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                                                                    EXHIBIT 10.1

                           RESTRICTED STOCK AGREEMENT

      This Restricted Stock Agreement (this "Agreement") is made as of this 4th
day of May, 2006 (the "Effective Date") between Simmons Company, a Delaware
corporation (the "Company"), and the undersigned (the "Restricted Shareholder").
Certain capitalized terms used herein are defined in Section 7 hereof.

      WHEREAS, the Company believes it to be in the best interests of the
Company and its shareholders to take action to promote work-force stability, to
reward performance and otherwise align the Restricted Shareholder's interests
with those of the Company;

      WHEREAS, accordingly, the Company has determined to issue restricted stock
to the Restricted Shareholder in accordance with the provisions of this
Agreement; and

      WHEREAS, the Company desires to be assured that the confidential
information and goodwill of the Company will be preserved for the exclusive
benefit of the Company.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

      1. PURCHASE AND SALE OF RESTRICTED SHAREHOLDER STOCK.

      (a) Upon execution of this Agreement and payment of the Original Purchase
Price (as hereinafter defined), the Company will issue to the Restricted
Shareholder that number of shares of Class B Common Stock, par value $0.01 per
share, of the Company (the "Class B Common Stock") set forth below such
Restricted Shareholder's name on the signature page attached hereto, for a
purchase price of $0.01 per share (the "Original Purchase Price"). All of such
shares of Class B Common Stock purchased by the Restricted Shareholder pursuant
to this Agreement are referred to herein as "Restricted Shareholder Stock." To
secure the Company's rights under the Repurchase Option in Section 3, the
Company will retain possession of the certificates representing the Restricted
Shareholder Stock and will provide the Restricted Shareholder with copies
thereof.

      (b) The parties agree that the fair market value of each share of
Restricted Stock as of the date hereof is $1.95. The Restricted Shareholder, in
his or her sole discretion, may make an effective election with the Internal
Revenue Service (the "IRS") under Section 83(b) of the Code and the regulations
promulgated thereunder. The Restricted Shareholder understands that under
applicable law such election must be filed with the IRS no later than thirty
(30) days after any acquisition of the Restricted Shareholder Stock to be
effective. If the Restricted Shareholder files an effective election, the excess
of the fair market value of the Restricted Shareholder Stock (which the IRS may
assert is different from the fair market value determined by the parties)
covered by such election over the amount paid by the Restricted Shareholder for
the stock will be treated as ordinary income received by the Restricted
Shareholder, and the Company or its subsidiary, Simmons Bedding Company, will
withhold from the Restricted

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Shareholder's compensation all amounts required under applicable law. If the
Restricted Shareholder does not file an effective election, all appreciation on
the Restricted Shareholder Stock from the date of issuance will generally be
taxable as ordinary income when such stock vests pursuant to this Agreement.

      (c) In connection with the acquisition of the Restricted Shareholder
Stock, the Restricted Shareholder represents and warrants to the Company that:

            (i) the Restricted Shareholder Stock to be acquired by the
   Restricted Shareholder will be acquired for the Restricted Shareholder's own
   account, for investment only and not with a view to, or intention of,
   distribution thereof in violation of the Securities Act, or any applicable
   state securities laws, and the Restricted Shareholder Stock will not be
   disposed of in contravention of the Securities Act or any applicable state
   securities laws or this Agreement or the Securityholders' Agreement;

            (ii) the Restricted Shareholder, either alone or acting in
   conjunction with a Purchaser Representative (as such term is defined in
   Regulation D of the Securities Act), generally has such knowledge and
   experience in business and financial matters and with respect to investments
   in securities of privately held companies so as to enable the Restricted
   Shareholder to understand and evaluate the risks and benefits of his or her
   investment in the Restricted Shareholder Stock;

            (iii) the Restricted Shareholder has no need for liquidity in his or
   her investment in the Restricted Shareholder Stock and is able to bear the
   economic risk of his or her investment in the Restricted Shareholder Stock
   for an indefinite period of time and understands that the Restricted
   Shareholder Stock has not been registered or qualified under the Securities
   Act or any applicable state securities laws, by reason of the issuance of the
   Restricted Shareholder Stock in a transaction exempt from the registration
   and qualification requirements of the Securities Act or such state securities
   laws and, therefore, cannot be sold unless subsequently registered or
   qualified under the Securities Act or such state securities laws or an
   exemption from such registration or qualification is available;

            (iv) the Restricted Shareholder acknowledges that he or she is aware
   that the Shares may not be sold pursuant to Rule 144 promulgated under the
   Securities Act unless all of the conditions of that Rule are met. Among the
   current conditions for use of Rule 144 by certain holders is the availability
   to the public of current information about the Company. Such information is
   not now available, and the Company has no current plans to make such
   information available;

            (v) the Restricted Shareholder has had an opportunity to ask
   questions and receive answers concerning the terms and conditions of the
   offering of the Restricted Shareholder Stock and has had full access to or
   been provided with such other information concerning the Company as the
   Restricted Shareholder has requested; and

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            (vi) This Agreement constitutes the legal, valid and binding
   obligation of the Restricted Shareholder, enforceable in accordance with its
   terms, and the execution, delivery and performance of this Agreement by the
   Restricted Shareholder does not and will not conflict with, violate or cause
   a breach of any agreement, contract or instrument to which the Restricted
   Shareholder is a party or any judgment, order or decree to which the
   Restricted Shareholder is subject.

      (d) As an inducement to the Company to issue the Restricted Shareholder
Stock to the Restricted Shareholder and as a condition thereto, the Restricted
Shareholder acknowledges and agrees that:

            (i) neither the issuance of the Restricted Shareholder Stock to the
   Restricted Shareholder nor any provision contained herein shall entitle the
   Restricted Shareholder to remain on the Board of or in the employment of the
   Company or any of its Subsidiaries, if any, or affect the rights of the
   Company, its shareholders or any of its Subsidiaries to terminate the
   Restricted Shareholder's service to or employment with the Company or any of
   its Subsidiaries at any time for any reason; and

            (ii) except as provided in any other agreement between the Company
   and/or Simmons Bedding Company or any Subsidiary thereof and the Restricted
   Shareholder, the Company shall have no duty or obligation to disclose to the
   Restricted Shareholder, and the Restricted Shareholder shall have no right to
   be advised of, any material information regarding the Company and its
   Subsidiaries, if any, at any time prior to, upon or in connection with the
   forfeiture of the Restricted Shareholder Stock upon the termination of the
   Restricted Shareholder's service to or employment with the Company or a
   Subsidiary thereof.

      (e) In connection with the issuance and sale by the Company to the
Restricted Shareholder of the Restricted Shareholder Stock, the Company
represents and warrants that:

            (i) the Company is a corporation duly organized, validly existing
   and in good standing under the laws of the jurisdiction of its incorporation
   and has all requisite corporate power and authority to own, lease and operate
   the assets used in its business, to carry on its business as presently
   conducted, to enter into this Agreement, to perform its obligations
   hereunder, and to consummate the transactions contemplated hereby;

            (ii) the Company has taken all corporate action necessary to
   authorize its execution and delivery of this Agreement, its performance of
   its obligations thereunder, and its consummation of the transactions
   contemplated thereby;

            (iii) this Agreement constitutes a valid and binding obligation of
   the Company, enforceable in accordance with its terms; and

            (iv) the Restricted Shareholder Stock has been duly authorized and
   validly issued, fully paid and nonassessable and will be free of all
   Encumbrances created

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   by or through the Company. For purposes of this clause, "Encumbrance" means
   any security interest, mortgage, lien, pledge, charge, easement, reservation,
   restriction, or similar right of any third party.

      2. VESTING OF RESTRICTED SHAREHOLDER STOCK.

      (a) General.

        (i) Vesting. The shares of Restricted Shareholder Stock granted
hereunder (the "Shares") will be deemed "vested" (the "Vested Shares") as
follows: Shares shall become Vested Shares in accordance with this Section 2,
based upon the Company's achievement of the Consolidated Adjusted EBITDA targets
set forth below (each, the "Target EBITDA") for each of the Company's fiscal
years ending December 30, 2006, December 29, 2007, December 27, 2008 and
December 26, 2009 (the "Measurement Years").

                                 EBITDA Targets
                              (dollars in millions)

<TABLE>
<CAPTION>
MEASUREMENT                       CUMULATIVE TARGET     90% OF TARGET     90% OF CUMULATIVE       ELIGIBLE
   YEARS        TARGET EBITDA           EBITDA              EBITDA          TARGET EBITDA         SHARES
-----------     -------------     -----------------     -------------     -----------------   -----------------
<S>             <C>               <C>                   <C>               <C>                 <C>
    2006                                                                                      25% of Restricted
                                                                                              Shareholder Stock

    2007                                                                                      25% of Restricted
                                                                                              Shareholder Stock

    2008                                                                                      25% of Restricted
                                                                                              Shareholder Stock

    2009                                                                                      25% of Restricted
                                                                                              Shareholder Stock
</TABLE>

The minimum Target EBITDA numbers set forth above shall be equitably adjusted by
the Board for acquisitions and dispositions made by the Company (whether by
purchase or sale of assets or stock, merger, consolidation or otherwise) and
such adjustments may take into account the pro forma annual Consolidated
Adjusted EBITDA of any acquired business, as determined by the Board.

            (A) Performance Based Vesting. At the end of each Measurement Year,
on the Measurement Date, the percentage of Shares set forth above shall be
eligible to vest (the "Eligible Shares"). On each Measurement Date, 50% of the
Eligible Shares shall become Vested Shares if at least 90% of the Target EBITDA
amount was met for the prior Measurement Year. If more than 90% of the Target
EBITDA amount was met for the prior Measurement Year, then the Eligible Shares
shall become Vested Shares on a straight line basis such that an

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additional 5% of Eligible Shares shall become Vested Shares for each 1% that
actual Consolidated Adjusted EBITDA exceeds 90% of the Target EBITDA amount.

        (ii) Change of Control.

            (A) Shares that are not Vested Shares will accelerate as set forth
below upon a Change of Control solely if the Company (a) achieves at least 90%
of the Target EBITDA for the Measurement Year immediately preceding the year in
which the Change of Control occurs, and (b) the actual Consolidated Adjusted
EBITDA for the Measurement Year immediately preceding the year in which the
Change of Control occurs exceeds the actual Consolidated Adjusted EBITDA for the
preceding year. If (x) the conditions set forth in clauses (a) and (b) above are
met, and (y) the Company achieves 90% of the Cumulative Target EBITDA above for
the Measurement Year completed immediately prior to the Change of Control, then
50% of the Shares that were Eligible Shares but which did not previously become
Vested Shares (the "Missed Shares") and 50% of the Shares that are not yet
Eligible Shares shall become Vested Shares. If the Company achieves more than
90% of the Cumulative Target EBITDA above for the immediately preceding
Measurement Year, then a number of Missed Shares and Shares that are not yet
Eligible Shares will become Vested Shares, determined on a straight line basis
such that an additional 5% of the Missed Shares and 5% of the Shares that are
not yet Eligible Shares will become Vested Shares for each 1% that actual
Consolidated Adjusted EBITDA for the immediately preceding Measurement Year
exceeds 90% of the Cumulative Target EBITDA set forth above.

            (B) Notwithstanding the foregoing paragraph, Shares that are not
Vested Shares will accelerate upon a Change of Control which occurs in the
Measurement Year ending December 30, 2006 as follows: if the Company achieves
90% of the 2006 Year to Date Target EBITDA (as defined below) for the month
completed immediately prior to the Change of Control, then 50% of the Shares
that are not yet Eligible Shares shall become Vested Shares. The Target EBITDA
for each month in 2006 is set forth below and the 2006 Year to Date Target
EBITDA represents the cumulative Target EBITDA for the period commencing January
1, 2006 and ending on the last day of such month (the "Year to Date Target
EBITDA"). If the Company achieves more than 90% of the 2006 Year to Date Target
EBITDA for the month completed immediately prior to the Change of Control, then
a number of Shares that are not yet Eligible Shares will become Vested Shares,
determined on a straight line basis such that an additional 5% of the Shares
that are not yet Eligible Shares will become Vested Shares for each 1% that
actual Consolidated Adjusted EBITDA for the period commencing January 1, 2006
and ending on the last day of the month immediately preceding the Change of
Control exceeds 90% of the 2006 Year to Date Target EBITDA.

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<TABLE>
<CAPTION>
                         2006 MONTHLY              2006 YEAR TO DATE
                         TARGET EBITDA                TARGET EBITDA
MONTH                 (DOLLARS IN MILLIONS)       (DOLLARS IN MILLIONS)
-----                 ---------------------       ---------------------
<S>                   <C>                         <C>
January
February
  March
  April
   May
  June
  July
 August
September
 October
November
December
</TABLE>

       (b) In the event the Restricted Shareholder ceases to serve on the Board
of, or be employed by the Company or any of its Subsidiaries on a full-time
basis for any reason, then (i) all Shares of Restricted Shareholder Stock shall
cease vesting effective as of the date upon which the Restricted Shareholder
ceases to so serve or be so employed (the "Termination Date") and, (ii) in the
event that the Company achieves the Target EBITDA with respect to the
Measurement Year in which such termination occurs, then the Eligible Shares with
respect to such year multiplied by a fraction, the numerator of which shall
equal the number of whole months during such year that the Restricted
Shareholder served on the Board or remained employed with the Company and the
denominator of which is 12, shall become Vested Shares as of the end of such
year.

       3. REPURCHASE OF SHARES.

       (a) In the event that the Restricted Shareholder ceases to serve on the
Board of, or be employed by the Company or any of its Subsidiaries on a
full-time basis for any reason, then all Shares of Restricted Shareholder Stock
(whether held by the Restricted Shareholder or by one or more of the Restricted
Shareholder's transferees) which as of the date of termination:

            (i) have not vested pursuant to Section 2 hereof, will be subject to
   repurchase by the Company, at its option (the "Non-Vested Repurchase
   Option"), for the

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   lower of the Original Purchase Price of the Restricted Shareholder Stock and
   Fair Market Value as of the date of repurchase;

            (ii) have vested pursuant to Section 2 hereof, will be subject to
   repurchase by the Company, at its option (the "Vested Repurchase Option"),
   for Fair Market Value as of the date of repurchase.

      (b) In the event of a Change of Control, then all Shares of Restricted
Shareholder Stock (whether held by the Restricted Shareholder or by one or more
of the Restricted Shareholder's transferees) which, as of the date of such
Change of Control, have not become Vested Shares pursuant to Section 2, will be
subject to repurchase by the Company, at its option (the "Non-Vested Change of
Control Repurchase Option") for the lower of the Original Purchase Price of the
Restricted Shareholder Stock and Fair Market Value.

      (c) The Non-Vested Change of Control Repurchase Option, together with the
Non-Vested Repurchase Option and the Vested Repurchase Option, are referred to
collectively as the "Repurchase Options." The Repurchase Options shall be
exercised by the Company, or its designee, from time to time, by delivering to
the Restricted Shareholder a written notice of exercise and a check in the
amount of the Original Purchase Price or Fair Market Value, as determined in
accordance with Sections 3(a) and (b) above. Upon delivery of such notice and
payment of the purchase price as described above, the Company, or its designee,
shall become the legal and beneficial owner of the Shares of Restricted
Shareholder Stock being repurchased and all rights and interest therein or
related thereto, and the Company, or its designee, shall have the right to
transfer to its own name the number of Shares of Restricted Shareholder Stock
being repurchased without further action by the Restricted Shareholder or any of
his or her transferees. If the Company or its designee elect to exercise the
repurchase rights pursuant to this Section 3 and the Restricted Shareholder or
his or her transferee fails to deliver the Shares of Restricted Shareholder
Stock in accordance with the terms hereof, the Company, or its designee, may, at
its option, in addition to all other remedies it may have, deposit the purchase
price in an escrow account administered by an independent third party (to be
held for the benefit of and payment over to the Restricted Shareholder or his or
her transferee in accordance herewith), whereupon the Company shall by written
notice to the Restricted Shareholder cancel on its books the certificates(s)
representing such Shares of Restricted Shareholder Stock registered in the name
of the Restricted Shareholder and all of the Restricted Shareholder's or his or
her transferee's right, title, and interest in and to such Shares of Restricted
Shareholder Stock shall terminate in all respects.

      (d) Notwithstanding the foregoing, if at any time the Company elects to
purchase any Class B Common Stock pursuant to this Section 3, the Company shall
pay the purchase price for the Class B Common Stock it purchases (i) first, by
offsetting indebtedness, if any, owing from such Restricted Shareholder to the
Company and (ii) then, by the Company's delivery of cash for the remainder of
the purchase price, if any, against delivery of the certificates or other
instruments representing the Class B Common Stock so purchased, duly endorsed;
provided that, if any such cash payment at the time such payment is required to
be made would result (A) in a violation of any law, statute, rule, regulation,
policy, order, writ, injunction, decree or judgment promulgated or entered by
any federal, state, local or foreign court or governmental

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authority applicable to the Company or any of its Subsidiaries or any of its or
their property or (B) after giving effect thereto, a Financing Default, or (C)
if the Board determines in good faith that immediately prior to such purchase
there shall exist a Financing Default which prohibits such purchase, dividend or
distribution ((A) through (C) collectively the "Cash Deferral Conditions"), the
portion of the cash payment so affected may be made by the Company's delivery of
a promissory note or senior preferred shares of the Company with a liquidation
preference equal to the balance of the purchase price. The promissory note or
senior preferred shares shall accrue interest or yield, as the case may be,
annually at the "prime rate" published in The Wall Street Journal on the date of
issuance, which interest or yield, as the case may be, shall be payable at
maturity or upon payment of distributions by the Company. The value of each such
senior preferred share shall as of its issuance be deemed to equal (A) the
portion of the cash payment paid by the issuance of such preferred shares
divided by (B) the number of senior preferred shares so issued. Any senior
preferred shares or the promissory note shall be redeemed or payable when and to
the extent the Cash Deferral Condition which prompted their issuance no longer
exists.

      (e) In the event that Restricted Shareholder Stock is repurchased pursuant
to this Section 3, the Restricted Shareholder and his or her successors, assigns
or Representatives shall take (at the Company's expense) all steps necessary and
desirable to obtain all required third-party, governmental and regulatory
consents and approvals and take all other actions necessary and desirable to
facilitate consummation of such repurchase in a timely manner.

      4. LEGEND.

      The certificates representing the Restricted Shareholder Stock will bear
the following legend:

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO REPURCHASE
   AND CERTAIN OTHER AGREEMENTS SET FORTH IN A RESTRICTED STOCK AGREEMENT DATED
   AS OF MAY 4, 2006 BETWEEN THE COMPANY AND THE OTHER SIGNATORY THERETO. A COPY
   OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY'S
   PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.

      THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, OR ENCUMBRANCE OF THE SECURITIES
   REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF THE HOLDER OF SUCH
   SECURITIES IN RESPECT OF THE ELECTION OF DIRECTORS ARE SUBJECT TO A
   SECURITYHOLDERS' AGREEMENT DATED DECEMBER 19, 2003 AMONG THL BEDDING HOLDING
   COMPANY AND CERTAIN HOLDERS OF ITS OUTSTANDING CAPITAL STOCK. COPIES OF SUCH
   AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF
   RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THL BEDDING HOLDING COMPANY.

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
   INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER

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   THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES OR BLUE SKY
   LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
   REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT OR LAWS."

      5. RESTRICTIONS ON TRANSFER, CONVERSION AND VOTING.

      (a) The Company and the Restricted Shareholder acknowledge and agree that
the Shares of Restricted Shareholder Stock are subject to and restricted by the
Securityholders' Agreement and with respect to such Shares of Restricted
Shareholder Stock, the Restricted Shareholder shall be an "Employee" or "Senior
Manager," as the case may be, and as each such term is used in the
Securityholders' Agreement. Notwithstanding anything to the contrary contained
in the Securityholders' Agreement, no Shares of Restricted Shareholder Stock
that have not become Vested Shares pursuant to Section 2 hereof may be
transferred to any Person and no Shares of Restricted Shareholder Stock that are
Vested Shares may be transferred to any Person who is not an Affiliate of the
Restricted Shareholder. The Vested Shares may be transferred by will or the laws
of descent and distribution.

      (b) Prior to any Transfer, the transferee shall agree, by execution of a
Joinder Agreement, to be bound by this Agreement as holder of Restricted
Shareholder Stock and by the Securityholders' Agreement as an "Employee" or
"Senior Manager", as the case may be. Any Transfer or attempted Transfer of any
Restricted Shareholder Stock in violation of the preceding sentence shall be
void, and the Company shall not record such Transfer on its books or treat any
purported transferee of such Restricted Shareholder Stock as the owner of such
stock for any purpose.

      (c) The Restricted Shareholder agrees that so long as the Restricted
Shareholder owns Shares of Restricted Shareholder Stock which have not become
Vested Shares pursuant to Section 2 hereof, the Restricted Shareholder shall be
obligated to vote all of his, her or its Shares of Restricted Shareholder Stock
which have not become Vested Shares pursuant to Section 2 hereof in the same
manner and proportions as the votes cast by the holders of a majority of the
Company's voting capital stock not subject to such repurchase rights. If the
Restricted Shareholder fails or refuses to vote his, her or its Shares of
Restricted Shareholder Stock which have not become Vested Shares pursuant to
Section 2 hereof as required by, or votes his, her or its Shares of Restricted
Shareholder Stock which have not become Vested Shares pursuant to Section 2
hereof in contravention of this Section 5(c), then the Restricted Shareholder
hereby grants to each of the President and Treasurer of the Company, acting
solely in his or her capacity as such, an irrevocable proxy, coupled with an
interest, to vote such Shares in accordance with Section 5(c).

      6. RESTRICTED ACTIVITIES.

      (a) The Restricted Shareholder acknowledges that (1) the Company has
separately bargained and paid additional consideration for the restrictive
covenants herein; (2) the Company will provide certain benefits to the
Restricted Shareholder hereunder in reliance on such covenants in view of the
unique and essential nature of the services the Restricted

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Shareholder will perform on behalf of the Company and the irreparable injury
that would befall the Company should the Restricted Shareholder breach such
covenants; and (3) as used in this Section 6 and for all terms defined in
Section 7 that are utilized in Section 6, the definition of the "Company"
includes the Company and/or its Subsidiaries, Affiliates, and the successors and
assigns of each and any such related entities.

      (b) The Restricted Shareholder agrees that the Restricted Shareholder's
work for the Company has brought and will bring Restricted Shareholder into
close contact with many of the Company's Customers, Customer Prospects, Vendors,
Trade Secrets, and Confidential Information. The Restricted Shareholder further
agrees that the covenants in this Section 6 are reasonable and necessary to
protect the Company's legitimate business interests and its Customer, Customer
Prospect, and/or Vendor relationships, Trade Secrets, and Confidential
Information.

      (c) The Restricted Shareholder agrees to faithfully perform the duties
assigned to the Restricted Shareholder and will not engage in any other
employment or business activity while employed by the Company that might
interfere with the Restricted Shareholder's full-time performance of the
Restricted Shareholder's duties for the Company or cause a conflict of interest.
The Restricted Shareholder agrees to abide by all of the Company's policies and
procedures, which may be amended from time-to-time.

      (d) The Restricted Shareholder agrees that, due to Restricted
Shareholder's position, the Restricted Shareholder's engaging in any activity
that may breach this Agreement will cause the Company great, immediate, and
irreparable harm.

      (e) Duty of Confidentiality. The Restricted Shareholder agrees that during
the Restricted Shareholder's employment with the Company and for a period of
five (5) years following the termination of such employment for any reason, the
Restricted Shareholder shall not directly or indirectly divulge or make use of
any Confidential Information outside of the Restricted Shareholder's employment
with the Company (so long as the information remains confidential) without the
prior written consent of the Company. The Restricted Shareholder shall not
directly or indirectly misappropriate, divulge, or make use of Trade Secrets for
an indefinite period of time, so long as the information remains a Trade Secret
as defined by the DUTSA and/or any other applicable law. The Restricted
Shareholder further agrees that if the Restricted Shareholder is questioned
about information subject to this Agreement by anyone not authorized to receive
such information, the Restricted Shareholder will notify the Company's General
Counsel within 24 hours. The Restricted Shareholder acknowledges that applicable
law may impose longer duties of non-disclosure, especially for Trade Secrets,
and that such longer periods are not shortened by this Agreement.

      (f) Return of Confidential Information And Company Property. The
Restricted Shareholder agrees to return to the Company all Confidential
Information and/or Trade Secrets within three (3) calendar days following the
termination of the Restricted Shareholder's employment for any reason. To the
extent the Restricted Shareholder maintains Confidential Information and/or
Trade Secrets in electronic form on any computers or other electronic devices
owned by the Restricted Shareholder, the Restricted Shareholder agrees to
irretrievably delete all

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such information and to confirm the fact of deletion in writing within three (3)
calendar days following termination of employment with the Company for any
reason. The Restricted Shareholder also agrees to return all property in the
Restricted Shareholder's possession at the time of the termination of the
employment with the Company, including but not limited to all documents,
records, tapes, and other media of every kind and description relating to the
Business of the Company and its Customers, Customer Prospects, and/or Vendors,
and any copies, in whole or in part, whether or not prepared by the Restricted
Shareholder, all of which shall remain the sole and exclusive property of the
Company.

      (g) Proprietary Rights. Proprietary Rights shall be promptly and fully
disclosed by the Restricted Shareholder to the Company's General Counsel and
shall be the exclusive property of the Company as against the Restricted
Shareholder and the Restricted Shareholder's successors, heirs, devisees,
legatees and assigns. The Restricted Shareholder hereby assigns to the Company
Restricted Shareholder's entire right, title, and interest therein and shall
promptly deliver to the Company all papers, drawings, models, data, and other
material relating to any of the foregoing Proprietary Rights conceived, made,
developed, created or reduced to practice by the Restricted Shareholder as
aforesaid. All copyrightable Proprietary Rights shall be considered "works made
for hire." The Restricted Shareholder shall, upon the Company's request and at
its expense, execute any documents necessary or advisable in the opinion of the
Company's counsel to assign, and confirm the Company's title in the foregoing
Proprietary Rights and to direct issuance of patents or copyrights to the
Company with respect to such Proprietary Rights as are the Company's exclusive
property as against the Restricted Shareholder and/or the Restricted
Shareholder's successors, heirs, devisees, legatees and assigns under this
Section 6.(g) or to vest in the Company title to such Proprietary Rights as
against the Restricted Shareholder and/or the Restricted Shareholder's
successors, heirs, devisees, legatees and assigns, the expense of securing any
such patent or copyright, however, to be borne by the Company.

      (h) Non-Competition. The Restricted Shareholder covenants and agrees that,
during the term of Restricted Shareholder's employment with the Company and for
twelve (12) months after the termination thereof, regardless of the reason for
the employment termination, the Restricted Shareholder will not, directly or
indirectly, anywhere in the Territory, on behalf of any Competitive Business
perform the same or substantially the same Job Duties.

      (i) Non-Solicitation of Customers, Customer Prospects, and Vendors. The
Restricted Shareholder also covenants and agrees that during the term of
Restricted Shareholder's employment with the Company and for twelve (12) months
after the termination thereof, regardless of the reason for the employment
termination, the Restricted Shareholder will not, directly or indirectly,
solicit or attempt to solicit any business from any of the Company's Customers,
Customer Prospects, or Vendors with whom the Restricted Shareholder had Material
Contact during the last two (2) years of the Restricted Shareholder's employment
with the Company.

      (j) Non-Solicitation of Employees. The Restricted Shareholder also
covenants and agrees that during the term of Restricted Shareholder's employment
with the Company and for twelve (12) months after the termination thereof,
regardless of the reason for the employment termination, the Restricted

                                       11
<PAGE>

Shareholder will not, directly or indirectly, on the Restricted Shareholder's
own behalf or on behalf of or in conjunction with any person or legal entity,
recruit, solicit, or induce, or attempt to recruit, solicit, or induce, any
non-clerical employee of the Company with whom the Restricted Shareholder had
personal contact or supervised while performing the Restricted Shareholder's Job
Duties, to terminate their employment relationship with the Company.

      (k) Ownership of Securities. Notwithstanding the provisions set forth
herein, the Restricted Shareholder shall have the right to (a) invest in or
acquire any class of securities issued by any firm, partnership, corporation,
and/or any other entity and/or person not engaged in any Competitive Business,
or (b) acquire as a passive investor (with no involvement in the operations or
management of the business) up to 1% of any class securities which is (i) issued
by any Competitive Business, and (ii) publicly traded on a national securities
exchange or over-the-counter market.

      (l) No Disparagement. Each of the parties hereto covenants and agrees
that, during the term of the Restricted Shareholder's employment with the
Company and for twelve (12) months after the termination thereof, regardless of
the reason for the employment termination, such party will not, directly or
indirectly, either in writing or by any other medium, make any disparaging,
derogatory or negative statement, comment or remark about the other parties
hereto, or any of them, or Thomas H. Lee Partners, or any other their respective
officers, directors, employees, Affiliates, Subsidiaries, successors and
assigns, as the case may be; provided, however, that this Section 6.(l) shall
not be construed to require any Person to provide other than truthful testimony
when compelled to testify pursuant to an enforceable subpoena or court order.

      7. DEFINITIONS.

      The following terms shall have the meanings ascribed below:

        "Affiliate" of any particular Person means any other Person controlling,
controlled by or under common control with such particular Person or, with
respect to any individual, such individual's spouse and descendants (whether
natural or adopted) and any trust, partnership, limited liability company or
similar vehicle established and maintained solely for the benefit of (or the
sole members or partners of which are) such individual, such individual's spouse
and/or such individual's descendants.

        "Board" means the Board of Directors of the Company.

        "Business of the Company" means the highly competitive business of
developing, manufacturing, marketing, distributing, and/or selling sleep
products, including mattresses, foundations, changing pads and covers, and
bedding components for the same.

        "Cause" shall mean any one or more of the following:

            (a) The Restricted Shareholder shall have been convicted of, or
            shall have pleaded guilty or nolo contendere to, any felony or a
            crime involving fraud, personal dishonesty or

                                       12
<PAGE>

            moral turpitude (whether or not in connection with his employment);

            (b) The Restricted Shareholder shall have repeatedly or consistently
            failed or refused to perform his or her duties or fulfill his or her
            responsibilities to the Company, after verbal notice and ten (10)
            days opportunity to cure;

            (c) The Restricted Shareholder shall have breached any provision of
            Section 6 hereof; or

            (d) The Restricted Shareholder shall have committed any fraud,
            embezzlement, misappropriation of funds, breach of fiduciary duty or
            other act of dishonesty against the Company.

        "Change of Control" shall mean the consummation of a transaction,
whether in a single transaction or in a series of related transactions that are
consummated contemporaneously (or consummated pursuant to contemporaneous
agreements), with any other party or parties, other than an Affiliate of THL, on
an arm's-length basis, pursuant to which (a) a party or group (as defined under
Rule 13d under the Securities Exchange Act of 1934, as amended) who is not a
stockholder of the Company on the Effective Date, acquires, directly or
indirectly (whether by merger, stock purchase, recapitalization, reorganization,
redemption, issuance of capital stock or otherwise), more than 50% of the voting
stock of the Company, (b) such party or parties, directly or indirectly, acquire
assets constituting all or substantially all of the assets of the Company and
its Subsidiaries on a consolidated basis, or (c) prior to an initial public
offering of the Company common stock pursuant to an offering registered under
the Securities Act, Thomas H. Lee Equity Fund V, L.P., a Delaware limited
partnership, and its affiliates cease to have the ability to elect, directly or
indirectly, a majority of the Board.

        "Class A Common Stock" means the Company's Class A Common Stock, $0.01
par value per share.

        "Class B Common Stock" has the meaning set forth in Section 1(a) hereof.

        "Code" shall mean the Internal Revenue Code of 1986, as amended.

        "Competitive Business(es)" include any firm, partnership, joint venture,
corporation and/or any other entity and/or person, including but not limited to
Sealy Corporation, Serta International, Spring Air Company, Select Comfort
Corporation, Tempur-Pedic International, Inc., King Koil Licensing Company,
Inc., International Bedding Corp., and/or any licensee of such entity, that
develops, manufactures, markets, distributes, and/or sells any of the sleep
products described in the definition for the "Business of the Company."

        "Confidential Information" means information about the Company and its
Customers, Customer Prospects, and/or Vendors that is not generally known
outside of the Company, which Restricted Shareholder learned in connection with
the Restricted Shareholder's

                                       13
<PAGE>

employment with the Company. Confidential Information may include, without
limitation: (1) the terms of this Agreement, except as necessary to inform a
subsequent employer of the restrictive covenants contained herein and/or the
Restricted Shareholder's attorney, spouse, or professional tax advisor only on
the condition that any subsequent disclosure by any such person shall be
considered a disclosure by the Restricted Shareholder and a violation of this
Agreement; (2) the Company's business policies, finances, and business plans;
(3) the Company's financial projections, including but not limited to, annual
sales forecasts and targets and any computation(s) of the market share of
Customers and/or Customer Prospects; (4) sales information relating to the
Company's product roll-outs; (5) customized software, marketing tools, and/or
supplies that the Restricted Shareholder was provided access to by the Company
and/or created; (6) the identity of the Company's Customers, Customer Prospects,
and/or Vendors (including names, addresses, and telephone numbers of Customers,
Customer Prospects, and/or Vendors); (7) any list(s) of the Company's Customers,
Customer Prospects, and/or Vendors; (8) the account terms and pricing upon which
the Company obtains products and services from its Vendors; (9) the account
terms and pricing of sales contracts between the Company and its Customers; (10)
the proposed account terms and pricing of sales contracts between the Company
and its Customer Prospects; (11) the names and addresses of the Company's
employees and other business contacts of the Company; and (12) the techniques,
methods, and strategies by which the Company develops, manufactures, markets,
distributes, and/or sells any of the sleep products described in the definition
for the "Business of the Company."

        "Consolidated Adjusted EBITDA" has the meaning set forth in the Credit
Agreement.

        "Credit Agreement" shall mean the Amended and Restated Credit and
Guaranty Agreement, dated as of August 27, 2004, among Simmons Bedding Company,
as Company, THL-SC Bedding Company and certain subsidiaries of the Company, as
Guarantors, the financial institutions listed therein, as Lenders, UBS
Securities LLC, as Joint Lead Arranger and as Co-Syndication Agent, Deutsche
Bank AG, New York Branch, as Administrative Agent and Collateral Agent, General
Electric Capital Corporation, as Co-Documentation Agent, CIT Lending Services
Corporation, as Co-Documentation Agent, and Goldman Sachs Credit Partners L.P.,
as Sole Bookrunner, a Joint Lead Arranger and as Co-Syndication Agent.

        "Customers" means any firm, partnership, corporation and/or any other
entity and/or Person that purchased or purchases from the Company any of the
sleep products described in the definition for the "Business of the Company."

        "Customer Prospects" means any firm, partnership, corporation and/or any
other entity and/or Person reasonably expected by the Company to purchase from
the Company any of the sleep products described in the definition for the
"Business of the Company."

        "DUTSA" means Delaware Uniform Trade Secrets Act, 6 DEL. CODE ANN.
Sections 2001-2011.

                                       14
<PAGE>

        "Fair Market Value" shall be determined by the Board in good faith. Upon
such determination, the Company shall promptly provide the Restricted
Shareholder with notice of the Fair Market Value so determined (the "Board
Notice"). In the event of a determination of Fair Market Value with respect to
Class B Common Stock owned by a Senior Manager, such Senior Manager shall have
the right to contest such determination in good faith, by delivery of written
notice to the Company within ten (10) days of delivery of the Board Notice. If
the Senior Manager does not notify the Company of any disagreement therewith,
then the Fair Market Value shall be as set forth in the Board Notice. If the
Senior Manager does notify the Company of his or her disagreement with the Fair
Market Value set forth in the Board Notice within such 10-day time period, then
the Company must retain an independent third party appraiser to make such Fair
Market Value determination (the "Final Determination"), and such Final
Determination shall govern; provided, however, that if the Final Determination
of Fair Market Value equals less than 110% of the Fair Market Value set forth in
the Board Notice, then the Senior Manager shall pay for all costs and expenses
of the third party appraiser.

        "Financing Default" means any event of default or breach under (i) the
Credit Agreement, (ii) that certain senior unsecured floating rate loan facility
by and among THL-SC Bedding Company, certain of its subsidiaries, certain
lenders, party thereto and Deutsche Bank, A.G., Cayman Islands Branch, as
administrative agent, as amended, modified, restated or refinanced from time to
time, (iii) the covenant contained in the Indenture which permits repurchases by
the Company of employee stock not exceeding a specified amount in the aggregate,
or (iv) any other similar notes or instruments that the Company or its
Subsidiaries may issue from time to time.

        "Fully Diluted Shares" means, as of any date of determination, the
number of shares of Class A Common Stock and Class B Common Stock outstanding,
plus (without duplication) shares of Class A Common Stock and Class B Common
Stock issuable, whether at such time or upon the passage of time or the
occurrence of future events, upon the exercise, conversion or exchange of all
then-outstanding rights, warrants, options, convertible securities, or
exchangeable securities or indebtedness, or other rights, exercisable for or
convertible or exchangeable into, directly or indirectly, Class A Common Stock
or Class B Common Stock or securities exercisable for or convertible or
exchangeable into Class A Common Stock or Class B Common Stock, as the case may
be, whether at the time of issuance or upon the passage of time or the
occurrence of some future event.

        "Indenture" shall mean that certain Indenture, dated as of December 19,
2003, governing the Company's Senior Subordinated Notes due 2013, as amended,
modified, restated or refinanced from time to time.

        "Job Duties" for the Restricted Shareholder are those job duties the
Restricted Shareholder performed for the twelve (12) months prior to the
Effective Date of this Agreement, as well as those duties as may from
time-to-time reasonably be prescribed by the Company during the period of the
Restricted Shareholder's employment with the Company.

        "Material Contact" means personal contact or the supervision of the
efforts of those who have direct personal contact with a Customers, Customer
Prospects, or Vendors in an

                                       15
<PAGE>

effort to initiate or further a business relationship between the Company and
such Customers, Customer Prospects, or Vendors.

        "Measurement Date" shall mean the date upon which the Company shall have
received its audited financial statements for the prior Measurement Year,
beginning with the Measurement Year ending December 30, 2006.

        "Person" shall be construed broadly and shall include, without
limitation, an individual, a partnership, an investment fund, a limited
liability company, a corporation, an association, a joint stock company, a
trust, a joint venture, an unincorporated organization and a governmental entity
or any department, agency or political subdivision thereof.

        "Proprietary Rights" means any and all inventions, discoveries,
developments, methods, processes, compositions, works, supplier and customer
lists (including information relating to the generation and updating thereof),
concepts, and ideas (whether or not patentable or copyrightable) conceived,
made, developed, created, or reduced to practice by the Restricted Shareholder
(whether at the request or suggestion of the Company or otherwise, whether alone
or in conjunction with others, and whether during regular hours of work or
otherwise) prior to or during the Restricted Shareholder's employment, which may
be directly or indirectly useful in, or related to, the Business of the Company
or any business or products contemplated by the Company while the Restricted
Shareholder was or is an employee, officer, or director of the Company.

        "Representative" means, with respect to the deceased Restricted
Shareholder, the duly appointed, qualified and acting personal representative
(or personal representatives collectively) of the estate of the deceased
Restricted Shareholder (or portion of such estate that includes Restricted
Shareholder Stock), whether such personal representative holds the position of
executor, administrator or other similar position qualified to act on behalf of
such estate.

        "Restricted Shareholder Stock" has the meaning set forth in Section 1(a)
hereof. The Restricted Shareholder Stock will continue to be Restricted
Shareholder Stock in the hands of any holder other than the Restricted
Shareholder (except for the Company and except for transferees in a Public Sale)
and, except as otherwise provided herein, each such other holder of the
Restricted Shareholder Stock will succeed to all rights and obligations
attributable to the Restricted Shareholder as a holder of the Restricted
Shareholder Stock hereunder. The Restricted Shareholder Stock will also include
shares of the Company's capital stock issued with respect to the Restricted
Shareholder Stock by way of a stock split, stock dividend or other
recapitalization.

        "Securities Act" means the Securities Act of 1933, as amended, or any
successor federal law then in force.

        "Securityholders' Agreement" means the Securityholders' Agreement dated
December 19, 2003 between the Company and certain stockholders of the Company,
as amended, modified or supplemented from time to time.

                                       16
<PAGE>

        "Senior Manager" shall mean each of Charles Roy Eitel, William S.
Creekmuir, and Rhonda C. Rousch, and/or any other Persons designated by the
Board as Senior Managers (collectively, the "Senior Managers").

        "Subsidiary" means any Person of which (i) a majority of the outstanding
share capital, voting securities or other equity interests are owned, directly
or indirectly, by the Company or (ii) the Company is entitled, directly or
indirectly, to appoint a majority of the board of directors or managers or
comparable supervisory body of such Person.

        "Territory" means the United States and Puerto Rico.

        "THL" means Thomas H. Lee Equity Fund V, L.P., a Delaware limited
partnership, Thomas H. Lee Parallel Fund V, L.P., Thomas H. Lee Cayman Fund V,
L.P., 1997 Thomas H. Lee Nominee Trust, Thomas H. Lee Investors Limited
Partnership, Putnam Investments Holdings, LLC, Putnam Investments Employees'
Securities Company I LLC, and Putnam Investments Employees' Securities Company
II, LLC.

        "Trade Secrets" means Confidential Information which meets the
additional requirements of the DUTSA and/or under any other applicable law.

        "Transfer" means the sale, transfer, assignment, pledge or other
disposal (whether with or without consideration and whether voluntarily or
involuntarily or by operation of law) of any Restricted Shareholder Stock.

        "Vendors" means any individual and/or entity that provided goods and
services to the Company.

      8. GENERAL PROVISIONS.

      (a) Severability. It is the desire and intent of the parties hereto that
the provisions of this Agreement be enforced to the fullest extent permissible
under the laws and public policies applied in each jurisdiction in which
enforcement is sought. Accordingly, if any particular provision of this
Agreement shall be adjudicated by a court of competent jurisdiction to be
invalid, prohibited or unenforceable for any reason, such provision, as to such
jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of this
Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction. Notwithstanding the foregoing, if such provision could be
more narrowly drawn so as not to be invalid, prohibited or unenforceable in such
jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without
invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.

      (b) Entire Agreement. This Agreement and the Securityholders' Agreement
embody the complete agreement and understanding among the parties hereto with
respect to the subject matter hereof and supersedes and preempts any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way,
PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE FOREGOING, IF THE

                                       17
<PAGE>

RESTRICTED SHAREHOLDER IS CURRENTLY A PARTY TO ANY NON-COMPETITION OR
NON-SOLICITATION COVENANTS WITH THE COMPANY OR ITS SUBSIDIARIES AND SUCH
COVENANTS ARE TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS, SUCH
COVENANTS (TOGETHER WITH ANY DEFINITIONS CONTAINED IN SUCH COVENANTS AND ANY
EXHIBITS OR SCHEDULES REFERENCED THEREIN) (COLLECTIVELY, THE "PRIOR COVENANTS")
SHALL NOT BE SUPERSEDED OR RESTATED BUT INSTEAD SHALL BE INCORPORATED HEREIN BY
REFERENCE. THE PRIOR COVENANTS SHALL BE READ TOGETHER WITH THE COVENANTS
CONTAINED IN SECTION 6 HEREOF IN SUCH MANNER AS TO MAKE SUCH PRIOR COVENANTS AND
THE COVENANTS CONTAINED HEREIN ENFORCEABLE TO THE FULLEST EXTENT PERMISSIBLE
UNDER THE LAWS OF THE STATE IN WHICH ENFORCEMENT IS SOUGHT.

      (c) Counterparts. This Agreement may be executed in separate counterparts,
each of which is deemed to be an original and all of which taken together
constitute one and the same agreement.

      (d) Successors and Assigns. Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by the
Restricted Shareholder, the Company, and their respective successors, assigns,
heirs, representative and estate, as the case may be (including subsequent
holders of Restricted Shareholder Stock); provided that the rights and
obligations of the Restricted Shareholder under this Agreement shall not be
assignable except in connection with a permitted transfer of Restricted
Shareholder Stock hereunder.

      (e) Governing Law and Remedies. The parties acknowledge and agree that
they are bound by their arbitration obligations under Exhibit A attached hereto,
which the parties also hereby agree to execute contemporaneously and is an
integral part of this Agreement. The parties agree and acknowledge that all
provisions of this Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware exclusively and without reference to
principles of conflict of laws. The Federal Arbitration Act ("FAA") will
supersede state laws to the extent inconsistent. The Arbitrator(s) shall have no
authority to apply the law of any other jurisdiction.

_/S/KAS RESTRICTED SHAREHOLDER'S INITIALS TO ACKNOWLEDGE AGREEMENT TO GOVERNING
LAW AND REMEDIES PROVISION IN SECTION 8(e).

      (f) Remedies. Each of the parties to this Agreement and any such Person
granted rights hereunder whether or not such Person is a signatory hereto shall
be entitled to enforce its rights under this Agreement specifically to recover
damages and costs (including reasonable attorney's fees) for any breach of any
provision of this Agreement and to exercise all other rights existing in its
favor. The parties hereto agree and acknowledge that money damages may not be an
adequate remedy for any breach of the provisions of this Agreement and that any
party and any such Person granted rights hereunder whether or not such Person is
a signatory hereto may in its sole discretion submit the matter to arbitration
for specific performance and/or other injunctive relief (without posting any
bond or deposit) in order to enforce or prevent any violations of the provisions
of this Agreement.

                                       18
<PAGE>

      (g) Amendment and Waiver. The provisions of this Agreement may be amended
and waived only with the prior written consent of the Company and the Restricted
Shareholder and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall be construed as a waiver of such provisions
or affect the validity, binding effect or enforceability of this Agreement or
any provision hereof.

      (h) Notices. Any notice provided for in this Agreement must be in writing
and must be either personally delivered, transmitted via facsimile, mailed by
first class mail (postage prepaid and return receipt requested) or sent by
reputable overnight courier service (charges prepaid) to the recipient at the
address below indicated or at such other address or to the attention of such
other person as the recipient party has specified by prior written notice to the
sending party. Notices will be deemed to have been given hereunder and received
when delivered personally, when received if transmitted via facsimile, five (5)
days after deposit in the U.S. mail and one (1) day after deposit with a
reputable overnight courier service.

                 If to the Company, to:

                    Simmons Company
                    One Concourse Parkway, Suite 800
                    Atlanta, GA  30328
                    Attention:  Chief Financial Officer and General Counsel

                 With a copy to:

                 Thomas H. Lee Partners, L.P.
                    100 Federal Street, 35th Floor
                    Boston, MA  02110
                    Attention:  Scott A. Schoen
                    Todd M. Abbrecht
                    George Taylor

If to the Restricted Shareholder, to the address set forth underneath the
Restricted Shareholder's name on the signature pages hereto.

      (i) Business Days. If any time period for giving notice or taking action
hereunder expires on a day which is a Saturday, Sunday or holiday in the state
in which the Company's chief executive office is located, the time period for
giving notice or taking action shall be automatically extended to the business
day immediately following such Saturday, Sunday or holiday.

      (j) Survival of Representations, Warranties and Agreements. All
representations, warranties and agreements contained herein shall survive the
consummation of the transactions contemplated hereby and the termination of this
Agreement indefinitely.

      (k) Descriptive Headings. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.

                                       19
<PAGE>

      (l) Construction. Where specific language is used to clarify by example a
general statement contained herein, such specific language shall not be deemed
to modify, limit or restrict in any manner the construction of the general
statement to which it relates. The language used in this Agreement shall be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction shall be applied against any party.

      (m) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

      (n) Nouns and Pronouns. Whenever the context may require, any pronouns
used herein shall include the corresponding masculine, feminine or neuter forms,
and the singular form of nouns and pronouns shall include the plural and vice
versa.

      (o) Acknowledgement and Waiver. The Restricted Shareholder hereby
represents and warrants that he or she has access to adequate information
regarding the terms of this Agreement, the scope and effect of the provisions
set forth herein and all other matters encompassed by this Agreement, to make an
informed and knowledgeable decision with regard to enter into this Agreement.
The Restricted Shareholder further represents and warrants that he or she has
not relied on the Company in deciding to enter into this Agreement and has
instead made his or her own independent analysis and decision to enter into this
Agreement.

                  [Remainder of Page Intentionally Left Blank]

                                       20
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Restricted Stock
Agreement as of the date first written above.

                                    SIMMONS COMPANY

                                    By: /s/ William S. Creekmuir
                                        -------------------------
                                        William S. Creekmuir
                                        Executive Vice President and
                                        Chief Financial Officer

                                       21
<PAGE>

                         RESTRICTED SHAREHOLDER:

                         Kimberly A. Samon

                         /s/ Kimberly A. Samon

                         __________________________________

                         Signature

                         Address: _________________________

                                  _________________________

                                  _________________________

                         Shares of Restricted Shareholder Stock Purchased: 10000

                                       22
<PAGE>

                         EXHIBIT A - ARBITRATION CLAUSE

      (1) In consideration of the benefits described in the Restricted Stock
Agreement executed by KIMBERLY A. SAMON (the "Restricted Shareholder" or "you")
and Simmons Company, a Delaware corporation (the "Company"), on the same date
hereto and into which this Exhibit A is incorporated, ("Agreement"), the Company
and you hereby agree that any controversy or claim arising under federal, state
and local statutory or common or contract law between the Company and you
involving the construction or application of any of the terms, provisions, or
conditions of the Agreement, including, but not limited to, breach of contract,
tort, and/or fraud, must be submitted to arbitration on the written request of
either party served on the other. Arbitration shall be the exclusive forum for
any such controversy. For example, if the Company and you have a dispute
concerning the interpretation or enforceability of one or more restrictive
covenants, the parties will resolve the dispute exclusively through arbitration.
The Arbitrator's decision shall be final and binding on both parties.

      (2) If any claim or cause of action at law or in equity is filed by either
party in any state or federal court which results in arbitration being compelled
and/or the claim or cause of action being dismissed, stayed, and/or removed to
arbitration pursuant to this Agreement, the party who instituted the claim or
cause of action in state or federal court, either wholly or in substantial part,
shall, at the discretion of the Arbitrator(s), reimburse the respondent for its
reasonable attorneys' fees, costs, and necessary disbursements to the extent
permitted by law, in addition to any other relief to which it may be entitled,
related to the state or federal court claim or action.

      (3) Excluding the initial filing fee, which shall be borne by the
claimant, the cost of arbitration shall be borne by the Company, unless the
Arbitrator determines that any claim(s) brought by you was/were wholly frivolous
or fraudulent. If an arbitration or any action at law or in equity is necessary
to enforce or interpret the terms of this Agreement, the prevailing party,
either wholly or in substantial part, shall, at the discretion of the
Arbitrator, be entitled to its reasonable attorneys' fees, costs, and necessary
disbursements to the extent permitted by law, in addition to any other relief to
which it may be entitled.

      (4) If the Restricted Shareholder submits any controversy or claim to
arbitration, the arbitration will be conducted in Atlanta, Georgia and all
claims shall be submitted to and administered by the American Arbitration
Association's Southeast Case Management Center in Atlanta, Georgia. If the
Company submits any controversy or claim to arbitration, the arbitration shall
be conducted at the American Arbitration Association's Local or Regional Office
that is geographically closest to the Restricted Shareholder's place of
residence and all claims shall be submitted to and administered by the American
Arbitration Association's corresponding Case Management Center.

      (5) The arbitration shall comply with and be governed by the American
Arbitration Association's Commercial Arbitration Rules ("Rules") effective as of
the execution date below,

                                       23
<PAGE>

to the extent such Rules are not contrary to the express provisions of this
Agreement. The parties also agree that the American Arbitration Association
Optional Rules for Emergency Measures of Protection ("Emergency Rules") shall
apply to proceedings brought by either party. The above Rules and Emergency
Rules can be found at the following page of the American Arbitration
Association's website, www.adr.org: http://www.adr.org/sp.asp?id=22440. You
acknowledge that you should read these Rules and Emergency Rules and that it is
your responsibility to be familiar with them prior to signing the Agreement. If
you are unable to access the Rules and/or Emergency Rules at the above website,
you can request a copy of them from a Company official prior to signing the
Agreement.

      (6) The parties agree and acknowledge that all provisions of this
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware exclusively and without reference to principles of conflict of
laws. The Federal Arbitration Act ("FAA") will supersede state laws to the
extent inconsistent. Any claim(s) involving the construction or application of
this Agreement must be submitted to arbitration within the statute of
limitations period for such claim(s) under Delaware state law and shall be
dismissed if the statute of limitations period is not met. The Arbitrator(s)
shall have no authority to apply the law of any other jurisdiction.

      (7) The dispute shall be heard and determined by one Arbitrator, unless
both parties mutually consent in writing signed by you and an authorized
representative of Company to a panel of three (3) Arbitrators. Unless both
parties mutually consent otherwise, the parties agree and request that the
Arbitrator(s) issue a reasoned award in accordance with Commercial Arbitration
Rule R-42(b).

      I UNDERSTAND THAT BY SIGNING THIS AGREEMENT I AM GIVING UP MY RIGHT TO A
JURY TRIAL.

Executed effective as of this 4th day of May, 2006.

                                             Simmons Company

/s/ Kimberly A. Samon                        By: /s/ William S. Creekmuir
-----------------------                          ----------------------------
 Kimberly A. Samon                               William S. Creekmuir
                                                 Executive Vice President and
Social Security #: __________________            Chief Financial Officer

                                       241st Amendment to Loan Security Agreement

 

EXHIBIT 10.52

FIRST AMENDMENT TO AMENDED AND RESTATED 

LOAN AND SECURITY AGREEMENT

     THIS FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is
made and entered into this 8th day of May, 2006, by and between MasTec, Inc., a Florida
corporation (“MasTec”), the Subsidiaries of MasTec identified on the signature pages hereto
(together with MasTec, hereinafter collectively referred to as the “Borrowers”), the financial
institutions party from time to time to the Loan Agreement (as hereinafter defined) (the “Lenders”)
and BANK OF AMERICA, N.A., a national bank in its capacity as collateral and administrative agent
for the Lenders (together with its successors in such capacity, “Agent”).

Recitals:

     Agent, Lenders and Borrowers are parties to a certain Amended and Restated Loan and Security
Agreement dated May 10, 2005 (as amended and in effect on the date hereof, the “Loan Agreement”),
pursuant to which Lenders have made certain revolving credit loans and letter of credit
accommodations to or for the benefit of Borrowers.

     Based on Borrowers’ improved financial position following its 2005 performance, 2006 follow-on
equity offering and repayment of $75,000,000 of long-term debt, all as reported by Borrowers in its
public filings, Borrowers have requested that Agent and Lenders amend the Loan Agreement to, among
other things, provide improved pricing and business terms to Borrower. Agent and Lenders are
willing to do so, on the terms and subject to the conditions set forth in this Amendment.

     NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and other good and valuable
consideration, the receipt and sufficiency of which are hereby severally acknowledged, the parties
hereto, intending to be legally bound hereby, agree as follows:

     1. Definitions. All capitalized terms used in this Amendment, unless otherwise
defined herein, shall have the meaning ascribed to such terms in the Loan Agreement.

     2. Amendment to Loan Agreement. The Loan Agreement is hereby amended as follows:

          a. By deleting the definition of “Rentals” in its entirety from Section 1.1 of the Loan
Agreement, and by deleting the definitions of “Adjusted EBITDA,” “Applicable Margin,” “DirecTV
Concentration Percentage,” “Eligible Unbilled Accounts,” “Fixed Asset Formula Amount,” “Permitted
Acquisition,” “Permitted Contingent Obligations,” “Permitted Purchase Money Debt” and “Verizon
Concentration Percentage” in their entireties from Section 1.1 of the Loan Agreement and by
inserting the following in lieu thereof:

 

 

     Adjusted EBITDA — for any fiscal period of Borrowers and their
Subsidiaries, an amount equal to the sum for such period of (i) Adjusted Net
Earnings, plus (ii) provision for taxes based on income and for state or
provincial franchise taxes, to the extent deducted in the calculation of Adjusted
Net Earnings for such fiscal period, plus (iii) interest expense, to the
extent deducted in the calculation of Adjusted Net Earnings for such fiscal period,
plus (iv) depreciation and amortization, to the extent deducted in the
calculation of Adjusted Net Earnings for such fiscal period, plus (v)
purchase accounting adjustments that are as required by FASB 141 and 142 for such
fiscal period, plus (vi) non-cash charges (including inventory adjustments,
lost job accruals, stock option expenses and write down of assets) from
discontinued operations and other non-cash charges approved by Agent, to the extent
deducted in the calculation of Adjusted Net Earnings for such period, all
calculated on a Consolidated basis.

     Applicable Margin — commencing on the first day of the calendar month
immediately succeeding the third Business Day (each an “Adjustment Date”) after
Agent’s receipt of the applicable financial statements and corresponding Compliance
Certificate for each Fiscal Quarter ending on or after March 31, 2006, the
Applicable Margin shall be increased or (if no Default or Event of Default exists)
decreased, on a quarterly basis according to the performance of Borrowers as
measured by the Leverage Ratio for the immediately preceding Fiscal Quarter of
Borrowers, as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Applicable	 	 	 	Applicable Base	 	 
	 	Leverage Ratio	 	 	LIBOR Margin	 	 	 	Rate Margin	 	 
	 	>= 4.0 to 1.00
	 	 	 	2.25	%	 	 	 	0.75	%	 
	 	>= 3.0 to l.00 but
<4.0 to 1.00
	 	 	 	2.00	%	 	 	 	0.50	%	 
	 	>= 2.0 to l.00 but
<3.0 to 1.00
	 	 	 	1.75	%	 	 	 	0.25	%	 
	 	>= 1.0 to l.00 but
<2.0 to 1.00
	 	 	 	1.50	%	 	 	 	0.00	%	 
	 	<1.0 to 1.00
	 	 	 	1.25	%	 	 	 	0.00	%	 
	 

provided that, if during any Fiscal Quarter for which the Leverage Ratio is
measured to determine the Applicable Margin as provided above, the Average
Liquidity Amount is greater than $40,000,000, the Applicable Margin with respect to
Revolver Loans that are Base Rate Loans and the Applicable Margin for Revolver
Loans that are LIBOR Loans shall be decreased by 0.25% from the respective
Applicable Margin that is otherwise applicable to that Type of Revolver Loans as
set forth in the table above (but in no event shall the Applicable Margin for Base
Rate Loans be less than 0.00%).

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Prior to the next Adjustment Date, based the performance of Borrowers as measured
by the Leverage Ratio for the Fiscal Quarter ended December 31, 2005, and after
giving effect to an adjustment based on the Average Liquidity Amount in accordance
with the above provisions, the Applicable Margin shall be a percentage equal to
0.25% with respect to Revolver Loans that are Base Rate Loans and 1.75% with
respect to Revolver Loans that are LIBOR Loans.

Except as otherwise set forth herein, any such increase or reduction in the
Applicable Margin shall be subject to receipt by Agent of the applicable financial
statements and corresponding Compliance Certificate. If the financial statements
and the Compliance Certificate of Borrowers setting forth the Leverage Ratio are
not received by Agent by the date required pursuant to Section 10.1.3 of this
Agreement, the Applicable Margin shall be determined as if the Leverage Ratio
exceeds 4.0 to 1 until such time as such financial statements and Compliance
Certificate are received and any Event of Default resulting from a failure timely
to deliver such financial statements or Compliance Certificate is waived in writing
by Agent and Lenders; provided, however, that Agent and Lenders
shall be entitled to accrue and receive interest at the Default Rate to the extent
authorized by Section 3.1.5 of this Agreement and, on each date that the Default
Rate accrues on any Loan, the Applicable Margin on such date for such Loan shall be
the Applicable Margin that would apply if the Leverage Ratio exceeded 4.0 to 1
(without regard to the actual Leverage Ratio). For the final Fiscal Quarter of any
Fiscal Year of Borrowers, Borrowers may provide the unaudited financial statements
of Borrowers, subject only to year-end adjustments, for the purpose of determining
the Applicable Margin; provided, however, that if, upon delivery of
the annual audited financial statements required to be submitted by Borrowers to
Agent pursuant to Section 10.1.3(i) of this Agreement, Borrowers have not met the
criteria for reduction of the Applicable Margin pursuant to the terms hereinabove
for the final Fiscal Quarter of the Fiscal Year of Borrowers then ended, then (a)
such Applicable Margin reduction shall be terminated and, effective on the first
day of the month following receipt by Agent of such audited financial statements,
the Applicable Margin shall be the Applicable Margin that would have been in effect
if such reduction had been implemented based upon the audited financial statements
of Borrowers for the final Fiscal Quarter of the Fiscal Year of Borrowers then
ended, and (b) Borrowers shall pay to Agent, for the Pro Rata benefit of the
Lenders, on the first day of the month following receipt by Agent of such audited
financial statements, an amount equal to the difference between the amount of
interest that would have been paid using the Applicable Margin determined based
upon such audited financial statements and the amount of interest actually paid
during the period in which the reduction of the Applicable Margin was in effect
based upon the unaudited financial statements for the final Fiscal Quarter of the
Fiscal Year of Borrowers then ended.

     DirecTV Concentration Percentage — (a) at any time that (i) DirecTV’s
corporate credit rating or senior debt rating (secured or unsecured) by Moody’s is
Ba2 and by S&P is BB, and (ii) Average Days Sales Outstanding on Accounts for

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which DirecTV is the Account Debtor is 50 or fewer days, 40%; (b) at any time
that DirecTV’s corporate credit rating or senior debt rating (secured or unsecured)
by Moody’s is Ba3 or by S&P is BB-, 25%; (c) at any time that DirecTV’s corporate
credit rating or senior debt rating (secured or unsecured) by Moody’s is B1 or by
S&P is B+, 15%; (d) at any time that Average Days Sales Outstanding on Accounts for
which DirecTV is the Account Debtor is more than 50 days, 15%; and (e) irrespective
of the Average Days Sales Outstanding on Accounts for which DirecTV is the Account
Debtor, or DirecTV’s rating, such lesser percentage as Agent may in its reasonable
credit judgment determine from time to time.

     Eligible Unbilled Accounts — an amount which, when an invoice is
issued with respect thereto, will be an Eligible Account, and in respect of which
an invoice is issued within 30 days (or 45 days with respect to an Account Debtor
principally engaged in the power distribution and transmission business or
communications business) after such amount is first included as an eligible
unbilled account on any Borrowing Base Certificate.

     Fixed Assets Formula Amount — on any date of determination thereof, an
amount equal to the lesser of (A) $50,000,000, or (B) 80% multiplied by the Net
Orderly Liquidation Value of Eligible Fixed Assets; provided that the amount
calculated under this clause (B) shall be reduced in an amount, as determined by
Agent, equal to the aggregate amount of the fair market value or book value,
whichever is more, of all Equipment that has been disposed of by Obligors (other
than in accordance with Section 8.4.2(ii)) since the date that the Equipment
included in the most recent Net Orderly Liquidation Value Appraisal was appraised.

     Permitted Acquisition — an Acquisition by an Obligor or any Subsidiary
of an Obligor in which each of the following conditions is satisfied:

     (a) no Default or Event of Default exists before or would exist
immediately after giving effect thereto;

     (b) the Acquisition is of (i) Equity Interests of any other Person
organized under the laws of the United States of America or any state
thereof or of Canada or any province thereof sufficient to give such
Obligor or Subsidiary control of such other Person or (ii) all or
substantially all of the assets of a Business Unit located in the United
States or Canada, and such Person or Business Unit is engaged in a business
that is substantially similar, related or incidental to the business
conducted by Obligors;

     (c) the Purchase Price of such Acquisition does not exceed
$100,000,000, and the cash portion of such Purchase Price does not exceed
$80,000,000;

     (d) the Liquidity Amount after giving effect to such Acquisition would
be not less than $30,000,000;

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     (e) MasTec or the applicable Obligor has made available to Agent, not
later than 14 days prior to the proposed date of such Acquisition, the
results of any due diligence investigation of the target performed by or on
behalf of such Obligor or its Subsidiaries, environmental assessment
reports if any real property is to be acquired, copies of the Acquisition
documents, and historical financial statements of the target since
inception but no longer than the 3 previous years;

     (f) Agent shall have received evidence satisfactory to it that no
Default of Event of Default has occurred and is continuing or would exist
after giving effect to such transaction and of the Obligors’ continued
compliance with the provisions of this Agreement and the other Loan
Documents, including the provisions of Sections 10.1.14, 10.2.22, and, on a
pro forma basis after giving effect to such Acquisition Borrowers shall
have a Fixed Charge Coverage Ratio of not less than 1.10 to 1.0 for the 12
calendar month period ending on the date of the Acquisition;

     (g) to the extent financed with Debt other than Loans, such Debt is
Subordinated Debt payable to the seller,

     (h) such Acquisition is not “hostile” or contested;

     (i) Agent shall have received evidence reasonably satisfactory to it
demonstrating on a pro forma basis that Adjusted EBITDA (calculated by
MasTec and approved by Agent as described below in this definition) of the
target for the period of 12 consecutive calendar months ended nearest to
the date of determination, is at least equal to the sum of interest expense
and scheduled principal payments on any Debt incurred in connection with
payment of the Purchase Price (including Loans);

     (j) if requested by Agent or the Required Lenders, any new Subsidiary
shall have executed and delivered a Subsidiary Guaranty and a Subsidiary
Security Agreement, or, at Agent’s election, a Joinder Agreement, and in
either case shall have delivered or caused to be delivered as to such
Subsidiary the items referred to in Sections 11.1.4, 11.1.5 and 11.1.7 and
an opinion of counsel for such Subsidiary as to such matters in connection
with the transactions contemplated by the Subsidiary Guaranty and
Subsidiary Security Agreement or Joinder Agreement as Agent may reasonably
request; and

     (k) financial statements shall have been delivered to Agent and the
Lenders for the most recently completed Fiscal Quarter in compliance with
the provisions of Section 10.1.3.

A determination made for purposes of this definition on a pro forma basis
shall be based upon Borrowers’ actual results of operations and the actual

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results of operations of the target for the same period of 12 months ended
prior to the date of determination, as if such Acquisition had occurred
(and any related Debt had been incurred) on the first day of such 12-month
period, as adjusted with the approval of Agent to reflect verifiable,
adequately documented severance payments and reductions in officer and
employee compensation, insurance expenses, interest expense and rental
expense that will be realized effective upon completion of such
Acquisition.

     Notwithstanding any provision of this Agreement to the contrary, in
connection with any merger (or other distribution of the assets) of a
Subsidiary that is not an Obligor with and into (or to) an Obligor, or any
Acquisition by an Obligor, whether by purchase of stock, merger, or
purchase of assets, and whether in a single transaction or series of
related transactions, Agent shall have the right to determine in its
reasonable credit judgment (based on standards and methodologies similar to
those applied to Borrowers’ then existing Accounts and Equipment to the
extent that the Accounts and Equipment so acquired are similar to such then
existing Accounts and Equipment), whether any Accounts or Equipment so
acquired shall be included in the Borrowing Base (subject to the other
applicable provisions of this Agreement). In connection with such
determination, Agent may obtain, at Borrowers’ expense, such appraisals,
commercial finance exams and other assessments of such Accounts and related
Inventory, Equipment and Real Estate as Agent may deem desirable.

     Permitted Contingent Obligations — Contingent Obligations (a)
arising from endorsements of Payment Items for collection or deposit in the
Ordinary Course of Business; (b) arising from Hedging Agreements entered
into in the Ordinary Course of Business pursuant to this Agreement or with
Agent’s prior written consent; (c) of any Borrower and its Subsidiaries
existing as of the Closing Date, including extensions and renewals thereof
that do not increase the amount of such Contingent Obligations as of the
date of such extension or renewal; (d) incurred in the Ordinary Course of
Business with respect to surety bonds, appeal bonds, performance bonds and
other similar obligations; (e) arising under indemnity agreements to title
insurers to cause such title insurers to issue to Agent title insurance
policies; (f) with respect to customary indemnification obligations in
favor of purchasers in connection with dispositions of Equipment permitted
under Section 8.4.2 of this Agreement; (g) consisting of reimbursement
obligations from time to time owing by any Borrower to an Issuing Bank with
respect to Letters of Credit (but in no event to include reimbursement
obligations at any time owing by a Borrower to any other Person that may
issue letters of credit for the account of Borrowers); (h) of MasTec
arising from any guaranty, indemnity or other assurance of payment or
performance of any equipment lease for which any other Obligor is the
primary obligor; and (i) other than those Contingent Obligations described
in the foregoing clauses of this definition, not exceeding $1,000,000 in
the aggregate at any time.

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     Permitted Purchase Money Debt — Purchase Money Debt of
Borrowers and their Subsidiaries that is secured by no Lien or only by a
Purchase Money Lien, provided that the aggregate amount of Purchase Money
Debt outstanding at any time does not exceed $30,000,000 and the incurrence
of such Purchase Money Debt does not violate any limitation in the Loan
Documents regarding Capital Expenditures. For the purposes of this
definition, the principal amount of any Purchase Money Debt consisting of
capitalized leases shall be computed as a Capitalized Lease Obligation.

     Verizon Concentration Percentage — (a) at any time that
Verizon’s corporate credit rating or senior debt rating (secured or
unsecured) by Moody’s is Baa3 or higher and by S&P BBB- or higher, 40%; or
(b) at any time that Verizon’s corporate credit rating or senior debt
rating (secured or unsecured) by Moody’s is lower than Baa3 or by S&P is
lower than BBB-, 15%; or (c) irrespective of Verizon’s rating, such lesser
percentage as Agent may in its reasonable credit judgment determine from
time to time.

          b. By deleting Section 10.2.1 of the Loan Agreement in its entirety and by
substituting the following in lieu thereof:

     10.2.1. Fundamental Changes. (i) Merge, reorganize,
consolidate or amalgamate with any Person, or liquidate, wind up its
affairs or dissolve itself, in each case whether in a single transaction or
in a series of related transactions, except that (a) any Obligor or any
Subsidiary of an Obligor may merge or amalgamate with an Obligor (provided
that an Obligor is the surviving or continuing entity of such merger or
amalgamation); (b) any Obligor or Subsidiary of an Obligor may liquidate,
wind up or dissolve itself (provided that all of its Property is
distributed to an Obligor upon the effectiveness of such liquidation,
winding up or dissolution and Agent’s Liens in all Property of the
liquidated, wound up or dissolved entity continue in uninterrupted effect
with the same priority as prior to such liquidation, winding up or
dissolution); and (c) the Property or Equity Interests of any Obligor or
any Subsidiary of an Obligor may be purchased or otherwise acquired by any
Obligor (provided that Agent’s Liens in all Property or Equity Interests so
purchased or acquired continue in uninterrupted effect with the same
priority as prior to such purchase or acquisition). Nothing herein shall
authorize any merger, consolidation or amalgamation or purchase of assets
or Equity Interests if, after giving effect thereto, any Property of an
Obligor would be subject to a Lien that is not a Permitted Lien; or

(ii) change an Obligor’s name or conduct business under any new fictitious
name; or change an Obligor’s FEIN, organizational identification number or
state of organization unless, in each such case, Borrowers shall have given
at least 30 days prior notice to Agent and shall have taken such action as
Agent may reasonably request to maintain the perfection and priority of any
Liens

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of Agent that would otherwise be affected thereby.

          c. By deleting Section 10.2.3 of the Loan Agreement in its entirety and by substituting the
following in lieu thereof:

10.2.3. Permitted Debt. Create, incur, assume, guarantee or
suffer to exist any Debt, except:

     (i) the Obligations;

     (ii) Subordinated Notes;

     (iii) accounts payable by such Borrower or a Subsidiary to
trade creditors that are not aged more than 90 days from billing
date or more than 30 days from the due date, in each case incurred
in the Ordinary Course of Business and paid within such time period,
unless the same are being Properly Contested or are paid in
accordance with Borrowers’ customary payment practices and are not
in default;

     (iv) Debt for rental payments under operating leases incurred
in the Ordinary Course of Business of such Borrower or Subsidiary
and not secured by a Lien (unless such Lien is a Permitted Lien);

     (v) Permitted Purchase Money Debt;

     (vi) Debt for accrued payroll, Taxes and other operating
expenses (other than for Money Borrowed) incurred in the Ordinary
Course of Business of such Borrower or such Subsidiary, including
Cash Management Obligations, in each case so long as payment thereof
is not past due and payable unless, in the case of Taxes only, such
Taxes are being Properly Contested;

     (vii) Debt for Money Borrowed by such Obligor (other than the
Obligations, Permitted Purchase Money Debt and Subordinated Debt
permitted herein), but only to the extent that such Debt is
outstanding on the date of this Agreement, as described on Schedule
10.2.3 and is not to be satisfied on or about the Closing Date from
the proceeds of the initial Loans;

     (viii) Permitted Contingent Obligations;

     (ix) Debt of any Person that is in existence at the time that
it becomes or is consolidated into or merged with a Subsidiary of
such Borrower in a Permitted Acquisition or that is secured by any
fixed asset acquired by any Borrower or any Subsidiary at the time
of any Permitted Acquisition, provided that such Debt is not
incurred in

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contemplation of such Person becoming a Subsidiary or such
acquisition of such asset by any Borrower or any of its
Subsidiaries, as the case may be;

     (x) Debt that is not included in any of the preceding
paragraphs of this Section 10.2.3, is not secured by a Lien (unless
such Lien is a Permitted Lien) and provided that the sum of the
aggregate amount of such Debt plus the aggregate amount of
Permitted Purchase Money Debt plus the aggregate amount of
Debt described in clause (ix) of this Section does not exceed at
any time $30,000,000 as to all Obligors and all of their
Subsidiaries, and provided further that, in no event shall the
aggregate amount of all such Debt exceed the maximum aggregate
amount of Debt that any of the Obligors are permitted to incur
under the Indenture; and

     (xi) Refinancing Debt so long as each of the Refinancing
Conditions is met.

None of the provisions of this Section 10.2.3 that authorize any Obligor to
incur any Debt shall be deemed to (A) override, modify or waive any of the
provisions of Section 10.3, which shall constitute an independent and
separate covenant and obligation of each Borrower, or (B) permit any
Obligor to incur any Debt in violation of any provision of the Indenture.

          d. By deleting Section 10.2.9 of the Loan Agreement in its entirety and by substituting the
following in lieu thereof:

     10.2.9. Capital Expenditures. Make Capital Expenditures (including
expenditures by way of capitalized leases) which in the aggregate,

as to all
Borrowers and their Subsidiaries, exceed $40,000,000 during 2006 Fiscal Year or
during any Fiscal Year thereafter.

          e. By deleting Section 10.3 of the Loan Agreement in its entirety and by substituting the
following in lieu thereof:

     10.3. Financial Covenant. For so long as there are any Commitments
outstanding and thereafter until Full Payment of the Obligations, Borrowers covenant
that, if Availability falls below $20,000,000 on any date, then Borrowers (a) shall
immediately demonstrate a Fixed Charge Coverage Ratio of at least 1.10 to 1.0,
calculated for the immediately preceding 12 calendar months for which financial
statements and the corresponding Compliance Certificate have been received by Agent
in accordance with Section 10.1.3 prior to such date, and (b) thereafter, until such
time as Availability is greater than or equal to $20,000,000 for 90 consecutive
days, maintain a Fixed Charge Coverage Ratio of at least 1.10 to 1.0, calculated as
of the last day of each month for the immediately preceding 12 calendar months for
which financial statements and the corresponding Compliance Certificate

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have been received by Agent in accordance with Section 10.1.3 prior to each
date of determination thereof. Borrowers shall include in each Compliance
Certificate a calculation of the Fixed Charge Coverage Ratio, whether or not
Borrowers are required under this Section to maintain a minimum Fixed Charge
Coverage Ratio at the date of, or with respect to the period covered by, the
Compliance Certificate.

          f. By deleting the Schedules to the Loan Agreement in their entireties and by
substituting in lieu thereof the revised Schedules attached hereto.

     3. Ratification and Reaffirmation. Each Borrower hereby ratifies and reaffirms the
Obligations, each of the Loan Documents and all of such Borrower’s covenants, duties, indebtedness
and liabilities under the Loan Documents.

     4. Acknowledgments and Stipulations. Each Borrower acknowledges and stipulates that
the Loan Agreement and the other Loan Documents executed by such Borrower are legal, valid and
binding obligations of such Borrower that are enforceable against such Borrower in accordance with
the terms thereof; all of the Obligations are owing and payable without defense, offset or
counterclaim (and to the extent there exists any such defense, offset or counterclaim on the date
hereof, the same is hereby waived by such Borrower); the security interests and Liens granted by
such Borrower in favor of Agent are duly perfected, first priority security interests and Liens,
subject only to Permitted Liens; and, as of the close on business on May 3, 2006,the unpaid
principal amount of the Revolver Loans totaled $0, and the face amount of outstanding Letters of
Credit totaled $63,945,498.74.

     5. Representations and Warranties. Each Borrower represents and warrants to Agent and
Lenders, to induce Agent and Lenders to enter into this Amendment, that no Default or Event of
Default exists on the date hereof; the execution, delivery and performance of this Amendment have
been duly authorized by all requisite entity action on the part of such Borrower and this Amendment
has been duly executed and delivered by such Borrower; and all of the representations and
warranties made by Borrowers in the Loan Agreement are true and correct in all material respects on
and as of the date hereof after giving effect to this Amendment and to the revised Schedules to the
Loan Agreement delivered herewith.

     6. Reference to Loan Agreement. Upon the effectiveness of this Amendment, each
reference in the Loan Agreement to “this Agreement,” “hereunder,” or words of like import shall
mean and be a reference to the Loan Agreement, as amended by this Amendment.

     7. Breach of Amendment. This Amendment shall be part of the Loan Agreement and a
breach of any representation, warranty or covenant herein shall constitute an Event of Default.

     8. Conditions Precedent. The amendments contained in Section 2 of this Amendment
shall become effective as of the date hereof, in each case on the date, in each case on the date on
which Agent shall have received, on or before May 8, 2005: the following documents, each of which
shall be satisfactory in form and substance to Agent and in sufficient copies for each Lender:

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          a. this Amendment duly executed and delivered by the Borrowers, the Lenders and Agent and the
Consent and Reaffirmation of Guarantors, duly executed and delivered by the Guarantors; and

          b. a certificate of the secretary or assistant secretary of each Obligor having attached
thereto the articles or certificate of incorporation and bylaws of such Obligor (or containing the
certification of such secretary or assistant secretary that no amendment or modification of such
articles or certificate of incorporation or bylaws has become effective since May 10, 2005), and
certifying all entity action, including shareholders’ or members’ approval, if necessary, has been
taken by such Obligor and/or its shareholders or members to authorize the execution, delivery and
performance of this Amendment and the incumbency of the officers of such Obligor executing this
Amendment and any other documents in connection herewith.

     9. Expenses of Agent. Borrowers agree to pay, on demand, all costs and expenses
incurred by Agent in connection with the preparation, negotiation and execution of this Amendment
and any other Loan Documents executed pursuant hereto and any and all amendments, modifications,
and supplements thereto, including, without limitation, the costs and fees of Agent’s legal counsel
and any taxes or expenses associated with or incurred in connection with any instrument or
agreement referred to herein or contemplated hereby.

     10. Effectiveness; Governing Law. This Amendment shall be effective upon acceptance
by Agent in Atlanta, Georgia (notice of which acceptance is hereby waived), whereupon the same
shall be governed by and construed in accordance with the internal laws of the State of Georgia.

     11. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

     12. No Novation, etc.. Except as otherwise expressly provided in this Amendment,
nothing herein shall be deemed to amend or modify any provision of the Loan Agreement or any of the
other Loan Documents, each of which shall remain in full force and effect. This Amendment is not
intended to be, nor shall it be construed to create, a novation or accord and satisfaction, and the
Loan Agreement as herein modified shall continue in full force and effect.

     13. Counterparts; Telecopied Signatures. This Amendment may be executed in any number
of counterparts and by different parties to this Amendment on separate counterparts, each of
which, when so executed, shall be deemed an original, but all such counterparts shall constitute
one and the same agreement. Any signature delivered by a party by facsimile transmission shall be
deemed to be an original signature hereto.

     14. Further Assurances. Each Borrower agrees to take such further actions as Agent shall
reasonably request from time to time in connection herewith to evidence or give effect to the
amendments set forth herein or any of the transactions contemplated hereby.

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     15. Section Titles. Section titles and references used in this Amendment shall be
without substantive meaning or content of any kind whatsoever and are not a part of the agreements
among the parties hereto.

     16. Waiver of Jury Trial. To the fullest extent permitted by Applicable Law, the
parties hereto each hereby waives the right to trial by jury in any action, suit, counterclaim or
proceeding arising out of or related to this Amendment.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under
seal and delivered by their respective duly authorized officers on the date first written above.

	 	 	 	 	 
	 	BORROWERS:

MASTEC, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	ATTEST: 	 	Name: 	Stephen M. Wagman 	 
	/s/
Alberto de
Cardenas               

Alberto de Cardenas, Secretary 

[CORPORATE SEAL]	 	Title: 	Executive Vice President	 
	 
	 	

MASTEC NORTH AMERICA AC, LLC

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MASTEC TC, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MASTEC FC, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 

[Signatures continue on following page]

-12-

 

	 	 	 	 	 
	 	MASTEC CONTRACTING COMPANY, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MASTEC MINNESOTA SW, LLC

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MASTEC SERVICES COMPANY, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MASTEC ASSET MANAGEMENT COMPANY, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	CHURCH & TOWER, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MASTEC OF TEXAS, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 

[Signatures continue on following page]

-13-

 

MASTEC NORTH AMERICA, INC.

(and
as successor by merger to each of Cruz-Cell, Inc., Dresser/Areia
Construction, Inc., Flaire Incorporated, MasTec Telcom &
Electrical Services,
Inc., Protel Ind., Inc., Upper Valley Utilities Corp., MasTec
Integration
Systems, Inc., MasTec Network Services, Inc., Renegade of Idaho,
Inc., MasTec
Real Estate Holdings, Inc., Northland Contracting, Inc., Wilde
Optical Service,
Inc., Church & Tower Environmental, Inc., Wilde Holding Co.,
Inc., and Wilde
Acquisition Co., Inc.)

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	S.S.S. CONSTRUCTION, INC.

 	 
	 	By:  	/s/ Bryan Westerman
 	 
	 	 	Name:  	Bryan Westerman 	 
	 	 	Title:  	Vice President/Secretary 	 
	 

[Signatures continue on following page]

-14-

 

	 	 	 	 	 
	 	LENDERS:

BANK OF AMERICA, N.A., as Agent and a Lender

 	 
	 	By:  	/s/ Dennis S. Losin 	 
	 	 	Dennis S. Losin, Senior Vice President 	 
	 	 	 	 
	 
	 	LASALLE BUSINESS CREDIT, LLC, as a Lender

 	 
	 	By:  	/s/ Monirah J. Masud
 	 
	 	 	Name:  	Monirah J. Masud 	 
	 	 	Title:  	Vice President 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/ Alex M. Council
 	 
	 	 	Name:  	Alex M. Council 	 
	 	 	Title:  	Vice President 	 
	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Syndication Agent and a Lender

 	 
	 	By:  	/s/ William R. Doolittle
 	 
	 	 	Name:  	William R. Doolittle 	 
	 	 	Title:  	Duly Authorized Signatory 	 

-15-

 

	 	 	 	 	 

CONSENT AND REAFFIRMATION

     Each of the undersigned guarantors of the Obligations at any time owing to Agent or Lenders
hereby (i) acknowledges receipt of a copy of the foregoing First Amendment to Amended and Restated
Loan and Security Agreement; (ii) consents to Borrowers’ execution and delivery thereof and of the
other documents, instruments or agreements any Borrower agrees to execute and deliver pursuant
thereto; (iii) agrees to be bound thereby; and (iv) affirms that nothing contained therein shall
modify in any respect whatsoever its respective guaranty of the Obligations and reaffirms that such
guaranty is and shall remain in full force and effect.

     IN WITNESS WHEREOF, the undersigned has executed this Consent and Reaffirmation in Miami, Florida, as of the date of such First Amendment to Amended and Restated Loan and Security
Agreement.

	 	 	 	 	 
	 	GUARANTORS:

PHASECOM SYSTEMS, INC.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	INTEGRAL POWER & TELECOMMUNICATIONS CORPORATION, LTD.

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	MASTEC NORTH AMERICA AC, LLC

 	 
	 	By:  	/s/ Stephen M. Wagman
 	 
	 	 	Name:  	Stephen M. Wagman 	 
	 	 	Title:  	Executive Vice President 	 
	 

-16-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]