Document:

<PAGE>   1
                                                                   EXHIBIT 10.16

================================================================================

                              QUANTA SERVICES, INC.

        $73,000,000 8.46% Series 2000-A Senior Secured Notes, Tranche 1,
                                due March 1, 2005

                                       and

        $41,500,000 8.55% Series 2000-A Senior Secured Notes, Tranche 2,
                                due March 1, 2007

                                       and

        $35,500,000 8.61% Series 2000-A Senior Secured Notes, Tranche 3,
                                due March 1, 2010

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

                             NOTE PURCHASE AGREEMENT

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

                            DATED AS OF MARCH 1, 2000

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                HEADING                                                  PAGE
<S>                        <C>                                                                                  <C>
SECTION 1.                 AUTHORIZATION OF NOTES.................................................................1

SECTION 2.                 SALE AND PURCHASE OF NOTES.............................................................2

       Section 2.1.        Series 2000-A Notes....................................................................2
       Section 2.2.        Guaranty Agreement.....................................................................2
       Section 2.3.        Security for the Notes.................................................................2
       Section 2.4.        Additional Series of Notes.............................................................3

SECTION 3.                 CLOSING................................................................................4

SECTION 4.                 CONDITIONS TO CLOSING..................................................................4

       Section 4.1.        Representations and Warranties.........................................................4
       Section 4.2.        Representations and Warranties.........................................................4
       Section 4.3.        Performance; No Default................................................................4
       Section 4.4.        Compliance Certificates................................................................5
       Section 4.5.        Guaranty Agreement.....................................................................5
       Section 4.6.        Security Documents, Etc................................................................5
       Section 4.7.        Filing.................................................................................5
       Section 4.8.        Intercreditor Agreement................................................................5
       Section 4.9.        Insurance..............................................................................6
       Section 4.10.       Pledged Stock..........................................................................6
       Section 4.11.       Opinions of Counsel....................................................................6
       Section 4.12.       Purchase Permitted by Applicable Law, Etc..............................................6
       Section 4.13.       Related Transactions...................................................................6
       Section 4.14.       Payment of Special Counsel Fees........................................................6
       Section 4.15.       Private Placement Number...............................................................6
       Section 4.16.       Changes in Corporate Structure.........................................................7
       Section 4.17.       Proceedings and Documents..............................................................7
       Section 4.18.       Conditions to Issuance of Additional Notes.............................................7

SECTION 5.                 REPRESENTATIONS AND WARRANTIES OF THE COMPANY..........................................7

       Section 5.1.        Organization; Power and Authority......................................................7
       Section 5.2.        Authorization, Etc.....................................................................8
       Section 5.3.        Disclosure.............................................................................8
       Section 5.4.        Organization and Ownership of Shares of Subsidiaries; Affiliates.......................8
       Section 5.5.        Financial Statements...................................................................9
       Section 5.6.        Compliance with Laws, Other Instruments, Etc...........................................9
       Section 5.7.        Governmental Authorizations, Etc......................................................10
       Section 5.8.        Litigation; Observance of Statutes and Orders.........................................10
</TABLE>

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<TABLE>
<S>                        <C>                                                                                  <C>
       Section 5.9.        Taxes.................................................................................10
       Section 5.10.       Title to Property; Leases.............................................................10
       Section 5.11.       Licenses, Permits, Etc................................................................11
       Section 5.12.       Compliance with ERISA.................................................................11
       Section 5.13.       Private Offering by the Company.......................................................12
       Section 5.14.       Use of Proceeds; Margin Regulations...................................................12
       Section 5.15.       Existing Debt; Future Liens...........................................................12
       Section 5.16.       Foreign Assets Control Regulations, Etc...............................................13
       Section 5.17.       Status under Certain Statutes.........................................................13
       Section 5.18.       Environmental Matters.................................................................13
       Section 5.19.       Filing and Recordation................................................................14
       Section 5.20.       Other Representations and Warranties..................................................14

SECTION 6.                 REPRESENTATIONS OF THE PURCHASER......................................................14

       Section 6.1.        Purchase for Investment...............................................................14
       Section 6.2.        Source of Funds.......................................................................14
       Section 6.3.        Disclosure of Information.............................................................16
       Section 6.4.        Investment Experience.................................................................16
       Section 6.5.        Accredited Investor...................................................................16

SECTION 7.                 INFORMATION AS TO COMPANY.............................................................16

       Section 7.1.        Financial and Business Information....................................................16
       Section 7.2.        Officer's Certificate.................................................................18
       Section 7.3.        Inspection............................................................................19

SECTION 8.                 PREPAYMENT OF THE NOTES...............................................................20

       Section 8.1.        Required Prepayments..................................................................20
       Section 8.2.        Optional Prepayments with Make-Whole Amount...........................................20
       Section 8.3.        Allocation of Partial Prepayments.....................................................20
       Section 8.4.        Maturity; Surrender, Etc..............................................................20
       Section 8.5.        Purchase of Notes.....................................................................21
       Section 8.6.        Make-Whole Amount for Series 2000-A Notes.............................................21
       Section 8.7.        Change in Control.....................................................................22

SECTION 9.                 AFFIRMATIVE COVENANTS.................................................................24

       Section 9.1.        Compliance with Law...................................................................24
       Section 9.2.        Insurance.............................................................................24
       Section 9.3.        Maintenance of Properties.............................................................25
       Section 9.4.        Payment of Taxes and Claims...........................................................25
       Section 9.5.        Corporate Existence, Etc..............................................................25
       Section 9.6.        Guaranty by Subsidiaries..............................................................25

SECTION 10.                NEGATIVE COVENANTS....................................................................26

       Section 10.1.       Consolidated Net Worth................................................................26
</TABLE>

                                      -ii-

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<TABLE>
<S>                        <C>                                                                                  <C>
       Section 10.2.       Limitation on Consolidated Debt.......................................................26
       Section 10.3.       Limitation on Priority Debt...........................................................26
       Section 10.4.       Interest Charges Coverage Ratio.......................................................26
       Section 10.5.       Limitation on Liens...................................................................26
       Section 10.6.       Merger, Consolidation.................................................................28
       Section 10.7.       Sales of Assets.......................................................................29
       Section 10.8.       Nature of Business....................................................................29
       Section 10.9.       Transactions with Affiliates..........................................................29
       Section 10.10.      Further Assurances....................................................................30

SECTION 11.                EVENTS OF DEFAULT.....................................................................30

SECTION 12.                REMEDIES ON DEFAULT, ETC..............................................................32

       Section 12.1.       Acceleration..........................................................................32
       Section 12.2.       Other Remedies........................................................................33
       Section 12.3.       Rescission............................................................................33
       Section 12.4.       No Waivers or Election of Remedies, Expenses, Etc.....................................34

SECTION 13.                REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.........................................34

       Section 13.1.       Registration of Notes.................................................................34
       Section 13.2.       Transfer and Exchange of Notes........................................................34
       Section 13.3.       Replacement of Notes..................................................................35

SECTION 14.                PAYMENTS ON NOTES.....................................................................35

       Section 14.1.       Place of Payment......................................................................35
       Section 14.2.       Home Office Payment...................................................................35

SECTION 15.                EXPENSES, ETC.........................................................................36

       Section 15.1.       Transaction Expenses..................................................................36
       Section 15.2.       Survival..............................................................................36

SECTION 16.                SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT..........................36

SECTION 17.                AMENDMENT AND WAIVER..................................................................37

       Section 17.1.       Requirements..........................................................................37
       Section 17.2.       Solicitation of Holders of Notes......................................................37
       Section 17.3.       Binding Effect, Etc...................................................................38
       Section 17.4.       Notes Held by Company, Etc............................................................38

SECTION 18.                NOTICES...............................................................................38
</TABLE>

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<TABLE>
<S>                        <C>                                                                                  <C>
SECTION 19.                REPRODUCTION OF DOCUMENTS.............................................................39

SECTION 20.                CONFIDENTIAL INFORMATION..............................................................39

SECTION 21.                SUBSTITUTION OF PURCHASER.............................................................40

SECTION 22.                MISCELLANEOUS.........................................................................41

       Section 22.1.       Successors and Assigns................................................................41
       Section 22.2.       Payments Due on Non-Business Days.....................................................41
       Section 22.3.       Severability..........................................................................41
       Section 22.4.       Construction..........................................................................41
       Section 22.5.       Counterparts..........................................................................41
       Section 22.6.       Governing Law.........................................................................41
       Section 22.7.       Legal Rate of Interest................................................................41
       Section 22.8.       Submission to Process.................................................................42
       Section 22.9.       Waivers by the Company................................................................43
</TABLE>

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<TABLE>
<S>                              <C>
SCHEDULE A                --     INFORMATION RELATING TO PURCHASERS

SCHEDULE B                --     DEFINED TERMS

SCHEDULE 4.16             --     Changes in Corporate Structure

SCHEDULE 5.4              --     Subsidiaries of the Company and Ownership of Subsidiary Stock

SCHEDULE 5.5              --     Financial Statements

SCHEDULE 5.11             --     Licenses, Permits, Etc.

SCHEDULE 5.15             --     Existing Debt

SCHEDULE 10.5             --     Existing Liens

EXHIBIT 1(a)              --     Form of 8.46% Series 2000-A Senior Secured Note, Tranche 1,  due March 1, 2005

EXHIBIT 1(b)              --     Form of 8.55% Series 2000-A Senior Secured Note, Tranche 2, Due March 1, 2007

EXHIBIT 1(c)              --     Form of 8.61% Series 2000-A Senior Secured Note, Tranche 3, Due March 1, 2010

EXHIBIT 2                 --     Form of Guaranty Agreement

EXHIBIT 3                 --     Form of Intercreditor Agreement

EXHIBIT 4.11(a)           --     Form of Opinion of General Counsel for the Company

EXHIBIT 4.11(b)           --     Form of Opinion of Special Counsel for the Company

EXHIBIT 4.11(c)           --     Form of Opinion of Special Counsel for the Purchasers
</TABLE>

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<PAGE>   7

                              QUANTA SERVICES, INC.
                       1360 POST OAK BOULEVARD, SUITE 2100
                            HOUSTON, TEXAS 77056-3023

     8.46% SERIES 2000-A SENIOR SECURED NOTES, TRANCHE 1, DUE MARCH 1, 2005
                                       AND
     8.55% SERIES 2000-A SENIOR SECURED NOTES, TRANCHE 2, DUE MARCH 1, 2007
                                       AND
     8.61% SERIES 2000-A SENIOR SECURED NOTES, TRANCHE 3, DUE MARCH 1, 2010

                                                                     Dated as of
                                                                   March 1, 2000

TO THE PURCHASERS LISTED IN
        THE ATTACHED SCHEDULE A:

Ladies and Gentlemen:

         QUANTA SERVICES, INC., a Delaware corporation (the "Company"), agrees
with the Purchasers listed in the attached Schedule A (the "Purchasers") to this
Note Purchase Agreement (this "Agreement") as follows:

SECTION 1.      AUTHORIZATION OF NOTES.

         The Company will authorize the issue and sale of (i) $73,000,000
aggregate principal amount of its 8.46% Series 2000-A Senior Secured Notes,
Tranche 1, due March 1, 2005 (the "Tranche 1 Notes"), (ii) $41,500,000 aggregate
principal amount of its 8.55% Series 2000-A Senior Secured Notes, Tranche 2, due
March 1, 2007 (the "Tranche 2 Notes"), and (iii) $35,500,000 aggregate principal
amount of its 8.61% Series 2000-A Senior Secured Notes, Tranche 3, due March 1,
2010 (the "Tranche 3 Notes"; the Tranche 1 Notes, the Tranche 2 Notes and the
Tranche 3 Notes are collectively referred to herein as the "Series 2000-A
Notes"). The Series 2000-A Notes together with each Series of Additional Notes
which may from time to time be issued pursuant to the provisions of Section 2.4
are collectively referred to as the "Notes" (such term shall also include any
such notes issued in substitution therefor pursuant to Section 13 of this
Agreement). The Series 2000-A Notes shall be substantially in the forms set out
in Exhibit 1(a), Exhibit 1(b) and Exhibit 1(c), respectively, with such changes
therefrom, if any, as may be approved by the Purchasers and the Company. Certain
capitalized terms used in this Agreement are defined in Schedule B; references
to a "Schedule" or an "Exhibit" are, unless otherwise specified, to a Schedule
or an Exhibit attached to this Agreement.

<PAGE>   8

SECTION 2.      SALE AND PURCHASE OF NOTES.

         Section 2.1. Series 2000-A Notes. Subject to the terms and conditions
of this Agreement, the Company will issue and sell to each Purchaser and each
Purchaser will purchase from the Company, at the Closing provided for in Section
3, Series 2000-A Notes in the principal amount specified opposite such
Purchaser's name in Schedule A at the purchase price of 100% of the principal
amount thereof. The obligations of each Purchaser hereunder are several and not
joint obligations and each Purchaser shall have no obligation and no liability
to any Person for the performance or nonperformance by any other Purchaser
hereunder.

         Section 2.2. Guaranty Agreement. The payment by the Company of all
amounts due with respect to the Notes and the performance by the Company of its
obligations under this Agreement will be unconditionally guaranteed by all
Domestic Subsidiaries of the Company (the "Guarantors") under the Guaranty
Agreement dated as of March 1, 2000 (the "Guaranty Agreement") which shall be in
substantially the form attached hereto as Exhibit 2.

         If at any time one or more Subsidiaries which has guaranteed the Notes
and the Debt outstanding under the Bank Credit Agreement shall have been
released from its obligations under the Guaranty relating to the Bank Credit
Agreement, then upon delivery to the holders of the Notes of evidence of such
release (which evidence shall be reasonably satisfactory to the Required
Holders) and provided that no Default or Event of Default shall exist, the
Required Holders shall execute and deliver a release of such Subsidiary from its
obligations under the Guaranty Agreement (referred to as a "Guaranty Release
Event").

         Section 2.3. Security for the Notes. The Notes will be secured by
certain property of the Company and the Guarantors pursuant to the Security
Documents heretofore entered into by the Company and the Guarantors with Bank of
America, N.A. as collateral agent (together with any successor collateral agent,
the "Collateral Agent") for the benefit of the holders of Notes and the Bank
Lenders.

         The Lien and security interest granted by the Company and the
Guarantors pursuant to the Security Documents shall rank pari passu with other
existing Liens that secure the outstanding Debt of the Company and the
Guarantors under the Bank Credit Agreement without preference, priority or
distinction by virtue of the time of filing any financing statement or
registration or the difference in time of incurrence of such Debt, and the
enforcement of the rights and benefits in respect of such Security Documents
will be subject to an Intercreditor Agreement dated as of March 1, 2000 (the
"Intercreditor Agreement") among the Collateral Agent, for itself and as agent
on behalf of all Bank Lenders, the Purchasers and the Additional Purchasers.

         If at any time the Collateral Agent shall have received the written
direction from the requisite percentage of Bank Lenders to release the Liens of
the Security Documents which secure the Debt outstanding under the Bank Credit
Agreement, then upon delivery to the holders of the Notes of evidence of such
direction (which evidence shall be reasonably satisfactory to the Required
Holders) and provided that no Default or Event of Default shall exist, the
Collateral Agent shall release the Liens created by the Security Documents
(herein referred to as a "Collateral Release Event"). If requested by the
Collateral Agent and so long as no Default or

                                      A-2
<PAGE>   9

Event of Default shall exist, each Purchaser, each Additional Purchaser and each
holder by its acceptance of a Note agrees that it shall concur in the Collateral
Release Event.

         Section 2.4. Additional Series of Notes. The Company may, from time to
time, in its sole discretion but subject to the terms hereof, issue and sell one
or more additional Series of its secured promissory notes under the provisions
of this Agreement pursuant to a supplement (a "Supplement") substantially in the
form of Exhibit S. Each additional Series of Notes (the "Additional Notes")
issued pursuant to a Supplement shall be subject to the following terms and
conditions:

                  (i) each Series of Additional Notes, when so issued, shall be
         differentiated from all previous Series by sequential alphabetical
         designation inscribed thereon;

                  (ii) Additional Notes of the same Series may consist of more
         than one different and separate tranches and may differ with respect to
         outstanding principal amounts, maturity dates, interest rates and
         premiums, if any, and price and terms of redemption or payment prior to
         maturity, but all such different and separate tranches of the same
         Series shall vote as a single class and constitute one Series;

                 (iii) each Series of Additional Notes shall be dated the date
         of issue, bear interest at such rate or rates, mature on such date or
         dates, be subject to such mandatory and optional prepayment on the
         dates and at the premiums, if any, have such additional or different
         conditions precedent to closing, such representations and warranties
         and such additional covenants as shall be specified in the Supplement
         under which such Additional Notes are issued and upon execution of any
         such Supplement, this Agreement shall be amended (a) to reflect such
         additional covenants without further action on the part of the holders
         of the Notes outstanding under this Agreement, provided, that any such
         additional covenants shall inure to the benefit of all holders of Notes
         so long as any Additional Notes issued pursuant to such Supplement
         remain outstanding, and (b) to reflect such representations and
         warranties as are contained in such Supplement for the benefit of the
         holders of such Additional Notes in accordance with the provisions of
         Section 16;

                  (iv) each Series of Additional Notes issued under this
         Agreement shall be in substantially the form of Exhibit 1 to Exhibit S
         hereto with such variations, omissions and insertions as are necessary
         or permitted hereunder;

                   (v) the minimum principal amount of any Note issued under a
         Supplement shall be $100,000, except as may be necessary to evidence
         the outstanding amount of any Note originally issued in a denomination
         of $100,000 or more;

                  (vi) all Additional Notes shall constitute Senior Debt of the
         Company and shall rank pari passu with all other outstanding Notes,
         provided that if the Security Documents and the Intercreditor Agreement
         are in full force and effect, the Company shall have obtained the
         written consent of the necessary parties to the Intercreditor Agreement
         as provided for therein; and

                                      A-3
<PAGE>   10

                 (vii) no Additional Notes shall be issued hereunder if at the
         time of issuance thereof and after giving effect to the application of
         the proceeds thereof, any Default or Event of Default shall have
         occurred and be continuing.

SECTION 3.      CLOSING.

         The sale and purchase of the Series 2000-A Notes to be purchased by
each Purchaser shall occur at the offices of Chapman and Cutler, 111 West Monroe
Street, Chicago, Illinois 60603 at 10:00 a.m. Chicago time, at a closing (the
"Closing") on March 22, 2000 or on such other Business Day thereafter on or
prior to March 24, 2000 as may be agreed upon by the Company and the Purchasers.
At the Closing the Company will deliver to each Purchaser the Series 2000-A
Notes to be purchased by such Purchaser in the form of a single Series 2000-A
Note (or such greater number of Series 2000-A Notes in denominations of at least
$100,000 as such Purchaser may request) dated the date of the Closing and
registered in such Purchaser's name (or in the name of such Purchaser's
nominee), against delivery by such Purchaser to the Company or its order of
immediately available funds in the amount of the purchase price therefor by wire
transfer of immediately available funds for the account of the Company to
account number 001390029677, account name Quanta Services, Inc., at Bank of
America, Dallas, Texas, ABA Number 111000025. If at the Closing the Company
shall fail to tender such Notes to any Purchaser as provided above in this
Section 3, or any of the conditions specified in Section 4 shall not have been
fulfilled to any Purchaser's satisfaction, such Purchaser shall, at such
Purchaser's election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights such Purchaser may have by reason
of such failure or such nonfulfillment.

SECTION 4.      CONDITIONS TO CLOSING.

         The obligation of each Purchaser to purchase and pay for the Series
2000-A Notes to be sold to such Purchaser at the Closing is subject to the
fulfillment to such Purchaser's satisfaction, prior to or at the Closing, of the
following conditions:

         Section 4.1. Representations and Warranties of the Company. The
representations and warranties of the Company in this Agreement shall be correct
when made and at the time of Closing.

         Section 4.2. Representations and Warranties of the Guarantors. The
representations and warranties of the Guarantors in the Guaranty Agreement shall
be correct when made and at the time of the Closing.

         Section 4.3. Performance; No Default. The Company and the Guarantors
shall have performed and complied with all agreements and conditions contained
in this Agreement required to be performed or complied with by the Company and
the Guarantors prior to or at the Closing, and after giving effect to the issue
and sale of the Series 2000-A Notes (and the application of the proceeds thereof
as contemplated by Section 5.14), no Default or Event of Default shall have
occurred and be continuing. Neither the Company nor any Subsidiary shall

                                      A-4
<PAGE>   11

have entered into any transaction since the date of the Memorandum that would
have been prohibited by Section 10 hereof had such Sections applied since such
date.

         Section 4.4. Compliance Certificates.

                  (a) Officer's Certificate of the Company. The Company shall
         have delivered to such Purchaser an Officer's Certificate, dated the
         date of the Closing, certifying that the conditions specified in
         Sections 4.1, 4.3 and 4.16 have been fulfilled.

                  (b) Secretary's Certificate of the Company. The Company shall
         have delivered to such Purchaser a certificate certifying as to the
         resolutions attached thereto and other corporate proceedings relating
         to the authorization, execution and delivery of the Series 2000-A Notes
         and this Agreement.

                  (c) Officer's Certificate of the Guarantors. Each Guarantor
         shall have delivered to such Purchaser an Officer's Certificate, dated
         the date of the Closing, certifying that the conditions specified in
         Sections 4.2 and 4.3 have been fulfilled.

                  (d) Secretary's Certificate of the Guarantors. Each Guarantor
         shall have delivered to such Purchaser a certificate certifying as to
         the resolutions attached thereto and other corporate proceedings
         relating to the authorization, execution and delivery of the Guaranty
         Agreement.

         Section 4.5. Guaranty Agreement. The Guaranty Agreement shall have been
duly authorized, executed and delivered by the Guarantors, shall constitute the
legal, valid and binding contract and agreement enforceable against the
respective Guarantors in accordance with its terms and such Purchaser shall have
received a true, correct and complete copy thereof.

         Section 4.6. Security Documents, Etc. The Security Documents shall have
been duly authorized, executed and delivered by the respective parties thereto,
shall constitute legal, valid and binding contracts and agreements enforceable
against the respective parties in accordance with their terms and such Purchaser
shall have received true, correct and complete copies of each thereof.

         Section 4.7. Filing. The Security Documents (together with any
financing statements) shall have been duly filed in such public offices as may
be deemed necessary or appropriate by such Purchaser or such Purchaser's special
counsel in order to perfect the Liens granted or conveyed thereby.

         Section 4.8. Intercreditor Agreement. The Intercreditor Agreement
substantially in the form of Exhibit 3 attached hereto shall have been executed
and delivered by the respective parties thereto and shall be in full force and
effect and such Purchaser shall have received a true, correct and complete copy
thereof.

                                      A-5
<PAGE>   12

         Section 4.9. Insurance. Certificates of insurance evidencing the
insurance policies required to be delivered pursuant to the Security Documents
shall be satisfactory in scope and form to such Purchaser and shall have been
delivered to the Collateral Agent and such Purchaser.

         Section 4.10. Pledged Stock. The certificates representing the Pledged
Stock (together with duly executed undated stock powers endorsed in blank) shall
have been delivered to the Collateral Agent.

         Section 4.11. Opinions of Counsel. Such Purchaser shall have received
opinions in form and substance satisfactory to such Purchaser, dated the date of
the Closing (a) from Brad Eastman, Esq., General Counsel of the Company,
covering the matters set forth in Exhibit 4.11(a) and covering such other
matters incident to the transactions contemplated hereby as such Purchaser or
such Purchaser's counsel may reasonably request (and the Company hereby
instructs its counsel to deliver such opinion to such Purchaser), (b) from Akin,
Gump, Strauss, Hauer & Feld, L.L.P., Special Counsel of the Company, covering
the matters set forth in Exhibit 4.11(b) and covering such other matters
incident to the transactions contemplated hereby as such Purchaser or such
Purchaser's counsel may reasonably request (and the Company hereby instructs its
counsel to deliver such opinion to such Purchaser), and (c) from Chapman and
Cutler, the Purchasers' special counsel in connection with such transactions,
substantially in the form set forth in Exhibit 4.11(c) and covering such other
matters incident to such transactions as such Purchaser may reasonably request.

         Section 4.12. Purchase Permitted by Applicable Law, Etc. On the date of
Closing each purchase of Series 2000-A Notes shall (a) be permitted by the laws
and regulations of each jurisdiction to which each Purchaser is subject, without
recourse to provisions (such as Section 1405(a)(8) of the New York Insurance
Law) permitting limited investments by insurance companies without restriction
as to the character of the particular investment, (b) not violate any applicable
law or regulation (including, without limitation, Regulation T, U or X of the
Board of Governors of the Federal Reserve System) and (c) not subject any
Purchaser to any tax, penalty or liability under or pursuant to any applicable
law or regulation, which law or regulation was not in effect on the date hereof.
If requested by any Purchaser, such Purchaser shall have received an Officer's
Certificate certifying as to such matters of fact as such Purchaser may
reasonably specify to enable such Purchaser to determine whether such purchase
is so permitted.

         Section 4.13. Related Transactions. The Company shall have consummated
the sale of the entire principal amount of the Series 2000-A Notes scheduled to
be sold on the date of Closing pursuant to this Agreement.

         Section 4.14. Payment of Special Counsel Fees. Without limiting the
provisions of Section 15.1, the Company shall have paid on or before the
Closing, the reasonable fees, reasonable charges and reasonable disbursements of
the Purchasers' special counsel referred to in Section 4.11 to the extent
reflected in a statement of such counsel rendered to the Company at least one
Business Day prior to the Closing.

         Section 4.15. Private Placement Number. A Private Placement Number
issued by Standard & Poor's CUSIP Service Bureau (in cooperation with the
Securities Valuation Office of

                                      A-6
<PAGE>   13

the National Association of Insurance Commissioners) shall have been obtained
for each tranche of the Series 2000 Notes.

         Section 4.16. Changes in Corporate Structure. The Company shall not
have changed its jurisdiction of incorporation or, except as reflected in
Schedule 4.16, been a party to any merger or consolidation and shall not have
succeeded to all or any substantial part of the liabilities of any other entity,
at any time following the date of the most recent financial statements referred
to in Schedule 5.5.

         Section 4.17. Proceedings and Documents. All corporate and other
proceedings in connection with the transactions contemplated by this Agreement
and all documents and instruments incident to such transactions shall be
satisfactory to such Purchaser and such Purchaser's special counsel, and such
Purchaser and such Purchaser's special counsel shall have received all such
counterpart originals or certified or other copies of such documents as such
Purchaser or such Purchaser's special counsel may reasonably request.

         Section 4.18. Conditions to Issuance of Additional Notes. The
obligations of the Additional Purchasers to purchase any Additional Notes shall
be subject to the following conditions precedent, in addition to the conditions
specified in the Supplement pursuant to which such Additional Notes may be
issued:

                  (a) Compliance Certificate. A duly authorized Senior Financial
         Officer shall execute and deliver to each Additional Purchaser and each
         holder of Notes an Officer's Certificate dated the date of issue of
         such Series of Additional Notes stating that such officer has reviewed
         the provisions of this Agreement (including any Supplements hereto) and
         setting forth the information and computations (in sufficient detail)
         required in order to establish whether the Company is in compliance
         with the requirements of Section 10.2 on such date (based upon the
         financial statements for the most recent fiscal quarter ended prior to
         the date of such certificate).

                   (b) Execution and Delivery of Supplement. The Company and
         each such Additional Purchaser shall execute and deliver a Supplement
         substantially in the form of Exhibit S hereto.

                  (c) Representations of Additional Purchasers. Each Additional
         Purchaser shall have confirmed in the Supplement that the
         representations set forth in Section 6 are true with respect to such
         Additional Purchaser on and as of the date of issue of the Additional
         Notes.

SECTION 5.      REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company represents and warrants to each Purchaser that:

         Section 5.1. Organization; Power and Authority. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation, and is duly qualified as a foreign
corporation and is in good standing in each

                                      A-7
<PAGE>   14

jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. The Company has the corporate power and authority to
own or hold under lease the properties it purports to own or hold under lease,
to transact the business it transacts and proposes to transact, to execute and
deliver this Agreement, the Security Documents and the Notes and to perform the
provisions hereof and thereof.

         Section 5.2. Authorization, Etc. This Agreement, the Security Documents
and the Notes have been duly authorized by all necessary corporate action on the
part of the Company, and this Agreement and the Security Documents constitute,
and upon execution and delivery thereof each Note will constitute, a legal,
valid and binding obligation of the Company enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by (i)
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or other similar laws affecting the enforcement of creditors' rights
generally and (ii) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

         Section 5.3. Disclosure. The Company, through its agents, Banc of
America Securities LLC and Morgan Stanley Dean Witter, has delivered to each
Purchaser a copy of a Private Placement Memorandum, dated January, 2000 (the
"Memorandum"), relating to the transactions contemplated hereby. The Memorandum
fairly describes, in all material respects, the general nature of the business
and principal properties of the Company and its Subsidiaries. Except for any
research reports (if any) prepared by Banc of America Securities LLC and Morgan
Stanley Dean Witter which may have been provided separately from the Memorandum
for which no representation or warranty is being made by the Company, this
Agreement, the Security Documents, the Memorandum, the documents, certificates
or other writings delivered to the Purchasers by or on behalf of the Company in
connection with the transactions contemplated hereby and the financial
statements listed in Schedule 5.5, taken as a whole, do not contain any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein not misleading in light of the circumstances under
which they were made. Since September 30, 1999, there has been no change in the
financial condition, operations, business or properties of the Company or any of
its Subsidiaries except changes that individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect. There is no fact known
to the Company that could reasonably be expected to have a Material Adverse
Effect that has not been set forth herein or in the Memorandum or in the other
documents, certificates and other writings delivered to each Purchaser by or on
behalf of the Company specifically for use in connection with the transactions
contemplated hereby.

         Section 5.4. Organization and Ownership of Shares of Subsidiaries;
Affiliates. (a) Schedule 5.4 contains (except as noted therein) complete and
correct lists of (i) the Company's Subsidiaries, showing, as to each Subsidiary,
the correct name thereof, the jurisdiction of its organization, and the
percentage of shares of each class of its capital stock or similar equity
interests outstanding owned by the Company and each other Subsidiary, and all
other Investments of the Company and its Subsidiaries, and (ii) the Company's
directors and senior officers.

                                      A-8
<PAGE>   15

         (b) All of the outstanding shares of capital stock or similar equity
interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company
and its Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by the Company or another Subsidiary free and clear of any Lien,
except for the Liens created by the Security Documents and as otherwise
disclosed in Schedule 5.4.

         (c) Each Subsidiary identified in Schedule 5.4 is a corporation or
other legal entity duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization, and is duly qualified as a foreign
corporation or other legal entity and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. Each such Subsidiary has the corporate or other power and
authority to own or hold under lease the properties it purports to own or hold
under lease and to transact the business it transacts and proposes to transact.

         (d) No Subsidiary is a party to, or otherwise subject to, any legal
restriction or any agreement (other than this Agreement, the agreements listed
on Schedule 5.4 and customary limitations imposed by corporate law statutes)
restricting the ability of such Subsidiary to pay dividends out of profits or
make any other similar distributions of profits to the Company or any of its
Subsidiaries that owns outstanding shares of capital stock or similar equity
interests of such Subsidiary.

         Section 5.5. Financial Statements. The Company has delivered to each
Purchaser copies of the financial statements of the Company and its Subsidiaries
listed on Schedule 5.5. All of said financial statements (including in each case
the related schedules and notes) fairly present in all material respects the
consolidated financial position of the Company and its Subsidiaries as of the
respective dates specified in such financial statements and the consolidated
results of their operations and cash flows for the respective periods so
specified and have been prepared in accordance with GAAP consistently applied
throughout the periods involved except as set forth in the notes thereto
(subject, in the case of any interim financial statements, to normal year-end
adjustments).

         Section 5.6. Compliance with Laws, Other Instruments, Etc. The
execution, delivery and performance by the Company of this Agreement, the
Security Documents and the Notes will not (a) contravene, result in any breach
of, or constitute a default under, or result in the creation of any Lien not
permitted by Section 10.5 in respect of any property of the Company or any
Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or
credit agreement, lease, corporate charter or by-laws, or any other agreement or
instrument to which the Company or any Subsidiary is bound or by which the
Company or any Subsidiary or any of their respective properties may be bound or
affected, (b) conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental Authority applicable to the Company or any
Subsidiary, or (c) violate any provision of any statute or other rule or
regulation of any Governmental Authority applicable to the Company or any
Subsidiary, except for any such default, breach, contravention or violation
which could not reasonably be expected to have a Material Adverse Effect.

                                      A-9
<PAGE>   16

         Section 5.7. Governmental Authorizations, Etc. No consent, approval or
authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance
by the Company of this Agreement, the Security Documents or the Notes, except
for such filings as may be necessary to perfect or maintain the perfection of
the Liens created by the Security Documents, certain other customary filing
related to future performance and routine governmental filings made in
compliance with any applicable securities laws.

         Section 5.8. Litigation; Observance of Statutes and Orders. (a) There
are no actions, suits or proceedings pending or, to the knowledge of the
Company, threatened against or affecting the Company or any Subsidiary or any
property of the Company or any Subsidiary in any court or before any arbitrator
or before or by any Governmental Authority that in any such case, individually
or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

         (b) Neither the Company nor any Subsidiary is in default under any term
of any agreement or instrument to which it is a party or by which it is bound,
or any order, judgment, decree or ruling of any court, arbitrator or
Governmental Authority or is in violation of any applicable law, ordinance, rule
or regulation (including without limitation Environmental Laws) of any
Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

         Section 5.9. Taxes. The Company and its Subsidiaries have filed all
Material tax returns that are required to have been filed in any jurisdiction,
and have paid all taxes shown to be due and payable on such returns and all
other taxes and assessments levied upon them or their properties, assets, income
or franchises, to the extent such taxes and assessments have become due and
payable and before they have become delinquent, except for any taxes and
assessments (a) the amount of which is not individually or in the aggregate
Material or (b) the amount, applicability or validity of which is currently
being contested in good faith by appropriate proceedings and with respect to
which the Company or a Subsidiary, as the case may be, has established adequate
reserves in accordance with GAAP. The Company knows of no basis for any other
tax or assessment that could reasonably be expected to have a Material Adverse
Effect. The charges, accruals and reserves on the books of the Company and its
Subsidiaries in respect of federal, state or other taxes for all fiscal periods
are adequate, as calculated in accordance with GAAP.

         Section 5.10. Title to Property Leases. The Company and its
Subsidiaries have good and sufficient title to their respective properties which
the Company and its Subsidiaries own or purport to own, including all such
properties reflected in the most recent audited balance sheet referred to in
Section 5.5 or purported to have been acquired by the Company or any Subsidiary
after said date (except as sold or otherwise disposed of in the ordinary course
of business), in each case free and clear of Liens prohibited by this Agreement.
All leases that individually or in the aggregate are Material are valid and
subsisting and are in full force and effect in all material respects.

                                      A-10
<PAGE>   17

         Section 5.11. Licenses, Permits, Etc. Except as disclosed in Schedule
5.11,

                  (a) the Company and its Subsidiaries own or possess all
         licenses, permits, franchises, authorizations, patents, copyrights,
         service marks, trademarks and trade names, or rights thereto, that
         individually or in the aggregate are Material, without known conflict
         with the rights of others except for those conflicts, that,
         individually or in the aggregate, would not have a Material Adverse
         Effect;

                  (b) to the best knowledge of the Company, no product of the
         Company or any of its Subsidiaries infringes in any material respect
         any license, permit, franchise, authorization, patent, copyright,
         service mark, trademark, trade name or other right owned by any other
         Person; and

                  (c) to the best knowledge of the Company, there is no Material
         violation by any Person of any right of the Company or any of its
         Subsidiaries with respect to any patent, copyright, service mark,
         trademark, trade name or other right owned or used by the Company or
         any of its Subsidiaries.

         Section 5.12. Compliance with ERISA. (a) The Company and each ERISA
Affiliate have operated and administered each Plan in compliance with all
applicable laws except for such instances of noncompliance as have not resulted
in and could not reasonably be expected to result in a Material Adverse Effect.
Neither the Company nor any ERISA Affiliate has incurred any liability pursuant
to Title I or IV of ERISA or the penalty or excise tax provisions of the Code
relating to employee benefit plans (as defined in Section 3 of ERISA), and no
event, transaction or condition has occurred or exists that could reasonably be
expected to result in the incurrence of any such liability by the Company or any
ERISA Affiliate, or in the imposition of any Lien on any of the rights,
properties or assets of the Company or any ERISA Affiliate, in either case
pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions
or to Section 401(a)(29) or 412 of the Code, other than such liabilities or
Liens as would not be individually or in the aggregate Material.

         (b) The present value of the aggregate benefit liabilities under each
of the Plans (other than Multiemployer Plans), determined as of the end of such
Plan's most recently ended plan year on the basis of the actuarial assumptions
specified for funding purposes in such Plan's most recent actuarial valuation
report, did not exceed the aggregate current value of the assets of such Plan
allocable to such benefit liabilities. The term "benefit liabilities" has the
meaning specified in Section 4001 of ERISA and the terms "current value" and
"present value" have the meanings specified in Section 3 of ERISA.

         (c) The Company and its ERISA Affiliates have not incurred withdrawal
liabilities (and are not subject to contingent withdrawal liabilities) under
Section 4201 or 4204 of ERISA in respect of Multiemployer Plans that
individually or in the aggregate are Material.

         (d) The expected post-retirement benefit obligation (determined as of
the last day of the Company's most recently ended fiscal year in accordance with
Financial Accounting Standards Board Statement No. 106, without regard to
liabilities attributable to continuation coverage

                                      A-11
<PAGE>   18

mandated by Section 4980B of the Code), if any, of the Company and its
Subsidiaries under any employee welfare benefit plan (as defined in Section 3 of
ERISA), is not Material or has otherwise been disclosed in the most recent
audited consolidated financial statements of the Company and its Subsidiaries.

         (e) The execution and delivery of this Agreement and the Security
Documents and the issuance and sale of the Notes hereunder will not involve any
transaction that is subject to the prohibitions of Section 406 of ERISA or in
connection with which a tax could be imposed pursuant to Section
4975(c)(1)(A)-(D) of the Code which in either event, could reasonably be
expected to result in a Material Adverse Effect. The representation by the
Company in the first sentence of this Section 5.12(e) is made in reliance upon
and subject to the accuracy of each Purchaser's representation in Section 6.2 as
to the sources of the funds to be used to pay the purchase price of the Notes to
be purchased by such Purchaser.

         Section 5.13. Private Offering by the Company. Neither the Company nor
anyone acting on its behalf has offered the Series 2000-A Notes or any similar
securities for sale to, or solicited any offer to buy any of the same from, or
otherwise approached or negotiated in respect thereof with, any Person other
than the Purchasers and not more than 65 other Institutional Investors, each of
which has been offered the Series 2000-A Notes in connection with a private
placement for investment. Neither the Company nor anyone acting on its behalf
has taken, or will take, any action that would subject the issuance or sale of
the Series 2000-A Notes to the registration requirements of Section 5 of the
Securities Act.

         Section 5.14. Use of Proceeds; Margin Regulations. The Company will
apply the proceeds of the sale of the Series 2000-A Notes for general corporate
purposes of the Company and its Subsidiaries (including the repayment of Debt of
the Company and its Subsidiaries and for acquisitions). No part of the proceeds
from the sale of the Series 2000-A Notes hereunder will be used, directly or
indirectly, for the purpose of buying or carrying any margin stock within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 221), or for the purpose of buying or carrying or trading in any
securities under such circumstances as to involve the Company in a violation of
Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a
violation of Regulation T of said Board (12 CFR 220). Margin stock does not
constitute more than 2% of the value of the consolidated assets of the Company
and its Subsidiaries and the Company does not have any present intention that
margin stock will constitute more than 2% of the value of such assets. As used
in this Section, the terms "margin stock" and "purpose of buying or carrying"
shall have the meanings assigned to them in said Regulation U.

         Section 5.15. Existing Debt; Future Liens. (a) Except as described
therein, Schedule 5.15 sets forth a complete and correct list of all outstanding
Debt of the Company and its Subsidiaries as of December 31, 1999, since which
date there has been no Material change in the amounts, interest rates, sinking
funds, installment payments or maturities of the Debt of the Company or its
Subsidiaries. Neither the Company nor any Subsidiary is in default and no waiver
of default is currently in effect, in the payment of any principal or interest
on any Debt of the Company or such Subsidiary in an unpaid amount of $1,000,000
or more and no event or condition exists with respect to any Debt of the Company
or any Subsidiary in an unpaid amount of $1,000,000 or

                                      A-12
<PAGE>   19

more that would permit (or that with notice or the lapse of time, or both, would
permit) one or more Persons to cause such Debt to become due and payable before
its stated maturity or before its regularly scheduled dates of payment.

         (b) Except as disclosed in Schedule 5.15, neither the Company nor any
Subsidiary has agreed or consented to cause or permit in the future (upon the
happening of a contingency or otherwise) any of its property, whether now owned
or hereafter acquired, to be subject to a Lien not permitted by Section 10.5.

         Section 5.16. Foreign Assets Control Regulations, Etc. Neither the sale
of the Notes by the Company hereunder nor its use of the proceeds thereof will
violate the Trading with the Enemy Act, as amended, or any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto.

         Section 5.17. Status under Certain Statutes. Neither the Company nor
any Subsidiary is an "investment company" registered or required to be
registered under the Investment Company Act of 1940, as amended, or is subject
to regulation under the Public Utility Holding Company Act of 1935, as amended,
the ICC Termination Act of 1995, as amended, or the Federal Power Act, as
amended.

         Section 5.18. Environmental Matters. Neither the Company nor any
Subsidiary has knowledge of any liability or has received any notice of any
liability, and no proceeding has been instituted against the Company or any of
its Subsidiaries or any of their respective real properties now or formerly
owned, leased or operated by any of them, alleging any violation of any
Environmental Laws, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect. Except as otherwise disclosed
to each Purchaser in writing:

                  (a) neither the Company nor any Subsidiary has knowledge of
         any facts which would give rise to any liability, public or private,
         for violation of Environmental Laws or damage to the environment
         emanating from, occurring on or in any way related to real properties
         or to other assets now or formerly owned, leased or operated by any of
         them or their use, except, in each case, such as could not reasonably
         be expected to result in a Material Adverse Effect;

                  (b) neither the Company nor any of its Subsidiaries has stored
         any Hazardous Materials on real properties now or formerly owned,
         leased or operated by any of them or has disposed of any Hazardous
         Materials in each case in a manner contrary to any Environmental Laws
         and in any manner that could reasonably be expected to result in a
         Material Adverse Effect; and

                  (c) to the knowledge of the Company and its Subsidiaries, all
         buildings on all real properties now owned, leased or operated by the
         Company or any of its Subsidiaries are in compliance with applicable
         Environmental Laws, except where failure to comply could not reasonably
         be expected to result in a Material Adverse Effect.

                                      A-13
<PAGE>   20

         Section 5.19. Filing and Recordation. On the date of Closing, all UCC
financing statements and all Security Documents have been duly filed in all
public offices wherein such filings were made to perfect the Lien of the
security agreement securing the Debt outstanding under the Bank Credit
Agreement. The Security Documents create a valid Lien in the collateral
described therein.

         Section 5.20. Other Representations and Warranties. The representations
and warranties of the Company set forth in the Security Documents are true and
correct as of the date of Closing and are incorporated herein by reference with
the same force and effect as though set forth herein in full.

SECTION 6.      REPRESENTATIONS OF THE PURCHASER.

         Section 6.1. Purchase for Investment. Each Purchaser represents that it
is purchasing the Series 2000-A Notes for its own account or for one or more
separate accounts maintained by it or for the account of one or more pension or
trust funds and not with a view to the distribution thereof, provided that the
disposition of such Purchaser's or such pension or trust funds' property shall
at all times be within such Purchaser's or such pension or trust funds' control.
Each Purchaser understands that the Series 2000-A Notes have not been registered
under the Securities Act and may be resold only if registered pursuant to the
provisions of the Securities Act or if an exemption from registration is
available, except under circumstances where neither such registration nor such
an exemption is required by law, and that the Company is not required to
register the Series 2000-A Notes.

         Section 6.2. Source of Funds. Each Purchaser represents that at least
one of the following statements is an accurate representation as to each source
of funds (a "Source") to be used by it to pay the purchase price of the Series
2000-A Notes to be purchased by it hereunder:

                  (a) the Source is an "insurance company general account"
         within the meaning of Department of Labor Prohibited Transaction
         Exemption ("PTE") 95-60 (issued July 12, 1995) and there is no employee
         benefit plan, treating as a single plan all plans maintained by the
         same employer or employee organization, with respect to which the
         amount of the general account reserves and liabilities for all
         contracts held by or on behalf of such plan, exceeds ten percent (10%)
         of the total reserves and liabilities of such general account
         (exclusive of separate account liabilities) plus surplus, as set forth
         in the NAIC Annual Statement for such Purchaser most recently filed
         with such Purchaser's state of domicile; or

                  (b) the Source is either (i) an insurance company pooled
         separate account, within the meaning of PTE 90-1 (issued January 29,
         1990), or (ii) a bank collective investment fund, within the meaning of
         the PTE 91-38 (issued July 12, 1991) and, except as such Purchaser
         prior to the execution and delivery of this Agreement has disclosed to
         the Company in writing pursuant to this paragraph (b), no employee
         benefit plan or group of plans maintained by the same employer or
         employee organization beneficially owns more than 10% of all assets
         allocated to such pooled separate account or collective investment
         fund; or

                                      A-14
<PAGE>   21

                  (c) the Source constitutes assets of an "investment fund"
         (within the meaning of Part V of the QPAM Exemption) managed by a
         "qualified professional asset manager" or "QPAM" (within the meaning of
         Part V of the QPAM Exemption), no employee benefit plan's assets that
         are included in such investment fund, when combined with the assets of
         all other employee benefit plans established or maintained by the same
         employer or by an affiliate (within the meaning of Section V(c)(1) of
         the QPAM Exemption) of such employer or by the same employee
         organization and managed by such QPAM, exceed 20% of the total client
         assets managed by such QPAM, the conditions of Part I(c) and (g) of the
         QPAM Exemption are satisfied, neither the QPAM nor a person controlling
         or controlled by the QPAM (applying the definition of "control" in
         Section V(e) of the QPAM Exemption) owns a 5% or more interest in the
         Company and (i) the identity of such QPAM and (ii) the names of all
         employee benefit plans whose assets are included in such investment
         fund have been disclosed to the Company in writing pursuant to this
         paragraph (c) prior to the execution and delivery of this Agreement; or

                  (d) the Source is a governmental plan; or

                  (e) the Source is one or more employee benefit plans, or a
         separate account or trust fund comprised of one or more employee
         benefit plans, each of which prior to the execution and delivery of
         this Agreement has been identified to the Company in writing pursuant
         to this paragraph (e); or

                  (f) the Source does not include assets of any employee benefit
         plan, other than a plan exempt from the coverage of ERISA; or

                  (g) the Source is an insurance company separate account
         maintained solely in connection with the fixed contractual obligations
         of the insurance company under which the amounts payable, or credited,
         to any employee benefit plan (or its related trust) and to any
         participant or beneficiary of such plan (including any annuitant) are
         not affected in any manner by the investment performance of the
         separate account.

If any Purchaser or any Additional Purchaser or any subsequent transferee of the
Notes indicates that such Purchaser or any Additional Purchaser or such
transferee is relying on any representation contained in paragraph (b), (c) or
(e) above, the Company shall deliver on the date of issuance of such Notes and
on the date of any applicable transfer a certificate, which shall either state
that (i) it is neither a party in interest nor a "disqualified person" (as
defined in Section 4975(e)(2) of the Code), with respect to any plan identified
pursuant to paragraphs (b) or (e) above, or (ii) with respect to any plan,
identified pursuant to paragraph (c) above, neither it nor any "affiliate" (as
defined in Section V(c) of the QPAM Exemption) has at such time, and during the
immediately preceding one year, exercised the authority to appoint or terminate
said QPAM as manager of any plan identified in writing pursuant to paragraph (c)
above or to negotiate the terms of said QPAM's management agreement on behalf of
any such identified plan. As used in this Section 6.2, the terms "employee
benefit plan", "governmental plan", "party in interest" and "separate account"
shall have the respective meanings assigned to such terms in Section 3 of ERISA.

                                      A-15
<PAGE>   22

         Section 6.3. Disclosure of Information. Each Purchaser has received all
the information it considers necessary or appropriate for deciding whether to
purchase the Series 2000-A Notes. Each Purchaser further represents that it has
had an opportunity to ask questions and receive answers from the Company
regarding the terms and conditions of the offering of the Series 2000-A Notes
and the business, properties, prospects and financial condition of the Company.
The foregoing, however, does not limit or modify the representations and
warranties of the Company in Section 5 of this Agreement or the rights of the
Purchasers to rely thereon.

         Section 6.4. Investment Experience. Each Purchaser acknowledges that it
is able to fend for itself, can bear the risk of its investment, and has such
knowledge and experience in financial or business matters that it is capable of
evaluating the merits and risks of the investment in the Series 2000-A Notes.

         Section 6.5. Accredited Investor. Each Purchaser represents that it is
an "accredited investor" within the meaning of the Securities and Exchange
Commission Rule 501 of Regulation D, as presently in effect.

SECTION 7.      INFORMATION AS TO COMPANY.

         Section 7.1. Financial and Business Information. The Company shall
deliver to each holder of Notes that is an Institutional Investor (other than a
Competitor of the Company or any Subsidiary so long as no Event of Default shall
have occurred and be continuing):

                  (a) Quarterly Statements -- within 60 days after the end of
         each quarterly fiscal period in each fiscal year of the Company (other
         than the last quarterly fiscal period of each such fiscal year),
         duplicate copies of,

                           (i) a consolidated balance sheet of the Company and
                  its Subsidiaries as at the end of such quarter, and

                           (ii) consolidated statements of income, changes in
                  shareholders' equity and cash flows of the Company and its
                  Subsidiaries, for such quarter and (in the case of the second
                  and third quarters) for the portion of the fiscal year ending
                  with such quarter,

         setting forth in each case in comparative form the figures for the
         corresponding periods in the previous fiscal year, all in reasonable
         detail, prepared in accordance with GAAP applicable to quarterly
         financial statements generally, and certified by a Senior Financial
         Officer as fairly presenting, in all material respects, the financial
         position of the companies being reported on and their results of
         operations and cash flows, subject to changes resulting from normal,
         recurring year-end adjustments, provided that delivery within the time
         period specified above of copies of the Company's Quarterly Report on
         Form 10-Q prepared in compliance with the requirements therefor and
         filed with the Securities and Exchange Commission shall be deemed to
         satisfy the requirements of this Section 7.1(a);

                                      A-16
<PAGE>   23

                  (b) Annual Statements -- within 120 days after the end of each
         fiscal year of the Company, duplicate copies of,

                           (i) a consolidated balance sheet of the Company and
                  its Subsidiaries, as at the end of such year, and

                           (ii) consolidated statements of income, changes in
                  shareholders' equity and cash flows of the Company and its
                  Subsidiaries, for such year,

         setting forth in each case in comparative form the figures for the
         previous fiscal year, all in reasonable detail, prepared in accordance
         with GAAP, and accompanied by an opinion thereon of independent
         certified public accountants of recognized national standing, which
         opinion shall state that such financial statements present fairly, in
         all material respects, the financial position of the companies being
         reported upon and their results of operations and cash flows and have
         been prepared in conformity with GAAP, and that the examination of such
         accountants in connection with such financial statements has been made
         in accordance with generally accepted auditing standards, and that such
         audit provides a reasonable basis for such opinion in the
         circumstances, provided that the delivery within the time period
         specified above of the Company's Annual Report on Form 10-K for such
         fiscal year (together with the Company's annual report to shareholders,
         if any, prepared pursuant to Rule 14a-3 under the Exchange Act)
         prepared in accordance with the requirements therefor and filed with
         the Securities and Exchange Commission shall be deemed to satisfy the
         requirements of this Section 7.1(b);

                  (c) SEC and Other Reports -- promptly upon their becoming
         available, one copy of (i) each financial statement, report, notice or
         proxy statement sent by the Company or any Subsidiary to public
         securities holders generally, and (ii) each regular or periodic report,
         each registration statement (without exhibits except as expressly
         requested by such holder), and each prospectus and all amendments
         thereto filed by the Company or any Subsidiary with the Securities and
         Exchange Commission containing information of a financial nature and of
         all press releases and other statements made available generally by the
         Company or any Subsidiary to the public concerning developments that
         are Material;

                  (d) Notice of Default or Event of Default -- promptly, and in
         any event within ten Business Days after a Responsible Officer becomes
         aware of the existence of any Default or Event of Default or that any
         Person has given any notice or taken any action with respect to a
         claimed default hereunder or that any Person has given any notice or
         taken any action with respect to a claimed default of the type referred
         to in Section 11(h), a written notice specifying the nature and period
         of existence thereof and what action the Company is taking or proposes
         to take with respect thereto;

                  (e) ERISA Matters -- promptly, and in any event within ten
         Business Days after a Responsible Officer becomes aware of any of the
         following, a written notice setting forth the nature thereof and the
         action, if any, that the Company or an ERISA Affiliate proposes to take
         with respect thereto:

                                      A-17
<PAGE>   24

                           (i) with respect to any Plan, any reportable event,
                  as defined in Section 4043(b) of ERISA and the regulations
                  thereunder, for which notice thereof has not been waived
                  pursuant to such regulations as in effect on the date thereof;
                  or

                           (ii) the taking by the PBGC of steps to institute, or
                  the threatening by the PBGC of the institution of, proceedings
                  under Section 4042 of ERISA for the termination of, or the
                  appointment of a trustee to administer, any Plan, or the
                  receipt by the Company or any ERISA Affiliate of a notice from
                  a Multiemployer Plan that such action has been taken by the
                  PBGC with respect to such Multiemployer Plan; or

                           (iii) the incurrence of any liability by the Company
                  or any ERISA Affiliate pursuant to Title I or IV of ERISA or
                  the imposition of a penalty or excise tax under the provisions
                  of the Code relating to employee benefit plans, or the
                  imposition of any Lien on any of the rights, properties or
                  assets of the Company or any ERISA Affiliate pursuant to Title
                  I or IV of ERISA or such penalty or excise tax provisions, if
                  such liability or Lien, taken together with any other such
                  liabilities or Liens then existing, could reasonably be
                  expected to have a Material Adverse Effect;

                  (f) Notices from Governmental Authority -- promptly, and in
         any event within 30 days of receipt thereof, copies of any notice to
         the Company or any Subsidiary from any federal or state Governmental
         Authority relating to any order, ruling, statute or other law or
         regulation that could reasonably be expected to have a Material Adverse
         Effect;

                  (g) Supplements -- promptly and in any event within 10
         Business Days after the execution and delivery of any Supplement, a
         copy thereof;

                  (h) Bank Credit Agreement --- so long as any Event of Default
         shall exist under the Bank Credit Agreement, the Company shall furnish
         copies of any written notices or certificates furnished by the Company
         or any Subsidiary to the Bank Lenders not more than 5 Business Days
         following delivery to the Bank Lenders; and

                  (i) Requested Information -- with reasonable promptness, such
         other data and information relating to the business, operations,
         affairs, financial condition, assets or properties of the Company or
         any of its Subsidiaries or relating to the ability of the Company to
         perform its obligations hereunder and under the Notes as from time to
         time may be reasonably requested by any such holder of Notes.

         Section 7.2. Officer's Certificate. Each set of financial statements
delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b)
hereof shall be accompanied by a certificate of a Senior Financial Officer
setting forth:

                                      A-18
<PAGE>   25

                  (a) Covenant Compliance -- the information (including detailed
         calculations) required in order to establish whether the Company was in
         compliance with the requirements of Section 10.1 through Section 10.4,
         Section 10.5(l) and Section 10.7 hereof, inclusive, during the
         quarterly or annual period covered by the statements then being
         furnished (including with respect to each such Section, where
         applicable, the calculations of the maximum or minimum amount, ratio or
         percentage, as the case may be, permissible under the terms of such
         Sections, and the calculation of the amount, ratio or percentage then
         in existence, including, without limitation, a reasonably detailed
         calculation of Consolidated Proforma Operating Cash Flow for such
         period); and

                  (b) Event of Default -- a statement that such officer has
         reviewed the relevant terms hereof and has made, or caused to be made,
         under his or her supervision, a review of the transactions and
         conditions of the Company and its Subsidiaries from the beginning of
         the quarterly or annual period covered by the statements then being
         furnished to the date of the certificate and that such review shall not
         have disclosed the existence during such period of any condition or
         event that constitutes a Default or an Event of Default or, if any such
         condition or event existed or exists (including, without limitation,
         any such event or condition resulting from the failure of the Company
         or any Subsidiary to comply with any Environmental Law), specifying the
         nature and period of existence thereof and what action the Company
         shall have taken or proposes to take with respect thereto.

         Section 7.3. Inspection. The Company shall permit the representatives
of each holder of Notes that is an Institutional Investor (other than a
Competitor of the Company or any Subsidiary so long as no Event of Default shall
have occurred and be continuing):

                  (a) No Default -- if no Default or Event of Default then
         exists, at the expense of such holder and upon reasonable prior notice
         to the Company, to visit the principal executive office of the Company,
         to discuss the affairs, finances and accounts of the Company and its
         Subsidiaries with the Company's officers, and (with the consent of the
         Company, which consent will not be unreasonably withheld) its
         independent public accountants, and (with the consent of the Company,
         which consent will not be unreasonably withheld) to visit the other
         offices and properties of the Company and each Subsidiary, all at such
         reasonable times during business hours and as often as may be
         reasonably requested in writing; and

                  (b) Default -- if a Default or Event of Default then exists,
         at the expense of the Company and upon reasonable prior notice, to
         visit and inspect any of the offices or properties of the Company or
         any Subsidiary, to examine all their respective books of account,
         records, reports and other papers, to make copies and extracts
         therefrom, and to discuss their respective affairs, finances and
         accounts with their respective officers and independent public
         accountants (and by this provision the Company authorizes said
         accountants to discuss the affairs, finances and accounts of the
         Company and its Subsidiaries), all at such reasonable times during
         business hours and as often as may be reasonably requested.

                                      A-19
<PAGE>   26

SECTION 8.      PREPAYMENT OF THE NOTES.

         Section 8.1. Required Prepayments. (a) The entire principal amount of
the Tranche 1 Notes shall become due and payable on March 1, 2005.

         (b) The entire principal amount of the Tranche 2 Notes shall become due
and payable on March 1, 2007.

         (c) The entire principal amount of the Tranche 3 Notes shall become due
and payable on March 1, 2010.

         Section 8.2. Optional Prepayments with Make-Whole Amount. The Company
may, at its option, upon notice as provided below, prepay at any time all, or
from time to time any part of, the Notes of any Series, in an amount not less
than 10% of the aggregate principal amount of the Notes of such Series then
outstanding in the case of a partial prepayment, at 100% of the principal amount
so prepaid, together with interest accrued thereon to the date of such
prepayment, plus the Make-Whole Amount determined for the prepayment date with
respect to such principal amount of each Note of the applicable Series then
outstanding. The Company will give each holder of Notes of the Series to be
prepaid written notice of each optional prepayment under this Section 8.2 not
less than 30 days and not more than 60 days prior to the date fixed for such
prepayment. Each such notice shall specify such date, the aggregate principal
amount of the Notes and each Series of Notes to be prepaid on such date, the
principal amount of each Note held by such holder to be prepaid (determined in
accordance with Section 8.3), and the interest to be paid on the prepayment date
with respect to such principal amount being prepaid, and shall be accompanied by
a certificate of a Senior Financial Officer as to the estimated Make-Whole
Amount due in connection with such prepayment (calculated as if the date of such
notice were the date of the prepayment), setting forth the details of such
computation. Two Business Days prior to such prepayment, the Company shall
deliver to each holder of Notes of the Series to be prepaid a certificate of a
Senior Financial Officer specifying the calculation of such Make-Whole Amount as
of the specified prepayment date.

         Section 8.3. Allocation of Partial Prepayments. In the case of each
partial prepayment of the Notes pursuant to the provisions of Section 8.2, the
principal amount of the Notes of the Series to be prepaid shall be allocated
among all of the Notes of such Series at the time outstanding in proportion, as
nearly as practicable, to the respective unpaid principal amounts thereof. All
regularly scheduled partial prepayments made with respect to any Additional
Series of Notes pursuant to any Supplement shall be allocated as provided
therein.

         Section 8.4. Maturity; Surrender, Etc. In the case of each prepayment
of Notes pursuant to this Section 8, the principal amount of each Note to be
prepaid shall mature and become due and payable on the date fixed for such
prepayment, together with interest on such principal amount accrued to such date
and the applicable Make-Whole Amount, if any. From and after such date, unless
the Company shall fail to pay such principal amount when so due and payable,
together with the interest and Make-Whole Amount, if any, as aforesaid, interest
on such principal amount shall cease to accrue. Any Note paid or prepaid in full
shall be surrendered to

                                      A-20
<PAGE>   27

the Company and cancelled and shall not be reissued, and no Note shall be issued
in lieu of any prepaid principal amount of any Note.

         Section 8.5. Purchase of Notes. The Company will not and will use
reasonable commercial efforts to not permit any Affiliate to purchase, redeem,
prepay or otherwise acquire, directly or indirectly, any of the outstanding
Notes except upon the payment or prepayment of the Notes in accordance with the
terms of this Agreement (including any Supplement hereto) and the Notes. The
Company will promptly cancel all Notes acquired by it or any Subsidiary pursuant
to any payment, prepayment or purchase of Notes pursuant to any provision of
this Agreement and no Notes may be issued in substitution or exchange for any
such Notes.

         Section 8.6. Make-Whole Amount for Series 2000-A Notes. The term
"Make-Whole Amount" means, with respect to a Series 2000-A Note of any Tranche,
an amount equal to the excess, if any, of the Discounted Value of the Remaining
Scheduled Payments with respect to the Called Principal of the Series 2000-A
Note of such Tranche over the amount of such Called Principal, provided that the
Make-Whole Amount may in no event be less than zero. For the purposes of
determining the Make-Whole Amount, the following terms have the following
meanings:

                  "Called Principal" means, with respect to a Series 2000-A Note
         of any Tranche, the principal of the Series 2000-A Note of such Tranche
         that is to be prepaid pursuant to Section 8.2 or has become or is
         declared to be immediately due and payable pursuant to Section 12.1, as
         the context requires.

                  "Discounted Value" means, with respect to the Called Principal
         of a Series 2000-A Note of any Tranche, the amount obtained by
         discounting all Remaining Scheduled Payments with respect to such
         Called Principal from their respective scheduled due dates to the
         Settlement Date with respect to such Called Principal, in accordance
         with accepted financial practice and at a discount factor (applied on
         the same periodic basis as that on which interest on the Series 2000-A
         Note of such Tranche is payable) equal to the Reinvestment Yield with
         respect to such Called Principal.

                  "Reinvestment Yield" means, with respect to the Called
         Principal of a Series 2000-A Note of any Tranche, 0.50% plus the yield
         to maturity implied by (i) the yields reported, as of 10:00 A.M. (New
         York City time) on the second Business Day preceding the Settlement
         Date with respect to such Called Principal, on the display designated
         as "PX-1" on the Bloomberg Financial Market Screen (or such other
         display as may replace "PX-1" on the Bloomberg Financial Market Screen)
         for actively traded U.S. Treasury securities having a maturity equal to
         the Remaining Average Life of such Called Principal as of such
         Settlement Date, or (ii) if such yields are not reported as of such
         time or the yields reported as of such time are not ascertainable, the
         Treasury Constant Maturity Series Yields reported, for the latest day
         for which such yields have been so reported as of the second Business
         Day preceding the Settlement Date with respect to such Called
         Principal, in Federal Reserve Statistical Release H.15 (519) (or any
         comparable successor publication) for actively traded U.S. Treasury
         securities having a constant maturity equal to the Remaining Average
         Life of such Called Principal as of

                                      A-21
<PAGE>   28

         such Settlement Date. Such implied yield will be determined, if
         necessary, by (a) converting U.S. Treasury bill quotations to
         bond-equivalent yields in accordance with accepted financial practice
         and (b) interpolating linearly on a straight line basis between (1) the
         actively traded U.S. Treasury security with the maturity closest to and
         greater than the Remaining Average Life and (2) the actively traded
         U.S. Treasury security with the maturity closest to and less than the
         Remaining Average Life.

                  "Remaining Average Life" means, with respect to any Called
         Principal, the number of years (calculated to the nearest one-twelfth
         year) obtained by dividing (i) such Called Principal into (ii) the sum
         of the products obtained by multiplying (a) the principal component of
         each Remaining Scheduled Payment with respect to such Called Principal
         by (b) the number of years (calculated to the nearest one-twelfth year)
         that will elapse between the Settlement Date with respect to such
         Called Principal and the scheduled due date of such Remaining Scheduled
         Payment.

                  "Remaining Scheduled Payments" means, with respect to the
         Called Principal of a Series 2000-A Note of any Tranche, all payments
         of such Called Principal and interest thereon that would be due after
         the Settlement Date with respect to such Called Principal if no payment
         of such Called Principal were made prior to its scheduled due date,
         provided that if such Settlement Date is not a date on which interest
         payments are due to be made under the terms of the Series 2000-A Note
         of such Tranche, then the amount of the next succeeding scheduled
         interest payment will be reduced by the amount of interest accrued to
         such Settlement Date and required to be paid on such Settlement Date
         pursuant to Section 8.2 or 12.1.

                  "Settlement Date" means, with respect to the Called Principal
         of a Series 2000-A Note of any Tranche, the date on which such Called
         Principal is to be prepaid pursuant to Section 8.2 or has become or is
         declared to be immediately due and payable pursuant to Section 12.1, as
         the context requires.

         Section 8.7. Change in Control.

         (a) Notice of Change in Control or Control Event. The Company will,
within fifteen Business Days after any Responsible Officer has knowledge of the
occurrence of any Change in Control or Control Event (subject in the case of any
Control Event to contractual limitations on disclosure and disclosure
limitations imposed by applicable securities laws), give written notice of such
Change in Control or Control Event to each holder of Notes unless notice in
respect of such Change in Control (or the Change in Control contemplated by such
Control Event) shall have been given pursuant to subparagraph (b) of this
Section 8.7. If a Change in Control has occurred, such notice shall contain and
constitute an offer to prepay Notes as described in subparagraph (c) of this
Section 8.7 and shall be accompanied by the certificate described in
subparagraph (g) of this Section 8.7.

         (b) Condition to Company Action. The Company will not take any action
that consummates or finalizes a Change in Control unless (i) to the extent the
giving of such advance notice is reasonably within its control, at least 30 days
prior to such action it shall have given to

                                      A-22
<PAGE>   29

each holder of Notes written notice containing and constituting an offer to
prepay Notes as described in subparagraph (c) of this Section 8.7, accompanied
by the certificate described in subparagraph (g) of this Section 8.7, and (ii)
contemporaneously with such action, it prepays all Notes required to be prepaid
in accordance with this Section 8.7.

         (c) Offer to Prepay Notes. The offer to prepay Notes contemplated by
subparagraphs (a) and (b) of this Section 8.7 shall be an offer to prepay, in
accordance with and subject to this Section 8.7, all, but not less than all, the
Notes held by each holder (in this case only, "holder" in respect of any Note
registered in the name of a nominee for a disclosed beneficial owner shall mean
such beneficial owner) on a date specified in such offer (the "Proposed
Prepayment Date"). If such Proposed Prepayment Date is in connection with an
offer contemplated by subparagraph (a) of this Section 8.7, such date shall be
not less than 30 days and not more than 60 days after the date of such offer (if
the Proposed Prepayment Date shall not be specified in such offer, the Proposed
Prepayment Date shall be the 30th day after the date of such offer).

         (d) Acceptance. A holder of Notes may accept the offer to prepay made
pursuant to this Section 8.7 by causing a notice of such acceptance to be
delivered to the Company at least 15 days prior to the Proposed Prepayment Date.
A failure by a holder of Notes to respond to an offer to prepay made pursuant to
this Section 8.7 shall be deemed to constitute a rejection of such offer by such
holder.

         (e) Prepayment. Prepayment of the Notes to be prepaid pursuant to this
Section 8.7 shall be at 100% of the principal amount of such Notes together with
interest on such Notes accrued to the date of prepayment. The prepayment shall
be made on the Proposed Prepayment Date except as provided in subparagraph (f)
of this Section 8.7.

         (f) Deferral Pending Change in Control. The obligation of the Company
to prepay Notes pursuant to the offers required by subparagraph (b) and accepted
in accordance with subparagraph (d) of this Section 8.7 is subject to the
occurrence of the Change in Control in respect of which such offers and
acceptances shall have been made. In the event that such Change in Control does
not occur on the Proposed Prepayment Date in respect thereof, the prepayment
shall be deferred until, and shall be made on the date on which, such Change in
Control occurs. The Company shall keep each holder of Notes reasonably and
timely informed of (i) any such deferral of the date of prepayment, (ii) the
date on which such Change in Control and the prepayment are expected to occur,
and (iii) any determination by the Company that efforts to effect such Change in
Control have ceased or been abandoned (in which case the offers and acceptances
made pursuant to this Section 8.7 in respect of such Change in Control shall be
deemed rescinded).

         (g) Officer's Certificate. Each offer to prepay the Notes pursuant to
this Section 8.7 shall be accompanied by a certificate, executed by a Senior
Financial Officer of the Company and dated the date of such offer, specifying:
(i) the Proposed Prepayment Date; (ii) that such offer is made pursuant to this
Section 8.7; (iii) the principal amount of each Note offered to be prepaid; (iv)
the interest that would be due on each Note offered to be prepaid, accrued to
the Proposed

                                      A-23
<PAGE>   30

Prepayment Date; (v) that the conditions of this Section 8.7 have been
fulfilled; and (vi) in reasonable detail, the nature and date or proposed date
of the Change in Control.

         (h) "Change in Control" Defined. "Change in Control" means each and
every issue, sale or other disposition of shares of stock of the Company which
results in any person (as such term is used in Section 13(d) and Section
14(d)(2) of the Exchange Act) or related persons constituting a group (as such
term is used in Rule 13d-5 under the Exchange Act) (herein, an "Acquiring
Person") becoming the "beneficial owners" (as such term is used in Rule 13d-3
under the Exchange Act as in effect on the date of the Closing), directly or
indirectly, of more than 50% (by total voting power) of the issued and
outstanding capital stock of the Company which is entitled to vote in the
election of the members of the Company's board of directors.

         (i) "Control Event" Defined. "Control Event" means:

                  (i) the execution by the Company or any of its Subsidiaries or
         Affiliates of any agreement or letter of intent with respect to any
         proposed transaction or event or series of transactions or events
         which, individually or in the aggregate, may reasonably be expected to
         result in a Change in Control,

                  (ii) the execution of any written agreement which, when fully
         performed by the parties thereto, would result in a Change in Control,
         or

                  (iii) at any time after a public offering of equity securities
         of the Company, the making of any written offer by any Acquiring Person
         to the holders of the common stock of the Company, which offer, if
         accepted by the requisite number of holders, would result in a Change
         in Control.

SECTION 9.      AFFIRMATIVE COVENANTS.

         The Company covenants that so long as any of the Notes are outstanding:

         Section 9.1. Compliance with Law. The Company will, and will cause each
of its Subsidiaries to, comply with all laws, ordinances or governmental rules
or regulations to which each of them is subject, including, without limitation,
Environmental Laws, and will obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations
necessary to the ownership of their respective properties or to the conduct of
their respective businesses, in each case to the extent necessary to ensure that
non-compliance with such laws, ordinances or governmental rules or regulations
or failures to obtain or maintain in effect such licenses, certificates,
permits, franchises and other governmental authorizations could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

         Section 9.2. Insurance. The Company will, and will cause each of its
Subsidiaries to, maintain, with financially sound and reputable insurers,
insurance with respect to their respective properties and businesses against
such casualties and contingencies, of such types, on such terms and in such
amounts (including deductibles, co-insurance and self-insurance, if adequate
reserves

                                      A-24
<PAGE>   31

are maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly
situated.

         Section 9.3. Maintenance of Properties. The Company will, and will
cause each of its Subsidiaries to, maintain and keep, or cause to be maintained
and kept, their respective properties in good repair, working order and
condition (other than ordinary wear and tear), so that the business carried on
in connection therewith may be properly conducted at all times, provided that
this Section shall not prevent the Company or any Subsidiary from discontinuing
the operation and the maintenance of any of its properties if such
discontinuance is desirable in the conduct of its business and the Company has
concluded that such discontinuance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

         Section 9.4. Payment of Taxes and Claims. The Company will, and will
cause each of its Subsidiaries to, file all tax returns required to be filed in
any jurisdiction and to pay and discharge all taxes shown to be due and payable
on such returns and all other taxes, assessments, governmental charges, or
levies imposed on them or any of their properties, assets, income or franchises,
to the extent such taxes and assessments have become due and payable and before
they have become delinquent and all claims for which sums have become due and
payable that have or might become a Lien on properties or assets of the Company
or any Subsidiary not permitted by Section 10.4, provided that neither the
Company nor any Subsidiary need pay any such tax or assessment or claims if (i)
the amount, applicability or validity thereof is contested by the Company or
such Subsidiary on a timely basis in good faith and in appropriate proceedings,
and the Company or a Subsidiary has established adequate reserves therefor in
accordance with GAAP on the books of the Company or such Subsidiary or (ii) the
non-filing or nonpayment, as the case may be, of all such taxes and assessments
in the aggregate could not reasonably be expected to have a Material Adverse
Effect.

         Section 9.5. Corporate Existence, Etc. Subject to Sections 10.5 and
10.6, the Company will at all times preserve and keep in full force and effect
its corporate existence, and will at all times preserve and keep in full force
and effect the corporate existence of each of its Subsidiaries (unless merged
into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of
the Company and its Subsidiaries unless, in the good faith judgment of the
Company, the termination of or failure to preserve and keep in full force and
effect such corporate existence, right or franchise could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

         Section 9.6. Guaranty by Subsidiaries. So long as the Guaranty
Agreement shall remain in effect, the Company will cause any Person which
becomes a Domestic Subsidiary after the Closing to enter into the Guaranty
Agreement, together with any security agreement necessary to cause the Guaranty
Agreement to rank pari passu with the Debt owing to the Bank Lenders, and to
deliver within five Business Days thereafter to each of the holders of the
Notes, a joinder agreement in respect of the Guaranty Agreement and any security
agreement similar to any that have been executed and delivered in favor of the
Bank Lenders.

                                      A-25
<PAGE>   32

SECTION 10.     NEGATIVE COVENANTS.

         The Company covenants that so long as any of the Notes are outstanding:

         Section 10.1. Consolidated Net Worth. The Company will not, at any
time, permit Consolidated Net Worth to be less than the sum of (a) $600,000,000,
plus (b) an aggregate amount equal to 50% of its Consolidated Net Income (but,
in each case, only if a positive number) for each completed fiscal quarter
beginning with the fiscal quarter ended March 31, 2000.

         Section 10.2. Limitation on Consolidated Debt. The Company will not, at
any time, permit the Consolidated Debt Ratio to be greater than 3.50 to 1.00.

         Section 10.3. Limitation on Priority Debt. The Company will not, at any
time, permit Priority Debt to exceed 20% of Consolidated Net Worth (determined
as of the then most recently ended fiscal quarter of the Company).

         Section 10.4. Interest Charges Coverage Ratio. The Company will not, at
any time, permit the Interest Charges Coverage Ratio to be less than 2.00 to
1.00.

         Section 10.5. Limitation on Liens. The Company will not, and will not
permit any of its Subsidiaries to, directly or indirectly create, incur, assume
or permit to exist (upon the happening of a contingency or otherwise), any Lien
on or with respect to any property or asset (including, without limitation, any
document or instrument in respect of goods or accounts receivable) of the
Company or any such Subsidiary, whether now owned or held or hereafter acquired,
or any income or profits therefrom, or assign or otherwise convey any right to
receive income or profits, provided that this Section 10.5 shall not limit the
Company's ability to pay dividends on its capital stock if and when declared by
the board of directors of the Company (unless it makes, or causes to be made,
effective provision whereby the Notes will be equally and ratably secured with
any and all other obligations thereby secured, such security to be pursuant to a
written agreement satisfactory to the Required Holders and, in any such case,
the Notes shall have the benefit, to the fullest extent that, and with such
priority as, the holders of the Notes may be entitled under applicable law, of
an equitable Lien on such property) except:

                  (a) Liens for taxes, assessments or other governmental charges
         which are not yet due and payable or the payment of which is not at the
         time required by Section 9.4;

                  (b) any attachment or judgment Lien, unless the judgment it
         secures shall not, within 60 days after the entry thereof, have been
         discharged or execution thereof stayed pending appeal, or shall not
         have been discharged within 60 days after the expiration of any such
         stay;

                  (c) Liens incidental to the conduct of business or the
         ownership of properties and assets (including landlords', carriers',
         warehousemen's, mechanics', materialmen's and other similar Liens) and
         Liens to secure the performance of bids, tenders, leases, or trade
         contracts, or to secure statutory obligations (including obligations
         under workers

                                      A-26
<PAGE>   33

         compensation, unemployment insurance and other social security
         legislation), surety or appeal bonds or other Liens incurred in the
         ordinary course of business and not in connection with the borrowing of
         money;

                  (d) leases or subleases entered into by the Company or its
         Subsidiaries as either lessors or sublessors, easements, rights-of-way,
         restrictions and other similar charges or encumbrances (including
         zoning restrictions), in each case incidental to the ownership of
         property or assets or the ordinary conduct of the business of the
         Company or any of its Subsidiaries, provided that such Liens do not, in
         the aggregate, detract from the value of such property in any material
         way;

                  (e) Liens incidental to minor survey exceptions and similar
         Liens, provided that such Liens do not, in the aggregate, materially
         detract from the value of such property;

                  (f) Liens on property or assets of Subsidiaries securing Debt
         owing to the Company or to another Subsidiary;

                  (g) Liens existing on the date of Closing described in
         Schedule 10.5 which secure outstanding Debt of the Company and its
         Subsidiaries referred to in Schedule 5.15 hereto;

                  (h) any Lien existing on property of a Person immediately
         prior to its being consolidated with or merged into the Company or a
         Subsidiary or its becoming a Subsidiary, or any Lien existing on any
         property acquired by the Company or any Subsidiary at the time such
         property is so acquired (whether or not the Debt secured thereby shall
         have been assumed), provided that (i) no such Lien shall have been
         created or assumed in contemplation of such consolidation or merger or
         such Person's becoming a Subsidiary or such acquisition of property,
         (ii) each such Lien shall extend solely to the item or items of
         property so acquired, and (iii) the aggregate principal amount of all
         Debt secured by any such Lien shall be permitted by the limitations set
         forth in Section 10.2;

                  (i) Liens given to secure the payment of the purchase price
         incurred in connection with the acquisition, lease (including any
         Capital Lease) or construction of property (other than accounts
         receivable or inventory) useful and intended to be used in carrying on
         the business of the Company or a Subsidiary, including Liens existing
         on such property at the time of acquisition, lease or construction
         thereof or improvements thereon, or Liens incurred within 180 days of
         such acquisition or the completion of such construction, provided that
         (i) the Lien shall attach solely to the property acquired, purchased,
         leased, constructed or improved, (ii) at the time of acquisition or
         construction of such property, the aggregate amount remaining unpaid on
         all Debt secured by Liens on such property, whether or not assumed by
         the Company or a Subsidiary, shall not exceed an amount equal to the
         lesser of the total purchase price or Fair Market Value at the time of
         acquisition or construction of such property (as determined in good
         faith by one or more officers of the Company or such Subsidiary, as the
         case may be, to whom authority to enter into the transaction has been
         delegated by the board of directors of the Company

                                      A-27
<PAGE>   34

         or such Subsidiary, as the case may be), and (iii) the aggregate
         principal amount of all Debt secured by such Liens shall be permitted
         by the limitations set forth in Section 10.2;

                  (j) Liens created by the Security Documents and similar
         security documents securing Debt outstanding under this Agreement, the
         Guaranty Agreement and the Bank Credit Agreement and any related
         Guaranty of the Bank Credit Agreement provided that in the case of any
         successor Bank Credit Agreement, the Bank Lenders and the holders of
         the Notes shall continue to be parties to the Intercreditor Agreement;

                  (k) any extensions, renewals or replacements of any Lien
         permitted by the preceding subparagraphs of this Section 10.5, provided
         that (i) no additional property shall be encumbered by such Liens, (ii)
         the unpaid principal amount of the Debt secured thereby shall not be
         increased prior to or on or after the date of any extension, renewal or
         replacement, (iii) the weighted average life to maturity of the Debt
         secured by such Liens shall not be reduced, and (iv) at such time and
         immediately after giving effect thereto, no Default or Event of Default
         would exist; and

                  (l) in addition to the Liens permitted by the preceding
         subparagraphs (a) through (k), inclusive, of this Section 10.5, Liens
         securing Debt of the Company, provided that the aggregate principal
         amount of such Debt shall not at any time exceed 10% of Consolidated
         Net Worth (determined as of the then most recently ended fiscal quarter
         of the Company).

         Section 10.6. Merger, Consolidation. The Company will not, and will not
permit any Subsidiary to, consolidate with or be a party to a merger with any
other Person; provided, however, that:

                  (1) any Subsidiary may merge or consolidate with or into the
         Company, so long as in any merger or consolidation involving the
         Company, the Company shall be the surviving entity;

                  (2) any Subsidiary may merge or consolidate with or into any
         other Person if either (x) the Subsidiary shall be the surviving
         entity, or (y) if the Subsidiary is not the surviving entity, such
         transaction is permitted by Section 10.7; and

                  (3) the Company may consolidate or merge with any other Person
         if (i) either (x) the Company shall be the surviving entity, or (y) if
         the surviving entity is other than the Company, (A) such entity is
         organized under the laws of the United States or any jurisdiction
         thereof, (B) such entity expressly assumes, by written agreement
         satisfactory in scope and form to the Required Holders, all obligations
         of the Company under the Notes, this Agreement and each Security
         Document to which the Company is a party, (C) such entity shall cause
         to be delivered to each holder of Notes an opinion of independent
         counsel to the effect that all agreements or instruments effecting such
         assumption are enforceable in accordance with their terms and comply
         with the provisions of this Section 10.6 and otherwise satisfactory in
         scope and form to the Required Holders, and

                                      A-28
<PAGE>   35

         (ii) at the time of such consolidation or merger and after giving
         effect thereto, no Default or Event of Default shall have occurred and
         be continuing.

         Section 10.7. Sales of Assets. (a) The Company will not, and will not
permit any Subsidiary to, sell, lease or otherwise dispose of any substantial
part (as defined below) of the assets of the Company and its Subsidiaries;
provided, however, that the Company or any Subsidiary may sell lease or
otherwise dispose of assets constituting a substantial part of the assets of the
Company and its Subsidiaries if such assets are sold for Fair Market Value and,
at such time and after giving effect thereto, no Default or Event of Default
shall have occurred and be continuing, and an amount equal to the proceeds
received from such sale, lease or other disposition during such fiscal year
which shall be in excess of 10% of the book value of Consolidated Total Assets,
determined as of the end of the fiscal year immediately preceding such sale,
lease or other disposition, shall be used within 180 days of such disposition:

                  (1) to acquire property, plant and equipment or any business
         entity (including the capital stock thereof) used or useful in carrying
         on the business of the Company and its Subsidiaries and having a Fair
         Market Value at least equal to the Fair Market Value of such assets
         sold, leased or otherwise disposed of; or

                  (2) to prepay or retire Senior Debt of the Company and/or its
         Subsidiaries, provided that if any Notes are prepaid pursuant to the
         terms of this Section 10.7, such Notes shall also be prepaid in
         accordance with the terms of Section 8.2 of this Agreement.

         As used in this Section 10.7, a sale, lease or other disposition of
assets shall be deemed to be a "substantial part" of the assets of the Company
and its Subsidiaries if the book value of such assets, when added to the book
value of all other assets sold, leased or otherwise disposed of by the Company
and its Subsidiaries (other than in transactions (i) in the ordinary course of
business, (ii) in which the purchaser is the Company or a Subsidiary, or (iii)
which are Excluded Sale and Leaseback Transactions) during such fiscal year,
exceeds 10% of the book value of Consolidated Total Assets, determined as of the
end of the fiscal quarter immediately preceding such sale, lease or other
disposition.

         Section 10.8. Nature of Business. Neither the Company nor any
Subsidiary will engage in any business if, as a result, the general nature of
the business, taken on a consolidated basis, which would then be engaged in by
the Company and its Subsidiaries would be substantially changed from the general
nature of the business engaged in by the Company and its Subsidiaries on the
date of this Agreement.

         Section 10.9. Transactions with Affiliates. The Company will not and
will not permit any Subsidiary to enter into directly or indirectly any Material
transaction or Material group of related transactions (including without
limitation the purchase, lease, sale or exchange of properties of any kind or
the rendering of any service) with any Affiliate (other than the Company or
another Subsidiary), except upon fair and reasonable terms no less favorable to
the Company or such Subsidiary than would be obtainable in a comparable
arm's-length transaction with a Person not an Affiliate.

                                      A-29
<PAGE>   36

         Section 10.10. Further Assurances. So long as any Security Document and
the Guaranty Agreement shall remain in effect, if the Collateral Agent shall
resign or be removed or the Intercreditor Agreement shall no longer be in full
force and effect, the Company will, and will cause each Guarantor to, execute
and deliver to each holder of a Note such additional documents (including
amendments to the Security Documents) as the holders of the Notes shall
reasonably request so that there shall continue to be a Collateral Agent under
the Security Documents and to insure that the Lien of the Security Documents
shall continue to be in full force and effect.

         So long as any Security Document shall remain in effect, the Company
also agrees at its own expense to cause or use its reasonable commercial efforts
to cause the Security Documents and all supplements and amendments thereto and
all financing and continuation statements and similar notices required by
applicable law at all times to be kept, recorded and filed in such manner and in
such places to maintain the effectiveness of any original or supplemental
filings under the Uniform Commercial Code or comparable law in any relevant
jurisdiction to maintain, in full force and effect, the Lien and security
interest granted by the Company and the Guarantors to the holders of the Notes
or the Collateral Agent for the benefit of the holders of the Notes pursuant to
the Security Documents.

SECTION 11.     EVENTS OF DEFAULT.

         An "Event of Default" shall exist if any of the following conditions or
events shall occur and be continuing:

                  (a) the Company defaults in the payment of any principal or
         Make-Whole Amount, if any, on any Note when the same becomes due and
         payable, whether at maturity or at a date fixed for prepayment or by
         declaration or otherwise; or

                  (b) the Company defaults in the payment of any interest on any
         Note for more than five Business Days after the same becomes due and
         payable; or

                  (c) the Company defaults in the performance of or compliance
         with any term contained in Section 10.4, Section 10.6 or Section 10.7
         and such default is not remedied within five (5) Business Days of the
         occurrence thereof; or

                  (d) the Company defaults in the performance of or compliance
         with any term contained herein or in any Supplement (other than those
         referred to in paragraphs (a), (b) and (c) of this Section 11) and such
         default is not remedied within 30 days after the earlier of (i) a
         Responsible Officer obtaining actual knowledge of such default and (ii)
         the Company receiving written notice of such default from any holder of
         a Note (any such written notice to be identified as a "notice of
         default" and to refer specifically to this paragraph (d) of Section
         11); or

                  (e) prior to the release of any Guarantor from the Guaranty
         Agreement upon the occurrence of a Guaranty Release Event, a default
         shall occur in the observance or performance of any covenant or
         agreement contained in the Guaranty Agreement by such Guarantor and
         such default shall continue beyond the period of grace, if any, allowed

                                      A-30
<PAGE>   37

         with respect thereto or the Guaranty Agreement shall cease to be in
         full force and effect for any reason whatsoever, including, without
         limitation, a determination by any governmental body or court that such
         agreement is invalid, void or unenforceable against such Guarantor or
         such Guarantor shall contest or deny in writing the validity or
         enforceability of any of its obligations under the Guaranty Agreement;
         or

                  (f) prior to the release of any Security Document upon the
         occurrence of a Collateral Release Event, a default shall occur in the
         observance or performance of any covenant or agreement contained in
         such Security Document and such default shall continue beyond the
         period of grace, if any, allowed with respect thereto or such Security
         Document creating or granting a Lien on any Collateral shall cease to
         be in full force and effect or the Company or any Guarantor shall deny
         or disaffirm the validity of any such Lien;

                  (g) any representation or warranty made in writing by or on
         behalf of the Company or any Guarantor or by any officer of the Company
         or any Guarantor in this Agreement, any Security Document or the
         Guaranty Agreement or in any writing furnished in connection with the
         transactions contemplated hereby or thereby proves to have been false
         or incorrect in any material respect on the date as of which made; or

                  (h) (i) the Company or any Significant Subsidiary is in
         default (as principal or as guarantor or other surety) in the payment
         of any principal of or premium or make-whole amount or interest on Debt
         other than the Notes (individually or in the aggregate) that is
         outstanding in an aggregate principal amount of 5% or more of
         Consolidated Net Worth beyond any period of grace provided with respect
         thereto, or (ii) the Company or any Significant Subsidiary is in
         default in the performance of or compliance with any term of any
         instrument, mortgage, indenture or other agreement relating to any Debt
         other than the Notes (individually or in the aggregate) in an aggregate
         principal amount of 5% or more of Consolidated Net Worth or any other
         condition exists, and as a consequence of such default or condition
         such Debt has become, or has been declared, due and payable before its
         stated maturity or before its regularly scheduled dates of payment, or
         (iii) as a consequence of the occurrence or continuation of any event
         or condition (other than the passage of time or the right of the holder
         of Debt to convert such Debt into equity interests), the Company or any
         Significant Subsidiary has become obligated to purchase or repay Debt
         other than the Notes before its regular maturity or before its
         regularly scheduled dates of payment in an aggregate outstanding
         principal amount of 5% or more of Consolidated Net Worth; or

                  (i) the Company or any Significant Subsidiary (i) is generally
         not paying, or admits in writing its inability to pay, its debts as
         they become due, (ii) files, or consents by answer or otherwise to the
         filing against it of, a petition for relief or reorganization or
         arrangement or any other petition in bankruptcy, for liquidation or to
         take advantage of any bankruptcy, insolvency, reorganization,
         moratorium or other similar law of any jurisdiction, (iii) makes an
         assignment for the benefit of its creditors, (iv) consents to the
         appointment of a custodian, receiver, trustee or other officer with
         similar powers with respect to it or with respect to any substantial
         part of its property, (v) is adjudicated as

                                      A-31
<PAGE>   38

         insolvent or to be liquidated, or (vi) takes corporate action for the
         purpose of any of the foregoing; or

                  (j) a court or governmental authority of competent
         jurisdiction enters an order appointing, without consent by the Company
         or any of its Significant Subsidiaries, a custodian, receiver, trustee
         or other officer with similar powers with respect to it or with respect
         to any substantial part of its property, or constituting an order for
         relief or approving a petition for relief or reorganization or any
         other petition in bankruptcy or for liquidation or to take advantage of
         any bankruptcy or insolvency law of any jurisdiction, or ordering the
         dissolution, winding-up or liquidation of the Company or any of its
         Significant Subsidiaries, or any such petition shall be filed against
         the Company or any of its Significant Subsidiaries and such petition
         shall not be dismissed within 60 days; or

                  (k) a final judgment or judgments at any one time outstanding
         for the payment of money aggregating an amount equal to 5% or more of
         Consolidated Net Worth are rendered against one or more of the Company
         and its Significant Subsidiaries and which judgments are not, within 60
         days after entry thereof, bonded, discharged or stayed pending appeal,
         or are not discharged within 60 days after the expiration of such stay;
         or

                  (l) If (i) any Plan shall fail to satisfy the minimum funding
         standards of ERISA or the Code for any plan year or part thereof or a
         waiver of such standards or extension of any amortization period is
         sought or granted under Section 412 of the Code, (ii) a notice of
         intent to terminate any Plan shall have been or is reasonably expected
         to be filed with the PBGC or the PBGC shall have instituted proceedings
         under Section 4042 of ERISA to terminate or appoint a trustee to
         administer any Plan or the PBGC shall have notified the Company or any
         ERISA Affiliate that a Plan may become a subject of any such
         proceedings, (iii) the aggregate "amount of unfunded benefit
         liabilities" (within the meaning of Section 4001(a)(18) of ERISA) under
         all Plans, determined in accordance with Title IV of ERISA, shall
         exceed an amount equal to 5% or more of Consolidated Net Worth, (iv)
         the Company or any ERISA Affiliate shall have incurred or is reasonably
         expected to incur any liability pursuant to Title I or IV of ERISA or
         the penalty or excise tax provisions of the Code relating to employee
         benefit plans, (v) the Company or any ERISA Affiliate withdraws from
         any Multiemployer Plan, or (vi) the Company or any Subsidiary
         establishes or amends any employee welfare benefit plan that provides
         post-employment welfare benefits in a manner that would increase the
         liability of the Company or any Subsidiary thereunder; and any such
         event or events described in clauses (i) through (vi) above, either
         individually or together with any other such event or events, could
         reasonably be expected to have a Material Adverse Effect.

As used in Section 11(l), the terms "employee benefit plan" and "employee
welfare benefit plan" shall have the respective meanings assigned to such terms
in Section 3 of ERISA.

SECTION 12.     REMEDIES ON DEFAULT, ETC.

         Section 12.1. Acceleration. (a) If an Event of Default with respect to
the Company described in paragraph (i) or (j) of Section 11 (other than an Event
of Default described in clause

                                      A-32
<PAGE>   39

(i) of paragraph (i) or described in clause (vi) of paragraph (i) by virtue of
the fact that such clause encompasses clause (i) of paragraph (i)) has occurred,
all the Notes of every Series then outstanding shall automatically become
immediately due and payable.

         (b) If any other Event of Default has occurred and is continuing, any
holder or holders of more than 50% in aggregate principal amount of each Series
of the Notes at the time outstanding may at any time at its or their option, by
notice or notices to the Company, declare all the Notes of such Series then
outstanding to be immediately due and payable.

         (c) If any Event of Default described in paragraph (a) or (b) of
Section 11 has occurred and is continuing with respect to any Series of Notes,
any holder or holders of Notes at the time outstanding affected by such Event of
Default may at any time, at its or their option, by notice or notices to the
Company, declare all the Notes held by such holder or holders to be immediately
due and payable.

         Upon any Note's becoming due and payable under this Section 12.1,
whether automatically or by declaration, such Note will forthwith mature and the
entire unpaid principal amount of such Note, plus (i) all accrued and unpaid
interest thereon and (ii) the Make-Whole Amount determined in respect of such
principal amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment, demand,
protest or further notice, all of which are hereby waived. The Company
acknowledges, and the parties hereto agree, that each holder of a Note has the
right to maintain its investment in the Notes free from repayment by the Company
(except as herein specifically provided for) and that the provision for payment
of a Make-Whole Amount by the Company in the event that the Notes are prepaid or
are accelerated as a result of an Event of Default, is intended to provide
compensation for the deprivation of such right under such circumstances.

         Section 12.2. Other Remedies. If any Default or Event of Default has
occurred and is continuing, and irrespective of whether any Notes have become or
have been declared immediately due and payable under Section 12.1, the Required
Holders at the time outstanding may proceed to protect and enforce the rights of
the holders by an action at law, suit in equity or other appropriate proceeding,
whether for the specific performance of any agreement contained herein or in any
Note, or for an injunction against a violation of any of the terms hereof or
thereof, or in aid of the exercise of any power granted hereby or thereby or by
law or otherwise.

         Section 12.3. Rescission. At any time after any Notes of any Series
have been declared due and payable pursuant to clause (b) or (c) of Section
12.1, the holders of not less than 50% in principal amount of the Notes of such
Series, taken individually, then outstanding, by written notice to the Company,
may rescind and annul any such declaration and its consequences if (a) the
Company has paid all overdue interest on the Notes of such Series, all principal
of and Make-Whole Amount, if any, on any Notes of such Series that are due and
payable and are unpaid other than by reason of such declaration, and all
interest on such overdue principal and Make-Whole Amount, if any, and (to the
extent permitted by applicable law) any overdue interest in respect of the Notes
of such Series, at the Default Rate, (b) all Events of Default and Defaults,
other than non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 17, and (c)
no judgment or

                                      A-33
<PAGE>   40

decree has been entered for the payment of any monies due pursuant hereto or to
any Notes. No rescission and annulment under this Section 12.3 will extend to or
affect any subsequent Event of Default or Default or impair any right consequent
thereon.

         Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. No
course of dealing and no delay on the part of any holder of any Note in
exercising any right, power or remedy shall operate as a waiver thereof or
otherwise prejudice such holder's rights, powers or remedies. No right, power or
remedy conferred by this Agreement or by any Note upon any holder thereof shall
be exclusive of any other right, power or remedy referred to herein or therein
or now or hereafter available at law, in equity, by statute or otherwise.
Without limiting the obligations of the Company under Section 15, the Company
will pay to the holder of each Note on demand such further amount as shall be
sufficient to cover all costs and expenses of such holder incurred in any
enforcement or collection under this Section 12, including, without limitation,
the reasonable attorneys' fees, expenses and disbursements for the holders as
set forth in Section 15.

SECTION 13.     REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

         Section 13.1. Registration of Notes. The Company shall keep at its
principal executive office a register for the registration and registration of
transfers of Notes. The name and address of each holder of one or more Notes,
each transfer thereof and the name and address of each transferee of one or more
Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered
shall be deemed and treated as the owner and holder thereof for all purposes
hereof, and the Company shall not be affected by any notice or knowledge to the
contrary. The Company shall give to any holder of a Note that is an
Institutional Investor promptly upon request therefor, a complete and correct
copy of the names and addresses of all registered holders of Notes.

         Section 13.2. Transfer and Exchange of Notes. Upon surrender of any
Note at the principal executive office of the Company for registration of
transfer or exchange (and in the case of a surrender for registration of
transfer, duly endorsed or accompanied by a written instrument of transfer duly
executed by the registered holder of such Note or its attorney duly authorized
in writing and accompanied by the address for notices of each transferee of such
Note or part thereof), the Company shall execute and deliver not more than 5
Business Days following surrender of such Note, at the Company's expense (except
as provided below), one or more new Notes (as requested by the holder thereof)
of the same Series (and of the same tranche if such Series has separate
tranches) in exchange therefor, in an aggregate principal amount equal to the
unpaid principal amount of the surrendered Note. Each such new Note shall be
payable to such Person as such holder may request and shall be substantially in
the form of the Note of such Series originally issued hereunder or pursuant to
any Supplement. Each such new Note shall be dated and bear interest from the
date to which interest shall have been paid on the surrendered Note or dated the
date of the surrendered Note if no interest shall have been paid thereon. The
Company may require payment of a sum sufficient to cover any stamp tax or
governmental charge imposed in respect of any such transfer of Notes. Notes
shall not be transferred in denominations of less than $100,000, provided that
if necessary to enable the registration of transfer by a holder of its entire
holding of Notes, one Note may be in a denomination of less than $100,000. Any
transferee, by its acceptance of a Note registered in its name (or the name of

                                      A-34
<PAGE>   41

its nominee), shall be deemed to have made the representation set forth in
Section 6.2, provided that such holder may (in reliance upon information
provided by the Company, which shall not be unreasonably withheld) make a
representation to the effect that the purchase by such holder of any Note will
not constitute a non-exempt prohibited transaction under Section 406(a) of
ERISA.

         The Notes have not been registered under the Securities Act or under
the securities laws of any state and may not be transferred or resold unless
registered under the Securities Act and all applicable state securities laws or
unless an exemption from the requirement for such registration is available.

         Section 13.3. Replacement of Notes. Upon receipt by the Company of
evidence reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of any Note (which evidence shall be, in the case of
an Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and

                  (a) in the case of loss, theft or destruction, of indemnity
         reasonably satisfactory to it (provided that if the holder of such Note
         is, or is a nominee for, an original Purchaser or another holder of a
         Note with a minimum net worth of at least $50,000,000, such Person's
         own unsecured agreement of indemnity shall be deemed to be
         satisfactory), or

                  (b) in the case of mutilation, upon surrender and cancellation
         thereof,

the Company at its own expense shall execute and deliver not more than five
Business Days following satisfaction of such conditions, in lieu thereof, a new
Note of the same Series (and of the same tranche if such Series has separate
tranches), dated and bearing interest from the date to which interest shall have
been paid on such lost, stolen, destroyed or mutilated Note or dated the date of
such lost, stolen, destroyed or mutilated Note if no interest shall have been
paid thereon.

SECTION 14.     PAYMENTS ON NOTES.

         Section 14.1. Place of Payment. Subject to Section 14.2, payments of
principal, Make-Whole Amount, if any, and interest becoming due and payable on
the Notes shall be made in New York, New York at the principal office of Bank of
America, N.A. in such jurisdiction. The Company may at any time, by notice to
each holder of a Note, change the place of payment of the Notes so long as such
place of payment shall be either the principal office of the Company in such
jurisdiction or the principal office of a bank or trust company in such
jurisdiction.

         Section 14.2. Home Office Payment. So long as any Purchaser or such
Purchaser's nominee shall be the holder of any Note, and notwithstanding
anything contained in Section 14.1 or in such Note to the contrary, the Company
will pay all sums becoming due on such Note for principal, Make-Whole Amount, if
any, and interest by the method and at the address specified for such purpose
for such Purchaser on Schedule A hereto or, in the case of any Additional
Purchaser, Schedule A attached to any Supplement pursuant to which such
Additional Purchaser is a party, or by such other method or at such other
address as such Purchaser or Additional Purchaser shall have from time to time
specified to the Company in writing for such purpose,

                                      A-35
<PAGE>   42

without the presentation or surrender of such Note or the making of any notation
thereon, except that upon written request of the Company made concurrently with
or reasonably promptly after payment or prepayment in full of any Note, such
Purchaser or Additional Purchaser shall surrender such Note for cancellation,
reasonably promptly after any such request, to the Company at its principal
executive office or at the place of payment most recently designated by the
Company pursuant to Section 14.1. Prior to any sale or other disposition of any
Note held by any Purchaser or Additional Purchaser or such Person's nominee,
such Person will, at its election, either endorse thereon the amount of
principal paid thereon and the last date to which interest has been paid thereon
or surrender such Note to the Company in exchange for a new Note or Notes
pursuant to Section 13.2. The Company will afford the benefits of this Section
14.2 to any Institutional Investor that is the direct or indirect transferee of
any Note.

SECTION 15.     EXPENSES, ETC.

         Section 15.1. Transaction Expenses. Whether or not the transactions
contemplated hereby are consummated, the Company will pay all reasonable costs
and expenses (including reasonable attorneys' fees of one special counsel and,
if reasonably required, local or other counsel) incurred by the Purchasers and
the holders of Notes in connection with such transactions and in connection with
any amendments, waivers or consents under or in respect of this Agreement
(including any Supplement), the Security Documents, the Guaranty Agreement, the
Intercreditor Agreement or the Notes (whether or not such amendment, waiver or
consent becomes effective), including, without limitation: (a) the reasonable
costs and expenses incurred in enforcing or defending (or determining whether or
how to enforce or defend) any rights under this Agreement (including any
Supplement), the Security Documents, the Guaranty Agreement, the Intercreditor
Agreement or the Notes or in responding to any subpoena or other legal process
or informal investigative demand by any Governmental Authority issued in
connection with this Agreement (including any Supplement), the Security
Documents, the Guaranty Agreement, the Intercreditor Agreement or the Notes, or
by reason of being a holder of any Note, and (b) the reasonable costs and
expenses, including financial advisors' fees, incurred in connection with the
insolvency or bankruptcy of the Company or any Subsidiary or in connection with
any work-out or restructuring of the transactions contemplated hereby and by the
Notes. The Company will pay, and will save each Purchaser and each other holder
of a Note harmless from, all claims in respect of any reasonable fees, costs or
expenses if any, of brokers and finders (other than those retained by the
Purchasers).

         Section 15.2. Survival. The obligations of the Company under this
Section 15 will survive the payment or transfer of any Note, the enforcement,
amendment or waiver of any provision of this Agreement, any Supplement or the
Notes, and the termination of this Agreement or any Supplement.

SECTION 16.     SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

         All representations and warranties contained herein or in any
Supplement shall survive the execution and delivery of this Agreement or such
Supplement and the related Notes, the purchase or transfer by any Purchaser or
any Additional Purchaser of any such Note or portion

                                      A-36
<PAGE>   43

thereof or interest therein and may be relied upon by any subsequent holder of
any such Note, regardless of any investigation made at any time by or on behalf
of any Purchaser or any Additional Purchaser or any other holder of any such
Note. All statements contained in any certificate or other instrument delivered
by or on behalf of the Company pursuant to this Agreement or any Supplement
shall be deemed representations and warranties of the Company under this
Agreement; provided, that the representations and warranties contained in any
Supplement shall only be made for the benefit of the Additional Purchasers which
are party to such Supplement and the holders, including subsequent holders of
any Note issued pursuant to such Supplement, and shall not require the consent
of the holders of existing Notes. Subject to the preceding sentence, this
Agreement (including every Supplement), the Security Documents, the
Intercreditor Agreement, the Guaranty Agreement and the Notes embody the entire
agreement and understanding between the Purchasers and the Additional Purchasers
and the Company and supersede all prior agreements and understandings relating
to the subject matter hereof.

SECTION 17.     AMENDMENT AND WAIVER.

         Section 17.1. Requirements. (a) This Agreement (including any
Supplement) and the Notes may be amended, and the observance of any term hereof
or of the Notes may be waived (either retroactively or prospectively), with (and
only with) the written consent of the Company and the holders of Notes holding
more than 50% in aggregate principal amount of the Notes of each Series at the
time outstanding, except that (a) no amendment or waiver of any of the
provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof or the corresponding
provision of any Supplement, or any defined term (as it is used in any such
Section or such corresponding provision of any Supplement), will be effective as
to any holder of Notes unless consented to by such holder of Notes in writing,
and (b) no such amendment or waiver may, without the written consent of all of
the holders of Notes at the time outstanding affected thereby, (i) subject to
the provisions of Section 12 relating to acceleration or rescission, change the
amount or time of any prepayment or payment of principal of, or reduce the rate
or change the time of payment or method of computation of interest or of the
Make-Whole Amount on, the Notes, (ii) change the percentage of the principal
amount of the Notes the holders of which are required to consent to any such
amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or
20.

         (b) Supplements. Notwithstanding anything to the contrary contained
herein, the Company may enter into any Supplement providing for the issuance of
one or more Series of Additional Notes consistent with Sections 2.4 and 4.18
hereof without obtaining the consent of any holder of any other Series of Notes.

         Section 17.2. Solicitation of Holders of Notes.

         (a) Solicitation. The Company will provide each holder of the Notes
(irrespective of the amount of Notes then owned by it) with sufficient
information, sufficiently far in advance of the date a decision is required, to
enable such holder to make an informed and considered decision with respect to
any proposed amendment, waiver or consent in respect of any of the provisions
hereof, any Supplement or of the Notes. The Company will deliver executed or
true and correct copies of each amendment, waiver or consent effected pursuant
to the provisions of

                                      A-37
<PAGE>   44

this Section 17 to each holder of outstanding Notes promptly following the date
on which it is executed and delivered by, or receives the consent or approval
of, the requisite holders of Notes.

         (b) Payment. The Company will not directly or indirectly pay or cause
to be paid any remuneration, whether by way of supplemental or additional
interest, fee or otherwise, or grant any security, to any holder of Notes as
consideration for or as an inducement to the entering into by any holder of
Notes of any waiver or amendment of any of the terms and provisions hereof or
any Supplement unless such remuneration is concurrently paid, or security is
concurrently granted, on the same terms, ratably to each holder of Notes then
outstanding even if such holder did not consent to such waiver or amendment.

         Section 17.3. Binding Effect, Etc. Any amendment or waiver consented to
as provided in this Section 17 applies equally to all holders of Notes and is
binding upon them and upon each future holder of any Note and upon the Company
without regard to whether such Note has been marked to indicate such amendment
or waiver. No such amendment or waiver will extend to or affect any obligation,
covenant, agreement, Default or Event of Default not expressly amended or waived
or impair any right consequent thereon. No course of dealing between the Company
and the holder of any Note nor any delay in exercising any rights hereunder or
under any Note shall operate as a waiver of any rights of any holder of such
Note. As used herein, the term "this Agreement" and references thereto shall
mean this Agreement as it may from time to time be amended or supplemented.

         Section 17.4. Notes Held by Company, Etc. Solely for the purpose of
determining whether the holders of the requisite percentage of the aggregate
principal amount of Notes then outstanding approved or consented to any
amendment, waiver or consent to be given under this Agreement or the Notes, or
have directed the taking of any action provided herein or in the Notes to be
taken upon the direction of the holders of a specified percentage of the
aggregate principal amount of Notes then outstanding, Notes directly or
indirectly owned by the Company or any of its Affiliates shall be deemed not to
be outstanding.

SECTION 18.     NOTICES.

         All notices and communications provided for hereunder shall be in
writing and sent (a) by telefacsimile if the sender on the same day sends a
confirming copy of such notice by a recognized overnight delivery service
(charges prepaid), or (b) by registered or certified mail with return receipt
requested (postage prepaid), or (c) by a recognized overnight delivery service
(with charges prepaid). Any such notice must be sent:

                  (i) if to a Purchaser or such Purchaser's nominee, to such
         Purchaser or such Purchaser's nominee at the address specified for such
         communications in Schedule A to this Agreement, or at such other
         address as such Purchaser or such Purchaser's nominee shall have
         specified to the Company in writing pursuant to this Section 18,

                  (ii) if to an Additional Purchaser or such Additional
         Purchaser's nominee, to such Additional Purchaser or such Additional
         Purchaser's nominee at the address specified for such communications in
         Schedule A to any Supplement, or at such other

                                      A-38
<PAGE>   45

         address as such Additional Purchaser or such Additional Purchaser's
         nominee shall have specified to the Company in writing,

                  (iii) if to any other holder of any Note, to such holder at
         such address as such other holder shall have specified to the Company
         in writing pursuant to this Section 18, or

                  (iv) if to the Company, to the Company at its address set
         forth at the beginning hereof to the attention of Chief Financial
         Officer, with a copy to the General Counsel, or at such other address
         as the Company shall have specified to the holder of each Note in
         writing.

Notices under this Section 18 will be deemed given only when actually received.

SECTION 19.     REPRODUCTION OF DOCUMENTS.

         This Agreement and all documents relating thereto, including, without
limitation, (a) consents, waivers and modifications that may hereafter be
executed, (b) documents received by each Purchaser at the Closing (except the
Notes themselves), and (c) financial statements, certificates and other
information previously or hereafter furnished to each Purchaser, may be
reproduced by such Purchaser by any photographic, photostatic, microfilm,
microcard, miniature photographic or other similar process and such Purchaser
may destroy any original document so reproduced. The Company agrees and
stipulates that, to the extent permitted by applicable law, any such
reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by such Purchaser in the
regular course of business) and any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence. This
Section 19 shall not prohibit the Company or any other holder of Notes from
contesting any such reproduction to the same extent that it could contest the
original, or from introducing evidence to demonstrate the inaccuracy of any such
reproduction.

SECTION 20.     CONFIDENTIAL INFORMATION.

         For the purposes of this Section 20, "Confidential Information" means
information delivered to any Purchaser by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by or otherwise
pursuant to this Agreement that is proprietary in nature and that was clearly
marked or labeled or otherwise adequately identified when received by such
Purchaser as being confidential information of the Company or such Subsidiary,
provided that such term does not include information that (a) was publicly known
or otherwise known to such Purchaser prior to the time of such disclosure, (b)
subsequently becomes publicly known through no act or omission by such Purchaser
or any Person acting on such Purchaser's behalf, (c) otherwise becomes known to
such Purchaser other than through disclosure by the Company or any Subsidiary or
(d) constitutes financial statements delivered to such Purchaser under Section
7.1 that are otherwise publicly available. Each Purchaser will maintain the
confidentiality of such Confidential Information in accordance with procedures
adopted by such Purchaser in good faith to protect confidential information of
third parties delivered to such

                                      A-39
<PAGE>   46

Purchaser, provided that such Purchaser may deliver or disclose Confidential
Information to (i) such Purchaser's directors, trustees, officers, employees,
agents, attorneys and affiliates (to the extent such disclosure reasonably
relates to the administration of the investment represented by such Purchaser's
Notes), (ii) such Purchaser's financial advisors and other professional advisors
who agree to hold confidential the Confidential Information substantially in
accordance with the terms of this Section 20, (iii) any other holder of any
Note, (iv) any Institutional Investor to which such Purchaser sells or offers to
sell such Note or any part thereof or any participation therein (if such Person
has agreed in writing prior to its receipt of such Confidential Information to
be bound by the provisions of this Section 20), (v) any Person from which such
Purchaser offers to purchase any security of the Company (if such Person has
agreed in writing prior to its receipt of such Confidential Information to be
bound by the provisions of this Section 20), (vi) any federal or state
regulatory authority having jurisdiction over such Purchaser, (vii) the National
Association of Insurance Commissioners or any similar organization, or any
nationally recognized rating agency that requires access to information about
such Purchaser's investment portfolio, or (viii) any other Person to which such
delivery or disclosure may be necessary or appropriate (w) to effect compliance
with any law, Rule, regulation or order applicable to such Purchaser, (x) in
response to any subpoena or other legal process, provided that, to the extent
permitted by law, each holder will use reasonable efforts to notify the Company
of any request to disclose Confidential Information requested pursuant to any
subpoena or other legal process, provided further that the failure to notify the
Company of any such request shall not result in any liability to such holder,
(y) in connection with any litigation to which such Purchaser is a party or (z)
if an Event of Default has occurred and is continuing, to the extent such
Purchaser may reasonably determine such delivery and disclosure to be necessary
or appropriate in the enforcement or for the protection of the rights and
remedies under such Purchaser's Notes and this Agreement. Each holder of a Note,
by its acceptance of a Note, will be deemed to have agreed to be bound by and to
be entitled to the benefits of this Section 20 as though it were a party to this
Agreement. On reasonable request by the Company in connection with the delivery
to any holder of a Note of information required to be delivered to such holder
under this Agreement or requested by such holder (other than a holder that is a
party to this Agreement or its nominee), such holder will enter into an
agreement with the Company embodying the provisions of this Section 20.

SECTION 21.     SUBSTITUTION OF PURCHASER.

         Each Purchaser shall have the right to substitute any one of such
Purchaser's Affiliates as the purchaser of the Notes that such Purchaser has
agreed to purchase hereunder, by written notice to the Company, which notice
shall be signed by both such Purchaser and such Purchaser's Affiliate, shall
contain such Affiliate's agreement to be bound by this Agreement and shall
contain a confirmation by such Affiliate of the accuracy with respect to it of
the representations set forth in Section 6. Upon receipt of such notice,
wherever the word "Purchaser" is used in this Agreement (other than in this
Section 21), such word shall be deemed to refer to such Affiliate in lieu of
such Purchaser. In the event that such Affiliate is so substituted as a
purchaser hereunder and such Affiliate thereafter transfers to such Purchaser
all of the Notes then held by such Affiliate, upon receipt by the Company of
notice of such transfer, wherever the word "Purchaser" is used in this Agreement
(other than in this Section 21), such

                                      A-40
<PAGE>   47

word shall no longer be deemed to refer to such Affiliate, but shall refer to
such Purchaser, and such Purchaser shall have all the rights of an original
holder of the Notes under this Agreement.

SECTION 22.     MISCELLANEOUS.

         Section 22.1. Successors and Assigns. All covenants and other
agreements contained in this Agreement (including all covenants and other
agreements contained in any Supplement) by or on behalf of any of the parties
hereto bind and inure to the benefit of their respective successors and assigns
(including, without limitation, any subsequent holder of a Note) whether so
expressed or not.

         Section 22.2. Payments Due on Non-Business Days. Anything in this
Agreement or the Notes to the contrary notwithstanding, any payment of principal
of or Make-Whole Amount or interest on any Note that is due on a date other than
a Business Day shall be made on the next succeeding Business Day without
including the additional days elapsed in the computation of the interest payable
on such next succeeding Business Day.

         Section 22.3. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall (to the full extent permitted by law)
not invalidate or render unenforceable such provision in any other jurisdiction.

         Section 22.4. Construction. Each covenant contained herein shall be
construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person.

         Section 22.5. Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original but all of which
together shall constitute one instrument. Each counterpart may consist of a
number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto.

         Section 22.6. Governing Law. This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by,
the law of the State of New York excluding choice-of-law principles of the law
of such State that would require the application of the laws of a jurisdiction
other than such State.

         Section 22.7. Legal Rate of Interest. Regardless of any provision
contained in this Agreement or in any Guaranty Agreement or the Security
Documents, the rate of interest borne by the Notes shall not exceed the maximum
amount of nonusurious interest that may be contracted for, taken, reserved,
charged or received under any applicable law; any interest in excess of that
maximum amount shall be credited on the principal of the Notes of the applicable
Series or, if that has been paid, refunded. On any acceleration or required or
permitted

                                      A-41
<PAGE>   48

prepayment, any such excess shall be canceled automatically as of the
acceleration or prepayment or, if already paid, credited on the principal of the
Notes of the applicable Series or, if the principal of the Notes of such Series
has been paid, refunded. In determining whether or not the interest paid or
payable, under any specific contingency, exceeds the maximum amount of
nonusurious interest, the Company and holders of the Notes shall, to the maximum
extent permitted under applicable law, (a) characterize any nonprincipal payment
as an expense, fee or premium rather than as interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) spread the total amount of interest
throughout the entire contemplated term of the Notes of the applicable Series.

         Section 22.8. Submission to Process. THE COMPANY HEREBY AGREES THAT ANY
LEGAL ACTION OR PROCEEDING AGAINST THE COMPANY WITH RESPECT TO THIS AGREEMENT,
ANY SECURITY DOCUMENT OR THE NOTES MAY BE BROUGHT IN THE COURTS OF THE STATE OF
NEW YORK OR (TO THE EXTENT THEY HAVE SUBJECT MATTER JURISDICTION) OF THE UNITED
STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AS THE HOLDERS OF 51% IN
PRINCIPAL AMOUNT OF THE NOTES MAY ELECT, AND, BY EXECUTION AND DELIVERY HEREOF,
THE COMPANY ACCEPTS AND CONSENTS, FOR ITSELF AND IN RESPECT TO ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY, TO THE JURISDICTION OF THE AFORESAID COURTS AND
AGREES THAT SUCH JURISDICTION SHALL BE EXCLUSIVE, UNLESS WAIVED BY THE HOLDERS
OF 51% IN PRINCIPAL AMOUNT OF THE NOTES IN WRITING, WITH RESPECT TO ANY ACTION
OR PROCEEDING BROUGHT BY THE COMPANY AGAINST THE HOLDERS AND ANY QUESTIONS
RELATING TO USURY. THE COMPANY WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE
LAW) ANY RIGHT TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE
SAID COURTS ON THE BASIS OF FORUM NON CONVENIENS. IN FURTHERANCE OF THE
FOREGOING, THE COMPANY HEREBY IRREVOCABLY DESIGNATES AND APPOINTS CAPITOL
SERVICES INC., AS AGENT OF THE COMPANY TO RECEIVE SERVICE OF ALL PROCESS BROUGHT
AGAINST THE COMPANY EACH WITH RESPECT TO ANY SUCH PROCEEDING IN ANY SUCH COURT
IN NEW YORK, SUCH SERVICE BEING HEREBY ACKNOWLEDGED BY THE COMPANY TO BE
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT. COPIES OF ANY SUCH PROCESS SO
SERVED SHALL ALSO, IF PERMITTED BY LAW, BE SENT BY REGISTERED MAIL TO THE
COMPANY IN ACCORDANCE WITH SECTION 18 BUT THE FAILURE OF THE COMPANY TO RECEIVE
SUCH COPIES SHALL NOT AFFECT IN ANY WAY THE SERVICE OF SUCH PROCESS AS
AFORESAID. THE COMPANY SHALL FURNISH TO THE HOLDERS A CONSENT OF CAPITOL
SERVICES INC. AGREEING TO ACT HEREUNDER PRIOR TO THE DATE OF CLOSING. NOTHING
HEREIN SHALL AFFECT THE RIGHT OF THE HOLDERS TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE HOLDERS TO BRING
PROCEEDINGS AGAINST THE COMPANY IN THE COURTS OF ANY OTHER JURISDICTION. IF FOR
ANY REASON CAPITOL SERVICES INC. SHALL RESIGN OR OTHERWISE CEASE TO ACT AS
AGENT, THE COMPANY HEREBY IRREVOCABLY AGREES TO (A) IMMEDIATELY DESIGNATE AND
APPOINT A NEW AGENT ACCEPTABLE TO THE HOLDERS OF 51% IN PRINCIPAL AMOUNT OF THE
NOTES TO SERVE IN SUCH CAPACITY AND, IN SUCH EVENT, SUCH NEW AGENT SHALL BE
DEEMED TO BE SUBSTITUTED FOR CAPITOL SERVICES INC. FOR ALL PURPOSES HEREOF AND
(B) PROMPTLY DELIVER TO THE HOLDERS THE WRITTEN CONSENT (IN FORM AND SUBSTANCE
SATISFACTORY TO THE HOLDERS OF 51% IN PRINCIPAL AMOUNT OF THE NOTES) OF SUCH NEW
AGENT AGREEING TO SERVE IN SUCH CAPACITY.

                                      A-42
<PAGE>   49

         Section 22.9. Waivers by the Company. THE COMPANY WAIVES (A) THE RIGHT
TO TRIAL BY JURY (WHICH EACH HOLDER OF NOTES HEREBY ALSO WAIVES) IN ANY ACTION,
SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO THIS
AGREEMENT, ANY SECURITY DOCUMENT OR THE NOTES; (B) PRESENTMENT, DEMAND AND
PROTEST AND NOTICE OF PRESENTMENT, PROTEST, DEFAULT, NON-PAYMENT, INTENT TO
ACCELERATE, ACCELERATION, MATURITY, RELEASE, COMPROMISE, SETTLEMENT, EXTENSION
OR RENEWAL OF ANY OR ALL DOCUMENTS, INSTRUMENTS, AND GUARANTIES AT ANY TIME HELD
BY THE HOLDERS OF NOTES (OR ANY AGENT THEREFOR) ON WHICH THE COMPANY MAY IN ANY
WAY BE LIABLE AND HEREBY RATIFIES AND CONFIRMS WHATEVER THE HOLDERS OF NOTES MAY
DO IN THIS REGARD; AND (C) NOTICE OF ACCEPTANCE HEREOF. THE COMPANY ACKNOWLEDGES
THAT THE FOREGOING WAIVERS ARE A MATERIAL INDUCEMENT TO THE HOLDERS' ENTERING
INTO THIS AGREEMENT AND THAT THE HOLDERS ARE RELYING UPON THE FOREGOING WAIVERS
IN THEIR FUTURE DEALINGS WITH THE COMPANY. THE COMPANY WARRANTS AND REPRESENTS
THAT IT HAS REVIEWED THE FOREGOING WAIVERS WITH ITS LEGAL COUNSEL AND HAS
KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

                                    * * * * *

                                      A-43
<PAGE>   50

         The execution hereof by the Purchasers shall constitute a contract
among the Company and the Purchasers for the uses and purposes hereinabove set
forth. This Agreement may be executed in any number of counterparts, each
executed counterpart constituting an original but all together only one
agreement.

                                        Very truly yours,

                                        QUANTA SERVICES, INC.

                                        By

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

                                      A-44
<PAGE>   51

Accepted as of the first date written above.

                                        [VARIATION]

                                        By

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

                                      A-45
<PAGE>   52

                                  DEFINED TERMS

         As used herein, the following terms have the respective meanings set
forth below or set forth in the Section hereof following such term:

         "Additional Notes" is defined in Section 2.4.

         "Additional Purchasers" means purchasers of Additional Notes.

         "Affiliate" means, at any time, and with respect to any Person, (a) any
other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, and (b) any Person beneficially owning or holding, directly
or indirectly, 10% or more of any class of equity interests of the Company or
any Subsidiary or any corporation of which the Company and its Subsidiaries
beneficially own or hold, in the aggregate, directly or indirectly, 10% or more
of any class of equity interests. As used in this definition, "Control" means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. Unless the context
otherwise clearly requires, any reference to an "Affiliate" is a reference to an
Affiliate of the Company, provided, however, that Enron Capital & Trade
Resources Corp., Joint Energy Development Investment II Limited Partnership and
Utilicorp United, Inc. and their respective Affiliates shall not be deemed to be
Affiliates of the Company. The ownership of Designated Subordinated Debt shall
not be considered for purposes of determining whether any Person is an Affiliate
for purposes of this Agreement.

         "Bank Credit Agreement" means the Third Amended and Restated Secured
Credit Agreement between the Company and its Bank Lenders, dated as of June 14,
1999, as amended, restated, refinanced, replaced, increased or reduced from time
to time, and any successor bank credit agreement.

         "Bank Lenders" means the banks or other lenders which are from time to
time party to the Bank Credit Agreement.

         "Business Day" means (a) for the purposes of Section 8.6 only, any day
other than a Saturday, a Sunday or a day on which commercial banks in New York
City are required or authorized to be closed, and (b) for the purposes of any
other provision of this Agreement, any day other than a Saturday, a Sunday or a
day on which commercial banks in Houston, Texas or New York, New York are
required or authorized to be closed.

         "Capital Lease" means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

         "Capital Lease Obligation" means, with respect to any Person and a
Capital Lease, the amount of the obligation of such Person as the lessee under
such Capital Lease which would, in accordance with GAAP, appear as a liability
on a balance sheet of such Person.

                                   SCHEDULE B
                          (to Note Purchase Agreement)
<PAGE>   53

         "Change in Control" has the meaning set forth in Section 8.7.

         "Closing" is defined in Section 3.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time.

         "Collateral" means the personal property of the Company and the
Guarantors described in the Security Documents.

         "Collateral Agent" means NationsBank, N.A. d/b/a Bank of America, N.A.,
and any successor collateral agent appointed in accordance with the terms of the
Security Documents.

         "Collateral Release Event" shall have the meaning assigned thereto in
Section 2.3.

         "Company" means Quanta Services, Inc., a Delaware corporation.

         "Competitor" means any Person (including any subsidiary or affiliate
thereof) primarily engaged in contracting and maintenance services relating to
electric, utility, telecommunications or cable television infrastructure in
North America provided, however, that the term "Competitor" shall exclude any
Person which is an Institutional Investor and which, but for this provision
would fall within the definition of "Competitor" solely through holding passive
investments in a Competitor.

         "Confidential Information" is defined in Section 20.

         "Consolidated Debt" means, as of any date of determination, the total
of all Debt of the Company and its Subsidiaries outstanding on such date, after
eliminating all offsetting debits and credits between the Company and its
Subsidiaries and all other items required to be eliminated in the course of the
preparation of consolidated financial statements of the Company and its
Subsidiaries in accordance with GAAP.

         "Consolidated Debt Ratio" means, as of any date of determination, the
ratio of (a) Consolidated Debt as of such date of determination to (b)
Consolidated Proforma Operating Cash Flow for the period of four consecutive
fiscal quarters ending immediately preceding such date of determination. For
purposes of determining the Consolidated Debt Ratio, Consolidated Proforma
Operating Cash Flow shall include the historical financial results of any
"business", as defined in Regulation S-X (17 CFR 210), acquired during such
period of four consecutive fiscal quarters, calculated as if such business
entity had been acquired on the first day of such four quarter fiscal period (to
the extent such results are not already reflected in the consolidated financial
results of the Company and its Subsidiaries), and shall also give effect, on a
pro forma basis, to the incurrence of Debt in connection with the acquisition of
a business and the application of the proceeds thereof, including retirement of
any Debt of such business.

         "Consolidated Income Available for Interest Charges" means, with
respect to any period, Consolidated Net Income for such period plus all amounts
deducted in the computation thereof

                                      B-2
<PAGE>   54

on account of (a) all Interest Charges during such period, (b) all taxes imposed
on or measured by income or excess profits during such period, and (c) the total
amount of Management Fees expensed during such period.

         "Consolidated Net Income" means, with reference to any period, the net
income (or loss) of the Company and its Subsidiaries for such period (taken as a
cumulative whole), as determined in accordance with GAAP, after eliminating all
offsetting debits and credits between the Company and its Subsidiaries and all
other items required to be eliminated in the course of the preparation of
consolidated financial statements of the Company and its Subsidiaries in
accordance with GAAP.

         "Consolidated Net Worth" means the consolidated stockholders' equity of
the Company and its Subsidiaries, as determined in accordance with GAAP, less
the sum of (i) to the extent included in consolidated stockholders' equity, all
amounts properly attributable to minority interests, if any, and (ii) the
aggregate amount of all Restricted Investments in excess of 10% of such
consolidated stockholders' equity.

         "Consolidated Proforma Operating Cash Flow" means, in respect of any
period, the sum of (a) Consolidated Net Income for such period, plus (b) to the
extent deducted in the determination of Consolidated Net Income for such period,
(x) all Interest Charges during such period, (y) the total amount of expenses
for depreciation, amortization, income taxes, deferred items and other non-cash
expenses of the Company and its Subsidiaries during such period, and (z) the
total amount of Management Fees expensed during such period.

         "Consolidated Total Assets" means, as of any date of determination, the
total amount of all assets of the Company and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP.

         "Debt" means, with respect to any Person, without duplication,

                  (a) its liabilities for borrowed money and its redemption
         obligations in respect of mandatorily redeemable Preferred Stock which
         is redeemable prior to the maturity of any Note;

                  (b) its liabilities for the deferred purchase price of
         property acquired by such Person (excluding accounts payable and other
         accrued liabilities arising in the ordinary course of business but
         including, without limitation, all liabilities created or arising under
         any conditional sale or other title retention agreement with respect to
         any such property);

                  (c) its Capital Lease Obligations;

                  (d) all liabilities for borrowed money secured by any Lien
         with respect to any property owned by such Person (whether or not it
         has assumed or otherwise become liable for such liabilities); and

                                      B-3
<PAGE>   55

                  (e) Guarantees of such Person with respect to liabilities of a
         type described in any of clauses (a) through (d) hereof.

         Debt of any Person shall include all obligations of such Person of the
character described in clauses (a) through (e) to the extent such Person remains
legally liable in respect thereof notwithstanding that any such obligation is
deemed to be extinguished under GAAP.

         "Default" means an event or condition the occurrence or existence of
which would, with the lapse of time or the giving of notice or both, become an
Event of Default.

         "Default Rate" means for any Note that rate of interest that is the
greater of (i) 2% per annum above the rate of interest stated in clause (a) of
the first paragraph of such Note or (ii) 2% over the rate of interest publicly
announced by Bank of America, N.A. in New York, New York as its "base" or
"prime" rate.

         "Designated Subordinated Debt" shall mean the Enron Subordinated Debt
and any other Subordinated Debt of the Company or any Subsidiary which has been
designated as "Designated Subordinated Debt" in writing by at least 51% of the
outstanding Notes of each Series (voting as separate classes).

         "Domestic Subsidiary" means any Subsidiary organized under the laws of
the United States or any jurisdiction thereof.

         "Enron Subordinated Debt" shall mean the Convertible Subordinated Notes
issued by the Company pursuant to the Securities Purchase Agreement dated as of
September 29, 1998, among the Company, Enron Capital & Trade Resources Corp. and
Joint Energy Development Investments II Limited Partnership, as amended from
time to time.

         "Environmental Laws" means any and all federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including but
not limited to those related to hazardous substances or wastes, air emissions
and discharges to waste or public systems.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the rules and regulations promulgated thereunder
from time to time in effect.

         "ERISA Affiliate" means any trade or business (whether or not
incorporated) that is treated as a single employer together with the Company
under Section 414 of the Code.

         "Event of Default" is defined in Section 11.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

                                      B-4
<PAGE>   56

         "Excluded Sale and Leaseback Transaction" shall mean any sale or
transfer of property acquired by the Company or any Subsidiary after the date of
this Agreement to any Person within 180 days following the acquisition or
construction of such property by the Company or any Subsidiary if the Company or
a Subsidiary shall concurrently with such sale or transfer, lease such property,
as lessee.

         "Excluded Subsidiary Obligations" means (a) the Guaranty Agreement and
any other Guaranty of Debt of the Company by a Guarantor which shall be a party
to the Guaranty Agreement and (b) obligations of Guarantors as co-obligors with,
or guarantors of, the Company on Debt; provided that each creditor which is a
beneficiary of an Excluded Subsidiary Obligation shall have become a party to
either (i) the Intercreditor Agreement or (ii) an intercreditor agreement
between such beneficiary and the holders of Notes pursuant to which the parties
have agreed to be treated on a pari passu basis with respect to any recovery on
such obligation.

         "Fair Market Value" means, at any time and with respect to any
property, the sale value of such property that would be realized in an
arm's-length sale at such time between an informed and willing buyer and an
informed and willing seller (neither being under a compulsion to buy or sell),
as reasonably determined in the good faith opinion of the Company's board of
directors.

         "GAAP" means generally accepted accounting principles as in effect from
time to time in the United States of America.

         "Governmental Authority" means

                  (a) the government of

                           (i) the United States of America or any state or
                  other political subdivision thereof, or

                           (ii) any jurisdiction in which the Company or any
                  Subsidiary conducts all or any part of its business, or which
                  has jurisdiction over any properties of the Company or any
                  Subsidiary, or

                  (b) any entity exercising executive, legislative, judicial,
         regulatory or administrative functions of, or pertaining to, any such
         government.

         "Guarantor" shall mean those certain Subsidiaries of the Company which
shall be a party to a Guaranty Agreement.

         "Guaranty" means, with respect to any Person, any obligation (except
the endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
Debt, dividend or other obligation of any other Person in any manner, whether
directly or indirectly, including (without limitation) obligations incurred
through an agreement, contingent or otherwise, by such Person:

                                      B-5
<PAGE>   57

                  (a) to purchase such Debt or obligation or any property
         constituting security therefor primarily for the purpose of assuring
         the owner of such Debt or obligation of the ability of any other Person
         to make payment of the Debt or obligation;

                  (b) to advance or supply funds (i) for the purchase or payment
         of such Debt or obligation, or (ii) to maintain any working capital or
         other balance sheet condition or any income statement condition of any
         other Person or otherwise to advance or make available funds for the
         purchase or payment of such Debt or obligation;

                  (c) to lease properties or to purchase properties or services
         primarily for the purpose of assuring the owner of such Debt or
         obligation of the ability of any other Person to make payment of the
         Debt or obligation; or

                  (d) otherwise to assure the owner of such Debt or obligation
         against loss in respect thereof.

In any computation of the Debt or other liabilities of the obligor under any
Guaranty, the Debt or other obligations that are the subject of such Guaranty
shall be assumed to be direct obligations of such obligor, provided that the
amount of such Debt outstanding for purposes of this Agreement shall not be
exceed the maximum amount of Debt that is the subject of such Guaranty.

         "Guaranty Agreement" is defined in Section 2.2.

         "Guaranty Release Event" shall have the meaning assigned thereto in
Section 2.2.

         "Hazardous Material" means any and all pollutants, toxic or hazardous
wastes or any other substances that might pose a hazard to health or safety, the
removal of which may be required or the generation, manufacture, refining,
production, processing, treatment, storage, handling, transportation, transfer,
use, disposal, release, discharge, spillage, seepage, or filtration of which is
or shall be restricted, prohibited or penalized by any applicable law
(including, without limitation, asbestos, urea formaldehyde foam insulation and
polychlorinated biphenyls).

         "holder" means, with respect to any Note, the Person in whose name such
Note is registered in the register maintained by the Company pursuant to Section
13.1.

         "Institutional Investor" means (a) any original purchaser of a Note,
(b) any holder of more than $2,000,000 of the aggregate principal amount of the
Notes then outstanding, and (c) any bank, trust company, savings and loan
association or other financial institution, any pension plan, any investment
company, any insurance company, any broker or dealer, or any other similar
financial institution or entity, regardless of legal form.

         "Intercreditor Agreement" is defined in Section 2.3.

         "Interest Charges" means, with respect to any period, the sum (without
duplication) of the following (in each case, eliminating all offsetting debits
and credits between the Company

                                      B-6
<PAGE>   58

and its Subsidiaries and all other items required to be eliminated in the course
of the preparation of consolidated financial statements of the Company and its
Subsidiaries in accordance with GAAP): (a) all interest in respect of Debt of
the Company and its Subsidiaries (including imputed interest on Capital Lease
Obligations) deducted in determining Consolidated Net Income for such period,
and (b) all debt discount and expense amortized or required to be amortized in
the determination of Consolidated Net Income for such period.

         "Interest Charges Coverage Ratio" means, at any time, the ratio of (a)
Consolidated Income Available for Interest Charges for the period of four
consecutive fiscal quarters ending on, or most recently ended prior to, such
time to (b) the sum of (i) all Interest Charges during such period, (ii) the
total amount of the Management Fees paid during such period, and (iii) the total
amount of any dividends or distributions paid or scheduled to be paid in respect
of the Utilicorp Preferred Stock during such period.

         "Investments" shall mean all investments, in cash or by delivery of
property made, directly or indirectly in any Person, whether by acquisition of
shares of capital stock, indebtedness or other obligations or securities or by
loan, advance, capital contribution or otherwise.

         "Lien" means, with respect to any Person, any mortgage, lien, pledge,
charge, security interest or other encumbrance, or any interest or title of any
vendor, lessor, lender or other secured party to or of such Person under any
conditional sale or other title retention agreement or Capital Lease, upon or
with respect to any property or asset of such Person.

         "Make-Whole Amount" shall have the meaning (i) set forth in Section 8.6
with respect to any Series 2000-A Note and (ii) set forth in the applicable
Supplement with respect to any other Series of Notes.

         "Management Fee" means the management fee due from the Company to
Utilicorp under the terms of the management services agreement between the
Company and Utilicorp under which Utilicorp will provide to the Company advice
regarding (a) corporate and strategic planning, (b) development, evaluation and
marketing of the Company's products and services, (c) potential acquisition
candidates and business opportunities and (d) other similar and related
services.

         "Material" means material in relation to the business, operations,
affairs, financial condition, assets or properties of the Company and its
Subsidiaries taken as a whole.

         "Material Adverse Effect" means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets or properties of the
Company and its Subsidiaries taken as a whole, or (b) the ability of the Company
to perform its obligations under this Agreement (including any Supplement) and
the Notes, or (c) the validity or enforceability of this Agreement (including
any Supplement) or the Notes.

         "Memorandum" is defined in Section 5.3.

                                      B-7
<PAGE>   59

         "Multiemployer Plan" means any Plan that is a "multiemployer plan" (as
such term is defined in Section 4001(a)(3) of ERISA).

         "Notes" is defined in Section 1.

         "Officer's Certificate" means a certificate of a Senior Financial
Officer or of any other officer of the Company whose responsibilities extend to
the subject matter of such certificate.

         "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto.

         "Person" means an individual, partnership, corporation, limited
liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof.

         "Plan" means an "employee benefit plan" (as defined in Section 3(3) of
ERISA) that is or, within the preceding five years, has been established or
maintained, or to which contributions are or, within the preceding five years,
have been made or required to be made, by the Company or any ERISA Affiliate or
with respect to which the Company or any ERISA Affiliate may have any liability.

         "Pledged Stock" means the capital stock of the Subsidiaries of the
Company pledged pursuant to the Security Documents.

         "Preferred Stock" means any class of capital stock of a corporation
that is preferred over any other class of capital stock of such corporation as
to the payment of dividends or the payment of any amount upon liquidation or
dissolution of such corporation.

         "Priority Debt" means, without duplication, the sum of (a) all Debt of
the Company or its Subsidiaries secured by a Lien other than Liens permitted by
paragraphs (a) through (k) of Section 10.5 and (b) all unsecured Debt of
Subsidiaries other than (i) Debt owed to the Company or any other Subsidiary and
(ii) unsecured Debt of a Subsidiary existing on the date hereof and listed on
Schedule 5.15 and (iii) Excluded Subsidiary Obligations.

         "property" or "properties" means, unless otherwise specifically
limited, real or personal property of any kind, tangible or intangible, choate
or inchoate.

         "Purchasers" means the purchasers of the Series 2000-A Notes named in
Schedule A hereto.

         "QPAM Exemption" means Prohibited Transaction Class Exemption 84-14
issued by the United States Department of Labor.

         "Required Holders" means, at any time, the holders of at least 51% in
principal amount of the Notes at the time outstanding (exclusive of Notes then
owned by the Company or any of its Affiliates).

                                      B-8
<PAGE>   60

         "Responsible Officer" means any Senior Financial Officer and any other
officer of the Company with responsibility for the administration of the
relevant portion of this Agreement.

         "Restricted Investments" shall mean all Investments except any of the
following: (i) property to be used in the ordinary course of business; (ii)
assets arising from the sale of goods and services in the ordinary course of
business; (iii) Investments in one or more Subsidiaries or any Person that
becomes a Subsidiary; (iv) Investments existing at the date of Closing and
reflected in Schedule 5.4; (v) Investments in obligations, maturing within one
year, issued by or guaranteed by the United Sates of America, or an agency
thereof, or Canada, or any province thereof; (vi) Investments in tax-exempt
obligations, maturing within one year, which are rated in one of the top two
rating classifications by at least one national rating agency; (vii) Investments
in bank deposits, certificates of deposit or banker's acceptances maturing
within one year issued by a commercial bank which is rated in one of the top two
rating classifications by at least one national rating agency; (viii)
Investments in commercial paper, maturing within 270 days, rated in one of the
top two rating classifications by at least one national rating agency; (ix)
Investments in repurchase agreements; (x) treasury stock; (xi) Investments in
money market instrument programs which are classified as current assets in
accordance with GAAP; (xii) Investments constituting loans and advances to
employees in the ordinary course of business not exceeding $5,000,000 in the
aggregate; (xiii) Investments received in settlement of litigation or
bankruptcy; (xiv) swap agreements, cap agreements, collar agreements, forward
contracts, options and other similar hedging agreements and arrangements
designed to protect against fluctuations in interest rate and currency exchange
rates which are entered into by the Company and its Subsidiaries in the ordinary
course of business and not as a speculative investment; (xv) prepaid expenses in
the ordinary course of business; and (xvi) deposits for leases, utility services
and workers compensation and similar deposits made in the ordinary course of
business.

         "Securities Act" means the Securities Act of 1933, as amended from time
to time.

         "Security Documents" means (i) the separate security agreements among
the Collateral Agent and the Company and the Guarantors, (ii) the separate
pledge agreements among the Collateral Agent and the Company and certain
Guarantors, and (iii) the patent collateral assignment between the Collateral
Agent and a Guarantor, whether in existence on the date hereof or hereafter
entered into, in each case as supplemented, amended, modified, renewed and
replaced.

         "Senior Financial Officer" means the chief financial officer, principal
accounting officer, treasurer or comptroller of the Company.

         "Senior Debt" means, as of the date of any determination thereof, all
Consolidated Debt, other than Subordinated Debt.

         "Series" means any series of Notes issued pursuant to this Agreement or
any Supplement hereto.

                                      B-9
<PAGE>   61

         "Significant Subsidiary" means, at any time, any Subsidiary that
accounts for more than (i) 5% of the consolidated assets of the Company and its
Subsidiaries or (ii) 5% of consolidated revenue of the Company and its
Subsidiaries.

         "Significant Subsidiary" shall also mean any two or more Subsidiaries
which in the aggregate account for more than (i) 5% of the consolidated assets
of the Company and its Subsidiaries or (ii) 5% of consolidated revenue of the
Company and its Subsidiaries.

         "Subordinated Debt" means, as of the date of any determination thereof,
the Enron Subordinated Debt and all other unsecured Debt of the Company which
shall contain or have applicable thereto subordination provisions providing for
the subordination thereof to other Debt of the Company (including, without
limitation, the Notes).

         "Subsidiary" means, as to any Person, any corporation, association or
other business entity in which such Person or one or more of its Subsidiaries or
such Person and one or more of its Subsidiaries owns sufficient equity or voting
interests to enable it or them (as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership or joint venture if more
than a 50% interest in the profits or capital thereof is owned by such Person or
one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries (unless such partnership can and does ordinarily take major
business actions without the prior approval of such Person or one or more of its
Subsidiaries). Unless the context otherwise clearly requires, any reference to a
"Subsidiary" is a reference to a Subsidiary of the Company.

         "Supplement" shall have the meaning assigned thereto in Section 2.4.

         "Utilicorp" means Utilicorp United, Inc., a Delaware corporation.

         "Utilicorp Preferred Stock" means the perpetual preferred stock issued
by the Company to Utilicorp which (a) has a dividend at a 0.5% annual coupon
rate payable for six (6) years after the date of issuance, (b) is convertible
into common stock of the Company at the option of Utilicorp at a conversion
price which is fixed (or the method of its determination is fixed) on the date
issued, (c) is not subject to voluntary redemption by the Company or mandatory
redemption by the Company at the request of Utilicorp, (d) participates with the
Company's common stock in permitted distributions, (e) has voting rights equal
to the number of shares into which it could be converted as of the applicable
record date, (f) has preemptive rights to maintain its proportionate equity
ownership in the Company, and (g) gives the Company the option to pay, defer, or
pay in kind any scheduled dividend.

         "Wholly-Owned Subsidiary" means, at any time, any Subsidiary one
hundred percent (100%) of all of the equity interests (except directors'
qualifying shares) and voting interests of which are owned by any one or more of
the Company and the Company's other Wholly-Owned Subsidiaries at such time.

                                      B-10
<PAGE>   62

                            [FORM OF TRANCHE 1 NOTE]

                              QUANTA SERVICES, INC.

      8.46% SERIES 2000-A SENIOR SECURED NOTE, TRANCHE 1, DUE MARCH 1, 2005

No.  [______]                                                             [Date]
$[__________]                                                    PPN [_________]

         FOR VALUE RECEIVED, the undersigned, QUANTA SERVICES, INC. (herein
called the "Company"), a corporation organized and existing under the laws of
the State of Delaware, hereby promises to pay to [_____________________] or
registered assigns, the principal sum of [______________] DOLLARS on March 1,
2005 with interest (computed on the basis of a 360-day year of twelve 30-day
months) (a) on the unpaid balance thereof at the rate of 8.46% per annum from
the date hereof, payable semi-annually, on the fifteenth day of January and July
in each year and at maturity, commencing with the January or July next
succeeding the date hereof, until the principal hereof shall have become due and
payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreement referred to below), payable semi-annually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 10.46% or (ii) 2% over the rate of
interest publicly announced by Bank of America, N.A. from time to time in New
York, New York as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of Bank of America, N.A. in New York, New York
or at such other place as the Company shall have designated by written notice to
the holder of this Note as provided in the Note Purchase Agreement referred to
below.

         This Note is one of a series of Senior Secured Notes (herein called the
"Notes") issued pursuant to the Note Purchase Agreement, dated as of March 1,
2000 (as from time to time amended, supplemented or modified, the "Note Purchase
Agreement"), between the Company and the respective Purchasers named therein and
is entitled to the benefits thereof. Each holder of this Note will be deemed, by
its acceptance hereof, (i) to have agreed to the confidentiality provisions set
forth in Section 20 of the Note Purchase Agreement and (ii) to have made the
representation set forth in Section 6.2 of the Note Purchase Agreement.

         This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

                                  EXHIBIT 1(a)

                          (to Note Purchase Agreement)

<PAGE>   63

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreement. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreement, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreement,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreement.

         Pursuant to the Guaranty Agreement dated as of March 1, 2000, certain
subsidiaries of the Company have absolutely and unconditionally guaranteed
payment in full of the principal of, Make-Whole Amount if any, and interest on
this Note and the performance by the Company of all of its obligations contained
in the Note Purchase Agreement all as more fully set forth in said Guaranty
Agreement.

         This Note shall be construed and enforced in accordance with, and the
rights of the issuer and holder hereof shall be governed by, the law of the
State of New York excluding choice-of-law principles of the law of such State
that would require the application of the laws of a jurisdiction other than such
State.

                                        QUANTA SERVICES, INC.

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

                                    E-1(a)-2

<PAGE>   64

                            [FORM OF TRANCHE 2 NOTE]

                              QUANTA SERVICES, INC.

      8.55% SERIES 2000-A SENIOR SECURED NOTE, TRANCHE 2, DUE MARCH 1, 2007

No.  [______]                                                             [Date]
$[__________]                                                    PPN [_________]

         FOR VALUE RECEIVED, the undersigned, QUANTA SERVICES, INC. (herein
called the "Company"), a corporation organized and existing under the laws of
the State of Delaware, hereby promises to pay to [_____________________] or
registered assigns, the principal sum of [______________] DOLLARS on March 1,
2007 with interest (computed on the basis of a 360-day year of twelve 30-day
months) (a) on the unpaid balance thereof at the rate of 8.55% per annum from
the date hereof, payable semi-annually, on the fifteenth day of January and July
in each year and at maturity, commencing with the January or July next
succeeding the date hereof, until the principal hereof shall have become due and
payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreement referred to below), payable semi-annually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 10.55% or (ii) 2% over the rate of
interest publicly announced by Bank of America, N.A. from time to time in New
York, New York as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of Bank of America, N.A. in New York, New York
or at such other place as the Company shall have designated by written notice to
the holder of this Note as provided in the Note Purchase Agreement referred to
below.

         This Note is one of a series of Senior Secured Notes (herein called the
"Notes") issued pursuant to the Note Purchase Agreement, dated as of March 1,
2000 (as from time to time amended, supplemented or modified, the "Note Purchase
Agreement"), between the Company and the respective Purchasers named therein and
is entitled to the benefits thereof. Each holder of this Note will be deemed, by
its acceptance hereof, (i) to have agreed to the confidentiality provisions set
forth in Section 20 of the Note Purchase Agreement and (ii) to have made the
representation set forth in Section 6.2 of the Note Purchase Agreement.

         This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

                                  EXHIBIT 1(b)
                          (to Note Purchase Agreement)

<PAGE>   65

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreement. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreement, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreement,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreement.

         Pursuant to the Guaranty Agreement dated as of March 1, 2000, certain
subsidiaries of the Company have absolutely and unconditionally guaranteed
payment in full of the principal of, Make-Whole Amount if any, and interest on
this Note and the performance by the Company of all of its obligations contained
in the Note Purchase Agreement all as more fully set forth in said Guaranty
Agreement.

         This Note shall be construed and enforced in accordance with, and the
rights of the issuer and holder hereof shall be governed by, the law of the
State of New York excluding choice-of-law principles of the law of such State
that would require the application of the laws of a jurisdiction other than such
State.

                                        QUANTA SERVICES, INC.

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

                                    E-1(b)-2

<PAGE>   66

                            [FORM OF TRANCHE 3 NOTE]

                              QUANTA SERVICES, INC.

      8.61% SERIES 2000-A SENIOR SECURED NOTE, TRANCHE 3, DUE MARCH 1, 2010

No.  [______]                                                             [Date]
$[__________]                                                    PPN [_________]

         FOR VALUE RECEIVED, the undersigned, QUANTA SERVICES, INC. (herein
called the "Company"), a corporation organized and existing under the laws of
the State of Delaware, hereby promises to pay to [_____________________] or
registered assigns, the principal sum of [______________] DOLLARS on March 1,
2010 with interest (computed on the basis of a 360-day year of twelve 30-day
months) (a) on the unpaid balance thereof at the rate of 8.61% per annum from
the date hereof, payable semi-annually, on the fifteenth day of January and July
in each year and at maturity, commencing with the January or July next
succeeding the date hereof, until the principal hereof shall have become due and
payable, and (b) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreement referred to below), payable semi-annually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 10.61% or (ii) 2% over the rate of
interest publicly announced by Bank of America, N.A. from time to time in New
York, New York as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of Bank of America, N.A. in New York, New York
or at such other place as the Company shall have designated by written notice to
the holder of this Note as provided in the Note Purchase Agreement referred to
below.

         This Note is one of a series of Senior Secured Notes (herein called the
"Notes") issued pursuant to the Note Purchase Agreement, dated as of March 1,
2000 (as from time to time amended, supplemented or modified, the "Note Purchase
Agreement"), between the Company and the respective Purchasers named therein and
is entitled to the benefits thereof. Each holder of this Note will be deemed, by
its acceptance hereof, (i) to have agreed to the confidentiality provisions set
forth in Section 20 of the Note Purchase Agreement and (ii) to have made the
representation set forth in Section 6.2 of the Note Purchase Agreement.

         This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

                                  EXHIBIT 1(c)
                          (to Note Purchase Agreement)
<PAGE>   67

         The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreement. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreement, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreement,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreement.

         Pursuant to the Guaranty Agreement dated as of March 1, 2000, certain
subsidiaries of the Company have absolutely and unconditionally guaranteed
payment in full of the principal of, Make-Whole Amount if any, and interest on
this Note and the performance by the Company of all of its obligations contained
in the Note Purchase Agreement all as more fully set forth in said Guaranty
Agreement.

         This Note shall be construed and enforced in accordance with, and the
rights of the issuer and holder hereof shall be governed by, the law of the
State of New York excluding choice-of-law principles of the law of such State
that would require the application of the laws of a jurisdiction other than such
State.

                                        QUANTA SERVICES, INC.

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

                                    E-1(c)-2

<PAGE>   68

                       FORM OF OPINION OF GENERAL COUNSEL

                                 TO THE COMPANY

         The closing opinion of Brad Eastman, General Counsel to the Company,
which is called for by Section 4.11 of the Note Purchase Agreement, shall be
dated the date of Closing and addressed to the Purchasers, shall be satisfactory
in scope and form to each Purchaser and shall be to the effect that:

         1. The Company is a corporation, duly incorporated, validly existing
and in good standing under the laws of its jurisdiction of incorporation, has
the corporate power and the corporate authority to execute and perform the Note
Purchase Agreement and the Security Documents to which the Company is a party
and to issue the Notes and has the full corporate power and the corporate
authority to conduct the activities in which it is now engaged and is duly
licensed or qualified and is in good standing as a foreign corporation in each
jurisdiction in which the character of the properties owned or leased by it or
the nature of the business transacted by it makes such licensing or
qualification necessary except in jurisdictions where the failure to be so
qualified or licensed would not have a material adverse effect on the business
of the Company.

         2. Each Subsidiary is a corporation duly organized, validly existing
and in good standing under the laws of its jurisdiction of incorporation, has
the corporate power and the corporate authority to execute and perform the
Guaranty Agreement and the Security Documents to which such Subsidiary is a
party and is duly licensed or qualified and is in good standing in each
jurisdiction in which the character of the properties owned or leased by it or
the nature of the business transacted by it makes such licensing or
qualification necessary except in jurisdictions where the failure to be so
qualified or licensed would not have a material adverse effect on the business
of such Subsidiary. All of the issued and outstanding shares of capital stock of
each such Subsidiary have been duly issued, are fully paid and non-assessable
and are owned by the Company, by one or more Subsidiaries, or by the Company and
one or more Subsidiaries. All such outstanding shares have been duly pledged to
the Collateral Agent as security for the Notes under the Pledge Agreements.

         3. The Note Purchase Agreement has been duly authorized by all
necessary corporate action on the part of the Company, has been duly executed
and delivered by the Company and constitutes the legal, valid and binding
contract of the Company enforceable in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
creditors' rights generally, and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in
equity or at law).

         4. The Series 2000-A Notes have been duly authorized by all necessary
corporate action on the part of the Company, have been duly executed and
delivered by the Company and constitute the legal, valid and binding obligations
of the Company enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
creditors' rights generally, and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in
equity or at law).

                                 EXHIBIT 4.11(a)
                          (to Note Purchase Agreement)

<PAGE>   69

         5. The Guaranty Agreement has been duly authorized by all necessary
corporate action on the part of the Guarantors, has been duly executed and
delivered by the Guarantors and constitutes the legal, valid and binding
contract of the Guarantors enforceable in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
creditors' rights generally, and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in
equity or at law).

         6. Each of the Security Documents has been duly authorized by all
necessary corporate action on the part of the respective obligor thereunder, has
been duly executed and delivered by the respective obligor thereunder and
constitutes the legal, valid and binding contract of the respective obligor
thereunder enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent conveyance and similar laws affecting creditors' rights
generally, and general principles of equity (regardless of whether the
application of such principles is considered in a proceeding in equity or at
law).

         7. The issuance and sale of the Series 2000-A Notes and the execution,
delivery and performance by the Company of the Note Purchase Agreement and the
Security Documents to which it is a party do not violate any provision of any
law or other rule or regulation of any Governmental Authority applicable to the
Company or conflict with or result in any breach of any of the provisions of or
constitute a default under or result in the creation or imposition of any Lien
upon any of the property of the Company pursuant to the provisions of the
Articles of Incorporation or By-laws of the Company or any agreement or other
instrument known to such counsel to which the Company is a party or by which the
Company may be bound.

         8. The execution, delivery and performance by each of the Guarantors of
the Guaranty Agreement and the Security Documents to which such Guarantor is a
party do not violate any provision of any law or other rule or regulation of any
Governmental Authority applicable to the Company or conflict with or result in
any breach of any of the provisions of or constitute a default under or result
in the creation or imposition of any Lien upon any of the property of such
Guarantor pursuant to the provisions of the Articles of Incorporation or By-laws
of such Guarantor or any agreement or other instrument known to such counsel to
which such Guarantor is a party or by which such Guarantor may be bound.

         9. There are no actions, suits or proceedings pending or, to the
knowledge of such counsel after due inquiry, threatened against or affecting the
Company or any Subsidiary in any court or before any governmental authority or
arbitration board or tribunal which, if adversely determined, would have a
materially adverse effect on the properties, business, prospects, profits or
condition, (financial or otherwise) of the Company and its Subsidiaries or the
ability of the Company to perform its obligations under the Note Purchase
Agreement, the Series 2000-A Notes and the Security Documents or on the
legality, validity or enforceability of the Company's obligations under the Note
Purchase Agreement, the Series 2000-A Notes, or the Security Documents. To the
knowledge of such counsel, neither the Company nor any Subsidiary is in default
with respect to any court or governmental authority, or arbitration board or
tribunal. The opinion of Brad Eastman, Esq., shall cover such other matters
relating to the sale of the Series 2000-A Notes as each Purchaser may reasonably
request. With respect to matters of fact on which such opinion is based, such
counsel shall be entitled to rely on appropriate certificates of public
officials and other officers of the Company.

                                EXHIBIT 4.11(a)-2

<PAGE>   70

                       FORM OF OPINION OF SPECIAL COUNSEL

                                 TO THE COMPANY

         The closing opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P.,
Special Counsel to the Company, which is called for by Section 4.11 of the Note
Purchase Agreement, shall be dated the date of Closing and addressed to the
Purchasers, shall be satisfactory in scope and form to each Purchaser and shall
be to the effect that:

         1. The Company is a corporation, duly incorporated, validly existing
and in good standing under the laws of its jurisdiction of incorporation, has
the corporate power and the corporate authority to execute and perform the Note
Purchase Agreement and to issue the Notes and has the full corporate power and
the corporate authority to conduct the activities in which it is now engaged.

         2. The Note Purchase Agreement constitutes the legal, valid and binding
contract of the Company enforceable in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
creditors' rights generally, and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in
equity or at law).

         3. The Series 2000-A Notes constitute the legal, valid and binding
obligations of the Company enforceable in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
creditors' rights generally, and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in
equity or at law).

         4. The Guaranty Agreement constitutes the legal, valid and binding
contract of the Guarantors enforceable in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
creditors' rights generally, and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in
equity or at law).

         5. Each of the Security Documents constitutes the legal, valid and
binding contract of the respective obligor thereunder enforceable in accordance
with its terms, subject to bankruptcy, insolvency, fraudulent conveyance and
similar laws affecting creditors' rights generally, and general principles of
equity (regardless of whether the application of such principles is considered
in a proceeding in equity or at law).

         6. Other than financing statements which have been filed, no approval,
consent or withholding of objection on the part of, or filing, registration or
qualification with, any governmental body, Federal or state, is necessary in
connection with the execution and delivery of the Note Purchase Agreement, the
Series 2000-A Notes, the Security Documents or the Guaranty Agreement.

                                 EXHIBIT 4.11(b)
                          (to Note Purchase Agreement)
<PAGE>   71

         7. The issuance, sale and delivery of the Series 2000-A Notes and the
execution and delivery of the Security Documents and the Guaranty Agreement
under the circumstances contemplated by the Note Purchase Agreement do not,
under existing law, require the registration of the Series 2000-A Notes, the
Security Documents or the Guaranty Agreement under the Securities Act of 1933,
as amended, or the qualification of an indenture under the Trust Indenture Act
of 1939, as amended.

         8. Neither the issuance of the Series 2000-A Notes nor the application
of the proceeds of the sale of the Notes will violate or result in a violation
of Section 7 of the Securities Exchange Act of 1934, as amended, or any
regulation issued pursuant thereto, including, without limitation, Regulation T,
U or X of the Board of Governors of the Federal Reserve System.

         9. The Company is not an "investment company" or a company "controlled"
by an "investment company", within the meaning of the Investment Company Act of
1940, as amended.

         The opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P., shall cover
such other matters relating to the sale of the Series 2000-A Notes as each
Purchaser may reasonably request. With respect to matters of fact on which such
opinion is based, such counsel shall be entitled to rely on appropriate
certificates of public officials and other officers of the Company.

                                EXHIBIT 4.11(b)-2
<PAGE>   72

                       FORM OF OPINION OF SPECIAL COUNSEL

                                TO THE PURCHASERS

         The closing opinion of Chapman and Cutler, special counsel to the
Purchasers, called for by Section 4.11 of the Note Purchase Agreement, shall be
dated the date of Closing and addressed to each Purchaser, shall be satisfactory
in form and substance to each Purchaser and shall be to the effect that:

         1. The Company is a corporation, validly existing and in good standing
under the laws of its jurisdiction of incorporation and has the corporate power
and the corporate authority to execute and deliver the Note Purchase Agreement
and to issue the Series 2000-A Notes.

         2. The Note Purchase Agreement has been duly authorized by all
necessary corporate action on the part of the Company, has been duly executed
and delivered by the Company and constitutes the legal, valid and binding
contract of the Company enforceable in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
creditors' rights generally, and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in
equity or at law).

         3. The Series 2000-A Notes have been duly authorized by all necessary
corporate action on the part of the Company, and the Notes being delivered on
the date hereof have been duly executed and delivered by the Company and
constitute the legal, valid and binding obligations of the Company enforceable
in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
conveyance and similar laws affecting creditors' rights generally, and general
principles of equity (regardless of whether the application of such principles
is considered in a proceeding in equity or at law).

         4. The issuance, sale and delivery of the Series 2000-A Notes under the
circumstances contemplated by the Note Purchase Agreement do not, under existing
law, require the registration of the Series 2000-A Notes under the Securities
Act of 1933, as amended, or the qualification of an indenture under the Trust
Indenture Act of 1939, as amended.

         The opinion of Chapman and Cutler shall also state that the opinions of
Brad Eastman, Esq., general counsel to the Company, and Akin, Gump, Strauss,
Hauer & Field, LLP, special Counsel to the Company, are satisfactory in scope
and form to Chapman and Cutler and that, in their opinion, the Purchasers are
justified in relying thereon. With respect to matters of fact upon which such
opinion is based, Chapman and Cutler may rely on appropriate certificates of
public officials and officers of the Company and upon representations of the
Company and the Purchasers delivered in connection with the issuance and sale of
the Series 2000-A Notes.

                                EXHIBIT 4.11(c)-1

<PAGE>   73

         In rendering the opinion set forth in paragraph 1 above, Chapman and
Cutler may rely, as to matters referred to in paragraph 1, solely upon an
examination of the Articles of Incorporation certified by, and a certificate of
good standing of the Company from, the Secretary of State of the State of
Delaware, the Bylaws of the Company and the general business corporation law of
the State of Delaware. The opinion of Chapman and Cutler is limited to the laws
of the State of New York, the general business corporation law of the State of
Delaware and the Federal laws of the United States.

                                EXHIBIT 4.11(c)-2

<PAGE>   74

================================================================================

                              QUANTA SERVICES, INC.

                 [NUMBER] SUPPLEMENT TO NOTE PURCHASE AGREEMENT

                       Dated as of ______________________

         Re:     $____________ _____% Series _______ Senior Secured Notes
                            DUE _____________________

================================================================================

                                    EXHIBIT S
                          (to Note Purchase Agreement)

<PAGE>   75

                              QUANTA SERVICES, INC.
                       1360 Post Oak Boulevard, Suite 2100
                            Houston, Texas 77056-3023

                                                   Dated as of ___________, 20__

To the Purchaser(s) named in
Schedule A hereto

Ladies and Gentlemen:

         This [Number] Supplement to Note Purchase Agreement (the "Supplement")
is between QUANTA SERVICES, INC., a Delaware (the "Company"), and the
institutional investors named on Schedule A attached hereto (the "Purchasers").

         Reference is hereby made to that certain Note Purchase Agreement dated
as of March 1, 2000 (the "Note Purchase Agreement") between the Company and the
purchasers listed on Schedule A thereto. All capitalized terms not otherwise
defined herein shall have the same meaning as specified in the Note Purchase
Agreement. Reference is further made to Section 4.18 of the Note Purchase
Agreement which requires that, prior to the delivery of any Additional Notes,
the Company and each Additional Purchaser shall execute and deliver a
Supplement.

         The Company hereby agrees with the Purchaser(s) as follows:

         1. The Company has authorized the issue and sale of $__________
aggregate principal amount of its _____% Series ______ Senior Secured Notes due
_________, ____ (the "Series ______ Notes"). The Series ____ Notes, together
with the Series 2000-A Notes [and the Series ____ Notes] initially issued
pursuant to the Note Purchase Agreement and each series of Additional Notes
which may from time to time hereafter be issued pursuant to the provisions of
Section 2.4 of the Note Purchase Agreement, are collectively referred to as the
"Notes" (such term shall also include any such notes issued in substitution
therefor pursuant to Section 13 of the Note Purchase Agreement). The Series
_____ Notes shall be substantially in the form set out in Exhibit 1 hereto with
such changes therefrom, if any, as may be approved by the Purchaser(s) and the
Company.

         2. Subject to the terms and conditions hereof and as set forth in the
Note Purchase Agreement and on the basis of the representations and warranties
hereinafter set forth, the Company agrees to issue and sell to each Purchaser,
and each Purchaser agrees to purchase from the Company, Series _____ Notes in
the principal amount set forth opposite such Purchaser's name on Schedule A
hereto at a price of 100% of the principal amount thereof on the closing date
hereafter mentioned.

<PAGE>   76

         3. The sale and purchase of the Series ______ Notes to be purchased by
each Purchaser shall occur at the offices of [Chapman and Cutler, 111 West
Monroe Street, Chicago, Illinois 60603,] at 10:00 A.M. Chicago time, at a
closing (the "Closing") on ______, ____ or on such other Business Day thereafter
on or prior to _______, ____ as may be agreed upon by the Company and the
Purchasers. At the Closing, the Company will deliver to each Purchaser the
Series ______ Notes to be purchased by such Purchaser in the form of a single
Series ______ Note (or such greater number of Series ______ Notes in
denominations of at least $100,000 as such Purchaser may request) dated the date
of the Closing and registered in such Purchaser's name (or in the name of such
Purchaser's nominee), against delivery by such Purchaser to the Company or its
order of immediately available funds in the amount of the purchase price
therefor by wire transfer of immediately available funds for the account of the
Company to account number [__________________________] at ____________ Bank,
[Insert Bank address, ABA number for wire transfers, and any other relevant wire
transfer information]. If, at the Closing, the Company shall fail to tender such
Series ______ Notes to any Purchaser as provided above in this Section 3, or any
of the conditions specified in Section 4 shall not have been fulfilled to any
Purchaser's satisfaction, such Purchaser shall, at such Purchaser's election, be
relieved of all further obligations under this Agreement, without thereby
waiving any rights such Purchaser may have by reason of such failure or such
nonfulfillment.

         4. The obligation of each Purchaser to purchase and pay for the Series
______ Notes to be sold to such Purchaser at the Closing is subject to the
fulfillment to such Purchaser's satisfaction, prior to the Closing, of the
conditions set forth in Section 4 of the Note Purchase Agreement with respect to
the Series ______ Notes to be purchased at the Closing, and to the following
additional conditions:

                  (a) Except as supplemented, amended or superceded by the
         representations and warranties set forth in Exhibit A hereto, each of
         the representations and warranties of the Company set forth in Section
         5 of the Note Purchase Agreement shall be correct as of the date of
         Closing and the Company shall have delivered to each Purchaser an
         Officer's Certificate, dated the date of the Closing certifying that
         such condition has been fulfilled.

                  (b) Contemporaneously with the Closing, the Company shall sell
         to each Purchaser, and each Purchaser shall purchase, the Series ______
         Notes to be purchased by such Purchaser at the Closing as specified in
         Schedule A.

         5. [Here insert special provisions for Series 2000-A Notes including
prepayment provisions applicable to Series ______ Notes (including Make-Whole
Amount) and closing conditions applicable to Series ______ Notes].

         6. Each Purchaser represents and warrants that the representations and
warranties set forth in Section 6 of the Note Purchase Agreement are true and
correct on the date hereof with respect to the purchase of the Series ______
Notes by such Purchaser.

         7. The Company and each Purchaser agree to be bound by and comply with
the terms and provisions of the Note Purchase Agreement as fully and completely
as if such Purchaser were an original signatory to the Note Purchase Agreement.

                                      -2-
<PAGE>   77

         The execution hereof shall constitute a contract between the Company
and the Purchaser(s) for the uses and purposes hereinabove set forth, and this
agreement may be executed in any number of counterparts, each executed
counterpart constituting an original but all together only one agreement.

                                        QUANTA SERVICES, INC.

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

Accepted as of __________, _____

                                        [VARIATION]

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

                                      -3-
<PAGE>   78

                       INFORMATION RELATING TO PURCHASERS

<TABLE>
<CAPTION>
                                                               PRINCIPAL
NAME AND ADDRESS OF PURCHASER                              AMOUNT OF SERIES
                                                           ______  NOTES TO
[NAME OF PURCHASER]                                         BE PURCHASED $
<S>                                                        <C>
(1)      All payments by wire transfer of
         immediately available funds to:

         with sufficient information to identify the
         source and application of such funds.

(2)      All notices of payments and written
         confirmations of such wire transfers:

(3)      All other communications:
</TABLE>

                                   SCHEDULE A
                                 (to Supplement)

<PAGE>   79

                          SUPPLEMENTAL REPRESENTATIONS

         The Company represents and warrants to each Purchaser that except as
hereinafter set forth in this Exhibit A, each of the representations and
warranties set forth in Section 5 of the Note Purchase Agreement is true and
correct as of the date hereof with respect to the Series ______ Notes with the
same force and effect as if each reference to "Series 2000-A Notes" set forth
therein was modified to refer the "Series ______ Notes" and each reference to
"this Agreement" therein was modified to refer to the Note Purchase Agreement as
supplemented by the _______ Supplement. The Section references hereinafter set
forth correspond to the similar sections of the Note Purchase Agreement which
are supplemented hereby:

         Section 5.3. Disclosure. The Company, through its agent, Banc of
America Securities LLC, has delivered to each Purchaser a copy of a Private
Placement Memorandum, dated ____________ (the "Memorandum"), relating to the
transactions contemplated by the ______ Supplement. The Note Purchase Agreement,
the Memorandum, the documents, certificates or other writings delivered to each
Purchaser by or on behalf of the Company in connection with the transactions
contemplated by the Note Purchase Agreement and the _______ Supplement and the
financial statements listed in Schedule 5.5 to the _____ Supplement, taken as a
whole, do not contain any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein not misleading in
light of the circumstances under which they were made. Since ____________, there
has been no change in the financial condition, operations, business, properties
or prospects of the Company or any Subsidiary except changes that individually
or in the aggregate could not reasonably be expected to have a Material Adverse
Effect.

         Section 5.4. Organization and Ownership of Shares of Subsidiaries. (a)
Schedule 5.4 to the ______ Supplement contains (except as noted therein)
complete and correct lists of the Company's Subsidiaries, and showing, as to
each Subsidiary, the correct name thereof, the jurisdiction of its organization,
and the percentage of shares of each class of its capital stock or similar
equity interests outstanding owned by the Company and each other Subsidiary.

         Section 5.13. Private Offering by the Company. Neither the Company nor
anyone acting on its behalf has offered the Series A Notes or any similar
securities for sale to, or solicited any offer to buy any of the same from, or
otherwise approached or negotiated in respect thereof with, any Person other
than the Purchasers and not more than [_] other Institutional Investors, each of
which has been offered the Series ______ Notes at a private sale for investment.
Neither the Company nor anyone acting on its behalf has taken, or will take, any
action that would subject the issuance or sale of the Notes to the registration
requirements of Section 5 of the Securities Act.

         Section 5.14. Use of Proceeds; Margin Regulations. The Company will
apply the proceeds of the sale of the Series ______ Notes to
______________________________ and for general corporate purposes. No part of
the proceeds from the sale of the Series ______ Notes pursuant to the _____
Supplement will be used, directly or indirectly, for the purpose of buying or
carrying any margin stock within the meaning of Regulation U of the Board of
Governors of

                                    EXHIBIT A
                                 (to Supplement)

<PAGE>   80

the Federal Reserve System (12 CFR 222), or for the purpose of buying or
carrying or trading in any securities under such circumstances as to involve the
Company in a violation of Regulation X of said Board (12 CFR 224) or to involve
any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).
As used in this Section, the terms "margin stock" and "purpose of buying or
carrying" shall have the meanings assigned to them in said Regulation U.

         Section 5.15. Existing Debt; Future Liens. (a) Schedule 5.15 to the
_________ Supplement sets forth a complete and correct list of all outstanding
Debt of the Company and its Subsidiaries as of _____________, since which date
there has been no Material change in the amounts, interest rates, sinking funds,
installment payments or maturities of the Debt of the Company or its
Subsidiaries. Neither the Company nor any Subsidiary is in default and no waiver
of default is currently in effect, in the payment of any principal or interest
on any Debt of the Company or such Subsidiary and no event or condition exists
with respect to any Debt of the Company or any Subsidiary that would permit (or
that with notice or the lapse of time, or both, would permit) one or more
Persons to cause such Debt to become due and payable before its stated maturity
or before its regularly scheduled dates of payment.

         [Add any additional Sections as appropriate at the time the Series
______ Notes are issued]

                                       -2-
<PAGE>   81

                          [FORM OF SERIES ______ NOTE]

                              QUANTA SERVICES, INC.

                ___% SERIES ______ SENIOR NOTE DUE ______________

No. [_________]                                                           [Date]
$[____________]                                               PPN [____________]

         FOR VALUE RECEIVED, the undersigned, QUANTA SERVICES, INC. (herein
called the "Company"), a corporation organized and existing under the laws of
the State of ____________, hereby promises to pay to [________________], or
registered assigns, the principal sum of [________________] DOLLARS on
_______________, with interest (computed on the basis of a 360-day year of
twelve 30-day months) (a) on the unpaid balance thereof at the rate of ____% per
annum from the date hereof, payable semiannually, on the _____ day of ______ and
______ in each year, commencing on the first of such dates after the date
hereof, until the principal hereof shall have become due and payable, and (b) to
the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreement
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate per annum from time to time
equal to the greater of (i) [coupon + 2%]% or (ii) 2% over the rate of interest
publicly announced by _________________ from time to time in
____________________ as its "base" or "prime" rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at ______________________, in ______________________, or at such other
place as the Company shall have designated by written notice to the holder of
this Note as provided in the Note Purchase Agreement referred to below.

         This Note is one of a series of Senior Notes (the "Notes") issued
pursuant to a Supplement to the Note Purchase Agreement dated as of March 1,
2000 (as from time to time amended, supplemented or modified, the "Note Purchase
Agreement"), between the Company, the Purchasers named therein and Additional
Purchasers of Notes from time to time issued pursuant to any Supplement to the
Note Purchase Agreement. This Note and the holder hereof are entitled equally
and ratably with the holders of all other Notes of all series from time to time
outstanding under the Note Purchase Agreement to all the benefits provided for
thereby or referred to therein. Each holder of this Note will be deemed, by its
acceptance hereof, to have made the representation set forth in Section 6.2 of
the Note Purchase Agreement, provided that such holder may (in reliance upon
information provided by the Company, which shall not be unreasonably withheld)
make a representation to the effect that the purchase by such holder of any Note
will not constitute a non-exempt prohibited transaction under Section 406(a) of
ERISA.

                                      -1-
<PAGE>   82

         This Note is registered with the Company and, as provided in the Note
Purchase Agreement, upon surrender of this Note for registration of transfer,
duly endorsed, or accompanied by a written instrument of transfer duly executed,
by the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note of the same series for a like principal amount will be
issued to, and registered in the name of, the transferee. Prior to due
presentment for registration of transfer, the Company may treat the person in
whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company will not be
affected by any notice to the contrary.

         [The Company will make required prepayments of principal on the dates
and in the amounts specified in the Note Purchase Agreement.] [This Note is not
subject to regularly scheduled prepayments of principal.] This Note is [also]
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreement, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreement,
occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any
applicable Make-Whole Amount) and with the effect provided in the Note Purchase
Agreement.

         This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of __________
excluding choice-of-law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.

                                        QUANTA SERVICES, INC.

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

                                      -2-<PAGE>   1
                                                                   EXHIBIT 10.17

================================================================================

                             INTERCREDITOR AGREEMENT

                                      AMONG

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

                                       AND

                             BANK OF AMERICA, N.A.,
         individually, and as Administrative Agent for the other Lenders

                                       AND

                    THE NOTEHOLDERS WHICH ARE PARTIES HERETO

          RE:               QUANTA SERVICES, INC.

                           Dated as of March 23, 2000

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                              HEADING                               PAGE
<S>                                                                         <C>
Parties......................................................................1

Recitals.....................................................................1

SECTION 1.    DEFINED TERMS..................................................2

SECTION 2.    APPOINTMENT OF COLLATERAL AGENT................................8

SECTION 3.    DECISIONS RELATING TO ADMINISTRATION AND EXERCISE OF
              REMEDIES VESTED IN THE MAJORITY BENEFITED PARTIES..............8

SECTION 4.    APPLICATION OF MONIES AND PROCEEDS............................10

SECTION 5.    PREFERENTIAL PAYMENTS AND SPECIAL TRUST ACCOUNT...............11

SECTION 6.    INFORMATION...................................................12

SECTION 7.    ADDITIONAL PARTIES............................................13

SECTION 8.    DISCLAIMERS, INDEMNITY, ETC...................................14

SECTION 9.    INVALIDATED PAYMENTS..........................................16

SECTION 10.   MISCELLANEOUS.................................................17

Signature Page..............................................................20
</TABLE>

                                      -i-
<PAGE>   3

                             INTERCREDITOR AGREEMENT

         This INTERCREDITOR AGREEMENT (as amended, restated or otherwise
modified from time to time in accordance with the terms hereof, this
"Agreement") is dated as of March 23, 2000 and entered into among the
Noteholders (as hereinafter defined), and Bank of America, N.A., as the
Collateral Agent (as hereinafter defined) individually, and as Agent (as
hereinafter defined). This Agreement is consented to, as evidenced by their
execution of the acknowledgment hereto, by Quanta Services, Inc., a Delaware
corporation (the "Issuer"), and by the subsidiaries of the Issuer (each a
"Subsidiary Guarantor") which have executed Guaranties (as hereinafter defined).
The Issuer and each Subsidiary Guarantor are individually referred to as an
"Obligor" and collectively as the "Obligors."

                                    RECITALS

         WHEREAS, the Issuer has entered into that certain Third Amended and
Restated Secured Credit Agreement dated as of June 14, 1999 (said agreement, as
amended prior hereto and as it may hereafter be amended, restated, refinanced,
or otherwise modified (including any increase in or reduction in the principal
amount thereof) from time to time the "Existing Credit Agreement" and together
with any Successor Credit Agreement, as hereinafter defined, the "Credit
Agreement") among the Issuer and the Lenders from time to time parties thereto
(each a "Lender" and collectively the "Lenders"), and Bank of America, N.A. as
administrative agent for the Lenders.

         WHEREAS, the Subsidiary Guarantors have or will guaranty the
obligations of the Issuer under the Credit Agreement pursuant to one or more
Subsidiary Guaranties (the "Bank Guaranties").

         WHEREAS, the obligations of the Issuer under the Credit Agreement and
in respect of certain Hedging Transactions (as defined below) and the
obligations of the Subsidiary Guarantors under the Bank Guaranties are secured
pursuant to certain Bank Security Documents (as hereinafter defined), among the
Obligors and the Collateral Agent, pursuant to which the Obligors have granted a
security interest to the Collateral Agent (on behalf of the Lenders) in
substantially all of their personal property to secure the Credit Obligations.

         WHEREAS, the Issuer has entered into a Note Purchase Agreement dated as
of March 1, 2000 (said agreement as amended, restated, supplemented or otherwise
modified from time to time, the "Note Agreement"), between the Issuer and the
Purchasers named therein (the "Existing Noteholders") pursuant to which the
Existing Noteholders purchased or will purchase the Issuer's (i) $73,000,000
8.46% Series 2000-A Senior Secured Notes, Tranche 1 due March 1 2005, (ii)
$41,500,000 8.55% Series 2000-A Senior Secured Notes, Tranche 2, due March 1,
2007 and (iii) $35,500,000 8.61% Senior Secured Notes, Tranche 3, due March 1,
2010 (collectively, the "Existing Senior Notes").

         WHEREAS, it is contemplated that additional series of senior notes may
be issued from time to time pursuant to one or more supplements to the Note
Agreement to institutional investors (which may include the Existing
Noteholders) such additional senior notes together

<PAGE>   4

with the Existing Senior Notes being hereinafter referred to collectively as the
"Senior Notes"). The purchasers of such additional Senior Notes which become
Parties hereto being hereinafter together with the Existing Noteholders
collectively referred to as the "Noteholders".

         WHEREAS, the Parties desire that the Proceeds from the commencement of
Enforcement (as hereinafter defined) proceedings with respect to the collateral
under the Security Documents shall be shared equally and ratably among the
Benefited Parties (as hereinafter defined) in accordance with the terms of this
Agreement.

         WHEREAS, the Subsidiary Guarantors have or will guaranty the
obligations of the Issuer under the Note Agreement and the Senior Notes pursuant
to one or more Subsidiary Guaranties (the "Noteholder Guaranties").

         WHEREAS, the obligations of the Issuer under the Note Agreement and the
Senior Notes and the obligations of the Subsidiary Guarantors under the
Noteholder Guaranties are secured pursuant to certain Noteholder Security
Documents (as hereinafter defined), among the Obligors and the Collateral Agent,
as collateral agent for the Noteholders, pursuant to which the Obligors have
granted a security interest to the Collateral Agent (on behalf of the
Noteholders) in substantially all of their personal property to secure the
Senior Note Obligations.

         WHEREAS, the Noteholders, the Lenders and the Collateral Agent
(individually a "Party" and collectively the "Parties") desire to enter into
this Intercreditor Agreement and further desire that Bank of America, N.A. act
as the collateral agent on behalf of all Parties regarding the Collateral, all
as more fully provided herein; and the Parties have entered into this Agreement
to, among other things, further define the rights, duties, authority and
responsibilities of the Collateral Agent and the relationship between the
Parties regarding their pari passu interests in the Collateral.

         WHEREAS, it is contemplated that the Lenders or other financial
institutions (the "Successor Lenders") may enter into one or more agreements
with the Obligors either extending the maturity of or refinancing all or any
portion of the Credit Obligations (as hereinafter defined) (including an
increase or decrease in the principal amount thereof).

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

SECTION 1.      DEFINED TERMS.

         As used in this Agreement the following terms have the following
meanings:

         "Acceleration Premium Obligations" means all obligations of the Issuer
to pay a "Make Whole Amount" (as defined in the Note Agreement) to the
Noteholders as a result of the acceleration of their respective Senior Note
Obligations payable under the Note Agreement.

                                      -2-
<PAGE>   5

         "Affiliate," as applied to any Person, means any other Person directly
or indirectly controlling, controlled by, or under common control with, that
Person. For the purposes of this definition, "control" (including with
correlative meanings, the terms "controlling," "controlled by" and "under common
control with"), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of that Person, whether through the ownership of voting securities or
by contract or otherwise.

         "Agent" means Bank of America, N.A. in its capacity as Administrative
Agent under the Credit Agreement and any successor Administrative Agent under
the Credit Agreement.

         "Agreement" has the meaning ascribed to that term in the introductory
paragraph hereto.

         "Bank Documents" means the Credit Agreement, the Bank Guaranties, the
Bank Security Documents, and any other document or instrument whether now
existing or hereafter given to the Collateral Agent or any Lender in respect of
the Credit Obligations.

         "Bank Guaranties" has the meaning ascribed to that term in the recitals
hereto.

         "Bank Security Documents" means any security agreement, hypothec,
mortgage, deed of trust, pledge agreement or other agreement or instrument
pursuant to which any Obligor grants a Lien to secure the Credit Obligations
whether now existing or hereafter incurred.

         "Bankruptcy Proceeding" means, with respect to any Person, a general
assignment by such Person for the benefit of its creditors, or the institution
by or against such Person of any proceeding seeking relief as debtor, or seeking
to adjudicate such Person as bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment or composition of such Person or its debts, under any
law relating to bankruptcy, insolvency, reorganization or relief of debtors, or
seeking appointment of a receiver, trustee, custodian or other similar official
for such Person or for any substantial part of its property.

         "Benefited Obligations" means (a) all Credit Obligations, (b) all
Senior Note Obligations, (c) all Hedging Exposure and other obligations of the
Issuer under or arising in connection with any Interest Rate Protection
Agreement, and (d) all other amounts payable by any Obligor under this
Agreement, any Guaranty and the Security Documents (including, without
limitation, the reasonable fees and expenses of the Collateral Agent).

         "Benefited Parties" means the holders, from time to time, of the
Benefited Obligations.

          "Code" means the Uniform Commercial Code as the same may from time to
time be in effect in the appropriate jurisdiction.

         "Collateral" means all property and interests in property of any
Obligor in which a Lien has been created under the Security Documents.

         "Collateral Agent" means Bank of America, N.A., in its capacity as
collateral agent hereunder and any successor collateral agent appointed pursuant
to Section 8 hereof.

                                      -3-
<PAGE>   6

         "Credit Agreement" has the meaning ascribed to that term in the
recitals hereto.

         "Credit Obligations" means all outstanding and unpaid obligations of
every nature of the Obligors (including L/C Obligations) from time to time to
the Lenders or any of them under the Credit Agreement and any other Bank
Documents.

         "Directing Party" means, with respect to any particular instruction
given to the Collateral Agent, each Party (and each Benefited Party represented
by such Party) that has given such instruction to the Collateral Agent.

         "Enforcement" means the commencement of enforcement, collection
(including judicial or non-judicial foreclosure) or similar proceedings with
respect to the Collateral.

         "Event of Default" means an "Event of Default" or "Default" as defined
in any Financing Agreement.

         "Existing Credit Agreement" has the meaning ascribed to that term in
the recitals hereto.

         "Existing Noteholders" has the meaning ascribed to that term in the
recitals hereto.

         "Existing Senior Notes" has the meaning ascribed to that term in the
recitals hereto.

         "Financing Agreements" means the Bank Documents, the Noteholder
Documents, any Interest Rate Protection Agreement, this Agreement, the Security
Documents, and any other instruments, documents or agreements entered into in
connection with any Benefited Obligation or Financing Agreement.

         "Guaranty" means any Bank Guaranty or any Noteholder Guaranty and
"Guaranties" means the Bank Guaranties and the Noteholder Guaranties.

         "Hedging Exposure" means, on any date of determination for any Hedging
Transaction, the amount, as calculated in good faith and in a commercially
reasonable manner by the Lender that is the Issuer's counterpart for such
Hedging Transaction, which such Lender would pay to a third party (such amount
being expressed as a negative number) or receive from a third party (such amount
being expressed as a positive number) in an arm's-length transaction as
consideration for the third party's entering into a new transaction with such
Lender in which: (a) such Lender holds the same position in the Hedging
Transaction as it currently holds; (b) the third party holds the same position
as the Issuer currently holds; and (c) the new transaction has economic and
other terms and conditions identical in all respects to such Hedging Transaction
except that (i) the date of calculation shall be deemed to be the date of
commencement of the new transaction and (ii) all period end dates shall
correspond to all period end dates, if any, for such Hedging Transaction.

         "Hedging Transaction" means each interest rate swap transaction, basis
swap transaction, forward rate transaction, commodity swap transaction, equity
index transaction, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap

                                      -4-
<PAGE>   7

transaction or any other similar transaction (including any option with respect
to any of these transactions and any combination of any of the foregoing)
entered into by the Issuer from time to time pursuant to an Interest Rate
Protection Agreement; provided that such transaction is entered into for risk
management purposes and not for speculative purposes.

         "Interest Rate Protection Agreement" means any interest rate swap, cap,
floor, collar, forward rate agreement, or other rate protection transaction, or
any combination of such transactions or agreements or any option with respect to
any such transactions or agreements now existing or hereafter entered into
between the Issuer and any Lender or Successor Lender.

         "Issuer" has the meaning ascribed to that term in the introductory
paragraph hereto.

         "L/C Obligations" has the meaning set forth in the Credit Agreement.

         "Lenders" has the meaning ascribed to that term in the recitals hereto.

         "Letter of Credit" has the meaning set forth in the Credit Agreement.

         "Lien" means any lien, mortgage, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title retention
agreement, any lease in the nature thereof, and any agreement to give any
security interest).

         "Majority Benefited Parties" means (a) the Required Lenders under the
Credit Agreement, and (b) Noteholders holding (or representing) at least 51% of
the outstanding principal amount of the Senior Notes, each voting as a separate
class, provided that if at any time the amount of the Credit Obligations or the
aggregate outstanding principal amount of the Senior Notes represents less than
5% of the sum of the aggregate outstanding principal amount of the indebtedness
evidenced by the Senior Notes and the amount of the Credit Obligations, then
"Majority Benefited Parties" shall mean Benefited Parties, considered as a
single class, holding more than 50% of the sum of (i) the outstanding principal
amount of the Senior Notes, plus (ii) the outstanding amount of the Credit
Obligations. Determination of the "amount of the Credit Obligations" shall be
based on the commitments of the Lenders; provided that if an Event of Default
shall exist such determination shall be based on the amount of the outstanding
Credit Obligations.

          "Non-Directing Party" means, with respect to any particular
instruction given to the Collateral Agent, each Party (and each Benefited Party
represented by such Party) that has not given or agreed with such instruction
given to the Collateral Agent.

         "Note Agreement" has the meaning ascribed to that term in the recitals
hereto.

         "Noteholder Documents" means (i) the Note Agreement; (ii) the Senior
Notes; (iii) the Noteholder Guaranties; and (iv) the Noteholder Security
Documents.

         "Noteholder Guaranties" has the meaning ascribed to that term in the
recitals hereto.

                                      -5-
<PAGE>   8

         "Noteholder Security Documents" means any security agreement, hypothec,
mortgage, deed of trust, pledge agreement or other agreement or instrument
pursuant to which any Obligor grants a Lien to secure the Senior Note
Obligations.

         "Noteholders" has the meaning ascribed to that term in the recitals
hereto.

         "Obligors" has the meaning ascribed to that term in the recitals
hereto.

         "Opinion of Counsel" means a written opinion of an attorney or firm of
attorneys which is not an employee of the Person requesting such opinion or any
affiliate of such Person but which may be outside counsel engaged or retained by
such Person, a copy of which opinion is furnished to each Benefited Party.

          "Party" has the meaning ascribed to that term in the recitals hereto.

         "Person" means any individual, corporation, partnership, limited
liability company, trust or other entity.

         "Preferential Payment" means any payments (including payments from any
Subsidiary Guarantor) or Proceeds from any Obligor or any other source with
respect to the Benefited Obligations (including from the exercise of any
set-off) which are:

                  (i) received by a Benefited Party within 90 days prior to the
         commencement of a Bankruptcy Proceeding with respect to any Obligor, or
         the acceleration of any Senior Notes or the Credit Obligations, and
         which payment reduces the amount of the Benefited Obligations owed to
         such Benefited Party as of the date of commencement of such Bankruptcy
         Proceedings or the date of such acceleration below the amount owed to
         such Benefited Party as of the 90th day prior to such occurrence, or

                  (ii) received by a Benefited Party (A) within 90 days prior to
         the occurrence of any other Event of Default which has not been waived
         or cured within 45 days after the occurrence thereof and which payment
         reduces the amount of the Benefited Obligations owed to such Benefited
         Party as of the date of occurrence of such Event of Default below the
         amount owed to such Benefited Party as of the 90th day prior to the
         occurrence of such Event of Default or (B) within 45 days after the
         occurrence of such Event of Default, or

                 (iii) received by a Benefited Party after the occurrence of a
         Special Event of Default (except as provided in Section 5(b)) and such
         payment reduces the amount of the Benefited Obligations owed to such
         Party as of the date of the occurrence of such Special Event of
         Default.

         "Proceeds" has the meaning assigned to it under the Code and, in any
event, includes, but is not limited to, (a) any and all proceeds of any
collection, sale or other disposition of the Collateral, (b) any and all amounts
from time to time paid or payable under or in connection with

                                      -6-
<PAGE>   9

any of the Collateral and (c) amounts collected by the Collateral Agent or any
Lender by way of off-set, deduction or counterclaim.

         "Required Lenders" means those Lenders having aggregate percentages of
the revolving loan commitments under the Credit Agreement entitled to direct the
Agent to act or refrain from acting in its capacity as agent under the Credit
Agreement.

         "Required Noteholders" means, with respect to any particular Event of
Default which shall at the time exist under any Note Agreement, the percentage
of Noteholders required to waive such Event of Default under the provisions of
such Note Agreement or, if the Senior Notes under the applicable Note Agreement
shall have been accelerated, the percentage of Noteholders required to rescind
such acceleration under the provisions of such Note Agreement.

         "Security Documents" means the Bank Security Documents and the
Noteholder Security Documents.

         "Senior Debt" means debt for borrowed money, including Senior Notes
issued after the date of this Agreement but excluding debt outstanding under the
Credit Agreement, which is not subordinated in right of payment to any other
obligation of the Issuer.

         "Senior Note Obligations" means all outstanding and unpaid obligations
of every nature of the Obligors from time to time to the Noteholders under the
Noteholder Documents, including, without limitation, the Acceleration Premium
Obligations and all fees, collection costs and other expenses otherwise accruing
under the Noteholder Documents.

         "Senior Notes" means all senior notes issued pursuant to the Note
Agreement.

         "Special Event of Default" shall mean (i) the commencement of a
Bankruptcy Proceeding with respect to any Obligor, (ii) any other Event of
Default which has not been waived or cured within 45 days after the occurrence
thereof, or (iii) the acceleration of any Senior Notes or the Credit
Obligations.

         "Special Trust Account" shall mean that certain interest bearing trust
account maintained by the Collateral Agent for the purpose of receiving and
holding Preferential Payments.

         "Subsidiary Guarantor" has the meaning ascribed to that term in the
recitals hereto.

         "Successor Credit Agreement" shall mean any replacement, refinancing or
restructuring of the Existing Credit Agreement; provided that each Successor
Lender thereunder or an agent acting on behalf of all such Successor Lenders has
executed an acknowledgment to this Agreement in the form attached hereto as
Exhibit A.

         "Successor Lenders" has the meaning ascribed to that term in the
recitals hereto.

                                      -7-
<PAGE>   10

SECTION 2.      APPOINTMENT OF COLLATERAL AGENT.

         Agent and each Noteholder hereby acknowledges that it has appointed
Bank of America, N.A. to serve as the Collateral Agent and authorized the
Collateral Agent to act as agent for the Benefited Parties for the purposes of
executing and delivering on behalf of the Benefited Parties the Security
Documents and, subject to the provisions of this Agreement, enforcing the
Benefited Parties' rights in respect of the Collateral and the obligations of
the Obligors under the Security Documents.

SECTION 3.        DECISIONS RELATING TO ADMINISTRATION AND EXERCISE OF REMEDIES
                  VESTED IN THE MAJORITY BENEFITED PARTIES.

         (a) The Collateral Agent agrees that it will not commence Enforcement
without the written approval of the Majority Benefited Parties. The Collateral
Agent agrees to administer the Security Documents and the Collateral and to make
such demands and give such notices under the Security Documents as the Majority
Benefited Parties may request in writing, and to take such action to enforce the
Security Documents and to realize upon, collect and dispose of the Collateral or
any portion thereof as may be directed in writing by the Majority Benefited
Parties; provided that the Collateral Agent shall not be required to take any
action (i) that is in the Opinion of Counsel contrary to law or to the terms of
this Agreement or the Security Documents, or that would in the Opinion of
Counsel subject the Collateral Agent or any of its officers, employees, agents
or directors to liability, and (ii) until the Collateral Agent shall be
indemnified to its reasonable satisfaction by one or more of the Benefited
Parties against any and all loss, cost, expense or liability in connection
therewith.

         (b) Each Party agrees that the Collateral Agent shall act as the
Majority Benefited Parties may request (regardless of whether any individual
Party or Benefited Party agrees, disagrees or abstains with respect to such
request), that the Collateral Agent shall have no liability for acting in
accordance with such request (provided such action does not conflict with the
express terms of this Agreement) and that no Directing Party or Non-Directing
Party shall have any liability to any Non-Directing Party or Directing Party,
respectively, for any such request. The Collateral Agent shall give prompt
notice to the Non-Directing Parties of action taken pursuant to the instructions
of the Majority Benefited Parties to enforce any Security Document; provided,
however, that the failure to give any such notice shall not impair the right of
the Collateral Agent to take any such action or the validity or enforceability
under this Agreement of the action so taken. Notwithstanding anything herein to
the contrary, the Majority Benefited Parties shall agree to release the
Collateral from the security interests granted for the benefit of any
Non-Directing Party only if the Collateral Agent is concurrently releasing the
security interest granted with respect to such Collateral for all Benefited
Parties having a security interest in such Collateral.

         (c) Each Party agrees that the only right of a Non-Directing Party
under the Security Documents is for Benefited Obligations held by such
Non-Directing Party to be secured by the Collateral for the period and to the
extent provided in the Security Documents and in this Agreement and to receive
their pro rata share of the Proceeds of the Collateral, if any, to the extent
and at the time provided in the respective Security Documents and in this
Agreement.

                                      -8-
<PAGE>   11

         (d) The Collateral Agent may at any time request approval from the
Majority Benefited Parties as to any course of action or other matter relating
hereto or any Security Document. Except as otherwise provided in this Agreement
or the Security Documents, directions given by the Majority Benefited Parties to
the Collateral Agent hereunder shall be in writing and binding on all Benefited
Parties, including all Non-Directing Parties, for all purposes.

         (e) Nothing contained in this Agreement shall affect the rights of any
Party to give the Issuer or any other Obligor notice of any default, accelerate
or make demand for payment of their respective Benefited Obligations under the
Financing Agreements. If the Majority Benefited Parties instruct the Collateral
Agent to take any action, commence any proceedings or otherwise proceed against
the Collateral or enforce any Security Documents, and such action or proceedings
are or may be defective without the joinder of all Parties, then all Parties
shall join in such actions or proceedings. Each Party agrees not to take any
action to enforce any term or provision of the Security Documents (other than
the Guaranties) or to enforce any of its rights in respect of the Collateral
except through the Collateral Agent in accordance with this Agreement.

         (f) If the Collateral Agent has been notified in writing that an Event
of Default has occurred, the Collateral Agent shall notify the Benefited Parties
and may notify the Issuer of such determination. Any Benefited Party which has
actual knowledge of an Event of Default, or facts which indicate that an Event
of Default has occurred, shall deliver to the Collateral Agent a written
statement describing such Event of Default or facts. Failure to do so, however,
does not constitute a waiver of such Event of Default by the Benefited Parties.
Upon receipt of a notice from a Benefited Party of the occurrence of an Event of
Default, the Collateral Agent shall promptly (and in any event no later than
three business days after receipt of such notice in the manner provided in
Section 10(a) hereof) give notice of such Event of Default to all Benefited
Parties.

         (g) Unless an Event of Default has occurred and is continuing, the
Collateral Agent may, without the approval of the Benefited Parties as required
herein, release any Collateral under the Security Documents which is permitted
to be sold or disposed of by any Obligor pursuant to the Credit Agreement and
the Note Agreement and execute and deliver such releases as may be necessary to
terminate of record the Benefited Parties' security interest in such Collateral.
So long as no Event of Default shall have occurred and shall be continuing, the
Collateral Agent shall release the Collateral upon the written direction of the
Required Lenders. The Collateral Agent shall not be required to obtain the
approval of the Required Noteholders in connection with the release of the
Collateral unless an Event of Default shall have occurred and shall be
continuing.

         (h) The Noteholders shall have the right, without the consent of the
Lenders to amend, supplement, restate or replace (including an increase or
decrease in the principal amount thereof) or waive the terms of the existing
Note Agreement and the Senior Notes without in any way affecting the rights of
the Senior Noteholders under this Agreement. The Lenders shall have the right,
without the consent of the Senior Noteholders to amend, supplement, restate or
replace or waive the terms of the existing Credit Agreement and the Credit
Obligations without in any way affecting the rights of the Lenders under this
Agreement. The Noteholders will furnish a copy of any amendment to the
Noteholder Documents to the Agent promptly after the execution and

                                      -9-
<PAGE>   12

delivery thereof. The Agent will furnish a copy of any amendment to the Bank
Documents to the Noteholders promptly after the execution and delivery thereof.

         (i) Neither the Lenders nor the Noteholders shall directly or
indirectly take any action, consent to the taking of any action, or cause or
assist any Person to take any action, to challenge the validity, legality,
perfection, priority or enforcement of the Security Documents or the Liens of
the Security Documents on the Collateral. Subject to the terms and conditions of
this Agreement, neither the Lenders nor the Noteholders shall directly or
indirectly take any action, consent to the taking of any action, or cause or
assist any Person to take any action, to challenge, object to, compete with or
impede in any matter any act taken or proceeding commenced by another Party in
connection with the Enforcement of the Credit Obligations or the Senior Note
Obligations, as the case may be.

SECTION 4.      APPLICATION OF MONIES AND PROCEEDS.

         (a) Any and all monies and Proceeds received by the Collateral Agent or
a Benefited Party in connection with a demand for payment or an Enforcement and
any Preferential Payments required to be paid to all Benefited Parties in
accordance with the provisions of Section 5, shall be delivered to the
Collateral Agent and applied promptly by the Collateral Agent as follows:

                  FIRST: To the payment of the reasonable costs and expenses of
         such sale, collection or other realization, including reasonable fees
         and expenses of counsel, and all reasonable expenses, liabilities and
         advances made or incurred by the Collateral Agent in connection
         therewith;

                  SECOND: To the ratable payment of the Benefited Obligations
         then due and owing by such Obligor; provided that with respect to
         Benefited Obligations consisting of the undrawn amounts of outstanding
         Letters of Credit, payment shall be made to the Collateral Agent, to be
         retained as Collateral, for the ratable portion of the Benefited
         Obligations consisting of such undrawn amounts of outstanding Letters
         of Credit (provided that (i) if any such Letter of Credit is drawn
         upon, the Collateral Agent shall pay to the Benefited Party that issued
         such Letter of Credit the ratable portion of the amount of cash held as
         Collateral therefor pursuant to this clause which is allocable to the
         amount drawn upon such Letter of Credit; and (ii) if and to the extent
         that any such Letter of Credit shall expire or terminate, the amount of
         cash held as Collateral therefor pursuant to this clause shall be
         applied in accordance with this subsection 4(a)), calculated in
         accordance with the provisions of subsection 4(b); and

                  THIRD: After payment in full of all Benefited Obligations, to
         the payment to or upon the order of Obligors, or to whomsoever may be
         lawfully entitled to receive the same or as a court of competent
         jurisdiction may direct, of any surplus then remaining from such
         Proceeds.

Until such monies or Proceeds are so applied, the Collateral Agent shall hold
such monies or Proceeds in its custody in accordance with its regular procedures
for handling deposited funds.

                                      -10-
<PAGE>   13

         (b) Any monies received by the Collateral Agent from any Obligor under
the Financing Agreements in connection with a demand for payment or an
Enforcement (including, without limitation, any Proceeds received by the
Collateral Agent in respect of the Collateral) and any Preferential Payments
(net of any amounts applied in accordance with Section 4(a) FIRST) shall be
applied in accordance with the priority set forth in Section 4(a) SECOND so that
each Benefited Party shall receive payment of its proportionate amount of all
such Proceeds. Payment shall be based upon the proportion which the amount of
such Benefited Obligations of such Benefited Party bears to the total amount of
all Benefited Obligations of all such Benefited Parties, including, without
limitation, Hedging Exposure to any Lender. For purposes of determining the
proportionate amounts of all Benefited Obligations sharing in any such
distribution, (i) the amount of the outstanding Credit Obligations shall be
deemed to be the principal amount of the Credit Obligations then outstanding and
all accrued interest and fees with respect thereto, and (ii) the amount of the
outstanding Senior Note Obligations shall be deemed to be the principal amount
of the Senior Notes then outstanding plus all accrued interest and fees with
respect thereto including, without limitation, the Acceleration Premium
Obligations, and (iii) the amount of the outstanding Hedging Exposure shall be
deemed to be the amount of Obligor's obligations then due and payable (exclusive
of expenses or similar liabilities, but including early termination payments
then due) in connection with any Hedging Transaction and all accrued interest
and fees with respect thereto.

         (c) Payments by the Collateral Agent in respect of (i) the Credit
Obligations shall be made to the Agent for distribution to the Lenders in
accordance with the Credit Agreement; (ii) the Senior Note Obligations shall be
made as directed in writing by the Noteholder to whom such Senior Note
Obligations are owed; and (iii) Hedging Exposure shall be made as directed by
the Lender to which such is owed.

         (d) Such monies or Proceeds received by each Benefited Party under this
Section shall be applied on the Benefited Obligations, first to accrued interest
on such Benefited Obligations, second to the Acceleration Premium Obligations
and fees then due and owing, and third to the unpaid principal amount of the
Benefited Obligations and Hedging Exposure held by such Benefited Party.

SECTION 5.      PREFERENTIAL PAYMENTS AND SPECIAL TRUST ACCOUNT.

         (a) The Collateral Agent shall give each Benefited Party a written
notice (a "Notice of Special Default") promptly, but no later than, three
business days after being notified in writing by a Benefited Party that a
Special Event of Default has occurred. After the receipt of such Notice of
Special Default, all Preferential Payments other than those payments received
pursuant to Section 5(b) shall be deposited into the Special Trust Account. Each
Benefited Party agrees that no Event of Default shall occur as a result of
payments so made on a timely basis to the Collateral Agent.

         (b) If (i) such Special Event of Default is waived by the Required
Lenders or the Required Noteholders, or both, as the case may be, and if no
other Event of Default has occurred and is continuing, (ii) such Special Event
of Default is cured by the Obligors or by any waiver, or amendment of the Credit
Agreement or the Note Agreement, as the case may be, and if no other

                                      -11-
<PAGE>   14

Event of Default has occurred and is continuing or (iii) the Benefited
Obligations have not been accelerated and the Majority Benefited Parties have
not instructed the Collateral Agent to seek the appointment of a receiver,
commence litigation against any Obligor, liquidate the Collateral, commence a
Bankruptcy Proceeding against any Obligor, seize Collateral, or exercise other
remedies of similar character prior to the 90th day following such Special Event
of Default, the Collateral Agent thereupon shall return all amounts, together
with their pro rata share of interest earned thereon, held in the Special Trust
Account representing payment of any Benefited Obligations to the Benefited Party
initially entitled thereto, and no payments thereafter received by a Benefited
Party shall constitute a Preferential Payment by reason of such cured or waived
Special Event of Default. No payment returned to a Benefited Party for which
such Benefited Party has been obligated to make a deposit into the Special Trust
Account shall thereafter ever be characterized as a Preferential Payment. If the
Special Event of Default is an Event of Default under the terms of the Credit
Agreement and the Note Agreement, the Collateral Agent shall not return any
payments to the Benefited Parties pursuant to (i) above unless the Required
Lenders and the Required Noteholders have each waived such Special Event of
Default.

         (c) Each Benefited Party agrees that upon the occurrence of a Special
Event of Default it shall (i) promptly notify the Collateral Agent of the
receipt of any Preferential Payments, (ii) hold such amounts in trust for the
Benefited Parties and act as agent of the Benefited Parties during the time any
such amounts are held by it, and (iii) deliver to the Collateral Agent such
amounts for deposit into the Special Trust Account.

         (d) If the Benefited Obligations have been accelerated or the Majority
Benefited Parties have instructed the Collateral Agent to commence Enforcement
or commence a Bankruptcy Proceeding against any Obligor, then all funds,
together with interest earned thereon, held in the Special Trust Account and all
subsequent Preferential Payments shall be applied in accordance with the
provisions of Section 4(a) above.

SECTION 6.      INFORMATION.

         If, in accordance with the terms of this Agreement, the Collateral
Agent proceeds to enforce any Security Document or to collect, sell, otherwise
dispose of or take any other action with respect to any of such agreements or
the Collateral or any portion thereof or proposes to take any other action
pursuant to or contemplated by this Agreement, the Parties hereto agree as
follows:

                  (a) Each Lender shall (i) promptly from time to time, upon the
         written request of the Collateral Agent, notify the Collateral Agent of
         the outstanding Credit Obligations as at such date as the Collateral
         Agent may specify; and (ii) promptly from time to time thereafter
         notify the Collateral Agent of any payment received by such Lender to
         be applied to satisfy Credit Obligations. Each Lender shall certify as
         to such amounts and the Collateral Agent shall be entitled to rely
         conclusively upon such certification.

                  (b) Each Noteholder shall (i) promptly from time to time, upon
         the written request of the Collateral Agent, notify the Collateral
         Agent of the outstanding Senior Note Obligations owed to such
         Noteholder as at such date as the Collateral Agent may

                                      -12-
<PAGE>   15

         specify; (ii) promptly from time to time, upon the written request of
         the Collateral Agent, notify the Collateral Agent of the amount that
         would be payable as a "Make Whole Amount" under the Note Agreement upon
         acceleration of such Noteholder's Senior Notes or any successor
         provision thereto if such "Make Whole Amount" were payable as of such
         date as the Collateral Agent may specify and (iii) promptly from time
         to time thereafter, notify the Collateral Agent of any payment received
         thereafter by such Noteholder to be applied to the principal of or
         interest or "Make Whole Amount" on the Senior Note Obligations owing to
         such Noteholder. Each Noteholder shall certify as to such amounts and
         the Collateral Agent shall be entitled to rely conclusively upon such
         certification.

                  (c) Each Lender party to a Hedging Transaction shall (i)
         promptly from time to time, upon the written request of the Collateral
         Agent, notify the Collateral Agent of the notional amount under such
         Hedging Transaction and the amount payable by any Obligor upon early
         termination of such Hedging Transaction at the date of termination as
         fixed by such Interest Rate Protection Agreement and (ii) promptly from
         time to time thereafter notify the Collateral Agent of any payment
         received by such Lender to be applied to amounts due upon early
         termination of such Hedging Transaction. Such Lender shall certify as
         to such amounts and the Collateral Agent shall be entitled to rely
         conclusively upon such certification.

SECTION 7.      ADDITIONAL PARTIES.

         (a) The Issuer may enter into one or more Successor Credit Agreements
and such Successor Credit Agreement shall be secured by the Collateral as
provided herein and in the Security Documents; provided that each Successor
Lender party to such Successor Credit Agreement, or the agent on behalf of all
such Successor Lenders to such Successor Credit Agreement, shall sign an
acknowledgment in the form of Exhibit A attached to this Agreement, by which
each such Successor Lender agrees to be bound by the terms of this Agreement,
and by delivering a signed acknowledgment thereof executed by the Obligors to
the Collateral Agent; and provided further that on the date of execution and
delivery of such Successor Credit Agreement, and after giving effect to the
indebtedness outstanding thereunder and the application of the proceeds
therefrom, such indebtedness would be permitted by the Note Agreement.

         (b) The Issuer may enter into one or more supplements to the Note
Agreement and the Senior Notes issued pursuant thereto shall be secured by the
Collateral as provided herein and in the Security Documents; provided that each
Noteholder party to such Supplement, shall sign an acknowledgment in the form of
Exhibit B attached to this Agreement, by which each such Noteholder agrees to be
bound by the terms of this Agreement, and by delivering a signed acknowledgment
thereof executed by the Obligors to the Collateral Agent; and provided further
that on the date of issuance of such additional Senior Notes, the incurrence by
the Issuer of such indebtedness would not constitute an Event of Default under
the Credit Agreement.

         (c) In the case of any Successor Credit Agreement, the Collateral Agent
shall not be required to release any Collateral to any successor Collateral
Agent unless the Credit Obligations

                                      -13-
<PAGE>   16

in respect of the outstanding Credit Agreement shall have been paid in full or
provision for such payment shall have been made which is satisfactory to the
Required Lenders and the Required Noteholders.

SECTION 8.      DISCLAIMERS, INDEMNITY, ETC.

         (a) The Collateral Agent shall have no duties or responsibilities as a
trustee except those expressly set forth in this Agreement and the Security
Documents. The Collateral Agent shall not be responsible to any Benefited Party
for any recitals, statements, representations or warranties contained in any
Financing Agreement or in any certificate or other document referred to or
provided for in, or received by any of them under, any Financing Agreement, or
for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of any Financing Agreement or any other document referred to or
provided for therein or any Lien under any of the Security Documents or the
perfection or priority of any such Lien or for any failure by any Obligor, any
Benefited Party or any other Person to perform any of its respective obligations
under any Financing Agreement. Without limiting the foregoing, the Collateral
Agent shall not be required to take any action under any Security Document,
including, without limitation, any action to perfect any security interests
granted in the Collateral pursuant to the Security Documents or to administer
any Collateral unless instructed to do so by the Majority Benefited Parties.
Neither the Collateral Agent nor any of its directors, officers, employees or
agents shall be liable or responsible for any action taken or omitted to be
taken by it or them hereunder or in connection herewith, except for the gross
negligence or willful misconduct of any such Person.

         (b) The Collateral Agent shall be entitled to rely upon any
certification, notice or other communication (including any thereof by telephone
or telecopy) believed by it to be genuine and correct and to have been signed or
sent by or on behalf of the proper Person or Persons, and upon advice and
statements of independent legal counsel, independent accountants and other
experts selected by the Collateral Agent. As to any matters not expressly
provided for by this Agreement, the Collateral Agent shall in all cases be fully
protected in acting, or in refraining from acting, hereunder in accordance with
instructions signed by the Majority Benefited Parties, and such instructions of
the Majority Benefited Parties, and any action taken or failure to act pursuant
thereto, shall be binding on all Parties, Directing Parties and Non-Directing
Parties.

         (c) The Benefited Parties agree that they will indemnify the Collateral
Agent in its capacity as the Collateral Agent, ratably in accordance with the
amount of the Benefited Obligations held by such Benefited Parties to the extent
neither reimbursed by Obligors under the Security Documents nor reimbursed out
of any Proceeds pursuant to clause FIRST of Section 4(a) hereof, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever that may be
imposed on, incurred by or asserted against the Collateral Agent in any way
relating to or arising out of this Agreement or any of the Security Documents or
the enforcement of any of the terms of any thereof, including fees and expenses
of counsel (including the allocated cost of internal counsel); provided,
however, that no such Benefited Party shall be liable for any such payment to
the extent the obligation to make such payment is found in a final judgment by a
court of competent jurisdiction to have arisen solely from the Collateral
Agent's gross negligence or willful misconduct.

                                      -14-
<PAGE>   17

         (d) Except for action expressly required of the Collateral Agent
hereunder, the Collateral Agent shall, notwithstanding anything to the contrary
in Section 8(c) hereof, in all cases be fully justified in failing or refusing
to act hereunder unless it shall be further indemnified to its reasonable
satisfaction by the Parties against any and all liability and expense that may
be incurred by it by reason of taking or continuing to take any such action.

         (e) The Collateral Agent may deem and treat the payee of any promissory
note or other evidence of indebtedness or obligations relating to any Benefited
Obligation as the owner thereof for all purposes hereof unless and until a
written notice of the assignment or transfer thereof, signed by such payee and
in form reasonably satisfactory to the Collateral Agent, shall have been
delivered to the Collateral Agent. Any request, authority or consent of any
Person who at the time of making such request or giving such authority or
consent is the holder of any such note or other evidence of indebtedness or
obligations shall be conclusive and binding on any subsequent holder, transferee
or assignee of such note or other evidence of indebtedness or obligations and of
any note or notes or other evidences of indebtedness or obligations issued in
exchange therefor.

         (f) Except as expressly provided herein and in the Security Documents,
the Collateral Agent shall have no duty to take any affirmative steps with
respect to the administration or collection of amounts payable in respect of the
Security Documents or the Collateral. The Collateral Agent shall incur no
liability (except to the extent the actions or omissions of the Collateral Agent
in connection therewith constitute gross negligence or willful misconduct) as a
result of any sale of any Collateral, whether at any public or private sale.

         (g) The Collateral Agent may resign at any time by giving at least 30
days' notice thereof to the Parties (such resignation to take effect upon the
acceptance by a successor Collateral Agent of any appointment as the Collateral
Agent hereunder) and the Collateral Agent may be removed as the Collateral Agent
at any time by the Majority Benefited Parties; provided that if an Event of
Default shall exist such removal may be effected by either (1) the Required
Lenders or (2) the Required Noteholders. In the event of any such resignation or
removal of the Collateral Agent, the Majority Benefited Parties shall thereupon
have the right to appoint a successor Collateral Agent which is not a Benefited
Party. If no successor Collateral Agent shall have been so appointed by the
Majority Benefited Parties and shall have accepted such appointment within 30
days after the notice of the intent of the Collateral Agent to resign or the
removal of the Collateral Agent, then the retiring Collateral Agent may, on
behalf of the other Parties, appoint a successor Collateral Agent. Any successor
Collateral Agent appointed pursuant to this clause shall be a commercial bank or
other financial institution organized under the laws of the United States of
America or any state thereof having (1) a combined capital and surplus of at
least $250,000,000 and (2) a rating upon its long-term senior unsecured
indebtedness of "A-2" or better by Moody's Investors Service, Inc. or "A" or
better by Standard & Poor's Corporation.

         Upon the acceptance by a successor Collateral Agent of any appointment
as the Collateral Agent hereunder, such successor Collateral Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring or removed Collateral Agent, and the retiring or
removed Collateral Agent shall thereupon be discharged

                                      -15-
<PAGE>   18

from its duties and obligations hereunder. After any retiring or removed
Collateral Agent's resignation or removal hereunder as the Collateral Agent, the
provisions of this Section 8 shall continue in effect for its benefit in respect
of any actions taken or omitted to be taken by it while it was acting as the
Collateral Agent.

         (h) In no event shall the Collateral Agent or any Party be liable or
responsible for any funds or investments of funds held by the Obligors or any of
their Affiliates.

         (i) With respect to its pro rata share of the Benefited Obligations,
Bank of America, N.A. (or its successor as the Collateral Agent), in its
capacity as Lender shall have and may exercise the same rights and powers
hereunder and is subject to the same obligations and liabilities as and to the
extent set forth herein for any other Benefited Party, all as if Bank of
America, N.A. were not appointed as the Collateral Agent pursuant hereto. The
terms "Benefited Parties," "Lenders" or "Required Lenders" or any similar terms
shall, unless the context clearly otherwise indicates, include the Collateral
Agent or any Affiliate (or its successor as the Collateral Agent) in its
capacity as Lender and in its individual capacity as a Benefited Party, Lender
or one of the Required Lenders. Bank of America, N.A. and its Affiliates may
lend money to, and generally engage in any kind of business with, any Obligor as
if Bank of America, N.A. were not acting as the Collateral Agent pursuant hereto
and without any duty to account therefor to the Benefited Parties. Without
limiting the foregoing, each Benefited Party acknowledges that (i) Bank of
America, N.A. is both a Lender and an agent under the Credit Agreement and a
collateral agent under the Bank Security Documents, (ii) Bank of America, N.A.
may continue to engage in any credit decisions with respect to the Credit
Agreement and any Hedging Transaction under which it is a Lender without any
duty to account therefor to the Benefited Parties by reason of its appointment
as the Collateral Agent and (iii) Bank of America, N.A. is acting as a
collateral agent under the Noteholders' Security Documents.

         (j) Each Party acknowledges that it has, independently and without
reliance upon the Collateral Agent or any other Party and based upon such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement and the other Financing
Agreements to which it is a party. Each Party also acknowledges that it will,
independently and without reliance upon the Collateral Agent or any other Party
and based upon such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking
action under the Financing Agreements to which it is a party.

SECTION 9.      INVALIDATED PAYMENTS.

         If any amount distributed by the Collateral Agent to a Benefited Party
in accordance with the provisions of this Agreement is subsequently required to
be returned or repaid by the Collateral Agent or such Benefited Party to the
Obligors or any Affiliate thereof or their respective representatives or
successors in interest, whether by court order, settlement or otherwise (a
"Repayment Event"), the Collateral Agent shall thereafter apply monies
(including, without limitation, Proceeds) received in a manner consistent with
the terms of this Agreement such that all Benefited Parties receive such portion
of the payments as would have been received had the original payment which gave
rise to such Repayment Event not occurred. If a

                                      -16-
<PAGE>   19

Repayment Event occurs which results in the Collateral Agent being required to
return or repay any amount distributed by it under this Agreement, the Benefited
Party to which such amount was distributed shall, promptly upon its receipt of a
notice thereof from the Collateral Agent, pay the Collateral Agent such amount;
provided, that if any Benefited Party shall fail to promptly pay such amount to
the Collateral Agent, the Collateral Agent may deduct such amount from any
amounts payable thereafter to such Benefited Party under this Agreement.

SECTION 10.     MISCELLANEOUS.

         (a) The Obligors acknowledge that they have actual notice of the terms
of this Agreement, consent hereto, agree to be bound by the terms hereof and
covenant with each of the Parties that they will at all times during the
continuance hereof comply and act in accordance with the terms and provisions of
this Agreement, and cause each of the other Obligors to do so. The Obligors also
acknowledge that the terms of this Agreement are for the sole benefit of the
Lenders and Noteholders, and that nothing in this Agreement shall be construed
as conferring any rights upon the Obligors or any third party.

         (b) All notices and other communications provided for herein shall be
in writing and may be sent by overnight air courier, facsimile communication or
United States mail and shall be deemed to have been given when delivered by
overnight air courier, upon receipt of facsimile communication if concurrently
with transmission of such facsimile, a copy thereof shall be sent by overnight
courier to the address specified for such notice or communication, or five
business days after deposit in the United States mail, registered or certified,
with postage prepaid and properly addressed. For the purposes hereof, the
addresses of the Parties hereto (until notice of a change thereof is delivered
as provided in this Section 10(b)) shall (i) in the case of the Collateral Agent
and the Agent, be as set forth under each such Party's name on the signature
pages (including acknowledgments) hereof and (ii) in the case of the
Noteholders, be as set forth in Schedule A to the Note Agreement or any
supplement thereto.

         (c) This Agreement may be amended, modified or waived only by an
instrument or instruments in writing signed by the Required Noteholders, Agent
and the Collateral Agent; provided, however, that Section 7 of this Agreement
may not be amended or modified without the written consent of the Issuer.

         (d) This Agreement shall be binding upon and inure to the benefit of
the Collateral Agent, each Party and their respective successors and assigns. In
the event that the holder of any Credit Obligation or Senior Note shall transfer
such Credit Obligation or Senior Note, it shall promptly so advise the
Collateral Agent and the Issuer. Each transferee of any Credit Obligation or
Senior Note shall take such Credit Obligation or Senior Note subject to the
provisions of this Agreement and to any request made, waiver or consent given or
other action taken or authorized hereunder, by each previous holder of such
Credit Obligation or Senior Note, prior to the receipt by the Collateral Agent
of written notice of such transfer; and, except as expressly otherwise provided
in such notice, the Collateral Agent and the Issuer shall be entitled to assume
conclusively that the transferee named in such notice shall thereafter be vested
with all rights and powers as a Party under this Agreement. Upon the written
request of any Party, the Collateral

                                      -17-
<PAGE>   20

Agent will provide any Party with copies of any written notices of transfer
received pursuant hereto.

         (e) This Agreement shall continue to be effective among the Parties
even though a case or proceeding under any bankruptcy or insolvency law or any
proceeding in the nature of a receivership, whether or not under any insolvency
law, shall be instituted with respect to the Issuer or any other Obligor, or any
portion of the property or assets of the Issuer or any other Obligor, and all
actions taken by the Parties with regard to such proceeding shall be by the
Majority Benefited Parties; provided, however, that nothing herein shall be
interpreted to preclude any Party from filing a proof of claim with respect to
its Benefited Obligations or from casting its vote, or abstaining from voting,
for or against confirmation of a plan of reorganization in a case of bankruptcy,
insolvency or similar law in its sole discretion; provided further that in the
event any Party fails to file a proof of claim, the Collateral Agent may file a
proof of claim on behalf of such party in respect of a Benefited Obligation.

         (f) Each Party hereto agrees to do such further acts and things and to
execute and deliver such additional agreements, powers and instruments as any
other Party hereto may reasonably request to carry into effect the terms,
provisions and purposes of this Agreement or to better assure and confirm unto
such other Party hereto its respective rights, powers and remedies hereunder.

         (g) This Agreement may be executed in any number of counterparts, all
of which taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such counterpart. A
telecopy of the signature of any party on any counterpart shall be effective as
the signature of the party executing such counterpart for purposes of
effectiveness of this Agreement.

         (h) This Agreement shall become effective immediately upon execution by
the Parties and shall continue in full force and effect among the Parties until
one year following the date upon which all Benefited Obligations are irrevocably
paid in full and all commitments under the Credit Agreement have been
terminated.

         (i) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF TEXAS.

         (j) Headings of sections of this Agreement have been included herein
for convenience only and should not be considered in interpreting this
Agreement.

         (k) Nothing in this Agreement or the Security Documents, expressed or
implied, is intended or shall be construed to confer upon or give to any Person
other than the Benefited Parties, any right, remedy or claim under or by reason
of any such agreement or any covenant, condition or stipulation herein or
therein contained.

         (l) In case any provision in or obligation under this Agreement shall
be invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

                                      -18-
<PAGE>   21

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
duly executed as of the date and year first written above.

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

                                         By
                                           -----------------------------------
                                           Name:  Craig S. Wall
                                           Title: Senior Vice President

                                         Notice Address:

                                         Bank of America, N.A.
                                         Attn: Craig S. Wall
                                         Telecopier No.:  (713) 247-7748

                                         BANK OF AMERICA, N.A., individually
                                         and as Administrative Agent for the
                                         Lenders

                                         By
                                           -----------------------------------
                                           Name:  Craig S. Wall
                                           Title: Senior Vice President

                                         Notice Address:

                                         Bank of America, N.A.
                                         Attn:  Craig S. Wall
                                         Telecopier No.:  (713) 247-7748

                                      -19-
<PAGE>   22

                                      -----------------------------------,
                                      as a Noteholder

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

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

                                      -----------------------------------,
                                      as a Noteholder

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

                                      -20-
<PAGE>   23

         The undersigned (the "Obligors") hereby acknowledge and agree to the
foregoing terms and provisions contained in this Intercreditor Agreement. By
executing this Intercreditor Agreement, the Obligors agree to be bound by the
provisions thereof as they relate to the relative rights of the Benefited
Parties as among such Benefited Parties; provided, however, that nothing in this
Intercreditor Agreement shall amend, modify, change or supersede the respective
terms of the Financing Agreements as between the Benefited Parties or any of
them and the Obligors. In the event of any conflict or inconsistency between the
terms of this Intercreditor Agreement and the Financing Agreements, the
Financing Agreements shall govern as between the Benefited Parties thereto and
the Obligors further agree that the terms of this Intercreditor Agreement shall
not give the Obligors any substantive rights vis a vis any Benefited Party or
the Collateral Agent and that it shall not use the violation of this
Intercreditor Agreement by any of the Parties hereto as a defense to the
enforcement by any Benefited Party under any Financing Agreement, nor assert
such violation as a counterclaim or basis for set-off or recoupment against any
of them. The Obligors further acknowledge and agree that the scope of the agency
granted by this Intercreditor Agreement to the Collateral Agent hereunder is
strictly limited by this Intercreditor Agreement and is a separate and distinct
grant from the grants of agency contained in the Credit Agreement and the
Noteholders' Security Agreement. By its execution hereof, the Obligors hereby
represent to each of the Benefited Parties and the Collateral Agent that the
execution, delivery and performance by the Obligors of the Note Agreement and
the other Noteholder Documents does not constitute a violation of any of the
provisions of the Credit Agreement or other Bank Documents.

    [SUBSIDIARY GUARANTORS]                     QUANTA SERVICES, INC.

    By                                          By
      -----------------------------               ---------------------------
                              Title                                     Title
      ------------------------                    ----------------------

                                      -21-
<PAGE>   24

                            FORM OF ACKNOWLEDGMENT TO

                  INTERCREDITOR AGREEMENT FOR SUCCESSOR LENDERS

         Reference is hereby made to the Intercreditor Agreement dated as of
March 23, 2000 (the "Agreement"), among Bank of America, N.A., as Agent for the
Lenders party to the Credit Agreement and Bank of America, N.A., as the
Collateral Agent, and the Noteholders party thereto and certain other Parties,
if any, thereto. The undersigned Successor Lender or its agent has entered into
a Credit Agreement dated as of _______________ with Quanta Services, Inc. and
desires the Credit Obligations with respect thereto to be secured by the
Security Documents and constitute Benefited Obligations under the Agreement. The
undersigned has obtained the consent of the Collateral Agent under the Agreement
and acknowledges the terms of the Agreement and agrees to be bound thereby.

                                                                              ,
                                        --------------------------------------
                                        as a Successor Lender

                                        By
                                          ------------------------------------
                                        Title
                                             ----------------------------------
                                        Date
                                            -----------------------------------

                                        Notice Address:

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

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

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

                                        Acknowledged and Agreed:

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

                                        By
                                          ------------------------------------
                                        Title
                                             ----------------------------------
                                        Date
                                            -----------------------------------

                                        QUANTA SERVICES, INC.

                                        By
                                          ------------------------------------
                                        Title
                                             ----------------------------------
                                        Date
                                            -----------------------------------

                                        --------------------------------------
                                        (Other Obligors)

                                        By
                                          ------------------------------------
                                        Title
                                             ----------------------------------
                                        Date
                                            -----------------------------------

                                    EXHIBIT A
                          (to Intercreditor Agreement)

<PAGE>   25

                            FORM OF ACKNOWLEDGMENT TO

               INTERCREDITOR AGREEMENT FOR ADDITIONAL NOTEHOLDERS

         Reference is hereby made to the Intercreditor Agreement dated as of
March 23, 2000 (the "Agreement"), among Bank of America, N.A., as Agent for the
Lenders party to the Credit Agreement referenced therein and Bank of America,
N.A., as the Collateral Agent, and the Noteholders party thereto and certain
other Parties, if any, thereto. The undersigned has entered into a supplement to
the Note Agreement with Quanta Services, Inc. and desires the issued thereunder
to be secured by the Security Documents and constitute Benefited Obligations
under the Agreement. The undersigned has obtained the consent of the Collateral
Agent under the Agreement and acknowledges the terms of the Agreement and agrees
to be bound thereby.

                                                                              ,
                                        --------------------------------------
                                        as a Successor Lender

                                        By
                                          ------------------------------------
                                        Title
                                             ----------------------------------
                                        Date
                                            -----------------------------------

                                        Notice Address:

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

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

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

                                        Acknowledged and Agreed:

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

                                        By
                                          ------------------------------------
                                        Title
                                             ----------------------------------
                                        Date
                                            -----------------------------------

                                        QUANTA SERVICES, INC.

                                        By
                                          ------------------------------------
                                        Title
                                             ----------------------------------
                                        Date
                                            -----------------------------------

                                        --------------------------------------
                                        (Other Obligors)

                                        By
                                          ------------------------------------
                                        Title
                                             ----------------------------------
                                        Date
                                            -----------------------------------

                                    EXHIBIT B
                          (to Intercreditor Agreement)

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