Document:

Exhibit 10.2

 

SENOMYX, INC.

2004 EQUITY INCENTIVE PLAN

 

NON-EMPLOYEE DIRECTORS’ STOCK OPTION PROGRAM

STOCK OPTION AGREEMENT

(NONSTATUTORY STOCK OPTION)

 

Pursuant
to your Stock Option Grant Notice (“Grant Notice”) and this Stock Option
Agreement, Senomyx, Inc. (the “Company”) has granted you an option under
its 2004 Equity Incentive Plan (the “Plan”) and Non-Employee Directors’ Stock
Option Program to purchase the number of shares of the Company’s Common Stock
indicated in your Grant Notice at the exercise price indicated in your Grant
Notice.  Defined terms not explicitly
defined in this Stock Option Agreement but defined in the Plan shall have the
same definitions as in the Plan.

 

The
details of your option are as follows:

 

1.             VESTING.  Subject to the limitations contained herein,
your option will vest as provided in your Grant Notice, provided that vesting
will cease upon the termination of your Continuous Service.  In addition, if the Company is subject to a
Change in Control before your Continuous Service terminates, then all of the
unvested shares subject to this option shall become fully vested and
exercisable immediately prior to the effective date of such Change in Control.

 

2.             NUMBER OF SHARES AND EXERCISE PRICE.  The number of shares of Common Stock subject
to your option and your exercise price per share referenced in your Grant
Notice may be adjusted from time to time for Capitalization Adjustments, as
provided in the Plan.

 

3.             EXERCISE
PRIOR TO VESTING (“EARLY EXERCISE”).  If permitted
in your Grant Notice (i.e., the “Exercise Schedule” indicates that “Early
Exercise” of your option is permitted) and subject to the provisions of your
option, you may elect at any time that is both (i) during the period of
your Continuous Service and (ii) during the term of your option, to
exercise all or part of your option, including the nonvested portion of your
option; provided, however, that:

 

(a)           a partial exercise of your option shall
be deemed to cover first vested shares of Common Stock and then the earliest vesting
installment of unvested shares of Common Stock;

 

(b)           any shares of Common Stock so purchased
from installments that have not vested as of the date of exercise shall be
subject to the purchase option in favor of the Company as described in the
Company’s form of Early Exercise Stock Purchase Agreement; and

 

(c)           you shall enter into the Company’s form
of Early Exercise Stock Purchase Agreement with a vesting schedule that will
result in the same vesting as if no early exercise had occurred.

 

 

4.             METHOD OF PAYMENT.  Payment of the exercise price is due in full
upon exercise of all or any part of your option.  You may elect to make payment of the exercise
price in cash or by check or in any other manner permitted
by your Grant Notice, which may include one or more of the
following:

 

(d)           In the Company’s sole discretion at the time your
option is exercised and provided that at the time of exercise the Common Stock
is publicly traded and quoted regularly in The Wall Street Journal,
pursuant to a program developed under Regulation T as promulgated by the
Federal Reserve Board that, prior to the issuance of Common Stock, results in
either the receipt of cash (or check) by the Company or the receipt of
irrevocable instructions to pay the aggregate exercise price to the Company
from the sales proceeds.

 

(e)           Provided that at the time of exercise the Common
Stock is publicly traded and quoted regularly in The Wall
Street Journal, by delivery of already-owned shares of Common Stock
either that you have held for the period required to avoid a charge to the
Company’s reported earnings (generally six months) or that you did not acquire,
directly or indirectly from the Company, that are owned free and clear of any
liens, claims, encumbrances or security interests, and that are valued at Fair
Market Value on the date of exercise.  “Delivery”
for these purposes, in the sole discretion of the Company at the time you
exercise your option, shall include delivery to the Company of your attestation
of ownership of such shares of Common Stock in a form approved by the
Company.  Notwithstanding the foregoing,
you may not exercise your option by tender to the Company of Common Stock to
the extent such tender would violate the provisions of any law, regulation or
agreement restricting the redemption of the Company’s stock.

 

5.             WHOLE SHARES.  You may exercise your option only for whole
shares of Common Stock.

 

6.             SECURITIES LAW COMPLIANCE.  Notwithstanding anything to the contrary
contained herein, you may not exercise your option unless the shares of Common
Stock issuable upon such exercise are then registered under the Securities Act
or, if such shares of Common Stock are not then so registered, the Company has
determined that such exercise and issuance would be exempt from the registration
requirements of the Securities Act.  The
exercise of your option must also comply with other applicable laws and
regulations governing your option, and you may not exercise your option if the
Company determines that such exercise would not be in material compliance with
such laws and regulations.

 

7.             TERM.  You may not exercise your option before the
commencement of its term or after its term expires.  The term of your option commences on the Date
of Grant and expires upon the earliest of the following:

 

(a)           twelve (12) months after the termination of your
Continuous Service for any reason other than your Disability or death, provided
that if during any part of such twelve (12) month period your option is not
exercisable solely because of the condition set forth in the preceding
paragraph relating to “Securities Law Compliance,” your option shall not expire
until the earlier of the Expiration Date or until it shall have been
exercisable for an aggregate period of twelve (12) months after the termination
of your Continuous Service;

 

2

 

(b)           twelve (12) months after the termination of your
Continuous Service due to your Disability or upon a Change in Control;

 

(c)           eighteen (18) months after your death if you die
either during your Continuous Service or within twelve (12) months after your
Continuous Service terminates;

 

(d)           immediately upon the termination of your
Continuous Service for Cause;

 

(e)           the Expiration Date indicated in your Grant
Notice; or

 

(f)            the day before the
tenth (10th) anniversary of
the Date of Grant.

 

8.             EXERCISE.

 

(a)           You may exercise the vested portion of your
option (and the
unvested portion of your option if your Grant Notice so permits) during its term by delivering a Notice of Exercise
(in a form designated by the Company) together with the exercise price to the
Secretary of the Company, or to such other person as the Company may designate,
during regular business hours, together with such additional documents as the
Company may then require.

 

(b)           By exercising your option you agree that, as a
condition to any exercise of your option, the Company may require you to enter
into an arrangement providing for the payment by you to the Company of any tax
withholding obligation of the Company arising by reason of (1) the
exercise of your option, (2) the lapse of any substantial risk of
forfeiture to which the shares of Common Stock are subject at the time of
exercise, or (3) the disposition of shares of Common Stock acquired upon
such exercise.

 

9.             TRANSFERABILITY.  Your option is not transferable, except (i) by
will or by the laws of descent and distribution, (ii) with the prior
written approval of the Company, by instrument to an inter vivos or
testamentary trust, in a form accepted by the Company, in which the option is
to be passed to beneficiaries upon the death of the trustor (settlor) and (iii) with
the prior written approval of the Company, by gift, in a form accepted by the
Company, to a permitted transferee under Rule 701 of the Securities Act.

 

10.          OPTION NOT A SERVICE CONTRACT.  Your option is not an employment or service
contract, and nothing in your option shall be deemed to create in any way
whatsoever any obligation on your part to continue in the employ of the Company
or an Affiliate, or of the Company or an Affiliate to continue your
employment.  In addition, nothing in your
option shall obligate the Company or an Affiliate, their respective
shareholders, Boards of Directors, Officers or Employees to continue any
relationship that you might have as a Director or Consultant for the Company or
an Affiliate.

 

11.          WITHHOLDING OBLIGATIONS.

 

(a)           At the time you exercise your option, in whole or
in part, or at any time thereafter as requested by the Company, you hereby
authorize withholding from payroll and any other amounts payable to you, and
otherwise agree to make adequate provision as directed by the Company
(including by means of a “cashless exercise” pursuant to a program developed
under

 

3

 

Regulation T as promulgated by
the Federal Reserve Board to the extent directed by the Company), for any sums
required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or an Affiliate, if any, which arise in connection
with your option.

 

(b)           The Company may, in its sole discretion, and in
compliance with any applicable conditions or restrictions of law, withhold from
fully vested shares of Common Stock otherwise issuable to you upon the exercise
of your option a number of whole shares of Common Stock having a Fair Market
Value, determined by the Company as of the date of exercise, not in excess of
the minimum amount of tax required to be withheld by law.  Any adverse consequences to you arising in
connection with such share withholding procedure shall be your sole
responsibility.

 

(c)           You may not
exercise your option unless the tax withholding obligations of the Company
and/or any Affiliate are satisfied. 
Accordingly, you may not be able to exercise your option when desired
even though your option is vested, and the Company shall have no obligation to
issue a certificate for such shares of Common Stock or release such shares of
Common Stock from any escrow provided for herein.

 

(d)           If any payment or benefit you would
receive pursuant to a Change in Control from the Company or otherwise (“Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G
of the Code, and (ii) but for this sentence, be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment
shall be equal to the Reduced Amount. 
The “Reduced Amount” shall be either (x) the largest portion of the
Payment that would result in no portion of the Payment being subject to the
Excise Tax or (y) the largest portion, up to and including the total, of
the Payment, whichever amount, after taking into account all applicable
federal, state and local employment taxes, income taxes, and the Excise Tax
(all computed at the highest applicable marginal rate), results in your
receipt, on an after-tax basis, of the greater amount of the Payment
notwithstanding that all or some portion of the Payment may be subject to the
Excise Tax. If a reduction in payments or benefits constituting “parachute
payments” is necessary so that the Payment equals the Reduced Amount, reduction
shall occur in the following order unless you elect in writing a different
order (provided, however, that such election
shall be subject to Company approval if made on or after the effective date of
the event that triggers the Payment): reduction of cash payments; cancellation
of accelerated vesting of Stock Awards; reduction of employee benefits.  In the event that acceleration of vesting of
Stock Award compensation is to be reduced, such acceleration of vesting shall
be cancelled in the reverse order of the date of grant of your Stock Awards
(i.e., earliest granted Stock Award cancelled last) unless you elect in writing
a different order for cancellation.

 

The accounting firm
engaged by the Company for general audit purposes as of the day prior to the
effective date of the Change in Control shall perform the foregoing
calculations.  If the accounting firm so
engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, the Company shall appoint a nationally
recognized accounting firm to make the determinations required hereunder.  The Company shall bear all expenses with
respect to the determinations by such accounting firm required to be made
hereunder.

 

4

 

The accounting firm
engaged to make the determinations hereunder shall provide its calculations,
together with detailed supporting documentation, to you and the Company within
fifteen (15) calendar days after the date on which your right to a Payment is
triggered (if requested at that time by you or the Company) or such other time
as requested by you or the Company.  If
the accounting firm determines that no Excise Tax is payable with respect to a
Payment, either before or after the application of the Reduced Amount, it shall
furnish you and the Company with an opinion reasonably acceptable to you that
no Excise Tax will be imposed with respect to such Payment.  Any good faith determinations of the
accounting firm made hereunder shall be final, binding and conclusive upon you
and the Company.

 

12.          NOTICES.  Any notices provided for in your option or
the Plan shall be given in writing and shall be deemed effectively given upon
receipt or, in the case of notices delivered by mail by the Company to you,
five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company.

 

13.          GOVERNING PLAN DOCUMENT.  Your option is subject to all the provisions
of the Plan, the provisions of which are hereby made a part of your option, and
is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan.  In the event of any conflict
between the provisions of your option and those of the Plan, the provisions of
the Plan shall control.

 

5Exhibit 10.1

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of September 23, 2009

 

among

 

ENERGYSOLUTIONS, LLC

as Borrower

 

ENERGYSOLUTIONS, INC.

as Parent

 

THE LENDERS FROM TIME TO TIME PARTY HERETO

 

and

 

INITIAL ISSUING BANKS NAMED HEREIN

as Lenders and Initial Issuing Banks

 

CITIGROUP GLOBAL MARKETS INC.

as Sole Lead Arranger and Bookrunner

 

and

 

CITICORP NORTH AMERICA, INC.

as Administrative Agent

 

Cahill Gordon & Reindel LLP

80 Pine Street

New York, New York  10005

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.

  
	
   

  	
   

  	
   

  
	
  Definitions

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Defined Terms

  	
  2

  
	
  Section 1.2

  	
  Defined Agreements as Modified

  	
  37

  
	
  Section 1.3

  	
  Computation of Time Periods; Other Definitional Provisions

  	
  37

  
	
  Section 1.4

  	
  Accounting Terms

  	
  37

  
	
  Section 1.5

  	
  Pro Forma Calculations

  	
  37

  
	
   

  
	
  ARTICLE
  2.

  
	
   

  	
   

  	
   

  
	
  Loans
  and Letters of Credit

  
	
   

  
	
  Section 2.1

  	
  The Loans and the Letters of Credit

  	
  37

  
	
  Section 2.2

  	
  Manner of Borrowing and Disbursement

  	
  39

  
	
  Section 2.3

  	
  Interest

  	
  44

  
	
  Section 2.4

  	
  Repayment

  	
  45

  
	
  Section 2.5

  	
  Fees

  	
  47

  
	
  Section 2.6

  	
  Optional Prepayments and Application of Prepayments

  	
  48

  
	
  Section 2.7

  	
  Synthetic Deposit Reductions

  	
  48

  
	
  Section 2.8

  	
  Mandatory Prepayments

  	
  49

  
	
  Section 2.9

  	
  Evidence of Debt

  	
  50

  
	
  Section 2.10

  	
  Manner of Payment

  	
  51

  
	
  Section 2.11

  	
  Reimbursement

  	
  53

  
	
  Section 2.12

  	
  Pro Rata Treatment

  	
  54

  
	
  Section 2.13

  	
  Capital Adequacy

  	
  54

  
	
  Section 2.14

  	
  Taxes

  	
  55

  
	
  Section 2.15

  	
  Increase in Commitments

  	
  58

  
	
  Section 2.16

  	
  Synthetic Deposit Account

  	
  60

  
	
  Section 2.17

  	
  Synthetic Letters of Credit

  	
  63

  
	
  Section 2.18

  	
  Termination and Reduction of Commitments

  	
  65

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3.

  
	
   

  	
   

  	
   

  
	
  Conditions
  Precedent

  
	
   

  
	
  Section 3.1

  	
  Conditions Precedent to Initial Loans

  	
  66

  
	
  Section 3.2

  	
  Conditions Precedent to Each Loan

  	
  70

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4.

  
	
   

  	
   

  	
   

  
	
  Representations
  and Warranties

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Representations and Warranties

  	
  71

  
	
  Section 4.2

  	
  Survival of Representations and Warranties, Etc.

  	
  80

  
	
   

  
	
  ARTICLE
  5.

  
	
   

  	
   

  	
   

  
	
  General
  Covenants

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Preservation of Existence and Similar Matters

  	
  81

  
	
  Section 5.2

  	
  Business; Compliance with Applicable Law

  	
  81

  
	
  Section 5.3

  	
  Maintenance of Properties

  	
  81

  
	
  Section 5.4

  	
  Accounting Methods and Financial Records

  	
  81

  
	
  Section 5.5

  	
  Insurance

  	
  82

  
	
  Section 5.6

  	
  Payment of Taxes and Claims

  	
  83

  
	
  Section 5.7

  	
  Visits and Inspections

  	
  83

  
	
  Section 5.8

  	
  Payment of Indebtedness; Loans

  	
  83

  
	
  Section 5.9

  	
  Use of Proceeds

  	
  84

  
	
  Section 5.10

  	
  Real Estate

  	
  84

  
	
  Section 5.11

  	
  Indemnity

  	
  84

  
	
  Section 5.12

  	
  Interest Rate Hedging

  	
  85

  
	
  Section 5.13

  	
  Covenants Regarding Formation of Subsidiaries and the
  Making of Acquisitions

  	
  86

  
	
  Section 5.14

  	
  Maintenance of Rating

  	
  87

  
	
  Section 5.15

  	
  Environmental Compliance

  	
  87

  
	
  Section 5.16

  	
  Required Consents and Transfer of Licenses in Event of
  Default

  	
  88

  
	
  Section 5.17

  	
  Subordination of Intercompany Loans

  	
  89

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6.

  
	
   

  	
   

  	
   

  
	
  Information
  Covenants

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Quarterly and Interim Financial Statements and Information

  	
  89

  
	
  Section 6.2

  	
  Annual Financial Statements and Information

  	
  89

  
	
  Section 6.3

  	
  Performance Certificates

  	
  90

  
	
  Section 6.4

  	
  Copies of Other Reports

  	
  90

  
	
  Section 6.5

  	
  Notice of Litigation and Other Matters

  	
  91

  
	
   

  
	
  ARTICLE
  7.

  
	
   

  	
   

  	
   

  
	
  Negative
  Covenants

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Indebtedness of Parent, EnergySolutions and Its
  Subsidiaries

  	
  92

  
	
  Section 7.2

  	
  Limitation on Liens

  	
  95

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 7.3

  	
  Amendment and Waiver

  	
  96

  
	
  Section 7.4

  	
  Liquidation, Merger, Disposition of Assets

  	
  96

  
	
  Section 7.5

  	
  Limitation on Guarantees

  	
  97

  
	
  Section 7.6

  	
  Investments and Acquisitions

  	
  97

  
	
  Section 7.7

  	
  Financial Covenants

  	
  100

  
	
  Section 7.8

  	
  Affiliate Transactions and Restricted Payments

  	
  101

  
	
  Section 7.9

  	
  Real Estate

  	
  102

  
	
  Section 7.10

  	
  ERISA Liabilities

  	
  102

  
	
  Section 7.11

  	
  Limitation on Preferred Stock

  	
  102

  
	
  Section 7.12

  	
  Negative Pledge

  	
  102

  
	
  Section 7.13

  	
  Payment Restrictions Affecting Subsidiaries

  	
  103

  
	
  Section 7.14

  	
  Speculative Transactions

  	
  104

  
	
  Section 7.15

  	
  Name, Jurisdiction of Organization and Business

  	
  104

  
	
  Section 7.16

  	
  [Reserved]

  	
  104

  
	
  Section 7.17

  	
  Permitted Activities of Holdings and Parent

  	
  104

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  8.

  
	
   

  	
   

  	
   

  
	
  Default

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Events of Default

  	
  105

  
	
  Section 8.2

  	
  Remedies

  	
  108

  
	
  Section 8.3

  	
  Payments Subsequent to Declaration of Event of Default

  	
  109

  
	
  Section 8.4

  	
  Actions in Respect of the Letters of Credit upon Default

  	
  109

  
	
  Section 8.5

  	
  Certain Cure Rights

  	
  109

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  9.

  
	
   

  	
   

  	
   

  
	
  The
  Agents

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
  Appointment and Authorization

  	
  110

  
	
  Section 9.2

  	
  Interest Holders

  	
  111

  
	
  Section 9.3

  	
  Consultation with Counsel

  	
  111

  
	
  Section 9.4

  	
  Documents

  	
  111

  
	
  Section 9.5

  	
  CNAI and Affiliates

  	
  111

  
	
  Section 9.6

  	
  Responsibility of the Administrative Agent and the
  Collateral Agent

  	
  111

  
	
  Section 9.7

  	
  Collateral and Guaranty Matters

  	
  112

  
	
  Section 9.8

  	
  Action by the Administrative Agent and the Collateral Agent

  	
  113

  
	
  Section 9.9

  	
  Notice of Default or Event of Default

  	
  113

  
	
  Section 9.10

  	
  Responsibility Disclaimed

  	
  114

  
	
  Section 9.11

  	
  Indemnification

  	
  114

  
	
  Section 9.12

  	
  Credit Decision

  	
  116

  
	
  Section 9.13

  	
  Successor Agents

  	
  116

  
	
  Section 9.14

  	
  Delegation of Duties

  	
  117

  
	
  Section 9.15

  	
  Additional Agents

  	
  118

  
	
  Section 9.16

  	
  Administrative Agent May File Proofs of Claim

  	
  118

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 9.17

  	
  Security Documents

  	
  119

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10.

  
	
   

  	
   

  	
   

  
	
  Change
  in Circumstances Affecting Fixed Rate Loans

  
	
   

  	
   

  	
   

  
	
  Section 10.1

  	
  Eurodollar Basis Determination Inadequate or Unfair

  	
  119

  
	
  Section 10.2

  	
  Illegality

  	
  119

  
	
  Section 10.3

  	
  Increased Costs

  	
  120

  
	
  Section 10.4

  	
  Effect on Other Loans

  	
  122

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11.

  
	
   

  	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  
	
  Section 11.1

  	
  Notices

  	
  122

  
	
  Section 11.2

  	
  Costs and Expenses

  	
  124

  
	
  Section 11.3

  	
  Waivers

  	
  125

  
	
  Section 11.4

  	
  Set-Off

  	
  125

  
	
  Section 11.5

  	
  Binding Effect and Assignment

  	
  126

  
	
  Section 11.6

  	
  Accounting Principles

  	
  129

  
	
  Section 11.7

  	
  Counterparts

  	
  129

  
	
  Section 11.8

  	
  Governing Law and Jurisdiction

  	
  129

  
	
  Section 11.9

  	
  Severability

  	
  130

  
	
  Section 11.10

  	
  Interest

  	
  130

  
	
  Section 11.11

  	
  Table of Contents and Headings

  	
  131

  
	
  Section 11.12

  	
  Amendment and Waiver

  	
  131

  
	
  Section 11.13

  	
  Entire Agreement

  	
  133

  
	
  Section 11.14

  	
  Other Relationships

  	
  133

  
	
  Section 11.15

  	
  Directly or Indirectly

  	
  133

  
	
  Section 11.16

  	
  Reliance on and Survival of Various Provisions

  	
  133

  
	
  Section 11.17

  	
  Senior Debt

  	
  133

  
	
  Section 11.18

  	
  Obligations Several

  	
  133

  
	
  Section 11.19

  	
  Confidentiality

  	
  134

  
	
  Section 11.20

  	
  No Liability of the Issuing Banks

  	
  134

  
	
  Section 11.21

  	
  Patriot Act Notice

  	
  135

  
	
  Section 11.22

  	
  Performance

  	
  135

  
	
  Section 11.23

  	
  The Platform

  	
  135

  
	
  Section 11.24

  	
  Conversion of Currencies

  	
  136

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  12.

  
	
   

  	
   

  	
   

  
	
  Waiver
  of Jury Trial

  
	
   

  	
   

  	
   

  
	
  Section 12.1

  	
  Waiver of Jury Trial

  	
  137

  

 

iv

 

EXHIBITS

 

	
  Exhibit A

  	
  -

  	
  Form of
  EnergySolutions/Parent/Subsidiary Pledge Agreements

  
	
  Exhibit B

  	
  -

  	
  [Reserved]

  
	
  Exhibit C

  	
  -

  	
  Form of
  Performance Certificate

  
	
  Exhibit D

  	
  -

  	
  Form of
  Request for Loan

  
	
  Exhibit E

  	
  -

  	
  Form of
  Revolving Note

  
	
  Exhibit F

  	
  -

  	
  [Reserved]

  
	
  Exhibit G

  	
  -

  	
  Form of
  Request for Term Loan Eurodollar Basis

  
	
  Exhibit H

  	
  -

  	
  Form of
  Guaranty

  
	
  Exhibit I

  	
  -

  	
  Form of
  EnergySolutions Security Agreement

  
	
  Exhibit J-1

  	
  -

  	
  Form of
  Parent Security Agreement

  
	
  Exhibit J-2

  	
  -

  	
  Form of
  Subsidiary Security Agreement

  
	
  Exhibit K

  	
  -

  	
  Form of
  Term Note

  
	
  Exhibit L

  	
  -

  	
  Form of
  EnergySolutions Loan Certificate

  
	
  Exhibit M

  	
  -

  	
  Form of
  Subsidiary Loan Certificate (Corporation)

  
	
  Exhibit N

  	
  -

  	
  Form of
  Subsidiary Loan Certificate (Partnership)

  
	
  Exhibit O

  	
  -

  	
  Form of
  Subsidiary Loan Certificate (Limited Liability Company)

  
	
  Exhibit P

  	
  -

  	
  Form of
  Assignment and Assumption Agreement

  
	
  Exhibit Q

  	
  -

  	
  Form of
  Subordination Agreement

  
	
  Exhibit R

  	
  -

  	
  Form of
  Perfection Certificate

  
	
  Exhibit S

  	
  -

  	
  Loan Party Acknowledgment

  

 

v

 

SCHEDULES

 

	
  Schedule
  1

  	
  -

  	
  Subsidiaries
  and Investments of Parent

  
	
  Schedule
  2

  	
  -

  	
  Licenses

  
	
  Schedule
  3

  	
  -

  	
  Liens
  of Record as of the Third Amended and Restated Credit Agreement Effective
  Date

  
	
  Schedule
  4-A

  	
  -

  	
  Revolving
  Commitments of the Revolving Lenders and Such Lenders’ Addresses for Notice

  
	
  Schedule
  4-B

  	
  -

  	
  Term
  Loan Commitments of the Term Lenders and Such Lenders’ Addresses for Notice

  
	
  Schedule
  4-C

  	
  -

  	
  Synthetic
  Deposit Percentages of the Synthetic Lenders and such Lenders’ Addresses for
  Notice

  
	
  Schedule
  5

  	
  -

  	
  [Reserved]

  
	
  Schedule
  6

  	
  -

  	
  Consents,
  Applicable Law, Conflicts and Liens

  
	
  Schedule
  7

  	
  -

  	
  Issues
  Pertaining to Necessary Authorizations and Licenses

  
	
  Schedule
  8

  	
  -

  	
  Litigation

  
	
  Schedule
  9

  	
  -

  	
  Liabilities

  
	
  Schedule
  10

  	
  -

  	
  Agreements
  with Affiliates, Management Agreements

  
	
  Schedule
  11

  	
  -

  	
  Real
  Estate

  
	
  Schedule
  12

  	
  -

  	
  [Reserved]

  
	
  Schedule
  13

  	
  -

  	
  Employee
  Relations, Collective Bargaining Agreements, Labor Unions

  
	
  Schedule
  14

  	
  -

  	
  Existing
  Indebtedness

  
	
  Schedule
  15

  	
  -

  	
  [Reserved]

  
	
  Schedule
  16

  	
  -

  	
  Taxes

  
	
  Schedule
  17

  	
  -

  	
  Existing
  Investments

  

 

vi

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

 

This THIRD AMENDED AND RESTATED CREDIT
AGREEMENT (this “Agreement”), dated as of September 23, 2009, is made by
and among ENERGYSOLUTIONS, LLC, a Utah limited liability company (“EnergySolutions”),
ENERGYSOLUTIONS, INC. (“Parent”), the Lenders party hereto from time to
time, CITIGROUP GLOBAL MARKETS INC. (“CGMI”), as sole lead arranger and
bookrunner (the “Arranger”), and CITICORP NORTH AMERICA, INC. (“CNAI”),
as Administrative Agent (the “Administrative Agent”), as collateral
agent (the “Collateral Agent”), as successor agent (the “Successor
Agent”), as the initial revolving issuing bank (the “Initial Revolving
Issuing Bank”) and as the initial synthetic issuing bank (the “Initial
Synthetic Issuing Bank”).

 

WITNESSETH:

 

WHEREAS, EnergySolutions, ENV Holdings LLC (“Holdco”),
certain lenders party thereto and Calyon New York Branch (“Calyon”), as
administrative agent, syndication agent, documentation agent and sole lead
arranger, entered into that certain credit agreement, dated as of January 31,
2005 and first amended and restated as of April 13, 2005 and as further
amended on February 1, 2006 (the “Original Credit Agreement”);

 

WHEREAS, the parties to the Original Credit
Agreement amended and restated the Original Credit Agreement as of June 7,
2006, as amended as of June 19, 2006, as further amended as of February 9,
2007, as further amended as of June 26, 2007 and as further amended as of November 1,
2007 (the “Second Amended and Restated Credit Agreement”) and whereby
CNAI replaced Calyon as administrative agent and collateral agent;

 

WHEREAS, Duratek, Inc., a Delaware
corporation (“Duratek”), certain lenders thereto, CGMI as sole lead
arranger and bookrunner, CNAI as administrative agent, collateral agent and syndication
agent entered into that certain credit agreement dated as of June 7, 2006,
as amended as of June 19, 2006, as further amended as of February 9,
2007, as further amended as of June 26, 2007 and as further amended as of November 1,
2007 (the “Duratek Loan Agreement”);

 

WHEREAS, the parties hereto desire to amend
and restate the Second Amended and Restated Credit Agreement in its entirety,
on the terms and subject to the conditions set forth herein, to: (a) allow
EnergySolutions to purchase from Exelon Generation Company, LLC (“Exelon”),
a Pennsylvania limited liability company, certain assets relating to the Zion
Energy Center, Units 1 and 2, located in Zion, Illinois and to consummate the
related transactions, as described in the Zion Agreements (as defined herein)
(the “Zion Acquisition”), (b) allow EnergySolutions to establish a
new, one year (with customary one year renewal provisions), unfunded
incremental letter of credit facility (the “Zion Incremental Facility”)
and/or third party credit support facility in aggregate principal amount not to
exceed $50,000,000 for related purposes, (c) permit EnergySolutions to
incur additional unsecured debt under certain circumstances, (d) reset
certain financial covenants and (e) make other amendments as set forth
herein (collectively, the “Amendment Transactions”);

 

WHEREAS, the Obligations (as defined in the
Second Amended and Restated Credit Agreement, hereinafter the “Second
Amended and Restated Credit Obligations”) of EnergySolutions 

 

 

and the other
Loan Parties under the Second Amended and Restated Credit Agreement and the
Security Documents (as defined in the Second Amended and Restated Credit
Agreement, such Security Documents hereinafter the “Second Amended and
Restated Security Documents”) are secured by certain collateral
(hereinafter the “Second Amended and Restated Collateral”) and are
guaranteed or supported or otherwise benefited by the Second Amended and
Restated Security Documents;

 

WHEREAS, the parties hereto intend that (a) the
Second Amended and Restated Credit Obligations which remain unpaid and
outstanding as of the Third Amended and Restated Credit Agreement Effective
Date shall continue to exist under this Agreement on the terms set forth herein
and (b) the Second Amended and Restated Collateral and the Second Amended
and Restated Security Documents, as amended and restated on the date hereof,
shall continue to secure, guarantee, support and otherwise benefit the Second
Amended and Restated Credit Obligations, the other Secured Obligations of
EnergySolutions and the other Loan Parties under this Agreement and the other
Loan Documents and the Secured Obligations under and as defined in the Duratek
Loan Agreement.

 

NOW, THEREFORE, in consideration of the
premises and the agreements, provisions and covenants herein contained, the
Second Amended and Restated Credit Agreement is hereby amended and restated to
read in its entirety as follows:

 

ARTICLE 1.

 

Definitions

 

Section 1.1                Defined Terms.

 

For the purposes hereof, the following terms
shall have the following meanings:

 

“Acquisition” shall mean (whether by
purchase, exchange, issuance of capital stock, limited partnership interests,
general partnership interests or other equity or debt securities, merger,
reorganization or any other method) (a) any acquisition by Parent or any
of its Subsidiaries of all or substantially all of any other Person, which
Person shall then become consolidated with EnergySolutions or any such
Subsidiary in accordance with GAAP, or (b) any acquisition by Parent or any
of its Subsidiaries of all or substantially all of the assets of any other
Person; provided that Acquisition shall not mean or include any
acquisition of any interest in real property, either individually or together
with the acquisition of other property or assets.

 

“Acquisition Entity” shall mean in
respect of any Acquisition of any entity, collectively, and on a consolidated
basis, such entity and all of the other entities, if any, that are Affiliates
or Subsidiaries of such entity and that are acquired with such entity in one
transaction or a series of two or more related transactions.

 

“Additional Mortgage” shall mean each
mortgage, deed of trust, trust deed, or deed to secure debt to be delivered
after the Third Amended and Restated Credit Agreement Effective Date pursuant
to Section 5.10 hereof, as the same may hereafter be amended,
modified, supplemented or restated from time to time.

 

2

 

“Additional Permitted Debt” shall mean
Indebtedness of EnergySolutions or Duratek that (i) is unsecured, (ii) other
than in the case of Indebtedness incurred pursuant to Section 7.1(w) or,
to the extent replacing, renewing, extending, refinancing or refunding
Indebtedness originally incurred pursuant to Section 7.1(w), Section 7.1(n),
is not guaranteed by Parent, EnergySolutions or any of their Subsidiaries, (iii) matures
no earlier than 180 days after the Term Loan Maturity Date, (iv) requires
no payment of principal (whether by way of scheduled amortization, mandatory
redemption, mandatory prepayment, sinking fund or otherwise) to be made prior
to its maturity date (except with respect to an acceleration after an event of
default); provided that in the case of Indebtedness incurred pursuant to
Section 7.1(w) or, to the extent replacing, renewing,
extending, refinancing or refunding Indebtedness originally incurred pursuant
to Section 7.1(w), Section 7.1(n), the terms of such
Indebtedness may require redemptions or offers to purchase upon asset sales and
change of control events on customary terms and (v) does not require
Parent, EnergySolutions, Duratek or any of their respective Subsidiaries to
maintain any specified financial condition.

 

“Adjusted Net Income” shall mean, for
any fiscal period, as reflected in the consolidated financial statements or the
notes thereto for Parent and its Subsidiaries, the sum of (i) Net Income, (ii) amortization
of intangible assets, (iii) non-cash charges for equity-based compensation
arrangements and (iv) non-recurring items subject to the consent of the
Administrative Agent.  For the avoidance
of doubt, the calculation of clause (ii) above shall not include charges
for impairments of goodwill or intangible assets.

 

“Administrative Agent” shall have the
meaning set forth in the preamble to this Agreement.

 

“Administrative Agent’s Account” shall
mean the account of the Administrative Agent maintained by the Administrative
Agent at its office at 390 Greenwich Street, New York, NY 10013, Account No. 36852248  Attention: 
Christina Quezon, or such other account as the Administrative Agent
shall specify from time to time in writing to the Lender Parties.

 

“Affiliate” shall mean, with respect
to a Person, any other Person directly or indirectly controlling, controlled
by, or under common control with, such first Person.  For purposes of this definition, “control”
when used with respect to any Person includes, without limitation, the direct
or indirect beneficial ownership of more than ten percent (10%) of the voting
securities or voting equity of such Person, or the power to direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise.  Unless otherwise specified,
“Affiliate” shall mean an Affiliate of Parent, and shall include its
Subsidiaries.

 

“Agent Parties” shall have the meaning
set forth in Section 11.23.

 

“Agents” shall mean, collectively, the
Administrative Agent, the Collateral Agent, the Successor Agent and the
Syndication Agent.

 

“Agreement Currency” shall have the
meaning set forth in Section 11.24(b).

 

“Agreement Date” shall mean January 31,
2005.

 

3

 

“Amendment Transactions” shall have
the meaning set forth in the recitals to this Agreement.

 

“Applicable Creditor” shall have the
meaning set forth in Section 11.24(b).

 

“Applicable Law” shall mean, in
respect of any Person, all provisions of constitutions, statutes, rules,
regulations and orders of governmental bodies or regulatory agencies applicable
to such Person, including, without limiting the foregoing, the Licenses and all
Environmental Laws, and all orders, decisions, judgments and decrees of all
courts and arbitrators in proceedings or actions to which the Person in
question is a party or by which it is bound.

 

“Applicable Margin” shall mean the
interest rate margin applicable to Loans and Synthetic Deposits hereunder as
determined in accordance with Section 2.3(f) hereof.

 

“Applicable Section 7.1(w) Prepayment
Percentage” means, on any date of incurrence of Indebtedness pursuant to Section 7.1(w),
if (A) the Leverage Ratio as of the date of such incurrence shall be 2.0:1
or greater on a pro forma basis for such incurrence, 100% and (B) if the
Leverage Ratio as of the date of such incurrence shall be less than 2.0:1 on a
pro forma basis for such incurrence, 50% (in each case, assuming the relevant
period for the determination of Operating Cash Flow for purposes of calculation
of such Leverage Ratio is the four quarter period ending on the Latest
Financial Reporting Date).

 

“Approved Fund” shall mean, with
respect to any Lender Party, any fund that invests in commercial loans and is
managed or advised by such Lender Party or an Affiliate of such Lender Party,
or by the same investment advisor as such Lender Party or by an Affiliate of such
investment advisor.

 

“Arranger” shall have the meaning set
forth in the preamble to this Agreement.

 

“Assignment and Assumption Agreement”
shall mean an Assignment and Assumption Agreement substantially in the form
attached hereto as Exhibit P.

 

“Assumption Agreement” shall mean that
certain assumption agreement dated as of June 7, 2006 made by Duratek
surviving the merger of Dragon Merger Corporation, a Delaware corporation, with
and into Duratek.

 

“Authorized Signatory” shall mean such
officers of each Loan Party as may be duly authorized and designated in writing
by such Loan Party to execute documents, agreements and instruments on behalf
of such Loan Party.

 

“Available Adjusted Net Income” shall
mean, for Parent and its Subsidiaries on a consolidated basis, (i) for
fiscal year 2009, (x) the aggregate amount of Adjusted Net Income for the
prior four fiscal quarters minus (y) the aggregate dividends paid by
EnergySolutions pursuant to Section 7.8(a) during such four
fiscal quarters and (ii) for fiscal year 2010 and thereafter, (x) the
aggregate amount of Adjusted Net Income from January 1, 2009 to the
applicable calculation date minus (y) the aggregate dividends paid by
EnergySolutions pursuant to Section 7.8(a) from January 1,
2009 to the applicable calculation date.

 

4

 

“Available Amount” of any Letter of
Credit shall mean, at any time, (i) if the Letter of Credit is denominated
in Dollars, the maximum amount available to be drawn under such Letter of Credit
at such time (assuming compliance at such time with all conditions to drawing)
and (ii) if the Letter of Credit is denominated in an Available Foreign
Currency, the Dollar Equivalent of the maximum amount available to be drawn
under such Letter of Credit at such time (assuming compliance at such time with
all conditions to drawing).

 

“Available Foreign Currencies” shall
mean Canadian Dollars and Euro or such other currency as agreed to by the
Administrative Agent and EnergySolutions.

 

“Base Rate”
shall mean a fluctuating interest rate per annum in effect from time to time,
which rate per annum shall at all times be equal to the higher of:

 

(a)           the rate of interest announced by CNAI, from time to time,
as its prime rate in effect at its principal office in the city of New York;
and

 

(b)           a rate of interest that is 1⁄2 of 1% above the Federal Funds
Rate.

 

The Base Rate is an index rate and is not
necessarily intended to be the lowest or best rate of interest charged to
customers in connection with extensions of credit or to other banks.

 

“Base Rate Basis” shall mean a simple
interest rate equal to the sum of (a) the Base Rate and (b) the
Applicable Margin.  The Base Rate Basis
shall be adjusted automatically as of the opening of business on the effective
date of each change in the Base Rate to account for such change and shall also
be changed to reflect adjustments in the Applicable Margin.

 

“Base Rate Option Loan(s)” shall mean
any or all of a Base Rate Term Loan and a Base Rate Revolving Loan, as the
context may require.

 

“Base Rate Revolving Loan” shall mean
the portion of the Revolving Loans as to which EnergySolutions has elected the
Base Rate Basis for the interest rate thereon, in accordance with the
provisions of Section 2.2 hereof, and which, except in the case of
a Base Rate Revolving Loan the proceeds of which shall be used solely to repay
or prepay in full outstanding Letter of Credit Loans, shall be in a principal
amount of at least $500,000 and in an integral multiple of $100,000.

 

“Base Rate Term Loan” shall mean the
portion of the Term Loans as to which EnergySolutions has elected the Base Rate
Basis for the interest rate thereon, in accordance with the provisions of Section 2.2
hereof, and which shall be in a principal amount of at least $5,000,000 and in
an integral multiple of $1,000,000.

 

“Business Day” shall mean a day of the
year on which banks are not required or authorized by law to close in New York,
New York and, if the applicable Business Day relates to any Eurodollar Option
Loans, on which dealings are carried on in the London interbank market.

 

“Calyon” shall have the meaning set
forth in the recitals to this Agreement.

 

“Canadian Dollars” shall mean lawful
money of Canada.

 

5

 

“Capital Expenditures” shall mean, in
respect of any Person, without duplication, expenditures for (i) the
purchase of tangible assets of long-term use which are capitalized in
accordance with GAAP and (ii) Real Property Acquisitions, to the extent
not otherwise included in clause (i); provided that Capital Expenditures
shall not include any expenditures that (a) constitute Permitted
Acquisitions, (b) are made with casualty insurance proceeds to the extent
such proceeds are permitted to be reinvested pursuant to the terms of this
Agreement, (c) are deemed to occur by virtue of the trade-in or other
exchange of existing assets permitted under this Agreement, (d) are made
with the cash proceeds of an asset disposition permitted under this Agreement
to purchase an asset of like kind or function or (e) are expenditures by
any Special Purpose Subsidiary.

 

“Capitalized Lease Obligation” shall
mean that portion of any obligation of a Person as lessee under a lease which
is required to be capitalized on the balance sheet of such lessee in accordance
with GAAP.

 

“Cash Collateral Account” shall mean a
blocked deposit account at CNAI (or another commercial bank which has executed
a control agreement in accordance with the provisions of the Security
Documents) in the name of the Collateral Agent and under the sole dominion and
control of the Collateral Agent, and otherwise established in a manner
satisfactory to the Collateral Agent.

 

“Cash Equivalents” shall mean the
Investments described in Section 7.6(a).

 

“Cash Interest Expense” shall mean,
for any period, for Parent and its Subsidiaries, on a consolidated basis, cash
interest paid in respect of Indebtedness for Money Borrowed (including, without
duplication, any net obligations owing under Hedge Agreements), as determined
in accordance with GAAP, and shall also include the interest component of
payments for such period in respect of Capitalized Lease Obligations.

 

“CGMI” shall have the meaning set
forth in the preamble to this Agreement.

 

“Change of
Control” shall mean:

 

(a)           (i) that any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act, but excluding
any employee benefit plan of such person and its Subsidiaries, and any person
or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan), excluding the Equity Sponsors, is or becomes
the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the
Exchange Act), directly or indirectly, of more than the greater of (x) thirty-five
percent (35%) of the shares outstanding and (y) the percentage of the then
outstanding voting stock owned beneficially by the Equity Sponsors directly or
indirectly of, in each case, Parent, or (ii) any Person other than Parent
or any Subsidiary that is a Loan Party has an economic or voting interest in
EnergySolutions or Duratek; or

 

(b)           occupation of a majority of the seats (other than vacant
seats) on the board of directors of Parent by Persons who were not Continuing
Directors.

 

“CNAI” shall have the meaning set forth
in the preamble to this Agreement.

 

6

 

“Code” shall mean the Internal Revenue
Code of 1986, as amended from time to time.

 

“Collateral” shall mean any property
of any kind provided as collateral for the Secured Obligations under any of the
Security Documents.

 

“Collateral Agent” shall have the
meaning set forth in the preamble to this Agreement.

 

“Collateralized Letter of Credit”
shall mean any Revolving Letter of Credit as to which an amount of cash not less
than the Available Amount thereof has been deposited in an L/C Collateral
Account in respect thereof.

 

“Commitment” shall mean the Term
Commitment, the Revolving Commitment, the Revolving Letter of Credit
Commitment, the Reclamation L/C Facility Commitment, the Synthetic Letter of
Credit Commitment and the Zion Incremental Facility Commitment.

 

“Communications” shall have the
meaning set forth in Section 11.23.

 

“Conduit Lender” shall have the
meaning set forth in Section 11.5(h).

 

“Consolidated Subsidiary” shall mean
any Subsidiary the income or loss of which is included in the computation of
consolidated Net Income of Parent and its Subsidiaries.

 

“Continuing Directors” shall mean the
directors of Parent and each other director, if, in each case, such other
director’s nomination for election to the board of directors is recommended by
a majority of the then Continuing Directors or such other director receives the
vote of the Equity Sponsors in his or her election by the stockholders of
Parent.

 

“Covered Taxes” shall have the meaning
set forth in Section 2.14(a).

 

“Cure Amount” shall have the meaning
set forth in Section 8.5(a).

 

“Cure Right” shall have the meaning
set forth in Section 8.5(a).

 

“Debt Service” shall mean, for any
period, the amount of Cash Interest Expense, together with scheduled principal
repayments (excluding any repayments made or required to be made in accordance
with Section 2.8 hereof) in respect of Indebtedness for Money
Borrowed, of Parent and its Subsidiaries on a consolidated basis.  For purposes of this definition, “principal”
shall include the principal component of payments for such period in respect of
Capitalized Lease Obligations.

 

“Default” shall mean any of the events
specified in Section 8.1, regardless of whether there shall have
occurred any passage of time or giving of notice, or both, that would be
necessary in order to constitute such event.

 

“Default Rate” shall mean a simple per
annum interest rate equal to the sum of the otherwise applicable Interest Rate
Basis plus two percent (2%).  With
respect to amounts (other than principal) bearing interest at the Default Rate,
for purposes of the foregoing sentence, the words “otherwise applicable
Interest Rate Basis” shall be deemed to mean the Base Rate Basis.

 

7

 

“Defaulting Lender” shall have the
meaning set forth in Section 2.2(e)(iv).

 

“Derivatives Contract” shall mean any
forward contract (other than a contract to purchase inputs or provide services
entered into in the ordinary course of the Permitted Business), futures
contract, option (other than an option to purchase inputs or provide services
entered into in the ordinary course of the Permitted Business), swap, notional
principal contract, synthetic position or other financial contract similar to
any of the foregoing.

 

“Disbursement” shall have the meaning
set forth in Section 2.17(d).

 

“Dollar Equivalent” shall mean, on any
date of determination, (a) with respect to any amount denominated in
Dollars, such amount, and (b) with respect to any amount denominated in
any Available Foreign Currency, the equivalent in Dollars of such amount,
determined by the Administrative Agent using the applicable Exchange Rate.

 

“Dollars” or “$” shall mean the
basic unit of the lawful currency of the United States of America.

 

“Duratek” shall have the meaning set
forth in the recitals to this Agreement.

 

“Duratek Acquisition” shall mean
EnergySolutions’ acquisition of Duratek as of June 7, 2006 pursuant to the
Duratek Acquisition Agreement.

 

“Duratek Acquisition Agreement” shall
mean that certain acquisition agreement among EnergySolutions, Dragon Merger
Corporation and the other parties thereto, dated as of February 6, 2006.

 

“Duratek Guaranty” shall mean that
certain Duratek Guaranty, dated as of June 7, 2006, in favor of the
Collateral Agent, for itself and for the ratable benefit of the Secured
Parties, given by Duratek.

 

“Duratek Loan Agreement” shall have
the meaning set forth in the recitals to this Agreement.

 

“Duratek Loan Documents” shall mean
the Duratek Loan Agreement, the Security Agreements, the Pledge Agreements, the
guarantees, notes, security documents and all other material documents and
agreement executed or delivered in connection with the Duratek Loans, as each
such document may be amended, restated, amended and restated, supplemented or
otherwise modified from time to time.

 

“Duratek Loans” shall mean loans
issued pursuant to the Duratek Loan Agreement.

 

“Duratek Payoff” shall mean any time
when the Duratek Loans have been repaid in full and no Indebtedness remains
outstanding pursuant to Section 7.1(o) hereof.

 

“EnergySolutions” shall have the
meaning set forth in the preamble to this Agreement.

 

8

 

“EnergySolutions Pledge Agreement”
shall mean that certain Pledge Agreement, dated as of the Agreement Date, as
amended and restated as of June 7, 2006, between EnergySolutions and the
Collateral Agent.

 

“EnergySolutions Security Agreement”
shall mean that certain Security Agreement, dated as of the Agreement Date, as
amended and restated as of June 7, 2006, between EnergySolutions and the
Collateral Agent.

 

“Environmental Claim” shall mean any
administrative, regulatory or judicial action (whether by a private party,
governmental authority or any other Person) or cause of action, suit,
obligation, liability, loss, proceeding, decree, judgment, penalty, fine, fee,
demand, order, directive, claim (including any claim involving liability in
tort, strict, absolute or otherwise), lien, accusation, allegation, abatement,
notice of noncompliance or violation or legal or consultant fee or cost of
investigation or proceeding (hereinafter “Claim”), resulting from or
based on any Environmental Law or Environmental Permit, or arising from the actual
or alleged presence, Release or threatened Release of any Hazardous Material,
including and regardless of the merit of such Claim, any Claim for enforcement,
clean-up, removal, response, mitigation, remedial or other activities or
damages, contribution, indemnification, cost recovery, compensation or
injunctive or declaratory relief pursuant to any Environmental Law or any
alleged injury or threat of injury to property, health, safety, natural
resources or the environment.

 

“Environmental Clean-up Activities”
shall have the meaning set forth in Section 5.15(c) hereof.

 

“Environmental Law” shall mean any
applicable federal, state or local law, statute, treaty, convention, rule,
regulation, ordinance, code, decree, injunction, criterion, guideline, directive,
Environmental Permit, writ, order or judgment (including common law), and any
applicable requirement thereunder, relating to human health or safety,
Hazardous Materials, pollution, noise, the environment or natural resources, as
such laws (and all other items indicated above) have been or may be amended
from time to time.  Environmental Law
includes, but is not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act (“CERCLA”), the Hazardous Materials
Transportation Act, the Resource Conservation and Recovery Act, the Atomic
Energy Act, the Energy Reorganization Act, the Uranium Mill Tailings Radiation
Control Act, the Hazardous Waste Transportation Act, the Energy Policy Act, the
Low-level Radioactive Waste Policy Act, the Nuclear Waste Policy Act, the Utah
Radiation Control Act, the Utah Air Conservation Act, the Utah Solid and
Hazardous Waste Act, the Utah Water Quality Act, the Tennessee Radiological
Health Service Act,  the South Carolina
Radiation Control Act, the South Carolina Radioactive Waste Transportation and
Disposal Act, the Tennessee Solid Waste Disposal Act, the Clean Water Act, the
Clean Air Act, the Toxic Substances Control Act, the Federal Insecticide,
Fungicide, and Rodenticide Act, the Oil Pollution Act of 1990 and the
Occupational Safety and Health Act; each as from time to time amended, and the
regulations promulgated thereunder, and all analogous state and local statutes
in any state in which Parent or any of its Subsidiaries is engaged in a
Permitted Business, including any environmental transfer of ownership
notification or approval statutes.

 

“Environmental Permit” shall mean any
permit, authorization, approval, license, registration, consent, order,
certificate, waiver, exception, variance, exemption or filing with or issued 

 

9

 

by any court
or governmental or regulatory agency, authority, entity, department, commission
or board relating to or required by any Environmental Law.

 

“Environmental Testing” shall have the
meaning set forth in Section 5.15(c) hereof.

 

“Equity Interests” shall mean shares
of capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity ownership
interests in a Person.

 

“Equity Sponsors” shall mean,
collectively, the Primary Equity Sponsors and the Local Investors.

 

“ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as in effect from time to time.

 

“ERISA Affiliate” shall mean any Person,
including a Subsidiary or an Affiliate of EnergySolutions, that is a member of
any group of organizations (within the meaning of Code Section 414(b),
414(c), 414(m) or 414(o)) of which EnergySolutions is a member.

 

“ERISA Affiliate Plan” shall mean any
employee pension benefit plan (other than a Multiemployer Plan) as defined in Section 3(2) of
ERISA, subject to Title IV of ERISA or Section 302 of ERISA or Section 412
of the Code maintained by an ERISA Affiliate or to which an ERISA Affiliate
contributed, contributes or is obligated to contribute.

 

“Euro” shall mean the single currency
of the Participating Member States.

 

“Eurocurrency Liabilities” shall have
the meaning set forth in Regulation D of the Board of Governors of the Federal
Reserve System, as in effect from time to time.

 

“Eurodollar Basis” shall mean a simple
per annum interest rate (rounded upward, if necessary, to the nearest
one-hundredth (1/100th) of one percent) equal to the sum of (a) the
quotient of (i) the Eurodollar Rate divided by (ii) one minus
the Eurodollar Reserve Percentage, stated as a decimal, plus (b) the
Applicable Margin.  The Eurodollar Basis
shall apply to Interest Periods of one (1), two (2), three (3), six (6) and,
if available to all applicable Lenders, nine (9) and twelve (12) months
(each, a “Eurodollar Period”), and, once determined, shall remain
unchanged during the applicable Interest Period, except for changes to reflect
adjustments in the Eurodollar Reserve Percentage and the Applicable Margin
pursuant to Section 2.3(f) hereof.

 

“Eurodollar Option Loan(s)” shall mean
any or all of a Eurodollar Term Loan and a Eurodollar Revolving Loan, as the
context may require.

 

“Eurodollar Period” shall have the
meaning set forth in the definition of “Eurodollar Basis.”

 

“Eurodollar Rate” shall mean, for any
Interest Period, an interest rate per annum equal to (a) the rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on
Telerate Page 3750 (or any successor page) as the London interbank offered
rate for deposits in Dollars at 11:00 a.m. (London time) or as soon
thereafter as possible, two Business Days before

 

10

 

the first day of such
Interest Period for a period equal to such Interest Period (provided
that, if for any reason such rate is not available, the term “Eurodollar Rate”
shall mean, for any Interest Period for any Eurodollar Option Loan, the rate
per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing
on Dow Jones Market Service as the London interbank offered rate for deposits
in Dollars at approximately 11:00 a.m. (London time) or as soon thereafter
as possible, two Business Days prior to the first day of such Interest Period
for a term comparable to such Interest Period; provided, however,
if more than one rate is specified on Reuters Screen LIBO Page, the applicable
rate shall be the arithmetic mean of all such rates), or (b) if such rate
is for any reason not available, the rate per annum equal to the rate at which
the Administrative Agent or its designee is offered Dollar deposits at or about
11:00 a.m. (London time) two Business Days prior to the beginning of such
Interest Period in the interbank eurodollar market for delivery on the first
day of such Interest Period for the number of days comprised therein and in the
amount requested to be outstanding.

 

“Eurodollar Reserve Percentage” for any
Interest Period, shall mean the reserve percentage applicable two Business Days
before the first day of such Interest Period under regulations issued from time
to time by the Board of Governors of the Federal Reserve System (or any successor)
for determining the maximum reserve requirement (including, without limitation,
any emergency, supplemental or other marginal reserve requirement) for a member
bank of the Federal Reserve System in New York City with respect to liabilities
or assets consisting of or including Eurocurrency Liabilities (or with respect
to any other category of liabilities that includes deposits by reference to
which the interest rate on Eurodollar Option Loans is determined) having a term
equal to such Interest Period.

 

“Eurodollar Revolving Loan” shall mean any
portion of the Revolving Loans as to which EnergySolutions has elected the
Eurodollar Basis for the interest rate thereon, in accordance with the provisions
of Section 2.2 hereof, and which shall be in a principal amount of
at least $1,000,000 and in an integral multiple of $500,000.

 

“Eurodollar Term Loan” shall mean any portion
of the Term Loans as to which EnergySolutions has elected the Eurodollar Basis
for the interest rate thereon, in accordance with the provisions of Section 2.2
hereof, and which shall be in a principal amount of at least $5,000,000 and in
an integral multiple of $1,000,000.

 

“Event of Default” shall mean any of the
events set forth in Section 8.1; provided that any requirement
for notice or lapse of time or both has been satisfied.

 

“Excess Cash Flow” shall mean (y) for
the first three quarters of each fiscal year, based upon the unaudited
financial statements for such fiscal quarter required to be provided under Section 6.1
hereof, and (z) for the fourth quarter of each fiscal year, based on the
audited financial statements for such fiscal year required to be provided under
Section 6.2 hereof and calculated, for such fourth quarter, by
subtracting from the annual amount of each element of the determination of
Excess Cash Flow, the aggregate amount of such element utilized in determining
Excess Cash Flow for any of the preceding fiscal periods during such fiscal
year, the remainder, if any, without duplication, of (a) the Operating
Cash Flow (calculated by excluding from Operating Cash Flow (x) the net
income of Duratek and its Subsidiaries on a consolidated basis determined in
accordance with GAAP, (y) any items that would be added to the net income
of Duratek 

 

11

 

and its Subsidiaries in the
calculation of the operating cash flow of Duratek and its Subsidiaries
(calculated in the same manner, and with the same adjustments, as “Operating
Cash Flow” of Parent and its Subsidiaries) and (z) the costs, expenses and
charges identified in clauses (f) and (g) of the definition of “Operating
Cash Flow”) for such fiscal quarter minus (b) the sum of the following: (i) Capital
Expenditures by Parent and its Subsidiaries (other than Duratek and its
Subsidiaries) during such fiscal quarter (other than Capital Expenditures that
are financed with the proceeds of Indebtedness); (ii) Tax Distributions
made by Parent and cash Taxes paid by Parent and its Subsidiaries (other than
Duratek and its Subsidiaries) during such fiscal quarter; (iii) Debt
Service paid by Parent and its Subsidiaries (other than Duratek and its
Subsidiaries) for such fiscal quarter; (iv) to the extent not included in
the calculation of Operating Cash Flow, legal fees and expenses of, or the
payment of any judgment against, any Loan Party paid by Parent and Permitted
Advisory Fees for such fiscal quarter and (v) cash paid by Parent or any
of the Subsidiaries (other than Duratek and its Subsidiaries) in respect of a
Permitted Acquisition during such fiscal quarter; provided that “Duratek
and its Subsidiaries” shall not include Parent and its Subsidiaries if Parent
is a Subsidiary of Duratek.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

 

“Exchange Rate” shall mean, on any day with
respect to any Available Foreign Currency, the rate at which such Available
Foreign Currency may be exchanged into Dollars, as set forth at approximately
11:00 a.m. (London time) on such day on the Reuters World Currency Page for
such Available Foreign Currency; in the event that such rate does not appear on
any Reuters World Currency Page, the Exchange Rate shall be determined by
reference to such other publicly available service for displaying exchange
rates as determined by the Administrative Agent, or, in the absence of such
publicly available service, such Exchange Rate shall instead be the arithmetic
average of the spot rates of exchange of the Administrative Agent in the market
where its foreign currency exchange operations in respect of such Available
Foreign Currency are then being conducted, at or about 10:00 a.m. (New
York City time) on such date for the purchase of Dollars for delivery two
Business Days later.

 

“Excluded Asset Sales” shall mean (i) sales,
leases or other dispositions of inventory in the ordinary course of business and
obsolete or worn-out assets, (ii) any sale or discount, in each case
without recourse and in the ordinary course of business, of accounts receivable
arising in the ordinary course of business, but only in connection with the
compromise or collection thereof and not as part of any financing transaction, (iii) any
transfer of assets by any Consolidated Subsidiary of EnergySolutions to
EnergySolutions (and by any consolidated subsidiary of Duratek to Duratek) and
any transfer of assets by EnergySolutions or Parent to any of its Consolidated
Subsidiaries, or between any of such Consolidated Subsidiaries, so long as the
security interests granted to the Collateral Agent for the benefit of the
Secured Parties pursuant to the Security Documents in the assets so transferred
shall remain in full force and effect and remain perfected and of the same
priority (to at least the same extent as in effect immediately prior to such
transfer), (iv) personal property with a fair market value in the
aggregate of less than $1,000,000 per year, (v) dispositions of personal
property to the extent that (x) such personal property is exchanged for
credit against the purchase price of replacement personal property performing
the same function or (y) the proceeds of any such disposition are promptly
applied to the purchase price of similar replacement personal property, (vi) sales,
transfers, contributions or dispositions of assets contributed for the purpose
of creating a Special Purpose Subsidiary other than ZionSolutions 

 

12

 

otherwise permitted herein
not to exceed $10,000,000 per such Special Purpose Subsidiary, (vii) sales,
transfers, contributions or dispositions of assets (A) of a Special
Purpose Subsidiary for the purpose of terminating, liquidating or winding down
of such Special Purpose Subsidiary or (B) pursuant to the Zion Agreements
with a fair market value not exceeding the fair market value of any assets to
be disposed of or transferred pursuant to the Zion Agreements in the forms most
recently delivered to the Administrative Agent prior to the date hereof
(without, for the avoidance of doubt, giving effect to any amendments or
modifications thereof pursuant to clause (o) of the definition of Zion
Agreements) or (viii) additional dispositions or transfers of assets in
connection with the Zion Acquisition pursuant to the Zion Agreements with an
aggregate fair market value not exceeding $5,000,000.

 

“Exelon” shall have the meaning set forth in
the recitals to this Agreement.

 

“Existing Mortgage” shall mean each mortgage,
deed of trust, trust deed or deed to secure debt listed on Schedule 11
hereto, as the same may have been amended, modified or supplemented prior to
the Third Amended and Restated Credit Agreement Effective Date.

 

“Existing Mortgage Policy” shall mean each
mortgagee title insurance policy issued (or to be issued) in favor of the
Collateral Agent in connection with one or more Existing Mortgages and insuring
title to one or more Mortgaged Properties.

 

“Federal Funds Rate” shall mean, as of any
date, the weighted average of the rates on overnight federal funds transactions
with the members of the Federal Reserve System arranged by federal funds brokers,
as published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of
the quotations for such day on such transactions received by the Administrative
Agent or its Affiliate from three (3) federal funds brokers of recognized
standing selected by the Administrative Agent or its Affiliate.

 

“Fee Letter” shall mean that certain
agreement dated as of September 12, 2009 setting forth the applicable fees
to be paid by EnergySolutions to the Administrative Agent in connection with
certain of the Loans and the Commitments created hereunder.

 

“Financial Condition Covenant” shall have the
meaning set forth in Section 8.5(a).

 

“First Lien Leverage Ratio” shall mean, as of
any calculation date and for the relevant period then ended, on a consolidated
basis for Parent and its Subsidiaries, the ratio of Indebtedness of Parent and
its Subsidiaries that is secured on a first lien basis as of such calculation
date to the Operating Cash Flow for such period.

 

“Flood Determination” shall have the meaning
set forth in Section 3.1(b)(x)(B).

 

“GAAP” shall have the meaning set forth in Section 1.4.

 

“Granting Lender” shall have the meaning set
forth in Section 11.5(h).

 

13

 

“Guarantees” shall mean the Parent Guaranty,
the Subsidiary Guaranty, the Duratek Guaranty and any other Guaranty of the
Secured Obligations whether now or hereafter in existence.

 

“Guarantors” shall mean Parent, each Subsidiary
Guarantor and any other Person that Guarantees the Secured Obligations.

 

“Guaranty” or “Guaranteed,” as applied
to an obligation, shall mean and include (a) a guaranty, direct or
indirect, in any manner, of all or any part of such obligation, and (b) any
agreement, direct or indirect, contingent or otherwise, the practical effect of
which is to assure in any way the payment or performance (or payment of damages
in the event of non-performance) of all or any part of such obligation,
including, without limiting the foregoing, any reimbursement obligations with
respect to outstanding letters of credit.

 

“Hazardous Material” shall mean any (a) petroleum
or petroleum product, explosive, radioactive material, asbestos, urea
formaldehyde foam insulation, polychlorinated biphenyls, dioxins, furans or
lead, or (b) substance, material, product, derivative, compound, mixture,
mineral, chemical, waste, solid, liquid or gas, in each case whether naturally
occurring, human made or the by-product of any process, (i) that is now or
hereafter becomes defined as or included within the definition of a “hazardous
substance,” “hazardous waste,” “hazardous material,” “radioactive waste,” “mixed
waste,” “toxic chemical,” “toxic substance,” “toxic waste,” “hazardous
chemical,” “extremely hazardous substance,” “extremely hazardous waste,” “restricted
hazardous waste,” “pollutant,” “contaminant,” or any other words of similar
meaning under any Environmental Law, or (ii) exposure to which or the
presence, use, generation, treatment, Release, transport or storage of which is
now or hereafter prohibited, limited, restricted or regulated under any
Environmental Law or by any governmental or regulatory authority.

 

“Hedge Agreements” shall mean interest rate
cap, collar or similar agreements; provided that such agreements are
intended to and reasonably would be expected to reduce EnergySolutions’ or
Parent’s (as the case may be) interest rate risk with respect to its
Obligations permitted under this Agreement.

 

“Holdco” shall have the meaning set forth in
the recitals to this Agreement.

 

“Increase Effective Date”
shall have the meaning set forth in Section 2.15(a).

 

“Incremental Commitment Cap” shall mean
$50,000,000 less the sum of (i) Incremental Commitments, (ii) Incremental
Term Commitments and (iii) Reclamation L/C Facility Commitments.

 

“Incremental Commitments” shall have the
meaning set forth in Section 2.15(a).

 

“Incremental Term Commitment” shall have the
meaning set forth in Section 2.15(a).

 

“Incremental Term Loans” shall have the
meaning set forth in Section 2.15(c)(i).

 

“Indebtedness” of any Person shall mean
without duplication, (a) all obligations of such Person for borrowed
money, (b) all obligations of such Person evidenced by bonds, debentures, 

 

14

 

notes or similar
instruments, (c) all obligations of such Person under conditional sale or
other title retention agreements relating to property acquired by such Person, (d) all
obligations of such Person in respect of the deferred purchase price of
property or services (excluding current accounts payable incurred in the
ordinary course of business), (e) all indebtedness (excluding prepaid
interest thereon) of others secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on property owned or acquired by such Person, whether or not the
indebtedness secured thereby has been assumed; provided that the amount
of Indebtedness under this clause (e) shall be deemed to be equal to the
lesser of (i) the aggregate unpaid amount of such Indebtedness and (ii) the
fair market value of the property encumbered thereby, (f) all Guarantees
by such Person of Indebtedness, (g) all Capitalized Lease Obligations of
such Person and (h) all obligations, contingent or otherwise, of such
Person in respect of bankers’ acceptances. 
The Indebtedness of any Person shall include the Indebtedness of any
other entity (including any partnership in which such Person is a general
partner) to the extent such Person is directly liable therefor as a result of
such Person’s ownership interest in or other relationship with such entity,
except to the extent the terms of such Indebtedness provide that such Person is
not liable therefor.

 

“Indebtedness for Money Borrowed” shall mean,
as of any date with respect to any Person, Indebtedness for money borrowed and
Indebtedness represented by notes payable and drafts accepted representing
extensions of credit, all obligations evidenced by bonds, debentures, notes or
other similar instruments, any net obligations of such Person owing under Hedge
Agreements, all Indebtedness upon which interest charges are customarily paid,
all Capitalized Lease Obligations, all unsatisfied reimbursement obligations as
of such date in respect of a draw made on or prior to such date under any
letter of credit, all Indebtedness issued or assumed as full or partial payment
for property or services (other than trade payables arising in the ordinary
course of business, but only if and so long as such accounts are payable on customary
trade terms), whether or not any such notes, drafts, obligations or
Indebtedness represents Indebtedness for money borrowed, and, without
duplication, Guarantees of any of the foregoing; provided Synthetic
Letters of Credit shall be included only to the extent of any unreimbursed
Disbursements.  For purposes of this
definition, interest which is accrued but not paid on the scheduled due date
for such interest shall be deemed Indebtedness for Money Borrowed; provided
that no undrawn Letters of Credit shall constitute Indebtedness for Money Borrowed.

 

“Indemnified Costs” shall have the meaning
set forth in Section 9.11(a) hereof.

 

“Indemnitee” shall have the meaning set forth
in Section 5.11 hereof.

 

“Initial Revolving Issuing Bank” shall have
the meaning set forth in the preamble to this Agreement.

 

“Initial Synthetic Issuing Bank” shall have
the meaning set forth in the preamble to this Agreement.

 

“Intercompany Loans”
shall have the meaning set forth in Section 7.6(c) hereof.

 

15

 

“Interest Coverage Ratio” shall mean, as of
any calculation date and for the four fiscal-quarter period then ended, on a
consolidated basis for Parent and its Subsidiaries, the ratio of Operating Cash
Flow to Cash Interest Expense for such period.

 

“Interest Period” shall mean (a) in
connection with any Base Rate Option Loan, the period beginning on the date
such Loan is made or deemed continued and ending on the last Business Day of
the calendar quarter in which such Loan is made or deemed continued; provided,
however, that if a Base Rate Option Loan is made or deemed continued on
the last day of any calendar quarter, it shall have an Interest Period ending
on, and its Payment Date shall be, the last day of the following calendar
quarter, (b) in connection with any Eurodollar Option Loan, the term of
the related Eurodollar Period selected by EnergySolutions or otherwise
determined in accordance with this Agreement and (c) in connection with
any Synthetic Deposit, the period beginning on (and including) the date on
which such Synthetic Deposit is deposited or on the last day of the preceding
Interest Period and ending on (but excluding) the date which is 30 days
thereafter.  Notwithstanding the
foregoing, however, (i) any applicable Interest Period which would
otherwise end on a day which is not a Business Day shall be extended to the
next succeeding Business Day unless, with respect to Eurodollar Option Loans
only, such Business Day falls in another calendar month, in which case such
Interest Period shall end on the next preceding Business Day, (ii) any
applicable Interest Period, with respect to Eurodollar Option Loans only, which
begins on a day for which there is no numerically corresponding day in the
calendar month during which such Interest Period is to end shall (subject to
clause (i) above) end on the last day of such calendar month, and (iii) no
Interest Period shall extend beyond the Term Loan Maturity Date or the
Revolving Maturity Date with respect to Interest Periods applicable to Revolving
Loans and Term Loans or such earlier date as would interfere with
EnergySolutions’ repayment obligations hereunder.  Interest shall be due and payable with
respect to any Loan as provided in Section 2.3 hereof.

 

“Interest Rate Basis” shall mean the Base
Rate Basis or the Eurodollar Basis, as appropriate.

 

“Investment” shall mean, with respect to any
Person, any loan, advance or extension of credit (other than to customers in
the ordinary course of business) by such Person to, or any Guaranty or other
contingent liability with respect to the capital stock, limited partnership
interests, general partnership interests, or other securities or other equity
or ownership interests, Indebtedness or other obligations of, or any
contributions to the capital of, any other Person, or any ownership, purchase
or other acquisition by such Person of any interest in any Indebtedness,
capital stock, limited partnership interests, general partnership interests, or
other securities or other equity or ownership interests of any such other
Person, other than an Acquisition.  “Investment”
shall also include the total cost of any future commitment or other obligation
binding on any Person to make an Investment or any subsequent Investment.

 

“Issuing Banks” shall mean the Revolving
Issuing Bank and the Synthetic Issuing Bank.

 

“Judgment Currency” shall have the meaning
set forth in Section 11.24(ii).

 

“L/C Collateral Account” shall mean an
interest bearing cash collateral account to be established and maintained by
the Administrative Agent, over which the Administrative Agent 

 

16

 

shall have sole dominion and
control, upon terms as may be satisfactory to the Administrative Agent.

 

“L/C Disbursement” shall mean a payment or
disbursement made by the Revolving Issuing Bank pursuant to a Revolving Letter
of Credit.

 

“L/C Related Documents” shall have the
meaning set forth in Section 2.4(d)(ii)(A).

 

“Latest Financial Reporting Date” shall have
the meaning set forth in Section 7.1(w).

 

“Lender Party” shall mean any Lender or any
Issuing Bank.

 

“Lenders” shall mean each financial
institution party to the Original Credit Agreement or Second Amended and
Restated Credit Agreement or listed on the signature page hereto as a
Lender or any other Person that has become a party to the Original Credit
Agreement or the Second Amended and Restated Credit Agreement in accordance
with Section 11.5 thereof, and that becomes a Lender hereunder pursuant
to Section 11.5, for so long as such Lender or Person, as the case
may be, shall be a party to this Agreement.

 

“Letter of Credit” shall mean, as the context
may require, a Revolving Letter of Credit, a Synthetic Letter of Credit, a
Reclamation Letter of Credit and the Zion Incremental Letter of Credit.

 

“Letter of Credit Agreement” shall mean, as
the context may require, a Revolving Letter of Credit Agreement, a Synthetic
Letter of Credit Agreement, a Reclamation Letter of Credit Agreement and a Zion
Incremental Letter of Credit Agreement.

 

“Letter of Credit Loan” shall mean a funding
made by the Revolving Issuing Bank or any Revolving Lender pursuant to Section 2.2(f)(ii).

 

“Leverage Ratio” shall mean, as of any
calculation date and for the relevant period then ended, on a consolidated
basis for Parent and its Subsidiaries, the ratio of Indebtedness for Money
Borrowed as of such calculation date to the Operating Cash Flow for such period.

 

“LGB” shall mean Lindsay Goldberg &
Bessemer L.P. and its Affiliates.

 

“Licenses” shall mean any permits or licenses
held by EnergySolutions, Parent or any of the Subsidiaries, all of which are
listed as of the Third Amended and Restated Credit Agreement Effective Date on Schedule
2 hereto.

 

“Lien” shall mean, with respect to any
property, any mortgage, lien, pledge, assignment, charge, security interest,
title retention agreement, levy, execution, seizure, attachment, garnishment or
other encumbrance of any kind in respect of such property, whether created by
statute, contract, the common law or otherwise, and whether or not choate,
vested or perfected; provided, however, that “Lien” shall not
include any license, sublicense, lease or sublease of or with respect to any
personal property.

 

17

 

“Loan Documents” shall mean this Agreement
(including the Original Credit Agreement and the Second Amended and Restated
Credit Agreement, as amended and restated hereby), the Assumption Agreement,
any Notes, the Security Documents, the Guarantees, each Letter of Credit
Agreement, the Fee Letter, all Requests for Loans and all other material
documents and agreements executed or delivered by a Loan Party in connection
with this Agreement.

 

“Loan Parties” shall mean, collectively, EnergySolutions,
each Subsidiary Guarantor and Parent.

 

“Loans” shall mean, collectively, the
Revolving Loans, the Letter of Credit Loans, the Term Loans and unreimbursed
Disbursements in accordance with Section 2.17(d).

 

“Local Investors” shall mean, collectively,
Peterson Partners IV, L.P. and its Affiliates.

 

“Majority Lenders” shall mean, at any time,
Lenders owed or holding at least a majority in interest of the sum, without
duplication, of (a) the aggregate principal amount of the Loans outstanding
at such time, (b) the aggregate Available Amount of all Revolving Letters
of Credit outstanding at such time, (c) the aggregate amount of Synthetic
Deposits at such time, (d) the aggregate Unused Revolving Commitments at
such time and (e) the aggregate principal amount of the Duratek Loans
outstanding at such time; provided, however, that (I) if any
Lender shall be a Defaulting Lender at such time, there shall be excluded from
the determination of Majority Lenders at such time (i) the aggregate
principal amount of the Loans owing to such Lender (in its capacity as a
Lender) and outstanding at such time, (ii) such Lender’s Pro Rata Share of
the aggregate Available Amount of all Revolving Letters of Credit outstanding
at such time and (iii) the Unused Revolving Commitment of such Lender at
such time and (II) if any lender shall be a “Defaulting Lender” (as
defined in the Duratek Loan Agreement) at such time, there shall be excluded
from the determination of Majority Lenders at such time the aggregate principal
amount of the Duratek Loans owing to such lender (in its capacity as a lender)
and outstanding at such time.  For
purposes of this definition, the aggregate principal amount of (x) Letter
of Credit Loans owing to the Revolving Issuing Bank and (y) the Available Amount
of each Revolving Letter of Credit shall be deemed “owed to” the Revolving
Lenders ratably in accordance with their respective Revolving Commitments.

 

“Majority Revolving Lenders” shall mean, at
any time, Revolving Lenders owed or holding at least a majority in interest of
the sum, without duplication, of (a) the aggregate principal amount of the
Revolving Loans outstanding at such time, (b) the aggregate Available
Amount of all Revolving Letters of Credit outstanding at such time and (c) the
aggregate Unused Revolving Commitments at such time; provided, however,
that if any Revolving Lender shall be a Defaulting Lender at such time, there
shall be excluded from the determination of Majority Revolving Lenders at such
time (i) the aggregate principal amount of the Revolving Loans owing to
such Lender (in its capacity as a Revolving Lender) and outstanding at such
time, (ii) such Lender’s Pro Rata Share of the aggregate Available Amount
of all Revolving Letters of Credit outstanding at such time and (iii) the
Unused Revolving Commitment of such Lender at such time.  For purposes of this definition, the
aggregate principal amount of (x) Letter of Credit Loans owing to the
Revolving Issuing Bank and (y) the Available Amount of each Revolving Letter
of Credit shall be deemed “owed to” the Revolving Lenders ratably in accordance
with their respective Revolving Commitments.

 

18

 

“Material Adverse Change” shall mean (A) as
of June 7, 2006, any effect on, or change, event, occurrence or state of
facts that (i) is material and adverse to the business, properties, assets,
liabilities (contingent or otherwise), results of operations or financial
condition of EnergySolutions and its Subsidiaries taken as a whole, or (ii) prevents
EnergySolutions from performing its obligations under the Duratek Acquisition
Agreement or from consummating the Transactions (as defined in the Duratek
Acquisition Agreement); provided, however, that none of the following
will be taken into account in determining whether there has been a Material
Adverse Change on June 7, 2006: (w) conditions affecting any of the
industries in which EnergySolutions operates generally (provided that
any such condition does not disproportionately affect EnergySolutions or its
Subsidiaries), (x) conditions affecting the economy or capital markets (provided
that any such condition does not disproportionately affect EnergySolutions or
its Subsidiaries), (y) any failure, in and of itself, by EnergySolutions
to meet any internal or published projections, forecasts or revenue or earnings
predictions or projections (it being understood that the facts or circumstances
giving rise to or contributing to such failure may be taken into account in
determining whether there has been a Material Adverse Change), or (z) any
effect, change, event, occurrence or state of facts resulting from, or
attributable to, the announcement or consummation of the Merger (as defined in
the Duratek Acquisition Agreement) and (B) thereafter, any act, omission,
event, development or circumstance that in the Administrative Agent’s
reasonable judgment has had or could reasonably be expected to have a material
adverse effect on or affecting (a) the Amendment Transactions, (b) the
Duratek Acquisition, (c) the business, assets, property, liabilities
(fixed or contingent), condition (financial or otherwise), operations, business
or prospects of EnergySolutions, Parent and their Subsidiaries, taken as a
whole, or (d) the validity, enforceability or priority of any of the Loan
Documents or the liens thereunder or the rights and remedies of the
Administrative Agent and the Lenders thereunder.

 

“Moody’s” shall mean Moody’s Investors
Service, a subsidiary of Moody’s Corporation.

 

“Mortgage” shall mean each Existing Mortgage,
as modified by the applicable Mortgage Amendment, and each Additional Mortgage,
if any, as the same may hereafter be further amended, modified, supplemented or
restated from time to time.

 

“Mortgage Amendment” shall mean (i) an
amendment to an Existing Mortgage, dated as of the Third Amended and Restated
Credit Agreement Effective Date (or such later date as the Collateral Agent may
agree to in its sole discretion), duly executed and delivered by the applicable
Loan Party for the benefit of the Collateral Agent, as mortgagee, in form and
substance reasonably satisfactory to the Collateral Agent and appropriate for
recording and/or filing in the appropriate real property records to perfect and
protect the lien created by such Existing Mortgage as modified by such Mortgage
Amendment and (ii) any future amendments to the Mortgages.

 

“Mortgage Policy” shall mean (i) each
Existing Mortgage Policy together with any and all endorsements thereto issued,
or to be issued, in favor of Collateral Agent, (ii) each mortgagee title
insurance policy issued, or to be issued, in favor of Collateral Agent in connection
with any Additional Mortgage and (iii) each endorsement issued to any
Existing Mortgage Policy or mortgage title insurance policy issued after the
date hereof in connection with any Mortgage Amendment, as provided for herein.

 

19

 

“Mortgaged Property” shall mean (a) as
of the Third Amended and Restated Credit Agreement Effective Date, the real
property designated as “Mortgaged Property” on Schedule 11 hereto
and (b) thereafter, all of the real property referred to in clause (a) together
with any and all real property which is encumbered by an Additional Mortgage.

 

“Multiemployer Plan” shall have the meaning set
forth in Section 4001(a)(3) of ERISA.

 

“Necessary Authorizations” shall mean all
approvals and licenses from, and all filings and registrations with, any
governmental or other regulatory authority, including, without limiting the
foregoing, the Licenses and all grants, approvals, licenses, filings and
registrations necessary in order to enable Parent or any of its Subsidiaries to
own, construct, maintain and operate its Permitted Business and to make and
hold Investments in other Persons who own, construct, maintain and operate
their respective Permitted Businesses.

 

“Net Income” shall mean, for Parent and its
Subsidiaries on a consolidated basis, for any period, net income determined in
accordance with GAAP.

 

“Net Proceeds” shall mean, with respect to any
sale, lease, transfer, swap or other disposition of assets or securities by any
of the Loan Parties or any of their Subsidiaries, the aggregate amount of cash
received for such assets or securities (including, without limitation, any payments
received for non-competition covenants, consulting or management fees, and any
portion of the amount received evidenced by a buyer promissory note or other
evidence of Indebtedness), net of (a) amounts reserved, if any, for taxes
payable with respect to any such sale (after application of any available
losses, credits or other offsets), (b) reasonable and customary transaction
fees, commissions, discounts, costs and out-of-pocket expenses properly
attributable to such transaction and payable by such Loan Party or any of its
Subsidiaries (other than to an Affiliate if not on an arm’s-length basis) in
connection with such sale, lease, transfer or other disposition of assets or
securities, (c) until actually received by such Loan Party or any of its
Subsidiaries, any portion of the amount received held in escrow or evidenced by
a buyer promissory note, or a non-compete agreement or covenant, management
agreement or consulting agreement, for which compensation is paid over time, (d) the
principal amount of any Indebtedness for Money Borrowed (other than the Loans)
that is secured by the asset subject to such sale, lease, transfer, swap or
other disposition and that is repaid in connection therewith, and (e) any
reserve for adjustments in respect of (x) the sale price of such asset or
assets established in accordance with GAAP and (y) any pension and other
post-employment benefit liabilities associated with such asset or assets and
retained by such Loan Party or any of its Subsidiaries after such sale, lease,
transfer, swap or other disposition so long as such reserve is required by
law.  Upon receipt by the Loan Parties or
any of their Subsidiaries of amounts referred to in clause (c) of the
preceding sentence or to the extent the amounts referred to in clause (a) and
clause (e) of the preceding sentence exceed the amounts actually so
required, such amounts shall then be deemed to be “Net Proceeds.”  With respect to any incurrence of
Indebtedness for Money Borrowed incurred by, or any issuance or sale of equity
interests issued by, any Loan Party, “Net Proceeds” shall mean the aggregate
amount of such Indebtedness for Money Borrowed or the aggregate cash received
in connection with such issuance or sale of equity interests net of any
reasonable fees, commissions, discounts, costs and out-of-pocket expenses
associated with the incurrence of such Indebtedness for Money Borrowed or such
issuance or sale of equity interests.

 

20

 

“Non-Consenting Lender” shall have the
meaning set forth in Section 11.12.

 

“Non-U.S. Jurisdiction” shall mean each
jurisdiction of organization of a Subsidiary of Parent other than the United
States (or any State thereof) or the District of Columbia.

 

“Non-U.S. Subsidiary” shall mean any
Subsidiary that is or becomes organized under the laws of a Non-U.S.
Jurisdiction.

 

“Notes” shall mean, collectively, the
Revolving Notes and the Term Notes.

 

“Notice of Issuance” shall have the meaning
set forth in Section 2.2(f)(i).

 

“Obligations” shall mean (a) all payment
and performance obligations of every kind, nature and description of the Loan
Parties (including any interest on the Loans accruing after commencement of any
bankruptcy or insolvency proceeding with respect to any Loan Party regardless
of whether such interest is allowed in such proceeding) to the Administrative
Agent, any other Agents, the Lender Parties, Affiliates of the Lender Parties
in connection with this Agreement and the other Loan Documents (including any
Letter of Credit commissions, interest, fees and other charges on the Loans or
Synthetic Deposits or otherwise under the Loan Documents that would accrue but
for the filing of a bankruptcy action with respect to any Loan Party, whether
or not such claim is allowed in such bankruptcy action), as they may be amended
from time to time, or as a result of making the Loans or Synthetic Deposits,
whether such obligations are direct or indirect, absolute or contingent, due or
not due, contractual or tortious, liquidated or unliquidated, arising by
operation of law or otherwise, now existing or hereafter arising, and (b) the
obligation of any Loan Party to pay an amount equal to the amount of any and
all damages which the Lender Parties, the Administrative Agent or any other
Agent or any of them may suffer by reason of a breach by any Loan Party of any
obligation, covenant or undertaking with respect to this Agreement or any other
Loan Document.

 

“Operating Cash Flow” shall mean, for any
fiscal period, for Parent and its Subsidiaries on a consolidated basis, or for
any Acquisition Entity, as applicable, Net Income for such period (after
eliminating any extraordinary gains and losses, including gains and losses from
the sale of assets, and minority interests, and equity in earnings (losses) of
non-consolidated entities), plus cash (except for extraordinary cash) received
from non-consolidated joint ventures by Parent and its Subsidiaries in such
period plus, to the extent deducted or accrued in determining Net Income, the
sum of each of the following for such period: (a) depreciation,
amortization and other non-cash charges (including, without limitation,
accretion charges and compensation expenses for equity grants issued) (but
excluding non-cash charges that constitute an accrual of a reserve for future
cash payments), (b) Cash Interest Expense, (c) Permitted Advisory
Fees, (d) income tax expense, (e) fees and expenses incurred by
Parent and its Subsidiaries in connection with the Amendment Transactions and
the Duratek Acquisition; provided that no costs and expenses incurred by
Parent or its Subsidiaries to Guaranty the payment or performance of a Special
Purpose Subsidiary or the Zion Acquisition or EnergySolutions’ decommissioning
obligations related thereto shall be included in this clause (e), (f) costs
and expenses relating to unrealized synergies expected to be achieved by Parent
and its Subsidiaries, incurred in connection or as a result of the Duratek
Acquisition, not to exceed the Restructuring Cost Cap in any four-quarter fiscal
period, (g) cash charges incurred to effectuate the savings identified in
clause (f) not to 

 

21

 

exceed $15,000,000 in the
aggregate from the date of the Original Credit Agreement through September 30,
2008 and (h) fees and expenses incurred by Parent and its Subsidiaries in
connection with the initial public offering of the shares of common stock of
Parent (including, without limitation, any advisory and underwriting fees and
expense to terminate excess performance bonus plans of certain of its current
and former senior management); provided that for purposes of the
covenants set forth in Section 7.7 hereof, if either Parent or any
of its respective Subsidiaries makes any Acquisition during a period in which
Operating Cash Flow is to be determined hereunder, such Operating Cash Flow
will be determined on a pro forma basis as if such Acquisition were consummated
on the first day of the relevant period.

 

“Original Credit Agreement” shall have the
meaning set forth in the recitals to this Agreement.

 

“Other Taxes” shall have the meaning set
forth in Section 2.14(b).

 

“Parent” shall have the meaning set forth in
the preamble to this Agreement.

 

“Parent Guaranty” shall mean that certain
Guaranty Agreement, dated as of November 20, 2007, between Parent and the
Collateral Agent.

 

“Parent Pledge Agreement” shall mean that
certain Pledge Agreement, dated as of November 20, 2007, between Parent
and the Collateral Agent.

 

“Parent Security Agreement” shall mean that
certain Security Agreement, dated as of November 20, 2007, between Parent
and the Collateral Agent.

 

“Participating Member State” shall mean any
member state of the European Community that adopts or had adopted the euro as
its lawful currency in accordance with legislation of the European Community
relating to the Economic and Monetary Union.

 

“Patriot Act” shall mean the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law on October 26,
2001.

 

“Payment Date” shall mean, with respect to
any Loan, the last day of any Interest Period applicable to such Loan and the
date of payment in full of such Loan.

 

“PBGC” shall mean the Pension Benefit
Guaranty Corporation or any successor thereto.

 

“Performance Certificate” shall mean a
certificate of an executive officer of EnergySolutions as to its financial
performance, in substantially the form attached as Exhibit C
hereto.

 

“Permitted Acquisition” shall mean (i) the
U.K. Acquisition, (ii) an Acquisition by Parent or any of its Subsidiaries
of any Person (a) primarily engaged in a Permitted Business and (b) who
Guarantees the Secured Obligations and (iii) an Acquisition by Parent or
any of its respective Subsidiaries of a Special Purpose Subsidiary.

 

22

 

“Permitted Advisory Fees” shall mean
management fees to be paid to some or all of the Equity Sponsors in an annual
amount up to the greater of (a) $3 million, or (b) 3% of Operating
Cash Flow, if and to the extent that before and after giving effect to any such
payment, Parent and its Subsidiaries are in current and pro forma covenant
compliance with the financial covenants set forth in Section 7.7
hereof.

 

“Permitted Asset Sale” shall mean the sale by
Parent or any of its Subsidiaries of any part of its or their assets as and to
the extent permitted under Section 7.4(a) hereof.

 

“Permitted Business” shall mean (i) all
existing business operations of Parent and its Subsidiaries (including, without
limitation, Duratek and its Subsidiaries) conducted prior to or as of the Third
Amended and Restated Credit Agreement Effective Date, as well as those reasonably
related thereto (in the discretion of EnergySolutions), including environmental
services and (ii) any reasonably related business in respect of the use
and management of radioactive material and radioactive waste in accordance with
Applicable Law, the Licenses and the Necessary Authorizations.

 

“Permitted Investments” shall mean
Investments described in and permitted to be made under Section 7.6(c) hereof.

 

“Permitted Liens”
shall mean, as applied to any Person:

 

(a)           any
Lien in favor of the Administrative Agent (for itself and for the ratable benefit
of the Secured Parties) given to secure the Secured Obligations;

 

(b)           (i) Liens
on real estate for real estate taxes not yet delinquent and (ii) Liens for
taxes, assessments, judgments, governmental charges or levies or claims not
overdue for a period of not more than thirty (30) days or the nonpayment of
which is being diligently contested in good faith by appropriate proceedings
and for which adequate reserves have been set aside on such Person’s books, but
only so long as no foreclosure, distraint, sale or similar proceedings have
been commenced with respect thereto and remain unstayed for a period of thirty
(30) days after their commencement;

 

(c)           Liens
of landlords, carriers, warehousemen, mechanics, laborers and materialmen
incurred in the ordinary course of business for sums not yet overdue by more
than thirty (30) days or being diligently contested in good faith, if reserves
or appropriate provisions shall have been made therefor;

 

(d)           Liens
incurred in the ordinary course of business in connection with worker’s
compensation, unemployment insurance and social security insurance;

 

(e)           restrictions
on the transfer of assets imposed by any of the Licenses as now in effect or by
any Environmental Laws, any state laws and any regulations thereunder;

 

(f)            easements,
rights-of-way, restrictions and other similar encumbrances on the use of real
property which do not interfere with the ordinary conduct of the business of
such Person, or Liens incidental to the conduct of the business of such Person
or to the 

 

23

 

ownership of its properties
which were not incurred in connection with Indebtedness or other extensions of
credit and which do not in the aggregate materially detract from the value of
such properties or materially impair their use in the operation of the business
of such Person;

 

(g)           purchase
money security interests which are perfected automatically by operation of law,
only for the period (not to exceed twenty (20) days) of automatic perfection
under the law of the applicable jurisdiction, and limited to Liens on assets so
purchased;

 

(h)           cash
collateralization of the mark-to-market value of the Obligations under Secured
Hedge Agreements in an aggregate amount not to exceed $2,000,000;

 

(i)            any
Liens of record listed on Schedule 3 attached hereto;

 

(j)            Liens
(i) of a collection bank arising under Section 4-210 of the Uniform
Commercial Code on items in the course of collection, and (ii) in favor of
a banking institution arising as a matter of law encumbering deposits
(including the right of setoff) and which are within the general parameters
customary in the banking industry;

 

(k)           Liens
arising from precautionary Uniform Commercial Code financing statement filings
regarding leases entered into by the Loan Parties or any of their Subsidiaries
in the ordinary course of business;

 

(l)            Liens
existing on property at the time of its acquisition or existing on the property
of any Person that becomes a Subsidiary; provided that (i) such
Lien was not created in contemplation of such acquisition or such Person
becoming a Subsidiary, (ii) such Lien does not extend to or cover any
other assets or property (other than the proceeds or products thereof) and (iii) the
Indebtedness secured thereby is permitted under Section 7.1 hereof;

 

(m)          leases,
licenses, subleases or sublicenses granted to other Persons in the ordinary
course of business and not interfering in any material respect with the
business of Parent or its Subsidiaries;

 

(n)           any
interest or title of a lessor, sublessor, licensee, sublicensee, licensor or
sublicensor under any lease or license agreement granted in the ordinary course
of business;

 

(o)           other
Liens securing Indebtedness outstanding in an aggregate amount not to exceed
$5,000,000;

 

(p)           Liens
on the Collateral securing obligations under the Duratek Loan Agreement; provided
that such Liens are pari passu to the Liens securing the Secured Obligations in
accordance with the terms of the Security Documents;

 

(q)           on
or after the Third Amended and Restated Credit Agreement Effective Date, Liens (x) on
the assets or properties of, or on any general or limited partnership 

 

24

 

interest, limited liability,
membership interest in, or ownership of any shares of capital stock, or other
securities of, ZionSolutions and (y) on the Collateral securing the Zion
Credit Support Obligation; provided that, in the case of the foregoing
clause (y), Liens on Collateral securing the Zion Credit Support Obligation may
be granted either (A) under the Security Documents pursuant to joinder and
similar agreements reasonably satisfactory to the Collateral Agent or (B) pursuant
to security documentation and intercreditor agreements reasonably satisfactory
to the Collateral Agent (and the Lenders specifically authorize the
Administrative Agent and/or the Collateral Agent to enter into such joinder and
similar agreements and/or such intercreditor agreements, as the case may be);

 

(r)            in
addition to the Liens permitted pursuant to clause (q) above, Liens on the
assets or properties of, or on any general or limited partnership interest,
limited liability, membership interest in, or ownership of any shares of
capital stock, or other securities of, any Special Purpose Subsidiary except
for ZionSolutions incurred as a result of the formation or acquisition of such
Special Purpose Subsidiary (i) pursuant to the SPS Project Documentation
and (ii) in an aggregate amount not to exceed $20,000,000 per Special
Purpose Subsidiary and $50,000,000 in the aggregate; and

 

(s)           (i) on
or after the Third Amended and Restated Credit Agreement Effective Date,
easements granted pursuant to the Zion Agreements and (ii) easements
granted solely for the purpose of securing the availability of capacity at
EnergySolutions’ Class A low level radioactive disposal site in Clive,
Utah for the disposal of Class A low level radioactive waste in connection
with contracts entered into by Special Purpose Subsidiaries to decommission
non-operating nuclear power generation facilities or to secure performance
thereof; provided the aggregate area of any easement granted pursuant to
this clause (s) shall not exceed 10% of the availability at such
Clive, Utah disposal site for the disposal of Class A low level
radioactive waste as of the Third Amended and Restated Credit Agreement
Effective Date.

 

“Permitted Refinancing Indebtedness” shall
mean any Indebtedness issued in exchange for, or the net proceeds of which are
used to refund, refinance, replace, defease or discharge other Indebtedness; provided
that:

 

(1)           the
principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted
value, if applicable) of the Indebtedness extended, refinanced, renewed, replaced,
defeased or refunded (plus all accrued interest on the Indebtedness and the
amount of all fees, expenses and premiums incurred in connection therewith);

 

(2)           such
Permitted Refinancing Indebtedness has a final maturity date not earlier than
the final maturity date of, and has a weighted average life to maturity equal
to or greater than the weighted average life to maturity of, the Indebtedness
being extended, refinanced, renewed, replaced, defeased or refunded;

 

(3)           if
the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded is subordinated in right of payment to the Obligations, such Permitted
Refinancing Indebtedness is subordinated in right of payment to, the
Obligations on 

 

25

 

terms at least as favorable
to the Lenders as those contained in the documentation governing the
Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded;
and

 

(4)           such
Indebtedness is incurred either by Parent or by the Subsidiary who is the
obligor on the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded.

 

“Permitted Restricted Payments” shall include
(i) Permitted Advisory Fees, (ii) Tax Distributions, (iii) Restricted
Payments that do not exceed $15,000,000, in the aggregate, from the Third
Amended and Restated Credit Agreement Effective Date and (iv) after the
consummation of the initial public offering of the shares of common stock of
Parent, to the holders of Equity Interests of Parent, the dividends specified
in Section 7.8(a).

 

“Person” shall mean an individual,
corporation, limited liability company, association, partnership, joint
venture, trust or estate, unincorporated organization, government or any agency
or political subdivision thereof, or any other entity.

 

“Plan” shall mean any employee pension
benefit plan (other than a Multiemployer Plan) as defined in Section 3(2) of
ERISA, subject to Title IV of ERISA or Section 302 of ERISA or Section 412
of the Code maintained by EnergySolutions, Parent or any Subsidiary or to which
EnergySolutions, Parent or any Subsidiary contributed, contributes or is
obligated to contribute.

 

“Platform” shall have the meaning set forth
in Section 11.23.

 

“Pledge Agreements” shall mean the
EnergySolutions Pledge Agreement, the Parent Pledge Agreement, the Subsidiary
Pledge Agreement and any additional pledge agreement substantially in the form
of Exhibit A attached hereto that secures the Secured Obligations
whether now or hereafter in existence.

 

“Post-Increase Revolving Lenders” shall have
the meaning set forth in Section 2.15(d).

 

“Pre-Increase Revolving Lenders” shall have
the meaning set forth in Section 2.15(d).

 

“Primary Equity Sponsors” shall mean LGB and
WPG.

 

“Pro Rata Share” of any amount shall mean (i) with
respect to any Revolving Lender at any time, the product of such amount times a
fraction the numerator of which is the amount of such Lender’s Revolving
Commitment at such time and the denominator of which is the aggregate Revolving
Commitments at such time.

 

“Property” shall mean property now or
hereafter owned, operated or leased by EnergySolutions or the Subsidiaries.

 

“Real Property Acquisition” shall mean
(whether by purchase, exchange, issuance of capital stock, limited partnership
interests, general partnership interests or other equity or debt securities,
merger, reorganization or any other method) the acquisition by EnergySolutions
or 

 

26

 

any of the Subsidiaries of
any interest in real property, whether done and made individually or as part of
a transaction including assets or property other than real property.

 

“Reclamation L/C Facility Commitment” shall
mean Commitments issued pursuant to Section 2.15(a) with
respect to Reclamation L/C Facility Commitments relating to Obligations of a
Special Purpose Subsidiary.

 

“Reclamation L/C Facility Commitment Cap”
shall mean $50,000,000.

 

“Reclamation L/C Facility Maturity Date”
shall mean one year from the date of issuance of any Reclamation Letter of
Credit with customary one year renewal provisions; provided that in no
event shall the Reclamation L/C Facility Maturity Date be later than the Term
Loan Maturity Date.

 

“Reclamation Letter of Credit” shall mean any
Letter of Credit issued under a Reclamation L/C Facility Commitment pursuant to
a Reclamation Letter of Credit Agreement.

 

“Reclamation Letter of Credit Agreement”
shall mean an application and agreement for a Reclamation Letter of Credit.

 

“Register” shall have the meaning set forth
in Section 11.5(c) hereof.

 

“Release” shall mean the release, deposit,
disposal or leakage at, into, upon or under any land, water or air, or
otherwise into the environment or into the indoor air, including by means of burial,
disposal, discharge, emission, injection, spillage, leakage, seepage, leaching,
dumping, pumping, pouring, escaping, emptying, migrating, placement and the
like (including the disposal of barrels, containers and other closed
receptacles containing Hazardous Materials).

 

“Remedial Action” shall mean all actions,
including, without limitation, any capital expenditures, undertaken to (i) clean
up, remove, treat or in any other way address any Hazardous Material; (ii) prevent
the Release or threat of Release, or minimize the further Release, of any Hazardous
Material so it does not migrate or endanger or threaten to endanger public
health or welfare or the indoor or outdoor environment; (iii) perform
pre-remedial studies and investigations or post-remedial monitoring and care;
or (iv) bring facilities on any property owned, operated or leased by the
Loan Parties and the facilities located and operations conducted thereon into
compliance with all Environmental Laws and Environmental Permits.

 

“Reportable Event” shall have the meaning set
forth in Section 4043 of ERISA and any regulations promulgated thereto.

 

“Request for Loan” shall mean a certificate
designated as a “Request for Loan,” signed by an Authorized Signatory
requesting a Revolving Loan hereunder, which shall be in substantially the form
of Exhibit D attached hereto and shall, among other things, (a) specify
the date of the Revolving Loan, which shall be a Business Day, the amount of
the Revolving Loan, Type of Loan, and, with respect to a Eurodollar Revolving
Loan, the Interest Period selected by EnergySolutions, and (b) state that
there shall not exist, on the date of the requested Revolving Loan, both before
and after giving effect thereto, a Default.

 

27

 

“Request for Term Loan Eurodollar Basis”
shall mean a certificate designated as a “Request for Term Loan Eurodollar
Basis” signed by an Authorized Signatory requesting that a portion of the Term
Loans complying with the requirements of this Agreement applicable to Eurodollar
Term Loans bear interest at the Eurodollar Basis, which shall be in
substantially the form of Exhibit G attached hereto and shall,
among other matters, (a) specify the applicable Interest Period and the
requested commencement date thereof, and (b) state that there shall not exist,
on the first day of the requested Interest Period, both before and after giving
effect to such request, a Default.

 

“Restricted Payment” shall mean (a) any
direct or indirect cash distribution, cash dividend or other cash payment by
EnergySolutions, Parent or any of their Subsidiaries to any Person (other than
to Parent or any other Subsidiary) on account of any general or limited partnership
interest in, membership interest in, or ownership of any shares of capital
stock or other securities of, EnergySolutions, Parent or any of their
Subsidiaries; or (b) any payment by EnergySolutions, Parent or any of
their Subsidiaries to a Person other than EnergySolutions, Parent or any of
their Subsidiaries under any management or consulting agreement, or other
similar agreement or arrangement not entered into in the ordinary course of business.

 

“Restructuring Cost Cap” shall mean
$20,000,000 for the four-quarter period ended September 30, 2006.  For each successive four-quarter period
thereafter, “Restructuring Cost Cap” shall be reduced by $2,500,000.  For the avoidance of doubt, the “Restructuring
Cost Cap” shall be $17,500,000 for the four-quarter period ended December 31,
2006 and $0 for the four-quarter period ended September 30, 2008.

 

“Revolving Commitment” shall mean, with
respect to any Revolving Lender at any time, the amount set forth opposite such
Lender’s name on Schedule 4-A hereto under the caption “Revolving
Commitment” or, if such Lender has entered into one or more Assignment and Assumption
Agreements, set forth for such Lender in the Register maintained by the
Administrative Agent pursuant to Section 11.5(c) as such
Lender’s “Revolving Commitment.”

 

“Revolving Issuing Bank” shall mean (i) the
Initial Revolving Issuing Bank and any assignee to which a Revolving Letter of
Credit Commitment hereunder has been assigned pursuant to Section 11.5
so long as each such assignee expressly agrees to perform in accordance with
their terms all of the obligations that by the terms of this Agreement are required
to be performed by it as the Revolving Issuing Bank and notifies the
Administrative Agent of the amount of its Revolving Letter of Credit Commitment
(which information shall be recorded by the Administrative Agent in the
Register), for so long as the Initial Revolving Issuing Bank or assignee, as
the case may be, shall have a Revolving Letter of Credit Commitment and (ii) with
respect to the existing letters of credit set forth on Schedule 4-B
hereto, each Lender identified as a “Revolving Issuing Bank” on such schedule.

 

“Revolving Lender” shall mean a Lender that
has a Revolving Commitment.

 

“Revolving Letter of Credit” shall have the
meaning set forth in Section 2.1(d), but shall include those
letters of credit existing on the Second Amendment Effective Date.

 

28

 

“Revolving Letter of Credit Agreement” shall
have the meaning set forth in Section 2.2(f)(i).

 

“Revolving Letter of Credit Commitment” shall
mean, with respect to the Revolving Issuing Bank, an amount equal to
$60,000,000.

 

“Revolving Loans” shall mean, collectively,
the amount advanced by the Revolving Lenders to EnergySolutions under the Revolving
Commitments, not to exceed the aggregate amount of the Revolving Commitments.

 

“Revolving Maturity Date” shall mean June 7,
2011.

 

“Revolving Notes” shall mean those certain
revolving promissory notes in the aggregate original principal amount of
$75,000,000, one issued by EnergySolutions to each of the Revolving Lenders
issuing a Revolving Commitment that requests a promissory note, in accordance
with each such Revolving Lender’s Revolving Commitment, each one substantially
in the form of Exhibit E attached hereto, and any extensions,
modifications, renewals, endorsements or replacements of or amendments to any
of the foregoing.

 

“Revolving Notice of Renewal” shall have the
meaning set forth in Section 2.1(d).

 

“Revolving Notice of Termination” shall have
the meaning set forth in Section 2.1(d).

 

“Rollover Letter of Credit” shall have the
meaning set forth in Section 2.17(b).

 

“S&P” shall mean Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc., and any
successor thereto.

 

“Second Amendment Effective Date” shall mean June 7,
2006.

 

“Second Amended and Restated Credit Agreement”
shall have the meaning set forth in the recitals to this Agreement.

 

“Second Amended and Restated Credit Obligations”
from the fifth recital.

 

“Second Amended and Restated Collateral” from
the fifth recital.

 

“Second Amended and Restated Security Documents”
from the fifth recital.

 

“Secured Hedge Agreement” shall mean any
Hedge Agreement that is entered into by and between any Loan Party and any
Secured Party.

 

“Secured Obligations” shall mean (a) the
Obligations and (b) the due and punctual payment and performance of all
obligations of EnergySolutions and the other Loan Parties under each Secured
Hedge Agreement entered into with any counterparty that is a Secured Party.

 

“Secured Parties” shall mean, collectively,
the Administrative Agent, each other Agent, the Lender Parties and each
counterparty to a Hedge Agreement if at the date of entering into such Hedge
Agreement such Person was a Lender or an Affiliate of a Lender and such person 

 

29

 

executes and delivers to the
Administrative Agent a letter agreement in form and substance acceptable to the
Administrative Agent pursuant to which such Person (i) appoints the
Collateral Agent as its agent under the applicable Loan Documents and (ii) agrees
to be bound by the provisions of Sections 11.2 and 11.9 as if it
were a Lender.

 

“Security Agreements” shall mean the
EnergySolutions Security Agreement, the Parent Security Agreement, the
Subsidiary Security Agreements and any additional security agreement substantially
in the form of Exhibit I, Exhibit J-1 or Exhibit J-2,
respectively, attached hereto that secures the Secured Obligations whether now
or hereafter in existence.

 

“Security Documents” shall mean the Pledge
Agreements, the Guarantees, the Security Agreements, the Mortgages, any other
agreement or instrument providing collateral for the Secured Obligations
whether now or hereafter in existence, and any filings, instruments, agreements
and documents related thereto or to this Agreement and providing the Collateral
Agent, for itself and for the benefit of the Secured Parties, with collateral
for the Secured Obligations.

 

“Security Interest” shall mean all Liens in
favor of the Collateral Agent, for itself and for the benefit of the Secured
Parties, created hereunder or under any of the Security Documents to secure the
Secured Obligations.

 

“Solvent” shall mean, with respect to any
Loan Party, that as of the date of determination, both (i)(a) the sum of
such Loan Party’s debt (including contingent liabilities) does not exceed the
present fair saleable value of such Loan Party’s present assets; (b) such
Loan Party’s capital is not unreasonably small in relation to its business as
contemplated on the Third Amended and Restated Credit Agreement Effective Date
or with respect to any transaction contemplated or undertaken after the Third
Amended and Restated Credit Agreement Effective Date; and (c) such Person
has not incurred and does not intend to incur, or believe (nor should it reasonably
believe) that it will incur, debts beyond its ability to pay such debts as they
become due (whether at maturity or otherwise); and (ii) such Person is “solvent”
within the meaning given that term and similar terms under applicable laws
relating to fraudulent transfers and conveyances.  For purposes of this definition, the amount
of any contingent liability at any time shall be computed as the amount that,
in light of all of the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or matured
liability (irrespective of whether such contingent liabilities meet the
criteria for accrual under Statement of Financial Accounting Standards No. 5).

 

“SPA” shall mean that certain Share Purchase
Agreement between British Nuclear Fuels plc, EnergySolutions EU Limited and EnergySolutions,
dated June 6, 2007.

 

“Special Purpose Subsidiary” shall mean (i) ZionSolutions
and (ii) no more than five (5) other Subsidiaries, each of which
Subsidiary referred to in this clause (ii) shall (x) other than with
respect to directors’ qualifying shares or de minimis non-economic interests
held by the transferor of the assets to such Subsidiary pursuant to the applicable
SPS Project Documentation (as defined below), be a Person whose Equity Interests
are wholly-owned by EnergySolutions or a Subsidiary Guarantor, (y) have
been designated with reasonable prior notice by EnergySolutions to the Administrative
Agent as a Special Purpose Subsidiary and (z) have been formed for the
purpose of entering into one or more contracts (such contracts and all related
documentation

 

30

 

referred
to in this clause (ii), the “SPS Project Documentation”) to decommission
nuclear or other types of power facilities whereby any such Subsidiary
purchases and/or leases all or part of the assets of such facilities in part to
succeed to licenses or permits granted in respect of such facilities by the
United States Nuclear Regulatory Commission or any other federal or state governmental
entity.

 

“Subordination Agreement” shall mean a
Subordination Agreement in the form attached hereto as Exhibit Q.

 

“Subsidiary” shall mean, as applied to any
Person, (a) any corporation of which more than fifty percent (50%) of the
outstanding stock (other than directors’ qualifying shares) having ordinary
voting power to elect its board of directors, regardless of the existence at
the time of a right of the holders of any class or classes of securities of
such corporation to exercise such voting power by reason of the happening of
any contingency, or any partnership of which more than fifty percent (50%) of
the outstanding partnership interests, are at the time owned directly or indirectly
by such Person, or by one or more Subsidiaries of such Person, or by such
Person and one or more Subsidiaries of such Person, or (b) any other
entity which is directly or indirectly controlled or capable of being
controlled by such Person, or by one or more Subsidiaries of such Person, or by
such Person and one or more Subsidiaries of such Person.  “Subsidiaries” as used herein, unless
otherwise indicated, shall mean all Subsidiaries of Parent (including EnergySolutions),
including Subsidiaries of any Subsidiaries of Parent.  The Subsidiaries of Parent as of the Third
Amended and Restated Credit Agreement Effective Date are set forth on Schedule
1 attached hereto.

 

“Subsidiary Guarantor” shall mean each
domestic Subsidiary that Guarantees the Secured Obligations in accordance with
the terms of this Agreement.

 

“Subsidiary Guaranty” shall mean each
subsidiary guaranty given by each Subsidiary Guarantor, substantially in the
form of Exhibit H attached hereto.

 

“Subsidiary Pledge Agreement” shall mean (i) that
certain Subsidiary Pledge Agreement, dated as of February 27, 2006, as
amended and restated as of June 6, 2006, between the Subsidiaries of
EnergySolutions party thereto and the Collateral Agent and (ii) any
additional pledge agreement substantially in the form of Exhibit A
attached hereto executed by a new Subsidiary in accordance with Section 5.13.

 

“Subsidiary Security Agreement” shall mean (i) that
certain Subsidiary Security Agreement, dated as February 27, 2006, as
amended and restated as of June 6, 2006, between the respective Subsidiaries
party thereto and the Collateral Agent and (ii) each additional subsidiary
security agreement executed by a new Subsidiary in accordance with Section 5.13,
substantially in the form of Exhibit J-2 attached hereto.

 

“Successor Agent” shall have the meaning set
forth in the preamble to this Agreement.

 

“Successor Agent Agreement” shall mean that
certain agreement, dated as of June 7, 2006, between Calyon and CNAI,
pursuant to which CNAI assumed all the rights and obligations of Calyon as
Collateral Agent hereunder.

 

31

 

“Syndication Agent” shall have the meaning
set forth in the recitals to this Agreement.

 

“Syndication Date” shall have the meaning set
forth in Section 11.5(b).

 

“Synthetic A Deposits” shall mean those
Synthetic A Deposits established pursuant to the Second Amended and Restated
Credit Agreement.

 

“Synthetic Deposit” shall mean, with respect to
each Synthetic Lender at any time, amounts actually on deposit in the Synthetic
Deposit Account to the credit of such Lender’s Synthetic Deposit Sub-Account at
such time.

 

“Synthetic Deposit Account” shall mean the
account established by the Administrative Agent at Citibank, N.A. with the
title “Synthetic Lenders (EnergySolutions) Credit-Linked Deposit Account” pursuant
to Section 2.16(a).

 

“Synthetic Deposit Amount” shall mean, with
respect to any Synthetic Lender, an amount equal to the product of (a) such
Lender’s Synthetic Deposit Percentage and (b) the Synthetic Facility
Available Amount.

 

“Synthetic Deposit Percentage” shall mean,
with respect to any Synthetic Lender, the percentage of the total Synthetic
Deposits represented by such Lender’s Synthetic Deposit.  If the Synthetic Deposits have been reduced
to zero, the Synthetic Deposit Percentages shall be determined based upon the
Synthetic Deposits most recently in effect, giving effect to any assignments.  Each Synthetic Lender’s Synthetic Deposit
Percentage on the Second Amendment Effective Date is set forth opposite it’s
name on  Schedule 4-C hereto under
the caption “Synthetic Deposit Percentage” or, if such Lender has entered into
one or more Assignment and Acceptances, set forth for such Lender in the
Register maintained by the Administrative Agent pursuant to Section 11.5(c).

 

“Synthetic Deposit Sub-Account” shall have
the meaning set forth in Section 2.16(a).

 

“Synthetic Deposit Return” shall have the
meaning set forth in Section 2.16(d).

 

“Synthetic Facility Available Amount” shall
mean $100,000,000 less (i) the aggregate amount of all Synthetic
Deposits returned to Lenders pursuant to Section 2.7 and (ii) the
Dollar Equivalent of the amount of unreimbursed Disbursements in accordance
with Section 2.16(c)(i).

 

“Synthetic Facility Availability Date” shall
mean any Business Day on or after the establishment of the Synthetic Deposit
Account pursuant to Section 2.16(a).  On such date, after giving effect to any Rollover
Letters of Credit being deemed Synthetic Letter of Credit hereunder, the
Available Amount for all Revolving Letters of Credit shall not exceed
$60,000,000.

 

“Synthetic Issuing Bank”
shall mean the Initial Synthetic Issuing Bank and any other Person deemed to be
a Synthetic Issuing Bank pursuant to Section 2.17(b) and any
assignee (i) consented to by the Administrative Agent and EnergySolutions
(each such consent not to be unreasonably withheld or delayed) and (ii) to
which a Synthetic Deposit hereunder has been assigned pursuant to Section 11.5  so long as each such assignee expressly agrees to perform
in accordance with their terms all of the obligations that by the terms of this
Agreement are required

 

32

 

to be performed by it as the
Synthetic Issuing Bank and notifies the Administrative Agent of the amount of
its Synthetic Deposit (which information shall be recorded by the
Administrative Agent in the Register), for so long as the Initial Synthetic
Issuing Bank or assignee, as the case may be, shall have a Synthetic Deposit.

 

“Synthetic Lender” shall mean, as of any time
of determination, any Lender which has a Synthetic Deposit Percentage greater
than 0%.

 

“Synthetic Letter of Credit” shall have the
meaning set forth in Section 2.17(a).

 

“Synthetic Letter of Credit Agreement” shall
have the meaning set forth in Section 2.2(f)(i).

 

“Synthetic Letter of Credit Commitment” shall
mean the Synthetic Issuing Bank’s obligation to issue Synthetic Letters of
Credit pursuant to Section 2.17(a) and, with respect to each
Synthetic Lender, such Lender’s Synthetic Letter of Credit Participation
Obligation.

 

“Synthetic Letter of Credit Maturity Date”
shall mean June 7, 2013.

 

“Synthetic Letter of Credit Outstandings”
shall mean, at any time of determination, the sum of (i) the aggregate
Available Amount of all issued and outstanding Synthetic Letters of Credit plus
(ii) all outstanding Synthetic Reimbursement Obligations.

 

“Synthetic Letter of Credit Participation
Obligation” shall have the meaning set forth in Section 2.17(c).

 

“Synthetic Notice of Renewal” shall have the
meaning set forth in Section 2.17(a).

 

“Synthetic Notice of Termination” shall have
the meaning set forth in Section 2.17(a).

 

“Synthetic Reimbursement Obligation” shall
have the meaning set forth in Section 2.17(d).

 

“Tax Distributions” shall mean, for any
period in which EnergySolutions is treated as a disregarded entity or a
partnership for federal, applicable state and/or local income tax purposes,
distributions paid to direct or indirect members of EnergySolutions for the
purpose of funding each such member’s income tax liability attributable to such
Person’s direct or indirect distributive share of the taxable income of EnergySolutions
for such period, in an aggregate amount (for all such members) equal to the
product of (a) the taxable income allocable to the members for such period
less the cumulative amount of net taxable loss allocated to such members of
EnergySolutions for all prior taxable periods (as if such periods were one
combined period), to the extent such prior net losses are of a character (i.e.,
ordinary or capital) that would have allowed such losses to be offset against
the current period’s income and (b) the Assumed Tax Rate (as defined
below), plus any previously undistributed amounts permitted under the foregoing
formula.  If EnergySolutions is a
corporation for U.S. federal, applicable state and/or local income tax purposes
and a member of a group filing consolidated, combined or unitary tax returns of
which EnergySolutions is not the common parent, EnergySolutions may make
payments to the parent of such group in respect of EnergySolutions’ share of
taxable income; provided, however, 

 

33

 

that the amount of such
payments in respect of any tax period does not exceed the lesser of (i) the
actual tax liability of the consolidated group or (ii) the amount that
EnergySolutions would have been required to pay in respect of federal, state or
local income taxes (as the case may be) for such year if EnergySolutions paid
such taxes directly as a stand-alone taxpayer at the Assumed Tax Rate, less, in
each case, any such taxes payable directly by EnergySolutions.  Each Tax Distribution shall be designated as
such, and with respect to a particular fiscal quarter of EnergySolutions’
fiscal year, in such EnergySolutions’ books and records.  “Assumed Tax Rate” shall mean the
highest hypothetical combined marginal effective U.S. federal, state and local
income tax rate prescribed for an individual or corporation resident of New
York, New York or Salt Lake City, Utah applicable to the character of the net
taxable income (i.e., capital gains, dividends and/or ordinary income)
allocable to the direct or indirect members of EnergySolutions in the relevant
taxable year (taking into account the deductibility of state and local income
taxes as applicable at the time for U.S. federal income tax purposes).

 

“Taxes” shall have the meaning set forth in Section 2.14(a).

 

“Term Commitment” shall mean, with respect to
any Term Lender at any time, the amount set forth opposite such Lender’s name
on Schedule 4-B hereto under the caption “Term Commitment” or, if such
Lender has entered into one or more Assignment and Assumption Agreements, set
forth for such Lender in the Register maintained by the Administrative Agent
pursuant to Section 11.5(c).

 

“Term Facility” shall mean, at any time, the
aggregate amount of the Term Loans at such time.

 

“Term Lender” shall mean any Lender that has
a Term Commitment.

 

Term Loan Maturity Date” shall mean
the earlier of (a) June 7, 2013 or (b) the date on which the
payment of all outstanding Obligations shall be due (whether by acceleration or
otherwise).

 

“Term Loans” shall mean, collectively, the
amounts advanced by the Term Lenders pursuant to the Term Commitments, as set
forth on Schedule 4-B attached hereto.

 

“Term Notes” shall mean those certain term
promissory notes, one issued to each of the Lenders listed on Schedule 4-B
hereto that requests a promissory note, by EnergySolutions in the amount of
each of such Lenders’ Term Loan to EnergySolutions, each one substantially in
the form of Exhibit K attached hereto, and any extensions,
modifications, renewals, endorsements or replacements of or amendments to any of
the foregoing.

 

“Third Amended and Restated Amendment Agreement”
shall mean that certain Third Amended and Restated Amendment Agreement, dated
as of September 23, 2009, by and among EnergySolutions, the Administrative
Agent and the Lenders signatories thereto.

 

“Third Amended and Restated Credit Agreement
Effective Date” shall mean September 23, 2009.

 

34

 

“Type” refers to the distinction (a) between
Loans bearing interest at the Base Rate and Loans bearing interest at the
Eurodollar Rate, (b) among the Revolving Loans, the Letter of Credit Loans
and the Term Loans or (c) between the Revolving Commitment and the Revolving
Letter of Credit Commitment.

 

“U.K. Acquisition” shall mean the acquisition
by EnergySolutions or Parent and their Subsidiaries of 100% of the capital
stock of Reactor Sites Management Company Limited that was consummated on June 27,
2007 in accordance with the SPA and all other related documentation (without
amendment, modification or waiver thereof which is materially adverse to the
Lenders (as reasonably determined by the Arranger) without the prior consent of
the Arranger).

 

“Uniform Commercial Code” or “UCC”
shall mean the Uniform Commercial Code as the same may from time to time be in
effect in the State of New York or the Uniform Commercial Code (or similar code
or statute) of another jurisdiction, to the extent it may be required to apply
to any item or items of Collateral.

 

“Unused Revolving Commitment” shall mean,
with respect to any Lender at any time, an amount equal to (a) such Lender’s
Revolving Commitment at such time minus (b) the sum (without duplication)
of (i) the aggregate principal amount of all Revolving Loans and Letter of
Credit Loans made by such Lender (in its capacity as a Lender) and outstanding
at such time and (ii) such Lender’s Pro Rata Share of (A) the
aggregate Available Amount of all Revolving Letters of Credit outstanding at
such time and (B) the aggregate principal amount of all Letter of Credit
Loans made by the Revolving Issuing Bank pursuant to Section 2.2(f)(ii) and
outstanding at such time.

 

“WPG” shall mean Western Pacific Group, L.C.,
Creamer Investments, Inc. and/or any of their respective Affiliates.

 

“Zion Acquisition” shall have the meaning set
forth in the recitals to this Agreement.

 

“Zion Agreements” shall mean collectively the
following documents (each in the form most recently delivered to the Administrative
Agent prior to the Third Amended and Restated Credit Agreement Effective Date):
(a) the ZionSolutions Limited Liability Company Agreement entered into by
members of ZionSolutions, (b) the Asset Sale Agreement (and the amendment
thereto dated as of August 17, 2009), (c) an Assignment and
Assumption Agreement to be entered into by and between Exelon and
ZionSolutions, (d) a Bill of Sale to be entered into by and between Exelon
and ZionSolutions, (e) a Lease Agreement to be entered into by and between
Exelon and ZionSolutions, (f) a Put Option Agreement to be entered into by
and between Exelon and ZionSolutions, (g) a Pledge Agreement made by EnergySolutions
in favor of Exelon, (h) the Guaranty made as of December 11, 2007 by
Parent in favor of Exelon, (i) an Irrevocable Easement for Disposal
Capacity to be made by EnergySolutions to a certain trustee named thereto, (j) a
Disposal Services Agreement to be entered into by and between EnergySolutions
and a certain trustee named thereto, (k) a Leased Personnel Agreement to
be entered into by Exelon and ZionSolutions, (l) the Performance Guaranty
made as of December 11, 2007 by EnergySolutions in favor of Exelon, (m) a
Trust Agreement by and among EnergySolutions, a trustee named thereto and other
parties party thereto in connection with a backup non-qualified decommissioning,
(n) a Credit Support Agreement among Exelon, EnergySolutions and Parent
and (o) all amendments 

 

35

 

or modifications to any of
the agreements listed in the foregoing clauses (a) through (n), to the
extent such amendments or modifications are delivered to the Administrative
Agent ten (10) Business Days prior to becoming effective and, to the
extent such amendments or waivers could reasonably be expected to adversely
affect the interests of the Lenders in any material respect, the Administrative
Agent has consented thereto in writing (it being understood that any modification,
amendment or waiver of any Zion Agreement that increases the amount of
Indebtedness of Parent, EnergySolutions or their respective Subsidiaries
pursuant to such Zion Agreement shall be deemed to adversely affect the
interests of the Lenders in a material respect).  All capitalized terms in this paragraph not
otherwise defined herein shall have the meanings ascribed to such terms in that
certain Asset Sale Agreement, dated December 11, 2007, by and among Exelon,
ZionSolutions, EnergySolutions and Parent.

 

“Zion Credit Support Obligation” shall mean
any letter of credit, performance or fidelity bond or related obligation in
favor of third party support providers relating to the Zion Acquisition; provided
that the aggregate amount of all such letters of credit, performance and
fidelity bonds and related obligations shall not at any time exceed $50,000,000
minus the aggregate amount of the Zion Incremental Facility Commitment at such
time; provided further that, to the extent secured by all or any portion
of the Collateral, all such letters of credit, performance and fidelity bonds
and related obligations shall mature, expire or otherwise terminate prior to
the Term Loan Maturity Date.

 

“Zion Incremental Facility” shall have the
meaning set forth in the recitals to this Agreement.

 

“Zion Incremental Facility Commitment” shall
mean Commitments issued pursuant to Section 2.15(a) with
respect to Zion Incremental Facility Commitments relating to Obligations of ZionSolutions.

 

“Zion Incremental Facility Commitment Cap”
shall at any time mean $50,000,000 minus the aggregate amount of the Zion
Credit Support Obligation at such time.

 

“Zion Incremental Facility Maturity Date”
shall mean one year from the date of issuance of the Zion Incremental Facility
Letter of Credit with customary one year renewal provisions; provided
that in no event shall the Zion Incremental Facility Maturity Date be later
than the Term Loan Maturity Date.

 

“Zion Incremental Letter of Credit” shall
mean any Letter of Credit issued under the Zion Incremental Facility Commitment
pursuant to a Zion Incremental Letter of Credit Agreement.

 

“Zion Incremental Letter of Credit Agreement”
shall mean an application and agreement for a Zion Incremental Letter of
Credit.

 

“ZionSolutions” shall mean ZionSolutions,
LLC, a Delaware limited liability company, organized for the purpose of
consummating the Zion Acquisition and whose Equity Interests shall be (other
than with respect to directors’ qualifying shares or de minimis non-economic interests
held by Exelon or its Affiliates) wholly-owned by
EnergySolutions or a Subsidiary Guarantor.

 

36

 

Section 1.2                Defined
Agreements as Modified.

 

Each definition of an agreement or instrument in
this Article 1 shall include such agreement or instrument as
amended, modified, renewed or restated from time to time in accordance
herewith.

 

Section 1.3                Computation
of Time Periods; Other Definitional Provisions.

 

In this Agreement and the other Loan Documents in
the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including” and the words “to” and “until”
each mean “to but excluding.”  References
in the Loan Documents to any agreement or contract “as amended” shall mean and
be a reference to such agreement or contract as amended, amended and restated,
supplemented or otherwise modified from time to time in accordance with its
terms.  All notices shall be required to
be in writing.

 

Section 1.4                Accounting
Terms.

 

All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles
consistent with those applied in the preparation of the financial statements referred
to in Section 4.1(k) (“GAAP”).

 

Section 1.5                Pro
Forma Calculations.

 

For purposes of computing each of the Leverage Ratio
and the Interest Coverage Ratio for any purpose hereunder, such ratio (and any
financial calculations or components required to be made or included therein)
shall be determined, with respect to the relevant period, after giving pro
forma effect to the Duratek Acquisition, each Permitted Acquisition and
disposition of a Person, line of business or division consummated during such
period (including, in each case, any incurrence, assumption, refinancing or
repayment of Indebtedness for Money Borrowed), as if such Duratek Acquisition,
Permitted Acquisition, disposition or related transactions had been consummated
on the first day of such period, in each case, either (i) prepared in
accordance with Regulation S-X under the Securities Act of 1933, as amended, or
(ii)(a) that have been certified by a financial officer of EnergySolutions
as having been prepared in good faith based upon reasonable assumptions and (b) are
reasonably acceptable to the Administrative Agent.

 

ARTICLE
2.

 

Loans
and Letters of Credit

 

Section 2.1                The
Loans and the Letters of Credit.

 

(a)           The Revolving Loans.  The Revolving Lenders agree, severally in
accordance with their respective Revolving Commitments and not jointly, upon
the terms and subject to the conditions of this Agreement, to lend and relend
to EnergySolutions, on and after the Agreement Date and prior to the Revolving
Maturity Date, amounts requested by EnergySolutions which, in the aggregate, do
not exceed at any time the aggregate Revolving Commitments; provided
that no Loan may be made at any time under this Section 2.1(a) in
an amount that shall exceed the 

 

37

 

aggregate Unused Revolving Commitments at
such time.  Loans under the Revolving
Commitment may be repaid and reborrowed as provided in Section 2.2
hereof.

 

(b)           The Term Loans. 
The Term Loans bear interest at the Eurodollar Basis or the Base Rate
Basis as provided in Section 2.2 hereof.  Term Loans repaid or prepaid may not be reborrowed.

 

(c)           [Reserved].

 

(d)           Revolving Letters of Credit.  The Revolving Issuing Bank agrees, on the
terms and conditions hereinafter set forth, to issue (or cause any of its
Affiliates that is a commercial bank to issue on its behalf) standby letters of
credit (each a “Revolving Letter of Credit”) in Dollars or any Available
Foreign Currency for the account of EnergySolutions or any of the Subsidiaries
from time to time on any Business Day during the period from the Agreement Date
until five days before the Revolving Maturity Date in an aggregate Available
Amount (i) for all Revolving Letters of Credit not to exceed at any time
the Revolving Letter of Credit Commitment at such time and (ii) for each
such Revolving Letter of Credit not to exceed the aggregate Unused Revolving
Commitments as of the date of issuance thereof. 
No Revolving Letter of Credit shall have an expiration date later than
the earlier of (i) one year after the date of issuance thereof, or (ii) five
days before the Revolving Maturity Date, but may by its terms be renewable
annually upon written notice (a “Revolving Notice of Renewal”) given to
the Revolving Issuing Bank that issued such Revolving Letter of Credit and the
Administrative Agent on or prior to any date for notice of renewal set forth in
such Revolving Letter of Credit but in any event at least 10 Business Days
prior to the date of the proposed renewal of such Revolving Letter of Credit
and upon fulfillment of the applicable conditions set forth in Article 3
unless the Revolving Issuing Bank has notified EnergySolutions (with a copy to
the Administrative Agent) on or prior to the date for notice of termination set
forth in such Revolving Letter of Credit but in any event at least 5 Business
Days prior to the date of automatic renewal of its election not to renew such
Revolving Letter of Credit (a “Revolving Notice of Termination”); provided
that the terms of each Revolving Letter of Credit that is automatically
renewable annually shall (x) require the Revolving Issuing Bank that
issued such Revolving Letter of Credit to give the beneficiary named in such
Revolving Letter of Credit notice of any Revolving Notice of Termination, (y) permit
such beneficiary, upon receipt of such notice, to draw under such Revolving
Letter of Credit prior to the date such Revolving Letter of Credit otherwise
would have been automatically renewed and (z) not permit the expiration
date (after giving effect to any renewal) of such Revolving Letter of Credit in
any event to be extended to a date later than five days before the Revolving
Maturity Date.  If either a Revolving
Notice of Renewal is not given by EnergySolutions or a Revolving Notice of Termination
is given by the Revolving Issuing Bank pursuant to the immediately preceding
sentence, such Revolving Letter of Credit shall expire on the date on which it
otherwise would have been automatically renewed.  Within the limits of the Revolving Letter of
Credit Commitment, and subject to the limits referred to above, EnergySolutions
may request the issuance of Revolving Letters of Credit under this Section 2.1(d),
repay any Letter of Credit Loans resulting from drawings thereunder pursuant to
Section 2.2(f) and request the issuance of additional
Revolving Letters of Credit under this Section 2.1(d).  EnergySolutions shall be liable for all
obligations in respect of each Revolving Letter of Credit issued for the
account of any of the Subsidiaries, including, without limitation, the
obligations to repay any Letter of Credit Loan in respect thereof under Section 2.4(c).

 

38

 

Section 2.2                Manner
of Borrowing and Disbursement.

 

(a)           Choice of Interest Rate, Etc.

 

(i)            Any Loan under the Revolving Commitment or made as a Term
Loan shall, at the option of EnergySolutions, bear interest as a Base Rate
Option Loan, or, subject to Section 2.2(a)(ii) and Article 10
hereof, a Eurodollar Revolving Loan or Eurodollar Term Loan, as the case may
be.  Any notice given to the
Administrative Agent in connection with a requested Loan hereunder shall be
given to the Administrative Agent prior to 12:30 p.m. (New York time) in order
for such Business Day to count toward the minimum number of Business Days required.

 

(ii)           (A)  On the date on which the aggregate unpaid
principal amount of any Eurodollar Revolving Loan or Eurodollar Term Loan shall
be reduced, by payment or prepayment or otherwise, to less than $1,000,000 in
the case of a Eurodollar Revolving Loan and $5,000,000 in the case of a
Eurodollar Term Loan, such Eurodollar Option Loan shall automatically, on the
last day of the then existing Interest Period therefor, be (1) reborrowed
as a Base Rate Revolving Loan, in the case of any Eurodollar Revolving Loan or (2) continued
as a Base Rate Term Loan, in the case of any Eurodollar Term Loan.

 

(B)           If
EnergySolutions shall fail to select the duration of any Interest Period for
any Eurodollar Revolving Loan or Eurodollar Term Loan in accordance with the
provisions contained in the definition of “Interest Period” in Section 1.1,
the Administrative Agent will forthwith so notify EnergySolutions and the
Lenders which have made such Eurodollar Option Loan, whereupon each such Eurodollar
Option Loan shall automatically, on the last day of the then existing Interest
Period therefor, be (1) reborrowed as a Base Rate Revolving Loan, in the
case of a Eurodollar Revolving Loan or (2) continued as a Base Rate Term
Loan, in the case of a Eurodollar Term Loan.

 

(C)           Upon
the occurrence and during the continuance of any Default, (1) each Eurodollar
Option Loan will automatically, on the last day of the then existing Interest
Period therefor, be (i) reborrowed as a Base Rate Revolving Loan, in the
case of a Eurodollar Revolving Loan or (ii) continued as a Base Rate Term
Loan, in the case of a Eurodollar Term Loan, and (2) the obligation of the
Lenders to make any Eurodollar Revolving Loan or Eurodollar Term Loan shall be
suspended.

 

(b)           Base Rate Option Loans.

 

(i)            Initial Loans. 
EnergySolutions shall give the Administrative Agent in the case of
initial Base Rate Option Loans at least one (1) Business Day’s irrevocable
prior written notice in the form of a Request for Loan or telephonic notice followed
immediately by a Request for Loan; provided, however, that
EnergySolutions’ failure to confirm any telephonic notice with a Request for
Loan shall not invalidate any notice so given.

 

(ii)           Repayments and Reborrowings of Base Rate Revolving
Loans.  Upon at least one (1), with
respect to items (B) and (C) of this sentence, or three (3), with
respect to item (A) of this sentence, Business Days’ irrevocable prior
written notice to the Administrative Agent, EnergySolutions may repay or prepay
a Base Rate Revolving Loan without regard to its Payment Date and (A) reborrow
all or a portion of the principal amount thereof as one or more Eurodollar 

 

39

 

Revolving Loans for the Interest Period(s) selected,
(B) reborrow all or a portion of the principal amount thereof as one or
more Base Rate Revolving Loans, or (C) not reborrow all or any portion of
such Base Rate Revolving Loan at that time. 
On the date indicated by EnergySolutions, such Base Rate Revolving Loan,
subject to the provisions hereof, shall be so repaid and, as applicable, reborrowed.

 

(iii)          Continuations of Base Rate Term Loans.  Upon at least one (1), with respect to items (B) and
(C) of this sentence, or three (3), with respect to item (A) of this sentence,
Business Days’ irrevocable prior written notice to the Administrative Agent,
EnergySolutions shall specify whether all or a portion of each Base Rate Term
Loan outstanding on the related Payment Date (A) is to be continued in
whole or in part as one or more Eurodollar Term Loans for the Interest Period(s) selected,
(B) is to be continued in whole or in part as one or more Base Rate Term
Loans, or (C) is to be repaid and not reborrowed.

 

(c)           Eurodollar Option Loans.

 

(i)            Initial Loans. 
EnergySolutions shall give the Administrative Agent in the case of any
initial Eurodollar Option Loan at least three (3) Business Days’
irrevocable prior written notice in the form of a Request for Loan or Request
for Term Loan Eurodollar Basis, or telephonic notice followed immediately by a
Request for Loan or Request for Term Loan Eurodollar Basis; provided, however,
that EnergySolutions’ failure to confirm any telephonic notice with a Request
for Loan or Request for Term Loan Eurodollar Basis shall not invalidate any notice
so given.  The Administrative Agent,
whose determination shall be conclusive absent manifest error, shall determine
the available Eurodollar Basis and shall notify EnergySolutions of such
Eurodollar Basis.  EnergySolutions shall
promptly notify the Administrative Agent by telephone or telecopy, and shall
immediately confirm any such telephonic notice in writing, of its selection of
a Eurodollar Basis and Interest Period for such Loan; provided, however,
that EnergySolutions’ failure to confirm any such telephonic notice in writing
shall not invalidate any notice so given.

 

(ii)           Repayments and Reborrowings of Eurodollar Revolving
Loans.  Upon at least one (1), with
respect to items (B) and (C) of this sentence, or three (3), with
respect to item (A) of this sentence, Business Days’ irrevocable prior
written notice to the Administrative Agent, EnergySolutions shall specify
whether all or a portion of each Eurodollar Revolving Loan outstanding on the
Payment Date (A) is to be repaid and then reborrowed in whole or in part
as one or more Eurodollar Revolving Loans for the Interest Period(s) selected,
(B) is to be repaid and then reborrowed in whole or in part as one or more
Base Rate Revolving Loans, or (C) is to be repaid and not reborrowed at
that time.

 

(iii)          Continuations of Eurodollar Term Loans.  Upon at least one (1), with respect to items (B) and
(C) of this sentence, or three (3), with respect to item (A) of this
sentence, Business Days’ irrevocable prior written notice to the Administrative
Agent, EnergySolutions shall specify whether all or a portion of each
Eurodollar Term Loan outstanding on the related Payment Date (A) is to be
continued in whole or in part as one or more Eurodollar Term Loans for the Interest
Period(s) selected, (B) is to be continued in whole or in part as a
Base Rate Term Loan, or (C) is to be repaid and not reborrowed.

 

40

 

(d)                                 Notification of
Lenders.  Upon receipt of a Request for
Loan, or a notice from EnergySolutions with respect to a selection of an
Interest Period for a Revolving Loan, or a notice from EnergySolutions with
respect to any outstanding Revolving Loan prior to the Payment Date for such
Revolving Loan, the Administrative Agent shall promptly notify each Lender by
telephone or telecopy of the contents thereof and the amount of such Lender’s
portion of the related Revolving Loan. 
Each Lender shall, not later than 2:30 p.m. (New York time) on the
date of borrowing specified in such notice, make available to the
Administrative Agent at the Administrative Agent’s Account, or at such account
as the Administrative Agent shall designate, the amount of its portion of any
Revolving Loan which represents an additional borrowing hereunder in
immediately available funds.

 

(e)                                  Disbursement.

 

(i)                                     Prior to 3:00 p.m.
(New York time) on the date of the making of a Revolving Loan hereunder, the
Administrative Agent shall, subject to the satisfaction of any applicable conditions
set forth in Article 3 hereof, disburse the amounts made available
to it by the Lenders in like funds by (A) transferring the amounts so made
available by wire transfer pursuant to EnergySolutions’ instructions, or (B) in
the absence of such instructions, crediting the amounts so made available to
the account of EnergySolutions maintained with the Administrative Agent; provided,
however, that the Administrative Agent shall first make the applicable
portion of such funds equal to the aggregate principal amount of any Letter of
Credit Loans made by the Revolving Issuing Bank and by any other Revolving
Lender and outstanding on the date of such Revolving Loan, plus interest
accrued and unpaid thereon to and as of such date, available to the Revolving
Issuing Bank and such other Revolving Lender for repayment of such Letter of
Credit Loans.

 

(ii)                                  Unless the
Administrative Agent shall have received notice from a Lender prior to 2:30 p.m.
(New York time) on the date of any Loan that such Lender will not make
available to the Administrative Agent such Lender’s ratable portion of such
Loan, the Administrative Agent may assume that such Lender has made or will
make such portion available to the Administrative Agent on the date of such
Loan and the Administrative Agent may in its sole discretion and in reliance
upon such assumption, make available to EnergySolutions on such date a
corresponding amount.  If and to the
extent the Lender does not make such ratable portion available to the Administrative
Agent, such Lender agrees to repay to the Administrative Agent on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to EnergySolutions until the date such amount is
repaid to the Administrative Agent, at the Federal Funds Rate for the first
three (3) days and thereafter at the Federal Funds Rate plus one percent
(1%).

 

(iii)                               If such Lender
shall repay to the Administrative Agent such corresponding amount, such amount
so repaid shall constitute such Lender’s portion of the applicable Loan for
purposes of this Agreement.  If such
Lender does not repay such corresponding amount immediately upon the
Administrative Agent’s demand therefor, the Administrative Agent shall notify
EnergySolutions and EnergySolutions shall immediately pay such corresponding
amount to the Administrative Agent, together with interest thereon.  The failure of any Lender to fund its portion
of any Loan shall not relieve any other Lender of its obligation hereunder to
fund its respective 

 

41

 

portion of the Loan on the date of such borrowing,
but no Lender shall be responsible for any such failure of any other Lender.

 

(iv)                              In the event that,
at any time when EnergySolutions is not in Default and has satisfied all
applicable conditions set forth in Article 3 hereof, a Lender for
any reason fails, refuses, or has given notice
to the Administrative Agent and/or EnergySolutions that it refuses, to fund its
portion of a Loan or, in accordance with Section 2.2(f)(ii) below,
a disbursed amount (a “Defaulting Lender”), then, until such time as
such Defaulting Lender has funded its portion of such Loan, or all other
Lenders have received payment in full (whether by repayment or prepayment) of
the principal and interest due in respect of such Loan, such Defaulting Lender
shall not have the right (i) to vote regarding any issue on which voting
is required or advisable under this Agreement or any other Loan Document, and
such Lender’s Unused Revolving Commitment and interest in any Loans or
Revolving Letters of Credit shall not be counted as outstanding for purposes of
determining “Majority Lenders” hereunder or (ii) to receive payments of (A) principal,
interest or fees from EnergySolutions in respect of its unfunded portion of
Loans, (B) any commitment fee in respect of its Revolving Commitment or (C) any
portion of Revolving Letter of Credit fees or interests or amounts in respect
of any Letter of Credit Loans.  In
addition to the foregoing, and notwithstanding Section 2.1(d), if
any Lender shall become a Defaulting Lender, the Revolving Letter of Credit
Commitment shall be reduced by an amount equal to such Defaulting Lender’s Pro
Rata Share of the Revolving Letter of Credit Commitment unless and until
arrangements reasonably satisfactory to the Revolving Issuing Bank have been
entered into (the Revolving Issuing Bank having made a good faith effort to
enter into such arrangements) to eliminate the Revolving Issuing Bank’s risk
with respect to the Defaulting Lender’s Pro Rata Share of the Revolving Letter
of Credit Commitment, including cash collateralizing the Revolving Issuing Bank’s
Revolving Letter of Credit Commitment with respect to such Defaulting Lender’s
Pro Rata Share.  The provisions of this Section 2.2(e)(iv) are
not in lieu of any other claim EnergySolutions may have against such Defaulting
Lender.

 

(f)                                    Issuance of and
Drawings and Reimbursement under Letters of Credit.

 

(i)                                     Request for Issuance.  Each Letter of Credit shall be issued upon
notice, given not later than 12:30 p.m. (New York time) on the fifth
Business Day prior to the date of the proposed issuance of such Letter of
Credit, by EnergySolutions to the applicable Issuing Bank, which shall give to
the Administrative Agent and each Revolving Lender (in the case of a request
for a Revolving Letter of Credit) or each Synthetic Lender (in the case of a
request for a Synthetic Letter of Credit) prompt notice thereof by telecopier
or electronic communication.  Each such
notice of issuance of a Letter of Credit (a “Notice of Issuance”) shall
be by telephone, confirmed immediately in writing, or telecopier or electronic
communication, specifying therein the requested (A) date of such issuance
(which shall be a Business Day), (B) Available Amount of such Letter of
Credit (which amount shall not be less than $100,000), (C) expiration date
of such Letter of Credit, (D) name and address of the beneficiary of such
Letter of Credit and (E) form of such Letter of Credit, and shall be
accompanied by such application and agreement for Letter of Credit as the
Issuing Bank may specify to EnergySolutions for use in connection with such requested
Letter of Credit (a “Revolving Letter of Credit Agreement” or a “Synthetic
Letter of Credit Agreement,” as applicable).  If (x) the requested form of such Letter
of Credit is acceptable to the applicable Issuing Bank in its sole discretion, (y) as
of the requested date of issuance, the requirements of Section 2.1(c) or
2.17(a) hereof have been satisfied as to such Letter of 

 

42

 

Credit, and (z) the applicable Issuing
Bank has not received notice of objection to such issuance from the Majority
Lenders, the applicable Issuing Bank will, upon fulfillment of the applicable
conditions set forth in Article 3, make such Letter of Credit
available to EnergySolutions at its office referred to in Section 11.1
or as otherwise agreed with EnergySolutions in connection with such issuance.  In the event and to the extent that the
provisions of any Letter of Credit Agreement shall conflict with this
Agreement, the provisions of this Agreement shall govern.

 

(ii)                                  Participations
in Revolving Letters of Credit.  Upon the issuance of a Revolving Letter of
Credit by the Revolving Issuing Bank, the Revolving Issuing Bank shall be
deemed, without further action by any party hereto, to have sold to each
Revolving Lender, and each such Revolving Lender shall be deemed, without
further action by any party hereto, to have purchased from the Revolving
Issuing Bank, a participation in such Revolving Letter of Credit in an amount
for each Revolving Lender equal to the Dollar Equivalent of such Lender’s Pro
Rata Share of the Available Amount of such Revolving Letter of Credit, effective
upon the issuance of such Revolving Letter of Credit.  In consideration and in furtherance of the
foregoing, each Revolving Lender hereby absolutely and unconditionally agrees
to pay such Lender’s Pro Rata Share of each L/C Disbursement made by the
Revolving Issuing Bank and not reimbursed by EnergySolutions forthwith on the
date due as provided in Section 2.4(d) (or which has been so
reimbursed but must be returned or restored by the Revolving Issuing Bank
because of the occurrence of an event specified in Section 8.1(f) or
(g) or otherwise) by making available to the Administrative Agent
for the account of the Revolving Issuing Bank by deposit to the Administrative
Agent’s Account, in same day funds, an amount equal to the Dollar Equivalent of
such Lender’s Pro Rata Share of such L/C Disbursement.  Each Revolving Lender acknowledges and agrees
that its obligation to acquire participations pursuant to this Section 2.2(f)(ii) in
respect of Revolving Letters of Credit is absolute and unconditional and shall
not be affected by any circumstance whatsoever, including the occurrence and
continuance of a Default or an Event of Default or the termination of the Commitments,
and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever.  If
and to the extent that any Revolving Lender shall not have so made the amount
of such L/C Disbursement available to the Administrative Agent, such Revolving
Lender agrees to pay to the Administrative Agent forthwith on demand such
amount together with interest thereon, for each day from the date such L/C
Disbursement is due pursuant to Section 2.4(c) until the date
such amount is paid to the Administrative Agent, at the Federal Funds Rate for
its account or the account of the Revolving Issuing Bank, as applicable.  If such Lender shall pay to the
Administrative Agent such amount for the account of the Revolving Issuing Bank
on any Business Day, such amount so paid in respect of principal shall
constitute a Letter of Credit Loan made by such Lender on such Business Day for
purposes of this Agreement, and the outstanding principal amount of the Letter
of Credit Loan made by the Revolving Issuing Bank shall be reduced by such
amount on such Business Day.

 

(iii)                               [Reserved.]

 

(iv)                              Drawing and
Reimbursement.  The payment
by the Revolving Issuing Bank of a draft drawn under any Revolving Letter of
Credit shall constitute for all purposes of this Agreement the making by the
Revolving Issuing Bank of a Letter of Credit Loan, which shall be a Base Rate
Option Loan, in the Dollar Equivalent of the amount of such draft.

 

43

 

(v)                                 Letter of
Credit Reports.  The Issuing
Banks shall furnish (A) to the Administrative Agent on or about the first
Business Day of each week a written report summarizing issuance and expiration
dates of Letters of Credit issued during the previous week and drawings during
such week under all Letters of Credit, (B) to each Revolving Lender and
Synthetic Lender on or about the first Business Day of each month a written
report summarizing issuance and expiration dates of Letters of Credit issued
during the preceding month and drawings during such month under all Letters of
Credit and (C) to the Administrative Agent and each Revolving Lender on
the first Business Day of each calendar quarter a written report setting forth
the average daily aggregate Available Amount during the preceding calendar
quarter of all Revolving Letters of Credit.

 

(vi)                              Failure to Make
Letter of Credit Loans.  The
failure of any Lender to make the Letter of Credit Loan to be made by it on the
date specified in Section 2.4(c) shall not relieve any other
Lender of its obligation hereunder to make its Letter of Credit Loan on such
date, but no Lender shall be responsible for the failure of any other Lender to
make the Letter of Credit Loan to be made by such other Lender on such date.

 

(vii)                           [Reserved.]

 

(viii)                        Applicability
of ISP98.  Unless
otherwise expressly agreed by the applicable Issuing Bank and EnergySolutions
when a Letter of Credit is issued, the rules of the “International Standby
Practices 1998” published by the Institute of International Banking Law &
Practice (or such later version thereof as may be in effect at the time of
issuance) shall apply to each Letter of Credit.

 

Section 2.3                                                Interest.

 

(a)                                  On Base Rate
Option Loans.  Interest on
each Base Rate Option Loan shall be computed on the basis of a year of 365/366
days for the actual number of days elapsed and shall be payable at the Base
Rate Basis for such Base Rate Option Loan, in arrears on the applicable Payment
Date for the period through the date immediately preceding such Payment
Date.  Interest on Base Rate Option Loans
then outstanding shall also be due and payable on the Revolving Maturity Date
or the Term Loan Maturity Date, as applicable, with respect to Revolving Loans
and Term Loans.

 

(b)                                 On Eurodollar
Option Loans.  Interest on
each Eurodollar Option Loan shall be computed on the basis of a 360-day year
for the actual number of days elapsed and shall be payable at the Eurodollar
Basis for such Eurodollar Option Loan, in arrears on the applicable Payment
Date for the period through the day immediately preceding such Payment Date,
and, in addition, if the Interest Period for a Eurodollar Option Loan exceeds
three (3) months, interest on such Eurodollar Option Loan shall also be
due and payable in arrears on every three-month anniversary of the first day of
such Interest Period.  Interest on
Eurodollar Option Loans then outstanding shall also be due and payable on the
Revolving Maturity Date or the Term Loan Maturity Date, as applicable, with
respect to Revolving Loans and Term Loans.

 

(c)                                  Interest if No
Notice of Selection of Interest Rate Basis.  With respect to any Loan, if EnergySolutions
fails to give the Administrative Agent timely notice of its selection of a 

 

44

 

Eurodollar Basis, or if for any reason a
determination of a Eurodollar Basis for any Loan is not timely concluded, the
Base Rate Basis shall apply to such Loan.

 

(d)                                 Interest upon
Default.  Immediately upon the
occurrence of an Event of Default hereunder, all overdue principal in respect
of the Loans, together with accrued and unpaid overdue interest, premium and
other unpaid sums, shall bear interest at the Default Rate.  Such interest shall be payable on demand and
shall accrue until the earliest of (a) waiver or cure (to the satisfaction
of the Lenders required under Section 11.12 hereof to waive or
cure) of such Event of Default, or (b) agreement by the Majority Lenders
to rescind the charging of interest at the Default Rate, or (c) payment in
full of the Obligations.

 

(e)                                  Eurodollar
Option Loans.  At no time
may the number of outstanding Eurodollar Option Loans exceed eight (8).

 

(f)                                    Applicable
Margin.  With respect to any Loan
hereunder, the Applicable Margin shall be (i) with respect to any Term
Loan, (x) 3.75% for Eurodollar Term Loans (or 3.25% when the Leverage
Ratio as of the most recently completed fiscal quarter is less than 2.0 to 1.0)
and (y) 2.25% for Base Rate Term Loans (or 1.75% when the Leverage Ratio
as of the most recently completed fiscal quarter is less than 2.0 to 1.0), (ii) with
respect to any Revolving Loan, (x) 3.75% for Eurodollar Option Loans and (y) 2.25%
for Base Rate Options Loans, (iii) with respect to any Synthetic Deposit
and unreimbursed Disbursements in accordance with Section 2.17(d),
3.75% (or 3.25% when the Leverage Ratio as of the most recently completed
fiscal quarter is less than 2.0 to 1.0).

 

Section 2.4                                                Repayment.

 

(a)                                  Any unpaid
principal and interest of the Revolving Loans and any other outstanding
Obligations under the Revolving Commitment shall be due and payable in full on
the Revolving Maturity Date.  All Synthetic
Deposits shall be refunded and any unpaid interest and
participation fees in respect of such Synthetic Deposits, any unreimbursed
Disbursements and any other outstanding Obligations relating to the
Synthetic Deposits or the Synthetic Letter of Credit Commitment shall be due
and payable in full on June 7, 2013.

 

(b)                                 [Reserved].

 

(c)                                  Commencing September 30,
2006 and at the end of each calendar quarter for the next 26 calendar quarters,
the outstanding principal balance of the Term Loans shall be repaid in an
amount equal to the product of the outstanding principal balance of the Term
Loans as of the opening of business on September 30, 2006 multiplied by
0.25%.  Notwithstanding anything to the
contrary in this Section 2.4(c), any unpaid principal and interest
of the Term Loans shall be due and payable in full on the Term Loan Maturity
Date.

 

(d)                                 Letter of
Credit Loans.

 

(i)                                     EnergySolutions
shall repay to the Administrative Agent for the account of the Revolving
Issuing Bank and each other Revolving Lender that has made a Letter of Credit
Loan on the earlier of (1) the Business Day when such Letter of Credit
Loan is made, if made on or prior to 2:00 p.m. (New York time), or the
succeeding Business Day, if made after 2:00 p.m. 

 

45

 

(New York time), and (2) the Revolving
Maturity Date, the outstanding principal amount of each Letter of Credit Loan
made by each of them; provided that if the repayment of any such Letter
of Credit Loan by EnergySolutions is made in respect of a Letter of Credit denominated
in an Available Foreign Currency, such repayment of a Letter of Credit Loan
shall include all additional amounts necessary to reimburse the Revolving
Issuing Bank or the Revolving Lenders for exchange rate fluctuations such that
the total repayment by EnergySolutions shall, in the reasonable judgment of the
Administrative Agent, be equal to the amount of the L/C Disbursement.

 

(ii)                                  The Obligations
of EnergySolutions and the Revolving Lenders with respect to Revolving Letters
of Credit under this Agreement, any Letter of Credit Agreement and any other
agreement or instrument relating to any Revolving Letter of Credit, shall be
unconditional and irrevocable, and shall be paid strictly in accordance with
the terms of this Agreement, such Letter of Credit Agreement and such other
agreement or instrument under all circumstances, including, without limitation,
the following circumstances:

 

(A)                              any lack of validity or
enforceability of any Loan Document, any Letter of Credit Agreement, any Letter
of Credit or any other agreement or instrument relating thereto (all of the
foregoing being, collectively, the “L/C Related Documents”);

 

(B)                                any change in the time,
manner or place of payment of, or in any other term of, all or any of the
Obligations of EnergySolutions in respect of any L/C Related Document or any
other amendment or waiver of or any consent to departure from all or any of the
L/C Related Documents;

 

(C)                                the existence of any claim,
set-off, defense or other right that EnergySolutions may have at any time
against any beneficiary or any transferee of a Letter of Credit (or any Persons
for which any such beneficiary or any such transferee may be acting), the
Issuing Bank or any other Person, whether in connection with the transactions
contemplated by the L/C Related Documents or any unrelated transaction;

 

(D)                               any statement or any other
document presented under a Letter of Credit proving to be forged, fraudulent,
invalid or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect;

 

(E)                                 payment by the Issuing Bank
under a Letter of Credit against presentation of a draft, certificate or other
document that does not strictly comply with the terms of such Letter of Credit;

 

(F)                                 any exchange, release or
non-perfection of any Collateral or other collateral, or any release or
amendment or waiver of or consent to departure from any Guaranty or any other
guarantee, for all or any of the Obligations of EnergySolutions in respect of
the L/C Related Documents; or

 

(G)                                any other circumstance or
happening whatsoever, whether or not similar to any of the foregoing,
including, without limitation, any other circumstance that might otherwise
constitute a defense available to, or a discharge of, EnergySolutions or a guarantor.

 

46

 

Section 2.5                                                Fees.

 

(a)                                  Fees Payable
Under the Fee Letter. 
EnergySolutions agrees to pay such fees as are mutually agreed upon and
as are described in the Fee Letter.

 

(b)                                 Commitment Fee.  In addition, EnergySolutions agrees to pay to
the Administrative Agent, for the benefit of each of the Revolving Lenders in
accordance with their respective Revolving Commitments, a commitment fee on the
aggregate Unused Revolving Commitments, for each day from the Agreement Date
until the Revolving Maturity Date calculated at the rate of 0.50% per annum.

 

The aggregate Available Amount of all Revolving
Letters of Credit outstanding shall count as usage for purposes of computing
the foregoing commitment fee.  Such
commitment fee shall be computed on the basis of a year of 360 days for the
actual number of days elapsed, shall be payable quarterly in arrears on the
last Business Day of each calendar quarter, commencing on September 30,
2006, and on the Revolving Maturity Date, shall be fully earned when due, and
shall be non-refundable when paid.

 

(c)                                  Letter of
Credit Fees.

 

(i)                                     EnergySolutions
shall pay to the Administrative Agent for the account of each Revolving Lender
a commission on such Revolving Lender’s Pro Rata Share of the average daily
aggregate Available Amount of all Revolving Letters of Credit outstanding from
time to time at a rate per annum equal to the Applicable Margin for Eurodollar
Option Loans under the Revolving Commitments in effect from time to time, if
any, payable in arrears quarterly on the last Business Day of each calendar
quarter, commencing on September 30, 2006, and on the Revolving Maturity
Date and thereafter from time to time on demand, shall be fully earned when due,
and shall be non-refundable when paid.

 

(ii)                                  EnergySolutions
shall pay to the Revolving Issuing Bank, for its own account, a Revolving
Letter of Credit fronting fee in respect of each Revolving Letter of Credit, payable
in arrears quarterly on the last Business Day of each calendar quarter and on
the Revolving Maturity Date, of such Revolving Letter of Credit, computed at
0.25% per annum of the face amount of such Revolving Letter of Credit, and
shall also pay to the Revolving Issuing Bank customary commissions, issuance
fees, fronting fees, transfer fees and other fees and charges in connection
with the issuance, administration, amendment, payment and negotiation of each Revolving
Letter of Credit.  EnergySolutions shall
pay to the Synthetic Issuing Bank, for its own account, a Synthetic Letter of
Credit fronting fee in respect of each Synthetic Letter of Credit, payable in arrears
quarterly on the last Business Day of each calendar quarter and on the
Synthetic Letter of Credit Maturity Date, of such Synthetic Letter of Credit,
computed at 0.25% per annum of the face amount of such Letter
of Credit, and shall also pay to the Synthetic Issuing Bank
customary commissions, issuance fees, fronting fees, transfer fees and other
fees and charges in connection with the issuance, administration, amendment,
payment and negotiation of each Synthetic Letter of
Credit.  Letter of Credit commissions
shall be computed on the basis of a year of 360 days for the actual number of
days elapsed.

 

47

 

(d)                                 Participation
Fees.

 

(i)                                     Upon the
deposit of the Synthetic Deposits in the Synthetic Deposit Account, the fees (“Participation
Fees”) relative to the Synthetic Deposits shall accrue at a rate per annum
equal to the sum of the Eurodollar Rate for the relevant Interest Period plus
the Applicable Margin; provided that
the amount due and payable by EnergySolutions under this clause shall be the
amount set forth above less the Synthetic Deposit Return payable by the
Administrative Agent to the Synthetic Lenders pursuant to Section 2.16(d) for
the applicable period. All Synthetic Deposits shall accrue fees at all times
that they are on deposit in the Synthetic Deposit Account.

 

(ii)                                  Participation
Fees accrued on each Synthetic Deposit shall be payable, without duplication: (a) on
the Synthetic Letter of Credit Maturity Date, (b) on the date of any
return of a Synthetic Deposit pursuant to Section 2.7, on the
amount of such deemed Synthetic Deposits so returned and (c) on the last
day of each Interest Period.

 

Section 2.6                                                Optional
Prepayments and Application of Prepayments.

 

(a)                                  Optional
Prepayment of Loans.  Subject to Section 2.6(b),
the principal amount of any Base Rate Option Loan may be prepaid in full or in
part at any time, without penalty or premium and without regard to the Payment
Date for such Loan, upon not less than one (1) Business Day’s prior
written notice to the Administrative Agent of such prepayment.  Subject to Section 2.6(b) and
Section 2.11, Eurodollar Option Loans may be prepaid prior to the
due date thereof, upon not less than three (3) Business Days’ prior
written notice to the Administrative Agent. 
Partial prepayments shall be in a principal amount of not less than
$1,000,000 and in an integral multiple of $500,000.  A notice of prepayment shall be irrevocable.

 

(b)                                 Application of
Prepayment.  Each
prepayment of the Term Loans shall be applied (i) first, in direct order
of maturities, to the next four scheduled principal repayment installments of
the Term Facility and (ii) second, to the other principal repayment
installments of the Term Facility on a pro rata basis among the Term
Lenders.  Any prepayment of Revolving
Loans shall be applied (A) first, to prepayment of the Letter of Credit
Loans then outstanding until such Loans are paid in full, (B) second, to
prepayment of Revolving Loans then outstanding until such Loans are paid in
full and (C) third, to be deposited in the L/C Collateral Account to cash
collateralize the aggregate Available Amount of the Revolving Letters of Credit
then outstanding.  Any prepayment of the
Term Facility may not be reborrowed.  Any
prepayment of Revolving Loans pursuant to this Section 2.6 shall
not reduce the Revolving Commitment.  The
prepayment of any principal amount of Loans shall be made with accrued interest
to the date of such prepayment on the aggregate principal amount prepaid and
EnergySolutions shall reimburse the Lenders and the Administrative Agent, on
demand, for any loss or out-of-pocket expense incurred by any Lender Party or
the Administrative Agent in connection with such prepayment, as set forth in Section 2.11
hereof.  Any prepayment under this
Agreement shall not affect EnergySolutions’ obligation to continue making
payments under any Secured Hedge Agreements, which shall remain in full force
and effect notwithstanding such prepayment, subject to the terms of such
Secured Hedge Agreements.

 

Section 2.7                                                Synthetic
Deposit Reductions.

 

From time to time on any Business Day,
EnergySolutions may cause the Synthetic Deposits to be returned ratably to the
Synthetic Lenders; provided that (A) all such voluntary reductions 

 

48

 

shall require at least one but no more than
five Business Days’ prior telephonic notice (promptly confirmed by facsimile)
to the Administrative Agent; (B) all such voluntary partial returns shall
be in an aggregate minimum amount of $1,000,000 and an integral multiple of
$500,000, and (C) such reductions shall be accompanied by reimbursement
for losses or out-of-pocket expenses in accordance with Section 2.11,
if any.

 

Section 2.8                                                Mandatory
Prepayments.

 

(a)                                  In addition to
the scheduled repayments provided for in Section 2.4 hereof, EnergySolutions
shall prepay the Term Loans in an amount equal to 100% of the Net Proceeds (w) from
any sale or disposition by Holdco, Parent or any of their Subsidiaries of any
interest in any Loan Party (other than from a sale to another Loan Party), (x) except
as set forth below, from any Permitted Asset Sales (other than any Excluded
Asset Sales) and (y) except as set forth in Section 5.5(e) hereof,
received as a result of a casualty or condemnation.  Such amount shall be applied on the third
Business Day following receipt thereof by EnergySolutions or the affected
Subsidiary in accordance with Section 2.6(b).  EnergySolutions shall also prepay the Term
Loans, with application thereto in accordance with Section 2.6(b),
in respective amounts equal to the after-Tax amount of any refund, purchase
price adjustment, claim or credit arising under any agreement governing or
relating to any acquisition of any assets or business.  Notwithstanding the foregoing, with respect
to any Net Proceeds realized or received with respect to any Permitted Asset
Sales (other than any Excluded Asset Sales), at the option of EnergySolutions,
and so long as no Default or Event of Default shall have occurred and be continuing,
EnergySolutions may reinvest all or any portion of such Net Proceeds in assets
used or useful for its business within three hundred sixty-five (365) days
following receipt of such Net Proceeds; provided, however, that (i) if
the property subject to such asset sale constituted Collateral under the Security
Documents, then any capital assets purchased with the Net Proceeds thereof pursuant
to this subsection shall be mortgaged or pledged, as the case may be, to the
Administrative Agent, for the benefit of the Secured Parties and (ii) if
any Net Proceeds are no longer intended to be so reinvested at any time after
delivery of a notice of reinvestment election, an amount equal to any such Net
Proceeds shall be immediately applied to the prepayment of the Loans in
accordance with Section 2.6(b). 
For the purposes of calculating the mandatory prepayment required by
this Section 2.8(a), “Net Proceeds” shall exclude all Net Proceeds
received by Duratek and its Subsidiaries; provided that “Duratek and
its Subsidiaries” shall not include EnergySolutions and its Subsidiaries if
EnergySolutions is a Subsidiary of Duratek.

 

(b)                                 In addition to
the scheduled repayments provided for in Section 2.4 hereof, EnergySolutions
shall prepay the Term Loans in an amount equal to one hundred percent (100%) of
the Net Proceeds received after the Second Amendment Effective Date from any
Indebtedness for Money Borrowed incurred by Holdco, EnergySolutions, Parent or
any of their Subsidiaries, except for Indebtedness for Money Borrowed (i) permitted
by Section 7.1 hereof or (ii) incurred in connection with any
Permitted Investments or Permitted Acquisitions permitted under Section 7.6
hereof (including any Indebtedness assumed by EnergySolutions or the
Subsidiaries in connection with any such Permitted Investment or Permitted
Acquisition), to the extent that upon consummation of any such Permitted
Investment or Permitted Acquisition such Net Proceeds were invested in, or used
to acquire, such Permitted Investment or Permitted Acquisition, other than,
in the case of clauses (i) and (ii), any Additional Permitted Debt
incurred pursuant to Section 7.1(w) (to the extent required to
prepay Term Loans pursuant to such section).  Such amount 

 

49

 

shall be applied on the third Business Day following
receipt thereof by EnergySolutions, Parent or the affected Subsidiary in
accordance with Section 2.6(b). 
For the purposes of calculating the mandatory prepayment required by
this Section 2.8(b), “Net Proceeds” shall exclude all Net Proceeds
received from any Indebtedness for Money Borrowed incurred by Duratek and its
Subsidiaries other than under Section 7.1(w) of this Agreement
or the Duratek Loan Agreement; provided that “Duratek and its Subsidiaries”
shall not include EnergySolutions and its Subsidiaries if EnergySolutions is a
Subsidiary of Duratek.

 

(c)                                  In addition to
the scheduled repayments provided for in Section 2.4 hereof, for
each fiscal quarter during the term hereof (commencing with the fiscal quarter
ended September 30, 2006), on or prior to the fifth Business Day following
delivery of the financial statements required by Sections 6.1 and 6.2
hereof for the most recently completed fiscal quarter, (x) so long as the
Leverage Ratio as of the end of the most recently completed fiscal quarter is
equal to or greater than 3.0 to 1.0, EnergySolutions shall prepay the Term
Loans in an amount equal to the difference between (i) fifty percent (50%)
of Excess Cash Flow for the most recently completed fiscal quarter and (ii) an
amount equal to the optional prepayments made pursuant to Section 2.6
in such fiscal period, (y) if the Leverage Ratio as of the end of the most
recently completed fiscal quarter is less than 3.0 to 1.0 and greater than 1.0
to 1.0, EnergySolutions shall prepay the Term Loans in an amount equal to the
difference between (i) twenty-five percent (25%) of Excess Cash Flow for
the most recently completed fiscal quarter and (ii) an amount equal to the
optional prepayments made pursuant to Section 2.6 in such fiscal
period and (z) if the Leverage Ratio as of the end of the most recently
completed fiscal quarter is less than or equal to 1.0 to 1.0, EnergySolutions
shall not be required prepay the Term Loans.

 

(d)                                 On each date
when the aggregate amount of all Synthetic Letter of Credit Outstandings
exceeds the Synthetic Facility Available Amount, EnergySolutions shall cash collateralize
all Synthetic Letter of Credit Outstandings in an aggregate amount equal to
such excess.

 

(e)                                  Any prepayment
pursuant to this Section 2.8 shall be made in the manner set forth
in Section 2.6(b).

 

Section 2.9                                                Evidence of
Debt.

 

(a)                                  The Loans shall
be repayable in accordance with the terms and provisions set forth herein.  Upon the request of any Lender, Notes shall
be issued by EnergySolutions and payable to the order of such Lender reflecting
such Lender’s Revolving Commitment and Term Loans.  The Notes issued by EnergySolutions to the
Lenders shall be duly executed and delivered by one or more Authorized Signatories.

 

(b)                                 Each Lender
Party shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of EnergySolutions to such Lender Party resulting
from each Loan owing to such Lender Party from time to time, including the
amounts of principal and interest payable and paid to such Lender Party from
time to time hereunder.

 

(c)                                  The Register
maintained by the Administrative Agent pursuant to Section 11.5(c) shall
include a control account, and a subsidiary account for each Lender Party, in
which accounts (taken together) shall be recorded (i) the date and amount
of each Loan made hereunder,

 

50

 

the
Type of such Loan and, if appropriate, the Interest Period applicable thereto, (ii) the
terms of each Assignment and Assumption Agreement delivered to and accepted by
it, (iii) the amount of any principal or interest due and payable or to
become due and payable from EnergySolutions to each Lender Party hereunder, (iv) the
amount of any sum received by the Administrative Agent from EnergySolutions
hereunder and each Lender Party’s share thereof and (v) the amount of such
Lender Party’s Synthetic Deposits.

 

(d)                                 Entries made in
good faith by the Administrative Agent in the Register pursuant to Section 2.9(c) above,
and by each Lender Party in its account or accounts pursuant to Section 2.9(b) above,
shall be prima facie evidence of the amount of principal and interest due and
payable or to become due and payable from EnergySolutions to, in the case of
the Register, each Lender Party and, in the case of such account or accounts,
such Lender Party, under this Agreement, absent manifest error; provided,
however, that the failure of the Administrative Agent or such Lender
Party to make an entry, or any finding that an entry is incorrect, in the
Register or such account or accounts shall not limit or otherwise affect the
obligations of EnergySolutions under this Agreement.

 

Section 2.10                                          Manner of
Payment.

 

(a)                                  Each payment
(including any prepayment) by EnergySolutions on account of the principal of or
interest on the Loans, commitment fees and any other amount owed to the Lender
Parties, the Administrative Agent or any of them under this Agreement shall be
made not later than 2:00 p.m. (New York time) on the date specified for
payment under this Agreement to the Administrative Agent at the Administrative
Agent’s Account, for the account of the Lender Parties, or the Administrative
Agent, as the case may be, in lawful money of the United States of America in
immediately available funds without set-off or counterclaim.  Any payment received by the Administrative
Agent after 2:00 p.m. (New York time) shall be deemed received on the next
Business Day.  Receipt by the
Administrative Agent of any payment hereunder at or prior to 2:00 p.m.
(New York time) on any Business Day shall be deemed to constitute receipt on
such Business Day.  In the case of a
payment for the account of a Lender Party, the Administrative Agent will
promptly thereafter (and, if such amount is received before 2:00 p.m. (New
York time), on the same day) distribute the amount so received in like funds to
such Lender Party.  If the Administrative
Agent shall not have received any payment from EnergySolutions as and when due,
the Administrative Agent will promptly notify the Lender Parties
accordingly.  Only upon its acceptance of
an Assignment and Assumption Agreement and recording of the information contained
therein in the Register pursuant to Section 11.5(c), from and after
the effective date of such Assignment and Assumption Agreement, the
Administrative Agent shall make all payments hereunder and under the Notes in
respect of the interest assigned thereby to the Lender Party assignee
thereunder, and the parties to such Assignment and Assumption Agreement shall
make all appropriate adjustments in such payments for periods prior to such
effective date directly between themselves.

 

(b)                                 EnergySolutions
agrees to pay principal, interest, fees and all other Obligations due
hereunder, under the Fee Letter, under any Notes or under the other Loan
Documents without set-off or counterclaim or any deduction whatsoever (other
than any deductions or withholdings required by law on account of Taxes).

 

51

 

(c)                                  Prior to the
acceleration of the Loans under Section 8.2 hereof, if some but
less than all amounts due from EnergySolutions are received by the
Administrative Agent with respect to the Obligations, the Administrative Agent
shall distribute such amounts in the following order of priority:

 

(i)                                     first, to the
payment of all of the fees, indemnification payments, costs and expenses that
are due and payable to the Administrative Agent (solely in its capacity as the
Administrative Agent) under or in respect of this Agreement and the other Loan
Documents on such date, ratably based upon the respective aggregate amounts of
all such fees, indemnification payments, costs and expenses owing to the
Administrative Agent on such date;

 

(ii)                                  second, to the
payment of all of the fees, indemnification payments, costs and expenses that
are due and payable to each Issuing Bank (solely in its capacity as such) under
or in respect of this Agreement and the other Loan Documents on such date,
ratably based upon the respective aggregate amounts of all such fees,
indemnification payments, costs and expenses owing to the such Issuing Bank on
such date;

 

(iii)                               third, to the
payment of all of the indemnification payments, costs and expenses that are due
and payable to the Lenders under or in respect of this Agreement and the other
Loan Documents on such date, ratably based upon the respective aggregate
amounts of all such indemnification payments, costs and expenses owing to the
Lenders on such date;

 

(iv)                              fourth, to the
payment of all of fees and the accrued and unpaid interest and any premiums on
the Obligations of EnergySolutions under or in respect of the Loan Documents
that is due and payable to the Administrative Agent and the Lender Parties,
ratably based upon the respective aggregate amounts of all such interest owing
to the Administrative Agent and the Lender Parties on such date;

 

(v)                                 fifth, ratably to
the payment of the principal amount of all of the outstanding Loans that is due
and payable to the Administrative Agent and the Lender Parties on such date,
ratably based upon the respective aggregate amounts of all such principal owing
to the Administrative Agent and the Lender Parties on such date and amounts
payable under Secured Hedge Agreements with Lenders and/or their Affiliates (or
Persons that were Lenders or Affiliates of Lenders at the time any such Secured
Hedge Agreement was entered into);

 

(vi)                              sixth, to the
payment of all other Secured Obligations of the Loan Parties owing under or in
respect of the Loan Documents or Secured Hedge Agreements that are due and
payable to the Administrative Agent and the other Secured Parties on such date,
ratably based upon the respective aggregate amounts of all such Secured
Obligations owing to the Administrative Agent and the other Secured Parties on
such date; and

 

(vii)                           seventh, the balance,
if any, to the person lawfully entitled thereto (including the applicable Loan
Party or its successors or assigns) or as a court of competent jurisdiction may
direct.

 

52

 

(d)                                 If the
Administrative Agent receives funds for application to the Obligations of the
Loan Parties under or in respect of the Loan Documents under circumstances for
which the Loan Documents do not specify the Loans to which, or the manner in
which, such funds are to be applied, the Administrative Agent may, but shall
not be obligated to, in the case of the Term Loans, for application to such
principal repayment installments thereof, as the Administrative Agent shall
direct, and in other cases, elect to, distribute such funds to each of the
Lender Parties in accordance with such Lender Party’s pro rata share of the sum
of (i) the aggregate principal amount of the Loans outstanding at such
time, (ii) the aggregate Available Amount of all Revolving Letters of
Credit outstanding at such time and (iii) the aggregate amount of all
unreimbursed Disbursements in respect of Synthetic Letters of Credit, in
repayment or prepayment of such of the outstanding Loans or other Obligations
then owing to such Lender Party.

 

(e)                                  Subject to any
contrary provisions in the definition of “Interest Period,” if any payment
under this Agreement or any of the other Loan Documents is specified to be made
on a day which is not a Business Day, it shall be made on the next Business
Day, and such extension of time shall in such case be included in computing
interest and fees, if any, in connection with such payment; provided, however,
that, if such extension would cause payment of interest on or principal of
Eurodollar Option Loans to be made in the next following calendar month, such
payment shall be made on the next preceding Business Day.

 

(f)                                    Unless the
Administrative Agent shall have received notice from EnergySolutions prior to
the date on which any payment is due to any Lender Party hereunder that
EnergySolutions will not make such payment in full, the Administrative Agent
may assume that EnergySolutions has made such payment in full to the
Administrative Agent on such date and the Administrative Agent may, in reliance
upon such assumption, cause to be distributed to each such Lender Party on such
due date an amount equal to the amount then due such Lender Party.  If and to the extent EnergySolutions shall
not have so made such payment in full to the Administrative Agent, each such
Lender Party shall repay to the Administrative Agent forthwith on demand such
amount distributed to such Lender Party together with interest thereon, for
each day from the date such amount is distributed to such Lender Party until
the date such Lender Party repays such amount to the Administrative Agent, at
the Federal Funds Rate.

 

Section 2.11                                          Reimbursement.

 

(a)                                  Whenever any
Lender shall sustain or incur any losses or out-of-pocket expenses in
connection with (i) failure by EnergySolutions to borrow any Eurodollar
Option Loan after having given notice of its intention to borrow in accordance
with Section 2.2 hereof (whether by reason of EnergySolutions’
election not to proceed or the non-fulfillment of any of the conditions set
forth in Article 3), or (ii) payment of any Eurodollar Option
Loan in whole or in part pursuant to Section 2.2(a)(ii), 2.6,
2.8, 10.2 or 11.24, acceleration of the maturity of the
Loans pursuant to Section 8.2 or for any other reason, EnergySolutions
agrees to pay to such Lender, upon demand, an amount sufficient to compensate
such Lender for all such losses and reasonable out-of-pocket expenses.  Such Lender’s good faith determination of the
amount of such losses or out-of-pocket expenses, as set forth in writing
pursuant to Section 2.11(b) hereof, and accompanied by calculations
in reasonable detail demonstrating the basis for its demand, shall be presumptively
correct, absent manifest error.

 

53

 

(b)                                 Losses subject
to reimbursement hereunder shall be (i) any loss incurred by any Lender in
connection with the re-employment of funds prepaid, repaid, not borrowed, or
paid, as the case may be, and the amount of such loss shall be the excess, if
any, of (1) the interest or other cost to such Lender of the deposit or
other source of funding used to make any such Eurodollar Option Loan (but
specifically excluding any Applicable Margin) for the remainder of its Interest
Period, over (2) the interest earned (or to be earned) by such Lender upon
the re-lending or other redeployment of the amount of such Eurodollar Option
Loan for the remainder of its putative Interest Period or (ii) any other
expenses incurred by any Lender or any participant of such Lender permitted hereunder
in connection with the re-employment of funds prepaid, repaid, not borrowed, or
paid, as the case may be.

 

For the avoidance of doubt, nothing in this Section 2.11
shall be construed to apply to Taxes that are neither Covered Taxes nor Other
Taxes.

 

Section 2.12                                          Pro Rata
Treatment.

 

(a)                                  Loans.  Each Loan from the Lenders shall be made pro
rata (i) on the basis of the respective Revolving Commitments of the
Revolving Lenders with respect to Loans made under the Revolving Commitment,
and (ii) on the basis of the respective Term Commitments of the Term
Lenders with respect to Term Loans.

 

(b)                                 Payments.  Except as specifically provided in Section 2.2(e)(iv) or
Article 10 hereof or elsewhere in this Agreement, each payment and
prepayment of principal of the Loans or refunding of the Lender’s Synthetic
Deposit Account, and each payment of interest on the Loans, shall be made to
the Lenders pro rata on the basis of their respective unpaid principal amounts
outstanding immediately prior to such payment or prepayment.  If any Lender shall obtain any payment
(whether involuntary, through the exercise of any right of set-off, or
otherwise) on account of any Loans or Synthetic Deposits made by it in excess
of its ratable share of such Loans or Synthetic Deposits, such Lender shall
forthwith purchase from the other Lenders such interests (whether by purchasing
a participation or by assignment) in the applicable Loans made by them as shall
be necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided, however, that if all or any portion
of such excess payment is thereafter recovered from such purchasing Lender,
such purchase from each Lender shall be rescinded and each such Lender shall
repay to the purchasing Lender the purchase price to the extent of such
recovery; provided  further, however, that, so long as the
Obligations under the Loan Documents shall not have been accelerated, any excess
payment received by any Lender in respect of any Type of Loans or Synthetic
Deposits shall be shared on a pro rata basis only with other Lenders to which
Loans of such Type are owing. 
EnergySolutions agrees that any Lender so purchasing a participation
from another Lender pursuant to this Section 2.12(b) may, to
the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of EnergySolutions in the amount of
such participation.

 

Section 2.13                                          Capital
Adequacy.

 

If, after the Third Amended and Restated Credit
Agreement Effective Date, the adoption or effectiveness of any Applicable Law regarding
the capital adequacy of banks or bank holding 

 

54

 

companies, or any change or effectiveness in
Applicable Law (whether adopted before or after the Third Amended and Restated
Credit Agreement Effective Date) or any change in the interpretation or
administration or effectiveness thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by such Lender Party with any directive issued or
adopted after the Third Amended and Restated Credit Agreement Effective Date
regarding capital adequacy (whether or not having the force of law) of any such
governmental authority, central bank or comparable agency, has or would have
the effect of reducing the rate of return on any Lender Party’s capital, as a
consequence of its obligations hereunder with respect to the Loans, such Lender
Party’s Revolving Commitment or its obligations to issue or participate in any
Revolving Letter of Credit hereunder, to a level below that which it could have
achieved but for such adoption, change or compliance (taking into consideration
such Lender Party’s policies with respect to capital adequacy immediately
before such adoption, change or compliance and assuming that such Lender Party’s
capital was fully utilized prior to such adoption, change or compliance) by an
amount reasonably deemed by such Lender Party to be material, then such Lender
Party shall promptly notify EnergySolutions of such adoption, compliance or
change.  Upon demand by such Lender
Party, EnergySolutions shall promptly pay to such Lender Party such additional
amounts as shall be sufficient to compensate such Lender Party for such reduced
return, together with interest on such amount from the fourth (4th) day after
the date of demand until payment in full thereof at the Default Rate.  A certificate of such Lender Party setting
forth the amount to be paid to such Lender Party by EnergySolutions as a result
of any event referred to in this paragraph and supporting calculations in reasonable
detail shall be conclusive, absent manifest error.  For the avoidance of doubt, this Section 2.13
shall not apply to Taxes.

 

Section 2.14                                          Taxes.

 

(a)                                  Subject to the
exclusions and limitations of this Section 2.14 and subject to the
Lenders’ compliance with Section 2.14(f), any and all payments by
any Loan Party hereunder or under the other Loan Documents shall be made free
and clear of and without deduction or withholding for any and all present or
future taxes, levies, imposts, deductions, charges or withholdings (“Taxes”)
imposed or assessed on or with respect to payments made under this Agreement or
the other Loan Documents by the United States of America or any political subdivisions
thereof or therein or any other jurisdiction (including non-U.S.
jurisdictions), and all liabilities with respect hereto or thereto (but excluding
any tax imposed on or measured by the net income or profits of a Lender or
franchise taxes imposed in lieu of net income taxes on overall gross receipts,
or any other similar taxes imposed, in each case, as a result of such Lender
being organized in, having its principal office or applicable lending office
in, engaging in a trade or business in, or having a present or former
connection with the jurisdiction imposing such Tax (other than any such trade
or business, or connection arising or deemed to arise solely or primarily from
any transactions contemplated by this Agreement) (all such non-excluded taxes,
levies, imposts, duties, fees, assessments or other charges being referred to
collectively as “Covered Taxes”).

 

If any Loan Party shall be required by law to
withhold or deduct any Covered Taxes from or in respect of any sum payable
hereunder or under any other Loan Document to any Lender, (i) the sum
payable shall be increased as may be necessary so that after making all
required deductions or withholdings on account of Covered Taxes (including
deductions applicable to additional sums payable under this Section 2.14(a))
such Lender receives an amount equal to the sum 

 

55

 

it would have received had no such deductions
or withholdings of Covered Taxes been made, (ii) the applicable Loan Party
shall make such deductions or withholdings, and (iii) the applicable Loan
Party shall pay the full amount of Covered Taxes deducted to the relevant
taxation authority or other authority in accordance with Applicable Law.

 

(b)                                 EnergySolutions
agrees to pay any present or future recordation, transfer, mortgage, stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies (including any interest and penalties related thereto) imposed by the
United States of America or any political subdivision thereof or any other
jurisdiction (including non-U.S. jurisdictions) that arise from the execution,
delivery, registration of, performance under, or enforcement of, this Agreement
or any other Loan Document (hereinafter referred to as “Other Taxes”).

 

(c)                                  Without
duplication of its obligation to pay increased amounts on account of Covered
Taxes and Other Taxes pursuant to Sections 2.14(a) and (b),
respectively, EnergySolutions shall indemnify each Lender for the full amount
of Covered Taxes and Other Taxes (including, without limitation, any Covered
Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.14)
paid by such Lender and any penalties, interest and expenses arising therefrom
or with respect thereto, whether or not such Covered Taxes or Other Taxes were
correctly or legally asserted.  Payment
by EnergySolutions pursuant to this indemnification shall be made within thirty
(30) days from the date such Lender (as the case may be) makes written demand
therefor (submitted through the Administrative Agent).  A Lender’s failure to provide notice to
EnergySolutions shall not relieve EnergySolutions of any of its obligations
under this Section 2.14. 
Notwithstanding the foregoing, where notice is not given within one
hundred twenty (120) days after the Lender has actual notice of the assertion
of taxes and EnergySolutions does not otherwise have notice of such assertion,
no indemnification shall be required for penalties, additions to tax, expenses,
and interest accruing on such Covered Taxes or Other Taxes from the date one
hundred twenty (120) days after the Lender has actual notice of the assertion
of such taxes until the date such notice was actually received by EnergySolutions.

 

(d)                                 Within thirty
(30) days after the date of any payment of Covered Taxes or Other Taxes by the
any Loan Party, such Loan Party shall furnish to the Administrative Agent, at
its address referred to in Section 11.1 hereof, the original or a
certified copy of a receipt evidencing payment thereof.  The applicable Loan Party shall compensate
each Lender to the extent that such Lender is required to pay any Covered Taxes
or Other Taxes (or applicable penalties, interest and expenses) as a result of
any failure by such Loan Party to so furnish such copy of such receipt.

 

(e)                                  The agreements
and obligations of the Loan Parties contained in this Section 2.14
shall survive the indefeasible payment in full of the Obligations.

 

(f)                                    Notwithstanding
any provision to the contrary in this Agreement, to the extent that such Person
is at such time legally entitled to do so, on the date a Person becomes an
Agent or Lender hereunder and at such other times as reasonably requested by
EnergySolutions or the Administrative Agent in writing, such Person must
provide to EnergySolutions and the Administrative Agent two properly completed and
duly executed originals of each of the following, as applicable:  (i) Form W-8ECI (in the case of a
non-U.S. Person claiming exemption from withholding because the income is
effectively connected with a U.S. trade or business), (ii) Form W-

 

56

 

8BEN (in the case of a non-U.S. Person
claiming exemption from, or reduction of, withholding tax under an income tax
treaty or under the portfolio interest exemption), (iii) with respect to
any interest in this Agreement in which a participation has been sold, a Form W-8IMY
along with accompanying Form W-8BEN (claiming exemption from withholding
under the portfolio interest exemption), (iv) any other applicable form,
certificate or document necessary to establish such non-U.S. Person’s
entitlement to exemption from United States federal withholding tax or reduced
rate with respect to all payments to be made to such non-U.S. Person under this
Agreement, or (v) Form W-9 (claiming exemption from backup
withholding tax), or any successor forms. 
Each Agent and Lender agrees that from time to time after the Agreement
Date, when a lapse in time or change in circumstances renders the previous
certification obsolete or inaccurate in any material respect, such Agent or
Lender will, to the extent that such Agent or Lender is at such time legally
entitled to do so, deliver to EnergySolutions and the Administrative Agent two
new accurate and complete original signed copies of the applicable
certification form.  Notwithstanding anything
to the contrary in this Section 2.14, a Lender shall not be
entitled to payment on account of or indemnification for Covered Taxes that are
U.S. federal withholding Taxes that are imposed pursuant to a law in effect at
the time such Lender becomes a party to this Agreement, except, in the case of
an assignee to the extent that such Lender’s assignor (if any) was entitled, at
the time of assignment, to receive additional amounts from the Loan Parties
with respect to such Tax pursuant to Section 2.14(a) and a
Lender shall not be entitled to a payment on account of or indemnification for
such Covered Taxes to the extent such Taxes result from the failure of such
Lender to comply with the documentation requirements of this Section 2.14(f).

 

(g)                                 If the Administrative
Agent or any Lender determines, in its good faith sole discretion, that it has
received a refund of any Covered Taxes or Other Taxes as to which it has been
indemnified by a Loan Party or with respect to which the Loan Party has paid
additional amounts pursuant to this Section 2.14, it shall pay over
such refund to such Loan Party (but only to the extent of indemnity payments
made, or additional amounts paid, by such Loan Party under this Section 2.14
with respect to the Covered Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket expenses of such Agent or such Lender and without
interest (other than any interest paid by the relevant governmental authority
with respect to such refund); provided that the Loan Party, upon the request
of such Agent or such Lender, agrees to repay the amount paid over to such Loan
Party to such Agent or such Lender in the event such Agent or such Lender is required
to repay such refund to such governmental authority.  This paragraph shall not be construed to
require any Agent or any Lender to make available its tax returns (or any other
information relating to its Taxes which it deems confidential) to the Loan
Party or any other Person. 
Notwithstanding anything to the contrary, in no event will any Lender be
required to pay any amount to a Loan Party the payment of which would place
such Lender in a less favorable net after-tax position than such Lender would
have been in if the additional amounts giving rise to such refund of any
Covered Taxes or Other Taxes had never been paid.

 

(h)                                 Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of Section 2.14
(a), Section 2.14(c) or Section 10.3 with
respect to such Lender, it will, if requested by EnergySolutions, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Loans affected by such event with the object of
avoiding the consequences of such event; provided that such designation
is made on terms that, in the good faith sole judgment of such Lender, cause
such Lender and its lending office(s) to suffer no economic, legal or
regulatory disadvantage, and provided  further that nothing 

 

57

 

in this Section 2.14 shall affect
or postpone any of the obligations of the Loan Party or the rights of any
Lender pursuant to Section 2.14(a), Section 2.14(c) or
Section 10.3.

 

Section 2.15                                          Increase in
Commitments.

 

(a)                                  Borrower
Request.  EnergySolutions may by written
notice to the Administrative Agent elect to request: (i) prior to the
Revolving Maturity Date, an increase to the existing Revolving Commitments (the
“Incremental Commitments”) by an amount not in excess of the Incremental
Commitment Cap in the aggregate and not less than $5,000,000 individually (or,
if less, the amount of the Incremental Commitment Cap); (ii) prior to the
Term Loan Maturity Date, the establishment of one or more new Term Commitments
(each, an “Incremental Term Commitment”) by an amount not in excess of
the Incremental Commitment Cap in the aggregate and not less than $5,000,000
individually (or, if less, the amount of the Incremental Commitment Cap);  (iii) after the Third Amended and
Restated Credit Agreement Effective Date, the establishment of one or more
Reclamation L/C Facility Commitments (“Reclamation L/C Facility Commitments”)
by an amount not in excess of the Reclamation L/C Facility Commitment Cap; and (iv) after
the Third Amended and Restated Credit Agreement Effective Date, the establishment
of one Zion Incremental Facility Commitment (“Zion Incremental Facility
Commitment”) by an amount not in excess of the Zion Incremental Facility
Commitment Cap.  Each such notice shall
specify (x) the date (each, an “Increase Effective Date”) on which
EnergySolutions proposes that the increased or new Commitments shall be
effective, which shall be a date not less than 10 Business Days after the date
on which such notice is delivered to the Administrative Agent and (y) the
identity of the financial institution to whom EnergySolutions proposes any
portion of such increased or new Commitments be allocated and the amounts of
such allocations; provided that any existing Lender approached to provide
all or a portion of the increased or new Commitments may elect or decline, in
its sole discretion, to provide such increased or new Commitment.

 

(b)                                 Conditions.  The increased or new Commitments shall become
effective, as of such Increase Effective Date; provided that:

 

(i)                                     each of the
conditions set forth in Section 3.2 shall be satisfied;

 

(ii)                                  no Default or
Event of Default shall have occurred and be continuing or would result from the
borrowings to be made on the Increase Effective Date and the use of proceeds
thereof;

 

(iii)                               EnergySolutions
shall deliver or cause to be delivered any legal opinions or other documents
reasonably requested by the Administrative Agent in connection with any such
transaction.

 

(c)                                  Terms of New
Loans and Commitments.  The
terms and provisions of Loans made pursuant to the new Commitments shall be as
follows:

 

(i)                                     terms and
provisions of Loans made pursuant to Incremental Term Commitments (“Incremental
Term Loans”) shall be, except as otherwise set forth herein, identical to
the existing Term Loans (it being understood that Incremental Term Loans may be
part of an existing tranche of Term Loans);

 

58

 

(ii)                                  any such
Incremental Term Loans shall not amortize (on a percentage basis) any faster
than the existing Term Loans and shall not mature prior to the Term Loan
Maturity Date;

 

(iii)                               in the event
that the Applicable Margin or other interest margin for the Incremental Term
Loans or Loans under any Incremental Commitments (inclusive of upfront fees and
OID payable to such Lenders) is greater than the Applicable Margin for any then
already outstanding Term Loans or Revolving Loans, respectively (in each case
inclusive of any upfront fees and OID paid to the existing Lenders), then the
Applicable Margin for the already outstanding Term Loans or Revolving Loans,
respectively, shall be increased to the extent necessary such that the
Applicable Margin for such already outstanding class of Term Loans or Revolving
Loans, as applicable, is equal to the Applicable Margin or other interest
margin for the Incremental Term Loans or Loans under such Incremental Commitments,
as applicable; provided that, for the avoidance of doubt, this Section 2.15(c) shall
not be triggered by the establishment of any Reclamation L/C Facility
Commitment or the Zion Incremental Facility Commitment;

 

(iv)                              the Reclamation
L/C Facility Commitments shall terminate, and all Obligations thereunder shall
be due, on the Reclamation L/C Facility Maturity Date;

 

(v)                                 the Zion
Incremental Facility Commitment shall terminate, and all Obligations thereunder
shall be due, on the Zion Incremental Facility Maturity Date;

 

(vi)                              participation
in the Incremental Term Commitments, Reclamation L/C Facility Commitments, the
Zion Incremental Facility Commitment and Incremental Commitments shall be
offered to banks, financial institutions and other entities reasonably acceptable
to EnergySolutions and the Administrative Agent; and

 

(vii)                           the terms and
provisions of Revolving Loans made pursuant to new Commitments shall be
identical to the Revolving Loans (for the avoidance of doubt, after giving
effect to any adjustment required by clause (iii) above).

 

(d)                                 Adjustment of
Revolving Loans.  In the case
of Incremental Commitments, each of the Revolving Lenders having a Revolving
Commitment prior to such Increase Effective Date (the “Pre-Increase
Revolving Lenders”) shall assign to any Revolving Lender which is acquiring
an Incremental Commitment on the Increase Effective Date (the “Post-Increase
Revolving Lenders”), and such Post-Increase Revolving Lenders shall
purchase from each Pre-Increase Revolving Lender, at the principal amount
thereof, such interests in the Revolving Loans outstanding on such Increase
Effective Date as shall be necessary in order that, after giving effect to all
such assignments and purchases, such Revolving Loans will be held by
Pre-Increase Revolving Lenders and Post-Increase Revolving Lenders ratably in
accordance with their Revolving Commitments after giving effect to the Incremental
Commitments.

 

(e)                                  Making of New
Term Loans.  On any
Increase Effective Date on which new Commitments for Term Loans are effective,
subject to the satisfaction of the foregoing terms and conditions, each Lender
of such new Commitment shall make a Term Loan to EnergySolutions in an amount
equal to its new Commitment.

 

59

 

(f)                                    Equal and
Ratable Benefit.  The Loans
and Commitments established pursuant to this paragraph shall constitute Loans
and Commitments under, and shall be entitled to all the benefits afforded by,
this Agreement and the other Loan Documents, and shall, without limiting the
foregoing, benefit equally and ratably from the Guarantees and security
interests created by the Security Documents. 
The Loan Parties shall take any actions reasonably required by the
Administrative Agent to ensure and/or demonstrate that the Lien and security
interests granted by the Security Documents continue to be perfected under the
UCC or otherwise after giving effect to the establishment of any such Incremental
Term Loans or Incremental Commitments.

 

(g)                                 Amendment to
Loan Documents. EnergySolutions and the Administrative Agent may,
without the consent of any other Lender, enter into an amendment to any Loan
Document to appropriately include the Incremental Term Loans hereunder
including, without limitation, to provide that such Incremental Term Loans
shall share in mandatory prepayments on the same basis as the Term Loans).

 

Section 2.16                                Synthetic
Deposit Account.

 

(a)                                  On or after to
the Second Amendment Effective Date, the Administrative Agent shall establish
the Synthetic Deposit Account. The Administrative Agent shall maintain records
enabling it to determine at any time the amount of the interest of each
Synthetic Lender in the Synthetic Deposit Account (the interest of each
Synthetic Lender in the Synthetic Deposit Account, as evidenced by such
records, being referred to as such Lender’s “Synthetic Deposit Sub-Account”).
The Administrative Agent shall establish such additional Synthetic Deposit
Sub-Accounts for assignee Lenders as shall be required pursuant to Section 11.5.  No Person (other than the Administrative
Agent or any of its sub-agents) shall have the right to make any withdrawals
from the Synthetic Deposit Account or exercise any other right or power with
respect thereto, except as expressly provided herein. Without limiting the
generality of the foregoing, each party hereto acknowledges and agrees that no
amount on deposit at any time in the Synthetic Deposit Account (i) shall
be the property of any Secured Party (other than the Administrative Agent for
the benefit of the Synthetic Issuing Bank) and (ii) shall constitute “Collateral”
under the Loan Documents other than in favor of the Synthetic Issuing Bank in
respect of Synthetic Letter of Credit Participation Obligations.  Each Synthetic Lender agrees that its right,
title and interest with respect to the Synthetic Deposit Account shall be
limited to the right to require amounts in its Synthetic Deposit Sub-Account to
be used as expressly set forth herein and that it will have no right
to require the return of its Synthetic Deposit other than as expressly provided
herein (each Synthetic Lender hereby acknowledging that its Synthetic Deposit
constitutes payment for its Synthetic Letter of Credit Participation Obligations
and that the Synthetic Issuing Bank will be issuing, amending, renewing and
extending Synthetic Letters of Credit in reliance on the availability of such
Lender’s Synthetic Deposit to discharge such Lender’s obligations in accordance
with clause (c) of this Section 2.16 and Section 2.17(c)).  The funding of the Synthetic Deposits and the
agreements with respect thereto set forth in this Agreement constitute arrangements
solely among the Administrative Agent, the Synthetic Issuing Bank and the Synthetic
Lenders with respect to the funding and reimbursement obligations of the
Synthetic Lenders under this Agreement, and do not constitute loans, extensions
of credit or other financial accommodations to any Loan Party.

 

60

 

(b)                                 The following
amounts will be deposited in the Synthetic Deposit Account at the following
times:

 

(i)                                     At any time
after the Synthetic Facility Availability Date, upon the written request (the “Synthetic
Request”) of EnergySolutions substantially in the form of Exhibit D
hereto or as reasonably acceptable to the Administrative Agent, each Synthetic
Lender shall deposit in the Synthetic Deposit Account (via the Administrative
Agent) an amount in Dollars equal to such Lender’s Synthetic Deposit
Amount.  Thereafter, the Synthetic
Deposits shall be available, on the terms and subject to the conditions set
forth herein, for application pursuant to Section 2.16(d)(i), to
reimburse such Lender’s Synthetic Deposit Percentage of Disbursements that are
not reimbursed by EnergySolutions.

 

(ii)                                  On any date
prior to the Synthetic Letter of Credit Maturity Date on which the
Administrative Agent or the Synthetic Issuing Bank receives any reimbursement
payment from EnergySolutions in respect of a Disbursement, with respect to
which amounts were withdrawn from the Synthetic Deposit Account to reimburse or
pay such Disbursement, the Administrative Agent shall deposit in the Synthetic
Deposit Account, and credit to the Synthetic Deposit Sub-Accounts of the
Synthetic Lenders, the portion of such reimbursement or other payment to be
deposited therein, in accordance with Section 2.17(d).

 

(iii)                               Concurrently
with the effectiveness of any assignment by any Lender of all or any portion of
its Synthetic Deposit, the Administrative Agent shall transfer into the
Synthetic Deposit Sub-Account of the assignee the corresponding portion of the
amount on deposit in the assignor’s Synthetic Deposit Sub-Account in accordance
with Section 11.5(c).

 

(c)                                  Each Synthetic
Lender irrevocably and unconditionally agrees that its Synthetic Deposit in the
Synthetic Deposit Account shall be withdrawn and distributed as follows:

 

(i)                                     In the event
EnergySolutions does not reimburse the Synthetic Letter of Credit Issuer
pursuant to Section 2.17(d), the Administrative Agent shall
withdraw from the Synthetic Deposit Account the amount of such unreimbursed
Disbursement (and debit the Synthetic Deposit Sub-Account of each Synthetic
Lender in the amount of such Synthetic Lender’s Synthetic Deposit Percentage of
such unreimbursed Disbursement) and make such amount available to the Synthetic
Issuing Bank and the Synthetic Facility Available Amount shall be reduced by
such amount.

 

(ii)                                  In the event
EnergySolutions voluntarily decides to permanently reduce the Synthetic
Facility Available Amount pursuant to Section 2.7(d), the
Administrative Agent will withdraw from the Synthetic Deposit Account an amount
equal to such reduction, and pay to each Synthetic Lender an amount equal to
the product of (A) such Lender’s Synthetic Deposit Percentage multiplied
by (B) the aggregate amount of such reduction.  In no event shall the Synthetic Facility
Available Amount be reduced to an amount that is less than the aggregate amount
of the Synthetic Letter of Credit Outstandings.

 

61

 

(iii)                               Concurrently
with the effectiveness of any assignment by any Synthetic Lender of all or any
portion of its Synthetic Deposit, the corresponding portion of the
assignor’s Synthetic Deposit Sub-Account shall be transferred from the assignor’s
Synthetic Deposit Sub-Account to the assignee’s Synthetic Deposit Sub-Account
in accordance with Section 11.5 and, if required by Section 11.5,
the Administrative Agent shall close such assignor’s Synthetic Deposit
Sub-Account.

 

(iv)                              Upon the
reduction of the Synthetic Facility Available Amount and the Synthetic Letter
of Credit Outstandings to zero, all amounts remaining in the Synthetic Deposit
Account shall be returned to the Synthetic Lenders based on such Synthetic
Lender’s Synthetic Deposit Percentage.

 

(d)                                 The
Administrative Agent shall invest, or cause to be invested, the Synthetic Deposit
of each Synthetic Lender so as to earn for the account of such Synthetic Lender
a return thereon (the “Synthetic Deposit Return”) for each day at a rate
per annum equal to (i) the one month LIBOR rate as determined by the
Administrative Agent on such day (or if such day was not a Business Day, the
first Business Day immediately preceding such day) based on rates for deposits
in dollars (as set forth by Bloomberg L.P.-page BTMM or any other
comparable publicly available service as may be selected by the Administrative
Agent) (the “Benchmark LIBO Rate”) minus (ii) 0.15% per annum
(based on a 365/366 day year). The Benchmark LIBO Rate will be reset
monthly.  The Synthetic Deposit Return
accrued through and including the last day of each Interest Period shall be
payable by the Administrative Agent to each Synthetic Lender on each day on
which Participation Fees are required to be paid with respect to all or any portion
of the Synthetic Deposits pursuant to Section 2.5(d)(ii) and
the Administrative Agent shall pay to each Synthetic Lender the Synthetic
Deposit Return on such Lender’s Synthetic Deposits.  Any amounts earned and received with respect
to Synthetic Deposits in excess of the Synthetic Deposit Return shall be for
the account of the Administrative Agent. No Person other than the Administrative
Agent shall have any obligation under or in respect of this clause.

 

(e)                                  Notwithstanding
anything to the contrary in this Agreement, EnergySolutions shall not be liable
for any losses due to (i) the misappropriation of any Synthetic Deposit
Return or Synthetic Deposit or (ii) the failure of the Administrative
Agent to pay the Synthetic Deposit Return to any Synthetic Lender (it being
understood and agreed for greater certainty that this clause shall not limit
any obligation of EnergySolutions hereunder to pay any Participation Fee).
Neither the Administrative Agent, the Synthetic Issuing Bank, any Loan Party
nor any other Person guarantees any rate of return on the investment of any
Synthetic Deposit held in the Synthetic Deposit Account.

 

(f)                                    If the
Synthetic Issuing Bank is enjoined from taking any action referred to in clause
(c) of this  Section 2.16, or if
the Synthetic Issuing Bank reasonably determines that, by operation of law, it
may reasonably be precluded from taking any such action, or if any Loan Party
or Synthetic Lender challenges in any legal proceeding any of the acknowledgements,
agreements or characterizations set forth in any of clause (a) of this Section 2.16,
then, in any such case (and so long as such event or condition shall be
continuing), and notwithstanding anything contained herein to the contrary, the
Synthetic Issuing Bank shall not be required to issue, renew or extend any
Synthetic Letter of Credit.

 

62

 

(g)                                 In the event
any payment of a Synthetic Reimbursement Obligation shall be required to be
refunded by the Synthetic Issuing Bank to EnergySolutions after the return of
the Synthetic Deposits to the Synthetic Lenders as permitted hereunder, each
Synthetic Lender agrees to acquire and fund a participation in such refunded
amount equal to the lesser of its Synthetic Deposit Percentage hereof and the
amount of its Synthetic Deposit that shall have been so returned.

 

Section 2.17                                Synthetic
Letters of Credit.

 

(a)                                  The Synthetic
Issuing Bank agrees, on the terms and conditions hereinafter set forth, to
issue (or cause any Affiliate that is a commercial bank to issue on its behalf) standby
letters of credit (each a “Synthetic Letter of
Credit”) in Dollars or any Available Foreign Currency for the account of EnergySolutions
or any of its Subsidiaries from time to time on any Business Day during the
period from the Synthetic Facility Availability Date until 5 days
before the Synthetic Letter of Credit Maturity Date; provided that the
Synthetic Issuing Bank shall not be permitted or required to issue any
Synthetic Letter of Credit or increase the Available Amount of any existing
Synthetic Letter of Credit if, after giving effect thereto, (i) the
aggregate amount of all Synthetic Letter of Credit Outstandings would exceed
the Synthetic Facility Available Amount or (ii) the aggregate amount of
all Synthetic Letter of Credit Outstandings would exceed the amount on deposit
in the Synthetic Deposit Account.  No
Synthetic Letter of Credit shall have an expiration date later than the earlier
of (i) one year after the date of issuance thereof, or (ii) five (5) days
before the Synthetic Letter of Credit Maturity Date, but may by its terms be renewable
annually upon written notice (a “Synthetic Notice of Renewal”) given to
the Synthetic Issuing Bank that issued such Synthetic Letter of Credit and the
Administrative Agent on or prior to any date for notice of renewal set forth in
such Synthetic Letter of Credit but in any event at least 10 Business Days
prior to the date of the proposed renewal of such Synthetic Letter of Credit
and upon fulfillment of the applicable conditions set forth in Article 3 unless the Synthetic Issuing Bank has
notified EnergySolutions (with a copy to the Administrative Agent) on or prior
to the date for notice of termination set forth in such Synthetic Letter of
Credit but in any event at least 5 Business Days prior to the date of automatic
renewal of its election not to renew such Synthetic Letter of Credit (a “Synthetic
Notice of Termination”); provided that the terms of each Synthetic
Letter of Credit that is automatically renewable annually shall (x) require
the Synthetic Issuing Bank that issued such Synthetic Letter of Credit to give
the beneficiary named in such Synthetic Letter of Credit notice of any
Synthetic Notice of Termination, (y) permit such beneficiary, upon receipt
of such notice, to draw under such Synthetic Letter of Credit prior to the date
such Synthetic Letter of Credit otherwise would have been automatically renewed
and (z) not permit the expiration date (after giving effect to any
renewal) of such Synthetic Letter of Credit in any event to be extended to a
date later than 5 days before the Term Loan Maturity Date.  If either a Synthetic Notice of Renewal is
not given by EnergySolutions or a Synthetic Notice of Termination is given by
the Synthetic Issuing Bank pursuant to the immediately preceding sentence, such
Synthetic Letter of Credit shall expire on the date on which it otherwise would
have been automatically renewed.  Within
the limits of the Synthetic Facility Available Amount, and subject to the
limits referred to above, EnergySolutions may request the issuance of Synthetic
Letters of Credit under this Section 2.17(a) and request the
issuance of additional Synthetic Letters of Credit under this Section 2.17(a).

 

63

 

(b)                                 Schedule 2.17(b) contains
a description of certain letters of credit issued for the account of
EnergySolutions and/or one or more of its Subsidiaries and outstanding on the
Second Amendment Effective Date. Each such letter of credit, including any
extension or renewal thereof (each, as amended from time to time in accordance
with the terms thereof and hereof, an “Existing Letter of Credit”) shall
constitute a “Synthetic Letter of Credit” for all purposes of this Agreement issued
on the Second Amendment Effective Date. 
In addition, on (i) any date after the Second Amendment Effective
Date on which any financial institution or other Person becomes a Lender
hereunder, with the consent of EnergySolutions, the Administrative Agent and
such Lender, any letters of credit issued by such Lender for the account of
EnergySolutions and/or one or more of its Subsidiaries may be designated as
Existing Letters of Credit (ii) the date of deposit of Synthetic Deposits
into the Synthetic Account pursuant to Section 2.16(b)(i), any
Revolving Letters of Credit (such letters of credit, the “Rollover Letters
of Credit”) may be designated by EnergySolutions as Existing Letters of
Credit and, in each case, if any such letters of credit are so designated, Schedule
2.17(b) shall be deemed amended to include same and same shall constitute
“Synthetic Letters of Credit” for all purposes of this Agreement, issued on the
date of such designation. Any Lender hereunder to the extent it has issued a
Rollover Letter of Credit or an Existing Letter of Credit shall constitute a “Synthetic
Issuing Bank” for all purposes of this Agreement.

 

(c)                                  Participations.  Upon the issuance of each
Synthetic Letter of Credit or an increase in the Available Amount thereof, and
without further action, each Synthetic Lender shall be deemed to have irrevocably
purchased, to the extent of its Synthetic Deposit Percentage, a participation
interest in such Synthetic Letter of Credit, including any contingent liability
or Synthetic Reimbursement Obligation created as a result of any issuance
thereof or Disbursement with respect thereto (each, a “Synthetic Letter of
Credit Participation Obligation”). Each Synthetic Lender’s Synthetic Letter
of Credit Participation Obligation shall be cash collateralized (as provided in
Section 2.16), in favor of the Synthetic Issuing Bank, by such
Synthetic Lender’s Synthetic Deposit. Such Synthetic Lender’s Synthetic Deposit
shall be available for withdrawal by the Administrative Agent, in the amounts
contemplated by and otherwise in accordance with Section 2.16(c)(i),
to reimburse the Synthetic Issuing Bank for Synthetic Reimbursement Obligations.

 

(d)                                 Reimbursement. If any draft
is paid under a Synthetic Letter of Credit (each such payment, a “Disbursement”),
EnergySolutions shall reimburse the Synthetic Issuing Bank by payment to the
Administrative Agent for the amount of (a) the Dollar Equivalent of the
draft so paid and (b) any taxes, fees, charges or other costs or expenses
incurred by the Synthetic Issuing Bank (including, with respect to Letters of
Credit denominated in an Available Foreign Currency, costs relating to foreign
currency fluctuations, such that the total repayment by EnergySolutions shall,
in the reasonable judgment of the Administrative Agent, be equal to the amount
of the Disbursement) in connection with such payment, not later than 2:00 p.m.,
New York City time, on the Business Day on which EnergySolutions receives notice
of such draft.  Each such payment shall
be made to the Administrative Agent in Dollars and in immediately available
funds.  If EnergySolutions fails to
reimburse the Synthetic Issuing Bank at the time and place and in the manner
described above in this Section 2.17(d), the Administrative Agent,
on behalf of the Synthetic Issuing Bank, shall withdraw from the Synthetic
Deposit Account an amount equal to the Dollar Equivalent of the amount of such
unreimbursed payment. Interest shall be payable on any such amount, and such
amount shall constitute a Loan hereunder, from the date 

 

64

 

the relevant draft is paid until payment in
full at the Eurodollar Basis (with a Eurodollar Period of one month).  Drawings under a Synthetic Letters of Credit
shall be deemed to be reimbursed to the extent funds on deposit in the
Synthetic Deposit Account are withdrawn and applied thereto in accordance with Section 2.16(c)(i).  The obligation (a “Synthetic Reimbursement
Obligation”) of EnergySolutions under this Section 2.17(d) to
reimburse, without duplication, the Synthetic Issuing Bank with respect to each
Disbursement (including interest thereon) and the right of the Synthetic
Issuing Bank to be paid with amounts on deposit in the Synthetic Deposit
Account pursuant to Section 2.16(d)(i), shall be unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement, such Letter of Credit Agreement and such other agreement or
instrument under all circumstances, including, without limitation, the
following circumstances:

 

(A)                              any lack of
validity or enforceability of any L/C Related Documents;

 

(B)                                any change in
the time, manner or place of payment of, or in any other term of, all or any of
the Obligations of EnergySolutions in respect of any L/C Related Document or
any other amendment or waiver of or any consent to departure from all or any of
the L/C Related Documents;

 

(C)                                the existence
of any claim, set-off, defense or other right that EnergySolutions may have at
any time against any beneficiary or any transferee of a Synthetic Letter of
Credit (or any Persons for which any such beneficiary or any such transferee
may be acting), the Synthetic Issuing Bank or any other Person, whether in
connection with the transactions contemplated by the L/C Related Documents or
any unrelated transaction;

 

(D)                               any statement
or any other document presented under a Synthetic Letter of Credit proving to
be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;

 

(E)                                 payment by the
Synthetic Issuing Bank under a Synthetic Letter of Credit against presentation
of a draft, certificate or other document that does not strictly comply with
the terms of such Synthetic Letter of Credit;

 

(F)                                 any exchange,
release or non-perfection of any Collateral or other collateral, or any release
or amendment or waiver of or consent to departure from any Guaranty or any
other guarantee, for all or any of the Obligations of EnergySolutions in
respect of the L/C Related Documents; or

 

(G)                                any other
circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including, without limitation, any other circumstance that might
otherwise constitute a defense available to, or a discharge of, EnergySolutions
or any Guarantor.

 

Section 2.18                                          Termination and
Reduction of Commitments.

 

(a)                                  Termination of
Commitments.  The Term
Commitments expired on June 7, 2006. 
The Revolving Commitments and the Revolving Letter of Credit Commitments
shall automatically terminate at 5:00 p.m., New York City time on the
Revolving Maturity Date.  The Synthetic 

 

65

 

Letter of Credit Commitments shall
automatically terminate on the Term Loan Maturity Date.

 

(b)                                 Borrower Notice.  EnergySolutions shall notify the
Administrative Agent in writing of any election to terminate or reduce the
Revolving Commitments under this Section 2.18 at least three
Business Days prior to the effective date of such termination or reduction,
specifying such election and the effective date thereof; provided that
any such reduction shall apply proportionately and permanently to reduce the
Revolving Commitments, as applicable, of each of the Revolving Lenders; provided
further that any such repayment of Revolving Loans contemplated by the
preceding clause shall be made in compliance with the requirements of Section 2.10
with respect to the ratable allocation of payments hereunder).  Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by EnergySolutions
pursuant to this Section shall be irrevocable and any termination or
reduction of the Revolving Commitments shall be permanent.  Each reduction of the Revolving Commitments
shall be made ratably among the Revolving Lenders in accordance with their respective
Revolving Commitments.

 

ARTICLE
3.

Conditions Precedent

 

Section 3.1                                                Conditions
Precedent to Initial Loans.

 

(a)                                  Agreement Date.  The obligation of any Lender to make a Loan
on the Agreement Date was subject to the satisfaction, or waiver in accordance
with Section 11.12 of the Original Credit Agreement, of all of the
conditions precedent set forth in Section 3.1 of the Original
Credit Agreement.

 

(b)                                 Third Amended
and Restated Credit Agreement Effective Date.  The obligation of any Lender to make a Loan
or a Synthetic Deposit on the Third Amended and Restated Credit Agreement
Effective Date is subject to the satisfaction of all conditions precedent set
forth below:

 

(i)                                     The
Administrative Agent shall have received:

 

(A)                              this Agreement,
duly executed by (i) Parent, EnergySolutions, the Administrative Agent and
the other parties hereto, and (ii) such other documentation as the
Administrative Agent shall reasonably determine necessary to evidence the new
Commitments and the guarantee and security thereof, in each case in form and
substance satisfactory to the Administrative Agent;

 

(B)                                the loan
certificate of EnergySolutions, in substantially the form attached hereto as Exhibit L,
including a certificate of incumbency with respect to each Authorized
Signatory, together with appropriate attachments which shall include without
limitation, the following items:  (A) a
copy of the Articles of Organization of EnergySolutions, certified to be true,
complete and correct by the Utah Department of Commerce, and a true, complete
and correct copy of the operating agreement of EnergySolutions, (B) certificates
of good standing for 

 

66

 

EnergySolutions issued by the Secretary of
State or similar state official for each state in which EnergySolutions is
required to qualify or has qualified to do business, (C) a true, complete
and correct copy of the appropriate authorizing resolutions of EnergySolutions,
authorizing EnergySolutions to execute, deliver and perform this Agreement and
the other Loan Documents to which it is a party, and (D) a true, complete
and correct copy of any agreement in effect with respect to the voting rights,
ownership interests or management of EnergySolutions;

 

(C)                                the results of
a recent lien search in each relevant jurisdiction (including, without
limitation, in the United States Patent and Trademark Office and the United
States Copyright Office) with respect to EnergySolutions and each Guarantor,
and such search shall reveal no liens on any of the outstanding shares issued
by EnergySolutions and no liens on any of the assets of EnergySolutions or any
Guarantor, other than liens permitted by the Loan Documents;

 

(D)                               legal opinions
of (i) Weil, Gotshal & Manges LLP, counsel to EnergySolutions, (ii) Parr
Waddoups Brown Gee & Loveless, Utah counsel to EnergySolutions, and (iii) Morgan,
Lewis & Bockius LLP, special counsel to EnergySolutions and its
Subsidiaries; each as counsel to EnergySolutions and its Subsidiaries,
addressed to each Lender, the Administrative Agent and the Collateral Agent, in
form and substance reasonably satisfactory to the Administrative Agent and its
counsel, and dated as of the Third Amended and Restated Credit Agreement Effective
Date;

 

(E)                                 a completed
Perfection Certificate substantially in the form of Exhibit R to
this Agreement, executed by an Authorized Signatory of each Loan Party,
together with all attachments contemplated thereby;

 

(F)                                 a loan
certificate from Parent and each other Loan Party, in substantially the form of
Exhibit M, N or O, as applicable, including a
certificate of incumbency with respect to each officer or partner authorized to
execute Loan Documents on behalf of such Person, together with appropriate
attachments which shall include, without limitation, the following items:  (A) a copy of the certificate or
articles of incorporation of such Person or certificate of formation of such
Subsidiary, as applicable, certified to be true, complete and correct by the
Secretary of State of the jurisdiction of incorporation or of formation of such
Subsidiary, (B) certificates of good standing for such Person issued by
the Secretary of State or similar state official of each state in which such
Person is organized or required to qualify to do business, (C) a true, complete
and correct copy of the by-laws, operating agreement or partnership agreement,
as applicable, of such Person, and (D) a true, complete and correct copy
of the resolutions of such Person authorizing it to execute, deliver and
perform the Loan Documents to which it is a party;

 

(G)                                copies of
reasonably satisfactory insurance brokers’ letters, binders or certificates
covering the assets of EnergySolutions and its Subsidiaries, and otherwise
meeting and covering the requirements of Section 5.5 hereof;

 

67

 

(H)                               [Reserved];

 

(I)                                    evidence that
all other recordings and filings of or with respect to each Security Document
shall have been completed and that all other actions that the Administrative
Agent may reasonably deem necessary or desirable in order to perfect and
protect the liens and security interests created under the Security Documents
shall have been taken, completed or otherwise provided for in a manner
reasonably satisfactory to the Administrative Agent (including, without limitation,
receipt of duly executed payoff letters and UCC-3 termination statements) and
the Administrative Agent shall have received such assurances, including,
without limitation, title insurance and opinions of counsel, as the
Administrative Agent may deem appropriate to establish the Loan Parties’ title
to, and the due creation and perfection of the Administrative Agent’s liens on
and security interests in, the Collateral and the absence of any unpermitted
liens on or interests in the Collateral, in form and substance satisfactory to
the Administrative Agent; and

 

(J)                                   duly executed
Notes (to the extent requested by any Lenders).

 

(ii)                                  [Reserved].

 

(iii)                               The
Administrative Agent and the Arranger shall have received all reasonable costs,
fees, expenses and other amounts due and payable on or prior to the Third
Amended and Restated Credit Agreement Effective Date, including reimbursement
or payment of all out-of-pocket expenses (including the reasonable fees,
disbursements and other charges of Cahill Gordon & Reindel LLP,
counsel for the Administrative Agent and the Arranger) required to be
reimbursed or paid by EnergySolutions, and for which invoices have been
presented to EnergySolutions on or prior to the Third Amended and Restated
Credit Agreement Effective Date.

 

(iv)                              The
Administrative Agent shall have received evidence reasonably satisfactory to
them that all material Necessary Authorizations, including all material necessary
consents to the execution, delivery and performance by EnergySolutions of this
Agreement and the other Loan Documents to which it is a party and by the
Subsidiaries of the Loan Documents to which they are parties, have been
obtained or made, are in full force and effect and are not subject to any
pending or threatened reversal or cancellation, and the Administrative Agent
shall have received a certificate of an Authorized Signatory so stating.

 

(v)                                 All financing
statements, Existing Mortgages and other documents relating to the perfection
of the Lender’s liens on and security interests in the Collateral shall remain
filed or recorded as provided pursuant to the Second Amended and Restated
Credit Agreement and the Second Amended and Restated Security Documents.

 

(vi)                              All
intercompany indebtedness of the Loan Parties shall have been subordinated to
their respective obligations hereunder, on terms reasonably acceptable to the
Administrative Agent.

 

(vii)                           [Reserved].

 

68

 

(viii)                        The Lenders
shall have received a solvency certificate, signed by the chief financial
officer of EnergySolutions and in form and substance satisfactory to the Administrative
Agent, together with such other evidence reasonably requested by the Lenders,
confirming the solvency of EnergySolutions, Parent and their Subsidiaries on a
consolidated basis.

 

(ix)                                The
Administrative Agent shall have received a Loan Party Acknowledgment, in
substantially the form attached hereto as Exhibit S, dated as of
the Third Amended and Restated Credit Agreement whereby each Loan Party (i) ratifies
and affirms its obligations under the Loan Documents executed by such Loan
Party, (ii) acknowledges, renews and extends its continued liability under
all such Loan Documents and agrees such Loan Documents remain in full force and
effect and (iii) agrees that the Security Documents secure all obligations
of the Loan Parties under this Agreement and the other Loan Documents.

 

(x)                                   The Collateral
Agent shall have received:

 

(A)                              with respect to
each Mortgaged Property, a Mortgage Amendment;

 

(B)                                with respect to
each Mortgaged Property, a copy of the Existing Mortgage Policy and an unconditional
and irrevocable commitment to issue, upon recordation of the applicable
Mortgage Amendment(s) an endorsement with respect thereto assuring the
Collateral Agent that such Existing Mortgage, as amended by the applicable
Mortgage Amendment is a valid and enforceable first priority lien on such
Mortgaged Property in favor of the Collateral Agent for the benefit of the
Secured Parties free and clear of all defects and encumbrances and liens except
as expressly permitted by Section 7.2, and otherwise in form and substance
reasonably satisfactory to the Collateral Agent together with a completed
Federal Emergency Management Agency Standard Flood Hazard Determination (“Flood
Determination”) with respect to each Mortgaged Property; and

 

(C)                                with respect to
each Mortgage Amendment delivered pursuant to Section 3.1(b)(x)(A),
opinions of local counsel to the Loan Parties, which opinions (x) shall be
addressed to the Agent and each of the Lenders and be dated the Third Amended
and Restated Credit Agreement Effective Date, (y) shall cover the
enforceability of the applicable Existing Mortgage, as amended by the
applicable Mortgage Amendment, and such other matters incident to the
transactions contemplated herein as the Collateral Agent may reasonably request
and (z) shall be in form and substance reasonably satisfactory to the
Collateral Agent.

 

If delivery of the Mortgage
Amendments, Existing Mortgage Policies and endorsements thereto and/or local
opinions pursuant to this Section 3.1(x) cannot be accomplished on or
prior to the Third Amended and Restated Credit Agreement Effective Date without
undue burden or expense, then delivery of such documents and instruments shall
not constitute a condition precedent to effectiveness of this Agreement.  To the extent that any such documents are not
delivered on or prior to the Third Amended and Restated Credit Agreement
Effective Date, 

 

69

 

then EnergySolutions and/or Parent, at its
sole cost and expense, will (or will cause its respective Subsidiaries to)
deliver or cause to be delivered such documents and instruments on or prior to
the date that is thirty (30) days after the Third Amended and Restated Credit
Agreement Effective Date.

 

Section 3.2                                                Conditions
Precedent to Each Loan.

 

The obligation of the Lenders to make each Loan
(including the initial Loans hereunder but excluding (i) a Letter of
Credit Loan made by the Revolving Issuing Bank or a Revolving Lender pursuant
to Section 2.2(f), (ii) a reborrowing or continuation of all
or a portion of a Loan of the same Type pursuant to Section 2.2(b) or
Section 2.2(c) and (iii) a conversion of all or a portion
of a Loan from one Type to the other pursuant to Section 2.2(b) or
Section 2.2(c) and the obligation of any Issuing Bank to issue
a Letter of Credit (including the initial issuance) or renew or extend a Letter
of Credit, is subject to the further conditions precedent that on the date of
such Loan or issuance or renewal:

 

(a)                                  The following
statements shall be true (and each of the giving of the applicable Request for
Loan, or Notice of Issuance or Revolving Notice of Renewal and the acceptance
by EnergySolutions of the proceeds of such Loan or of such Letter of Credit or
the renewal of such Letter of Credit shall constitute a representation and
warranty by EnergySolutions that both on the date of such notice and on the
date of such Loan or issuance or renewal such statements are true):

 

(i)                                     All of the
representations and warranties of the Loan Parties under this Agreement and the
other Loan Documents, which, pursuant to Section 4.2 hereof, are
made at and as of the time of such Loan, shall be true and correct at such time
in all material respects as if made at such time (except to the extent they
expressly relate to an earlier date, in which case they shall be true and
correct in all material respects as of such earlier date), both before and
after giving effect to the application of the proceeds of such Loan, and after
giving effect to any updates to information provided to the Lenders in accordance
with the terms of such representations and warranties; and

 

(ii)                                  No Default has
occurred and is continuing, or would result from such Loan or issuance or
renewal or from the application of the proceeds therefrom.

 

(b)                                 The
Administrative Agent shall have received a duly executed Request for Loan in
accordance with the requirements hereof.

 

(c)                                  The
Administrative Agent shall have received any such additional documentary
information reasonably requested and reasonably satisfactory to the Administrative
Agent confirming the satisfaction of any of the foregoing conditions in this Section 3.2
if, in the good faith judgment of Administrative Agent, such request is
warranted under the circumstances.

 

70

 

ARTICLE
4.

 

Representations
and Warranties

 

Section 4.1                                                Representations
and Warranties.

 

EnergySolutions hereby agrees, represents and
warrants in favor of the Administrative Agent, the Arranger and each Lender
that:

 

(a)                                  Organization;
Ownership; Power; Qualification.  EnergySolutions is a limited liability
company, or, to the extent permitted by Section 7.4(b), a
corporation, duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization. 
EnergySolutions has the limited liability company power, or corporate
power, as applicable, and authority to own its properties and to carry on its
business as now being and hereafter proposed to be conducted.  Each Subsidiary and Parent is a corporation,
limited liability company or a partnership (as the case may be) duly organized,
validly existing and in good standing under the laws of the state of its
incorporation, organization or formation (as the case may be), and has the
necessary power and authority to own its properties and to carry on its
business as now being and hereafter proposed to be conducted.  EnergySolutions, Parent and each of their
Subsidiaries are duly qualified, in good standing and authorized to do business
in each jurisdiction (other than their respective jurisdictions of
incorporation, organization or formation) in which the character of their
respective properties or the nature of their respective businesses makes such
qualification or authorization prudent, except where the failure to be so
qualified and in good standing would not reasonably be expected to result in a
Material Adverse Change.

 

(b)                                 Authorization;
Enforceability. 
EnergySolutions has the power and has taken all necessary action to
authorize it to borrow hereunder, to execute, deliver and perform this
Agreement and each of the other Loan Documents to which it is a party in accordance
with their respective terms, and to consummate the transactions contemplated
hereby and thereby.  This Agreement has
been duly executed and delivered by EnergySolutions and is, and each of the
other Loan Documents to which EnergySolutions is party is, a legal, valid and
binding obligation of EnergySolutions enforceable against EnergySolutions in
accordance with its terms, subject, as to enforcement of remedies, to the following
qualifications:  (i) an order of
specific performance and an injunction are discretionary remedies and, in
particular, may not be available where damages are considered an adequate
remedy at law, (ii) enforcement may be limited by bankruptcy, insolvency,
liquidation, reorganization, reconstruction and other similar laws affecting
enforcement of creditors’ rights generally (insofar as any such law relates to
the bankruptcy, insolvency or similar event of EnergySolutions), and (iii) enforcement
may be subject to general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law) and may be
limited by public policies which may affect the enforcement of certain rights
or remedies provided for in this Agreement or the Security Documents.

 

(c)                                  Subsidiaries
and Parent; Authorization; Enforceability.  EnergySolutions’ Subsidiaries, Parent’s
Subsidiaries and all Investments of EnergySolutions and Parent 

 

71

 

and their direct and
indirect ownership thereof are set forth as of the Third Amended and Restated
Credit Agreement Effective Date on Schedule 1, and except as set forth
on Schedule 1 attached hereto, EnergySolutions and Duratek have the
unrestricted right to vote the issued and outstanding shares of their corporate
Subsidiaries, and the right to vote their partnership and membership interests
in such partnership and limited liability company Subsidiaries in accordance
with the terms of the applicable partnership agreement or operating agreement
shown thereon; such shares of such corporate Subsidiaries have been duly
authorized and issued and are fully paid and nonassessable.  Each of EnergySolutions, Parent and their
Subsidiaries has the necessary power and authority, and has taken all necessary
action to authorize it, to execute, deliver and perform each of the Loan
Documents to which it is a party in accordance with their respective terms and
to consummate the transactions contemplated by this Agreement and by such Loan
Documents.  Each of the Loan Documents to
which a Loan Party is party is a legal, valid and binding obligation of such
Person, enforceable against such Person in accordance with its terms, subject,
as to enforcement of remedies, to the following qualifications:  (i) an order of specific performance and
an injunction are discretionary remedies and, in particular, may not be
available where damages are considered an adequate remedy at law, (ii) enforcement
may be limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction
and other similar laws affecting enforcement of creditors’ rights generally
(insofar as any such law relates to the bankruptcy, insolvency or similar event
of such Subsidiary), and (iii) enforcement may be subject to general
principles of equity (regardless of whether such enforcement is considered in a
proceeding in equity or at law) and may be limited by public policies which may
affect the enforcement of certain rights or remedies provided for in such Loan
Documents.

 

(d)                                 Consents,
Applicable Law, Conflicts and Liens.  Except as set forth on Schedule 6
hereto (as such schedule was delivered on the Second Amendment Effective
Date), the execution, delivery and performance, in accordance with their respective
terms, by EnergySolutions of this Agreement and any Notes, and by
EnergySolutions, Parent and their respective Subsidiaries of each of the other
Loan Documents to which they are respectively party, and the consummation of
the transactions contemplated hereby and thereby, do not and will not (i) require
any material consent or approval, governmental or otherwise, not already
obtained, (ii) violate any Applicable Law respecting EnergySolutions,
Parent or their respective Subsidiaries, (iii) conflict with, result in a
breach of or constitute a default under the certificate or articles of
incorporation or by-laws, operating agreement or partnership agreement, as the
case may be, as such documents are amended, of EnergySolutions, of Parent or of
any of their respective Subsidiaries, or under any material indenture,
agreement, or other instrument, to which EnergySolutions, Parent or any of
their respective Subsidiaries is a party or by which any of them or their
respective properties may be bound, (iv) conflict with, result in a breach
of, or constitute a default or violation of, the terms and conditions of any of
the Necessary Authorizations, except in the case of any conflict, breach,
default or violation of any of the Environmental Permits not reasonably
expected to result, individually or in the aggregate with all other exceptions
to the representations and warranties in Section 4.1(a)(i) hereof,
in a Material Adverse Change or (v) result in or require the creation or
imposition of any Lien upon or with respect to any property now owned or
hereafter acquired by EnergySolutions, Parent or any of their respective
Subsidiaries except for Permitted Liens.

 

72

 

(e)                                  Business.  On the Third Amended and Restated Credit
Agreement Effective Date, Parent is a direct or indirect holding company for
each of EnergySolutions and Duratek and Parent, together with its Subsidiaries,
each is engaged in the business of owning, operating and investing in the
Permitted Businesses.

 

(f)                                    Licenses, Etc.  The Necessary Authorizations have been duly
authorized by the grantors thereof and are in full force and effect.  EnergySolutions and the Subsidiaries are in
compliance in all material respects with all of the provisions of the Necessary
Authorizations.  Except as set forth on Schedule 7
(as such schedule was delivered on the Second Amendment Effective
Date) as delivery on the Second Amendment Effective Date, attached
hereto, EnergySolutions and the Subsidiaries have secured all Necessary
Authorizations and all such Necessary Authorizations are in full force and
effect.  Except as set forth on Schedule
7 (as such schedule was delivered on the Second Amendment Effective
Date) attached hereto, none of the material Necessary Authorization is the
subject of any pending or, to EnergySolutions’ or Duratek’s knowledge,
threatened revocation.

 

(g)                                 Compliance with
Law.  EnergySolutions, Parent and
their respective Subsidiaries are in compliance with all Applicable Law except
to the extent the failure to do so would not reasonably be expected to result
in a Material Adverse Change.

 

(h)                                 Title to Assets.  Each of EnergySolutions, Parent and each of
their respective Subsidiaries has (i) good, defensible, insurable, legal
and beneficial fee simple title to (in the case of fee interests in real
property), (ii) valid and enforceable leasehold interests in (in the case
of leasehold interests in real or personal property) and (iii) good and
defensible title to (in the case of all other personal property), all of its
properties and assets.  None of such
properties or assets held by Parent, EnergySolutions or their respective
Subsidiaries is subject to any Liens, except for Permitted Liens.  Except for financing statements evidencing
Permitted Liens, no financing statement under the Uniform Commercial Code as in
effect in any jurisdiction and no other filing which names Parent, EnergySolutions
or their respective Subsidiaries as debtor or which covers or purports to cover
any of the assets of Parent, EnergySolutions or their respective Subsidiaries
is currently effective and on file in any state or other jurisdiction, and none
of Parent, EnergySolutions or their respective Subsidiaries has signed any such
financing statement or filing or any security agreement authorizing any secured
party thereunder to file any such financing statement or filing.

 

(i)                                     Litigation.  There is no action, suit, revocation,
proceeding or investigation pending against, or, to EnergySolutions’ knowledge,
threatened against or in any other manner relating adversely to, Parent,
EnergySolutions or their respective Subsidiaries or any of their respective
properties, including without limitation any of the Necessary Authorization, in
any court or before any arbitrator of any kind or before or by any governmental
body, except as described on Schedule 8 attached hereto (as such
schedule was delivered on the Second Amendment Effective
Date) or as subsequently disclosed to the Administrative Agent and the
Lenders pursuant to Section 6.5 hereof; and no such action, suit,
proceeding or investigation could reasonably be expected to have an adverse outcome
which (i) calls into question the validity of this Agreement or any other
Loan Document, (ii) challenges the continued possession and use of any License
by Parent, 

 

73

 

EnergySolutions or their
respective Subsidiaries or any Person in which EnergySolutions has, directly or
indirectly, an Investment and such challenge could result in a Default pursuant
to Section 8.1(k) hereof, or (iii) except as expressly
set forth on Schedule 8 (or as disclosed pursuant to Section 6.5),
could have a Material Adverse Change.

 

(j)                                     Taxes.  Except as set forth on Schedule 16 (as
such schedule was delivered on the Second Amendment Effective
Date), all federal, material state and other material tax returns (including
information returns) of Parent, EnergySolutions and each of their respective
Subsidiaries required by law to be filed have been duly filed and all federal,
state and other Taxes, including, without limitation, withholding taxes,
assessments and other governmental charges or levies required to be paid by
Parent, EnergySolutions or their respective Subsidiaries or imposed upon
Parent, EnergySolutions or their respective Subsidiaries or any of their
respective properties, income, profits or assets, which are due and payable,
have been paid, except (x) any such taxes (i) the payment of which
Parent, EnergySolutions or any of their respective Subsidiaries is diligently
contesting in good faith by appropriate proceedings, (ii) for which
adequate reserves in accordance with GAAP have been provided on the books of
Parent, EnergySolutions or their respective Subsidiaries and (iii) as to
which no Lien other than a Permitted Lien has attached and no foreclosure,
distraint, sale or similar proceedings have been commenced and (y) to the
extent the failure of such tax returns to have been so filed or such taxes to
have been paid would not reasonably be expected to have a Material Adverse
Change.  Each of Parent, EnergySolutions
or their respective Subsidiaries has made adequate provision in accordance with
GAAP for all taxes not yet due and payable, except as could not reasonably be
likely to, individually or in the aggregate, have a Material Adverse
Change.  Each of Parent, EnergySolutions
or their respective Subsidiaries is unaware of any proposed or pending tax
assessments, deficiencies or audits that could be reasonably expected to, individually
or in the aggregate, result in a Material Adverse Change.  None of Parent, EnergySolutions or their
respective Subsidiaries has ever been a party to any understanding or
arrangement constituting a “tax shelter” within the meaning of Section 6662(d)(2)(C)(iii) of
the Code or within the meaning of Section 6111(c) or Section 6111(d) of
the Code as in effect immediately prior to the enactment of the American Jobs
Creation Act of 2004, or has ever “participated” in a “reportable transaction”
within the meaning of Treasury Regulation Section 1.6011-4, except as
could not reasonably be likely to, individually or in the aggregate, have a Material
Adverse Change.

 

(k)                                  Financial
Statements. 
EnergySolutions has furnished or caused to be furnished to the
Administrative Agent and the Lenders its (or its predecessor’s) audited financial
statements on a consolidated basis with its Subsidiaries for the fiscal year
ended December 31, 2007, which, together with other financial statements
furnished to the Administrative Agent and the Lenders subsequent to the
Agreement Date, are complete and correct in all material respects and present
fairly in accordance with GAAP the financial position of EnergySolutions and
its Subsidiaries on a consolidated basis on and as at such dates and the
results of operations for the periods then ended.  Except as provided on Schedule 9
attached hereto (as such schedule was delivered on the Second
Amendment Effective Date), none of EnergySolutions, Parent or any of
their Subsidiaries has any material liabilities, contingent or otherwise, other
than (i) as disclosed in the financial statements referred to in the
preceding sentence or those delivered pursuant to Sections 6.1 or 

 

74

 

6.2, (ii) those
that would not reasonably be expected to have a Material Adverse Change and (iii) as
set forth or referred to in this Agreement.

 

(l)                                     No Adverse
Change.  Since December 31, 2007,
there has occurred no event which has had or which could reasonably be expected
to have a Material Adverse Change.

 

(m)                               ERISA.  EnergySolutions and each Subsidiary and each
of their respective Plans are in compliance in all respects with ERISA and the
Code, including Section 4980 B of the Code, except as could not reasonably
be expected to have a Material Adverse Change. 
Neither Parent nor any of its Subsidiaries has incurred any accumulated
funding deficiency within the meaning of Section 412 of the Code with
respect to any Plan.  No ERISA Affiliate
has incurred any accumulated funding deficiency within the meaning of Section 412
of the Code with respect to any ERISA Affiliate Plan, except as could not
reasonably be expected to have a Material Adverse Change.  No Reportable Event, for which the 30-day
notice requirement has not been waived, has occurred and is continuing with
respect to any Plan, except as could not reasonably be expected to result in a
Material Adverse Change.  No Plan or
trust created thereunder, or party in interest (as defined in Section 3(14)
of ERISA), or any fiduciary (as defined in Section 3(21) of ERISA), has
engaged in a “prohibited transaction” (as such term is defined in Section 406
of ERISA or Section 4975 of the Code) which would reasonably be expected
to subject Parent or any of its Subsidiaries to a tax or penalty in any amount
on “prohibited transactions” imposed by Section 502 of ERISA or Section 4975
of the Code or an obligation to indemnify any other person for such tax or
penalty, except as could not reasonably be expected to result in a Material
Adverse Change.  None of EnergySolutions,
any Subsidiary or any of their ERISA Affiliates (i) has incurred or
reasonably expects to incur any liability with respect to a withdrawal from any
Multiemployer Plan, except as could not reasonably be expected to have a
Material Adverse Change, or (ii) has received any notice concerning a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA, except as could not
reasonably be expected to have a Material Adverse Change.

 

(n)                                 Compliance with
Regulations T, U and X.  None
of Parent, EnergySolutions or any of their respective Subsidiaries is engaged
principally in or has as one of its important activities the business of
purchasing or carrying, or extending credit for the purpose of purchasing or
carrying, any margin stock within the meaning of Regulations T, U and X of the
Board of Governors of the Federal Reserve System; nor will any proceeds of the
Loans be used for such purpose.

 

(o)                                 Investment
Company Act.  None of
Parent, EnergySolutions or any of their respective Subsidiaries is required to
register under the provisions of the Investment Company Act of 1940, as
amended, and neither the entering into or performance by Parent,
EnergySolutions or any of their respective Subsidiaries of this Agreement nor
the issuance of any Notes violates any provision of such Act or requires any
consent, approval or authorization of, or registration with, the Securities and
Exchange Commission or any other governmental or public body or authority
pursuant to any provisions thereof.

 

75

 

(p)                                 Governmental
Regulation.  Except as
set forth on Schedule 6 hereto (as such schedule was delivered on the Second
Amendment Effective Date), none of Parent, EnergySolutions or any of
their respective Subsidiaries is required to obtain any consent, approval,
authorization, permit or license which has not already been obtained from, or
effect any filing or registration which has not already been effected with, any
federal, state or local regulatory authority in connection with the execution
and delivery of this Agreement.  None of
Parent, EnergySolutions or any of their respective Subsidiaries is required to
obtain any consent, approval, authorization, permit or license which has not
already been obtained from, or effect any filing or registration which has not
already been effected with, any federal, state or local regulatory authority in
connection with the performance, in accordance with their respective terms, of
this Agreement or any other Loan Document.

 

(q)                                 Absence of
Default, Etc.  Parent,
EnergySolutions and all of their respective Subsidiaries are in compliance in
all respects with all of the provisions of their respective certificates or
articles of organization or incorporation and by-laws, operating agreement or
partnership agreements, as the case may be, and no event has occurred or failed
to occur (including, without limitation, any matter which could create a
Default hereunder by cross-default) which has not been remedied or waived, the
occurrence or non-occurrence of which constitutes, or with the passage of time
or giving of notice or both would constitute, (i) an Event of Default or (ii) a
material default by Parent, EnergySolutions or any of their respective
Subsidiaries under any material agreement or other instrument relating to
Indebtedness of Parent, EnergySolutions or any of their respective Subsidiaries
in the amount of $5,000,000 or more, any of the Necessary Authorization, or any
judgment, decree or order in the amount of $5,000,000 or more to which Parent,
EnergySolutions or any of their respective Subsidiaries is a party or by which
Parent, EnergySolutions or any of their respective Subsidiaries or any of their
respective properties may be bound or affected. 
None of Parent, EnergySolutions or any of their respective Subsidiaries
is a party to or bound by any contract or agreement continuing after the Third
Amended and Restated Credit Agreement Effective Date, or bound by any Applicable
Law, that could have a Material Adverse Change or result in the loss of any License.

 

(r)                                    Accuracy and
Completeness of Information.  All information, reports, prospectuses and
other papers and data relating to Parent, EnergySolutions or any of their respective
Subsidiaries and furnished by or on behalf of Parent, EnergySolutions or any of
their respective Subsidiaries to the Administrative Agent or the Lenders were,
taken as a whole, at the time furnished, true, complete and correct in all
material respects to the extent necessary to give the Administrative Agent and
the Lenders true and accurate knowledge of the subject matter.  No fact or situation is currently known to
EnergySolutions which has had or could reasonably be expected to have a
Material Adverse Change.

 

(s)                                  Agreements with
Affiliates and Management Agreements.  Except as set forth on Schedule 10
attached hereto (as such schedule was delivered on the Second
Amendment Effective Date) or otherwise permitted hereunder, none of
Parent, EnergySolutions or any of their respective Subsidiaries has (i) any
written agreements or binding 

 

76

 

arrangements of any kind
with any Affiliate or (ii) any material management or consulting agreements
of any kind.

 

(t)                                    Priority.  The Security Interest is a valid and
perfected first priority security interest in the Collateral in favor of the
Administrative Agent, for itself and for the ratable benefit of the Secured
Parties, securing, in accordance with the terms of the Security Documents and
subject to the outstanding Obligations, and the Collateral is subject to no
Liens other than Permitted Liens.  The
Liens created by the Security Documents are enforceable as security for the
outstanding Secured Obligations in accordance with their terms with respect to
the Collateral subject, as to enforcement of remedies, to the following
qualifications:  (i) an order of
specific performance and an injunction are discretionary remedies and, in
particular, may not be available where damages are considered an adequate
remedy at law, (ii) enforcement may be limited by bankruptcy, insolvency,
liquidation, reorganization, reconstruction and other similar laws affecting
enforcement of creditors’ rights generally (insofar as any such law relates to
the bankruptcy, insolvency or similar event of Parent, EnergySolutions or any
of their respective Subsidiaries, as the case may be), and (iii) enforcement
may be subject to general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law) and may be
limited by Applicable Law that may affect the enforcement of certain rights or
remedies provided for in such Loan Documents.

 

(u)                                 Indebtedness.  Except as permitted pursuant to Section 7.1
hereof, none of Parent, EnergySolutions or any of their respective Subsidiaries
has outstanding, as of the Third Amended and Restated Credit Agreement
Effective Date, and after giving effect to the initial Loans hereunder on the
Third Amended and Restated Credit Agreement Effective Date, any Indebtedness
for Money Borrowed other than the Duratek Loans, the Indebtedness existing as
of Second Amendment Effective Date and set forth on Schedule 14 and the
Indebtedness for Money Borrowed evidenced by this Agreement or any of the other
Loan Documents.

 

(v)                                 Investments.  All Investments of Parent, EnergySolutions
and all of their respective Subsidiaries are shown as of the Third Amended and
Restated Credit Agreement Effective Date on Schedule 1 attached hereto.

 

(w)                               Real Estate.  As of the Third Amended and Restated Credit
Agreement Effective Date, other than as listed and described on Schedule 11
attached hereto, none of EnergySolutions or any of its Subsidiaries currently
owns, leases or has previously owned or leased any real property.

 

(x)                                   Intellectual
Property.  Parent,
EnergySolutions and each of their respective Subsidiaries own, possess or have
the right to use all licenses and rights to all patents, trademarks, trademark
rights, trade names, trade name rights, service marks and copyrights necessary
to conduct their business in all respects as now conducted, without known
conflict with any patent, trademark, trade name, service mark, license or
copyright of any other Person, except to the extent that the failure to so own,
possess or have the right to use the same could not reasonably be expected to
result in a Material Adverse Change, and such intellectual property of Parent,
EnergySolutions or any of their respective 

 

77

 

Subsidiaries is not subject
to any Lien, other than any Permitted Liens. 
All such licenses and rights with respect to patents, trademarks,
trademark rights, trade names, trade name rights, service marks and copyrights
are in full force and effect in all respects, except to the extent that the
failure to so be in full force and effect could not reasonably be expected to
result in a Material Adverse Change, and are not subject to any pending or, to
the knowledge of EnergySolutions and Parent, threatened attack or revocation.

 

(y)                                 Patriot Act.  None of Parent, EnergySolutions or any of
their respective Subsidiaries is in material violation of any laws relating to
terrorism or money laundering, including, without limitation, the Patriot Act.

 

(z)                                   Solvency.  As of the Third Amended and Restated Credit
Agreement Effective Date, the Loan Parties, taken as a whole, are and, both
before and after the making of any Loan hereunder on such date, will be
Solvent.

 

(aa)                            Environmental
Matters.

 

(i)                                     Except as,
individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Change:

 

(A)                              the operations
of EnergySolutions, Duratek and the Property are in compliance with all
applicable Environmental Laws and Environmental Permits in all material respects,
including, without limitation, obtaining, maintaining, and timely applying to
obtain, amend or renew Environmental Permits necessary for operations of
EnergySolutions and the Subsidiaries, and EnergySolutions and the Subsidiaries
have no liability under such Environmental Laws and Environmental Permits;

 

(B)                                neither
EnergySolutions nor any of the Subsidiaries nor any real property currently or
previously owned, operated or leased by EnergySolutions or the Subsidiaries or
any predecessor of EnergySolutions or the Subsidiaries is subject to any
pending Environmental Claim or governmental investigation or, to EnergySolutions’
knowledge, threatened Environmental Claim or governmental investigation, in
each case, related to Environmental Laws or Environmental Permits including,
without limitation, any such Environmental Claim or governmental investigation
to revoke Environmental Permits necessary for operations of EnergySolutions or
the Subsidiaries;

 

(C)                                each of
EnergySolutions and Duratek has obtained and currently maintains all funds
required by applicable Environmental Law to secure any obligations of
EnergySolutions and Duratek for closure and post-closure care of the Property;

 

(D)                               no lien has
been placed upon or, to EnergySolutions’ or Duratek’s knowledge, is threatened
to be placed upon the Property under any Environmental Law;

 

78

 

(E)                                 neither
EnergySolutions, Duratek nor any of their past or current facilities or
operations, nor any predecessor of EnergySolutions or Duratek, nor any owner of
premises leased or operated by EnergySolutions or Duratek, is subject to any
outstanding settlement or order, writ, injunction, ruling, assessment,
judgment, plan, arbitration award or decree from any Person (i) identifying
or alleging noncompliance with or liability under any Environmental Laws, (ii) requiring
Remedial Action or (iii) requiring payment of any Environmental Claim;

 

(F)                                 there is no
Environmental Claim pending against or to EnergySolutions’ or Duratek’s
knowledge threatened against, affecting or involving any Person whose liability
for such Environmental Claim EnergySolutions or Duratek has assumed contractually
or by operation of law;

 

(G)                                neither
EnergySolutions nor to EnergySolutions’ knowledge any predecessor of
EnergySolutions, nor to EnergySolutions’ knowledge any owner of premises leased
or operated by EnergySolutions or any of its predecessors, has filed any notice
under any Environmental Law reporting a Release of Hazardous Material that is
not otherwise authorized under applicable Environmental Laws or Environmental
Permits; neither Duratek nor to Duratek’s knowledge any predecessor of Duratek,
nor to Duratek’s knowledge any owner of premises leased or operated by Duratek
or any of its predecessors, has filed any notice under any Environmental Law
reporting a Release of Hazardous Material that is not otherwise authorized
under applicable Environmental Laws or Environmental Permits;

 

(H)                               except as
authorized under the Environmental Permits, in the ordinary course of the
Permitted Business, there have been no Releases of Hazardous Materials at, on
or under any property now or previously owned, operated or leased by
EnergySolutions, Duratek or any of their predecessors that have given or could
give rise to Remedial Action under any Environmental Law;

 

(I)                                    no property now
or previously owned or leased by EnergySolutions or Duratek (collectively, “Site”)
is listed or proposed for listing on the National Priorities List pursuant to
CERCLA, on the Comprehensive Environmental Response, Compensation and Liability
Information System List or on any similar state list of sites requiring
investigation or cleanup (collectively, “List”) and no such site of any
predecessor of EnergySolutions or any of the Subsidiaries is listed or, to
EnergySolutions’ knowledge, proposed for listing on any such List; and

 

(J)                                   to
EnergySolutions’ and Duratek’s knowledge, there is no proposed rule or
introduced legislation (including any proposed rule or introduced
legislation under discussion by any applicable state or local governmental
authority) relating to applicable Environmental Laws, the enforcement of
applicable Environmental Laws, or the grant or interpretation of applicable
Environmental Permits, that would result in material expenditures or changes in
the operations of the Permitted Business; and

 

79

 

(ii)                                  Save and except
those representations and warranties in Section 4.1(d)(iv) with
respect to Environmental Permits, the representations and warranties of this Section 4.1(aa)
are the sole and exclusive representations and warranties with respect to any
Necessary Authorization addressed in Section 4.1(f) that is
also an Environmental Permit, and with respect to any action, suit, revocation,
proceeding or investigation addressed in Section 4.1(i) that
is also an Environmental Claim.

 

(bb)                          Employee
Relations.  Each Loan
Party and each of its Subsidiaries (A) has adequate relations with its
employees, and (B) is not, as of the Second Amendment Effective
Date, except as set forth on Schedule 13 (as such schedule was
delivered on the Second Amendment Effective Date), party to any
collective bargaining agreement.  Except
as set forth on Schedule 13 (as such schedule was delivered on the Second
Amendment Effective Date), no labor union has been recognized as the
representative of any Loan Party’s or any of its Subsidiaries’ employees, and
no Loan Party is aware of any pending, threatened or contemplated strikes, work
stoppage or other material labor disputes involving such Loan Party’s or
any of its Subsidiaries’ employees.

 

Section 4.2                                                Survival of
Representations and Warranties, Etc.

 

All representations and warranties made under this
Agreement and the other Loan Documents shall be deemed to be made, and shall be
true and correct in all material aspects, at and as of the Third Amended and Restated
Credit Agreement Effective Date and on the date of each Loan except (i) to
the extent expressly applicable only to the Third Amended and Restated Credit
Agreement Effective Date (in which case such representations and warranties
shall have been true and correct in all material respects as of the Third
Amended and Restated Credit Agreement Effective Date) or previously fulfilled
in accordance with the terms hereof, or (ii) to the extent already subject
to a materiality qualification (in which case such representations and warranties
shall be true and correct in all respects without further qualification).  All representations and warranties made under
this Agreement shall survive, and not be waived by, the execution hereof by the
Lenders and the Administrative Agent, any investigation or inquiry by any
Lender or the Administrative Agent, or the making of any Loan under this
Agreement.

 

ARTICLE
5.

 

General
Covenants

 

So long as any of the Obligations is outstanding and
unpaid or any Letter of Credit (other than a Collateralized Letter of Credit)
shall be outstanding or EnergySolutions shall have the right to borrow
hereunder (whether or not the conditions to borrowing have been or can be fulfilled),
and unless the Majority Lenders, or such greater number of Lenders as may be
expressly provided herein, shall otherwise consent in writing:

 

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Section 5.1                                                Preservation of
Existence and Similar Matters.

 

EnergySolutions and Parent
each will, and will cause each of their respective Subsidiaries to:

 

(a)                                  except as
otherwise permitted hereunder, preserve and maintain its existence, rights,
franchises, licenses and privileges in the state of its incorporation, organization
or formation and in each other state in which it operates a material part of
its business, including, without limitation, the Necessary Authorizations
(other than any such the loss of which would not reasonably be expected to
result in a Material Adverse Change); and

 

(b)                                 qualify and
remain qualified and authorized to do business in each jurisdiction (other than
its jurisdiction of incorporation, organization or formation) in which the
character of its properties or the nature of its business makes such
qualification or authorization prudent, except to the extent the failure to do
so could not reasonably be expected to result in a Material Adverse Change.

 

Section 5.2                                                Business;
Compliance with Applicable Law.

 

EnergySolutions and Parent each will, and will cause
each of their respective Subsidiaries to, (a) engage only in the Permitted
Business and will not engage in any other business activity, and (b) comply
with the requirements relating to the Licenses and of all Applicable Law except
to the extent the failure to so comply could not reasonably be expected to
result in a Material Adverse Change.

 

Section 5.3                                                Maintenance of
Properties.

 

EnergySolutions and Parent each will, and will cause
each of their respective Subsidiaries to, maintain or cause to be maintained in
the ordinary course of business in good working order and condition (reasonable
wear and tear excepted and except for surplus and obsolete properties and
properties damaged from casualty) all properties used in their respective
businesses (whether owned or held under lease), and from time to time make or
cause to be made all needed and appropriate repairs, renewals, replacements,
additions, betterments and improvements thereto except, in each case, to the
extent the failure to do so could not reasonably be expected to result in a
Material Adverse Change.

 

Section 5.4                                                Accounting
Methods and Financial Records.

 

EnergySolutions and Parent each will, and will cause
each of their respective Subsidiaries on a consolidated basis to, maintain a
system of accounting established and administered in accordance with GAAP, keep
adequate records and books of account in which complete entries will be made in
accordance with GAAP and reflecting all transactions required to be reflected
by GAAP and keep accurate and complete records in all material respects of
their respective properties and assets. 
EnergySolutions and Parent and their respective Subsidiaries will
maintain a fiscal year ending on December 31.

 

81

 

Section 5.5                                                Insurance.

 

EnergySolutions will, and
will cause each Subsidiary to:

 

(a)                                  Maintain
insurance (other than business interruption coverage insurance) including, but
not limited to, public liability coverage insurance from responsible companies
in such amounts and against such risks to EnergySolutions and each Subsidiary
as is prudent and reasonably satisfactory to the Administrative Agent
(including, without limitation, larceny, embezzlement, employee fidelity and
other criminal misappropriation insurance).

 

(b)                                 Keep their
respective assets insured by responsible companies or self-insured on terms and
in a manner reasonably acceptable to the Administrative Agent against loss or
damage by fire, theft, burglary, pilferage, loss in transit, explosions and
hazards insured against by extended coverage, in amounts which are prudent for
the Permitted Businesses, in accordance with industry standards, and reasonably
satisfactory to the Administrative Agent, all premiums thereon to be paid by
EnergySolutions and each Subsidiary.

 

(c)                                  Require that
each insurance policy for EnergySolutions and the Subsidiaries provide for at
least thirty (30) days’ prior written notice to the Administrative Agent of any
termination of or proposed cancellation or nonrenewal of such policy, or
material reduction in coverage, and name, other than with respect to directors
and officers liability insurance coverage, the Collateral Agent (for itself and
for the ratable benefit of the Secured Parties) as additional named loss payee
to the extent of the Obligations and additional named insured.

 

(d)                                 Subject to Section 5.5(e),
proceeds of insurance for EnergySolutions and each Subsidiary paid to the
Collateral Agent shall be applied to the payment or prepayment of the
Obligations as provided under Section 2.10(c) or Section 8.3
hereof, as applicable.  Any balance
thereof remaining after payment in full of the Obligations shall be paid to
EnergySolutions or as otherwise required by law.

 

(e)                                  If in
connection with any claim EnergySolutions or any Subsidiary shall be entitled
to receive proceeds from any policy for insurance less than $10,000,000, then
EnergySolutions or such Subsidiary shall have the right to elect (i) to
use such proceeds to repair, replace (including, without limitation, the
purchase of replacement assets similar in function to the assets as to which
such proceeds are received) or rebuild the affected assets within one year
after receipt of such proceeds, (ii) to reinvest such proceeds in assets
used or useful to the business of EnergySolutions or the Subsidiaries or (iii) to
remit such proceeds to the Administrative Agent as provided under Section 5.5(d) hereof.  In the event such insurance proceeds from any
such claim exceed such threshold, the Administrative Agent shall hold such
proceeds pending its receipt from EnergySolutions of a plan for the use of such
proceeds and the approval of such plan by the Administrative Agent.

 

82

 

Section 5.6                                                Payment of
Taxes and Claims.

 

EnergySolutions and Parent each will, and will cause
each of their respective Subsidiaries to timely file all material tax returns
(including information returns), required by federal, state or other tax
authorities and pay and discharge all Taxes, including, without limitation,
withholding taxes, assessments and governmental charges or levies required to
be paid by them or imposed upon them or their income or profits or upon any
properties belonging to them, prior to the date on which penalties attach
thereto, and all lawful claims for labor, materials and supplies which, if
unpaid, might reasonably be expected to become a Lien or charge upon any of
their properties, except (i) that no such tax, assessment, charge, levy or
claim need be paid which is being diligently contested in good faith by
appropriate proceedings and for which adequate reserves shall have been set
aside on the appropriate books, but only so long as such tax, assessment,
charge, levy or claim does not become a Lien or charge (other than a Permitted
Lien) and no foreclosure, distraint, sale or similar proceedings shall have
been commenced and (ii) for failures to do so that would not, individually
or in the aggregate, reasonably be expected to result in a Material Adverse
Change.

 

Section 5.7                                                Visits and
Inspections.

 

EnergySolutions and Parent each will, and will cause
each of their respective Subsidiaries to, permit representatives of the Administrative
Agent and any of the Lenders, upon reasonable notice to EnergySolutions, Parent
or the relevant Subsidiary and during normal business hours, to (a) visit
and inspect the properties of EnergySolutions or such Subsidiary, (b) inspect
and make extracts from and copies of their respective books and records, and (c) discuss
with their respective principal officers their respective businesses, assets,
liabilities, financial positions, results of operations and business prospects
so long as EnergySolutions is given reasonable opportunity to be present at
such discussions, all at EnergySolutions’ expense in the case of actions
described in the foregoing clauses (a) through (c) by the Administrative
Agent’s representatives; provided, however, that unless an Event
of Default shall have occurred and be continuing, EnergySolutions shall not be
obligated to reimburse the Administrative Agent for more than one such visit or
inspection per year.  EnergySolutions,
Parent and each of their respective Subsidiaries will also permit
representatives of the Administrative Agent and any of the Lenders to discuss
with their respective auditors their respective businesses, assets,
liabilities, financial positions, results of operations and business prospects,
at (y) EnergySolutions’ expense, in the case of discussions between the
Administrative Agent’s representatives and such respective auditors and (z) the
Lender’s expense, in the case of discussions between any Lender’s representatives
(other than those of the Administrative Agent, in its capacity as a Lender) and
such respective auditors absent an Event of Default (provided that upon
the occurrence and during the continuation of any Event of Default, the same
shall be at EnergySolutions’ expense), in each case so long as EnergySolutions
is given reasonable opportunity to be present at such discussions.

 

Section 5.8                                                Payment of
Indebtedness; Loans.

 

EnergySolutions and Parent each will, and will cause
each of their Subsidiaries to, pay any and all of their respective Indebtedness
when and as it becomes due, other than amounts diligently disputed in good
faith and for which adequate reserves have been set aside in accordance with
GAAP.

 

83

 

Section 5.9                                                Use of Proceeds.

 

No proceeds of Loans hereunder shall be used for the
purchase or carrying or the extension of credit for the purpose of purchasing
or carrying any margin stock within the meaning of Regulations T, U and X of
the Board of Governors of the Federal Reserve System.

 

Section 5.10                                          Real Estate.

 

EnergySolutions and Parent, each at its sole cost
and expense will, and will cause their respective Subsidiaries (other than
Special Purpose Subsidiaries) to, grant and record in the appropriate recording
office an Additional Mortgage securing the Secured Obligations to the Collateral
Agent, for itself and for the ratable benefit of the Secured Parties, in form
and substance reasonably satisfactory to the Collateral Agent, covering each
material fee-owned parcel of real estate hereafter acquired directly or indirectly
by EnergySolutions and Parent or any of their respective Subsidiaries (other
than Special Purpose Subsidiaries) after the Agreement Date.  Each such Additional Mortgage shall be
granted and recorded, promptly (but in no event more than 30 days) after any
such acquisition.  EnergySolutions and
Parent each at its sole cost and expense will, and will cause its Subsidiaries
to, deliver to the Collateral Agent all documentation, including opinion of
counsel, Flood Determinations, property and liability insurance certificates
and Mortgage Policies, which in the reasonable opinion of the Collateral Agent
is appropriate, either in connection with any request for approval of a
proposed Permitted Acquisition or Real Property Acquisition or thereafter in
connection with such grant, including without limitation any survey or any
Phase I environmental audit requested by the Collateral Agent or any Lender in
form and substance acceptance to such requesting party.

 

Section 5.11                                          Indemnity.

 

EnergySolutions and Parent, each for itself and on
behalf of each of their respective Subsidiaries, agree jointly and severally to
indemnify and hold harmless each Lender and the Administrative Agent and each
of their respective affiliates, employees, representatives, officers, trustees,
directors, successors and assigns (any of the foregoing shall be an “Indemnitee”)
from and against any and all claims, liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, reasonable attorneys’ (limited to
the reasonable out-of-pocket fees and expenses of one outside counsel to all
Indemnitees with such local counsel as may be necessary), experts’, agents’ and
consultants’ fees and expenses (as such fees and expenses are incurred) and
demands by any party, including the costs in connection with any investigation,
litigation or proceeding or preparation of a defense in connection therewith,
whether or not EnergySolutions, Parent or any of their Subsidiaries, or the
Person seeking indemnification is the prevailing party, whether or not such
investigation, litigation or proceeding is brought by any Loan Party, its
members, managers, directors, shareholders or creditors or an Indemnitee or any
other Person, and whether or not any Indemnitee is otherwise a party thereto, (a) resulting
from any breach or alleged breach by EnergySolutions, Parent or any of their
Subsidiaries of any representation, warranty or covenant made hereunder or
under any other Loan Document; (b) arising out of or in connection with (i) any
Commitment, any Loans, any Letter of Credit or otherwise under this Agreement
or any other Loan Document (including the taking of Collateral for the Secured
Obligations), including the use of the proceeds of Loans or any Letter of
Credit hereunder in any fashion by EnergySolutions, Parent or any of their
respective Subsidiaries or the performance of 

 

84

 

their respective obligations
under the Loan Documents by EnergySolutions, Parent or any of their respective
Subsidiaries, (ii) allegations of any participation by the Lenders or the
Administrative Agent, or any of them, in the affairs of EnergySolutions, Parent
or any of their respective Subsidiaries, or allegations that any of them has
any joint liability with EnergySolutions, Parent or any of their respective Subsidiaries
for any reason, (iii) any claims against the Lenders or the Administrative
Agent, or any of them, by any shareholder, partner or other investor in or
lender to EnergySolutions, Parent or any of their respective Subsidiaries, by
any brokers or finders or investment advisers or investment bankers retained by
EnergySolutions or Parent or by any other third party, arising out of any
Commitment, any Loans, any Letter of Credit or otherwise under this Agreement
or any other Loan Document, (iv) the presence, use, generation, treatment,
storage, recycling, management, Release or threatened Release of any Hazardous
Material at, in, on or under, or the transport of Hazardous Materials to or
from, property presently or formerly owned or operated by EnergySolutions or
Duratek or their predecessors, Parent or any of their respective Subsidiaries, (v) any
Environmental Claim, (vi) the actual or alleged violation of any
Environmental Law or Environmental Permit, (vii) any Environmental Testing
or Environmental Clean-up Activities required by any applicable governmental
authority or Environmental Law, (viii) any undertaking or action in
response to a request for information, order or notice from, or investigation
by, any governmental authority acting under any applicable Environmental Law,
or (ix) any claims relating to natural resource damages, property damage
(including diminution in value) or the death, personal injury or harm to any
Person actually or allegedly arising from or relating to acts or omissions of
EnergySolutions or Duratek or their predecessors, Parent or any of their
respective Subsidiaries or to conduct by any Person on property presently or
formerly owned or operated by EnergySolutions, Parent or any of their
respective Subsidiaries; or (c) in connection with fees and other charges
payable in connection with the Loans, or the execution, delivery and
enforcement of this Agreement, the Security Documents, the other Loan Documents,
and any amendments thereto or waivers of any of the provisions thereof; in the
case of clause (a), (b) or (c), unless the Person seeking indemnification
hereunder is determined in such case to have acted with gross negligence or
willful misconduct or in breach of the Loan Documents, in any case by a final,
non-appealable judicial order.  The
obligations of EnergySolutions, Parent and their respective Subsidiaries under
this Section 5.11 are in addition to, and shall not otherwise
limit, any liabilities which EnergySolutions, Parent or any respective
Subsidiary might otherwise have in connection with any warranties or similar
obligations of EnergySolutions, Parent or such respective Subsidiary in any
other agreement or instrument or for any other reason.  For the avoidance of doubt, nothing in this Section 5.11
shall be construed so as to apply to the indemnification of Taxes that are neither
Covered Taxes nor Other Taxes.

 

Section 5.12                                          Interest Rate
Hedging.

 

Within sixty (60) days from the Third Amended and
Restated Credit Agreement Effective Date, and at the end of each fiscal quarter
thereafter, EnergySolutions shall have entered into or maintained in effect one
or more Hedge Agreements in such aggregate notional amount as necessary so
that, with respect to no less than thirty-three percent (33%) of the then
outstanding aggregate principal balance of the Term Loans and the Duratek
Loans, EnergySolutions’ obligations to make floating rate interest payments
thereunder will be hedged with fixed rate payments to be paid under such Hedge
Agreements.  Such Hedge Agreements shall
provide interest rate protection on terms (including, without limitation, consideration
of the creditworthiness of the other party to the proposed Hedge Agreement)
reasonably acceptable to (and with parties 

 

85

 

reasonably acceptable to)
the Administrative Agent for an average period of the lesser of (a) two (2) years
from the date of such Hedge Agreement or Hedge Agreements and (b) the
period remaining from the date thereof until the Term Loan Maturity Date.  All Secured Obligations of EnergySolutions to
any of the Lenders pursuant to any Secured Hedge Agreement shall rank pari
passu with all other Secured Obligations. 
Any prepayment, acceleration, reduction, increase or any other change in
the terms of the Loans hereunder will not alter the notional amount of any such
Secured Hedge Agreement or otherwise affect EnergySolutions’ obligation to
continue making payments under any such Secured Hedge Agreement, which will remain
in full force and effect notwithstanding any such prepayment, acceleration,
reduction, increase or change, subject to the terms of such Secured Hedge
Agreement.

 

Section 5.13                                          Covenants
Regarding Formation of Subsidiaries and the Making of Acquisitions.

 

At the time of any Acquisition by EnergySolutions,
Parent or any of their respective Subsidiaries, or the formation of any new Subsidiary
of any of EnergySolutions, Parent or any of their respective Subsidiaries,
EnergySolutions and Parent each will, and will cause their respective
Subsidiaries (except in the case of any non-operating Subsidiary with total
assets of less than $1,000,000) to, (i) in the case of the formation or
Acquisition of a new Subsidiary, provide to the Administrative Agent an executed
Subsidiary Security Agreement for such new Subsidiary (other than any Non-U.S.
Subsidiary or a Special Purpose Subsidiary, for which no such Subsidiary
Security Agreement is required), in substantially the form of Exhibit J-2
attached hereto, together with appropriate UCC-1 financing statements, as well
as an executed Subsidiary Guaranty for such new Subsidiary (other than any
Non-U.S. Subsidiary or Special Purpose Subsidiary, for which no such Subsidiary
Guaranty is required), in substantially the form of Exhibit H
attached hereto, which shall constitute both Security Documents and Loan
Documents for purposes of this Agreement, as well as a loan certificate for
such new Subsidiary, substantially in the form of Exhibit M, Exhibit N
or Exhibit O attached hereto, as appropriate, together with appropriate
attachments; provided that the requirement that any new Subsidiary of
any of EnergySolutions or Parent or any of their respective Subsidiaries
execute a Subsidiary Guaranty and a Subsidiary Security Agreement shall not
apply to a new non-wholly owned Subsidiary if, but only for so long as, (x) such
Subsidiary has total assets of less than $5,000,000 individually and (y) the
total assets of such Subsidiary, together with the total assets of all domestic
Subsidiaries that do not Guarantee the Secured Obligations pursuant to this
proviso are less than $10,000,000 in the aggregate, (ii) in the case of
any Acquisition by EnergySolutions, Parent or any of their respective
Subsidiaries or the formation of any new Subsidiary, pledge to the Collateral
Agent all of the capital stock, limited partnership interests, general partnership
interests, or other securities or other equity or ownership interests of such
Subsidiary or Person which is acquired or formed, beneficially owned by
EnergySolutions, Parent or any of their respective Subsidiaries, as the case
may be, as additional Collateral for the Secured Obligations to be held by the
Collateral Agent in accordance with the terms of EnergySolutions’ Pledge
Agreement, Parent Pledge Agreement, Subsidiary Pledge Agreement or a new
Subsidiary Pledge Agreement (it being understood that (i) no Non-U.S.
Subsidiary or Special Purpose Subsidiary shall be required to execute any such
Subsidiary Pledge Agreement and (ii) no Loan Party shall be required to
pledge any equity or ownership interest in a newly acquired Subsidiary if (A) with
respect to Acquisitions only, such pledge is prohibited by the terms of such
Subsidiary’s organizational documents to the extent such prohibition exists at
the time such Subsidiary is acquired (and not created in 

 

86

 

anticipation or contemplation hereof) or (B) such
Subsidiary is a Special Purpose Subsidiary) in substantially the form of Exhibit A
attached hereto, and execute and deliver to the Collateral Agent all such
documentation for such pledge as, in the reasonable opinion of the Collateral
Agent, is appropriate; provided that in the case of any Acquisition by
EnergySolutions or Parent or any of their respective Subsidiaries or the formation
of any new Subsidiary that is a “first tier” Non-U.S. Subsidiary, not more than
65% of the capital stock, limited partnership interests, general partnership
interests, or other securities or other equity or ownership interests, in each
case, which are entitled to vote, of any “first-tier” Non-U.S. Subsidiary or
Person which is acquired or formed, beneficially owned by EnergySolutions or
Parent or any of their respective Subsidiaries, as the case may be, shall be pledged
to the Collateral Agent as additional Collateral for the Secured Obligations to
be held by the Collateral Agent in accordance with the terms of EnergySolutions’
Pledge Agreement, Parent Pledge Agreement, Subsidiary Pledge Agreement or a new
Subsidiary Pledge Agreement; and (iii) provide all other documentation,
including one or more opinions of counsel reasonably satisfactory to the
Collateral Agent, which in the reasonable opinion of the Collateral Agent is
appropriate with respect to such Acquisition, Real Property Acquisition or the
formation of such Subsidiary and take all actions necessary or advisable in the
reasonable opinion of the Administrative Agent or the Collateral Agent to cause
the Lien created by the applicable Security Document to be duly perfected to
the extent required by such agreement in accordance with all Applicable Law,
including the filing of financing statements in such jurisdictions as may be
reasonably requested by the Administrative Agent or Collateral Agent.  Investments made by EnergySolutions, Parent
or any of their respective Subsidiaries after the Agreement Date shall also be
treated as additional Collateral and shall be subject to the provisions of the
appropriate Security Documents.  Any
document, agreement or instrument executed or issued pursuant to this Section 5.13
shall be a “Loan Document” for purposes of this Agreement.  Notwithstanding anything to the contrary set
forth in this Section 5.13, Parent shall execute a Guaranty of the
Secured Obligations in the form of Exhibit H, a Security Agreement
in the form of Exhibit J-1 and a Pledge Agreement in the form of Exhibit A.

 

Section 5.14                                          Maintenance of
Rating.

 

The Loan Parties shall at all times during the term
hereof use commercially reasonable efforts to maintain ratings in respect of
the Loans from S&P and Moody’s.

 

Section 5.15                                          Environmental
Compliance.

 

Except as, individually or in the aggregate, would
not reasonably be expected to result in a Material Adverse Change, EnergySolutions
and Duratek each shall:

 

(a)                                  comply, and
cause all other Persons to comply, with all Environmental Laws and
Environmental Permits now or hereafter applicable to the Property or the Permitted
Business and EnergySolutions and Duratek each shall have sole responsibility
for all costs and expenses (including legal, consultant and other professional
fees and expenses and costs of investigation) associated with such compliance;

 

(b)                                 obtain and
maintain in full force and effect all Environmental Permits required under
applicable Environmental Law for operation of the Permitted Business;

 

87

 

(c)                                  conduct and
complete, at its sole cost and expense, any investigation, study, sampling,
monitoring or testing (collectively, “Environmental Testing”) and undertake
any investigation, clean-up, removal, remedial, corrective, mitigation, response,
monitoring or any other activity (collectively, “Environmental Clean-up
Activities”) required by any applicable governmental authority or
Environmental Law with respect to Hazardous Materials at, in, on, under or from
the Property, and any such Environmental Testing or Environmental Clean-up
Activities shall be undertaken with appropriate diligence and in full
compliance with all applicable Environmental Laws;

 

(d)                                 provide as
promptly as practicable (and in any event within 20 days of receipt thereof) to
the Collateral Agent written notice of and copies of all written nonprivileged
and material communications relating to (A) any pending or threatened
Environmental Claim pertaining to the Property, or the use or operation
thereof, EnergySolutions, Duratek, Parent or the Permitted Business, or (B) any
fact, condition, event or other circumstance with respect to the Property or
any other facility or property presently or formerly owned or operated by
EnergySolutions, Duratek, Parent or any Person for which EnergySolutions,
Duratek or Parent is responsible, which is reasonably likely to result in a
material Environmental Claim pertaining to the Property, EnergySolutions,
Duratek or Parent; all such notices shall describe in reasonable detail the
nature of the Environmental Claim, investigation, fact, condition, event or
other circumstance and EnergySolutions’, Duratek’s or Parent’s response
thereto;

 

(e)                                  at any time, if
EnergySolutions or Duratek receives notice that an adverse change in the
environmental condition of the Property has occurred or an adverse environmental
condition with respect to the Property has been discovered, and at EnergySolutions’
or Duratek’s sole cost and expense, (i) diligently commence (or cause
another Person to commence) to cure such condition, to the extent required by
applicable Environmental Laws (including commencing any evaluation or
assessment of such conditions and the development of an appropriate plan with
respect thereto), within 30 days after receipt of such notice (or such shorter
period as may be required by applicable Environmental Laws or in the event of
an emergency) and (ii) thereafter diligently prosecute (or cause another
Person to diligently prosecute) such cure to completion; and

 

(f)                                    EnergySolutions
and Parent shall provide to the Administrative Agent such detailed reports
relating to any material Environmental Claim as may reasonably be requested by
the Administrative Agent or the Lenders.

 

Section 5.16                                          Required
Consents and Transfer of Licenses in Event of Default.

 

If an Event of Default specified in Section 8.1
shall have occurred and be continuing and the Administrative Agent exercises a
remedy under Section 8.2, EnergySolutions, Duratek and Parent
shall, at the request of the Administrative Agent:  (a) use commercially reasonable efforts
to seek and obtain all required prior approvals and consents to the direct or
indirect transfer of control of the Property, the Permitted Business or the
applicable Licenses or Environmental Permits, including all approvals and
consents required by any Environmental Law, License or Environmental Permit, (b) cooperate
with the Administrative Agent, or any receiver or other Person appointed by the
Administrative Agent, to assist such Person in identifying the Licenses and 

 

88

 

Environmental Permits required to own,
maintain, operate or transfer the Property or the Permitted Business from and
after the Event of Default, and (c) use commercially reasonable best efforts
to either transfer to the Administrative Agent or a Person designated by the Administrative
Agent the Licenses and Environmental Permits of EnergySolutions, where
permissible, or obtain new Licenses and Environmental Permits for the
Administrative Agent or Person designated by the Administrative Agent.  Such efforts, cooperation and assistance
shall include, but are not limited to, EnergySolutions’, Duratek’s, Parent’s or
their respective agents’ attendance at public hearings and, to the extent
necessary, the use of the knowledge, expertise and information of EnergySolutions,
Duratek, Parent and their respective agents, experts and employees.

 

Section 5.17                                          Subordination
of Intercompany Loans.

 

Each Loan Party covenants and agrees that any
existing and future debt obligation of Parent, EnergySolutions or any
Subsidiary to any Non-U.S. Subsidiary shall be subordinated to the Loans.

 

ARTICLE
6.

 

Information
Covenants

 

So long as any of the Obligations is outstanding and
unpaid, any Letter of Credit (other than a Collateralized Letter of Credit)
shall be outstanding or EnergySolutions has a right to borrow hereunder
(whether or not the conditions to borrowing have been or can be fulfilled), and
unless the Majority Lenders, or such greater number of Lenders as may be
expressly provided herein, shall otherwise consent in writing, EnergySolutions
will furnish or cause to be furnished to each Lender and the Administrative
Agent, at their respective offices:

 

Section 6.1                                                Quarterly and
Interim Financial Statements and Information.

 

Within forty-five (45) days after the last day of
each of the first three quarters of each fiscal year of Parent, unaudited
balance sheets of Parent on a consolidated basis with all of its Subsidiaries,
as at the end of such quarter and as of the end of the preceding fiscal year,
and the related statements of operations and the related statements of cash
flows of Parent on a consolidated basis with all of its Subsidiaries, for such
quarter and for the elapsed portion of the year ended with the last day of such
quarter, which shall set forth in comparative form such figures as at the end
of and for such quarter and the appropriate prior period (but only for such
quarter and other periods for which such comparative figures are available) and
shall be certified by the chief financial officer of Parent to be, in his or
her opinion, complete and correct in all material respects and to present
fairly, in accordance with GAAP (except as to the exclusion of certain Subsidiaries
which should be consolidated with EnergySolutions under GAAP), the financial
position of Parent on a consolidated basis with all of its Subsidiaries as at
the end of such period and the results of operations for such period, and for
the elapsed portion of the year ended with the last day of such period, subject
only to normal year-end adjustments.

 

Section 6.2                                                Annual
Financial Statements and Information.

 

Within one hundred twenty (120) days after the end
of each fiscal year of Parent, the audited consolidated balance sheets of
Parent on a consolidated basis with all of its Subsidiaries, as 

 

89

 

of the end of such fiscal year, and the
related audited consolidated statements of operations for such fiscal year and,
to the extent available, and not previously provided to the Administrative
Agent, for the previous two (2) fiscal years, the related audited
consolidated statements of changes in members’ equity for such fiscal year and,
to the extent available and not previously provided hereunder, for the previous
two (2) fiscal years, and related audited consolidated statements of cash
flows for such fiscal year and, to the extent available, for the previous two (2) fiscal
years, which shall be accompanied by an opinion (without a “going concern” or
like qualification or exception and without any qualification or exception as
to the scope of such audit) of Ernst & Young LLP or other independent
certified public accountants of recognized national standing or otherwise
reasonably acceptable to the Administrative Agent, together with a statement of
such accountants that in connection with their audit, nothing came to their
attention that caused them to believe that Parent was not in compliance with
the terms, covenants, provisions or conditions of Section 7.7
hereof.

 

Section 6.3                                                Performance
Certificates.

 

At the time the annual and quarterly financial
statements are furnished pursuant to Sections 6.1 and 6.2 hereof,
the Performance Certificate:

 

(a)                                  setting forth
as at the end of such quarterly period or fiscal year, as the case may be,
whether or not EnergySolutions or Parent was in compliance with the requirements
of Section 7.7 hereof; and

 

(b)                                 stating that,
to his or her knowledge, no Default or Event of Default has occurred as at the
end of such quarterly period or year, as the case may be, or, if a Default or
an Event of Default has occurred, disclosing each such Default or Event of
Default and its nature, when it occurred, whether it is continuing and the
steps being taken by EnergySolutions with respect to such Default or Event of
Default.

 

Section 6.4                                                Copies of Other
Reports.

 

(a)                                  Promptly upon
receipt thereof, copies of any final management report submitted to EnergySolutions
or Parent by EnergySolutions’ or Parent’s independent public accountants
including, without limitation, the report prepared in connection with the
annual audit referred to in Section 6.2.

 

(b)                                 Promptly upon
receipt thereof, copies of any material adverse notice or report regarding any
License, the loss of which could reasonably be expected to result in a Material
Adverse Change, held by EnergySolutions or Parent or any of their respective
Subsidiaries.

 

(c)                                  In connection
with any proposed Acquisition by EnergySolutions or any Subsidiary described in
Section 7.6(d)(ii), or any proposed Real Property Acquisition, and
promptly upon each request, such data, certificates, reports, statements,
opinions of counsel prepared for the Administrative Agent and the Lenders, or
any of them, documents or further information regarding the business, assets,
liabilities, financial position, projections, results of operations or business
prospects of EnergySolutions or any Subsidiary as the Administrative Agent or
any Lender may reasonably request, including, without limitation, a Phase I
environmental report in connection with any proposed Real Property Acquisition.

 

90

 

(d)                                 Annually, a
certificate of insurance indicating that the requirements of Section 5.5
hereof remain satisfied for such fiscal year.

 

(e)                                  Annually, and
in no event later than January 31 of any year, a copy of Parent’s annual
financial forecasts for itself and its Subsidiaries for such fiscal year.

 

(f)                                    Within
forty-five (45) days after the last day of each fiscal quarter of Parent beginning
on the last day of the fiscal quarter in which the Third Amended and Restated
Credit Agreement Effective Date occurs and ending on the Revolving Maturity
Date, financial and operations status reports relating to the Zion Acquisition
and EnergySolutions’ decommissioning obligations related thereto, in a form as
agreed to by the Administrative Agent and EnergySolutions.

 

(g)                                 Annually until
the Term Loan Maturity Date, and in no event later than January 31 of any
year, fund reports created for EnergySolutions by any trustee in connection
with the Zion Acquisition or pursuant to the Zion Agreements; provided
that such reports include (i) fund performance, (ii) beginning and
end of year allocation mix, (iii) beginning and end of year net asset
value and (iv) a summary of the investment policy.

 

Section 6.5                                                Notice of
Litigation and Other Matters.

 

Notice specifying the nature and status of any of
the following events, promptly, but in any event not later than fifteen (15)
days after any officer of EnergySolutions becomes aware of the occurrence of
any of the following events:

 

(a)                                  the
commencement of all material proceedings and investigations by or before any
governmental body and all actions and proceedings in any court or before any
arbitrator against, or to the extent known to EnergySolutions or Parent, in any
other way relating materially adversely to, EnergySolutions, Parent or any of
their Subsidiaries, or any of their respective properties, assets or businesses
or any License;

 

(b)                                 any adverse
change with respect to the business, assets, liabilities, financial position,
results of operations or business prospects of EnergySolutions or any Subsidiary,
which has had or could reasonably be expected to have a Material Adverse
Change;

 

(c)                                  any Default or
the occurrence or non-occurrence of any event (A) that constitutes, or
that with the passage of time or giving of notice or both would constitute, a
material default by EnergySolutions, Parent or any of their respective Subsidiaries
under any material agreement other than this Agreement to which
EnergySolutions, Parent or any of their respective Subsidiaries is a party or
by which any of their respective properties may be bound, or (B) that
could reasonably be expected to have a Material Adverse Change, giving in each
case the details thereof and specifying the action proposed to be taken with respect
thereto;

 

(d)                                 (A) the
occurrence of a “prohibited transaction” (as such term is defined in Section 406
of ERISA or Section 4975 of the Code) with respect to any Plan that would
result in the imposition on EnergySolutions or any of the Subsidiaries of a tax
or penalty, 

 

91

 

(B) any Reportable
Event (for which the 30-day notice requirement has not been waived) with
respect to any Plan, (C) the institution or, to the knowledge of
EnergySolutions or any Subsidiary, threatened institution by the PBGC of
proceedings under ERISA to terminate or to partially terminate any Plan or
ERISA Affiliate Plan or appoint a trustee to administer any such Plan, (D) the
commencement of or, to the knowledge of EnergySolutions or any Subsidiary,
threatened commencement of any litigation regarding any such Plan, in each
case, that could, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Change;

 

(e)                                  the occurrence
of any event subsequent to the Third Amended and Restated Credit Agreement
Effective Date which, if such event had occurred prior to the Third Amended and
Restated Credit Agreement Effective Date, would have constituted an exception
to the representation and warranty in Section 4.1(m) of this
Agreement.

 

ARTICLE
7.

 

Negative
Covenants

 

So long as any of the Obligations is outstanding and
unpaid, any Letter of Credit (other than a Collateralized Letter of Credit)
shall be outstanding or EnergySolutions has a right to borrow from the Lenders
hereunder (whether or not the conditions to borrowing have been or can be
fulfilled), and unless the Majority Lenders or such greater number of Lenders
as may be expressly provided herein, shall otherwise consent in writing:

 

Section 7.1                                                Indebtedness of
Parent, EnergySolutions and Its Subsidiaries.

 

EnergySolutions and Parent each shall not, and shall
cause each of their respective Subsidiaries not to, create, assume, incur or
otherwise become or remain obligated in respect of, or permit to be
outstanding, any Indebtedness, or enter into any Derivatives Contract, except:

 

(a)                                  the Obligations
(other than Loans made pursuant to Section 2.15);

 

(b)                                 current
accounts payable, accrued expenses, customer advance payment liabilities in
connection with FASB 143, liabilities that are not Indebtedness for Money
Borrowed and liabilities that are related to litigation, in each case, incurred
in, or resulting from the conduct of, the ordinary course of the Permitted
Business;

 

(c)                                  Indebtedness
secured by Permitted Liens described in clauses (g), (h) and (j) of
the definition of “Permitted Liens”;

 

(d)                                 Obligations
under the Secured Hedge Agreements;

 

(e)                                  Indebtedness
expressly permitted under Section 7.5 hereof;

 

(f)                                    Guaranties and
Indebtedness existing as of the Second Amendment Effective
Date and listed on Schedule 14 (as reduced by any permanent
repayments of principal thereof), without giving effect to any subsequent
extension, renewal or refinancing thereof except to the extent set forth on Schedule
14; provided that the aggregate principal 

 

92

 

amount of the Indebtedness
to be extended, renewed or refinanced does not increase from that amount
outstanding at the time of any such extension, renewal or refinancing;

 

(g)                                 Indebtedness of
EnergySolutions and the Subsidiaries (other than Indebtedness of the type
acquired or assumed in accordance with Section 7.1(l)) evidenced by
Capitalized Lease Obligations (to the extent permitted hereby) and purchase
money Indebtedness; provided that in no event shall the sum of the
aggregate principal amount of all Capitalized Lease Obligations and purchase
money Indebtedness permitted by this Section 7.1(g) exceed
$40,000,000 at any time outstanding;

 

(h)                                 so long as no
Default or Event of Default then exists or would result therefrom, Additional
Permitted Debt to the extent that (i) such Additional Permitted Debt is
issued to the seller as all or part of the consideration for any Permitted Acquisition
or Real Property Acquisition or (ii) the Net Proceeds thereof are used
within 90 days after the date of issuance thereof to finance all or a part of
any Permitted Acquisition or Real Property Acquisition (including to refinance
any Indebtedness of either the Acquisition Entity or the business acquired) and
to pay the related fees and expenses; provided that (x) the sum of (1) the
aggregate principal amount of all Additional Permitted Debt incurred pursuant
to this Section 7.1(h) plus (2) the aggregate principal
amount of all Indebtedness incurred pursuant to Section 7.1(i) shall
not exceed $10,000,000 at any time outstanding, and (y) if all or any
portion of the Net Proceeds of such Additional Permitted Debt are not so used
within such 90-day period (or such earlier date, if any, as EnergySolutions
determines not to (or that it cannot) consummate a Permitted Acquisition within
such 90-day period), such remaining portion shall be repaid to the extent not
prohibited by the terms thereof, and to the extent so prohibited, shall be
applied on the last day of such period (or such earlier date of determination,
if any) as a mandatory prepayment of principal of the Term Loans to be applied
in accordance with Section 2.6(b) hereof;

 

(i)                                     Indebtedness of
a Subsidiary acquired pursuant to a Permitted Acquisition (or Indebtedness
assumed at the time of a Permitted Acquisition of an asset securing such
Indebtedness) or Real Property Acquisition; provided that (x) such
Indebtedness was not incurred in connection with, or in anticipation or
contemplation of, such Permitted Acquisition or Real Property Acquisition, (y) such
Indebtedness does not constitute Indebtedness for Money Borrowed, it being
understood and agreed that Capitalized Lease Obligations and purchase money
Indebtedness shall not constitute Indebtedness for Money Borrowed for purposes
of this clause (y), and (z) the aggregate principal amount of all
Indebtedness permitted by this Section 7.1(i) shall not exceed
at any time outstanding the aggregate principal amount which, when added to the
aggregate principal amount of all Indebtedness then outstanding pursuant to Section 7.1(h),
equals $10,000,000;

 

(j)                                     so long as no
Default or Event of Default then exists or would result therefrom, Indebtedness
incurred by EnergySolutions and the Subsidiaries in the ordinary course of the
Permitted Business, including without limitation the amount by which the
aggregate amount of performance or fidelity bonds permitted under Section 7.1(l) below
exceeds the aggregate amount of cash and Letters of Credit securing the same,
not to exceed an aggregate principal amount of $5,000,000 at any one time
outstanding; provided  

 

93

 

that no more than $2,500,000
of the Indebtedness incurred pursuant to this clause (j) may be secured by
a Lien on the property of EnergySolutions and the Subsidiaries;

 

(k)                                  intercompany
Indebtedness to the extent permitted by Section 7.6(c)(v) or 7.6(c)(x);

 

(l)                                     EnergySolutions’
reimbursement and other obligations in connection with performance bonds and/or
fidelity bonds that are secured only by either cash proceeds of Revolving Loans
or by Letters of Credit issued hereunder, which bonds are required to be
furnished by EnergySolutions or any Subsidiary in connection with contracts
entered into by EnergySolutions or such Subsidiary in the ordinary course of
its Permitted Business;

 

(m)                               Guaranties by
EnergySolutions or any Subsidiary Guarantor in respect of any Indebtedness of
EnergySolutions or any Subsidiary Guarantor, in each case, otherwise permitted
under this Section 7.1;

 

(n)                                 Indebtedness
representing the replacement, renewal, extension, refinancing or refunding of
the foregoing (other than Section 7.1(a) and Section 7.1(f));
provided, however, that such Indebtedness does not exceed the
principal amount of outstanding or committed Indebtedness so replaced, renewed,
extended, refinanced or refunded plus financing fees and other expenses
associated therewith; provided  further, however, that (A) such
replacing, renewing, extending, refinancing or refunding Indebtedness shall
have no mandatory repayments or redemptions prior to the Indebtedness being
replaced, renewed, extended, refinanced or refunded, (B) in the case of
any replacing, renewing, extending, refinancing or refunding of Indebtedness
pari passu to the Obligations hereunder, the replacing, renewing, extending,
refinancing or refunding Indebtedness is made pari passu or subordinated to the
Obligations hereunder and, in the case of any replacing, renewing, extending,
refinancing or refunding of Indebtedness subordinated to the Obligations
hereunder, the replacing, extending, refinancing or refunding Indebtedness is
made subordinate to the Obligations hereunder to substantially the same or a
greater extent as the Indebtedness replaced, renewed, extended, refinanced or
refunded and (C) if the Indebtedness being replaced, renewed, extended,
refinanced or refunded was incurred pursuant to Section 7.1(w) or
incurred pursuant to this clause (n) but was previously incurred pursuant
to such Section 7.1(w), such replacing, renewing, extending,
refinancing or refunding Indebtedness shall be unsecured and only a Loan Party
may be an obligor with respect thereto;

 

(o)                                 Indebtedness of
up to $240,000,000 aggregate principal amount in respect of the Duratek Loans
under the Duratek Loan Agreement and, so long as no Default or Event of Default
has occurred and is continuing or would result therefrom, Permitted Refinancing
Indebtedness in respect thereof;

 

(p)                                 Indebtedness
from Loans made pursuant to Section 2.15 hereto (other than Loans
made pursuant to Section 2.15(a)(iv) hereto) which is used
solely to finance a Permitted Acquisition (and to pay fees and expenses related
thereto); provided that after giving effect to the incurrence of such
Indebtedness (and any other Indebtedness incurred since the last day of the
immediately preceding test period) on a pro forma basis as if it 

 

94

 

was incurred on the first
day of the immediately preceding fiscal quarter, Parent would be in compliance
with Section 7.7;

 

(q)                                 Indebtedness
incurred by Non-U.S. Subsidiaries in an aggregate amount not to exceed
$15,000,000 at any time outstanding;

 

(r)                                    Indebtedness of
up to $30,000,000 million aggregate principal amount incurred pursuant to a
United Kingdom working capital facility;

 

(s)                                  on or after the
Third Amended and Restated Credit Agreement Effective Date, (i) Indebtedness
outstanding pursuant to the Zion Credit Support Obligation and (ii) Indebtedness
incurred pursuant to Section 2.15(a)(iv) hereto; provided
that any such Indebtedness incurred pursuant to this Section 7.1(s) is
incurred solely to provide credit support for the Zion Acquisition or for
ZionSolutions;

 

(t)                                    Indebtedness of
any Special Purpose Subsidiary other than ZionSolutions not to exceed
$10,000,000 per such Special Purpose Subsidiary;

 

(u)                                 on or after the
Third Amended and Restated Credit Agreement Effective Date, unsecured
obligations by EnergySolutions or Parent pursuant to documents identified in clauses
(b), (h) and (l) in the definition of “Zion
Agreements” hereto;

 

(v)                                 unsecured
obligations of EnergySolutions or Parent pursuant to any SPS Project
Documentation, including any guarantee bond; provided that the aggregate
amount of such obligations shall not exceed $50,000,000 per Special Purpose Subsidiary;
provided further that the aggregate amount of all such obligations shall
not exceed $150,000,000;

 

(w)                               any other
Additional Permitted Debt of any Loan Party issued for cash, so long as the
Applicable Section 7.1(w) Prepayment Percentage of the Net Proceeds
thereof are used, notwithstanding anything else contained herein, (i) first,
to prepay amounts outstanding under the Term Facility and Duratek Loan
Agreement on a pro rata basis until the Term Facility and the Loans under the
Duratek Loan Agreement are repaid in full, (ii) second, to reduce the
Synthetic Deposit Account on a dollar for dollar basis by returning the
Synthetic Deposits and cash collateralizing the Synthetic Letters of Credit in
a manner reasonably satisfactory to the Synthetic Issuing Bank and the
Administrative Agent and (iii) third, to repay any outstanding Revolving
Loans; provided that after giving effect to the incurrence of such
Indebtedness and the use of proceeds therefrom, the covenants in Section 7.7
would have been satisfied as of the last day of the most recently ended fiscal
quarter at the end of which financial statements were required to have been
delivered pursuant to Section 6.1 or 6.2 (the “Latest
Financial Reporting Date”).

 

Section 7.2                                                Limitation on
Liens.

 

EnergySolutions and Parent each shall not, and shall
cause each of their respective Subsidiaries not to, create, assume, incur or
permit to exist or to be created, assumed, incurred or permitted to exist, directly
or indirectly, any Lien on any of its properties or assets, whether now owned
or hereafter acquired, except for Permitted Liens.

 

95

 

Section 7.3                                                Amendment and
Waiver.

 

EnergySolutions and Parent each shall not, and shall
cause each of their respective Subsidiaries not to, except in connection with a
transaction otherwise permitted hereunder, enter into any amendment of its
articles or certificate of incorporation or organization or, as applicable, operating
agreement or partnership agreement, except in each case to the extent that the
Administrative Agent determines, in its reasonable credit judgment, that such
amendment is not material and not adverse to the interests of the Lenders.

 

Section 7.4                                                Liquidation,
Merger, Disposition of Assets.

 

(a)                                  Disposition of
Assets.  EnergySolutions and Parent
each shall not, and shall cause each of their respective Subsidiaries not to,
at any time sell, lease, license, abandon, transfer, assign or otherwise dispose
of any of their assets (other than Excluded Asset Sales), unless (i) any
Net Proceeds therefrom are applied as provided in Section 2.6(b) hereof,
(ii) any such sale, lease, license or disposition resulting in Net
Proceeds in excess of $1,000,000 is made for fair market value as determined by
the managers of EnergySolutions, (iii) at least 75% of the consideration
received consists of cash or readily marketable cash equivalents or the
assumption of Indebtedness of EnergySolutions or any Subsidiary and no Default
then exists or would be caused thereby (unless such sale, lease, license,
abandonment or other disposal would cure any such Default) and (iv) as to
any such sale, lease, license or other disposition where the aggregate
consideration to be received is in excess of $20,000,000, the Majority Lenders
shall have given their express prior written consent, after receiving such
information and documents as the Administrative Agent or any Lender may
request.  At the time of any such
Permitted Asset Sale hereunder in which the aggregate consideration therefor
exceeds $10,000,000, EnergySolutions shall provide the Administrative Agent and
the Lenders with projections assuming the consummation of the Permitted Asset
Sale and demonstrating pro forma compliance with Section 7.7 hereof
for the remaining term of this Agreement.

 

(b)                                 Liquidation,
Merger or Consolidation. 
EnergySolutions and Parent each shall not, and shall cause each of their
respective Subsidiaries (other than a Special Purpose Subsidiary) not to, at
any time liquidate or dissolve itself (or suffer any liquidation or
dissolution) or otherwise wind up, or enter into any merger or consolidation; provided
that if no Default then exists or would be caused thereby, the following such
transactions are permitted:  (i) a
merger or consolidation among EnergySolutions and one or more of its
Subsidiaries that is a wholly-owned Subsidiary Guarantor; provided
EnergySolutions is the surviving Person; (ii) a merger or consolidation
among Duratek and one or more of its Subsidiaries that is a wholly-owned
Subsidiary Guarantor; provided Duratek is the surviving Person; (iii) a
merger or consolidation between or among two or more Subsidiaries; provided
that if any of the entities is a Subsidiary Guarantor, the surviving entity
shall be a Subsidiary Guarantor; (iv) an Acquisition permitted hereunder effected
by a merger or consolidation in which EnergySolutions or a Subsidiary is the
surviving Person; (v) a liquidation or dissolution of one or more
Subsidiaries into its or their parent entity (provided EnergySolutions
or one of the Subsidiaries is such parent entity); and (vi) any transaction
or series of related transactions whereby EnergySolutions becomes a corporation
organized under the laws of the State of Delaware or the State of Utah, so long
as, following such transaction or transactions, no Person other than Parent has
an economic or voting interest in EnergySolutions; provided that at
least ten (10) days prior to executing any transaction or transactions 

 

96

 

permitted by clause (vi) of this Section 7.4(b),
EnergySolutions shall provide written notice to the Collateral Agent and shall
execute any amendment to the Loan Documents reasonably requested by the Collateral
Agent to maintain a valid and perfected first priority security interest in the
Collateral in favor of the Collateral Agent, for itself and for the ratable
benefit of the Secured Parties, securing, in accordance with the terms of the
Security Documents, the outstanding Secured Obligations.  Notwithstanding anything to the contrary in
any Loan Document (other than this Agreement), any reorganization permitted
pursuant to clause (vi) of this Section 7.4(b) shall be
deemed not to be a breach of any representation or warranty in any Loan Document
(other than this Agreement), so long as EnergySolutions complies with the
notification and documentation requirements in such clause (vi).  Notwithstanding anything to the contrary
contained above, Parent must at all times directly or indirectly own 100% of
the Equity Interests of each of EnergySolutions and Duratek.

 

Section 7.5                                                Limitation on
Guarantees.

 

Except as permitted under Section 7.1,
EnergySolutions and Parent each shall not, and shall cause each of their
respective Subsidiaries not to, at any time Guaranty, assume or be obligated
with respect to, or permit to be outstanding any Guaranty of, any obligation of
any other Person other than (a) a Guaranty by endorsement of negotiable
instruments for collection in the ordinary course of business, or (b) obligations
under agreements of EnergySolutions or any of the Subsidiaries entered into in
connection with providing or the acquisition of services, supplies and
equipment in the ordinary course of the Permitted Business of EnergySolutions
or any of the Subsidiaries, (c) on or after the Third Amended and Restated
Credit Agreement Effective Date, any Guaranty contemplated by Sections 7.1(s) and
(u) hereto, any Guaranty contemplated by the Asset Sale Agreement
and any Guaranty undertaken pursuant to the Zion Credit Support Obligation, (d) unsecured
obligations of EnergySolutions or Parent pursuant to any SPS Project Documentation,
including any guarantee bond; provided that the aggregate amount of such
obligations shall not exceed $50,000,000 per Special Purpose Subsidiary; provided
further that the aggregate amount of all such obligations shall not exceed
$150,000,000 and (e) as may be contained in any Loan Document including,
without limitation, the Guaranty and the Subsidiary Guaranty and Guarantees by
Loan Parties of Indebtedness incurred pursuant to Section 7.1(w) and
refinancings (including successive refinancings) thereof pursuant to Section 7.1(n).

 

Section 7.6                                                Investments and
Acquisitions.

 

EnergySolutions and Parent shall not, and shall
cause each Subsidiary not to, make any Investment in any Person, or make any Acquisition,
or any acquisition of any interest in real property, except that
EnergySolutions may enter into the Secured Hedge Agreements, and that, so long
as no Default exists before and after giving effect thereto:

 

(a)                                  Cash
Equivalents. 
EnergySolutions and each Subsidiary may, directly or through a brokerage
account, purchase (i) marketable direct obligations of the United States
of America, its agencies and instrumentalities maturing within one year from
the date of acquisition thereof, (ii) marketable direct obligations issued
by any state of the United States or any political subdivision of any such
state or any public instrumentality thereof maturing within one year from the
date of acquisition thereof and, at the time of acquisition, having one of the
two highest ratings obtainable from either S&P or 

 

97

 

Moody’s, (iii) dollar
denominated time deposits, certificates of deposit and bankers’ acceptances of
any Lender or any commercial bank having, or which is the principal banking
subsidiary of a bank holding company having, a long-term unsecured debt rating
of at least “A” or the equivalent thereof from S&P or “A2” or the
equivalent thereof from Moody’s with maturities of not more than one year from
the date of acquisition by such Person, (iv) repurchase obligations with a
term of not more than seven days for underlying securities of the type
described in clauses (i) and (ii) above entered into with any bank
meeting the qualifications specified in clause (iii) above, (v) commercial
paper issued by any Person incorporated in the United States rated at least “A-1”
or the equivalent thereof by S&P or at least “P-1” or the equivalent
thereof by Moody’s and in each case maturing not more than one year after the
date of acquisition by such Person, and (vi) investments in money market
funds substantially all of whose assets are comprised of securities of the
types described in clauses (i) through (v) above (collectively, “Cash
Equivalents”).

 

(b)                                 Acquisitions.  Subject to compliance with Section 7.6(d),
EnergySolutions and the Subsidiaries may make Permitted Acquisitions and Real
Property Acquisitions.

 

(c)                                  Investments.  Subject to compliance with Section 7.6(d),
EnergySolutions and the Subsidiaries may make the following Investments
(collectively, “Permitted Investments”):

 

(i)                                     EnergySolutions
and the Subsidiaries may acquire and hold accounts receivable owing to any of
them, if created or acquired in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms of EnergySolutions or
such Subsidiary;

 

(ii)                                  EnergySolutions
and its consolidated Subsidiaries and each Consolidated Subsidiary of Parent
may acquire and own Investments (including debt obligations) received in
connection with the bankruptcy or reorganization of their suppliers and
customers or in good faith settlement of delinquent obligations of, and other
disputes with, their customers and suppliers arising in the ordinary course of
business;

 

(iii)                               EnergySolutions
and its consolidated Subsidiaries and each Consolidated Subsidiary of Parent
may make Investments consisting of loans and advances to officers and employees
for moving, relocation and travel expenses and other similar expenditures, in
each case in the ordinary course of business and in an aggregate amount not to
exceed $1,000,000 at any time outstanding (determined without regard to any
write-downs or write-offs of such loans and advances);

 

(iv)                              EnergySolutions
and its consolidated Subsidiaries and each Consolidated Subsidiary of Parent
may enter into Secured Hedge Agreements;

 

(v)                                 the Loan
Parties may make intercompany loans and advances between and among one another
(collectively, the “Intercompany Loans”); provided that (A) each
Intercompany Loan made shall be evidenced by an intercompany 

 

98

 

promissory note, which note
shall be pledged to the Collateral Agent pursuant to, and to the extent
required by, the Pledge Agreement, and (B) each obligor and obligee in
respect of each such Intercompany Loan shall have executed and delivered to the
Collateral Agent a counterpart of a Subordination Agreement;

 

(vi)                              Parent,
EnergySolutions and their respective Subsidiaries may make Investments in their
respective Subsidiaries that are Subsidiary Guarantors;

 

(vii)                           a Subsidiary
that is not a Subsidiary Guarantor may make Investments in another Subsidiary
that is not a Subsidiary Guarantor;

 

(viii)                        EnergySolutions
and the Subsidiaries may acquire and hold promissory notes and other non-cash
consideration issued by the purchaser of assets in connection with a sale of
such assets to the extent permitted by the definition of “Permitted Asset Sale”;

 

(ix)                                Investments
outstanding as of the Second Amendment Effective Date and set forth
on Schedule 17;

 

(x)                                   other
Investments in any Subsidiary that is not a Subsidiary Guarantor and joint
ventures not to exceed $60,000,000 at any time outstanding; provided
that any Investment in the form of a loan or advance shall be evidenced by a
note and, in the case of a loan or advance by a Loan Party, pledged by such
Loan Party as Collateral pursuant to the Security Documents;

 

(xi)                                Investments in
ZionSolutions (A) contemplated by Sections 7.1(s) and (u) hereto
and (B) pursuant to the Zion Agreements in an aggregate amount not greater
than the aggregate amount of Investments to be made pursuant to the Zion
Agreements in the forms most recently delivered to the Administrative Agent
prior to the date hereof (without, for the avoidance of doubt, giving effect to
any amendments or modifications thereof pursuant to clause (o) of the
definition of Zion Agreements); and

 

(xii)                             Investments in
Special Purpose Subsidiaries other than ZionSolutions not to exceed $10,000,000
per Special Purpose Subsidiary.

 

(d)                                 Conditions to
Permitted Acquisitions, Real Property Acquisitions and Permitted Investments.  No Permitted Acquisition, Real Property
Acquisition or Permitted Investment permitted under Section 7.6(b) or
(c) hereof may be consummated unless:

 

(i)                                     (A) EnergySolutions
and Parent shall be in pro forma compliance with the financial covenants set
forth in Section 7.7 before and after giving effect to such
Permitted Acquisition, Real Property Acquisition or Permitted Investment, as
the case may be, (B) no Default shall have occurred and be continuing (or
would occur after giving effect thereto) and (C) such Permitted
Acquisition, Real Property Acquisition or Permitted Investment shall not be
reasonably expected to have a Material Adverse Change;

 

99

 

(ii)                                  With respect to
any Permitted Acquisition, Real Property Acquisition or Permitted Investment of
more than $20,000,000, EnergySolutions shall provide the Administrative Agent
and the Lenders with notice thereof, not less than ten (10) days prior to
the proposed closing thereof, and with copies of all material information
pertaining to such Permitted Acquisition, Real Property Acquisition or
Permitted Investment, as the case may be, and a certificate signed by the chief
financial officer of EnergySolutions, certifying pro forma compliance with the
covenants listed in clause (i) of this Section 7.6(d),
together with any calculations necessary to demonstrate such compliance; and

 

(iii)                               Sections 5.10, 5.13
and 6.4(c) of this Agreement have been complied with.

 

Section 7.7                                                Financial
Covenants.

 

Parent and its Subsidiaries
shall not:

 

(a)                                  Leverage Ratio.  Permit the Leverage Ratio to exceed the
ratios for the respective periods ended on the dates set forth below:

 

	
  Four
  Fiscal Quarters Ended

  	
   

  	
  Maximum
  Ratio

  	
   

  
	
  March 31, 2007 –
  September 30, 2007

  	
   

  	
  5.25

  	
   

  
	
  December 31, 2007

  	
   

  	
  5.00

  	
   

  
	
  March 31, 2008 –
  September 30, 2008

  	
   

  	
  4.75

  	
   

  
	
  December 31, 2008

  	
   

  	
  4.50

  	
   

  
	
  March 31, 2009 –
  June 30, 2009

  	
   

  	
  4.25

  	
   

  
	
  September 30, 2009 –
  December 31, 2010

  	
   

  	
  4.00

  	
   

  
	
  March 31, 2011 –
  thereafter

  	
   

  	
  3.50

  	
   

  

 

(b)                                 First Lien
Leverage Ratio.  Permit the
First Lien Leverage Ratio to exceed the ratios for the respective periods ended
on the dates set forth below:

 

	
  Four
  Fiscal Quarters Ended

  	
   

  	
  Maximum
  Ratio

  	
   

  
	
  March 31, 2007 –
  September 30, 2007

  	
   

  	
  4.75

  	
   

  
	
  December 31, 2007

  	
   

  	
  4.50

  	
   

  
	
  March 31, 2008 –
  September 30, 2008

  	
   

  	
  4.25

  	
   

  
	
  December 31, 2008

  	
   

  	
  4.00

  	
   

  
	
  March 31, 2009 –
  December 31, 2009

  	
   

  	
  3.75

  	
   

  
	
  March 31, 2010 –
  December 31, 2010

  	
   

  	
  3.50

  	
   

  
	
  March 31, 2011

  	
   

  	
  3.25

  	
   

  
	
  June 30, 2011 –
  thereafter

  	
   

  	
  3.00

  	
   

  

 

(c)                                  Interest
Coverage Ratio.  Permit the
Interest Coverage Ratio to be less than the ratios for the respective periods
ended on the dates set forth below:

 

 

	
  Four
  Fiscal Quarters Ended

  	
   

  	
  Minimum
  Ratio

  	
   

  
	
  March 31, 2007 –
  December 31, 2007

  	
   

  	
  2.00

  	
   

  

 

100

 

	
  Four
  Fiscal Quarters Ended

  	
   

  	
  Minimum
  Ratio

  	
   

  
	
  March 31, 2008

  	
   

  	
  2.25

  	
   

  
	
  June 30, 2008 –
  March 31, 2009

  	
   

  	
  2.50

  	
   

  
	
  June 30, 2009 –
  December 31, 2009

  	
   

  	
  2.75

  	
   

  
	
  March 31, 2010 –
  thereafter

  	
   

  	
  3.00

  	
   

  

 

Notwithstanding the foregoing, at all times
after the Duratek Payoff, for the purpose of calculating the Leverage Ratio
pursuant to Section 7.7(a), the First Lien Leverage Ratio pursuant
to Section 7.7(b) and the Interest Coverage Ratio pursuant to
this Section 7.7(c), Operating Cash Flow shall exclude (x) the
net income of Duratek and its Subsidiaries on a consolidated basis determined
in accordance with GAAP and (y) any items that would be added to the net
income of Duratek and its Subsidiaries in the calculation of the operating cash
flow of Duratek and its Subsidiaries (calculated in the same manner, and with
the same adjustments, as “Operating Cash Flow” of Parent and its Subsidiaries);
provided that “Duratek and its Subsidiaries” shall not include
EnergySolutions and its Subsidiaries if EnergySolutions is a Subsidiary of Duratek.

 

(d)                                 Maximum Capital
Expenditures.  Permit the
aggregate Capital Expenditures of EnergySolutions and the Subsidiaries on a
consolidated basis to be greater than the amounts for the respective fiscal
years set forth below:

 

	
  Fiscal
  Year

  	
   

  	
  Maximum
  Capital Expenditures

  	
   

  
	
  2006

  	
   

  	
  $40.0
  million

  	
   

  
	
  2007
  – 2009

  	
   

  	
  $30.0 million

  	
   

  
	
  2010
  – thereafter

  	
   

  	
  $40.0 million

  	
   

  

 

However, to the extent the aggregate Capital
Expenditures of EnergySolutions and the Subsidiaries on a consolidated basis in
any one fiscal year (ending on or after December 31, 2005) are less than
the maximum amount permitted pursuant to this Section 7.7(d), then
EnergySolutions and its Subsidiaries on a consolidated basis may expend an
additional amount on Capital Expenditures in a subsequent fiscal year equal to
the dollar amount of the lesser of the shortfall from such fiscal year and 50%
of the amount permitted for Capital Expenditures in the prior fiscal year;
however, in no circumstance may any shortfall be carried forward from more than
one fiscal year at any time.

 

Section 7.8                                                Affiliate
Transactions and Restricted Payments.

 

(a)                                  Except as
specifically provided herein (including, without limitation, Section 7.7
and Section 7.8(b) hereof), EnergySolutions and Parent each
shall not, and shall cause each of their respective Subsidiaries not to, at any
time enter into any transaction or series of related transactions with any
Affiliate of EnergySolutions or any of the Subsidiaries, other than (i)(A) in
the ordinary course of business or (B) in an amount less than $250,000 per
year in the aggregate for all such transactions and (ii) in each case, on
terms that are no less favorable to EnergySolutions or such Subsidiary, as the
case may be, than those that would reasonably be obtained by EnergySolutions or
such Subsidiary at that time in a comparable arm’s-length transaction with a
Person other than an Affiliate, except (a) as described on Schedule 10
attached hereto (as such schedule was delivered on the Second
Amendment Effective Date), (b) reasonable and customary 

 

101

 

fees paid to non-officer members of the board
of directors (or similar governing body) of EnergySolutions and the
Subsidiaries and (c) after the consummation of the initial public offering
of the shares of common stock of Parent, to the holders of Equity Interests of
EnergySolutions and Parent, (i) annualized prorated dividends of up to
$10,000,000 for the fiscal year ending December 31, 2007, (ii) dividends
of up to $10,000,000 for the fiscal year ending December 31, 2008, and (iii) dividends
up to the greater of (A) $10,000,000 and (B) 15% of Adjusted Net Income,
for each consecutive four fiscal quarter period thereafter; provided
that for the 2009 fiscal year and each fiscal year thereafter, the amount of
dividends paid in any consecutive four fiscal quarter period shall not exceed
the lesser of (x) the amount referred to in clause (iii) above or (y) 15%
of the Available Adjusted Net Income as of the end of such period.

 

(b)                                 The Loan
Parties will not, and will not permit any Subsidiary to, directly or indirectly,
declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so,
other than Permitted Restricted Payments.

 

Section 7.9                                                Real Estate.

 

None of Parent, EnergySolutions or any of their
respective Subsidiaries shall purchase any single parcel of real estate other
than any purchase that constitutes a Real Property Acquisition.

 

Section 7.10                                          ERISA Liabilities.

 

EnergySolutions and Parent shall not, and shall
cause each of their Subsidiaries not to, permit the assets of any of their
respective Plans to be less than the accumulated benefit obligations of all
such Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) by an amount that could reasonably
be expected to have a Material Adverse Change if the Plans were terminated.

 

Section 7.11                                          Limitation on
Preferred Stock.

 

EnergySolutions and Parent each shall not permit any
of their respective Subsidiaries (other than a Special Purpose Subsidiary) to
create or issue any preferred capital stock, limited partnership interest,
general partnership interest, or other securities or other equity or ownership
interest except for (a) preferred capital stock, limited partnership
interests, general partnership interests, and other securities and other equity
and ownership interests outstanding on the Third Amended and Restated Credit
Agreement Effective Date or (b) preferred capital stock, limited
partnership interests, general partnership interests, or other securities or
other equity or ownership interests issued to and held by EnergySolutions,
Parent or any other Subsidiary.

 

Section 7.12                                          Negative Pledge.

 

(a)                                  EnergySolutions
and Parent each shall not, and shall cause each of their respective
Subsidiaries (other than a Special Purpose Subsidiary) not to, enter into after
the Third Amended and Restated Credit Agreement Effective Date or permit to
exist after the Third Amended and Restated Credit Agreement Effective Date any
new agreement (other than this Agreement, any Duratek Loan Document or any
other Loan Document) that limits or conditions 

 

102

 

the ability of EnergySolutions or Parent or
any of their respective Subsidiaries to create, incur, assume or suffer to
exist Liens on property of such Person except that this Section 7.12(a) shall
not prohibit (a) any negative pledge incurred or provided in connection
with any Lien referred to in clause (e) of the definition of “Permitted
Lien” in Article 1 solely to the extent any such negative pledge
relates to the property secured by or the subject of such Lien, (b) any
restrictions on any Subsidiary of EnergySolutions or Parent under any agreement
in effect at the time such Subsidiary becomes a Subsidiary of EnergySolutions
or Parent, so long as such agreement was not entered into in contemplation of
such Person becoming a Subsidiary or a Subsidiary of Parent, (c) any
agreements governing any purchase money Liens or Capitalized Lease Obligations
otherwise permitted hereby (in which case, any prohibition or limitation shall
only be effective against the assets financed thereby), (d) Additional
Permitted Debt, (e) customary restrictions on assignment of contracts
(other than assignments in favor of the Collateral Agent for the benefit of the
Secured Parties) contained within such agreements, (f) customary
restrictions with respect to an asset imposed pursuant to an agreement for the
disposition of such asset (so long as such disposition is permitted by Section 7.6
hereof and which agreement is not proscribed by a provision hereof other than
those contained in this Section 7.12(a)), (g) customary
restrictions in joint venture agreements of joint ventures that are not
Subsidiaries and (h) this Agreement or the Duratek Loan Agreement.

 

(b)                                 To the extent
any Special Purpose Subsidiary is restricted or prohibited by the United States
Nuclear Regulatory Commission or any other federal or state governmental entity,
or by a counterparty to such Special Purpose Subsidiary’s SPS Project
Documentation, from granting Liens on such Special Purpose Subsidiary’s assets
for the benefit of the Lenders, then such Special Purpose Subsidiary shall not,
and shall cause each of its respective Subsidiaries not to, create, incur,
assume or suffer to exist Liens, other than Permitted Liens, on the property of
such Special Purpose Subsidiary for the benefit of any Person that is not a
counterparty to such Special Purpose Subsidiary’s SPS Project Documentation.

 

Section 7.13                                          Payment
Restrictions Affecting Subsidiaries.

 

EnergySolutions or Parent shall not, directly or
indirectly, enter into after the Third Amended and Restated Credit Agreement
Effective Date or suffer to exist after the Third Amended and Restated Credit
Agreement Effective Date, or permit any Subsidiary (other than a Special
Purpose Subsidiary) to enter into after the Third Amended and Restated Credit
Agreement Effective Date or suffer to exist after the Third Amended and
Restated Credit Agreement Effective Date, any new agreement or arrangement
limiting the ability of any of such Subsidiaries to declare or pay dividends or
other distributions in respect of its equity interests or repay or prepay any Indebtedness
owed to, make loans or advances to, or otherwise transfer assets to or invest
in, EnergySolutions or any Subsidiary (whether through a covenant restricting
dividends, loans, asset transfers or investments, a financial covenant or
otherwise), except (a) the Loan Documents, (b) any agreement in effect
at the time a Subsidiary becomes a Subsidiary, so long as such agreement was
not entered into in contemplation of such Person becoming a Subsidiary, (c) restrictions
on the transfer of any asset subject to a Lien permitted by Section 7.2,
(d) Additional Permitted Debt, (e) customary provisions restricting
subletting or assignment of any lease governing any leasehold interest of
EnergySolutions or any of the Subsidiaries (other than in favor of the
Collateral Agent for the benefit of the Secured Parties), (f) customary
provisions restricting assignment (other than in favor of the Collateral Agent
for the benefit of the Secured 

 

103

 

Parties) of any licensing agreement (in which
EnergySolutions or any of the Subsidiaries is the licensee) or other contract
entered into by EnergySolutions or any of the Subsidiaries in the ordinary
course of business, and (g) restrictions on the transfer (other than in favor
of the Collateral Agent for the benefit of the Secured Parties) of any asset
subject to a Lien permitted by Section 7.2.

 

Section 7.14                                          Speculative
Transactions.

 

EnergySolutions and Parent shall not, and shall
cause each of their respective Subsidiaries (other than a Special Purpose
Subsidiary) not to, enter into any derivatives transaction other than a Hedge
Agreement or a currency swap transaction involving the exchange of Dollars to
U.K. pounds, entered into pursuant to the U.K. Acquisition, on terms reasonably
acceptable to the Administrative Agent.

 

Section 7.15                                          Name,
Jurisdiction of Organization and Business.

 

Other that as permitted pursuant to Section 7.4,
no Loan Party shall change its name or its jurisdiction of incorporation
without (i) 10 Business Days’ notice to the Administrative Agent and (ii) taking
all actions reasonably satisfactory to the Collateral Agent that are necessary
to maintain the perfection and priority of the security interest of the
Collateral Agent for the benefit of the Secured Parties in the Collateral, if
applicable, nor shall EnergySolutions or any of the Subsidiaries enter into or
conduct any business other than a Permitted Business.

 

Section 7.16                                          [Reserved].

 

Section 7.17                                          Permitted
Activities of Holdings and Parent.

 

Parent shall not (a) incur, directly or
indirectly, any Indebtedness (other than Indebtedness permitted by Section 7.1);
(b) create or suffer to exist any Lien upon any property or assets now
owned or hereafter acquired by it other than the Liens created under the
Security Documents or permitted pursuant to Section 7.2; (c) engage
in any business or activity or own any assets other than (i) the equity
interests of EnergySolutions and Duratek or a holding company that is a Loan
Party and that owns, directly or indirectly, the Equity Interests of EnergySolutions
and Duratek, (ii) performing its obligations and activities incidental
thereto under the Loan Documents and (iii) making Restricted Payments and
Investments to the extent permitted by this Agreement; (d) consolidate
with or merge with or into, or convey, transfer or lease all or substantially
all its assets to, any Person; (e) sell or otherwise dispose of any Equity
Interests of EnergySolutions or Duratek; (f) create or acquire any
Subsidiary or make or own any Investment in any Person other than
EnergySolutions or Duratek; (g) fail to hold itself out to the public as a
legal entity separate and distinct from all other Persons and (h) become
an obligor in respect of Indebtedness incurred pursuant to Section 7.1(w) and
replacements, renewals, extensions, refinancings or refundings thereof pursuant
to Section 7.1(n).

 

104

 

ARTICLE
8.

 

Default

 

Section 8.1                                                Events of
Default.

 

Each of the following events shall constitute an
Event of Default, whatever the reason for such event and whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment
or order of any court or any order, rule or regulation of any governmental
or non-governmental body:

 

(a)                                  Any
representation or warranty made under this Agreement or any other Loan Document
shall prove to be incorrect or misleading in any material respect when made, or
when deemed to be made pursuant to Section 4.2 hereof;

 

(b)                                 EnergySolutions
(i) shall default in the payment of any principal amount of the Loans, or (ii) shall
default in the payment of any interest, fees or other amounts payable to the
Lender Parties, the Administrative Agent or any of them, when due, and such
Default, in the case of this clause (ii), shall not be cured by payment in full
within three (3) Business Days;

 

(c)                                  EnergySolutions
and Parent or any of their respective Subsidiaries shall default in the
performance or observance of any agreement or covenant contained in Article 7
hereof;

 

(d)                                 EnergySolutions
and Parent or any of their respective Subsidiaries shall default in the
performance or observance of any other agreement or covenant contained in this
Agreement not specifically referred to elsewhere in this Section 8.1,
and such default shall not be cured within a period of thirty (30) days after
the earlier of the date that (i) any officer or manager of EnergySolutions
becomes aware of such default or (ii) notice of such default to
EnergySolutions from the Administrative Agent or any Lender becomes effective
in accordance with Section 11.1 hereof;

 

(e)                                  There shall
occur any default in the performance or observance of any agreement or covenant
or breach of any representation or warranty contained in any of the Loan
Documents (other than this Agreement or as otherwise provided in this Section 8.1)
by EnergySolutions, any of the Subsidiaries or any other obligor thereunder,
which shall not be cured within a period of thirty (30) days after the earlier
of the date that (i) any officer or manager of EnergySolutions becomes
aware of such default or (ii) notice of such default to EnergySolutions
from the Administrative Agent or any Lender becomes effective in accordance
with Section 11.1 hereof;

 

(f)                                    There shall be
entered and remain unstayed a decree or order for relief in respect of Parent
and EnergySolutions or any of their respective Subsidiaries under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other applicable
federal or state bankruptcy law or other similar law, or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or similar official of
Parent and EnergySolutions or any of their respective Subsidiaries, or of any
substantial part of their 

 

105

 

respective properties, or
ordering the winding-up or liquidation of the affairs of Parent and
EnergySolutions or any of their respective Subsidiaries; or an involuntary
petition shall be filed or case commenced against Parent and EnergySolutions or
any of their respective Subsidiaries and a temporary stay entered, and (i) such
petition and stay shall not be diligently contested, or (ii) such petition
and stay shall continue undismissed for a period of forty-five (45) consecutive
days;

 

(g)                                 Parent and
EnergySolutions or any of their respective Subsidiaries shall file a petition,
answer or consent seeking relief under Title 11 of the United States Code, as
now constituted or hereafter amended, or any other applicable federal or state
bankruptcy law or other similar law, or Parent and EnergySolutions or any of
their respective Subsidiaries shall consent to the institution of proceedings
thereunder or to the filing of any such petition or shall seek or consent to
the appointment or taking of possession of a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of Parent and
EnergySolutions or any of their respective Subsidiaries, or of any substantial
part of their respective properties, or Parent and EnergySolutions or any their
respective Subsidiaries shall fail generally to pay its debts as they become
due, or Parent and EnergySolutions or any of their respective Subsidiaries
shall take any action in furtherance of any such action;

 

(h)                                 A judgment
shall be entered by any court against Parent and EnergySolutions or any of the
Subsidiaries for the payment of money which, singly or in the aggregate with
other such judgments (to the extent the amount of such judgment exceeds the amount
of insurance coverage therefor, net of any deductible or co-payment, and as to
which the related carrier has been notified of such judgment and has responded
in writing and not denied insurance coverage therefor, including without
limitation the amount of such coverage), exceeds $10,000,000 or a warrant of
attachment or execution or similar process shall be issued or levied against
property of Parent and EnergySolutions or any of the Subsidiaries which,
together with all other such property of Parent and EnergySolutions or any of
the Subsidiaries subject to other such process, exceeds in value $10,000,000 in
the aggregate, and within sixty (60) days after the entry, issue or levy
thereof, such judgment, warrant or process shall not have been paid or discharged
or stayed pending appeal, or after the expiration of any such stay, such
judgment, warrant or process shall not have been paid, discharged or reduced to
an amount less than $5,000,000;

 

(i)                                     (A) There
shall be at any time any “accumulated funding deficiency,” as defined in Section 302
of ERISA or in Section 412 of the Code, with respect to any Plan or any
ERISA Affiliate Plan; (B) a trustee shall be appointed by a United States
District Court to administer any such Plan or ERISA Affiliate Plan; (C) the
filing pursuant to Section 412(d) of the Code or Section 303 of
ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan or ERISA Affiliate Plan; (D) the PBGC or a plan
administrator shall institute proceedings to terminate any Plan or ERISA
Affiliate Plan; or EnergySolutions, Parent or any of the Subsidiaries shall
incur any liability under Title IV of ERISA in connection with the termination
of any Plan or an ERISA Affiliate Plan (other than liabilities for benefit
obligations that are sufficiently funded at the time of termination in
accordance with applicable provisions of Title IV of ERISA); 

 

106

 

(E) any Plan, or trust
created under any such Plan, shall engage in a “prohibited transaction” (as
such term is defined in Section 406 of ERISA or Section 4975 of the
Code) which would subject EnergySolutions or any of the Subsidiaries to a tax
or penalty in any amount on “prohibited transactions” imposed by Section 502
of ERISA or Section 4975 of the Code or an obligation to indemnify any
other person for such tax or penalty; or (F) the incurrence by
EnergySolutions, Parent or any of the Subsidiaries of any liability with
respect to a withdrawal or partial withdrawal from any Multiemployer Plan or
the receipt by EnergySolutions or any Subsidiary of any notice, or the receipt
by any Multiemployer Plan from EnergySolutions or any Subsidiary of any notice,
concerning the imposition on EnergySolutions or any Subsidiary of withdrawal
liability as defined under Title IV of ERISA or a determination that a Multiemployer
Plan is, or is expected to be, insolvent or in reorganization with the meaning
of Title IV of ERISA, and, in each case, such event or condition, together with
other such events or conditions, if any, would reasonably be expected to
subject EnergySolutions and the Subsidiaries to any tax, liability or penalty
in excess of $5,000,000;

 

(j)                                     There shall
occur (i) any default under any Indebtedness (other than the Loans) of
Parent and EnergySolutions or any of the Subsidiaries in an aggregate principal
amount exceeding $5,000,000 at maturity and which default shall continue
unremedied for any applicable period of time sufficient to allow the holder of
such Indebtedness to accelerate the maturity of such Indebtedness; (ii) any
default under any Hedge Agreement having a notional principal amount of
$5,000,000 or more; or (iii) unless otherwise permitted herein, any
defeasance or any other action the result of which is to defease or repay any
other subordinated Indebtedness of EnergySolutions without payment in full of
the Obligations;

 

(k)                                  One or more of
the Necessary Authorizations shall be terminated or revoked such that
EnergySolutions and the Subsidiaries are no longer able to operate their
businesses or any portion thereof or any of such Necessary Authorizations shall
fail to be renewed at the stated expiration thereof such that EnergySolutions
and the Subsidiaries are no longer able to operate their businesses or any portion
thereof and retain the revenue received therefrom, except in the event that the
termination or revocation could not reasonably be expected to have a Material
Adverse Change;

 

(l)                                     Any Security
Document or any Note or any other Loan Document or any material provision
thereof shall at any time and for any reason be declared by a court of
competent jurisdiction to be null and void, or a proceeding shall be commenced
by EnergySolutions and Parent or any of their respective Subsidiaries or by any
governmental authority having jurisdiction over any of them seeking to
establish the invalidity or unenforceability thereof (exclusive of questions of
interpretation of any provision thereof), or EnergySolutions and Parent or any
of their respective Subsidiaries shall deny that it has any liability or
obligation for the payment of principal or interest or other obligations
purported to be created under any Loan Document;

 

(m)                               Any Security
Document shall for any reason fail or cease to create a valid and first
priority Lien on or Security Interest in any material portion of the Collateral
purported to be covered thereby, subject to any Permitted Lien, or any such
Lien or 

 

107

 

Security Interest shall
cease to be perfected, except if such failure results from the Collateral Agent’s
failure to file any UCC-l financing statement or UCC-3 continuation statement
in the appropriate jurisdiction or to maintain possession or control of such
portion of the Collateral as a result of a sale or assignment of such
Collateral by the Collateral Agent; or

 

(n)                                 There shall
occur a Change of Control.

 

Section 8.2                                                Remedies.

 

(a)                                  If an Event of
Default specified in Section 8.1 (other than an Event of Default under
Section 8.1(f) or Section 8.1(g)) shall have
occurred and shall be continuing, the Administrative Agent, at the request of
the Majority Lenders, may formally declare that an Event of Default has
occurred and, at the request of the Majority Lenders, may (i) terminate
all or any portion of the Commitments of each Lender Party and the obligation
of each Lender Party to make Loans (other than in respect of purchases of
participations in Letter of Credit Loans by the Revolving Issuing Bank or a
Revolving Lender pursuant to Section 2.2(f)(ii)) and of the Issuing
Banks to issue Letters of Credit and (ii) declare the principal of and
interest on the Loans and any Notes and all other amounts owed to the Lender
Parties and the Administrative Agent under this Agreement and any Notes and any
other Obligations to be forthwith due and payable without presentment, demand,
protest or notice of any kind, all of which are hereby expressly waived,
anything in this Agreement or in the Notes or any other Loan Document to the
contrary notwithstanding, and the Commitments shall thereupon forthwith
terminate and all such amounts shall be immediately due and payable.

 

(b)                                 Upon the
occurrence and continuance of an Event of Default specified in Section 8.1(f) or
Section 8.1(g), all principal, interest and other amounts due
hereunder and under any Notes, and all other Obligations, shall thereupon and
concurrently therewith become due and payable, the Commitments of each Lender
Party and the obligation of each Lender Party to make Loans (other than in
respect of Letter of Credit Loans by the Revolving Issuing Bank or a Revolving
Lender pursuant to Section 2.2(f)(ii)) and of the Issuing Banks to
issue Letters of Credit shall forthwith terminate and the principal amount of
the Loans outstanding hereunder shall bear interest at the Default Rate, all
without any action by the Administrative Agent, the Lender Parties or the
Majority Lenders or any of them and without presentment, demand, protest or
other notice of any kind, all of which are expressly waived, anything in this Agreement
or in the other Loan Documents to the contrary notwithstanding.

 

(c)                                  Upon
acceleration of the Obligations, as provided in Section 8.2(a) or
(b), the Administrative Agent and the Lender Parties shall have all of
the post-default rights granted to them, or any of them, under the Loan
Documents and under Applicable Law.

 

(d)                                 Upon
acceleration of the Obligations, as provided in Section 8.2(a) or
(b), the Administrative Agent, upon request of the Majority Lenders,
shall have the right to the appointment of a receiver for the properties and
assets of EnergySolutions and the Subsidiaries, both to operate and to sell
such properties and assets, and EnergySolutions, for itself and on behalf of
the Subsidiaries, hereby consents to such right and such appointment and hereby
waives any objection EnergySolutions or any Subsidiary may have thereto or the
right to have a bond or other security posted by the Collateral Agent on behalf
of the Secured Parties, in connection therewith.

 

108

 

(e)                                  The rights and
remedies of the Administrative Agent, the Collateral Agent and the Lender
Parties hereunder shall be cumulative and not exclusive.

 

Section 8.3                                                Payments
Subsequent to Declaration of Event of Default.

 

Subsequent to the acceleration of the Loans under Section 8.2
hereof, payments and prepayments under this Agreement made to any of the
Administrative Agent, the Collateral Agent or the Lender Parties or otherwise
received by any of such Persons (from realization on Collateral for the Secured
Obligations or otherwise) shall be paid over to the Administrative Agent (if
necessary) and distributed by the Administrative Agent as follows:  first, to reimburse the reasonable costs and
expenses, if any, incurred in connection with the collection of such payment or
prepayment including, without limitation, any reasonable costs incurred by any
of them in connection with the sale or disposition of any Collateral for the
Secured Obligations; second, to make distributions in accordance with Section 2.10(c);
and third, upon satisfaction in full of all Secured Obligations, to
EnergySolutions or as otherwise required by law.

 

Section 8.4                                                Actions in
Respect of the Letters of Credit upon Default.

 

If any Event of Default shall have occurred and be
continuing, the Administrative Agent may, or shall at the request of the
Majority Lenders, irrespective of whether it is taking any of the actions
described in Section 8.2 or otherwise, make demand upon EnergySolutions
to, and forthwith upon such demand EnergySolutions will, pay to the
Administrative Agent on behalf of the Lender Parties in same day funds at the
Administrative Agent’s office designated in such demand, for deposit in the L/C
Collateral Account, an amount equal to the aggregate Revolving Letters of
Credit then outstanding.  If at any time
the Administrative Agent determines that any funds held in the L/C Collateral
Account are subject to any right or claim of any Person other than the Agents
and the Lender Parties or that the total amount of such funds is less than the
aggregate Available Amount of all Revolving Letters of Credit, EnergySolutions
will, forthwith upon demand by the Administrative Agent, pay to the
Administrative Agent, as additional funds to be deposited and held in the L/C
Collateral Account, an amount equal to the excess of (a) such aggregate
Available Amount over (b) the total amount of funds, if any, then held in
the L/C Collateral Account that the Administrative Agent determines to be free
and clear of any such right and claim. 
Upon the drawing of any Revolving Letter of Credit for which funds are
on deposit in the L/C Collateral Account, such funds shall be applied to
reimburse the Revolving Issuing Bank or Revolving Lenders, as applicable, to
the extent permitted by Applicable Law.

 

Section 8.5                                                Certain Cure
Rights.

 

(a)                                  Financial
Condition Covenants. 
Notwithstanding anything to the contrary contained in Section 8.1,
in the event that Parent fails to comply with the requirements of any covenants
set forth in Section 7.7(a) or (b) (each, a “Financial
Condition Covenant”), until the expiration of the 20th day subsequent to
the date the certificate calculating such Financial Condition Covenant is
required to be delivered pursuant to Section 6.3, Parent shall have
the right to issue equity interests to the Equity Sponsors for cash, and, in
each case, to contribute any such cash to the capital of EnergySolutions
(collectively, the “Cure Right”), and upon the receipt by EnergySolutions
of such cash (the “Cure Amount”) pursuant to the exercise by Parent of
such Cure 

 

109

 

Right such Financial Condition Covenant shall
be recalculated giving effect to the following pro forma adjustments:

 

(i)                                     Operating Cash
Flow shall be increased, solely for the purpose of measuring the Financial
Condition Covenants and not for any other purpose under this Agreement, by an
amount equal to the Cure Amount; and

 

(ii)                                  If, after
giving effect to the foregoing recalculations, Parent and EnergySolutions shall
then be in compliance with the requirements of all Financial Condition
Covenants, Parent and EnergySolutions shall be deemed to have satisfied the
requirements of the Financial Condition Covenants as of the relevant date of
determination with the same effect as though there had been no failure to
comply therewith at such date, and the applicable breach or default of the
Financial Condition Covenants which had occurred shall be deemed cured for all
purposes of this Agreement.

 

(b)                                 Limitations on
Exercise of Cure Right, Etc.  Notwithstanding anything herein to the
contrary, (a) in no event shall Parent be entitled to exercise the Cure
Right in more than two consecutive fiscal quarters and (b) each Cure
Amount shall not exceed the amount required to cure the applicable failure to
comply with a Financial Condition Covenant. 
To the extent a fiscal quarter ended for which the Financial Condition
Covenants are initially recalculated as a result of a Cure Right is included in
the calculation of a Financial Condition Covenant in a subsequent fiscal
period, the Cure Amount shall be included in the amount of Operating Cash Flow
for such initial fiscal period.

 

ARTICLE
9.

 

The
Agents

 

Section 9.1                                                Appointment and
Authorization.

 

Each Lender (in its capacities as a Lender and an
Issuing Bank (if applicable)) hereby consents to the assignment by Calyon of
all of its rights and duties as the Administrative Agent and Collateral Agent
to CNAI pursuant to the Successor Agent Agreement and hereby irrevocably
appoints and authorizes, and hereby agrees that it will require any transferee
of any of its interest in its Loans irrevocably to appoint and authorize, CNAI
as the Administrative Agent and the Collateral Agent, as applicable, to take
such actions as agents on its behalf and to exercise such powers hereunder,
under the Security Documents as are delegated by the terms hereof and thereof,
together with such powers as are reasonably incidental thereto.  Notwithstanding anything in the Loan
Documents to the contrary, neither Calyon (as administrative and collateral
agent under the Original Credit Agreement), the Administrative Agent, the
Collateral Agent nor any of their respective directors, officers, employees or
agents shall be liable for any action taken or omitted to be taken by it or
them hereunder or in connection herewith (or, with respect to Calyon, the
Original Credit Agreement), except for its or their own gross negligence or
willful misconduct.

 

110

 

Section 9.2                                                Interest
Holders.

 

The Administrative Agent may treat each Lender
Party, or the Person designated in the last notice filed with the
Administrative Agent, whether under Section 11.1, Section 11.5
or otherwise hereunder, as the holder of all of the interests of such Lender
Party in its Loans or Commitments and Synthetic Deposits until written notice
of transfer, signed by such Lender Party (or the Person designated in the last
notice filed with the Administrative Agent) and by the Person designated in
such written notice of transfer, in form and substance satisfactory to the
Administrative Agent, shall have been filed with the Administrative Agent.

 

Section 9.3                                                Consultation
with Counsel.

 

The Administrative Agent and the Collateral Agent
may consult with legal counsel selected by it with due care (which may include
counsel to EnergySolutions) and shall not be liable for any action taken or
suffered by it in good faith in consultation with the Majority Lenders and in
reasonable reliance on such consultations.

 

Section 9.4                                                Documents.

 

The Administrative Agent and the Collateral Agent
shall be under no duty to examine, inquire into or pass upon the validity,
effectiveness or genuineness of this Agreement, any Note, any other Loan
Document or any other instrument, document or communication furnished pursuant
hereto or in connection herewith, and the Administrative Agent and the Collateral
Agent shall be entitled to assume (absent knowledge to the contrary) that they
are valid, effective and genuine, have been signed or sent by the proper
parties and are what they purport to be.

 

Section 9.5                                                CNAI and
Affiliates.

 

With respect to its Commitments and the Loans and
Synthetic Deposits made by it and the Notes issued to it, if any, CNAI shall
have the same rights and powers under the Loan Documents as any other Lender
Party and may exercise the same as though it were not an Agent; and the term “Lender
Party” or “Lender Parties” shall, unless otherwise expressly indicated, include
CNAI in its individual capacity.  CNAI
and its Affiliates may accept deposits from, lend money to, act as trustee
under indentures of, accept investment banking engagements from and generally
engage in any kind of business with, any Loan Party, any of its Subsidiaries
and any Person that may do business with or own securities of any Loan Party or
any such Subsidiary, all as if CNAI was not an Agent and without any duty to
account therefor to the Lender Parties. 
No Agent shall have any duty to disclose any information obtained or
received by it or any of its Affiliates relating to any Loan Party or any of
its Subsidiaries to the extent such information was obtained or received in any
capacity other than as such Agent.

 

Section 9.6                                                Responsibility
of the Administrative Agent and the Collateral Agent.

 

The duties and obligations of the Administrative
Agent and the Collateral Agent under this Agreement and the Security Documents
are only those expressly set forth in this Agreement and the Security
Documents.  The term “Agent” is used
merely for convenience of reference, and the Administrative Agent and the Collateral
Agent shall not, either as a result of the use of such term or for any other
reason, have any duties or responsibilities except those expressly set forth 

 

111

 

herein or in the other Loan Documents, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or otherwise exist against the Administrative Agent or the Collateral
Agent.  Each of the Administrative Agent
and the Collateral Agent shall be entitled to assume that no Default has
occurred and is continuing unless it has actual knowledge, or has been notified
by EnergySolutions, of such fact or has been notified by a Lender Party in
writing that such Lender Party considers that a Default has occurred and is
continuing, and such Lender Party shall specify in detail the nature thereof in
writing.  Each of the Administrative
Agent and the Collateral Agent shall not be liable hereunder for any action
taken or omitted to be taken except for its own gross negligence or willful
misconduct.  The Administrative Agent
shall provide promptly each Lender Party with copies of such documents received
from EnergySolutions in connection with this Agreement as such Lender Party may
reasonably request.

 

Section 9.7                                                Collateral and
Guaranty Matters.

 

(a)                                  The Collateral
Agent, as collateral agent hereunder and under the Security Documents, is
hereby authorized to act on behalf of the Secured Parties, in its own capacity
and through other agents and sub-agents appointed by it with due care, under
the Security Documents.  In connection
with its role as secured party with respect to the Collateral hereunder, the
Collateral Agent shall act as collateral agent, for itself and for the ratable
benefit of the Secured Parties, and such role as Collateral Agent shall be
disclosed on all appropriate accounts, certificates, filings, mortgages and
other Collateral documentation.

 

(b)                                 The Lender
Parties irrevocably authorize the Collateral Agent, at its option and in its
discretion, and the Collateral Agent may, without further written consent or
authorization from Lenders (subject to Section 11.12 hereof), and
agrees with and for the benefit of EnergySolutions that it shall execute any
documents or instruments and take any further actions, in each case at the sole
cost and expense of EnergySolutions, necessary:

 

(i)                  to release any
Lien on any property granted to or held by the Collateral Agent under any Loan
Document (A) upon termination of the Commitments and payment in full of
all Secured Obligations (other than contingent indemnification obligations) and
the expiration or termination of all Letters of Credit, (B) that is sold
or transferred or to be sold or transferred as part of or in connection with
any sale, or transferred in any liquidation or merger, in each case, permitted
hereunder or under any other Loan Document, or (C) subject to Section 11.12,
if approved, authorized or ratified in writing by the Majority Lenders; or

 

(ii)               to release any
Guarantor (other than Parent) from its obligations under the Guaranty if such
Person (x) ceases to be a Subsidiary as a result of a transaction permitted
hereunder or (y) that is a Special Purpose Subsidiary, so long as, in the
case of this clause (y), EnergySolutions has provided a certificate of one of
its financial officers stating that such Guarantor is a Special Purpose
Subsidiary that has been, and upon release shall be, formed and existing in
compliance with the provisions of the Loan Documents applicable to Special
Purpose Subsidiaries.

 

112

 

Upon request by the Administrative Agent at any
time, the Majority Lenders will confirm in writing the Administrative Agent’s
or the Collateral Agent’s authority to release or subordinate its interest in
particular types or items of property, or to release any Guarantor from its obligations
under the Guaranty pursuant to this Section 9.7.

 

Section 9.8                                                Action by the
Administrative Agent and the Collateral Agent.

 

(a)                                  Each of the
Administrative Agent and the Collateral Agent shall be entitled to use its
discretion with respect to exercising or refraining from exercising any rights
which may be vested in it by, and with respect to taking or refraining from
taking any action or actions which it may be able to take under or in respect
of, this Agreement, unless the Administrative Agent or the Collateral Agent, as
applicable, shall have been instructed by the Majority Lenders to exercise or
refrain from exercising such rights or to take or refrain from taking such
action.  Neither the Administrative Agent
nor the Collateral Agent shall incur any liability under or in respect of this
Agreement with respect to anything which it may do or refrain from doing in the
reasonable exercise of its judgment or which may seem to it to be necessary or
desirable in the circumstances for the protection of the interests of the
Lender Parties, except for its gross negligence or willful misconduct as
determined by a final, non-appealable order of a court having jurisdiction over
the subject matter.

 

(b)                                 In any event,
neither the Collateral Agent nor the Administrative Agent shall be liable to
the Lenders or to any Lender in acting or refraining from acting under this
Agreement or any other Loan Document in accordance with the instructions of the
Majority Lenders or of all the Lenders, where expressly required by this
Agreement, and any action taken or failure to act pursuant to such instructions
shall be binding on all Lenders.

 

Section 9.9                                                Notice of
Default or Event of Default.

 

In the event that the Administrative Agent or any
Lender Party shall acquire actual knowledge, or shall have been notified, of
any Default (other than through a notice by one party hereto to all other parties),
the Administrative Agent or such Lender Party shall promptly notify the
Administrative Agent, and the Administrative Agent shall take such action and
assert such rights under this Agreement as the Majority Lenders or of all the
Lenders, where expressly required by this Agreement, shall request in writing,
and the Administrative Agent shall not be subject to any liability by reason of
its acting pursuant to any such request. 
If the Majority Lenders shall fail to request the Administrative Agent
to take action or to assert rights under this Agreement in respect of any
Default within ten (10) days after their receipt of the notice of any
Default from the Administrative Agent or any Lender Party, or shall request inconsistent
action with respect to such Default, the Administrative Agent may, but shall
not be required to, take such action and assert such rights as it deems in its
discretion to be advisable for the protection of the Lender Parties.

 

113

 

Section 9.10                                          Responsibility
Disclaimed.

 

Each of the Administrative
Agent and the Collateral Agent shall not be under any liability or responsibility
whatsoever as agent:

 

(a)                                  to EnergySolutions
or any other Person as a consequence of any failure or delay in performance by
or any breach by any Lender Party or Lender Parties of any of its or their obligations
under this Agreement;

 

(b)                                 to any Lender
Party or Lender Parties as a consequence of any failure or delay in performance
by, or any breach by, (i) EnergySolutions of any of its obligations under
this Agreement or any Notes or any other Loan Document, or (ii) any Subsidiary
or any other obligor under any other Loan Document;

 

(c)                                  to any Lender
Party or Lender Parties for any statements, representations or warranties in
this Agreement, or any other document contemplated by this Agreement or any
other Loan Document, or any information provided pursuant to this Agreement,
any other Loan Document or any other document contemplated by this Agreement,
or for the validity, effectiveness, enforceability or sufficiency of this
Agreement, any Notes, any other Loan Document or any other document
contemplated by this Agreement;

 

(d)                                 to any Lender
Party for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, any
Loan Document or any other instrument or document furnished pursuant thereto;
or

 

(e)                                  Under or in
respect of any Loan Document by acting upon any notice, consent, certificate or
other instrument or writing (which may be by telegram, telecopy or telex)
believed by it to be genuine and signed or sent by the proper party or parties.

 

Section 9.11                                          Indemnification.

 

(a)                                  Each Lender
Party severally agrees to indemnify each Agent and Calyon, in its capacity as
administrative agent under the Original Credit Agreement (to the extent not
promptly reimbursed by EnergySolutions) from and against such Lender Party’s ratable
share (determined as provided below) of 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 such Agent in any way relating to or arising out of the
Loan Documents and any action taken or omitted by Calyon in any way relating to
or arising out of the Original Credit Agreement or any action taken or omitted
by such Agent under the Loan Documents (collectively, the “Indemnified Costs”);
provided, however, that no Lender Party shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from such Agent’s
gross negligence or willful misconduct as found in a final, non-appealable
judgment by a court of competent jurisdiction. 
Without limitation of the foregoing, each Lender Party agrees to reimburse
each Agent promptly upon demand for its ratable share of any costs and expenses
(including, without limitation, fees and expenses of counsel) payable by EnergySolutions
under Section 11.2, to the extent that such Agent is not promptly
reimbursed for such costs and expenses by 

 

114

 

EnergySolutions.  In the case of any investigation, litigation
or proceeding giving rise to any Indemnified Costs, this Section 9.11
applies whether any such investigation, litigation or proceeding is brought by
any Lender Party or any other Person.

 

(b)                                 Each Revolving
Lender severally agrees to indemnify the Revolving Issuing Bank (to the extent
not promptly reimbursed by EnergySolutions) from and against such Revolving
Lender’s ratable share (determined as provided below) of 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 Revolving Issuing Bank
in any way relating to or arising out of the Loan Documents or any action taken
or omitted by the Revolving Issuing Bank under the Loan Documents; provided,
however, that no Revolving Lender shall be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the Revolving Issuing
Bank’s gross negligence or willful misconduct as found in a final,
non-appealable judgment by a court of competent jurisdiction.  Without limitation of the foregoing, each Revolving
Lender agrees to reimburse the Revolving Issuing Bank promptly upon demand for
its ratable share of any costs and expenses (including, without limitation,
fees and expenses of counsel) payable by EnergySolutions under Section 11.2,
to the extent that the Revolving Issuing Bank is not promptly reimbursed for
such costs and expenses by EnergySolutions. 
Each Synthetic Lender severally agrees to indemnify the Synthetic
Issuing Bank (to the extent not promptly reimbursed by EnergySolutions) from
and against such Synthetic Lender’s ratable share (determined as provided
below) of 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 Synthetic Issuing
Bank in any way relating to or arising out of the Loan Documents or any action
taken or omitted by the Synthetic Issuing Bank under the Loan Documents; provided,
however, that no Synthetic Lender shall be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the Synthetic Issuing
Bank’s gross negligence or willful misconduct as found in a final,
non-appealable judgment by a court of competent jurisdiction.  Without limitation of the foregoing, each
Synthetic Lender agrees to reimburse the Synthetic Issuing Bank promptly upon
demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by EnergySolutions under Section 11.2,
to the extent that the Synthetic Issuing Bank is not promptly reimbursed for
such costs and expenses by EnergySolutions.

 

(c)                                  For purposes of
this Section 9.11, the Lender Parties’ respective ratable shares of
any amount shall be determined, with respect to any time deemed appropriate by
such Agent, according to the sum of (i) the aggregate principal amount of
the Loans outstanding at such time and owing to the respective Lender Parties, (ii) their
respective Pro Rata Shares of the aggregate Available Amount of all Letters of
Credit outstanding at such time and (iii) the aggregate unused portions of
their respective Revolving Commitments at such time; provided that the
aggregate principal amount of Letter of Credit Loans owing to the Revolving
Issuing Bank shall be deemed “owed to” the Revolving Lenders ratably in
accordance with their respective Revolving Commitments.  The failure of any Lender Party to reimburse
any Agent or the Revolving Issuing Bank, as the case may be, promptly upon demand
for its ratable share of any amount required to be paid by the Lender Parties
to such Agent or the Revolving Issuing Bank, as the case may be, as provided
herein shall not relieve any other Lender Party of its obligation hereunder to
reimburse 

 

115

 

such Agent or the Revolving Issuing Bank, as
the case may be, for its ratable share of such amount, but no Lender Party
shall be responsible for the failure of any other Lender Party to reimburse
such Agent or the Revolving Issuing Bank, as the case may be, for such other
Lender Party’s ratable share of such amount. 
Without prejudice to the survival of any other agreement of any Lender
Party hereunder, the agreement and obligations of each Lender Party contained
in this Section 9.11 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the other Loan Documents.

 

Section 9.12                                          Credit Decision.

 

Each Lender Party represents
and warrants to each other Lender Party, to each Agent and to the Administrative
Agent that:

 

(a)                                  in making its
decision to enter into this Agreement and to make its Loans it has
independently taken whatever steps it considers necessary to evaluate the
financial condition and affairs of EnergySolutions and the Subsidiaries and
that it has made an independent credit judgment, and that it has not relied
upon the Administrative Agent, any Agent or any other Lender Party, or
information provided by the Administrative Agent (other than information
provided to the Administrative Agent by EnergySolutions and forwarded by the
Administrative Agent to the Lender Parties); and

 

(b)                                 so long as any
portion of the Obligations remains outstanding, it will continue to make its
own independent evaluation of the financial condition and affairs of EnergySolutions
and the Subsidiaries.

 

Section 9.13                                          Successor
Agents.

 

(a)                                  Resignation of
Administrative Agent.  The
Administrative Agent may resign at any time by giving written notice five days
prior to the effective date of such resignation to the Lender Parties and
EnergySolutions.  Upon any such
resignation, the Majority Lenders shall have the right, in consultation with
EnergySolutions, to appoint a successor Administrative Agent; provided
that, at the time of the resignation of the Administrative Agent, no successor
Administrative Agent has been appointed by the Majority Lenders, the retiring
Administrative Agent may, on behalf of the Lender Parties, appoint a successor
Administrative Agent, which shall be any Lender Party or a commercial bank
organized under the laws of the United States of America or any political
subdivision thereof which has combined capital and reserves in excess of
$250,000,000.  Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges, duties and obligations
of the retiring Administrative Agent and the retiring Administrative Agent
shall be discharged from its duties and obligations under the Loan
Documents.  After any retiring Administrative
Agent’s resignation hereunder as Administrative Agent (including, for the avoidance
of doubt, Calyon’s resignation as administrative agent pursuant to the
Successor Agent Agreement), the provisions of this Article 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 Administrative Agent (and with respect
to Calyon, including any action taken or omitted to be taken subsequent to its resignation
in connection with 

 

116

 

(x) the payoff of the term loans under
the Original Credit Agreement or (y) other obligations under the Original
Credit Agreement).

 

(b)                                 Resignation of
Collateral Agent.  The
Collateral Agent may resign at any time by giving written notice of such
resignation to the Lender Parties and EnergySolutions.  Upon any such resignation, the Majority
Lenders shall have the right, in consultation with EnergySolutions, to appoint
a successor Collateral Agent; provided that if, at the time of the
resignation of the Administrative Agent, no successor Collateral Agent has been
appointed by the Majority Lenders, the retiring Collateral Agent may, on behalf
of the Lender Parties, appoint a successor Collateral Agent and, after its
resignation and prior to the appointment of any successor Collateral Agent, the
retiring Collateral Agent will act as a nominee for perfection with respect to
the applicable Collateral.  Upon the
acceptance of any appointment as Collateral Agent hereunder by a successor
Collateral Agent, such successor Collateral Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges, duties and
obligations of the retiring Collateral Agent and the retiring Collateral Agent
shall be discharged from its duties and obligations under the Loan
Documents.  After any retiring Collateral
Agent’s resignation hereunder as Collateral Agent (including, for the avoidance
of doubt, Calyon’s resignation as collateral agent pursuant to the Successor
Agent Agreement), the provisions of this Article 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 (and with respect to Calyon,
including any action taken or omitted to be taken subsequent to its resignation
in connection with the payoff of term loans under the Original Credit
Agreement).

 

(c)                                  General.  If no successor agent shall have been
appointed and shall have accepted such appointment prior to the resignation of
the Administrative Agent or Collateral Agent, then the retiring Administrative
Agent or Collateral Agent, as applicable, shall thereupon be discharged from
its duties and obligations under the Loan Documents and the Majority Lenders
shall thereafter perform all duties of the retiring Administrative Agent or
Collateral Agent, as applicable, under the Loan Documents until such time, if
any, as the Majority Lenders appoint a successor Administrative Agent or
Collateral Agent, as applicable, as provided above.  After any retiring agent’s resignation
hereunder as Administrative Agent or Collateral Agent shall have become
effective (including, for the avoidance of doubt, Calyon’s resignation as
administrative agent and collateral agent pursuant to the Successor Agent
Agreement), the provisions of this Article 9 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent or Collateral Agent, as applicable, under this Agreement
(and with respect to Calyon, including any action taken or omitted to be taken
subsequent to its resignation in connection (x) with the payoff of the
term loans under the Original Credit Agreement or (y) other obligations
under the Original Credit Agreement).

 

Section 9.14                                          Delegation of
Duties.

 

The Administrative Agent may execute any of its
duties under the Loan Documents by or through agents or attorneys selected by
it using reasonable care, and shall be entitled to advice of counsel concerning
all matters pertaining to such duties.

 

117

 

Section 9.15                                          Additional
Agents.

 

None of the Lender Parties or other entities
identified on the facing page of, signature pages of or elsewhere in
this Agreement as a “syndication agent,” “documentation agent,” “sole
bookrunner” or “sole lead arranger” shall have any right, power, obligation,
liability, responsibility or duty under this Agreement or any other Loan Document
other than those applicable to all Lender Parties as such.  Without limiting the foregoing, none of the
Lender Parties so identified shall have or be deemed to have any fiduciary
relationship with any other Lender Party. 
Each Lender Party acknowledges that it has not relied, and will not
rely, on any of the Lender Parties or other entities so identified in deciding
to enter into this Agreement or any other Loan Document or in taking or not
taking action hereunder or thereunder.

 

Section 9.16                                          Administrative
Agent May File Proofs of Claim.

 

(a)                                  In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party, the Administrative Agent or its designee
(irrespective of whether the principal of any Loan or Letter of Credit shall
then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agent shall have made any demand on
EnergySolutions) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

 

(i)                                     to file and
prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, Letter of Credit Agreement and all other Obligations
that are owing and unpaid and to file such other documents as may be necessary
or advisable in order to have the claims of the Lender Parties and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lender Parties and the
Administrative Agent and their respective agents and counsel and all other
amounts due the Lender Parties and the Administrative Agent under Sections
2.3, 2.5 and 11.2) allowed in such judicial proceeding; and

 

(ii)                                  to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same;

 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Lender Party to make such
payments to the Administrative Agent and, in the event that the Administrative
Agent shall consent to the making of such payments directly to the Lender
Parties, to pay to the Administrative Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Administrative Agent
and its agents and counsel, and any other amounts due the Administrative Agent
under Sections 2.5 and 11.2.

 

(b)                                 Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender Party any
plan of reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender Party or to authorize the
Administrative Agent to vote in respect of the claim of any Lender Party in any
such proceeding.

 

118

 

Section 9.17                                          Security
Documents.

 

Notwithstanding anything herein to the contrary,
each Lender also acknowledges that CNAI, Collateral Agent hereunder, is also acting
as Collateral Agent under the Duratek Loan Agreement, and in such dual
capacities has entered into the Security Documents on behalf of both the
Secured Parties hereunder as well as the secured parties under the Duratek Loan
Agreement, each Secured Party hereby waiving any actual or potential conflict
or breach of duty created or existing as the result of such dual capacities and
acknowledging that it has read the terms and conditions of the Security
Documents and has accepted the same without reliance on any of the Agents.

 

ARTICLE
10.

 

Change
in Circumstances Affecting Fixed Rate Loans

 

Section 10.1                                          Eurodollar
Basis Determination Inadequate or Unfair.

 

If, with respect to any proposed Eurodollar Option
Loan for any Interest Period, the Administrative Agent determines after
consultation with the Lenders that deposits in Dollars (in the applicable
amount) are not being offered to each of the Lenders in the relevant market for
such Interest Period, the Administrative Agent shall forthwith give notice
thereof to EnergySolutions and the Lenders, whereupon until the Administrative
Agent notifies EnergySolutions that the circumstances giving rise to such
situation no longer exist, the obligations of any affected Lender to make or
continue Eurodollar Option Loans shall be suspended.

 

Section 10.2                                          Illegality.

 

If after the Third Amended and Restated Credit
Agreement Effective Date the adoption of any Applicable Law, or any change in
any Applicable Law (whether adopted before or after the Third Amended and
Restated Credit Agreement Effective Date), or any change in interpretation or
administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by any Lender with any directive (whether or not having the force of
law) of any such authority, central bank or comparable agency, shall make it
unlawful or impossible, or any such governmental authority, central bank or
comparable agency shall assert that it is unlawful, for any Lender to make,
maintain or fund Eurodollar Option Loans, such Lender shall so notify the
Administrative Agent, and the Administrative Agent shall forthwith give notice
thereof to the other Lenders and EnergySolutions.  Before giving any notice to the
Administrative Agent pursuant to this Section 10.2, such Lender
shall designate a different lending office if such designation will avoid the
need for giving such notice and will not, in the sole judgment of such Lender,
be otherwise materially disadvantageous to such Lender.  Upon receipt of such notice, notwithstanding
anything contained in Article 2 hereof, (a) the obligation of
the Lenders to make or continue Eurodollar Option Loans shall be suspended
until the Administrative Agent shall notify EnergySolutions and the Lenders
that the circumstances causing such suspension no longer exist and (b) unless
EnergySolutions, within three (3) Business Days thereafter, converts all
Eurodollar Option Loans into Base Rate Option Loans in accordance with the
terms of this Agreement, EnergySolutions shall repay in full the then
outstanding principal amount of each affected Eurodollar Option Loan of such 

 

119

 

Lender, together with accrued interest
thereon and any reimbursement required under Section 2.11 hereof,
on either (i) the last day of the then current Interest Period applicable
to such affected Eurodollar Option Loans if such Lender may lawfully continue
to maintain and fund such Eurodollar Option Loans to such day or (ii) immediately
if such Lender may not lawfully continue to fund and maintain such affected
Eurodollar Option Loans to such day. 
Concurrently with repaying each affected Eurodollar Option Loan of such
Lender, notwithstanding anything contained in Article 2 or Article 3
hereof, EnergySolutions may borrow a Base Rate Option Loan from such Lender,
and such Lender shall make such Base Rate Option Loan, if so requested, in an
amount such that the outstanding principal amount held by such Lender shall
equal the outstanding principal amount immediately prior to such repayment.

 

Section 10.3                                          Increased Costs.

 

(a)                                  If after the
Third Amended and Restated Credit Agreement Effective Date the adoption or
effectiveness of any Applicable Law or any change or effectiveness in any
Applicable Law (whether adopted before or after the Third Amended and Restated
Credit Agreement Effective Date) or any interpretation or change in
interpretation or administration or effectiveness thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof or compliance by any Lender Party with any directive
(whether or not having the force of law) of any such authority, central bank or
comparable agency:

 

(i)                                     shall subject
any Lender Party to any tax, duty or other charge with respect to its
obligation to make or continue Eurodollar Option Loans, or its Eurodollar
Option Loans or Synthetic Deposits, or shall change the basis of taxation of payments
to any Lender Party of the principal of or interest on its Eurodollar Option
Loans, Synthetic Deposits or in respect of any other amounts due under this
Agreement, in respect of its Eurodollar Option Loans, Synthetic Deposits or its
obligation to make or continue Eurodollar Option Loans (except for changes in
the rate or method of calculation of tax on the overall net income of such
Lender Party); or

 

(ii)                                  shall impose,
modify or deem applicable any reserve (including, without limitation, any
imposed by the Board of Governors of the Federal Reserve System, but excluding
any included in an applicable Eurodollar Reserve Percentage), special deposit,
capital adequacy, assessment or other requirement or condition against assets
of, deposits with or for the account of, or commitments or credit extended by,
any Lender Party or shall impose on any Lender Party or the London interbank
borrowing market or the New York certificate of deposit market any other
condition affecting its obligation to make or continue Eurodollar Option Loans
or its Eurodollar Option Loans or Synthetic Deposits;

 

and the result of any of the foregoing is to
increase the cost to such Lender Party of making or maintaining any such
Eurodollar Option Loans or Synthetic Deposits, or of agreeing to issue or of
issuing or maintaining or participating in Letters of Credit or of agreeing to
make or of making or maintaining Letter of Credit Loans, or to reduce the
amount of any sum received or receivable by such Lender Party under this
Agreement with respect thereto, then, within five (5) days after demand by
such Lender Party, EnergySolutions agrees to pay to such Lender Party such
additional amount or amounts as will compensate such Lender Party for such
increased

 

120

 

costs (other than any increased costs
resulting from Taxes that are Covered Taxes or Other Taxes (which shall be
governed exclusively by Section 2.14) or are excluded from the
definition of “Covered Taxes” under Section 2.14(a)).  Each Lender Party will promptly notify
EnergySolutions and the Administrative Agent of any event of which it has
knowledge, occurring after the Third Amended and Restated Credit Agreement
Effective Date, which will entitle such Lender Party to compensation pursuant
to this Section 10.3 and will designate a different lending office
if such designation will avoid the need for, or reduce the amount of, such
compensation and will not, in the sole judgment of such Lender Party, be otherwise
disadvantageous to such Lender Party.

 

(b)                                 Any Lender
Party claiming compensation under this Section 10.3 shall provide
EnergySolutions with a written certificate setting forth the additional amount
or amounts to be paid to it hereunder and calculations therefor in reasonable
detail.  Such certificate shall be presumptively
correct, absent manifest error.  In
determining such amount, such Lender Party may use any reasonable averaging and
attribution methods.  If any Lender Party
demands compensation under this Section 10.3, EnergySolutions may
at any time, upon at least five (5) Business Days’ prior notice to such
Lender Party, prepay in full the then outstanding affected Eurodollar Option
Loans of such Lender Party, together with accrued interest thereon to the date
of prepayment, along with any reimbursement required under Section 2.11
hereof.  Concurrently with prepaying such
Eurodollar Option Loans, notwithstanding anything contained in Article 2
or Article 3 hereof, EnergySolutions may borrow a Base Rate Option
Loan from such Lender Party, and such Lender Party shall, if so requested, make
such Base Rate Option Loan in an amount such that the outstanding principal
amount held by such Lender Party shall equal the outstanding principal amount
immediately prior to such prepayment.

 

(c)                                  If any Lender
requests compensation under this Section 10.3, then EnergySolutions
may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in, and consents
required by, Section 11.5), all of its interests, rights and
obligations under this Agreement and the related Loan Documents to an assignee
that shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that:  (i) EnergySolutions shall have paid to
the Administrative Agent the assignment fee specified in Section 11.5,
(ii) such Lender shall have received payment of an amount equal to the
outstanding principal of and premium (if any) on its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder and under
the other Loan Documents (including any amounts specified in Section 2.11,
treating such assignment as a voluntary prepayment) from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or
EnergySolutions (in the case of all other amounts); (iii) such assignment
will result in a reduction in such compensation or payments thereafter; and (iv) such
assignment does not conflict with Applicable Law.  A Lender shall not be required to make any
such assignment or delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling EnergySolutions to require
such assignment and delegation cease to apply. 
Each Lender agrees that, if EnergySolutions elects to replace such
Lender in accordance with this Section, it shall promptly execute and deliver
to the Administrative Agent an Assignment and Assumption Agreement to evidence
such sale and purchase and shall deliver to the Administrative Agent any Note
(if Notes have been issued in respect of such Lender’s Loans) subject to such Assignment
and Assumption Agreement; provided that the failure of any such non-

 

121

 

consenting Lender to execute an Assignment
and Assumption Agreement shall not render such sale and purchase (and the
corresponding assignment) invalid and such assignment shall be recorded in the
Register.

 

Section 10.4                                          Effect on Other
Loans.

 

(a)                                  If notice has
been given pursuant to Section 10.1, 10.2 or 10.3
suspending the obligation of any Lender to make or continue Eurodollar Option
Loans, or requiring Eurodollar Option Loans of any Lender to be repaid or
prepaid, then, unless and until such Lender notifies EnergySolutions that the
circumstances giving rise to such repayment no longer apply, all Loans which
would otherwise be made or continued as Eurodollar Option Loans shall, at the
option of EnergySolutions, be made or continued instead as Base Rate Option
Loans.

 

(b)                                 If, with
respect to any Eurodollar Option Loan, Lenders owed at least 51% of the then
aggregate unpaid principal amount thereof notify the Administrative Agent that
the Eurodollar Rate for any Interest Period for such Loan will not adequately
reflect the cost to such Lenders of making, funding or maintaining their
Eurodollar Option Loans for such Interest Period, the Administrative Agent
shall forthwith so notify EnergySolutions and the Lenders which have made such
Loan, whereupon (i) such Eurodollar Revolving Loan will automatically, on
the last day of the then existing Interest Period therefor, be reborrowed as a
Base Rate Revolving Loan, (ii) such Eurodollar Term Loan will automatically,
on the last day of the then existing Interest Period therefor, be continued as
a Base Rate Term Loan and (iii) the obligation of the Lenders which have
made such Loan to make further or continue Eurodollar Option Loans shall be
suspended until the Administrative Agent shall notify EnergySolutions that such
Lenders have determined that the circumstances causing such suspension no
longer exist.

 

ARTICLE
11.

Miscellaneous

 

Section 11.1                                          Notices.

 

(a)                                  All notices and
other communications provided for hereunder shall be in writing (including fax
or e-mail communication) and mailed, telecopied or delivered.  All such notices and other communications
shall, when mailed, faxed or e-mailed, be effective when deposited in the
mails, transmitted by fax or e-mail, except that notices and communications to
any Agent pursuant to Article 2, 3 or 9 shall not be
effective until received by such Agent. 
All notices and other communications under this Agreement shall be given
to the parties hereto at the following addresses:

 

122

 

(i)                                     If to
EnergySolutions, to it at:

 

EnergySolutions LLC

423 West 300 South

Salt Lake City, UT  84101

Attn:  Philip Strawbridge

Tel:  (801) 649-2298

Fax:  (801) 413-5649

E-mail:  pstrawbridge@energysolutions.com

 

If to the Administrative Agent, to it at:

Citicorp North America, Inc.

390 Greenwich Street

New York, NY  10013

Attn:  James Granello, Director,
Leveraged Finance

Tel:  (212) 723-4955

E-mail:  james.granello@citi.com

 

with a copy to such counsel to the
Administrative Agent as the Administrative Agent may designate in writing from
time to time.

 

(ii)                                  If to the
Lender Parties, to them at the addresses set forth beside their names on Schedules
4-A, 4-B and 4-C.

 

Copies shall be provided to Persons other
than parties hereto only in the case of notices under Article 8
hereof.

 

(b)                                 Any party
hereto may change the address to which notices shall be directed under this Section 11.1
by giving ten (10) days’ written notice of such change to the other parties.

 

(c)                                  Delivery by fax
of an executed counterpart of a signature page to any amendment or waiver
of any provision of this Agreement or the Notes or of any Exhibit hereto
to be executed and delivered hereunder shall be effective as delivery of an original
executed counterpart thereof.  Electronic
mail and Internet and intranet websites may be used by the Administrative Agent
and/or the Agents to distribute communications, such as financial statements
and other information as provided in Article 6, and to distribute
Loan Documents for execution by the parties thereto, and the Administrative
Agent and the Agents shall not be responsible for any losses, costs, expenses
and liabilities that may arise by reason of the use thereof, except for their
own gross negligence or willful misconduct. 
The Administrative Agent and the parties shall be entitled to rely and
act upon any notices (including telephonic notices) purportedly given by or on
behalf of EnergySolutions even if (i) such notices were not made in a manner
specified herein, were incomplete or were not preceded or followed by any form
of notice specified herein, or (ii) the terms thereof, as understood by
the recipient, varied from any confirmation thereof.  No Agent and no Lender Party shall be liable
or responsible for any loss, cost, expense or liability resulting from the
reliance by such Person on each notice purportedly given by or on behalf of
EnergySolutions in accordance with this Agreement, other than, with respect to
any Agent or 

 

123

 

Lender Party, the losses, costs, expenses and
liabilities that result from the gross negligence or willful misconduct of such
Agent or Lender Party.  All telephonic
notices to and other communications with the Administrative Agent may be recorded
by the Administrative Agent, and each of the parties hereto hereby consents to
such recording.

 

Section 11.2                                          Costs and
Expenses.

 

(a)                                  EnergySolutions
will promptly pay, or reimburse, without duplication:

 

(i)                                     all reasonable
out-of-pocket expenses of the Administrative Agent or the Collateral Agent in
connection with the preparation, structuring, due diligence, negotiation,
execution, delivery, syndication and administration of this Agreement and the
other Loan Documents and the transactions related hereto, contemplated
hereunder and thereunder and the making of the initial Loans hereunder (whether
or not such Loans are made), including, but not limited to, the reasonable fees
and disbursements of Cahill Gordon & Reindel LLP,
special counsel for the Arranger;

 

(ii)                                  all reasonable
out-of-pocket expenses of the Administrative Agent or the Collateral Agent in
connection with the administration of the transactions contemplated in this
Agreement or the other Loan Documents, the restructuring and “work out” of such
transactions and the preparation, negotiation, execution and delivery of any
waiver, amendment or consent, whether or not such waiver, amendment or consent
shall become effective, by the Administrative Agent and the Lender Parties
relating to this Agreement or the other Loan Documents, including, but not
limited to, the reasonable fees and disbursements of any experts, agents or
consultants and of special counsel for the Administrative Agent or the
Collateral Agent (limited to one outside counsel to the Administrative Agent
and the Collateral Agent and such local counsel as may be necessary for the
Administrative Agent and the Collateral Agent), but excluding any assignment
fee pursuant to Section 11.5(b) hereof; and

 

(iii)                               all
out-of-pocket costs and expenses of the Administrative Agent or the Collateral
Agent and the Lenders in connection with the enforcement of this Agreement or
the other Loan Documents and all out-of-pocket costs and expenses of collection
if an Event of Default occurs in the payment of the Loans or the other Obligations,
whether in any action, suit or litigation, or any bankruptcy, insolvency,
liquidation, or other similar proceeding affecting creditors’ rights generally,
which in each case shall include reasonable fees and out-of-pocket expenses of
one respective outside counsel and such local counsel as may be necessary for
the Administrative Agent, the Collateral Agent and the Lenders.

 

(b)                                 EnergySolutions
also agrees not to assert any claim against any Agent, any Lender Party or any
of their Affiliates, or any of their respective officers, directors, employees,
agents and advisors, on any theory of liability, for special, indirect,
consequential or punitive damages arising out of or otherwise relating to the
Commitments, the actual or proposed use of the proceeds of any Loan or Letter
of Credit, the Loan Documents or any of the transactions contemplated by the
Loan Documents.

 

124

 

(c)                                  If any Loan
Party fails to pay when due any costs, expenses or other amounts payable by it
under any Loan Document, including, without limitation, fees and expenses of
counsel and indemnities, such amount may be paid on behalf of such Loan Party
by the Administrative Agent.

 

Section 11.3                                          Waivers.

 

The rights and remedies of the Administrative Agent,
the Collateral Agent and the Lender Parties under this Agreement and the other
Loan Documents shall be cumulative and not exclusive of any rights or remedies
which they would otherwise have.  No
failure or delay by the Administrative Agent, the Collateral Agent or the
Lender Parties, or any of them, in exercising any right shall operate as a
waiver of such right.  The Administrative
Agent and the Lender Parties expressly reserve the right to require strict
compliance with the terms of this Agreement in connection with any future
funding of a request for a Loan.  In the
event the Lender Parties decide to fund a Loan or issue a Letter of Credit at a
time when EnergySolutions is not in strict compliance with the terms of this
Agreement, such decision by the Lender Parties shall not be deemed to
constitute an undertaking by the Lender Parties to fund any further Loans, to
issue any further Letter of Credit or to preclude the Lender Parties and the Administrative
Agent from exercising any rights available under the Loan Documents or at law
or equity.  Any waiver or indulgence
granted by the Administrative Agent, the Lender Parties or the Majority Lenders
shall not constitute a modification of this Agreement, except to the extent
expressly provided in such waiver or indulgence, or constitute a course of
dealing at variance with the terms of this Agreement such as to require further
notice of their intent to require strict adherence to the terms of this
Agreement in the future.

 

Section 11.4                                          Set-Off.

 

In addition to any rights now or hereafter granted
under Applicable Law and not by way of limitation of any such rights, upon the
occurrence of an Event of Default and during the continuation thereof, the
Administrative Agent and the Lender Parties are hereby authorized by EnergySolutions
at any time or from time to time, without notice to EnergySolutions or to any
other Person, any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special, time or
demand, including, but not limited to, Indebtedness evidenced by certificates
of deposit, in each case whether matured or unmatured) and any other
Indebtedness at any time held or owing by any Lender Party or the
Administrative Agent to or for the credit or the account of EnergySolutions or
any of its Subsidiaries against and on account of the Obligations irrespective
of whether (a) any Lender Party or the Administrative Agent shall have made
any demand hereunder or (b) the Administrative Agent shall have declared
the principal of and interest on the Loans and other amounts due hereunder to
be due and payable as permitted by Section 8.2 and although such
Obligations or any of them shall be contingent or unmatured.  Upon direction by the Administrative Agent
with the consent of the Majority Lenders, each Lender Party holding deposits of
EnergySolutions or any of its Subsidiaries shall exercise its set-off rights as
so directed.

 

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Section 11.5                                          Binding Effect
and Assignment.

 

(a)                                  This Agreement
shall become effective when it shall have been executed by EnergySolutions and
each Agent and the Administrative Agent shall have been notified by each Lender
party hereto, and EnergySolutions shall have been notified by the
Administrative Agent, that each such Lender party hereto has executed it and
thereafter shall be binding upon and inure to the benefit of EnergySolutions,
each Agent and each such Lender and their respective successors and assigns,
except that EnergySolutions shall not have the right to assign its rights hereunder
or any interest herein without the prior written consent of all of the Lenders.

 

(b)                                 Each Lender may
enter freely into participation agreements with respect to or otherwise grant
participations in its Loans and Synthetic Deposits to one or more banks or
other lenders or financial institutions; provided, however, that (i) such
Lender’s obligations hereunder shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) the participant shall not be entitled by the
benefit of its participation to vote or otherwise take action under this
Agreement or any other Loan Document, except with respect to the matters
referred to in Section 11.12 hereof relating to the matters in
which affected Lenders are required to vote or all Lenders are required to
vote, (iv) such Lender shall deliver to the Administrative Agent and
EnergySolutions (in such number of copies as shall be reasonably requested by
the recipient) duly signed and properly completed copies of Internal Revenue
Service Form W-8 IMY (or any successor thereto) for each participant, and (v) EnergySolutions
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations hereunder. 
In addition, each Lender may sell up to 100%, assign or create a
security interest in all or any portion of its rights hereunder and under the
other Loan Documents to any other Person on an assignment basis; provided
that (A) (I) at any time hereunder, such assignment is to an
Affiliate of the assignor, an Approved Fund, another Lender or any Conduit
Lender, (II) prior to a date to be separately agreed among EnergySolutions,
Parent and the Arranger (the “Syndication Date”), such assignment is
made by the Administrative Agent in connection with syndication of any of the
Loans, (III) prior to the Syndication Date, the Administrative Agent has
given its written consent to the proposed assignee of a Lender hereunder or (IV) after
the Syndication Date, EnergySolutions (unless there exists at the time of such
assignment an Event of Default hereunder) and the Administrative Agent have
given their prior written consent to the proposed assignee of a Lender
hereunder, which consents shall not be unreasonably delayed, conditioned or
withheld, and (B) each such assignment shall be in a principal amount of
not less than the lesser of (I) the entire amount of such Lender’s interest
hereunder or (II) $1,000,000 (calculated for the Term Loans and the
Synthetic Deposits on a combined basis with such Lender’s contemporaneous
assignment of its Duratek Loans) unless an assignment is from one Lender to
another or to an Approved Fund or an Affiliate of a Lender, in which case there
shall be no minimum assignment amount. 
Each Lender who sells or assigns a portion of its Loans or Synthetic
Deposits pursuant hereto shall pay to the Administrative Agent an assignment
fee of $3,500 with respect to each assignment (except that one such fee shall
be payable in connection with simultaneous assignments (i) to or by two or
more Approved Funds and (ii) of Duratek Loans), such fee to be paid to the
Administrative Agent not later than the effective date of the assignment of the
Loan or Synthetic Deposit relating thereto. 
All assignments by any of the Lenders of any interests hereunder shall
be made pursuant to an Assignment and Assumption Agreement.  Each Lender may provide any proposed
participant or assignee with confidential information provided to such Lender
regarding EnergySolutions, Parent 

 

126

 

and the Subsidiaries on a confidential basis,
and such participant or assignee shall agree to maintain such confidentiality
in accordance with the provisions of Section 11.19 hereof.  Further, each permitted assignee or participant
with respect to any portion of the Loans shall be entitled to the benefits, and
subject to the burdens, of Sections 2.11, 2.13, 2.14 and Article 10
hereof and all other provisions hereof and of the other Loan Documents as a “Lender”
hereunder.  Each Participant shall be
entitled to the benefits of Sections 2.11, 2.13 and 2.14
and Article 10 (subject to the requirements of those Sections) to
the same extent as if it were a Lender, but no participant shall be entitled to
a greater payment under Section 2.14 than the applicable Lender
would have been entitled to receive with respect to the participation
sold.  Upon the grant of a participation
of its commitment by a Lender pursuant to this Section 11.5(b),
such Lender (on behalf of EnergySolutions) shall maintain a register analogous
to the Register described in Section 11.5(c) below.  Notwithstanding anything to
the contrary set forth herein, each assignment by a Lender of its Term Loans or
Synthetic Deposits (other than Synthetic A Deposits) hereunder shall be made
concurrently with the ratable assignment of all or a portion of such Lender’s (i) Duratek Loans (ii) Synthetic
Deposits (other than Synthetic A Deposits) or Term Loans, as applicable, and no
assignment of the Term Loans or Synthetic Deposits (other than Synthetic A Deposits) shall be made
by any Lender hereunder unless such Lender makes a simultaneous ratable
assignment of all or a portion of its Duratek Loans and its Synthetic Deposits (other than
Synthetic A Deposits) or Term Loans, as applicable.  Before and after any assignment of Term Loans
or Synthetic Deposits (other than Synthetic A Deposits) by any Lender,
the ratios of (i) such Lender’s Term Loans to the aggregate principal
amount of Term Loans outstanding, (ii) such Lender’s Synthetic Deposits (other than
Synthetic A Deposits) to the aggregate amount of Synthetic Deposits (other than
Synthetic A Deposits) and (iii) such Lender’s Duratek Loans to the
aggregate principal amount of Duratek Loans outstanding, shall be identical; provided
that immaterial deviations of the ratable assignment provisions of this Section 11.5(b) shall
be permitted.

 

(c)                                  The
Administrative Agent, acting for this purpose as an agent of EnergySolutions,
shall maintain a copy of each Assignment and Assumption Agreement delivered to
it and a register for the recordation of the names and addresses of the Lenders
and the Commitments of and the principal amount of the Loans owing to each
Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, absent manifest error, and EnergySolutions, the Administrative
Agent and the Lenders shall treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection
at the offices of the Administrative Agent by EnergySolutions or any Lender, at
any reasonable time during normal business hours and from time to time upon
reasonable prior notice.  Each Lender
agrees to provide the Administrative Agent and EnergySolutions with written
notice of the assignment of all or part of its rights hereunder.  Upon the Administrative Agent’s receipt of a
duly completed Assignment and Assumption Agreement executed by an assigning
Lender and an assignee Lender, the assignee’s completed administrative
questionnaire (unless the assignee is already a Lender), the fee referred to in
Section 11.5(b) above and any written consent to such
assignment required thereby, the Administrative Agent shall accept such
Assignment and Assumption Agreement and record the information contained
therein in the Register.  No assignment
shall be effected for purposes of this Agreement unless it has been recorded in
the Register as provided in this paragraph. 
In connection with each assignment of Synthetic Deposits, the Synthetic
Deposit of the assignor Lender shall not be released, but shall instead be
purchased by the relevant assignee and continue to be held for application (to
the extent 

 

127

 

not already applied) in accordance with Article II
to satisfy such assignee’s obligations in respect of Synthetic Deposit Letters
of Credit.  Each Synthetic Lender agrees
that immediately prior to each assignment by a Synthetic Lender (i) the
Administrative Agent shall establish a new Synthetic Deposit Sub-Account in the
name of the assignee, (ii) unless otherwise consented to by the
Administrative Agent, a corresponding portion of the Synthetic Deposit credited
to the Synthetic Deposit Sub-Account of the assignor Lender shall be purchased
by the assignee and shall be transferred from the assignor’s Synthetic Deposit
Sub-Account to the assignee’s Synthetic Deposit Sub-Account and (iii) if
after giving effect to such assignment the Synthetic Deposit of the assignor Lender
shall be zero, the Administrative Agent shall close the Synthetic Deposit
Sub-Account of such assignor Lender.

 

(d)                                 Notwithstanding
anything to the contrary contained in this Section 11.5, any Lender
that is a fund that invests in bank loans may (without the consent of EnergySolutions
or the Administrative Agent) pledge all or a portion of its rights in connection
with this Agreement to the trustee or any holder of obligations or agents therefor
owed, or securities issued, by such fund as security for such obligations or
securities.  No pledge described in the
immediately preceding sentence shall release any such Lender from its
obligations hereunder.

 

(e)                                  The Revolving
Issuing Bank may assign to an assignee all of its rights and obligations under
the undrawn portion of its Revolving Letter of Credit Commitment at any time; provided,
however, that (i) each such assignment shall be made in accordance
with clause (A) of the second proviso in Section 11.5(b) and
(ii) the parties to each such assignment shall execute and deliver to the
Administrative Agent, for its acceptance and recording in the Register, an
Assignment and Assumption Agreement, together with a processing and recordation
fee of $3,500.  The Revolving Issuing
Bank shall promptly notify EnergySolutions of such Assignment.

 

(f)                                    Except as
specifically set forth in Section 11.5(b) hereof, nothing in
this Agreement or any Notes, express or implied, is intended to or shall confer
on any Person other than the respective parties hereto and thereto and their
successors and assignees permitted hereunder and thereunder any benefit or any
legal or equitable right, remedy or other claim under this Agreement or any
Notes.

 

(g)                                 The provisions
of this Section 11.5 shall not apply to any purchase of participations
among the Lenders pursuant to Section 2.12 hereof.

 

(h)                                 Notwithstanding
anything to the contrary contained herein, any Lender Party (a “Granting
Lender”) may grant to a special purpose funding vehicle identified as such
in writing from time to time by the Granting Lender to the Administrative Agent
and EnergySolutions (a “Conduit Lender”) the option to provide all or
any part of any Loan that such Granting Lender would otherwise be obligated to
make pursuant to this Agreement; provided that (i) nothing herein
shall constitute a commitment by any Conduit Lender to fund any Loan, and (ii) if
a Conduit Lender elects not to exercise such option or otherwise fails to make
all or any part of such Loan, the Granting Lender shall be obligated to make
such Loan pursuant to the terms hereof. 
The making of a Loan by a Conduit Lender hereunder shall utilize the
applicable Commitment of the Granting Lender to the same extent, and as if,
such Loan were made by such Granting Lender. 
Each party hereto hereby agrees that (i) no Conduit Lender shall be
liable for any indemnity or similar payment obligation under this Agreement for
which a Lender Party would be 

 

128

 

liable, (ii) no Conduit Lender shall be
entitled to the benefits of Sections 2.13, 2.14 and 10.3
(or any other increased costs protection provision) to any greater extent than
the Granting Lender would have been entitled absent the use of a Conduit Lender
and (iii) the Granting Lender shall for all purposes, including, without
limitation, the approval of any amendment or waiver of any provision of any
Loan Document, remain the Lender Party of record hereunder.  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior
Indebtedness of any Conduit Lender, it will not institute against, or join any
other Person in instituting against, such Conduit Lender any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding under the
laws of the United States or any State thereof. 
Notwithstanding anything to the contrary contained in this Agreement,
any Conduit Lender may (i) with notice to, but without prior consent of,
EnergySolutions and the Administrative Agent and without paying any processing
fee therefor, assign all or any portion of its interest in any Loan to the
Granting Lender and (ii) disclose on a confidential basis any non-public
information relating to its funding of advances to any rating agency,
commercial paper dealer or provider of any surety or guarantee or credit or
liquidity enhancement to such Conduit Lender. 
This Section 11.5(h) may not be amended without the
prior written consent of each Granting Lender all or any part of whose Loans
are being funded by a Conduit Lender at the time of such amendment.

 

(i)                                     Notwithstanding
any contrary provision of this Section 11.5, any Lender may at any
time pledge the Obligations held by it and such Lender’s rights under this
Agreement and the other Loan Documents to a Federal Reserve Bank; provided
that no such pledge to a Federal Reserve Bank shall release such Lender from
such Lender’s obligations hereunder or under any other Loan Document.

 

Section 11.6                                          Accounting
Principles.

 

Except as set forth in the following sentence,
references in this Agreement to GAAP shall be to such principles as defined in Section 1.4,
and all accounting terms used herein without definition shall be used as
defined under GAAP.  All references to
Operating Cash Flow, Debt Service and other such terms shall be deemed to refer
to such items of EnergySolutions or Parent and their respective Subsidiaries on
a consolidated basis, consistently applied, unless otherwise indicated herein.

 

Section 11.7                                          Counterparts.

 

This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute but one and the same instrument.

 

Section 11.8                                          Governing Law
and Jurisdiction.

 

(a)                                  THIS AGREEMENT,
ANY NOTES AND ANY LOAN DOCUMENTS SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS
MADE AND TO BE PERFORMED IN NEW YORK.

 

129

 

(b)                                 EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND
ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF ANY NEW YORK STATE COURT OR
FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW YORK CITY, AND ANY
APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS TO WHICH IT IS A
PARTY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
ANY SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY LAW, IN
SUCH FEDERAL COURT.  EACH OF THE PARTIES
HERETO AGREES THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT SHALL AFFECT ANY
RIGHT THAT ANY PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS IN THE COURTS OF
ANY JURISDICTION.

 

(c)                                  EACH OF THE
PARTIES HERETO IRREVOCABLY AND UN-CONDITIONALLY WAIVES, TO THE FULLEST EXTENT
IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION THAT IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS TO
WHICH IT IS A PARTY IN ANY NEW YORK STATE OR FEDERAL COURT.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

Section 11.9                                          Severability.

 

Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof in that jurisdiction or affecting the validity or enforceability of such
provision in any other jurisdiction.

 

Section 11.10                                    Interest.

 

(a)                                  In no event
shall the amount of interest due or payable hereunder or under any Notes exceed
the maximum rate of interest allowed by Applicable Law, and in the event any
such payment is inadvertently made by EnergySolutions or inadvertently received
by any Lender, then such excess sum shall be credited as a payment of
principal, unless EnergySolutions shall notify the Administrative Agent or such
Lender in writing that it elects to have such excess returned forthwith.  It is the express intent hereof that
EnergySolutions not pay and the Lenders not receive, directly or indirectly in
any manner whatsoever, interest in excess of that which may legally be paid by
EnergySolutions under Applicable Law.

 

130

 

(b)                                 Notwithstanding
the use by the Lenders of the Base Rate, the Federal Funds Rate and the
Eurodollar Rate as reference rates for the determination of interest on the
Loans, the Lenders shall be under no obligation to obtain funds from any
particular source in order to charge interest to EnergySolutions at interest
rates related to such reference rates.

 

Section 11.11                                    Table of Contents and
Headings.

 

The Table of Contents and the headings of the
various subdivisions used in this Agreement are for convenience only and shall
not in any way modify or amend any of the terms or provisions hereof, nor be
used in connection with the interpretation of any provision hereof.

 

Section 11.12                                    Amendment and Waiver.

 

Neither this Agreement nor any other Loan Document
nor any term hereof or thereof may be amended orally, nor may any provision
hereof or thereof be waived orally but only by an instrument in writing signed
by the Administrative Agent (or, in the case of Security Documents executed by
the Collateral Agent for itself and on behalf of the Secured Parties, signed by
the Collateral Agent and approved by) and the Majority Lenders and, in the case
of an amendment, by EnergySolutions, except that (a) any amendment or
waiver or consent relating to (i) any delay or extension in the terms of
repayment or of the expiration date of any Commitment or Synthetic Deposit or
change in the order of application of repayment or application in the reduction
of any Commitment of the Loans provided in Section 2.4 or Section 2.8
hereof shall be made only with the written consent by each Lender Party
directly affected thereby, (ii) any reduction in principal, interest
(other than as a result of any waiver in respect of the Default Rate), premium
or fees due hereunder or postponement of the payment thereof shall be made only
with the written consent by each Lender Party directly affected thereby, (iii) the
release of all or substantially all of the Collateral for the Loans shall be
made only with the written consent by each Lender Party, (iv) any waiver
of any Default due to the failure by EnergySolutions to pay any sum due to any
of the Lenders hereunder shall be made only with the written consent by each
Lender Party directly affected thereby, (v) any release of Holdco, Parent
or any material Subsidiary Guarantor from its Guaranty of all or any portion of
the Obligations, except in connection with a merger, sale or other disposition
otherwise permitted hereunder, shall be made only with the written consent by
each Lender Party, (vi) any portion of Section 2.6, 2.8,
2.10, 2.12 or 8.3, as it relates to the relative priority
of payment among the Obligations or any other provision of this Agreement or
any of the other Loan Documents specifically requiring the consent or approval
of each of the Lender Parties directly affected thereby shall be made only with
the written consent by each Lender Party directly affected thereby, (vii) any
amendment of this Section 11.12, the definition of “Majority
Lenders” or any other change or modification of any of the voting percentage
requirements hereunder shall be made only with the written consent by each
Lender Party, (viii) any amendment that extends the Eurodollar Period
beyond six months shall be made with the consent of each Lender directly affected
thereby and (ix) any amendment, waiver or modification of the prepayment
provisions of Section 2.6 or Section 2.8, or any change
in the definitions related thereto, shall be made only with the written consent
by each Lender Party directly affected thereby, (b) any amendment relating
to any increase in any Commitment of any Lender shall be made only by an
instrument in writing signed by such Lender, the Administrative Agent and EnergySolutions,
(c) no amendment, waiver or consent shall, unless in writing and signed by
the Revolving Issuing Bank, in addition to the Lenders required above, affect
the rights or duties of 

 

131

 

the Revolving Issuing Bank under this
Agreement or any Revolving Letter of Credit Agreement, (d) no amendment,
waiver or consent shall, unless in writing and signed by the Synthetic Issuing
Bank, in addition to the Lenders required above, affect the rights or duties of
the Synthetic Issuing Bank under this Agreement or any Synthetic Letter of
Credit Agreement, (e) the Fee Letter may be amended or otherwise modified
by the parties thereto without the consent of, or notice to, any other Person
and (f) no amendment or modification that would require the Revolving Lenders
to make a Loan or other extension of credit at a time they otherwise would not
be required to do so shall be effective without the prior written consent of
the Majority Revolving Lenders.  Any
amendment to any provision hereunder governing the rights, obligations or
liabilities of the Administrative Agent in its capacity as such may be made
only by an instrument in writing signed by the Administrative Agent and by each
of the Lender Parties.

 

If, in connection with any proposed change, waiver,
discharge or termination of or to any of the provisions of this Agreement
(other than as contemplated by clause (b) above), and the consent of all
Lenders required hereunder would have been obtained but for any Lender’s
failure to consent (such Lender, a “Non-Consenting Lender”) and the
consent of Majority Lenders is obtained but the consent of one or more of such
other Lenders whose consent is required is not obtained, then EnergySolutions
shall have the right, so long as all Non-Consenting Lenders whose individual
consent is required are treated as described in either clause (i) or (ii) below,
to either (i) replace each such Non-Consenting Lender or Lenders (or, at
the option of EnergySolutions if the respective Lender’s consent is required
with respect to less than all Loans (or related Commitments or Synthetic
Deposits), to replace only the Commitments, Synthetic Deposits and/or Loans of
the respective Non-Consenting Lender that gave rise to the need to obtain such
Lender’s individual consent) with one or more assignees pursuant to, and with
the effect of an assignment under, Section 10.3 so long as at the
time of such replacement, each such assignee consents to the proposed change,
waiver, discharge or termination or (ii) terminate such Non-Consenting
Lender’s Commitment (if such Lender’s consent is required as a result of its Commitment)
and/or repay all outstanding Loans or refund the Synthetic Deposit of such
Lender that gave rise to the need to obtain such Lender’s consent in accordance
with this Agreement; provided that, unless the Commitments that are
terminated, Loans that are repaid and Synthetic Deposit that is refunded
pursuant to the preceding clause (ii) are immediately replaced in full at
such time through the addition of new Lenders or the increase of the
Commitments and/or outstanding Loans of existing Lenders (who in each case must
specifically consent thereto), then in the case of any action pursuant to the
preceding clause (ii), the Majority Lenders (determined after giving effect to
the proposed action) shall specifically consent thereto.  In addition, any waiver, amendment or
modification of this Agreement that by its terms affects the rights or duties
under this Agreement of the Revolving Lenders (but not the Term Lenders or
Synthetic Lenders) or the Term Lenders (but not the Revolving Lenders or
Synthetic Lenders) or the Synthetic Lenders (but not the Term Lenders or the
Revolving Lenders) may be effected by an agreement or agreements in writing
entered into by EnergySolutions and the requisite percentage in interest of the
affected class of Lenders that would be required to consent thereto under this Section 11.12
if such Lenders were the only Lenders hereunder at the time; provided  further
that EnergySolutions shall pay to any Non-Consenting Lender any premium that
would be payable in the event of a prepayment on such date.

 

132

 

Section 11.13                                    Entire Agreement.

 

Except as otherwise expressly provided herein, this
Agreement and the other documents described or contemplated herein embody the
entire agreement and understanding among the parties hereto and thereto and
supersede all prior agreements and understandings relating to the subject
matter hereof and thereof.

 

Section 11.14                                    Other Relationships.

 

No relationship created hereunder or under any other
Loan Document shall in any way affect the ability of the Administrative Agent
or its Affiliates and each Lender Party or its respective Affiliates to enter
into or maintain business relationships with EnergySolutions or any of its Affiliates
beyond the relationships specifically contemplated by this Agreement and the
other Loan Documents.

 

Section 11.15                                    Directly or Indirectly.

 

If any provision in this Agreement refers to any
action taken or 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, whether or not expressly specified in
such provision.

 

Section 11.16                                    Reliance on and Survival of
Various Provisions.

 

All covenants, agreements, statements,
representations and warranties made herein or in any certificate delivered
pursuant hereto (a) shall be deemed to have been relied upon by the
Administrative Agent and each of the Lender Parties notwithstanding any investigation
heretofore or hereafter made by them and (b) shall survive the execution
and delivery of this Agreement and shall continue in full force and effect so
long as any Obligation is outstanding and unpaid.  Any right to indemnification hereunder, including,
without limitation, rights pursuant to Sections 2.11, 2.13, 2.14,
5.11, 9.11, 10.3 and 11.2 hereof, shall survive the
termination of this Agreement and the payment and performance of all other Obligations.

 

Section 11.17                                    Senior Debt.

 

The Indebtedness of EnergySolutions evidenced by
this Agreement is secured by the Security Documents and is intended by the parties
hereto to be in parity with the Secured Hedge Agreements in effect from time to
time (with respect to Secured Obligations under Secured Hedge Agreements) and
senior in right of payment to any other investors of EnergySolutions.

 

Section 11.18                                    Obligations Several.

 

The obligations of the Administrative Agent and each
of the Lender Parties hereunder are several, not joint.

 

133

 

Section 11.19                                    Confidentiality.

 

The Lender Parties shall hold all information which
has been identified as non-public, proprietary or confidential by
EnergySolutions obtained pursuant to the requirements of this Agreement in
accordance with their customary procedures for handling confidential information
of this nature and in accordance with safe and sound financial service industry
practices; provided, however, that the Lender Parties may make
disclosure of any such information (a) to their examiners, Affiliates,
outside auditors, counsel, consultants, appraisers and other professional
advisors in connection with this Agreement; (b) to any pledgee referred to
in Section 11.5(d) or any direct or indirect contractual
counterparty in swap agreements or such contractual counterparty’s professional
advisor (so long as such pledgee, contractual counterparty or professional
advisor to such contractual counterparty agrees to be bound by the provisions
of this Section 11.19); (c) to the National Association of
Insurance Commissioners or any similar organization or any nationally
recognized rating agency that requires access to information about a Lender
Party’s investment portfolio in connection with ratings issued with respect to
such Lender Party; (d) as reasonably required by any proposed syndicate
member or any proposed transferee or participant in connection with the
contemplated transfer of any Loans or participation therein (so long as such
proposed syndicate member or proposed transferee or participant agrees to be
bound by the provisions of this Section 11.19); (e) as
required or requested by any governmental authority or representative thereof; (f) in
connection with the exercise of any right or remedy under this Agreement, the
Secured Hedge Agreements, any other Loan Document or related document; (g) as
required by any law, rule, regulation or judicial process; or (h) with
respect to any litigation to which any Loan Party, any Agent, any Lender Party
or any of their Affiliates is a party. 
In no event shall any Lender Party be obligated or required to return
any materials furnished to it by EnergySolutions.  The foregoing provisions shall not apply to a
Lender Party with respect to information that (i) is or becomes generally
available to the public (other than through a breach of this Section 11.19
by such Lender Party), (ii) is already in the possession of such Lender
Party on a nonconfidential basis, or (iii) comes into the possession of
such Lender Party in a manner not known to such Lender Party to involve a
breach of a duty of confidentiality owing to EnergySolutions.

 

Section 11.20                                    No Liability of the Issuing
Banks.

 

EnergySolutions assumes all risks of the acts or
omissions of any beneficiary or transferee of any Letter of Credit with respect
to its use of such Letter of Credit. 
Neither the Issuing Banks nor any of their officers or directors shall
be liable or responsible for (a) the use that may be made of any Letter of
Credit or any acts or omissions of any beneficiary or transferee in connection
therewith; (b) the validity, sufficiency or genuineness of documents, or
of any endorsement thereon, even if such documents should prove to be in any or
all respects invalid, insufficient, fraudulent or forged; (c) payment by
either Issuing Bank against presentation of documents that do not comply with
the terms of a Letter of Credit, including failure of any documents to bear any
reference or adequate reference to the Letter of Credit; or (d) any other
circumstances whatsoever in making or failing to make payment under any Letter
of Credit, except that EnergySolutions shall have a claim against the Issuing
Banks, and the Issuing Banks shall be liable to EnergySolutions, to the extent
of any direct, but not consequential, damages suffered by EnergySolutions that
EnergySolutions proves were caused by (i) the Issuing Banks’ willful
misconduct, gross negligence or breach of any Loan Document as determined in a
final, non-appealable 

 

134

 

judgment by a court of competent jurisdiction
in determining whether documents presented under any Letter of Credit comply
with the terms of the Letter of Credit or (ii) the Issuing Banks’ willful
failure to make lawful payment under a Letter of Credit after the presentation
to it of a draft and certificates strictly complying with the terms and
conditions of the Letter of Credit.  In
furtherance and not in limitation of the foregoing, the Issuing Banks may
accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary.

 

Section 11.21                                    Patriot Act Notice.

 

Each Lender Party and the Administrative Agent (for
itself and not on behalf of any Lender Party) hereby notifies the Loan Parties
that pursuant to the requirements of the Patriot Act, it is required to obtain,
verify and record information that identifies each Loan Party, which
information includes the name and address of such Loan Party and other information
that will allow such Lender Party or the Administrative Agent, as applicable,
to identify such Loan Party in accordance with the Patriot Act.  EnergySolutions shall, and shall cause each
of its Subsidiaries to, provide, to the extent commercially reasonable, such
information and take such actions as are reasonably requested by the
Administrative Agent or any Lender Parties in order to assist the
Administrative Agent and the Lenders in maintaining compliance with the Patriot
Act.

 

Section 11.22                                    Performance.

 

If any performance (other than payment) under this
Agreement or any of the other Loan Documents is specified to be made on a day
which is not a Business Day, it shall be made on the next Business Day.

 

Section 11.23                                    The Platform.

 

EnergySolutions hereby agrees that it will provide
to the Administrative Agent all information, documents and other materials that
it is obligated to furnish to the Administrative Agent pursuant to the Loan
Documents, including, without limitation, all notices, requests, financial
statements, financial and other reports, certificates and other information
materials, but excluding any such communication that (i) relates to a
request for a new, or a conversion of an existing, borrowing or other extension
of credit (including any election of an interest rate or interest period
relating thereto), (ii) relates to the payment of any principal or other
amount due under this Agreement prior to the scheduled date therefor, (iii) provides
notice of any default or event of default under this Agreement or (iv) is
required to be delivered to satisfy any condition precedent to the
effectiveness of this Agreement and/or any borrowing or other extension of
credit thereunder (all such non-excluded communications being referred to
herein collectively as “Communications”), by transmitting the
Communications in an electronic/soft medium in a format acceptable to the
Administrative Agent to oploanswebadmin@citigroup.com.  In addition, EnergySolutions agrees to
continue to provide the Communications to the Administrative Agent in the
manner specified in the Loan Documents but only to the extent requested by the
Administrative Agent.

 

135

 

EnergySolutions further agrees that the
Administrative Agent may make the Communications available to the Lenders by
posting the Communications on Intralinks or a substantially similar electronic
transmission systems (the “Platform”).

 

THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF
THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN
THE COMMUNICATIONS.  NO WARRANTY OF ANY
KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE
AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM.  IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR
ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”)
HAVE ANY LIABILITY TO ENERGYSOLUTIONS, ANY LENDER OR ANY OTHER PERSON OR ENTITY
FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT,
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN
TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ENERGYSOLUTIONS’ OR THE
ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET,
EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL
NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED
PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

The Administrative Agent agrees that the receipt of
the Communications by the Administrative Agent at its e-mail address set forth
above shall constitute effective delivery of the Communications to the Agent
for purposes of the Loan Documents.  Each
Lender agrees that notice to it (as provided in the next sentence) specifying
that the Communications have been posted to the Platform shall constitute
effective delivery of the Communications to such Lender for purposes of the
Loan Documents.  Each Lender agrees to
notify the Administrative Agent in writing (including by electronic communication)
from time to time of such Lender’s e-mail address to which the foregoing notice
may be sent by electronic transmission and that the foregoing notice may be
sent to such e-mail address.

 

Nothing herein shall prejudice the right of the
Administrative Agent or any Lender to give any notice or other communication pursuant
to any Loan Document in any other manner specified in such Loan Document.

 

Section 11.24                                    Conversion of Currencies.

 

(a)                                  If, for the
purpose of obtaining judgment in any court, it is necessary to convert a sum
owing hereunder in one currency into another currency, each party hereto
agrees, to the fullest extent that it may effectively do so, that the rate of
exchange used shall be that at which in 

 

136

 

accordance with normal banking procedures in
the relevant jurisdiction the first currency could be purchased with such other
currency on the Business Day immediately preceding the day on which final
judgment is given.

 

(b)                                 The obligations
of EnergySolutions in respect of any sum due to any party hereto or any holder
of the obligations owing hereunder (the “Applicable Creditor”) shall, notwithstanding
any judgment in a currency (the “Judgment Currency”) other than the currency
in which such sum is stated to be due hereunder (the “Agreement Currency”),
be discharged only to the extent that, on the Business Day following receipt by
the Applicable Creditor of any sum adjudged to be so due in the Judgment
Currency, the Applicable Creditor may in accordance with normal banking
procedures in the relevant jurisdiction purchase the Agreement Currency with
the Judgment Currency; if the amount of the Agreement Currency so purchased is
less than the sum originally due to the Applicable Creditor in the Agreement
Currency, EnergySolutions agrees, as a separate obligation and notwithstanding
any such judgment, to indemnify the Applicable Creditor against such loss.  The obligations of EnergySolutions contained
in this Section 11.24 shall survive the termination of this
Agreement and the payment of all other amounts owing hereunder.

 

(c)                                  For purposes of
this Agreement, the Dollar Equivalent of the Available Amount of any Letter of
Credit shall be calculated on the date when such Letter of Credit is issued, on
the first Business Day of each month and at such other times as designated by
the Administrative Agent.  Such Dollar
Equivalent shall remain in effect until the same is recalculated by the Administrative
Agent as provided above and notice of such recalculation is received by EnergySolutions,
it being understood that until such notice is received, the Dollar Equivalent
shall be as last reported by the Administrative Agent to EnergySolutions.  The Administrative Agent shall promptly
notify EnergySolutions of each such determination of Dollar Equivalents.

 

ARTICLE
12.

 

Waiver
of Jury Trial

 

Section 12.1                                          Waiver of Jury
Trial.

 

EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN
DOCUMENTS, THE LOANS, THE LETTERS OF CREDIT OR THE ACTIONS OF ANY AGENT OR ANY
LENDER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT
THEREOF.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

137

 

IN WITNESS WHEREOF, the parties hereto have
caused this Third Amended and Restated Credit Agreement to be duly executed as
of the date first above written.

 

	
   

  	
   

  	
  ENERGYSOLUTIONS, LLC,

  
	
   

  	
   

  	
  a Utah limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard Tooze

  
	
   

  	
   

  	
  Name: Richard Tooze

  
	
   

  	
   

  	
  Title: Senior Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Taxpayer Identification Number: I4-1921823

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address of Principal Place of Business:

  
	
   

  	
   

  	
  423 West 300 South

  
	
   

  	
   

  	
  Salt Lake City, Utah 84101

  

 

 

	
  STATE OF

  	
  Utah

  	
  )

  
	
   

  	
   

  	
  )

  
	
  COUNTY OF

  	
  Salt Lake

  	
  )

  

 

On the day of September 17
in the year 2009, before me, the undersigned personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the instrument, personally appeared and acknowledged to me that
he or she executed the same in his or her capacity, and that by his or her
signature on the instrument the individual, or the person or entity upon behalf
of which the individual acted, executed the instrument.

 

	
   

  	
  /s/ Heidi Nakaishi

  
	
   

  	
  Notary

  
	
   

  	
   

  
	
   

  	
  [Notarial Seal]

  

 

[signatures continue on the following pages]

 

[THIRD AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  ENERGY SOLUTIONS, LLC,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Tooze

  
	
   

  	
  Name: Richard Tooze

  
	
   

  	
  Title: Senior Vice President and

  
	
   

  	
  Corporate Treasurer

  
	
   

  	
   

  
	
   

  	
  Taxpayer Identification Number: 51-0653027

  
	
   

  	
   

  
	
   

  	
  Address of Principal Place of Business:

  
	
   

  	
  423 West 300 South

  
	
   

  	
  Salt Lake City, Utah 84101

  

 

[signatures continue on the following pages]

 

[THIRD AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
  CITIGROUP GLOBAL MARKETS INC.,

  
	
   

  	
  as sole lead arranger and bookrunner

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stuart G. Dickson

  
	
   

  	
  Name: Richard Tooze

  
	
   

  	
  Title: Director

  

 

[THIRD AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  CITICORP NORTH AMERICA, INC.,

  
	
   

  	
  as Administrative Agent, collateral agent,
  successor

  agent, initial revolving issuing bank and
  initial 

  Term L/C Facility issuing bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Blake Gronich

  
	
   

  	
  Name: Blake Gronich

  
	
   

  	
  Title: Vice President

  

 

[THIRD AMENDED AND RESTATED CREDIT AGREEMENT]

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