Document:

EX-10.11:

 

EXHIBIT 10.11

          SECOND AMENDMENT, dated as of June 27, 2005 (the “Second Amendment”), to the
Amended and Restated Credit Agreement, dated as of July 1, 2004 (as amended, supplemented or
otherwise modified, the “Credit Agreement”), among PIKE HOLDINGS, INC., a North Carolina
corporation (“Holdings”), PIKE ELECTRIC, INC., a North Carolina corporation (the
“Borrower”), the several banks and other financial institutions from time to time parties
thereto (the “Lenders”), J.P. MORGAN SECURITIES INC., as syndication agent, NATIONAL CITY
BANK, as documentation agent, and BARCLAYS BANK PLC, as administrative agent for the Lenders
thereunder (in such capacity, the “Administrative Agent”). All capitalized terms used
herein that are defined in the Credit Agreement and that are not otherwise defined herein shall
have the respective meanings ascribed thereto in the Credit Agreement.

W I T N E S S E T H:

          WHEREAS, Holdings plans to complete an initial public offering of its common stock (the
“IPO”);

          WHEREAS, Holdings, a North Carolina corporation, plans to merge (the “Reincorporation
Merger”) with and into Pike Electric Corporation, a Delaware corporation and a wholly owned
subsidiary of Holdings (the “Merger Sub”), with the Merger Sub as the surviving entity, so
that Holdings will be reincorporated in the State of Delaware (the Reincorporation Merger and such
reincorporation collectively called the “Reincorporation” and the surviving corporation of
the Reincorporation Merger also being referred to herein as “Holdings”);

          WHEREAS, Holdings has requested that the Lenders agree to amend the Credit Agreement to permit
the Reincorporation and modify certain other terms and conditions of the Credit Agreement;

          WHEREAS, Holdings intends to use all of the net proceeds of the common stock offered by
Holdings pursuant to the IPO to make a capital contribution to the Borrower for the purpose of
paying the Termination Fee and to repay a portion of the outstanding principal of the Term Loans;
and

          WHEREAS, the Lenders have agreed to amend the Credit Agreement solely on the terms and
conditions set forth in this Second Amendment.

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

SECTION 1.   AMENDMENTS TO THE CREDIT AGREEMENT

     1.1.   Amendment to Section 6.19 (Holding Company Status). Section 6.19 of the Credit
Agreement is hereby amended by deleting such Section in its entirety and substituting in lieu
thereof the following new Section 6.19:

     6.19. Holding Company Status. Holdings will not engage in any business or
operations other than complying with its obligations under the Credit Documents, owning
capital stock of the Borrower and Merger Sub and activities incidental thereto.

 

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     1.2.   Amendment to Section 7.1 (Information Covenants). Section 7.1 of the Credit
Agreement is hereby amended by deleting the second paragraph of Section 7.1(b) in its entirety and
substituting in lieu thereof the following (and any financial statements delivered prior to the
date hereof shall be deemed to have complied as of and from the time of their delivery with the
second paragraph of Section 7.1(b) if they would have complied with such paragraph as amended
hereby):

     All such financial statements delivered pursuant to paragraphs (a) and (b)
above shall present fairly in all material respects the consolidated financial
condition of Holdings and its consolidated Subsidiaries as at the applicable dates,
and the consolidated results of their operations, their changes in equity (deficit)
and their consolidated cash flows for the periods reflected therein, and shall be
prepared in accordance with GAAP applied consistently throughout the periods
reflected therein and with the periods presented in the registration statement
filed with the SEC in connection with the IPO (except as approved by such
accountants or officers, as the case may be, and disclosed therein).

     1.3.   Amendment to Section 8.1 (Changes in Business). Section 8.1 of the Credit
Agreement is hereby amended by deleting such Section in its entirety and substituting in lieu
thereof the following new Section 8.1:

     8.1. Changes in Business. Except as otherwise permitted by Section 8.2,
Holdings will not permit any of its Subsidiaries to substantively alter the character of
the business of the Borrower and its Subsidiaries from that conducted at the Effective
Date, and Holdings will not engage in any business or operations, or expand its business or
operations, except as conducted by it on the Effective Date (in each case after giving
effect to the consummation of the Acquisition). Holdings will: (a) engage in no business
or activity other than complying with its obligations under the Credit Documents, the
ownership of all of the capital stock of the Borrower and, solely for the purpose of
effecting the Reincorporation, Merger Sub and activities incidental thereto; (b) own no
capital stock other than capital stock of the Borrower and, solely for the purpose of
effecting the Reincorporation, Merger Sub; (c) not contract, create, incur, assume or
suffer to exist any Indebtedness except pursuant to the Documents and as permitted by
Section 8.4 and (d) not own any assets other than capital stock of the Borrower, the Merger
Sub, solely for the purpose of effecting the Reincorporation, and de minimis amounts of
other assets incidental to the conduct of its business.

     1.4.   Amendment to Section 8.2 (Consolidation, Merger, Sale of Assets, etc.).
Section 8.2 of the Credit Agreement is hereby amended by (i) deleting the word “and” at the end of
Section 8.2(f), (ii) deleting the period at the end of Section 8.2(g) and replacing it with the
phrase “;and” and (iii) inserting the following new Section 8.2(h) immediately following Section
8.2(g) thereto:

     (h) the Reincorporation Merger.

     1.5.   Amendment to Section 8.10 (Transactions with Affiliates). Section 8.10 of the
Credit Agreement is hereby amended by inserting at the end of clause (ii) the phrase “and the
payment of the Termination Fee on or before the date immediately after the receipt by Holdings of
the proceeds of the IPO so long as no Event of Default exists at the time of such payment,”.

 

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     1.6.   Amendment to Section 8.15 (Deferred Compensation Liability). Section 8.15 of
the Credit Agreement is hereby amended by deleting in its entirety the chart set forth therein and
substituting in lieu thereof the following:

	 	 	 	 	 
	Fiscal
Year
	 	Deferred
Compensation 
Liability Annual Amount	 
	2005
	 	$	23,500,000	 
	 
	 	 	 	 
	2006
	 	$	12,500,000	 
	 
	 	 	 	 
	2007
	 	$	7,500,000	 
	 
	 	 	 	 
	2008
	 	$	6,500,000	 
	 
	 	 	 	 
	2009 and thereafter
	 	$	6,000,000	 

     1.7.   Amendments to Section 10 (Definitions). (a) Section 10 of the Credit
Agreement is hereby amended by adding the following new definitions in appropriate alphabetical
order:

               “IPO” shall be as defined in the recitals to the Second Amendment.

               “Merger Sub” shall be as defined in the recitals to the Second Amendment.

               “Reincorporation” shall be as defined in the recitals to the Second Amendment.

               “Reincorporation Merger” shall be as defined in the recitals to the Second Amendment.

               “Second Amendment” shall mean the Second Amendment, dated as of June 27, 2005,
to the Credit Agreement.

               “Second Amendment Effective Date”: the date upon which all conditions
precedent specified in Section 2 of the Second Amendment shall have been satisfied, which
date is June 27, 2005.

               “Termination Fee” shall mean the fee in the aggregate amount of $4,000,000
which the Borrower intends to pay to LGB to terminate the Management Advisory Services
Agreement.

     (b) The definition of “Consolidated EBITDA” set forth in Section 10 of the Credit Agreement is
hereby amended by (i) deleting the word “and” immediately following clause (xii) thereof and
inserting in lieu thereof a comma and (ii) inserting immediately following clause (xiii) thereof
the phrase “and (xiv) any nonrecurring charge or expense incurred in connection with the IPO and
the Reincorporation Merger (including, without limitation, the expenses identified in the
registration statement filed with the SEC in connection with the IPO) whether or not consummated”.

 

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     (c) The first paragraph of the Credit Agreement is amended by replacing “(“Holdings”)” with
“(including its successors and permitted assigns, “Holdings”)” and replacing “(the “Borrower”)”
with “(including its successors and permitted assigns, the “Borrower”)”, and the definition of
“Holdings” set forth in Section 10 of the Credit Agreement is hereby deleted in its entirety and
replaced by the following:

“Holdings” shall have the meaning set forth in the first paragraph of this
Agreement and shall include the successor to Holdings pursuant to the
Reincorporation Merger.

SECTION 2.   CONDITIONS PRECEDENT

              This Second Amendment shall become effective upon the satisfaction of the following conditions
precedent (the date of such satisfaction, the “Second Amendment Effective Date”):

     2.1.   Amendment. The Administrative Agent shall have received counterparts of this
Second Amendment duly executed as of the date hereof by Holdings, the Borrower and the Required
Lenders.

     2.2.   Acknowledgment and Consent. An Acknowledgment and Consent, substantially in
the form of Exhibit A hereto, duly executed and delivered by each Credit Party party to the
Guarantee and Collateral Agreement.

SECTION 3.   REPRESENTATIONS AND WARRANTIES.

              To induce the Administrative Agent and the Lenders to enter into this Second Amendment, each
of Holdings and the Borrower hereby represent and warrant to the Administrative Agent and the
Lenders that (before and after giving effect to this Second Amendment):

     3.1.   Each Credit Party has the corporate power and authority, and the legal right, to make
and deliver this Second Amendment and the Acknowledgment and Consent (the “Amendment
Documents”) to which it is a party and to perform its obligations under the Credit Agreement,
as amended hereby (the “Amended Credit Agreement”). Each Credit Party has taken all
necessary corporate or other action to authorize the execution, delivery and performance of the
Amendment Documents to which it is a party and the performance of the Amended Credit Agreement.

     3.2.   Each of the representations and warranties made by any Credit Party herein or in or
pursuant to the Credit Documents is true and correct on and as of the Second Amendment Effective
Date as if made on and as of such date (except that any representation or warranty which by its
terms is made as of an earlier date shall be true and correct as of such earlier date).

     3.3.   The Borrower and the other Credit Parties have performed in all material respects all
agreements and satisfied all conditions which this Second Amendment and the other Credit Documents
provide shall be performed or satisfied by the Borrower or the other Credit Parties on or before
the Second Amendment Effective Date.

 

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     3.4.   After giving effect to this Second Amendment, no Default or Event of Default has
occurred and is continuing, or will result from the consummation of the transactions contemplated
by this Second Amendment.

SECTION 4.   MISCELLANEOUS.

     4.1.   Counterparts. This Second Amendment may be executed by the parties hereto in
any number of separate counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. Delivery of an executed counterpart of a signature page of
this Second Amendment by facsimile or other electronic transmission shall be effective as delivery
of a manually executed counterpart of this Second Amendment.

     4.2.   Fees and Expenses. The Borrower agrees to pay or reimburse the Administrative
Agent for all of its reasonable out-of-pocket costs and expenses in connection with the
negotiation, preparation, execution and delivery of this Second Amendment, including, without
limitation, the fees and expenses of Simpson Thacher & Bartlett LLP.

     4.3.   Continuing Effect. Except as expressly amended hereby, the Credit Agreement
and the other Credit Documents shall continue to be and shall remain in full force and effect in
accordance with their terms. This Second Amendment shall not constitute an amendment or waiver of
any provision of the Credit Agreement or the other Credit Documents not expressly referred to
herein and shall not be construed as an amendment, waiver or consent to any action on the part of
the Borrower or of Holdings that would require an amendment, waiver or consent of the
Administrative Agent or the Lenders except as expressly stated herein. Any reference to the
“Credit Agreement” in the Credit Documents or any related documents shall be deemed to be a
reference to the Credit Agreement as amended by this Second Amendment.

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

     4.5.   Miscellaneous. On and after the Second Amendment Effective Date, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of
like import referring to the Credit Agreement, and each reference in the other Credit Documents to
the “Credit Agreement”, “thereunder”, “thereof”, or words of like import referring to the Credit
Agreement shall mean and be a reference to the Amended Credit Agreement.

 

 

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

	 	 	 	 	 	 	 
	 	 	PIKE HOLDINGS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Mark Castaneda	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Mark Castaneda	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PIKE ELECTRIC, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Mark Castaneda	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Mark Castaneda	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 

Second Amendment

 

 

	 	 	 	 	 	 	 
	 	 	BARCLAYS BANK PLC,
	 	 	as Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Barton	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:David Barton 		 
	 

	 	 	 	Title: Associate Director		

Second Amendment

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	,
	 	 	 	 
	 	 	as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

EXHIBIT A

ACKNOWLEDGMENT AND CONSENT

          Reference is hereby made to the Second Amendment dated as of June 27, 2005 (the “Second
Amendment”) to the Amended and Restated Credit Agreement dated as of July 1, 2004 (as amended,
supplemented or otherwise modified, the “Credit Agreement”; terms defined in the Credit
Agreement being used in this Acknowledgement and Consent with the meanings given to such terms in
the Credit Agreement) among PIKE HOLDINGS, INC. (“Holdings”), PIKE ELECTRIC, INC. (the
“Borrower”), the several banks and other financial institutions from time to time parties
thereto (the “Lenders”), J.P. MORGAN SECURITIES INC., as syndication agent, NATIONAL CITY
BANK, as documentation agent, and BARCLAYS BANK PLC, as administrative agent for the Lenders
thereunder (in such capacity, the “Administrative Agent”). Each of the undersigned parties
to the Guarantee and Collateral Agreement and/or any Security Document, in each case as amended,
supplemented or otherwise modified from time to time, hereby (a) consents to the Second Amendment
and the transactions contemplated thereby and (b) acknowledges and agrees that the guarantees and
grants of security interests contained in the Guarantee and Collateral Agreement and the Security
Documents are, and shall remain, in full force and effect after giving effect to the Second
Amendment.

	 	 	 	 	 	 	 
	 	 	PIKE EQUIPMENT AND SUPPLY COMPANY
	 
	 	 	 	 	 	 
	 

	 	By:
	 	          /s/ J. Eric Pike	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: President & Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	RED SIMPSON, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	          /s/ J. Eric Pike	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	AKERMAN FOUNDATION DRILLING, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	          /s/ J. Eric Pike	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	GILLETTE ELECTRIC CONSTRUCTION, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	          /s/ J. Eric Pike	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

Acknowledgment and Consent to Second Amendment

 

 

	 	 	 	 	 	 	 
	 	 	INDUSTRIAL ELECTRICAL CORPORATION OF TEXAS
	 
	 	 	 	 	 	 
	 

	 	By:
	 	          /s/ J. Eric Pike	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

Acknowledgment and Consent to Second AmendmentEX-10.12:

 

 

EXHIBIT 10.12

     TERMINATION AGREEMENT dated as of June 23, 2005 (this
“Agreement”) between Pike Electric, Inc., a North Carolina
corporation (“Pike”), and Goldberg Lindsay & Co. LLC, a Delaware
limited liability company (“GLC”).

          WHEREAS each of the parties hereto is a party to a Management Advisory Services Agreement
dated April 18, 2002 and amended as of July 1, 2004 (the “MASA”);

          WHEREAS each of the parties hereto has agreed that the MASA shall be terminated;

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and intending to be
legally bound hereby, each of the parties hereto agrees as follows:

          SECTION 1.01. Termination. Each of the parties hereto agrees that the MASA is
terminated effective as of June 15, 2005 (the “MASA Termination Date”) for an aggregate
consideration to GLC of $4,000,000 (the “Consideration”).

          SECTION 1.02. Payment. Payment of the Consideration shall be made on the closing date
of the initial public offering of shares of common stock of Pike Holdings Inc. (or a successor
entity) pursuant to an effective registration statement under the Securities Act of 1933, but in no
event later than December 15, 2005.

          SECTION 1.03. Effect of Termination. Each of the parties hereto agrees that from and
after the MASA Termination Date, Pike and GLC shall be released from their respective obligations
under the MASA and the MASA shall be of no further force or effect, provided that any
termination hereunder shall not affect Pike’s obligation to (a) pay any fees and expenses or (b)
indemnify and reimburse the persons entitled to any indemnification or reimbursement, in each case,
accrued up to and including the MASA Termination Date to the full extent provided for in the MASA.

          SECTION 1.04. Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York regardless of the laws that might
otherwise govern under applicable principles of conflict laws thereof.

          SECTION 1.05. Exclusive Jurisdiction. Each of the parties hereto irrevocably submits
to the exclusive jurisdiction of (a) the Supreme Court of the State of New York, New York County,
and (b) the United States District Court for the Southern District of New York for the purposes of
any suit, action or other proceeding arising out of this Agreement or any transaction contemplated
hereby.

          SECTION 1.06. Waiver of Jury Trial. Each of the parties hereto waives, to the fullest
extent permitted by applicable law, any right it may have to a trial by jury with respect to any
suit, action or other proceeding arising out of this Agreement or any transaction contemplated
hereby.

 

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          SECTION 1.07. Severability. If any provision of this Agreement (or any portion
thereof) or the application of any such provision (or any portion thereof) to any person or
circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision to any other persons
or circumstances.

          SECTION 1.08. Counterparts. This Agreement may be executed by facsimile and in two or
more counterparts, each of which shall be deemed to be an original, but all of which shall
constitute one and the same agreement.

 

3

          IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the date
first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	PIKE ELECTRIC, INC.,	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	/s/ J. Eric Pike	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     Name:
	 	J. Eric Pike	 	 	 	 	 	 
	 

	 	 	 	 	 	     Title:
	 	President and Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	GOLDBERG LINDSAY & CO. LLC,	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	/s/ Robert D. Lindsay	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     Name:
	 	Robert D. Lindsay	 	 	 	 	 	 
	 

	 	 	 	 	 	     Title:
	 	Authorized Signatory	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	/s/ Alan E. Goldberg	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     Name:
	 	Alan E. Goldberg	 	 	 	 	 	 
	 

	 	 	 	 	 	     Title:
	 	Authorized Signatory

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