Document:

<PAGE>
                                                                   Exhibit 10.19

                                [KGI Letterhead]

                                  April 9, 2004

Tennenbaum Capital Partners, LLC
 on behalf of the TCP Members
11100 Santa Monica Blvd.
Suite 210
Los Angeles, CA 90025

Ares Corporate Opportunities Fund, L.P.
 on behalf of the Ares Members
1999 Avenue of the Stars
Suite 1900
Los Angeles, CA 90067

MIDOCEAN CELERITY INVESTMENT PARTNERS, L.P.
 on behalf of the MidOcean CELERITY INVESTMENT PARTNERS Members
c/o MidOcean
Capital Partners 320 Park Avenue - 17th Floor
New York, NY 10022
Attention: Frank Schiff

Behrman Capital III L.P.
 on behalf of the Behrman Members
c/o Behrman Capital
Four Embarcadero Center, Suite 3640
San Francisco, CA 94111
Attention: William Matthes

Strategic Entrepreneur Fund III L.P.
 on behalf of the Strategic Entrepreneur Fund III Members
c/o Behrman Capital
Four Embarcadero Center, Suite 3640
San Francisco, CA 94111
Attention: William Matthes

Gryphon Partners II, L.P.
 on behalf of the Gryphon Partners II Members
c/o Gryphon Investors
One Embarcadero Center, Suite 2750
San Francisco, CA 94111
Attention: Jeff L. Ott

Gryphon Partners II-A, L.P.

<PAGE>

 on behalf of the Gryphon Partners II-A Members
c/o Gryphon Investors
One Embarcadero Center, Suite 2750
San Francisco, CA 94111
Attention: Jeff L. Ott

         Re: Tax Matters

                  Reference is hereby made to that certain Restructuring
Agreement dated as of April 9, 2004 (as such agreement may be amended from time
to time, the "RESTRUCTURING AGREEMENT"). Capitalized terms used herein but not
otherwise defined herein have the meanings assigned to such terms in the
Restructuring Agreement.

         (a) The parties expect that as part of the transactions contemplated by
the Restructuring Agreement, the substitution of Kinetic System, Inc., ("KSI")
for Kinetics Group, Inc. ("KGI") as the obligor under certain debt as described
in the Restructuring Agreement (the "SUBSTITUTED DEBT") will not result in tax
to the holders of the Substituted Debt because the substitution of KSI for KGI
under the Substituted Debt will not constitute a significant modification of the
Substituted Debt under Treasury Regulation section 1.1001-3. In addition, the
parties similarly expect that the exchange of the KGI LIQUIDATION CERTIFICATE
for the KSI LIQUIDATION CERTIFICATE will not result in tax to the holders of the
KGI Liquidation Certificate because the value of the KSI Liquidation Certificate
will not exceed that of the KGI Liquidation Certificate. The parties agree,
unless not permitted under applicable law, to file tax returns consistently with
such expectations.

         (b) In the event the parties' expectations are not sustained in this
regard and a final determination is made by a court of competent jurisdiction
(or via definitive agreement with the Internal Revenue Service ("IRS") and any
relevant state taxing authority) to take a contrary position, KGI will indemnify
the holders of the Substituted Debt and the KGI Liquidation Certificate up to
the following amounts with respect to each named indemnitee below:

                  (1) with respect to Tennenbaum Capital Partners, LLC on behalf
of the TCP Members, $450,000;

                  (2) with respect to Ares Corporate Opportunities Fund, L.P on
behalf of the Ares Members, $860,000, and

                  (3) with respect to Behrman Capital III, L.P., Strategic
Entrepreneur Fund III, L.P., Gryphon Partners II, L.P., Gryphon Partners II-A,
L.P., a Delaware limited partnership, MidOcean Celerity Investment Partners, LP
on behalf of each of their respective members, an aggregate amount of $146,200,

all on an after-tax basis (taking into account any tax imposed on the holders as
a result of the payments required by this paragraph) against any interest and
penalties deemed imposed on the holders by the IRS and state taxing authorities.
The interest and penalties deemed imposed by the IRS and state taxing
authorities in the case of a holder that is taxed as a partnership or other
person or entity are (i) interest that would be imposed on a holder if (x) the
holder were a taxable entity subject to federal income tax at the higher of
individual or corporate Federal income tax rates and to state income or
franchise tax at the rate of 9.3%, (y) the holder recognized an amount

<PAGE>

of income equal to the income that the IRS or state taxing authority determined
was recognized by such holder (or in the case of a holder that is taxed as a
partnership, on its direct or indirect equity members) as a result of the
substitution being treated as a significant modification and / or the value of
the KSI Liquidation Certificate exceeding the basis of the KGI Liquidation
Certificate and (z) interest were charged at the relevant deficiency rates for
the number of years which the Substituted Debt and KSI Liquidation Certificate
remained outstanding after the substitution and (ii) the penalty actually
imposed by the IRS on any holder (or in the case of a holder that is taxed as a
partnership on any direct or indirect equity holders of the partnership) as if
that penalty were imposed on all income deemed recognized by the holder. The
parties agree to treat any indemnity payments as additional interest payments
with respect to the Substituted Debt.

         (c) If the Substituted Debt and KSI Liquidation Certificate are still
outstanding at the time the IRS or state taxing authorities ultimately sustain a
contrary position, KGI's indemnity will be computed for the period between the
time of the substitution and the time the IRS or state taxing authorities
ultimately took the contrary position and KGI will further indemnify the holders
each year thereafter until the Substituted Debt and KSI Liquidation Certificate
are repaid for the excess of the amount that would have been payable by KGI
pursuant to paragraph (b) if the IRS or state taxing authorities took the
contrary position at the end of such year over amounts previously paid by KGI
pursuant to this paragraph (c). The parties agree to treat any indemnity
payments as additional interest payments with respect to the Substituted Debt.

         (d) If the parties determine that it is contrary to applicable law to
file tax returns as currently anticipated, then the parties will negotiate in
good faith payments by KGI that will have the same economic effect as the
payments in paragraph (c) above and would not in the reasonable discretion of
the holders, expose a holder that was a tax-exempt entity to a risk of unrelated
business taxable income, and if they fail to determine such payments, KGI will
increase the annual interest payable each year with respect to the Substituted
Debt held by each holder by the excess of the aggregate amount KGI would have
been required to pay each year with respect to both the Substituted Debt and the
KSI Liquidation Certificate held by such holder pursuant to paragraph (b) if the
holders had filed their tax returns as provided in paragraph (a) and the IRS had
taken the contrary position at the end of such year over amounts previously paid
by KGI pursuant to this paragraph (d).

                                    Kinetics Group, Inc.

                                    By: /s/ John Goodman
                                        ________________________
                                         Name:
                                         Title:

<PAGE>

Agreed and accepted this April 9, 2004.

                                    TENNENBAUM CAPITAL PARTNERS, LLC
                                    By:    Tennenbaum & Co., LLC
                                    Its:   Managing Member

                                    By:______________________

                                    Name:
                                    Title:

                                    Address for Notices:
                                    11100 Santa Monica Blvd.
                                    Suite 210
                                    Los Angeles, CA 90025
                                    Attention: David A. Hollander

<PAGE>

Agreed and accepted this April 9, 2004.

                                    ARES CORPORATE OPPORTUNITIES FUND, L.P.
                                    By: ACOF Management, L.P.
                                    Its: General Partner
                                    By: ACOF Operating Manager, L.P.
                                    Its: General Partner
                                    By: Ares Management, Inc.
                                    Its: General Partner

                                    By: /s/ Eric Beckman
                                        _______________________
                                    Name: Eric Beckman
                                    Title:

                                    Address for Notices:
                                    1999 Avenue of the Stars
                                    Suite 1900
                                    Los Angeles, CA 90067
                                    Attention: Eric Beckman
                                           Kevin Frankel
                                    Fax: 310-201-4157

<PAGE>

Agreed and accepted this April 9, 2004.

                                    Behrman Capital III, L.P.

                                    By: Behrman Brothers III, LLC
                                    Its: General Partner

                                    By: /s/ William Matthes
                                       _______________________
                                    Name: William Matthes
                                    Title: Managing Member

                                    Address for Notices:
                                    Behrman Capital III L.P.
                                    c/o Behrman Capital
                                    Four Embarcadero Center, Suite 3640
                                    San Francisco, CA 94111
                                    Attention: William Matthes
                                    Facsimile: (415) 434-7310

<PAGE>

Agreed and accepted this April 9, 2004.

                                    Strategic Entrepreneur Fund III, L.P.

                                    By: /s/ William Matthes
                                       _____________________
                                    Name: William Matthes
                                    Title: General Partner

                                    Address for Notices:
                                    Strategic Entrepreneur Fund III, L.P.
                                    c/o Behrman Capital
                                    Four Embarcadero Center, Suite 3640
                                    San Francisco, CA 94111
                                    Attention: William Matthes
                                    Facsimile: (415) 434-7310

<PAGE>

Agreed and accepted this April 9, 2004.

                                    Gryphon Partners II, L.P.

                                    By: Gryphon GenPar II, L.L.C., a Delaware
                                    limited liability company
                                    Its: General Partner

                                    By: /s/ Jeffrey L. Ott
                                       _________________________
                                    Name: Jeffrey L. Ott
                                    Title: Member and Principal

                                    Address for Notices:
                                    Gryphon Partners II, L.P.
                                    c/o Gryphon Investors
                                    One Embarcadero Center, Suite 2750
                                    San Francisco, CA 94111
                                    Attention: Jeff L. Ott
                                    Fax: (415) 217-7447

<PAGE>

Agreed and accepted this April 9, 2004.

                                        Gryphon Partners II-A, L.P., a Delaware
                                        limited partnership

                                        By: Gryphon GenPar II, L.L.C., a
                                        Delaware limited liability company
                                        Its: General Partner

                                        By: /s/ Jeffrey L. Ott
                                           ________________________
                                        Name : Jeffrey L. Ott
                                        Title: Member and Principal

                                        Address for Notices:
                                        Gryphon Partners II-A, L.P.
                                        c/o Gryphon Investors
                                        One Embarcadero Center, Suite 2750
                                        San Francisco, CA 94111
                                        Attention: Jeff L. Ott
                                        Fax: (415) 217-7447
<PAGE>

Agreed and accepted this April 9, 2004.

                                    MidOcean Celerity Investment Partners, LP

                                    By: MidOcean Celerity Holdings, LLC
                                    Its: General Partner

                                    By: /s/ Frank Schiff
                                       -----------------
                                    Name: Frank Schiff
                                    Title:

                                    Address for Notices:
                                    MidOcean Celerity Investment Partners, L.P.
                                    c/o MidOcean Capital Partners
                                    320 Park Avenue - 17th Floor
                                    New York, NY 10022
                                    Attention: Frank Schiff
                                    Fax: (212) 497-1373<PAGE>

                                                                   EXHIBIT 10.20

                             [FORM OF] SERIES A NOTE

             THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
             ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
             STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE
             DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
             REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE
             STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
             EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH
             ACT AND SUCH LAWS.

                              KINETICS GROUP, INC.

                          SENIOR SECURED NOTE DUE 2006

$[     ]                                          Issue Date: September 26, 2003

         For value received, the undersigned, KINETICS GROUP, INC., a Delaware
corporation (the "COMPANY", which term includes any successor corporation under
the Purchase Agreement hereinafter referred to), hereby promises to pay to the
order of [HOLDER], a [     ], or its registered assigns (the "HOLDER"), the
principal sum of $[     ] on August 25, 2006 (the "MATURITY DATE") and to pay
interest thereon from time to time as provided herein.

         This Note is one of a duly authorized issue of notes of the Company
designated as its Series A Senior Secured Notes due 2006 (herein called the
"NOTES"), issued in the aggregate principal amount limited to $75,000,000
pursuant to the Amended and Restated Purchase Agreement dated as of April
[     ], 2004 (the "PURCHASE AGREEMENT") by and among the Company, Celerity
Group, Inc., Kinetic Systems, Inc., the Subsidiary Guarantors party thereto, the
KSI Guarantors party thereto, the Purchasers party thereto, and Tennenbaum
Capital Partners, LLC, as Collateral Agent and Agent for the purchasers, and is
entitled to the benefits thereof and to the exercise of the remedies provided
thereby or otherwise available in respect thereof. Capitalized terms used herein
without definition have the meanings assigned thereto in the Purchase Agreement.

         The Company promises to pay interest ("INTEREST") on the principal
amount of this Note at the rate of LIBOR + 10.00% per annum, subject to Section
2.04 of the Purchase Agreement (the "INTEREST RATE"). Interest on this Note
shall accrue from and including the date of issuance through and until repayment
of the principal amount of this Note and payment of all Interest in full, and
shall be computed on the basis of a 360-day year of twelve 30-day months.
Interest shall be payable quarterly on each March 31, June 30, September 30 and
December 31 of each year or, if any such date shall not be a Business Day, on
the next succeeding Business Day to occur after such date (each date upon which
interest shall be so payable, an "INTEREST PAYMENT DATE"), beginning on June 30,
2004, by wire transfer of immediately available funds to an account at a bank
designated in writing by the Holder on reasonable notice. In the absence of

                                      A-1

<PAGE>

any such written designation, any such Interest payment shall be deemed made on
the date a check for good funds in the applicable amount payable to the order of
Holder is received by the Holder at its last address as reflected in the
Company's Note Register (as defined below); if no such address appears, then to
such Holder in care of the last address in such note register of any predecessor
holder of this Note (or its predecessor).

         Notwithstanding the foregoing provisions of this Note, but subject to
applicable law, any overdue principal of, overdue Interest on and any other
overdue amounts payable under this Note shall bear interest, payable on demand
in immediately available funds, for each day from the date payment thereof was
due to the date of actual payment, at a rate equal to the sum of (i) the
Interest Rate and (ii) an additional 2% per annum. Subject to applicable law,
any interest that shall accrue on overdue interest on this Note as provided in
the preceding sentence and shall not have been paid in full in cash on or before
the next Interest Payment Date to occur after the date on which the overdue
interest became due and payable shall itself be deemed to be overdue interest on
this Note to which the preceding sentence shall apply.

         In the event that any interest rate(s) provided for in this Note shall
be determined to be unlawful, such interest rate(s) shall be computed at the
highest rate permitted by applicable law. Any payment by the Company of any
interest amount in excess of that permitted by law shall be considered a
mistake, with the excess being applied to the principal amount of this Note
without prepayment premium or penalty; if no such principal amount is
outstanding, such excess shall be returned to the Company.

         The Notes are subject to redemption in accordance with the terms of the
Purchase Agreement. All redemption payments shall include payment of accrued
Interest on the principal amount of this Note so prepaid and shall be applied
first to all costs, expenses and indemnities payable under the Purchase
Agreement, then to payment of default interest, if any, then to payment of the
Interest, and thereafter to principal. In the event of redemption of this Note
in part only, a new Note or Notes for the unredeemed portion hereof shall be
issued in the name of the Holder hereof upon cancellation hereof.

         All redemption payments shall include payment of accrued Interest on
the principal amount of this Note so prepaid and shall be applied first to all
costs, expenses and indemnities payable under the Purchase Agreement, then to
payment of default interest, if any, then to payment of the Interest, and
thereafter to principal.

         In the event of redemption of this Note in part only, a new Note or
Notes for the unredeemed portion hereof shall be issue in the name of the Holder
hereof upon cancellation hereof.

         The Notes are subject to, at the option of the Board of Directors of
the Company and the satisfaction of a number of conditions, Legal Defeasance and
Covenant Defeasance. Among the conditions for Defeasance are an irrevocable
deposit by Company with the Trustee, for the benefit of the Holders, of cash or
U.S. Government Obligations in an amount sufficient to pay the principal of the
outstanding Notes, accrued but unpaid interest on the outstanding Notes through
the date of Defeasance, interest on the outstanding Notes through the applicable
redemption date or the stated date of maturity, and the Redemption Premium, if
applicable.

                                      A-2

<PAGE>

         If an Event of Default shall occur and be continuing, the principal of
all the Notes may be declared to be due and payable in the manner and with the
effect provided in the Purchase Agreement. This Note is entitled to the benefits
of certain guarantees set forth in the Purchase Agreement (the "GUARANTIES")
made in favor of the Holders of the Notes by Holdings, which holds all the
equity interest in the Company, KSI, and certain subsidiaries of the Company and
KSI. In addition the Notes are entitled to the benefits of the Parent
Non-Recourse Guaranty. Reference is hereby made to the Purchase Agreement for a
statement of the respective rights, limitation of rights, duties and obligations
thereunder of the Guarantors and Holders of the Notes.

         The Notes are secured by a pledge of substantially all of the assets
and properties of the Company and the Guaranties are secured by the pledge of
certain assets of the Guarantors, as set forth in the Purchase Agreement.
Additionally, the Notes are secured by the collateral described in the Parent
Pledge Agreement. Pursuant to the Intercreditor Agreement, the security
interests securing the indebtedness evidenced by the Notes is contractually
subordinate to the prior payment in full of amounts outstanding under the
Amended and Restated Credit Agreement dated as of December 10, 2002 among the
Company and certain financial institutions, as such agreement has been and may
be amended from time to time.

         This Note may be transferred, pledged or assigned, in whole or in part,
by the Holder at any time, in accordance with the provisions of the Purchase
Agreement. The Purchase Agreement also contains provisions permitting the
Holders of specified percentages in aggregate principal amount of the Notes at
the time outstanding, on behalf of the Holders of all the Notes, to waive
compliance by the Company with certain provisions of the Purchase Agreement and
certain past defaults under the Purchase Agreement and their consequences. Any
such consent or waiver by or on behalf of the Holder of this Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in the
exchange herefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Purchase Agreement and no provision of this
Note or of the Purchase Agreement shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Note at the times, place and rate, and in
the coin and currency, herein prescribed.

         The Company shall maintain a register (the "NOTE REGISTER") in its
principal offices for the purpose of registering the Notes and any transfer or
partial transfer thereof, which register shall as set forth in the Purchase
Agreement reflect and identify the ownership of record of any interest in this
Note. Upon surrender for registration of transfer or exchange of this Note at
the principal offices of the Company, the Company shall, at its expense, execute
and deliver one or more new Notes of like tenor and of denominations of at least
$1.0 million (except as may be necessary to reflect any principal amount not
evenly divisible by $1.0 million) of a like aggregate principal amount,
registered in the name of the Holder or a transferee or transferees. Every Note
surrendered for registration of transfer or exchange shall be duly endorsed, or
be accompanied by a written instrument of transfer duly executed by the Holder
of such Note or such Holder's attorney duly authorized in writing. Prior to and
at the time of due presentment of this Note for registration of transfer, the
Company may treat the Person in whose name this Note

                                      A-3

<PAGE>

is registered as the owner hereof for all purposes, whether or not this Note be
overdue, and the Company shall not be affected by notice to the contrary.

         The term "Holder" as used herein shall also include any transferee of
this Note whose name has been recorded by the Company in the Note Register. Each
transferee of this Note acknowledges that this Note has not been registered
under the Securities Act, and may be transferred only pursuant to an effective
registration under the Securities Act or pursuant to an applicable exemption
from the registration requirements of the Securities Act.

         On receipt by the Company of an affidavit of an authorized
representative of the Holder stating the circumstances of the loss, theft,
destruction or mutilation of this Note (and in the case of any such mutilation,
on surrender and cancellation of such Note), the Company, at its expense, will
promptly execute and deliver, in lieu thereof, a new Note of like tenor. If
required by the Company, such Holder must provide indemnity sufficient in the
reasonable judgment of the Company to protect the Company from any loss which
they may suffer if a lost, stolen or destroyed Note is replaced.

         All notices, demands and other communications provided for or permitted
hereunder shall be made in accordance with the applicable provisions of the
Purchase Agreement.

         This Note shall be governed by, construed in accordance with, and
enforced under, the laws of the state of New York applicable to agreements or
instruments entered into and performed entirely within such state.

                                      A-4

<PAGE>

                                              KINETICS GROUP, INC.

                                              By: ______________________________
                                                  Name:
                                                  Title:

                         Signature Page - Series A Note
<PAGE>

                             [FORM OF] SERIES B NOTE

             THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
             OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
             AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF
             EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
             UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
             PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION
             REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

                              KINETICS GROUP, INC.

                          SENIOR SECURED NOTE DUE 2006

$[     ]                                             Issue Date: [    ](1), 2004

         For value received, the undersigned, KINETICS GROUP, INC., a Delaware
corporation (the "COMPANY", which term includes any successor corporation under
the Purchase Agreement hereinafter referred to), hereby promises to pay to the
order of [HOLDER], a [     ], or its registered assigns (the "HOLDER"), the
principal sum of $[     ] on August 25, 2006 (the "MATURITY DATE") and to pay
interest thereon from time to time as provided herein.

         This Note is one of a duly authorized issue of notes of the Company
designated as its Series B Senior Secured Notes due 2006 (herein called the
"NOTES"), issued in the aggregate principal amount limited to $20,000,000
pursuant to the Amended and Restated Purchase Agreement dated as of April
[     ], 2004 (the "PURCHASE AGREEMENT") by and among the Company, Celerity
Group, Inc., Kinetic Systems, Inc., the Subsidiary Guarantors party thereto, the
KSI Guarantors party thereto, the Purchasers party thereto, and Tennenbaum
Capital Partners, LLC, as Collateral Agent and Agent for the purchasers, and is
entitled to the benefits thereof and to the exercise of the remedies provided
thereby or otherwise available in respect thereof. Capitalized terms used herein
without definition have the meanings assigned thereto in the Purchase Agreement.

         The Company promises to pay interest ("INTEREST") on the principal
amount of this Note at the rate of LIBOR + 10.00% per annum, subject to Section
2.04 of the Purchase Agreement (the "INTEREST RATE"). Interest on this Note
shall accrue from and including the date of issuance through and until repayment
of the principal amount of this Note and payment of all Interest in full, and
shall be computed on the basis of a 360-day year of twelve 30-day months.

-----------
(1) January 23, 2004 for original Series B; April [8], 2004 for new Series B.

                                       1

<PAGE>

Interest shall be payable quarterly on each March 31, June 30, September 30 and
December 31 of each year or, if any such date shall not be a Business Day, on
the next succeeding Business Day to occur after such date (each date upon which
interest shall be so payable, an "INTEREST PAYMENT DATE"), beginning on June 30,
2004, by wire transfer of immediately available funds to an account at a bank
designated in writing by the Holder on reasonable notice. In the absence of any
such written designation, any such Interest payment shall be deemed made on the
date a check for good funds in the applicable amount payable to the order of
Holder is received by the Holder at its last address as reflected in the
Company's Note Register (as defined below); if no such address appears, then to
such Holder in care of the last address in such note register of any predecessor
holder of this Note (or its predecessor).

         Notwithstanding the foregoing provisions of this Note, but subject to
applicable law, any overdue principal of, overdue Interest on and any other
overdue amounts payable under this Note shall bear interest, payable on demand
in immediately available funds, for each day from the date payment thereof was
due to the date of actual payment, at a rate equal to the sum of (i) the
Interest Rate and (ii) an additional 2% per annum. Subject to applicable law,
any interest that shall accrue on overdue interest on this Note as provided in
the preceding sentence and shall not have been paid in full in cash on or before
the next Interest Payment Date to occur after the date on which the overdue
interest became due and payable shall itself be deemed to be overdue interest on
this Note to which the preceding sentence shall apply.

         In the event that any interest rate(s) provided for in this Note shall
be determined to be unlawful, such interest rate(s) shall be computed at the
highest rate permitted by applicable law. Any payment by the Company of any
interest amount in excess of that permitted by law shall be considered a
mistake, with the excess being applied to the principal amount of this Note
without prepayment premium or penalty; if no such principal amount is
outstanding, such excess shall be returned to the Company.

         The Notes are subject to redemption in accordance with the terms of the
Purchase Agreement. All redemption payments shall include payment of accrued
Interest on the principal amount of this Note so prepaid and shall be applied
first to all costs, expenses and indemnities payable under the Purchase
Agreement, then to payment of default interest, if any, then to payment of the
Interest, and thereafter to principal. In the event of redemption of this Note
in part only, a new Note or Notes for the unredeemed portion hereof shall be
issued in the name of the Holder hereof upon cancellation hereof.

         The Notes are subject to, at the option of the Board of Directors of
the Company and the satisfaction of a number of conditions, Legal Defeasance and
Covenant Defeasance. Among the conditions for Defeasance are an irrevocable
deposit by Company with the Trustee, for the benefit of the Holders, of cash or
U.S. Government Obligations in an amount sufficient to pay the principal of the
outstanding Notes, accrued but unpaid interest on the outstanding Notes through
the date of Defeasance, interest on the outstanding Notes through the applicable
redemption date or the stated date of maturity, and the Redemption Premium, if
applicable.

         If an Event of Default shall occur and be continuing, the principal of
all the Notes may be declared to be due and payable in the manner and with the
effect provided in the Purchase Agreement. This Note is entitled to the benefits
of certain guarantees set forth in the

                                       2

<PAGE>

Purchase Agreement (the "GUARANTIES") made in favor of the Holders of the Notes
by Holdings, which holds all the equity interest in the Company, KSI, and
certain subsidiaries of the Company and KSI. In addition the Notes are entitled
to the benefits of the Parent Non-Recourse Guaranty. Reference is hereby made to
the Purchase Agreement for a statement of the respective rights, limitation of
rights, duties and obligations thereunder of the Guarantors and Holders of the
Notes.

         The Notes are secured by a pledge of substantially all of the assets
and properties of the Company and the Guaranties are secured by the pledge of
certain assets of the Guarantors, as set forth in the Purchase Agreement.
Additionally, the Notes are secured by the collateral described in the Parent
Pledge Agreement. Pursuant to the Intercreditor Agreement, the security
interests securing the indebtedness evidenced by the Notes is contractually
subordinate to the prior payment in full of amounts outstanding under the
Amended and Restated Credit Agreement dated as of December 10, 2002 among the
Company and certain financial institutions, as such agreement has been and may
be amended from time to time.

         This Note may be transferred, pledged or assigned, in whole or in part,
by the Holder at any time, in accordance with the provisions of the Purchase
Agreement. The Purchase Agreement also contains provisions permitting the
Holders of specified percentages in aggregate principal amount of the Notes at
the time outstanding, on behalf of the Holders of all the Notes, to waive
compliance by the Company with certain provisions of the Purchase Agreement and
certain past defaults under the Purchase Agreement and their consequences. Any
such consent or waiver by or on behalf of the Holder of this Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in the
exchange herefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Purchase Agreement and no provision of this
Note or of the Purchase Agreement shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Note at the times, place and rate, and in
the coin and currency, herein prescribed.

         The Company shall maintain a register (the "NOTE REGISTER") in its
principal offices for the purpose of registering the Notes and any transfer or
partial transfer thereof, which register shall as set forth in the Purchase
Agreement reflect and identify the ownership of record of any interest in this
Note. Upon surrender for registration of transfer or exchange of this Note at
the principal offices of the Company, the Company shall, at its expense, execute
and deliver one or more new Notes of like tenor and of denominations of at least
$1.0 million (except as may be necessary to reflect any principal amount not
evenly divisible by $1.0 million) of a like aggregate principal amount,
registered in the name of the Holder or a transferee or transferees. Every Note
surrendered for registration of transfer or exchange shall be duly endorsed, or
be accompanied by a written instrument of transfer duly executed by the Holder
of such Note or such Holder's attorney duly authorized in writing. Prior to and
at the time of due presentment of this Note for registration of transfer, the
Company may treat the Person in whose name this Note is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and the Company
shall not be affected by notice to the contrary.

                                       3

<PAGE>

         The term "Holder" as used herein shall also include any transferee of
this Note whose name has been recorded by the Company in the Note Register. Each
transferee of this Note acknowledges that this Note has not been registered
under the Securities Act, and may be transferred only pursuant to an effective
registration under the Securities Act or pursuant to an applicable exemption
from the registration requirements of the Securities Act.

         On receipt by the Company of an affidavit of an authorized
representative of the Holder stating the circumstances of the loss, theft,
destruction or mutilation of this Note (and in the case of any such mutilation,
on surrender and cancellation of such Note), the Company, at its expense, will
promptly execute and deliver, in lieu thereof, a new Note of like tenor. If
required by the Company, such Holder must provide indemnity sufficient in the
reasonable judgment of the Company to protect the Company from any loss which
they may suffer if a lost, stolen or destroyed Note is replaced.

         All notices, demands and other communications provided for or permitted
hereunder shall be made in accordance with the applicable provisions of the
Purchase Agreement.

         This Note shall be governed by, construed in accordance with, and
enforced under, the laws of the state of New York applicable to agreements or
instruments entered into and performed entirely within such state.

                                       4

<PAGE>

                                              KINETICS GROUP, INC.

                                              By: ______________________________
                                                  Name:
                                                  Title:

                         Signature Page - Series B Note
<PAGE>

                             [FORM OF] SERIES C NOTE

             THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
             OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
             AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF
             EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
             UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
             PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION
             REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

                              KINETICS GROUP, INC.

                          SENIOR SECURED NOTE DUE 2006

$[     ]                                          Issue Date: April [    ], 2004

         For value received, the undersigned, KINETICS GROUP, INC., a Delaware
corporation (the "COMPANY", which term includes any successor corporation under
the Purchase Agreement hereinafter referred to), hereby promises to pay to the
order of [HOLDER], a [     ], or its registered assigns (the "HOLDER"), the
principal sum of $[     ] on August 25, 2006 (the "MATURITY DATE") and to pay
interest thereon from time to time as provided herein.

         This Note is one of a duly authorized issue of notes of the Company
designated as its Series C Senior Secured Notes due 2006 (herein called the
"NOTES"), issued in the aggregate principal amount limited to $30,000,000
pursuant to the Amended and Restated Purchase Agreement dated as of April
[     ], 2004 (the "PURCHASE AGREEMENT") by and among the Company, Celerity
Group, Inc., Kinetic Systems, Inc., the Subsidiary Guarantors party thereto, the
KSI Guarantors party thereto, the Purchasers party thereto, and Tennenbaum
Capital Partners, LLC, as Collateral Agent and Agent for the purchasers, and is
entitled to the benefits thereof and to the exercise of the remedies provided
thereby or otherwise available in respect thereof. Capitalized terms used herein
without definition have the meanings assigned thereto in the Purchase Agreement.

         The Company promises to pay interest ("INTEREST") on the principal
amount of this Note at the rate of LIBOR + 10.00% per annum, subject to Section
2.04 of the Purchase Agreement (the "INTEREST RATE"). Interest on this Note
shall accrue from and including the date of issuance through and until repayment
of the principal amount of this Note and payment of all Interest in full, and
shall be computed on the basis of a 360-day year of twelve 30-day months.
Interest shall be payable quarterly on each March 31, June 30, September 30 and
December 31 of each year or, if any such date shall not be a Business Day, on
the next succeeding Business Day to occur after such date (each date upon which
interest shall be so payable, an "INTEREST PAYMENT DATE"), beginning on June 30,
2004, by wire transfer of immediately available funds to

                                       1

<PAGE>

an account at a bank designated in writing by the Holder on reasonable notice.
In the absence of any such written designation, any such Interest payment shall
be deemed made on the date a check for good funds in the applicable amount
payable to the order of Holder is received by the Holder at its last address as
reflected in the Company's Note Register (as defined below); if no such address
appears, then to such Holder in care of the last address in such note register
of any predecessor holder of this Note (or its predecessor).

         Notwithstanding the foregoing provisions of this Note, but subject to
applicable law, any overdue principal of, overdue Interest on and any other
overdue amounts payable under this Note shall bear interest, payable on demand
in immediately available funds, for each day from the date payment thereof was
due to the date of actual payment, at a rate equal to the sum of (i) the
Interest Rate and (ii) an additional 2% per annum. Subject to applicable law,
any interest that shall accrue on overdue interest on this Note as provided in
the preceding sentence and shall not have been paid in full in cash on or before
the next Interest Payment Date to occur after the date on which the overdue
interest became due and payable shall itself be deemed to be overdue interest on
this Note to which the preceding sentence shall apply.

         In the event that any interest rate(s) provided for in this Note shall
be determined to be unlawful, such interest rate(s) shall be computed at the
highest rate permitted by applicable law. Any payment by the Company of any
interest amount in excess of that permitted by law shall be considered a
mistake, with the excess being applied to the principal amount of this Note
without prepayment premium or penalty; if no such principal amount is
outstanding, such excess shall be returned to the Company.

         The Notes are subject to redemption in accordance with the terms of the
Purchase Agreement. All redemption payments shall include payment of accrued
Interest on the principal amount of this Note so prepaid and shall be applied
first to all costs, expenses and indemnities payable under the Purchase
Agreement, then to payment of default interest, if any, then to payment of the
Interest, and thereafter to principal. In the event of redemption of this Note
in part only, a new Note or Notes for the unredeemed portion hereof shall be
issued in the name of the Holder hereof upon cancellation hereof.

         The Notes are subject to, at the option of the Board of Directors of
the Company and the satisfaction of a number of conditions, Legal Defeasance and
Covenant Defeasance. Among the conditions for Defeasance are an irrevocable
deposit by Company with the Trustee, for the benefit of the Holders, of cash or
U.S. Government Obligations in an amount sufficient to pay the principal of the
outstanding Notes, accrued but unpaid interest on the outstanding Notes through
the date of Defeasance, interest on the outstanding Notes through the applicable
redemption date or the stated date of maturity, and the Redemption Premium, if
applicable.

         If an Event of Default shall occur and be continuing, the principal of
all the Notes may be declared to be due and payable in the manner and with the
effect provided in the Purchase Agreement. This Note is entitled to the benefits
of certain guarantees set forth in the Purchase Agreement (the "GUARANTIES")
made in favor of the Holders of the Notes by Holdings, which holds all the
equity interest in the Company, KSI, and certain subsidiaries of the Company and
KSI. In addition the Notes are entitled to the benefits of the Parent
Non-Recourse Guaranty. Reference is hereby made to the Purchase Agreement for a
statement of the respective rights,

                                       2

<PAGE>

limitation of rights, duties and obligations thereunder of the Guarantors and
Holders of the Notes.

         The Notes are secured by a pledge of substantially all of the assets
and properties of the Company and the Guaranties are secured by the pledge of
certain assets of the Guarantors, as set forth in the Purchase Agreement.
Additionally, the Notes are secured by the collateral described in the Parent
Pledge Agreement. Pursuant to the Intercreditor Agreement, the security
interests securing the indebtedness evidenced by the Notes is contractually
subordinate to the prior payment in full of amounts outstanding under the
Amended and Restated Credit Agreement dated as of December 10, 2002 among the
Company and certain financial institutions, as such agreement has been and may
be amended from time to time.

         This Note may be transferred, pledged or assigned, in whole or in part,
by the Holder at any time, in accordance with the provisions of the Purchase
Agreement. The Purchase Agreement also contains provisions permitting the
Holders of specified percentages in aggregate principal amount of the Notes at
the time outstanding, on behalf of the Holders of all the Notes, to waive
compliance by the Company with certain provisions of the Purchase Agreement and
certain past defaults under the Purchase Agreement and their consequences. Any
such consent or waiver by or on behalf of the Holder of this Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in the
exchange herefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Purchase Agreement and no provision of this
Note or of the Purchase Agreement shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Note at the times, place and rate, and in
the coin and currency, herein prescribed.

         The Company shall maintain a register (the "NOTE REGISTER") in its
principal offices for the purpose of registering the Notes and any transfer or
partial transfer thereof, which register shall as set forth in the Purchase
Agreement reflect and identify the ownership of record of any interest in this
Note. Upon surrender for registration of transfer or exchange of this Note at
the principal offices of the Company, the Company shall, at its expense, execute
and deliver one or more new Notes of like tenor and of denominations of at least
$1.0 million (except as may be necessary to reflect any principal amount not
evenly divisible by $1.0 million) of a like aggregate principal amount,
registered in the name of the Holder or a transferee or transferees. Every Note
surrendered for registration of transfer or exchange shall be duly endorsed, or
be accompanied by a written instrument of transfer duly executed by the Holder
of such Note or such Holder's attorney duly authorized in writing. Prior to and
at the time of due presentment of this Note for registration of transfer, the
Company may treat the Person in whose name this Note is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and the Company
shall not be affected by notice to the contrary.

         The term "Holder" as used herein shall also include any transferee of
this Note whose name has been recorded by the Company in the Note Register. Each
transferee of this Note acknowledges that this Note has not been registered
under the Securities Act, and may be

                                       3

<PAGE>

transferred only pursuant to an effective registration under the Securities Act
or pursuant to an applicable exemption from the registration requirements of the
Securities Act.

         On receipt by the Company of an affidavit of an authorized
representative of the Holder stating the circumstances of the loss, theft,
destruction or mutilation of this Note (and in the case of any such mutilation,
on surrender and cancellation of such Note), the Company, at its expense, will
promptly execute and deliver, in lieu thereof, a new Note of like tenor. If
required by the Company, such Holder must provide indemnity sufficient in the
reasonable judgment of the Company to protect the Company from any loss which
they may suffer if a lost, stolen or destroyed Note is replaced.

         All notices, demands and other communications provided for or permitted
hereunder shall be made in accordance with the applicable provisions of the
Purchase Agreement.

         This Note shall be governed by, construed in accordance with, and
enforced under, the laws of the state of New York applicable to agreements or
instruments entered into and performed entirely within such state.

                                       4

<PAGE>

                                              KINETICS GROUP, INC.

                                              By: ______________________________
                                                  Name:
                                                  Title:

                         Signature Page - Series C Note

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