Document:

exv10w1

 

Exhibit 10.1

FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 15, 2006
(this “Amendment”), is among MSX International, Inc., a Delaware corporation (with its successors
and assigns, the “Company”), the other Loan Parties, the Lenders and JPMorgan Chase Bank, N.A.
(successor by merger to Bank One, NA (Main Office Chicago)), a national banking association, as LC
Issuer and as Agent.

RECITALS

          A. The Company, the other Loan Parties, the Lenders and JPMorgan Chase Bank, NA, as LC Issuer
and as Agent, are parties to an Amended and Restated Credit Agreement dated as of August 1, 2003,
as amended (the “Credit Agreement”).

          B. The Company and the other Loan Parties have requested that the Agent, the LC Issuer and the
Lenders reduce the aggregate Commitments under the Credit Agreement from $45,000,000 to $25,000,000
in connection with prepayments and defeasance of obligations under the Credit Agreement and have
requested to amend the Credit Agreement as set forth herein, and the Agent, the LC Issuer and the
Lenders are willing to do so in accordance with the terms hereof.

TERMS

          In consideration of the premises and of the mutual agreements herein contained, the parties
agree as follows:

          ARTICLE I. AMENDMENTS. Upon fulfillment of the conditions set forth in Article III
hereof, the Credit Agreement shall be amended as follows:

          1.1 The following definitions in Section 1.1 are restated as follows:

          “Aggregate Commitment” means the aggregate of the Commitments of all the Lenders, as
reduced from time to time pursuant to the terms hereof, which Aggregate Commitment is $25,000,000
as of the Fifth Amendment Effective Date.

          “Applicable Margin” means, with respect to Credit Extensions of any Type at any time,
the percentage rate per annum which is applicable to Credit Extensions of such Type as set forth in
Level I in the Pricing Schedule.

          “Borrowing Base” means, at any time, the U.S. Borrowing Base.

          “Eligible Accounts” means, as of any date, the Accounts of the Company and the
Domestic Guarantors which the Agent determines in its Permitted Discretion are eligible as the
basis for Credit Extensions hereunder. Without limiting the Agent’s discretion provided herein,
Eligible Accounts shall not include any Account:

     (a) which is not subject to a first priority perfected security interest in favor of
the Agent;

     (b) which is subject to any Lien other than (i) a Lien in favor of the Agent and (ii) a

 

 

Permitted Lien which is junior to the Lien in favor of the Agent;

     (c) with respect to which more than 90 days have elapsed since the date of the invoice
therefor;

     (d) which is owing by an Account Debtor for which more than 50% of the Accounts owing
from such Account Debtor and its Affiliates are ineligible hereunder;

     (e) which is owing by an Account Debtor to the extent the aggregate amount of Accounts
owing from such Account Debtor and its Affiliates to the Company or the Domestic Guarantors
exceeds a percentage (if any), as may be determined by the Agent in its Permitted Discretion
at any time and for which the Agent has notified the Company, of the aggregate Eligible
Accounts;

     (f) with respect to which any covenant, representation, or warranty contained in this
Agreement or in the Security Agreement has been breached or is not true;

     (g) which (i) does not arise from the sale of goods or performance of services in the
ordinary course of business, (ii) is not evidenced by an invoice or other documentation
satisfactory to the Agent as determined in its Permitted Discretion, which has been sent to
the Account Debtor, (iii) represents a progress billing, (iv) is contingent upon the
Company’s completion of any further performance, (v) is a dated Account (meaning any account
due on a date more than 30 days after the original issuance of the related invoice or on
other customary terms consistent with past practice and approved by the Agent’s collateral
auditors), or (vi) represents a sale on a bill-and-hold, guaranteed sale, sale-and-return,
sale on approval, consignment, cash-on-delivery or any other repurchase or return basis;

     (h) for which the goods giving rise to such Account have not been shipped to the
Account Debtor or for which the services giving rise to such Account have not been performed
by the Company or billings in excess of costs;

     (i) with respect to which any check or other instrument of payment has been returned
uncollected for any reason;

     (j) which is owed by an Account Debtor which has (i) applied for, suffered, or
consented to the appointment of any receiver, custodian, trustee, or liquidator of its
assets, (ii) has had possession of all or a material part of its property taken by any
receiver, custodian, trustee or liquidator, (iii) filed, or had filed against it, any
Insolvency Proceeding, (iv) has admitted in writing its inability, or is generally unable
to, pay its debts as they become due, (v) become insolvent, or (vi) ceased operation of its
business;

     (k) which is owed by any Account Debtor that the Company or any of its Domestic
Subsidiaries knows has sold all or a substantially all of its assets;

     (l) which is owed by an Account Debtor which (i) does not maintain its chief executive
office in the U.S. or Canada or (ii) is not organized under applicable law of the U.S. or
any state of the U.S. or Canada or any province of Canada unless, in any case, such Account
is backed by a Letter of Credit acceptable to the Agent as determined in its Permitted
Discretion which is in the possession of the Agent;

     (m) which is owed in any currency other than Dollars;

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     (n) which is owed by (i) the government (or any department, agency, public corporation,
or instrumentality thereof) of any country other than the U.S. unless such Account is backed
by a Letter of Credit acceptable to the Agent as determined in its Permitted Discretion
which is in the possession of the Agent, or (ii) the government of the U.S., or any
department, agency, public corporation, or instrumentality thereof, unless the Federal
Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and
41 U.S.C. § 15 et seq.), and any other steps necessary to perfect the Lien
of the Agent in such Account have been complied with to the Agent’s satisfaction as
determined in its Permitted Discretion;

     (o) which is owed by any Affiliate, employee, or director of any Loan Party;

     (p) which, for any Account Debtor, exceeds a credit limit determined by the Agent and
for which the Agent has notified the Company, to the extent of such excess;

     (q) which is owed by an Account Debtor or any Affiliate of such Account Debtor to which
any Loan Party is indebted, but only to the extent of such indebtedness;

     (r) which is subject to any counterclaim, deduction, defense, setoff, dispute,
contra-account, chargeback, allowance, credit, discount or similar claim, but only to the
extent thereof;

     (s) which is evidenced by any promissory note, chattel paper, or instrument;

     (t) which is owed by an Account Debtor located in any jurisdiction which requires
filing of a “Notice of Business Activities Report” or other similar report in order to
permit the Company to seek judicial enforcement in such jurisdiction of payment of such
Account, unless the Company has filed such report or qualified to do business in such
jurisdiction;

     (u) with respect to which the Company or any Domestic Guarantor has made any agreement
with the Account Debtor for any reduction thereof, other than discounts and adjustments
given in the ordinary course of business, but only to the extent of such reduction;

     (v) which represents an account arising from a fixed price contract that is not
completed;

     (w) which relates to a business of the Company or any of its Subsidiaries that has been
completely or substantially sold or terminated; or

     (x) which the Agent determines in its Permitted Discretion may not be paid by reason of
the Account Debtor’s inability to pay or which the Agent otherwise determines in its
Permitted Discretion is unacceptable for any reason whatsoever.

In the event that an Account which was previously an Eligible Account ceases to be an Eligible
Account hereunder and the Borrower has knowledge thereof, the Borrower shall notify the Agent
thereof (i) within three (3) Business Days of the date the Borrower has obtained knowledge thereof
if any such Account is in excess of $100,000 in the aggregate and (ii) on and at the time of
submission to the Agent of the next Borrowing Base Certificate in all other cases.

          “Global Borrowing Base Availability” means, at any time, an amount equal to (a) the
U.S. Borrowing Base, minus (b) the aggregate of the Credit Exposure of all of the Lenders with
respect to Loans.

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          “Termination Date” means January 15, 2007 or any earlier date on which the Aggregate
Commitment is reduced to zero or otherwise terminated pursuant to the terms hereof.

          “U.S. Borrowing Base” means, at any time, the sum of (a) the lesser of (i) up to 85%
of Company’s and each Domestic Guarantor’s Eligible Accounts at such time, minus Reserves allocated
thereto by the Agent, or (ii) $6,000,000; plus (b) up to 100% of the cash of the Company
and the Domestic Guarantors subject to the Borrowing Base Blocked Account Agreement or the 2006
Blocked Account Agreement.

          1.2 The following definitions are added to Section 1.1 in appropriate alphabetical order:

          “Borrowing Base Blocked Account” means the “Account” defined and referenced in the
Borrowing Base Blocked Account Control Agreement.

          “Borrowing Base Blocked Account Control Agreement” means the Blocked Account Control
Agreement dated as of March 15, 2006 among the Company, the Domestic Guarantors, the Agent and
JPMorgan Chase Bank, N.A. as the depository bank.

          “Domestic Guarantors” means Guarantors that are Domestic Subsidiaries.

          “Fifth Amendment” means the Fifth Amendment to this Agreement dated the Fifth
Amendment Effective Date.

          “Fifth Amendment Effective Date” means March 15, 2006.

          “Maximum LC Amount” means $5,000,000 minus any reductions of the Maximum LC Amount
pursuant to the last sentence of Section 2.1.6.

          “LC Blocked Account” means the “Account” defined and referenced in the LC Blocked
Account Control Agreement.

          “LC Blocked Account Control Agreement” means the Blocked Account Control Agreement
dated as of March 15, 2006 among the Company, the Domestic Guarantors, the Agent and JPMorgan Chase
Bank, N.A. as the depository bank.

          1.3 Sections 2.1, 2.1.1(a) and 2.1.2(a) are restated as follows:

          2.1. The Facility. Each Lender severally agrees, on the terms and conditions set
forth in this Agreement, to (a) make Loans to the Company set forth below and (b) participate in
Facility LCs issued upon the request of the Company and in Overadvances, Protective Advances,
Non-Ratable Loans and Swingline Loans made to the Company, provided that, after giving effect to
the making of each such Loan and the issuance of each such Facility LC, (i) such Lender’s Credit
Exposure shall not exceed its Commitment and (ii) the Aggregate Credit Exposure shall not exceed
the Aggregate Commitment or any other limitation on the Aggregate Credit Exposure contained in this
Agreement. The LC Issuer will issue Facility LCs hereunder on the terms and conditions set forth
in Section 2.1.2. The Facility shall be composed of Revolving Loans, Non-Ratable Loans,
Protective Advances, Swingline Loans, Overadvances and Facility LCs as set forth below:

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          2.1.1. Revolving Loans.

     (a) Amount. From and including the Closing Date and prior to the Termination
Date, each Lender severally agrees, on the terms and conditions set forth in this Agreement,
to make revolving loans (the “Revolving Loans”) in Dollars and participate in
Facility LCs issued in Dollars as set forth in Section 2.1.2 below, to the Company,
in amounts not to exceed such Lender’s Pro Rata Share. If any Advance would exceed
Availability, the Lenders will refuse to make or may otherwise restrict the making of
Revolving Loans or the issuance of Facility LCs as the Lenders determine until such excess
has been eliminated, subject to the Agent’s authority, in its sole discretion, to make
Protective Advances and Overadvances pursuant to the terms of Section 2.1.4. The
Revolving Loans may consist of Floating Rate Advances or Eurodollar Advances, or a
combination thereof, selected by the Company in accordance with Sections 2.1.1(b)
and 2.7. Subject to the terms of this Agreement, the Company may borrow, repay and
reborrow Revolving Loans at any time prior to the Termination Date. The Commitments to
extend credit hereunder shall expire on the Termination Date.

     2.1.2. Facility LCs.

     (a) Issuance. The LC Issuer hereby agrees, on the terms and conditions set
forth in this Agreement, to issue standby and commercial Letters of Credit (each, a
“Facility LC”) and to renew, extend, increase, decrease or otherwise modify each
Facility LC (“Modify,” and each such action a “Modification”), from time to
time from and including the Closing Date of this Agreement and prior to the Termination Date
upon the request of the Company; provided that, the maximum face amount of the Facility LC
to be issued or Modified, does not exceed an amount equal to $5,000,000 minus the
sum of (1) the aggregate undrawn amount of all outstanding Facility LCs at such time and,
without duplication, (2) the aggregate unpaid Reimbursement Obligations with respect to all
Facility LCs outstanding at such time. Additionally, notwithstanding anything in this
Agreement to the contrary, the aggregate Credit Exposure of all of the Lenders with respect
to Facility LCs shall not exceed the lesser of the Maximum LC Amount or the amount of cash
on deposit in the LC Blocked Account. No Facility LC shall have an expiry date later than
the one year after its issuance.

     1.4 Section 2.1.2(l) is restated as follows:

     (l) Termination of the Facility. If any Facility LC is outstanding upon the
termination of this Agreement, whether at scheduled termination, by acceleration or
otherwise, then, notwithstanding anything in this Agreement to the contrary, upon such
termination the Company shall deposit with the Agent, for the benefit of the Agent and the
Lenders, with respect to all LC Obligations, as the Agent in its discretion shall specify,
either (i) a standby letter of credit (a “Supporting Letter of Credit”), in form and
substance satisfactory to the Agent, issued by an issuer satisfactory to the Agent, or cash
in an amount in immediately available funds (which funds shall be held in the LC Blocked
Account) equal to 105% of the difference of (x) the amount of LC Obligations at such time,
less (y) the amount on deposit in the LC Blocked Account at such time which is free and
clear of all rights and claims of third parties and has not been applied against the
Obligations (such difference, the “Collateral Shortfall Amount”), under which
Supporting Letter of Credit the Agent is entitled to draw amounts necessary to reimburse the
Agent, the LC Issuer and the Lenders for payments to be made by the Agent, the LC Issuer and
the Lenders under any such Facility LC and any fees and expenses associated with such
Facility LC, or (ii) cash to be deposited in the LC Blocked Account in an amount equal to
105% of the Collateral Shortfall Amount. Such Supporting Letter of Credit or deposit of cash
shall be held by

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the Agent, for the benefit of the Agent and the Lenders, as security for,
and to provide for the payment of, the aggregate undrawn amount of such Facility LC
remaining outstanding.

          1.5 Section 2.1.5 is restated as follows:

          2.1.5 Swingline Loans. Notwithstanding anything herein to the contrary, the Borrowers
shall not be able to obtain any Swingline Loans on or after the Fifth Amendment Effective Date and
all Swingline Loans shall be paid in full on or about the Fifth Amendment Effective Date.

          1.5 Section 2.1.6 is restated as follows:

          2.1.6 Limitation on Advances; LC Blocked Account Notwithstanding anything in this
Agreement to the contrary, (a) the Aggregate Credit Exposure shall not exceed the Aggregate
Commitment, (b) the aggregate of the Credit Exposure of all of the Lenders with respect to Loans
will not exceed the lesser of the Borrowing Base or $20,000,000, (c) the aggregate Credit Exposure
of all of the Lenders with respect to Facility L/Cs shall not exceed the lesser of the Maximum LC
Amount or the amount of cash on deposit in the LC Blocked Account and (d) on and after the Fifth
Amendment Effective Date, there shall be no (i) Credit Exposure of any Lender with respect to any
Loans or Facility L/Cs to the Netherlands Borrower, the U.K. Borrower or any other Borrower (other
than the Company), (ii) Credit Extensions in any currency other than Dollars and (iii) Swingline
Loans. The Borrowers shall immediately prepay the Obligations owing by them to the extent they
exceed any of the foregoing amounts by the amount of such excess. Notwithstanding this Section
2.1.6 or anything else in this Agreement to the contrary, if the Credit Exposure of any Lender
exceeds the limitations herein due to currency fluctuations, each Lender’s obligation to
participate in Facility LCs, Protective Advances, Overadvances, Non-Ratable Loans and Swingline
Loans and to reimburse, and fulfill their other obligations with respect thereto, to the Agent and
the LC Issuer shall not be impaired in any manner. After the prepayment of the Loans described in
Section 1.17 of the Fifth Amendment and in addition to other funds, the Company is depositing any
remaining funds in the 2006 LC Blocked Account into the LC Blocked Account on the Fifth Amendment
Effective Date. The Company may, and currently intends to, request that cash on deposit in the LC
Blocked Account be used to provide cash collateral to any beneficiary of a Facility LC in a manner
acceptable to the Agent and be released from the LC Blocked Account if (w) such Facility LC is
permanently defeased and cancelled in connection therewith in a manner acceptable to the Agent, (x)
the amount of cash from the LC Blocked Account used to permanently defease and cancel such Facility
LC permanently reduces the Maximum LC Amount and the Aggregate Commitment by the amount thereof and
reduces the amount of asset sale proceeds required to prepay the Subordinated Debt Documents, the
Fourth Secured Term Loan Debt Documents, the Third Secured Term Loan Debt Documents and the Second
Secured Debt Documents by the amount thereof, (y) the Company delivers a legal opinion reasonably
satisfactory to the Agent with respect thereto if requested by the Agent and (z) no Default or
Unmatured Default exists or would be caused thereby.

          1.6 Section 4.2(b) is restated as follows:

     (b) Any representation or warranty contained in this Credit Agreement or in any
amendment to this Credit Agreement is untrue or incorrect in any material respect as
of such Credit Extension Date except to the extent any such representation or
warranty is stated to relate solely to an earlier date, and the Agent or the
Required Lenders shall have determined not to make any Credit Extension as a result of the fact that such
representation or warranty is untrue or incorrect.

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     1.7 Section 6.1(a) is restated as follows:

     (a) on or before the earlier of (i) April 18, 2006 or (ii) the date the Company is
required to file its report on Form 10-K with the Securities and Exchange Commission for the
2005 Fiscal Year, an unqualified audit report certified by independent certified public
accountants acceptable to the Lenders, prepared in accordance with GAAP on a consolidated
basis, including balance sheets as of the end of the 2005 Fiscal Year, related profit and
loss and reconciliation of surplus statements, and a statement of cash flows, accompanied by
(i) any management letter prepared by said accountants, and (ii) a certificate of said
accountants that, in the course of their examination necessary for their certification of
the foregoing, they have obtained no knowledge of any Default or Unmatured Default, or if,
in the opinion of such accountants, any Default or Unmatured Default shall exist, stating
the nature and status thereof;

     1.8 Section 6.1(p) is restated as follows:

     (p) within ninety five days after the close of each Fiscal Year of the Company and its
Subsidiaries (or, for the 2005 Fiscal Year, on or before the earlier of (i) April 18, 2006
or (ii) the date the Company is required to file its report on Form 10-K with the Securities
and Exchange Commission for the 2005 Fiscal Year) and within fifty days after the close of
the first three Fiscal Quarters of each Fiscal Year of the Company and its Subsidiaries,
consolidating financial statements of the Company and its Subsidiaries and of its
Unrestricted Subsidiaries consistent with the consolidating financial statements that have
been included in the Company’s 10-Q and 10-K reports filed with the Securities and Exchange
Commission together with such additional detail in connection therewith requested by the
Agent, all certified by its chief financial officer and prepared in accordance with GAAP
(except for exclusion of footnotes and subject to normal year-end audit adjustment in the
case of such quarterly reports);

     1.9 Section 6.19 is restated as follows:

     6.19. Sale of Assets. The Company will not, nor will it permit any Subsidiary to,
sell, lease, license, transfer, assign or otherwise dispose of any of its Property, whether in one
or a series of transactions, other than inventory sold in the ordinary course of business upon
customary credit terms, sales of scrap or obsolete material or equipment which are not material in
the aggregate; provided, however, that, this Section 6.19 will not prohibit any of
the following so long as none of the following would require a prepayment under the Subordinated
Debt, the Third Secured Term Loan Debt, the Fourth Secured Term Loan Debt or the Second Secured
Debt and no Default or Unmatured Default exists or would be caused thereby, (a) transfers of
assets, including without limitation Capital Stock, between Guarantors or between the Company and
Guarantors or between Subsidiaries which are not Guarantors or from a Subsidiary which is not a
Guarantor to a Guarantor or the Company, it being understood that for purposes of this clause (a) a
Guarantor shall include any Subsidiary which becomes a Guarantor immediately after such transfer,
(b) any Investment permitted by Section 6.20, (c) the disposition of Cash Equivalent Investments in
the ordinary course of business, or (d) other sales agreed to by the Required Lenders in their
Permitted Discretion if the proceeds thereof are deposited in the 2006 Blocked Account; provided,
however, in the case of any of the foregoing permitted sales, leases, licenses, transfers,
assignments or other dispositions (an “Asset Sale”) the Company shall not, and shall not permit any
of its Subsidiaries to, consummate an Asset Sale unless (A) except for transfers under clause (a),
(b) or (c) above, the Company (or the Subsidiary, as the case may be) receives consideration at the
time of such

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Asset Sale at least equal to the fair market value (and if such sale is of a material
amount of assets, such fair market value shall be evidenced by a resolution of the Board of
Directors set forth in an officer’s certificate delivered to the Agent) of the assets and (B)
except for transfers under clause (a), (b) or (c) above, at least 80% of the consideration therefor
received by the Company or such Subsidiary is in the form of cash or Cash Equivalent Investments;
provided that the amount of (x) any liabilities (as shown on the Company’s or such Subsidiary’s
most recent balance sheet) of the Company or any Subsidiary that are assumed by the transferee of
any such assets such that the Company or such Subsidiary have no further liability and (y) any
securities, notes or other obligations received by the Company or any such Subsidiary from such
transferee that are converted by the Company or such Subsidiary into cash (to the extent of the
cash received) shall be deemed to be cash for purposes of this provision and the definition of Net
Cash Proceeds, and the Agent promptly shall obtain a first priority security interest in any non
cash consideration for any Asset Sale by the Company or any Guarantor.

          1.10 Section 6.20 is restated as follows:

          6.20. Investments and Acquisitions. The Company will not, nor will it permit any
Subsidiary to, (a) make or suffer to exist any Investments (including without limitation, loans and
advances to, and other Investments in, Subsidiaries), or commitments therefor, (b) create any
Subsidiary or (c) become or remain a partner in any partnership or joint venture, or (d) make any
Acquisition, except:

     (i) Cash Equivalent Investments, subject to control agreements in favor of the Agent
for the benefit of the Lenders or otherwise subject to a perfected security interest in
favor of the Agent for the benefit of the Lenders;

     (ii) extensions of trade credit made in the ordinary course of business on customary
credit terms;

     (iii) investments, loans and advances in and to any Domestic Guarantor or the Company
or otherwise pursuant to a transaction permitted by Section 6.19(b);

     (iv) extensions of credit made after the Closing Date to employees and officers of the
Company and its Subsidiaries permitted by law, in the ordinary course of business and not in
excess of $1,500,000 in cash in aggregate amount outstanding at any one time for all
employees and officers plus non-cash amounts advanced to officers and employees solely for
the purpose of purchasing Capital Stock of the Company and which do not result in the
transfer of any cash or any other assets of the Company or any of its Subsidiaries to any
such employees and officers, other than common stock of the Company in exchange for a note
payable by such officer or employee to the Company;

     (v) those Investments described in Schedule 6.20 hereto, having the same terms
as existing on the date of this Agreement, provided that, if no Default or Unmatured Default
has occurred and is continuing or would be caused thereby, such Investments may be extended,
renewed or recharacterized from time to time and interest on intercompany loans owing by the
Company or a Subsidiary may be forgiven or deferred, but no increase in the amount of any
such Investment shall be permitted;

     (vi) stock, obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Subsidiary or in
satisfaction of judgments;

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     (vii) loans and advances between Foreign Subsidiaries which are not Guarantors in the
ordinary course of business;

     (viii) investments in joint ventures not to exceed $250,000 in aggregate outstanding
amount; and

     (ix) loans for working capital purposes to any Subsidiary which is not a Domestic
Guarantor or any person becoming a Subsidiary as a result thereof which is not a Domestic
Guarantor if immediately before and after (on a pro forma basis acceptable to the Agent and
supported by such certificates and opinions as requested by the Agent) such loan: (A) such
loans shall be evidenced by agreements and documents satisfactory to the Agent and pledged
as Collateral pursuant the Collateral Documents, and all other terms and conditions thereof
shall be reasonably satisfactory to the Agent, (B) no Unmatured Default or Default shall
exist or shall have occurred and be continuing, (C) the representations and warranties
contained in the Loan Documents shall be true and correct in all material respects on and as
of the date such loan is made as if made on the date thereof and giving effect thereto, and
(D) the aggregate amount of all loans to any Subsidiary which is not a Domestic Guarantor
shall not exceed $3,000,000.

          1.11 Reference in Section 6.21(l) to “$2,000,000” is replaced with “$1,000,000”.

          1.12 Section 6.28 is restated as follows:

          6.28 Capital Expenditures. The Company will not, as calculated for the Company and
its Subsidiaries on a consolidated basis, expend, or be committed to expend, for Capital
Expenditures for the period from and including January 2, 2006 through the Termination Date in an
aggregate amount in excess of $5,000,000.

          1.13 Section 6.31 is restated as follows:

          6.31. Minimum EBITDA. The Company will not permit the EBITDA, determined as of the
end of each of its Fiscal Quarters for the then most-recently ended four Fiscal Quarters, to be
less than (i) $5,900,000 for the Fiscal Quarter ending April 2, 2006, (ii) $13,400,000 for the two
consecutive Fiscal Quarters ending July 2, 2006, (iii) $22,000,000 for the three consecutive Fiscal
Quarters ending October 1, 2006 or (iv) $31,000,000 for the four consecutive Fiscal Quarters ending
December 31, 2006.

          1.14 Section 6.32 is restated as follows:

          6.32. Lenders as Depository Banks; Dominion of Funds. Each Loan Party shall maintain
one or more of the Lenders as such Loan Party’s principal depository bank(s), including for the
maintenance of operating, administrative, cash management, collection activity, and other deposit
accounts for the conduct of its business. Promptly upon the request of the Agent at any time, the
Company shall, and shall cause each Loan Party to, enter into a dominion of funds arrangement with
the Agent and/or certain Lenders and shall execute and deliver any and all further documents
necessary or desirable to implement such dominion of funds arrangement, including without
limitation any lock box agreements and/or blocked account agreements. Upon the election of the Agent in its Permitted
Discretion, all funds received in any depositary accounts shall be applied daily to the outstanding
Loans and used as cash collateral for any outstanding Facility LCs’ if all Loans have been paid in
full.

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          1.15 Section 6.33 is restated as follows:

          6.33 Blocked Accounts. Each of the Loan Parties represents, acknowledges and agrees
that, notwithstanding any term or provision of this Agreement or any other Loan Document, (a) an
amount equal to all MSX UK Sale Net Cash Proceeds, MSX CTS Sale Net Cash Proceeds and GTECH Sale
Net Cash Proceeds have been, and the Net Cash Proceeds of all asset sales after the Effective Date
will be, deposited into the 2006 Blocked Account and be subject to the 2006 Blocked Account Control
Agreement, (b) MSX Engineering has full power to transfer all rights in and to all amounts that
have been or will be deposited into the 2006 Blocked Account, including without limitation an
amount equal to all MSX UK Sale Net Cash Proceeds, MSX CTS Sale Net Cash Proceeds and GTECH Sale
Net Cash Proceeds, (c) under each of the 2006 Blocked Account Control Agreement, the Borrowing Base
Blocked Account Agreement and the LC Blocked Account Agreement, the Agent has sole control over,
and a first priority, perfected lien and security interest in (for the benefit of itself and the LC
Issuer and the Lenders and securing all Secured Obligations) the 2006 Blocked Account, the
Borrowing Base Blocked Account and the LC Blocked Account, respectively, and all amounts deposited
therein at any time, and (d) each Loan Party hereby ratifies and confirms the 2006 Blocked Account
Control Agreement, the Borrowing Base Blocked Account Agreement and the LC Blocked Account
Agreement, and MSX Engineering and any other Loan Party depositing any funds in any of the 2006
Blocked Account Control Agreement, the Borrowing Base Blocked Account Agreement and the LC Blocked
Account Agreement agrees to execute and deliver all further agreements and documents in connection
therewith at any time requested by the Agent. Notwithstanding anything herein or in any other
agreement to the contrary, the Agent shall have sole control over the 2006 Blocked Account, the
Borrowing Base Blocked Account and the LC Blocked Account and the Agent may apply (whether by
direct payment, by cash collateralizing or by other defeasance as determined by the Agent) any and
all amounts in the 2006 Blocked Account, the Borrowing Base Blocked Account or the LC Blocked
Account all to the Secured Obligations and permanently reduce the Commitments by the amount of such
application at any time (i) upon or during the continuance of a Default (and automatically upon a
Default under clause (f) of Article VII hereof), (ii) if required to prevent any required payment
or default, if any, under the Subordinated Debt, the Fourth Secured Term Loan Debt, the Third
Secured Term Loan Debt or the Second Secured Debt or (iii) upon demand by the Agent or the Required
Lenders. Notwithstanding anything herein or in any other agreement to the contrary, the Company
shall have the right, upon two Business Days prior written notice the Agent or such other shorter
period of time agreed to by the Agent, to have (1) cash in the 2006 Blocked Account applied to
prepay Loans, provided that any such prepayment from the 2006 Blocked Account shall permanently
reduce the Commitments by the amount of such prepayment and no Default or Unmatured Default exists
at the time of such request by the Company or the prepayment and (2) cash in the Borrowing Base
Blocked Account withdrawn and returned to the Company provided that (x) if any Loans exist, then
such cash shall be applied first to prepay all Loans, (y) prior to such withdrawal, the Company
provides a new Borrowing Base Certificate giving effect to such withdrawal, and (z) no Default or
Unmatured Default exists at the time of such request by the Company or the withdrawal.

          1.16 Section (t) of Article VII is restated as follows:

     (t) The occurrence of any of the following with respect to any payments or transfers of
any kind to be made on or after the date hereof in connection with any Acquisition closed
prior to the date hereof, including without limitation all deferred payments, all earn out
payments, all payments pursuant to any judgments or the settlements or other compromises of any
litigation or other claims relating to any Acquisitions and other contingent payments and
all other payments pursuant to any such Acquisition, excluding any payments that consist
solely of interest which is

-10-

 

accrued and not paid and excluding customary indemnitees and tax
payments (all of the foregoing collectively defined as “Earn Out Payments”):

          (i) the amount of Earn Out Payments exceeds $20,000,000 in the aggregate, or

          (ii) immediately before or after (on a pro forma basis acceptable to the Agent) a
Default or Unmatured Default exists or would be caused thereby; or

          (iii) the Company shall fail to give the Agent written notice of the intent to pay any
Earn Out Payment not listed in the table in Section 2.7 of the Fifth Amendment.

          1.17 On the date hereof the Company is prepaying Loans in an aggregate amount equal to
$8,307,000 from the cash deposited in the 2006 Blocked Account Agreement in an amount equal to the
MSX UK Sale Net Cash Proceeds and a portion of the MSX CTS Sale Net Cash Sale Proceeds, and in
connection with such prepayment and simultaneous therewith the Company is permanently reducing and
terminating the Aggregate Commitment by the amount of such prepayment and by an additional amount
such that the Aggregate Commitment shall equal $25,000,000 on the date hereof. The Agent and the
Lenders consent and agree to such reduction of the Aggregate Commitment on the date hereof
notwithstanding in terms of the Credit Agreement.

          1.18 Each of the Commitment Schedule and Schedule 6.20 to the Credit Agreement is replaced
with the Commitment Schedule and Schedule 6.20, respectively, attached hereto.

          1.19 Each of the Foreign Borrowing Subsidiaries agrees that all credit facilities (whether as
an overdraft facility, line of credit or other credit facility) any of them may have with any
Lender or any of their Affiliates are hereby terminated and any liabilities thereunder shall be
paid in full on or about the date hereof.

          ARTICLE II. REPRESENTATIONS. Each Loan Party represents and warrants to the Agent,
the LC Issuer and the Lenders that:

          2.1 The execution, delivery and performance of this Amendment are within its powers, have been
duly authorized and is not in contravention of any statute, law or regulation or of any terms of
its Articles of Incorporation, By-laws or other organizational documents, or of any material
agreement or undertaking to which it is a party or by which it is bound.

          2.2 This Amendment is the legal, valid and binding obligation of each Loan Party, enforceable
against each in accordance with the terms hereof, subject to the effect of bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting the rights of creditors generally and
by general principles of equity.

          2.3 After giving effect to the amendments contained herein, the representations and warranties
of the Loan Parties contained in the Credit Agreement and the other Loan Documents are true on and
as of the date hereof with the same force and effect as if made on and as of the date hereof.

          2.4 After giving effect to the amendments and waivers contained herein, no Default or
Unmatured Default exists or has occurred and is continuing on the date hereof.

-11-

 

          2.5 The Loan Parties are in compliance in all material respects with all terms and provisions
of the Subordinated Debt Documents, the Fourth Secured Term Loan Debt Documents, the Third Secured
Term Loan Debt Documents and the Second Secured Debt Documents, including without limitation the
prepayment provisions thereof. Without limiting the foregoing, the prepayment of the Loans and
reductions of the Aggregate Commitment as described in Section 1.17 of this Amendment are in
compliance with the Subordinated Debt Documents, the Fourth Secured Term Loan Debt Documents, the
Third Secured Term Loan Debt Documents and the Second Secured Debt Documents, and as a result of
such prepayment and reductions of the Aggregate Commitment (a) the amount of cash used to make such
prepayments reduces the amount of asset sales proceeds required to prepay the Subordinated Debt
Documents, the Fourth Secured Term Loan Debt Documents, the Third Secured Term Loan Debt Documents
and the Second Secured Debt Documents and (b) no prepayment will be required under the Subordinated
Debt Documents, the Fourth Secured Term Loan Debt Documents, the Third Secured Term Loan Debt
Documents or the Second Secured Debt Documents until after the Termination Date as a result of any
asset sales before or after the date of the Amendment. Additionally, the cash collateralizing of
the Facility LCs by the cash to be deposited in the LC Blocked Account is in compliance with the
Subordinated Debt Documents, the Fourth Secured Term Loan Debt Documents, the Third Secured Term
Loan Debt Documents and the Second Secured Debt Documents. The terms and provisions of the Credit
Agreement, as amended hereby, and the other Loan Documents, and the transactions contemplated
thereby, are in compliance in all material respects with all terms and provisions of the
Subordinated Debt Documents, the Fourth Secured Term Loan Debt Documents, the Third Secured Term
Loan Debt Documents and the Second Secured Debt Documents.

          2.6 As of the Fifth Amendment Effective Date, (a) the outstanding principal balance of the
Subordinated Notes is $130,000,000, and all agreements, instruments and documents executed or
delivered pursuant to the original issuance of the Subordinated Notes are described on Schedule
5.31 the Credit Agreement; (b) the outstanding principal balance of the Fourth Secured Term Loan
Debt equals $22,118,417, the Fourth Secured Term Loan Debt consists of $19,021,839 in principal
owing by the Company and $3,096,579 owing by the U.K. Borrower, and all agreements, instruments and
documents executed or delivered pursuant to or in connection with the Fourth Secured Term Loan Debt
are described on Schedule 5.32 the Credit Agreement, except for any agreements executed solely to
permit the release of any Liens on the assets sold in connection with the MSX UK Sale, the MSX CTS
Sale and the GTECH Sale; (c) the outstanding principal balance of the Third Secured Term Loan Debt
equals $25,000,000, the Third Secured Term Loan Debt consists of $21,500,000 in principal owing by
the Company and $3,500,000 owing by the U.K. Borrower, the non-default interest rate applicable to
the Third Secured Term Loan Debt will not exceed 11.5% per annum and all agreements, instruments
and documents executed or delivered pursuant to or in connection with the Third Secured Term Loan
Debt are described on Schedule 5.33 the Credit Agreement, except for any agreements executed solely
to permit the release of any Liens on the assets sold in connection with the MSX UK Sale, the MSX
CTS Sale and the GTECH Sale; and (d) the outstanding principal balance of the Second Secured Notes
is $75,500,000, the Second Secured Notes consist of $64,930,000 in principal owing by the Company
and $10,570,000 owing by the U.K. Borrower, and all agreements, instruments and documents executed
or delivered pursuant to the original issuance of the Second Secured Notes are described on
Schedule 5.34 the Credit Agreement, except for any agreements executed solely to permit the release
of any Liens on the assets sold in connection with the MSX UK Sale, the MSX CTS Sale and the GTECH
Sale.

          2.7 The amount of Earn Out Payments paid during the period from and including the Closing Date
through and including the Fifth Amendment Effective Date is $ $7,735,000. All Earn Out
Payments known to the Company and payable after the Fifth Amendment Effective Date and on or before
the Termination Date are described below:

-12-

 

	 	 	 
	Amount of Earn Out Payment	 	Date Due
	$604,167.00
	 	May, 2006
	$604,167.00
	 	August, 2006
	$604,167.00
	 	November, 2006

In addition to the above, there are accruals totaling $3,800,000 on the balance
sheet of the Company related to a contingent earnout obligation which is the
subject of continuing legal proceedings. At this time, the Company cannot
ascertain when or if this amount will be required to be paid, but will give the
Agent and the Lenders at least two Business Days prior written notice before
making any payment with respect to such contingent earnout obligation.

          ARTICLE III. CONDITIONS OF EFFECTIVENESS.

          This Amendment shall be effective as of the date hereof when each of the following conditions
is satisfied:

          3.1 The Loan Parties and the Lenders shall have signed this Amendment.

          3.2 The Company shall have delivered an opinion of counsel acceptable to the Agent with
respect to certain matters set forth in Section 2.5 of this Amendment required by the Agent.

          3.3 The Company and the Domestic Guarantors shall have delivered the Borrowing Base Blocked
Account Agreement and LC Blocked Account, and shall make a prepayment and defeasance of the Loans
and the Facility LCs contemplated by Section 1.17 of this Amendment on the date of this Amendment.

          3.4 The Company shall have executed a fee letter in form and substance satisfactory to the
Agent and the Lenders.

          3.5 The Company and Domestic Guarantors shall have delivered or caused to be delivered such
incumbency certificates, resolutions and other documents required by the Agent.

          ARTICLE IV. MISCELLANEOUS.

          4.1 References in the Credit Agreement or in any other Loan Document to the Credit Agreement
shall be deemed to be references to the Credit Agreement as amended hereby and as further amended
from time to time. Without limiting the definition of Loan Documents, this Amendment and all other
agreements and documents executed in connection herewith constitute Loan Documents.

          4.2 Except as expressly amended hereby, each Loan Party agrees that the Credit Agreement and
all other Loan Documents are ratified and confirmed and shall remain in full force and effect and
that it is not aware of any set off, counterclaim, defense or other claim or dispute with respect
to any of the foregoing, and acknowledges and agrees that the Agent and the Lenders have fully
performed all of their obligations under the Credit Agreement and all other Loan Documents.
Notwithstanding this representation and as further consideration for the agreements and
understandings herein, each of the Loan Parties, on behalf of itself and its employees, agents, executors, heirs, successors and assigns
(the “Releasing Parties”), hereby releases the Agent and the Lenders, their respective
predecessors, officers, directors, employees, agents, advisors, attorneys, affiliates,
subsidiaries, successors and assigns, from any liability, claim, right or cause of action which now
exists or hereafter arises as a result of acts, omissions or events occurring on or

-13-

 

prior to the date hereof, whether known or unknown, including but not limited to claims arising from or in any
way related to this Amendment, the Credit Agreement, the other Loan Documents, all transactions
relating to this Amendment, the Credit Agreement or any of the other Loan Documents or the business
relationship among, or any other transactions or dealings among, the Releasing Parties or any of
them and the Released Parties or any of them.

          4.3 This Amendment may be executed in any number of counterparts with the same effect as if
the signatures thereto and hereto were upon the same instrument. Facsimile copies of signatures
shall be treated as original signatures for all purposes under this Amendment.

-14-

 

     IN WITNESS WHEREOF, the Loan Parties, the Lenders, the LC Issuer and the Agent have executed
this Amendment as of the date first above written.

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as Agent,	 	 
	 	 	LC Issuer and a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David J. Waugh	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	David J. Waugh	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	WEBSTER BUSINESS CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Arthur V. Lippens	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Arthur V. Lippens	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	UBS AG, STAMFORD BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Marie A. Haddad	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Marie A. Haddad	 	 
	 

	 	Title:
	 	Associate Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Barbara Ezell-McMichael	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Barbara Ezell-McMichael	 	 
	 

	 	Title:
	 	Associate Director	 	 

-15-

 

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 	 	MSX INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Executive Vice President & CFO	 	 
	 
	 	 	 	 	 	 
	 	 	FOREIGN SUBSIDIARY BORROWERS:	 	 
	 	 	MSX INTERNATIONAL NETHERLANDS B.V.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL AUSTRALIA PTY LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	OTHER LOAN PARTIES:	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL HOLDINGS LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL SERVICES (HOLDINGS), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 

-16-

 

	 	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL ENGINEERING SERVICES, INC. (successor by merger to MSX International
Business Services, Inc. and MSX International Technology Services, Inc.)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MEGATECH ENGINEERING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CHELSEA COMPUTER CONSULTANTS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MANAGEMENT RESOURCES INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	INTERNATIONAL COMPUTER CONSULTANTS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL STRATEGIC TECHNOLOGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 

-17-

 

	 	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL DEALERNET SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL NETHERLANDS (HOLDINGS), C.V.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Representative of the Partners	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL EUROPEAN (HOLDINGS), L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	PILOT COMPUTER SERVICES, INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MILLENNIUM COMPUTER SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL PLATFORM SERVICES, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Operating Manager	 	 
	 
	 	 	 	 	 	 
	 	 	MSX INTERNATIONAL (HOLDINGS), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 

-18-

 

	 	 	 	 	 	 	 
	 	 	PROGRAMMING MANAGEMENT & SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frederick K. Minturn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Frederick K. Minturn	 	 
	 

	 	Title:
	 	Vice President	 	 

-19-

 

COMMITMENT SCHEDULE

	 	 	 	 	 
	Lender	 	Commitment	 
	JPMorgan Chase Bank, N.A
	 	$	12,225,000	 
	UBS AG, Stamford Branch
	 	$	7,220,000	 
	Webster Business Credit Corporation
	 	$	5,555,000	 
	 
	 	 	 
	Total:
	 	$	25,000,000	 
	 
	 	 	 

-20-

 

March 15, 2006

SCHEDULE 6.20

	 	I.	 	EXISTING INVESTMENTS, LOANS AND ADVANCES IN AND TO ANY SUBSIDIARY WHICH IS NOT A
DOMESTIC GUARANTOR SUBSIDIARY
	 
	 	 	 	Balances outstanding as of March 15, 2006, unless otherwise noted:

	 	 	 	 	 
	MSX International Canada Limited (Canada)
	 	$	482,316	 
	MSX International Dealer Net Services, B.V. (Netherlands)
	 	 	739,916	 
	MSX International Netherlands Holdings CV (a)
	 	 	34,302,690	 
	 
	 	 	 
	 
	 	$	35,524,922	 

	(a)	 	MSX International Netherlands CV represents a holding company for substantially all
non-Domestic subsidiaries with the exception of those listed above.

	 	II.	 	EXISTING INVESTMENTS, LOANS, AND ADVANCES

	 	1.	 	Investment in joint ventures and other investments:

	 	i.	 	In September 2001, the Company completed a
strategic investment in itiliti Inc., concurrent with entering into a
license agreement. itiliti provides a standardized, web-enabled human
capital management solution in a hosted environment. The investment
totaled about $1.6 million.
	 
	 	ii.	 	The Company has a modest cash investment totaling
$150,000 in Home Network Online LLC.

	 	2.	 	Non-material amounts held on a short-term basis for operating purposes
in countries whose currencies are not otherwise defined as Eligible Currency under
the Credit Agreement.

-21-exv10w3

 

EXHIBIT 10.3

FORM OF AMENDED AND RESTATED

STOCKHOLDERS AGREEMENT

OF

COMPLETE PRODUCTION SERVICES, INC.

A Delaware Corporation

     This Amended and Restated STOCKHOLDERS AGREEMENT, dated as of [___], 2006 amends and
restates in its entirety the Amended and Restated Stockholders Agreement (the “Previous
Agreement”), dated as of September 12, 2005, by and among Complete Production Services, Inc.
(the “Company”) and the other parties thereto (including parties who had become parties
thereto by execution of an adoption agreement) as contemplated by Section 5.8 of the Previous
Agreement and as amended by the First Amendment to the Previous Agreement, dated as of [___
___], 2006.

AGREEMENTS

ARTICLE 1.

DEFINITIONS AND CONSTRUCTION

     1.1 Definitions. In addition to the terms defined elsewhere herein, when used herein the following
terms shall have the meanings indicated:

     “Affiliate” means, with respect to a particular Person, any Person Controlling,
Controlled by, or Under Common Control with such Person.

     “Agreement” means this Amended and Restated Stockholders Agreement, as further amended
and restated from time to time.

     “Board” means the board of directors of the Company.

     “Business Day” means any day other than a Saturday, a Sunday, or a holiday on which
banks are authorized or required by Law to close in the city of Houston, Texas.

     “Common Stock” means the common stock, $.01 par value, of the Company.

     “Common Stock Equivalents” means (without duplication with any other Common Stock or
Common Stock Equivalents) rights, warrants, options, convertible securities, or exchangeable
securities or indebtedness, or other rights, exercisable for or convertible or exchangeable into,
directly or indirectly, Common Stock or securities convertible or exchangeable into Common Stock,
whether at the time of issuance or upon the passage of time or the occurrence of some future event.

     “Company” means Complete Production Services, Inc., a Delaware corporation.

     “Contractual Management Rights” has the meaning set forth in Section 3.1(b).

     “Control” (including the correlative terms “Controlling”, “Controlled by” and “Under
Common Control with”) means possession, directly or indirectly, of the power to direct or cause

 

 

the direction of management or policies (whether through ownership of securities or any partnership or
other ownership interest, by contract or otherwise) of a Person.

     “Demand Holder” means any SCF Demand Holder or Non-SCF Demand Holder.

     “Demand Registration” has the meaning set forth in Section 2.1(a)(i) below.

     “Demand Request” has the meaning set forth in Section 2.1(a)(i) below.

     “Disposing Holders” has the meaning set forth in Section 2.9.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated by the Securities and Exchange Commission thereunder.

     “Fully-Diluted Common Stock” means, at any time, the then outstanding Common Stock of
the Company plus (without duplication) all shares of Common Stock issuable, whether at such time or
upon the passage of time or the occurrence of future events, upon the exercise, conversion or
exchange of all then outstanding Common Stock Equivalents.

     “Holder” means a Stockholder (as defined herein, but excluding any Person who executes
this Agreement or a separate agreement to be bound by the terms hereof solely in his or her
capacity as a spouse of a Stockholder) who holds Registrable Securities; provided, however that a
Person shall cease to be a Holder if and when such Person owns Common Stock and Common Stock
Equivalents representing less than four percent of the outstanding Common Stock and such Person may
dispose of all Registrable Securities then owned by such Person pursuant to Rule 144(k) (or any
successor rule) under the Securities Act, and in such case the Registrable Securities owned by such
Person shall cease to be Registrable Securities; provided further, however that a Person shall
cease to be a Holder after the second anniversary hereof if the Company requests in writing that
such Person confirm in writing that such Person remains a Holder and such Person fails to so
confirm within 30 days of such notice.

     “Indemnified Party” has the meaning set forth in Section 2.6(c) below.

     “Indemnifying Party” has the meaning set forth in Section 2.6(c) below.

     “Inspectors” has the meaning set forth in Section 2.4(j) below.

     “Law” means any applicable constitutional provision, statute, act, code, law,
regulation, rule, ordinance, order, decree, ruling, proclamation, resolution, judgment, decision,
declaration, or interpretative or advisory opinion or letter of a governmental authority.

     “Material Adverse Effect” has the meaning set forth in Section 2.1(d) below.

     “Non-SCF Demand Holders” means the Non-SCF Holders and each transferee of Non-SCF
Registrable Securities directly or indirectly (in a chain of title) from the Non-SCF Holder if such
transferee to whom the right to request, or participate in the request of, a Demand
Registration under Section 2.1(a) has been expressly assigned in writing directly or
indirectly (in a chain of title) from the Non-SCF Holder as permitted by Section 2.8 hereof.

2

 

     “Non-SCF Holder” means any Stockholder other than SCF or any of its Affiliates.

     “Non-SCF Registrable Securities” means the Common Stock issued to or acquired by any
Non-SCF Holders, and any Common Stock into which Common Stock Equivalents held by a Non-SCF Holder
have been or may be converted, exchanged or acquired and any other securities issued or issuable
with respect to such securities by way of a stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or reorganization; provided, that
any Non-SCF Registrable Security will cease to be a Non-SCF Registrable Security when (a) a
registration statement covering such Non-SCF Registrable Security has been declared effective by
the SEC and it has been disposed of pursuant to such effective registration statement, (b) it is
sold under circumstances in which all of the applicable conditions of Rule 144 (or any similar
provisions then in force) under the Securities Act are met, (c) (i) it has been otherwise
transferred, (ii) the Company has delivered a new certificate or other evidence of ownership for it
not bearing any legend similar to that required pursuant to Section 5.6 of the Previous Agreement
and (iii) it may be resold without subsequent registration under the Securities Act and without any
restrictions set forth under Rule 144 (or any successor rule) or (d) the Non-SCF Holder thereof has
ceased to be a Holder in accordance with the provisos to the definition of Holder provided for
herein.

     “Person” means any natural person, limited liability company, corporation, limited
partnership, general partnership, joint stock company, joint venture, association, company, trust,
bank trust company, land trust, business trust, or other organization, whether or not a legal
entity, and any government or agency or political subdivision thereof.

     “Piggyback Registration” has the meaning set forth in Section 2.2(a).

     “Piggyback Securities” has the meaning set forth in Section 2.2(b).

     “Preferred Request” has the meaning set forth in Section 2.3(c).

     “Qualified Public Offering” means the first closing of an underwritten public offering
of Common Stock registered under the Securities Act, pursuant to which such shares of common stock
are authorized and approved for listing on a national securities exchange or admitted to trading
and quoted in the Nasdaq National Market or comparable system.

     “Records” has the meaning set forth in Section 2.4(j) below.

     “Registrable Securities” means the SCF Registrable Securities and the Non-SCF
Registrable Securities.

     “Registration Expenses” has the meaning set forth in Section 2.5 below.

     “Requesting Holders” means a Holder who makes a Demand Request pursuant to Section 2.1
below, except as provided in Section 2.1(e) below.

     “Required Filing Date” has the meaning set forth in Section 2.1(a)(ii).

     “SCF” means SCF-IV, L.P., a Delaware limited partnership.

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     “SCF Demand Holders” means SCF and each transferee of SCF Registrable Securities
directly or indirectly (in a chain of title) from SCF if such transferee to whom the right to
request a Demand Registration under Section 2.1(a) has been expressly assigned in writing directly
or indirectly (in a chain of title) from SCF as permitted by Section 2.8 hereof.

     “SCF Directors” has the meaning set forth in Section 3.1(a).

     “SCF Registrable Securities” means the Common Stock issued to or acquired by SCF,
including any Common Stock acquired by SCF from any Non-SCF Holder in accordance with the terms of
the Agreement, and any Common Stock into which Common Stock Equivalents held by SCF have been
converted, exchanged or acquired and any other securities issued or issuable with respect to such
securities by way of a stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or reorganization; provided, that any SCF Registrable
Security will cease to be an SCF Registrable Security when (a) a registration statement covering
such SCF Registrable Security has been declared effective by the SEC and it has been disposed of
pursuant to such effective registration statement, (b) it is sold under circumstances in which all
of the applicable conditions of Rule 144 (or any similar provisions then in force) under the
Securities Act are met, (c) (i) it has been otherwise transferred, (ii) the Company has delivered a
new certificate or other evidence of ownership for it not bearing any legend similar to that
required pursuant to Section 5.6 of the Previous Agreement and (iii) it may be resold without
subsequent registration under the Securities Act, or (d) SCF has ceased to be a Holder in
accordance with the provisos to the definition of Holder provided for herein.

     “SEC” means the Securities and Exchange Commission or any successor governmental
agency.

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

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a
registration statement under the Securities Act.

     “Spouse” has the meaning set forth in Section 4.8.

     “Stockholder” means each person listed as a “Stockholder” on Exhibit A hereto
and any Person to whom Registrable Securities and registration rights have been transferred
pursuant to Section 2.8 hereof.

     “Subsidiary” means (i) any corporation or other entity a majority of the capital stock
or other equity ownership interests of which having ordinary voting power to elect a majority of
the board of directors or other Persons performing similar functions is at the time owned, directly
or indirectly, with power to vote, by the Company or any direct or indirect Subsidiary of the
Company or (ii) a partnership in which the Company or any direct or indirect Subsidiary is a
general partner.

     “Transfer” (including the correlative terms “Transfers,” “Transferring” or
“Transferred”) means any direct or indirect transfer, assignment, sale, gift, pledge, hypothecation
or other encumbrance, or any other disposition (whether voluntary or involuntary or by operation

4

 

of law), of shares of Common Stock (or any interest (pecuniary or otherwise) therein or right
thereto), including derivative or similar transactions or arrangements whereby a portion or all of
the economic interest in, or risk of loss or opportunity for gain with respect to, Common Stock is
transferred or shifted to another Person; provided, however, that (i) an exchange, merger,
recapitalization, consolidation or reorganization involving the Company in which securities of the
Company or any other Person and/or cash are issued in respect of all shares of Common Stock shall
not be deemed a Transfer if all shares of Common Stock are treated identically in any such
transaction (other than (A) differences resulting from the treatment of fractional shares that
would otherwise result from such transaction, (B) the cancellation for no consideration of shares
of Common Stock held by any Party that has consented to such cancellation and/or (C) differences
resulting from any election made by the Parties so long as all Parties have an equal opportunity to
make such an election) and (ii) the exercise of options in accordance with the terms of an
Incentive Plan shall not be deemed a Transfer.

     “Underwriter” means a securities dealers which purchases any Registrable Securities as
principal and not as part of such dealer’s market-making activities.

     1.2 Construction. All references in this Agreement to Exhibits, Articles, Sections, subsections
and other subdivisions refer to the corresponding Exhibits, Articles, Sections, subsections and
other subdivisions of or to this Agreement unless expressly provided otherwise. Titles appearing
at the beginning of any Articles, Sections, subsections or other subdivisions of this Agreement are
for convenience only, do not constitute any part of this Agreement, and shall be disregarded in
construing the language hereof. The words “this Agreement,” “herein,” “hereby,” “hereunder” and
“hereof” and words of similar import refer to this Agreement as a whole and not to any particular
subdivision unless expressly so limited. The words “this Article,” “this Section” and “this
subsection” and words of similar import refer only to the Article, Section or subsection hereof in
which such words occur. The word “or” is not exclusive, and the word “including” (in its various
forms) means including without limitation. Pronouns in masculine, feminine or neuter genders shall
be construed to state and include any other gender, and words, terms and titles (including terms
defined herein) in the singular form shall be construed to include the plural and vice versa,
unless the context otherwise requires.

ARTICLE 2.

REGISTRATION OF STOCK

     2.1 Demand Registration.

     (a) Request for Registration.

     (i) From and after 180 days following a Qualified Public Offering, any SCF Demand
Holder or the Non-SCF Demand Holders holding in the aggregate at least 50% of the Non-SCF
Registrable Securities then held by the Non-SCF Demand Holders may
make a written request of the Company (a “Demand Request”) to have the Company
effect a registration under the Securities Act (a “Demand Registration”) for the
sale of all or part of their Registrable Securities. Following receipt of such Demand
Request, the Company shall be required to use commercially reasonable efforts to effect such
Demand Registration subject to the terms hereof; provided that the Registrable Securities
proposed

5

 

to be offered by the Requesting Holders in any such Demand Request must have a
reasonably anticipated aggregate offering price of at least $20,000,000 net of underwriting
discounts and commissions; and provided further that (x) the SCF Demand Holders shall be
entitled to make no more than five Demand Requests in the aggregate pursuant to the
foregoing provisions and (y) subject to paragraph (b) below, the Non-SCF Demand Holders
(regardless of whether certain Non-SCF Demand Holders do not participate in such Demand
Request) shall be entitled to make no more than one Demand Request pursuant to the foregoing
provisions; and provided further that, with respect to clauses (x) and (y) above, the
Company shall not be obligated to effect more than one Demand Registration at the request of
any of the Demand Holders in any six-month period. After such time as the Company shall
become eligible to use Form S-3 (or comparable form) for the registration under the
Securities Act of any of its securities, any Demand Request by SCF with a reasonably
anticipated aggregate offering price of at least $100,000,000 may be for a “shelf”
registration pursuant to Rule 415 under the Securities Act; provided that if SCF requests
that any such “shelf” registration statement remain effective for a period in excess of two
years, such “shelf” registration shall count as two Demand Requests for the purposes of this
Section 2.1(a).

     (ii) Each Demand Request shall specify the number of shares of Registrable Securities
proposed to be sold. Subject to Section 2.3(c), the Company shall use its best efforts to
file under the Securities Act a registration statement on an appropriate form to effect the
Demand Registration within 30 days if eligible to use Form S-3, otherwise within 60 days if
not so eligible, after receiving a Demand Request (the “Required Filing Date”) and
shall use commercially reasonable efforts to cause the same to be declared effective by the
SEC as promptly as practicable after such filing.

     (b) Effective Registration and Expenses. A registration will not count as a Demand
Registration until it has become effective (unless the Requesting Holders withdraw their Demand
Request, in which case such demand will count as a Demand Registration unless (i) the Requesting
Holders pay all Registration Expenses in connection with such withdrawn registration, (ii) during
the registration process material adverse information regarding the Company is disclosed that was
not known by such Requesting Holders at the time the request for such Demand Registration was made
or (iii) the Company has not complied in all material respects with its obligations hereunder
required to have been taken prior to such withdrawal); provided that if, after it has become
effective, an offering of Registrable Securities pursuant to a registration is interfered with by
any stop order, injunction or other order or requirement of the SEC or other governmental agency or
court, such registration will be deemed not to have been effected and will not count as a Demand
Registration. Notwithstanding the foregoing, if, in connection with the Demand Request made by the
Non-SCF Demand Holders only, the number of Registrable Securities of such Non-SCF Demand Holders
included in such registration after giving effect to the provisions of paragraph (d) below is less
than 70% of the Non-SCF Registrable Securities requested to be included in such registration
pursuant to such Demand Request, such Non-SCF Demand Holders shall be entitled to make one additional Demand Request,
in which case the dollar limitations set forth in paragraph (a) above shall be waived; provided
that any Non-SCF Demand Holders who elected to opt out of the first Demand Request by the Non-SCF
Demand Holders shall be entitled to participate in any additional Demand Request hereby granted to
the Non-SCF Demand Holders.

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     (c) Selection of Underwriters. The offering of Registrable Securities pursuant to a
Demand Registration requested prior to such time as the Company is eligible to register on a Form
S-3 registration statement (or a successor form) the sale of Common Stock requested by such Demand
Registration shall be in the form of an underwritten offering. If the Requesting Holder so
indicates, the Requesting Holder shall select the book-running managing Underwriter and such
additional Underwriters to be used in connection with the offering; provided that such selections
shall be subject to the consent of the Company, which consent shall not be unreasonably withheld.

     (d) Priority on Demand Registrations. No securities to be sold for the account of any
Person (including the Company) other than a Requesting Holder shall be included in a Demand
Registration if the managing Underwriter(s) shall advise the Requesting Holders that the inclusion
of such securities will materially and adversely affect the price or success of the offering (a
“Material Adverse Effect”); provided, however, that for purposes of the foregoing, (i) with
respect to a Demand Request made by an SCF Demand Holder, all other SCF Holders who desire to
participate in such Demand Registration and, for the first two (2) Demand Requests made by the SCF
Demand Holders only, all Non-SCF Holders who have the right to participate in such Demand
Registration in accordance with paragraph (e) below or pursuant to an exercise of their rights
under Section 2.2, shall be deemed to be Requesting Holders for all purposes other than determining
the number of Demand Requests made by such SCF Holders, and (ii) with respect to a Demand Request
made by the Non-SCF Demand Holders, all of the Non-SCF Demand Holders who desire to participate in
such Demand Registration shall be deemed to be Requesting Holders. Furthermore, in the event the
managing Underwriter(s) shall advise the Requesting Holders that even after exclusion of all
securities of other Persons pursuant to the immediately preceding sentence, the amount of
Registrable Securities proposed to be included in such Demand Registration by Requesting Holders is
sufficiently large to cause a Material Adverse Effect, the Registrable Securities of Requesting
Holders to be included in such Demand Registration shall be allocated pro rata among the Requesting
Holders on the basis of the number of shares of Common Stock requested to be included in such
registration by each such Requesting Holder.

     (e) Multiple Demands. If the Company shall receive, within a period of 15 days, a
request to file a registration statement from more than one Person who has the contractual right
(whether exercisable alone or in conjunction with other rights) to require the Company to file a
registration statement (whether or not such Person is a Demand Holder), only the first such Person
requesting the Company to file a registration statement shall be considered a Requesting Holder for
the purposes of determining the number of Demand Requests that may be made by such Person pursuant
to this Section 2.1, and all other Persons making such requests shall be considered a Requesting
Holder for all purposes other than determining the number of Demand Requests made by such Person
and provided further that if the request to file such a registration statement was first made by
the Non-SCF Holders, then any Non-SCF Holder who exercises his
rights under Section 2.2 hereof shall be deemed a Requesting Holder for all purposes
hereunder. In the event the Company shall receive a request to file a Demand Registration
Statement from any Person (including a Demand Holder) who has the contractual right to cause the
Company to do so, the Company shall promptly (and in any event within five days after its receipt
of such request) notify all Demand Holders (in each case who then own Registrable Securities)
thereof.

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     2.2 Piggy-Back Registration.

     (a) Piggyback Registration Rights. If the Company proposes to file a registration
statement under the Securities Act with respect to an offering of any shares of Common Stock by the
Company for its own account (other than a Qualified Public Offering) or for the account of any
holder of Common Stock (including any Holder) (other than a registration statement on Form S-4 or
S-8 or any substitute form that may be adopted by the SEC or any registration statement filed in
connection with an exchange offer or offering of securities solely to the Company’s existing
security holders), then the Company shall give written notice of such proposed filing to the
Holders of the Registrable Securities as soon as practicable (but, subject to the last sentence in
Section 2.1(e), in no event less than 15 days before the anticipated filing date of such
registration statement), and such notice shall offer such Holders the opportunity to register such
number of Registrable Securities as each such Holder may request (a “Piggyback
Registration”). Subject to Section 2.2(b) hereof, the Company shall include in each such
Piggyback Registration all Registrable Securities requested to be included in the registration for
such offering by written notice to the Company within 15 days of receipt (in accordance with
Section 4.1) of the Company’s notice referred to above; provided, however, that the Company may at
any time withdraw or cease proceeding with any such registration for its own account prior to
effectiveness of such registration whether or not any Holder of Registrable Securities has elected
to include any Registrable Securities in such registration. Each Holder of Registrable Securities
shall be permitted to withdraw all or part of such Holder’s Registrable Securities from a Piggyback
Registration at any time prior to the effective date thereof.

     (b) Priority on Piggyback Registration. The Company shall use commercially reasonable
efforts to cause the managing Underwriter(s) of a proposed underwritten offering to permit the
Registrable Securities requested to be included in the registration statement for such offering
under Section 2.2(a) (“Piggyback Securities”) to be included on the same terms and
conditions as any similar securities included therein. Notwithstanding the foregoing, the Company
shall not be required to include any Holder’s Piggyback Securities in such offering unless such
Holder accepts the terms of the underwriting agreement between the Company and the managing
Underwriter(s) and otherwise complies with the provisions of Section 2.7 below. If the managing
Underwriter(s) of a proposed underwritten offering advise(s) the Company that in their opinion the
total amount of securities, including Piggyback Securities, to be included in such offering is
sufficiently large to cause a Material Adverse Effect, then in such event the securities to be
included in such offering shall be allocated first to the Requesting Holders if such registration
statement is pursuant to a Demand Request or, if not, then to the Company, and then, to the extent
that any additional securities can, in the opinion of such managing Underwriter(s), be sold without
any such Material Adverse Effect, pro rata among the holders of Piggyback Securities on the basis
of the number of Registrable Securities then held by each such holder.

2.3 Holdback Agreements.

     (a) Restrictions on Public Sale by Holder of Registrable Securities. Following any
underwritten public offering of equity securities by the Company or any Holder of Registrable
Securities effected pursuant to this Agreement, each Holder of Registrable Securities agrees not to
effect any public sale or distribution of securities similar to those being registered or of any
securities convertible into or exchangeable or exercisable for such securities or hedging

8

 

transactions
relating to the Registrable Securities, including a sale pursuant to Rule 144 under the Securities Act, during the 14 days prior to the expected date of “pricing” of such offering and
during such period, not to exceed 180 days with respect to a Qualified Public Offering or 90 days
with respect to any subsequent offering, beginning on the date of such final prospectus (or
prospectus supplement if the offering is made pursuant to a “shelf” registration) as shall be
reasonably requested by the managing Underwriter(s) except as part of such registration, and, if
and to the extent requested by the managing Underwriter(s), each such Holder of Registrable
Securities agrees to execute an agreement to the foregoing effect with the Underwriter(s) for such
offering on such terms as the managing Underwriter(s) shall reasonably request.

     (b) Restrictions on Public Sale by the Company. Following any underwritten public
offering of equity securities by any Holder of Registrable Securities effected pursuant to this
Agreement, the Company agrees not to effect any public sale or distribution of any securities
similar to those being registered, or any securities convertible into or exchangeable or
exercisable for such securities, during the 14 days prior to the expected date of “pricing” of such
offering and during such period, not to exceed 180 days with respect to a Qualified Public Offering
or 90 days with respect to any subsequent offering, beginning on the date of such final prospectus
(or prospectus supplement if the offering is made pursuant to a “shelf” registration) as shall be
reasonably requested by the managing Underwriter(s) except as part of such registration as
permitted hereby.

     (c) Deferral of Filing. The Company may defer the filing (but not the preparation) of
a registration statement required by Section 2.1 if (i) at the time the Company receives the Demand
Request, the Company or any of its subsidiaries are engaged in confidential negotiations or other
confidential business activities, disclosure of which would be required in such registration
statement (but would not be required if such registration statement were not filed) and the Board
determines in good faith that such disclosure would be materially detrimental to the Company, until
a date not later than 60 days after the Required Filing Date or (ii) subject to Section 2.1(e), the
Company had received, prior to receiving such Demand Request, a Demand Request from a different
group of Requesting Holders (a “Preferred Request”) and is proceeding with reasonable
diligence to comply with the Preferred Request, until a date not later than the later of (A) six
months after the effective date of such Preferred Request or (B) the end of the holdback period
referred to in Section 2.3(a) above with respect to such Preferred Request or (iii) prior to
receiving such Demand Request, the Board had determined to effect a registered underwritten public
offering of the Company’s equity securities for the Company’s account and the Company had taken
substantial steps (including, but not limited to, selecting or entering into a letter of intent
with the managing Underwriter(s) for such offering) and is proceeding with reasonable diligence to
effect such offering, until a date not later than the end of the holdback period referred to in
Section 2.3(a) above with respect to such offering. A deferral of the filing of a registration
statement pursuant to this Section 2.3(c) shall be lifted, and the requested
registration statement shall be filed as soon as reasonably practicable, if, in the case of a
deferral pursuant to clause (i) of the preceding sentence, the negotiations or other activities are
disclosed or terminated, or, in the case of a deferral pursuant to clause (ii) of the preceding
sentence, the Preferred Request is withdrawn, or in the case of a deferral pursuant to clause (iii)
of the preceding sentence, the proposed registration for the Company’s account is abandoned. In
order to defer the filing of a registration statement pursuant to this Section 2.3(c), the Company
shall promptly, upon determining to seek such deferral, deliver to each Requesting Holder a
certificate

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signed by the Chief Executive Officer of the Company stating that the Company is
deferring such filing pursuant to this Section 2.3(c) and the basis therefor in reasonable detail.
Within 20 days after receiving such certificate, the Holders of a majority of the Registrable
Securities held by the Requesting Holders and for which registration was previously requested may
withdraw such request by giving notice to the Company. If withdrawn, the Demand Request shall be
deemed not to have been made for all purposes of this Agreement. The Company may defer the filing
of a Demand Registration pursuant to this Section 2.3(c) only one time during any 12-month period.
Nothing in this paragraph shall affect the rights of the Holders under Section 2.2 to participate
in any such Demand Registration at such time as the filing deferral is lifted in accordance with
this Section 2.3(c).

     (d) Use, and Suspension of Use, of Shelf Registration Statement. If the Company has
filed a “shelf” registration statement and has included Registrable Securities therein, the Company
shall be entitled to suspend (but not more than an aggregate of 90 days in any 12-month period),
for a reasonable period of time not in excess of 90 days, the offer or sale of Registrable
Securities pursuant to such registration statement by any holder of Registrable Securities if (i) a
“road show” is not then in progress with respect to a proposed offering of Registrable Securities
by such holder pursuant to such registration statement and such holder has not executed an
underwriting agreement with respect to a pending sale of Registrable Securities pursuant to such
registration statement and (ii) the Company or any of its subsidiaries are engaged in confidential
negotiations or other confidential business activities, disclosure of which would be required if
such registration statement were used (but would not be required if such registration statement
were not used) and the Board determines in good faith that such disclosure would be materially
detrimental to the Company. In order to suspend the use of the registration statement pursuant to
this Section 2.3(d), the Company shall promptly, upon determining to seek such suspension, deliver
to the holders of Registrable Securities included in such registration statement, a certificate
signed by the Chief Executive Officer of the Company stating that the Company is suspending use of
such registration statement pursuant to this Section 2.3(d) and the basis therefor in reasonable
detail. IN ADDITION, A HOLDER OF REGISTRABLE SECURITIES MAY NOT UTILIZE A SHELF REGISTRATION
STATEMENT TO EFFECT THE SALE OF ANY SUCH SECURITIES UNLESS SUCH HOLDER HAS GIVEN THE COMPANY AT
LEAST ONE BUSINESS DAY ADVANCE WRITTEN NOTICE OF THE DATE OR DATES OF A PROPOSED SALE OF SUCH
SECURITIES BY SUCH HOLDER PURSUANT TO SUCH REGISTRATION STATEMENT (WHICH NOTICE MAY BE GIVEN AS
OFTEN AS SUCH HOLDER DESIRES).

     2.4 Registration Procedures. Whenever the Holders have requested that any Registrable
Securities be registered pursuant to Section 2.1 hereof, the Company will, at its expense, use
commercially reasonable efforts to effect the registration of such Registrable
Securities under the Securities Act prior to the Required Filing Date, and in connection with
any such request, the Company will as expeditiously as practicable:

     (a) prepare and file with the SEC a registration statement on any form for which the Company
then qualifies or which counsel for the Company shall deem appropriate and which form shall be
available for the sale of the Registrable Securities to be registered thereunder in accordance with
the intended method of distribution thereof, and use commercially reasonable efforts and proceed
diligently and in good faith to cause such filed registration statement to

10

 

become effective under the Securities Act; provided that before filing a registration statement or prospectus or any
amendments or supplements thereto, the Company will furnish to all Selling Holders and to one
counsel reasonably acceptable to the Company selected by the Selling Holders, copies of all such
documents proposed to be filed, which documents will be subject to the review of such counsel;
provided further that in connection with a Demand Registration, the Company shall not file any
registration statement or prospectus, or any amendments or supplements thereto, if the Requesting
Holders who hold a majority of the Registrable Securities covered by such registration statement or
their counsel shall reasonably object on a timely basis;

     (b) prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective pursuant to Section 2.1 for a period (except as provided in the
last paragraph of this Section 2.4) of not less than 270 consecutive days (or four years, or such
shorter period as the Requesting Holders who hold a majority of the Registrable Securities covered
by such registration may elect, if a “shelf registration” is requested) or, if shorter, the period
terminating when all Registrable Securities covered by such registration statement have been sold
(but not before the expiration of the applicable period referred to in Section 4(3) of the
Securities Act and Rule 174 thereunder, if applicable) and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended method of disposition by the Selling
Holders thereof set forth in such registration statement; provided however that any Selling Holder
that has been included on a “shelf” registration statement may request that such Seller Holder’s
Common Stock be removed from such registration statement, in which event the Company shall promptly
either withdraw such registration statement or file a post-effective amendment to such registration
statement removing such Common Stock;

     (c) furnish to each such Selling Holder such number of copies of such registration statement,
each amendment and supplement thereto (in each case including all exhibits thereto), the prospectus
included in such registration statement (including each preliminary prospectus) and such other
documents as such Selling Holder may reasonably request in order to facilitate the disposition of
the Registrable Securities owned by such Selling Holder;

     (d) notify the Selling Holders promptly, and (if requested by any such Person) confirm such
notice in writing, (i) when a prospectus or any prospectus supplement or post-effective amendment
has been filed, and, with respect to a registration statement or any post-effective amendment, when
the same has become effective under the Securities Act and each applicable state Law, (ii) of any
request by the SEC or any other federal or state governmental authority for amendments or
supplements to a registration statement or related prospectus or for additional information, (iii)
of the issuance by the SEC of any stop order suspending the effectiveness of a registration statement or the initiation of any proceedings for that
purpose, (iv) if at any time the representations or warranties of the Company or any Subsidiary
contained in any agreement (including any underwriting agreement) contemplated by Section 2.4(i)
below cease to be true and correct in any material respect, (v) of the receipt by the Company of
any notification with respect to the suspension of the qualification or exemption from
qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose, (vi) of the happening of any event which makes
any statement made in such registration statement or related prospectus or any document
incorporated or

11

 

deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in such registration statement, prospectus or documents so
that, in the case of the registration statement, it will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and that in the case of the prospectus, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading, and (vii) of the Company’s reasonable determination that a
post-effective amendment to a registration statement would be appropriate;

     (e) use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a registration statement, or the lifting of any suspension of the qualification
(or exemption from qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment;

     (f) cooperate with the Selling Holders and the managing Underwriter(s) to facilitate the
timely preparation and delivery of certificates representing Registrable Securities to be sold,
which certificates shall not bear any restrictive legends and shall be in a form eligible for
deposit with The Depositary Trust Company;

     (g) use commercially reasonable efforts to register or qualify such Registrable Securities as
promptly as practicable under such other securities or blue sky laws of such jurisdictions as any
Selling Holder or managing Underwriter reasonably (in light of the intended plan of distribution)
requests and do any and all other acts and things which may be reasonably necessary or advisable to
enable such Selling Holder or managing Underwriter to consummate the disposition in such
jurisdictions of the Registrable Securities owned by such Selling Holder; provided that the Company
will not be required to (i) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph (g), (ii) subject itself to taxation in any
such jurisdiction or (iii) consent to general service of process in any such jurisdiction;

     (h) use commercially reasonable efforts to cause such Registrable Securities to be registered
with or approved by such other governmental agencies or authorities, if any, as may be required of
the Company to enable the Selling Holder or Selling Holders thereof to consummate the disposition
of such Registrable Securities;

     (i) enter into customary agreements (including an underwriting agreement in customary form
with customary indemnification provisions) and take such other actions as are reasonably required
or advisable in order to expedite or facilitate the disposition of such
Registrable Securities, including providing reasonable availability of appropriate members of
senior management of the Company to provide customary due diligence assistance in connection with
any offering and to participate in customary “road show” presentations in connection with any
underwritten offerings in substantially the same manner as they would in an underwritten primary
registered public offering by the Company of its Common Stock, after taking into account the
reasonable business requirements of the Company in determining the scheduling and duration of any
road show;

12

 

     (j) make available for inspection by any Selling Holder of such Registrable Securities, any
Underwriter participating in any disposition pursuant to such registration statement and any
attorney, accountant or other professional retained by any such Selling Holder or Underwriter
(collectively, the “Inspectors”), all financial and other records, pertinent corporate
documents and properties of the Company (collectively, the “Records”) as shall be
reasonably necessary to enable them to exercise their due diligence responsibility, and cause the
Company’s officers, directors and employees to supply all information reasonably requested by any
such Inspectors in connection with such registration statement. Each Selling Holder of such
Registrable Securities agrees that information obtained by it as a result of such inspections shall
be deemed confidential and shall not be used by it as the basis for any market transactions in the
securities of the Company or its Affiliates unless and until such is made generally available to
the public (other than by such Selling Holder). Each Selling Holder of such Registrable Securities
further agrees that it will, as soon as practicable upon learning that disclosure of such Records
is sought in a court of competent jurisdiction, give notice to the Company and allow the Company at
its expense to undertake appropriate action to prevent disclosure of the Records deemed
confidential;

     (k) use commercially reasonable efforts to obtain a comfort letter or comfort letters from the
Company’s independent public accountants in customary form and covering such matters of the type
customarily covered by comfort letters as the managing Underwriter(s) reasonably request(s);

     (l) otherwise use commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering a period of twelve months, beginning within three
months after the effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act;

     (m) use commercially reasonable efforts to cause all such Registrable Securities to be listed
on each securities exchange on which similar securities issued by the Company are then listed or
quoted on any inter-dealer quotation system on which similar securities issued by the Company are
then quoted;

     (n) if any event contemplated by Section 2.4(d)(vi) above shall occur, as promptly as
practicable prepare a supplement or amendment or post-effective amendment to such registration
statement or the related prospectus or any document incorporated therein by reference or promptly
file any other required document so that, as thereafter delivered to the purchasers of the
Registrable Securities, the prospectus will not contain an untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading; and

     (o) cooperate and assist in any filing required to be made with the National Association of
Securities Dealers, Inc. and in the performance of any due diligence investigation by any
Underwriter, including any “qualified independent underwriter,” or any Selling Holder.

     Notwithstanding anything contained herein to the contrary, the Company hereby agrees that (i)
any Demand Registration that is a “shelf” registration pursuant to Rule 415 under the

13

 

Securities Act shall contain all language (including, without limitation, on the prospectus cover sheet, the
principal stockholders’ chart and the plan of distribution) as may be requested by a holder of
Registrable Securities. The Company may require each Selling Holder to promptly furnish in writing
to the Company such information regarding the distribution of the Registrable Securities as it may
from time to time reasonably request and such other information as may be legally required in
connection with such registration. Notwithstanding anything herein to the contrary, the Company
shall have the right to exclude from any offering the Registrable Securities of any Selling Holder
who does not comply with the provisions of the immediately preceding sentence.

     Each Selling Holder agrees that, upon receipt of any notice from the Company of the happening
of any event of the kind described in Section 2.4(d)(vi) hereof, such Selling Holder will forthwith
discontinue disposition of Registrable Securities pursuant to the registration statement covering
such Registrable Securities until such Selling Holder’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 2.4(n) hereof, and, if so directed by the Company,
such Selling Holder will deliver to the Company all copies, other than permanent file copies, then
in such Selling Holder’s possession, of the most recent prospectus covering such Registrable
Securities at the time of receipt of such notice. In the event the Company shall give such notice,
the Company shall extend the period during which such registration statement shall be maintained
effective (including the period referred to in Section 2.4(b) hereof) by the number of days during
the period from and including the date of the giving of notice pursuant to Section 2.4(d)(vi)
hereof to the date when the Company shall make available to the Selling Holders of Registrable
Securities covered by such registration statement a prospectus supplemented or amended to conform
with the requirements of Section 2.4(n) hereof.

     2.5 Registration Expenses. Subject to the provisions in Section 2.1(b) above with respect to
a withdrawn Demand Registration, in connection with any registration statement required to be filed
hereunder, the Company shall pay the following registration expenses (the “Registration
Expenses”):

     (a) all registration and filing fees (including, without limitation, with respect to filings
to be made with the National Association of Securities Dealers, Inc.);

     (b) fees and expenses of compliance with securities or blue sky laws (including reasonable
fees and disbursements of counsel in connection with blue sky qualifications of the Registrable
Securities);

     (c) printing expenses;

     (d) internal expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties);

     (e) the fees and expenses incurred in connection with the listing on an exchange of the
Registrable Securities if the Company shall choose, or be required pursuant to Section 2.4(m), to
list such Registrable Securities;

14

 

     (f) reasonable fees and disbursements of counsel for the Company and customary fees and
expenses for independent certified public accountants retained by the Company (including the
expenses of any comfort letters requested pursuant to Section 2.4(k) hereof);

     (g) the reasonable fees and expenses of any special experts retained by the Company in
connection with such registration;

     (h) reasonable fees and expenses of one counsel reasonably acceptable to the Company selected
by the Selling Holders incurred in connection with the registration of such Registrable Securities
hereunder; and

     (i) fees and expenses of any “qualified independent underwriter” or other independent
appraiser participating in any offering pursuant to Section 2.2 of Schedule E to the By-laws of the
National Association of Securities Dealers, Inc.

     The Company shall not have any obligation to pay any underwriting fees, discounts, or
commissions attributable to the sale of Registrable Securities or, except as provided by clause
(b), (h) or (i) above, any out-of-pocket expenses of the Holders (or the agents who manage their
accounts) or the fees and disbursements of any Underwriter.

2.6 Indemnification; Contribution.

     (a) Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Selling Holder, each Person, if any, who controls such Selling Holder within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, and the officers, directors,
agents, general and limited partners, and employees of each Selling Holder and each such
controlling Person from and against any and all losses, claims, damages, liabilities (joint or
several), and expenses (including reasonable costs of investigation and attorneys’ fees) arising
out of or based upon any untrue statement or alleged untrue statement of a material fact contained
in any registration statement or prospectus relating to the Registrable Securities or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or based upon
any omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such losses, claims,
damages, liabilities or expenses arise out of, or are based upon and in conformity with, any such
untrue statement or omission or allegation thereof based upon information furnished in writing to
the Company by such Selling Holder or on such Selling Holder’s behalf expressly for use therein.
The Company also agrees to indemnify any Underwriter(s) of the Registrable Securities, their
officers and directors and each Person who controls such Underwriter(s) on
substantially the same basis as that of the indemnification of the Selling Holders provided in
this Section 2.6(a).

     (b) Indemnification by Holder of Registrable Securities. Each Selling Holder agrees
to indemnify and hold harmless each other Selling Holder, the Company, and each Person, if any, who
controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act and the officers, directors, agents and employees of each other Selling Holder,
the Company and each such controlling Person to the same extent as the foregoing indemnity from the
Company to such Selling Holder, but only with respect to

15

 

information furnished in writing by such Selling Holder or on such Selling Holder’s behalf expressly for use in any registration statement
or prospectus relating to the Registrable Securities. The liability of any Selling Holder under
this Section 2.6(b) shall be limited to the aggregate cash and property received by such Selling
Holder pursuant to the sale of Registrable Securities covered by such registration statement or
prospectus.

     (c) Conduct of Indemnification Proceedings. If any action or proceeding (including
any governmental investigation) shall be brought or asserted against any Person entitled to
indemnification under Section 2.6(a) or 2.6(b) above (an “Indemnified Party”) in respect of
which indemnity may be sought from any Person who has agreed to provide such indemnification under
Section 2.6(a) or 2.6(b) above (an “Indemnifying Party”), the Indemnified Party shall give
prompt written notice to the Indemnifying Party and the Indemnifying Party shall assume the defense
thereof, including the employment of counsel reasonably satisfactory to such Indemnified Party, and
shall assume the payment of all reasonable expenses of such defense. Such Indemnified Party shall
have the right to employ separate counsel in any such action or proceeding and to participate in
the defense thereof, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the Indemnifying Party has agreed to pay such fees and expenses or
(ii) the Indemnifying Party fails promptly to assume the defense of such action or proceeding or
fails to employ counsel reasonably satisfactory to such Indemnified Party or (iii) the named
parties to any such action or proceeding (including any impleaded parties) include both such
Indemnified Party and Indemnifying Party (or an Affiliate of the Indemnifying Party), and such
Indemnified Party shall have been advised by counsel that there may be one or more legal defenses
available to the Indemnified Party that are different from or additional to those available to the
Indemnifying Party, or there is a conflict of interest on the part of counsel employed by the
Indemnifying Party to represent such Indemnified Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense
of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense of
such action or proceeding on behalf of such Indemnified Party). Notwithstanding the foregoing, the
Indemnifying Party shall not, in connection with any one such action or proceeding or separate but
substantially similar related actions or proceedings in the same jurisdiction arising out of the
same general allegations or circumstances, be liable at any time for the fees and expenses of more
than one separate firm of attorneys (together in each case with appropriate local counsel). The
Indemnifying Party shall not be liable for any settlement of any such action or proceeding effected
without its written consent (which consent will not be unreasonably withheld), but if settled with
its written consent, or if there be a final judgment for the plaintiff in any such action or
proceeding, the Indemnifying Party shall indemnify and hold harmless such Indemnified Party from
and against any loss or liability (to the extent stated above) by reason of
such settlement or judgment. The Indemnifying Party shall not consent to entry of any
judgment or enter into any settlement that does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Party of a release, in form and substance
reasonably satisfactory to the Indemnified Party, from all liability in respect of such action or
proceeding for which such Indemnified Party would be entitled to indemnification hereunder.

     (d) Contribution. If the indemnification provided for in this Section 2.6 is
unavailable to the Indemnified Parties in respect of any losses, claims, damages, liabilities or
judgments referred to herein, then each such Indemnifying Party, in lieu of indemnifying such

16

 

Indemnified Parties, shall contribute to the amount paid or payable by such Indemnified Parties as
a result of such losses, claims, damages, liabilities and judgments as between the Company on the
one hand and each Selling Holder on the other, in such proportion as is appropriate to reflect the
relative fault of the Company and of each Selling Holder in connection with the statements or
omissions which resulted in such losses, claims, damages, liabilities or judgments, as well as any
other relevant equitable considerations. The relative fault of the Company on the one hand and of
each Selling Holder on the other shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by such Person, and such Person’s relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission.

     The Company and the Selling Holders agree that it would not be just and equitable if
contribution pursuant to this Section 2.6(d) were determined by any method of allocation which does
not take into account the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the losses, claims,
damages, liabilities or judgments referred to in the immediately preceding paragraph shall be
deemed to include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating or defending any
such action or claim. Notwithstanding the provisions of this Section 2.6(d), no Selling Holder
shall be required to contribute any amount in excess of the amount by which the total price at
which the Registrable Securities of such Selling Holder were offered to the public (less any
underwriting discounts or commissions) exceeds the amount of any damages which such Selling Holder
has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

     2.7 Participation in Underwritten Registrations. No Holder may participate in any underwritten
registration hereunder unless such Holder (a) agrees to sell such Holder’s Registrable Securities
on the basis provided in any underwriting arrangements approved by the Person entitled hereunder to
approve such arrangements and (b) completes and executes all questionnaires, powers of attorney,
custody agreements, indemnities, underwriting agreements and other documents reasonably required
under the terms of such underwriting arrangements and this Agreement.

     2.8 Transfers of Registration Rights. The provisions hereof will inure to the benefit of and be binding upon the successors and
assigns of each of the parties hereto, except as otherwise provided herein; provided, however, that
the registration rights granted hereby may be transferred only (i) by operation of Law or (ii) to
any Person to whom a Holder transfers Registrable Securities, provided further that any such
transferee shall not be entitled to rights pursuant to Section 2.1, 2.2 or 2.3 hereof unless such
transferee of registration rights hereunder agrees to be bound by the terms and conditions hereof
and executes and delivers to the Company an acknowledgment and agreement to such effect.

     2.9 Information Rights in Private Sale. If any SCF Demand Holders and/or any Non-SCF Demand
Holders who then hold in the aggregate a minimum of 15% of the Fully-

17

 

Diluted Common Stock (such SCF Demand Holders and/or such Non-SCF Demand Holders, for purposes of this Section 2.9, being herein
called the “Disposing Holders”) propose to Transfer in a private transaction Registrable
Securities having a fair market value in excess of $20,000,000, as determined in good faith by such
Disposing Holders, then held by such Disposing Holders, then, the Company shall afford to such
Disposing Holders, such prospective transferees and their respective counsel, accountants, lenders
and other representatives, full access during normal business hours to the properties, books,
contracts, records and management of the Company in order that such parties may have full
opportunity to make such investigations as they shall desire to make of the Company and shall, upon
request, promptly furnish to such parties all other information concerning the Company as such
parties may reasonably request in connection with such prospective Transfer, in each case subject
to such confidentiality restrictions or obligations as the Company may reasonably require;
provided, however, that any such investigation shall be conducted in such a manner as not to
interfere unreasonably with the Company’s business and operations.

ARTICLE 3.

OTHER MATTERS

     3.1 Composition of Board; VCOC Management Rights.

          (a) As long as SCF owns (i) Common Stock representing at least 20% of the outstanding Common
Stock then entitled to vote, the Company agrees to take all action within its power, as shall be
required to cause the Board to at all times to include at least two members designated by SCF (the
“SCF Directors”) and (ii) Common Stock representing at least 5% of the outstanding Common
Stock then entitled to vote, the Company agrees to take all action within its power, as shall be
required to cause the Board to at all times to include at least one SCF Director. Upon the
resignation, death, removal, disqualification or other vacancy of any SCF Director, SCF shall have
the right to designate a new director and the Company shall have the same obligations set forth
under the first sentence of this Section 3.1(a) to cause the election of such designee to the
Board.

          (b) The rights set forth in this Section 3.1 are, in part, intended to satisfy the requirement
of contractual management rights for purposes of qualifying the ownership interests of SCF in the
Company as venture capital investments for purposes of the Department of Labor’s “plan assets”
regulations (“Contractual Management Rights”), and in the event such rights are not
satisfactory for such purpose or are lost by reason of the operation of this Agreement, the
Company and SCF shall reasonably cooperate in good faith to agree upon mutually satisfactory
Contractual Management Rights which satisfy such regulations.

          (c) The Company agrees to take all action within its power as shall be required to cause the
Board at all times to include at least two members not affiliated with SCF or management of the
Company.

          (d) SCF shall have the right to unilaterally terminate its rights under this Section 3.1 by
giving written notice to the Company that it is irrevocably relinquishing its rights under this
Section 3.1.

18

 

ARTICLE 4.

MISCELLANEOUS

     4.1 Notices. Unless otherwise provided herein, any notice, request, consent, instruction or other
document to be given hereunder by any party hereto to another party hereto shall be in writing and
will be deemed given (a) when received if delivered personally or by courier; or (b) on the date
receipt is acknowledged if delivered by certified mail, postage prepaid, return receipt requested;
or (c) on the day of transmission if sent by facsimile transmission and receipt thereof is
confirmed, as follows:

     if to the Company, addressed to:

Complete Production Services, Inc.

11700 Old Katy Road, Suite 300

Houston, Texas 77079

Attention: Joseph C. Winkler

Facsimile: (281) 372-2301

if to a Stockholder, addressed to such Stockholder at the address for notice set forth
opposite such Stockholder’s name on Exhibit A hereto,

or to such other place and with such other copies as any party hereto may designate as to itself by
written notice to the others in accordance with this Section 4.1.

     4.2 Binding Effect. Subject to Section 2.8, this Agreement is binding on and inures to the benefit
of the Stockholders and their respective heirs, legal representatives, successors, and assigns.

     4.3 Governing Law. This agreement is governed by and shall be construed in accordance with the law
of the State of Delaware without regard to the principles of conflicts of law thereof.

     4.4 Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is
held invalid or unenforceable to any extent, the remainder of this Agreement and the application of
that provision to other Persons or circumstances is not affected thereby and that provision shall
be enforced to the greatest extent permitted by Law.

     4.5 Effectiveness. This Agreement shall become effective upon consummation of a Qualified Public
Offering without any further action or approval by the Stockholders as contemplated by Section 5.8
of the Previous Agreement.

     4.6 Section Headings. Headings contained in this Agreement are inserted only as a matter of
convenience and in no way define, limit, or extend the scope or intent of this Agreement or any
provisions hereof.

     4.7 Assignment. Except as otherwise expressly provided herein, the terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective successors and assigns
of the Stockholders and the Company. No such assignment shall relieve

19

 

the assignor from any liability hereunder. Any purported assignment made in violation of this Section 4.7 shall be void
and of no force and effect.

     4.8 Spouses. Each reference herein to the shares owned by a Stockholder includes the community
property interest of such Stockholder’s spouse (if any) (each, a “Spouse”) in such shares.
Each Spouse is fully aware of, understands and fully consents and agrees to the provisions of this
Agreement and its binding effect upon any community property interest such Spouse may now or
hereafter own. Each Spouse agrees that the termination of his or her marital relationship with a
Stockholder for any reason shall not have the effect of removing any shares of the Company
otherwise subject to this Agreement from its coverage. Each Spouse’s awareness, understanding,
consent and agreement are evidenced by the execution of the Previous Agreement or an adoption
agreement by such Spouse. In addition, each Spouse hereby acknowledges that the Company and the
Parties may desire to amend this Agreement from time to time, and such Spouse hereby appoints his
or her spouse as his or her true and lawful proxy and attorney, with full power of substitution to
enter into any such amendment to this Agreement. Such proxy is irrevocable and will survive the
death, incompetency, and disability of such Spouse, provided that upon termination of this
Agreement, the above authorized proxy shall become null and void. Each such Spouse agrees, for
such Spouse and such Spouse’s heirs, executors, administrators, guardians and other personal
representatives, to offer for sale all shares now owned or hereafter acquired by such Spouse upon
the happening of the events and on the terms and conditions set forth in this Agreement.

     4.9 Entire Agreement. The provisions of the Agreement contain the entire understanding of the parties hereto
respecting the subject matter hereof and supersede all prior agreements, discussions and
understandings with respect thereto.

     4.10 Miscellaneous; Amendment; Termination. The provisions of this Agreement may only be amended
by the written consent of the Company and the SCF Demand Holders (if the SCF Demand Holders then
own Registrable Securities); provided, however, that any amendment that has an adverse effect on
the rights of, or imposes additional obligations on, the Non-SCF Holders shall require the consent
of the Non-SCF Demand Holders that hold in the aggregate at least 50% of the Registrable Securities
then held by the Non-SCF Holders (if the Non-SCF Holders then own Registrable Securities). The
Holders acknowledge and agree that any Person that becomes a Stockholder shall have the rights and
obligations set forth in this Agreement and that such Person becoming a Stockholder shall be deemed
not to be an amendment to this Agreement. The provisions of this Agreement shall terminate and be
of no further force or effect as of and following the tenth anniversary of the date hereof;
provided that the provisions of Section 2.6 shall survive for any sales of Registrable Securities
prior to such date.

20

 

EXHIBIT A

to

AMENDED AND RESTATED

STOCKHOLDERS AGREEMENT

(the “Agreement”)

dated as of [_________ __], 2006

by and among

COMPLETE PRODUCTION SERVICES, INC.

and

THE OTHER PARTIES THERETO

STOCKHOLDERS

	 	 	 
	Name	 	Address
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 

Complete Production Services, Inc.

Exhibit A to Stockholders Agreement

A-1

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