Document:

Exhibit 10.2

 

AMENDED
AND RESTATED CREDIT AGREEMENT

 

Dated as of September 23, 2009

 

among

 

DURATEK, INC.

as Borrower

 

THE LENDERS FROM TIME TO TIME PARTY HERETO 

as Lenders

 

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

  	
  25

  
	
  Section 1.3

  	
  Computation
  of Time Periods; Other Definitional Provisions

  	
  26

  
	
  Section 1.4

  	
  Accounting
  Terms

  	
  26

  
	
  Section 1.5

  	
  Pro
  Forma Calculations

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  
	
   

  	
   

  	
   

  
	
  LOANS

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  The
  Loans

  	
  26

  
	
  Section 2.2

  	
  Manner
  of Borrowing and Disbursement

  	
  26

  
	
  Section 2.3

  	
  Interest

  	
  28

  
	
  Section 2.4

  	
  Repayment

  	
  29

  
	
  Section 2.5

  	
  [Reserved]

  	
  29

  
	
  Section 2.6

  	
  Optional
  Prepayments and Application of Prepayments

  	
  29

  
	
  Section 2.7

  	
  [Reserved]

  	
  30

  
	
  Section 2.8

  	
  Mandatory
  Prepayments

  	
  30

  
	
  Section 2.9

  	
  Evidence
  of Debt

  	
  31

  
	
  Section 2.10

  	
  Manner
  of Payment

  	
  32

  
	
  Section 2.11

  	
  Reimbursement

  	
  33

  
	
  Section 2.12

  	
  Pro
  Rata Treatment

  	
  34

  
	
  Section 2.13

  	
  Capital
  Adequacy

  	
  34

  
	
  Section 2.14

  	
  Taxes

  	
  35

  
	
  Section 2.15

  	
  [Reserved]

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  
	
   

  	
   

  	
   

  
	
  CONDITIONS PRECEDENT

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Conditions
  Precedent

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  
	
   

  	
   

  	
   

  
	
  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Representations
  and Warranties

  	
  41

  
	
  Section 4.2

  	
  Survival
  of Representations and Warranties, Etc.

  	
  49

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  
	
   

  	
   

  	
   

  
	
  GENERAL COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Preservation
  of Existence and Similar Matters

  	
  49

  
	
  Section 5.2

  	
  Business;
  Compliance with Applicable Law

  	
  49

  
	
  Section 5.3

  	
  Maintenance
  of Properties

  	
  50

  
	
  Section 5.4

  	
  Accounting
  Methods and Financial Records

  	
  50

  
	
  Section 5.5

  	
  Insurance

  	
  50

  
	
  Section 5.6

  	
  Payment
  of Taxes and Claims

  	
  51

  
	
  Section 5.7

  	
  Visits
  and Inspections

  	
  51

  
	
  Section 5.8

  	
  Payment
  of Indebtedness; Loans

  	
  52

  
	
  Section 5.9

  	
  Use
  of Proceeds

  	
  52

  
	
  Section 5.10

  	
  Real
  Estate

  	
  52

  
	
  Section 5.11

  	
  Indemnity

  	
  52

  
	
  Section 5.12

  	
  Interest
  Rate Hedging

  	
  53

  
	
  Section 5.13

  	
  Covenants
  Regarding Formation of Subsidiaries and the Making of Acquisitions

  	
  54

  
	
  Section 5.14

  	
  Maintenance
  of Rating

  	
  55

  
	
  Section 5.15

  	
  Environmental
  Compliance

  	
  55

  
	
  Section 5.16

  	
  Required
  Consents and Transfer of Licenses in Event of Default

  	
  56

  
	
  Section 5.17

  	
  Subordination
  of Intercompany Loans

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  
	
   

  	
   

  	
   

  
	
  INFORMATION COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Quarterly
  and Interim Financial Statements and Information

  	
  57

  
	
  Section 6.2

  	
  Annual
  Financial Statements and Information

  	
  57

  
	
  Section 6.3

  	
  Performance
  Certificates

  	
  57

  
	
  Section 6.4

  	
  Copies
  of Other Reports

  	
  58

  
	
  Section 6.5

  	
  Notice
  of Litigation and Other Matters

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.

  
	
   

  	
   

  	
   

  
	
  NEGATIVE COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Indebtedness
  of Parent, EnergySolutions and Their Respective Subsidiaries

  	
  59

  
	
  Section 7.2

  	
  Limitation
  on Liens

  	
  62

  
	
  Section 7.3

  	
  Amendment
  and Waiver

  	
  62

  
	
  Section 7.4

  	
  Liquidation,
  Merger, Disposition of Assets

  	
  63

  
	
  Section 7.5

  	
  Limitation
  on Guarantees

  	
  64

  
	
  Section 7.6

  	
  Investments
  and Acquisitions

  	
  64

  
	
  Section 7.7

  	
  Financial
  Covenants

  	
  66

  
	
  Section 7.8

  	
  Affiliate
  Transactions and Restricted Payments

  	
  68

  
	
  Section 7.9

  	
  Real
  Estate

  	
  68

  
	
  Section 7.10

  	
  ERISA
  Liabilities

  	
  68

  
	
  Section 7.11

  	
  Limitation
  on Preferred Stock

  	
  69

  
	
  Section 7.12

  	
  Negative
  Pledge

  	
  69

  
	
  Section 7.13

  	
  Payment
  Restrictions Affecting Subsidiaries

  	
  69

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 7.14

  	
  Speculative
  Transactions

  	
  70

  
	
  Section 7.15

  	
  Name,
  Jurisdiction of Organization and Business

  	
  70

  
	
  Section 7.16

  	
  [Reserved]

  	
  70

  
	
  Section 7.17

  	
  Permitted
  Activities of Parent

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  
	
   

  	
   

  	
   

  
	
  DEFAULT

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Events
  of Default

  	
  71

  
	
  Section 8.2

  	
  Remedies

  	
  73

  
	
  Section 8.3

  	
  Payments
  Subsequent to Declaration of Event of Default

  	
  74

  
	
  Section 8.4

  	
  [Reserved]

  	
  74

  
	
  Section 8.5

  	
  Certain
  Cure Rights

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  
	
   

  	
   

  	
   

  
	
  THE AGENTS

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
  Appointment
  and Authorization

  	
  75

  
	
  Section 9.2

  	
  Interest
  Holders

  	
  75

  
	
  Section 9.3

  	
  Consultation
  with Counsel

  	
  75

  
	
  Section 9.4

  	
  Documents

  	
  76

  
	
  Section 9.5

  	
  CNAI
  and Affiliates

  	
  76

  
	
  Section 9.6

  	
  Responsibility
  of the Administrative Agent and the Collateral Agent

  	
  76

  
	
  Section 9.7

  	
  Collateral
  and Guaranty Matters

  	
  76

  
	
  Section 9.8

  	
  Action
  by the Administrative Agent and the Collateral Agent

  	
  77

  
	
  Section 9.9

  	
  Notice
  of Default or Event of Default

  	
  77

  
	
  Section 9.10

  	
  Responsibility
  Disclaimed

  	
  78

  
	
  Section 9.11

  	
  Indemnification

  	
  78

  
	
  Section 9.12

  	
  Credit
  Decision

  	
  79

  
	
  Section 9.13

  	
  Successor
  Agents

  	
  79

  
	
  Section 9.14

  	
  Delegation
  of Duties

  	
  80

  
	
  Section 9.15

  	
  Additional
  Agents

  	
  80

  
	
  Section 9.16

  	
  Administrative
  Agent May File Proofs of Claim

  	
  80

  
	
  Section 9.17

  	
  Security
  Documents

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  
	
   

  
	
  CHANGE IN CIRCUMSTANCES 

  AFFECTING FIXED RATE LOANS

  
	
   

  	
   

  	
   

  
	
  Section 10.1

  	
  Eurodollar
  Basis Determination Inadequate or Unfair

  	
  81

  
	
  Section 10.2

  	
  Illegality

  	
  82

  
	
  Section 10.3

  	
  Increased
  Costs

  	
  82

  
	
  Section 10.4

  	
  Effect
  on Other Loans

  	
  84

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 11.1

  	
  Notices

  	
  84

  
	
  Section 11.2

  	
  Costs
  and Expenses

  	
  85

  
	
  Section 11.3

  	
  Waivers

  	
  86

  
	
  Section 11.4

  	
  Set-Off

  	
  87

  
	
  Section 11.5

  	
  Binding
  Effect and Assignment

  	
  87

  
	
  Section 11.6

  	
  Accounting
  Principles

  	
  90

  
	
  Section 11.7

  	
  Counterparts

  	
  90

  
	
  Section 11.8

  	
  Governing
  Law and Jurisdiction

  	
  90

  
	
  Section 11.9

  	
  Severability

  	
  91

  
	
  Section 11.10

  	
  Interest

  	
  91

  
	
  Section 11.11

  	
  Table
  of Contents and Headings

  	
  91

  
	
  Section 11.12

  	
  Amendment
  and Waiver

  	
  91

  
	
  Section 11.13

  	
  Entire
  Agreement

  	
  92

  
	
  Section 11.14

  	
  Other
  Relationships

  	
  93

  
	
  Section 11.15

  	
  Directly
  or Indirectly

  	
  93

  
	
  Section 11.16

  	
  Reliance
  on and Survival of Various Provisions

  	
  93

  
	
  Section 11.17

  	
  Senior
  Debt

  	
  93

  
	
  Section 11.18

  	
  Obligations
  Several

  	
  93

  
	
  Section 11.19

  	
  Confidentiality

  	
  93

  
	
  Section 11.20

  	
  [Reserved]

  	
  94

  
	
  Section 11.21

  	
  Patriot
  Act Notice

  	
  94

  
	
  Section 11.22

  	
  Performance

  	
  94

  
	
  Section 11.23

  	
  The
  Platform

  	
  94

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12.

  
	
   

  	
   

  	
   

  
	
  WAIVER OF JURY TRIAL

  
	
   

  	
   

  	
   

  
	
  Section 12.1

  	
  Waiver
  of Jury Trial

  	
  95

  

 

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

  	
   

  	
  -

  	
   

  	
  [Reserved]

  
	
  Exhibit F

  	
   

  	
  -

  	
   

  	
  [Reserved]

  
	
  Exhibit G

  	
   

  	
  -

  	
   

  	
  Form of
  Request for Loan Eurodollar Basis

  
	
  Exhibit H-1

  	
   

  	
  -

  	
   

  	
  Form of
  Subsidiary Guaranty

  
	
  Exhibit H-2

  	
   

  	
  -

  	
   

  	
  Form of
  Parent 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
  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 Agreement Date

  
	
  Schedule
  4

  	
   

  	
  -

  	
   

  	
  Loan
  Commitments of the 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

 

AMENDED AND RESTATED CREDIT
AGREEMENT

 

This AMENDED AND RESTATED CREDIT AGREEMENT, dated as
of September 23, 2009, is made by and among DURATEK, INC., a Delaware corporation
(“Duratek”), 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”) and as
successor agent (the “Successor Agent”).

 

WITNESSETH:

 

WHEREAS, Duratek, certain lenders thereto (the “Duratek
Lenders”), CGMI as sole lead arranger and bookrunner, CNAI, as
administrative agent and collateral agent, and CALYON NEW YORK BRANCH (“Calyon”),
as 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 “Original Duratek Loan Agreement”);

 

WHEREAS, Duratek is a wholly owned subsidiary of
EnergySolutions, LLC (“EnergySolutions”), a Delaware limited liability
company, and EnergySolutions is a subsidiary of EnergySolutions, Inc. (“Parent”),
a Delaware corporation; and

 

WHEREAS, the parties hereto desire to amend and
restate the Original Duratek Loan Agreement in its entirety, on the terms and
subject to the conditions set forth herein, to: 
(a) allow ZionSolutions, LLC (“ZionSolutions”), a subsidiary
of 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 and the related transactions, as described in the
Zion Agreements (as defined herein) (the “Zion Acquisition”), located in
Zion, Illinois, (b) permit Duratek to incur additional unsecured debt
under certain circumstances, (c) reset certain financial covenants and (d) make
other amendments as set forth herein (collectively, the “Amendment Transactions”);

 

WHEREAS, the Obligations (as defined in the Original
Duratek Loan Agreement, hereinafter the “Original Duratek Loan Obligations”)
of Duratek and the other Loan Parties under the Original Duratek Loan Agreement
and the Security Documents (as defined in the Original Duratek Loan Agreement,
such Security Documents hereinafter the “Duratek Loan Security Documents”)
are secured by certain collateral (hereinafter the “Duratek Loan Collateral”)
and are guaranteed or supported or otherwise benefited by the Duratek Loan
Security Documents; and

 

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

 

NOW, THEREFORE, in consideration of the premises and
the agreements, provisions and covenants herein contained, the Original Duratek
Loan 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 Agreement Date pursuant to Section 5.10 hereof, as the
same may hereafter be amended, modified, supplemented or restated from time to
time.

 

“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 EnergySolutions, Parent or any of their Subsidiaries, (iii) matures
no earlier than 180 days after the Term Loan Maturity Date (as such term
is defined in the EnergySolutions Credit Agreement), (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 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 

 

2

 

No. 36852248 Attention:
Christina Quezon, or such other account as the Administrative Agent shall specify
from time to time in writing to the Lenders.

 

“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” shall mean this credit agreement as it may be
amended, restated, amended and restated, supplemented or otherwise modified
from time to time.

 

“Agreement Date” shall mean the date as of
which this Agreement is dated.

 

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

 

“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 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, any fund that invests in commercial loans and is managed or advised
by such Lender or an Affiliate of such Lender, or by the same investment
advisor as such Lender 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.

 

“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.

 

3

 

“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.

 

“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 Loan” shall mean the portion of
the Loans as to which Duratek 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 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.

 

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

 

4

 

“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.

 

“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.

 

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

 

“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).

 

5

 

“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.

 

“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.

 

“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 preamble 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 Loan Documents” shall mean the
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 the Loans
described in Section 2.1(b).

 

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

 

“EnergySolutions Credit Agreement” shall mean
that Third Amended and Restated Credit Agreement, dated as of the date hereof,
among Parent, EnergySolutions and the lenders from time to time party thereto,
CGMI, as sole lead arranger, CNAI, as administrative agent, as collateral
agent, as the initial revolving issuing bank and as the initial synthetic issuing bank and as syndication
agent.

 

6

 

“EnergySolutions Guaranty” shall mean that
certain EnergySolutions Guaranty, dated as of the Original Agreement Date, in
favor of the Collateral Agent, for itself and for the ratable benefit of the Secured
Parties, given by EnergySolutions.

 

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

 

“EnergySolutions Pledge Agreement” shall mean
that certain Pledge Agreement, dated as of the Original Agreement Date, between
EnergySolutions and the Collateral Agent.

 

“EnergySolutions Security Agreement” shall
mean that certain Security Agreement, dated as of the Original Agreement Date,
between EnergySolutions and the Collateral Agent.

 

“EnergySolutions Term Loans” shall mean the
Term Loans (as defined in the EnergySolutions Credit Agreement).

 

“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 by any court or

 

7

 

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.

 

“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 Loan” shall mean any portion of
the Loans as to which Duratek 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.

 

“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 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 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 

 

8

 

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 Loans is determined) having
a term equal to such Interest Period.

 

“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 of Duratek and its Subsidiaries (which shall be calculated as the sum
of (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 EnergySolutions and its Subsidiaries), but excluding costs,
expenses and charges of Duratek and its Subsidiaries 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 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 Duratek and cash Taxes paid by Duratek and its Subsidiaries
during such fiscal quarter; (iii) Debt Service paid by 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 Duratek for such fiscal
quarter; and (v) cash paid by Duratek or any of its Subsidiaries in respect
of a Permitted Acquisition during such fiscal quarter; provided that if
EnergySolutions is a Subsidiary of Duratek, (i) “Duratek and its Subsidiaries”
shall include Parent and/or its Subsidiaries but (ii) shall not include
EnergySolutions or its Subsidiaries.

 

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

 

“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 Parent 

 

9

 

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 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 Agreement 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.

 

“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.

 

10

 

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

 

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

 

“Guarantors” shall mean Parent,
EnergySolutions, 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’, Parent’s,
or Duratek’s (as the case may be) interest rate risk with respect to its
Obligations permitted under this Agreement.

 

“Holdco” shall mean ENV Holdings LLC.

 

“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,
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.

 

11

 

“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 (as such term is defined in the EnergySolutions Credit
Agreement) shall be included only to the extent of any unreimbursed Disbursements (as such term
is defined in the EnergySolutions Credit Agreement).  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 (as such term is defined in the EnergySolutions Credit
Agreement) shall constitute Indebtedness for Money Borrowed.

 

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

 

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

 

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

 

“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 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 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, and (b) in connection
with any Eurodollar Loan, the term of the related Eurodollar Period selected by
Duratek or otherwise determined in accordance with this Agreement.  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 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 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
Maturity Date with respect to Interest Periods applicable to Loans or such
earlier date as would interfere with Duratek’s 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 

 

12

 

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.

 

“Lenders” shall mean each financial
institution listed on the signature page hereto as a Lender or any other
Person that has become a party to the Original Duratek Loan
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.

 

“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 their respective Subsidiaries, all of
which are listed as of the Agreement 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.

 

“Loan Documents” shall mean this Agreement
(including the Original Duratek Loan Agreement), any Notes, the Security
Documents, the Guarantees, 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,
Duratek, each Subsidiary Guarantor, EnergySolutions and Parent.

 

“Loans” shall mean, collectively, the amounts
advanced by the Lenders to Duratek in an aggregate amount of $240,000,000, as
set forth on Schedule 4 attached hereto.

 

“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 (as
defined in the EnergySolutions Credit Agreement) outstanding at such time, (b) the
aggregate Available Amount (as defined in the EnergySolutions Credit Agreement)
of all Revolving Letters of Credit (as defined in the EnergySolutions Credit
Agreement) outstanding at such time, (c) the aggregate amount of Synthetic
Deposits (as defined in the EnergySolutions Credit Agreement) at such time, (d) the
aggregate Unused Revolving Commitments (as defined in the EnergySolutions
Credit Agreement) at such time and (e) the aggregate principal amount of
the Loans outstanding at such time; provided, however, that (I) if
any Lender (as defined in the EnergySolutions Credit Agreement) shall be a
Defaulting Lender (as defined in the EnergySolutions Credit Agreement) at such
time, there shall be excluded from the determination of Majority Lenders at
such time (i) the aggregate principal amount of the Loans (as defined in
the EnergySolutions Credit Agreement) owing to such Lender (in its capacity as
a Lender) and outstanding at such time, (ii) such Lender’s Pro Rata Share
(as defined in the EnergySolutions Credit Agreement) of the aggregate 

 

13

 

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 at such time, there shall be excluded from the
determination of Majority Lenders at such time the aggregate principal amount
of the 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
(as defined in the EnergySolutions Credit Agreement) owing to the Revolving
Issuing Bank (as defined in the EnergySolutions Credit Agreement) and (y) the
Available Amount (as defined in the EnergySolutions Credit Agreement) of each
Revolving Letter of Credit (as defined in the EnergySolutions Credit Agreement)
shall be deemed “owed to” the Revolving Lenders (as defined in the
EnergySolutions Credit Agreement) ratably in accordance with their respective
Revolving Commitments (as defined in the EnergySolutions Credit Agreement).

 

“Material Adverse Change” shall mean (A) as
of the Original Agreement Date, 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.

 

“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).

 

“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 Agreement 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.

 

14

 

“Mortgage Policy” shall mean (i) each
Existing Mortgage Policy together with any and all endorsements thereto issued,
or to be issued, in favor of the Collateral Agent, (ii) each mortgagee
title insurance policy issued, or to be issued, in favor of the 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.

 

“Mortgaged Property” shall mean (a) as
of the Agreement 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 arms’-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.

 

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

 

15

 

“Non-U.S. Jurisdiction” shall mean each
jurisdiction of organization of a Subsidiary of EnergySolutions or 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 those certain term
promissory notes in the aggregate original principal amount of $240,000,000,
one issued to each of the Lenders listed on Schedule 4 hereto that
requests a promissory note, by Duratek in the amount of each of such Lenders’
Loan to Duratek, 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.

 

“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 Lenders or Affiliates of the Lenders in connection
with this Agreement and the other Loan Documents (including any interest, fees
and other charges on the Loans 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, 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 Lenders, 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 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 

 

16

 

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 Agreement Date” shall mean June 7,
2006.

 

“Original Duratek Loan 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 recitals 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.

 

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

 

“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
Agreement 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 

 

17

 

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 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 set-off) and which are within the general parameters
customary in the banking industry;

 

18

 

(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;

 

(1)           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 EnergySolutions Credit
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 Agreement Date, Liens (x) 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, 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
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 Agreement
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 Agreement Date.

 

19

 

“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 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 Agreement
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 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.

 

“Primary Equity Sponsors” shall mean LGB and
WPG.

 

“Property” shall mean property now or
hereafter owned, operated or leased by EnergySolutions or its respective
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,

 

20

 

reorganization or any other
method), the acquisition by EnergySolutions or any of its respective 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.

 

“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  and which shall be in substantially the form
of Exhibit D attached hereto.

 

“Request for Loan
Eurodollar Basis” shall mean a certificate designated as a “Request for
Loan Eurodollar Basis” signed by an Authorized Signatory requesting that a
portion of the Loans complying with the requirements of this Agreement
applicable to Eurodollar 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.

 

21

 

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

 

“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 Lenders 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 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
Agreement and any additional security agreement substantially in the form of Exhibits
I, J-1 and J-2 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 Agreement Date or with respect to any transaction contemplated
or undertaken after the Agreement 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.

 

22

 

“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 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
Agreement 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-1 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 the Original Agreement Date, between the respective
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 the Original Agreement Date, 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
attached hereto.

 

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

 

23

 

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

 

“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, 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 Facility” shall mean, at any time, the
aggregate amount of the Term Loans outstanding under the EnergySolutions Credit
Agreement.

 

“Type” refers to the distinction between
Loans bearing interest at the Base Rate and Loans bearing interest at the
Eurodollar Rate.

 

“U.K. Acquisition” shall mean the acquisition
by EnergySolutions, 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.

 

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

 

24

 

“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 Agreement 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 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 Commitment” shall
mean commitments issued pursuant to Section 2.15(a) of the
EnergySolutions Credit Agreement.

 

“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.

 

“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.

 

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.

 

25

 

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

 

Section 2.1             The Loans.

 

(a)           [Reserved].

 

(b)           The Loans.   The Lenders who have agreed to make Loans
agree, severally in accordance with their respective Commitments as set forth
on Schedule 4 hereof and not jointly, upon the terms and subject to the
conditions of this Agreement, to lend to Duratek, on the Original Agreement
Date, an aggregate amount equal to $240,000,000.  After the Agreement Date, the Loans will bear
interest at the Eurodollar Basis or the Base Rate Basis as provided in Section 2.2
hereo.  Amounts borrowed under this Section 2.1(b) and
repaid or prepaid may not be reborrowed.

 

(c)           [Reserved].

 

Section 2.2             Manner of Borrowing and Disbursement.

 

(a)           Choice of Interest Rate, Etc.  (i)  Any Loan shall, at the option of
Duratek, bear interest as a Base Rate Loan, or, subject to Section 2.2(a)(ii) and
Article 10 hereof, a Eurodollar Loan.  Any notice given to the Administrative Agent
in connection with a requested Loan hereunder shall be given to the 

 

26

 

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 Loan shall be reduced,
by payment or prepayment or otherwise, to less than $5,000,000, such Eurodollar
Loan shall automatically, on the last day of the then existing Interest Period
therefor, be continued as a Base Rate Loan.

 

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

 

(C)           Upon the occurrence and during the continuance of
any Default, (1) each Eurodollar Loan will automatically, on the last day
of the then existing Interest Period therefor, be continued as a Base Rate
Loan, and (2) the obligation of the Lenders to continue any Eurodollar Loan
shall be suspended.

 

(b)           Base Rate Loans.

 

(i)            Initial Loans.  The initial Base Rate Loans were issued on
the Original Agreement Date.

 

(ii)           [Reserved].

 

(iii)          Continuations of Base Rate
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, Duratek shall specify whether all
or a portion of each Base Rate Loan outstanding on the related Payment Date (A) is
to be continued in whole or in part as one or more Eurodollar Loans for the
Interest Period(s) selected, (B) is to be continued in whole or in
part as one or more Base Rate Loans, or (C) is to be repaid and not reborrowed.

 

(c)           Eurodollar Loans.

 

(i)            Initial Loans.  Duratek shall give the Administrative Agent
in the case of any initial Eurodollar Loan at least three (3) Business
Days’ irrevocable prior written notice in the form of a Request for Loan or
Request for Loan Eurodollar Basis, or telephonic notice followed immediately by
a Request for Loan or Request for Loan Eurodollar Basis; provided, however,
that Duratek’s failure to confirm any telephonic notice with a Request for Loan
or Request for 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 Duratek of such Eurodollar
Basis.  Duratek 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
Duratek’s failure to confirm any such telephonic notice in writing shall not
invalidate any notice so given.

 

(ii)           [Reserved].

 

(iii)          Continuations of Eurodollar
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, Duratek shall specify whether all
or a portion of each 

 

27

 

Eurodollar Loan outstanding on the related Payment
Date (A) is to be continued in whole or in part as one or more Eurodollar
Loans for the Interest Period(s) selected, (B) is to be continued in
whole or in part as a Base Rate Loan, or (C) is to be repaid and not reborrowed.

 

(d)           [Reserved].

 

(e)           Disbursement.

 

(i)            [Reserved].

 

(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 Duratek 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 Duratek 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 Duratek and Duratek
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 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 Duratek 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 Duratek that it
refuses to fund its portion of a Loan (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 interest in any Loans shall not be counted as
outstanding for purposes of determining “Majority Lenders” hereunder or (ii) to
receive payments of principal, interest or fees from Duratek in respect of its
unfunded portion of Loans.  The provisions
of this Section 2.2(e)(iv) are not in lieu of any other claim
Duratek may have against such Defaulting Lender.

 

Section 2.3             Interest.

 

(a)           On Base Rate Loans.  Interest on each Base Rate 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 Loan, in
arrears on the applicable Payment Date for the period through the date immediately
preceding such Payment Date.  Interest on
Base Rate Loans then outstanding shall also be due and payable on the Maturity
Date.

 

28

 

(b)           On Eurodollar Loans.  Interest on each Eurodollar 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 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 Loan exceeds three (3) months, interest on such Eurodollar 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 Loans then outstanding shall also be due and payable
on the Maturity Date.

 

(c)           Interest if No Notice of
Selection of Interest Rate Basis.  With respect to any Loan, if Duratek fails to
give the Administrative Agent timely notice of its selection of a 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 Loans.  At no time may the number of outstanding
Eurodollar Loans exceed eight (8).

 

(f)            Applicable Margin.  The Applicable Margin shall be (i) 3.75%
for Eurodollar 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 (ii) 2.25% for Base
Rate Loans (or 1.75% 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)           [Reserved].

 

(b)           Commencing September 30,
2006 and at the end of each calendar quarter for the next 26 calendar quarters,
the outstanding principal balance of the Loans shall be repaid in an amount
equal to the product of the outstanding principal balance of the Loans as of
the opening of business on September 30, 2006 multiplied by 0.25%.  On June 7, 2013, the outstanding
principal balance of the Loans, if any, shall be repaid in full.  Notwithstanding anything to the contrary in
this Section 2.4, any unpaid principal and interest of the Loans
shall be due and payable in full on the Maturity Date.

 

Section 2.5             [Reserved].

 

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 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 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.

 

29

 

(b)           Application of Prepayment.  Each prepayment of the Loans shall be applied
(i) first, in direct order of maturities, to the next four scheduled
principal repayment installments of the Loans and (ii) second, to the other
principal repayment installments of the Loans on a pro rata basis.  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 Duratek shall reimburse the Lenders and
the Administrative Agent, on demand, for any loss or out-of-pocket expense
incurred by any Lender 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 Duratek’s 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             [Reserved].

 

Section 2.8             Mandatory Prepayments.

 

(a)           In addition to the scheduled
repayments provided for in Section 2.4 hereof, Duratek shall prepay
the Loans in an amount equal to 100% of the Net Proceeds (w) from any sale
or disposition by Duratek or any of its 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 by Duratek or any of its Subsidiaries
(other than any Excluded Asset Sales) and (y) except as set forth in Section 5.5(e) hereof,
received by Duratek or any of its Subsidiaries as a result of a casualty or
condemnation; provided that if EnergySolutions is a Subsidiary of
Duratek, each reference to Duratek and/or its Subsidiaries shall include Parent
and/or its Subsidiaries.  Such amount
shall be applied on the third Business Day following receipt thereof by Duratek
or the affected Subsidiary in accordance with Section 2.6(b).  Duratek shall also prepay the 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 Duratek, and so long as no Default or Event of
Default shall have occurred and be continuing, Duratek 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 this Section 2.8(a), if EnergySolutions is a Subsidiary
of Duratek, all references to Duratek and/or its Subsidiaries (i) shall
include Parent and/or its Subsidiaries but (ii) shall not include
EnergySolutions and/or its Subsidiaries.

 

(b)           In addition to the scheduled
repayments provided for in Section 2.4 hereof, Duratek shall prepay
the Loans in an amount equal to one hundred percent (100%) of the Net Proceeds
received after the Original Agreement Date from any Indebtedness for Money
Borrowed incurred by Duratek or any of its 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 its respective
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)

 

30

 

and (ii), any Additional Permitted Debt
incurred pursuant to Section 7.1(w)(A) (to the extent required
to be used to prepay Loans pursuant to such section).  Such amount 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 this Section 2.8(b),
if EnergySolutions is a Subsidiary of Duratek, all references to Duratek and/or
its Subsidiaries (i) shall include Parent and/or its Subsidiaries but (ii) shall
not include EnergySolutions and/or its Subsidiaries.

 

(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, Duratek shall prepay the 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, Duratek
shall prepay the 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, Duratek shall not be required prepay the
Loans.    For the purposes of this Section 2.8(c),
if EnergySolutions is a Subsidiary of Duratek, all references to Duratek and/or
its Subsidiaries (i) shall include Parent and/or its Subsidiaries but (ii) shall
not include EnergySolutions and/or its Subsidiaries.

 

(d)           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 Duratek and payable to the order of such Lender reflecting such Lender’s
Loans.  The Notes issued by Duratek to
the Lenders shall be duly executed and delivered by one or more Authorized
Signatories.

 

(b)           Each Lender shall maintain
in accordance with its usual practice an account or accounts evidencing the
indebtedness of Duratek to such Lender resulting from each Loan owing to such
Lender from time to time, including the amounts of principal and interest
payable and paid to such Lender 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, in which
accounts (taken together) shall be recorded (i) the date and amount of
each Loan made hereunder, 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
Duratek to each Lender hereunder, and (iv) the amount of any sum received
by the Administrative Agent from Duratek hereunder and each Lender’s share
thereof.

 

(d)           Entries made in good faith
by the Administrative Agent in the Register pursuant to Section 2.9(c) above,
and by each Lender 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 Duratek to, in the case of the
Register, each Lender and, in the case of such account or 

 

31

 

accounts, such Lender, under this Agreement,
absent manifest error; provided, however, that the failure of the
Administrative Agent or such Lender 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 Duratek under this Agreement.

 

Section 2.10           Manner of Payment.

 

(a)           Each payment (including any
prepayment) by Duratek on account of the principal of or interest on the Loans,
commitment fees and any other amount owed to the Lenders, 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 Lenders, 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, 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.  If the Administrative
Agent shall not have received any payment from Duratek as and when due, the
Administrative Agent will promptly notify the Lenders 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 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)           Duratek 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).

 

(c)           Prior to the acceleration of
the Loans under Section 8.2 hereof, if some but less than all
amounts due from Duratek 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 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;

 

(iii)          third, to the
payment of fees and all of the accrued and unpaid interest and any premiums on
the Obligations of Duratek under or in respect of the Loan Documents that is
due and payable to the Administrative Agent and the Lenders, ratably based upon
the respective 

 

32

 

aggregate
amounts of all such interest owing to the Administrative Agent and the Lenders
on such date;

 

(iv)          fourth, 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 Lenders on such date, ratably
based upon the respective aggregate amounts of all such principal owing to the
Administrative Agent and the Lenders 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);

 

(v)           fifth, 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

 

(vi)          sixth, 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.

 

(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 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 Lenders in accordance
with such Lender’s pro rata share of the aggregate principal amount of the
Loans outstanding at such time, in repayment or prepayment of such of the outstanding
Loans or other Obligations then owing to such Lender.

 

(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 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 Duratek prior to the date on which any
payment is due to any Lender hereunder that Duratek will not make such payment
in full, the Administrative Agent may assume that Duratek 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 on such due date an amount equal to the amount then due such
Lender.  If and to the extent Duratek
shall not have so made such payment in full to the Administrative Agent, each
such Lender shall repay to the Administrative Agent forthwith on demand such
amount distributed to such Lender together with interest thereon, for each day
from the date such amount is distributed to such Lender until the date such
Lender 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 Duratek to borrow any Eurodollar Loan after having given notice of its intention

 

33

 

to borrow in accordance with Section 2.2
hereof (whether by reason of Duratek’s election not to proceed or the
non-fulfillment of any of the conditions set forth in Article 3),
or (ii) payment of any Eurodollar Loan in whole or in part pursuant to Section 2.2(a)(ii),
2.6, 2.8 or 10.2, acceleration of the maturity of the
Loans pursuant to Section 8.2 or for any other reason, Duratek
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.

 

(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 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 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 on the basis of the respective Commitments of the Lenders.

 

(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 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 made by it in excess of its ratable share
of such Loans, 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 shall be shared on a pro rata basis only with other Lenders to which
Loans of such Type are owing.  Duratek
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 Duratek in the amount of such participation.

 

Section 2.13           Capital Adequacy.

 

If, after the Agreement Date, the adoption or
effectiveness of any Applicable Law regarding the capital adequacy of banks or
bank holding companies, or any change or effectiveness in Applicable Law 

 

34

 

(whether adopted before or
after the Agreement 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 with any directive issued or adopted after the Agreement 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’s capital, as a
consequence of its obligations hereunder with respect to the Loans, to a level
below that which it could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s policies with respect to
capital adequacy immediately before such adoption, change or compliance and
assuming that such Lender’s capital was fully utilized prior to such adoption,
change or compliance) by an amount reasonably deemed by such Lender to be
material, then such Lender shall promptly notify Duratek of such adoption,
compliance or change.  Upon demand by
such Lender, Duratek shall promptly pay to such Lender such additional amounts
as shall be sufficient to compensate such Lender 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 setting forth
the amount to be paid to such Lender by Duratek 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 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)           Duratek 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”).

 

35

 

(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, Duratek 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 Duratek
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 Duratek shall not relieve Duratek 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 Duratek 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 Duratek.

 

(d)           Within thirty (30) days
after the date of any payment of Covered Taxes or Other Taxes by 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 Duratek
or the Administrative Agent in writing, such Person must provide to Duratek 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-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 Original 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 Duratek 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

 

36

 

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 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           [Reserved].

 

ARTICLE
3.

Conditions Precedent

 

Section 3.1             Conditions Precedent.

 

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

 

(b)           Agreement Date.  The effectiveness of the Agreement on the
Agreement 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) the Loan
Parties, the Administrative Agent and the other parties hereto, and (ii) such
other documentation as the Administrative Agent shall reasonably determine
necessary to evidence the Loans and the guarantee 

 

37

 

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 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
Agreement 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;

 

38

 

(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;

 

(H)          [Reserved]; and

 

(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.

 

(ii)           The Administrative
Agent shall have received all reasonable costs, fees, expenses and other
amounts due and payable on or prior to the Agreement 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) required to be reimbursed or
paid by EnergySolutions, and for which invoices have been presented to Duratek
on or prior to the Agreement Date.

 

(iii)          The
Administrative Agent shall have received evidence reasonably satisfactory to it
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
respective 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 shall have received a
certificate of an Authorized Signatory so stating.

 

(iv)          All financing
statements, the Deed of Trust, 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 Original Duratek
Loan Agreement and the Security Documents.

 

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

 

(vi)          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 and its Subsidiaries on
a consolidated basis.

 

(vii)         The
Administrative Agent shall have received a Loan Party Acknowledgment, in
substantially the form attached hereto as Exhibit S, dated as of
the Agreement Date whereby each Loan Party (i) ratifies and affirms its
obligations under the Loan Documents executed by such 

 

39

 

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 the Agreement and other Loan Documents.

 

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

 

(A)          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

 

(B)           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.

 

(ix)           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 3.1 if, in the good faith judgment of
Administrative Agent, such request is warranted under the circumstances.

 

(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 Agreement 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

 

40

 

Agreement
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 Agreement Date, 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 Agreement Date.

 

ARTICLE
4.

 

Representations
and Warranties

 

Section 4.1             Representations and Warranties.

 

Each of EnergySolutions and Duratek hereby agrees,
represents and warrants in favor of the Administrative Agent 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)(v), 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 respective 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 its direct and indirect 

 

41

 

ownership thereof are set forth as of the Agreement 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 respective 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 Original Agreement 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(aa)(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.

 

(e)           Business.  Parent is a direct or indirect holding
company for each of EnergySolutions and Duratek, together with its Subsidiaries,
and 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.  

 

42

 

Except as set forth on Schedule 7 attached hereto (as such
schedule was delivered on the Original Agreement Date),
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 attached hereto (as such schedule was
delivered on the Original Agreement Date), 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 Original Agreement 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, 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 Original Agreement Date), as of the Agreement 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 

 

43

 

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) except 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, Duratek 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,
Duratek 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, Duratek 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 Original Agreement Date), none of
EnergySolutions or any of its 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 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 

 

44

 

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.

 

(p)           Governmental Regulation.  Except as set forth on Schedule 6
hereto (as such schedule was delivered on the Original Agreement 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 Authorizations, 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 

 

45

 

bound by any contract or agreement continuing after the Agreement 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 Original Agreement Date) or otherwise
permitted hereunder, none of Parent, EnergySolutions or any of their respective
Subsidiaries has (i) any written agreements or binding
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 Agreement Date, and after giving effect to the initial
Loans hereunder on the Agreement Date, any Indebtedness for Money Borrowed
other than the Duratek Loans, the Indebtedness existing as of the Original Agreement 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 EnergySolutions and all of
its Subsidiaries are shown as of the Agreement Date on Schedule 1  attached
hereto.

 

(w)          Real Estate.  As of the Agreement 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, 

 

46

 

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
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 Agreement 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 its respective Subsidiaries, and
EnergySolutions and its respective Subsidiaries have no liability under such
Environmental Laws and Environmental Permits;

 

(B)                neither
EnergySolutions nor any of its respective Subsidiaries nor any real property
currently or previously owned, operated or leased by EnergySolutions or its
respective Subsidiaries or any predecessor of EnergySolutions or its respective
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 its respective 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;

 

(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 

 

47

 

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 its respective 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.

 

(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 Original
Agreement Date, except as set forth on Schedule 13   (as such schedule was
delivered on the Original Agreement Date), party to any collective
bargaining agreement.  As of the Original
Agreement Date, except as set forth on Schedule 13 (as such
schedule was delivered on the Original Agreement Date), no labor
union 

 

48

 

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 Agreement Date
and on the date of each Loan except (i) to the extent expressly applicable
only to the Agreement Date (in which case such representations and warranties
shall have been true and correct in all material respects as of the Agreement
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, shall be outstanding or Duratek 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:

 

Section 5.1             Preservation of Existence and Similar Matters.

 

Duratek, 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.

 

Duratek, 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.

 

49

 

Section 5.3             Maintenance of Properties.

 

Duratek, 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.

 

Duratek, 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.

 

Section 5.5             Insurance.

 

Each of Duratek and EnergySolutions will, and each
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 its respective 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

 

50

 

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 its respective 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.

 

Section 5.6                                      Payment of
Taxes and Claims.

 

Duratek,
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.

 

Duratek, 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.  Duratek, 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.

 

51

 

Section 5.8                                      Payment of
Indebtedness; Loans.

 

Duratek, EnergySolutions and Parent each will, and
will cause each of their respective 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.

 

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.

 

Duratek, EnergySolutions and Parent each at its sole
cost and expense will, and will cause their respective Subsidiaries (other than
a Special Purpose Subsidiary) 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, Parent or any of their respective
Subsidiaries (other than a Special Purpose Subsidiary) 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.

 

Duratek, 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 Duratek,
EnergySolutions, Parent or any of their respective 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 Duratek, EnergySolutions,
Parent or any of their respective 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

 

52

 

Duratek, EnergySolutions,
Parent or any of their respective Subsidiaries or the performance of 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 Duratek, EnergySolutions, Parent or any of their
respective Subsidiaries, or allegations that any of them has any joint
liability with Duratek, 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 Duratek, 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, 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 or any of their respective
Subsidiaries or to conduct by any Person on property presently or formerly
owned or operated by EnergySolutions 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 clauses (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 Duratek, 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 Duratek, 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 Agreement Date and
at the end of each fiscal quarter thereafter, EnergySolutions shall maintain 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 Loans and the
EnergySolutions Term 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 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 Maturity Date.  All Secured Obligations of EnergySolutions to
any of the Lenders pursuant to any Secured Hedge Agreement shall rank pari
passu with 

 

53

 

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 Special Purpose Subsidiary, for which no such Subsidiary
Security Agreement is required), in substantially the form of Exhibits J-1
and 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-1
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 anticipation or contemplation hereof) or (B) such Subsidiary as
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, 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, 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 

 

54

 

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-2, 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;

 

(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, 

 

55

 

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 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 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 shall be outstanding or Duratek 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, 

 

56

 

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 Parent 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 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.

 

57

 

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.

 

(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 EnergySolutions’
or 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 Agreement Date
occurs and ending on the Revolving Maturity Date (as defined in the EnergySolutions
Credit Agreement), 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 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 respective 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;

 

58

 

(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 its respective
Subsidiaries of a tax or penalty, (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 Agreement Date which, if such event had occurred
prior to the Agreement 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 shall be outstanding or Duratek 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 Their Respective Subsidiaries.

 

EnergySolutions and Parent 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;

 

(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;

 

59

 

(e)                                  Indebtedness
expressly permitted under Section 7.5 hereof;

 

(f)                                    Guaranties and
Indebtedness existing on the Original Agreement 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 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 its respective 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 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 its respective 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 (as
such term is defined in the EnergySolutions Credit Agreement) securing the
same, not to exceed an aggregate principal amount of $5,000,000 at any 

 

60

 

one time outstanding; provided 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 its respective
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 (as such terms are defined in the EnergySolutions
Credit Agreement) 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 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 $705,000,000 aggregate principal amount outstanding under the
EnergySolutions Credit 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 of the EnergySolutions
Credit Agreement (other than Loans made pursuant to Section 2.15(a)(iv) thereto), 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 was incurred
on the first day of the immediately preceding fiscal quarter, Parent would be
in compliance with Section 7.7;

 

61

 

(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
Agreement Date, (i) Indebtedness outstanding pursuant to the Zion Credit
Support Obligation and (ii) Indebtedness incurred pursuant to Section 2.15(a)(iv) of the
EnergySolutions Credit Agreement; 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
Agreement 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; and

 

(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, to prepay
Loans and the Term Facility on a pro rata basis until the Loans and the Term
Facility are repaid in full; 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.

 

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.

 

62

 

Section 7.4                                      Liquidation,
Merger, Disposition of Assets.

 

(a)                                  Disposition of
Assets.  EnergySolutions, Parent and
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 its respective 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 permitted by clause (v) 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 (v). 
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.

 

63

 

Section 7.5                                      Limitation on
Guarantees.

 

Except as permitted under Section 7.1,
EnergySolutions and Parent 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, (b) obligations under
agreements of EnergySolutions or any of its respective 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 its respective Subsidiaries, (c) on or after the Agreement 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 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 its respective Subsidiaries may make Permitted Acquisitions
and Real Property Acquisitions.

 

64

 

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

 

(i)                                     EnergySolutions
and its respective 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 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)                              EnergySolutions
and its 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 its respective 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 on the Original Agreement 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 

 

65

 

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
or 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;

 

(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

  	
   

  

 

66

 

	
  Four
  Fiscal Quarters Ended

  	
   

  	
  Maximum
  Ratio

  	
   

  
	
  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

  	
   

  
	
  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 EnergySolutions 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 EnergySolutions 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 EnergySolutions and its Subsidiaries
(other than 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 (A) “Duratek and
its Subsidiaries” shall not include EnergySolutions and its Subsidiaries if
EnergySolutions is a Subsidiary of Duratek and (B) if Duratek is a
Subsidiary of EnergySolutions, “Energy Solutions and its Subsidiaries” shall
not include Duratek and its Subsidiaries for purposes of the above calculation.

 

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

 

67

 

	
  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 its respective 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 its respective 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 Original
Agreement Date), (b) reasonable and customary fees paid to
non-officer members of the board of directors (or similar governing body) of
EnergySolutions and its respective 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.

 

Parent shall not, and shall cause each of its
Subsidiaries not to, permit the assets of any of its respective Plans to be
less than the accumulated benefit obligations of all such Plans (based on the 

 

68

 

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 Agreement 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
Agreement Date or permit to exist after the Agreement Date any new agreement
(other than this Agreement, any Duratek Loan Document or any other Loan
Document) that limits or conditions the ability of EnergySolutions, 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
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 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, (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),
(g) customary restrictions in joint venture agreements of joint ventures
that are not Subsidiaries and (h) this Agreement and the
EnergySolutions Credit 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 Agreement Date or suffer to exist after the
Agreement Date, or permit any Subsidiary (other than a Special Purpose Subsidiary)
to enter into after the Agreement Date or suffer to exist after the Agreement
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

 

69

 

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 its
respective 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 Parties) of any licensing agreement (in which EnergySolutions or any of
its respective Subsidiaries is the licensee) or other contract entered into by
EnergySolutions or any of its respective 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 its respective Subsidiaries
enter into or conduct any business other than a Permitted Business.

 

Section 7.16                                [Reserved].

 

Section 7.17                                Permitted
Activities of 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).

 

70

 

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)                                 Duratek (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
Lenders, 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,
Duratek, 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,
Duratek, 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 Duratek or
EnergySolutions becomes aware of such default or (ii) notice of such
default to Duratek or 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 Duratek or EnergySolutions, any of their respective 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
Duratek or EnergySolutions becomes aware of such default or (ii) notice of
such default to Duratek or 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,
Duratek, 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, Duratek, EnergySolutions or any of their respective
Subsidiaries, or of any substantial part of their respective properties, or
ordering the winding-up or liquidation of the affairs of Parent,
EnergySolutions or any of their respective Subsidiaries; or an involuntary
petition shall be filed or case commenced against Parent, EnergySolutions or
any of their respective Subsidiaries and a temporary stay entered, and (i) such
petition 

 

71

 

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,
Duratek, 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, Duratek,
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, Duratek, EnergySolutions or any of their respective
Subsidiaries, or of any substantial part of their respective properties, or
Parent, Duratek, EnergySolutions or any their respective Subsidiaries shall
fail generally to pay its debts as they become due, or Parent, Duratek,
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, Duratek, EnergySolutions or any
of their respective 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, Duratek, EnergySolutions or any of
their respective Subsidiaries which, together with all other such property of
Parent and EnergySolutions or any of their respective 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 their respective
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); (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 its respective
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 their respective 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 

 

72

 

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 its respective
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, EnergySolutions, Duratek or any of their respective 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 its respective 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 its respective 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, Duratek, 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 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 declare the principal
of and interest on the Loans and any Notes and all other amounts owed to the
Lenders 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 

 

73

 

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 principal amount of the
Loans outstanding hereunder shall bear interest at the Default Rate, all
without any action by the Administrative Agent, the Lenders 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 Lenders 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 its respective Subsidiaries, both to operate and
to sell such properties and assets, and EnergySolutions, for itself and on
behalf of its respective 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.

 

(e)                                  The rights and
remedies of the Administrative Agent, the Collateral Agent and the Lenders
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 Lenders or otherwise received
by any of such Persons (from realization on Collateral for the 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 Duratek  or as otherwise required by law.

 

Section 8.4                                      [Reserved].

 

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

 

74

 

 

(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 shall then be in compliance
with the requirements of all Financial Condition Covenants, Parent 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) 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 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, except for its or their own gross
negligence or willful misconduct.

 

Section 9.2                                      Interest
Holders.

 

The Administrative Agent may treat each Lender, 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 in its Loans
and Commitments until written notice of transfer, signed by such Lender (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 Duratek) 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.

 

75

 

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, the Loans 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 and may exercise the same
as though it were not an Agent; and the term “Lender” or “Lenders” 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
Lenders.  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 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 Duratek, of such fact or has been notified by a Lender
in writing that such Lender considers that a Default has occurred and is
continuing, and such Lender 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 with copies of such documents received from
Duratek in connection with this Agreement as such Lender 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.

 

76

 

(b)                                 The Lenders
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 Duratek that it shall execute any documents
or instruments and take any further actions, in each case at the sole cost and
expense of Duratek, 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), (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.

 

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
Lenders, 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 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 shall promptly notify the Administrative
Agent, and the Administrative

 

77

 

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, 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
Lenders.

 

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 Duratek or any other
Person as a consequence of any failure or delay in performance by or any breach
by any Lender or Lenders of any of its or their obligations under this Agreement;

 

(b)                                 to any Lender or Lenders as
a consequence of any failure or delay in performance by, or any breach by, (i) Duratek
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 or Lenders,
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 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
severally agrees to indemnify each Agent (to the extent not promptly reimbursed
by Duratek) from and against such 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 such
Agent in any way relating to or arising out of the Loan Documents or
any action taken or omitted by such Agent under the Loan Documents
(collectively, the “Indemnified Costs”); provided, however,
that no Lender 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 agrees to reimburse
each Agent promptly upon demand 

 

78

 

for its ratable share of any costs and
expenses (including, without limitation, fees and expenses of counsel) payable
by Duratek under Section 11.2, to the extent that such Agent is not
promptly reimbursed for such costs and expenses by Duratek.  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 or any other Person.

 

(b)                                 [Reserved].

 

(c)                                  For purposes of
this Section 9.11, the Lenders’ respective ratable shares of any
amount shall be determined, with respect to any time deemed appropriate by such
Agent, according to the aggregate principal amount of the Loans outstanding at
such time and owing to the respective Lenders. 
The failure of any Lender to reimburse any Agent, as the case may be,
promptly upon demand for its ratable share of any amount required to be paid by
the Lenders to such Agent, as the case may be, as provided herein shall not
relieve any other Lender of its obligation hereunder to reimburse such Agent
for its ratable share of such amount, but no Lender shall be responsible for
the failure of any other Lender to reimburse such Agent for such other Lender’s
ratable share of such amount.  Without
prejudice to the survival of any other agreement of any Lender hereunder, the
agreement and obligations of each Lender 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 represents and warrants to each other
Lender, 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 its respective 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, 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 Lenders);
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 its respective 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 Lenders and Duratek.  Upon any such resignation, the Majority
Lenders shall have the right, in consultation with Duratek, 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 Lenders, appoint a successor
Administrative Agent, which shall be any Lender 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

 

79

 

any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this Article 9
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.

 

(b)                                 Resignation of
Collateral Agent.  The
Collateral Agent may resign at any time by giving written notice of such
resignation to the Lenders and Duratek. 
Upon any such resignation, the Majority Lenders shall have the right, in
consultation with Duratek, 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 Lenders, 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, 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.

 

(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 (iii) 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, 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.

 

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.

 

Section 9.15                                Additional
Agents.

 

None of the Lenders 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 Lenders as such. 
Without limiting the foregoing, none of the Lenders so identified shall
have or be deemed to have any fiduciary relationship with any other
Lender.  Each Lender acknowledges that it
has not relied, and will not rely, on any of the Lenders 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, 

 

80

 

the Administrative Agent or its designee
(irrespective of whether the principal of any Loan 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 Duratek) 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 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 Lenders and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and the Administrative Agent and their respective agents and
counsel and all other amounts due the Lenders and the Administrative Agent
under Sections 2.3 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 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 Lenders, 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 any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

 

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 EnergySolutions
Credit 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 EnergySolutions Credit
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 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 Duratek
and the Lenders, whereupon until the Administrative Agent notifies Duratek that
the circumstances giving rise to such situation no longer exist, the
obligations of any affected Lender to make or continue Eurodollar Loans shall
be suspended.

 

81

 

Section 10.2                                Illegality.

 

If after the Agreement Date the adoption of any
Applicable Law, or any change in any Applicable Law (whether adopted before or
after the Agreement 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
Loans, such Lender shall so notify the Administrative Agent, and the
Administrative Agent shall forthwith give notice thereof to the other Lenders
and Duratek.  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 Loans shall be suspended until the
Administrative Agent shall notify Duratek and the Lenders that the circumstances
causing such suspension no longer exist and (b) unless Duratek, within
three (3) Business Days thereafter, converts all Eurodollar Loans into
Base Rate Loans in accordance with the terms of this Agreement, Duratek shall
repay in full the then outstanding principal amount of each affected Eurodollar
Loan of such 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
Loans if such Lender may lawfully continue to maintain and fund such Eurodollar
Loans to such day or (ii) immediately if such Lender may not lawfully
continue to fund and maintain such affected Eurodollar Loans to such day.  Concurrently with repaying each affected
Eurodollar Loan of such Lender, notwithstanding anything contained in Article 2
or Article 3 hereof, Duratek may borrow a Base Rate Loan from such
Lender, and such Lender shall make such Base Rate 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
Agreement Date the adoption or effectiveness of any Applicable Law or any
change or effectiveness in any Applicable Law (whether adopted before or after
the Agreement 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 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 to any tax, duty or other charge with respect to its obligation to
make or continue Eurodollar Loans, or its Eurodollar Loans, or shall change the
basis of taxation of payments to any Lender of the principal of or interest on
its Eurodollar Loans or in respect of any other amounts due under this
Agreement, in respect of its Eurodollar Loans or its obligation to make or
continue Eurodollar Loans (except for changes in the rate or method of calculation
of tax on the overall net income of such Lender); 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 or shall impose on any Lender or the London 

 

82

 

interbank
borrowing market or the New York certificate of deposit market any other
condition affecting its obligation to make or continue Eurodollar Loans or its
Eurodollar Loans;

 

and the result of any of the foregoing is to
increase the cost to such Lender of making or maintaining any such Eurodollar
Loans or to reduce the amount of any sum received or receivable by such Lender
under this Agreement with respect thereto, then, within five (5) days
after demand by such Lender, Duratek agrees to pay to such Lender such
additional amount or amounts as will compensate such Lender for such increased
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 will promptly notify Duratek and
the Administrative Agent of any event of which it has knowledge, occurring
after the Agreement Date, which will entitle such Lender 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, be otherwise
disadvantageous to such Lender.

 

(b)                                 Any Lender
claiming compensation under this Section 10.3 shall provide Duratek
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 may use any reasonable averaging and
attribution methods.  If any Lender
demands compensation under this Section 10.3, Duratek may at any
time, upon at least five (5) Business Days’ prior notice to such Lender,
prepay in full the then outstanding affected Eurodollar Loans of such Lender,
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
Loans, notwithstanding anything contained in Article 2 or Article 3
hereof, Duratek may borrow a Base Rate Loan from such Lender, and such Lender
shall, if so requested, make such Base Rate Loan in an amount such that the
outstanding principal amount held by such Lender 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-consenting Lender to execute an Assignment and Assumption Agreement
shall not render such sale 

 

83

 

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 Loans,
or requiring Eurodollar Loans of any Lender to be repaid or prepaid, then,
unless and until such Lender notifies Duratek that the circumstances giving
rise to such repayment no longer apply, all Loans which would otherwise be made
or continued as Eurodollar Loans shall, at the option of Duratek, be made or
continued instead as Base Rate Loans.

 

(b)                                 If, with
respect to any Eurodollar 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 Loans for such Interest Period, the Administrative Agent shall
forthwith so notify Duratek and the Lenders which have made such Loan,
whereupon (i) such Eurodollar Loan will automatically, on the last day of
the then existing Interest Period therefor, be continued as a Base Rate Loan
and (ii) the obligation of the Lenders which have made such Loan to make
further or continue Eurodollar Loans shall be suspended until the
Administrative Agent shall notify Duratek 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:

 

(i)                If to Duratek, to it at:

 

c/o EnergySolutions, LLC

423 West 300 South

Salt Lake City, UT  84101

Attn:  Phillip Strawbridge

Tel:  (801) 649-2298

Fax:  (801) 413-5649

E-mail: pstrawbridge@energysolutions.com

 

84

 

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 Lenders,
to them at the addresses set forth beside their names on Schedule 4.

 

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 Duratek 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 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
Duratek in accordance with this Agreement, other than, with respect to any
Agent or Lender, the losses, costs, expenses and liabilities that result from
the gross negligence or willful misconduct of such Agent or Lender.  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)           Duratek 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;

 

85

 

(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 Lenders 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)           Duratek also agrees not to assert any claim against any
Agent, any Lender 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, the Loan Documents or any of
the transactions contemplated by the Loan Documents.

 

(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 Lenders 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 Lenders, or any
of them, in exercising any right shall operate as a waiver of such right.  The Administrative Agent and the Lenders
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 Lenders decide to fund a
Loan at a time when Duratek is not in strict compliance with the terms of this
Agreement, such decision by the Lenders shall not be deemed to constitute an
undertaking by the Lenders to fund any further Loans, or to preclude the
Lenders 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
Lenders 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.

 

86

 

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 Lenders are hereby
authorized by Duratek at any time or from time to time, without notice to
Duratek 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 or the Administrative
Agent to or for the credit or the account of Duratek or any of its Subsidiaries
against and on account of the Obligations irrespective of whether (a) any
Lender 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 holding deposits of
Duratek or any of its Subsidiaries shall exercise its set-off rights as so
directed.

 

Section 11.5           Binding
Effect and Assignment.

 

(a)           This Agreement shall become effective when it shall have
been executed by Duratek and each Agent and the Administrative Agent shall have
been notified by each Lender hereto, and Duratek shall have been notified by
the Administrative Agent, that each such Lender hereto has executed it and
thereafter shall be binding upon and inure to the benefit of Duratek, each
Agent and each such Lender and their respective successors and assigns, except
that Duratek 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 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
Duratek (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) Duratek
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 Duratek 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, Duratek (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 on a combined basis with such Lender’s contemporaneous assignment
of its EnergySolutions Term Loans and Synthetic Deposits 

 

87

 

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 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 the EnergySolutions Term Loans), such fee to be paid to
the Administrative Agent not later than the effective date of the assignment of
the Loan 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, Duratek and their respective 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 Duratek) 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 Loans hereunder shall be made
concurrently with the ratable assignment of all or a portion of such Lender’s EnergySolutions Term
Loans and  Synthetic Deposits (other
than Synthetic A Deposits (as defined in the EnergySolutions Credit Agreement))
and no assignment of the Loans shall be made by any Lender hereunder unless
such Lender makes a simultaneous ratable assignment of all or a portion of its
EnergySolutions Loans and Synthetic Deposits (other than Synthetic A Deposits
(as defined in the EnergySolutions Credit Agreement)).  Before and after any assignment of Term Loans
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 (as defined in the EnergySolutions
Credit Agreement)) to the aggregate principal amount of Synthetic Deposits
(other than Synthetic A Deposits (as defined in the EnergySolutions Credit Agreement))
and (iii) such Lender’s EnergySolutions Term Loans to the aggregate
principal amount of EnergySolutions Term 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 Duratek, 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 Duratek, 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 Duratek 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 Duratek 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 

 

88

 

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.

 

(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 Duratek 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)           [Reserved].

 

(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 (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 Duratek (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 would be 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 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,
Duratek 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 

 

89

 

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 Parent and its 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.

 

(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.

 

90

 

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
Duratek or inadvertently received by any Lender, then such excess sum shall be
credited as a payment of principal, unless Duratek 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 Duratek 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 Duratek under Applicable Law.

 

(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 Duratek 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) the Majority Lenders and, in the case of
an amendment, by Duratek, 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 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 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 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, (iv) any waiver of any Default due to the
failure by Duratek to pay any sum due to any of the Lenders hereunder shall be
made only with the written consent by each Lender directly affected
thereby, (v) any release of Holdco 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, (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 Lenders directly affected
thereby shall be made only with the written consent by each Lender directly
affected thereby, (vii) any amendment of this Section 11.12, 

 

91

 

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, (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 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 Duratek and (c) the
Fee Letter may be amended or otherwise modified by the parties thereto without
the consent of, or notice to, any other Person. 
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 Lenders.

 

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 Duratek 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 Duratek if the respective Lender’s consent is required with
respect to less than all Loans (or related Commitments), to replace only the
Commitments 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 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
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 Lenders may be effected by an agreement or agreements in
writing entered into by Duratek 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 Duratek shall pay to any
Non-Consenting Lender any premium that would be payable in the event of a prepayment
on such date.

 

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.

 

92

 

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 or its respective Affiliates to enter into or
maintain business relationships with Duratek 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 Lenders 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 Duratek 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 and
Duratek.

 

Section 11.18         Obligations
Several.

 

The obligations of the Administrative Agent and each
of the Lenders hereunder are several, not joint.

 

Section 11.19         Confidentiality.

 

The Lenders shall hold all information which has
been identified as non-public, proprietary or confidential by Duratek 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 Lenders 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’s investment portfolio in connection with ratings issued with respect to
such Lender; (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 

 

93

 

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 or any
of their Affiliates is a party.  In no
event shall any Lender be obligated or required to return any materials
furnished to it by Duratek.  The
foregoing provisions shall not apply to a Lender 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), (ii) is
already in the possession of such Lender on a nonconfidential basis, or (iii) comes
into the possession of such Lender in a manner not known to such Lender to
involve a breach of a duty of confidentiality owing to Duratek.

 

Section 11.20         [Reserved].

 

Section 11.21         Patriot
Act Notice.

 

Each Lender and the Administrative Agent (for itself
and not on behalf of any Lender) 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 or the Administrative Agent, as applicable, to identify such Loan
Party in accordance with the Patriot Act. 
Duratek shall, and shall cause each of its Subsidiaries to provide, and
EnergySolutions shall provide and 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 Lenders 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.

 

Duratek 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, Duratek 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.

 

Duratek 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”).

 

94

 

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
DURATEK, 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 DURATEK’S 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.

 

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 OR THE ACTIONS OF ANY AGENT OR ANY LENDER IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

 

95

 

IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Credit Agreement to be duly executed as of the date first above
written.

 

	
   

  	
  DURATEK, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Tooze

  
	
   

  	
  Name: Richard Tooze

  
	
   

  	
  Title: Treasurer

  

 

[signatures
continue on the following pages]

 

[AMENDED AND
RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  CITIGROUP GLOBAL MARKETS INC.,

  
	
   

  	
  as sole lead arranger and bookrunner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brent G. Dickson

  
	
   

  	
  Name: Brent G. Dickson

  
	
   

  	
  Title: Director

  

 

[AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  CITIGROUP NORTH AMERICA, INC.,

  
	
   

  	
  as administrative agent, collateral agent
  and

  
	
   

  	
  successor agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Blake Gronich

  
	
   

  	
  Name: Blake Gronich

  
	
   

  	
  Title: Vice President

  

 

[AMENDED AND RESTATED CREDIT AGREEMENT]ex10one.htm

 

 

 

 

独家业务合作协议

Exclusive Business Cooperation Agreement

本独家业务合作协议(下称“本协议”)由以下双方于2009年9月25日在中华人民共和国(下称“中国”)北京市签署。

This Exclusive Business Cooperation Agreement (this “Agreement”) is made and entered into by and between the following parties on September 25, 2009 in Beijing, the People’s Republic of China (“China” or the “PRC”).

	
甲方:  摩地(上海)信息科技有限公司

	
地址:  上海市徐汇區宜山路900号科技大厦B棟1007室200235

	
Party A:
	
MoqiZone (Shanghai) Information Technology Company Limited

	
Address:
	
Block B, Room 1007, Hi-Tech Building, Caohejing 900, Yishan Road, Shanghai

乙方: 深圳市明宣科技有限公司

	
地址: 深圳市福田区福田中心區231-3号深圳中心商务大厦1418室

	
Party B:
	
Shenzhen Alar Technology Limited

Address:                Room 1418, Shenzhen Center Business Building, 231-3 Futian District, Shenzhen

甲方和乙方以下各称为“一方”,统称为“双方”。

Each of Party A and Party B shall be hereinafter referred to as a “Party” respectively, and as the “Parties” collectively.

鉴于:

Whereas,

	
1.
	
甲方是一家在中国注册的外商独资企业,拥有提供技术和咨询服务的必要资源;

Party A is a wholly-foreign-owned enterprise established in China, and has the necessary resources to provide technical and consulting services;

	
2.
	
乙方是一家在中国注册的内资公司,经中国有关政府部门依法批准可以从事互联网内容供货商及增埴业务(以下称“主营业务”);

Party B is a company with exclusively domestic capital registered in China and may engage in the business of Internet content and value added services provider approved by the relevant governmental authorities in China (collectively, the “Principal Business”);

	
3.
	
甲方同意利用其技术、人员和信息优势,在本协议期间向乙方提供有关主营业务的独家技术和业务支持和咨询服务,乙方同意接受甲方或其指定方按本协议条款的规定提供的咨询和各种服务。

Party A is willing to provide Party B with technical support, consulting services and other commercial services on exclusive basis in relation to the Principal Business during the term of this Agreement, utilizing its advantages in technology, human resources, and information, and Party B is willing to accept such services provided by
Party A or Party A's designee(s), each on the terms set forth herein.

据此,甲方和乙方经协商一致,达成如下协议:

Now, therefore, through mutual discussion, the Parties have reached the following agreements:

 

 

 

 

1

 

 

	
1.
	
服务提供

Services Provided by Party A

	
  
	
1.1
	
按照本协议条款和条件,乙方在此委任甲方在本协议期间作为乙方的独家服务提供者向乙方提供全面的技术支持、业务支持和相关咨询服务,具体内容包括所有在乙方主营业务范围内由甲方不时决定必要的服务,包括但不限于以下内容:技术服务、业务咨询、资产设备租赁、市场咨询、系统集成、产品研发和系统维护。

Party B hereby appoints Party A as Party B's exclusive services provider to provide Party B with complete technical support, business support and related consulting services during the term of this Agreement, in accordance with the terms and conditions of this Agreement, which may include all necessary services within the scope of the
Principal Business as may be determined from time to time by Party A, such as but not limited to technical services, business consultations, equipment or property leasing, marketing consultancy, system integration, product research and development, and system maintenance.

	
  
	
1.2
	
乙方接受甲方的咨询和服务。乙方进一步同意,除非经甲方事先书面同意,在本协议期间,就本协议约定的服务或其他事宜,乙方不得直接或间接地从任何第三方获得任何与本协议相同或类似的咨询和/或服务,并不得与任何第三方就本协议所述事项建立任何类似的合作关系。双方同意,甲方可以指定其他方(该被指定方可以与乙方签署本协议第1.3条描述的某些协议)为乙方提供本协议约定的服务和/或支持。

Party B agrees to accept all the consultations and services provided by Party A. Party B further agrees that unless with Party A's prior written consent, during the term of this Agreement, Party B shall not directly or indirectly accept the same or any similar consultations and/or services provided by any third party and shall not establish
similar corporation relationship with any third party regarding the matters contemplated by this Agreement. Party A may appoint other parties, who may enter into certain agreements described in Section 1.3 with Party B, to provide Party B with the consultations and/or services under this Agreement.

 

	 	1.3 	服务的提供方式

     Service Providing Methodology

 Party A and Party B agree that during the term of this Agreement, where necessary, Party B may enter into further technical service agreements or consulting service agreements with Party A or any other party   designated by Party A, which shall provide the specific contents, manner, personnel, and fees for the specific technical services and consulting services.

	
  
	
1.3.2
	
为更好地履行本协议,甲乙双方同意,视情况而定,乙方在本协议有效期内将与甲方或甲方指定的其他方根据业务进展需要随时签署设备、资产的租用协议,由甲方将有关的设备、资产提供给乙方使用。

To fulfill this Agreement, Party A and Party B agree that during the term of this Agreement, where necessary, Party B may enter into equipment or property leases with Party A or any other party designated by Party A which shall permit Party B to use Party A's relevant equipment or property based on the needs of the business of Party B.

 

 

 

 

2

 

 

	
  
	
1.3.3
	
乙方特此向甲方授予一项不可撤销的排他性的购买权,根据该购买权,甲方可在中国法律法规允许的范围内,由甲方自行选择,向乙方购买任何部分或全部资产,作价为中国法律允许的最低价格。届时双方将另行签订一份资产转让合同,对该资产转让的条款和条件进行约定。

Party B hereby grants to Party A an irrevocable and exclusive option to purchase from Party B, at Party A’s sole discretion, any or all of the assets of Party B, to the extent permitted under the PRC laws, at the lowest purchase price permitted by the PRC laws. In this case, the Parties shall enter into a separate assets transfer
agreement, specifying the terms and conditions of the transfer of the assets.

	
2.
	
服务的价格和支付方式

The Calculation and Payment of the Service Fees

双方同意,就甲方提供的服务,乙方应将其净收入的 100%的款项支付给甲方作为服务费(“服务费”)。服务费应当按月支付;经甲方事先书面同意,服务费费率可以根据乙方的经营需要进行调整。乙方应于每月最后一天开始起算的30日内,(a) 向甲方提供乙方当月的管理报表和经营数据,包括乙方在当月的净收入额(“每月净收入”);(b) 将每月净收入的100%支付给甲方(“月付款”)。乙方应于每个财政年度末的90日内,(a) 向甲方提供乙方在本财政年度的经审计的财务报表,该财务报表应当经由甲方批准的独立注册会计师审计并认证;(b) 如果按照经审计的财务报表显示,本财政年度内乙方向甲方支付的月付款的总额有任何不足,乙方应向甲方支付财务报表显示的月付款和实际支付的月付款总额之间差额。

Both Parties agree that, in consideration of the services provided by Party A, Party B shall pay Party A fees (the “Service Fees”) equal to 100% of the net income of Party B.  The Service Fees shall be due and payable on a monthly basis; upon the prior written consent by Party A, the rate of Service Fees may be adjusted
pursuant to the operational needs of Party B.  Within 30 days after the end of each month, Party B shall (a) deliver to Party A the management accounts and operating statistics of Party B for such month, including the net income of Party B during such month (the “Monthly Net Income”), and (b) pay 100% of such Monthly Net Income to Party A (each such payment, a “Monthly Payment”).  Within ninety (90) days after the end of each fiscal year, Party B shall (a) deliver to
Party A audited financial statements of Party B for such fiscal year, which shall be audited and certified by an independent certified public accountant approved by Party A, and (b) pay an amount to Party A equal to the shortfall, if any, of the aggregate net income of Party B for such fiscal year, as shown in such audited financial statements, as compared to the aggregate amount of the Monthly Payments paid by Party B to Party A in such fiscal year.

	
3.
	
知识产权和保密条款

Intellectual Property Rights and Confidentiality Clauses

	
  
	
3.1
	
甲方对履行本协议而产生或创造的任何权利、所有权、权益和所有知识产权包括但不限于著作权、专利权、专利申请权、软件、技术秘密、商业机密及其他均享有独占的和排他的权利和利益。乙方须签署所有适当的文件,采取所有适当的行动,递交所有的文件和/或申请,提供所有适当的协助,以及做出所有其他依据甲方的自行决定认为是必要的行为,以将任何对该等知识产权的所有权、权利和权益赋予甲方,和/或完善对甲方此等知识产权权利的保护。

 

 

 

 

3

 

 

 

Party A shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of this Agreement, including but not limited to copyrights, patents, patent applications, software, technical secrets, trade secrets and others. Party B shall
execute all appropriate documents, take all appropriate actions, submit all filings and/or applications, render all appropriate assistance and otherwise conduct whatever is necessary as deemed by Party A in its sole discretion for the purposes of vesting any ownership, right or interest of any such intellectual property rights in Party A, and/or perfecting the protections for any such intellectual property rights in Party A.

	
  
	
3.2
	
双方承认及确定有关本协议、本协议内容,以及彼此就准备或履行本协议而交换的任何口头或书面资料均被视为保密信息。双方应当对所有该等保密信息予以保密,而在未得到另一方书面同意前,不得向任何第三者披露任何保密信息,惟下列信息除外:(a)公众人士知悉或将会知悉的任何信息(惟并非由接受保密信息之一方擅自向公众披露);(b)根据适用法律法规、股票交易规则、或政府部门或法院的命令而所需披露之任何信息;或(c)由任何一方就本协议所述交易而需向其股东、投资者、法律或财务顾问披露之信息,而该股东、法律或财务顾问亦需遵守与本条款相类似之保密责任。如任何一方工作人员或聘请机构的泄密均视为该方的泄密,需依本协议承担违约责任。无论本协议以任何理由终止,本条款仍然生效。

The Parties acknowledge that the existence and the terms of this Agreement and any oral or written information exchanged between the Parties in connection with the preparation and performance this Agreement are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without
obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving Party’s unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any Party to its shareholders,
investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal counsels or financial advisors shall  be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Agreement.
This Section shall survive the termination of this Agreement for any reason.

	
  
	
3.3
	
双方同意,不论本协议是否变更、解除或终止,本条款将持续有效。

The Parties agree that this Section shall survive changes to, and rescission or termination of, this Agreement.

4.           陈述和保证

Representations and Warranties

	
  
	
4.1
	
甲方陈述和保证如下:

Party A hereby represents and warrants as follows:

	
  
	
4.1.1
	
甲方是按照中国法律合法注册并有效存续的外商独资企业。

 

 

 

 

 

4

 

 

Party A is a wholly owned foreign enterprise legally registered and validly existing in accordance with the laws of China.

	
  
	
4.1.2
	
甲方已采取必要的公司行为,获得必要的授权,并取得第三方和政府部门的同意及批准(若需)以签署,交付和履行本协议;甲方对本协议的签署,交付和履行并不违反法律法规的明确规定。

Party A has taken all necessary corporate actions, obtained all necessary authorization and the consent and approval from third parties and government agencies (if any) for the execution, delivery and performance of this Agreement.  Party A’s execution, delivery and performance of this Agreement do not violate any explicit
requirements under any law or regulation binding on Party A.

	
  
	
4.1.3
	
本协议构成对其合法、有效、有约束力并依本协议之条款对其强制执行的义务。

This Agreement constitutes Party A's legal, valid and binding obligations, enforceable in accordance with its terms.

	
  
	
4.2
	
乙方陈述和保证如下:

Party B hereby represents and warrants as follows:

	
  
	
4.2.1
	
乙方是按照中国法律合法注册且有效存续的公司,乙方获得从事主营业务所需的政府许可、牌照。

Party B is a company legally registered and validly existing in accordance with the laws of China and has obtained the relevant permit and license for engaging in the Principal Business in a timely manner;

	
  
	
4.2.2
	
乙方已采取必要的公司行为,获得必要的授权,并取得第三方和政府部门的同意及批准(若需)以签署,交付和履行本协议;乙方对本协议的签署,交付和履行并不违反法律法规的明确规定。

Party B has taken all necessary corporate actions, obtained all necessary authorization and the consent and approval from third parties and government agencies (if any) for the execution, delivery and performance of this Agreement.  Party B’s execution, delivery and performance of this Agreement do not violate any explicit
requirements under any law or regulation binding on Party A.

	
  
	
4.2.3
	
本协议构成对其合法、有效、有约束力并依本协议之条款对其强制执行的义务。

This Agreement constitutes Party B's legal, valid and binding obligations, and shall be enforceable against it.

5.           生效和有效期

Effectiveness and Term

	
  
	
5.1
	
本协议于文首标明的协议日期签署并同时生效。除非依本协议或双方其他协议的约定而提前终止,本协议有效期为10年,但甲、乙双方应自本协议签署后,每3个月对本协议的内容做一次审查,以决定是否需要根据当时的情况对本协议作出相应修改和补充。

This Agreement is executed on the date first above written and shall take effect as of such date. Unless earlier terminated in accordance with the provisions of this Agreement or relevant agreements separately executed between the Parties, the term of this Agreement shall be 10 years. After the execution of this Agreement, both Parties
shall review this Agreement every 3 months to determine whether to amend or supplement the provisions in this Agreement based on the actual circumstances at that time.

 

 

 

 

5

 

 

	
  
	
5.2
	
协议期满前,经甲方书面确认,本协议可以延期。延期的期限由甲方决定,乙方必须无条件地同意该延期。

The term of this Agreement may be extended if confirmed in writing by Party A prior to the expiration thereof. The extended term shall be determined by Party A, and Party B shall accept such extended term unconditionally.

6.           终止

Termination

	
  
	
6.1
	
除非依据本协议续期,本协议于到期之日终止。

Unless renewed in accordance with the relevant terms of this Agreement, this Agreement shall be terminated upon the date of expiration hereof.

	
  
	
6.2
	
本协议有效期内,除非甲方对乙方有重大过失或存在欺诈行为,乙方不得提前终止本协议。尽管如此,甲方可在任何时候通过提前30天向乙方发出书面通知的方式终止本协议。

During the term of this Agreement, unless Party A commits gross negligence, or a fraudulent act, against Party B, Party B shall not terminate this Agreement prior to its expiration date. Nevertheless, Party A shall have the right to terminate this Agreement upon giving 30 days' prior written notice to Party B at any time.

	
  
	
6.3
	
在本协议终止之后,双方在第3、7和8条项下的权利和义务将继续有效。

The rights and obligations of the Parties under Articles 3, 7 and 8 shall survive the termination of this Agreement.

7.           适用法律和争议解决

Governing Law and Resolution of Disputes

	
  
	
7.1
	
本协议的订立、效力、解释、履行、修改和终止以及争议的解决适用中国的法律。

The execution, effectiveness, construction, performance, amendment and termination of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

	
  
	
7.2
	
因解释和履行本协议而发生的任何争议,本协议双方应首先通过友好协商的方式加以解决。如果在一方向其他方发出要求协商解决的书面通知后30天之内争议仍然得不到解决,则任何一方均可将有关争议提交给中国国际经济贸易仲裁委员会,由该会按照其仲裁规则仲裁解决。仲裁应在北京进行,使用之语言为中文。仲裁裁决是终局性的,对各方均有约束力。

In the event of any dispute with respect to the construction and performance of this Agreement, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement on the dispute within 30 days after either Party's request to the other Parties for resolution of the dispute through
negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration Commission for arbitration, in accordance with its Arbitration Rules. The arbitration shall be conducted in Beijing, and the language used in arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

 

 

 

6

 

 

	
  
	
7.3
	
因解释和履行本协议而发生任何争议或任何争议正在进行仲裁时,除争议的事项外,本协议双方仍应继续行使各自在本协议项下的其他权利并履行各自在本协议项下的其他义务。

Upon the occurrence of any disputes arising from the construction and performance of this Agreement or during the pending arbitration of any dispute, except for the matters under dispute, the Parties to this Agreement shall continue to exercise their respective rights under this Agreement and perform their respective obligations under
this Agreement.

8.           补偿

Indemnification

就甲方根据本协议向乙方提供的咨询和服务内容所产生或引起的针对甲方的诉讼、请求或其他要求而招致的任何损失、损害、责任或费用都应由乙方补偿给甲方,以使甲方不受任何损害,除非该损失、损害、责任或费用是因甲方的重大过失或故意而产生的。

Party B shall indemnify and hold harmless Party A from any losses, injuries, obligations or expenses caused by any lawsuit, claims or other demands against Party A arising from or caused by the consultations and services provided by Party A to Party B pursuant this Agreement, except where such losses, injuries, obligations or expenses
arise from the gross negligence or willful misconduct of Party A.

9.           通知

Notices

	
  
	
9.1
	
本协议项下要求或发出的所有通知和其他通信应通过专人递送、挂号邮寄、邮资预付或商业快递服务或传真的方式发到该方下列地址。每一通知还应再以电子邮件送达。该等通知视为有效送达的日期按如下方式确定:

All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail, postage prepaid, by a commercial courier service or by facsimile transmission to the address of such Party set forth below.  A confirmation copy of each notice shall also
be sent by email.  The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

	
  
	
9.1.1
	
通知如果是以专人递送、快递服务或挂号邮寄、邮资预付发出的,则以于设定为通知的地址在发送或拒收之日为有效送达日。

Notices given by personal delivery, by courier service or by registered mail, postage prepaid, shall be deemed effectively given on the date of delivery or refusal at the address specified for notices.

	
  
	
9.1.2
	
通知如果是以传真发出的,则以成功传送之日为有效送达日(应以自动生成的传送确认信息为证)。

Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

	
  
	
9.2
	
为通知的目的,双方地址如下:

For the purpose of notices, the addresses of the Parties are as follows:

甲方:摩地(上海)信息科技有限公司

 

 

 

7

 

 

 

	
  
	
Party A:
	
MoqiZone (Shanghai) Information Technology Company Limited

地址:上海市徐汇區宜山路900号科技大厦B棟1007室200235

	
  
	
Address:
	
Block B, Room 1007, Hi-Tech Building, Caohejing 900, Yishan Road, Shanghai

收件人: 张楚翘

Attn:                      Cheung Chor Kiu Lawrence

电话:

Phone:

传真:

Facsimile:

	
  
	
乙方:深圳市明宣科技有限公司

	
  
	
Party B:           Shenzhen Alar Technology Limited

地址:深圳市福田区福田中心區231-3号深圳中心商务大厦1418室 

	
  
	
Address:
	
Room 1418, Shenzhen Center Business Building, 231-3 Futian District, Shenzhen

	
  收件人:
	
郑威

	
  
	
Attn:
	
Zheng Wei

	
  
	
 

	

                        Phone:

	
 

	

                        传真:

	
 

	

                        Facsimile:

	
 

	
  
	
9.3
	
任何一方可按本条规定随时给另一方发出通知来改变其接收通知的地址。

Any Party may at any time change its address for notices by a notice delivered to the other Party in accordance with the terms hereof.

10.           协议的转让

Assignment

	
  
	
10.1
	
乙方不得将其在本协议项下的权利与义务转让给第三方,除非事先征得甲方的书面同意。

Without Party A's prior written consent, Party B shall not assign its rights and obligations under this Agreement to any third party.

	
  
	
10.2
	
乙方在此同意,甲方可以在其需要时向其他第三方转让其在本协议项下的权利和义务,并在该等转让发生时甲方仅需向乙方发出书面通知,并且无需再就该等转让征得乙方的同意。

Party B agrees that Party A may assign its obligations and rights under this Agreement to any third party upon a prior written notice to Party B but without the consent of Party B.

11.           协议的分割性

Severability

如果本协议有任何一条或多条规定根据任何法律或法规在任何方面被裁定为无效、不合法或不可执行,本协议其余规定的有效性、合法性或可执行性不应因此在任何方面受到影响或损害。双方应通过诚意磋商,争取以法律许可以及双方期望的最大限度内有效的规定取代那些无效、不合法或不可执行的规定,而该等有效的规定所产生的经济效果应尽可能与那些无效、不合法或不能强制执行的规定所产生的经济效果相似。

In the event that one or several of the provisions of this Agreement are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any aspect. The Parties shall strive
in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

 

 

 

 

8

 

 

12.           协议的修改、补充

Amendments and Supplements

双方可以书面协议方式对本协议作出修改和补充。经过双方签署的有关本协议的修改协议和补充协议是本协议组成部分,具有与本协议同等的法律效力。

Any amendments and supplements to this Agreement shall be in writing. The amendment agreements and supplementary agreements that have been signed by the Parties and that relate to this Agreement shall be an integral part of this Agreement and shall have the same legal validity as this Agreement.

13.           语言和副本

Language and Counterparts

本协议以中文和英文书就,一式二份,甲乙双方各持一份,具有同等效力;中英文版本如有冲突,应以中文版为准。

This Agreement is written in both Chinese and English language in two copies, each Party having one copy with equal legal validity; in case there is any conflict between the Chinese version and the English version, the Chinese version shall prevail.

	
  
	 

有鉴于此,双方已使得经其授权的代表于文首所述日期签署了本独家业务合作协议并即生效,以昭信守。

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Exclusive Business Cooperation Agreement as of the date first above written.

	
甲方:
	
摩地(上海)信息科技有限公司

	
Party A:
	
MoqiZone (Shanghai) Information Technology Company Limited

	
  
	
签字:

	
By:
	 	 

	
  
	
姓名:張楚翘

	
Name:
	
Cheung Chor Kiu Lawrence

	
  
	
职务:法定代表人

	
Title:
	
Legal Representative

	
  
	
乙方:深圳市明宣科技有限公司 

	
Party B: 
	
Shenzhen Alar Technology Limited

	
  
	
签字:

	
By:
	 	 

	
  
	
姓名:熊平波

	
Name:
	
Xiong Ping Bo

	
  
	
职务:法定代表人

	
Title:
	
Legal Representative

  

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]