Document:

Unassociated Document

EXHIBIT 10.4

 

JULY 16, 2010

Re:          Network-1 Security Solutions, Inc. v. Cisco Systems, Inc. et al.

6:08-CV-00030-LED

             _______________________________________________

Memorandum of Understanding Between Network-l Security Solutions, Inc. and Hewlett-Packard Company

 

	
1.  

	
Cash payment of $1,250,000.00 to Network-l within 15 days.

	
2.  

	
Release to Hewlett-Packard, 3Com and all customers for all 3Com products sold prior to this agreement.

	
3.  

	
Stipulation of dismissal without prejudice filed within 45 days.

	
4.  

	
A more formal settlement agreement including the release shall be finalized within 45 days.  Any dispute about the terms of such agreement shall be settled by Judge Davis.

	
5.  

	
180-day standstill for any litigation between the parties.

	
6.  

	
The outcome of the above-referenced proceeding shall have no binding or preclusive effect on HP.

	
7.  

	
Venue for any subsequent litigation between the parties and concerning the '930 Patent shall be in EDTX in front of Judge Davis.

	
8.  

	
The fact of the resolution of this matter as well as all of the terms of this and any agreement contemplated herein shall not be used in any case for any purpose, including the current case and any future case involving the '930 Patent against HP or any other party.

	
9.  

	
No allegations of willfulness may be made against 3Com or HP in any proceeding concerning the '930 Patent.

	
10.  

	
HP will not assert a defense of laches or failure to mark in any proceeding concerning the '930 Patent.

	
11.  

	
The terms of this agreement and any subsequent agreements shall be confidential.

	
12.  

	
Nothing herein shall preclude Network-l from complying with its obligations under the applicable securities law.

	
13.  

	
Nothing herein is intended to be a license by Network-l to 3Com or Hewlett-Packard.

 

/s/ Andrew J. Curtin                         

For: Hewlett-Packard Company

 

/s/ Corey M. Horowitz                    

For: Network-1 Security SolutionsExhibit 10.1

 

 

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

by and among

 

 

COMFORT SYSTEMS USA, INC.,

as Borrower

 

 

and

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent

 

 

WELLS FARGO SECURITIES, LLC,

as Sole Lead Arranger and Sole Lead Bookrunner

 

Bank of Texas, N.A., Capital One N.A. and Regions Bank

as Co-Syndication Agent

 

 

and

 

 

CERTAIN FINANCIAL INSTITUTIONS

as Lenders

 

 

$125,000,000

 

 

July 16, 2010

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND REFERENCES

  	
  1

  
	
  Section 1.1

  	
  Defined Terms

  	
  1

  
	
  Section 1.2

  	
  Exhibits and Schedules; Additional Definitions

  	
  19

  
	
  Section 1.3

  	
  Amendment of Defined Instruments

  	
  19

  
	
  Section 1.4

  	
  References and Titles

  	
  19

  
	
  Section 1.5

  	
  Calculations and Determinations

  	
  20

  
	
  Section 1.6

  	
  Joint Preparation; Construction of Indemnities and Releases

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE LOANS AND LETTERS OF CREDIT

  	
  20

  
	
  Section 2.1

  	
  Commitments to Lend; Notes

  	
  20

  
	
  Section 2.2

  	
  Requests for Revolving Loans

  	
  21

  
	
  Section 2.3

  	
  Continuations and Conversions of Existing Loans

  	
  22

  
	
  Section 2.4

  	
  Use of Proceeds

  	
  23

  
	
  Section 2.5

  	
  Interest Rates and Fees; Payment Dates

  	
  23

  
	
  Section 2.6

  	
  Optional Prepayments

  	
  24

  
	
  Section 2.7

  	
  Mandatory Prepayments

  	
  24

  
	
  Section 2.8

  	
  Termination and Reduction of Revolving Loan Commitments

  	
  25

  
	
  Section 2.9

  	
  Letters of Credit

  	
  25

  
	
  Section 2.10

  	
  Requesting Letters of Credit

  	
  25

  
	
  Section 2.11

  	
  Reimbursement and Participations

  	
  26

  
	
  Section 2.12

  	
  Letter of Credit Fees

  	
  28

  
	
  Section 2.13

  	
  No Duty to Inquire

  	
  28

  
	
  Section 2.14

  	
  LC Collateral

  	
  29

  
	
  Section 2.15

  	
  Existing Letters of Credit

  	
  29

  
	
  Section 2.16

  	
  Swingline Loans

  	
  30

  
	
  Section 2.17

  	
  Increase of Commitments

  	
  31

  
	
  Section 2.18

  	
  Defaulting Lenders

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE III PAYMENTS TO LENDERS

  	
  35

  
	
  Section 3.1

  	
  General Procedures

  	
  35

  
	
  Section 3.2

  	
  Capital Reimbursement

  	
  36

  
	
  Section 3.3

  	
  Increased Cost of Eurodollar Loans or Letters of Credit

  	
  36

  
	
  Section 3.4

  	
  Illegality

  	
  37

  
	
  Section 3.5

  	
  Funding Losses

  	
  37

  
	
  Section 3.6

  	
  Reimbursable Taxes

  	
  38

  
	
  Section 3.7

  	
  Alternative Rate of Interest

  	
  39

  
	
  Section 3.8

  	
  Change of Applicable Lending Office; Replacement of Lenders

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV CONDITIONS PRECEDENT TO LENDING

  	
  40

  
	
  Section 4.1

  	
  Documents to be Delivered

  	
  40

  
	
  Section 4.2

  	
  Additional Conditions Precedent

  	
  42

  

 

i

 

	
  ARTICLE V REPRESENTATIONS AND WARRANTIES

  	
  42

  
	
  Section 5.1

  	
  No Default

  	
  42

  
	
  Section 5.2

  	
  Organization and Good Standing

  	
  42

  
	
  Section 5.3

  	
  Authorization

  	
  43

  
	
  Section 5.4

  	
  No Conflicts or Consents

  	
  43

  
	
  Section 5.5

  	
  Enforceable Obligations

  	
  43

  
	
  Section 5.6

  	
  Initial Financial Statements

  	
  43

  
	
  Section 5.7

  	
  Other Obligations and Restrictions

  	
  43

  
	
  Section 5.8

  	
  Full Disclosure

  	
  44

  
	
  Section 5.9

  	
  Litigation

  	
  44

  
	
  Section 5.10

  	
  Labor Disputes and Acts of God

  	
  44

  
	
  Section 5.11

  	
  ERISA Plans and Liabilities

  	
  44

  
	
  Section 5.12

  	
  Environmental and Other Laws

  	
  45

  
	
  Section 5.13

  	
  Names and Places of Business

  	
  45

  
	
  Section 5.14

  	
  Subsidiaries

  	
  46

  
	
  Section 5.15

  	
  Government Regulation

  	
  46

  
	
  Section 5.16

  	
  Insider

  	
  46

  
	
  Section 5.17

  	
  Solvency

  	
  46

  
	
  Section 5.18

  	
  Tax Shelter Regulations

  	
  46

  
	
  Section 5.19

  	
  Title to Properties; Licenses

  	
  46

  
	
  Section 5.20

  	
  Regulation U

  	
  47

  
	
  Section 5.21

  	
  Taxes

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI AFFIRMATIVE COVENANTS OF BORROWER

  	
  47

  
	
  Section 6.1

  	
  Payment and Performance

  	
  47

  
	
  Section 6.2

  	
  Books, Financial Statements and Reports

  	
  47

  
	
  Section 6.3

  	
  Other Information and Inspections

  	
  48

  
	
  Section 6.4

  	
  Notice of Material Events and Change of Address

  	
  49

  
	
  Section 6.5

  	
  Maintenance of Properties

  	
  49

  
	
  Section 6.6

  	
  Maintenance of Existence and Qualifications

  	
  50

  
	
  Section 6.7

  	
  Payment of Taxes

  	
  50

  
	
  Section 6.8

  	
  Insurance

  	
  50

  
	
  Section 6.9

  	
  Performance on Borrower’s Behalf

  	
  51

  
	
  Section 6.10

  	
  Default Interest

  	
  51

  
	
  Section 6.11

  	
  Compliance with Law

  	
  51

  
	
  Section 6.12

  	
  Environmental Matters; Environmental Reviews.

  	
  52

  
	
  Section 6.13

  	
  Further Assurances

  	
  52

  
	
  Section 6.14

  	
  Bank Accounts; Offset

  	
  52

  
	
  Section 6.15

  	
  Guaranties of Borrower’s Subsidiaries

  	
  53

  
	
  Section 6.16

  	
  Agreement to Deliver Security Documents

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII NEGATIVE COVENANTS OF BORROWER

  	
  53

  
	
  Section 7.1

  	
  Indebtedness

  	
  53

  
	
  Section 7.2

  	
  Limitation on Liens

  	
  54

  
	
  Section 7.3

  	
  Hedging Contracts

  	
  54

  
	
  Section 7.4

  	
  Limitation on Mergers, Issuances of Securities

  	
  55

  
	
  Section 7.5

  	
  Limitation on Sales of Property and Discounting of
  Receivables

  	
  55

  
	
  Section 7.6

  	
  Limitation on Distributions and Subordinated Debt

  	
  56

  

 

ii

 

	
  Section 7.7

  	
  Limitation on Investments, Acquisitions, Capital
  Expenditures, and Lines of Business

  	
  56

  
	
  Section 7.8

  	
  Intentionally Omitted

  	
  56

  
	
  Section 7.9

  	
  Transactions with Affiliates

  	
  56

  
	
  Section 7.10

  	
  Prohibited Contracts

  	
  56

  
	
  Section 7.11

  	
  Financial Covenants

  	
  57

  
	
  Section 7.12

  	
  Limitation on Further Negative Pledges

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES

  	
  58

  
	
  Section 8.1

  	
  Events of Default

  	
  58

  
	
  Section 8.2

  	
  Remedies

  	
  60

  
	
  Section 8.3

  	
  Application of Proceeds after Acceleration

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX AGENT

  	
  61

  
	
  Section 9.1

  	
  Appointment and Authority

  	
  61

  
	
  Section 9.2

  	
  Exculpation, Agent’s Reliance, Etc.

  	
  61

  
	
  Section 9.3

  	
  Credit Decisions

  	
  62

  
	
  Section 9.4

  	
  Indemnification

  	
  62

  
	
  Section 9.5

  	
  Rights as Lender

  	
  63

  
	
  Section 9.6

  	
  Sharing of Set-Offs and Other Payments

  	
  63

  
	
  Section 9.7

  	
  Investments

  	
  63

  
	
  Section 9.8

  	
  Benefit of Article IX

  	
  64

  
	
  Section 9.9

  	
  Resignation

  	
  64

  
	
  Section 9.10

  	
  Notice of Default

  	
  64

  
	
  Section 9.11

  	
  Co-Agents

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE X MISCELLANEOUS

  	
  65

  
	
  Section 10.1

  	
  Waivers and Amendments; Acknowledgments

  	
  65

  
	
  Section 10.2

  	
  Survival of Agreements; Cumulative Nature

  	
  66

  
	
  Section 10.3

  	
  Notices

  	
  67

  
	
  Section 10.4

  	
  Payment of Expenses; Indemnity

  	
  67

  
	
  Section 10.5

  	
  Joint and Several Liability; Parties in Interest;
  Assignments

  	
  69

  
	
  Section 10.6

  	
  Confidentiality

  	
  71

  
	
  Section 10.7

  	
  Governing Law; Submission to Process

  	
  71

  
	
  Section 10.8

  	
  Limitation on Interest

  	
  72

  
	
  Section 10.9

  	
  Termination; Limited Survival

  	
  73

  
	
  Section 10.10

  	
  Severability

  	
  73

  
	
  Section 10.11

  	
  Counterparts; Fax

  	
  73

  
	
  Section 10.12

  	
  Intentionally Omitted

  	
  73

  
	
  Section 10.13

  	
  Waiver of Jury Trial, Punitive Damages, etc

  	
  73

  
	
  Section 10.14

  	
  USA Patriot Act

  	
  74

  
	
  Section 10.15

  	
  Renewal and Extension

  	
  74

  

 

iii

 

Schedules and Exhibits:

 

	
  Pricing
  Schedule

  	
   

  
	
   

  	
   

  
	
  Exhibit 2.1

  	
  Revolving
  Note

  
	
  Exhibit 2.2(b)

  	
  Borrowing
  Notice

  
	
  Exhibit 2.3(c)

  	
  Continuation/Conversion
  Notice

  
	
  Exhibit 2.10

  	
  Letter
  of Credit Application and Agreement

  
	
  Exhibit 2.16

  	
  Swingline
  Note

  
	
  Exhibit 2.17

  	
  Incremental
  Commitment Agreement

  
	
  Exhibit 6.2(b)

  	
  Certificate
  Accompanying Financial Statements

  
	
  Exhibit 10.5

  	
  Assignment
  and Acceptance Agreement

  
	
   

  	
   

  
	
  Schedule
  1.1(a)

  	
  Existing
  Liens

  
	
  Schedule
  1.1(b)

  	
  Existing
  Letters of Credit

  
	
  Schedule
  3.1

  	
  Lenders
  Schedule

  
	
  Schedule
  4.1

  	
  Security
  Documents

  
	
  Schedule
  5

  	
  Disclosure
  Schedule

  
	
   

  	
  Section 5.7

  	
  Other
  Obligations and Restrictions

  
	
   

  	
  Section 5.9

  	
  Litigation

  
	
   

  	
  Section 5.10

  	
  Labor
  Disputes and Acts of God

  
	
   

  	
  Section 5.11

  	
  ERISA
  Disclosures

  
	
   

  	
  Section 5.12

  	
  Environmental
  and Other Laws

  
	
   

  	
  Section 5.13

  	
  Names
  and Places of Business

  
	
   

  	
  Section 5.14

  	
  Subsidiaries

  
	
  Schedule
  7.1

  	
  Existing
  Indebtedness

  

 

iv

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS
SECOND AMENDED AND RESTATED CREDIT AGREEMENT is made as of July 16, 2010,
by and among Comfort Systems USA, Inc., a
Delaware corporation, Wells Fargo Bank, National
Association (successor by merger to Wachovia Bank, N.A.), a national
banking association, as Agent, and the Lenders referred to below, and amends
and restates that certain Amended and Restated Credit Agreement dated February 20,
2007 entered into by the Borrower, the Lenders therein and Wachovia Bank, N.A.,
as administrative agent (the “Existing Credit Agreement”).

 

W I T N E S S E T H:

 

In
consideration of the mutual covenants and agreements contained herein, in
consideration of the loans which may hereafter be made by Lenders and the
Letters of Credit which may be made available by LC Issuer to Borrower, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto do hereby agree as follows:

 

DEFINITIONS
AND REFERENCES

 

Defined Terms.  As used in this Agreement, each of the
following terms has the meaning given to such term in this Section 1.1 or
in the sections and subsections referred to below:

 

“Account
Debtor” means the Person which is obligated on any Receivable.

 

“Acquisition”
means the direct or indirect purchase or acquisition, whether in one or more
related transactions, of all or substantially all of the capital stock of any
Person or group of Persons or all or substantially all of the assets,
liabilities, and business of any Person or group of Persons.

 

“Adjusted
Base Rate” means, on any day, the Base Rate for such day plus the Base Rate
Margin for such day, provided that the Adjusted Base Rate charged by any Person
shall never exceed the Highest Lawful Rate.

 

“Adjusted
Eurodollar Rate” means, for any Eurodollar Loan for any day during any
Interest Period therefor, the rate per annum equal to the sum of (a) the
Eurodollar Margin for such day plus (b) the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) determined by Agent to be
equal to the quotient obtained by dividing (i) the Eurodollar Rate for
such Eurodollar Loan for such Interest Period by (ii) 1 minus the Reserve
Requirement for such Eurodollar Loan for such Interest Period, provided that no
Adjusted Eurodollar Rate charged by any Person shall ever exceed the Highest
Lawful Rate.  The Adjusted Eurodollar
Rate for any Eurodollar Loan shall change whenever the Eurodollar Margin or the
Reserve Requirement changes.

 

“Affiliate”
means, as to any Person, each other Person that directly or indirectly (through
one or more intermediaries or otherwise) controls, is controlled by, or is
under common control with, such Person. 
A Person shall be deemed to be “controlled by” any other Person if such 

 

 

other
Person possesses, directly or indirectly, power to vote 20% or more of the
securities or other equity interests (on a fully diluted basis) having ordinary
voting power for the election of directors, the managing general partner or
partners or the managing member or members; or to direct or cause the direction
of the management and policies of such Person whether by contract or otherwise.

 

“Agent”
means Wells Fargo Bank, National Association, as administrative agent
hereunder, and its successors in such capacity.

 

“Aggregate
Commitment” means the aggregate of all Lenders’ Revolving Loan Commitments,
as such may be reduced, amortized or adjusted from time to time in accordance
with this Agreement.

 

“Agreement”
means this Credit Agreement.

 

“Applicable
Lending Office” means, with respect to each Lender, such Lender’s Domestic
Lending Office in the case of Base Rate Loans and such Lender’s Eurodollar
Lending Office in the case of Eurodollar Loans.

 

“Approved
Fund” means (a) a CLO and (b) with respect to any Lender that is
a fund which invests in bank loans and similar extensions of credit, any other
fund that invests in bank loans and similar extensions of credit and is managed
by the same investment advisor as such Lender or by an affiliate of such
investment advisor.  As used herein, “CLO”
shall mean any entity (whether a corporation, partnership, trust or otherwise)
that is engaged in making, purchasing, holding or otherwise investing in bank
loans and similar extensions of credit in the ordinary course of its business
and is administered or managed by a Lender or an affiliate of a Lender.

 

“Assignment
and Acceptance” means the agreement contemplated by Section 10.5.

 

“Assignment
of Prior Credit Documents” means the Assignment of Notes, Liens and
Security Agreements of even date with the Existing Credit Agreement by the
Prior Agent and each of the lenders party to the Prior Credit Agreement in
favor of the Agent and the other Lender Parties.

 

“Attributable
Indebtedness” means, when used with respect to any Sale Leaseback
Transaction, as at the time of determination, the capitalized amount of the
remaining lease payments under the relevant lease or other applicable agreement
that would appear on a balance sheet of the Borrower prepared as of such date
in accordance with GAAP (as in effect on the Closing Date) if such lease or
other agreement were accounted for as a Capital Lease.

 

“Base
Rate” means, for any day, the rate per annum equal to the highest of (a) the
Federal Funds Rate for such day plus one-half of one percent (.5%), (b) the
Prime Rate for such day, and (c) the Eurodollar Rate for a one-month
Interest Period beginning on that day plus 1.00%. Any change in the Base Rate
due to a change in the Prime Rate or the Federal Funds Rate shall be effective
on the effective date of such change in the Prime Rate or Federal Funds
Rate.  As used in this definition, “Prime
Rate” means the per annum rate of interest established from time to 

 

2

 

time
by Wells Fargo Bank, National Association, as its Prime Rate, which rate may
not be the lowest rate of interest charged by Wells Fargo Bank, National
Association to its customers.

 

“Base
Rate Loan” means a Loan that bears interest at the Adjusted Base Rate.

 

“Base
Rate Margin” means on any date, with respect to each Base Rate Loan, the
rate per annum set forth as such on the Pricing Schedule.

 

“Basis
Point” or “bps” means one one-hundredth of one percent (0.01%).

 

“Bonded
Receivables” means any Receivable resulting from goods or services provided
to an Account Debtor under a job which is covered by a surety bond provided by
Borrower or its agent, that is secured by assets of any Restricted Person.

 

“Borrower”
means Comfort Systems USA, Inc., a Delaware corporation.

 

“Borrowing”
means a borrowing of (i) new Loans of a single Type (and, in the case of
Eurodollar Loans, with the same Interest Period) pursuant to Section 2.2, (ii) a
Continuation or Conversion of existing Loans into a single Type (and, in the
case of Eurodollar Loans, with the same Interest Period) pursuant to Section 2.3,
or (iii) a Swingline Loan pursuant to Section 2.16.

 

“Borrowing
Notice” means a written or telephonic request, or a written confirmation,
made by Borrower which meets the requirements of Section 2.2.

 

“Business
Day” means a day, other than a Saturday or Sunday, on which commercial
banks are open for business with the public in Houston, Harris County,
Texas.  Any Business Day in any way
relating to Eurodollar Loans (such as the day on which an Interest Period
begins or ends) must also be a day on which, in the judgment of Agent,
significant transactions in dollars are carried out in the interbank
eurocurrency market.

 

“Capital
Asset” means any asset which would be classified as a fixed or capital
asset on a Consolidated balance sheet of any Person prepared in accordance with
GAAP.

 

“Capital
Expenditures” means, without duplication, any expenditures for any purchase
or other acquisition of any Capital Asset, excluding (i) the cost of
assets acquired with Capitalized Lease Obligations, other purchase money
financing, or the proceeds of Loans under this Agreement, (ii) expenditures
of insurance proceeds to rebuild or replace any asset after a casualty loss,
and (iii) leasehold improvement expenditures for which such Person is
reimbursed promptly by the lessor.

 

“Capital
Lease” means a lease with respect to which the lessee would be required
concurrently to recognize the acquisition of an asset and the incurrence of a
liability in accordance with GAAP as in effect on the Closing Date.

 

“Capital
Lease Obligation” means, with respect to any Person and a Capital Lease,
the amount of the obligation of such Person as the lessee under such Capital
Lease which would, in accordance with GAAP as in effect on the Closing Date,
appear as a liability on a balance sheet of such Person. “Cash Equivalents”
means Investments in:

 

3

 

(a)           marketable obligations, maturing
within twelve months after acquisition thereof, issued or unconditionally
guaranteed by the United States of America or an instrumentality or agency
thereof and entitled to the full faith and credit of the United States of
America;

 

(b)           demand deposits, and time deposits
(including certificates of deposit) maturing within twelve months from the date
of deposit thereof, with any office of any Lender or with a domestic office of
any national or state bank or trust company which is organized under the Laws
of the United States of America or any state therein, which has capital,
surplus and undivided profits of at least $500,000,000, and whose long term
certificates of deposit are rated at least Aa3 by Moody’s or AA- by S &
P;

 

(c)           repurchase obligations with a term of
not more than seven days for underlying securities of the types described in
subsection (a) above entered into with any commercial bank meeting the
specifications of subsection (b) above;

 

(d)           open market commercial paper,
maturing within 270 days after acquisition thereof, which are rated at least
P-1 by Moody’s or A-1 by S & P; and

 

(e)           money market or other mutual funds
substantially all of whose assets comprise securities of the types described in
subsections (a) through (d) above.

 

“Change
of Control” means the occurrence of any of the following events: (a) any
Person or two or more Persons acting as a group shall acquire beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Act of 1934, as amended, and including holding
proxies to vote for the election of directors other than proxies held by
Borrower’s management or their designees to be voted in favor of Persons
nominated by Borrower’s Board of Directors) of 35% or more of the outstanding
voting securities of Borrower, measured by voting power (including both common
stock and any preferred stock or other equity securities entitling the holders
thereof to vote with the holders of common stock in elections for directors of
Borrower) or (b) a majority of the directors of Borrower shall consist of
Persons not nominated by Borrower’s Board of Directors (not including as Board
nominees any directors which the Board is obligated to nominate pursuant to
shareholders agreements, voting trust arrangements or similar arrangements).

 

“Closing
Date” means the date on which all of the conditions precedent set forth in Section 4.1
and Section 4.2 shall have been satisfied or waived.

 

“Collateral”
means all property of any Restricted Person of any kind which, under the terms
of any Security Document, is subject to or is purported to be subject to a Lien
in favor of Lenders (or in favor of Agent for the benefit of Lenders).

 

“Commitment
Fee” shall have the meaning set forth in Section 2.5(c).

 

“Commitment
Fee Rate” means, on any date, the rate per annum designated as such and set
forth on the Pricing Schedule.

 

“Commitment
Period” means the period from and including the Closing Date until the
Maturity Date (or, if earlier, the day on which the obligations of Lenders to
make Loans 

 

4

 

hereunder
or the obligations of LC Issuer to issue Letters of Credit have been terminated
or the Notes become due and payable in full).

 

“Consolidated”
refers to the consolidation of any Person, in accordance with GAAP, with its
properly consolidated subsidiaries. 
References herein to a Person’s Consolidated financial statements,
financial position, financial condition, liabilities, etc. refer to the
consolidated financial statements, financial position, financial condition,
liabilities, etc. of such Person and its properly consolidated
subsidiaries.

 

“Consolidated
Capital Expenditures” means, for any Person for any period, the Capital
Expenditures of such Person calculated on a Consolidated basis for such period.

 

“Consolidated
EBITDA” means, for any Person for any period, the sum of (a) such
Person’s Consolidated Net Income during such period, plus (b) all interest
expense which was deducted in determining such Person’s Consolidated Net
Income; plus (c) all income taxes which were deducted in determining such
Person’s Consolidated Net Income; plus (d) all depreciation and
amortization which were deducted in determining such Person’s Consolidated Net
Income; plus (e) any expense relating to stock options or other equity
compensation provided to employees of the Borrower or any of its Subsidiaries
during such period that was deducted in determining such Person’s Consolidated
Net Income; plus (f) other non-cash charges, including non-cash
amortization of debt incurrence costs and net mark-to-market losses provided
that if such Person or any of its Subsidiaries has acquired or sold (or
otherwise disposed of) a Subsidiary or assets during such period, Consolidated
EBITDA of such Person shall be adjusted by the amount of the Consolidated
EBITDA attributable to such Subsidiary or assets as if such acquisition or sale
(or other disposition) had occurred on the first day of such period.

 

“Consolidated
Interest Expense” means, for any Person, for any period without
duplication, all interest paid or accrued during such period on Indebtedness
(including capital lease obligations) excluding amortization of debt incurrence
expenses, original issue discount, and mark-to-market interest expense.

 

“Consolidated
Net Income” means, for any Person, for any period, such Person’s
Consolidated net income for such period after eliminating earnings or losses
attributable to outstanding minority interests and excluding the net income of
any Person other than a Subsidiary in which such Person has an ownership
interest plus any Goodwill Impairment Charges.

 

“Consolidated
Total Indebtedness” means, for any Person, as of any date, the sum of all
Indebtedness of that Person and its Consolidated Subsidiaries, minus LC Exclusions, minus
Attributable Indebtedness of such Person and its Consolidated Subsidiaries in
an amount not to exceed $20,000,000 under Sale Leaseback Transactions relating
solely to vehicles and real property.

 

“Continuation”
refers to the continuation pursuant to Section 2.3 hereof of a Eurodollar
Loan as a Eurodollar Loan from one Interest Period to the next Interest Period.

 

“Continuation/Conversion
Notice” means a written or telephonic request, or a written confirmation,
made by Borrower which meets the requirements of Section 2.3.

 

5

 

“Conversion”
refers to a conversion pursuant to Section 2.3 or Article III of one Type of
Loan into another Type of Loan.

 

“Default”
means any Event of Default and any default, event or condition which would,
with the giving of any requisite notices and the passage of any requisite
periods of time, constitute an Event of Default.

 

“Defaulting
Lender” means any Lender, as determined by the Agent, that has (a) failed
to fund any portion of its Loans or participations in Letters of Credit or
Swingline Loans within three Business Days of the date required to be funded by
it hereunder, (provided that, if such Lender has failed for at least five
Business Days to comply with any such funding obligation, the Borrower may
declare such Lender to be a Defaulting Lender in a written notice to the
Agent), (b) notified the Borrower, the Agent, the Issuing Bank, the Swingline
Lender or any Lender in writing that it does not intend to comply with any of
its funding obligations under this Agreement or any other agreement in which it
commits to extend credit or has made a public statement to the effect that it
does not intend to comply with its funding obligations under this Agreement or
under other agreements in which it commits to extend credit, (c) failed, within
three Business Days after request by the Agent or the Borrower, to confirm that
it will comply with the terms of this Agreement relating to its obligations to
fund prospective Loans and participations in then outstanding Letters of Credit
and Swingline Loans, (d) otherwise failed to pay over to the Agent or any other
Lender any other amount required to be paid by it hereunder within three
Business Days of the date when due, unless the subject of a good faith dispute
(provided that, if such Lender has failed for at least five Business Days to
pay any such other amount, unless the subject of a good faith dispute, the
Borrower may declare such Lender to be a Defaulting Lender in a written notice
to the Agent), or (e) (i) become or is or has a parent company that has become
or is insolvent or generally unable to pay its debts as they become due, or
such Lender or its parent company admits in writing its inability to pay its
debts as they become due or makes a general assignment for the benefit of its
creditors or (ii) become the subject of a bankruptcy or insolvency proceeding,
or has had a receiver, conservator, trustee or custodian appointed for it, or
has taken any action in furtherance of, or indicating its consent to, approval
of or acquiescence in any such proceeding or appointment or has a parent
company that has become the subject of a bankruptcy or insolvency proceeding,
or has had a receiver, conservator, trustee or custodian appointed for it, or
has taken any action in furtherance of, or indicating its consent to, approval
of or acquiescence in any such proceeding or appointment.

 

“Default
Rate” means, at the time in question (a) with respect to any Base Rate Loan
or any other Obligation except as described in the immediately following clause
(b), the rate per annum equal to two percent (2%) above the Adjusted Base Rate
then in effect for such Loan or other Obligation and (b) with respect to any
Eurodollar Loan, the rate per annum equal to two percent (2%) above the
Adjusted Eurodollar Rate then in effect for such Loan or other Obligation,
provided in each case that no Default Rate charged by any Person shall ever
exceed the Highest Lawful Rate.

 

“Disclosure
Schedule” means Schedule 5 hereto.

 

“Distribution”
means (a) any dividend or other distribution made by a Restricted Person on or
in respect of any stock, partnership interest, or other equity interest in such
Restricted 

 

6

 

Person
or any other Restricted Person (including any option or warrant to buy such an
equity interest), or (b) any payment made by a Restricted Person to purchase,
redeem, acquire or retire any stock, partnership interest, or other equity
interest in such Restricted Person or any other Restricted Person (including
any such option or warrant).

 

“Domestic
Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Domestic Lending Office” below its name on Schedule
3.1 hereto, or such other office as such Lender may from time to time specify
to Borrower and Agent; with respect to LC Issuer, the office, branch, or agency
through which it issues Letters of Credit; and, with respect to Agent, the
office, branch, or agency through which it administers this Agreement.

 

“Eligible
Transferee” means a Person which either (a) is a Lender or an Affiliate of
a Lender, or (b) is consented to as an Eligible Transferee by Agent and, so
long as no Default or Event of Default is continuing, by Borrower, which
consents in each case will not be unreasonably withheld (provided that (i) no
Person organized outside the United States may be an Eligible Transferee if
Borrower would be required to pay withholding taxes on interest or principal
owed to such Person, (ii) neither the Borrower nor any of its Subsidiaries
or Affiliates may be an Eligible Transferee, and (iii) no Person that is a
Defaulting Lender may be an Eligible Transferee).

 

“Environmental
Laws” means any and all Laws relating to the environment or to emissions,
discharges, releases or threatened releases of pollutants, contaminants,
chemicals, or industrial, toxic or hazardous substances or wastes into the
environment including ambient air, surface water, ground water, or land, or
otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport, or handling of pollutants,
contaminants, chemicals, or industrial, toxic or hazardous substances or
wastes.

 

“Equity”
means shares of capital stock or a partnership, profits, capital, member or
other equity interest, or options, warrants or any other rights to substitute
for or otherwise acquire the capital stock or a partnership, profits, capital,
member or other equity interest of any Person.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and any successor statutes or statute, together with all rules and
regulations promulgated with respect thereto.

 

“ERISA
Affiliate” means each Restricted Person and all members of a controlled
group of corporations and all trades or businesses (whether or not
incorporated) under common control that, together with such Restricted Person,
are treated as a single employer under Section 414 of the Internal Revenue
Code.

 

“ERISA
Plan” means any employee pension benefit plan subject to Title IV of ERISA
with respect to which any Restricted Person has a fixed or contingent
liability.

 

“Eurodollar
Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Eurodollar Lending Office” below its name on Schedule
3.1 hereto (or, if no such office is specified, its Domestic Lending Office),
or such other office of such Lender as such Lender may from time to time
specify to Borrower and Agent.

 

7

 

“Eurodollar
Loan” means a Loan that bears interest at the Adjusted Eurodollar Rate.

 

“Eurodollar
Margin” means, on any date, with respect to each Eurodollar Loan, the rate
per annum set forth on the Pricing Schedule.

 

“Eurodollar
Rate” means, for any Eurodollar Loan within a Borrowing and with respect to
the related Interest Period therefor, (a) the interest rate per annum (carried
out to the fifth decimal place) equal to the rate determined by the Agent to be
the offered rate that appears on Reuters screen that displays an average
British Bankers Association Interest Settlement Rate (such screen currently
being LIBOR01) for deposits in U.S. dollars (for delivery on the first day of
such Interest Period) with a term equivalent to such Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period, or (b) in the event the rate
referenced in the preceding subsection (a) does not appear on such screen
or service or such screen or service shall cease to be available, the rate per
annum (carried out to the fifth decimal place) equal to the rate determined by
the Agent to be the offered rate on such other screen or other service that
displays an average British Bankers Association Interest Settlement Rate for
deposits in U.S. dollars (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period, determined as of
approximately 11:00 a.m. (London time) two Business Days prior to the first day
of such Interest Period, or (c) in the event the rates referenced in the
preceding subsections (a) and (b) are not available, the rate per annum
determined by the Agent as the rate of interest at which deposits in U.S.
dollars (for delivery on the first day of such Interest Period) in same day
funds in the approximate amount of the applicable Eurodollar Loan and with a
term equivalent to such Interest Period would be offered by its London branch
to major banks in the offshore U.S. dollar market at their request at
approximately 11:00 a.m. (London time) two Business Days prior to the first day
of such Interest Period.

 

“Event
of Default” has the meaning given to such term in Section 8.1.

 

“Existing
Letters of Credit” means the letters of credit listed on Schedule 1.1(b).

 

“Federal
Funds Rate” means, for any day, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100th of one
percent) equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day, provided that (a) if the day for
which such rate is to be determined is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b) if
such rate is not so published for any day, the Federal Funds Rate for such day
shall be the average rate quoted to Agent on such day on such transactions as
determined by Agent.

 

“Fiscal
Quarter” means a three-month period ending on March 31, June 30, September
30 or December 31 of any year.

 

“Fiscal
Year” means a twelve-month period ending on December 31 of any year.

 

8

 

“Foreign
Subsidiary” means any Subsidiary that is a “controlled foreign corporation”
under Section 957 of the Internal Revenue Code of 1986, or any Subsidiary that
is held directly or indirectly by such a “controlled foreign corporation”.

 

“GAAP”
means those generally accepted accounting principles and practices which are
recognized as such by the Financial Accounting Standards Board (or any
generally recognized successor) and which, in the case of Restricted Persons
and their Consolidated Subsidiaries, are applied for all periods after the date
hereof in a manner consistent with the manner in which such principles and
practices were applied to the Initial Financial Statements.  If any change in any accounting principle or
practice is required by the Financial Accounting Standards Board (or any such
successor) in order for such principle or practice to continue as a generally
accepted accounting principle or practice, all reports and financial statements
required hereunder with respect to any Restricted Person or with respect to any
Restricted Person and its Consolidated Subsidiaries may, at the Borrower’s
option, be prepared in accordance with such change, but all calculations and
determinations to be made hereunder may be made in accordance with such change
only after (a) notice of such change is given to each Lender, and (b) if such
change would materially affect the results of the Borrower and its Consolidated
Subsidiaries, taken as a whole, reflected in such reports and financial
statements, Required Lenders and Agent agree to such change insofar as it
affects the accounting of such Restricted Person and its Consolidated
Subsidiaries.

 

“Goodwill
Impairment Charges” means accounting charges resulting from the write-up or
write-down of acquired goodwill and other intangible assets in accordance with
FAS 142.

 

“Governmental
Authority” means any nation, state, county, city or other political
subdivision and any other governmental department, court, commission, board,
bureau, agency, regulatory authority, instrumentality, judicial or
administrative body, domestic or foreign.

 

“Guarantors”
means, collectively, (a) each Subsidiary of the Borrower existing on the
Closing Date, other than an Immaterial Subsidiary and (b) any Subsidiary of Borrower
which executes and delivers a Guaranty to Agent after the date hereof, pursuant
to Section 6.15.

 

“Guaranty”
means (a) that certain Second Amended and Restated Subsidiary Guaranty dated as
of the date hereof, executed by each Guarantor existing on the Closing Date, in
favor of the Agent for the ratable benefit of the Lenders, and (b) any Guaranty
or joinder to a Guaranty executed by a Guarantor after the Closing Date, in
favor of the Agent for the ratable benefit of the Lenders, in each case as such
Guaranties may be amended, supplemented, or modified and in effect from time to
time.

 

“Hazardous
Materials” means any substances regulated under any Environmental Law,
whether as pollutants, contaminants, or chemicals, or as industrial, toxic or
hazardous substances or wastes, or otherwise.

 

“Hedging
Contract” means (a) any agreement providing for options, swaps, floors,
caps, collars, forward sales or forward purchases involving interest rates,
commodities or commodity prices, equities, currencies, bonds, or indexes based
on any of the foregoing, (b) any option, 

 

9

 

futures
or forward contract traded on an exchange, and (c) any other derivative
agreement or other similar agreement or arrangement.

 

“Highest
Lawful Rate” means, with respect to each Lender Party to whom Obligations
are owed, the maximum nonusurious rate of interest that such Lender Party is
permitted under applicable Law to contract for, take, charge, or receive with
respect to such Obligations.  All
determinations herein of the Highest Lawful Rate, or of any interest rate
determined by reference to the Highest Lawful Rate, shall be made separately
for each Lender Party as appropriate to assure that the Loan Documents are not
construed to obligate any Person to pay interest to any Lender Party at a rate
in excess of the Highest Lawful Rate applicable to such Lender Party.

 

“Immaterial
Subsidiary” means one or more Subsidiaries with aggregate gross assets of
less than $500,000.

 

“Incremental
Commitment Agreement” means an agreement in substantially the form attached
as Exhibit 2.17 or such other form as Agent approves in its reasonable
discretion.

 

“Incremental
Lender” has the meaning assigned to that term in Section 2.17.

 

“Indebtedness”
of any Person means, without duplication, obligations in any of the following
categories:

 

(a)           debt for borrowed money;

 

(b)           an obligation to pay the deferred
purchase price of property or services;

 

(c)           obligations evidenced by a bond,
debenture, note or similar instrument;

 

(d)           Off-Balance Sheet Liabilities;

 

(e)           obligations arising under Hedging
Contracts (on a net basis to the extent netting is provided for in the
applicable Hedging Contract);

 

(f)            Capital Lease Obligations;

 

(g)           obligations to pay money arising
under conditional sales or other title retention agreements;

 

(h)           obligations owing under direct or
indirect guaranties of Indebtedness of any other Person or otherwise
constituting obligations to purchase or acquire or to otherwise protect or
insure a creditor against loss in respect of Indebtedness of any other Person
(such as obligations under working capital maintenance agreements, agreements
to keep-well, or agreements to purchase Indebtedness, assets, goods, securities
or services), but excluding endorsements in the ordinary course of business of
negotiable instruments in the course of collection;

 

(i)            obligations to purchase or redeem
securities or other property, if such obligations arise out of or in connection
with the sale or issuance of the same or similar securities or property 

 

10

 

(for
example, repurchase agreements, mandatorily redeemable preferred stock and
sale/leaseback agreements);

 

(j)            obligations with respect to letters
of credit or applications or reimbursement agreements therefore; or

 

(k)           obligations with respect to banker’s
acceptances.

 

provided,
however, that the “Indebtedness” of any Person shall not include
(i) obligations that were incurred by such Person to vendors, suppliers,
or other Persons providing goods and services for use by such Person in the
ordinary course of its business and (ii) obligations under operating
leases as defined under GAAP on the date of this Agreement entered into in the
ordinary course of business.

 

“Initial
Financial Statements” means (a) the audited annual Consolidated financial
statements of Borrower dated as of December 31, 2009, and (b) the unaudited
quarterly Consolidated financial statements of Borrower dated as of
March 31, 2010.

 

“Intercreditor
Agreement” means (i) that certain Intercreditor Agreement dated as of June
24, 2009 among Zurich American Insurance Company, a New York corporation, and
Wachovia Bank, N.A., a national banking association, as predecessor to Lender
Agent (as therein defined), as amended by the First Amendment to Intercreditor
Agreement dated as of May 6, 2010, and (ii) any other agreement to which
Borrower, the Agent, and any surety are parties that establishes the priorities
of the parties with respect to Bonded Receivables.

 

“Interest
Payment Date” means (a) with respect to each Base Rate Loan, the first
Business Day of each Fiscal Quarter; and (b) with respect to each Eurodollar
Loan, the last day of the Interest Period that is applicable thereto, provided
that, and, if such Interest Period is greater than three months in length, then
respective dates that fall every three months after the beginning of such
Interest Period shall also be Interest Payment Dates for such Eurodollar Loan.

 

“Interest
Period” means, with respect to each Eurodollar Loan, the period specified
in the Borrowing Notice or Continuation/Conversion Notice applicable to such
Eurodollar Loan, beginning on and including the date specified in such
Borrowing Notice or Continuation/Conversion Notice (which must be a Business
Day), and ending one, two, three, or six months thereafter, as Borrower may
elect in such notice; provided that:  (a)
any 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 such Business
Day falls in another calendar month, in which case such Interest Period shall
end on the next preceding Business Day; (b) any Interest Period which begins on
the last Business Day in a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day in a calendar month; and (c)
notwithstanding the foregoing, any Interest Period which would otherwise end
after the last day of the Commitment Period shall end on the last day of the
Commitment Period (or, if the last day of the Commitment Period is not a
Business Day, on the next preceding Business Day).

 

11

 

“Internal
Revenue Code” means the United States Internal Revenue Code of 1986, as
amended from time to time and any successor statute or statutes, together with
all rules and regulations promulgated with respect thereto.

 

“Investment”
means any investment, made directly or indirectly, in any Person, whether by
purchase, acquisition of equity interests, indebtedness or other obligations or
securities or by extension of credit, loan, advance, capital contribution or
otherwise and whether made in cash, by the transfer of property, or by any
other means.

 

“Law”
means any statute, law, regulation, ordinance, rule, treaty, judgment, order,
decree, permit, concession, franchise, license, agreement or other governmental
restriction of the United States or any state or political subdivision thereof
or of any foreign country or any department, province or other political
subdivision thereof.  Any reference to a
Law includes any amendment or modification to such Law, and all regulations,
rulings, and other Laws promulgated under such Law.

 

“LC
Application” means any application for a Letter of Credit hereafter made by
Borrower to LC Issuer.

 

“LC
Collateral” has the meaning given to such term in Section 2.14(b).

 

“LC
Conditions” means the conditions for issuance of a Letter of Credit set
forth in Sections 2.9 and 2.10.

 

“LC
Exclusions” means the sum of (a) LC Obligations for Letters of Credit
issued in the ordinary course of Borrower’s business for insurance, state
qualification and routine licensing purposes and (b) LC Obligations, up to
$2,000,000, for Letters of Credit issued for purposes other than those set
forth in subsection (a) above.

 

“LC
Issuer” means Wells Fargo Bank, National Association in its capacity as the
issuer of Letters of Credit hereunder, and its successors in such capacity, and
any issuer of an Existing Letter of Credit. 
Agent may, with the consent of Borrower and the Lender in question,
appoint any Lender hereunder as an LC Issuer in place of or in addition to
Wells Fargo Bank, National Association.

 

“LC
Obligations” means, at the time in question, the sum of all Matured LC
Obligations plus the maximum amounts which LC Issuer might then or thereafter
be called upon to advance under all Letters of Credit then outstanding.

 

“Lead
Arranger” means Wells Fargo Securities, LLC.

 

“Lender
Hedging Obligations” means Indebtedness to a Lender or an Affiliate of a
Lender arising out of any Hedging Contract permitted under Section 7.3.

 

“Lender
Parties” means Agent, LC Issuer, Swingline Lender, all Lenders, and any
Affiliate of a Lender that holds Lender Hedging Obligations.

 

12

 

“Lenders”
means each signatory hereto (other than Borrower and any Restricted Person that
is a party hereto), and the successors of each such party as Lender hereunder
pursuant to Section 10.5.

 

“Lenders
Schedule” means Schedule 3.1 hereto.

 

“Letter
of Credit” means any letter of credit issued by LC Issuer hereunder at the
application of Borrower, and shall include the Existing Letters of Credit, in
each case as extended or otherwise modified by the LC Issuer from time to time.

 

“Liabilities”
means, as to any Person, all liabilities that would appear as such on a balance
sheet of such Person under GAAP.

 

“Lien”
means, with respect to any property or assets, any right or interest therein of
a creditor to secure Liabilities owed to it or any other arrangement with such
creditor which provides for the payment of such Liabilities out of such
property or assets or which allows such creditor to have such Liabilities satisfied
out of such property or assets prior to the general creditors of any owner
thereof, including any lien, mortgage, security interest, pledge, rights of a
vendor under any title retention or conditional sale agreement or lease
substantially equivalent thereto, tax lien, mechanic’s or materialman’s lien,
or any other charge or encumbrance for security purposes, whether arising by
Law or agreement or otherwise, but excluding any right of offset which arises
without agreement in the ordinary course of business.

 

“Loan
Documents” means this Agreement, the Notes, the Security Documents, the
Letters of Credit, the LC Applications, any and all Hedging Contracts and the
Intercreditor Agreements to which Borrower and any Lender are a party, and all
other agreements, certificates, documents, instruments and writings at any time
delivered in connection herewith or therewith (exclusive of term sheets and
commitment letters).

 

“Loans”
means the (i) Revolving Loans as otherwise described in Section 2.1 and
(ii) the Swingline Loans as otherwise described in Section 2.16.

 

“Margin
Stock” means margin stock, as such term is defined in Regulation U
promulgated by the Board of Governors of the Federal Reserve System.

 

“Material
Adverse Change” means a material and adverse change, from the state of
affairs presented in the Initial Financial Statements or as represented or
warranted in any Loan Document, to (a) Borrower’s Consolidated financial
condition, (b) Borrower’s Consolidated business, assets, operations or
properties, considered as a whole, (c) Borrower’s ability to timely pay the
Obligations, or (d) the enforceability of the material terms of any Loan
Documents.

 

“Matured
LC Obligations” means all amounts paid by LC Issuer on drafts or demands
for payment drawn or made under or purported to be made under any Letter of
Credit and all other amounts due and owing to LC Issuer under any LC
Application for any Letter of Credit, to the extent the same have not been
repaid to LC Issuer (with the proceeds of Loans or otherwise).

 

“Maturity
Date” means July 16, 2014.

 

13

 

“Maximum
Drawing Amount” means at the time in question the sum of the maximum
amounts which LC Issuer might then or thereafter be called upon to advance
under all Letters of Credit which are then outstanding.

 

“Moody’s”
means Moody’s Investors Service, Inc., or its successor.

 

“Net
Casualty Proceeds” means (a) cash insurance proceeds (other than proceeds
of business interruption insurance) received by Borrower or any of its
Subsidiaries in connection with a loss, damage, destruction, or casualty of any
or all of the assets of Borrower or any of its Subsidiaries (the “Casualty
Assets”), minus (b) the amount of such cash
insurance proceeds reinvested by the Borrower or any of its Subsidiaries, so
long as such reinvestment is (i) consummated or irrevocably committed to
be consummated within 365 days after the receipt of such proceeds and (ii) to
restore, repair, or replace the Casualty Assets, or purchase other assets with
substantially the same utility and in the same line of business as the Casualty
Assets.

 

“Net
Leverage Ratio” means the ratio, determined as of the end of each of
Borrower’s Fiscal Quarters for the then most-recently ended four consecutive
Fiscal Quarters, of (a) its Consolidated Total Indebtedness on such day minus
the amount, if any, by which (i) its and its Subsidiaries’ cash and Cash
Equivalents exceed (ii) $30,000,000 to (b) its Consolidated EBITDA for
such period.

 

“Note(s)”
means the Revolving Notes and the Swingline Note.

 

“Obligations”
means all indebtedness, liabilities and obligations, whether matured or
unmatured, liquidated or unliquidated, primary or secondary, direct or
indirect, absolute, fixed or contingent, from time to time owing by any
Restricted Person to any Lender Party under or pursuant to any of the Loan
Documents, including all LC Obligations and any Lender Hedging
Obligations.  “Obligation” means any part
of the Obligations.

 

“Off-Balance
Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by
such Person, (b) Synthetic Lease Obligations, or (c) any obligation arising
with respect to any other transaction which is the functional equivalent of or
takes the place of borrowing but which does not constitute a liability on the
balance sheets of such Person (but, for the avoidance of doubt, excluding any
operating leases (as determined consistent with GAAP as in effect on the
Closing Date) other than a Synthetic Lease).

 

“Percentage
Share” means, with respect to any Lender (a) when used in Section 2.1, 2.2
or 2.5, in any Borrowing Notice or when no Loans are outstanding hereunder, the
percentage set forth opposite such Lender’s name on Schedule 3.1 hereto or in
the most recent Assignment and Acceptance, or Incremental Commitment Agreement,
if any, executed by such Lender, as such amount may be adjusted, if at all,
from time to time in accordance with this Agreement (including in connection
with the reduction or termination of a Defaulting Lender’s Revolving Loan
Commitment pursuant to Section 2.18), and (b) when used otherwise, the
percentage obtained by dividing (i) the sum of the unpaid principal balance of
such Lender’s Loans at the time in question plus the Matured LC Obligations
which such Lender has funded pursuant to Section 2.11(c) plus the portion of
the Maximum Drawing Amount which such Lender might be 

 

14

 

obligated
to fund under Section 2.11(c), by (ii) the sum of the aggregate unpaid
principal balance of all Loans at such time plus the aggregate amount of LC
Obligations outstanding at such time.

 

“Permitted
Acquisition” means an Acquisition that is permitted by Section 7.7(c).

 

“Permitted
Investments” means:

 

(a)           Cash Equivalents;

 

(b)           existing Investments described in the
Disclosure Schedule;

 

(c)           extensions of credit by Restricted
Persons to their customers for buying goods and services in the ordinary course
of business or to another Restricted Person in the ordinary course of business;

 

(d)           extensions of credit among Restricted
Persons which are subordinated to the Obligations upon terms and conditions
reasonably satisfactory to the Agent;

 

(e)           Investments by Restricted Persons in
the Equity of Subsidiaries of the Borrower;

 

(f)            Investments by Restricted Persons in
the Equity of another Person made in connection with a Permitted Acquisition;

 

(g)           repurchases by Restricted Persons of
their Equity that are permitted pursuant to Section 7.6; and

 

(h)           any Investment made as a result of
the receipt of non-cash consideration from a sale, transfer, lease, exchange,
alienation, or disposition of assets that is permitted pursuant to Section 7.5.

 

“Permitted
Liens” means:

 

(a)           statutory Liens for taxes,
assessments or other governmental charges or levies which are not yet
delinquent or which are being contested in good faith by appropriate action and
for which adequate reserves have been maintained in accordance with GAAP;

 

(b)           landlords’, operators’, carriers’,
warehousemen’s, repairmen’s, mechanics’, materialmen’s, worker’s, suppliers or
other like Liens, in each case only to the extent arising in the ordinary
course of business and only to the extent securing obligations (i) which are
not delinquent or which are being contested in good faith by appropriate
proceedings; and (ii) for which adequate reserves have been maintained in
accordance with GAAP;

 

(c)           zoning restrictions, easements,
licenses, and minor defects and irregularities in title to any real property,
so long as such defects and irregularities do not materially impair the value
of such property or the use of such property for the purposes for which such
property is held;

 

15

 

(d)           pledges or deposits of cash or
securities to secure (i) the performance of bids, trade contracts, leases,
statutory obligations and other obligations of a like nature (excluding appeal
bonds) incurred in the ordinary course of business; or (ii) obligations under
worker’s compensation, unemployment insurance, social security, or public Laws
or similar legislation (excluding Liens arising under ERISA);

 

(e)           Liens under the Security Documents;

 

(f)            with respect only to property
subject to any particular Security Document, Liens burdening such property
which are expressly allowed by such Security Document;

 

(g)           any Lien in favor of a surety that is
subject to the provisions of an Intercreditor Agreement;

 

(h)           deposits securing, or in lieu of,
surety, appeal or customs bonds in proceedings to which Borrower or any of its
Subsidiaries is a party;

 

(i)            any attachment or judgment Lien not
constituting an Event of Default under Section 8.1;

 

(j)            Liens existing on the date hereof
and renewals and extensions thereof, which Liens are set forth on Schedule
1.1(a);

 

(k)           Liens securing Indebtedness permitted
by Section 7.1(c), provided that such Liens attach only to the assets financed
by such Indebtedness and any proceeds thereof;

 

(l)            common law security interests of a
surety in the actual proceeds of a project subject to the underlying surety
bond provided by such surety; and

 

(m)          inchoate Liens arising under ERISA to
secure contingent Liabilities of Borrower or any of its Subsidiaries.

 

“Person”
means an individual, corporation, general partnership, limited partnership,
limited liability company, association, joint stock company, trust or trustee
thereof, estate or executor thereof, Tribunal, or any other legally
recognizable entity.

 

“Pricing
Schedule” means the Schedule attached hereto identified as such.

 

“Prior
Agent” means Capital One, N.A., a national banking association formerly
known as Hibernia National Bank, in its capacity as agent under the Prior
Credit Documents.

 

“Prior
Credit Agreement” means that certain Credit Agreement dated as of
June 30, 2005, as amended from time to time heretofore, among Borrower,
the Prior Agent, as agent and a lender thereunder, and the other financial
institutions party thereto, as lenders.

 

“Prior
Credit Documents” means the Prior Credit Agreement, together with the
promissory notes made by Borrower thereunder and any and all other documents
and instruments executed in connection therewith.

 

16

 

“Receivables”
means all present and future rights of Borrower or any Subsidiary of Borrower
to payment for goods sold or leased or for services rendered (except those
evidenced by instruments or chattel paper), whether now existing or hereafter
arising and wherever arising and whether or not earned by performance.

 

“Regulation
D” means Regulation D of the Board of Governors of the Federal Reserve
System as from time to time in effect.

 

“Required
Lenders” means Lenders having aggregate Revolving Loan Commitments
representing at least sixty-six and two-thirds percent (662/3%) of the Aggregate Commitment or, if the Revolving
Loan Commitments have been terminated, Lenders holding Loans representing at
least sixty-six and two-thirds percent (66-2/3%) of the aggregate principal amount of the Loans then outstanding.

 

“Reserve
Requirement” means, at any time, the maximum rate at which reserves
(including any marginal, special, supplemental, or emergency reserves) are
required to be maintained under regulations issued from time to time by the
Board of Governors of the Federal Reserve System (or any successor) by member
banks of the Federal Reserve System against “Eurocurrency liabilities” (as such
term is used in Regulation D).  Without
limiting the effect of the foregoing, the Reserve Requirement shall reflect any
other reserves required to be maintained by such member banks with respect to
(a) any category of liabilities which includes deposits by reference to which
the Adjusted Eurodollar Rate is to be determined, or (b) any category of
extensions of credit or other assets which include Eurodollar Loans.

 

“Restricted
Person” means any of Borrower, each Subsidiary of Borrower, and each
Guarantor.

 

“Revolving
Facility Usage” means, at the time in question, without duplication, the
aggregate principal amount of outstanding Revolving Loans, Swingline Loans, and
LC Obligations at such time.

 

“Revolving
Lenders” means those Lenders having a Revolving Loan Commitment.

 

“Revolving
Loan(s)” means a loan made to Borrower pursuant to Section 2.1.

 

“Revolving
Loan Commitment” means as to any Lender, the commitment of such Lender to
make its Percentage Share of Revolving Loans or incur its Percentage Share of
Swingline Loans or LC Obligations as set forth on Schedule 3.1 hereto or
in the most recent Assignment and Acceptance or Incremental Commitment
Agreement, if any, executed by such Lender, as such amount may be adjusted, if
at all, from time to time in accordance with this Agreement.

 

“Revolving
Notes” has the meaning ascribed to it in Section 2.1.

 

“S
& P” means Standard & Poor’s Ratings Services (a division of The
McGraw Hill Companies), or its successor.

 

“Sale
Leaseback Transaction” means any transaction or series of related
transactions under which the Borrower or any of its Subsidiaries (a) sells,
transfers or otherwise disposes of 

 

17

 

any
property, real or personal, whether now owned or hereafter acquired, and (b) as
part of that transaction, thereafter rents or leases that property or other
property that it intends to use for substantially the same purpose or purposes
as the property being sold, transferred or disposed of.

 

“Secured
Obligations” means all Obligations.

 

“Security
Documents” means the instruments listed on Schedule 4.1 and all
other security agreements, deeds of trust, mortgages, chattel mortgages,
pledges, financing statements, continuation statements, extension agreements
and other agreements or instruments now, heretofore, or hereafter delivered by
any Restricted Person to Agent in connection with this Agreement or any
transaction contemplated hereby to secure the payment of any part of the
Obligations or the performance of any Restricted Person’s other duties and
obligations under the Loan Documents.

 

“Solvent”
means, with respect to any Person on a particular date, that on such date (a)
the fair value of the property of such Person is greater than the total amount
of liabilities, including subordinated and contingent liabilities, of such
Person; (b) the present fair saleable value of the assets of such Person is not
less than the amount that will be required to pay the probable liability of
such Person on its debts and liabilities, including subordinated and contingent
liabilities as they become absolute and matured; (c) such Person does not
intend to, and does not believe that it will, incur debts or liabilities beyond
such Person’s ability to pay as such debts and liabilities mature; and (d) such
Person is not engaged in a business or transaction, and is not about to engage
in a business or transaction, for which such Person’s property would constitute
an unreasonably small capital.  The
amount of contingent liabilities (such as litigation, guaranties and pension
plan liabilities) at any time shall be computed as the amount that, in light of
all the facts and circumstances existing at the time, represents the amount
that can be reasonably be expected to become an actual or matured liability.

 

“Subordinated
Debt” means unsecured Indebtedness that is subordinated to the Obligations
in a manner and form reasonably satisfactory to Agent, as to the right and time
of payment and as to any and all other rights and remedies thereunder.

 

“Subsidiary”
means, with respect to any Person, any corporation, association, partnership,
limited liability company, joint venture, or other business or corporate
entity, enterprise or organization which is directly or indirectly (through one
or more intermediaries) controlled by or owned fifty percent or more by such
Person.

 

“Swingline
Lender” means Wells Fargo Bank, National Association, in its capacity as
lender of Swingline Loans hereunder.

 

“Swingline
Loan” means a loan made pursuant to Section 2.16.

 

“Swingline
Note” has the meaning specified in Section 2.16(d).

 

“Synthetic
Lease Obligations” means an arrangement treated as an operating lease for
financial accounting purposes and a financing lease for tax purposes.

 

18

 

“Taxes”
means any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings imposed by any Governmental Authority.

 

“Termination
Event” means (a) the occurrence with respect to any ERISA Plan of (i) an
event described in Section 4041A of ERISA, or (ii) the withdrawal of any ERISA
Affiliate from an ERISA Plan if such withdrawal is described in Section 4201(a)
of ERISA, or (iii) a reportable event described in Section 4043(c)(5) or (6) of
ERISA or (iv) any other reportable event described in Section 4043(c) of ERISA
other than a reportable event not subject to the provision for 30-day notice to
the Pension Benefit Guaranty Corporation pursuant to a waiver by such
corporation (determined under final regulations promulgated by the Pension
Benefit Guaranty Corporation regarding such waivers as in effect on the date of
this Credit Agreement) under Section 4043(a) or 4043(b)(4) of ERISA, or (b) the
withdrawal of any ERISA Affiliate from an ERISA Plan during a plan year in
which it was a “substantial employer” as defined in Section 4001(a)(2) of
ERISA, or (c) the filing of a notice of intent to terminate any ERISA Plan or
the treatment of any ERISA Plan amendment as a termination under Section
4041(c) of ERISA, or (d) the institution of proceedings to terminate any ERISA
Plan by the Pension Benefit Guaranty Corporation under Section 4042 of ERISA,
or (e) any other event or condition which might constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any ERISA Plan.

 

“Total
Leverage Ratio” means the ratio, determined as of the end of each of
Borrower’s Fiscal Quarters for the then most-recently ended four consecutive
Fiscal Quarters, of (a) its Consolidated Total Indebtedness on such day to (b)
its Consolidated EBITDA for such period.

 

“Tribunal”
means any government, any arbitration panel, any court or any governmental
department, commission, board, bureau, agency or instrumentality of the United
States of America or any state, province, commonwealth, nation, territory,
possession, county, parish, town, township, village or municipality, whether
now or hereafter constituted or existing.

 

“Type”
means, with respect to any Loans, the characterization of such Loans as either
Base Rate Loans or Eurodollar Loans.

 

Exhibits and Schedules; Additional Definitions.  All Exhibits and Schedules attached to this
Agreement are a part hereof for all purposes. 
Reference is hereby made to Schedule 4.1 for the meaning of
certain terms defined therein and used but not defined herein, which
definitions are incorporated herein by reference.

 

Amendment of Defined Instruments.  Unless the context otherwise requires or
unless otherwise provided herein the terms defined in this Agreement which
refer to a particular agreement, instrument or document also refer to and
include all renewals, extensions, modifications, amendments and restatements of
such agreement, instrument or document, provided that nothing contained in this
section shall be construed to authorize any such renewal, extension,
modification, amendment or restatement.

 

References and Titles.  All references in this Agreement to Exhibits,
Schedules, articles, sections, subsections and other subdivisions refer to the
Exhibits, Schedules, articles, sections, subsections and other subdivisions of
this Agreement unless expressly provided otherwise.  

 

19

 

Exhibits and Schedules to any Loan Document
shall be deemed incorporated by reference in such Loan Document.  References to any document, instrument, or
agreement (a) shall include all exhibits, schedules, and other attachments
thereto, and (b) shall include all documents, instruments, or agreements issued
or executed in replacement thereof. 
Titles appearing at the beginning of any subdivisions are for convenience
only and do not constitute any part of such subdivisions and shall be
disregarded in construing the language contained in such subdivisions.  The words “this Agreement”, “this instrument”,
“herein”, “hereof”, “hereby”, “hereunder” and words of similar import refer to
this Agreement as a whole and not to any particular subdivision unless
expressly so limited.  The phrases “this
section” and “this subsection” and similar phrases refer only to the sections
or subsections hereof in which such phrases occur.  The word “or” is not exclusive, and the word “including”
(in its various forms) means “including without limitation”.  Pronouns in masculine, feminine and neuter
genders shall be construed to include any other gender, and words in the
singular form shall be construed to include the plural and vice versa, unless
the context otherwise requires. 
Accounting terms have the meanings assigned to them by GAAP, as applied
by the accounting entity to which they refer. 
References to “days” shall mean calendar days, unless the term “Business
Day” is used.  Unless otherwise
specified, references herein to any particular Person also refer to its
successors and permitted assigns.

 

Calculations and Determinations.  All calculations under the Loan Documents of
interest chargeable with respect to Eurodollar Loans and of fees shall be made
on the basis of actual days elapsed (including the first day but excluding the
last) and a year of 360 days.  All other
calculations of interest made under the Loan Documents shall be made on the
basis of actual days elapsed (including the first day but excluding the last)
and a year of 365 or 366 days, as appropriate. 
Each determination by a Lender Party of amounts to be paid under Article
III or any other matters which are to be determined hereunder by a Lender Party
(such as any Eurodollar Rate, Adjusted Eurodollar Rate, Business Day, Interest
Period, or Reserve Requirement) shall, in the absence of manifest error, be
conclusive and binding.  Unless otherwise
expressly provided herein or unless Required Lenders otherwise consent all
financial statements and reports furnished to any Lender Party hereunder shall
be prepared and all financial computations and determinations pursuant hereto
shall be made in accordance with GAAP.

 

Joint Preparation; Construction of Indemnities and
Releases.  This
Agreement and the other Loan Documents have been reviewed and negotiated by
sophisticated parties with access to legal counsel and no rule of construction
shall apply hereto or thereto which would require or allow any Loan Document to
be construed against any party because of its role in drafting such Loan
Document.  All indemnification and
release provisions of this Agreement shall be construed broadly (and not
narrowly) in favor of the Persons receiving indemnification or being released.

 

THE LOANS
AND LETTERS OF CREDIT

 

Commitments to Lend; Notes.  Subject to the terms and conditions hereof,
each Revolving Lender agrees, severally and not jointly, to make Revolving
Loans to Borrower upon the request of Borrower from time to time during the
Commitment Period, provided that (a) subject to Sections 3.3, 3.4 and 3.6,
Revolving Loans of the same Type made on the same day shall be made by
Revolving Lenders in accordance with their respective Percentage Shares and 

 

20

 

as part of the same Borrowing; and
(b) after giving effect to such Revolving Loans, the Revolving Facility
Usage does not exceed the Aggregate Commitment then in effect.  The amount of all Revolving Loans in any
Borrowing must be greater than or equal to $100,000, or must equal the
remaining availability under the Aggregate Commitment.  The obligation of Borrower to repay to each
Revolving Lender the aggregate amount of all Revolving Loans made by such
Revolving Lender, together with interest accruing in connection therewith,
shall be evidenced by one or more promissory notes made by Borrower payable to
the order of such Revolving Lender in the principal amount of the Revolving
Loan Commitment of the applicable Revolving Lender, substantially in the form
of Exhibit 2.1 (each a “Revolving Note” and, collectively, the “Revolving
Notes”).  The amount of principal owing
on any Revolving Note at any given time shall be the aggregate amount of all
Revolving Loans theretofore made by such Revolving Lender minus all payments of
principal theretofore received by such Revolving Lender on such Revolving
Note.  Interest on each Revolving Note
shall accrue and be due and payable as provided herein.  Each Revolving Note shall be due and payable
as provided herein, and shall be due and payable in full on the Maturity
Date.  Subject to the terms and
conditions hereof, Borrower may borrow, repay, and reborrow hereunder.

 

Requests for Revolving Loans.  Borrower must give to Agent written or
electronic notice (or telephonic notice promptly confirmed in writing) of any
requested Borrowing of new Revolving Loans to be advanced by Revolving
Lenders.  Each such notice constitutes a “Borrowing
Notice” hereunder and must:

 

specify (i) the aggregate
amount of any such Borrowing of new Base Rate Loans and the date on which such
Base Rate Loans are to be advanced, or (ii) the aggregate amount of any such
Borrowing of new Eurodollar Loans, the date on which such Eurodollar Loans are
to be advanced (which shall be the first day of the Interest Period which is to
apply thereto), and the length of the applicable Interest Period; and

 

be received by Agent not
later than 11:00 a.m., Houston, Texas time, on (i) the day on which any such
Base Rate Loans are to be made, or (ii) the third Business Day preceding the
day on which any such Eurodollar Loans are to be made.

 

Each
such written request or confirmation must be made in the form and substance of
the “Borrowing Notice” attached hereto as Exhibit 2.2(b), duly
completed.  Each such telephonic request
shall be deemed a representation, warranty, acknowledgment and agreement by
Borrower as to the matters which are required to be set out in such written
confirmation.  Upon receipt of any such
Borrowing Notice, Agent shall give each Lender prompt notice of the terms
thereof.  If all conditions precedent to
such new Revolving Loans have been met, each Revolving Lender will on the date
requested promptly remit to Agent at Agent’s office in Houston, Texas the
amount of such Revolving Lender’s new Revolving Loan in immediately available
funds, and upon receipt of such funds, unless to its actual knowledge any
conditions precedent to such Revolving Loans have been neither met nor waived
as provided herein, Agent shall promptly make such Revolving Loans available to
Borrower.  Unless Agent shall have
received prompt notice from a Revolving Lender that such Revolving Lender will
not make available to Agent such Revolving Lender’s new Revolving Loan, Agent
may in its discretion assume that such Revolving Lender has made such Revolving
Loan available to Agent in accordance with this section and Agent may if it
chooses, in reliance upon such assumption, make such Revolving 

 

21

 

Loan
available to Borrower.  If and to the
extent such Revolving Lender shall not so make its new Revolving Loan available
to Agent, such Revolving Lender and Borrower severally agree to pay or repay to
Agent within three days after demand the amount of such Revolving Loan together
with interest thereon, for each day from the date such amount was made
available to Borrower until the date such amount is paid or repaid to Agent,
with interest at (i) the Federal Funds Rate, if such Revolving Lender is making
such payment and (ii) the interest rate applicable at the time to the other new
Revolving Loans made on such date, if Borrower is making such repayment.  If neither such Revolving Lender nor Borrower
pays or repays to Agent such amount within such three-day period, Agent shall
in addition to such amount be entitled to recover from such Revolving Lender
and from Borrower, on demand, interest thereon at the Default Rate, calculated
from the date such amount was made available to Borrower.  The failure of any Revolving Lender to make
any new Revolving Loan to be made by it hereunder shall not relieve any other
Revolving Lender of its obligation hereunder, if any, to make its new Revolving
Loan, but no Revolving Lender shall be responsible for the failure of any other
Revolving Lender to make any new Revolving Loan to be made by such other
Revolving Lender.

 

Continuations and Conversions of Existing Loans.  Borrower may make the following elections
with respect to Loans already outstanding: to convert Base Rate Loans to
Eurodollar Loans, to convert Eurodollar Loans to Base Rate Loans on the last
day of the Interest Period applicable thereto, and to continue Eurodollar Loans
beyond the expiration of such Interest Period by designating a new Interest
Period to take effect at the time of such expiration.  In making such elections, Borrower may
combine existing Loans made pursuant to separate Borrowings into one new
Borrowing or divide existing Loans made pursuant to one Borrowing into separate
new Borrowings, provided that Borrower may have no more than five Borrowings of
Eurodollar Loans outstanding at any time. 
To make any such election, Borrower must give to Agent written notice
(or telephonic notice promptly confirmed in writing) of any such Conversion or
Continuation of existing Loans, with a separate notice given for each new
Borrowing.  Each such notice constitutes
a “Continuation/Conversion Notice” hereunder and must:

 

specify the existing Loans
which are to be Continued or Converted;

 

specify (i) the aggregate
amount of any Borrowing of Base Rate Loans into which such existing Loans are
to be converted and the date on which such Continuation or Conversion is to
occur, or (ii) the aggregate amount of any Borrowing of Eurodollar Loans into
which such existing Loans are to be continued or converted, the date on which
such Continuation or Conversion is to occur (which shall be the first day of
the Interest Period which is to apply to such Eurodollar Loans), and the length
of the applicable Interest Period; and

 

be received by Agent not
later than  11:00 a.m., Houston, Texas
time, on (i) the day on which any such conversion to Base Rate Loans is to
occur, or (ii) the third Business Day preceding the day on which any such
Continuation or Conversion to Eurodollar Loans is to occur.

 

Each
such written request or confirmation must be made in the form and substance of
the “Continuation/Conversion Notice” attached hereto as Exhibit 2.3(c),
duly completed.  Each 

 

22

 

such
telephonic request shall be deemed a representation, warranty, acknowledgment
and agreement by Borrower as to the matters which are required to be set out in
such written confirmation.  Upon receipt
of any such Continuation/Conversion Notice, Agent shall give each Lender prompt
notice of the terms thereof.  Each
Continuation/Conversion Notice shall be irrevocable and binding on
Borrower.  During the continuance of any
Default, Borrower may not make any election to convert existing Loans into
Eurodollar Loans or continue existing Loans as Eurodollar Loans.  If (due to the existence of a Default or for
any other reason) Borrower fails to timely and properly give any
Continuation/Conversion Notice with respect to a Borrowing of existing Eurodollar
Loans at least three days prior to the end of the Interest Period applicable
thereto, such Eurodollar Loans shall automatically be converted into Base Rate
Loans at the end of such Interest Period. 
No new funds shall be repaid by Borrower or advanced by any Lender in
connection with any Continuation or Conversion of existing Loans pursuant to
this section, and no such Continuation or Conversion shall be deemed to be a
new advance of funds for any purpose; such Continuations and Conversions merely
constitute a change in the interest rate applicable to already outstanding
Loans.

 

Use of Proceeds.  Borrower shall use the Loans to provide
working capital for its operations and for other general corporate
purposes.  Borrower shall use all Letters
of Credit for its general corporate purposes. 
In no event shall the funds from any Loan or any Letter of Credit be
used directly or indirectly by any Person for personal, family, household or
agricultural purposes or for the purpose, whether immediate, incidental or
ultimate, of purchasing, acquiring or carrying any Margin Stock (except in
connection with an acquisition or Investment permitted under Section 7.7 which
doesn’t violate Regulation U of the Board of Governors of the Federal Reserve
System.) or to extend credit to others directly or indirectly for the purpose
of purchasing or carrying any such Margin Stock.  Borrower represents and warrants that
Borrower is not engaged principally, or as one of Borrower’s important
activities, in the business of extending credit to others for the purpose of
purchasing or carrying such Margin Stock.

 

Interest Rates and Fees; Payment Dates.  i)  Interest.  Subject to subsection (b) below, (i) each
Base Rate Loan shall bear interest on each day it is outstanding at the
Adjusted Base Rate in effect on such day, and (ii) each Eurodollar Loan shall
bear interest on each day during the related Interest Period at the related
Adjusted Eurodollar Rate in effect on such day, and (iii) if an Event of
Default has occurred and is continuing, the Loans shall bear interest as set
forth in Section 2.5(b) below. 
Notwithstanding the foregoing, Borrower may request from time to time
that Borrower and the Lender enter into a Hedging Contract providing for
interest rate protection (1) for a term expiring no earlier than one year after
the Closing Date; and (2) with other terms and conditions reasonably
satisfactory to Agent.

 

Default Rate.  If an Event of Default shall have occurred
and be continuing under Section 8.1(a), (b), (j)(i), (j)(ii), and (j)(iii) all
outstanding Loans shall bear interest at the applicable Default Rate.  In addition, if an Event of Default shall
have occurred and be continuing (other than under Section 8.1(a), (b), (j)(i),
(j)(ii) or (j)(iii)), Required Lenders may, by notice to Borrower, elect to
have the outstanding Loans bear interest at the applicable Default Rate,
whereupon such Loans shall bear interest at the applicable Default Rate until
the earlier of (i) the first date thereafter upon which there shall be no Event
of Default continuing and (ii) the date upon which Required Lenders shall have
rescinded such notice.

 

23

 

Commitment Fees.  In consideration of each Revolving Loan
Commitment of each Revolving Lender to make Revolving Loans, Borrower will pay
to Agent for the account of each Revolving Lender a fee (the “Commitment Fee”)
determined on a daily basis by multiplying the applicable Commitment Fee Rate
by the Percentage Share of such Revolving Lender of the unused portion of the
aggregate Revolving Loan Commitments on each day during the Commitment Period,
determined for each such day by deducting from the amount of the aggregate
Revolving Loan Commitments at the end of such day the Revolving Facility Usage
at the end of such day (calculated as if no Swingline Loans were
outstanding).  This Commitment Fee shall
be due and payable in arrears on the first day of each Fiscal Quarter and at
the end of the Commitment Period.

 

Additional Fees.  In addition to all other amounts due to Agent
under the Loan Documents, Borrower will pay fees to the Lead Arranger as
described in a letter agreement of even date herewith between Lead Arranger and
Borrower.

 

Payment Dates.  On each Interest Payment Date relating to
Base Rate Loans, Borrower shall pay to the Lenders all unpaid interest which
has accrued on the Base Rate Loans to but not including such Interest Payment
Date.  On each Interest Payment Date
relating to a Eurodollar Loan, Borrower shall pay to Lenders all unpaid interest
which has accrued on such Eurodollar Loan to but not including such Interest
Payment Date.

 

Optional Prepayments.  Borrower may, without penalty, (a) upon
notice to Agent to be received no later than 
11:00 a.m., Houston, Texas time, with respect to any Base Rate Loan and
(b) upon three Business Days’ notice to each Lender with respect to any
Eurodollar Loan, from time to time and without premium or penalty prepay the
Loans, in whole or in part, provided (i) that the aggregate amounts of all
partial prepayments of principal on the Notes equals $100,000 or any higher
integral multiple of $100,000; and (ii) that if Borrower prepays any Eurodollar
Loan on any day other than the last day of the Interest Period applicable
thereto, it shall pay to Lenders any amounts due under Section 3.5. Each prepayment
of principal of any Eurodollar Loan under this section shall be accompanied by
all interest then accrued and unpaid on the principal so prepaid.  Any principal or interest prepaid pursuant to
this section shall be in addition to, and not in lieu of, all payments
otherwise required to be paid under the Loan Documents at the time of such
prepayment.

 

Mandatory Prepayments.  ii)  If
at any time the Revolving Facility Usage exceeds the Aggregate Commitment
(whether due to a reduction in the Revolving Loan Commitments in accordance
with this Agreement, or otherwise), Borrower shall immediately upon demand
prepay the principal of the Loans (and after the Loans are repaid in full,
provide LC Collateral in accordance with Section 2.14(b)) in an amount at least
equal to such excess.

 

Intentionally Left Blank.

 

No later than the 366th day after the receipt of any Net Casualty
Proceeds aggregating in excess of $2,000,000 for any single transaction or
related series of transactions, Borrower shall apply such Net Casualty Proceeds
to repay the Revolving Loans, and the Revolving Loan Commitment shall be
permanently reduced in an aggregate amount equal to such Net Casualty Proceeds.

 

24

 

Each prepayment of principal
under this section shall be accompanied by all interest then accrued and unpaid
on the principal so prepaid.  Any
principal or interest prepaid pursuant to this section shall be in addition to,
and not in lieu of, all payments otherwise required to be paid under the Loan
Documents at the time of such prepayment.

 

Termination and Reduction of Revolving Loan
Commitments. 
iii) Unless previously terminated, the Revolving Loan Commitments
will terminate on the Maturity Date.

 

The Borrower may at any time
terminate, or from time to time reduce, without premium or penalty, the
Revolving Loan Commitments, but (i) each reduction of the Commitments must
be in an amount that is an integral multiple of $100,000 (unless such reduction
would reduce the unused Revolving Loan Commitments to zero) and (ii) the
Borrower shall not terminate or reduce the Revolving Loan Commitments if, after
giving effect to any concurrent prepayment of the Loans in accordance with Section 2.6
and Section 2.7, the sum of the aggregate Revolving Facility Usage would
exceed the Aggregate Commitment then in effect.

 

The Borrower shall notify
the Agent of any election to terminate or reduce the Commitments under Section 2.8(b) at
least three Business Days prior to the effective date of that termination or
reduction, specifying that election and the effective date thereof.  Promptly following receipt of any notice, the
Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrower
pursuant to this Section will be irrevocable, except that a notice of
termination of the Revolving Loan Commitments delivered by the Borrower may
state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower (by notice
to the Agent on or prior to the specified effective date) if such condition is
not satisfied.  Except as provided in the
immediately preceding sentence, any termination or reduction of the Revolving
Loan Commitments will be permanent and such Revolving Loan Commitments will not
be reinstated except pursuant to, and in accordance with, Section 2.17.  Except as provided in Section 2.18 each
reduction of the Revolving Loan Commitments must be made ratably among the
Lenders in accordance with their respective Revolving Loan Commitments.

 

Letters of Credit.  Subject to the terms and conditions hereof,
Borrower may during the Commitment Period request LC Issuer to, and LC Issuer
shall, issue one or more Letters of Credit, provided that, after taking such
Letter of Credit into account:

 

the Revolving Facility Usage
does not exceed the Aggregate Commitment (whether due to a reduction in the
Aggregate Commitment in accordance with this Agreement, or otherwise) at such
time; and

 

the expiration date of such
Letter of Credit is prior to the end of the Commitment Period.

 

All
Existing Letters of Credit shall be deemed to have been issued pursuant hereto,
and from and after the Closing Date shall be subject to and governed by the
terms and conditions hereof.

 

Requesting Letters of Credit.  Borrower must make written application for
any Letter of Credit at least two (2) Business Days (or such shorter
period as LC Issuer may in its discretion from time to time agree) before the
date on which Borrower desires for LC Issuer to issue such 

 

25

 

Letter of Credit.  By making any such written application
Borrower shall be deemed to have represented and warranted that the LC
Conditions described in Section 2.11 will be met as of the date of
issuance of such Letter of Credit.  Each
such written application for a Letter of Credit must be made in writing in the
form and substance of Exhibit 2.10, the terms and provisions of
which are hereby incorporated herein by reference (or in such other form as may
mutually be agreed upon by LC Issuer and Borrower).  Two (2) Business Days after the LC Conditions
for a Letter of Credit have been met (or if LC Issuer otherwise desires to
issue such Letter of Credit), LC Issuer will issue such Letter of Credit at LC
Issuer’s office in Houston, Texas.  If
any provisions of any LC Application conflict with any provisions of this
Agreement, the provisions of this Agreement shall govern and control.  Borrower shall promptly examine a copy of
each Letter of Credit and each amendment thereto that is delivered to it and,
in the event of any claim of noncompliance with Borrower’s instructions or
other irregularity, Borrower will promptly notify LC Issuer.

 

Reimbursement and Participations.  iv)  Reimbursement
by Borrower.  Each Matured LC
Obligation shall constitute a Revolving Loan by LC Issuer to Borrower if not
paid by the Borrower in accordance with the following sentence.  Borrower promises to pay to LC Issuer, or to
LC Issuer’s order, on the Business Day immediately following the day on which a
demand is made, the full amount of each Matured LC Obligation, together with
interest thereon at the Default Rate applicable to Base Rate Loans.  The obligation of Borrower to reimburse LC
Issuer for each Matured LC Obligation shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement (including any LC Application) under all circumstances, including the
following: (i) any lack of validity or enforceability of such Letter of
Credit or any other agreement or instrument relating thereto; (ii) the
existence of any claim, counterclaim, set-off, defense or other right that
Borrower may have at any time against any beneficiary or any transferee of such
Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), LC Issuer or any other Person, whether in connection
with this Agreement, the transactions contemplated hereby or by such Letter of
Credit or any agreement or instrument relating thereto, or any unrelated
transaction; (iii) any draft, demand, certificate or other document
presented under such Letter of Credit proving to be forged, fraudulent, invalid
or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect; or any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under such Letter
of Credit; (iv) any payment by LC Issuer under such Letter of Credit
against presentation of a draft or certificate that does not strictly comply
with the terms of such Letter of Credit; or (v) any other circumstance or
happening whatsoever, whether or not similar to any of the foregoing.  Without limiting the generality of the
foregoing, it is expressly agreed that the absolute and unconditional nature of
Borrower’s obligations under this section to reimburse LC Issuer for each
drawing under a Letter of Credit will not be excused by the gross negligence or
willful misconduct of LC Issuer. 
However, the foregoing shall not be construed to excuse LC Issuer from
liability to Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by Borrower
to the extent permitted by applicable Law) suffered by Borrower that are caused
by LC Issuer’s gross negligence or willful misconduct in determining whether
drafts and other documents presented under a Letter of Credit comply with the
terms thereof.

 

Letter of Credit Advances.  If the beneficiary of any Letter of Credit
makes a draft or other demand for payment thereunder then Borrower may, during
the interval between the 

 

26

 

making thereof and the honoring thereof by LC
Issuer, request Lenders to make Loans to Borrower in the amount of such draft
or demand, which Loans shall be made concurrently with LC Issuer’s payment of
such draft or demand and shall be immediately used by LC Issuer to repay the
amount of the resulting Matured LC Obligation. 
Such a request by Borrower shall be made in compliance with all of the
provisions hereof, provided that for the purposes of the first sentence of Section 2.1(b),
the amount of such Loans shall be considered, but the amount of the Matured LC
Obligation to be concurrently paid by such Loans shall not be considered.

 

Participation by Lenders.  LC Issuer irrevocably agrees to grant and
hereby grants to each Lender, and to induce LC Issuer to issue Letters of
Credit hereunder each Lender irrevocably agrees to accept and purchase and
hereby accepts and purchases from LC Issuer, on the terms and conditions
hereinafter stated and for such Lender’s own account and risk, an undivided
interest equal to such Lender’s Percentage Share of LC Issuer’s obligations and
rights under each Letter of Credit issued hereunder and the amount of each
Matured LC Obligation paid by LC Issuer thereunder.  Each Lender unconditionally and irrevocably
agrees with LC Issuer that, if a Matured LC Obligation is paid under any Letter
of Credit for which LC Issuer is not reimbursed in full by Borrower in
accordance with the terms of this Agreement and the related LC Application
(including any reimbursement by means of concurrent Loans or by the application
of LC Collateral), such Lender shall (in all circumstances and without set-off
or counterclaim) pay to LC Issuer on demand, in immediately available funds at
LC Issuer’s address for notices hereunder, such Lender’s Percentage Share of
such Matured LC Obligation (or any portion thereof which has not been
reimbursed by Borrower).  Each Lender’s
obligation to pay LC Issuer pursuant to the terms of this subsection is
irrevocable and unconditional.  If any
amount required to be paid by any Lender to LC Issuer pursuant to this
subsection is paid by such Lender to LC Issuer within three Business Days after
the date such payment is due, LC Issuer shall in addition to such amount be
entitled to recover from such Lender, on demand, interest thereon calculated
from such due date at the Federal Funds Rate. 
If any amount required to be paid by any Lender to LC Issuer pursuant to
this subsection is not paid by such Lender to LC Issuer within three Business
Days after the date such payment is due, LC Issuer shall in addition to such
amount be entitled to recover from such Lender, on demand, interest thereon
calculated from such due date at the Default Rate.

 

Distributions to
Participants.  Whenever LC
Issuer has in accordance with this section received from any Lender payment of
such Lender’s Percentage Share of any Matured LC Obligation, if LC Issuer
thereafter receives any payment of such Matured LC Obligation or any payment of
interest thereon (whether directly from Borrower or by application of LC
Collateral or otherwise, and excluding only interest for any period prior to LC
Issuer’s demand that such Lender make such payment of its Percentage Share), LC
Issuer will distribute to such Lender its Percentage Share of the amounts so
received by LC Issuer; provided, however, that if any such payment received by
LC Issuer must thereafter be returned by LC Issuer, such Lender shall return to
LC Issuer the portion thereof which LC Issuer has previously distributed to it.

 

Calculations.  A written advice setting forth in reasonable
detail the amounts owing under this section, submitted by LC Issuer to Borrower
or any Lender from time to time, shall be conclusive, absent manifest error, as
to the amounts thereof.

 

27

 

Letter of Credit Fees.  In consideration of LC Issuer’s issuance of
any Letter of Credit, Borrower agrees to pay (a) to Agent, for the account
of all Lenders in accordance with their respective Percentage Shares, a per
annum letter of credit fee on the undrawn face amount of each outstanding
Letter of Credit at a rate equal to the rate specified as the LC Fee on the
Pricing Schedule, and (b) to such LC Issuer for its own account, a letter
of credit fronting fee at a rate equal to 0.125% per annum.  The letter of credit fee and the letter of
credit fronting fee will be calculated on the undrawn face amount of each
Letter of Credit outstanding on each day at the above-applicable rates and will
be due and payable in arrears on the first day of each Fiscal Quarter and at
the end of the Commitment Period.

 

No Duty to Inquire.  v) Drafts and Demands.  LC Issuer is authorized and instructed to
accept and pay drafts and demands for payment under any Letter of Credit
without requiring, and without responsibility for, any determination as to the
existence of any event giving rise to said draft, either at the time of
acceptance or payment or thereafter.  LC
Issuer is under no duty to determine the proper identity of anyone presenting
such a draft or making such a demand (whether by tested telex or otherwise) as
the officer, representative or Agent of any beneficiary under any Letter of
Credit, and payment by LC Issuer to any such beneficiary when requested by any
such purported officer, representative or Agent is hereby authorized and
approved.  Borrower releases each Lender
Party from, and agrees to hold each Lender Party harmless and indemnified
against, any liability or claim in connection with or arising out of the
subject matter of this section, which indemnity shall apply whether or not any such
liability or claim is in any way or to any extent caused, in whole or in part,
by any negligent act or omission of any kind by any Lender Party, provided only
that no Lender Party shall be entitled to indemnification for that portion, if
any, of any liability or claim which is proximately caused by its own
individual gross negligence or willful misconduct, as determined in a final
judgment.

 

Extension of Maturity.  If the maturity of any Letter of Credit is
extended by its terms or by Law or governmental action, if any extension of the
maturity or time for presentation of drafts or any other modification of the
terms of any Letter of Credit is made at the request of any Restricted Person,
or if the amount of any Letter of Credit is increased at the request of any
Restricted Person, this Agreement shall be binding upon all Restricted Persons
with respect to such Letter of Credit as so extended, increased or otherwise
modified, with respect to drafts and property covered thereby, and with respect
to any action taken by LC Issuer, LC Issuer’s correspondents, or any Lender
Party in accordance with such extension, increase or other modification.

 

Transferees of Letters of
Credit.  If any Letter of Credit
provides that it is transferable, LC Issuer shall have no duty to determine the
proper identity of anyone appearing as transferee of such Letter of Credit, nor
shall LC Issuer be charged with responsibility of any nature or character for
the validity or correctness of any transfer or successive transfers, and payment
by LC Issuer to any purported transferee or transferees as determined by LC
Issuer is hereby authorized and approved, and Borrower releases each Lender
Party from, and agrees to hold each Lender Party harmless and indemnified
against, any liability or claim in connection with or arising out of the
foregoing, which indemnity shall apply whether or not any such liability or
claim is in any way or to any extent caused, in whole or in part, by any
negligent act or omission of any kind by any Lender Party, provided only that
no Lender Party shall be entitled to 

 

28

 

indemnification for that portion, if any, of any
liability or claim which is proximately caused by its own individual gross
negligence or willful misconduct, as determined in a final judgment.

 

LC Collateral.  vi) Intentionally Left Blank.

 

Acceleration of LC
Obligations.  If the
Obligations or any part thereof become immediately due and payable pursuant to Section 8.1
then, unless Required Lenders otherwise specifically elect to the contrary
(which election may thereafter be retracted by Required Lenders at any time),
all LC Obligations shall be deemed to become immediately due and payable
without regard to whether or not actual drawings or payments on the Letters of
Credit have occurred, and Borrower shall be obligated to pay to LC Issuer
immediately an amount equal to the aggregate LC Obligations which are then
outstanding, which amount shall be held by LC Issuer as security for LC
Obligations (the “LC Collateral”) and the other Obligations, and such LC
Collateral may be applied from time to time to any Matured LC Obligations or
any other Obligations which are due and payable.

 

Investment of LC Collateral.  Pending application thereof, all LC Collateral
shall be invested by the Agent in such Investments as the Agent may choose in
its sole discretion.  All interest on
(and other proceeds of) such Investments shall be reinvested or applied to
Matured LC Obligations or other Obligations which are due and payable.  When all Obligations have been satisfied in
full, including all LC Obligations, all Letters of Credit have expired or been
terminated, and all of Borrower’s reimbursement obligations in connection
therewith have been satisfied in full or when the condition pursuant to which
the LC Collateral was required no longer exists, the Agent shall release any
remaining LC Collateral.  Borrower hereby
assigns and grants to the Agent a continuing security interest in all LC
Collateral paid by it to the Agent, all Investments purchased with such LC
Collateral, and all proceeds thereof to secure its Matured LC Obligations and
its Obligations under this Agreement, each Note, and the other Loan Documents,
and Borrower agrees that such LC Collateral, Investments and proceeds
shall be subject to all of the terms and conditions of the Security
Documents.  Borrower further agrees that
the Agent shall have all of the rights and remedies of a secured party under
the Uniform Commercial Code as adopted in the State of Texas with respect to
such security interest and that an Event of Default under this Agreement shall
constitute a default for purposes of such security interest.

 

Payment of LC Collateral.  When Borrower is required to provide LC
Collateral for any reason and fails to do so on the day when required,  the Agent or LC Issuer  may without notice to Borrower or any other
Restricted Person provide such LC Collateral (whether by application of
proceeds of other Collateral, by transfers from other accounts maintained with
the Agent or LC Issuer, or otherwise) using any available funds of Borrower or
any other Person also liable to make such payments.  Any such amounts which are required to be
provided as LC Collateral and which are not provided on the date required shall,
for purposes of each Security Document, be considered past due Obligations
owing hereunder, and LC Issuer is hereby authorized to exercise its respective
rights under each Security Document to obtain such amounts.

 

Existing Letters of Credit.  On the effective date of this Agreement,
without further action by any party hereto, (x) the LC Issuer shall be
deemed to have granted to each Lender, and each 

 

29

 

Lender shall be deemed to have acquired from
the LC Issuer, a participation in each of the Existing Letters of Credit equal
to such Lender’s Percentage Share of (A) the aggregate amount available to
be drawn under such Existing Letters of Credit and (B) the aggregate
amount of any outstanding reimbursement obligations in respect thereof.  With respect to each of the Existing Letters
of Credit (i) if the LC Issuer has heretofore sold a participation therein
to a Lender, the LC Issuer and such Lender agree that such participation shall
be automatically canceled on the effective date of this Agreement and (ii) if
the LC Issuer has heretofore sold a participation therein to any bank or
financial institution that is not a Lender, then the LC Issuer shall procure
the termination of such participation on or prior to the effective date of this
Agreement.  On and after the effective
date of this Agreement, each of the Existing Letters of Credit shall be a
Letter of Credit issued hereunder.

 

Swingline Loans.  (a) Subject to the terms and conditions hereof, upon the request
of Borrower from time to time during the Commitment Period, the Swingline
Lender may, but will not be obligated to, make swingline loans (the “Swingline
Loans”) to Borrower; notwithstanding the fact that such Swingline Loans,
when aggregated with the Percentage Share of the Revolving Loans and LC
Obligations of the Lender acting as Swingline Lender, may exceed such Lender’s
Revolving Loan Commitment; provided,
however that the (y) aggregate principal amount of outstanding Swingline
Loans at any time outstanding shall not exceed $10,000,000, and (z) Swingline
Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan. 
Notwithstanding the foregoing, the aggregate outstanding combined
principal balance of the Revolving Loans and Swingline Loans outstanding at any
time together with all LC Obligations shall not exceed the Aggregate
Commitment.  Each Swingline Loan (i) shall
be a Base Rate Loan, (ii) shall be made in the minimum amount of
$100,000.00 and integral multiples thereof or in the amount of any unused
portion of the Aggregate Commitment, and (iii) may be repaid and, so long
as no Default or Event of Default exists hereunder, reborrowed, at the option
of the Borrower in accordance with the provisions hereof.  There shall be no further Borrowings under
Swingline Loans after the Maturity Date.

 

The Swingline Lender may by
written notice given to the Agent not later than 9:00 a.m. Houston, Texas
time on any Business Day require the Lenders to acquire participations on such
Business Day in all or a portion of the Swingline Loans outstanding.  Such notice shall specify the aggregate
amount of Swingline Loans in which Lenders will participate.  Promptly upon receipt of such notice, the
Agent will give notice thereof to each Lender, specifying in such notice such
Lender’s Percentage Share of such Swingline Loan or Loans.  Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the
Agent, for the account of the Swingline Lender, such Lender’s Percentage Share
of such Swingline Loan or Loans.  Each
Lender acknowledges and agrees that its obligation to acquire participations in
Swingline Loans pursuant to this paragraph is absolute and unconditional and shall
not be affected by any circumstance whatsoever, including the occurrence and
continuance of a Default, Event of Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. 
Each Lender shall comply with its obligation under this paragraph by
wire transfer of immediately available funds, in the same manner as provided in
Section 2.2 with respect to Loans made by such Lender (and Section 2.2
shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Agent shall promptly pay to the Swingline
Lender the 

 

30

 

amounts so received by it from the Lenders.  The Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and
thereafter payments in respect of such Swingline Loan shall be made to the
Agent and not to the Swingline Lender. 
Any amounts received by the Swingline Lender from the Borrower (or other
party on behalf of the Borrower) in respect of a Swingline Loan after receipt
by the Swingline Lender of the proceeds of a sale of participations therein
shall be promptly remitted to the Agent; any such amounts received by the Agent
shall be promptly remitted by the Agent to the Lenders that shall have made
their payments pursuant to this paragraph and to the Swingline Lender, as their
interests may appear; provided that
any such payment so remitted shall be repaid to the Swingline Lender or to the
Agent, as applicable, if and to the extent such payment is required to be
refunded to the Borrower for any reason. 
The purchase of participations in a Swingline Loan pursuant to this
paragraph shall not relieve the Borrower of any default in the payment thereof.

 

Whenever the Borrower
requests a Swingline Loan it must deliver to Agent a Borrowing Notice as
described in Section 2.2.

 

The Borrower’s obligation to
repay the Swingline Loans made by the Swingline Lender shall be evidenced by a
revolving credit promissory note duly executed and delivered by the Borrower to
the Swingline Lender substantially in the form of Exhibit 2.16 hereto (the
“Swingline Note”), and the Swingline Note shall (i) be payable to the
order of the Swingline  Lender and be
dated as of the Closing Date, (ii) be in a stated principal amount equal
to $10,000,000, (iii) prior to the Maturity Date, be payable as provided
herein and mature on the Maturity Date, (iv) bear interest as provided in
this Section 2.16 and (v) be entitled to the benefits of this
Agreement and the other Loan Documents.

 

All outstanding principal
(and any accrued, unpaid interest) of any Swingline Loan will be due and
payable on the earliest of (i) the Maturity Date, (ii) the first date
after such Swingline Loan is made that is the last day of a calendar month and
is at least two Business Days after such Swingline Loan is made, and (iii) the
first date that a Revolving Loan is made after the date of such Swingline Loan.

 

The unpaid principal amount
of each Swingline Loan shall bear interest at an annual rate equal to the
Adjusted Base Rate in effect from time to time.

 

The obligation of the
Swingline Lender to make Swingline Loans to the Borrower is subject to the same
conditions precedent for the making of Loans under Section 4.2.

 

Increase of Commitments.  vii) 
Subject to Section 2.17(b), the Borrower may increase the Aggregate
Commitment then in effect by entering into an Incremental Commitment Agreement
with one or more banks or financial institutions (each an “Incremental
Lender”), pursuant to which each such Incremental Lender’s Revolving Loan
Commitment shall be increased or, if such Incremental Lender was not a Lender
prior to entering such Incremental Commitment Agreement, pursuant to which such
Incremental Lender makes and is allocated a Revolving Loan Commitment.

 

Any increase in the
Aggregate Commitment pursuant to this Section 2.17 will be subject to the
satisfaction of the following conditions:

 

31

 

no Event of Default has occurred and is continuing;

 

the Borrower and each Incremental Lender shall have
executed and delivered an Incremental Commitment Agreement and each Incremental
Lender, if not already a Lender, shall have delivered to the Agent a completed
administrative questionnaire;

 

the Agent shall have delivered its prior written
consent, which consent shall not be unreasonably withheld, to each such
Incremental Lender, unless such Incremental Lender is already a Lender or an
Affiliate of a Lender;

 

each such increase shall be at least $5,000,000;

 

the cumulative increase in Revolving Loan
Commitments pursuant to this Section 2.19 shall not exceed $50,000,000;

 

no event shall have occurred since December 31,
2009, with respect to Borrower and its Subsidiaries, taken as a whole, that has
resulted, or could reasonably be expected to result, in a Material Adverse
Change;

 

on the effective date of such increase, no
Eurodollar Loan shall be outstanding or if any Eurodollar Loans are
outstanding, then the effective date of such increase will be the last day of
the Interest Period in respect of such Eurodollar Loans unless the Borrower
pays compensation pursuant to Section 3.5;

 

the aggregate amount of the Lenders’ Revolving Loan
Commitments shall not exceed $175,000,000 without the approval of all Lenders;
and

 

the Agent shall have received such corporate
resolutions of the Borrower and legal opinions of counsel to the Borrower as
the Agent may reasonably request with respect thereto, in each case in form and
substance reasonably satisfactory to the Agent.

 

Upon the effectiveness of
each Incremental Commitment Agreement executed by an Incremental Lender, (i) such
Incremental Lender will become a Lender for all purposes and to the same extent
as if originally a party hereto and will be bound by and entitled to the
benefits of this Agreement, (ii) the Revolving Loan Commitments and
Aggregate Commitment will be deemed to include the new or increased Revolving
Loan Commitment of such Incremental Lender, and (iii) such Incremental
Lender shall purchase a pro rata portion of the outstanding Loans (and
participation interests in Letters of Credit) from each of the other Lenders
(and such Lenders hereby agree to sell and to take all such further action to
effectuate such sale) so that each Lender (including each Incremental Lender)
holds its Percentage Share of the Revolving Facility Usage.

 

Upon its receipt of a duly
completed Incremental Commitment Agreement, executed by the Borrower and each
Incremental Lender party thereto, and the administrative questionnaire referred
to in Section 2.17(b)(ii), and subject to the satisfaction of the other
conditions of Section 2.17, the Agent shall accept such Incremental
Commitment Agreement and record the information contained therein in the
Register.  No increase in the aggregate
Revolving Loan 

 

32

 

Commitments will be effective for purposes of this
Agreement unless the relevant Incremental Commitment Agreement shall have been
delivered to the Agent.

 

Defaulting Lenders.  Notwithstanding any provision of this
Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the
following provisions will apply for so long as that Lender is a Defaulting
Lender:

 

Such Defaulting Lender shall
not be entitled to fees that would otherwise have accrued during such period
under Section 2.5(c), and such fees shall cease to accrue during such
period with respect to such Defaulting Lender’s unused Revolving Loan
Commitment;

 

the Revolving Loan Commitment
and Percentage Share of Revolving Facility Usage of the Defaulting Lender will
not be included in determining whether all Lenders or the Required Lenders have
taken or may take any action hereunder (including any consent to any amendment
or waiver pursuant to Section 10.1), and the definition of “Required
Lenders” will automatically be deemed modified accordingly for the duration of
such period; provided, that any such amendment, waiver, determination, consent,
or notification that would increase or extend the term of the Revolving Loan
Commitment of such Defaulting Lender, extend the date fixed for the payment of
principal or interest owing to such Defaulting Lender hereunder, reduce the
principal amount of any Obligation owing to such Defaulting Lender, reduce the
amount of or the rate or amount of interest on any amount owing to such
Defaulting Lender or of any fee payable to such Defaulting Lender hereunder, or
alter the terms of this proviso, will require the consent of the Defaulting
Lender.  If a Defaulting Lender’s consent
to an amendment, waiver, determination, consent, or notification is required
pursuant to this Section 2.18 or any other provision in the Loan
Documents, and such Defaulting Lender has failed to respond to a written
request from the Agent to approve such waiver, amendment, determination,
consent, or notification for 10 Business Days after such Defaulting Lender’s
receipt of such request, such Defaulting Lender will be deemed to have approved
such amendment, waiver, determination, consent, or notification;

 

if any Swingline Loan or LC
Obligation exists at the time a Lender becomes a Defaulting Lender then:

 

all or any part of such Swingline Loan or LC
Obligation will be reallocated among the non-Defaulting Lenders in accordance
with their respective Percentage Shares 
but only to the extent (x) the sum of all non-Defaulting Lenders’
Percentage Shares of the Revolving Facility Usage plus the portion of such
Defaulting Lender’s Percentage Share of such Swingline Loan or LC Obligation to
be reallocated does not exceed the total of all non-Defaulting Lenders’
Revolving Loan Commitments and (y) the conditions set forth in Section 4.2
are satisfied at that time; and

 

if the reallocation described in clause (i) above
cannot, or can only partially, be effected, the Borrower shall within one
Business Day following notice by the Agent (x) first, prepay such
Swingline Loans and (y) second, cash collateralize such Defaulting Lender’s
Percentage Share of the LC Obligations (after giving effect to any partial
reallocation pursuant to clause (i) above) in accordance with the
procedures set forth in Section 2.14 for so long as such LC Obligation is
outstanding ;

 

33

 

if the Borrower cash collateralizes any portion of
such Defaulting Lender’s Percentage Share of the LC Obligations pursuant to
this Section 2.17(c), the Borrower shall not be required to pay any fees
to such Defaulting Lender or any other Person pursuant to Section 2.12
with respect to such cash collateralized portion of such Defaulting Lender’s
Percentage Share of the LC Obligations during the period those LC Obligations
are cash collateralized;

 

if LC Obligations are allocated to non-Defaulting
Lenders pursuant to Section 2.18(c)(i), then the fees payable to the
Lenders pursuant to Section 2.12 will be adjusted to reflect the
non-Defaulting Lenders’ post-allocation Percentage Shares; or

 

if any portion of any Defaulting Lender’s Percentage
Share of the LC Obligations is neither cash collateralized pursuant to Section 2.18(c)(ii) nor
reallocated pursuant to Section 2.18(c)(i), then, without prejudice to any
rights or remedies of the LC Issuer or any Lender hereunder, any letter of
credit fees payable under Section 2.12(a) with respect to such
non-cash collateralized, unreallocated portion of such Defaulting Lender’s
Percentage Share of the LC Obligations will be payable to the LC Issuer until
such portion of such Defaulting Lender’s Percentage Share of the LC Obligations
is cash collateralized and/or reallocated or such Defaulting Lender ceases to
be a Defaulting Lender;

 

so long as any Lender is a
Defaulting Lender, the Swingline Lender will not be required to fund any
Swingline Loan and the LC Issuer will not be required to issue, amend or
increase any Letter of Credit, unless it is satisfied that the related exposure
will be 100% covered by the Revolving Loan Commitments of the non-Defaulting
Lenders and/or cash collateral will be provided by the Borrower in accordance
with Section 2.18(c)(ii), and participating interests in any such newly
issued or increased Letter of Credit or newly made Swingline Loan will be
allocated among non-Defaulting Lenders in a manner consistent with Section 2.18(c)(i) (and
Defaulting Lenders will not participate therein);

 

any amount payable to such
Defaulting Lender hereunder (whether on account of principal, interest, fees or
otherwise and including any amount that would otherwise be payable to such
Defaulting Lender pursuant to Section 9.6 but excluding Section 3.8)
shall, in lieu of being distributed to such Defaulting Lender, be retained by
the Agent in a segregated account and, subject to any applicable requirements
of law, be applied at such time or times as may be determined by the Agent (i) first,
to the payment of any amounts owing by such Defaulting Lender to the Agent
hereunder, (ii) second, pro rata, to
the payment of any amounts owing by such Defaulting Lender to the LC Issuer or
Swingline Lender hereunder, (iii) third, to the funding of any Loan or the
funding or cash collateralization of any participating interest in any
Swingline Loan or Letter of Credit in respect of which such Defaulting Lender
has failed to fund its portion as required by this Agreement, as determined by
the Agent, (iv) fourth, if so determined by the Agent and the Borrower,
held in such account as cash collateral for future funding obligations of the
Defaulting Lender under this Agreement, (v) fifth, pro rata,
to the payment of any amounts owing to the Borrower or the Lenders as a result
of any judgment of a court of competent jurisdiction obtained by the Borrower
or any Lender against such Defaulting Lender as a result of such Defaulting
Lender’s breach of its obligations under this Agreement

 

34

 

and (vi) sixth, to such Defaulting Lender or as
otherwise directed by a court of competent jurisdiction; and

 

If there is not in existence
a Default or Event of Default the Borrower may terminate the unused amount of
the Revolving Loan Commitment of a Defaulting Lender upon not less than three
Business Days’ prior notice to the Agent (which will promptly notify the
Lenders thereof); provided that such termination shall not be deemed to be a
waiver or release of any claim the Borrower, the Agent, the LC Issuer, the
Swingline Lender, or any Lender may have against such Defaulting Lender.

 

PAYMENTS TO
LENDERS

 

General Procedures.  Borrower will make each payment which it owes
under the Loan Documents to Agent for the account of the Lender Party to whom
such payment is owed, in lawful money of the United States of America, without
set-off, deduction or counterclaim, and in immediately available funds.  Each such payment must be received by Agent
not later than 11:00 a.m., Houston, Texas time, on the date such payment
becomes due and payable.  Any payment
received by Agent after such time will be deemed to have been made on the next
following Business Day.  Should any such
payment become due and payable on a day other than a Business Day, the maturity
of such payment shall be extended to the next succeeding Business Day, and, in
the case of a payment of principal or past due interest, interest shall accrue
and be payable thereon for the period of such extension as provided in the Loan
Document under which such payment is due. 
Each payment under a Loan Document shall be due and payable at the place
set forth for Agent on Schedule 3.1 hereto. When Agent collects or
receives money on account of the Obligations, Agent shall distribute all money
so collected or received, and each Lender Party shall apply all such money so
distributed, as follows (except as otherwise provided in Section 2.18(e) and
Section 8.3):

 

first, for the payment of
all Obligations which are then due (and if such money is insufficient to pay
all such Obligations, first to any reimbursements due Agent under Section 6.9
or 10.4 and then to the partial payment of all other Obligations then due in
proportion to the amounts thereof, or as Lender Parties shall otherwise agree);

 

then for the prepayment of amounts
owing under the Loan Documents (other than principal of the Loans) if so
specified by Borrower;

 

then for the prepayment of
principal of the Loans, together with accrued and unpaid interest on the
principal so prepaid; and

 

last, for the payment or
prepayment of any other Obligations.

 

All
payments applied to principal or interest on any Note shall be applied first to
any interest then due and payable, then to principal then due and payable, and
last to any prepayment of principal and interest in compliance with Sections
2.6 and 2.7.  Subject to Section 2.18(e),
all distributions of amounts described in any of subsections (b), (c) or (d) above
shall be made by Agent pro rata to each Lender Party then owed Obligations
described in such subsection in 

 

35

 

proportion
to all amounts owed to all Lender Parties which are described in such
subsection; provided that if any Lender then owes payments to LC Issuer for the
purchase of a participation under Section 2.11(c) or to Agent under Section 9.4,
any amounts otherwise distributable under this section to such Lender shall be
deemed to belong to LC Issuer, or Agent, respectively, to the extent of such
unpaid payments, and Agent shall apply such amounts to make such unpaid
payments rather than distribute such amounts to such Lender.

 

Capital Reimbursement.  If either (a) the introduction or
implementation after the date hereof of or the compliance with or any change
after the date hereof in or in the interpretation of any Law regarding capital
adequacy, or (b) the introduction or implementation after the date hereof
of or the compliance with any request, directive or guideline issued after the
date hereof from any central bank or other governmental authority (whether or
not having the force of Law) regarding capital requirements has or would have
the effect of reducing the rate of return on any Lender Party’s capital, or on
the capital of any corporation controlling such Lender Party, as a consequence
of the Loans made, or Letters of Credit issued, by such Lender Party, to a
level below that which such Lender Party or such corporation could have
achieved but for such change (taking into consideration such Lender Party’s
policies and the policies of any such corporation with respect to capital
adequacy), then from time to time Borrower will pay to Agent for the benefit of
such Lender Party, within five (5) Business Days of demand therefore by
such Lender Party, such additional amount or amounts which such Lender Party
shall determine to be appropriate to compensate such Lender Party for such
reduction.

 

Increased Cost of Eurodollar Loans or Letters of
Credit.  viii) If any change after the
date hereof in any applicable Law (whether now in effect or hereinafter enacted
or promulgated, including Regulation D) or any interpretation or administration
thereof by any governmental authority charged with the interpretation or
administration thereof (whether or not having the force of Law):

 

shall change the basis of taxation of payments to
any Lender Party of any principal, interest, or other amounts attributable to
any Eurodollar Loan or Letter of Credit or otherwise due under this Agreement
in respect of any Eurodollar Loan or Letter of Credit (other than Reimbursable
Taxes governed by Section 3.6 and taxes imposed on or measured by its
overall net income, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which it is organized or otherwise resides for tax purposes or
maintains any Applicable Lending Office); or

 

shall change, impose, modify, apply or deem
applicable any reserve, special deposit or similar requirements in respect of
any Eurodollar Loan made by any Lender Party or any Letter of Credit (excluding
any reserve requirement included in the computation of the Adjusted Eurodollar
Rate) or against assets of, deposits with or for the account of, or credit
extended by, such Lender Party; or

 

shall impose on any Lender Party or the interbank
eurocurrency deposit market any condition affecting any Eurodollar Loan or
Letter of Credit,

 

the
result of which is to increase the cost to any Lender Party of agreeing to make
or making, funding or maintaining Eurodollar Loans or (as the case may be)
issuing or participating in 

 

36

 

Letters
of Credit, or a reduction in the amount received or receivable by such Lender
in connection with any of the foregoing, then such Lender Party shall promptly
notify Agent and Borrower in writing of the happening of such event and of the
amount required to compensate such Lender Party for such additional costs or
reduced return (on an after-tax basis, taking into account any taxes on and
deductions, credits or other tax benefits in respect of such compensation),
whereupon (i) Borrower shall pay such amount to Agent for the account of
such Lender Party and (ii) Borrower may elect, by giving to Agent and such
Lender Party not less than three Business Days’ notice, to convert all (but not
less than all) of any such Eurodollar Loans of such Lender Party into Base Rate
Loans.

 

A certificate of a Lender
Party setting forth the amount or amounts necessary to compensate such Lender
Party or the corporation controlling such Lender Party, as the case may be, as
specified in Section 3.2 or this Section 3.3 shall be delivered to
Borrower and shall be conclusive absent manifest error.  Borrower shall pay the applicable Lender
Party the amount shown as due on any such certificate within 3 Business Days
after receipt thereof.

 

Failure or delay on the part
of any Lender Party to demand compensation pursuant to Section 3.2 or this
Section 3.3 shall not constitute a waiver of such Lender Party’s right to
demand such compensation.

 

Illegality.  If any change after the date hereof in
applicable Laws, or in the interpretation or administration thereof of or in
any jurisdiction whatsoever, domestic or foreign, shall make it unlawful for
any Lender Party to fund or maintain Eurodollar Loans, then, upon notice by
such Lender Party to Borrower and Agent, (a) Borrower’s right to elect
Eurodollar Loans from such Lender Party shall be suspended to the extent and
for the duration of such illegality, (b) all Eurodollar Loans of such
Lender Party which are then the subject of any Borrowing Notice and which
cannot be lawfully funded shall be funded as Base Rate Loans of such Lender
Party, and (c) all Eurodollar Loans of such Lender Party shall be
converted automatically to Base Rate Loans on the respective last days of the
then current Interest Periods with respect to such Loans or within such earlier
period as required by Law.  If any such
conversion of a Eurodollar Loan occurs on a day which is not the last day of
the then current Interest Period with respect thereto, Borrower shall pay to
such Lender Party such amounts, if any, as may be required pursuant to Section 3.5.

 

Funding Losses.  In addition to its other obligations
hereunder, Borrower will indemnify each Lender Party against, and reimburse each
Lender Party on demand for, any loss or expense incurred or sustained by such
Lender Party (including any loss or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by a Lender
Party to fund or maintain Eurodollar Loans but excluding any loss of Base Rate
Margin or Eurodollar Margin), as a result of (a) any payment or prepayment
(whether authorized or required hereunder or otherwise) of all or a portion of
a Eurodollar Loan on a day other than the day on which the applicable Interest
Period ends, (b) any payment or prepayment, whether required hereunder or
otherwise, of a Loan made after the delivery, but before the effective
date, of a Continuation/Conversion Notice requesting the continuation of
outstanding Eurodollar Loans as, or the conversion of outstanding Base Rate
Loans to, Eurodollar Loans, if such payment or prepayment prevents such
Continuation/Conversion Notice from becoming fully effective, (c) the
failure of any Loan to be made or of any Continuation/Conversion Notice
requesting the continuation of outstanding Eurodollar Loans as, or the
conversion of outstanding Base Rate 

 

37

 

Loans to, Eurodollar Loans to become
effective due to any condition precedent not being satisfied or due to any other
action or inaction of any Restricted Person, (d) any Conversion (whether
authorized or required hereunder or otherwise) of all or any portion of any
Eurodollar Loan into a Base Rate Loan or into a different Eurodollar Loan on a
day other than the day on which the applicable Interest Period ends, or (e) any
assignment of a Eurodollar Loan on a day other than the last day of the
Interest Period therefor as a result of a request by Borrower pursuant to Section 3.8(b).

 

Reimbursable Taxes.  Borrower covenants and agrees that:

 

Borrower will indemnify each
Lender Party against and reimburse each Lender Party for all present and future
income, stamp and other taxes, levies, costs and charges whatsoever imposed,
assessed, levied or collected on or in respect of this Agreement or any
Eurodollar Loans or Letters of Credit (whether or not legally or correctly
imposed, assessed, levied or collected), excluding, however, (i) taxes
imposed on or measured by its overall net income, and franchise taxes imposed
on it (in lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the Laws of which it is organized or otherwise
resides for tax purposes or maintains any Applicable Lending Office, (ii) with
respect to each Lender Party, taxes imposed by reason of any present or former
connection between such Lender Party and the jurisdiction imposing such taxes,
other than solely as a result of this Agreement or any Note or any transaction
contemplated hereby, and (iii) any United States withholding tax imposed
on any payment by Borrower pursuant to this Agreement or under any Eurodollar
Loans or Letters of Credit, but not excluding any portion of such tax that
exceeds the United States withholding tax which would have been imposed on such
a payment to such Lender Party under the laws and treaties in effect when such
Lender Party first becomes a party to this Agreement (all such non-excluded
taxes, levies, costs and charges being collectively called “Reimbursable Taxes”).  Such indemnification shall be on an after-tax
basis and, except as otherwise provided in Section 3.6(b), paid within 3
Business Days after a Lender Party makes demand therefor.

 

All payments on account of
the principal of, and interest on, each Lender Party’s Loans and Note, and all
other amounts payable by Borrower to any Lender Party hereunder, shall be made
in full without set-off or counterclaim and shall be made free and clear of and
without deductions or withholdings of any nature by reason of any Reimbursable
Taxes, all of which will be for the account of Borrower.  In the event of Borrower being compelled by
Law to make any such deduction or withholding from any payment to any Lender
Party, Borrower shall pay on the due date of such payment, by way of additional
interest, such additional amounts as are needed to cause the amount receivable
by such Lender Party after such deduction or withholding to equal the amount
which would have been receivable in the absence of such deduction or
withholding.  If Borrower should make any
deduction or withholding as aforesaid, Borrower shall within 60 days thereafter
forward to such Lender Party an official receipt or other official document
evidencing payment of such deduction or withholding.

 

If Borrower is ever required
to pay any Reimbursable Tax with respect to any Eurodollar Loan, Borrower may
elect, by giving to Agent and such Lender Party not less than three Business
Days’ notice, to convert all (but not less than all) of any such Eurodollar
Loan into a 

 

38

 

Base Rate Loan, but such election shall not diminish
Borrower’s obligation to pay all Reimbursable Taxes.

 

Notwithstanding the
foregoing provisions of this section, Borrower shall be entitled, to the extent
it is required to do so by Law, to deduct or withhold (and not to make any
indemnification or reimbursement for) income or other similar taxes imposed by
the United States of America from interest, fees or other amounts payable
hereunder for the account of any Lender Party, other than a Lender Party (i) who
is a U.S. person for Federal income tax purposes or (ii) who has the
Prescribed Forms on file with Agent (with copies provided to Borrower) for the
applicable year to the extent deduction or withholding of such taxes is not
required as a result of the filing of such Prescribed Forms, provided that if
Borrower shall so deduct or withhold any such taxes, it shall provide a
statement to Agent and such Lender Party, setting forth the amount of such
taxes so deducted or withheld, the applicable rate and any other information or
documentation which such Lender Party may reasonably request for assisting such
Lender Party to obtain any allowable credits or deductions for the taxes so
deducted or withheld in the jurisdiction or jurisdictions in which such Lender
Party is subject to tax.  As used in this
section, “Prescribed Forms” means such duly executed forms or statements, and
in such number of copies, which may, from time to time, be prescribed by Law
and which, pursuant to applicable provisions of (x) an income tax treaty
between the United States and the country of residence of the Lender Party
providing the forms or statements, (y) the Internal Revenue Code, or (z) any
applicable rules or regulations thereunder, permit Borrower to make
payments hereunder for the account of such Lender Party free of such deduction
or withholding of income or similar taxes.

 

Alternative Rate of Interest.  If prior to the commencement of any Interest
Period for a Borrowing of Eurodollar Loans:

 

Agent determines that
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period (any such determination shall be conclusive absent
manifest error); or

 

Agent is advised by Required
Lenders that the Eurodollar Rate for such Interest Period will not adequately
and fairly reflect the cost to such Lenders of making or maintaining their
Loans included in such Borrowing for such Interest Period;

 

then
Agent shall give notice thereof to Borrower and Lenders by telephone or
telecopy as promptly as practicable thereafter and, until Agent notifies
Borrower and Lenders that the circumstances giving rise to such notice no
longer exist, (i) any Continuation/Conversion Notice that requests the
conversion of any Borrowing to, or continuation of any Borrowing as, a
Borrowing of Eurodollar Loans shall be ineffective and shall be deemed a
request to continue such Borrowing as a Borrowing of Base Rate Loans and (ii) if
any Borrowing Notice requests a Borrowing of Eurodollar Loans, such Borrowing
shall be made as a Borrowing of Base Rate Loans.  Upon receipt of such notice, Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of
Eurodollar Loans.

 

39

 

Change of Applicable Lending Office; Replacement of
Lenders.

 

Each Lender Party agrees
that, upon the occurrence of any event giving rise to the operation of Sections
3.2, 3.3, 3.4 or 3.6 with respect to such Lender Party, it will, if requested
by Borrower, use reasonable efforts (subject to overall policy considerations
of such Lender Party) to designate another Applicable Lending Office, provided
that such designation is made on such terms that such Lender Party and its Applicable
Lending Office suffer no economic, legal or regulatory disadvantage, with the
object of avoiding the consequence of the event giving rise to the operation of
any such section.  Nothing in this
section shall affect or postpone any of the obligations of Borrower or the
rights of any Lender Party provided in Sections 3.2, 3.3, 3.4, or 3.6.

 

If any Lender requests
compensation under Section 3.2 or 3.3, or if Borrower is required to pay
any additional amount to any Lender Party or any governmental authority for the
account of any Lender Party pursuant to Section 3.6, or if the obligation
of any Lender Party to make or maintain Loans as, or convert Loans to,
Eurodollar Loans is suspended pursuant to Section 3.4, or if any Lender
Party is a Defaulting Lender, then Borrower may, at its sole expense and effort
(such expense to include any transfer fee payable to Agent under Section 10.5(c) and
any expense pursuant to Article III), upon notice to such Lender Party and
Agent, require such Lender Party to assign and delegate in whole (but not in
part), without recourse (in accordance with and subject to the restrictions
contained in Section 10.5), all its interests, rights and obligations
under this Agreement to an Eligible Transferee that shall assume such obligations
(which Eligible Transferee may be another Lender Party, if a Lender Party
accepts such assignment); provided that (i) Borrower shall have received
the prior written consent of Agent, which consent shall not unreasonably be
withheld, (ii) such Lender Party shall have received payment of an amount
equal to the outstanding principal of its Loans, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder from Borrower or
such Eligible Transferee (including any amounts payable pursuant to Section 3.5),
(iii) in the case of any such assignment resulting from a claim for
compensation under Section 3.2 or 3.3 or payments required to be made
pursuant to Section 3.6, such assignment will result in a reduction in
such compensation or payments, and (iv) if the Borrower elects to exercise
such right with respect to any Lender Party, that has made such a request under
Section 3.2, 3.3, 3.4, or 3.6, it shall be obligated to replace all Lender
Parties that have made similar requests. 
A Lender Party shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Lender Party or
otherwise, the circumstances entitling Borrower to require such assignment and
delegation cease to apply.  Any Lender
Party being replaced shall execute and deliver an Assignment and Acceptance
with respect to such Lender Party’s outstanding Loans and participations in LC
Obligations.

 

CONDITIONS
PRECEDENT TO LENDING

 

Documents to be Delivered.  No Lender has any obligation to make its
first Loan, and LC Issuer has no obligation to issue the first Letter of
Credit, unless Agent shall have received all of the following, at Agent’s
office in Houston, Texas, duly executed and delivered and in form, substance
and date reasonably satisfactory to the Agent, the Lenders and their counsel:

 

This Agreement.

 

40

 

Each Revolving Note and the
Swingline Note.

 

A Guaranty executed by each
Guarantor existing on the date hereof.

 

Each Security Document
listed on Schedule 4.1.

 

The following certificates
of Borrower and, as appropriate, the Subsidiaries:

 

An “Omnibus Certificate” of the Secretary or
Assistant Secretary of the Borrower and each Guarantor, which shall contain the
names and signatures of the officers of Borrower and each Guarantor authorized
to execute Loan Documents and which shall certify to the truth, correctness and
completeness of the following exhibits attached thereto:  (1) a copy of resolutions duly adopted
by the Board of Directors of Borrower and each Guarantor and in full force and
effect at the time this Agreement is entered into, authorizing the execution of
this Agreement and the other Loan Documents delivered or to be delivered in
connection herewith and the consummation of the transactions contemplated
herein and therein, (2) a copy of the charter documents of Borrower and
each Guarantor and all amendments thereto, certified by the appropriate
official of such party’s state of organization, and (3) a copy of the bylaws
of Borrower and each Guarantor; and

 

A “Closing Certificate” of the chief financial
officer of Borrower, as of the Closing Date, certifying that (A) the
conditions set out in subsections (a), (b), (c), and (d) of Section 4.2
have been satisfied and (B) the Initial Financial Statements of Borrower
delivered to the Agent fairly present the Consolidated financial position for
the periods covered thereby, as of the date of such Initial Financial
Statements.

 

A certificate of existence
and good standing for Borrower issued by the Secretary of State of Delaware, a
certificate of due qualification to do business for the Borrower issued by the
Secretary of State of Texas, and a certificate of account status for the
Borrower issued by the Texas Comptroller of Public Accounts.

 

A favorable opinion of (i) Bracewell &
Giuliani LLP, counsel for Restricted Persons, in form and substance reasonably
satisfactory to the Agent; and (ii) Trent McKenna, in-house counsel for
Restricted Persons, in form and substance reasonably satisfactory to the Agent.

 

The Initial Financial
Statements.

 

The certificate or
certificates of insurance required by Section 6.8.

 

Payment of all fees
including all Commitment Fees, upfront, Agent, and Lead Arranger fees required
to be paid to any Lender or any other Party pursuant to any Loan Documents.

 

Such other documents and
instruments as the Agent and its counsel may reasonably require.

 

41

 

Additional Conditions Precedent.  No Lender has any obligation to make any Loan
(including its first), and LC Issuer has no obligation to issue any Letter of
Credit (including its first), unless the following conditions precedent have
been satisfied:

 

All representations and
warranties made by any Restricted Person in any Loan Document shall be true in
all material respects (or in all respects to the extent any such representation
is qualified by a materiality standard) on and as of the date of such Loan or
the date of issuance of such Letter of Credit as if such representations and
warranties had been made as of the date of such Loan or the date of issuance of
such Letter of Credit, except to the extent that such representation or
warranty was made as of a specific date or updated, modified or supplemented as
of a subsequent date with the consent of Required Lenders in which case that
representation and warranty will have been true and correct in all material
respects (or in all respects to the extent any such representation or warranty
is qualified by a materiality standard) as of that earlier date.

 

No Default shall exist at
the date of such Loan or the date of issuance of such Letter of Credit.

 

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

 

No Material Adverse Change
shall have occurred since December 31, 2009.

 

REPRESENTATIONS
AND WARRANTIES

 

To
confirm each Lender’s understanding concerning Restricted Persons and
Restricted Persons’ businesses, properties and obligations and to induce each
Lender to enter into this Agreement and to extend credit hereunder, Borrower
represents and warrants to each Lender that:

 

No Default.  No event has occurred and is continuing which
constitutes a Default or an Event of Default.

 

Organization and Good Standing.  Each Restricted Person is duly organized,
validly existing and in good standing under the Laws of its jurisdiction of
organization, having all powers required to carry on its business and enter
into and carry out the transactions contemplated hereby.  Each Restricted Person is duly qualified, in
good standing, and authorized to do business in all other jurisdictions within
the United States wherein the character of the properties owned or held by it
or the nature of the business transacted by it makes such qualification
necessary, except where the failure to so qualify or be authorized could not
reasonably be expected to result in a Material Adverse Change.  Each Restricted Person has taken all actions
and procedures customarily taken in order to enter, for the purpose of
conducting business or owning property, each jurisdiction outside the United
States wherein the character of the properties owned or held by it or the
nature of the business transacted by it 

 

42

 

makes such actions and procedures desirable
except where the failure to take such actions and procedures could not
reasonably be expected to result in a Material Adverse Change.

 

Authorization.  Each Restricted Person has the power and
authority to execute, deliver, and perform its respective obligations under
this Agreement and the other Loan Documents. Each Restricted Person has taken
all action necessary to authorize the execution and delivery by it of the Loan
Documents to which it is a party and to authorize the consummation of the
transactions contemplated thereby and the performance of its obligations
thereunder.  This Agreement and the other
Loan Documents have been duly executed and delivered by Borrower and each other
Restricted Person a party thereto. 
Borrower is duly authorized to borrow funds hereunder.

 

No Conflicts or Consents.  The execution and delivery by the various Restricted
Persons of the Loan Documents to which each is a party, the performance by each
of its obligations under such Loan Documents, and the consummation of the
transactions contemplated by the various Loan Documents, do not and will not (a) conflict
with any provision of (i) any Law, (ii) the organizational documents
of any Restricted Person, or (iii) any material agreement, judgment,
license, order or permit applicable to or binding upon any Restricted Person; (b) result
in the acceleration of any Indebtedness owed by any Restricted Person; or (c) result
in or require the creation of any Lien upon any assets or properties of any
Restricted Person except as expressly contemplated or permitted in the Loan
Documents.  Except as expressly
contemplated in the Loan Documents, no permit, consent, approval, authorization
or order of, and no notice to or filing with, any Tribunal or third party is
required in connection with the execution, delivery or performance by any
Restricted Person of any Loan Document or to consummate any transactions
contemplated by the Loan Documents.

 

Enforceable Obligations.  This Agreement is, and the other Loan
Documents when duly executed and delivered will be, legal, valid and binding
obligations of each Restricted Person which is a party hereto or thereto,
enforceable in accordance with their respective terms except as such
enforcement may be limited by bankruptcy, insolvency or similar Laws of general
application relating to the enforcement of creditors’ rights.

 

Initial Financial Statements.  Restricted Persons have heretofore delivered
to each Lender true, correct and complete copies of the Initial Financial
Statements.  The Initial Financial
Statements fairly present Borrower’s Consolidated financial position at the
respective dates thereof and the Consolidated results of Borrower’s operations
and Borrower’s Consolidated cash flows for the respective periods thereof.  Since December 31, 2009, no Material
Adverse Change has occurred.

 

Other Obligations and Restrictions.  As of the Closing Date, no Restricted Person
has any outstanding Liabilities of any kind which are, in the aggregate,
material to Borrower or material with respect to Borrower’s Consolidated
financial condition and not shown in the Initial Financial Statements or disclosed
in Section 5.7 of the Disclosure Schedule or otherwise permitted under Section 7.1.  Except as shown in the Initial Financial
Statements or disclosed in Section 5.7 of the Disclosure Schedule, no
Restricted Person is subject to or restricted by any franchise, contract, deed,
charter restriction, or other instrument or restriction which could reasonably
be expected to cause a Material Adverse Change.

 

43

 

Full Disclosure.  No certificate, written statement or other
written information delivered herewith or heretofore by any Restricted Person
to any Lender in connection with the negotiation of this Agreement or in
connection with any transaction contemplated hereby contains any untrue
statement of a material fact or omits to state any material fact known to any
Restricted Person (other than industry-wide risks normally associated with the
types of businesses conducted by Restricted Persons) necessary to make the
statements contained herein or therein, taken as a whole, not misleading as of
the date made or deemed made.  There is
no fact known to any Restricted Person that has not been disclosed to each
Lender in writing (including by delivery of the Initial Financial Statements
and the financial statements required under Section 6.2) which could
reasonably be expected to cause a Material Adverse Change.  There are no statements or conclusions in any
report delivered by any Restricted Person to the Lenders which are based upon
or include material misleading information or fail to take into account
material information regarding the matters reported therein.

 

Litigation.  Except as disclosed in the Initial Financial
Statements or in Section 5.9 of the Disclosure Schedule:  (a) there are no actions, suits or legal,
equitable, arbitrative or administrative proceedings pending, or to the
knowledge of any Restricted Person threatened, against any Restricted Person or
affecting any Collateral (including any which challenge or otherwise pertain to
any Restricted Person’s title to any Collateral) before any Tribunal which
could reasonably be expected to cause a Material Adverse Change, and (b) there
are no outstanding judgments, injunctions, writs, rulings or orders by any such
Tribunal against any Restricted Person or, to the knowledge of Borrower, any
Restricted Person’s stockholders, partners, directors or officers, or affecting
any Collateral or any of its material assets or property which could reasonably
be expected to cause a Material Adverse Change.

 

Labor Disputes and Acts of God.  Except as disclosed in Section 5.10 of
the Disclosure Schedule, neither the business nor the properties of any
Restricted Person has been affected by any fire, explosion, accident, strike,
lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act
of God or of the public enemy or other casualty (whether or not covered by
insurance), which could reasonably be expected to cause a Material Adverse
Change.

 

ERISA Plans and Liabilities.  All ERISA Plans in effect on the Closing Date
are listed in Section 5.11 of the Disclosure Schedule.  Except as disclosed in the Initial Financial
Statements or in Section 5.11 of the Disclosure Schedule, no Termination
Event has occurred with respect to any ERISA Plan and all ERISA Plans are in
compliance with ERISA unless the aggregate effect of all Termination Events and
failures to comply with ERISA could not reasonably be expected to cause a
Material Adverse Change.  Except as
permitted under Section 7.10 hereof, no ERISA Affiliate is required to
contribute to, or has any other absolute or contingent liability in respect of,
any “multiemployer plan” as defined in Section 4001 of ERISA.  Except as set forth in Section 5.11 of
the Disclosure Schedule as of the Closing Date, the “minimum funding standard”
(as defined in Section 412(a) of the Internal Revenue Code) with
respect to every ERISA Plan, without taking into account any waiver by the
Secretary of the Treasury or his delegate, has been satisfied except as could
not, individually or in the aggregate, reasonably be expected to cause a
Material Adverse Change.  The payment by
a Restricted Person of the sum of the contributions to each ERISA Plan that
would be necessary for the “adjusted funding target attainment percentage”
(within the meaning of Section 436 of the Code) of each such ERISA Plan to
equal

 

44

 

100 percent could not reasonably be expected
to cause a Material Adverse Change.  Each
representation with respect to a “multiemployer plan” is made to the Borrower’s
knowledge.

 

Environmental and Other Laws.  Except as disclosed in Section 5.12 of
the Disclosure Schedule: (a) Restricted Persons are conducting their
businesses in compliance with all applicable Laws, including Environmental
Laws, where the failure to so comply could reasonably be expected to cause a
Material Adverse Change, and have and are in compliance with all licenses and
permits required under any such Laws where the failure to so comply could
reasonably be expected to cause a Material Adverse Change; (b) none of the
operations or properties of any Restricted Person is the subject of federal,
state or local investigation evaluating whether any material remedial action is
needed to respond to a release of any Hazardous Materials into the environment
or to the improper storage or disposal (including storage or disposal at
offsite locations) of any Hazardous Materials which could reasonably be
expected to cause a Material Adverse Change; (c) no Restricted Person (and
to the best knowledge of Borrower, no other Person) has filed any notice under
any Law indicating that any Restricted Person is responsible for the improper
release into the environment, or the improper storage or disposal, of any
material amount of any Hazardous Materials or that any Hazardous Materials have
been improperly released, or are improperly stored or disposed of, upon any
property of any Restricted Person which could reasonably be expected to cause a
Material Adverse Change; (d) to the knowledge of Borrower, no Restricted
Person has transported or arranged for the transportation of any Hazardous
Material to any location which is (i) listed on the National Priorities
List under the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended, listed for possible inclusion on such National
Priorities List by the Environmental Protection Agency in its Comprehensive
Environmental Response, Compensation and Liability Information System List, or
listed on any similar state list or (ii) the subject of federal, state or
local enforcement actions or other investigations, in the case of either of the
forgoing clauses (i) and (ii), which may lead to claims against any
Restricted Person for clean-up costs, remedial work, damages to natural
resources or for personal injury claims (whether under Environmental Laws or
otherwise) which could reasonably be expected to cause a Material Adverse
Change; and (e) no Restricted Person otherwise has any known material
contingent liability under any Environmental Laws or in connection with the
release into the environment, or the storage or disposal, of any Hazardous Materials
which could reasonably be expected to cause a Material Adverse Change.  Each Restricted Person undertook, at the time
of its acquisition of each of its material properties, all appropriate inquiry
into the previous ownership and uses of the Property and any potential
environmental liabilities associated therewith.

 

Names and Places of Business.  As of the Closing Date, no Restricted Person
has, during the preceding two (2) years, been known by, or used any other
trade or fictitious name, except as disclosed in Section 5.13 of the
Disclosure Schedule.  Except as otherwise
indicated in Section 5.13 of the Disclosure Schedule, as of the Closing
Date, the chief executive office and principal place of business of each
Restricted Person are (and for the preceding two (2) years have been)
located at the address of Borrower set out on Schedule 5.13.  Except as indicated in Section 5.13 of
the Disclosure Schedule otherwise disclosed in writing to Agent, no Restricted
Person has any other office or place of business.

 

45

 

Subsidiaries.  Borrower does not presently have any
Subsidiary except those listed in Section 5.14 of the Disclosure Schedule
or disclosed to Agent in writing.  No
Restricted Person has any equity investments in any other Person except those
listed in Section 5.14 of the Disclosure Schedule or otherwise permitted
under this Agreement.  Borrower owns,
directly or indirectly, the equity interests in each of its Subsidiaries
indicated in Section 5.14 of the Disclosure Schedule or as disclosed to
Agent in writing.

 

Government Regulation.  Neither Borrower nor any other Restricted
Person owing Obligations is an “investment company” or a company “controlled”
by an “investment company” within the meaning of the Investment Company Act of
1940, as amended.  The pledge of the
Equity of each Subsidiary of Borrower does not violate Regulation T, U, or X of
the Board of Governors of the Federal Reserve System.

 

Insider.  No Restricted Person, nor, to the knowledge
of Borrower as of the Closing Date, any Person having “control” (as that term
is defined in 12 U.S.C. § 375b(9) or in regulations promulgated pursuant
thereto) of any Restricted Person, is a “director” or an “executive officer” or
“principal shareholder” (as those terms are defined in 12 U.S.C. § 375b(8) or
(9) or in regulations promulgated pursuant thereto) of any Lender, of a
bank holding company of which any Lender is a Subsidiary or of any Subsidiary
of a bank holding company of which any Lender is a Subsidiary.

 

Solvency.  Upon giving effect to the issuance of the
Notes, the execution of the Loan Documents by Borrower and each Guarantor and
the consummation of the transactions contemplated hereby, Borrower and the
Guarantors, on a Consolidated basis, will be Solvent.  Neither Borrower nor any Restricted Person
has incurred (whether under the Loan Documents or otherwise), nor does any
Restricted Person intend to incur or believe that it will incur Liabilities which
will be beyond its ability to pay as such debts mature.

 

Tax Shelter Regulations.  Borrower does not intend to treat the Loans
and/or Letters of Credit and related transactions as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4).  In the event Borrower determines to take any
action inconsistent with such intention, it will promptly notify Agent
thereof.  If Borrower so notifies Agent,
Borrower acknowledges that one or more of the Lenders may treat its Loans
and/or Letters of Credit as part of a transaction that is subject to Treasury
Regulation Section 301.6112-1, and such Lender or Lenders, as applicable,
will maintain the lists and other records required by such Treasury Regulation.

 

Title to Properties; Licenses.  Each Restricted Person has good and
defensible title to all of the Collateral and to all of its material properties
and assets, free and clear of all Liens, encumbrances, or adverse claims other
than Permitted Liens and free and clear of all impediments to the use of such
properties and assets in such Restricted Person’s business.  Each Restricted Person possesses all
licenses, permits, franchises, patents, copyrights, trademarks and trade names,
and other intellectual property (or otherwise possesses the right to use such
intellectual property without violation of the rights of any other Person)
which are necessary to carry out its business as presently conducted and as
presently proposed to be conducted hereafter, except to the extent failure to
possess such licenses, permits, franchises, patents, copyrights, trademarks and
trade names, and other intellectual property could reasonably be 

 

46

 

expected to cause a Material Adverse Change
and no Restricted Person is in violation of the terms under which it possesses
such intellectual property or the right to use such intellectual property, the
violation of which could reasonably be expected to cause a Material Adverse
Change.

 

Regulation U. None of the Borrower and
its Subsidiaries are engaged in the business of extending credit for the
purpose of purchasing or carrying Margin Stock, and no proceeds of any Loans
will be used for a purpose which violates Regulation U.

 

Taxes.  Each Restricted Person has timely filed or
caused to be filed all material Tax returns and reports required to have been
filed and has paid or caused to be paid all Taxes required to have been paid by
it, except (i) Taxes that are being contested in good faith by appropriate
proceedings and for which such Restricted Person, as applicable, has set aside
on its books adequate reserves in accordance with GAAP and (ii) Taxes
which individually or in the aggregate do not exceed $3,000,000.

 

AFFIRMATIVE
COVENANTS OF BORROWER.

 

Borrower
covenants and agrees that until the full and final payment of the Obligations
and the termination of this Agreement, unless Required Lenders have previously
agreed otherwise:

 

Payment and Performance.  Borrower will cause each other Restricted
Person to observe, perform and comply with every term, covenant and condition
in any Loan Document.

 

Books, Financial Statements and Reports.  Each Restricted Person will at all times
maintain full and accurate books of account and records.  Borrower will maintain and will cause its
Subsidiaries to maintain a standard system of accounting, will maintain its
Fiscal Year, and will furnish the following statements and reports to each
Lender Party at Borrower’s expense:

 

As soon as available, and in
any event within one hundred twenty (120) days after the end of each Fiscal
Year, complete Consolidated financial statements of Borrower together with all
notes thereto, prepared in reasonable detail in accordance with GAAP, together
with an unqualified opinion on the Consolidated Statements, based on an audit
using GAAP, by independent certified public accountants selected by Borrower of
nationally recognized standing, stating that such Consolidated financial
statements have been so prepared.  These
financial statements shall contain a Consolidated and consolidating balance
sheet as of the end of such Fiscal Year and Consolidated and consolidating
statements of income for such Fiscal Year and Consolidated statements of cash
flows and stockholders’ equity for such Fiscal Year, each setting forth in
comparative form the corresponding figures for the preceding Fiscal Year.

 

As soon as available, and in
any event within forty-five (45) days after the end of the first three Fiscal
Quarters in each Fiscal Year, Borrower’s unaudited Consolidated and
consolidating balance sheet and income statements as of the end of such Fiscal
Quarter and Consolidated statements of Borrower’s cash flows and stockholders’
equity for the period from the beginning of the then current Fiscal Year to the
end of such Fiscal Quarter, all in reasonable detail and 

 

47

 

prepared in accordance with GAAP, subject to changes
resulting from normal year-end adjustments. 
In addition Borrower will, together with each such set of financial
statements and each set of financial statements furnished under subsection (a) of
this section, furnish a certificate in the form of Exhibit 6.2(b) signed
by the chief financial officer of Borrower stating that such financial
statements are fair and complete in all material respects and fairly present
the Consolidated financial position of Borrower for the periods covered thereby
(subject to normal year-end adjustments), stating that he has reviewed the Loan
Documents, containing calculations showing compliance (or non-compliance) at the
end of such Fiscal Quarter with the requirements of Section 7.11 and
stating that no Default exists at the end of such Fiscal Quarter or at the time
of such certificate or specifying the nature and period of existence of any
such Default.

 

Promptly upon their becoming
available, copies of all financial statements, reports, notices and proxy
statements sent by any Restricted Person to its stockholders and all
registration statements, periodic reports and other statements and schedules
filed by any Restricted Person with any securities exchange, the Securities and
Exchange Commission or any similar governmental authority.

 

Each Restricted Person will
cooperate with the Agent in connection with the publication of certain
materials and/or information provided by or on behalf of each such Restricted
Person to Agent and Lenders (collectively, the “Information Materials”)
pursuant to this Article 6 and will, at the reasonable request of the
Agent, designate Information Materials (i) that are either available to the
public or not material with respect to any Restricted Person or any of their
respective securities for purposes of United States federal and state
securities laws, as “Public Information” and (ii) that are not Public
Information as “Private Information.”  If
any Information Materials are not labeled “Public Information,” they shall be
deemed to be labeled “Private Information”.

 

Other Information and Inspections.  Each Restricted Person will furnish to each
Lender any information which Agent may from time to time reasonably request
concerning any provision of the Loan Documents, any Collateral, or any matter
in connection with Restricted Persons’ businesses, properties, prospects,
financial condition and operations, including all evidence which Agent from
time to time reasonably requests in writing as to the accuracy and validity of
or compliance with all representations, warranties and covenants made by any
Restricted Person in the Loan Documents, the satisfaction of all conditions
contained therein, and all other matters pertaining thereto.  Each Restricted Person will permit
representatives appointed by Agent (including independent accountants,
auditors, Agents, attorneys, appraisers and any other Persons) to visit and
inspect during normal business hours any of such Restricted Person’s property,
including its books of account, other books and records, and any facilities or
other business assets, and to make extra copies therefrom and photocopies and
photographs thereof, and to write down and record any information such
representatives obtain, and each Restricted Person shall permit Agent or its
representatives to investigate and verify the accuracy of the information
furnished to Agent or any Lender in connection with the Loan Documents and to
discuss all such matters with its officers, employees and representatives.

 

48

 

Notice of Material Events and Change of Address.  Borrower will, after it has knowledge
thereof, promptly notify each Lender in writing, stating that such notice is
being given pursuant to this Agreement, of:

 

the occurrence of any
Material Adverse Change,

 

the occurrence of any
Default or Event of Default,

 

the acceleration of the
maturity of any Indebtedness owed by any Restricted Person or of any default by
any Restricted Person under any indenture, mortgage, agreement, contract or
other instrument to which any of them is a party or by which any of them or any
of their properties is bound, if such acceleration or default could reasonably
be expected to cause a Material Adverse Change,

 

the occurrence of any
Termination Event,

 

any claim that is reasonably
likely to result in liability to the Borrower and its Subsidiaries of
$5,000,000 or more, any notice of potential liability under any Environmental
Laws that is reasonably likely to result in liability to the Borrower and its
Subsidiaries of $5,000,000 or more, or any other material adverse claim
asserted against any Restricted Person or with respect to any Restricted Person’s
properties,

 

the filing of any suit or
proceeding against any Restricted Person in which an adverse decision could
reasonably be expected to cause a Material Adverse Change, and

 

the filing of any material
financing statement, registration of a pledge (such as with an issuer of
uncertificated securities), or other arrangement or action which would serve to
perfect a Lien, in each case other than in connection with a Permitted Lien,
regardless of whether such financing statement is filed, such registration is
made, or such arrangement or action is undertaken before or after such Lien
exists.

 

Upon
the occurrence of any of the foregoing Restricted Persons will take all
necessary or appropriate steps to promptly remedy any such Material Adverse
Change, Default, Event of Default, acceleration, default or Termination Event,
to protect against any such adverse claim, to defend any such suit or
proceeding, and to resolve all controversies on account of any of the
foregoing.  Borrower will also notify
Agent and Agent’s counsel in writing at least ten (10) Business Days prior
to the date that any Restricted Person changes its name or the location of its
chief executive office or its location under the Uniform Commercial Code.

 

Maintenance of Properties.  Each Restricted Person will maintain,
preserve, protect, and keep all Collateral and all other material property used
or useful in the conduct of its business in good condition (ordinary wear and
tear excepted) in accordance with reasonably prudent industry standards, and in
compliance with all applicable Laws which could reasonably be expected to cause
a Material Adverse Change, in conformity with all applicable contracts,
servitudes, leases and agreements which could reasonably be expected to cause a
Material Adverse Change, and will from time to time make all commercially
reasonable repairs, renewals and replacements needed to enable the business and
operations carried on in connection therewith to be promptly and advantageously
conducted at all times.

 

49

 

Maintenance of Existence and Qualifications.  Except as permitted under Section 7.4,
each Restricted Person will maintain and preserve its existence and its rights
and franchises in full force and effect and will qualify to do business in all
states or jurisdictions where required by applicable Law, except where the
failure to maintain, preserve and qualify could reasonably be expected to cause
a Material Adverse Change.

 

Payment of Taxes.  Each Restricted Person will (a) timely
file all material required tax returns including any material extensions; (b) timely
pay all taxes, assessments, and other governmental charges or levies imposed
upon it or upon its income, profits or property before the same become
delinquent; and (c) maintain appropriate accruals and reserves for all of
the foregoing in accordance with GAAP; except in the case of (b) such
taxes that individually or in the aggregate do not exceed $3,000,000.  Each Restricted Person may, however, delay
paying or discharging any of the foregoing so long as it is in good faith
contesting the validity thereof by appropriate proceedings, if necessary, and
has set aside on its books adequate reserves therefore which are required by
GAAP.

 

Insurance.

 

Each Restricted Person shall
at all times maintain (at its own expense) insurance for its property and
insurance with respect to all Collateral and liability insurance, with
financially sound and reputable insurance companies, in such amounts and
against such risks as is customary in the industry for similarly situated
businesses and properties.  All insurance
policies covering Collateral shall be endorsed (i) to provide for payment
of losses to Agent as its interests may appear and Borrower shall deliver a
certificate to that effect, (ii) to provide that such policies may not be
canceled or reduced or affected in any material manner for any reason without
ten (10) days prior notice to Agent from the insurer, (iii) to
provide for any other matters specified in any applicable Security Document or
which Agent may reasonably require; and (iv) to provide for insurance
against fire, casualty and any other hazards normally insured against, (less a
reasonable deductible not to exceed amounts customary in the industry for
similarly situated businesses and properties) of the property insured.

 

Each such policy shall (A) if
such policy is for liability insurance, name the appropriate Restricted Person
and Agent, as agent for the Lenders, as insured parties thereunder (without any
representation or warranty by or obligation upon Agent or Lenders) as their
interests may appear, (B) if such policy is for property insurance,
contain the agreement by the insurer that any loss thereunder shall be payable
to Agent notwithstanding any action, inaction or breach of representation or
warranty by any Restricted Person, and (C) provide that there shall be no
recourse against Agent or Lenders for payment of premiums or other amounts with
respect thereto.  Each Restricted Person
will, if so requested by Agent, deliver to Agent original or duplicate policies
of such insurance.  Agent is hereby
authorized to enforce payment under all such insurance policies and to
compromise and settle any claims thereunder, in its own name or in the name of
the Restricted Persons.

 

Any proceeds paid under any
liability insurance policy maintained by Restricted Persons pursuant to this Section 6.8
may be paid directly to the Person who has incurred the liability covered by
such insurance.

 

50

 

Any proceeds paid under a
property or casualty insurance policy maintained by a Restricted Person
pursuant to this Section 6.8 will be paid as follows:

 

If an Event of Default exists, then such proceeds
shall be paid to Agent;  and

 

If an Event of Default does not exist and such
proceeds are less than $2,000,000, then such proceeds shall be paid to the
Borrower; and

 

If an Event of Default does not exist and such
proceeds exceed $2,000,000, then the first $2,000,000 shall be paid to the
Borrower and the remainder of such proceeds shall be paid to Agent.

 

Agent shall release to
Borrower any funds delivered to it under clause (i) or (iii) above if
(i) Borrower delivers to Agent a request for such release within 365 days
of Agent’s receipt of such funds accompanied by a certificate of Borrower’s
chief financial officer stating (A) the purposes for which such funds will
be applied and that such purposes comply with clauses (b)(i) and (b)(ii) of
the definition of “Net Casualty Proceeds” or (B) that such funds are cash
insurance proceeds not in excess of $2,000,000 per incident (or series of
related incidents), and (ii) no Event of Default then exists.   If no such request is received by Agent
within 365 days of its receipt of such funds, then Agent shall apply such funds
to the prepayment of the Loans under Section 2.7(c).

 

If Agent receives proceeds
of property or casualty insurance required to be paid to Borrower under clause
(d)(ii) or (d)(iii) above, Agent shall promptly deliver to the
Borrower such proceeds.  If Borrower
receives proceeds of property or casualty insurance required to be paid to
Agent under clause (d)(i) or (d) (iii) above, Borrower shall
promptly deliver to Agent such proceeds.

 

Performance on Borrower’s Behalf.  If any Restricted Person fails to pay any
taxes, insurance premiums, expenses, attorneys’ fees or other amounts it is
required to pay under any Loan Document, Agent may pay the same.  Borrower shall immediately reimburse Agent
for any such payments and each amount paid by Agent shall constitute an
Obligation owed hereunder which is due and payable on the date such amount is
paid by Agent.

 

Default Interest.  Borrower hereby promises to each Lender Party
to pay interest at the Default Rate on all Obligations (including Obligations
to pay fees or to reimburse or indemnify any Lender) which Borrower has in this
Agreement promised to pay to such Lender Party and which are not paid when due,
after the expiration of any grace period for such payment set forth in Section 8.1.  Such interest shall accrue from the
expiration of any such grace period until such Obligations are paid.

 

Compliance with Law.  Each Restricted Person will conduct its
business and affairs in compliance with all Laws applicable thereto. Each
Restricted Person will cause all licenses and permits necessary or appropriate
for the conduct of its business and the ownership and operation of its property
used and useful in the conduct of its business to be at all times maintained in
good standing and in full force and effect, except as could not reasonably be
expected to cause a Material Adverse Change.

 

51

 

Environmental Matters; Environmental Reviews.

 

Each Restricted Person will
comply with all Environmental Laws now or hereafter applicable to such
Restricted Person, as well as all contractual obligations and agreements with
respect to environmental remediation or other environmental matters (except as
could not reasonably be expected to result in a Material Adverse Change), and shall
obtain, at or prior to the time required by applicable Environmental Laws, all
environmental, health and safety permits, licenses and other authorizations
necessary for its operations (except as could not reasonably be expected to
result in a Material Adverse Change) and will maintain such authorizations in
full force and effect (except as could not reasonably be expected to result in
a Material Adverse Change).  No
Restricted Person will do anything or permit anything to be done which will
subject any of its properties to any remedial obligations under, or result in
noncompliance with applicable permits and licenses issued under, any applicable
Environmental Laws, assuming disclosure to the applicable governmental
authorities of all relevant facts, conditions and circumstances (except as
could not reasonably be expected to result in a Material Adverse Change).

 

Borrower will promptly
furnish to Agent copies of all written notices of violation, orders, claims,
citations, complaints, penalty assessments, suits or other proceedings received
by any Restricted Person, or of which Borrower otherwise has notice, pending or
threatened against any Restricted Person by any governmental authority with
respect to any alleged violation of or non-compliance with any Environmental
Laws or with respect to any permits, licenses or authorizations in connection
with any Restricted Person’s ownership or use of its properties or the
operation of its business, in each case, that could reasonably be expected to
result in a Material Adverse Change.

 

Borrower will promptly
furnish to Agent all written requests for information, notices of claim, demand
letters, and other written notifications, received by Borrower in connection
with any Restricted Person’s ownership or use of its properties or the conduct
of its business, relating to potential responsibility with respect to any
investigation or clean-up of Hazardous Material at any location that could
reasonably be expected to have a Material Adverse Change.

 

Further Assurances.  The Borrower shall, and shall cause each
other Restricted Person to, (i) promptly upon the reasonable request by
the Agent, correct any material defect or error that may be discovered in any
Loan Document or in the execution, acknowledgment, filing or recordation
thereof, and (ii) promptly upon request by the Agent, take such action as
the Agent may reasonably require from time to time in order to carry out more
effectively the purposes of the Loan Documents.

 

Bank Accounts; Offset.  To secure the repayment of the Obligations
Borrower hereby grants to each Lender a security interest, a lien, and a right
of offset, each of which shall be in addition to all other interests, liens,
and rights of any Lender at common law, under the Loan Documents, or otherwise,
and each of which shall be upon and against (a) any and all moneys,
securities or other property (and the proceeds therefrom) of Borrower now or
hereafter held or received by or in transit to any Lender from or for the
account of Borrower, whether for safekeeping, custody, pledge, transmission,
collection or otherwise, (b) any and all deposits (general or special,
time or demand, provisional or final) of Borrower with any Lender, and (c)

 

52

 

any other credits and claims of Borrower at
any time existing against any Lender, including claims under certificates of
deposit.  At any time and from time to
time after the occurrence of any Event of Default, each Lender is hereby authorized
to foreclose upon, or to offset against the Obligations then due and payable
(in either case without notice to Borrower), any and all items hereinabove
referred to.  The remedies of foreclosure
and offset are separate and cumulative, and either may be exercised
independently of the other without regard to procedures or restrictions
applicable to the other.

 

Guaranties of Borrower’s Subsidiaries.  Each Subsidiary created, acquired or coming
into existence after the date hereof, other than an Immaterial Subsidiary,
shall, promptly upon request by Agent, execute and deliver to Agent an absolute
and unconditional guaranty of the timely repayment of the Obligations and the
due and punctual performance of the obligations of Borrower hereunder, which
guaranty shall be reasonably satisfactory to Agent in form and substance,
except that a Foreign Subsidiary will not be required to provide such a
guaranty if the provision of such a guaranty would have a material adverse tax
consequence to the Borrower and its Subsidiaries taken as a whole.  Borrower will cause each such Subsidiary to
deliver to Agent, simultaneously with its delivery of such a guaranty, written
evidence satisfactory to Agent and its counsel that such Subsidiary has taken
all corporate or partnership action necessary to duly approve and authorize its
execution, delivery and performance of such guaranty and any other documents
which it is required to execute.

 

Agreement to Deliver Security Documents.  Borrower agrees to deliver and to cause each
Guarantor to deliver, to further secure the Obligations whenever requested by
Agent in its sole and absolute discretion, deeds of trust, mortgages, chattel
mortgages, security agreements, financing statements continuation statements,
extension agreements, acknowledgments, and other Security Documents in form and
substance satisfactory to Agent for the purpose of granting, confirming,
protecting and perfecting Liens or security interests in any personal property
now owned or hereafter acquired by Borrower or any Guarantor.

 

NEGATIVE
COVENANTS OF BORROWER

 

To
conform with the terms and conditions under which each Lender is willing to
have credit outstanding to Borrower, and to induce each Lender to enter into
this Agreement and make the Loans, Borrower warrants, covenants and agrees that
until the full and final payment of the Obligations and the termination of this
Agreement, unless Required Lenders have previously agreed otherwise:

 

Indebtedness.  No Restricted Person will in any manner owe
or be liable for Indebtedness except:

 

the Obligations;

 

unsecured Indebtedness among
Borrower and the Guarantors arising in the ordinary course of business;

 

53

 

purchase money Indebtedness
and Capital Lease Obligations in an aggregate principal amount not to exceed
$10,000,000 at any time, provided that the original principal amount of any
such Indebtedness shall not be in excess of the purchase price of the assets
acquired thereby and such Indebtedness shall be secured only by the acquired
assets;

 

Indebtedness existing on the
date hereof and listed on Schedule 7.1, and renewals and extensions
thereof;

 

Subordinated Debt incurred
in connection with Permitted Acquisitions having a maturity date beyond the
term of this Agreement;

 

Indebtedness in respect of
deferred software licensing fees in connection with Borrower or any of its
Subsidiaries licensing software in the ordinary course of business consistent
with past practices in a total amount not to exceed $2,000,000 in the aggregate
at any time outstanding;

 

unsecured Indebtedness
consisting of industrial revenue bonds in a total amount not to exceed $600,000
in the aggregate at any time outstanding;

 

unsecured Indebtedness
incurred in connection with Permitted Acquisitions in an aggregate amount not
to exceed $40,000,000 at any time outstanding;

 

Indebtedness of a Person
that becomes a Subsidiary of the Borrower (or is a Subsidiary of the Borrower
that survives a merger with that Person or any of its Subsidiaries) and
Indebtedness secured by assets that are acquired by the Borrower or any of its
Subsidiaries, in each case after the Closing Date as the result of a Permitted
Acquisition if (x) that Indebtedness existed at the time such Person
became a Subsidiary of the Borrower or at the time such assets were acquired,
as the case may be, and was not created in anticipation thereof, (y) that
Indebtedness is not guaranteed in any respect by the Borrower or any other Subsidiary
of the Borrower (other than a Subsidiary acquired as part of such Permitted
Acquisition that had guaranteed such Indebtedness prior to such Permitted
Acquisition, and (z) the aggregate principal amount of Indebtedness
outstanding under this Section 7.1(i) does not exceed $15,000,000 at
any time;

 

Attributable Indebtedness in
connection with Sale Leaseback Transactions solely related to vehicles and real
property, in an aggregate amount not to exceed $20,000,000; and

 

any other unsecured
Indebtedness not to exceed $5,000,000 in the aggregate at any time outstanding.

 

Limitation on Liens.  Except for Permitted Liens, no Restricted
Person will create, assume or permit to exist any Lien upon any of the
properties or assets which it now owns or hereafter acquires.

 

Hedging Contracts.  No Restricted Person will be a party to or in
any manner be liable on any Hedging Contract except Hedging Contracts entered
into by a Restricted Person and the Agent or any other Lender with the purpose
and effect of fixing interest rates on a principal 

 

54

 

amount of indebtedness of such Restricted
Person that is accruing interest at a variable rate, provided that (a) the
aggregate notional amount of such contracts never exceeds seventy-five percent
(75%) of the anticipated outstanding principal balance of the indebtedness to
be hedged by such contracts or an average of such principal balances calculated
using a generally accepted method of matching interest swap contracts to
declining principal balances, and (b) the floating rate index of each such
contract generally matches the index used to determine the floating rates of
interest on the corresponding indebtedness to be hedged by such contract.

 

Limitation on Mergers, Issuances of Securities.  No Restricted Person will merge or
consolidate with or into any other Person, except that any Subsidiary of
Borrower may be merged into or consolidated with (a) another Subsidiary of
Borrower so long as, if a Guarantor is one of the merged entities, a Guarantor
is the surviving business entity, (b) Borrower, so long as Borrower is the
surviving business entity, and (c) any other Person in connection with a
sale of such Restricted Person’s Equity that is permitted by Section 7.5.  Borrower will not issue any equity securities
other than shares of its common or preferred stock and any options or warrants
giving the holders thereof only the right to acquire such shares.  No Subsidiary of Borrower will issue any
additional shares of its capital stock or other equity securities or any
options, warrants or other rights to acquire such additional shares or other
equity securities except to Borrower or another Subsidiary of Borrower and only
to the extent not otherwise forbidden under the terms hereof.  No Subsidiary of Borrower which is a
partnership will allow any diminution of Borrower’s interest (direct or
indirect) therein.

 

Limitation on Sales of Property and Discounting of
Receivables.  No
Restricted Person will sell, transfer, lease, exchange, alienate or dispose of
any of its material assets or properties or any material interest therein, or
discount, adjust, settle, compromise, release, allow any credit against, sell,
pledge or assign any notes payable to it, accounts receivable or future income,
except:

 

equipment which is
worthless, obsolete, no longer used by or useful to a Restricted Person or
which is replaced by equipment of equal suitability and value;

 

inventory which is sold in
the ordinary course of business;

 

customary credits and
discounts of accounts receivable (not including factoring or securitizations)
in the ordinary course of business;

 

other property which is sold
for fair consideration not in the aggregate in excess of $30,000,000 in any
Fiscal Year, the sale of which will not materially impair or diminish the value
of the Collateral or the Consolidated financial condition, business or
operations of Borrower; and

 

Sale Leaseback Transactions
relating to solely to vehicles or real property if the Attributable Indebtedness
of all Sale Leaseback Transactions then in effect is less than $20,000,000.

 

55

 

Limitation on Distributions and Subordinated Debt.

 

No Restricted Person will
declare or make any Distribution unless no Default or Event of Default exists
at the time of any such Distribution or would occur as a result thereof.

 

No Restricted Person will
make any payments on Subordinated Debt, unless no Default or Event of Default
exists at such time or would occur as a result thereof.

 

Limitation on Investments, Acquisitions, Capital
Expenditures, and Lines of Business.  No Restricted Person will

 

make any Investments other
than Permitted Investments;

 

make any Capital
Expenditures in excess of the sum of (i) $40,000,000 in the aggregate in
any Fiscal Year plus (ii) the cash proceeds from the sale of Capital
Assets received in such Fiscal Year;

 

make any Acquisition unless
the following conditions are satisfied:

 

the Acquisition is not hostile in nature;

 

each line of business to be acquired in the
Acquisition is similar to a line of business engaged in by the Borrower at the
time of the Acquisition; and

 

either (A) the Borrower’s Total Leverage Ratio
is less than or equal to 1.5 to 1.0 after giving pro forma
effect to the Acquisition or (B) the purchase price for the Acquisition is
less than or equal to $5,000,000 and the aggregate purchase price for the
Acquisition and all prior Acquisitions made during the 12 month period ending
on the date of the consummation of such Acquisition is less than or equal to
$10,000,000; or

 

engage directly or
indirectly in any business or conduct any operations except in connection with
or incidental to its present businesses and operations.

 

Intentionally Omitted.

 

Transactions with Affiliates.  Neither Borrower nor any of its Subsidiaries
will engage in any material transaction with any of its Affiliates on terms
which are less favorable to it than those which would have been obtainable at
the time in arm’s-length dealing with Persons other than such Affiliates,
provided that such restriction shall not apply to transactions among Borrower
and its Subsidiaries.

 

Prohibited Contracts.  Except as expressly provided for in the Loan
Documents, no Restricted Person will, directly or indirectly, enter into,
create, or otherwise allow to exist any contract that restricts, or other
consensual restriction on, the ability of any Subsidiary of Borrower to: (a) pay
dividends or make other Distributions to Borrower, (b) to redeem Equity
held in it by Borrower, (c) to repay loans and other Indebtedness owing by
it to Borrower, (d) to transfer any of its assets to Borrower, or (e) make
loans or advances to Borrower or any of its Subsidiaries.  No Restricted Person will enter, or permit
the entry by any Restricted Person into,

 

56

 

any contract, lease, or amendment that
releases, qualifies, limits, makes contingent or otherwise materially
detrimentally affects the rights and benefits of Agent or any Lender under or
acquired pursuant to any Security Documents. 
No ERISA Affiliate will incur any obligation with respect to any “multiemployer
plan” as defined in Section 4001 of ERISA, except an obligation pursuant
to collective bargaining agreements to make contributions in the ordinary
course of business for employees subject to such collective bargaining
agreements.

 

Financial Covenants.

 

Minimum Fixed Charge
Coverage Ratio.  The
Borrower will not permit the ratio, determined as of the end of each of its
Fiscal Quarters, for the then most-recently ended four Fiscal Quarters, of (i) its
Consolidated EBITDA, minus (A) Consolidated Capital Expenditures, (B) the
provision for income taxes (excluding one-time tax charges arising solely from
changes to GAAP), and (C) if Borrower’s Net Leverage Ratio is greater than
1.0 to 1.0, Distributions, all calculated on a Consolidated basis, to
(ii) its Consolidated Interest Expense, plus
scheduled principal payments of Indebtedness, to be less than 2.0 to 1.0.

 

Intentionally Left Blank.

 

Consolidated Total
Indebtedness Ratio.  The
Borrower will not permit its Total Leverage Ratio, determined as of the end of
each of its Fiscal Quarters, for the then most-recently ended four Fiscal
Quarters, to be greater than 2.5 to 1.0.

 

Limitation on Further Negative Pledges.  The Borrower shall not, and shall cause each
other Restricted Person not to, enter into any agreement limiting its ability
to create, incur, assume or suffer to exist any Lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, except

 

pursuant to the Loan
Documents;

 

pursuant to any agreement
with any counterparty that has entered into an Intercreditor Agreement;

 

pursuant to any other
agreement that does not restrict in any manner (directly or indirectly) Liens
created pursuant to the Loan Documents on property or assets of the Borrower or
any other Restricted Person (whether now owned or hereafter acquired) securing
the Loans or any Hedging Contract and does not require the direct or indirect
granting of any Lien securing any Indebtedness or other obligation by virtue of
the granting of Liens on or pledge of property of the Borrower of any other
Restricted Person to secure the Loans, any Hedging Contract or any other
Obligations;

 

prohibitions or limitations
contained in any industrial revenue or development bonds, acquisition
agreements, licenses, and leases of real property and equipment entered into in
the ordinary course of business that apply only to the property that is the
subject of those bonds, agreements, licenses or leases;

 

57

 

prohibitions or limitations
against other encumbrances on specific property encumbered to secure payment of
particular Indebtedness permitted under this Agreement; and

 

prohibitions or limitations
against encumbrances on specific property subject to a proposed asset sale
permitted hereunder contained in any document relating to that asset sale.

 

prohibitions or limitations
in favor of any holder of Indebtedness permitted under 7.1(i), solely to the
extent any such negative pledge relates to property acquired as part of the
Permitted Acquisition pursuant to which the Borrower acquired the obligor of
such Indebtedness; and

 

prohibitions or limitations
against encumbrances on property (including equipment, but excluding real
property) (i) to be delivered by a Restricted Person to a job site in the
ordinary course of business, (ii) transferred in the ordinary course of
business to a Restricted Person as part of a transaction pursuant to which such
property will be transferred to the owner of such project at or prior to the
end of such job, or (iii) that otherwise temporarily enters a Restricted
Person’s custody in the ordinary course of business.

 

EVENTS OF
DEFAULT AND REMEDIES

 

Events of Default.  Each of the following events constitutes an
Event of Default under this Agreement:

 

Any Restricted Person fails
to pay any principal component of any Obligation when due and payable;

 

Any Restricted Person fails
to pay any payment of interest or fees on the date which such payment is due
and such failure continues for a period of three (3) days;

 

Any Restricted Person fails
to pay any Obligation (other than the Obligations in subsections (a) and (b) above)
within three Business Days after the same becomes due and payable, whether at a
date for the payment of a fixed installment or as a contingent or other payment
becomes due and payable or as a result of acceleration or otherwise;

 

Any “default” or “event of
default” occurs under any Loan Document which defines either such term, and the
same is not remedied within the applicable period of grace (if any) provided in
such Loan Document;

 

Any Restricted Person fails
to duly observe, perform or comply with any covenant, agreement or provision of
Article VII;

 

Any Restricted Person fails
(other than as referred to in subsections (a), (b), (c), (d) or (e) above)
to duly observe, perform or comply with any covenant, agreement, condition or
provision of any Loan Document, and such failure remains unremedied for a
period of thirty (30) days after notice of such failure is given by Agent to
Borrower;

 

58

 

Any representation or
warranty previously, presently or hereafter made in writing by or on behalf of
any Restricted Person in connection with any Loan Document shall prove to have
been false or incorrect in any material respect on any date on or as of which
made, or any Loan Document at any time ceases to be valid, binding and
enforceable as warranted in Section 5.5 for any reason other than its
release or subordination by Agent;

 

Any Restricted Person (i) fails
to pay any portion, when such portion is due, of any of its Indebtedness in
excess of $10,000,000, or (ii) breaches or defaults in the performance of
any agreement or instrument by which any such Indebtedness is issued,
evidenced, governed, or secured, and any such failure, breach or default
continues beyond any applicable period of grace provided therefor;

 

Either (i) any ERISA
Affiliate fails to satisfy the “minimum funding standard” (as defined in Section 412(a) of
the Internal Revenue Code), without taking into account any waiver by the
Secretary of the Treasury or his delegate, with respect to any ERISA Plan, and
the aggregate amount necessary to cure all such failures exceeds $10,000,000,
or (ii) the occurrence of a Termination Event with respect to any ERISA
Plan, that, when taken together with all other Termination Events that have
occurred and are continuing, could reasonably be expected to subject to any
Restricted Person to liability individually or in the aggregate in excess of
$10,000,000, or (iii) the payment by a Restricted Person of the sum of the
contributions to each ERISA Plan that would be necessary for the “adjusted
funding target attainment percentage” (within the meaning of Section 436
of the Code) of each such ERISA Plan to equal 100 percent could reasonably be
expected to cause a Material Adverse Change.

 

Any Restricted Person:

 

suffers the entry against it of a judgment, decree
or order for relief by a Tribunal of competent jurisdiction in an involuntary
proceeding commenced under any applicable bankruptcy, insolvency or other
similar Law of any jurisdiction now or hereafter in effect, including the
federal Bankruptcy Code, as from time to time amended, or has any such
proceeding commenced against it which remains undismissed for a period of sixty
(60) days; or

 

commences a voluntary case under any applicable
bankruptcy, insolvency or similar Law now or hereafter in effect, including the
federal Bankruptcy Code, as from time to time amended; or applies for or
consents to the entry of an order for relief in an involuntary case under any
such Law; or makes a general assignment for the benefit of creditors; or fails
generally to pay (or admits in writing its inability to pay) its debts as such
debts become due; or takes corporate or other action to authorize any of the
foregoing; or

 

suffers the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of all or a substantial part of its assets or of any part of the
Collateral in a proceeding brought against or initiated by it, and such
appointment or taking possession is neither made ineffective nor discharged
within sixty (60) days after the making thereof, or such appointment or taking
possession is at any time consented to, requested by, or acquiesced to by it;
or

 

59

 

suffers the entry against it of a final judgment for
the payment of money in excess of $10,000,000 (not covered by insurance
satisfactory to Agent in its reasonable discretion), unless the same is
discharged within forty-five (45) days after the date of entry thereof or an
appeal or appropriate proceeding for review thereof is taken within such period
and a stay of execution pending such appeal is obtained; or

 

suffers a writ or warrant of attachment or any
similar process to be issued by any Tribunal against all or any substantial
part of its assets or any part of the Collateral, and such writ or warrant of
attachment or any similar process is not stayed or released within forty-five
(45) days after the entry or levy thereof or after any stay is vacated or set
aside;

 

Any Change of Control
occurs;

 

The occurrence of an event
of default under any document to which any Restricted Person and any surety are
both parties that, with the passage of time, would permit foreclosure by such
surety on a material portion of the Collateral.

 

Upon
the occurrence of an Event of Default described in subsection (j)(i), (j)(ii) or
(j)(iii) of this section with respect to Borrower, all of the Obligations
shall thereupon be immediately due and payable, without demand, presentment,
notice of demand or of dishonor and nonpayment, protest, notice of protest,
notice of intention to accelerate, declaration or notice of acceleration, or
any other notice or declaration of any kind, all of which are hereby expressly
waived by Borrower and each Restricted Person who at any time ratifies or
approves this Agreement.  Upon any such
acceleration, any obligation of any Lender and any obligation of LC Issuer to
issue Letters of Credit hereunder to make any further Loans shall be
permanently terminated.  During the
continuance of any other Event of Default, Agent at any time and from time to
time may (and upon written instructions from Required Lenders, Agent shall),
without notice to Borrower or any other Restricted Person, do either or both of
the following:  (1) terminate any
obligation of Lenders to make Loans hereunder, and any obligation of LC Issuer
to issue Letters of Credit hereunder, and (2) declare any or all of the
Obligations immediately due and payable, and all such Obligations shall
thereupon be immediately due and payable, without demand, presentment, notice
of demand or of dishonor and nonpayment, protest, notice of protest, notice of
intention to accelerate, declaration or notice of acceleration, or any other
notice or declaration of any kind, all of which are hereby expressly waived by
Borrower and each Restricted Person who at any time ratifies or approves this
Agreement.

 

Remedies.  If any Event of Default shall occur and be
continuing, each Lender Party may terminate its Revolving Loan Commitment and
protect and enforce its rights under the Loan Documents by any appropriate
proceedings, including proceedings for specific performance of any covenant or
agreement contained in any Loan Document, and each Lender Party may enforce the
payment of any Obligations due it or enforce any other legal or equitable right
which it may have.  All rights, remedies
and powers conferred upon Lender Parties under the Loan Documents shall be
deemed cumulative and not exclusive of any other rights, remedies or powers
available under the Loan Documents or at Law or in equity.  Notwithstanding the foregoing, the right to
credit bid the Obligations in connection with any foreclosure sale or sale in a
bankruptcy proceeding may only be exercised by the Administrative Agent acting
at the direction of the Required Lenders unless the Required Lenders agree that
a Lender may credit bid its Obligations in connection with such a sale.

 

60

 

Application of Proceeds after Acceleration.  Except as otherwise provided in the Security
Documents with respect to application of proceeds to any reimbursements due
Agent thereunder and to the Lender Hedging Obligations, if Agent collects or
receives money on account of the Obligations after the acceleration of the
Obligations as provided in Section 8.1, Agent shall distribute all money
so collected or received:

 

First, to any reimbursements
due Agent hereunder;

 

Second, ratably to payment
of that portion of Obligations constituting accrued and unpaid interest and
Lender Hedging Obligations; provided that Agent shall have no independent
responsibility to determine the existence or amount of Lender Hedging
Obligations and may reserve from the application of amounts under this Section amounts
distributable in respect of Lender Hedging Obligations until it has received
evidence satisfactory to it of the existence and amount of such Lender Hedging
Obligations; provided further, however, that Agent may rely on statements of
the Lender Parties as to the existence and amounts of Lender Hedging
Obligations owing to them;

 

Third, ratably to the
payment or cash-collateralization of all other Obligations of the Borrower or
any Guarantor owing under or in respect of the Loan Documents that are due and
payable on such date (and among such Obligations in the manner provided in Section 3.1);
and

 

The balance, if any, after
all of the Obligations have been indefeasibly paid in full, to the Borrower or
as otherwise required by Law.

 

AGENT

 

Appointment and Authority.  Each Lender Party hereby irrevocably
authorizes Agent, and Agent hereby undertakes, to receive payments of
principal, interest and other amounts due hereunder as specified herein and to
take all other actions and to exercise such powers under the Loan Documents as
are specifically delegated to Agent by the terms hereof or thereof, together
with all other powers reasonably incidental thereto.  The relationship of Agent to the other Lender
Parties is only that of one commercial lender acting as Agent for others, and
nothing in the Loan Documents shall be construed to constitute Agent a trustee
or other fiduciary for any Lender Party or any holder of any participation in a
Note nor to impose on Agent duties and obligations other than those expressly
provided for in the Loan Documents.  With
respect to any matters not expressly provided for in the Loan Documents and any
matters which the Loan Documents place within the discretion of Agent, Agent
shall not be required to exercise any discretion or take any action, and it may
request instructions from Lenders with respect to any such matter, in which
case it shall be required to act or to refrain from acting (and shall be fully
protected and free from liability to all Lender Parties in so acting or
refraining from acting) upon the instructions of Required Lenders (including
itself), provided, however, that Agent shall not be required to take any action
which exposes it to a risk of personal liability that it considers unreasonable
or which is contrary to the Loan Documents or to applicable Law.

 

Exculpation, Agent’s Reliance, Etc.  Neither Agent nor any of its directors,
officers, Agents, attorneys, or employees shall be liable for any action taken
or omitted to be taken by any 

 

61

 

of them under or in connection with the Loan
Documents, including their negligence of any kind, except that each shall be
liable for its own gross negligence or willful misconduct.  Without limiting the generality of the
foregoing, Agent (a) may treat the Person whose name is set forth on the
Register as the holder of any Obligation as the holder thereof until Agent
receives written notice of the assignment or transfer thereof in accordance
with this Agreement, signed by such Person and in the form required under Section 10.5(c) and
in form satisfactory to Agent; (b) may consult with legal counsel
(including counsel for Borrower), independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (c) makes no warranty or representation to any
other Lender and shall not be responsible to any other Lender Party for any
statements, warranties or representations made in or in connection with the
Loan Documents; (d) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants or conditions
of the Loan Documents on the part of any Restricted Person or to inspect the
property (including the books and records) of any Restricted Person; (e) shall
not be responsible to any other Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of any Loan
Document or any instrument or document furnished in connection therewith; (f) may
rely upon the representations and warranties of each Restricted Person or
Lender Party in exercising its powers hereunder; and (g) shall incur no
liability under or in respect of the Loan Documents by acting upon any notice,
consent, certificate or other instrument or writing (including any facsimile,
telegram, cable or telex) believed by it to be genuine and signed or sent by
the proper Person or Persons.

 

Credit Decisions.  Each Lender Party acknowledges that it has, independently
and without reliance upon any other Lender Party, made its own analysis of
Borrower and the transactions contemplated hereby and its own independent
decision to enter into this Agreement and the other Loan Documents.  Each Lender Party also acknowledges that it
will, independently and without reliance upon any other Lender Party and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under the
Loan Documents.

 

Indemnification.  Each Lender agrees to indemnify Agent (to the
extent not reimbursed by Borrower within ten (10) days after demand) from
and against such Lender’s Percentage Share of any and all liabilities,
obligations, claims, losses, damages, penalties, fines, actions, judgments,
suits, settlements, costs, expenses or disbursements (including reasonable fees
of attorneys, accountants, experts and advisors) of any kind or nature
whatsoever (in this section collectively called “liabilities and costs”) which
to any extent (in whole or in part) may be imposed on, incurred by, or asserted
against Agent growing out of, resulting from or in any other way associated
with any of the Collateral, the Loan Documents and the transactions and events
(including the enforcement thereof) at any time associated therewith or
contemplated therein (whether arising in contract or in tort and otherwise and
including any violation or noncompliance with any Environmental Laws by any
Person or any liabilities or duties of any Person with respect to Hazardous
Materials found in or released into the environment).

 

THE
FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES AND COSTS
ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM
OR THEORY OF STRICT

 

62

 

LIABILITY,
OR ARE CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF
ANY KIND BY AGENT,

provided
only that no Lender shall be obligated under this section to indemnify Agent
for that portion, if any, of any liabilities and costs which is proximately
caused by Agent’s own individual gross negligence or willful misconduct, as
determined by a court of competent jurisdiction in a final and nonappealable
judgment.  Cumulative of the foregoing,
each Lender agrees to reimburse Agent promptly upon demand for such Lender’s
Percentage Share of any costs and expenses to be paid to Agent by Borrower
under Section 10.4(a) to the extent that Agent is not timely
reimbursed for such expenses by Borrower as provided in such section.  As used in this section the term “Agent”
shall refer not only to the Person designated as such in Section 1.1 but
also to each director, officer, Agent, attorney, employee, representative and
Affiliate of such Person.

 

Rights as Lender.  In its capacity as a Lender, Agent shall have
the same rights and obligations as any Lender and may exercise such rights as
though it were not Agent.  Agent may
accept deposits from, lend money to, act as trustee under indentures of, and
generally engage in any kind of business with any Restricted Person or their
Affiliates, all as if it were not Agent hereunder and without any duty to
account therefor to any other Lender.

 

Sharing of Set-Offs and Other Payments.  Each Lender Party agrees that if it shall,
whether through the exercise of rights under Security Documents or rights of
banker’s lien, set off, or counterclaim against Borrower or otherwise, obtain
payment of a portion of the aggregate Obligations owed to it which, taking into
account all distributions made by Agent under Section 3.1, causes such
Lender Party to have received more than it would have received had such payment
been received by Agent and distributed pursuant to Section 3.1, then (a) it
shall be deemed to have simultaneously purchased and shall be obligated to
purchase interests in the Obligations as necessary to cause all Lender Parties
to share all payments as provided for in Section 3.1, and (b) such
other adjustments shall be made from time to time as shall be equitable to
ensure that Agent and all Lender Parties share all payments of Obligations as
provided in Section 3.1; provided, however, that nothing herein contained
shall in any way affect the right of any Lender Party to obtain payment
(whether by exercise of rights of banker’s lien, set-off or counterclaim or
otherwise) of indebtedness other than the Obligations.  Borrower expressly consents to the foregoing
arrangements and agrees that any holder of any such interest or other
participation in the Obligations, whether or not acquired pursuant to the
foregoing arrangements, may to the fullest extent permitted by Law exercise any
and all rights of banker’s lien, set-off, or counterclaim as fully as if such
holder were a holder of the Obligations in the amount of such interest or other
participation.  If all or any part of any
funds transferred pursuant to this section is thereafter recovered from the
seller under this section which received the same, the purchase provided for in
this section shall be deemed to have been rescinded to the extent of such
recovery, together with interest, if any, if interest is required pursuant to
the order of a Tribunal order to be paid on account of the possession of such
funds prior to such recovery.

 

Investments.  Whenever Agent in good faith determines that
it is uncertain about how to distribute to Lender Parties any funds which it
has received, or whenever Agent in good faith determines that there is any
dispute among Lender Parties about how such funds should be distributed, Agent
may choose to defer distribution of the funds which are the subject of such
uncertainty or dispute.  If Agent in good
faith believes that the uncertainty or dispute will not be 

 

63

 

promptly resolved, or if Agent is otherwise
required to invest funds pending distribution to Lender Parties, Agent shall
invest such funds pending distribution; all interest on any such Investment
shall be distributed upon the distribution of such Investment and in the same
proportion and to the same Persons as such Investment.  All monies received by Agent for distribution
to Lender Parties (other than to the Person who is Agent in its separate
capacity as a Lender Party) shall be held by Agent pending such distribution
solely as Agent for such Lender Parties, and Agent shall have no equitable
title to any portion thereof.

 

Benefit of Article IX.  The provisions of this Article (other
than the following Section 9.9) are intended solely for the benefit of
Lender Parties, and no Restricted Person shall be entitled to rely on any such
provision or assert any such provision in a claim or defense against any
Lender.  Lender Parties may waive or
amend such provisions as they desire without any notice to or consent of Borrower
or any Restricted Person.

 

Resignation.  Agent may resign at any time by giving
written notice thereof to Lenders and Borrower. 
Each such notice shall set forth the date of such resignation.  Upon any such resignation, Required Lenders
shall have the right to appoint (with, unless an Event of Default shall have
occurred and be continuing, the consent of Borrower, such consent not to be
unreasonably withheld or delayed) a successor Agent.  A successor must be appointed for any
retiring Agent, and such Agent’s resignation shall become effective when such
successor accepts such appointment.  If,
within thirty days after the date of the retiring Agent’s resignation, no
successor Agent has been appointed and has accepted such appointment, then the
retiring Agent may appoint (with, unless an Event of Default shall have
occurred and be continuing, the consent of Borrower, such consent not to be
unreasonably withheld or delayed) a successor Agent, which shall be a
commercial bank organized or licensed to conduct a banking or trust business
under the Laws of the United States of America or of any state thereof.  Upon the acceptance of any appointment as
Agent hereunder by a successor Agent, the retiring Agent shall be discharged
from its duties and obligations under this Agreement and the other Loan
Documents.  After any retiring Agent’s
resignation hereunder the provisions of this Article IX shall continue to
inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under the Loan Documents.

 

Notice of Default.  Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default, except with respect to defaults in
the payment of principal, interest and fees required to be paid to Agent for
the account of Lenders, unless Agent shall have received written notice from a
Lender or Borrower referring to this Agreement, describing such Default and
stating that such notice is a “notice of default.”  Agent will notify Lenders of its receipt of
any such notice.  Agent shall take such
action with respect to such Default as may be directed by Required Lenders in
accordance with Article VIII; provided, however, that unless and until
Agent has received any such direction, Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such
Default as it shall deem advisable or in the best interest of Lenders.

 

Co-Agents.  The Parties identified on the facing page of
this Agreement as “Lead Arranger,” “Syndication Agent” or “Documentation Agent”
have no right, power, obligation, liability, responsibility, or duty under the
Loan Documents in such capacity.  Without
limiting the foregoing, each Party so identified as “Lead Arranger,” “Syndication
Agent” or

 

64

 

“Documentation Agent” shall not have and
shall not be deemed to have any fiduciary relationship with any other
Lender.  Each Lender acknowledges that it
has not relied, and will not rely, on taking or not taking action hereunder.

 

MISCELLANEOUS

 

Waivers and Amendments; Acknowledgments.

 

Waivers and Amendments.  No failure or delay (whether by course of
conduct or otherwise) by any Lender in exercising any right, power or remedy
which such Lender Party may have under any of the Loan Documents shall operate as
a waiver thereof or of any other right, power or remedy, nor shall any single
or partial exercise by any Lender Party of any such right, power or remedy
preclude any other or further exercise thereof or of any other right, power or
remedy.  No waiver of any provision of
any Loan Document and no consent to any departure therefrom shall ever be
effective unless it is in writing and signed as provided below in this section,
and then such waiver or consent shall be effective only in the specific
instances and for the purposes for which given and to the extent specified in
such writing.  No notice to or demand on
any Restricted Person shall in any case of itself entitle any Restricted Person
to any other or further notice or demand in similar or other circumstances.  No waiver, consent, release, modification or
amendment of or supplement to this Agreement or the other Loan Documents shall
be valid or effective against any party hereto unless the same is in writing
and signed by (i) if such party is Borrower, by Borrower, (ii) if
such party is Agent or LC Issuer, by such party, and (iii) if such party
is a Lender, subject to Section 2.18, by such Lender or by Agent on behalf
of Lenders with the written consent of Required Lenders (which consent has
already been given as to the termination of the Loan Documents as provided in Section 10.9).  Notwithstanding the foregoing or anything to
the contrary herein (except Section 2.18, to the extent applicable), Agent
shall not, without the prior consent of each individual Lender, execute and
deliver on behalf of such Lender any waiver or amendment which would:  (1) waive any of the conditions
specified in Article IV (provided that Agent may in its discretion
withdraw any request it has made under Section 4.2), (2) increase the
maximum amount which such Lender is committed hereunder to lend, (3) reduce
any fees payable to such Lender hereunder, or the principal of, or interest on,
such Lender’s Notes, (4) extend the Maturity Date, or postpone any date
fixed for any payment of any such fees, principal or interest, (5) amend
the definition herein of “Required Lenders” or otherwise change the aggregate
amount of Percentage Shares which is required for Agent, Lenders or any of them
to take any particular action under the Loan Documents, (6) release
Borrower from its obligation to pay such Lender’s Obligations or any Guarantor
(other than a Guarantor which ceases to be a Subsidiary pursuant to a sale or
other disposition permitted by the Loan Documents) from its guaranty of such
payment or (7) release all or substantially all of the Collateral, except
for such releases relating to sales or dispositions of property permitted by
the Loan Documents, or (8) amend this Section 10.1(a).  Notwithstanding the foregoing or anything to
the contrary herein except Section 2.18, to the extent applicable), Agent
shall not, without the prior consent of each individual Lender affected thereby
(or, as applicable, an Affiliate of such Lender), execute and deliver any
waiver or amendment to any Loan Document which would (i) cause an
obligation under any outstanding Hedging Contract owing to such Lender (or its
Affiliate) that, prior to such waiver or amendment, constituted a 

 

65

 

“Lender Hedging Obligation” to cease to be a “Lender
Hedging Obligation” or (ii) cause the priority of the Lien securing such
obligation or the priority of payment with respect to such obligation in
connection with the exercise of remedies under such Loan Document to be subordinate
in any manner to the other Obligations (other than expense reimbursements,
expenses of enforcement, and other similar obligations owing under the Loan
Documents).

 

Acknowledgments and
Admissions.  Borrower
hereby represents, warrants, acknowledges and admits that (i) it has been
advised by counsel in the negotiation, execution and delivery of the Loan
Documents to which it is a party, (ii) it has made an independent decision
to enter into this Agreement and the other Loan Documents to which it is a party,
without reliance on any representation, warranty, covenant or undertaking by
Agent or any Lender, whether written, oral or implicit, other than as expressly
set out in this Agreement or in another Loan Document delivered on or after the
date hereof, (iii) there are no representations, warranties, covenants,
undertakings or agreements by any Lender as to the Loan Documents except as
expressly set out in this Agreement or in another Loan Document delivered on or
after the date hereof, (iv) no Lender has any fiduciary obligation toward
Borrower with respect to any Loan Document or the transactions contemplated
thereby, (v) the relationship pursuant to the Loan Documents between
Borrower and the other Restricted Persons, on one hand, and each Lender, on the
other hand, is and shall be solely that of debtor and creditor, respectively,
provided that, solely for purposes of Section 10.5(f), Agent shall act as
Agent of Borrower in maintaining the Register as set forth therein, (vi) no
partnership or joint venture exists with respect to the Loan Documents between
any Restricted Person and any Lender, (vii) Agent is not Borrower’s Agent,
but Agent for Lenders, provided that, solely for purposes of Section 10.5(f),
Agent shall act as Agent of Borrower in maintaining the Register as set forth
therein, (viii) should an Event of Default or Default occur or exist, each
Lender will determine in its sole discretion and for its own reasons what
remedies and actions it will or will not exercise or take at that time subject
to the terms of this Agreement, (ix) without limiting any of the
foregoing, Borrower is not relying upon any representation or covenant by any
Lender, or any representative thereof, and no such representation or covenant
has been made, that any Lender will, at the time of an Event of Default or
Default, or at any other time, waive, negotiate, discuss, or take or refrain
from taking any action permitted under the Loan Documents with respect to any
such Event of Default or Default or any other provision of the Loan Documents,
and (x) all Lender Parties have relied upon the truthfulness of the
acknowledgments in this section in deciding to execute and deliver this
Agreement and to become obligated hereunder.

 

Joint Acknowledgment.  THIS WRITTEN AGREEMENT AND
THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

Survival of Agreements; Cumulative Nature.  Except for representations and warranties
given as of a specified date, all of Restricted Persons’ various
representations, warranties, covenants and agreements in the Loan Documents
shall survive the execution and delivery of this Agreement and the other Loan
Documents and the performance hereof and thereof, 

 

66

 

including the making or granting of the Loans
and the delivery of the Notes and the other Loan Documents, and shall further
survive until all of the Obligations are paid in full to each Lender Party and
all of Lender Parties’ obligations to Borrower are terminated.  All statements and agreements contained in
any certificate or other instrument delivered by any Restricted Person to any
Lender Party under any Loan Document shall be deemed representations and
warranties by Borrower or agreements and covenants of Borrower under this
Agreement.  The representations,
warranties, indemnities, and covenants made by Restricted Persons in the Loan
Documents, and the rights, powers, and privileges granted to Lender Parties in
the Loan Documents, are cumulative, and, except for expressly specified waivers
and consents, no Loan Document shall be construed in the context of another to
diminish, nullify, or otherwise reduce the benefit to any Lender Party of any
such representation, warranty, indemnity, covenant, right, power or
privilege.  In particular and without
limitation, no exception set out in this Agreement to any representation,
warranty, indemnity, or covenant herein contained shall apply to any similar
representation, warranty, indemnity, or covenant contained in any other Loan
Document, unless the Loan Documents shall expressly provide that such exception
shall apply to such similar representation, warranty, indemnity, or covenant.

 

Notices.  All notices, requests, consents, demands and
other communications required or permitted under any Loan Document shall be in
writing, unless otherwise specifically provided in such Loan Document (provided
that Agent may give telephonic notices to the other Lender Parties), and shall
be deemed sufficiently given or furnished if delivered by personal delivery, by
facsimile or other electronic transmission, by delivery service with proof of
delivery, or by registered or certified United States mail, postage prepaid, to
Borrower and Restricted Persons at the address of Borrower specified on the
signature pages hereto and to each Lender Party at its address specified
on Schedule 3.1 hereto (unless changed by similar notice in writing
given by the particular Person whose address is to be changed).  Any such notice or communication shall be
deemed to have been given (a) in the case of personal delivery or delivery
service, as of the date of first attempted delivery during normal business
hours at the address provided herein, (b) in the case of facsimile or
other electronic transmission, upon receipt, or (c) in the case of
registered or certified United States mail, three days after deposit in the mail;
provided, however, that no Borrowing Notice shall become effective until
actually received by Agent.

 

Payment of Expenses; Indemnity.

 

Payment of Expenses.  Whether or not the transactions contemplated
by this Agreement are consummated, Borrower will promptly (and in any event,
within thirty (30) days after any invoice or other statement or notice) pay: (i) all
transfer, stamp, mortgage, documentary or other similar taxes, assessments or
charges levied by any governmental or revenue authority in respect of this
Agreement or any of the other Loan Documents or any other document or
transaction referred to herein or therein, (ii) all reasonable costs and
expenses incurred by or on behalf of Agent (including without limitation
reasonable attorneys’ fees, travel costs and miscellaneous expenses), but
excluding consultants fees other than in connection with an annual field audit
permitted below, in connection with (1) the negotiation, preparation,
execution and delivery of the Loan Documents, and any and all consents, waivers
or other documents or instruments relating thereto, (2) the filing,
recording, refiling and re-recording of any Loan Documents and any other
documents or instruments or further assurances required to be filed or recorded
or refiled or re-recorded by the terms of any Loan Document, (3) the
borrowings hereunder and 

 

67

 

other action reasonably required in the course of
administration hereof, (4) monitoring or confirming (or preparation or
negotiation of any document related to) any Restricted Person’s compliance with
any covenants or conditions contained in this Agreement or in any Loan
Document, and (iii) all reasonable costs and expenses incurred by the
Agent on behalf of any Lender Party (including without limitation reasonable
attorneys’ fees, reasonable consultants’ fees and reasonable accounting fees)
in connection with the conduct of an annual field audit, the preservation of
any rights under the Loan Documents or the defense or enforcement of any of the
Loan Documents (including this section), any attempt to cure any breach
thereunder by any Restricted Person, or the defense of any Lender Party’s
exercise of its rights thereunder.  In
addition to the foregoing, until all Obligations have been paid in full,
Borrower will also pay or reimburse Agent for all reasonable out-of-pocket
costs and expenses of Agent or its agents or employees in connection with the
continuing administration of the Loans and the related due diligence of Agent,
including travel and miscellaneous expenses and reasonable fees and expenses of
Agent’s outside counsel and consultants engaged in connection with the Loan
Documents.

 

Indemnity. Borrower
agrees to indemnify each Lender Party, upon demand, from and against any and
all liabilities, obligations, broker’s fees, claims, losses, damages,
penalties, fines, actions, judgments, suits, settlements, costs, expenses or
disbursements (including reasonable fees of attorneys, accountants, experts and
advisors) of any kind or nature whatsoever (in this section collectively called
“liabilities and costs”) which to any extent (in whole or in part) may be
imposed on, incurred by, or asserted against such Lender Party growing out of,
resulting from or in any other way associated with any of the Collateral, the
Loan Documents and the transactions and events (including the enforcement or
defense thereof) at any time associated therewith or contemplated therein
(whether arising in contract or in tort or otherwise).  Among other things, the foregoing
indemnification covers all liabilities and costs incurred by any Lender Party
related to any breach of a Loan Document by a Restricted Person, any bodily
injury to any Person or damage to any Person’s property, or any violation or
noncompliance with any Environmental Laws by any Lender Party or any other
Person or any liabilities or duties of any Lender Party or any other Person
with respect to Hazardous Materials found in or released into the environment.

 

THE
FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES AND COSTS
ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM
OR THEORY OF STRICT LIABILITY OR CAUSED, IN WHOLE OR IN PART BY ANY
NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY LENDER PARTY,

provided
only that no Lender Party shall be entitled under this section to receive
indemnification for that portion, if any, of any liabilities and costs which is
proximately caused by its own individual gross negligence or willful
misconduct, as determined by a court of competent jurisdiction in a final and
nonappealable judgment.  If any Person
(including Borrower or any of its Affiliates) ever alleges such gross
negligence or willful misconduct by any Lender Party, the indemnification
provided for in this section shall nonetheless be paid upon demand, subject to
later adjustment or reimbursement, until such time as a court of competent
jurisdiction enters a final and nonappealable judgment as to the extent and
effect of the alleged gross negligence or willful misconduct.  As used in this section the term “Lender
Party” shall refer not only to each 

 

68

 

Person
designated as such in Section 1.1 but also to each director, officer,
Agent, trustee, attorney, employee, representative and Affiliate of or for such
Person.

 

Joint and Several Liability; Parties in Interest;
Assignments.

 

All Obligations which are
incurred by two or more Restricted Persons shall be their joint and several
obligations and liabilities.  All grants,
covenants and agreements contained in the Loan Documents shall bind and inure
to the benefit of the parties thereto and their respective successors and
assigns; provided, however, that no Restricted Person may assign or transfer
any of its rights or delegate any of its duties or obligations under any Loan
Document without the prior consent of the Required Lenders.  Neither Borrower nor any Affiliates of
Borrower shall directly or indirectly purchase or otherwise retire any
Obligations owed to any Lender nor will any Lender accept any offer to do so,
unless each Lender shall have received substantially the same offer with
respect to the same Percentage Share of the Obligations owed to it.  If Borrower or any Affiliate of Borrower at
any time purchases some but less than all of the Obligations owed to all Lender
Parties, such purchaser shall not be entitled to any rights of any Lender under
the Loan Documents unless and until Borrower or its Affiliates have purchased
all of the Obligations.

 

No Lender shall sell any
participation interest in its commitment hereunder or any of its rights under
its Loans or under the Loan Documents to any Person unless the agreement
between such Lender and such participant at all times provides: (i) that
such participation exists only as a result of the agreement between such
participant and such Lender and that such transfer does not give such
participant any right to vote as a Lender or any other direct claims or rights
against any Person other than such Lender, (ii) that such participant is
not entitled to payment from any Restricted Person under Sections 3.2 through
3.8 of amounts in excess of those payable to such Lender under such sections
(determined without regard to the sale of such participation), and (iii) unless
such participant is an Affiliate of such Lender, that such participant shall
not be entitled to require such Lender to take any action under any Loan
Document or to obtain the consent of such participant prior to taking any
action under any Loan Document, except for actions which would require the
consent of all Lenders under subsection (a) of Section 10.1.  No Lender selling such a participation shall,
as between the other parties hereto and such Lender, be relieved of any of its
obligations hereunder as a result of the sale of such participation.  Each Lender which sells any such
participation to any Person (other than an Affiliate of such Lender) shall give
prompt notice thereof to Agent and Borrower.

 

Except for sales of
participations under the immediately preceding subsection, no Lender shall make
any assignment or transfer of any kind of its commitments or any of its rights
under its Loans or under the Loan Documents, except for assignments to an
Eligible Transferee, and then only if such assignment is made in accordance
with the following requirements:

 

Each such assignment shall apply to all Obligations
owing to the assignor Lender hereunder and to the unused portion of the
assignor Lender’s Revolving Loan Commitment, so that after such assignment is
made the assignor Lender shall have a fixed (and not a varying) Percentage
Share in its Loans and Notes and be committed to make that Percentage Share of
all future Loans, the assignee shall have a fixed Percentage Share in the
aggregate Loans and Notes and be committed to make that 

 

69

 

Percentage
Share of all future Loans, and, except in the case of an assignment of the
entire remaining amount of the assignor’s Percentage Share of the Revolving
Loan Commitment, the Revolving Loan Commitment to be assigned shall equal or
exceed $5,000,000.

 

The parties to each such assignment shall execute
and deliver to Agent, for its acceptance and recording in the “Register” (as
defined below in this section), an Assignment and Acceptance in the form of Exhibit 10.5,
appropriately completed, together with the Note subject to such assignment and
a processing fee payable to Agent of $3,500. 
Upon such execution, delivery, and payment and upon the satisfaction of
the conditions set out in such Assignment and Acceptance, then (1) Borrower
shall issue new Notes to such assignor and assignee upon return of the old
Notes to Borrower, and (2) as of the “Settlement Date” specified in such
Assignment and Acceptance the assignee thereunder shall be a party hereto and a
Lender hereunder and Agent shall thereupon deliver to Borrower and each Lender
a schedule showing the revised Percentage Shares of such assignor Lender and
such assignee Lender and the Percentage Shares of all other Lenders.

 

Each assignee Lender which is not a United States
person (as such term is defined in Section 7701(a)(30) of the Internal
Revenue Code) for Federal income tax purposes, shall (to the extent it has not
already done so) provide Agent and Borrower with the “Prescribed Forms”
referred to in Section 3.6(d).

 

Unless the assignee is a Lender, an Affiliate of a
Lender or an Approved Fund, such assignment shall not be effective unless
consented to in writing by Agent, the LC Issuer, and the Swingline Lender and,
unless an Event of Default shall have occurred and be continuing, Borrower
(such consent not to be unreasonably withheld or delayed).

 

Nothing contained in this
section shall prevent or prohibit any Lender from assigning or pledging all or
any portion of its Loans and Notes to any Federal Reserve Bank as collateral
security pursuant to Regulation A of the Board of Governors of the Federal
Reserve System and any Operating Circular issued by such Federal Reserve Bank;
provided that no such assignment or pledge shall relieve such Lender from its
obligations hereunder.

 

By executing and delivering
an Assignment and Acceptance, each assignee Lender thereunder will be
confirming to and agreeing with Borrower, Agent and each other Lender Party
that such assignee understands and agrees to the terms hereof, including Article IX
hereof.

 

Agent shall maintain a copy
of each Assignment and Acceptance and a register for the recordation of the
names and addresses of Lenders and the Percentage Shares of, and principal
amount of the Loans owing to, each Lender from time to time (in this section
called the “Register”).  The entries in
the Register shall be conclusive, in the absence of manifest error, and
Borrower and each Lender Party may treat each Person whose name is recorded in
the Register as a Lender hereunder for all purposes.  The Register shall be available for
inspection by Borrower or any Lender Party at any reasonable time and from time
to time upon reasonable prior notice. 
Agent shall act as Agent of Borrower solely for purposes of maintaining
the Register as set forth in this Section 10.5(f).

 

70

 

The Borrower shall not
assign or otherwise transfer any of its rights or obligations under this
Agreement without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower without such consent shall be null and
void).

 

Confidentiality.  Each Lender Party agrees to keep confidential
any information furnished or made available to it by any Restricted Person
pursuant to this Agreement that is financial information, information in
connection with a proposed transaction, or information marked confidential;
provided that nothing herein shall prevent any Lender Party from disclosing
such information (a) to any other Lender Party or any Affiliate of any
Lender Party, or any officer, director, employee, agent, attorney, auditor, or
advisor of any Lender Party or Affiliate of any Lender Party, (b) to any
other Person if reasonably incidental to the administration of the credit
facility provided herein, (c) as required by any Law, (d) upon the
order of any court or administrative agency, (e) upon the request or
demand of any Tribunal, (f) that is or becomes available to the public or
that is or becomes available to any Lender Party other than as a result of a
disclosure by any Lender Party prohibited by this Agreement, (g) to the
extent necessary in connection with the exercise of any right or remedy under
this Agreement or any other Loan Document, (h) subject to provisions
substantially similar to those contained in this section, to any actual or
proposed participant or assignee or any actual or proposed contractual
counterparty (or its advisors) to any securitization, hedge, or other
derivative transaction relating to the parties’ obligations hereunder, and (i) if
it is otherwise available in the public domain. 
Notwithstanding anything set forth herein to the contrary, each party to
this Agreement and each of its employees, representatives, and other Agents is
hereby expressly authorized to disclose the “tax treatment” and “tax structure”
(as those terms are defined in Treas. Reg. §§ 1.6011-4(c)(8) and (9),
respectively) of the transactions contemplated hereby and all materials of any
kind, including opinions or other tax analyses, that have been provided to it
by any other party relating to such tax treatment or tax structure.  Any Person required to maintain the
confidentiality of information described in this section shall be considered to
have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such information as such
Person would accord to its own confidential information.

 

Governing Law; Submission to Process.  Except to the extent that the Law of another
jurisdiction is expressly elected in a Loan Document, the Loan Documents shall
be deemed contracts and instruments made under the Laws of the State of Texas
and shall be construed and enforced in accordance with and governed by the Laws
of the State of Texas and the Laws of the United States of America, without
regard to principles of conflicts of law. 
Chapter 346 of the Texas Finance Code (which regulates certain revolving
credit loan accounts and revolving tri-party accounts) does not apply to this
Agreement or to the Notes.  Borrower
hereby irrevocably submits itself and each other Restricted Person to the
exclusive jurisdiction of the state and federal courts sitting in the State of
Texas and agrees and consents that service of process may be made upon it or
any Restricted Person in any legal proceeding relating to the Loan Documents or
the Obligations by any means allowed under Texas or federal law.  Any legal proceeding arising out of or in any
way related to any of the Loan Documents shall be brought and litigated
exclusively in the United States District Court for the Southern District of
Texas, Houston Division, to the extent it has subject matter jurisdiction, and
otherwise in the Texas District Courts sitting in Harris County, Texas.  The parties hereto hereby waive and agree not
to assert, by way of motion, as a defense or otherwise, that any such
proceeding is brought in an inconvenient forum or that the venue thereof is improper,
and further agree to a transfer of any 

 

71

 

such proceeding to a federal court sitting in
the State of Texas to the extent that it has subject matter jurisdiction, and
otherwise to a state court in Houston, Texas. 
In furtherance thereof, Borrower and Lender Parties each hereby
acknowledge and agree that it was not inconvenient for them to negotiate and
receive funding of the transactions contemplated by this Agreement in such
county and that it will be neither inconvenient nor unfair to litigate or
otherwise resolve any disputes or claims in a court sitting in such county.

 

Limitation on Interest.  Lender Parties, Restricted Persons and any
other parties to the Loan Documents intend to contract in strict compliance
with applicable usury Law from time to time in effect.  In furtherance thereof such Persons stipulate
and agree that none of the terms and provisions contained in the Loan Documents
shall ever be construed to create a contract to pay, for the use, forbearance
or detention of money, interest in excess of the maximum amount of interest
permitted to be charged by applicable Law from time to time in effect.  Neither any Restricted Person nor any present
or future guarantors, endorsers, or other Persons hereafter becoming liable for
payment of any Obligation shall ever be liable for unearned interest thereon or
shall ever be required to pay interest thereon in excess of the maximum amount
that may be lawfully contracted for, charged, or received under applicable Law
from time to time in effect, and the provisions of this section shall control
over all other provisions of the Loan Documents which may be in conflict or
apparent conflict herewith.  Lender
Parties expressly disavow any intention to contract for, charge, or collect
excessive unearned interest or finance charges in the event the maturity of any
Obligation is accelerated.  If (a) the
maturity of any Obligation is accelerated for any reason, (b) any
Obligation is prepaid and as a result any amounts held to constitute interest
are determined to be in excess of the legal maximum, or (c) any Lender or
any other holder of any or all of the Obligations shall otherwise collect
moneys which are determined to constitute interest which would otherwise
increase the interest on any or all of the Obligations to an amount in excess
of that permitted to be charged by applicable Law then in effect, then all sums
determined to constitute interest in excess of such legal limit shall, without
penalty, be promptly applied to reduce the then outstanding principal of the
related Obligations or, at such Lender’s or holder’s option, promptly returned
to Borrower or the other payor thereof upon such determination.  In determining whether or not the interest
paid or payable, under any specific circumstance, exceeds the maximum amount
permitted under applicable Law, Lender Parties and Restricted Persons (and any
other payors thereof) shall to the greatest extent permitted under applicable
Law, (i) characterize any non-principal payment as an expense, fee or premium
rather than as interest, (ii) exclude voluntary prepayments and the
effects thereof, and (iii) amortize, prorate, allocate, and spread the
total amount of interest throughout the entire contemplated term of the
instruments evidencing the Obligations in accordance with the amounts
outstanding from time to time thereunder and the maximum legal rate of interest
from time to time in effect under applicable Law in order to lawfully contract
for, charge, or receive the maximum amount of interest permitted under
applicable Law.  In the event applicable
Law provides for an interest ceiling under Chapter 303 of the Texas Finance
Code (the “Texas Finance Code”) as amended, for that day, the ceiling shall be
the “weekly ceiling” as defined in the Texas Finance Code, provided that if any
applicable Law permits greater interest, the Law permitting the greatest
interest shall apply. As used in this section the term “applicable Law” means
the Laws of the State of Texas or the Laws of the United States of America,
whichever Laws allow the greater interest, as such Laws now exist or may be
changed or amended or come into effect in the future.

 

72

 

Termination; Limited Survival.

 

In its sole and absolute
discretion Borrower may at any time that no Obligations are owing (other than
indemnity obligations and similar obligations that survive the termination of
this Agreement for which no notice of a claim has been received by Borrower)
elect in a written notice delivered to Agent to terminate this Agreement.  Upon receipt by Agent of such a notice, if no
Obligations are then owing, this Agreement and all other Loan Documents shall
thereupon be terminated and the parties thereto released from all prospective
obligations thereunder.  Notwithstanding
the foregoing or anything herein to the contrary, any waivers or admissions
made by any Restricted Person in any Loan Document, any Obligations under
Sections 3.2 through Section 3.6, and any obligations which any Person may
have to indemnify or reimburse any Lender Party shall survive any termination
of this Agreement or any other Loan Document. 
The foregoing consent shall constitute the written consent of Required
Lenders required under Section 10.1(a)(iii).  At the request and expense of Borrower, Agent
shall prepare and execute all necessary instruments to reflect and effect such
termination of the Loan Documents.  Agent
is hereby authorized to execute all such instruments on behalf of all Lenders,
without the joinder of or further action by any Lender.

 

The Agent and the Lenders
hereby consent to (i) the automatic release of any Liens securing the
Obligations in Collateral that is sold or otherwise disposed of by a Restricted
Person in compliance with this Agreement and (ii) the automatic release
from the relevant Guaranty of any Guarantor that ceases to be a Subsidiary
pursuant to a sale or disposal of property that is permitted by this Agreement,
in each case without need for further approval of the Agent or any Lender.  The foregoing consent shall constitute the
written consent of Required Lenders required under clause (iii) of the
fourth sentence of Section 10.1(a), with respect to such releases of Liens
and Guarantors.  At the request and
expense of Borrower, Agent shall prepare and execute all necessary or
reasonably requested instruments and documents to reflect and effect such
releases of Liens and Guarantors.  Agent
is hereby authorized to execute all such instruments and documents on behalf of
all Lenders, without the joinder of or further action by any Lender.

 

Severability.  If any term or provision of any Loan Document
shall be determined to be illegal or unenforceable all other terms and
provisions of the Loan Documents shall nevertheless remain effective and shall
be enforced to the fullest extent permitted by applicable Law.

 

Counterparts; Fax.  This Agreement may be separately executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to constitute one
and the same Agreement.  This Agreement
and the Loan Documents may be validly executed and delivered by facsimile or
other electronic transmission.

 

Intentionally Omitted.

 

Waiver of Jury Trial, Punitive Damages, etc.  Each of the Borrower and each Lender Party
hereby knowingly, voluntarily, intentionally, and irrevocably (a) waives,
to the maximum extent not prohibited by Law, any right it may have to a trial
by jury in respect of any litigation based hereon, or directly or indirectly at
any time arising out of, under or in connection with the 

 

73

 

Loan Documents or any transaction
contemplated thereby or associated therewith, before or after maturity; (b) waives,
to the maximum extent not prohibited by Law, any right they may have to claim
or recover in any such litigation any “Special Damages”, as defined below, (c) certifies
that no party hereto nor any representative or Agent or counsel for any party
hereto has represented, expressly or otherwise, or implied that such party
would not, in the event of litigation, seek to enforce the foregoing waivers,
and (d) acknowledges that it has been induced to enter into this
Agreement, the other Loan Documents and the transactions contemplated hereby
and thereby by, among other things, the mutual waivers and certifications
contained in this section.  As used in
this section, “Special Damages” includes all special, consequential, exemplary,
or punitive damages (regardless of how named), but does not include any
payments or funds which any party hereto has expressly promised to pay or
deliver to any other party hereto.

 

USA Patriot Act.  Agent hereby notifies Borrower that pursuant
to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56, signed
into law October 26, 2001) (the “Act”), and Agent’s policies and
practices, each Lender is required to obtain, verify and record certain
information and documentation that identifies each Restricted Person, which
information includes the name and address of each Restricted Person and such
other information that will allow each Lender to identify each Restricted
Person in accordance with the Act.

 

Renewal and Extension.  The Indebtedness arising under this Agreement
is a renewal, extension and restatement on revised terms of (but not an
extinguishment or novation of) the Existing Credit Agreement and, from and
after the date hereof, the terms and provisions of the Existing Credit
Agreement shall be superseded by the terms and provisions of this Agreement.  Borrower hereby agrees that (i) the
Indebtedness evidenced by the Existing Credit Agreement, all accrued and unpaid
interest thereon, and all accrued and unpaid fees under the Existing Credit
Agreement shall be deemed to be Indebtedness of Borrower outstanding under and
governed by this Agreement and (ii) all Liens securing the Indebtedness
evidenced by the Existing Credit Agreement shall continue in full force and
effect to secure the Secured Obligations.

 

[SIGNATURE PAGES FOLLOW]

 

74

 

IN
WITNESS WHEREOF, this Agreement is executed as of the date first written above.

 

	
   

  	
  Comfort
  Systems USA, Inc.,

  
	
   

  	
  Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William George III

  
	
   

  	
   

  	
  William
  George III

  
	
   

  	
   

  	
  Executive
  Vice President and

  
	
   

  	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
  675
  Bering, Suite 400

  
	
   

  	
  Houston,
  Texas 77057

  
	
   

  	
  Attention:
  William George III

  
	
   

  	
   

  
	
   

  	
  Telephone:
  (713) 830-9650

  
	
   

  	
  Fax:
  (713) 830-9659

  

 

 

	
   

  	
  Wells
  Fargo Bank, National Association,

  
	
   

  	
  Agent,
  LC Issuer, Swingline Lender and Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Melanie Ottens

  
	
   

  	
   

  	
  Melanie
  Ottens, Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
  Wells
  Fargo Bank, National Association

  
	
   

  	
  1000
  Louisiana, 3rd Floor

  
	
   

  	
  Houston,
  Texas 77002

  
	
   

  	
  Attention:
  Melanie Ottens

  
	
   

  	
  Telephone:
  (713) 319-1630

  
	
   

  	
  Fax:
  (713) 739-1086

  

 

 

	
   

  	
  Capital
  One, N.A.,

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Debra Halling

  
	
   

  	
   

  	
  Debra
  Halling

  
	
   

  	
   

  	
  Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  Capital
  One, N.A.

  
	
   

  	
  5718
  Westheimer, Suite 600

  
	
   

  	
  Houston,
  Texas 77057

  
	
   

  	
  Attention:
  Debra Halling

  
	
   

  	
  Telephone:
  (713) 435-5024

  
	
   

  	
  Fax:
  (713) 706-5499

  

 

 

	
   

  	
  Bank
  of Texas, N.A.,

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edward H. Braddock

  
	
   

  	
  Name:

  	
  Edward
  H. Braddock

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  Bank
  of Texas, N.A.

  
	
   

  	
  5
  Houston Center

  
	
   

  	
  1401
  McKinney, Suite 1650

  
	
   

  	
  Houston,
  Texas 77010

  
	
   

  	
  Attention:
  Edward H. Braddock

  
	
   

  	
  Telephone:
  (713) 289-5855

  
	
   

  	
  Fax:
  (713) 289-5825

  

 

 

	
   

  	
  Regions
  Bank,

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  H. Gale Smith, Jr.

  
	
   

  	
  Name:

  	
  H.
  Gale Smith, Jr.

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  Regions
  Bank

  
	
   

  	
  5005
  Woodway Drive, Suite 110

  
	
   

  	
  Houston,
  Texas 77479

  
	
   

  	
  Attention:
  H. Gale Smith, Jr.

  
	
   

  	
  Telephone:
  713-426-7157

  
	
   

  	
  Fax:
  713-426-7180

  

 

 

	
   

  	
  Branch
  Bank & Trust Company,

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  H. Gale Smith

  
	
   

  	
  Name:

  	
  H.
  Gale Smith

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  Branch
  Bank & Trust Company

  
	
   

  	
  200
  West Second Street, 16th Floor

  
	
   

  	
  Winston-Salem,
  North Carolina 27101

  
	
   

  	
  Attention:
  Eric Searls

  
	
   

  	
  Telephone:
  336-733-2741

  
	
   

  	
  Fax:
  336-733-2740

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]