Document:

Exhibit 10.18

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (the “Agreement”), dated as of March 26, 2004 is by and
between Teleglobe Bermuda Holdings Ltd (the “Company”) and Richard Willett (the
“Executive”).

 

WHEREAS, prior to the consummation of the merger
contemplated pursuant to the Agreement and Plan of Merger among Teleglobe
International Holdings, Ltd. (“TIHL”), VEX Merger Subsidiary Corp. (“VEX”) and
ITXC Corp. (“ITXC”), dated as of November 4, 2003 (the “Merger Agreement”), all
of TIHL’s assets will be transferred to and held by the Company;

 

WHEREAS, the
Executive is entering into an amended and restated employment agreement with
Teleglobe Canada ULC (“Teleglobe Canada”), an affiliate of the Company, to
provide services to Teleglobe Canada;

 

WHEREAS, in
connection with the consummation of the merger of VEX and ITXC, the Executive
is being appointed as Chief Financial Officer of the Company; and

 

WHEREAS, the Company and the Executive desire
to enter into this Agreement with respect to the services to be provided by the
Executive to the Company.

 

NOW, THEREFORE, in
consideration of the promises in this Agreement, the mutuality and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

1)                                      Term.  Unless terminated earlier in accordance with
Section 6 hereof, the term of the Agreement and the employment relationship
hereunder shall commence as of the Effective Time (as defined under the Merger
Agreement) and will continue until February 2, 2006 (the “Initial Term”);
provided, however, the Term shall be automatically extended for additional one
(1) year periods commencing at the end of the Initial Term and on each
anniversary date thereafter (each, an “Extended Term”), unless and until either
party provides a non-renewal notice to the other party not less than thirty
(30) days before the expiration of the Initial Term or Extended Term, such that
such termination of the Agreement shall be effective as of the end of the
Initial Term or Extended Term, as the case may be.  For the purposes of this Agreement, “Term” shall include the
Initial Term and the Extended Term.

 

2)                                      Duties.  The Company shall employ the Executive
effective as of the Effective Time to render, subject to the last sentence of
this Section 2, services to the Company. 
The Executive will serve in the capacity of Chief Financial Officer of
the Company and shall report to the Chief Executive Officer of the Company (the
“CEO”).  The Executive will perform such
executive duties related to the Company as may be assigned to him from time to
time by the CEO consistent with the Executive’s position as Chief Financial
Officer of the Company, including, but not limited to, the following, subject,
in each case to the determinations of the Board in the exercise of its
fiduciary duties:

 

(i)                                     Approval of the
Company’s medium and long-term business plans;

 

 

(ii)                                  Approval of the
Company’s financial statements and filings submitted to the United States
Securities and Exchange Commission;

 

(iii)                               Approval of the
Company’s budget;

 

(iv)                              Annual review of the
Company’s dividend policy;

 

(v)                                 Review and approval of
the Company’s employment agreements, compensation plans, performance criteria
and equity compensation provided to senior management;

 

(vi)                              Review of performance of
the Company’s senior management;

 

(vii)                           Approval of major capital
expenditure plans;

 

(viii)                        Approval of material contracts
involving Teleglobe International Holdings Ltd or Teleglobe Bermuda Holdings
Ltd;

 

(ix)                                Ensuring the execution
of resolutions adopted at Company shareholder meetings;

 

(x)                                   Approval of
significant corporate matters, including, but not limited to, acquisitions;

 

(xi)                                Approval of major
financing arrangements;

 

(xii)                             Management of Company
shareholder meetings and similar meetings and assist in the preparation of
documentation of such meetings (with related reports); and

 

(xiii)                          Communicate with the
Company’s Audit Committee on matters including:

 

a.                                       Selection,
compensation and oversight of external auditor;

 

b.                                      Reviewing
material written correspondence between auditors and management;

 

c.                                       Retaining
and supervising independent counsel and other advisors;

 

d.                                      Pre-approving
all audit and non-audit services by external auditor;

 

e.                                       Quarterly
certification of financial statement by Chief Executive Officer and Chief
Financial Officer of the Company;

 

f.                                         Reviewing
management’s annual assessment of internal controls; and

 

g.                                      Discussing
critical accounting policies and practices with external auditor.

 

2

 

The Executive
will devote all his full working-time and attention to the performance of such
duties and to the promotion of the business and interests of the Company and
its affiliates.  This provision,
however, will not prevent the Executive from investing his funds or assets in
any form or manner, or from acting as an advisor to or a member of, the board
of directors of any companies, businesses, or charitable organizations, so long
as such actions do not violate the provisions of Section 5 of this Agreement or
interfere with the Executive’s performance of his duties hereunder.

 

3)                                      Salary.  During the Term, the Executive shall receive
an annual base salary of Seventy Seven Thousand Eight Hundred Fifteen Dollars
(CDN$77,815) with respect to his services for the Company (“Base Salary”)
payable in accordance with the payroll practices of the Company.

 

4)                                      Tax Matters.  During the Term, the Company shall cause its
accountants or other designated agent to prepare and file, at the Company’s
expense, any federal, state and local income tax returns (each, a “Tax Return”)
required to be filed by the Executive for taxable periods that include the Term
(or a portion thereof).  To the extent
that the amount of income tax due and payable for any taxable period on the
Executive’s compensation set forth in Sections 3 and 6 hereof (and, as
applicable, any taxable amounts relating to payments under this Section 4
exceeds the amount of income tax that would have been due and payable for such
taxable period on such compensation if such compensation were paid to the
Executive as a resident of Ohio, the Executive shall receive an additional cash
payment from the Company in an amount equal to such excess amount of income tax
that is due and payable.  At the
beginning of each year during the Term, an estimate of the tax equalization
described in this Section 4 on a monthly basis shall be made on the Base Salary
to be received by the Executive during such year and such tax equalization
amount shall be paid to the Executive on a monthly basis.  At the end of the year, a final tax
equalization calculation shall be made with respect to all taxable income
earned or paid to the Executive during such year.  To the extent that any amount of tax equalization for the
Executive is needed in addition to the total monthly payments already made to
the Executive, such payment shall be made to the Executive no later than five
(5) days prior to the date that the relevant income tax payment is due to the
appropriate taxing authority.

 

5)                                      Non-Competition;
Confidentiality; Remedies.

 

a)                                      Non-Competition.  During the Term, for any period in which the
Executive is receiving payments pursuant to Section 6 and for six (6) months
after the expiration of the Term, the Executive agrees that the Executive will
not, without the prior written consent of the Company, directly or indirectly,
whether individually, as a director, stockholder, partner, owner, employee,
consultant, or agent of any business, or in any other capacity, other than on
behalf of the Company, or any of subsidiaries or affiliates:  own, manage, control, be employed by,
participate in, or be connected in any manner with the ownership, management,
operation or control of any business conducted by the Company or any of subsidiaries
or affiliates in the international wholesale voice, IP transit, voice over
internet protocol or global roaming markets (“Competitive Businesses”).  Nothing in this paragraph shall prevent the
Executive from owning for passive investment purposes not intended to
circumvent this paragraph, less than one percent (1%) of the publicly traded
equity securities of any competing enterprise (so long as the Executive has no
power to manage, operate, advise, consult with or control the competing 

 

3

 

enterprise and no power, alone or in conjunction with other affiliated
parties, to select a director, general partner, or similar governing official
of the competing enterprise other than in connection with the normal and
customary voting powers afforded the Executive in connection with any
permissible equity ownership).  The
Executive acknowledges that the foregoing restrictions placed upon him are
necessary and reasonable in scope and duration to adequately protect the
Company’s and any of its affiliates’ or subsidiaries’ interests and the
goodwill of the Company and any of its affiliates or subsidiaries and are a
material inducement for the Company to retain the Executive’s services.

 

b)                                     Non-Solicitation.  The Executive agrees that the Executive will
not, without the prior written consent of the Company, directly or indirectly,
whether for the Executive’s own account or the account of any other person (i)
at any time during the Term, for any period in which the Executive is receiving
payments pursuant to Section 6 and for six (6) months after the expiration of
the Term: solicit, employ, or otherwise engage as an employee, independent
contractor, or otherwise, any person who is or was an employee of the Company,
or any of their affiliates or subsidiaries, at any time during the twelve (12)
month period preceding such solicitation or employment or any manner induce or
attempt to induce any such employee to terminate his employment with the
Company or any of its affiliates or subsidiaries and become associated with
Competitive Businesses; or (ii) at any time during the Term, for any period in
which the Executive is receiving payments pursuant to Section 6 and for six (6)
months after the expiration of the Term, interfere with the relationship of any
person who is a contractor, supplier, or customer of the Company, or any of its
affiliates or subsidiaries.

 

c)                                      Confidentiality.  The Executive acknowledges that prior to the
Term he has acquired, and during the Term the Executive will acquire,
Confidential Information (as defined herein) regarding the business of the
Company and its affiliates and subsidiaries. 
Accordingly, the Executive agrees that, without the prior written
consent of the Company, he will not, at any time, either during or after the
Term, disclose to any unauthorized person or otherwise use any such
Confidential Information for any reason other than the Company’s or any of its
affiliates’ or subsidiaries’ business. 
For this purpose, Confidential Information means non-public information
concerning the financial data, business strategies, product development (and
proprietary product data), customer lists, marketing plans, and other
proprietary information concerning the Company and its subsidiaries and
affiliates, except for specific items that have become publicly available other
than as a result of the Executive’s breach of this Agreement.  The Executive further agrees that he will
abide by any confidentiality provisions applicable to affiliates of the Company
under the Purchase Agreement and the confidentiality provisions applicable to
TLGB and its Executives contained in the letter agreement between Cerberus and
Teleglobe Inc., dated July 24, 2002.

 

d)                                     Remedy for
Breach.  The Executive hereby
acknowledges that the provisions of this paragraph are reasonable and necessary
for the protection of the Company, the and its subsidiaries and
affiliates.  The Executive further
acknowledges that the Company and its subsidiaries and affiliates will be
irreparably harmed if such covenants are not specifically enforced.  Accordingly, the Executive agrees that, in
addition to any other relief to which the Company may be entitled, including
claims for damages, the Company will be entitled to seek and obtain injunctive
relief (without the requirement of any bond) from a court of competent
jurisdiction for the purposes of restraining the Executive from an actual or
threatened breach of 

 

4

 

such covenants.  In addition,
without limiting the Company’s remedies for any breach of any restriction on
the Executive set forth in this paragraph, except as required by law, if the
Executive breaches any of the covenants applicable to the Executive in this
paragraph, as reasonably determined by the Company in good faith, the Company will
have no obligation to pay any amounts that remain payable by the Company to the
Executive, including, but not limited to, the amounts under Section 6
hereof.  If any of the rights or
restrictions contained in this paragraph shall be deemed to be unenforceable by
reason of the extent, duration or geographical scope of such rights or
restrictions, the parties hereby agree that a court of competent jurisdiction
shall reduce such extent, duration and geographical scope and enforce such
right or restriction in its reduced form for all purposes in the manner
contemplated hereby; provided  that such extent, duration and
geographical scope shall only be reduced to the extent necessary in order to
make such right or restriction enforceable.

 

6)                                      Termination.

 

a)                                      Death or
Disability.  The Agreement shall
terminate immediately upon the Executive’s death or Disability.  For the purposes of this Agreement,
“Disability” means a determination by the Company, in accordance with
applicable law that, as a result of a physical or mental injury or illness, the
Executive is unable to perform the essential functions of his duties with or
without reasonable accommodation.  If
the Executive’s services are terminated as a result of a death or Disability,
the Executive (or his legal representatives) shall receive (i) any unpaid Base
Salary to the date of termination and (ii) any tax equalization amount
calculated under Section 4 hereof.

 

b)                                     Termination for
Cause.  Upon delivery of written
notice of termination for “Cause” (as defined below) from the Company to the
Executive, the Agreement shall terminate immediately.  For the purposes of this Agreement, “Cause” means (i) commission
of a felony by the Executive, (ii) acts of dishonesty by the Executive
resulting or intending to result in personal gain or enrichment at the expense
of the Company or any of its affiliates or subsidiaries, (iii) the
Executive’s material breach of this Agreement, including, but not limited to, a
breach of his representations set forth in Section 8 of this Agreement, (iv)
the Executive’s contravention of specific written lawful directions from CEO or
the Board, (v) conduct by the Executive in connection with his duties hereunder
that is fraudulent, unlawful, or negligent, or (vi) misconduct by the Executive
which seriously discredits or damages the Company or any of its affiliates or
subsidiaries.  If the Executive is
terminated for Cause during the Term, the Executive shall receive (i) any
unpaid Base Salary to the date of termination and (ii) any tax equalization
amount calculated under Section 4 hereof on compensation paid to the date of
termination.

 

c)                                      Termination
Without Cause or for Good Reason. 
The Company may terminate Executive’s employment without Cause at any
time without notice and the Executive may terminate his employment with Good
Reason upon thirty (30) days prior written notice to the Company.  If during the Term the Company terminates
the Executive without Cause or the Executive terminates his employment with
Good Reason (as defined below), the Executive shall receive (i) monthly
installments of Base Salary for the lesser of (a) the remaining Term had the
Executive remain employed or (b) twelve (12) months from the date of
termination (subject to compliance with the provisions of Section 5 hereof) and
(ii) any tax equalization amount calculated under Section 4 hereof.

 

5

 

For the
purposes of this Agreement, “Good Reason” means the occurrence of any of the
following without the Executive’s written consent:  (i) action by the Company that results in a material diminution
in the Executive’s position, authority, duties or responsibilities; (ii) the
Company’s failure to make any payment or provide any award or benefit to the
Executive under this Agreement pursuant to the terms hereof; or (iii) the
Company’s breach of any material term of this Agreement; provided that
the Company shall have failed to cure the deficiency that results in “Good
Reason” within fifteen (15) business days after receipt of written notice from
the Executive specifying the nature of the deficiency in reasonable detail.

 

d)                                     Voluntary
Termination Without Good Reason. 
The Executive may terminate his employment during the Term upon thirty
(30) days prior written notice to the Company without Good Reason.  If during the Term the Executive terminates
his employment without Good Reason, the Executive shall receive (i) any unpaid
Base Salary to the date of termination and (ii) any tax equalization amount
calculated under Section 4 hereof.

 

e)                                      Expiration
of Term.  Upon the expiration of the
Term specified in Section 1 without an earlier termination pursuant to this
Section 6, this Agreement shall terminate without further action by the
Executive or the Company.  Upon such
expiration, the Executive shall receive (i) any unpaid Base Salary to the date
of expiration and (ii) any tax equalization amount calculated under Section 4
hereof.

 

7)                                      Disclosure.  The Executive shall disclose immediately to
the Company the existence of any relationship between the Executive and any
other entity that creates or may create a conflict of interest that may affect
the independent professional judgment of the Executive in carrying out his or
its duties under this Agreement.

 

8)                                      Representation.  The Executive expressly represents and
warrants to the Company that as of the date of his signing this Agreement that
he is not a party to any contract or agreement which will or may restrict in
any way his or its ability to fully perform his or its duties and responsibilities
under this Agreement.

 

9)                                      Governing Law.  This Agreement will be governed by and
construed in accordance with the laws of Bermuda, without giving effect to the
principles of conflicts of laws.

 

10)                                Ownership of  Property.  All written materials, records and documents made by the
Executive or coming into his possession before or during the Term concerning
the Company or any of its affiliates or subsidiaries and all tangible items
provided to the Executive by Teleglobe, the Company or any of its affiliates or
subsidiaries before or during the Term shall be the sole property of the
Company or any of its affiliates or subsidiaries, as applicable, and, upon the
termination of the Agreement or upon the request of the Company during the
Term, the Executive shall promptly deliver the same to the Company.

 

11)                                Notices.  All notices and other communications that
are required or may be given under this Agreement must be in writing and will
be deemed to have been duly given when delivered in person, upon delivery by a
nationally recognized overnight courier service, or by facsimile to the party
to whom the notice is being given, as follows:

 

6

 

If to the
Company:

 

Teleglobe
Bermuda Holdings Ltd.

P.O. Box HM 1154

10 Queen Street

Hamilton HM EX, Bermuda

Attention:  Board of Directors

(441) 296-4856 telephone

(441) 292-6900 facsimile

 

with a copy
to:

 

Cerberus
Capital Management, L.P.

299 Park Avenue

New York, New York 10171

Attention:  Lenard Tessler

(212) 909-1464 telephone

(212) 755-3009 facsimile

 

and

 

Attention:  Seth Plattus

(212) 891-2120

(212) 891-1541

 

with a copy
to:

 

Schulte Roth
& Zabel LLP

919 Third Avenue

New York, New York  10022

Attention:  Stuart D. Freedman, Esq.

(212) 756-2000 telephone

(212) 593-5955 facsimile

 

If to the
Executive:

 

Mr. Richard
Willett

c/o Teleglobe Bermuda Holdings Ltd.

P.O. Box HM 1154

10 Queen Street

Hamilton HM EX, Bermuda

(441) 296-4856 telephone

(441) 292-6900 facsimile

 

Either party may change the
address provided above by delivering written notice of such change of address
to the other party.

 

12)                                Assignability;
Successors.  This Agreement shall
inure to the benefit of and be binding upon the successors of the Company.  Neither the Executive nor the Company may
assign this Agreement without the express written consent of the other party;
provided, however, 

 

7

 

that the Company’s obligations under this Agreement shall be the
binding legal obligations of any successor of the Company, and, provided
further that, the Executive hereby agrees that the Company may assign this
Agreement to any of its affiliates or subsidiaries at any time without the
consent of the Executive.

 

13)                                Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument.

 

14)                                Entire Agreement.  The Agreement contains the entire agreement
between the parties with respect to the subject matter of this Agreement and
supersedes all prior agreements and understandings, oral or written, between
the parties with respect to the subject matter of this Agreement.

 

15)                                Waiver and
Amendments.  This Agreement may be
amended, modified, superseded, canceled, renewed or extended, and the terms and
conditions hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any right, power or privilege
hereunder, nor any single or partial exercise of any right, power or privilege
hereunder, preclude any other or further exercise thereof or the exercise of
any other right, power or privilege hereunder.

 

16)                                Severability.  In the event that any one or more of the
terms, conditions or provisions of this Agreement is held invalid, illegal or
unenforceable, that term, condition or provision shall be severed and the remaining
terms, conditions and provisions shall remain binding and effective.

 

8

 

IN WITNESS WHEREOF, the parties
have executed the Agreement as of the date and year first above written.

 

	
   

  	
   

  	
  TELEGLOBE
  BERMUDA HOLDINGS LTD.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Lenard
  Tessler

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Lenard
  Tessler

  
	
   

  	
   

  	
   

  	
  Title:
  Chairman

  
					

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Richard
  Willett

  	
   

  
	
   

  	
  RICHARD
  WILLETT

  

 

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Exhibit 10.3  

 
 

FIRST AMENDMENT    
    

        FIRST AMENDMENT, dated as of January 22, 2004 (this "Amendment"), to the Credit Agreement, dated as of
September 24, 2003 (the "Credit Agreement"), among INFRASOURCE SERVICES, INC. (formerly known as Dearborn Holdings Corporation), a
Delaware corporation ("Holdings"), INFRASOURCE INCORPORATED, a Delaware corporation (the "Borrower"),
the several banks and other financial institutions or entities from time to time parties thereto (the "Lenders"), LASALLE BANK NATIONAL ASSOCIATION, as
syndication agent, and BARCLAYS BANK PLC, as administrative agent (the "Administrative Agent"). 

W I T N E S S E T H:  

        WHEREAS, the Borrower has requested that the Lenders agree to amend certain provisions of the Credit Agreement upon the terms and subject to the conditions set
forth herein; and 

        WHEREAS,
the Lenders have agreed to such amendments only upon the terms and subject to the conditions set forth herein; 

        NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and in the Credit Agreement, the parties hereto hereby agree as follows: 

        1.    Defined Terms.    Unless otherwise defined herein, all capitalized terms used herein shall have the meanings
given to them in the Credit Agreement. 

        2.    Amendment to Section 1.1 (Defined Terms).    (a) Section 1.1 of the Credit Agreement is
hereby amended by amending the following definition to read in its entirety as follows: 

        "'L/C Commitment': $35,000,000." 

        (b)   Section 1.1
of the Credit Agreement is hereby further amended by deleting the amount "$40,000,000" from the last sentence of the definition of "Revolving
Commitment" and substituting therefor the amount "$50,000,000". 

        (c)   Section 1.1
of the Credit Agreement is hereby amended by adding thereto the following defined terms in appropriate alphabetical order: 

        "'First Amendment': the First Amendment, dated as of January 22, 2004, to this Agreement." 

        "'First Amendment Effective Date': the "Amendment Effective Date", as defined in the First
Amendment." 

        "'Maslonka': Maslonka & Associates, Inc., an Arizona corporation." 

        "'Maslonka Acquisition': the acquisition by the Borrower of all the issued and outstanding Capital Stock of Maslonka pursuant to an
Agreement and Plan of Merger, dated as of January 16, 2004, among the Borrower, Holdings, MAI Acquisition, Inc., Maslonka and the sellers named therein." 

        "'Maslonka Convertible Indebtedness': Indebtedness of Holdings in an aggregate principal amount not to exceed $33,000,000 to be issued at
par to certain of the shareholders of Holdings at or about the time of completion of the Maslonka Acquisition, the proceeds of which shall be used to finance the Maslonka Acquisition, which
Indebtedness shall be evidenced by one or more promissory notes in substantially the form of the promissory note attached as Exhibit A to the First Amendment." 

 

        3.    Amendment to Section 2.17 (Pro Rata Treatment and Payments).    Section 2.17(a) of the Credit
Agreement is hereby amended to read in its entirety as follows: 

        "(a)
Each borrowing by the Borrower from the Lenders hereunder, each payment by the Borrower on account of any commitment fee and any reduction of the Commitments of the Lenders shall be
made pro rata according to the respective Term Percentages or, unless each Revolving Lender adversely affected thereby otherwise agrees, Revolving
Percentages, as the case may be, of the relevant Lenders." 

        4.    Amendment to Section 6.10 (Additional Collateral, etc.).    Section 6.10(c) of the Credit
Agreement is hereby amended by adding at the end thereof the following sentence: 

        "The
provisions of this Section 6.10(c) shall not apply (a) for a period commencing on the First Amendment Effective Date and ending on the date which is six months
thereafter, to the new Subsidiary Utility Locate & Mapping Services, Inc., whether or not such entity became or becomes a new Subsidiary before or after the First Amendment Effective
Date or (b) for a period commencing on the First Amendment Effective Date and ending on the earlier of the date which is two months thereafter and the date upon which the Maslonka Acquisition
is completed, to the new Subsidiary formed to effect the Maslonka Acquisition, MAI Acquisition Inc., an Arizona corporation." 

        5.    Amendment to Section 7.2 (Indebtedness).    Section 7.2 of the Credit Agreement is hereby amended
by (a) changing Section 7.2(j) to become Section 7.2(k), (b) deleting the word "and" from the end of Section 7.2(i) and (c) adding thereto a new
Section 7.2(j) to read in its entirety as follows: 

        "(j)
Indebtedness of Holdings in respect of the Maslonka Convertible Indebtedness; and" 

        Amendment
to Section 7.3 (Liens). Section 7.3 of the Credit Agreement is hereby amended (a) by (i) changing Section 7.3(t) to become
Section 7.3(u), (ii) deleting the word "and" from the end of Section 7.3(s) and (iii) adding thereto a new Section 7.3(t) to read in its entirety as follows: 

        "(t)
Liens in existence on the date of consummation of the Maslonka Acquisition on contracts entered into with its customers by Maslonka, and on all assets related thereto and to the
projects that are the subject thereof, to secure the obligations of Maslonka in respect of surety bonds issued on its behalf to assure performance of such contracts; and" 

        and
(b) deleting paragraph (r) therefrom and substituting the following in its place: 

        "Liens
on cash reserves securing Indebtedness of the Borrower and its Subsidiaries in respect of letters of credit or surety bonds permitted by Section 7.2(f); and Liens on cash
reserves securing other obligations of the Borrower and its Subsidiaries in respect of letters of credit or surety bonds arising in the ordinary course of business, to the extent not provided to
secure the repayment of other Indebtedness of the Borrower and its Subsidiaries;" 

        Amendment
to Section 7.6 (Restricted Payments). Section 7.6(c) of the Credit Agreement is hereby amended by deleting the amount "$250,000" from clause (i) thereof
and substituting therefor the amount "$500,000". 

        6.    Amendment to Section 7.7 (Capital Expenditures).    (a) Section 7.7 of the Credit Agreement
is hereby amended by deleting the amount "$9,000,000" from clause (c) thereof and substituting therefor the amount "$15,000,000". 

2

 

        (b)   Section 7.7
of the Credit Agreement is hereby further amended by deleting the table contained therein in its entirety and by substituting the following in its
place: 

	"Fiscal Year
	 	Capital Expenditures
	 
	2003	 	$	22,000,000	 
	

2004	
 	
$	

31,650,000	
 
	

2005	
 	
$	

34,350,000	
 
	

2006	
 	
$	

37,200,000	
 
	

2007	
 	
$	

39,750,000	
 
	

2008	
 	
$	

41,100,000	
 
	

2009	
 	
$	

42,450,000	
 
	

2010	
 	
$	

43,950,000	
"

        7.    Amendment to Section 7.8 (Investments).    Section 7.8 of the Credit Agreement is hereby amended
by (a) deleting the word "and" from the end of Section 7.8(l), (b) deleting the "." from the end of Section 7.8(m) and substituting therefor the word "and" and
(c) adding thereto a new Section 7.8(n) to read in its entirety as follows: 

        "(n)
the Maslonka Acquisition." 

        8.    Amendment to Section 7.10 (Transactions with Affiliates).    Section 7.10 of the Credit Agreement
is hereby amended by (a) deleting the word "and" from the end of clause (ii) and substituting therefore a ",", (b) deleting the "." from the end of clause (iii) and
substituting therefore the word "and" and (c) adding thereto a new clause (iv) to read in its entirety as follows: 

        "(iv) the
issuance to the Permitted Investors of the Maslonka Convertible Indebtedness." 

        9.    Amendment to Section 8 (Events of Default).    Section 8(m) of the Credit Agreement is hereby
amended by adding thereto, immediately prior to clause (v) thereof, a new clause (u) to read in its entirety as follows: 

        "(u)
Indebtedness of Holdings in respect of the Maslonka Convertible Indebtedness," 

        10.    Amendment to Schedule 1.1A.    Schedule 1.1A of the Credit Agreement is hereby amended by
deleting the portion of the table contained therein which lists the Revolving Commitments in its entirety and by substituting the following in its place: 

	Lender Name
 
	 	Revolving Commitment

	Barclays Bank PLC	 	$	20,000,000.00
	

LaSalle Bank National Association	
 	
$	

20,000,000.00
	

Lehman Commercial Paper, Inc.	
 	
$	

5,000,000.00
	

Credit Suisse First Boston	
 	
$	

2,500,000.00
	

Merrill Lynch Capital Corp.	
 	
$	

2,500,000.00
	
Total	
 	
$	

50,000,000.00

        11.    Addition of New Lenders.    By executing and delivering this Amendment, each of Lehman Commercial
Paper, Inc., Credit Suisse First Boston and Merrill Lynch Capital Corp. hereby becomes a party to the Credit Agreement as a Revolving Lender thereunder with the same force and effect as if 

3

 

originally
named therein as a Revolving Lender and, without limiting the generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Revolving Lender thereunder. 

        12.    Representations and Warranties.    

        (a)    Credit Agreement Representations and Warranties.    On and as of the date hereof, Holdings and the Borrower
hereby confirm, reaffirm and restate the representations and warranties set forth in Section 4 of the Credit Agreement mutatis mutandis, except to the extent that such representations and
warranties expressly relate to a specific earlier date in which case Holdings and the Borrower hereby confirm, reaffirm and restate such representations and warranties as of such earlier date. 

        (b)    Corporate Power; Authorization; Enforceable Obligations.    Each Loan Party has the corporate power and
authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party, as amended, in the case of the Credit Agreement, by this Amendment. Each Loan Party has taken
all necessary steps to authorize the execution, delivery and performance of Loan Documents to which it is a party, as amended, in the case of the Credit Agreement, by this Amendment. The Credit
Agreement, as amended by this Amendment, continues to constitute a legal, valid and binding obligation of each Loan Party party thereto, enforceable against each such Loan Party in accordance with its
terms, except as enforceability maybe limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or at law). 

        (c)    No Legal Bar.    The execution, delivery and performance of this Amendment and any other related documents will
not violate any Requirement of Law or any material Contractual Obligation of any Group Member and will not result in, or require, the creation or imposition of any Lien on any of their respective
properties or revenue pursuant to any Requirement of Law or any such material Contractual Obligation (other than the Liens created by the Security Documents). 

        13.    Conditions to Effectiveness.    This Amendment shall become effective on the date (the
"Amendment Effective Date") upon which the Administrative Agent shall have received: (i) this Amendment, executed by the Required Lenders, the
Issuing Lender, Lehman Commercial Paper, Inc., Credit Suisse First Boston, Merrill Lynch Capital Corp., the Borrower, Holdings and each Subsidiary Guarantor, (ii) a certificate executed
on behalf of the Borrower by a duly authorized officer thereof, dated the Amendment Effective Date, attaching the resolutions of the Board of Directors of the Borrower authorizing the execution,
delivery and performance by the Borrower of this Amendment and (iii) payment of all expenses of the Administrative Agent and the Lenders for which invoices have been presented (including the
invoices of Simpson Thacher & Bartlett LLP) on or before the Amendment Effective Date. 

        14.    Continuing Effects.    Except as expressly amended hereby, the Credit Agreement shall continue to be and shall
remain in full force and effect in accordance with its terms. 

        15.    Expenses.    The Borrower agrees to pay and reimburse the Administrative Agent for all of its reasonable
out-of-pocket costs and expenses incurred in connection with the negotiation, preparation, execution and delivery of this Amendment, including the reasonable fees and expenses
of counsel. 

        16.    Counterparts.    This Amendment may be executed on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Amendment by facsimile transmission shall be effective as delivery
of a manually executed counterpart hereof. 

4

 

        17.    GOVERNING LAW.    THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

5

        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above
written. 

	 	 	INFRASOURCE INCORPORATED
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Name:	David Helwig
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	 	INFRASOURCE SERVICES, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Name:	David Helwig
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	 	BARCLAYS BANK PLC, as Administrative Agent

and as a Lender
	

 	
 	

By:	

/s/  JOHN GIANNONE      

	 	 	Name:	John Giannone
	 	 	Title:	Director
	 	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION,

as Syndication Agent and as a Lender and

the Issuing Lender
	

 	
 	

By:	

/s/  JAMES P. BAHLEDA      

	 	 	Name:	James P. Bahleda
	 	 	Title:	Assistant Vice President
	 	 	 	 

	 	 	 	 
	 	 	INFRASOURCE INCORPORATED

FIRST AMENDMENT
	

 	
 	

Lehman Commercial Paper, Inc.

	 	 	 	 
	

 	
 	

By:	

/s/  FRANCIS CHANG      

	 	 	Name:	Francis Chang
	 	 	Title:	Vice President
	 	 	 	 

	 	 	 	 
	 	 	INFRASOURCE INCORPORATED

FIRST AMENDMENT
	

 	
 	

CREDIT SUISSE FIRST BOSTON,

Acting Through Its Cayman Island Branch

	 	 	 	 
	

 	
 	

By:	

/s/  JAMES P. MORAN      

	 	 	Name:	James P. Moran
	 	 	Title:	Director
	 	 	 	 
	

 	
 	

By:	

/s/  CASSANDRA DROOGAN      

	 	 	Name:	Cassandra Droogan
	 	 	Title:	Associate
	 	 	 	 

	 	 	 	 
	 	 	INFRASOURCE INCORPORATED

FIRST AMENDMENT
	

 	
 	

Merrill Lynch Capital Corporation

	 	 	 	 
	

 	
 	

By:	

/s/  CAROL FEELEY      

	 	 	Name:	Carol Feeley
	 	 	Title:	Vice President
	 	 	 	 

 
 

ACKNOWLEDGEMENT AND CONSENT    
    

        Each of the undersigned Subsidiary Guarantors hereby acknowledges and consents to the foregoing First Amendment. 

	 	 	INFRASOURCE CORPORATE SERVICES, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	President
	 	 	 	 
	 	 	DASHIELL HOLDINGS CORPORATION
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	DASHIELL CORPORATION
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	DACON CORPORATION
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	ELECTRIC SERVICES, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	 	 

	 	 	M.J. ELECTRIC, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	BLAIR PARK SERVICES, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	OSP CONSULTANTS, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	President
	 	 	 	 
	 	 	INTERNATIONAL COMMUNICATIONS SERVICES, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	President
	 	 	 	 
	 	 	OSP, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	President
	 	 	 	 
	 	 	OSP TELCOM, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	President
	 	 	 	 
	 	 	 	 

	 	 	RJE TELECOM, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	SUNESYS, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	SUNESYS OF VIRGINIA, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	CHOWNS COMMUNICATIONS, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	TRINITY INDUSTRIES, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	 	 

	 	 	MRM TECHNICAL GROUP, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	ACONITE CORPORATION
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	GAS DISTRIBUTION CONTRACTORS, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	MECHANICAL SPECIALTIES, INCORPORATED
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	MID-ATLANTIC PIPELINERS, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	MUELLER DISTRIBUTION CONTRACTORS, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	MUELLER PIPELINERS, INC.
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 
	 	 	INFRASOURCE UNDERGROUND CONSTRUCTION, LLC
	

 	
 	

By:	

/s/  DAVID HELWIG      

	 	 	Title:	Secretary
	 	 	 	 

QuickLinks

FIRST AMENDMENT

ACKNOWLEDGEMENT AND CONSENT

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