credit pursuant to
                  the provisions of SECTION 7.4, and upon such issuance, the
                  Commitment Amount shall be automatically and permanently
                  reduced by an amount equal to the amount of the net proceeds
                  from such issuance.

                  (c) If, on or after August 12, 2002, the Borrower or any of
                  its Subsidiaries issues any Funded Debt, which, in the
                  aggregate, exceeds $15,000,000, other than the Indebtedness
                  referenced in SUBSECTION (b) above, then the Borrower shall
                  promptly, without notice or demand, pay all proceeds from such
                  issuance (net of usual and customary transaction costs and
                  expenses actually incurred in connection with such issuance)
                  to the Agent for the ratable benefit of the Lenders and the
                  holders of the Senior Notes (based on the proportion of the
                  Commitment Amount under this Agreement and the proportion of
                  the outstanding principal amount of the Senior Notes to the
                  sum of both) as a prepayment respectively of (i) the Loans,
                  and if all Loans have been paid, a pre-funding of Letters of
                  Credit pursuant to the provisions of SECTION 7.4, and upon
                  such issuance, the Committed Amount shall be automatically and
                  permanently reduced by an amount equal to the amount of the
                  proceeds of such issuance required to be paid to the Agent
                  under this SECTION 2.10(c)(i), and (ii) the Senior Notes.

                  (d) If, on or after August 12, 2002, the Borrower receives
                  proceeds from the collection of accounts receivable to the
                  extent such proceeds represent a portion of accounts
                  receivable which had been written off by the Borrower as
                  doubtful for collection, then the Borrower shall promptly,
                  without notice or demand, pay the portion of such net proceeds
                  which had been written off to the Agent for the ratable
                  benefit of the Lenders and the holders of the Senior Notes
                  (based on the proportion of the Commitment Amount under this
                  Agreement and the proportion of the outstanding principal
                  amount of the Senior Notes to the sum of both) as a prepayment
                  respectively of (i) the Loans, and if all Loans have been
                  paid, a pre-funding of Letters of Credit pursuant to the
                  provisions of SECTION 7.4, and upon such issuance, the
                  Committed Amount shall be automatically and permanently
                  reduced by an amount equal to the amount of the proceeds of
                  such collection required to be paid to the Agent under this
                  SECTION 2.10(d)(i), and (ii) the Senior Notes.

                  (e) If any asset disposition occurs under SECTIONS 6.16(d) and
                  (E), the Borrower shall comply with the prepayment provisions
                  in such SECTIONS 6.16(d) and (e).

                  (f) Any mandatory prepayment of Loans pursuant to this
                  Agreement shall not be limited by the notice provision for
                  prepayments set forth in SECTION 2.9, but immediately upon
                  determining the need to make any such prepayment, the Borrower
                  shall notify the Agent of such required prepayment. Each such
                  prepayment shall be accompanied by a payment of all accrued
                  and unpaid interest on the Loans prepaid and any applicable
                  breakage fees and funding losses pursuant to SECTION 2.12."

         3. Amendment to Section 3.1 (Fees). SECTION 3.1(a) of the Credit
Agreement is hereby deleted in its entirety and replaced with the following
SECTION 3.1(a):

                                       5
<PAGE>

                           "(a) Commitment Fee. For the period from August 12,
                  2002, to and including the Commitment Termination Date the
                  Borrower shall pay to the Agent for the ratable account of the
                  Lenders, a Commitment Fee (computed on a basis of a
                  365/366-day year and actual days elapsed) on an amount equal
                  to the average daily difference between (i) the sum of the
                  Commitment Amount and (ii) the outstanding Revolving Loans and
                  L/C Obligations, such Commitment Fee to be calculated, for any
                  day, at such times as the relevant Funded Debt to EBITDA Ratio
                  is in one of the following tiers, based upon the Commitment
                  Fee Percentage per annum set forth opposite the corresponding
                  Funded Debt to EBITDA Ratio in same tier set forth below,
                  times such amount:

<Table>
<Caption>
                                                                                          Commitment Fee
                       Tier                   Funded Debt to EBITDA Ratio                   Percentage
                       ----                   ---------------------------                 --------------
<S>                                <C>                                                    <C>
                         I.        Greater than or equal to 3.5 to 1.0                        0.500%

                        II.        Greater than or equal to 3.0 to 1.0 but less than          0.500%
                                   3.5 to 1.0

                       III.        Greater than or equal to 2.5 to 1.0 but less than          0.500%
                                   3.0 to 1.0

                        IV.        Greater than or equal to 2.0 to 1.0 but less than          0.375%
                                   2.5 to 1.0

                         V.        Less than 2.0 to 1.0                                       0.375%
</Table>

                  For the period from August 12, 2002, through the date the
                  Compliance Certificate and financial statements required by
                  SECTION 6.6(a)(ii) and SECTION 6.6(b), for the fiscal quarter
                  ended September 30, 2002, are required to be provided to the
                  Agent, the applicable Commitment Fee Percentage determined as
                  of such quarter shall be equal to the percentage in tier I,
                  and thereafter, the Commitment Fee Percentage shall be set by
                  the Agent at the same time and in the same manner as the
                  Applicable Margin is set. Such Commitment Fees shall be
                  payable in arrears commencing on September 30, 2002, and on
                  the last Business Day of each calendar quarter thereafter and
                  on the Maturity Date unless the Commitments are terminated in
                  whole on an earlier date, in which event the Commitment Fee
                  for the period to but not including the date of such
                  termination shall be paid in whole on the date of such
                  termination. If Borrower fails to timely provide to the Agent
                  the Compliance Certificate and the financial statements, then
                  from the period beginning the first day after the date such
                  Compliance Certificate and financial statements are required
                  to be provided to the Agent and ending on the date such items
                  are actually provided to the Agent, the Commitment Fee shall
                  be the Commitment Fee in tier I on the above pricing grid."

         4. Amendment to Section 5.19 (Year 2000 Compliance). SECTION 5.19 of
the Credit Agreement is hereby deleted in its entirety and replaced with the
following SECTION 5.19:

                  "Section 5.19 [Intentionally Omitted]."

         5. Amendment to Section 6.6(a) (Financial Reports and Other
Information). SECTION 6.6(a) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following SECTION 6.6(a):

                           "(a) The Borrower and its Subsidiaries will maintain
                  a system of accounting in such manner as will enable
                  preparation of financial statements in accordance with

                                       6
<PAGE>

                  GAAP and will furnish to the Agent and its authorized
                  representatives such information about the business and
                  financial condition of the Borrower and its Subsidiaries,
                  including, without limitation, any corporate documents and
                  records, within such time period, as the Agent or any Lender
                  may reasonably request; and, without any request, will furnish
                  to the Agent:

                                    (i) within forty-five (45) days after the
                           end of each month of each fiscal year of the
                           Borrower, (A) the unaudited consolidated balance
                           sheet of the Borrower and its Subsidiaries as at the
                           end of such month and the related unaudited
                           consolidated statements of income for such month and
                           for the portion of the fiscal year ended with the
                           last day of such month, in form and detail acceptable
                           to the Agent, provided that, the Borrower is not
                           required to furnish financial statements under this
                           clause (i) for the months required under clauses (ii)
                           and (iii) below, and (B) (i) an accounts receivable
                           aging summary, and (ii) a status report on (y) the
                           items described in clause (b)(ii) of the definition
                           of "Permitted Charges", and (z) the 20 largest
                           accounts receivable of the Borrower, all of which
                           under this clause (B) shall be in form and detail
                           reasonably acceptable to the Agent;

                                    (ii) within forty-five (45) days after the
                           end of each fiscal quarter of each fiscal year of the
                           Borrower, the consolidated balance sheet of the
                           Borrower and its Subsidiaries as at the end of such
                           fiscal quarter and the related consolidated
                           statements of income and retained earnings and of
                           cash flows for such fiscal quarter and for the
                           portion of the fiscal year ended with the last day of
                           such fiscal quarter, and a summary of asset
                           dispositions during such period and in the aggregate
                           to date under SECTION 6.16(c), (d) and (e), all of
                           which under this clause (ii) shall be in form and
                           detail satisfactory to the Agent and in the case of
                           consolidated statements, in the form filed with the
                           SEC and within five (5) days thereafter, a
                           certificate of an officer of the Borrower acceptable
                           to the Agent that such financial reports fairly
                           present the financial condition of the Borrower and
                           its Subsidiaries as of the dates indicated and the
                           results of their operations and changes in their cash
                           flows for the periods indicated and that they have
                           been prepared in accordance with GAAP, in each case,
                           subject to normal year-end audit adjustments and the
                           omission of any footnotes as permitted by the SEC;
                           and

                                    (iii) within one hundred twenty (120) days
                           after the end of each fiscal year of the Borrower,
                           consolidated and consolidating balance sheets of the
                           Borrower and its Subsidiaries as at the end of such
                           fiscal year and the related consolidated and
                           consolidating statements of income and consolidated
                           statements of retained earnings and of cash flows for
                           such fiscal year and setting forth consolidated
                           comparative figures for the preceding fiscal year and
                           certified by an officer of the Borrower acceptable to
                           the Agent to the effect that such statements fairly
                           present the financial condition of the Borrower and
                           its Subsidiaries as of the dates indicated and the
                           results of their operations and changes in their cash
                           flows, and in the case of the consolidated
                           statements, audited by an independent
                           nationally-recognized accounting firm acceptable to
                           the Agent."

         6. Amendment to Section 6.6(b)(Financial Reports and Other
Information). SECTION 6.6(b) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following SECTION 6.6(b):

                           "(b) (i) Each financial statement furnished to the
                  Agent pursuant to SECTION 6.6(a)(i) shall be accompanied by a
                  Compliance Certificate

                                       7
<PAGE>

                  substantially in the form of EXHIBIT 6.6 showing the
                  Borrower's compliance with the Minimum Asset Coverage Ratio.

                                    (ii) Each financial statement furnished to
                           the Agent pursuant to SECTION 6.6(a)(ii) and (iii)
                           shall be accompanied by (i) a written certificate
                           signed by an officer of the Borrower acceptable to
                           the Agent to the effect that (x) no Default or Event
                           of Default has occurred during the period covered by
                           such statements or, if any such Default or Event of
                           Default has occurred during such period, setting
                           forth a description of such Default or Event of
                           Default and specifying the action, if any, taken by
                           the Borrower to remedy the same, and (y) the
                           representations and warranties contained herein are
                           true and correct in all material respects as though
                           made on the date of such certificate, except to the
                           extent that any such representation or warranty
                           relates solely to an earlier date, in which case it
                           was true and correct as of such earlier date and
                           except as otherwise described therein, as a result of
                           the transactions expressly permitted hereunder or as
                           previously disclosed to the Lenders, and (ii) a
                           Compliance Certificate substantially in the form of
                           EXHIBIT 6.6 showing the Borrower's compliance with
                           the financial covenants set out herein."

         7. Amendments to Section 6.11 (Restrictions on Fundamental Changes).
SECTION 6.11 of the Credit Agreement is hereby deleted in its entirety and
replaced with the following SECTION 6.11:

                  "Restrictions on Fundamental Changes. Neither the Borrower nor
                  any of its Subsidiaries shall be a party to any merger into or
                  consolidation with, make an Acquisition or otherwise purchase
                  or acquire all or substantially all of the assets or stock of,
                  any other Person, or sell all or substantially all of its
                  assets or stock (other than as permitted under SECTION 6.16),
                  except the Borrower may purchase or otherwise acquire all or
                  substantially all of the stock or assets of, or otherwise
                  acquire by merger or consolidation, any of its Subsidiaries,
                  and any such Subsidiary may merge into, or consolidate with,
                  or purchase or otherwise acquire all or substantially all of
                  the assets or stock of or sell all or substantially all of its
                  assets or stock to, any other Subsidiary of the Borrower or
                  the Borrower, in each case so long as (a) if the transaction
                  is with the Borrower, the Borrower shall be the surviving
                  entity to any such merger or consolidation, or (b) if the
                  transaction is not with the Borrower, a domestic Subsidiary
                  shall be the surviving entity to any such merger or
                  consolidation. Except as otherwise permitted in this SECTION
                  6.11, the Borrower shall not sell or dispose of any capital
                  stock of or its ownership interest in any of the Guarantors or
                  any other Subsidiaries which it may form. Borrower shall give
                  the Agent the notice required under SECTION 6.9."

         8. Amendments to Section 6.15 (Loans, Advances and Investments).
SECTION 6.15 of the Credit Agreement is hereby amended by deleting SUBSECTIONS
(f), (g), (h) and (k) in their entirety and replacing them with SUBSECTIONS (f),
(g), (h), and (k) respectively, as follows:

                  "        (f) to the extent permitted by, and in compliance
                  with, applicable law, loans to employees of the Borrower or
                  any of its Subsidiaries, provided that all such loans shall
                  not exceed $2,000,000 at any one time;

                           (g) Investments made in Persons other than Borrower
                  or its Subsidiaries, provided that, such Investment made after
                  June 30, 2002 may not, in the aggregate, exceed $2,000,000;

                                       8
<PAGE>

                           (h) [intentionally omitted];

            . . .

                           (k) [intentionally omitted];"

         9. Amendment to Section 6.16 (Transfer of Assets). SECTION 6.16 of the
Credit Agreement is hereby deleted in its entirety and replaced with the
following SECTION 6.16:

                  "Section 6.16 Transfer of Assets. The Borrower and its
                  Subsidiaries shall not permit any sale, transfer, conveyance,
                  assignment or other disposition of any asset of the Borrower
                  or any of its Subsidiaries except:

                           (a) transfers of inventory in the ordinary course of
                  business;

                           (b) the retirement or replacement of assets (with
                  assets of equal or greater value) in the ordinary course of
                  business;

                           (c) transfers of any assets among (i) the Borrower
                  and its non-domestic Subsidiaries not to exceed, in the
                  aggregate, $5,000,000, or (ii) the Borrower and any of its
                  domestic Subsidiaries;

                           (d) sales, transfers or conveyances of accounts
                  receivable for fair and adequate consideration and for cash,
                  and all proceeds from the sale, transfer or conveyance of such
                  assets shall be paid to the Agent, for the ratable benefit of
                  the Lenders and the holders of the Senior Notes (based on the
                  proportion of the Commitment Amount under this Agreement and
                  the proportion of the outstanding principal amount of the
                  Senior Notes to the sum of both) as a prepayment respectively
                  of (i) the Loans, and if all Loans have been paid, a
                  pre-funding of Letters of Credit pursuant to the provisions of
                  SECTION 7.4, and upon such disposition, the Commitment Amount
                  shall be automatically and permanently reduced by an amount
                  equal to the amount of such proceeds required to be paid to
                  the Agent pursuant to this SECTION 6.16(d)(i), and (ii) the
                  Senior Notes; and

                           (e) to the extent not included in clauses (a) through
                  (d) above, dispositions of ASSETS, for fair and adequate
                  consideration and for cash, provided that, dispositions under
                  this SUBSECTION (e) may not, in the aggregate, exceed
                  $50,000,000 in book value during the term of this Agreement,
                  and all proceeds from the disposition of such assets (net of
                  usual and customary transaction costs and expenses actually
                  incurred in connection with such disposition) shall be paid to
                  the Agent, for the ratable benefit of the Lenders and the
                  holders of the Senior Notes (based on the proportion of the
                  Commitment Amount under this Agreement and the proportion of
                  the outstanding principal amount of the Senior Notes to the
                  sum of both) as a prepayment respectively of (i) the Loans,
                  and if all Loans have been paid, a pre-funding of Letters of
                  Credit pursuant to the provisions of SECTION 7.4, and upon
                  such disposition, the Commitment Amount shall be automatically
                  and permanently reduced by an amount equal to the amount of
                  such proceeds required to be paid to the Agent pursuant to
                  this SECTION 6.16(e)(i), and (ii) the Senior Notes. Amounts
                  required to the paid to the Lenders and the holders of the
                  Senior Notes under this SECTION 6.16(e) shall be made on the
                  date the Compliance Certificate and financial statements are
                  required to be delivered under SECTION 6.6(b), provided that,
                  in the event asset sales during a

                                       9
<PAGE>

                  month under this SECTION 6.16(e) exceed $1,000,000 in book
                  value in the aggregate, amounts required to be paid to the
                  Lenders and the holders of the Senior Notes pursuant to this
                  SECTION 6.16(e) as a result of all such assets sales which
                  have occurred during such month shall be made within 15 days
                  after the end of such month."

         10. Amendments to Section 6.19 (Capital Expenditures). SECTION 6.19 of
the Credit Agreement is hereby deleted in its entirety and replaced with the
following SECTION 6.19:

                  "Section 6.19 Capital Expenditures.

                           (a) Neither the Borrower nor any of its Subsidiaries
                  shall make or commit to make Capital Expenditures greater than
                  (i) for fiscal year 2002, $60,000,000, and (ii) for fiscal
                  year 2003 and each fiscal year thereafter, $50,000,000. No
                  portion of any annual limit may be carried forward to a
                  subsequent fiscal year.

                           (b) In addition to the annual limits under SECTION
                  6.19(a), if the Borrower executes an eligible contract, then
                  the Borrower may make Capital Expenditures in respect of such
                  contract in an amount equal to the lesser of (i) the actual
                  amount required by such contract, and (ii) $15,000,000,
                  provided that, (A) in respect of each such contract, Capital
                  Expenditures not made within 12 months after the date of such
                  contract shall be applied against the annual limits under
                  SECTION 6.19(a), and (B) the amount of Capital Expenditures
                  under this SECTION 6.19(b) for all such contracts may not, in
                  the aggregate, exceed $15,000,000 in any fiscal year. Upon
                  execution of each eligible contract, the Borrower shall
                  promptly deliver a copy of such contract to the Administrative
                  Agent, together with a summary of the Capital Expenditures
                  required by such contract in form and detail acceptable to the
                  Administrative Agent. As used in this SECTION 6.19(b),
                  "ELIGIBLE CONTRACT" means, a utility outsourcing contract with
                  revenues to the Borrower of at least $75,000,000 during any 12
                  consecutive month period prior to 18 months after execution of
                  such contract."

         11. Amendment to Section 6.20 (Minimum Consolidated Net Worth). SECTION
6.20 of the Credit Agreement is hereby deleted in its entirety and replaced with
the following SECTION 6.20:

                  "Section 6.20 Minimum Consolidated Net Worth. The Borrower
                  will maintain a minimum Consolidated Net Worth of not less
                  than an amount equal to the sum of (a) 90% of Consolidated Net
                  Worth as of June 30, 2002 (determined without giving effect to
                  any adjustments made in accordance with SFAS 142), plus (b)
                  for each fiscal quarter ended prior to (but not on) such date
                  of determination, commencing with the fiscal quarter ended
                  September 30, 2002, the total of (i) an amount equal to 75% of
                  Consolidated Net Income for such fiscal quarter, if positive,
                  plus (ii) an amount equal to 100% of the amount of any equity
                  issuance by the Borrower, including equity issued in a
                  secondary offering or equity issued to acquire another entity
                  in an Acquisition, minus (iii) any distributions to
                  shareholders of any Subchapter S corporation acquired in an
                  Acquisition as a result of operations of such corporation
                  prior to the closing of the Acquisition, minus (iv) Permitted
                  Charges referenced in clauses (a) and (b) of such definition
                  which are applicable to such period, and minus (v) without
                  duplication, charges taken in accordance with SFAS 142 in
                  accordance with GAAP, which when taken together with all other
                  charges previously taken in connection with SFAS 142, do not,
                  in the aggregate, exceed $800,000,000. Increases in
                  Consolidated

                                       10
<PAGE>

                  Net Worth required after June 30, 2002 shall be appropriately
                  adjusted to eliminate any adverse effects on the Consolidated
                  Net Worth of the Borrower occasioned by the expensing of
                  Modified Make-Whole Amounts (as defined in the Note Purchase
                  Agreement) paid pursuant to Section 4.4 of Amendment No. 1 to
                  the Note Purchase Agreement. The calculation of Consolidated
                  Net Worth under this SECTION 6.20 shall not take into
                  consideration the non-cash charges related to the Borrower's
                  stock option program or stock compensation plan as required to
                  be taken pursuant to GAAP ."

         12. Amendments to Section 6.21 (Minimum Interest Coverage Ratio).
SECTION 6.21 of the Credit Agreement is hereby deleted in its entirety and
replaced with the following SECTION 6.21:

                  "Section 6.21 Minimum Interest Coverage Ratio. The Borrower
                  will maintain a Minimum Interest Coverage Ratio not less than
                  the ratio set out below for the applicable period:

                  For the period ending June 30, 2002:        3.00 to 1.00

                  For the period ending September 30, 2002:   2.40 to 1.00

                  For the period ending  December 31, 2002:   2.00 to 1.00

                  For the period ending  March 31, 2003:      1.70 to 1.00

                  For the period ending  June 30, 2003:       1.90 to 1.00

                  For the period ending  September 30, 2003:  2.10 to 1.00

                  For the period ending December 31, 2003
                  and thereafter:                             2.30 to 1.00"

         13. Amendments to Section 6.22 (Funded Debt to EBITDA Ratio). SECTION
6.22 of the Credit Agreement is hereby deleted in its entirety and replaced with
following SECTION 6.22:

                  "Section 6.22 Funded Debt to EBITDA Ratio. The Borrower will
                  maintain a maximum Funded Debt to EBITDA Ratio not greater
                  than the ratio set out below for the applicable period:

                  For the period ending June 30, 2002:        3.50 to 1.00

                  For the period ending September 30, 2002:   4.30 to 1.00

                  For the period ending  December 31, 2002:   4.40 to 1.00

                  For the period ending  March 31, 2003:      4.50 to 1.00

                  For the period ending  June 30, 2003:       4.10 to 1.00

                  For the period ending  September 30, 2003:  4.00 to 1.00

                  For the period ending December 31, 2003
                  and thereafter:                             3.50 to 1.00"

                                       11
<PAGE>

         14. Amendments to Section 6.23 (Senior Debt to EBITDA). SECTION 6.23 of
the Credit Agreement is hereby deleted in its entirety and replaced with the
following SECTION 6.23:

                  "Section 6.23 Senior Debt to EBITDA. The Borrower will
                  maintain a maximum Senior Debt to EBITDA Ratio not greater
                  than the ratio set out below for the applicable period:

                  For the period ending June 30, 2002:        3.00 to 1.00

                  For the period ending September 30, 2002:   3.10 to 1.00

                  For the period ending  December 31, 2002:   3.10 to 1.00

                  For the period ending  March 31, 2003:      3.10 to 1.00

                  For the period ending  June 30, 2003:       2.80 to 1.00

                  For the period ending  September 30, 2003:  2.75 to 1.00

                  For the period ending December 31, 2003
                  and thereafter:                             2.50 to 1.00"

         15. Amendment to Section 6 (Covenants). Existing SECTION 6.24 of the
Credit Agreement is hereby re-numbered as SECTION 6.25 and existing SECTION 6.25
of the Credit Agreement is hereby re-numbered SECTION 6.24 and deleted in its
entirety and replaced with the following SECTION 6.24:

                  "6.24. Minimum Asset Coverage. The Borrower will maintain a
                  Minimum Asset Coverage Ratio not less than the ratio set out
                  below for the applicable period:

                  Through December 31, 2002:                  1.55 to 1.00

                  Thereafter:                                 1.65 to 1.00"

         16. Amendment to Section 6 (Covenants). SECTION 6 of the Credit
Agreement is hereby amended by adding a new SECTION 6.26 in its appropriate
numerical order as follows:

                           "6.26. Maintenance of Most Favored Lender Status. The
                  Borrower hereby acknowledges and agrees that if, on or before
                  June 30, 2004, the Borrower shall enter into any agreement or
                  amendment with any lender or holder of its Funded Debt which
                  provides for the benefit of any such lender or holder, any
                  covenant that is in addition to, or more favorable to such
                  Person than the covenants contained in this Agreement, then,
                  and in each and any such event, the covenants in this
                  Agreement shall be, and shall be deemed to be, without any
                  further action on the part of the Borrower or any other Person
                  being necessary or required, amended to afford the Lenders the
                  same benefits and rights with respect to such matters as such
                  agreements or amendments provide to any such other lender or
                  holder. In addition, if the Borrower amends the Note Purchase
                  Agreement or the Senior Notes to increase the Applicable
                  Margin (as defined in the Note Purchase Agreement) paid to the
                  holders of the Senior Notes, the Borrower will execute and
                  deliver to the Lenders an amendment to this Agreement to
                  provide the Lenders a corresponding increase in the Applicable
                  Margin. The Borrower will promptly deliver to the Agent a copy
                  of each such

                                       12
<PAGE>

                  agreement or amendment entered into after the date hereof.
                  Without limiting the effectiveness of the first sentence of
                  this SECTION 6.26, the Borrower agrees, no later than thirty
                  (30) days following the date of such agreement or amendment,
                  to enter into such documentation as the Majority Lenders may
                  reasonably request to evidence the amendments provided for in
                  this SECTION 6.26."

         17. Amendment to Section 7.1 (Events of Default). SECTION 7.1(b) of the
Credit Agreement is hereby deleted in its entirety and replaced with the
following SECTION 7.1(b):

                           "(b) default by the Borrower in the observance or
                  performance of any covenant set out in SECTIONS 6.6(e),
                  6.10(a), 6.11, 6.16, 6.21, 6.22, 6.23 6.24, 6.25, or 6.26."

         18. Amendment to Exhibit 6.6 (Form of Compliance Certificate). EXHIBIT
6.6 to the Credit Agreement is hereby deleted in its entirety and replaced with
EXHIBIT 6.6 attached to this Amendment.

         19. Amendments to Schedules. SCHEDULES 1.1, 2.2, and 5.1 to the Credit
Agreement are hereby deleted in their entirety and replaced with SCHEDULES 1.1,
2.2, and 5.1 attached to this Amendment.

         20. Conditions. This Amendment shall not be effective until:

                           (a) it has been duly executed and delivered by
                  Borrower, each Guarantor, and at least the Majority Lenders,

                           (b) a related amendment to the Note Purchase
                  Agreement and other documents required in connection therewith
                  have been executed and delivered in form and substance
                  satisfactory to the Agent and the Majority Lenders,

                           (c) the Agent has received a certificate of the
                  Secretary (or Assistant Secretary) and the President (or a
                  Vice President) of each of the Borrower and its Subsidiaries
                  containing specimen signatures of the individuals authorized
                  to execute on behalf of such Person this Amendment or any
                  other documents provided for in this Amendment, together with
                  (i) copies of resolutions of the Board of Directors (or
                  similar governing body) of such Person authorizing the
                  execution and delivery of this Amendment and of all other
                  documents to be executed by or actions to be taken by such
                  Person in connection with the execution and delivery of this
                  Amendment, and (ii) copies of such Person's organizational and
                  governing documents, or a certification by the Borrower or
                  Guarantor, as applicable, that no changes have been made to
                  such documents since the date last delivered to the Agent,

                           (d) the Agent has received a written certificate
                  signed by an officer of the Borrower acceptable to the Agent
                  as to (i) the absence of any action, suit, investigation or
                  proceeding pending or threatened in any court or before any
                  arbitrator or governmental authority that could reasonably be
                  expected to materially and adversely affect (A) the financial
                  condition of the Borrower or its Subsidiaries, or (B) the
                  ability of the Borrower and its Subsidiaries to perform their
                  respective obligations under the Credit Documents, as amended
                  by the Amendment, and (ii) the absence of a material breach of
                  any representation, warranty or agreement of the Borrower set
                  out in the Credit Documents,

                                       13
<PAGE>

                           (e) the completion of all due diligence with respect
                  to the Borrower and its Subsidiaries in scope and
                  determination satisfactory to the Agent and the Majority
                  Lenders,

                           (f) the Agent has received one or more legal opinions
                  in form and substance satisfactory to the Agent from the
                  Borrower's General Counsel or from Vinson & Elkins L.L.P., the
                  Borrower's special counsel, and

                           (g) the Agent has received such other documents, if
                  any, as the Agent may reasonably request.

         21. Post Closing Conditions. The following post closing conditions
shall be satisfied by the periods set out below, and the covenants in this
SECTION 21 shall be deemed to constitute covenants set forth in the Credit
Agreement, and failure to perform or observe any term in this SECTION 21 shall
constitute an Event of Default.

                           (a) Diligence and Collateral Review. Within sixty
                  (60) days after the date of this Amendment, the Agent will
                  cause, at the Borrower's sole cost and expense, a nationally
                  recognized accounting firm acceptable to the Agent, Borrower
                  and the holders of the Senior Notes to perform and complete
                  due diligence, including without limitation, a collateral
                  review and examination of the Borrower's and its Subsidiaries'
                  accounts receivable, work-in-process and backlog and other
                  matters in a manner which is satisfactory to the Agent and the
                  Majority Lenders.

                           (b) Real Estate Collateral. Within sixty (60) days
                  after the date of this Amendment, the Borrower shall, and
                  shall cause its Subsidiaries to execute and deliver mortgages
                  or deeds of trust, as applicable and in form and substance
                  satisfactory to the Agent (as collateral agent for the Lenders
                  and the holders of the Senior Notes), granting to the Agent
                  for the ratable benefit of the Lenders and the holders of the
                  Senior Notes, a first priority Lien upon, and security
                  interest in, the real property owned by the following
                  Subsidiaries:

                            (i)     Dillard Smith Construction Company,

                            (ii)    Golden State Utility Co.,

                            (iii)   H.L. Chapman Pipeline Construction, Inc.,

                            (iv)    Mears Group, Inc.,

                            (v)     North Houston Pole Line, L.P.,

                            (vi)    PAR Electrical Contractors, Inc.,

                            (vii)   Potelco, Inc.,

                            (viii)  R.A. Waffensmith & Company, Inc.,

                            (ix)    Sumter Utilities, Inc., and

                            (x)     Underground Construction Co., Inc.

                                       14
<PAGE>

                  Such foregoing property shall be subject to no other Liens
                  other than Permitted Liens. In addition, the Borrower shall,
                  at its sole cost and expense, deliver such surveys, mortgagee
                  title policies, environmental assessment reports, evidence of
                  insurance from an insurer acceptable to the Agent naming the
                  Agent as "loss payee" and "additional insured", as the case
                  may be, and other related documents reasonably requested by
                  the Agent, in each case in form and substance satisfactory to
                  the Agent.

                           (c) Lien Search. Upon execution of this Amendment, at
                  the Borrower's sole cost and expense, the Borrower shall order
                  a uniform commercial code Lien search, and promptly upon its
                  receipt it shall provide the Agent with the results of such
                  Lien search and copies of filings indicated therein as
                  requested by the Agent. Promptly upon receipt of such Lien
                  search, the parties shall amend and restate SCHEDULE 5.12 and
                  SCHEDULE 6.13 to the Credit Agreement with a summary of such
                  Lien search results reflecting only Permitted Liens.

         22. Fees and Expenses. The Borrower agrees to pay (a) to Agent for the
benefit of each Lender that executes and delivers this Amendment on or before
12:00 noon Central Time, August 12, 2002, an amendment fee equal to .375% of
such Lender's Commitment (after giving effect to this Amendment), and (b) the
reasonable fees and expenses of counsel to Agent for services rendered in
connection with the preparation, negotiation and execution of this Amendment.

         23. Representations and Warranties. The Borrower and the Guarantors
represent and warrant to the Lenders that (a) they possess all requisite power
and authority to execute, deliver and comply with the terms of this Amendment,
(b) this Amendment has been duly authorized and approved by all requisite
corporate, partnership or limited liability company action, as applicable, by
the Borrower and the Guarantors, (c) no consent of any Person is required for
the execution and delivery of this Amendment by the Borrower and its
Subsidiaries, (d) the execution and delivery of this Amendment by the Borrower
and the Guarantors will not violate their respective organizational documents,
(e) the representations and warranties in each Credit Document to which they are
a party are true and correct in all material respects on and as of the date of
this Amendment as though made on the date of this Amendment (except to the
extent that such representations and warranties speak to a specific date), (f)
each is in full compliance with all covenants and agreements contained in each
Credit Document to which it is a party, and (g) no Default or Event of Default
exists as of the date of this Amendment.

         24. Scope of Amendment and Consent; Reaffirmation; Release. After this
Amendment becomes effective, all references to the Credit Agreement shall refer
to the Credit Agreement as amended by this Amendment. Except as affected by this
Amendment, the Credit Documents are unchanged and continue in effect. If there
is any inconsistency between the terms of the Credit Agreement (as amended by
this Amendment) and any other Credit Document, the terms of the Credit Agreement
shall control and such other Credit Document shall be deemed to be amended
hereby to conform to the terms of the Credit Agreement. The Borrower and the
Guarantors hereby reaffirm their respective obligations under the Credit
Documents and agree that all Credit Documents to which they are a party remain
in full force and effect and continue to evidence their respective legal, valid
and binding obligations enforceable in accordance with their terms (as the same
are affected by this Amendment). The Borrower and the Guarantors hereby release
the Agent and the Lenders from any liability for actions or failures to act in
connection with the Credit Documents prior to the date of this Amendment. This
Amendment shall be binding upon and inure to the benefit of each of the
undersigned and their respective successors and permitted assigns.

                                       15
<PAGE>

         25. Miscellaneous.

                           (a) No Waiver of Defaults. This Amendment does not
                  constitute a waiver of, or a consent to, (i) any present or
                  future violation of or default under any provision of the
                  Credit Documents, or (ii) the Lenders' right to insist upon
                  future compliance with each term, covenant, condition and
                  provision of the Credit Documents.

                           (b) Form. Each agreement, document, instrument or
                  other writing to be executed and delivered or otherwise
                  furnished to the Agent as a condition to the effectiveness of
                  this Amendment must be in form and substance satisfactory to
                  the Agent and its counsel.

                           (c) Multiple Counterparts. This Amendment may be
                  executed in any number of counterparts with the same effect as
                  if all signatories have signed the same document. All
                  counterparts must be construed together to constitute one and
                  the same instrument. Facsimile signatures shall be given the
                  same effect as original signatures.

                           (d) Governing Law. This Amendment and the other
                  Credit Documents must be construed, and their performance
                  enforced, under Texas law.

                           (e) Entirety. THE CREDIT DOCUMENTS, AS AMENDED BY
                  THIS AMENDMENT, REPRESENT THE FINAL AGREEMENT BETWEEN THE
                  BORROWER, GUARANTORS, THE AGENT, AND THE LENDERS AND MAY NOT
                  BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
                  SUBSEQUENT ORAL AGREEMENTS BY THE PARTIES. THERE ARE NO
                  UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

  [SIGNATURES AND GUARANTORS' CONSENT AND AGREEMENT APPEAR ON FOLLOWING PAGES.]

                                       16
<PAGE>

         EXECUTED as of the date first written above.

                                      QUANTA SERVICES, INC.

                                      By:  /s/ NICK GRINDSTAFF
                                          --------------------------------------
                                               Nick Grindstaff
                                               Treasurer

                                      BANK OF AMERICA, N.A.,
                                      as Administrative Agent

                                      By:  /s/ SUZANNE M. PAUL
                                          --------------------------------------
                                               Suzanne M. Paul, Vice President

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

                                      By:  /s/ GARY L. MINGLE
                                          --------------------------------------
                                               Gary L. Mingle
                                               Senior Vice President

                                      BANK ONE, NA,
                                      as a Documentation Agent and as a Lender

                                      By: /s/ DENNIS WARREN
                                          --------------------------------------
                                      Name:   Dennis Warren
                                            ------------------------------------
                                      Title:  First Vice President
                                             -----------------------------------

                                      FLEET NATIONAL BANK
                                      (f/k/a Bank Boston, N.A.), as a
                                      Documentation Agent and as a Lender

                                      By:
                                          --------------------------------------
                                      Name:
                                            ------------------------------------
                                      Title:
                                             -----------------------------------

                       [SIGNATURE PAGE TO EIGHTH AMENDMENT
             TO THIRD AMENDED AND RESTATED SECURED CREDIT AGREEMENT]

<PAGE>

                                      CREDIT LYONNAIS NEW YORK BRANCH,
                                      as a Managing Agent and as a Lender

                                      By: /s/ ANITA KOC
                                          --------------------------------------
                                      Name:   Anita Koc
                                            ------------------------------------
                                      Title:  Senior Vice President
                                             -----------------------------------

                                      THE BANK OF NOVA SCOTIA,
                                      as a Managing Agent and as a Lender

                                      By: /s/ LIZ HANSON
                                          --------------------------------------
                                      Name:   Liz Hanson
                                            ------------------------------------
                                      Title:  Director
                                             -----------------------------------

                                      NATIONAL CITY BANK,
                                      as a Lender

                                      By:
                                         ---------------------------------------
                                      Name:
                                           -------------------------------------
                                      Title:
                                            ------------------------------------

                                      LASALLE BANK NATIONAL ASSOCIATION,
                                      as a Lender

                                      By: /s/ RICHARD J. KRESS
                                          --------------------------------------
                                      Name:   Richard J. Kress
                                            ------------------------------------
                                      Title:  First Vice Preisdent
                                             -----------------------------------

                                      WACHOVIA BANK, NATIONAL ASSOCIATION (f/k/a
                                      First Union National Bank) as a Lender

                                      By:
                                         ---------------------------------------
                                      Name:
                                           -------------------------------------
                                      Title:
                                            ------------------------------------

                                      COMERICA BANK,
                                      as a Lender

                                      By: /s/ WILLIAM S. ROGERS
                                          --------------------------------------
                                      Name:   William S. Rogers
                                            ------------------------------------
                                      Title:  Vice President
                                             -----------------------------------

                       [SIGNATURE PAGE TO EIGHTH AMENDMENT
             TO THIRD AMENDED AND RESTATED SECURED CREDIT AGREEMENT]

<PAGE>

THE BANK OF TOKYO-MITSUBISHI,              THE BANK OF TOKYO-MITSUBISHI, LTD.,
LTD., as a Lender                          as a Lender

By: /s/ JOEY POWELL                        By: /s/ JOHN M. MEARNS
    ------------------------------             ---------------------------------
Name:   Joey Powell                        Name:   John M. Mearns
      ----------------------------               -------------------------------
Title:  Officer                            Title:  Vice President & Manager
       ---------------------------                ------------------------------

                                           JPMORGAN CHASE BANK,
                                           as a Lender

                                           By: /s/ MICHAEL D. PICKERD
                                               ---------------------------------
                                           Name:   Michael D. Pickerd
                                                 -------------------------------
                                           Title:  Senior Vice President
                                                  ------------------------------

                                           GUARANTY FEDERAL BANK, F.S.B.,
                                           as a Lender

                                           By: /s/ SCOTT L. BREWER
                                               ---------------------------------
                                           Name:   Scott L. Brewer
                                                 -------------------------------
                                           Title:  VP
                                                  ------------------------------

                                           SUNTRUST BANK, ATLANTA,
                                           as a Lender

                                           By:
                                               ---------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

                                           DEUTSCHE BANK TRUST COMPANY NEW YORK,
                                           as a Lender

                                           By: /s/ ALEXANDER BICI
                                               ---------------------------------
                                           Name: Alexander Bici
                                                 -------------------------------
                                           Title: Vice President
                                                  ------------------------------

                       [SIGNATURE PAGE TO EIGHTH AMENDMENT
             TO THIRD AMENDED AND RESTATED SECURED CREDIT AGREEMENT]

<PAGE>

                        GUARANTORS' CONSENT AND AGREEMENT

         As an inducement to the Lenders to execute, and in consideration of the
Lenders' execution of this Amendment, each of the undersigned hereby consents to
this Amendment and agrees that the same shall in no way release, diminish,
impair, reduce or otherwise adversely affect the obligations and liabilities of
the undersigned under their respective Guaranties described in the Credit
Agreement executed by the undersigned, or any agreements, documents or
instruments executed by any of the undersigned, all of which obligations and
liabilities are, and shall continue to be, in full force and effect. This
consent and agreement shall be binding upon the undersigned, and their
respective successors and assigns, and shall inure to the benefit of the
Lenders, and their respective successors and assigns.

                             ADVANCED TECHNOLOGIES AND INSTALLATION CORPORATION
                             ALLTECK LINE CONTRACTORS (USA), INC.
                             ARBY CONSTRUCTION, INC.
                             AUSTIN TRENCHER, INC.
                             BRADFORD BROTHERS, INC.
                             CCLC, INC.
                             COMMUNICATION MANPOWER, INC.
                             COMPUTAPOLE, INC.
                             CONTI COMMUNICATIONS, INC.
                             CROCE ELECTRIC COMPANY, INC.
                             CROWN FIBER COMMUNICATIONS, INC.
                             DILLARD SMITH CONSTRUCTION COMPANY
                             DRIFTWOOD ELECTRICAL CONTRACTORS, INC.
                             ENVIRONMENTAL PROFESSIONAL ASSOCIATES, LIMITED
                             FIVE POINTS CONSTRUCTION CO.
                             GEM ENGINEERING CO., INC.
                             GOLDEN STATE UTILITY CO.
                             H. L. CHAPMAN PIPELINE CONSTRUCTION, INC.
                             HAINES CONSTRUCTION COMPANY
                             INTERMOUNTAIN ELECTRIC, INC.
                             IRBY CONSTRUCTION COMPANY
                             LINE EQUIPMENT SALES CO., INC.
                             LOGICAL LINK, INC.
                             MANUEL BROS., INC.
                             MEARS GROUP, INC.
                             MEJIA PERSONNEL SERVICES, INC.
                             METRO UNDERGROUND SERVICES, INC.
                             MUSTANG LINE CONTRACTORS, INC.
                             NETWORK COMMUNICATION SERVICES, INC.
                             NETWORK ELECTRIC COMPANY
                             NORTH PACIFIC CONSTRUCTION CO., INC.
                             NORTH SKY COMMUNICATIONS, INC.
                             NORTHERN LINE LAYERS, INC.
                             PAC WEST CONSTRUCTION, INC.
                             PAR ELECTRICAL CONTRACTORS, INC.
                             PARKSIDE SITE & UTILITY COMPANY CORPORATION
                             PARKSIDE UTILITY CONSTRUCTION CORP.
                             P.D.G. ELECTRIC COMPANY
                             POTELCO, INC.

                        GUARANTORS' CONSENT AND AGREEMENT

<PAGE>

                             PROFESSIONAL TELECONCEPTS, INC.
                             PROFESSIONAL TELECONCEPTS, INC.
                             PWR FINANCIAL COMPANY
                             QPC, INC.
                             QSI, INC.
                             QUANTA HOLDINGS, INC.
                             QUANTA XXXI ACQUISITION, INC.
                             QUANTA LI ACQUISITION, INC.
                             QUANTA LIV ACQUISITION, INC.
                             QUANTA LVII ACQUISITION, INC.
                             QUANTA LVIII ACQUISITION, INC.
                             QUANTA LIX ACQUISITION, INC.
                             QUANTA LX ACQUISITION, INC.
                             QUANTA LXI ACQUISITION, INC.
                             QUANTA LXII ACQUISITION, INC.
                             QUANTA LXIII ACQUISITION, INC.
                             QUANTA LXIV ACQUISITION, INC.
                             QUANTA LXV ACQUISITION, INC.
                             QUANTA LXVI ACQUISITION, INC.
                             QUANTA LXVII ACQUISITION, INC.
                             QUANTA LXVIII ACQUISITION, INC.
                             QUANTA LXIX ACQUISITION, INC.
                             QUANTA LXX ACQUISITION, INC.
                             QUANTA LXXI ACQUISITION, INC.
                             QUANTA LXXII ACQUISITION, INC.
                             QUANTA LXXIII ACQUISITION, INC.
                             QUANTA UTILITY INSTALLATION CO., INC,
                             R. A. WAFFENSMITH & CO., INC.
                             RANGER FIELD SERVICES, INC.
                             SOUTHEAST PIPELINE CONSTRUCTION, INC.
                             SOUTHWESTERN COMMUNICATIONS, INC.
                             SOUTHWEST TRENCHING COMPANY, INC.
                             SPALJ CONSTRUCTION COMPANY
                             SPECIALTY DRILLING TECHNOLOGY, INC.
                             SUMTER UTILITIES, INC.
                             THE RYAN COMPANY, INC.
                             TOM ALLEN CONSTRUCTION COMPANY
                             TRANS TECH ACQUISITION, INC.
                             TRAWICK CONSTRUCTION COMPANY, INC.
                             TTGP, INC.
                             TTLP, INC.
                             TTM, INC.
                             TXLP, INC.
                             UNDERGROUND CONSTRUCTION CO., INC.
                             UTILCO, INC.
                             VCI TELCOM, INC.

                        GUARANTORS' CONSENT AND AGREEMENT

<PAGE>

                                 W.C. COMMUNICATIONS, INC.
                                 W.H.O.M. CORPORATION

                                 By: /s/ DANA GORDON
                                     -------------------------------------------
                                          Dana Gordon, President or Vice
                                          President of each Guarantor

                                 QDE LLC
                                 QUANTA DELAWARE, INC.
                                 QUANTA ASSET MANAGEMENT LLC

                                 By: /s/ LINDA BUBACZ
                                     -------------------------------------------
                                          Linda Bubacz, President

                                 BROWN ENGINEERING, LLC

                                 By:      Ranger Field Services, Inc., Its
                                          Member

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                   Dana Gordon, Vice President

                                 COAST TO COAST, LLC

                                 By:      Environmental Professional Associates,
                                          Limited, a  California corporation,
                                          Its Member

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                   Dana Gordon, Vice President

                                 DOT 05, LLC
                                 TJADER, L.L.C.
                                 OKAY CONSTRUCTION COMPANY, LLC

                                 By:      Spalj Construction Company, Its Member

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                   Dana Gordon, Vice President

                        GUARANTORS' CONSENT AND AGREEMENT
<PAGE>

                                 LAKE NORMAN PIPELINE, LLC

                                 By:      Bradford Brothers, Inc., Its Member

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                                 MEARS/CPG, LLC
                                 MEARS ENGINEERING, LLC
                                 MEARS/HDD, LLC
                                 MEARS SERVICES, LLC

                                 By:      Mears Group, Inc., The Sole Member of
                                          each of the foregoing limited
                                          liability companies

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                                 S.K.S. PIPELINERS, LLC

                                 By:      Arby Construction, Inc., Its Member

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                                 TNS-VA, LLC

                                 By:      Professional Teleconcepts, Inc. (NY),
                                          Its Member

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                                 LINECO LEASING, LLC

                                 By:      Mustang Line Contractors, Inc., Its
                                          Sole Member

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                        GUARANTORS' CONSENT AND AGREEMENT
<PAGE>

                                 AIRLAN TELECOM SERVICES, L.P.
                                 NORTH HOUSTON POLE LINE, L.P.
                                 LINDSEY ELECTRIC, L.P.
                                 DIGCO UTILITY CONSTRUCTION, L.P.
                                 By:      Mejia Personnel Services, Inc., Its
                                          General Partner

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                                 QUANTA SERVICES MANAGEMENT PARTNERSHIP, L.P.
                                 QUANTA ASSOCIATES, L.P.

                                 By:      QSI, Inc., Its General Partner

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                                 TRANS TECH ELECTRIC, L.P.

                                 By:      TTGP, Inc., Its General Partner

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                                 PWR NETWORK, LLC

                                 By:      PWR Financial Company, Its Sole Member

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                                 Q RESOURCES, LLC

                                 By:      Quanta Holdings, Inc.

                                          By: /s/ DANA GORDON
                                              ----------------------------------
                                                  Dana Gordon, Vice President

                        GUARANTORS' CONSENT AND AGREEMENT

<PAGE>

                                 QUANTA RECEIVABLES, L.P.

                                 By:      PWR Network, LLC, Its General Partner

                                          By:   PWR Financial Company, Its Sole
                                                Member

                                                By: /s/ DANA GORDON
                                                    ----------------------------
                                                    Dana Gordon, Vice President

                        GUARANTORS' CONSENT AND AGREEMENT

<PAGE>

                                   EXHIBIT 6.6

                             COMPLIANCE CERTIFICATE

         Quanta Services, Inc. (the "BORROWER"), the various financial
institutions from time to time parties thereto (the "LENDERS"), and NationsBank,
N.A. d/b/a Bank of America, N.A., as Agent for the Lenders (in such capacity,
the "AGENT"), executed and delivered that certain Third Amended and Restated
Secured Credit Agreement dated as of June 14, 1999 (as amended, supplemented and
restated from time to time, the "CREDIT AGREEMENT"). Any term used but not
defined in this Compliance Certificate shall have the meaning given to it in the
Credit Agreement.

         The undersigned, solely in his or her capacity as _________________ of
the Borrower hereby certifies to the Agent and the Lenders that:

         A. This Compliance Certificate and the attached financial statements
are delivered on this ___ day of ____________, _______.

         B. The attached financial statements are (check one) [ ] monthly
financial statements dated ________________, [ ] quarterly financial statements
dated __________________, [ ] annual financial statements dated
_____________________, and fairly present on a consolidated or consolidating
basis, as the case may be and as applicable, the balance sheet [,][and]
statements of income [ADD THE FOLLOWING FOR QUARTERLY AND ANNUAL FINANCIAL
STATEMENTS:, retained earnings and cash flows] of the Borrower and its
Subsidiaries covered thereby as of the date thereof and for the period covered
thereby, subject to normal year-end audit adjustments and the omission of any
footnotes as permitted by the SEC for any such financial statements that are
monthly or quarterly financial statements, [ADD THE FOLLOWING FOR QUARTERLY
REPORTING:, together with a summary of asset dispositions during such period and
in the aggregate to date under SECTION 6.16(c), (d) and (e) of the Credit
Agreement] [ADD THE FOLLOWING FOR MONTHLY REPORTING:, together with an accounts
receivable aging summary, and a status report on (i) the contractual obligations
of the Borrower as disclosed to the Agent described in CLAUSE (c)(ii) of the
definition of "Permitted Charges", and (ii) the top 20 accounts receivable of
the Borrower].

         C. As of the date of the attached and with respect to the Borrower and
its Subsidiaries on a consolidated basis, the following (calculated in
accordance with the Credit Agreement):

<PAGE>

1.  CONSOLIDATED NET WORTH

    a.    CONSOLIDATED NET WORTH                     $
                                                      ---------------
    b.    Starting Consolidated Net Worth (90% of
          Consolidated Net Worth as of
          June 30, 2002 and determined
          without giving effect to any
          adjustments made in accordance
          with SFAS 142)                             $
                                                      ---------------
    c.    75% of positive Consolidated
          Net Income for current fiscal
          quarter commencing July 1, 2002            $
                                                      ---------------
    d.    100% of any equity issuances               $
                                                      ---------------
    e.    Subchapter S distributions                 $
                                                      ---------------
    f.    Permitted Charges (clauses (a)  and (b))   $
                                                      ---------------
    g.    FASB 142 charges (when taken together
          with all other charges previously taken
          in connection with SFAS 142, shall not,
          in the aggregate, exceed $800,000,000)     $
                                                      ---------------
    h.    MINIMUM CONSOLIDATED NET WORTH
          (SUM OF b, d AND d  MINUS e, f, (AND g)

          (Increases in Consolidated Net Worth
          required after June 30, 2002 shall be
          appropriately adjusted to eliminate any
          adverse effects on the Consolidated Net
          Worth of the Borrower occasioned by the
          expensing of Modified Make-Whole Amounts
          (as defined in the Note Purchase
          Agreement) paid pursuant to Section 4.4
          of Amendment No. 1 to the Note Purchase
          Agreement.  The calculation of
          Consolidated Net Worth shall not take
          into consideration the non-cash charges
          related to the Borrower's stock option
          program or stock compensation plan as
          required to be taken pursuant to GAAP.)    $
                                                      ---------------
2.  MINIMUM INTEREST COVERAGE RATIO

    a.    EBIT                                       $
                                                      ---------------
    b.    Consolidated Interest Expense (excluding
          any make-whole payments made in connection
          with asset sales which result in a
          mandatory prepayment on the Senior Notes)  $
                                                      ---------------

                                       2
<PAGE>

    c.    INTEREST COVERAGE RATIO
          (RATIO OF a TO b)                                  to 1.00
                                                     -------
    d.    MINIMUM INTEREST COVERAGE RATIO FOR
          SUCH PERIOD                                        to 1.00
                                                     -------

3.  FUNDED DEBT TO EBITDA RATIO

    a.    FUNDED DEBT (SUM OF i, ii,
          AND iii BELOW)                             $
                                                      ---------------
          i.       Indebtedness for borrowed money   $
                                                      ---------------
          ii.      Reimbursement Obligations         $
                                                      ---------------
          iii.     Capitalized Lease Obligations     $
                                                      ---------------
    b.    EBITDA                                     $
                                                      ---------------
    c.    FUNDED DEBT TO EBITDA RATIO
          (RATIO OF a TO b)                                  to 1.00
                                                     -------
    d.    MAXIMUM FUNDED DEBT TO EBITDA RATIO FOR
          SUCH PERIOD                                        to 1.00
                                                     -------

4.  SENIOR DEBT TO EBITDA RATIO

    a.    Senior Debt                                $
                                                      ---------------
    b.    EBITDA                                     $
                                                      ---------------
    c.    RATIO (RATIO OF a TO b)                            to 1.00
                                                     -------
    d.    MAXIMUM SENIOR DEBT TO EBITDA RATIO FOR
          SUCH PERIOD                                        to 1.00
                                                     -------

5.  MINIMUM ASSET COVERAGE RATIO(1)

    a.    Consolidated Net Accounts                  $
                                                      ---------------
    b.    Consolidated Net PP&E                      $
                                                      ---------------
    c.    CONSOLIDATED NET ASSETS (SUM OF a PLUS b)  $
                                                      ---------------

--------

(1) Minimum Asset Coverage Ratio is tested monthly. All other financial
covenants are tested quarterly, or annually in the case of Capital Expenditures.

                                       3
<PAGE>

    d.    Senior Debt                                $
                                                      ---------------
    d.    ASSET COVERAGE RATIO (RATIO OF c TO d)             to 1.00
                                                     -------
    d.    MINIMUM ASSET COVERAGE RATIO FOR
          SUCH PERIOD                                        to 1.00
                                                     -------

6.  CAPITAL EXPENDITURES

    a.    Capital Expenditures for such period       $
                                                      ---------------
    b.    Capital Expenditures fiscal year to date   $
                                                      ---------------
    c.    Portion of Capital Expenditures fiscal
          year to date, if any, in connection
          with outsourcing utility contract equal
          to or greater than $75,000,000 and
          confirmed by the Agent (subset of b)       $
                                                      ---------------
    d.    MAXIMUM CAPITAL EXPENDITURES FOR SUCH
          FISCAL YEAR (SUM OF (i) $50,000,000 FOR
          2002 AND (ii) $60,000,000 FOR 2003 AND
          THEREAFTER, PLUS c)                        $
                                                      ---------------

         D. Attached hereto is back-up documentation (in form reasonably
acceptable to the Agent) showing information on a Subsidiary by Subsidiary basis
supporting the calculations of the financial covenants contained herein.

         [FOR QUARTERLY AND ANNUAL COMPLIANCE CERTIFICATE INSERT THE FOLLOWING
SECTIONS E AND F:]

         E. To the best of my knowledge after due inquiry, all of the
representations and warranties contained in the Credit Agreement are true and
correct on the date hereof as if made on the date hereof except, (i) to the
extent such representation and warranty relates solely to an earlier date in
which case it shall have been true and correct as of such earlier date, (ii) as
a result of the transactions expressly permitted under the Credit Agreement,
(iii) as previously disclosed to the Lenders or (iv) as to the following
matters: [Describe or attach a schedule of all such representations and
warranties that are no longer true or correct and, if applicable, what action
the Borrower has taken or proposes to take].

                         -----------------------------

                         -----------------------------
                                                      ]
                         -----------------------------

                                       4
<PAGE>

         F.       (Check EITHER 1 or 2) To the best of my knowledge after due
                  inquiry:

         [ ]      1. As of the date hereof, no Default or Event of Default has
                  occurred and is continuing.

         [ ]      2. As of the date hereof, no Default or Event of Default has
                  occurred and is continuing except the following matters:
                  [Describe all such Defaults or Events of Default, specifying
                  the nature, duration and status thereof and what action the
                  Borrower has taken or proposes to take with respect thereto].

Date:                  ,      .
       ---------------   -----
                                            QUANTA SERVICES, INC.

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                       5

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