Document:

wfcagree.htm

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CREDIT
      AGREEMENT

    

    dated
      as of September 10, 2007

    

    among

    

    DXP
      ENTERPRISES, INC.

    

    The
      Lenders From Time to Time Party Hereto

    

    and

    

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

     as
      Lead Arranger and Administrative Agent

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    SCHEDULES
      AND EXHIBITS:

    

    Exhibit
      A
      -- Assignment and Assumption

    Exhibit
      B
      -- Compliance Certificate

    Exhibit
      C-1 -- Revolving Note

    Exhibit
      C-2 -- Swingline Note

    

    Schedule
      2.01 -- Commitments

    Schedule
      3.12 -- Subsidiaries

    Schedule
      6.01 -- Existing Indebtedness

    Schedule
      6.02 -- Existing Liens

    Schedule
      6.04 -- Existing Investments

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
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    CREDIT
      AGREEMENT

     

    

    CREDIT
      AGREEMENT (as amended, modified, restated, supplemented and in effect from
      time
      to time, herein called this “Agreement”) dated as of September 10, 2007
      (the “Effective Date”), among DXP ENTERPRISES, INC., a Texas corporation,
      the LENDERS party hereto, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lead
      Arranger and Administrative Agent for the Lenders.

     

    ARTICLE
      I

     

    Definitions

     

    The
      parties hereto agree as follows:

     

    SECTION
      1.01.  Defined Terms.  As used in this Agreement, the
      following terms have the meanings specified below:

     

    “ABR”,
      when used in reference to any Loan or Borrowing, refers to whether such Loan,
      or
      the Loans comprising such Borrowing, are bearing interest at a rate determined
      by reference to the Alternate Base Rate.

     

    “Accounts”
      shall have the meaning assigned to it in the Uniform Commercial Code enacted
      in
      the State of Texas in force on the Effective Date.

     

    “Acquisition”
      means any transaction, or any series of related transactions, consummated on
      or
      after the date of this Agreement, by which the Borrower or any of its
      Subsidiaries (i) acquires any going business or all or substantially all of
      the
      assets of any firm, corporation or limited liability company, or division
      thereof, whether through purchase of assets, merger or otherwise or (ii)
      directly or indirectly acquires (in one transaction or as the most recent
      transaction in a series of transactions) at least a majority (in number of
      votes) of the securities of a corporation which have ordinary voting power
      for
      the election of directors (other than securities having such power only by
      reason of the happening of a contingency) or a majority (by percentage or voting
      power) of the outstanding ownership interests of a partnership or limited
      liability company.

     

    “Additional
      Collateral” shall have the meaning ascribed to such term in Section
      5.03(b) hereof.

     

    “Additional
      Collateral Event” shall have the meaning ascribed to such term in Section
      5.03(b) hereof.

     

    “Adjusted
      LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
      Period, an interest rate per annum (rounded upwards, if necessary, to the next
      1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied
      by
      (b) the Statutory Reserve Rate.

     

    “Administrative
      Agent” means Wells Fargo Bank, National Association, in its capacity as
      administrative agent for the Lenders hereunder, and its permitted successors
      in
      that capacity.

     

    
      
        
        

      

      
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    “Administrative
      Questionnaire” means an Administrative Questionnaire in a form supplied by
      the Administrative Agent.

     

    “Affiliate”
      means, with respect to a specified Person, another Person that directly, or
      indirectly through one or more intermediaries, Controls or is Controlled by
      or
      is under common Control with the Person specified.

     

    “Alternate
      Base Rate” means, for any day, a rate per annum equal to the greatest of (a)
      the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate
      in
      effect on such day plus 1/2 of 1%.  Any change in the Alternate
      Base Rate due to a change in the Prime Rate or the Federal Funds Effective
      Rate
      shall be effective from and including the effective date of such change in
      the
      Prime Rate or the Federal Funds Effective Rate, respectively.

     

    “Applicable
      Percentage” means, with respect to any Revolving Lender, the percentage of
      the total Commitments represented by such Lender’s Commitment.  If the
      Commitments have terminated or expired, the Applicable Percentages shall be
      determined based upon the Commitments most recently in effect, giving effect
      to
      any assignments.

     

    “Applicable
      Rate” means, for any day with respect to any ABR Loan or Eurodollar Loan or
      with respect to the commitment fees payable hereunder, as the case may be,
      the
      applicable rate per annum set forth below under the caption “ABR Spread”,
“Eurodollar Spread” or “Commitment Fee Rate”, as the case may be, based upon the
      Leverage Ratio as of the most recent determination date; but until December
      31,
      2007 the Eurodollar Spread shall be 1.25% and the ABR Spread shall be 0.25%
      and
      the Commitment Fee Rate shall be 0.25%:

     

    
      	
              Leverage
                Ratio

            	
              ABR
                Spread

            	
              Eurodollar
                Spread

            	
              Commitment
                Fee Rate

            
	
              Category
                1:

              greater
                than or equal to 3.00 to 1.00

            	
              0.25%

            	
              1.25%

            	
              0.25%

            
	
              Category
                2:

              greater
                than or equal to 2.75 to 1.00 but less than 3.00 to 1.00

            	
              0.125%

            	
              1.125%

            	
              0.20%

            
	
              Category
                3:

              greater
                than or equal to 2.50 to 1.00 but less than 2.75 to 1.00

            	
              0.00%

            	
              1.00%

            	
              0.175%

            
	
              Category
                4:

              greater
                than or equal to 2.25 to 1.00 but less than 2.50 to 1.00

            	
              0.00%

            	
              0.875%

            	
              0.15%

            
	
              Category
                5:

              less
                than 2.25 to 1.00

            	
              0.00%

            	
              0.75%

            	
              0.125%

            

    

    

    For
      purposes of the foregoing, (i) the Leverage Ratio shall be determined as of
      the
      end of each fiscal quarter of the Borrower’s fiscal year based upon the
      Borrower’s consolidated financial statements delivered pursuant to Sections
      5.01(a) or (b) and (ii) each change in the Applicable Rate resulting
      from a change in the Leverage Ratio shall be effective during the period
      commencing on and including the date of delivery to the Administrative Agent
      of
      such consolidated financial statements indicating such change and ending on
      the
      date immediately preceding the effective date of the next such change; but
      the
      Leverage Ratio shall be deemed to be in Category 1 at any time that an Event
      of
      Default has occurred which is continuing or at the request of the Required
      Lenders if the Borrower fails to timely deliver the consolidated financial
      statements required to be delivered by it pursuant to Sections 5.01(a) or
(b), during the period from the deadline for delivery thereof
      until such
      consolidated financial statements are received.

     

    “Approved
      Fund” has the meaning assigned to such term in Section
      9.04(b).

     

    “Asset
      Coverage Ratio” means, as of any day, the ratio of (a) the sum of (i)
      eighty-five percent (85%) of Net Accounts Receivable of the Borrower and its
      Subsidiaries as of the effective date of the most recent financial statement
      delivered by Borrower pursuant to Sections 5.01(a) or
(b)plus sixty percent (60%) of Net Inventory of the Borrower
      and
      its Subsidiaries as of the effective date of the most recent financial statement
      delivered by Borrower pursuant to Sections 5.01(a) or
(b)plus fifty percent (50%) of the Net Book Value of furniture,
      fixtures and equipment of the Borrower and its Subsidiaries as of the effective
      date of the most recent financial statement delivered by Borrower pursuant
      to
Sections 5.01(a) or (b) to (b) the aggregate outstanding principal
      balance of the Obligations as of the date of calculation of the Asset Coverage
      Ratio.

     

    “Assignment
      and Assumption” means an assignment and assumption entered into by a Lender
      and an assignee (with the consent of any party whose consent is required by
      Section 9.04), and accepted by the Administrative Agent, in the form of
Exhibit A or any other substantially similar form approved by the
      Administrative Agent.

     

    “Board”
      means the Board of Governors of the Federal Reserve System of the United States
      of America and any successor entity performing similar functions.

     

    “Borrower”
      means DXP ENTERPRISES, INC., a Texas corporation.

     

    “Borrowing”
      means (a) Loans of the same Class and Type, made, converted or continued on
      the
      same date and, in the case of  Eurodollar Loans, as to which a single
      Interest Period is in effect and (b) a Swingline Loan.

     

    
      
        
        

      

      
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    “Borrowing
      Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03.

     

    “Business
      Day” means any day that is not a Saturday, Sunday or other day on which
      commercial banks in Houston, Texas are authorized or required by law to remain
      closed; provided that, when used in connection with a Eurodollar Loan, the
      term
“Business Day” shall also exclude any day on which banks are not open for
      dealings in dollar deposits in the London interbank market.

     

    “Capital
      Expenditures” means, for any period, (a) the additions to property, plant
      and equipment and other capital expenditures of the Borrower and its
      consolidated Subsidiaries that are (or would be) set forth in a consolidated
      statement of cash flows of Borrower for such period prepared in accordance
      with
      GAAP and (b) Capital Lease Obligations incurred by the Borrower and its
      consolidated Subsidiaries during such period, but excluding expenditures for
      the
      restoration, repair or replacement of any fixed or capital asset which was
      destroyed or damaged, in whole or in part, to the extent financed by the
      proceeds of an insurance policy maintained by such Person.

     

    “Capital
      Lease Obligations” of any Person means the obligations of such Person to pay
      rent or other amounts under any lease of (or other arrangement conveying the
      right to use) real or personal property, or a combination thereof, which
      obligations are required to be classified and accounted for as capital leases
      on
      a balance sheet of such Person under GAAP, and the amount of such obligations
      shall be the capitalized amount thereof determined in accordance with
      GAAP.

     

    “Ceiling
      Rate” means, on any day, the maximum nonusurious rate of interest permitted
      for that day by whichever of applicable federal or Texas (or any jurisdiction
      whose usury laws are deemed to apply to the Notes or any other Loan Documents
      despite the intention and desire of the parties to apply the usury laws of
      the
      State of Texas) laws permits the higher interest rate, stated as a rate per
      annum.  On each day, if any, that the Texas Finance Code establishes
      the Ceiling Rate, the Ceiling Rate shall be the “weekly ceiling” (as defined in
      the Texas Finance Code) for that day.  Administrative Agent may from
      time to time, as to current and future balances, implement any other ceiling
      under the Texas Finance Code by notice to the Borrower, if and to the extent
      permitted by the Texas Finance Code.  Without notice to the Borrower
      or any other Person, the Ceiling Rate shall automatically fluctuate upward
      and
      downward as and in the amount by which such maximum nonusurious rate of interest
      permitted by applicable law fluctuates.

     

    “Change
      in Law” means (a) the adoption of any law, rule or regulation after the date
      of this Agreement, (b) any change in any law, rule or regulation or in the
      interpretation or application thereof by any Governmental Authority after the
      date of this Agreement or (c) compliance by any Lender or the Issuing Bank
      (or,
      for purposes of Section 2.14(b), by any lending office of such Lender or
      by such Lender’s or the Issuing Bank’s holding company, if any) with any binding
      request, guideline or directive (whether or not having the force of law) of
      any
      Governmental Authority made or issued after the date of this
      Agreement.

     

    “Change
      of Control” means a change resulting when any Unrelated Person or any
      Unrelated Persons acting together which would constitute a Group together with
      any Affiliates or

     

    
      
        
        

      

      
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    Related
      Persons thereof (in each case also constituting Unrelated Persons) shall at
      any
      time either (i) Beneficially Own more than 50% of the aggregate voting power
      of
      all classes of Voting Stock of Borrower or (ii) succeed in having sufficient
      of
      its or their nominees elected to the Board of Directors of Borrower such that
      such nominees, when added to any existing directors remaining on the Board
      of
      Directors of Borrower after such election who is an Affiliate or Related Person
      of such Person or Group, shall constitute a majority of the Board of Directors
      of Borrower.  As used herein (a) “Beneficially Own” means
“beneficially own” as defined in Rule 13d-3 of the Securities Exchange Act of
      1934, as amended, or any successor provision thereto; provided, however, that,
      for purposes of this definition, a Person shall not be deemed to Beneficially
      Own securities tendered pursuant to a tender or exchange offer made by or on
      behalf of such Person or any of such Person’s Affiliates until such tendered
      securities are accepted for purchase or exchange; (b) “David Little
      Group” means David Little or his estate, any family member, relative
      (including spouses and former spouses of relatives, descendants and their
      spouses and former spouses) or heir of David Little, any entity controlled
      by
      any of such persons or any trust for the benefit of any of such Persons; (c)
      “Group” means a “group” for purposes of Section 13(d) of the Securities
      Exchange Act of 1934, as amended; (d) “Unrelated Person” means at any
      time any Person other than Borrower or any Subsidiary of Borrower and other
      than
      any trust for any employee benefit plan of Borrower or any Subsidiary of
      Borrower and other than any one or more Person(s) in the David Little Group;
      (e)
“Related Person” of any Person shall mean any other Person owning (1) 5%
      or more of the outstanding common stock of such Person or (2) 5% or more of
      the
      Voting Stock of such Person; and (f) “Voting Stock” of any Person shall
      mean capital stock of such Person which ordinarily has voting power for the
      election of directors (or persons performing similar functions) of such Person,
      whether at all times or only so long as no senior class of securities has such
      voting power by reason of any contingency.

     

    “Class”,
      when used in reference to any Loan or Borrowing, refers to whether such Loan,
      or
      the Loans comprising such Borrowing, are Revolving Loans or Swingline
      Loans.

     

    “Code”
      means the Internal Revenue Code of 1986, as amended from time to
      time.

     

    “Collateral”
      means any and all “Collateral”, as defined in any applicable Security
      Document.

     

    “Commitment”
      means, with respect to each Lender, the commitment, if any, of such Lender
      to
      make Revolving Loans and to acquire participations in Letters of Credit and
      Swingline Loans hereunder, expressed as an amount representing the maximum
      aggregate amount of such Lender’s Revolving Exposure hereunder, as such
      commitment may be (a) reduced from time to time pursuant to Section 2.07
      and (b) reduced or increased from time to time pursuant to assignments by or
      to
      such Lender pursuant to Section 9.04.  The initial amount of
      each Lender’s Commitment is set forth on Schedule 2.01, or in the
      Assignment and Assumption pursuant to which such Lender shall have assumed
      its
      Commitment, as applicable.  The initial aggregate amount of the
      Lenders’ Commitments is $130,000,000.

     

    “Communication”
      shall have the meaning assigned to such term in Section 9.01(b)
      hereof.

     

    
      
        
        

      

      
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     “Contribution
      Agreement” means that certain Contribution Agreement dated concurrently
      herewith by and among Borrower and the current Subsidiaries of Borrower (other
      than Foreign Subsidiaries), as the same may be amended, modified, supplemented
      and restated--and joined in pursuant to a joinder agreement--from time to
      time.

     

    “Control”
      means the possession, directly or indirectly, of the power to direct or cause
      the direction of the management or policies of a Person, whether through the
      ability to exercise voting power, by contract or
      otherwise.  “Controlling” and “Controlled” have meanings correlative
      thereto.

     

    “Default”
      means any event or condition which constitutes an Event of Default or which
      upon
      notice, lapse of time or both would, unless cured or waived, become an Event
      of
      Default.

     

    “dollars”
      or “$” refers to lawful money of the United States of
      America.

     

    “EBITDA”
      means, without duplication, for any period the consolidated net income
      (excluding any extraordinary gains or losses) of the Borrower and its
      Subsidiaries plus, to the extent deducted in calculating consolidated net
      income, depreciation, amortization, other non-cash items and non-recurring
      items, Interest Expense, and tax expense for taxes based on income and
minus, to the extent added in calculating consolidated net income, any
      non-cash items and non-recurring items; provided that, if the Borrower or
      any of its Subsidiaries acquires the Equity Interests or assets of any Person
      during such period under circumstances permitted under Section 6.15
      hereof, EBITDA shall be adjusted to give pro forma effect to such acquisition
      assuming that such transaction had occurred on the first day of such period
      and
provided further that, if the Borrower or any of its Subsidiaries divests
      the Equity Interests or assets of any Person during such period under
      circumstances permitted under this Agreement, EBITDA shall be adjusted to give
      pro forma effect to such divestiture assuming that such transaction had occurred
      on the first day of such period.  Add-backs allowed pursuant to
      Article 11, Regulation S-X, of the Securities Act of 1933 will also be included
      in the calculation of EBITDA.

     

    “Environmental
      Laws” means all laws, rules, regulations, codes, ordinances, orders,
      decrees, judgments, injunctions, notices or binding agreements issued,
      promulgated or entered into by any Governmental Authority, relating in any
      way
      to the environment, preservation or reclamation of natural resources, the
      management, release or threatened release of any Hazardous Material or to health
      and safety matters.

     

    “Environmental
      Liability” means any liability, contingent or otherwise (including any
      liability for damages, costs of environmental remediation, fines, penalties
      or
      indemnities), of the Borrower or any other Loan Party directly or indirectly
      resulting from or based upon (a) violation of any Environmental Law, (b) the
      generation, use, handling, transportation, storage, treatment or disposal of
      any
      Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release
      or
      threatened release of any Hazardous Materials into the environment or (e) any
      contract, agreement or other consensual arrangement pursuant to which liability
      is assumed or imposed with respect to any of the foregoing.

     

    “Equity
      Interests” means shares of capital stock, partnership interests, membership
      interests in a limited liability company, beneficial interests in a trust or
      other equity ownership interests in a Person, or any warrants, options or other
      rights to acquire such interests.

     

    
      
        
        

      

      
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    “ERISA”
      means the Employee Retirement Income Security Act of 1974, as amended from
      time
      to time and the regulations and rulings issued thereunder.

     

    “ERISA
      Affiliate” means any Person that, together with the Borrower or any other
      Loan Party, is treated as a single employer under Section 414(b) or (c) of
      the
      Code or, solely for purposes of Section 302 of ERISA and Section 412 of the
      Code, Section 414(m) of the Code.

     

    “ERISA
      Event” means (a) the occurrence of a “reportable event”, as defined in
      Section 4043 of ERISA or the regulations issued thereunder with respect to
      a
      Plan unless the 30 day notice period requirement with respect to such event
      has
      been waived or the requirements of subsection (1) of Section 4043(b) of ERISA
      (without regard to subsection (2) of such Section) are met with respect to
      a
      contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan,
      and
      an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c)
      of ERISA is reasonably expected to occur with respect to such Plan within the
      following 30 days; (b) for plan years beginning prior to 2008, the existence
      with respect to any Plan of an “accumulated funding deficiency” (as defined in
      Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c)
      the
      filing of an application for a waiver of the minimum funding standard with
      respect to any Plan; (d) the incurrence by the Borrower or any other Loan Party
      or any of their ERISA Affiliates of any liability under Title IV of ERISA with
      respect to the termination of any Plan; (e) the receipt by the Borrower or
      any
      other Loan Party or any of their ERISA Affiliates from the PBGC or a plan
      administrator of any notice relating to an intention to terminate any Plan
      or
      Plans or to appoint a trustee to administer any Plan; (f) the incurrence by
      the
      Borrower or any other Loan Party or any of their ERISA Affiliates of any
      liability with respect to the withdrawal or partial withdrawal from any Plan
      or
      Multiemployer Plan; or (g) the receipt by the Borrower or any other Loan Party
      or any of their ERISA Affiliates of any notice, or the receipt by any
      Multiemployer Plan from the Borrower or any other Loan Party or any of their
      ERISA Affiliates of any notice, concerning the imposition of Withdrawal
      Liability or a determination that a Multiemployer Plan is, or is expected to
      be,
      insolvent or in reorganization, within the meaning of Title IV of
      ERISA.

     

    “Eurodollar”,
      when used in reference to any Loan or Borrowing, refers to whether such Loan,
      or
      the Loans comprising such Borrowing, are bearing interest at a rate determined
      by reference to the Adjusted LIBO Rate.

     

    “Event
      of Default” has the meaning assigned to such term in Article
      VII.

     

    “Excluded
      Assets” means (i) leasehold estates, (ii) motor vehicles and (iii) real
      property owned by Borrower or any of its Subsidiaries as of the date
      hereof.

     

    “Excluded
      Taxes” means, with respect to the Administrative Agent, any Lender, the
      Issuing Bank or any other recipient of any payment to be made by or on account
      of any obligation of the Borrower hereunder, (a) income or franchise taxes
      (however denominated) imposed on (or measured by) its net income by the United
      States of America, or by the jurisdiction under the laws of which such recipient
      is organized or in which its principal office is located or, in the case of
      any
      Lender, in which its applicable lending office is located or as a result of
      any
      connection between the recipient and the jurisdiction imposing such tax (other
      than any such connection arising solely from such recipient’s having executed,
      delivered or performed its obligations or received a payment under this
      Agreement or any other Loan

     

    
      
        
        

      

      
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    Document),
      (b) any branch profits taxes imposed by the United States of America or any
      similar tax imposed by any other jurisdiction in which the Borrower is located
      and (c) in the case of a Foreign Lender (other than an assignee pursuant to
      a
      request by the Borrower under Section 2.18(b)), any withholding tax that
      is imposed on amounts payable to such Foreign Lender at the time such Foreign
      Lender becomes a party to this Agreement (or designates a new lending office)
      or
      is attributable to such Foreign Lender’s failure to comply with Section
      2.16(e), except to the extent that such Foreign Lender (or its assignor, if
      any) was entitled, at the time of designation of a new lending office (or
      assignment), to receive additional amounts from the Borrower with respect to
      such withholding tax pursuant to Section 2.16(a); provided that with
      respect to an additional interest in a Loan acquired by a Foreign Lender as
      an
      assignee, such Foreign Lender shall be entitled to receive additional amounts
      from the Borrower pursuant to Section 2.16(a) with respect to such
      additional interest only to the extent that the assignor was entitled, at the
      time of such assignment, to receive additional amounts from the Borrower
      pursuant to Section 2.16(a).

     

    “Federal
      Funds Effective Rate” means, for any day, the weighted average (rounded
      upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight
      Federal funds transactions with members of the Federal Reserve System arranged
      by Federal funds brokers, as published on the next succeeding Business Day
      by
      the Federal Reserve Bank of New York, or, if such rate is not so published
      for
      any day that is a Business Day, the average (rounded upwards, if necessary,
      to
      the next 1/100 of 1%) of the quotations for such day for such transactions
      received by the Administrative Agent from three Federal funds brokers of
      recognized standing selected by the Administrative Agent.

     

    “Financial
      Officer” means the chief financial officer, principal accounting officer,
      treasurer or controller of the Borrower.

     

    “Fixed
      Charge Coverage Ratio” means, as of any day, the ratio of (a) EBITDA for the
      12 months ending on such date minus Capital Expenditures for such period
      (excluding Acquisitions)  to (b) Fixed Charges for such 12-month
      period, determined in each case on a consolidated basis for Borrower and its
      Subsidiaries.

     

    “Fixed
      Charges” means (without duplication), for any period, the aggregate of
      Interest Expense, scheduled principal payments in respect of long term debt,
      current portion of Capital Lease Obligations, and cash federal and state income
      taxes for such period.

     

    “Foreign
      Lender” means any Lender that is organized under the laws of a jurisdiction
      other than that in which the Borrower is located.  For purposes of
      this definition, the United States of America, each State thereof and the
      District of Columbia shall be deemed to constitute a single
      jurisdiction.

     

    “Foreign
      Subsidiaries” means Subsidiaries of the Borrower which are organized under
      the laws of a jurisdiction other than the United States of America, any State
      of
      the United States or any political subdivision thereof.

    

    “GAAP”
      means generally accepted accounting principles in the United States of
      America.

     

    
      
        
        

      

      
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    “Governmental
      Authority” means the government of the United States of America, any other
      nation or any political subdivision thereof, whether state or local, and any
      agency, authority, instrumentality, regulatory body, court, central bank or
      other entity exercising executive, legislative, judicial, taxing, regulatory
      or
      administrative powers or functions of or pertaining to government.

     

    “Guarantee”
      of or by any Person (the “guarantor”) means any obligation, contingent or
      otherwise, of the guarantor guaranteeing or having the economic effect of
      guaranteeing any Indebtedness or other obligation of any other Person (the
      “primary obligor”) in any manner, whether directly or indirectly, and including
      any obligation of the guarantor, direct or indirect, (a) to purchase or pay
      (or
      advance or supply funds for the purchase or payment of) such Indebtedness or
      other obligation or to purchase (or to advance or supply funds for the purchase
      of) any security for the payment thereof, (b) to purchase or lease property,
      securities or services for the purpose of assuring the owner of such
      Indebtedness or other obligation of the payment thereof, (c) to maintain working
      capital, equity capital or any other financial statement condition or liquidity
      of the primary obligor so as to enable the primary obligor to pay such
      Indebtedness or other obligation or (d) as an account party in respect of any
      letter of credit or letter of guaranty issued to support such Indebtedness
      or
      obligation; provided, that the term Guarantee shall not include endorsements
      for
      collection or deposit in the ordinary course of business.

     

    “Guaranty”
      means that certain Guaranty dated concurrently herewith executed by each
      Subsidiary of Borrower (other than Foreign Subsidiaries) as of the date hereof
      in favor of the Administrative Agent and any and all other guaranties now or
      hereafter executed in favor of the Administrative Agent relating to the
      Obligations hereunder and the other Loan Documents, as any of them may from
      time
      to time be amended, modified, restated or supplemented.

     

    “Hazardous
      Materials”  means all explosive or radioactive substances or
      wastes and all hazardous or toxic substances, wastes or other pollutants,
      including petroleum or petroleum distillates, asbestos or asbestos containing
      materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
      and all other substances or wastes of any nature regulated pursuant to any
      Environmental Law.

     

    “Indebtedness”
      of any Person means, without duplication, (a) all obligations of such Person
      for
      borrowed money, (b) all obligations of such Person evidenced by bonds,
      debentures, notes or similar instruments, (c) all obligations of such Person
      under conditional sale or other title retention agreements relating to property
      acquired by such Person, (d) all obligations of such Person in respect of the
      deferred purchase price of property or services (excluding current Accounts
      payable incurred in the ordinary course of business), (e) all Indebtedness
      of
      others secured by (or for which the holder of such Indebtedness has an existing
      right, contingent or otherwise, to be secured by) any Lien on property owned
      or
      acquired by such Person, whether or not the Indebtedness secured thereby has
      been assumed, (f) all Guarantees by such Person of Indebtedness of others,
      (g)
      all Capital Lease Obligations of such Person, (h) all obligations, contingent
      or
      otherwise, of such Person as an account party in respect of letters of credit
      and letters of guaranty and (i) all obligations, contingent or otherwise, of
      such Person in respect of bankers’ acceptances.  The Indebtedness of
      any Person shall include the Indebtedness of any other entity (including any
      partnership in which such Person is a general partner) to the extent such Person
      is liable therefor as a result of such Person’s ownership interest in or
      other

     

    
      
        
        

      

      
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    relationship
      with such entity, except to the extent the terms of such Indebtedness provide
      that such Person is not liable therefor.

     

    “Indemnified
      Taxes” means Taxes other than Excluded Taxes.

     

    “Interest
      Election Request” means a request by the Borrower to convert or continue a
      Revolving Borrowing in accordance with Section 2.06.

     

    “Interest
      Expense” means, for any period, total interest expense accruing on
      Indebtedness of the Borrower and its Subsidiaries, on a consolidated basis,
      during such period (including interest expense attributable to Capitalized
      Lease
      Obligations and amounts attributable to interest incurred under Swap
      Agreements), determined in accordance with GAAP.  For purposes of the
      foregoing, interest expense shall be determined after giving effect to any
      net
      payments made or received by the Borrower or any of its Subsidiaries with
      respect to interest rate Swap Agreements.

     

    “Interest
      Payment Date” means (a) with respect to any ABR Loan (other than a Swingline
      Loan), the last day of each calendar month, (b) with respect to any Eurodollar
      Loan, the last day of the Interest Period applicable to the Borrowing of which
      such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
      Period of more than three months’ duration, each day prior to the last day of
      such Interest Period that occurs at intervals of three months’ duration after
      the first day of such Interest Period, and (c) with respect to any Swingline
      Loan, the day that such Loan is required to be repaid.

     

    “Interest
      Period” means with respect to any Eurodollar Borrowing, the period
      commencing on the date of such Borrowing and ending on the numerically
      corresponding day in the calendar month that is one, two, three or six months
      thereafter, as the Borrower may elect; provided, that (i) if any Interest Period
      would end on a day other than a Business Day, such Interest Period shall be
      extended to the next succeeding Business Day unless such next succeeding
      Business Day would fall in the next calendar month, in which case such Interest
      Period shall end on the immediately preceding Business Day, and (ii) any
      Interest Period that commences on the last Business Day of a calendar month
      (or
      on a day for which there is no numerically corresponding day in the last
      calendar month of such Interest Period) shall end on the last Business Day
      of
      the last calendar month of such Interest Period.  For purposes hereof,
      the date of a Borrowing initially shall be the date on which such Borrowing
      is
      made and thereafter shall be the effective date of the most recent conversion
      or
      continuation of such Borrowing.

     

    “Inventory”
      shall have the meaning assigned to it in the Uniform Commercial Code enacted
      in
      the State of Texas in force on the Effective Date.

     

    “Issuing
      Bank” means Wells Fargo Bank, National Association, in its capacity as the
      issuer of Letters of Credit hereunder, and its successors in such capacity
      as
      provided in Section 2.04(i).  The Issuing Bank may, in its
      discretion, arrange for one or more Letters of Credit to be issued by Affiliates
      of the Issuing Bank, in which case the term “Issuing Bank” shall include any
      such Affiliate with respect to Letters of Credit issued by such
      Affiliate.

     

    “LC
      Disbursement” means a payment made by the Issuing Bank pursuant to a Letter
      of Credit.

     

    
      
        
        

      

      
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    “LC
      Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of
      all outstanding Letters of Credit at such time plus (b) the aggregate
      amount of all LC Disbursements that have not yet been reimbursed by or on behalf
      of the Borrower at such time.  The LC Exposure of any Revolving Lender
      at any time shall be its Applicable Percentage of the total LC Exposure at
      such
      time.

     

    “Lenders”
      means the Persons listed on Schedule 2.01 and any other Person that shall
      have become a party hereto pursuant to an Assignment and Assumption, other
      than
      any such Person that ceases to be a party hereto pursuant to an Assignment
      and
      Assumption. Unless the context otherwise requires, the term “Lenders” includes
      the Swingline Lender.

     

    “Letter
      of Credit” means any letter of credit issued pursuant to this
      Agreement.

     

    “Leverage
      Ratio” means, as of any day, the ratio of (a) Indebtedness as of such date
      to (b) EBITDA for the 12 months then ended, determined in each case on a
      consolidated basis for Borrower and its Subsidiaries.

     

    “LIBO
      Rate” means, with respect to any Eurodollar Borrowing for any Interest
      Period, the rate appearing on Page 3750 of the Dow Jones Market Service (or
      on
      any successor or substitute page of such Service, or any successor to or
      substitute for such Service, providing rate quotations comparable to those
      currently provided on such page of such Service, as determined by the
      Administrative Agent from time to time for purposes of providing quotations
      of
      interest rates applicable to dollar deposits in the London interbank market)
      at
      approximately 11:00 a.m., London time, two Business Days prior to the
      commencement of such Interest Period, as the rate for dollar deposits with
      a
      maturity comparable to such Interest Period.  In the event that such
      rate is not available at such time for any reason, then the “LIBO Rate” with
      respect to such Eurodollar Borrowing for such Interest Period shall be the
      rate
      (rounded upwards, if necessary, to the next 1/100 of 1%) at which dollar
      deposits of $5,000,000 and for a maturity comparable to such Interest Period
      are
      offered by the principal London office of the Administrative Agent in
      immediately available funds in the London interbank market at approximately
      11:00 a.m., London time, two Business Days prior to the commencement of such
      Interest Period.

     

    “Lien”
      means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
      hypothecation, encumbrance, charge or security interest in, on or of such asset,
      (b) the interest of a vendor or a lessor under any conditional sale agreement,
      capital lease or title retention agreement (or any financing lease having
      substantially the same economic effect as any of the foregoing) relating to
      such
      asset and (c) in the case of securities, any purchase option, call or similar
      right of a third party with respect to such securities.

     

    “Loan
      Documents” means, collectively, this Agreement, the Notes, the Guaranty, the
      Security Documents, the Notice of Entire Agreement, the Contribution Agreement,
      any subordination agreement relating to Subordinated Debt, all instruments,
      certificates and agreements now or hereafter executed or delivered to the
      Administrative Agent or any Lender pursuant to any of the foregoing or in
      connection with the obligations under this Agreement and the other Loan
      Documents or any commitment regarding such obligations, and all amendments,
      modifications, renewals, extensions, increases and rearrangements of, and
      substitutions for, any of the foregoing.

     

    
      
        
        

      

      
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    “Loan
      Parties” means the Borrower and each of its Subsidiaries (other than Foreign
      Subsidiaries).

     

    “Loans”
      means the loans made by the Lenders to the Borrower pursuant to this
      Agreement.

     

    “Material
      Adverse Effect” means a material adverse effect on (a) the business, assets,
      operations or condition, financial or otherwise, of the Borrower and its
      Subsidiaries taken as a whole, (b) the ability of any Loan Party to perform
      any
      of its obligations under any Loan Document or (c) the rights of or benefits
      available to the Lenders under any Loan Document.

     

    “Material
      Indebtedness” means Indebtedness (other than the Loans and Letters of
      Credit), or obligations in respect of one or more Swap Agreements, of any one
      or
      more of the Borrower and any other Loan Party in an aggregate principal amount
      exceeding $1,000,000.  For purposes of determining Material
      Indebtedness, the “principal amount” of the obligations in respect of any Swap
      Agreement at any time shall be the maximum aggregate amount (giving effect
      to
      any netting agreements) that would be required to be paid if such Swap Agreement
      were terminated at such time.

     

    “Maturity
      Date” means September 10, 2012.

     

    “Moody’s”
      means Moody’s Investors Service, Inc.

     

    “Mortgage”
      means a mortgage, deed of trust, assignment of leases and rents, leasehold
      mortgage or other security document granting a Lien on any Mortgaged
      Property  to secure the Obligations.  Each Mortgage shall be
      satisfactory in form and substance to the Administrative Agent.

     

    “Mortgaged
      Property” means each parcel of real property and improvements thereto with
      respect to which a Mortgage is granted pursuant hereto.  The Mortgaged
      Property shall not include any Excluded Assets.

     

    “Multiemployer
      Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
      ERISA.

     

    “Net
      Accounts Receivable” means the book value of Accounts minus
      allowances for doubtful Accounts, determined in accordance with
      GAAP.

     

    “Net
      Inventory” means the book value of Inventory minus the LIFO
      allowance, determined in accordance with GAAP.

     

    “Net
      Book Value” means cost minus accumulated depreciation.

     

    “Non-Consenting
      Lender” shall have the meaning assigned to such term in Section
      2.18(c) hereof.

     

    “Notes”
      shall have the meaning assigned to such term in Section 2.02(a)
      hereof.

     

    “Notice”
      shall have the meaning assigned to such term in Section 9.01(b)
      hereof.

     

    
      
        
        

      

      
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    “Notice
      of Entire Agreement” means a notice of entire agreement executed by
      Borrower, each other Loan Party and the Administrative Agent, as the same may
      from time to time be amended, modified, supplemented or restated.

     

    “Obligations”
      means, as at any date of determination thereof, the sum of the
      following:  (i) the aggregate principal amount of Loans outstanding
      hereunder, plus (ii) the aggregate amount of the LC Exposure, plus
      (iii) all other liabilities, obligations and indebtedness under any Loan
      Document of Borrower or any other Loan Party.

     

    “Other
      Taxes” means any and all present or future stamp or documentary taxes or any
      other excise or property taxes, charges or similar levies arising from any
      payment made under any Loan Document or from the execution, delivery or
      enforcement of, or otherwise with respect to, any Loan Document.

     

    “Participant”
      has the meaning set forth in Section 9.04(c).

     

    “PBGC”
      means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
      and any successor entity performing similar functions.

     

    “Permitted
      Encumbrances” means:

     

    (a)           Liens
      imposed by law for taxes that are not yet due or are being contested in
      compliance with Section 5.05;

     

    (b)           landlord’s,
      carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
      Liens imposed by law, arising in the ordinary course of business and securing
      obligations that are not overdue by more than 30 days or are being contested
      in
      compliance with Section 5.05;

     

    (c)           pledges
      and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
      regulations;

     

    (d)           deposits
      to secure the performance of bids, trade contracts, leases, statutory
      obligations, surety and appeal bonds, performance bonds and other obligations
      of
      a like nature, in each case in the ordinary course of business;

     

    (e)           judgment
      liens in respect of judgments that do not constitute an Event of Default under
      clause (k) of Article VII; and

     

    (f)           easements,
      zoning restrictions, rights-of-way and similar encumbrances on real property
      imposed by law or arising in the ordinary course of business that do not secure
      any monetary obligations and do not materially detract from the value of the
      affected property or interfere with the ordinary conduct of business of the
      Borrower or other Loan Party;

     

    provided
      that the term “Permitted Encumbrances” shall not include any Lien securing
      Indebtedness.

    

    “Permitted
      Investments” means:

     

    
      
        
        

      

      
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    (g)           direct
      obligations of, or obligations the principal of and interest on which are
      unconditionally guaranteed by, the United States of America (or by any agency
      thereof to the extent such obligations are backed by the full faith and credit
      of the United States of America), in each case maturing within one year from
      the
      date of acquisition thereof;

     

    (h)           investments
      in commercial paper maturing within 270 days from the date of acquisition
      thereof and having, at such date of acquisition, the highest credit rating
      obtainable from S&P or from Moody’s;

     

    (i)           investments
      in certificates of deposit, banker’s acceptances and time deposits maturing
      within 180 days from the date of acquisition thereof issued or guaranteed by
      or
      placed with, and money market deposit accounts issued or offered by, any
      domestic office of any commercial bank organized under the laws of the United
      States of America or any State thereof which has a combined capital and surplus
      and undivided profits of not less than $500,000,000;

     

    (j)           fully
      collateralized repurchase agreements with a term of not more than 30 days for
      securities described in clause (a) above and entered into with a
      financial institution satisfying the criteria described in clause (c)
      above; and

     

    (k)           money
      market funds that (i) comply with the criteria set forth in Securities and
      Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii)
      are
      rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at
      least $5,000,000,000.

     

    “Person”
      means any natural person, corporation, limited liability company, trust, joint
      venture, association, company, partnership, Governmental Authority or other
      entity.

     

    “Plan”
      means any employee pension benefit plan (other than a Multiemployer Plan)
      subject to the provisions of Title IV of ERISA or Section 412 of the Code or
      Section 302 of ERISA, and in respect of which the Borrower or other Loan Party
      or any of their ERISA Affiliates is (or, if such plan were terminated, would
      under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section
      3(5) of ERISA.

     

    “Platform”
      shall have the meaning assigned to such term in Section 9.01(b)
      hereof.

     

    “Prime
      Rate” means, on any day, the prime rate of Wells Fargo Bank, National
      Association in effect for that day at the principal offices of Wells Fargo
      Bank,
      National Association in San Francisco, California.  The Prime Rate is
      a reference rate and does not necessarily represent the lowest or best rate
      or a
      favored rate, and Administrative Agent and each Lender disclaims any statement,
      representation or warranty to the contrary.  Administrative Agent, any
      Lender or Wells Fargo Bank, National Association may make commercial loans
      or
      other loans at rates of interest at, above or below the Prime Rate.

     

    “Purchase
      Agreement” shall have the meaning ascribed to such term in Section
      4.01(j) hereof.

     

    “Register”
      has the meaning set forth in Section 9.04(b).

     

    
      
        
        

      

      
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    “Related
      Parties” means, with respect to any specified Person, such Person’s
      Affiliates and the respective directors, officers, employees, agents and
      advisors of such Person and such Person’s Affiliates.

     

    “Required
      Lenders” means two or more Lenders having Revolving Exposures and unused
      Commitments representing greater than 50% of the sum of the total Revolving
      Exposures and unused Commitments at such time.

     

    “Restricted
      Payment” means (i) any payment or prepayment of any Subordinated Debt or
      (ii) any dividend or other distribution (whether in cash, securities or other
      property) with respect to any Equity Interests in the Borrower or other Loan
      Party, or any payment (whether in cash, securities or other property), including
      any sinking fund or similar deposit, on account of the purchase, redemption,
      retirement, acquisition, cancellation or termination of any Equity Interests
      in
      the Borrower or other Loan Party or any option, warrant or other right to
      acquire any such Equity Interests in the Borrower or other Loan
      Party.

     

    “Revolving
      Availability Period” means the period from and including the Effective Date
      to but excluding the earlier of the Maturity Date and the date of termination
      of
      the Commitments.

     

    “Revolving
      Exposure” means, with respect to any Lender at any time, the sum of the
      outstanding principal amount of such Lender’s Revolving Loans and its LC
      Exposure and Swingline Exposure at such time.

     

    “Revolving
      Lender” means a Lender with a Commitment or, if the Commitments have
      terminated or expired, a Lender with Revolving Exposure.

     

    “Revolving
      Loan” means a Loan made pursuant to Section 2.01.

     

    “S&P”
      means Standard & Poor’s Ratings Group.

     

    “Security
      Agreements” means, collectively, (i) the Security Agreements dated as of the
      Effective Date executed between Borrower and each of its Subsidiaries (other
      than Foreign Subsidiaries), respectively, and Administrative Agent and (ii)
      any
      and all security agreements hereafter executed in favor of Administrative Agent
      and securing all or any part of the Obligations, as any of them may from time
      to
      time be amended, modified, restated or supplemented.

     

    “Security
      Documents” means, collectively, the Mortgages, the Security Agreements and
      any and all other agreements, deeds of trust, mortgages, chattel mortgages,
      security agreements, pledges, guaranties, assignments of production or proceeds
      of production, assignments of income, assignments of contract rights,
      assignments of partnership interest, assignments of royalty interests,
      assignments of performance, completion or surety bonds, standby agreements,
      subordination agreements, undertakings and other instruments and financing
      statements now or hereafter executed and delivered as security for the
      Obligations, as any of them may from time to time be amended, modified, restated
      or supplemented.

     

    “Statutory
      Reserve Rate” means a fraction (expressed as a decimal), the numerator of
      which is the number one and the denominator of which is the number one
minus the aggregate of the maximum reserve percentages (including any
      marginal, special, emergency or supplemental

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    reserves)
      expressed as a decimal established by the Board to which the Administrative
      Agent is subject for Eurocurrency funding (currently referred to as
“Eurocurrency Liabilities” in Regulation D of the Board).  Such
      reserve percentages shall include those imposed pursuant to such Regulation
      D.  Eurodollar Loans shall be deemed to constitute Eurocurrency
      fundings and to be subject to such reserve requirements without benefit of
      or
      credit for proration, exemptions or offsets that may be available from time
      to
      time to any Lender under such Regulation D or any comparable
      regulation.  The Statutory Reserve Rate shall be adjusted
      automatically on and as of the effective date of any change in any reserve
      percentage.

     

    “Subordinated
      Debt” means all Indebtedness of a Person which has been subordinated on
      terms and conditions satisfactory to the Required Lenders, in their sole
      discretion, to all of the Obligations, whether now existing or hereafter
      incurred.  Indebtedness shall not be considered as “Subordinated Debt”
unless and until the Administrative Agent shall have received copies of the
      documentation evidencing or relating to such Indebtedness together with a
      subordination agreement, in form and substance satisfactory to the Required
      Lenders, duly executed by the holder or holders of such Indebtedness and
      evidencing the terms and conditions of the required subordination.

     

    “Subordinated
      Debt Documents” means any indenture or note under which any Subordinated
      Debt is issued and all other instruments, agreements and other documents
      evidencing or governing any Subordinated Debt or providing for any Guarantee
      or
      other right in respect thereof.

     

    “Subsidiary”
      means, with respect to any Person (the “parent”) at any date, any corporation,
      limited liability company, partnership, association or other entity the accounts
      of which would be consolidated with those of the parent in the parent’s
      consolidated financial statements if such financial statements were prepared
      in
      accordance with GAAP as of such date, as well as any other corporation, limited
      liability company, partnership, association or other entity (a) of which
      securities or other ownership interests representing more than 50% of the equity
      or more than 50% of the ordinary voting power or, in the case of a partnership,
      more than 50% of the general partnership interests are, as of such date, owned,
      Controlled or held, or (b) that is, as of such date, otherwise Controlled,
      by
      the parent or one or more Subsidiaries of the parent or by the parent and one
      or
      more Subsidiaries of the parent.  Notwithstanding the foregoing,
      Global Pump Service and Supply, LLC, a Texas limited liability company, shall
      not be considered a Subsidiary of Borrower unless Borrower (or a Subsidiary
      of
      Borrower) becomes the owner of all of the Equity Interests in and to such
      entity.

     

    “Swap
      Agreement” means any agreement with respect to any swap, forward, future or
      derivative transaction or option or similar agreement involving, or settled
      by
      reference to, one or more rates, currencies, commodities, equity or debt
      instruments or securities, or economic, financial or pricing indices or measures
      of economic, financial or pricing risk or value or any similar transaction
      or
      any combination of these transactions; provided that no phantom stock or similar
      plan providing for payments only on account of services provided by current
      or
      former directors, officers, employees or consultants of the Borrower or its
      Subsidiaries shall be a Swap Agreement.

     

    “Swingline
      Exposure” means, at any time, the aggregate principal amount of all
      Swingline Loans outstanding at such time.  The Swingline Exposure of
      any Lender at any time

     

    
      
        
        

      

      
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    shall
      be
      its Applicable Percentage of the total Swingline Exposure at such
      time.  The initial maximum amount of Swingline Exposure is
      $10,000,000.

     

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

     

    “Swingline
      Loan” means a Loan made pursuant to Section 2.19.

     

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

     

    “Transactions”
      means (a) the execution, delivery and performance by each Loan Party of the
      Loan
      Documents to which it is to be a party, the borrowing of Loans, the use of
      the
      proceeds thereof and the issuance of Letters of Credit hereunder and (b) the
      execution, delivery and performance by each Loan Party of each other document
      and instrument required to satisfy the conditions precedent to the initial
      Loan
      hereunder.

     

    “Type”,
      when used in reference to any Loan or Borrowing, refers to whether the rate
      of
      interest on such Loan, or on the Loans comprising such Borrowing, is determined
      by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

     

    “Withdrawal
      Liability” means liability to a Multiemployer Plan as a result of a complete
      or partial withdrawal from such Multiemployer Plan, as such terms are defined
      in
      Part I of Subtitle E of Title IV of ERISA.

     

    SECTION
      1.02.  Classification of Loans and Borrowings.  For
      purposes of this Agreement, Loans may be classified and referred to by Class
      (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class
      and Type (e.g., a “Eurodollar Revolving Loan”).  Borrowings also may
      be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by
      Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar
      Revolving Borrowing”).

     

    SECTION
      1.03.  Terms Generally.  The definitions of terms
      herein shall apply equally to the singular and plural forms of the terms
      defined.  Whenever the context may require, any pronoun shall include
      the corresponding masculine, feminine and neuter forms.  The words
“include”, “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”.  The word “will” shall be construed to
      have the same meaning and effect as the word “shall”.  Unless the
      context requires otherwise (a) any definition of or reference to any agreement,
      instrument or other document herein shall be construed as referring to such
      agreement, instrument or other document as from time to time amended,
      supplemented or otherwise modified (subject to any restrictions on such
      amendments, supplements or modifications set forth herein), (b) any reference
      herein to any Person shall be construed to include such Person’s successors and
      assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
      import, shall be construed to refer to this Agreement in its entirety and not
      to
      any particular provision hereof, (d) all references herein to Articles,
      Sections, Exhibits and Schedules shall be construed to refer to Articles and
      Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
      “asset” and “property” shall be construed to have the same

     

    
      
        
        

      

      
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    meaning
      and effect and to refer to any and all tangible and intangible assets and
      properties, including cash, securities, Accounts and contract
      rights.

     

    SECTION
      1.04.  Accounting Terms; GAAP.  Except as otherwise
      expressly provided herein, all terms of an accounting or financial nature shall
      be construed in accordance with GAAP, as in effect from time to time; provided
      that, if the Borrower notifies the Administrative Agent that the Borrower
      requests an amendment to any provision hereof to eliminate the effect of any
      change occurring after the date hereof in GAAP or in the application thereof
      on
      the operation of such provision (or if the Administrative Agent notifies the
      Borrower that the Required Lenders request an amendment to any provision hereof
      for such purpose), regardless of whether any such notice is given before or
      after such change in GAAP or in the application thereof, then such provision
      shall be interpreted on the basis of GAAP as in effect and applied immediately
      before such change shall have become effective until  such notice
      shall have been withdrawn or such provision  amended in accordance
      herewith.

     

    ARTICLE
      II

     

    The
      Credits

     

    SECTION
      2.01.  Commitments.  Subject to the terms and
      conditions set forth herein, each Lender agrees to make Revolving Loans to
      the
      Borrower from time to time during the Revolving Availability Period in an
      aggregate principal amount that will not result in such Lender’s Revolving
      Exposure exceeding such Lender’s Commitment.  Within the foregoing
      limits and subject to the terms and conditions set forth herein, the Borrower
      may borrow, prepay and reborrow Revolving Loans.

     

    SECTION
      2.02.  Loans and Borrowings.

     

    (a)           Each
      Loan (other than a Swingline Loan) shall be made as part of a Borrowing
      consisting of Loans of the same Class and Type made by the Lenders ratably
      in
      accordance with their respective Commitments of the applicable
      Class.  The failure of any Lender to make any Loan required to be made
      by it shall not relieve any other Lender of its obligations hereunder; provided
      that the Commitments of the Lenders are several and no Lender shall be
      responsible for any other Lender’s failure to make Loans as
      required.  The Loans made by each Lender shall be evidenced by a
      single Note of Borrower (each, together with all renewals, extensions,
      modifications and replacements thereof and substitutions therefor, a
“Note,” collectively, the “Notes”) in substantially the forms of
Exhibit C-1 (Revolving Loans) and Exhibit C-2 (Swingline Loans)
      respectively, payable to the order of such Lender in a principal amount equal
      to
      the applicable Commitment of such Lender with respect to Revolving Loans, and
      in
      the principal amount of $10,000,000 with respect to Swingline Loans and
      otherwise duly completed.  Each Lender is hereby authorized by
      Borrower to endorse on the schedule (or a continuation thereof) that may be
      attached to each Note of such Lender, to the extent applicable, the date,
      amount, type of and the applicable period of interest for each Loan made by
      such
      Lender to Borrower hereunder, and the amount of each payment or prepayment
      of
      principal of such Loan received by such Lender, provided, that any failure
      by
      such Lender to make any such endorsement shall not affect the obligations of
      Borrower under such Note or hereunder in respect of such Loan.

     

    
      
        
        

      

      
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    (b)           Subject
      to Section 2.13, each Revolving Borrowing shall be comprised entirely of
      ABR Loans or Eurodollar Loans as the Borrower may request in accordance
      herewith.  Each Swingline Loan shall be an ABR Loan.  Each
      Lender at its option may make any Eurodollar Loan by causing any domestic or
      foreign branch or Affiliate of such Lender to make such Loan; provided that
      any
      exercise of such option shall not affect the obligation of the Borrower to
      repay
      such Loan in accordance with the terms of this Agreement.

     

    (c)           At
      the commencement of each Interest Period for any Eurodollar Borrowing, such
      Borrowing shall be in an aggregate amount equal to $500,000 or an amount that
      is
      an integral multiple of $100,000 in excess thereof.  At the time that
      each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate
      amount $500,000 or an amount that is an integral multiple of $100,000 in excess
      thereof; provided that an ABR Revolving Borrowing may be in an aggregate amount
      that is equal to the entire unused balance of the total Commitments or that
      is
      required to finance the reimbursement of an LC Disbursement as contemplated
      by
Section 2.04(e).  Except as may be permitted under Section
      2.19(d) hereof, each Swingline Loan shall be in an amount that is an
      integral multiple of $25,000.  Borrowings of more than one Type and
      Class may be outstanding at the same time; provided that there shall not at
      any
      time be more than a total of six (6) Eurodollar Borrowings
      outstanding.

     

    (d)           Notwithstanding
      any other provision of this Agreement, the Borrower shall not be entitled to
      request, or to elect to convert or continue, any Borrowing if the Interest
      Period requested with respect thereto would end after the Maturity
      Date.

     

    SECTION
      2.03.  Requests for Borrowings.  To request a
      Revolving Borrowing, the Borrower shall notify the Administrative Agent of
      such
      request by telephone (a) in the case of a Eurodollar Borrowing, not later than
      11:00 a.m., Houston, Texas time, three Business Days before the date of the
      proposed Borrowing and (b) in the case of an ABR Borrowing, not later than
      11:00
      a.m., Houston, Texas time, one Business Day before the date of the proposed
      Borrowing; provided that any such notice of an ABR Revolving Borrowing to
      finance the reimbursement of an LC Disbursement as contemplated by Section
      2.04(e) may be given not later than 10:00 a.m., Houston, Texas time, on the
      date of the proposed Borrowing.  Each such telephonic Borrowing
      Request shall be irrevocable and shall be confirmed promptly by hand delivery
      or
      telecopy to the Administrative Agent of a written Borrowing Request in a form
      approved by the Administrative Agent and signed by the Borrower.  Each
      such telephonic and written Borrowing Request shall specify the following
      information in compliance with Section 2.02:

     

    (i)           the
      aggregate amount of the requested Borrowing;

     

    (ii)           the
      date of such Borrowing, which shall be a Business Day;

     

    (iii)           whether
      such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

     

    (iv)           in
      the case of a Eurodollar Borrowing, the initial Interest Period to be applicable
      thereto, which shall be a period contemplated by the definition of the term
      “Interest Period”; and

     

    
      
        
        

      

      
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    (v)           the
      location and number of the Borrower’s account to which funds are to be
      disbursed, which shall comply with the requirements of Section
      2.05(a).

     

    If
      no
      election as to the Type of Borrowing is specified, then the requested Borrowing
      shall be an ABR Borrowing.  If no Interest Period is specified with
      respect to any requested Eurodollar Revolving Borrowing, then the Borrower
      shall
      be deemed to have selected an Interest Period of one month’s
      duration.  Promptly following receipt of a  Borrowing
      Request in accordance with this Section, the Administrative Agent shall advise
      each Lender of the details thereof and of the amount of such Lender’s Loan to be
      made as part of the requested Borrowing.

     

    SECTION
      2.04.  Letters of Credit.

     

    (a)           General.  Subject
      to the terms and conditions set forth herein, the Borrower may request the
      issuance of Letters of Credit for its own account, in a form reasonably
      acceptable to the Administrative Agent and the Issuing Bank, at any time and
      from time to time during the Revolving Availability Period.  In the
      event of any inconsistency between the terms and conditions of this Agreement
      and the terms and conditions of any form of letter of credit application or
      other agreement submitted by the Borrower to, or entered into by the Borrower
      with, the Issuing Bank relating to any Letter of Credit, the terms and
      conditions of this Agreement shall control.

     

    (b)           Notice
      of Issuance, Amendment, Renewal, Extension; Certain
      Conditions.  To request the issuance of a Letter of Credit (or the
      amendment, renewal or extension of an outstanding Letter of Credit), the
      Borrower shall hand deliver or telecopy (or transmit by electronic
      communication, if arrangements for doing so have been approved by the Issuing
      Bank) to the Issuing Bank and the Administrative Agent (at least five Business
      Days in advance of the requested date of issuance, amendment, renewal or
      extension) a notice requesting the issuance of a Letter of Credit, or
      identifying the Letter of Credit to be amended, renewed or extended, and
      specifying the date of issuance, amendment, renewal or extension (which shall
      be
      a Business Day), the date on which such Letter of Credit is to expire (which
      shall comply with paragraph (c) of this Section), the amount of such Letter
      of
      Credit, the name and address of the beneficiary thereof and such other
      information as shall be necessary to prepare, amend, renew or extend such Letter
      of Credit.  If requested by the Issuing Bank, the Borrower also shall
      submit a letter of credit application on the Issuing Bank’s standard form in
      connection with any request for a Letter of Credit.  A Letter of
      Credit shall be issued, amended, renewed or extended only if (and upon issuance,
      amendment, renewal or extension of each Letter of Credit the Borrower shall
      be
      deemed to represent and warrant that), after giving effect to such issuance,
      amendment, renewal or extension the total Revolving Exposures shall not exceed
      the total Commitments.

     

    (c)           Expiration
      Date.  Each Letter of Credit shall expire at or prior to the close
      of business on the date that is five Business Days prior to the Maturity
      Date.

     

    (d)           Participations.  By
      the issuance of a Letter of Credit (or an amendment to a Letter of Credit
      increasing the amount thereof) and without any further action on the part of
      the
      Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Revolving
      Lender, and each Revolving Lender hereby acquires from the Issuing Bank, a
      participation in such Letter of Credit equal to such Lender’s Applicable
      Percentage of the aggregate amount available to be drawn under such Letter
      of
      Credit.  In consideration and in furtherance of the foregoing,
      each

     

    
      
        
        

      

      
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    Revolving
      Lender hereby absolutely and unconditionally agrees to pay to the Administrative
      Agent, for the account of the Issuing Bank, such Lender’s Applicable Percentage
      of each LC Disbursement made by the Issuing Bank and not reimbursed by the
      Borrower on the date due as provided in paragraph (e) of this Section, or of
      any
      reimbursement payment required to be refunded to the Borrower for any
      reason.  Each Lender acknowledges and agrees that its obligation to
      acquire participations pursuant to this paragraph in respect of Letters of
      Credit is absolute and unconditional and shall not be affected by any
      circumstance whatsoever, including any amendment, renewal or extension of any
      Letter of Credit or the occurrence and continuance of a Default or reduction
      or
      termination of the Commitments, and that each such payment shall be made without
      any offset, abatement, withholding or reduction whatsoever.

     

    (e)           Reimbursement.  If
      the Issuing Bank shall make any LC Disbursement in respect of a Letter of
      Credit, the Borrower shall reimburse such LC Disbursement by paying to the
      Administrative Agent an amount equal to such LC Disbursement not later than
      2:00
      p.m., Houston, Texas time, on the date that such LC Disbursement is made, if
      the
      Borrower shall have received notice of such LC Disbursement prior to 10:00
      a.m.,
      Houston, Texas time, on such date, or, if such notice has not been received
      by
      the Borrower prior to such time on such date, then not later than 2:00 p.m.,
      Houston, Texas time, on (i) the Business Day that the Borrower receives such
      notice, if such notice is received prior to 10:00 a.m., Houston, Texas time,
      on
      the day of receipt, or (ii) the Business Day immediately following the day
      that
      the Borrower receives such notice, if such notice is not received prior to
      such
      time on the day of receipt; provided that the Borrower may, subject to the
      conditions to borrowing set forth herein, request in accordance with this
      Agreement that such payment be financed with an ABR Revolving Borrowing or
      Swingline Loan in an equivalent amount and, to the extent so financed, the
      Borrower’s obligation to make such payment shall be discharged and replaced by
      the resulting ABR Revolving Borrowing or Swingline Loan.  If the
      Borrower fails to make such payment when due, the Administrative Agent shall
      notify each Revolving Lender of the applicable LC Disbursement, the payment
      then
      due from the Borrower in respect thereof and such Lender’s Applicable Percentage
      thereof.  Promptly following receipt of such notice, each Revolving
      Lender shall pay to the Administrative Agent its Applicable Percentage of the
      payment then due from the Borrower, in the same manner as provided in Section
      2.05 with respect to Loans made by such Lender (and Section 2.05
      shall apply, mutatis mutandis, to the payment obligations of the Revolving
      Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank
      the amounts so received by it from the Revolving Lenders.  Promptly
      following receipt by the Administrative Agent of any payment from the Borrower
      pursuant to this paragraph, the Administrative Agent shall distribute such
      payment to the Issuing Bank or, to the extent that Revolving Lenders have made
      payments pursuant to this paragraph to reimburse the Issuing Bank, then to
      such
      Lenders and the Issuing Bank as their interests may appear.  Any
      payment made by a Revolving Lender pursuant to this paragraph to reimburse
      the
      Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving
      Loans or Swingline Loan as contemplated above) shall not constitute a Loan
      and
      shall not relieve the Borrower of its obligation to reimburse such LC
      Disbursement.

     

    (f)           Obligations
      Absolute.  The Borrower’s obligation to reimburse LC Disbursements
      as provided in paragraph (e) of this Section shall be absolute, unconditional
      and irrevocable, and shall be performed strictly in accordance with the terms
      of
      this Agreement under any and all circumstances whatsoever and irrespective
      of
      (i) any lack of validity or enforceability of any Letter of Credit or this
      Agreement, or any term or provision therein, (ii) any draft or
      other

     

    
      
        
        

      

      
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    document
      presented under a Letter of Credit proving to be forged, fraudulent or invalid
      in any respect or any statement therein being untrue or inaccurate in any
      respect, (iii) payment by the Issuing Bank under a Letter of Credit against
      presentation of a draft or other document that does not comply with the terms
      of
      such Letter of Credit, or (iv) any other event or circumstance whatsoever,
      whether or not similar to any of the foregoing, that might, but for the
      provisions of this Section, constitute a legal or equitable discharge of, or
      provide a right of setoff against, the Borrower’s obligations
      hereunder.  Neither the Administrative Agent, the Lenders nor the
      Issuing Bank, nor any of their Related Parties, shall have any liability or
      responsibility by reason of or in connection with the issuance or transfer
      of
      any Letter of Credit or any payment or failure to make any payment thereunder
      (irrespective of any of the circumstances referred to in the preceding
      sentence), or any error, omission, interruption, loss or delay in transmission
      or delivery of any draft, notice or other communication under or relating to
      any
      Letter of Credit (including any document required to make a drawing thereunder),
      any error in interpretation of technical terms or any consequence arising from
      causes beyond the control of the Issuing Bank; provided that the foregoing
      shall
      not be construed to excuse the Issuing Bank from liability to the Borrower
      to
      the extent of any direct damages (as opposed to consequential damages, claims
      in
      respect of which are hereby waived by the Borrower to the extent permitted
      by
      applicable law) suffered by the Borrower that are caused by the Issuing Bank’s
      failure to exercise care when determining whether drafts and other documents
      presented under a Letter of Credit comply with the terms thereof.  The
      parties hereto expressly agree that, in the absence of gross negligence or
      willful misconduct on the part of the Issuing Bank (as finally determined by
      a
      court of competent jurisdiction), the Issuing Bank shall be deemed to have
      exercised care in each such determination.  In furtherance of the
      foregoing and without limiting the generality thereof, the parties agree that,
      with respect to documents presented which appear on their face to be in
      substantial compliance with the terms of a Letter of Credit, the Issuing Bank
      may, in its sole discretion, either accept and make payment upon such documents
      without responsibility for further investigation, regardless of any notice
      or
      information to the contrary, or refuse to accept and make payment upon such
      documents if such documents are not in strict compliance with the terms of
      such
      Letter of Credit.

     

    (g)           Disbursement
      Procedures.  The Issuing Bank shall, promptly following its
      receipt thereof, examine all documents purporting to represent a demand for
      payment under a Letter of Credit.  The Issuing Bank shall promptly
      notify the Administrative Agent and the Borrower by telephone (confirmed by
      telecopy) of such demand for payment and whether the Issuing Bank has made
      or
      will make an LC Disbursement thereunder; provided that any failure to give
      or
      delay in giving such notice shall not relieve the Borrower of its obligation
      to
      reimburse the Issuing Bank and the Revolving Lenders with respect to any such
      LC
      Disbursement.

     

    (h)           Interim
      Interest.  If the Issuing Bank shall make any LC Disbursement,
      then, unless the Borrower shall reimburse such LC Disbursement in full on the
      date such LC Disbursement is made, the unpaid amount thereof shall bear
      interest, for each day from and including the date such LC Disbursement is
      made
      to but excluding the date that the Borrower reimburses such LC Disbursement,
      at
      the rate per annum then applicable to ABR Revolving Loans; provided that, if
      the
      Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph
      (e) of this Section, then Section 2.12(c) shall
      apply.  Interest accrued pursuant to this paragraph shall be for the
      account of the Issuing Bank, except that interest accrued on and after the
      date
      of payment by any Revolving Lender pursuant to paragraph (e) of

     

    
      
        
        

      

      
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    this
      Section to reimburse the Issuing Bank shall be for the account of such Lender
      to
      the extent of such payment.

     

    (i)           Replacement
      of the Issuing Bank.  The Issuing Bank may be replaced at any time
      by written agreement among the Borrower, the Administrative Agent, the replaced
      Issuing Bank and the successor Issuing Bank.  The Administrative Agent
      shall notify the Lenders of any such replacement of the Issuing
      Bank.  At the time any such replacement shall become effective, the
      Borrower shall pay all unpaid fees accrued for the account of the replaced
      Issuing Bank pursuant to Section 2.11(b).  From and after the
      effective date of any such replacement, (i) the successor Issuing Bank shall
      have all the rights and obligations of the Issuing Bank under this Agreement
      with respect to Letters of Credit to be issued thereafter and (ii) references
      herein to the term “Issuing Bank” shall be deemed to refer to such successor or
      to any previous Issuing Bank, or to such successor and all previous Issuing
      Banks, as the context shall require.  After the replacement of an
      Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto
      and shall continue to have all the rights and obligations of an Issuing Bank
      under this Agreement with respect to Letters of Credit issued by it prior to
      such replacement, but shall not be required to issue additional Letters of
      Credit.

     

    (j)           Cash
      Collateralization.  If any Event of Default shall occur and be
      continuing, on the Business Day that the Borrower receives notice from the
      Administrative Agent or the Required Lenders demanding the deposit of cash
      collateral pursuant to this paragraph, the Borrower shall deposit in an account
      with the Administrative Agent, in the name of the Administrative Agent and
      for
      the benefit of the Lenders, an amount in cash equal to the LC Exposure as of
      such date plus any accrued and unpaid interest thereon; provided that the
      obligation to deposit such cash collateral shall become effective immediately,
      and such deposit shall become immediately due and payable, without demand or
      other notice of any kind, upon the occurrence of any Event of Default with
      respect to the Borrower described in clauses (h) or (i) of
Article VII.  The Borrower also shall deposit cash collateral
      pursuant to this paragraph as and to the extent required by Section
      2.10(b).  Each such deposit shall be held by the Administrative
      Agent as collateral for the payment and performance of the obligations of the
      Borrower under this Agreement.  The Administrative Agent shall have
      exclusive dominion and control, including the exclusive right of withdrawal,
      over such account.  Other than any interest earned on the investment
      of such deposits, which investments shall be made at the option and sole
      discretion of the Administrative Agent and at the Borrower’s risk and expense,
      such deposits shall not bear interest.  Interest or profits, if any,
      on such investments shall accumulate in such account.  Moneys in such
      account shall be applied by the Administrative Agent to reimburse the Issuing
      Bank for LC Disbursements for which it has not been reimbursed and, to the
      extent not so applied, shall be held for the satisfaction of the reimbursement
      obligations of the Borrower for the LC Exposure at such time or, if the maturity
      of the Loans has been accelerated (but subject to the consent of the Required
      Lenders), be applied to satisfy other obligations of the Borrower under this
      Agreement.  If the Borrower is required to provide an amount of cash
      collateral hereunder as a result of the occurrence of an Event of Default,
      such
      amount (to the extent not applied as aforesaid) shall be returned to the
      Borrower within three Business Days after all Events of Default have been cured
      or waived.  If the Borrower is required to provide an amount of cash
      collateral hereunder pursuant to Section 2.10(b), such amount (to the
      extent not applied as aforesaid) shall be returned to the Borrower as and to
      the
      extent that, after giving effect to such return, the Borrower would remain
      in
      compliance with Section 2.10(b) and no Default shall have occurred and be
      continuing.

     

    
      
        
        

      

      
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    SECTION
      2.05.  Funding of Borrowings.

     

    (a)           Each
      Lender shall make each Loan to be made by it hereunder on the proposed date
      thereof by wire transfer of immediately available funds by 12:00 noon, Houston,
      Texas time, to the account of the Administrative Agent most recently designated
      by it for such purpose by notice to the Lenders; provided that Swingline Loans
      shall be made as provided in Section 2.19.  The Administrative
      Agent will make such Loans available to the Borrower by promptly crediting
      the
      amounts so received, in like funds, to an account of the Borrower maintained
      with the Administrative Agent in Houston, Texas and designated by the Borrower
      in the applicable Borrowing Request; provided that ABR Revolving Loans made
      to
      finance the reimbursement of an LC Disbursement as provided in Section
      2.04(e) shall be remitted by the Administrative Agent to the Issuing
      Bank.

     

    (b)           Unless
      the Administrative Agent shall have received notice from a Lender prior to
      the
      proposed date of any Borrowing that such Lender will not make available to
      the
      Administrative Agent such Lender’s share of such Borrowing, the Administrative
      Agent may assume that such Lender has made such share available on such date
      in
      accordance with paragraph (a) of this Section and may, in reliance upon such
      assumption, make available to the Borrower a corresponding amount.  If
      a Lender has not in fact made its share of the applicable Borrowing available
      to
      the Administrative Agent, then the applicable Lender and the Borrower severally
      agree to pay to the Administrative Agent forthwith on demand such corresponding
      amount with interest thereon, for each day from and including the date such
      amount is made available to the Borrower to but excluding the date of payment
      to
      the Administrative Agent, at (i) in the case of such Lender, the greater of
      the
      Federal Funds Effective Rate and a rate determined by the Administrative Agent
      in accordance with banking industry rules on interbank compensation or (ii)
      in
      the case of the Borrower, the interest rate applicable to ABR
      Loans.  If such Lender pays such amount to the Administrative Agent,
      then such amount shall constitute such Lender’s Loan included in such
      Borrowing.

     

    SECTION
      2.06.  Interest Elections.

     

    (a)           Each
      Revolving Borrowing initially shall be of the Type specified in the applicable
      Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an
      initial Interest Period as specified in such Borrowing
      Request.  Thereafter, the Borrower may elect to convert such Borrowing
      to a different Type or to continue such Borrowing and, in the case of a
      Eurodollar Borrowing, may elect Interest Periods therefor, all as provided
      in
      this Section.  The Borrower may elect different options with respect
      to different portions of the affected Borrowing, in which case each such portion
      shall be allocated ratably among the Lenders holding the Loans comprising such
      Borrowing, and the Loans comprising each such portion shall be considered a
      separate Borrowing.  This Section shall not apply to Swingline
      Borrowings, which may not be converted or continued.

     

    (b)           To
      make an election pursuant to this Section, the Borrower shall notify the
      Administrative Agent of such election by telephone by the time that a Borrowing
      Request would be required under Section 2.03 if the Borrower were
      requesting a Revolving Borrowing of the Type resulting from such election to
      be
      made on the effective date of such election.  Each such telephonic
      Interest Election Request shall be irrevocable and shall be confirmed promptly
      by

     

    
      
        
        

      

      
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    hand
      delivery or telecopy to the Administrative Agent of a written Interest Election
      Request in a form approved by the Administrative Agent and signed by the
      Borrower.

     

    (c)           Each
      telephonic and written Interest Election Request shall specify the following
      information:

     

    (i)           the
      Borrowing to which such Interest Election Request applies and, if different
      options are being elected with respect to different portions thereof, the
      portions thereof to be allocated to each resulting Borrowing (in which case
      the
      information to be specified pursuant to clauses (iii) and (iv)
      below shall be specified for each resulting Borrowing);

     

    (ii)           the
      effective date of the election made pursuant to such Interest Election Request,
      which shall be a Business Day;

     

    (iii)           whether
      the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;
      and

     

    (iv)           if
      the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
      applicable thereto after giving effect to such election, which shall be a period
      contemplated by the definition of the term “Interest Period”.

     

    If
      any
      such Interest Election Request requests a Eurodollar Borrowing but does not
      specify an Interest Period, then the Borrower shall be deemed to have selected
      an Interest Period of one month’s duration.

     

    (d)           Promptly
      following receipt of an Interest Election Request, the Administrative Agent
      shall advise each Lender of the details thereof and of such Lender’s portion of
      each resulting Borrowing.

     

    (e)           If
      the Borrower fails to deliver a timely Interest Election Request with respect
      to
      a Eurodollar Borrowing prior to the end of the Interest Period applicable
      thereto, then, unless such Borrowing is repaid as provided herein, at the end
      of
      such Interest Period such Borrowing shall be converted to an ABR
      Borrowing.  Notwithstanding any contrary provision hereof, if an Event
      of Default has occurred and is continuing and the Administrative Agent, at
      the
      request of the Required Lenders, so notifies the Borrower, then, so long as
      an
      Event of Default is continuing (i) no outstanding Borrowing may be converted
      to
      or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar
      Borrowing shall be converted to an ABR Borrowing at the end of the Interest
      Period applicable thereto.

     

    SECTION
      2.07.  Termination, Reduction and Increase of
      Commitments.

     

    (a)           Unless
      previously terminated, the Commitments shall terminate on the Maturity
      Date.

     

    (b)           The
      Borrower may at any time terminate, or from time to time reduce, the Commitments
      of any Class; provided that (i) each reduction of the Commitments of any Class
      shall be in an amount that is an integral multiple of $1,000,000 and (ii) the
      Borrower shall not terminate or reduce the Commitments if, after giving effect
      to any concurrent prepayment of the

     

    
      
        
        

      

      
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    Revolving
      Loans in accordance with Section 2.10, the sum of the Revolving Exposures
      would exceed the total Commitments.

     

    (c)           The
      Borrower shall notify the Administrative Agent of any election to terminate
      or
      reduce the Commitments under paragraph (b) of this Section, at least three
      Business Days prior to the effective date of such termination or reduction,
      specifying such election and the effective date thereof.  Promptly
      following receipt of any notice, the Administrative Agent shall advise the
      Lenders of the contents thereof.  Each notice delivered by the
      Borrower pursuant to this Section shall be irrevocable; provided that a notice
      of termination of the Commitments delivered by the Borrower may state that
      such
      notice is conditioned upon the effectiveness of other credit facilities, in
      which case such notice may be revoked by the Borrower (by notice to the
      Administrative Agent on or prior to the specified effective date) if such
      condition is not satisfied.  Any termination or reduction of the
      Commitments of any Class shall be permanent.  Each reduction of the
      Commitments of any Class shall be made ratably among the Lenders in accordance
      with their respective Commitments of such Class.

     

    (d)           At
      any time prior to the expiration of the Revolving Availability Period, and
      so
      long as no Event of Default shall have occurred which is continuing, the
      Borrower may elect to increase the aggregate of the Commitments to an amount
      not
      exceeding $160,000,000 minus any reductions in the Commitments pursuant to
      Section 2.07(b) hereof, provided that (i) no Lender shall be required to
      increase its Commitment unless it shall have expressly agreed to such increase
      in writing (but otherwise, no notice to or consent by any Lender shall be
      required, notwithstanding anything to the contrary set forth in Section
      9.02 hereof), (ii) the addition of new Lenders shall be subject to the terms
      and provisions of Section 9.04 hereof as if such new Lenders were
      acquiring an interest in the Loans by assignment from an existing Lenders (to
      the extent applicable, i.e. required approvals, minimum amounts and the like),
      (iii) the Borrower shall execute and deliver such additional or replacement
      Notes and such other documentation (including evidence of proper authorization)
      as may be reasonably requested by the Administrative Agent, any new Lender
      or
      any Lender which is increasing its Commitment, (iv) no Lender shall have any
      right to decrease its Commitment as a result of such increase of the aggregate
      amount of the Commitments, (v) the Administrative Agent shall have no obligation
      to arrange, find or locate any Lender or new bank or financial institution
      to
      participate in any unsubscribed portion of such increase in the aggregate
      committed amount of the Commitments, and (vi) such option to increase the
      Commitments may only be exercised once.  The Borrowers shall be
      required to pay (or to reimburse each applicable Lender for) any breakage costs
      incurred by any Lender in connection with the need to reallocate existing Loans
      among the Lenders following any increase in the Commitments pursuant to this
      provision.  Except as may otherwise be agreed by the Borrower and any
      applicable Lender, the Borrower shall not be required to pay any upfront or
      other fees or expenses to any existing Lenders, new Lenders or the
      Administrative Agent with respect to any such increase in
      Commitments.

     

    SECTION
      2.08.  Repayment of Loans; Evidence of Debt.

     

    (a)           The
      Borrower hereby unconditionally promises to pay (i) to the Administrative Agent
      for the account of each Lender the then unpaid principal amount of each
      Revolving Loan of such Lender on the Maturity Date and (ii) to the Swingline
      Lender the then unpaid principal amount of each Swingline Loan on the earlier
      of
      the Maturity Date and the first date after such Swingline Loan is made that
      is
      the 15th or last day of a calendar month and is at least two

     

    
      
        
        

      

      
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    Business
      Days after such Swingline Loan is made; provided that on each date that a
      Revolving Borrowing is made, the Borrower shall repay all Swingline Loans then
      outstanding.

     

    (b)           Each
      Lender shall maintain in accordance with its usual practice an account or
      accounts evidencing the indebtedness of the Borrower to such Lender resulting
      from each Loan made by such Lender, including the amounts of principal and
      interest payable and paid to such Lender from time to time
      hereunder.

     

    (c)           The
      Administrative Agent shall maintain accounts in which it shall record (i) the
      amount of each Loan made hereunder, the Class and Type thereof and the Interest
      Period applicable thereto, (ii) the amount of any principal or interest due
      and
      payable or to become due and payable from the Borrower to each Lender hereunder
      and (iii) the amount of any sum received by the Administrative Agent hereunder
      for the account of the Lenders and each Lender’s share thereof.

     

    (d)           The
      entries made in the accounts maintained pursuant to paragraphs (b) or (c) of
      this Section shall be prima facie evidence of the existence and amounts of
      the
      obligations recorded therein; provided that the failure of any Lender or the
      Administrative Agent to maintain such accounts or any error therein shall not
      in
      any manner affect the obligation of the Borrower to repay the Loans in
      accordance with the terms of this Agreement.

     

    SECTION
      2.09.  Intentionally Left Blank.

     

    SECTION
      2.10.  Prepayment of Loans.

     

    (a)           The
      Borrower shall have the right at any time and from time to time to prepay any
      Borrowing in whole or in part, subject to the requirements of this
      Section.  Each prepayment shall be in an amount equal to $500,000 or
      an amount that is an integral multiple of $100,000 in excess thereof, and
      accrued and unpaid interest as of the date of prepayment shall be paid
      concurrently with any such prepayment.

     

    (b)           In
      the event and on such occasion that the sum of the Revolving Exposures exceeds
      the total Commitments, the Borrower shall prepay Revolving Borrowings or
      Swingline Borrowings (or, if no such Borrowings are outstanding, deposit cash
      collateral in an account with the Administrative Agent pursuant to Section
      2.04(j)) in an aggregate amount equal to such excess.

     

    (c)           Prior
      to any optional or mandatory prepayment of Borrowings hereunder, the Borrower
      shall select the Borrowing or Borrowings to be prepaid and shall specify such
      selection in the notice of such prepayment pursuant to this
      Section.

     

    (d)           The
      Borrower shall notify the Administrative Agent (and, in the case of prepayment
      of a Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy)
      of any prepayment hereunder (i) in the case of prepayment of a Eurodollar
      Revolving Borrowing, not later than 11:00 a.m., Houston, Texas time, three
      Business Days before the date of prepayment or (ii) in the case of prepayment
      of
      an ABR Revolving Borrowing, not later than 11:00 a.m., Houston, Texas time,
      one
      Business Day before the date of prepayment or (iii) in the case of prepayment
      of
      a Swingline Loan, not later than 12:00 noon, Houston, Texas time, on the date
      of
      prepayment.  Each such notice shall be irrevocable and shall specify
      the prepayment date,

     

    
      
        
        

      

      
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    the
      principal amount of each Borrowing or portion thereof to be prepaid and, in
      the
      case of a mandatory prepayment, a reasonably detailed calculation of the amount
      of such prepayment; provided that, if a notice of optional prepayment is given
      in connection with a conditional notice of termination of the Commitments as
      contemplated by Section 2.07, then such notice of prepayment may be
      revoked if such notice of termination is revoked in accordance with Section
      2.07.  Promptly following receipt of any such notice (other than a
      notice relating solely to Swingline Loans), the Administrative Agent shall
      advise the Lenders of the contents thereof.

     

    SECTION
      2.11.  Fees.

     

    (a)           The
      Borrower agrees to pay to the Administrative Agent for the account of each
      Lender a commitment fee, which shall accrue at the Applicable Rate on the
      average daily unused amount of the Commitment of such Lender during the period
      from and including the date hereof to but excluding the date on which such
      Commitment terminates.  Accrued commitment fees shall be payable in
      arrears on the last day of March, June, September and December of each year
      and
      on the date on which the Commitments terminate, commencing on the first such
      date to occur after the date hereof.  All commitment fees shall be
      computed on the basis of a year of 360 days and shall be payable for the actual
      number of days elapsed (including the first day but excluding the last
      day).  For purposes of computing such commitment fees, a Commitment of
      a Lender shall be deemed to be used to the extent of the outstanding Revolving
      Loans and LC Exposure of such Lender (and the Swingline Exposure of such Lender
      shall be disregarded for such purpose).

     

    (b)           The
      Borrower agrees to pay (i) to the Administrative Agent for the account of each
      Revolving Lender a participation fee with respect to its participations in
      Letters of Credit, which shall accrue at the same Applicable Rate used to
      determine the interest rate applicable to Eurodollar Revolving Loans on the
      average daily amount of such Lender’s LC Exposure (excluding any portion thereof
      attributable to unreimbursed LC Disbursements) during the period from and
      including the Effective Date to but excluding the later of the date on which
      such Lender’s Commitment terminates and the date on which such Lender ceases to
      have any LC Exposure and (ii) to the Issuing Bank a fronting fee, which shall
      accrue at the rate of 0.125% per annum on the average daily amount of the LC
      Exposure (excluding any portion thereof attributable to unreimbursed LC
      Disbursements) during the period from and including the Effective Date to but
      excluding the later of the date of termination of the Commitments and the date
      on which there ceases to be any LC Exposure (provided, however, that in no
      event
      shall such fronting fee for any single Letter of Credit be less than $500),
      as
      well as the Issuing Bank’s standard fees with respect to the amendment, renewal
      or extension of any Letter of Credit or processing of drawings
      thereunder.  Participation fees accrued through and including the last
      day of March, June, September and December of each year shall be payable on
      the
      third Business Day following such last day, commencing on the first such date
      to
      occur after the Effective Date; provided that all such fees shall be payable
      on
      the date on which the Commitments terminate and any such fees accruing after
      the
      date on which the Commitments terminate shall be payable on
      demand.  Fronting fees with respect to any Letter of Credit shall be
      payable in advance upon issuance of such Letter of Credit.  Any other
      fees payable to the Issuing Bank pursuant to this paragraph shall be payable
      within 10 days after demand.  All participation fees and fronting fees
      shall be computed on the basis of a year of 360 days and shall be payable for
      the actual number of days elapsed (including the first day but excluding the
      last day).

     

    
      
        
        

      

      
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    (c)           The
      Borrower agrees to pay to the Administrative Agent, for its own account, fees
      payable in the amounts and at the times separately agreed upon between the
      Borrower and the Administrative Agent.

     

    (d)           All
      fees payable hereunder shall be paid on the dates due, in immediately available
      funds, to the Administrative Agent (or to the Issuing Bank, in the case of
      fees
      payable to it) for distribution, in the case of commitment fees and
      participation fees, to the Lenders entitled thereto.  Fees paid shall
      not be refundable under any circumstances.

     

    SECTION
      2.12.  Interest.

     

    (a)           The
      Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear
      interest at the lesser of (i) the Alternate Base Rate plus the Applicable
      Rate or (ii) the Ceiling Rate.

     

    (b)           The
      Loans comprising each Eurodollar Borrowing shall bear interest at the lesser
      of
      (i) the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing
      plus the Applicable Rate or (ii) the Ceiling Rate.

     

    (c)           Notwithstanding
      the foregoing, if any principal of or interest on any Loan or any fee or other
      amount payable by the Borrower hereunder is not paid when due, whether at stated
      maturity, upon acceleration or otherwise, such overdue amount shall bear
      interest, after as well as before judgment, at a rate per annum equal to the
      lesser of (i) the Ceiling Rate or (ii) in the case of overdue principal of
      any
      Loan, 2% plus the rate otherwise applicable to such Loan as provided in
      the preceding paragraphs of this Section or in the case of any other amount,
      2%
plus the rate applicable to ABR Revolving Loans as provided in paragraph
      (a) of this Section.

     

    (d)           Accrued
      interest on each Loan shall be payable in arrears on each Interest Payment
      Date
      for such Loan and, in the case of Revolving Loans, upon termination of the
      Commitments; provided that (i) interest accrued pursuant to paragraph (c) of
      this Section shall be payable on demand, (ii) in the event of any repayment
      or
      prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior
      to the end of the Revolving Availability Period), accrued interest on the
      principal amount repaid or prepaid shall be payable on the date of such
      repayment or prepayment and (iii) in the event of any conversion of any
      Eurodollar Loan prior to the end of the current Interest Period therefor,
      accrued interest on such Loan shall be payable on the effective date of such
      conversion.

     

    (e)           All
      interest hereunder shall be computed on the basis of a year of 360 days, except
      that interest computed by reference to the Alternate Base Rate at times when
      the
      Alternate Base Rate is based on the Prime Rate shall be computed on the basis
      of
      a year of 365 days (or 366 days in a leap year), and in each case shall be
      payable for the actual number of days elapsed (including the first day but
      excluding the last day).  The applicable Alternate Base Rate or
      Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
      determination shall be conclusive absent manifest error.

     

    SECTION
      2.13.  Alternate Rate of Interest.  If prior to the
      commencement of any Interest Period for a Eurodollar Borrowing:

     

    
      
        
        

      

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

     

    (b)           the
      Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
      Rate for such Interest Period will not adequately and fairly reflect the cost
      to
      such Lenders (or Lender) of making or maintaining their Loans (or its Loan)
      included in such Borrowing for such Interest Period;

     

    then
      the
      Administrative Agent shall give notice thereof to the Borrower and the Lenders
      by telephone or telecopy as promptly as practicable thereafter and, until the
      Administrative Agent notifies the Borrower and the Lenders that the
      circumstances giving rise to such notice no longer exist, (i) any Interest
      Election Request that requests the conversion of any Borrowing to, or
      continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
      and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
      Borrowing shall be made as an ABR Borrowing; provided that if the circumstances
      giving rise to such notice affect only one Type of Borrowings, then the other
      Type of Borrowings shall be permitted.

     

    SECTION
      2.14.  Increased Costs.

     

    (a)           If
      any Change in Law shall:

     

    (i)           impose,
      modify or deem applicable any reserve, special deposit or similar requirement
      against assets of, deposits with or for the account of, or credit extended
      by,
      any Lender (except any such reserve requirement reflected in the Adjusted LIBO
      Rate) or the Issuing Bank; or

     

    (ii)           impose
      on any Lender or the Issuing Bank or the London interbank market any other
      condition affecting this Agreement or Eurodollar Loans made by such Lender
      or
      any Letter of Credit or participation therein;

     

    and
      the
      result of any of the foregoing shall be to increase the cost to such Lender
      of
      making or maintaining any Eurodollar Loan (or of maintaining its obligation
      to
      make any such Loan) or to increase the cost to such Lender or the Issuing Bank
      of participating in, issuing or maintaining any Letter of Credit or to reduce
      the amount of any sum received or receivable by such Lender or the Issuing
      Bank
      hereunder (whether of principal, interest or otherwise), then the Borrower
      will
      pay to such Lender or the Issuing Bank, as the case may be, such additional
      amount or amounts as will compensate such Lender or the Issuing Bank, as the
      case may be, for such additional costs incurred or reduction
      suffered.

     

    (b)           If
      any Lender or the Issuing Bank determines that any Change in Law regarding
      capital requirements has or would have the effect of reducing the rate of return
      on such Lender’s or the Issuing Bank’s capital or on the capital of such
      Lender’s or the Issuing Bank’s holding company, if any, as a consequence of this
      Agreement or the Loans made by, or participations in Letters of Credit held
      by,
      such Lender, or the Letters of Credit issued by the Issuing Bank, to a level
      below that which such Lender or the Issuing Bank or such Lender’s or the Issuing
      Bank’s holding company could have achieved but for such Change in Law (taking
      into consideration such Lender’s or the Issuing Bank’s policies and the policies
      of such Lender’s or the Issuing

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    Bank’s
      holding company with respect to capital adequacy), then from time to time the
      Borrower will pay to such Lender or the Issuing Bank, as the case may be, such
      additional amount or amounts as will compensate such Lender or the Issuing
      Bank
      or such Lender’s or the Issuing Bank’s holding company for any such reduction
      suffered.

     

    (c)           A
      certificate of a Lender or the Issuing Bank setting forth the amount or amounts
      necessary to compensate such Lender or the Issuing Bank or its holding company,
      as the case may be, as specified in paragraphs (a) or (b) of this Section shall
      be delivered to the Borrower, demonstrating in reasonable detail the calculation
      of the amounts, and shall be conclusive absent manifest error.  The
      Borrower shall pay such Lender or the Issuing Bank, as the case may be, the
      amount shown as due on any such certificate within 10 days after receipt
      thereof.

     

    (d)           Failure
      or delay on the part of any Lender or the Issuing Bank to demand compensation
      pursuant to this Section shall not constitute a waiver of such Lender’s or the
      Issuing Bank’s right to demand such compensation; provided that the Borrower
      shall not be required to compensate a Lender or the Issuing Bank pursuant to
      this Section for any increased costs or reductions incurred more than 180 days
      prior to the date that such Lender or the Issuing Bank, as the case may be,
      notifies the Borrower of the Change in Law giving rise to such increased costs
      or reductions and of such Lender’s or the Issuing Bank’s intention to claim
      compensation therefor; provided further that, if the Change in Law giving rise
      to such increased costs or reductions is retroactive and if such Lender or
      the
      Issuing Bank, as the case may be, notifies the Borrower of such Change of Law
      within 180 days after the adoption, enactment or similar act with respect to
      such Change of Law, then the 180-day period referred to above shall be extended
      to include the period from the effective date of such Change of Law to the
      date
      of such notice.

     

    SECTION
      2.15.  Break Funding Payments.  In the event of (a)
      the payment of any principal of any Eurodollar Loan other than on the last
      day
      of an Interest Period applicable thereto (including as a result of an Event
      of
      Default), (b) the conversion of any Eurodollar Loan other than on the last
      day
      of the Interest Period applicable thereto, (c) the failure to borrow, convert,
      continue or prepay any Revolving Loan on the date specified in any notice
      delivered pursuant hereto, or (d) the assignment of any Eurodollar Loan other
      than on the last day of the Interest Period applicable thereto as a result
      of a
      request by the Borrower pursuant to Section 2.18, then, in any such
      event, the Borrower shall compensate each Lender for the loss, cost and expense
      attributable to such event.  Such loss, cost or expense to any Lender
      shall be deemed to include an amount determined by such Lender to be the excess,
      if any, of (i) the amount of interest which would have accrued on the principal
      amount of such Loan had such event not occurred, at the Adjusted LIBO Rate
      that
      would have been applicable to such Loan, for the period from the date of such
      event to the last day of the then current Interest Period therefor (or, in
      the
      case of a failure to borrow, convert or continue, for the period that would
      have
      been the Interest Period for such Loan), over (ii) the amount of interest which
      would accrue on such principal amount for such period at the interest rate
      which
      such Lender would bid were it to bid, at the commencement of such period, for
      dollar deposits of a comparable amount and period from other banks in the
      Eurodollar market.  A certificate of any Lender setting forth any
      amount or amounts that such Lender is entitled to receive pursuant to this
      Section, demonstrating in reasonable detail the calculation of the amounts,
      shall be delivered to the Borrower and shall be conclusive absent manifest
      error.  The Borrower shall pay such Lender the amount shown as due on
      any such certificate within 10 days after receipt thereof.

     

    
      
        
        

      

      
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    SECTION
      2.16.  Taxes.

     

    (a)           Any
      and all payments by or on account of any obligation of the Borrower hereunder
      or
      under any other Loan Document shall be made free and clear of and without
      deduction for any Indemnified Taxes or Other Taxes; provided that if the
      Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
      such payments, then (i) the sum payable shall be increased as necessary so
      that
      after making all required deductions or withholdings (including deductions
      applicable to additional sums payable under this Section) the Administrative
      Agent, Lender or Issuing Bank (as the case may be) receives an amount equal
      to
      the sum it would have received had no such deductions been made, (ii) the
      Borrower shall make such deductions or withholdings and (iii) the Borrower
      shall
      pay the full amount deducted or withheld to the relevant Governmental Authority
      in accordance with applicable law.

     

    (b)           In
      addition, the Borrower shall pay any Other Taxes to the relevant Governmental
      Authority in accordance with applicable law.

     

    (c)           The
      Borrower shall indemnify the Administrative Agent, each Lender and the Issuing
      Bank, within 30 days after written demand therefor, for the full amount of
      any
      Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender
      or the Issuing Bank, as the case may be, on or with respect to any payment
      by or
      on account of any obligation of the Borrower hereunder or under any other Loan
      Document (including Indemnified Taxes or Other Taxes imposed or asserted on
      or
      attributable to amounts payable under this Section) and any penalties, interest
      and reasonable expenses arising therefrom or with respect thereto, whether
      or
      not such Indemnified Taxes or Other Taxes were correctly or legally imposed
      or
      asserted by the relevant Governmental Authority.  A certificate as to
      the amount of such payment or liability delivered to the Borrower by a Lender
      or
      the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf
      of a Lender or the Issuing Bank, demonstrating in reasonable detail the
      calculation of the amounts, shall be conclusive absent manifest
      error.  However, neither the Administrative Agent, any Lender or the
      Issuing Bank shall be entitled to receive any payment with respect to
      Indemnified Taxes or Other Taxes that are incurred or accrued more than 180
      days
      prior to the date the Administrative Agent, such Lender or the Issuing Bank
      gives notice and demand thereof to the Borrower.

     

    (d)           As
      soon as reasonably practicable after any payment of Indemnified Taxes or Other
      Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver
      to
      the Administrative Agent the original or a certified copy of a receipt issued
      by
      such Governmental Authority evidencing such payment, a copy of the return
      reporting such payment or other evidence of such payment reasonably satisfactory
      to the Administrative Agent.

     

    (e)           Any
      Foreign Lender that is entitled to an exemption from or reduction of withholding
      tax under the law of the jurisdiction in which the Borrower is located, or
      any
      treaty to which such jurisdiction is a party, with respect to payments under
      this Agreement or any other Loan Document shall deliver to the Borrower (with
      a
      copy to the Administrative Agent), at the time or times prescribed by applicable
      law, such properly completed and executed documentation prescribed by applicable
      law or reasonably requested by the Borrower as will permit such payments to
      be
      made without withholding or at a reduced rate.  In addition, any
      Lender, if requested by the Borrower or the Administrative Agent, shall deliver
      such properly completed and executed documentation prescribed by applicable
      law
      or reasonably requested by

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    the
      Borrower or the Administrative Agent as will enable the Borrower or the
      Administrative Agent to determine whether or not such Lender is subject to
      backup withholding or information reporting requirements.  Each Lender
      shall promptly (i) notify the Borrower and the Administrative Agent of any
      change in circumstances which would modify or render invalid any such claimed
      exemption or reduction, and (ii) take such steps as may be reasonably necessary
      (including the designation of a new lending office to the extent such
      designation is consistent with such Lender’s internal policies and legal and
      regulatory restrictions and so long as such action would not be disadvantageous
      to such Lender) to avoid any requirement of the applicable laws of any such
      jurisdiction that Borrower make any deduction or withholding for taxes from
      amounts payable to such Lender.  Without limiting the generality of
      the foregoing, any Foreign Lender shall deliver to the Borrower and the
      Administrative Agent (in such number of copies as shall be requested by the
      recipient) on or prior to the date on which such Foreign Lender becomes a Lender
      under this Agreement (and from time to time thereafter upon the request of
      the
      Borrower or the Administrative Agent, but only if such Foreign Lender is legally
      entitled to do so), whichever of the following is applicable:

     

    (i)           duly
      completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
      for benefits of an income tax treaty to which the United States is a
      party,

     

    (ii)           duly
      completed copies of Internal Revenue Service Form W-8ECI;

     

    (iii)           in
      the case of a Foreign Lender claiming the benefits of the exemption for
      portfolio interest under Section 881(c) of the Code, (x) a certificate to the
      effect that such Foreign Lender is not (A) a “bank” within the meaning of
      Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower
      within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled
      foreign corporation” described in Section 881(c)(3)(C) of the Code and (y) duly
      completed copies of  Internal Revenue Service Form W-8BEN,
      or

     

    (iv)           any
      other form prescribed by applicable law as a basis for claiming exemption from
      or a reduction in United States Federal withholding tax duly completed together
      with such supplementary documentation as may be prescribed by applicable law
      to
      permit the Borrower to determine the withholding or deduction required to be
      made.

     

    (f)           If
      the Administrative Agent or a Lender determines, in its reasonable discretion,
      that it has received a refund of any Taxes or Other Taxes as to which it has
      been indemnified by the Borrower or with respect to which the Borrower has
      paid
      additional amounts pursuant to this Section, it shall pay over such refund
      to
      the Borrower (but only to the extent of indemnity payments made, or additional
      amounts paid, by the Borrower under this Section with respect to the Taxes
      or
      Other Taxes giving rise to such refund), net of all out-of-pocket expenses
      of
      the Administrative Agent or such Lender and without interest (other than any
      interest paid by the relevant Governmental Authority with respect to such
      refund); provided, that the Borrower, upon the request of the Administrative
      Agent or such Lender, agrees to repay the amount paid over to the Borrower
      (plus
      any penalties, interest or other charges imposed by the relevant Governmental
      Authority) to the Administrative Agent or such Lender in the event the
      Administrative Agent or such Lender is required to repay such refund to such
      Governmental Authority.  This Section shall not be construed to
      require the Administrative Agent or any Lender to make available its tax returns
      (or any other information relating to its taxes which it deems confidential)
      to
      the Borrower or any other Person.

     

    
      
        
        

      

      
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    (g)           Each
      Lender shall use its best efforts (consistent with its internal policies and
      legal and regulatory restrictions) to select a jurisdiction for its lending
      office or change the jurisdiction of its lending office, as the case may be,
      so
      as to avoid the imposition of any Indemnified Taxes or Other Taxes or to
      eliminate or reduce the payment of any additional sums under this Section,
      so
      long as such action would not be disadvantageous to such Lender.

     

    SECTION
      2.17.  Payments Generally; Pro Rata Treatment; Sharing of
      Set-offs.

     

    (a)           The
      Borrower shall make each payment required to be made by it hereunder or under
      any other Loan Document (whether of principal, interest, fees or reimbursement
      of LC Disbursements, or of amounts payable under Sections 2.14,
2.15 or 2.16, or otherwise) at or prior to the time expressly
      required hereunder or under such other Loan Document for such payment (or,
      if no
      such time is expressly required, prior to 2:00 p.m., Houston, Texas time),
      on
      the date when due, in immediately available funds, without set off, deduction
      or
      counterclaim.  Any amounts received after such time on any date may,
      in the discretion of the Administrative Agent, be deemed to have been received
      on the next succeeding Business Day for purposes of calculating interest
      thereon.  All such payments shall be made to the Administrative Agent
      at its offices at 1700 Lincoln Ave.,  MAC C7300-034, Denver, Colorado
      80203, except payments to be made directly to the Issuing Bank or Swingline
      Lender as expressly provided herein and except that payments pursuant to
Sections 2.14, 2.15, 2.16 and 9.03 shall be made
      directly to the Persons entitled thereto and payments pursuant to other Loan
      Documents shall be made to the Persons specified therein.  The
      Administrative Agent shall distribute any such payments received by it for
      the
      account of any other Person to the appropriate recipient promptly following
      receipt thereof.  If any payment under any Loan Document shall be due
      on a day that is not a Business Day, the date for payment shall be extended
      to
      the next succeeding Business Day, and, in the case of any payment accruing
      interest, interest thereon shall be payable for the period of such
      extension.  All payments under each Loan Document shall be made in
      dollars.

     

    (b)           If
      at any time insufficient funds are received by and available to the
      Administrative Agent to pay fully all amounts of principal, unreimbursed LC
      Disbursements, interest and fees then due hereunder, such funds shall be applied
      (i) first, towards payment of interest and fees then due hereunder, ratably
      among the parties entitled thereto in accordance with the amounts of interest
      and fees then due to such parties, and (ii) second, towards payment of principal
      and unreimbursed LC Disbursements then due hereunder, ratably among the parties
      entitled thereto in accordance with the amounts of principal and unreimbursed
      LC
      Disbursements then due to such parties.

     

    (c)           If
      any Lender shall, by exercising any right of set off or counterclaim or
      otherwise, obtain payment in respect of any principal of or interest on any
      of
      its Revolving Loans or participations in LC Disbursements or Swingline Loans,
      resulting in such Lender receiving payment of a greater proportion of the
      aggregate amount of its Revolving Loans and participations in LC Disbursements
      and Swingline Loans and accrued interest thereon than the proportion received
      by
      any other Lender, then the Lender receiving such greater proportion shall
      purchase (for cash at face value) participations in the Revolving Loans and
      participations in LC Disbursements and Swingline Loans of other Lenders to
      the
      extent necessary so that the benefit of all such payments shall be shared by
      the
      Lenders ratably in accordance with the aggregate amount of principal of and
      accrued interest on their respective Revolving Loans and participations in
      LC
      Disbursements and Swingline Loans; provided that (i) if any such

     

    
      
        
        

      

      
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    participations
      are purchased and all or any portion of the payment giving rise thereto is
      recovered,  such participations shall be rescinded and the purchase
      price restored to the extent of such recovery, without interest, and (ii) the
      provisions of this paragraph shall not be construed to apply to any payment
      made
      by the Borrower pursuant to and in accordance with the express terms of this
      Agreement or any payment obtained by a Lender as consideration for the
      assignment of or sale of a participation in any of its Loans or participations
      in LC Disbursements to any assignee or participant, other than to the Borrower
      or any other Loan Party or Affiliate thereof (as to which the provisions of
      this
      paragraph shall apply).  Each Lender agrees that it will not exercise
      any right of set-off or counterclaim or otherwise obtain payment in respect
      of
      any Obligation owed to it other than principal of and interest accruing on
      the
      Loans and participations in the LC Disbursements and Swingline Loans, unless
      all
      of the outstanding principal of and accrued interest on the Loans and LC
      Disbursements have been paid in full. The Borrower consents to the foregoing
      and
      agrees, to the extent it may effectively do so under applicable law, that any
      Lender acquiring a participation pursuant to the foregoing arrangements may
      exercise against the Borrower rights of set-off and counterclaim with respect
      to
      such participation as fully as if such Lender were a direct creditor of the
      Borrower in the amount of such participation.

     

    (d)           Unless
      the Administrative Agent shall have received notice from the Borrower prior
      to
      the date on which any payment is due to the Administrative Agent for the account
      of the Lenders or the Issuing Bank hereunder that the Borrower will not make
      such payment, the Administrative Agent may assume that the Borrower has made
      such payment on such date in accordance herewith and may, in reliance upon
      such
      assumption, distribute to the Lenders or the Issuing Bank, as the case may
      be,
      the amount due.  If the Borrower has not in fact made such payment
      when due, then each of the Lenders or the Issuing Bank, as the case may be,
      severally agrees to repay to the Administrative Agent forthwith on demand the
      amount so distributed to such Lender or Issuing Bank with interest thereon,
      for
      each day from and including the date such amount is distributed to it to but
      excluding the date of payment to the Administrative Agent, at the greater of
      the
      Federal Funds Effective Rate and a rate determined by the Administrative Agent
      in accordance with banking industry rules on interbank
      compensation.

     

    (e)           If
      any Lender shall fail to make any payment required to be made by it pursuant
      to
      this Agreement, then the Administrative Agent may, in its discretion
      (notwithstanding any contrary provision hereof), apply any amounts thereafter
      received by the Administrative Agent for the account of such Lender to satisfy
      such Lender’s obligations hereunder until all such unsatisfied obligations are
      fully paid.

     

    SECTION
      2.18.  Mitigation Obligations; Replacement of
      Lenders.

     

    (a)           If
      any Lender requests compensation under Section 2.14, if the
      Administrative Agent delivers a notice contemplated by Section 2.13
      (other than such a notice applicable to all Lenders), or if the Borrower is
      required to pay any additional amount to any Lender or any Governmental
      Authority for the account of any Lender pursuant to Section 2.16, then
      such Lender shall use reasonable efforts to designate a different lending office
      for funding or booking its Loans hereunder or to assign its rights and
      obligations hereunder to another of its offices, branches or Affiliates, if,
      in
      the judgment of such Lender, such designation or assignment (i) would eliminate
      or reduce amounts payable pursuant to Sections 2.14 or 2.16 or
      would cause Eurodollar Borrowings to be available, as the case may be, in the
      future and (ii) would not

     

    
      
        
        

      

      
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    subject
      such Lender to any unreimbursed cost or expense and would not otherwise be
      disadvantageous to such Lender.  The Borrower hereby agrees to pay all
      reasonable costs and expenses incurred by any Lender in connection with any
      such
      designation or assignment.

     

    (b)           If
      any Lender requests compensation under Section 2.14, if Eurodollar
      Borrowings become unavailable from less than all of the Lenders under Section
      2.13 or if the Borrower is required to pay any additional amount to any
      Lender or any Governmental Authority for the account of any Lender pursuant
      to
Section 2.16, or if any Lender defaults in its obligation to fund Loans
      hereunder, then the Borrower may, at its sole expense and effort, upon notice
      to
      such Lender and the Administrative Agent, require such Lender to assign and
      delegate, without recourse (in accordance with and subject to the restrictions
      contained in Section 9.04), all its interests, rights and obligations
      under this Agreement to an assignee that shall assume such obligations (which
      assignee may be another Lender, if a Lender accepts such assignment); provided
      that (i) the Borrower shall have received the prior written consent of the
      Administrative Agent (and, if a Commitment is being assigned, the Issuing Bank
      and Swingline Lender), which consent shall not unreasonably be withheld, (ii)
      such assignor Lender shall have received payment of an amount equal to the
      outstanding principal of its Loans and participations in LC Disbursements and
      Swingline Loans, accrued interest thereon, accrued fees and all other amounts
      payable to it hereunder and (iii) in the case of any such assignment resulting
      from a claim for compensation under Section 2.14, the unavailability of
      Eurodoillar Borrowings under Section 2.13 or payments required to be made
      pursuant to Section 2.16, such assignment will result in a reduction in
      such compensation or payments of the availability of Eurodollar Borrowings
      from
      the applicable assignee.  A Lender shall not be required to make any
      such assignment and delegation if, prior thereto, as a result of a waiver by
      such Lender or otherwise, the circumstances entitling the Borrower to require
      such  assignment and delegation cease to apply.

     

    (c)           If
      any Lender (a “Non-Consenting Lender”) refuses to consent to an amendment
      to or waiver of any Credit Document or provision thereof, which amendment or
      waiver requires unanimous consent of all the Lenders, or all the Lenders making
      Loans of a particular Class or Type, in order to be effective, then the
      Administrative Agent may or the Borrower may (but neither shall be obligated
      to), upon notice to the Non-Consenting Lender (and the Administrative Agent,
      if
      applicable), require the Non-Consenting Lender to assign and delegate, without
      recourse (in accordance with and subject to the restrictions contained in
Section 9.04) all of its interests, rights, duties and obligations under
      this Agreement and the Credit Documents to an assignee that shall assume such
      obligations (which assignee may be a Lender, if a Lender accepts such
      assignment); provided that:

     

    (i)           if
      it is an assignment at the request of the Borrower, the Borrower shall have
      received the prior written consent of the Administrative Agent (and if a
      Revolving Commitment is being assigned, the Issuing Lender and the Swingline
      Lender), which consents shall not unreasonably be withheld,

     

    (ii)           if
      it is an assignment at the request of the Administrative Agent and there is
      no
      Event of Default, the Borrower shall have consented to such assignment (and
      if a
      Revolving Commitment is being assigned, the Issuing Lender and the Swingline
      Lender) which consents shall not be unreasonably withheld,

     

    
      
        
        

      

      
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    (iii)           the
      interests, rights, duties and obligations of all Non-Consenting Lenders are
      similarly assigned, and

     

    (iv)           the
      Non-Consenting Lender shall have received payment of an amount equal to the
      outstanding principal of (and participation interests in) its Obligations,
      accrued interest thereon, accrued fees and all other amounts payable to it
      hereunder and under the other Credit Documents.

     

    SECTION
      2.19.  Swingline Loans.

     

    (a)           Subject
      to the terms and conditions set forth herein, the Swingline Lender agrees to
      make Swingline  Loans to the Borrower from time to time during the
      Revolving Availability Period, in an aggregate principal amount at any time
      outstanding that will not result in (i) the aggregate principal amount of
      outstanding Swingline Loans exceeding $10,000,000 or (ii) the sum of the total
      Revolving Exposures exceeding the total Commitments; provided that the Swingline
      Lender shall not be required to make a Swingline Loan to refinance an
      outstanding Swingline Loan and provided further that the Swingline Lender shall
      not, without the consent of the Required Lenders, make any Swingline Loan if
      any
      Event of Default exists of which the Swingline Lender has actual
      knowledge.  Within the foregoing limits and subject to the terms and
      conditions set forth herein, the Borrower may borrow, prepay and reborrow
      Swingline Loans.

     

    (b)           To
      request a Swingline Loan, the Borrower shall notify the Administrative Agent
      of
      such request by telephone (confirmed by telecopy), not later than 12:00 noon,
      Houston, Texas time, on the day of a proposed Swingline Loan.  Each
      such notice shall be irrevocable and shall specify the requested date (which
      shall be a Business Day) and amount of the requested Swingline
      Loan.  The Administrative Agent will promptly advise the Swingline
      Lender of any such notice received from the Borrower.  The Swingline
      Lender shall make each Swingline Loan available to the Borrower by means of
      a
      credit to the general deposit account of the Borrower with the Swingline Lender
      (or, in the case of a Swingline Loan made to finance the reimbursement of an
      LC
      Disbursement as provided in Section 2.04(e), by remittance to the Issuing
      Bank) by 3:00 p.m., Houston, Texas time, on the requested date of such Swingline
      Loan.

     

    (c)           The
      Swingline Lender may by written notice given to the Administrative Agent not
      later than 12:00 noon, Houston, Texas time, on any Business Day require the
      Revolving Lenders to acquire participations on such Business Day in all or
      a
      portion of the Swingline Loans outstanding.  Such notice shall specify
      the aggregate amount of Swingline Loans in which Revolving Lenders will
      participate.  The Administrative Agent will give notice thereof to
      each Revolving Lender by 1:00 p.m., Houston, Texas time on such Business Day,
      specifying in such notice such Lender’s Applicable Percentage of such Swingline
      Loan or Loans.  Each Revolving Lender hereby absolutely and
      unconditionally agrees, upon receipt of notice as provided above, to pay to
      the
      Administrative Agent, for the account of the Swingline Lender, such Lender’s
      Applicable Percentage of such Swingline Loan or Loans.  Each Revolving
      Lender acknowledges and agrees that its obligation to acquire participations
      in
      Swingline Loans pursuant to this paragraph is absolute and unconditional,
      subject to Swingline Lender’s compliance with the provisions of Section
      2.19(a) hereof, and shall not be affected by any circumstance whatsoever,
      including the occurrence and continuance of a Default or reduction or
      termination of the Commitments, and that each such payment shall be made without
      any offset, abatement,

     

    
      
        
        

      

      
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    withholding
      or reduction whatsoever.  Each Revolving Lender shall comply with its
      obligation under this paragraph by wire transfer of immediately available funds,
      in the same manner as provided in Section 2.05 with respect to Loans made
      by such Lender (and Section 2.05 shall apply, mutatis mutandis, to the
      payment obligations of the Revolving Lenders), and the Administrative Agent
      shall promptly pay to the Swingline Lender the amounts so received by it from
      the Revolving Lenders.  The Administrative Agent shall notify the
      Borrower in writing of any participations in any Swingline Loan acquired
      pursuant to this paragraph, and thereafter payments in respect of such Swingline
      Loan shall be made to the Administrative Agent and not to the Swingline
      Lender.  Any amounts received by the Swingline Lender from the
      Borrower (or other party on behalf of the Borrower) in respect of a Swingline
      Loan after receipt by the Swingline Lender of the proceeds of a sale of
      participations therein shall be promptly remitted to the Administrative Agent;
      any such amounts received by the Administrative Agent shall be remitted by
      the
      Administrative Agent to the Swingline Lender  and to the Revolving
      Lenders that shall have made their payments pursuant to this paragraph, as
      their
      interests may appear, such remittance to be made on the day of receipt if such
      payment is received by 2:00 p.m., Houston, Texas time and prior to 10:00 a.m.
      of
      the following Business Day if such payment is received after 2:00 p.m., Houston,
      Texas time.  The purchase of participations in a Swingline Loan
      pursuant to this paragraph shall not relieve the Borrower of any default in
      the
      payment thereof.

     

    (d)           Notwithstanding
      the foregoing procedures for requesting a Swingline Loan, the Borrower and
      the
      Swingline Lender may agree to implement an alternate arrangement with respect
      to
      Swingline Loans pursuant to a direct borrowing agreement between the Borrower
      and the Swingline Lender.  The Swingline Lender will give notice to
      the Administrative Agent of each Swingline Loan made by the Borrower within
      one
      (1) Business Day after making such Swingline Loan.

     

    SECTION
      2.20.  Defaulting Lender.

     

    (a)           Notwithstanding
      anything to the contrary contained herein, in the event any Lender (x) has
      refused (which refusal constitutes a breach by such Lender of its obligations
      under this Agreement) to make available its portion of any Loan or (y) notifies
      either the Administrative Agent or the Borrower that such Lender does not intend
      to make available its portion of any Loan (if the actual refusal would
      constitute a breach by such Lender of its obligations under this Agreement)
      (each, a “Lender Default”), all rights and obligations hereunder of such
      Lender (a “Defaulting Lender”) as to which a Lender Default is in effect
      and of the other parties hereto shall be modified to the extent of the express
      provisions of this Section while such Lender Default remains in
      effect.

     

    (b)           Advances
      shall be incurred pro rata from Lenders which are not Defaulting Lenders (the
      “Non-Defaulting Lenders”) based on their respective Commitments and no
      Commitment of any Lender or any pro rata share of any Loans required to be
      advanced by any Lender shall be increased as a result of such Lender
      Default.  Amounts received in respect of principal of any type of
      Loans shall be applied to reduce the applicable Loans of each Lender pro rata
      based on the aggregate of the outstanding Loans of that type of all Lenders
      at
      the time of such application; provided, that, such amount shall not be applied
      to any Loans of a Defaulting Lender at any time when, and to the extent that,
      the aggregate amount of Loans of any Non-Defaulting Lender exceeds such
      Non-Defaulting Lender’s Commitment of all Loans then outstanding.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    (c)           A
      Defaulting Lender shall not be entitled to give instructions to the
      Administrative Agent or to approve, disapprove, consent to or vote on any
      matters relating to this Agreement and the other Loan Documents.  All
      amendments, waivers and other modifications of this Agreement and the other
      Loan
      Documents may be made without regard to a Defaulting Lender and, for purposes
      of
      the definition of “Required Lenders,” a Defaulting Lender shall be deemed not to
      be a Lender and not to have Loans outstanding.

     

    (d)           Other
      than as expressly set forth in this Section, the rights and obligations of
      a
      Defaulting Lender (including the obligation to indemnify the Administrative
      Agent) and the other parties hereto shall remain unchanged.  Nothing
      in this Section shall be deemed to release any Defaulting Lender from its
      obligations under this Agreement and the other Loan Documents, shall alter
      such
      obligations, shall operate as a waiver of any default by such Defaulting Lender
      hereunder, or shall prejudice any rights which the Borrower, the Administrative
      Agent or any Lender may have against any Defaulting Lender as a result of any
      default by such Defaulting Lender hereunder.

     

    (e)           In
      the event a Defaulting Lender retroactively cures to the satisfaction of the
      Administrative Agent the breach which caused a Lender to become a Defaulting
      Lender, such Defaulting Lender shall no longer be a Defaulting Lender and shall
      be treated as a Lender under this Agreement and the other Loan
      Documents.

     

    ARTICLE
      III

     

    Representations
      and Warranties

     

    The
      Borrower represents and warrants to the Lenders that:

     

    SECTION
      3.01.  Organization; Powers.  Each of the Borrower
      and the other applicable Loan Parties is (a) organized, validly existing and
      in
      good standing under the laws of the jurisdiction of its organization, (b) has
      all requisite power and authority to carry on its business as now conducted
      and
      is (c) qualified to do business in, and is in good standing in, every
      jurisdiction where such qualification is required by applicable law, except
      in
      the case of clause (a) (other than with respect to the Borrower) and
clause (c), where the failure to do so would not reasonably be expected
      to result in a Material Adverse Effect,.

     

    SECTION
      3.02.  Authorization; Enforceability.  The
      Transactions to be entered into by each Loan Party are within such Loan Party’s
      powers and have been duly authorized by all necessary action.  This
      Agreement has been duly executed and delivered by the Borrower and constitutes,
      and each other Loan Document to which any Loan Party is to be a party, when
      executed and delivered by such Loan Party, will constitute, a legal, valid
      and
      binding obligation of the Borrower or such Loan Party (as the case may be),
      enforceable in accordance with its terms, subject to applicable bankruptcy,
      insolvency, reorganization, moratorium or other laws affecting creditors’ rights
      generally and subject to general principles of equity, regardless of whether
      considered in a proceeding in equity or at law.

     

    SECTION
      3.03.  Governmental Approvals; No Conflicts.  The
      Transactions (a) do not require any material consent or approval of,
      registration or filing with, or any other action by, any Governmental Authority,
      except such as have been obtained or made and are in full force and effect
      and
      except filings necessary to perfect Liens created under the Loan Documents,
      (b)

     

    
      
        
        

      

      
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    will
      not
      violate any applicable law or regulation or any order of any Governmental
      Authority, (c) will not violate the charter, by-laws or other organizational
      documents of the Borrower or any other applicable Loan Party, (d) will not
      violate or result in a default under any material indenture, agreement or other
      instrument binding upon the Borrower or any other Loan Party or their assets,
      or
      give rise to a right thereunder to require any payment to be made by the
      Borrower or any other Loan Party, and (e) will not result in the creation or
      imposition of any Lien on any asset of the Borrower or any other Loan Party,
      except Liens created under the Loan Documents, except such consents, approvals,
      registrations, filings or other actions the failure to obtain or make, or,
      in
      the case of clauses (b) and (d) above, to the extent such
      violations could not reasonably be expected to have a Material Adverse
      Effect.

     

    SECTION
      3.04.  Financial Condition.

     

    (a)           The
      Borrower has heretofore furnished to the Lenders Borrower’s consolidated balance
      sheet and statements of income, stockholders equity and cash flows (1) as of
      and
      for the fiscal year ended December 31, 2006 and (2) as of and for the fiscal
      quarter and the portion of the fiscal year ended June 30, 2007, certified by
      its
      chief financial officer.  Such financial statements present fairly, in
      all material respects, the financial position and results of operations and
      cash
      flows of the Borrower and its consolidated Subsidiaries as of such dates and
      for
      such periods in accordance with GAAP, subject to year-end audit adjustments
      and
      the absence of footnotes in the case of the statements referred to in clause
      (2) above. Since December 31, 2006, there has been no material adverse
      change in the business, assets, operations or condition, financial or otherwise,
      of the Borrower and its Subsidiaries, taken as a whole.  Except as set
      forth on Schedule 6.01, after giving effect to the Transactions, none of
      the Borrower or its Subsidiaries has, as of the Effective Date, any material
      contingent liabilities or unrealized losses.

     

    (b)           The
      Borrower has heretofore furnished to the Lenders the consolidated balance sheet
      and statements of income, stockholders equity and cash flows of Precisions
      Industries, Inc., a Nebraska corporation, (1) as of and for the fiscal year
      ended December 31, 2006 and (2) as of and for the fiscal quarter and the portion
      of the fiscal year ended June 30, 2007, certified by the chief financial officer
      of Precisions Industries, Inc.  Such financial statements present
      fairly, in all material respects, the financial position and results of
      operations and cash flows of Precisions Industries, Inc. and its consolidated
      Subsidiaries as of such dates and for such periods in accordance with GAAP,
      subject to year-end audit adjustments and the absence of footnotes in the case
      of the statements referred to in clause (2) above. Since December 31,
      2006, there has been no material adverse change in the business, assets,
      operations or condition, financial or otherwise, of Precisions Industries,
      Inc.
      and its Subsidiaries, taken as a whole.

     

    SECTION
      3.05.  Properties.

     

    (a)           The
      Borrower and each other Loan Party has good title to, or valid leasehold
      interests in, all its real and personal property material to its business
      (including the Mortgaged Properties), except for Liens permitted under this
      Agreement and minor defects in title that do not interfere with its ability
      to
      conduct its business as currently conducted or to utilize such properties for
      their intended purposes.

     

    (b)           The
      Borrower and each other Loan Party owns, or is licensed to use, all trademarks,
      tradenames, copyrights, patents and other intellectual property material to
      its

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    business,
      and the use thereof by the Borrower and each other Loan Party does not infringe
      upon the rights of any other Person, except for any such infringements that
      could not reasonably be expected to result in a Material Adverse
      Effect.

     

    SECTION
      3.06.  Litigation and Environmental Matters.

     

    (a)           There
      are no actions, suits or proceedings by or before any arbitrator or Governmental
      Authority pending against or, to the knowledge of the Borrower, threatened
      against or affecting the Borrower or any other Loan Party (i) that could
      reasonably be expected to result in a Material Adverse Effect or (ii) that
      involve any of the Loan Documents or the Transactions.

     

    (b)           Except
      with respect to any matters that could not reasonably be expected to result
      in a
      Material Adverse Effect, neither the Borrower nor any other Loan Party (i)
      has
      failed to comply with any Environmental Law or to obtain, maintain or comply
      with any permit, license or other approval required under any Environmental
      Law,
      (ii) has become subject to any Environmental Liability, (iii) has received
      written notice of any claim with respect to any Environmental Liability or
      (iv)
      knows of any basis for any Environmental Liability.

     

    SECTION
      3.07.  Compliance with Laws and Agreements.  The
      Borrower and each other Loan Party is in compliance with all laws, regulations
      and orders of any Governmental Authority applicable to it or its property and
      all indentures, agreements and other instruments binding upon it or its
      property, except where the failure to do so could not reasonably be expected
      to
      result in a Material Adverse Effect.  No Default has occurred and is
      continuing.

     

    SECTION
      3.08.  Investment Company Status.  Neither the
      Borrower nor any other Loan Party is an “investment company” as defined in, or
      subject to regulation under, the Investment Company Act of 1940.

     

    SECTION
      3.09.  Taxes.  The Borrower and each other Loan Party
      has timely filed or caused to be filed all Tax returns and reports required
      to
      have been filed and has paid or caused to be paid all Taxes required to have
      been paid by it, except (a) Taxes that are being contested in good faith by
      appropriate proceedings and for which the Borrower or such other Loan Party,
      as
      applicable, has set aside on its books adequate reserves or (b) to the extent
      that the failure to do so could not reasonably be expected to result in a
      Material Adverse Effect.

     

    SECTION
      3.10.  ERISA.  No ERISA Event has occurred or is
      reasonably expected to occur that, when taken together with all other such
      ERISA
      Events for which liability is reasonably expected to occur, could reasonably
      be
      expected to result in a Material Adverse Effect.  The present value of
      all accumulated benefit obligations under each Plan (based on the assumptions
      used for purposes of Statement of Financial Accounting Standards No. 87) did
      not, as of the date of the most recent financial statements reflecting such
      amounts, exceed the fair market value of the assets of such Plan, and the
      present value of all accumulated benefit obligations of all underfunded Plans
      (based on the assumptions used for purposes of Statement of Financial Accounting
      Standards No. 87) did not, as of the date of the most recent financial
      statements reflecting such amounts, exceed the fair market value of the assets
      of all such underfunded Plans, in each of such cases so as to cause a Material
      Adverse Effect.

     

    
      
        
        

      

      
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    SECTION
      3.11.  Disclosure.  The Borrower has disclosed to the
      Lenders all agreements, instruments and corporate or other restrictions to
      which
      the Borrower or any other Loan Party is subject, and all other matters known
      to
      any of them, that could reasonably be expected to result in a Material Adverse
      Effect.  None of the reports, financial statements, certificates or
      other information furnished by or on behalf of any Loan Party to the
      Administrative Agent or any Lender in connection with the negotiation of this
      Agreement or any other Loan Document or delivered hereunder or thereunder (as
      modified or supplemented by other information so furnished) contains any
      material misstatement of fact or omits to state any material fact necessary
      to
      make the statements therein, taken as a whole, in the light of the circumstances
      under which they were made, not materially misleading; provided, however, that
      with respect to projected financial information, the Borrower represents only
      that such information was prepared in good faith based upon assumptions believed
      to be reasonable at the time, it being recognized by the Lenders that
      projections are not to be viewed as facts and that the actual results during
      the
      period or periods covered by such projections may vary from such projections
      and
      that such variations may be material.

     

    SECTION
      3.12.  Subsidiaries.  As of the date hereof, after
      giving effect to the closing of the Purchase Agreement, the Borrower has no
      Subsidiaries other than as set forth on Schedule 3.12
      hereto.  As of the date hereof, the Borrower owns all of the Equity
      Interests in and to each Subsidiary (other than Foreign Subsidiaries) listed
      on
Schedule 3.12 hereto.  Foreign Subsidiaries of the Borrower as
      of the date hereof are identified as such on Schedule 3.12 hereto and the
      identities of the holders of the Equity Interests in and to each Foreign
      Subsidiary as of the date hereof are also set forth on Schedule 3.12
      hereto.

     

    SECTION
      3.13.  Insurance.  As of the Effective Date, all
      premiums due in respect of all insurance maintained by the Borrower and each
      other Loan Party have been paid.

     

    SECTION
      3.14.  Labor Matters.  As of the Effective Date,
      there are no strikes, lockouts or slowdowns against the Borrower or any other
      Loan Party pending or, to the knowledge of the Borrower,
      threatened.  The hours worked by and payments made to employees of the
      Borrower and the other Loan Parties have not been in violation, in any material
      manner, of the Fair Labor Standards Act or any other applicable Federal, state,
      local or foreign law dealing with such matters.  All payments due from
      the Borrower or any other Loan Party, or for which any claim may be made against
      the Borrower or any other Loan Party, on account of wages and employee health
      and welfare insurance and other benefits, have been paid or accrued as a
      liability on the books of the Borrower or such other Loan Party.  The
      consummation of the Transactions will not give rise to any right of termination
      or right of renegotiation on the part of any union under any collective
      bargaining agreement to which the Borrower or any other Loan Party is
      bound.

     

    SECTION
      3.15.  Solvency.  Immediately after the consummation
      of the Transactions to occur on the Effective Date and immediately following
      the
      making of each Loan made on the Effective Date and after giving effect to the
      application of the proceeds of such Loans and to the rights of reimbursement,
      contribution and subrogation that the Loan Parties may have under the
      Contribution Agreement or otherwise, (a) the fair value of the assets of each
      Loan Party, at a fair valuation, will exceed its debts and liabilities,
      subordinated, contingent or otherwise; (b) the present fair saleable value
      of
      the property of each Loan Party will be greater than the amount that will be
      required to pay the probable liability of its debts and other liabilities,
      subordinated, contingent or otherwise, as such debts and other liabilities
      become absolute and matured; (c)

     

    
      
        
        

      

      
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    each
      Loan
      Party will be able to pay its debts and liabilities, subordinated, contingent
      or
      otherwise, as such debts and liabilities become absolute and matured; and (d)
      each Loan Party will not have unreasonably small capital with which to conduct
      the business in which it is engaged as such business is now conducted and is
      proposed to be conducted following the Effective Date.

     

    SECTION
      3.16.  Material Property Subject to Security
      Documents.  The Collateral constitutes all of the real and
      material personal property (other than Excluded Assets) owned by Borrower or
      any
      of its Subsidiaries (other than Foreign Subsidiaries); provided, however that
      the Collateral shall not include more than 66-2/3% of the issued and outstanding
      Equity Interests in and to any Foreign Subsidiary which is owned directly by
      Borrower or any of its Subsidiaries (other than Foreign
      Subsidiaries).

     

    SECTION
      3.17.  Property of Foreign Subsidiaries.  The
      aggregate value (based on the greater of book or market value) of the total
      assets owned by Foreign Subsidiaries of Borrower as of the Effective Date is
      no
      greater than 5% of the aggregate value (based on the greater of book or market
      value) of the total assets owned by Borrower and all of its
      Subsidiaries.

     

    ARTICLE
      IV

     

    Conditions

     

    SECTION
      4.01.  Effective Date.  The obligations of the
      Lenders to make Loans and of the Issuing Bank to issue Letters of Credit
      hereunder shall not become effective until the date on which each of the
      following conditions is satisfied (or waived in accordance with Section
      9.02):

     

    (a)           The
      Administrative Agent (or its counsel) shall have received from each party hereto
      either (i) counterparts of this Agreement signed on behalf of such party or
      (ii)
      written evidence satisfactory to the Administrative Agent (which may include
      telecopy transmission of a signed signature page of this Agreement) that such
      party has signed counterparts of this Agreement.

     

    (b)           The
      Administrative Agent (or its counsel) shall have received from Borrower an
      original of each Note signed on behalf of Borrower.

     

    (c)           The
      Administrative Agent (or its counsel) shall have received from Borrower and
      from
      each other party to the Loan Documents (other than the Notes) either (i)
      counterparts of each applicable Loan Document signed on behalf of such party
      or
      (ii) written evidence satisfactory to the Administrative Agent (which may
      include telecopy transmission of a signed signature page of the applicable
      Loan
      Document) that such party has signed counterparts of such Loan
      Document.

     

    (d)           The
      Administrative Agent shall have received written opinions (addressed to the
      Administrative Agent and the Lenders and dated the Effective Date) of Fulbright
      & Jaworski L.L.P., counsel for the Borrower and the other Loan Parties, in
      form and substance satisfactory to the Administrative Agent and its counsel,
      covering such matters relating to the Loan Parties, the Loan Documents or the
      Transactions as the Required Lenders shall reasonably request.

     

    (e)           The
      Administrative Agent shall have received such documents and certificates as
      the
      Administrative Agent or its counsel may reasonably request relating to the
      organization,

     

    
      
        
        

      

      
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    existence
      and good standing of each Loan Party, the authorization of the Transactions
      and
      any other legal matters relating to the Loan Parties, the Loan Documents or
      the
      Transactions, all in form and substance satisfactory to the Administrative
      Agent
      and its counsel.

     

    (f)           The
      Administrative Agent shall have received a certificate, dated the Effective
      Date
      and signed by an appropriate officer or other responsible party acceptable
      to
      Administrative Agent on behalf of Borrower, confirming compliance with the
      conditions set forth in paragraphs (a) and (b) of Section
      4.02.

     

    (g)           The
      Administrative Agent shall have received all fees and other amounts due and
      payable on or prior to the Effective Date, including, to the extent invoiced,
      reimbursement or payment of all reasonable out of pocket expenses (including
      reasonable fees, charges and disbursements of counsel) required to be reimbursed
      or paid by any Loan Party hereunder or under any other Loan
      Document.

     

    (h)           The
      Administrative Agent shall have received each of the following:

     

    (i)           stock
      certificates representing all of the outstanding shares of capital stock of
      each
      Subsidiary of Borrower as of the Effective Date (other than Foreign
      Subsidiaries) and stock powers, endorsed in blank, with respect to such stock
      certificates;

     

    (ii)           all
      documents and instruments, including Uniform Commercial Code financing
      statements, required by law or reasonably requested by the Administrative Agent
      to be filed, registered or recorded to create or perfect the Liens intended
      to
      be created under the Security Documents;

     

    (iii)           to
      the extent required by Administrative Agent, agreements whereby each landlord
      in
      respect of any space leased by the Borrower or any of its Subsidiaries which
      is
      affiliated with the Borrower or with Precision Industries, Inc., a Nebraska
      corporation, has subordinated any Lien such landlord may claim in any property
      of the Borrower or any of its Subsidiaries;

     

    (iv)           the
      results of a search of the Uniform Commercial Code (or equivalent) filings
      made
      with respect to the Loan Parties in such jurisdictions as the Administrative
      Agent may require and copies of the financing statements (or similar documents)
      disclosed by such search and evidence reasonably satisfactory to the
      Administrative Agent that the Liens indicated by such financing statements
      (or
      similar documents) are permitted by Section 6.02 or have been released;
      and

     

    (v)           evidence
      reasonably satisfactory to the Administrative Agent that none of the Mortgaged
      Property lies in an area requiring special notices of flood hazard issues or
      the
      purchase of flood hazard insurance and, to the extent reasonably required by
      Administrative Agent with respect to Mortgaged Property, a policy or policies
      of
      title insurance issued by a nationally recognized title insurance company,
      insuring the Lien of each such Mortgage as a valid first Lien on the Mortgaged
      Property described therein, free of any other Liens except as permitted by
      Section 6.02, together with such endorsements, coinsurance and
      reinsurance as the Administrative Agent may reasonably

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    request,
      and such surveys, abstracts and appraisals as may be required pursuant to such
      Mortgages or as the Administrative Agent may reasonably request.

     

    (i)           The
      Administrative Agent shall have received evidence that the insurance required
      by
Section 5.07 and the Security Documents is in effect.

     

    (j)           Borrower
      shall have delivered to the Administrative Agent a copy of the fully executed
      purchase agreement (the “Purchase Agreement”), relating to the
      acquisition by Borrower of all of the Equity Interests in and to Precisions
      Industries, Inc., a Nebraska corporation.  The acquisition
      contemplated by the Purchase Agreement shall have been, or substantially
      simultaneously with the initial advance hereunder shall be, consummated in
      accordance with the Purchase Agreement and applicable law, without any amendment
      to or waiver of any terms or conditions of the Purchase Agreement not approved
      by the Administrative Agent (such approval not to be unreasonably withheld
      or
      delayed).  The Administrative Agent shall have received copies of the
      material documents evidencing the closing of the transactions contemplated
      by
      the Purchase Agreement and all material due diligence materials relating to
      such
      transactions, which documents shall be in form and substance satisfactory to
      the
      Administrative Agent.

     

    (k)           The
      Administrative Agent shall have received evidence reasonably satisfactory to
      the
      Administrative Agent that the Borrower and each other Loan Party shall have
      been
      released from all liabilities and obligations in respect of Indebtedness (other
      than the Obligations and other than liabilities and obligations expressly
      permitted under Section 6.01 hereof, or as to which the proceeds of the
      initial Loans hereunder will be used to payoff such Obligations in
      full).

     

    The
      Administrative Agent shall notify the Borrower and the Lenders of the Effective
      Date, and such notice shall be conclusive and binding.

     

    SECTION
      4.02.  Each Credit Event.  The obligation of each
      Lender to make a Loan on the occasion of any Borrowing, and of the Issuing
      Bank
      to issue, amend, renew or extend any Letter of Credit, is subject to receipt
      of
      the request therefor in accordance herewith and to the satisfaction of the
      following conditions:

     

    (a)           The
      representations and warranties of each Loan Party set forth in the Loan
      Documents shall be true and correct in all material respects on and as of the
      date of such Borrowing or the date of issuance, amendment, renewal or extension
      of such Letter of Credit, as applicable, except to the extent that such
      representations and warranties specifically refer to an earlier date, in which
      case they shall be true and correct in all material respects as of such earlier
      date.

     

    (b)           At
      the time of and immediately after giving effect to such Borrowing or the
      issuance, amendment, renewal or extension of such Letter of Credit, as
      applicable, no Default shall have occurred and be continuing and there shall
      have occurred no event which would be reasonably likely to have a Material
      Adverse Effect.

     

    
      
        
        

      

      
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    Each
      Borrowing and each issuance, amendment, renewal or extension of a Letter of
      Credit shall be deemed to constitute a representation and warranty by the
      Borrower on the date thereof as to the matters specified in paragraphs (a)
      and
      (b) of this Section.

     

    ARTICLE
      V

     

    Affirmative
      Covenants

     

    Until
      the
      Commitments have expired or been terminated and the principal of and interest
      on
      each Loan and all fees payable hereunder shall have been paid in full and all
      Letters of Credit shall have expired or terminated (or the obligations
      thereunder shall have otherwise been collateralized in a manner and to an extent
      satisfactory to the Issuing Lender in its sole discretion) and all LC
      Disbursements shall have been reimbursed, the Borrower covenants and agrees
      with
      the Lenders that:

     

    SECTION
      5.01.  Financial Statements and Other
      Information.  The Borrower will furnish to the Administrative
      Agent and each Lender:

     

    (a)           within
      90 days after the end of each fiscal year of the Borrower, its audited
      consolidated balance sheet and related statements of operations, shareholders’
equity and cash flows as of the end of and for such year, setting forth in
      each
      case in comparative form the figures for the previous fiscal year, all reported
      on by Hein & Associates or other independent public accountants of
      recognized national standing (without a “going concern” or like qualification or
      exception and without any qualification or exception as to the scope of such
      audit) to the effect that such consolidated financial statements present fairly
      in all material respects the financial condition and results of operations
      of
      the Borrower and its consolidated Subsidiaries on a consolidated basis in
      accordance with GAAP consistently applied;

     

    (b)           within
      60 days after the end of each fiscal quarter (other than the last fiscal
      quarter) of each fiscal year of the Borrower, its consolidated balance sheet
      and
      related statements of operations and cash flows as of the end of and for such
      fiscal quarter and the then elapsed portion of the fiscal year, setting forth
      in
      each case in comparative form the figures for the corresponding period or
      periods of (or, in the case of the balance sheet, as of the end of) the previous
      fiscal year, all certified by one of its Financial Officers as presenting fairly
      in all material respects the financial condition and results of operations
      of
      the Borrower and its consolidated Subsidiaries on a consolidated basis in
      accordance with GAAP consistently applied, subject to normal year-end audit
      adjustments and the absence of footnotes;

     

    (c)           concurrently
      with any delivery of financial statements under clauses (a) or (b)
      above, a certificate of a Financial Officer of the Borrower, in the form of
      Exhibit B hereto, (i) certifying as to whether a Default has occurred
      and, if a Default has occurred, specifying the details thereof and any action
      taken or proposed to be taken with respect thereto and (ii) setting forth
      reasonably detailed calculations demonstrating compliance with Sections
      5.13, 6.13 and 6.14;

     

    (d)           at
      any such times as the Leverage Ratio is greater than 2.50 to 1.00, then within
      20 days after the end of each calendar month, a certificate of a Financial
      Officer of the Borrower setting forth reasonably detailed calculations
      demonstrating compliance with Sections 5.13(c);

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    (e)           within
      30 days after the end of each fiscal quarter of each fiscal year of the
      Borrower, a listing and aging of the Accounts receivable and Accounts payable
      of
      each Loan Party, prepared in reasonable detail and containing such information
      as Administrative Agent may reasonably request;

     

    (f)           on
      or before each November 30, a detailed consolidated budget for the immediately
      following fiscal year (including a projected consolidated balance sheet and
      related statements of projected operations as of the end of and for such fiscal
      year and setting forth the assumptions used for purposes of preparing such
      budget and, promptly when available, any significant revisions of such budget;
      and

     

    (g)           promptly
      following any request therefor, such other information regarding the operations,
      business affairs and financial condition of the Borrower or any other Loan
      Party, or compliance with the terms of any Loan Document, as the Administrative
      Agent may reasonably request.

     

    SECTION
      5.02.  Notices of Material Events.  The Borrower will
      furnish to the Administrative Agent prompt written notice of the
      following:

     

    (a)           the
      occurrence of any Default;

     

    (b)           the
      Borrower becoming aware of the filing or commencement of any action, suit or
      proceeding by or before any arbitrator or Governmental Authority against or
      affecting the Borrower or any other Loan Party or any Affiliate thereof that,
      if
      adversely determined, could reasonably be expected to result in a Material
      Adverse Effect;

     

    (c)           any
      casualty or other insured damage to any material portion of the Collateral
      or
      the commencement of any action or proceeding for the taking of any Collateral
      or
      any part thereof or interest therein under power of eminent domain or by
      condemnation or similar proceeding;

     

    (d)           any
      other development that results in, or would reasonably be expected to result
      in,
      a Material Adverse Effect.

     

    Each
      notice delivered under this Section shall be accompanied by a statement of
      a
      Financial Officer or other executive officer of the Borrower setting forth
      the
      details of the event or development requiring such notice and any action taken
      or proposed to be taken with respect thereto.

     

    SECTION
      5.03.  Information Regarding Borrower.

     

    (a)           The
      Borrower will furnish to the Administrative Agent prompt written notice of
      any
      change (i) in any Loan Party’s jurisdiction of organization or corporate name,
      (ii) in the location of any Loan Party’s chief executive office, its principal
      place of business, any office in which it maintains books or records relating
      to
      Collateral owned by it, (iii) in any Loan Party’s identity or corporate
      structure or (iv) in any Loan Party’s Federal Taxpayer Identification
      Number.  The Borrower agrees not to effect or permit any change
      referred to in the preceding sentence unless all filings have been or will,
      promptly after giving effect to such change, be, made under the Uniform
      Commercial Code or otherwise that are required in order for the

     

    
      
        
        

      

      
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    Administrative
      Agent to continue at all times following such change to have a valid, legal
      and
      perfected security interest in all the Collateral.  The Borrower also
      agrees promptly to notify the Administrative Agent if any material portion
      of
      the Collateral is damaged or destroyed.

     

    (b)           After
      the Effective Date (and after giving effect to the closing of the Purchase
      Agreement), Borrower will notify the Administrative Agent in writing promptly
      upon Borrower’s or any of its Subsidiaries’ (other than Foreign Subsidiaries)
      acquisition or ownership of any estate (fee simple or leasehold) of real
      property, wherever located (other than Excluded Assets) or of any personal
      property (other than Excluded Assets) not already covered by the Security
      Documents (such acquisition or ownership being herein called an “Additional
      Collateral Event” and the property so acquired or owned being herein called
“Additional Collateral”).  As soon as practicable and in any
      event within thirty (30) days (or such longer period as the Administrative
      Agent
      shall agree) after an Additional Collateral Event, Borrower shall (a) execute
      and deliver or cause to be executed and delivered Security Documents, in form
      and substance reasonably satisfactory to Administrative Agent, in favor of
      Administrative Agent and duly executed by Borrower or the applicable Subsidiary,
      covering and affecting and granting a first-priority Lien upon the applicable
      Additional Collateral, and such other documents (including, without limitation,
      surveys, environmental assessments, certificates, legal opinions, all in form
      and substance reasonably satisfactory to Administrative Agent) as may be
      reasonably required by Administrative Agent in connection with the execution
      and
      delivery of such Security Documents; (b) with respect to any Additional
      Collateral which is real property, to the extent required by Administrative
      Agent, cause a title insurance underwriter satisfactory to Administrative Agent
      to issue to Administrative Agent a mortgage policy of title insurance, in form
      and substance reasonably satisfactory to Administrative Agent, insuring the
      first-priority Lien of the applicable Mortgage in such amount as is reasonably
      satisfactory to Administrative Agent, and (c) deliver or cause to be delivered
      by Subsidiaries of Borrower such other documents or certificates consistent
      with
      the terms of this Agreement and relating to the transactions contemplated hereby
      as Administrative Agent may reasonably request.

     

    SECTION
      5.04.  Existence; Conduct of Business.  The Borrower
      will, and will cause each other Loan Party to, do or cause to be done all things
      necessary to preserve, renew and keep in full force and effect its legal
      existence and the rights, licenses, permits, privileges, franchises, patents,
      copyrights, trademarks and trade names material to the conduct of its business;
      provided that the foregoing shall not prohibit any merger, consolidation,
      liquidation or dissolution permitted under Section 6.03.

     

    SECTION
      5.05.  Payment of Obligations.  The Borrower will,
      and will cause each other Loan Party to, pay its Indebtedness and other
      obligations, including liabilities for Taxes, before the same shall become
      delinquent or in default, except where (a) the validity or amount thereof is
      being contested in good faith by appropriate proceedings, (b) the Borrower
      or
      such other Loan Party has set aside on its books adequate reserves with respect
      thereto in accordance with GAAP, (c) such contest effectively suspends
      collection of the contested obligation and the enforcement of any Lien securing
      such obligation and (d) the failure to make payment pending such contest would
      not reasonably be expected to result in a Material Adverse Effect.

     

    SECTION
      5.06.  Maintenance of Properties.  The Borrower will,
      and will cause each other Loan Party to, keep and maintain all property material
      to the conduct of its business in

     

    
      
        
        

      

      
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    good
      working order and condition, ordinary wear and tear  and casualty and
      condemnation (so long as prompt efforts are being pursued for repair and
      restoration) excepted.

     

    SECTION
      5.07.  Insurance.  The Borrower will, and will cause
      each other Loan Party to, maintain, with financially sound and reputable
      insurance companies (a) insurance in such amounts (with no greater risk
      retention) and against such risks as are customarily maintained by companies
      of
      established repute engaged in the same or similar businesses operating in the
      same or similar locations and (b) all insurance required to be maintained
      pursuant to the Security Documents.  The Borrower will furnish to the
      Lenders, upon request of the Administrative Agent, information in reasonable
      detail as to the insurance so maintained.

     

    SECTION
      5.08.  Intentionally Left Blank..

     

    SECTION
      5.09.  Books and Records; Inspection and Audit
      Rights.  The Borrower will, and will cause each other Loan Party
      to, keep proper books of record and account in which full, true and correct
      entries in all material respects in accordance with GAAP are made of all
      dealings and transactions in relation to its business and
      activities.  The Borrower will, and will cause each other Loan Party
      to, permit any representatives designated by the Administrative Agent, upon
      reasonable prior notice and during normal business hours, to visit and inspect
      its properties, to examine and make extracts from its books and records, and
      to
      discuss its affairs, finances and condition with its officers and independent
      accountants, all at such reasonable times and as often as reasonably
      requested.

     

    SECTION
      5.10.  Compliance with Laws.  The Borrower will, and
      will cause each other Loan Party to, comply with all laws, rules, regulations
      and orders of any Governmental Authority applicable to it or its property,
      except where the failure to do so would not reasonably be expected to result
      in
      a Material Adverse Effect.

     

    SECTION
      5.11.  Use of Proceeds and Letters of Credit.  The
      Letters of Credit and the proceeds of the Loans will be used only to pay a
      portion of the purchase price payable under the Purchase Agreement and for
      general working capital purposes, which may include refinancing existing
      Indebtedness.  No part of the proceeds of any Loan will be used,
      whether directly or indirectly, for any purpose that entails a violation of
      any
      of the Regulations of the Board, including Regulations U and X.

     

    SECTION
      5.12.  Further Assurances.  The Borrower will, and
      will cause each other Loan Party to, execute any and all further documents,
      financing statements, agreements and instruments, and take all such further
      actions (including the filing and recording of financing statements, fixture
      filings, mortgages, deeds of trust and other documents), which may be required
      under any applicable law, or which the Administrative Agent or the Required
      Lenders may reasonably request, to effectuate the transactions contemplated
      by
      the Loan Documents or to grant, preserve, protect or perfect the Liens created
      or intended to be created by the Security Documents or the validity or priority
      of any such Lien, all at the expense of the Loan Parties.  The
      Borrower also agrees to provide to the Administrative Agent, from time to time
      upon reasonable request by the Administrative Agent, evidence reasonably
      satisfactory to the Administrative Agent as to the perfection and priority
      of
      the Liens created or intended to be created by the Security
      Documents.

     

    
      
        
        

      

      
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    SECTION
      5.13.  Financial Covenants.  The Borrower will have
      (in each case, in accordance with GAAP):

     

    (a)           Fixed
      Charge Coverage Ratio– a Fixed Charge Coverage Ratio of not less than 1.50
      to 1.00 as of the last day of each fiscal quarter.

     

    (b)           Leverage
      Ratio– a Leverage Ratio of not greater than (i) as of the last day of each
      fiscal quarter during the period from and after the date hereof through and
      including September 30, 2009, 3.50 to 1.00 and (ii) as of the last day of each
      fiscal quarter thereafter, 3.00 to 1.00.

     

    (c)           Asset
      Coverage Ratio– an Asset Coverage Ratio of not less than 1.00 to 1.00 at all
      times.

     

    SECTION
      5.14.  Post-Closing Requirements.

     

    (a)           Borrower
      shall deliver to the Administrative Agent, within thirty (30) days after the
      Effective Date, stock certificates representing all the outstanding shares
      of
      capital stock of Borrower and of each Foreign Subsidiary of Borrower (subject
      to
      the limitation on Collateral set forth in Section 3.16 hereof) as of the
      Effective Date  and stock powers, endorsed in blank, with respect to
      such stock certificates.

     

    (b)           To
      the extent not required to be delivered concurrently with the execution of
      this
      Agreement, Borrower shall use its commercially reasonable efforts to deliver
      to
      the Administrative Agent, within sixty (60) days after the Effective Date,
      agreements whereby each landlord in respect of any space leased by the Borrower
      or any of its Subsidiaries (other than Foreign Subsidiaries) has subordinated
      any Lien such landlord may claim in any property of the Borrower or any of
      its
      Subsidiaries (other than Foreign Subsidiaries).

     

    (c)           Within
      sixty (60) days after the Effective Date, Borrower shall deliver to the
      Administrative Agent opinions of counsel reasonably acceptable to the
      Administrative Agent for each Loan Party organized under the laws of a
      jurisdiction other than Texas or Delaware or Nebraska covering such matters
      relating to such Loan Parties as the Administrative Agent may reasonably
      require, including the due organization of such Loan Parties and the due
      authorization of the execution and delivery of the Loan Documents by such Loan
      Parties.

     

    ARTICLE
      VI

     

    Negative
      Covenants

     

    Until
      the
      Commitments have expired or terminated and the principal of and interest on
      each
      Loan and all fees payable hereunder have been paid in full and all Letters
      of
      Credit have expired or terminated (or the obligations thereunder shall have
      otherwise been collateralized in a manner and to an extent satisfactory to
      the
      Issuing Lender in its sole discretion) and all LC Disbursements shall have
      been
      reimbursed, the Borrower covenants and agrees with the Lenders
      that:

     

    SECTION
      6.01.  Indebtedness; Certain Equity Securities.

     

    (a)           The
      Borrower will not, and will not permit any other Loan Party to, create, incur,
      assume or permit to exist any Indebtedness, except:

     

    
      
        
        

      

      
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    (i)           Indebtedness
      created under the Loan Documents;

     

    (ii)           Indebtedness
      existing on the date hereof and set forth in Schedule 6.01;

     

    (iii)           Indebtedness
      of any Subsidiary of Borrower (other than a Foreign Subsidiary) to the Borrower
      or any other  Subsidiary of Borrower (other than a Foreign Subsidiary)
      and Indebtedness of Borrower to any of its Subsidiaries (other than a Foreign
      Subsidiary) and Indebtedness of any Foreign Subsidiary of Borrower to any other
      Foreign Subsidiary of Borrower;

     

    (iv)           Indebtedness
      of any Foreign Subsidiary of Borrower to the Borrower or any
      other  Subsidiary of Borrower (other than a Foreign Subsidiary) in an
      aggregate amount not to exceed $1,000,000 in the aggregate at any one time
      outstanding and Indebtedness of Borrower to any of its Foreign Subsidiaries
      not
      to exceed $1,000,000 in the aggregate at any one time outstanding;

     

    (v)           Guarantees
      of Indebtedness permitted under this Section 6.01;

     

    (vi)           purchase
      money Indebtedness or Capital Lease Obligations in an aggregate amount not
      exceeding, at any one time outstanding, $3,000,000;

     

    (vii)           “mark
      to market” exposure resulting from any Swap Agreement entered into in compliance
      with Section 6.07;

     

    (viii)                      Indebtedness
      under performance, stay, customs, appeal and surety bonds or with respect to
      workers’ compensation or other like employee benefit claims, in each case
      incurred in the ordinary course of business;

     

    (ix)           Indebtedness
      in respect of customary netting services, overdraft protections and similar
      customary arrangements, in each case incurred in the ordinary course of business
      in connection with deposit accounts;

     

    (x)           Indebtedness
      of the type described in clause (e) of the definition of “Indebtedness”
secured by the Liens permitted under Section 6.02;

     

    (xi)           other
      Indebtedness in an aggregate principal amount not exceeding $10,000,000 at
      any
      one time outstanding; and

     

    (xii)           extensions,
      renewals and replacements of any of the foregoing that do not increase the
      outstanding principal amount thereof.

     

    (b)           The
      Borrower will not, nor will it permit any other Loan Party to, issue any
      preferred stock or other preferred Equity Interests after the Effective
      Date.

     

    SECTION
      6.02.  Liens.  The Borrower will not, and will not
      permit any other Loan Party to, create, incur, assume or permit to exist any
      Lien on any property or asset now owned or hereafter acquired by it, or assign
      or sell any income or revenues (including Accounts receivable) or rights in
      respect of any thereof, except:

     

    
      
        
        

      

      
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    (i)           Liens
      created under the Loan Documents;

     

    (ii)           any
      Lien on any property or asset of the Borrower or any other Loan Party existing
      on the date hereof and set forth in Schedule 6.02;

     

    (iii)           Liens
      created pursuant to Capital Lease Obligations or purchase money Indebtedness
      permitted pursuant to this Agreement; provided that such Liens are only in
      respect of the property or assets subject to, and secure only, the respective
      Capital Lease Obligations or purchase money Indebtedness;

     

    (iv)           leases,
      subleases, licenses and sublicenses granted in the ordinary course of business
      and not interfering in any material respect with the business of any Loan Party,
      and any interest of a lessor, sublessor, licensor or sublicensor under any
      lease
      or license entered into in the ordinary course of business;

     

    (v)           customary
      Liens (x) of a collection bank arising under Section 4-210 of the Uniform
      Commercial Code on items in the course of collection and (y) in favor of a
      banking institution arising as a matter of law encumbering deposits (including
      the right of set-off) and which are within the general parameters customary
      in
      the banking industry;

     

    (vi)           Liens
      on cash earnest money deposits or cash advances in favor of the seller of any
      property to be acquired in connection with an Acquisition permitted under
Section 6.15, which advances shall be applied against the purchase price
      for such Acquisition;

     

    (vii)           Liens
      arising out of any conditional sale, title retention, consignment or similar
      arrangements for the sale of goods entered into in the ordinary course of
      business;

     

    (viii)                      Liens
      not otherwise permitted by this Section securing obligations in an outstanding
      principal amount not in excess of $2,000,000; and

     

    (ix)           Permitted
      Encumbrances.

     

    SECTION
      6.03.  Fundamental Changes.

     

    (a)           The
      Borrower will not, nor will it permit any other Loan Party to, merge into or
      consolidate with any other Person, or permit any other Person to merge into
      or
      consolidate with it, or liquidate or dissolve, except that (i) any Subsidiary
      of
      the Borrower may merge into the Borrower in a transaction in which the Borrower
      is the surviving Person, (ii) any Subsidiary of the Borrower may merge into
      any
      other Subsidiary in a transaction in which the surviving entity is a Subsidiary
      of Borrower and a Loan Party, (iii) any Subsidiary of the Borrower may liquidate
      or dissolve if the Borrower determines in good faith that such liquidation
      or
      dissolution is in the best interests of the Borrower and is not materially
      disadvantageous to the Lenders and if such Subsidiary is not a Foreign
      Subsidiary, its assets are transferred to the Borrower or a Subsidiary (other
      than a Foreign Subsidiary) of the Borrower and (iv) the Borrower or any
      Subsidiary of Borrower may give effect to a merger or consolidation the purpose
      of which is to effect an investment, disposition or Acquisition permitted under
      Article VI so long as the surviving entity is a Subsidiary of Borrower
      and a Loan Party.

     

    
      
        
        

      

      
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    (b)           The
      Borrower will not, and will not permit any other Loan Party to, engage to any
      material extent in any business other than businesses of the type conducted
      by
      the Borrower and the other Loan Parties on the date of execution of this
      Agreement and businesses reasonably related thereto.

     

    SECTION
      6.04.  Investments, Loans, Advances and
      Guarantees.  The Borrower will not, and will not permit any other
      Loan Party to, purchase, hold or acquire (including pursuant to any merger
      with
      any Person that was not a wholly owned Subsidiary of Borrower or that is a
      Foreign Subsidiary prior to such merger) any Equity Interests in or evidences
      of
      indebtedness or other securities (including any option, warrant or other right
      to acquire any of the foregoing) of, make or permit to exist any loans or
      advances to, Guarantee any obligations of, or make or permit to exist any
      investment or any other interest in, any other Person, or purchase or otherwise
      acquire (in one transaction or a series of transactions) any assets of any
      other
      Person constituting a business unit, except:

     

    (a)           investments
      existing on the date hereof and set forth on Schedule 6.04;

     

    (b)           Permitted
      Investments and Acquisitions permitted under Section 6.15
      hereof;

     

    (c)           loans
      or advances made by any Subsidiary of Borrower (other than Foreign Subsidiary)
      to or in the Borrower or any other Subsidiary of Borrower (other than a Foreign
      Subsidiary) or loans or advances or investments made by Borrower to or in any
      of
      its Subsidiaries (other than a Foreign Subsidiary);

     

    (d)           loans
      or advances by the Borrower or any of its Subsidiaries to their respective
      employees in the ordinary course of business, not to exceed $250,000 in the
      aggregate at any one time outstanding;

     

    (e)           Accounts
      receivable owned by the Borrower or any of its Subsidiaries, if created in
      the
      ordinary course of business and payable or dischargeable in accordance with
      customary trade terms;

     

    (f)           Guarantees
      by the Borrower or any of its Subsidiaries (other than a Foreign Subsidiary)
      constituting Indebtedness permitted by Section 6.01; provided that a
      Subsidiary of Borrower shall not Guarantee any Subordinated Debt;

     

    (g)           pledges
      and deposits permitted under Section 6.02;

     

    (h)           Investments
      made as a result of the receipt of non-cash consideration from a sale, transfer
      or other disposition permitted under Section 6.05;

     

    (i)           Restricted
      Payments permitted under Section 6.08;

     

    (j)           additional
      Investments so long as the aggregate amount invested, loaned or advanced does
      not exceed $1,000,000; and

     

    (k)           investments
      received in connection with the bankruptcy or reorganization of, or settlement
      of delinquent Accounts and disputes with, customers and suppliers, in each
      case
      in the ordinary course of business.

     

    
      
        
        

      

      
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    SECTION
      6.05.  Asset Sales.  The Borrower will not, and will
      not permit any other Loan Party to, sell, transfer, lease or otherwise dispose
      of any asset, including any Equity Interest owned by it, nor will the Borrower
      permit any of its Subsidiaries to issue any additional Equity Interest in such
      Subsidiary, except:

     

    (a)           sales
      of inventory, used or surplus equipment and Permitted Investments in the
      ordinary course of business and sales of real property owned by the Borrower
      or
      any of its Subsidiaries as of the date hereof;

     

    (b)           sales,
      transfers and dispositions to the Borrower or to any of its Subsidiaries (other
      than a Foreign Subsidiary); provided that any such sales, transfers or
      dispositions involving a Subsidiary of Borrower that is not a Loan Party shall
      be made in compliance with Section 6.09;

     

    (c)           dispositions
      of property as a result of condemnation, eminent domain or similar
      proceedings;

     

    (d)           to
      the extent constituting dispositions, investments expressly permitted by
Section 6.04;

     

    (e)           leases,
      subleases, licenses or sublicenses in the ordinary course of business and which
      do not interfere in any material respect with the business of any Loan
      Party;

     

    (f)           dispositions
      of Accounts Receivable in connection with the collection or compromise thereof
      in the ordinary course of business;

     

    (g)           Restricted
      Payments permitted by Section 6.08; and

     

    (h)           other
      sales by the Borrower or any of its Subsidiaries which do not exceed, in the
      aggregate, $500,000 in any fiscal year;

     

    provided
      that all sales, transfers, leases and other dispositions permitted hereby (other
      than those permitted by clause (b) above) shall be made for fair value
      and for at least 75% cash consideration.

     

    SECTION
      6.06.  Sale and Leaseback Transactions.  The Borrower
      will not, and will not permit any other Loan Party to, enter into any
      arrangement, directly or indirectly, whereby it shall sell or transfer any
      property, real or personal, used or useful in its business, whether now owned
      or
      hereinafter acquired, and thereafter rent or lease such property or other
      property that it intends to use for substantially the same purpose or purposes
      as the property sold or transferred.

     

    SECTION
      6.07.  Swap Agreements.  The Borrower will not, and
      will not permit any other Loan Party to, enter into any Swap Agreement, other
      than Swap Agreements entered into in the ordinary course of business to hedge
      or
      mitigate risks to which the Borrower or any other Loan Party is exposed in
      the
      conduct of its business or the management of its liabilities and not for
      speculative purposes.

     

    SECTION
      6.08.  Restricted Payments.  The Borrower will not,
      nor will it permit any other Loan Party to, declare or make, or agree to pay
      or
      make, directly or indirectly, any

     

    
      
        
        

      

      
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    Restricted
      Payment, or incur any obligation (contingent or otherwise) to do so, except
      (i)
      the Borrower may declare and pay dividends with respect to its Equity Interests
      payable solely in additional shares of its common stock, and (ii) Subsidiaries
      of Borrower may declare and pay dividends ratably with respect to their Equity
      Interests and (iii) the Borrower may declare and pay preferred dividends up
      to a
      maximum aggregate amount of $90,000 per annum.

     

    SECTION
      6.09.  Transactions with Affiliates.  The Borrower
      will not, nor will it permit any other Loan Party to, sell, lease or otherwise
      transfer any property or assets to, or purchase, lease or otherwise acquire
      any
      property or assets from, or otherwise engage in any other transactions with,
      any
      of its Affiliates, except (a) transactions in the ordinary course of business
      that are at prices and on terms and conditions not less favorable to the
      Borrower or such other Loan Party than could be obtained on an arm’s-length
      basis from unrelated third parties, (b) transactions between or among the
      Borrower and any Loan Party not involving any other Affiliate, (c) payments
      of
      customary fees to directors of the Borrower and reimbursement of the reasonable
      out-of-pocket expenses incurred by directors in such capacity, (d) customary
      employment and severance arrangements with officers and employees in the
      ordinary course of business and (e) any transactions permitted by Article
      VI.

     

    SECTION
      6.10.  Restrictive Agreements.  The Borrower will
      not, nor will it permit any  other Loan Party to, directly or
      indirectly, enter into, incur or permit to exist any agreement or other
      arrangement that prohibits, restricts or imposes any condition upon (a) the
      ability of the Borrower or any other Loan Party to create, incur or permit
      to
      exist any Lien upon any of its property or assets, or (b) the ability of any
      Subsidiary of Borrower to pay dividends or other distributions with respect
      to
      any shares of its capital stock or membership interests or to make or repay
      loans or advances to the Borrower or any other Subsidiary of Borrower or to
      Guarantee Indebtedness of the Borrower or any of its Subsidiaries; provided
      that
      the foregoing shall not apply to restrictions and conditions imposed by law
      or
      by any Loan Document and provided further that (x) clauses (a) and
(b) above shall not apply to customary restrictions and conditions
      contained in agreements relating to the sale of a Person or asset pending such
      sale solely to the extent such sale is permitted under Section 6.05, and
      (y) clause (a) above shall not apply to customary provisions in leases,
      sublease, licenses or sublicenses and other contracts restricting the assignment
      thereof and negative pledges and restrictions on Liens in favor of any holder
      of
      Indebtedness permitted under Section 6.01(v), but solely to the extent
      such negative pledge or restriction relates to the property financed by such
      Indebtedness.

     

    SECTION
      6.11.  Amendment of Material Documents.  The Borrower
      will not, nor will it permit any other Loan Party to, amend, modify or waive
      any
      of its rights under (a) any Subordinated Debt Document or (b) its organizational
      documents (in any manner adverse to the Lenders).

     

    SECTION
      6.12.  Additional Subsidiaries.  The Borrower will
      not, and will not permit any other Loan Party to, form or acquire any Subsidiary
      after the Effective Date except that Borrower or any of its Subsidiaries may
      form, create or acquire a wholly-owned Subsidiary so long as (a) immediately
      thereafter and giving effect thereto, no event will occur and be continuing
      which constitutes a Default; (b) such domestic Subsidiary (and, where
      applicable, Borrower) shall execute and deliver a Guaranty (or, at the option
      of
      Administrative Agent, a joinder to the Guaranty executed concurrently herewith)
      and such Security Documents as the Administrative Agent may reasonably require
      to effectuate the provisions of this Agreement regarding Collateral

     

    
      
        
        

      

      
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    to
      be
      covered by the Security Documents (provided that no Foreign Subsidiary shall
      be
      required to execute and deliver such a Guaranty or such Security Documents),
      and
      (c) Administrative Agent is given at least thirty (30) days’ (or such lesser
      period of time as may be agreed to by the Administrative Agent) prior notice
      of
      such formation, creation or acquisition.    No Foreign
      Subsidiary may form, create or acquire a Subsidiary which is not a Foreign
      Subsidiary.

     

    SECTION
      6.13.  Capital Expenditures.  The Borrower will not,
      and will not permit any other Loan Party to, permit the aggregate amount of
      all
      Capital Expenditures for Borrower and the other Loan Parties during any fiscal
      year of the Borrower to exceed $10,000,000 plus, for fiscal years
      beginning on January 1, 2008 and later, any unused availability for Capital
      Expenditures from the immediately preceding fiscal year (but not from any
      earlier year).

     

    SECTION
      6.14.  Lease Expense.  The Borrower will not, and
      will not permit any other Loan Party to, enter into any lease agreement (other
      than capital leases giving rise to Capital Lease Obligations) if, after giving
      effect to such new lease agreement, consolidated annual rental expense of the
      Borrower and its Subsidiaries attributable to leases (other than capital leases
      giving rise to Capital Lease Obligations) would exceed $10,000,000.

     

    SECTION
      6.15.  Acquisitions.  The Borrower will not, and will
      not permit any other Loan Party to, enter into Acquisition other
      than  an Acquisition (which may be way of a merger with and into the
      Borrower or another Loan Party so long as the Borrower or the applicable Loan
      Party is the surviving entity), so long as:

     

    (a)           any
      Acquisition of Equity Interests shall require the acquisition of all (but not
      less than all) of the Equity Interests in and to the applicable
      Person;

     

    (b)           no
      Default or Event of Default shall have occurred and be continuing or, on a
      pro
      forma basis, would reasonably be expected to result from such
      Acquisition;

     

    (c)           the
      Borrower can demonstrate, on a pro forma basis, after giving effect to such
      Acquisition that (x) there is at least ten percent (10%) availability for Loan
      Borrowings hereunder and (y) if the Leverage Ratio is equal to or greater
      than 2.00 to 1.00, that the consideration payable in connection with the
      applicable Acquisition will not exceed $10,000,000 and that the aggregate
      consideration payable in connection with all Acquisitions (including the
      applicable Acquisition) in the applicable fiscal year will not exceed
      $25,000,000; and

     

    (d)           the
      Borrower shall have delivered (or caused to be delivered) to the Administrative
      Agent such other documents as may be reasonably requested by the Administrative
      Agent in connection with such Acquisition.

     

    SECTION
      6.16.  Property of Foreign Subsidiaries.  Permit the
      aggregate value (based on the greater of book or market value) of the total
      assets owned by Foreign Subsidiaries of Borrower  to exceed 5% of the
      aggregate value (based on the greater of book or market value) of the total
      assets owned by Borrower and all of its Subsidiaries.

     

    
      
        
        

      

      
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    ARTICLE
      VII

     

    Events
      of
      Default

     

    If
      any of
      the following events (“Events of Default”) shall occur:

     

    (a)           the
      Borrower shall fail to pay any principal of any Loan or any reimbursement
      obligation in respect of any LC Disbursement when and as the same shall become
      due and payable, whether at the due date thereof or at a date fixed for
      prepayment thereof or otherwise;

     

    (b)           the
      Borrower shall fail to pay any interest on any Loan or any fee or any other
      amount (other than an amount referred to in clause (a) of this Article)
      payable under this Agreement or any other Loan Document, when and as the same
      shall become due and payable, and such failure shall continue unremedied for
      a
      period of three Business Days;

     

    (c)           any
      representation or warranty made or deemed made by or on behalf of the Borrower
      or any other Loan Party in or in connection with any Loan Document or any
      amendment or modification thereof or waiver thereunder, or in any report,
      certificate, financial statement or other document furnished pursuant to or
      in
      connection with any Loan Document or any amendment or modification thereof
      or
      waiver thereunder, shall prove to have been incorrect in any material respect
      when made or deemed made;

     

    (d)           the
      Borrower shall fail to observe or perform any covenant, condition or agreement
      contained in Sections 5.02 (other than clause (c) thereof),
5.03(b), 5.07, 5.11, 5.12, 5.13(a) or
5.13(b) or in Article
      VI;

     

    (e)           any
      Loan Party shall fail to observe or perform any covenant, condition or agreement
      contained in any Loan Document (other than those specified in clauses
      (a), (b) or (d) of this Article), and such failure shall
      continue unremedied for a period of 30 days after the earlier of (i) the
      Borrower becoming aware of such failure and (ii) notice thereof from the
      Administrative Agent to the Borrower (which notice will be given at the request
      of the Required Lenders);

     

    (f)           any
      Loan Party shall fail to observe or perform any covenant, condition or agreement
      contained in Section 5.13(c), and such failure shall continue unremedied
      for a period of 5 Business Days after the earlier of (i) the Borrower becoming
      aware of such failure and (ii) notice thereof from the Administrative Agent
      to
      the Borrower (which notice will be given at the request of the Required
      Lenders);

     

    (g)           any
      event or condition occurs that results in any Material Indebtedness becoming
      due
      prior to its scheduled maturity or that enables or permits (with or without
      the
      giving of notice, the lapse of time or both) the holder or holders of any
      Material Indebtedness or any trustee or agent on its or their behalf to cause
      any Material Indebtedness to become due, or to require the prepayment,
      repurchase, redemption or defeasance thereof, prior to its scheduled
      maturity;

     

    (h)           an
      involuntary proceeding shall be commenced or an involuntary petition shall
      be
      filed seeking (i) liquidation, reorganization or other relief in respect of
      the
      Borrower or any other Loan Party or their debts, or of a substantial part of
      their assets, under any  Federal, state or foreign bankruptcy,
      insolvency, receivership or similar law now or hereafter in effect or (ii)
      the

     

    
      
        
        

      

      
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    appointment
      of a receiver, trustee, custodian, sequestrator, conservator or similar official
      for the Borrower or any other Loan Party or for a substantial part of their
      assets, and, in any such case, such proceeding or petition shall continue
      undismissed for 60 days or an order or decree approving or ordering any of
      the
      foregoing shall be entered;

     

    (i)           the
      Borrower or any other Loan Party shall (i) voluntarily commence any proceeding
      or file any petition seeking liquidation, reorganization or other relief under
      any Federal, state or foreign bankruptcy, insolvency, receivership or similar
      law now or hereafter in effect, (ii) consent to the institution of, or fail
      to
      contest in a timely and appropriate manner, any proceeding or petition described
      in clause (h) of this Article, (iii) apply for or consent to the
      appointment of a receiver, trustee, custodian, sequestrator, conservator or
      similar official for the Borrower or any other Loan Party or for a substantial
      part of its assets, (iv) file an answer admitting the material allegations
      of a
      petition filed against it in any such proceeding, (v) make a general assignment
      for the benefit of creditors or (vi) take any action for the purpose of
      effecting any of the foregoing;

     

    (j)           the
      Borrower or any other Loan Party shall become unable, admit in writing its
      inability or fail generally to pay its debts as they become due;

     

    (k)           one
      or more judgments for the payment of money in an aggregate amount in excess
      of
      $1,000,000 (exclusive of amounts covered by insurance) shall be rendered against
      the Borrower or any other Loan Party and the same shall remain undischarged
      for
      a period of 30 consecutive days during which execution shall not be effectively
      stayed, or any action shall be legally taken by a judgment creditor to attach
      or
      levy upon any assets of the Borrower or any other Loan Party to enforce any
      such
      judgment;

     

    (l)           an
      ERISA Event shall have occurred that, in the opinion of the Required Lenders,
      when taken together with all other ERISA Events that have occurred, could
      reasonably be expected to result in a Material Adverse Effect;

     

    (m)           any
      Lien purported to be created under any Security Document shall cease to be
      a
      valid and perfected Lien on any Collateral, with the priority required by the
      applicable Security Document, except as a result of the sale or other
      disposition of the applicable Collateral in a transaction permitted under the
      Loan Documents, and the same shall not be fully cured within 30 days after
      notice thereof to the Borrower by the Administrative Agent, or any Lien
      purported to be created under any Security Document shall be asserted by any
      Loan Party not to be a valid and perfected Lien on any Collateral, with the
      priority required by the applicable Security Document, except as a result of
      the
      sale or other disposition of the applicable Collateral in a transaction
      permitted under the Loan Documents;

     

    (n)           a
      Change of Control shall occur;

     

    then,
      and
      in every such event (other than an event with respect to the Borrower described
      in clauses (h) or (i) of this Article), and at any time thereafter
      during the continuance of such event, the Administrative Agent may, and at
      the
      request of the Required Lenders shall, by notice to the Borrower, take either
      or
      both of the following actions, at the same or different times:  (i)
      terminate the Commitments, and thereupon the Commitments shall terminate
      immediately, and (ii) declare the Loans then outstanding to be due and payable
      in whole (or in part, in which case

     

    
      
        
        

      

      
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    any
      principal not so declared to be due and payable may thereafter be declared
      to be
      due and payable), and thereupon the principal of the Loans so declared to be
      due
      and payable, together with accrued interest thereon and all fees and other
      obligations of the Borrower accrued hereunder, shall become  due and
      payable immediately, without presentment, demand, protest or other notice of
      any
      kind, all of which are hereby waived by the Borrower; and in case of any event
      with respect to the Borrower described in clauses (h) or (i) of
      this Article, the Commitments shall automatically terminate and the principal
      of
      the Loans then outstanding, together with accrued interest thereon and all
      fees
      and other obligations of the Borrower accrued hereunder, shall automatically
      become due and payable, without presentment, demand, protest or other notice
      of
      any kind, all of which are hereby waived by the Borrower.

     

    ARTICLE
      VIII

     

    The
      Administrative Agent

     

    Each
      of
      the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative
      Agent as its agent and authorizes the Administrative Agent to take such actions
      on its behalf and to exercise such powers as are delegated to the Administrative
      Agent by the terms of the Loan Documents, together with such actions and powers
      as are reasonably incidental thereto.

     

    The
      bank
      serving as the Administrative Agent hereunder shall have the same rights and
      powers in its capacity as a Lender as any other Lender and may exercise the
      same
      as though it were not the Administrative Agent, and such bank and its Affiliates
      may accept deposits from, lend money to and generally engage in any kind of
      business with the Borrower or any of its Subsidiaries or other Affiliate thereof
      as if it were not the Administrative Agent hereunder.

     

    The
      Administrative Agent shall not have any duties or obligations except those
      expressly set forth in the Loan Documents.  Without limiting the
      generality of the foregoing, (a) the Administrative Agent shall not be subject
      to any fiduciary or other implied duties, regardless of whether a Default has
      occurred and is continuing, (b) the Administrative Agent shall not have any
      duty
      to take any discretionary action or exercise any discretionary powers, except
      discretionary rights and powers expressly contemplated by the Loan Documents
      that the Administrative Agent is required to exercise in writing by the Required
      Lenders (or such other number or percentage of the Lenders as shall be necessary
      under the circumstances as provided in Section 9.02), and (c) except as
      expressly set forth in the Loan Documents, the Administrative Agent shall not
      have any duty to disclose, and shall not be liable for the failure to disclose,
      any information relating to the Borrower or any of its Subsidiaries that is
      communicated to or obtained by the bank serving as Administrative Agent or
      any
      of its Affiliates in any capacity.  The Administrative Agent shall not
      be liable for any action taken or not taken by it with the consent or at the
      request of the Required Lenders (or such other number or percentage of the
      Lenders as shall be necessary under the circumstances as provided in Section
      9.02) or in the absence of its own gross negligence or willful misconduct,
      BUT REGARDLESS OF THE PRESENCE OF ORDINARY NEGLIGENCE.  The
      Administrative Agent shall not be deemed to have knowledge of any Default unless
      and until written notice thereof is given to the Administrative Agent by the
      Borrower or a Lender, and the Administrative Agent shall not be responsible
      for
      or have any duty to ascertain or inquire into (i) any statement, warranty or
      representation made in or in connection with any Loan Document, (ii) the
      contents of any certificate, report or other document delivered thereunder
      or in
      connection therewith, (iii) the performance or observance of any of the
      covenants, agreements or other terms or conditions set

     

    
      
        
        

      

      
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    forth
      in
      any Loan Document, (iv) the validity, enforceability, effectiveness or
      genuineness of any Loan Document or any other agreement, instrument or document,
      or (v) the satisfaction of any condition set forth in Article IV or
      elsewhere in any Loan Document, other than to confirm receipt of items expressly
      required to be delivered to the Administrative Agent.

     

    The
      Administrative Agent shall be entitled to rely upon, and shall not incur any
      liability for relying upon, any notice, request, certificate, consent,
      statement, instrument, document or other writing believed by it to be genuine
      and to have been signed or sent by the proper Person.  The
      Administrative Agent also may rely upon any statement made to it orally or
      by
      telephone and believed by it to be made by the proper Person, and shall not
      incur any liability for relying thereon.  The Administrative Agent may
      consult with legal counsel (who may be counsel for the Borrower), independent
      accountants and other experts selected by it, and shall not be liable for any
      action taken or not taken by it in accordance with the advice of any such
      counsel, accountants or experts.

     

    The
      Administrative Agent may perform any and all its duties and exercise its rights
      and powers by or through any one or more sub-agents appointed by the
      Administrative Agent.  The Administrative Agent and any such sub-agent
      may perform any and all its duties and exercise its rights and powers through
      their respective Related Parties.  The exculpatory provisions of the
      preceding paragraphs shall apply to any such sub-agent and to the Related
      Parties of the Administrative Agent and any such sub-agent, and shall apply
      to
      their respective activities in connection with the syndication of the credit
      facilities provided for herein as well as activities as Administrative
      Agent.

     

    Subject
      to the appointment and acceptance of a successor Administrative Agent as
      provided in this paragraph, the Administrative Agent may (and, in the event
      (i)
      neither the Administrative Agent nor any Affiliate of the Administrative Agent,
      as a Lender, has any Revolving Exposure or unused Commitment and (ii) the
      Required Lenders so request, the Administrative Agent shall) resign at any
      time
      by notifying the Lenders, the Issuing Bank and the Borrower.  Upon any
      such resignation, the Required Lenders shall have the right, in consultation
      with the Borrower (and, so long as no Event of Default has occurred which is
      continuing, subject to the consent of Borrower, not to be unreasonably
      withheld), to appoint a successor.  If no successor shall have been so
      appointed by the Required Lenders and shall have accepted such appointment
      within 60 days after the retiring Administrative Agent gives notice of its
      resignation, then the retiring Administrative Agent may, on behalf of the
      Lenders and the Issuing Bank, in consultation with the Borrower, appoint a
      successor Administrative Agent which shall be a bank with an office in Houston,
      Texas, or an Affiliate of any such bank.  Upon the acceptance of its
      appointment as Administrative Agent hereunder by a successor, such successor
      shall succeed to and become vested with all the rights, powers, privileges
      and
      duties of the retiring Administrative Agent, and the retiring Administrative
      Agent shall be discharged from its duties and obligations
      hereunder.  The fees payable by the Borrower to a successor
      Administrative Agent shall be the same as those payable to its predecessor
      unless otherwise agreed between the Borrower and such
      successor.  After the Administrative Agent’s resignation hereunder,
      the provisions of this Article and Section 9.03 shall continue in effect
      for the benefit of such retiring Administrative Agent, its sub agents and their
      respective Related Parties in respect of any actions taken or omitted to be
      taken by any of them while it was acting as Administrative Agent.

     

    
      
        
        

      

      
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    Each
      Lender acknowledges that it has, independently and without reliance upon the
      Administrative Agent or any other Lender and based on such documents and
      information as it has deemed appropriate, made its own credit analysis and
      decision to enter into this Agreement.  Each Lender also acknowledges
      that it will, independently and without reliance upon the Administrative Agent
      or any other Lender and based on such documents and information as it shall
      from
      time to time deem appropriate, continue to make its own decisions in taking
      or
      not taking action under or based upon this Agreement, any other Loan Document
      or
      related agreement or any document furnished hereunder or
      thereunder.

     

    ARTICLE
      IX

     

    Miscellaneous

     

    SECTION
      9.01.  Notices.

     

    (a)           Except
      in the case of notices and other communications expressly permitted to be given
      by telephone (and subject to paragraph (b) below), all notices and other
      communications provided for herein shall be in writing and shall be delivered
      by
      hand or overnight courier service, mailed by certified or registered mail or
      sent by telecopy, as follows:

     

    (i)           if
      to the Borrower, to it at 7272 Pinemont, Houston, Texas 77040, Attention: Mac
      McConnell (Telecopy No. 713-996-6570);

     

    (ii)           if
      to the Administrative Agent, to Wells Fargo Bank, National Association, 1700
      Lincoln Ave., MAC C7300-034, Denver, Colorado 80203, Telecopy No.: 303-863-5533,
      with a copy to: Wells Fargo Bank, National Association, North Houston Commercial
      Banking, 21 Waterway Ave., Suite 600, The Woodlands, TX  77380,
      Attention:  Thomas F. Caver, Telecopy
      No.:  281-362-6611;

     

    (iii)           if
      to the Issuing Bank, to Wells Fargo Bank, National Association, 1700 Lincoln
      Ave., MAC C7300-034, Denver, Colorado 80203, Telecopy No.: 303-863-5533, with
      a
      copy to: Wells Fargo Bank, National Association, North Houston Commercial
      Banking, 21 Waterway Ave., Suite 600, The Woodlands, TX  77380,
      Attention:  Thomas F. Caver, Telecopy
      No.:  281-362-6611;

     

    (iv)           if
      to the Swingline Lender, to Wells Fargo Bank, National Association, 1700 Lincoln
      Ave., MAC C7300-034, Denver, Colorado 80203, Telecopy No.: 303-863-5533, with
      a
      copy to: Wells Fargo Bank, National Association, North Houston Commercial
      Banking, 21 Waterway Ave., Suite 600, The Woodlands, TX  77380,
      Attention:  Thomas F. Caver, Telecopy No.:  281-362-6611;
      and

     

    (v)           if
      to any other Lender, to it at its address (or telecopy number) set forth in
      its
      Administrative Questionnaire.

     

    (b)           The
      Borrower and the Lenders agree that the Administrative Agent may make any
      material delivered by the Borrower to the Administrative Agent, as well as
      any
      amendments, waivers, consents, and other written information, documents,
      instruments and other materials relating to the Borrower, any of its
      Subsidiaries, or any other materials or matters relating to this Agreement,
      the
      Notes or any of the transactions contemplated hereby (collectively, the
      "Communications") available to the Lenders by posting such notices on an
      electronic delivery

     

    
      
        
        

      

      
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    system
      (which may be provided by the Administrative Agent, an Affiliate of the
      Administrative Agent, or any Person that is not an Affiliate of the
      Administrative Agent), such as IntraLinks, or a substantially similar electronic
      system (the "Platform").  The Borrower acknowledges that (i)
      the distribution of material through an electronic medium is not necessarily
      secure and that there are confidentiality and other risks associated with such
      distribution, (ii) the Platform is provided "as is" and "as available" and
      (iii)
      neither the Administrative Agent nor any of its Affiliates warrants the
      accuracy, completeness, timeliness, sufficiency, or sequencing of the
      Communications posted on the Platform.  The Administrative Agent and
      its Affiliates expressly disclaim with respect to the Platform any liability
      for
      errors in transmission, incorrect or incomplete downloading, delays in posting
      or delivery, or problems accessing the Communications posted on the Platform
      and
      any liability for any losses, costs, expenses or liabilities that may be
      suffered or incurred in connection with the Platform.  No warranty of
      any kind, express, implied or statutory, including, without limitation, any
      warranty of merchantability, fitness for a particular purpose, non-infringement
      of third party rights or freedom from viruses or other code defects, is made
      by
      the Administrative Agent or any of its Affiliates in connection with the
      Platform.  Each Lender agrees that notice to it (as provided in the
      next sentence) (a "Notice") specifying that any Communication has been
      posted to the Platform shall for purposes of this Agreement constitute effective
      delivery to such Lender of such information, documents or other materials
      comprising such Communication.  Each Lender agrees (i) to notify, on
      or before the date such Lender becomes a party to this Agreement, the
      Administrative Agent in writing of such Lender's e-mail address to which a
      Notice may be sent (and from time to time thereafter to ensure that the
      Administrative Agent has on record an effective e-mail address for such Lender)
      and (ii) that any Notice may be sent to such e-mail address.

     

    (c)           Any
      party hereto may change its address or telecopy number for notices and other
      communications hereunder by notice to the other parties hereto.  All
      notices and other communications given to any party hereto in accordance with
      the provisions of this Agreement shall be deemed to have been given on the
      date
      of receipt.

     

    SECTION
      9.02.  Waivers; Amendments.

     

    (a)           No
      failure or delay by the Administrative Agent, the Issuing Bank or any Lender
      in
      exercising any right or power hereunder or under any other Loan Document shall
      operate as a waiver thereof, nor shall any single or partial exercise of any
      such right or power, or any abandonment or discontinuance of steps to enforce
      such a right or power, preclude any other or further exercise thereof or the
      exercise of any other right or power.  The rights and remedies of the
      Administrative Agent, the Issuing Bank and the Lenders hereunder and under
      the
      other Loan Documents are cumulative and are not exclusive of any rights or
      remedies that they would otherwise have.  No waiver of any provision
      of any Loan Document or consent to any departure by any Loan Party therefrom
      shall in any event be effective unless the same shall be permitted by paragraph
      (b) of this Section, and then such waiver or consent shall be effective only
      in
      the specific instance and for the purpose for which given.  Without
      limiting the generality of the foregoing, the making of a Loan or issuance
      of a
      Letter of Credit shall not be construed as a waiver of any Default, regardless
      of whether the Administrative Agent, any Lender or the Issuing Bank may have
      had
      notice or knowledge of such Default at the time.

     

    
      
        
        

      

      
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    (b)           Neither
      this Agreement nor any other Loan Document nor any provision hereof or thereof
      may be waived, amended or modified except, in the case of this Agreement,
      pursuant to an agreement or agreements in writing entered into by the Borrower
      and the Required Lenders or, in the case of any other Loan Document, pursuant
      to
      an agreement or agreements in writing entered into by the Administrative Agent
      and the Loan Party or Loan Parties that are parties thereto, in each case with
      the consent of the Required Lenders; provided that no such agreement shall
      (i)
      increase  the Commitment of any Lender without the written consent of
      such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement
      or
      reduce the rate of interest thereon, or reduce any fees payable hereunder,
      without the written consent of each Lender affected thereby, (iii) postpone
      the
      scheduled date of payment of the principal amount of any Loan or LC
      Disbursement, or any interest thereon, or any fees payable hereunder, or reduce
      the amount of, waive or excuse any such payment, or postpone the scheduled
      date
      of expiration of any Commitment, without the written consent of each Lender
      affected thereby, (iv) change Section 2.17(b) or (c) in a manner
      that would alter the pro rata sharing of payments required thereby, without
      the
      written consent of each Lender affected thereby, (v) change any of the
      provisions of this Section or the definition of “Required Lenders” or any other
      provision of any Loan Document specifying the number or percentage of Lenders
      (or Lenders of any Class) required to waive, amend or modify any rights
      thereunder or make any determination or grant any consent thereunder, without
      the written consent of each Lender (or each Lender of such Class, as the case
      may be), (vi) other than in connection with a transaction permitted by
Article VI, release any Subsidiary of Borrower from liability under the
      Guaranty or limit the liability of any Subsidiary of Borrower in respect of
      the
      Guaranty, without the written consent of each Lender, (vii) other than in
      connection with a transaction permitted by Article VI, release all or
      substantially all of the Collateral from the Liens of the Security Documents,
      without the written consent of each Lender or (vii) change any provisions of
      any
      Loan Document in a manner that by its terms adversely affects the rights in
      respect of payments due to Lenders holding Loans of any Class differently than
      those holding Loans of any other Class, without the written consent of Lenders
      holding a majority in interest of the outstanding Loans and unused Commitments
      of each affected Class; provided further that no such agreement shall amend,
      modify or otherwise affect the rights or duties of the Administrative Agent
      or
      the Issuing Bank or the Swingline Lender without the prior written consent
      of
      the Administrative Agent or the Issuing Bank or the Swingline Lender, as the
      case may be.

     

    SECTION
      9.03.  Expenses; Indemnity; Damage Waiver.

     

    (a)           The
      Borrower shall pay (i) all reasonable out of pocket expenses incurred by the
      Administrative Agent and its Affiliates, including the reasonable fees, charges
      and disbursements of counsel for the Administrative Agent, in connection with
      the syndication of the credit facilities provided for herein, the preparation
      and administration of the Loan Documents or any amendments, modifications or
      waivers of the provisions thereof (whether or not the transactions contemplated
      hereby or thereby shall be consummated), (ii) all reasonable out of-pocket
      expenses incurred by the Issuing Bank in connection with the issuance,
      amendment, renewal or extension of any Letter of Credit or any demand for
      payment thereunder and (iii) all out-of-pocket expenses incurred by the
      Administrative Agent, the Issuing Bank or any Lender, including the fees,
      charges and disbursements of any counsel for the Administrative Agent, the
      Issuing Bank or any Lender, in connection with the enforcement or protection
      of
      its rights in connection with the Loan Documents, including its rights under
      this Section, or in connection with the Loans made or Letters of Credit issued
      hereunder, including all such out-of pocket

     

    
      
        
        

      

      
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    expenses
      incurred during  any workout, restructuring or negotiations in respect
      of such Loans or Letters of Credit.

     

    (b)           The
      Borrower shall indemnify the Administrative Agent, the Issuing Bank and each
      Lender, and each Related Party of any of the foregoing Persons (each such Person
      being called an “Indemnitee”) against, and hold each Indemnitee harmless from,
      any and all losses, claims, damages, liabilities and related expenses, including
      the fees, charges and disbursements of any counsel for any Indemnitee, incurred
      by or asserted against any Indemnitee arising out of, in connection with, or
      as
      a result of (i) the execution or delivery of any Loan Document or any other
      agreement or instrument contemplated hereby, the performance by the parties
      to
      the Loan Documents of their respective obligations thereunder or the
      consummation of the Transactions or any other transactions contemplated hereby,
      (ii) any Loan or Letter of Credit or the use of the proceeds therefrom
      (including any refusal by the Issuing Bank to honor a demand for payment under
      a
      Letter of Credit if the documents presented in connection with such demand
      do
      not strictly comply with the terms of such Letter of Credit), (iii) any actual
      or alleged presence or release of Hazardous Materials on or from any Mortgaged
      Property or any other property currently or formerly owned or operated by the
      Borrower or any of its Subsidiaries, or any Environmental Liability related
      in
      any way to the Borrower or any of its Subsidiaries, or (iv) any actual or
      prospective claim, litigation, investigation or proceeding relating to any
      of
      the foregoing, whether based on contract, tort or any other theory and
      regardless of whether any Indemnitee is a party thereto; provided that such
      indemnity shall not, as to any Indemnitee, be available to the extent that
      such
      losses, claims, damages, liabilities or related expenses resulted from the
      gross
      negligence, bad faith or willful misconduct of, or a breach of the Loan
      Documents by, such Indemnitee, BUT THE PRESENCE OF ORDINARY NEGLIGENCE SHALL
      NOT
      AFFECT THE AVAILABILITY OF SUCH INDEMNITY.

     

    (c)           To
      the extent that the Borrower fails to pay any amount required to be paid by
      it
      to the Administrative Agent or the Issuing Bank or the Swingline Lender under
      paragraphs (a) or (b) of this Section, each Lender severally agrees to pay
      to
      the Administrative Agent or the Issuing Bank or the Swingline Lender, as the
      case may be, such Lender’s pro rata share (determined as of the time that the
      applicable unreimbursed expense or indemnity payment is sought) of such unpaid
      amount; provided that the unreimbursed expense or indemnified loss, claim,
      damage, liability or related expense, as the case may be, was incurred by or
      asserted against the Administrative Agent or the Issuing Bank in its capacity
      as
      such.  For purposes hereof, a Lender’s “pro rata share” shall be
      determined based upon (without duplication) its share of the sum of the total
      Revolving Exposures and unused Commitments at the time.

     

    (d)           To
      the extent permitted by applicable law, neither the Borrower nor any other
      Loan
      Party shall assert, and each hereby waives, any claim against any Indemnitee,
      on
      any theory of liability, for special, indirect, consequential or punitive
      damages (as opposed to direct or actual damages) arising out of, in connection
      with, or as a result of, this Agreement or any agreement or instrument
      contemplated hereby, the Transactions, any Loan or Letter of Credit or the
      use
      of the proceeds thereof.

     

    (e)           All
      amounts due under this Section shall be payable not later than three Business
      Days after written demand therefor.

     

    SECTION
      9.04.  Successors and Assigns.

     

    
      
        
        

      

      
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    (a)           The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns permitted hereby
      (including any Affiliate of the Issuing Bank that issues any Letter of Credit),
      except that (i) the Borrower may not assign or otherwise transfer any of its
      rights or obligations hereunder without the prior written consent of each Lender
      (and any attempted assignment or transfer by the Borrower without such consent
      shall be null and void) and (ii) no Lender may assign or otherwise transfer
      its
      rights or obligations hereunder except in accordance with this
      Section.  Nothing in this Agreement, expressed or implied, shall be
      construed to confer upon any Person (other than the parties hereto, their
      respective successors and assigns permitted hereby (including any Affiliate
      of
      the Issuing Bank that issues any Letter of Credit), Participants (to the extent
      provided in paragraph (c) of this Section) and, to the extent expressly
      contemplated hereby, the Related Parties of each of the Administrative Agent,
      the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim
      under or by reason of this Agreement.

     

    (b)           (i)           Subject
      to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
      to
      one or more assignees all or a portion of its rights and obligations under
      this
      Agreement (including all or a portion of its Commitment and the Loans at the
      time owing to it) with the prior written consent (such consent not to be
      unreasonably withheld) of:

     

    (A)           the
      Borrower, provided that no consent of the Borrower shall be required for an
      assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an
      Event of Default has occurred and is continuing, any other assignee;
      and

    

    (B)           the
      Administrative Agent, provided that no consent of the Administrative Agent
      shall
      be required for an assignment of any Commitment to an assignee that is a Lender
      with a Commitment immediately prior to giving effect to such assignment (or
      an
      Affiliate of any such Lender or an Approved Fund); and

    

    (C)           the
      Issuing Bank and the Swingline Lender.

    

    (ii)           Assignments
      shall be subject to the following additional conditions:

    

    (A)           except
      in the case of an assignment to a Lender or an Affiliate of a Lender or an
      assignment of the entire remaining amount of the assigning Lender’s Commitment
      or Loans of any Class, the amount of the Commitment or Loans of the assigning
      Lender subject to each such assignment (determined as of the date the Assignment
      and Assumption with respect to such assignment is delivered to the
      Administrative Agent) shall not be less than $5,000,000 in respect of a
      Commitment, and shall not result in the assigning Lender holding a Commitment
      of  less than $5,000,000, unless each of the Borrower and the
      Administrative Agent otherwise consent, provided that no such consent of the
      Borrower shall be required if an Event of Default has occurred and is
      continuing;

    

    (B)           each
      partial assignment shall be made as an assignment of a proportionate part of
      all
      the assigning Lender’s rights and obligations under this Agreement, provided
      that this clause shall not be construed to prohibit the

    
      
        
        

      

      
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    assignment
      of a proportionate part of all the assigning Lender’s rights and obligations in
      respect of one Class of Commitments or Loans;

    

    (C)           the
      parties to each assignment shall execute and deliver to the Administrative
      Agent
      an Assignment and Assumption, together with a processing and recordation fee
      of
      $3,500; and

    

    (D)           the
      assignee, if it shall not be a Lender, shall deliver to the Administrative
      Agent
      an Administrative Questionnaire.

    

    For
      the
      purposes of this Section, the term “Approved Fund” has the following
      meaning:

     

    “Approved
      Fund” means any Person (other than a natural person) that is engaged in
      making, purchasing, holding or investing in bank loans and similar extensions
      of
      credit in the ordinary course of its business and that is administered or
      managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
      Affiliate of an entity that administers or manages a Lender.

    

    (iii)           Subject
      to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
      Section, from and after the effective date specified in each Assignment and
      Assumption the assignee thereunder shall be a party hereto and, to the extent
      of
      the interest assigned by such Assignment and Assumption, have the rights and
      obligations of a Lender under this Agreement, and the assigning Lender
      thereunder shall, to the extent of the interest assigned by such Assignment
      and
      Assumption, be released from its obligations under this Agreement (and, in
      the
      case of an Assignment and Assumption covering all of the assigning Lender’s
      rights and obligations under this Agreement, such Lender shall cease to be
      a
      party hereto but shall continue to be entitled to the benefits of Sections
      2.14, 2.15, 2.16 and 9.03).  Any assignment
      or transfer  by a Lender of rights or obligations under this Agreement
      that does not comply with this Section shall be treated for purposes of this
      Agreement as a sale by such Lender of a participation in such rights and
      obligations in accordance with paragraph (c) of this Section.

    

    (iv)           The
      Administrative Agent, acting for this purpose as an agent of the Borrower,
      shall
      maintain at one of its offices a copy of each Assignment and Assumption
      delivered to it and a register for the recordation of the names and addresses
      of
      the Lenders, and the Commitment of, and principal amount of the Loans and LC
      Disbursements owing to, each Lender pursuant to the terms hereof from time
      to
      time (the “Register”).  The entries in the Register shall be
      conclusive, and the Borrower, the Administrative Agent, the Issuing Bank, the
      Swingline Lender and the Lenders may treat each Person whose name is recorded
      in
      the Register pursuant to the terms hereof as a Lender hereunder for all purposes
      of this Agreement, notwithstanding notice to the contrary.  The
      Register shall be available for inspection by the Borrower, the Issuing Bank,
      the Swingline Lender and any Lender, at any reasonable time and from time to
      time upon reasonable prior notice.

    

    (v)           Upon
      its receipt of a duly completed Assignment and Assumption executed by an
      assigning Lender and an assignee, the assignee’s completed Administrative
      Questionnaire (unless the assignee shall already be a Lender hereunder), the
      processing and recordation fee referred to in paragraph (b) of this Section
      and
      any written consent to such assignment required by paragraph (b) of this
      Section, the Administrative Agent shall accept such

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

    Assignment
      and Assumption and record the information contained therein in the Register;
      provided that if either the assigning Lender or the assignee shall have failed
      to make any payment required to be made by it pursuant to this Agreement, the
      Administrative Agent shall have no obligation to accept such Assignment and
      Assumption and record the information therein in the Register unless and until
      such payment shall have been made in full, together with all accrued interest
      thereon.  No assignment shall be effective for purposes of this
      Agreement unless it has been recorded in the Register as provided in this
      paragraph.

    

    (c)           (i)  Any
      Lender may, without the consent of the Borrower, the Administrative Agent or
      the
      Issuing Bank or the Swingline Lender, sell participations to one or more banks
      or other entities (a “Participant”) in all or a portion of such Lender’s
      rights and obligations under this Agreement (including all or a portion of
      its
      Commitment and the Loans owing to it); provided that (A) such Lender’s
      obligations under this Agreement shall remain unchanged, (B) such Lender shall
      remain solely responsible to the other parties hereto for the performance of
      such obligations and (C) the Borrower, the Administrative Agent, the Issuing
      Bank, the Swingline Lender and the other Lenders shall continue to deal solely
      and directly with such Lender in connection with such Lender’s rights and
      obligations under this Agreement.  Any agreement or instrument
      pursuant to which a Lender sells such a participation shall provide that such
      Lender shall retain the sole right to enforce this Agreement and to approve
      any
      amendment, modification or waiver of any provision of this Agreement; provided
      that such agreement or instrument may provide that such Lender will not, without
      the consent of the Participant, agree to any amendment, modification or waiver
      described in the first proviso to Section 9.02(b) that affects such
      Participant.  Subject to paragraph (c)(ii) of this Section, the
      Borrower agrees that each Participant shall be entitled to the benefits of
      Sections 2.14, 2.15 and 2.16 to the same extent as if it
      were a Lender and had acquired its interest by assignment pursuant to paragraph
      (b) of this Section.  To the extent permitted by law, each Participant
      also shall be entitled to the benefits of Section 9.08 as though it were
      a Lender, provided such Participant agrees to be subject to Section
      2.17(c) as though it were a Lender.

     

    (ii)           A
      Participant shall not be entitled to receive any greater payment under
Sections 2.14, 2.15 or 2.16 than the applicable Lender
      would have been entitled to receive with respect to the participation sold
      to
      such Participant, unless the sale of the participation to such Participant
      is
      made with the Borrower’s prior written consent.  A Participant that
      would be a Foreign Lender if it were a Lender shall not be entitled to the
      benefits of Section 2.16 unless the Borrower is notified of the
      participation sold to such Participant and such Participant agrees, for the
      benefit of the Borrower, to comply with Section 2.16(e) as though it were
      a Lender.

    

    (d)           Any
      Lender may at any time pledge or assign a security interest in all or any
      portion of its rights under this Agreement to secure obligations of such Lender,
      including without limitation any pledge or assignment to secure obligations
      to a
      Federal Reserve Bank, and this Section shall not apply to any such pledge or
      assignment of a security interest; provided that no such pledge or assignment
      of
      a security interest shall release a Lender from any of its obligations hereunder
      or substitute any such pledgee or assignee for such Lender as a party
      hereto.

     

    SECTION
      9.05.  Survival.  All covenants, agreements,
      representations and warranties made by the Loan Parties in the Loan Documents
      and in the certificates or other instruments  delivered in connection
      with or pursuant to this Agreement or any other Loan Document shall be
      considered to have been relied upon by the other parties hereto and shall
      survive the execution

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

    and
      delivery of the Loan Documents and the making of any Loans and issuance of
      any
      Letters of Credit, regardless of any investigation made by any such other party
      or on its behalf and notwithstanding that the Administrative Agent, the Issuing
      Bank, the Swingline Lender or any Lender may have had notice or knowledge of
      any
      Default or incorrect representation or warranty at the time any credit is
      extended hereunder, and shall continue in full force and effect as long as
      the
      principal of or any accrued interest on any Loan or any fee or any other amount
      payable under this Agreement is outstanding and unpaid or any Letter of Credit
      is outstanding and so long as the Commitments have not expired or
      terminated.  The provisions of Sections 2.14, 2.15,
2.16 and 9.03 and Article VIII shall survive and remain in
      full force and effect regardless of the consummation of the transactions
      contemplated hereby, the repayment of the Loans, the expiration or termination
      of the Letters of Credit and the Commitments or the termination of this
      Agreement or any provision hereof.

     

    SECTION
      9.06.  Counterparts; Integration;
      Effectiveness.  This Agreement may be executed in counterparts
      (and by different parties hereto on different counterparts), each of which
      shall
      constitute an original, but all of which when taken together shall constitute
      a
      single contract.  This Agreement, the other Loan Documents and any
      separate letter agreements with respect to fees payable to the Administrative
      Agent constitute the entire contract among the parties relating to the subject
      matter hereof and supersede any and all previous agreements and understandings,
      oral or written, relating to the subject matter hereof.  Except as
      provided in Section 4.01, this Agreement shall become effective when it
      shall have been executed by the Administrative Agent and when the Administrative
      Agent shall have received counterparts hereof which, when taken together, bear
      the signatures of each of the other parties hereto, and thereafter shall be
      binding upon and inure to the benefit of the parties hereto and their respective
      successors and assigns.  Delivery of an executed counterpart of a
      signature page of this Agreement by telecopy shall be effective as delivery
      of a
      manually executed counterpart of this Agreement.

     

    SECTION
      9.07.  Severability.  Any provision of this Agreement
      held to be invalid, illegal or unenforceable in any jurisdiction shall, as
      to
      such jurisdiction, be ineffective to the extent of such invalidity, illegality
      or unenforceability without affecting the validity, legality and enforceability
      of the remaining provisions hereof; and the invalidity of a particular provision
      in a particular jurisdiction shall not invalidate such provision in any other
      jurisdiction.

     

    SECTION
      9.08.  Right of Setoff.  If an Event of Default shall
      have occurred and be continuing, each Lender and each of its Affiliates is
      hereby authorized at any time and from time to time, to the fullest extent
      permitted by law, to set off and apply any and all deposits (general or special,
      time or demand, provisional or final) at any time held and other obligations
      at
      any time owing by such Lender or Affiliate to or for the credit or the account
      of the Borrower against any of and all the obligations of the Borrower now
      or
      hereafter existing under this Agreement held by such Lender, irrespective of
      whether or not such Lender shall have made any demand under this Agreement
      and
      although such obligations may be unmatured.  The rights of each Lender
      under this Section are in addition to other rights and remedies (including
      other
      rights of setoff) which such Lender may have.  Each Lender agrees to
      use reasonable efforts to promptly notify Borrower and Administrative Agent
      after any such set-off and application, provided that failure to give (or delay
      in giving) any such notice shall not affect the validity of such set-off and
      application or impose any liability on such Lender.

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

    SECTION
      9.09.  Governing Law; Jurisdiction; Consent to Service of
      Process.

     

    (a)           This
      Agreement shall be construed in accordance with and governed by the law of
      the
      State of Texas.

     

    (b)           Each
      party hereto hereby irrevocably and unconditionally submits, for itself and
      its
      property, to the nonexclusive jurisdiction of each court of the State of Texas
      sitting in Harris County and of the United States District Court of the Southern
      District of Texas (Houston Division), and any appellate court from any thereof,
      in any action or proceeding arising out of or relating to any Loan Document,
      or
      for recognition or enforcement of any judgment, and each of the parties hereto
      hereby irrevocably and unconditionally agrees that all claims in respect of
      any
      such action or proceeding may be heard and determined in such Texas State or,
      to
      the extent permitted by law, in such Federal court.  Each of the
      parties hereto agrees that a final judgment in any such action or proceeding
      shall be conclusive and may be enforced in other jurisdictions by suit on the
      judgment or in any other manner provided by law.  Nothing in this
      Agreement or any other Loan Document shall affect any right that the
      Administrative Agent, the Issuing Bank, the Swingline Lender or any Lender
      may
      otherwise have to bring any action or proceeding relating to this Agreement
      or
      any other Loan Document against the Borrower or its properties in the courts
      of
      any jurisdiction.

     

    (c)           Each
      party hereto hereby irrevocably and unconditionally waives, to the fullest
      extent it may legally and effectively do so, any objection which it may now
      or
      hereafter have to the laying of venue of any suit, action or proceeding arising
      out of or relating to this Agreement or any other Loan Document in any court
      referred to in paragraph (b) of this Section.  Each of the parties
      hereto hereby irrevocably waives, to the fullest extent permitted by law, the
      defense of an inconvenient forum to the maintenance of such action or proceeding
      in any such court.

     

    (d)           Each
      party to this Agreement irrevocably consents to service of process in the manner
      provided for notices in Section 9.01.  Nothing in this
      Agreement or any other Loan Document will affect the right of any party to
      this
      Agreement to serve process in any other manner permitted by law.

     

    SECTION
      9.10.  WAIVER OF JURY TRIAL.  EACH PARTY
      HERETO HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT
      BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY
      SUCH
      RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT OR ANY OTHER
      LOAN DOCUMENT, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION
      THEREWITH.  THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY
      AND VOLUNTARILY BY EACH PARTY HERETO, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY
      EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD
      OTHERWISE ACCRUE.  EACH PARTY HERETO IS HEREBY AUTHORIZED TO FILE A
      COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER
      BY ANY OTER PARTY HERETO.

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

    SECTION
      9.11.  Headings.  Article and Section headings and
      the Table of Contents used herein are for convenience of reference only, are
      not
      part of this Agreement and shall not affect the construction of, or be taken
      into consideration in interpreting, this Agreement.

     

    SECTION
      9.12.  Interest Rate Limitation.  Borrower and the
      Lenders intend to strictly comply with all applicable federal and Texas laws,
      including applicable usury laws (or the usury laws of
      any  jurisdiction whose usury laws are deemed to apply to the Notes or
      any other Loan Documents despite the intention and desire of the parties to
      apply the usury laws of the State of Texas).  Accordingly, the
      provisions of this Section shall govern and control over every other provision
      of this Agreement or any other Loan Document which conflicts or is inconsistent
      with this Section, even if such provision declares that it
      controls.  As used in this Section, the term “interest” includes the
      aggregate of all charges, fees, benefits or other compensation which constitute
      interest under applicable law, provided that, to the maximum extent permitted
      by
      applicable law, (a) any non-principal payment shall be characterized as an
      expense or as compensation for something other than the use, forbearance or
      detention of money and not as interest, and (b) all interest at any time
      contracted for, reserved, charged or received shall be amortized, prorated,
      allocated and spread, using the actuarial method, during the full term of the
      Notes.  In no event shall Borrower or any other Person be obligated to
      pay, or any Lender have any right or privilege to reserve, receive or retain,
      (a) any interest in excess of the maximum amount of nonusurious interest
      permitted under the laws of the State of Texas or the applicable laws (if any)
      of the United States or of any other jurisdiction, or (b) total interest in
      excess of the amount which such Lender could lawfully have contracted for,
      reserved, received, retained or charged had the interest been calculated for
      the
      full term of the Notes at the Ceiling Rate.  The daily interest rates
      to be used in calculating interest at the Ceiling Rate shall be determined
      by
      dividing the applicable Ceiling Rate per annum by the number of days in the
      calendar year for which such calculation is being made.  None of the
      terms and provisions contained in this Agreement or in any other Loan Document
      (including, without limitation, Article VII hereof) which directly or
      indirectly relate to interest shall ever be construed without reference to
      this
      Section, or be construed to create a contract to pay for the use, forbearance
      or
      detention of money at any interest rate in excess of the Ceiling
      Rate.  If the term of any Note is shortened by reason of acceleration
      or maturity as a result of any Default or by any other cause, or by reason
      of
      any required or permitted prepayment, and if for that (or any other) reason
      any
      Lender at any time, including but not limited to, the stated maturity, is owed
      or receives (and/or has received) interest in excess of interest calculated
      at
      the Ceiling Rate, then and in any such event all of any such excess interest
      shall be canceled automatically as of the date of such acceleration, prepayment
      or other event which produces the excess, and, if such excess interest has
      been
      paid to such Lender, it shall be credited pro tanto against the then-outstanding
      principal balance of Borrower’s obligations to such Lender, effective as of the
      date or dates when the event occurs which causes it to be excess interest,
      until
      such excess is exhausted or all of such principal has been fully paid and
      satisfied, whichever occurs first, and any remaining balance of such excess
      shall be promptly refunded to its payor.

     

    SECTION
      9.13.  USA Patriot Act.  Each Lender that is subject
      to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed
      into law October 26, 2001)) (the “Act”) hereby notifies the Borrower that
      pursuant to the requirements of the Act, it is required to obtain, verify and
      record information that identifies the Borrower, which information includes
      the
      name and address of the Borrower and other information that will allow such
      Lender to identify the Borrower in accordance with the Act.

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

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

     

    

    DXP
      ENTERPRISES, INC.,

    a
      Texas
      corporation

    

    

    By:                         /S/Mac
      McConnell                                                  

    Name:                   Mac
      McConnell

    
      	
               

            	
                          
                Title:

            	
                         
                Senior Vice President, Chief Financial Officer and
                Secretary

            

    

    

    

    Tax
      Id.
      No. 76-0509661

    

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION, individually and as Lead Arranger and
      Administrative Agent and as Issuing Bank and Swingline Lender

    

    

    By:              /S/Tom
      Caver                                                             

    Name:    Thomas
      F.
      Caver, III

    Title:     
Vice
      President

    

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

    U.S.
      BANK
      NATIONAL ASSOCIATION

    

    

    By:        /S/Mark
      D.
      Skornia                                                                   

    Name:   
      Mark D. Skornia

    Title:     
      Vice President

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

    WACHOVIA
      BANK, NATIONAL

    ASSOCIATION

    

    

    By:          /S/Michael
      R.
      Quiray                                                                 

    Michael
      R. Quiray, Vice
      President

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    FIFTH
      THIRD BANK

    

    
      By:        /S/Steven
        M.
        Kuhn                                                                   

      Name:   
        Steven M. Kuhn

      Title:     
        Vice PresidentExhibit 10.2  

  

December 16,
1985 

Dr. R.
Rao Koganty

Edmonton,
Alberta

T6L 4E9 

Dear
Dr. Koganty: 

        Further
to our discussion on December 13, 1985 with regard to possible employment in Biomira I am pleased to inform you that I am now prepared to offer you a position of a Senior
Scientist in our Chemistry Group effective February 1, 1986. Annual remuneration will be $40,000.00 in addition to a fringe benefits package already negotiated by the company with Sun Life
Insurance. This package includes such benefits as denticare, long term disability insurance, term life Insurance, drug coverage, etc. Annual vacations will be for 4 weeks in addition to official
public holidays. 

        Your
prompt reply to the above offer will be greatly appreciated. Needless to say, my colleagues in Biomira and myself are looking forward to you joining our dynamic team next February. 

        With
best personal regards. 

	 	 	Cordially,
	 	 	 
	 	 	 
	 	 	/s/ A.A. Noujaim, Ph.D.
 A.A. Noujaim, Ph.D.

Vice President, Research

	AAN/mc
	cc.	 	Mr. R. Mee

President

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